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Future Enterprises standalone net profit rises 615.37% in the June 2016 quarter

Future Enterprises standalone net profit rises 615.37% in the June 2016 quarter

Sep 14,2016

Net profit of Future Enterprises rose 615.37% to Rs 315.48 crore in the quarter ended June 2016 as against Rs 44.10 crore during the previous quarter ended June 2015. Sales declined 67.64% to Rs 921.19 crore in the quarter ended June 2016 as against Rs 2846.84 crore during the previous quarter ended June 2015.

ParticularsQuarter Ended
n++Jun. 2016Jun. 2015% Var.
Sales921.192846.84-68
OPM %24.969.91-
PBDT295.07184.1360
PBT142.3249.92185
NP315.4844.10615

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MMTC leads gainers in A group
Dec 07,2016

MMTC surged 11.26% to Rs 55.35 at 13:55 IST. The stock topped the gainers in the BSEs A group. On the BSE, 24.76 lakh shares were traded on the counter so far as against the average daily volumes of 3.69 shares in the past two weeks.

National Aluminium Company jumped 9.15% at Rs 67.40. The stock was second biggest gainer in A group. On the BSE, 28.51 lakh shares were traded on the counter so far as against the average daily volumes of 5.76 lakh shares in the past two weeks.

RattanIndia Power rose 4.7% to Rs 7.35. The stock was third biggest gainer in A group. On the BSE, 8.19 lakh shares were traded on the counter so far as against the average daily volumes of 4.37 lakh shares in the past two weeks.

Hindustan Copper gained 4.65% at Rs 64.20. The stock was fourth biggest gainer in A group. On the BSE, 8.55 lakh shares were traded on the counter so far as against the average daily volumes of 1.89 lakh shares in the past two weeks.

Eicher Motors gained 3.86% to Rs 23,329.30. The stock was fifth biggest gainer in A group. On the BSE, 4,117 shares were traded on the counter so far as against the average daily volumes of 6,986 shares in the past two weeks.

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De-legalisation of Currency Erases INR1.5trn from FY17 GDP, Growth to Fall to 3-Year Low
Dec 07,2016

India Ratings and Research (Ind-Ra) has revised its gross domestic product (GDP) growth forecast for FY17 to 6.8%, 100bp lower than its earlier projection of 7.8% (FY16: 7.6%, FY15: 7.2%). The downward revision is a fallout of the disruption caused at various levels in the economy due to the de-legalisation of banknotes of INR500 and INR1,000 denominations from midnight of 8 November 2016. Ind-Ras analysis shows that the economic cost of the de-legalisation will be INR1.5trn for FY17.

While there are no two opinions about the need to root out black income, Ind-Ras analysis shows that at best the current measures are likely to destroy INR4.004trn worth of cash held in black money and fake currency. This constitutes a mere 12% of the black economy in India, leaving 88% of the black money to remain in the system. Global experience, including that of India in the past has shown that the impact of such measures have been fairly short-lived (India followed the de-legalisation route twice in the past, firstly in 1946 and then 1978) as it does not attack/plug the mechanism that gives rise to black income.

On the demand side, the GDP component that would be the worst hit is investment. Investment, particularly private investment, which is already down and out due to various reasons, will face the brunt of the de-legalisation. Ind-Ra now expects gross fixed capital formation (GFCF) for FY17 to grow at 2.0%, down 306bp from our earlier projection. With the decline in cash holdings in the hands of the people and severe restriction in the flow of new cash, consumption demand has also fallen impacting both wholesale and retail sales. Anecdotal evidence suggests that the cash squeeze has reduced sales in the informal sector by 30%-40% during the first fortnight following the de-legalisation. Therefore, Ind-Ra expects private final consumption expenditure (PFCE) to grow at 7.5% in FY17, 89bp lower than our earlier projection.

However, Ind-Ra believes, despite disruptions, there are positive spin-offs for the economy from the de-legalisation of the high value currency. Ind-Ra believes de-legalisation, coupled with the governments resolve to promote the digital platform for transactions will gradually increase the share of the formal sector and expand the tax base of the economy in the medium-to long-term. Also, as transactions through the digital platform increase, it will create financial and transactional history of the informal/cash dependent segment, making them bankable over the medium-to long-term.

