Weekly Media Update_Jan 27, 2021

1. 670
(This document comprises news clips from various media in which Balmer Lawrie is mentioned, news
related to GOI and PSEs, and news from the verticals that we do business in. This will be uploaded on
intranet and website every Monday.)
Omicron, inflation risks to business
resumption, Nomura index at a record
high
The Nomura India Business Resumption Index
rose to a record high of 117.8 for the week ended
December 19 from 116.6 in the prior week. The
Japanese financial services firm, in its weekly
report on Monday, said that even though supply-
side bottlenecks persist, energy shortages are
slowly improving but there is downside risk to
consumption demand as the prices of white goods
are set to rise amid already high core inflation.
Business resumption index is now nearly 18
percentage points (pp) above pre-pandemic
levels. Data released last week showed wholesale
inflation accelerated to the fastest since 1991 in
November, clocking the eighth successive month
of double-digit increase at 14.2% while retail
inflation based on the consumer price index
hardened to a three-month high of 4.91% in the
month from 4.48% in October. The NIBRI
considers the Google mobility indices, Apple
driving index, power demand and the labour force
participation rate. Mobility indices are based on a
7-day moving average.
The Economic Times - 21.12.2021
https://economictimes.indiatimes.com/news/eco
nomy/indicators/omicron-inflation-risks-to-
business-resumption-nomura-index-at-a-record-
high/articleshow/88394297.cms
World economy now set to surpass
$100 trillion in 2022, India to overtake
France
The world economy is set to surpass $100
trillion for the first time in 2022, two years
earlier than previously forecast, according to
the Centre for Economics and Business
Research. Global gross domestic product will be
lifted by the continued recovery from the
pandemic, although if inflation persists it may
be hard for policy makers to avoid tipping their
economies back into recession, the London-
based think tank said. “The important issue for
the 2020s is how the world economies cope with
inflation,” said Douglas McWilliams, the CEBR’s
deputy chairman. “We hope that a relatively
modest adjustment to the tiller will bring the
non-transitory elements under control. If not,
then the world will need to brace itself for a
recession in 2023 or 2024.” The forecast is in
line with estimates of the International
Monetary Fund, which also predicts global GDP
measured in dollars and in current prices will
pass $100 trillion in 2022.
The Financial Express - 27.12.2021
https://www.financialexpress.com/economy/w
orld-economy-set-to-surpass-100-trillion-in-
2022/2390484/
Union Budget 2022: Experts seek fiscal
consolidation path, capex to aid growth
A gradual fiscal consolidation path, capital
expenditure to pursue growth and steps to rein in
inflation were some of the key suggestions made
by economists for the FY23 Budget to finance
minister Nirmala Sitharaman on Wednesday. "The
government must aim to provide a credible fiscal
consolidation path... the year-on-year projection
of fiscal deficit should not be significantly large,"
said one of the economists who attended the
meeting. This was the eighth and last pre-Budget
consultation meeting with stakeholders. Other
suggestions were to implement the direct tax code
(DTC), rationalisation of the capital gains tax,
uniform mechanism for new green energy policy,
support for growth and fiscal management. Take
CPSEs told to raise M-Cap 10% every
year
Central public sector undertakings will have to
target a 10% increase in their market
capitalisation every year starting FY23, a
performance measure that has caused concern
among the companies and their administrative
ministries. The Department of Public
Enterprises (DPE) has decided to include this
norm among the annual targets for
performance evaluation of listed central public
sector undertakings. Most ministries had
opposed the new parameters when they were
being framed. The inclusion follows suggestions
from the Niti Aayog and the Department of
Investment and Public Asset Management
(DIPAM) that are looking at measures to
WEEKLY MEDIA UPDATE
Issue 533
27 December, 2021
Monday

2. the capital expenditure (capex) route, and
preferably spend on capital assets and
infrastructure projects, rather than raising
allocation to rural-centric cash or employment
schemes, the economists said. Notably, the
government has set a glide path to reduce the
fiscal deficit to 4.5% of GDP by 2025-26 from
6.8% of GDP budgeted for the current fiscal.