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Credit linked Capital Subsidy Scheme under Ministry of MSME
Dec 07,2016

The objective of Credit Linked Capital Subsidy Scheme (CLCSS) is to facilitate technology upgradation in Micro and Small Enterprises (MSEs) by providing capital subsidy of 15 per cent (limited to maximum of Rs.15.00 lakhs) on institutional finance availed by them for induction of well-established and improved technology in the specified 51 sub-sectors/products approved under the scheme. Maximum limit of eligible loan for calculation of subsidy under the Scheme is Rs.100.00 lakhs.

Presently, there are 12 Nodal Banks/Agencies under CLCSS :

1. Small Industries Development Bank of India

2. National Bank for Agriculture and Rural Development

3. Bank of Baroda

4. State Bank of Bikaner and Jaipur

5. Bank of India

6. Indian Bank

7. Corporation Bank

8. Canara Bank

9. State Bank of India

10. Punjab National Bank

11. Tamilnadu Industrial Investment Corporation

12. Andhra Bank

List of approved sectors / sub-sectors under Credit Linked Capital Subsidy Scheme

i. Bio-tech Industry

ii. Common Effluent Treatment Plant

iii. Corrugated Boxes

iv. Drugs and Pharmaceuticals

v. Dyes and Intermediates

vi. Industry based on Medicinal and Aromatic plants

vii. Plastic Moulded/ Extruded Products and Parts/ Components

viii. Rubber Processing including Cycle/ Rickshaw Tyres

ix. Food Processing (including Ice Cream manufacturing)

x. Poultry Hatchery & Cattle Feed Industry

xi. Dimensional Stone Industry (excluding Quarrying and Mining)

xii. Glass and Ceramic Items including Tiles

xiii. Leather and Leather Products including Footwear and Garments

xiv. Electronic equipment viz test, measuring and assembly/ manufacturing, Industrial process control; Analytical, Medical, Electronic Consumer & Communication equipment etc.

xv. Fans & Motors Industry

xvi. General Light Service(GLS) lamps

xvii. Information Technology (Hardware)

xviii. Mineral Filled Sheathed Heating Elements

xix. Transformer/ Electrical Stampings/ Laminations /Coils/Chokes including Solenoid coils

xx. Wires & Cable Industry

xxi. Auto Parts and Components

xxii. Bicycle Parts

xxiii. Combustion Devices/ Appliances

xxiv. Forging & Hand Tools

xxv. Foundries - Steel and Cast Iron

xxvi. General Engineering Works

xxvii. Gold Plating and Jewellery

xxviii. Locks

xxix. Steel Furniture

xxx. Toys

xxxi. Non-Ferrous Foundry

xxxii. Sport Goods

xxxiii. Cosmetics

xxxiv. Readymade Garments

xxxv. Wooden Furniture

xxxvi. Mineral Water Bottle

xxxvii. Paints, Varnishes, Alkyds and Alkyd products

xxxviii. Agricultural Implements and Post Harvest Equipment

xxxix. Beneficiation of Graphite and Phosphate

xl. Khadi and Village Industries

xli. Coir and Coir Products

xlii. Steel Re-rolling and /or Pencil Ingot making Industries

xliii. Zinc Sulphate

xliv. Welding Electrodes

xlv. Sewing Machine Industry

xlvi. Industrial Gases

xlvii. Printing Industry

xlviii. Machines Tools

xlix. Copper Strip Industry:

l. Ferric and Non-Ferric Alum

ll. Pesticides Formulation

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Ashoka Buildcon gains after receiving letters of intent for projects in Bihar
Dec 07,2016

The announcement was made during market hours today, 7 December 2016.

Meanwhile, the S&P BSE Sensex was up 40.15 points, or 0.15%, to 26,432.91.

More than usual volumes were witnessed on the counter. On BSE, so far 99,025 shares were traded in the counter, compared with an average volume of 47,068 shares in the past one quarter. The stock hit a high of Rs 155 and a low of Rs 146 so far during the day. The stock hit a record high of Rs 211.90 on 23 December 2015. The stock hit a 52-week low of Rs 111 on 7 April 2016.

The stock had underperformed the market over the past one month till 6 December 2016, falling 7.07% compared with the Sensexs 3.23% fall. The scrip had also underperformed the market in past one quarter, declining 10.64% as against the Sensexs 8.92% fall.

The small-cap company has an equity capital of Rs 93.57 crore. Face value per share is Rs 5.

Ashoka Buildcon said that the total cost of these power distribution projects is Rs 949.88 crore.

Ashoka Buildcons net profit dropped 32.7% to Rs 30.82 crore on 1.9% fall in net sales to Rs 465.97 crore in Q1 June 2016 over Q1 June 2015.

Ashoka Buildcon is a leading highway concessionaire and engineering, procurement and construction (EPC) company.

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Man Industries (India) to announce September quarter results
Dec 07,2016

Man Industries (India) announced that a meeting of the Board of Directors of the Company is scheduled to be held on 14 December 2016, inter alia, to consider and approve the un-audited financial results for the quarter and half year ended 30 September 2016.

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Karuturi Global announces resignation of director
Dec 07,2016

Karuturi Global announced that the Company has received resignation letter from ManMohan Agrawal resigning from the position of Independent and Non- executive Director from the Board of Directors of the Company with effect from 28 November 2016.

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Genus Power Infrastructures gets revision in credit ratings
Dec 07,2016

Genus Power Infrastructures announced that India Ratings and Research Private (Ind-Ra) has revised Genus Power Infrastructures Outlook to Positive from Stable while affirming its Long Term Issuer Rating at IND A.

Commercial Paper Rs 100 crore - IND A1
Fund based working capital limit Rs 214 crore - IND A1
Fund based working capital limit Rs 214 crore - IND A / Positive
Non fund based working capital limit Rs 637 crore - IND A / Positive
Non fund based working capital limit Rs 637 crore - IND A1

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Adani Transmission signs Share Purchase Agreement with Reliance Infrastructure
Dec 07,2016

Adani Transmission has signed Share Purchase Agreement with Reliance Infrastructure to acquire 100% assets of the Western Region Transmission Gujarat Project and the Western Region Transmission Maharashtra Project.

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US stocks end in the green
Dec 07,2016

U.S. stocks rose on Tuesday, 06 December 2016 with the Dow Jones Industrial Average finishing at an all-time high for a second day in a row, as the theme of rotational buying into new leaders such as financials and dividend-rich telecommunication shares continued. The markets momentum, however, was subdued as investors appeared to trade cautiously after the blue-chips gauge notched an all-time high in the previous session.

The Dow industrials DJIA, +0.18% rose 35.54 points, or 0.2%, to end at 19,251.78. The S&P 500 index gained 7.52 points, or 0.3%, to finish at 2,212.23, only about a point away from its record closing level. The Nasdaq Composite Index added 24.11 points, or 0.5%, to close at 5,333.

Once again, the trading day was very quiet, but once again, that did not stop the market from inching higher. Investor sentiment remained upbeat despite the weekend failure of a constitutional reform referendum in Italy. The countrys MIB index surged 4.2% while demand for Italian debt sent Italys 10-yr yield lower by four basis points to 1.95%.

Equities spent the first two hours of action near their flat lines, but climbed into the afternoon amid gains in most sectors. A few cyclical sectors opened in the red, but only energy remained in negative territory when the closing bell rang.

The ICE U.S. dollar index was trading higher by 0.4% after strong gains in November and early December. Strength in the buck often makes commodities, including gold, less attractive for holders of other currencies.

Economic data at Wall Street on Tuesday included Productivity, Unit Labor Costs, Trade Balance, and Factory Orders. Third-quarter productivity was left unrevised at 3.1% (consensus 3.3%) while Unit Labor Costs were revised up to 0.7% from 0.3% (consensus 0.2%). Higher unit labor costs may not be the best thing for corporate profit margins, yet there is an encouraging element for consumer spending growth since the revision for unit labor costs was driven solely by an increase in hourly compensation growth.