The Economic Times - 24.12.2021
https://economictimes.indiatimes.com/news/eco
nomy/policy/budget-2022-experts-seek-fiscal-
consolidation-path-capex-to-aid-
growth/articleshow/88443096.cms
improve returns from asset monetisation. Some
ministries have now sought withdrawal of the
requirement, arguing that market capitalisation
is not something they can control or manage as
the performance of a stock is dependent on
many factors. “All ministries had opposed when
the parameters were being changed,” a senior
government official said. “Now many are of the
view that instead of aiming for a flat 10% rise
in market capitalisation, the target may be set
as the average of last three-four years.”
Tech Live - 21.12.2021
https://techilive.in/cpses-told-to-raise-m-cap-
10-every-year/
FY22 target: Govt to speed up asset
monetisation drive
Government think tank Niti Aayog is pushing
ministries to accelerate the Centre’s asset
monetisation programme to meet the current
year’s target of raising Rs 88,190 crore. The
crucial programme is also being monitored by the
cabinet secretary to ensure that various
ministries, which are part of the plan step up their
efforts to ensure that the target is met. “We will
be very close to the target for FY22 and if there is
any gap it won’t be wide,” said an official while
detailing the strategy. While roads and power
ministries are in line to meet their targets, thanks
to REITs and InvITs, which are like mutual funds
that pool assets, ministries including railways,
petroleum, mining and sports are way behind
schedule. In fact, railways is seen to be the biggest
laggard after a change of guard. “Progress needs
to be stepped up as it is a crucial part of the plan,”
said an official. The Railways have a target of
raising Rs 17,810 crore under the national
monetisation pipeline in the current financial year.
Its plans to get the private sector to run passenger
trains received a cold response and work is in
progress to revise the terms, which many believe
is being held up due to the powerful bureaucracy
in the ministry.
The Times of India - 25.12.2021
https://epaper.timesgroup.com/olive/odn/timeso
findia/shared/ShowArticle.aspx?doc=TOIKM%2F2
021%2F12%2F25&entity=Ar01900&sk=51FECA7
7&mode=text
EPFO adds 12.73 lakh subscribers in
October
The EPFO added 12.73 lakh net subscribers in
October 2021, a 10.22 per cent increase as
compared to 11.55 lakh net subscribers added
in October 2020 according to the provisional
payroll data of EPFO released here on Monday.
Of the net subscribers added in October, 7.57
lakh are new members and 5.16 lakh are
workers who have rejoined EPFO after leaving
it. About 3.37 lakh young workers between 22
to 25 years of age registered in October. "The
18-21 age-group also registered a healthy
addition of around 2.50 lakh net enrolments.
The 18-25 years age-group contributed around
46.12 per cent of the total net subscriber
additions in October," a Labour Ministry release
said. Establishments in Maharashtra, Haryana,
Gujarat, Tamil Nadu and Karnataka continue to
lead as 7.72 lakh subscribers (60.64 per cent)
are from these States. "Gender-wise analysis
indicates that the net share of female enrolment
during the month was 2.69 lakh. The share of
female enrolment was approximately 21.14 per
cent of the total net subscribers addition during
October 2021," the release added.
The Hindu Business Line - 21.12.2021
https://www.thehindubusinessline.com/news/e
pfo-adds-1273-lakh-subscribers-in-
october/article37999866.ece
Assets of state-owned Indian Oil, GAIL
and NHAI selected for monetisation
Government has identified core assets of major
public sector undertakings (PSUs) like National
Highway Authority of India (NHAI), Airports
Authority of India (AAI), National Thermal Power
Corporation (NTPC), Indian Oil Corporation (IOC),
GAIL, Hindustan Petroleum Corporation Limited
(HPCL) and many others for monetisation under
BofA expects crude oil to reach
$100/barrel level next year
BofA Global Research raised its Brent crude
price forecasts for this year and next, saying
that tighter oil supply and demand balances in
2022 could push oil briefly to $100 per barrel.
"We believe that the robust global oil demand
recovery will outpace supply growth over the
next 18 months, further draining inventories

3. its National Monetisation Pipeline (NMP) between
2022-2025. Some of the other PSUs whose assets
it has identified for monetisation, include
Mahanagar Telephone Nigam Limited (MTNL),
Bharat Sanchar Nigam Limited (BSNL), NHPC,
Food Corporation of India (FCI) and Neyveli Lignite
Corporation. According to finance ministry
sources, under NMP, the core infrastructure assets
of these selected PSUs have been identified as
through the programme, the government plans to
boost its finances, which have been badly hit
owing mainly due to the Coronavirus pandemic in
the almost two fiscals. While government has
exhausted the route of divesting its stake in major
PSUs, the NMP has been designed to offer assets
belonging to blue chip state-owned entities on rent
to private entities, through which it aims to raise
funds till 2025.
Energy Infra Post - 21.12.2021
https://www.energyinfrapost.com/assets-of-
state-owned-indian-oil-gail-and-nhai-selected-
for-monetisation/
and setting the stage for higher oil prices," the
bank said in a note dated Sunday. The bank
raised its Brent crude oil price forecast to $68
per barrel from $63 earlier. In 2022, it expects
Brent to average $75 per barrel versus its
earlier estimate of $60. The bank noted that
U.S. shale will likely respond to these higher
prices by ramping up production and Brent
would roll back down to average $65 per barrel
by 2023. The oil market will likely remain in
deficit for the foreseeable future, averaging a
shortfall of 0.9 million barrels per day (bpd)
over the next six quarters, it said.
The Economic Times - 21.12.2021
https://economictimes.indiatimes.com/market
s/commodities/news/as-demand-accelerates-
bofa-expects-oil-to-reach-100/bbl-next-
year/articleshow/83714523.cms
Centre’s FY21 oil tax mop-up rises 36%
on excise hikes
The Centre’s tax collection from the oil sector
swelled 36% in 2020-21 to more than Rs 4.5 lakh
crore from Rs 3.3 lakh crore in 2019-20, buoyed
by last financial year’s tax hikes on petrol and
diesel, government data presented in Parliament
on Monday show. Taxes on petrol and diesel,
including excise duty and various cess, contributed
Rs 3.7 lakh crore in 2020-21, up 68% from Rs 2.2
lakh crore in 2019-20, junior finance minister
Pankaj Choudhary told Lok Sabha in a written
reply. Separately, junior petroleum minister
Rameshwar Teli told the Rajya Sabha in a written
reply that states collected Rs 2,02,937 crore as
sales tax/ VAT on petrol and diesel in 2020-21,
just 1% higher than Rs 2,00,493 crore. The data
makes it clear that the Centre was wrong in
blaming state taxes for the record fuel prices,
which actually shot through the roof because the
sharp excise duty hike in the March-May period of
2020 amplified the impact of rising oil prices. The
Centre had raised excise duty by Rs 13 per litre on
petrol and Rs 16 on diesel when oil prices crashed
due to the Covid pandemic.
The Times of India - 21.12.2021
https://epaper.timesgroup.com/olive/odn/timeso
findia/shared/ShowArticle.aspx?doc=TOIM%2F20
21%2F12%2F21&entity=Ar01505&sk=54D98290
&mode=text
Oil prices plunge as Omicron's rapid
spread dims fuel demand outlook
Oil prices slumped on Monday as surging cases
of the Omicron coronavirus variant in Europe
and the United States stoked investor worries
that new restrictions to combat its spread could
dent fuel demand. Brent crude futures fell $2,
or 2.7%, to settle at $71.52 a barrel, while U.S.
West Texas Intermediate (WTI) crude futures
fell $2.63, or 3.7%, to settle at $68.23 a barrel.
Brent fell to a session low of $69.28 per barrel,
while WTI sank to $66.04 per barrel, both their
lowest levels since early December. "This is a
knee-jerk reaction to the proliferation of the
virus and the fear that lockdowns can rapidly
spread," said Andrew Lipow of Lipow Oil
Associates in Houston. The Netherlands went
into lockdown on Sunday and the possibility of
more COVID-19 restrictions being imposed
ahead of the Christmas and New Year holidays
loomed over several European countries. U.S.