Separately, the trade deficit widened to $42.6 billion in October (consensus -$41.8 bln) from an upwardly revised $36.2 billion deficit (from -$36.4 bln) in September.

Bullion prices ended lower at Comex on Tuesday, 06 December 2016. Gold prices settled lower for a second session as the dollar strengthened against its leading rivals and U.S. stocks traded mostly highern++drawing investors attention away from the precious metal. Gold investors also remained on the defensive as they faced the strong likelihood of a Federal Reserve interest-rate hike next week and the possibility that monetary policy will tighten at an accelerated pace in 2017, boosting the dollar and cutting demand for the yellow metal.

Gold futures for February delivery fell $6.40, or 0.5%, to settle at $1,170.10 an ounce. The contract fell below $1,160 an ounce briefly on Monday, flirting with levels not seen since February. March silver failed to extend the gains seen over the past three trading sessions, with the contract settling at $16.81 an ounce, down 8.9 cents, or 0.5%.

Crude oil futures finished lower on Tuesday, 06 December 2016 for the first time in five sessions, as some traders anticipated further increases in crude production last month from the Organization of the Petroleum Exporting Countries, despite an agreement to cut back output starting in January.

On the New York Mercantile Exchange, January West Texas Intermediate futures fell by 86 cents, or 1.7%, to settle at $50.93 a barrel. February Brent crude, the global oil benchmark, lost $1.01, or 1.8%, to $53.93 a barrel on Londons ICE Futures exchange. Both Brent and WTI posted gains in each of the last four sessions and on Monday, hit their highest levels since July 2015.

The Energy Information Administration will release its weekly data on U.S. petroleum supplies on Wednesday morningn++after the American Petroleum Institutes figures, which come out late Tuesday. Market expects a decline of 1.7 million barrels for crude inventories. They also predict a rise of 900,000 barrels in gasoline stockpiles and an increase of 100,000 barrels for distillates, which include heating oil.

Treasuries spent the day inside narrow ranges with modest demand for the 10-yr note sending its yield lower by a basis point to 2.39%.

Todays participation was a bit light as fewer than 860 million shares changed hands at the NYSE floor.

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while October JOLTS will be announced at 10:00 ET. October Consumer Credit (consensus $18.70 billion) will be reported at 15:00 ET.

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Future Consumer, LT Foods nudge higher on rice distribution pact
Dec 07,2016

The announcement was made after market hours yesterday, 6 December 2016.

Future Consumer (up 0.48% at Rs 20.95) and LT Foods (up 5.17% at Rs 280.80) edged higher.

Meanwhile, the S&P BSE Sensex was up 47.96 points or 0.18% at 26,440.72.

Future Consumer, LT Foods and Genoa Rice Mills (Genoa) entered into a joint venture (JV) agreement dated 6 December 2016, for undertaking the business of manufacturing, marketing, sales, sourcing and distribution of Sona Masoori/regional South Indian rice.

Future Consumer and LT Foods each shall hold 50% of the paid-up share capital of Genoa. Future Consumer and LT Foods inter alia shall have the right to nominate two directors each, on the board of Genoa and they shall also have the right to vote on reserved matters as provided under the JV agreement.

LT Foods and Genoa are not related to any of the promoter/promoter entities of Future Consumer. The JV agreement executed between Future Consumer, LT Foods and Genoa does not fall within the ambit of related party transactions.

Future Consumer is Indias first sourcing-to-supermarket food company by Future Group. On a consolidated basis, the company reported net loss of Rs 16.17 crore in Q2 September 2016, compared with net loss of Rs 28.66 crore in Q2 September 2015. Net sales rose 30.6% to Rs 559.83 crore in Q2 September 2016 over Q2 September 2015.

LT Foods has a diversified product portfolio of branded basmati rice, value-added staples and organic food. The companys consolidated net profit rose 9.4% to Rs 25.01 crore on 20.4% growth in net sales to Rs 829.24 crore in Q2 September 2016 over Q2 September 2015.

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Adani Enterprises gains after incorporating subsidiary for cement business
Dec 07,2016

The announcement was made after market hours yesterday, 6 December 2016.

Meanwhile, the BSE Sensex was up 37.24 points, or 0.14%, to 26,429.92.