health officials urged Americans on Sunday to
get COVID-19 booster shots, wear masks and
be careful if they travel over the winter
holidays, with the Omicron variant raging
across the world and set to take over as the
dominant strain in the United States
Reuters - 21.12.2021
https://www.reuters.com/markets/commoditie
s/oil-prices-drop-2-rapid-omicron-spread-
dims-fuel-demand-outlook-2021-12-20/

4. India’s domestic oil production falls in
November, gas output up by 23.09%
India’s domestic oil production continued to fall in
November with the crude oil production down
6.89% as compared to the corresponding period
last year. However, according to the monthly
production report released by the ministry of
petroleum and natural gas, there was a 23.09%
increase in gas production in November. "Crude oil
production during November 2021 was 2431.44
TMT, which is 6.89% lower than the target for the
month and 2.22% lower than the production of
November 2020. Cumulative crude oil production
during April-November, 2021 was 19868.42 TMT,
which is 4.38% and 2.74% lower than the target
for the period and production during the
corresponding period of last year, respectively,"
ministry of petroleum and natural gas said in its
monthly production report for November on
Tuesday. With India’s domestic energy production
being low, energy security is an important focus
area for the National Democratic Alliance (NDA)
government as was articulated by Prime Minister
Narendra Modi in his Independence Day speech on
15 August.
Mint - 22.12.2021
https://www.livemint.com/industry/energy/indias
-domestic-oil-production-falls-in-november-gas-
output-up-by-2309-11640067466858.html
India's crude imports hit 10-month
peak as refiners bank on strong
demand
India's crude oil imports in November rose to
their highest level in 10 months as refiners
stocked up to boost runs in anticipation of
strong demand in the world's third-largest oil
consumer and importer. Crude oil imports last
month rose 7.5% versus October and were also
0.5% higher than a year ago at 18.37 million
tonnes, data on the website of the Petroleum
Planning and Analysis Cell (PPAC) showed on
Thursday. The relatively high imports
corresponded with the country's crude
processing hitting its highest level since
February 2020 during the same month refiners
operated at full capacity in hopes of a steady
uptick in demand. "Crude imports have risen as
refiners boost their runs in expectation of higher
demand in the fourth quarter," said Refinitiv
analyst Ehsan Ul Haq. "It remains to be seen if
floods in the south of India and Omicron lead to
slower demand recovery. It also depends on oil
prices. If prices remain at present levels or fall,
demand will continue to recover," Haq said.
The Economic Times - 24.12.2021
https://energy.economictimes.indiatimes.com/
news/oil-and-gas/indias-crude-imports-hit-10-
month-peak-as-refiners-bank-on-strong-
demand/88464467
Global oil's comeback year presages
more strength in 2022
Global oil demand roared back in 2021 as the
world began to recover from the coronavirus
pandemic, and overall world consumption
potentially could hit a new record in 2022 - despite
efforts to bring down fossil fuel consumption to
mitigate climate change. Gasoline and diesel use
surged this year as consumers resumed travel and
business activity picked up. For 2022, crude
consumption is expected to reach 99.53 million
barrels per day (bpd), up from 96.2 million bpd
this year, according to the International Energy
Agency. That would be a hair short of 2019's daily
consumption of 99.55 million barrels. That will put
pressure on both OPEC and the U.S. shale industry
to meet demand - after a year when major
producers were surprised by the rebound in
activity that overwhelmed supply and led to tight
inventories worldwide. Numerous OPEC nations
have struggled to add to output, while the U.S.
shale industry has to deal with investor demands
to hold the line on spending.
The Economic Times - 24.12.2021
https://energy.economictimes.indiatimes.com/ne
ws/oil-and-gas/global-oils-comeback-year-
presages-more-strength-in-2022/88464289
Indian Oil Corp acquires 5% stake in
IEX subsidiary Indian Gas Exchange
State-owned Indian Oil Corporation (IOC) on
Tuesday said it has acquired a nearly 5 per cent
stake in Indian Gas Exchange Ltd - the country's
first automated national level exchange for the
trading of natural gas. IOC joins the likes of oil
and gas explorer ONGC, gas utility GAIL Torrent
Gas Pvt Ltd and Adani Total Gas Ltd which
already have acquired 5 per cent equity each in
IGX. At face value, the acquisition will cost IOC
Rs 3.7 crore. IGX is India's first automated
national level gas exchange, which ensures
transparent price discovery in natural gas and
facilitates the growth of natural gas in India's
energy basket, it added. "It is hereby informed
that the Board of IndianOil at its meeting held
on December 20, 2021 has accorded approval
for the acquisition of 36,93,750 equity shares of
the face value of Rs 10 each equivalent to 4.93
per cent of the share capital in Indian Gas
Exchange Limited (IGX)," IOC said in an
exchange filing. IOC, the nation's largest oil
refining and fuel marketing firm, said the
acquisition of an equity stake in IGX is a
strategic opportunity for it to become part of
India's natural gas market and to increase its

5. presence to achieve a leadership position in the
market.
Business Standard - 22.12.2021
https://www.business-
standard.com/article/companies/indian-oil-
corp-acquires-5-stake-in-iex-subsidiary-indian-
gas-exchange-121122100774_1.html
Petroleum Sector earned huge revenue
even during Covid-19 pandemic
Petroleum Sector continues to be a milching-cow
for the Union Government even during the Covid-
19 pandemic as it earned Rs 4,55,069 crore for
the state exchequer when Covid-19 was at its
peak and most of the other revenue sources dried
up for the Centre as well as state governments.
Though the Petroleum Sector as a whole could not
perform well and the production data of crude oil
and natural gases were on the decline, the sector
emerged as a huge tax earner for the Centre and
State governments, reveals the data of the
Petroleum Planning and Analysis Cell (PPAC). The
PPAC data reveals that the government earned Rs
1,17,348 crore more from taxes during 2020-21
(covid-19 pandemic time) than the financial year
2019-20. Even during the first quarter of 2021-22,
when the second wave of Covid-19 was at its peak,
the total tax collection from the sector was Rs
1,52,364 crore—almost half of what the
government collected in the entire fiscal year of
2014-15—when Narendra Modi came into power.
The Statesman - 23.12.2021
https://www.thestatesman.com/india/petroleum-
sector-earned-huge-revenue-even-covid-19-
pandemic-1503032903.html
Natural gas prices hit fresh record
peaks
European and UK gas prices rocketed Tuesday
to all-time highs on strong winter demand and
simmering geopolitical tensions between key
supplier Russia and consumer nations. Europe's
reference Dutch TTF gas price jumped nearly 20
percent from Monday to hit 175.00 euros per
megawatt hour in early afternoon trading.
Meanwhile, UK prices leapt to 435 pence per
therm. Both markets beat previous records
from October, also struck on demand worries
for the northern hemisphere winter months.
They are currently about eight times greater
than at the start of 2021. Runaway spot gas
prices, alongside other buoyant commodities
including crude oil, have fuelled mounting
concern about spiking inflation worldwide.
European gas "continued its inexorable rise... to
another record," wrote Deutsche Bank analysts
in a client note. “It comes as temperatures have
continued to decline heading into the European
winter, and we also got the news that (Russian
energy giant) Gazprom had not booked any
extra capacity in January for gas flowing
through Ukraine.
The Economic Times - 22.12.2021
https://energy.economictimes.indiatimes.com/
news/oil-and-gas/natural-gas-prices-hit-fresh-
record-peaks/88432962
Mrs Pomila Jaspal will be first women Director (Finance) of ONGC; know all about
her
Public Enterprises Selection Board (PESB) recommended the name of Mrs Pomila Jaspal for the post of
Director (Finance) of Oil & Natural Gas Corporation Limited (ONGC). She was among 6 candidates,
who were interviewed in the PESB selection meeting, that was held on December 21, 2021. She will
be first women Director (Finance) in ONGC. However, she is currently working in MRPL as Director
(Finance). Mrs. Pomila Jaspal is a Cost Accountant working as Director (Finance) in MRPL, a Schedule
‘A’ Navratna under the ONGC group, with 35 years of experience in oil and gas sector, both in operating
and regulatory framework of upstream and downstream operations. Nominated as Director in the Board
of OPAL & OMPL. After joining MRPL, she steered MRPL’s maiden NCD issue of Rs. 3,000 Cr from market
as well as through Bharat Bond ETF and was able to generate fund at very competitive rates. Also
monitored OMPL’s maiden CCD issuance of Rs. 1,200 Cr.
PSU Connect - 22.12.2021
https://www.psuconnect.in/news/pomila-jaspal-set-to-be-first-women-director-finance-of-
ongc/30648