On the BSE, 1.28 lakh shares were traded in the counter so far, compared with average daily volume of 4.06 lakh shares in the past one quarter. The stock had hit a high of Rs 71.10 and a low of Rs 70.05 so far during the day. The stock had hit a 52-week high of Rs 92 on 4 January 2016. The stock had hit a 52-week low of Rs 58.35 on 9 November 2016.

The stock had outperformed the market over the past one month till 6 December 2016, rising 11.77% compared with the Sensexs 3.23% fall. The scrip had also outperformed the market in past one quarter, declining 3.19% as against the Sensexs 8.92% fall.

The mid-cap company has equity capital of Rs 109.98 crore. Face value per share is Re 1.

Adani Enterprises said that Adani Cementation (ACL) will carry on the cement business and is yet to commence its business operations. The company is incorporated in India.

Adani Enterprises consolidated net profit fell 78.9% to Rs 63.09 crore on 15.9% decline in net sales to Rs 7591.28 crore in Q2 September 2016 over Q2 September 2015.

Adani Enterprises is the flagship entity of the Adani group. Adani Enterprises started as a trading firm dealing in myriad commodities. Over a period of time, coal became its main stay and after it emerged as Indias leading coal importer, it made forays into multiple sectors as forward and backward integration.

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MSME ministry suggest withdrawal limit to 2 lakh for micro units: Haribhai Parathibhai Chaudhary, MoS for MSME
Dec 07,2016

Ministry for Micro Small and Medium Enterprises (MSME) will suggest for increasing the withdrawal limit to 2 lakh per week for MSME sector said, Mr Haribhai Parathibhai Chaudhary, Minister of State for MSME, GoI at an ASSOCHAM event.

n++We need to be cashless economy to be the best in the world. The Demonetisation will help to control the fiscal deficitn++, said Mr. Chaudhary.

He further said that repayment of loans by farmers is 92%, much higher than big value business loans. n++Encourage MSMEs to initiate skill development for rail and defence manufacturingn++, said Mr. Chaudhary.

He further said that the government is witnessing a new trend with many MSMEs taking the e-commerce route to establish themselves in the Indian market and we are using internet not only as a marketing tool but also as a tool to enable them to understand if a unique product has high demand in the market. Indian MSMEs are looking at e-commerce as an innovative tool to build fresh business models.

Mr. Chaudhary also said by adopting e-commerce MSMEs shall achieve significant advantages such as increased revenues and margins, improved market reach, access to new markets, cost savings in marketing and communication spend, customer acquisition and improved customer experience.

Addressing the event, Mr S.N. Tripathi, Additional Secretary & Development, Commissioner (MSME), Ministry of MSME, Government of India said we need to move fast towards digitising India.

n++Inadequacy of bank branches is one primary reason why cash dominates small businesses. Many rural branches are open for just a day or two in a week. People consider bank postings in rural India as a punishment. The smaller the enterprise, the bigger the problemn++, according to a study titled, MSMEs in India: The Paradigm shift, jointly conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Resurgent India at the ASSOCHAM National Summit on E-Commerce for MSMEs .

The study highlights that the government must realise that the small scale sector will certainly pick it up (move to e-payments). But it is a gradual process. Also, it is important to acknowledge that money generated in business is not irregular. Certain issues cannot be pushed so much that the system chokes and the outcome is distorted.

Irrespective of the bright side of upcoming GST, SMEs must be mindful of its accompanying challenges such as increase in complicate costs and alignment of IT systems with new processes. Thus, for the SMEs, GST throws a mix bag of opportunities and challenges to explore, adds the joint study.

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GVK Power gains as promoter raises stake
Dec 07,2016

Meanwhile, the S&P BSE Sensex was up 39.93 points or 0.15% at 26,432.69.

On the BSE, 93,000 shares were traded on the counter so far as against the average daily volumes of 17.67 lakh shares in the past one quarter. The stock had hit a high of Rs 5.82 and a low of Rs 5.62 so far during the day.

The stock had hit a 52-week high of Rs 9.44 on 12 January 2016 on and a record low of Rs 4.13 on 6 June 2016. It had underperformed the market over the past one month till 6 December 2016, sliding 13.9% compared with the Sensexs 3.23% fall. The scrip had also underperformed the market in the past one quarter, declining 12.17% as against the Sensexs 8.92% fall.

The small-cap company has equity capital of Rs 157.92 crore. Face value per share is Rs 1.

G V Krishna Reddy offloaded 2.37 crore shares of GVK Power & Infrastructure (GVK Power) at Rs 5.70 per share in a bulk deal on the NSE on 6 December 2016. G V Sanjay Reddy sold 4.26 crore shares at Rs 5.70 a piece. Krishnaram Bhupal liquidated 2.84 crore shares at Rs 5.70 per share. Vertex Projects LLP bought all 9.48 crore shares in these deals.

G V Krishna Reddy, G V Sanjay Reddy, Krishnaram Bhupal and Vertex Projects LLP owned 4.12%, 7.42%, 4.95% and 37.76% stake respectively in GVK Power end September 2016.

GVK Power & Infrastructure reported net loss of Rs 13.41 crore in Q2 September 2016, compared with net loss of Rs 8.09 crore in Q2 September 2015. Net sales rose 3.2% to Rs 7.13 crore in Q2 September 2016 over Q2 September 2015.

GVK Power & Infrastructure is a leading Indian conglomerate with presence across energy, resources, airports, transportation, hospitality and life sciences sectors.

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Suven Life Sciences gets healthier after securing one product patent in India
Dec 07,2016

The announcement was made during market hours today, 7 December 2016.

Meanwhile, the BSE Sensex was up 50.21 points, or 0.19%, to 26,444.92.

On the BSE, 20,974 shares were traded in the counter so far, compared with average daily volume of 83,973 shares in the past one quarter. The stock had hit a high of Rs 188.70 and a low of Rs 183.45 so far during the day. The stock had hit a 52-week high of Rs 275.20 on 29 December 2015. The stock had hit a 52-week low of Rs 144.35 on 19 February 2016.

The stock had outperformed the market over the past one month till 6 December 2016, rising 5.78% compared with the Sensexs 3.23% fall. The scrip had also outperformed the market in past one quarter, falling 2.58% as against the Sensexs 8.92% fall.

The small-cap company has equity capital of Rs 12.73 crore. Face value per share is Re 1.

Suven Life Sciences said that the patent is corresponding to the new chemical entities (NCEs) for the treatment of disorders associated with neurodegenerative diseases and the patent is valid through 2024.

Suven has a total of twenty granted patents from India, with this new patent. These granted patents are exclusive intellectual property of Suven and are achieved through the internal discovery research efforts. Products out of these inventions may be out-licensed at various phases of clinical development like at phase-I or phase-II.

Suven Life Sciences net profit rose 5.2% to Rs 26.56 crore on 1.2% decline in net sales to Rs 115.55 crore in Q2 September 2016 over Q2 September 2015.

Suven Life Sciences is a biopharmaceutical company specializing in drug discovery and developmental activities in central nervous system disorders and contract research and manufacturing services (CRAMS).

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Indias Internet population likely to touch 600 million by 2020: study
Dec 07,2016

With increased 4G and 3G penetration, the Internet user base in India is rapidly expanding and has reached a penetration of over 27% versus 50.3% penetration in China and expected to double to 600 million users by 2020 from 343 million users currently, according to an ASSOCHAM- Deloitte joint study.

India internet user is expected to almost double to 600 million users by 2020 from approximately 343 million users currently. Going forward, rural adoption of data-enabled devices is expected to increase with the BharatNet initiative under Digital India, reveals ASSOCHAM-Deloitte joint study.

India is the second largest mobile phone market globally with over 1 billion mobile subscriptions. Of this, smartphone users account for approximately 240 million subscriptions which is expected to grow to 520 million by 2020, adds the study.

Spectrum availability in Indian metros is about a tenth of the same in cities in developed countries. This has put a major roadblock in providing high speed data services. Public Wi-Fi penetration remains low. Globally, there is one Wi-Fi hotspot for every 150 citizens. For India to reach that level of penetration, over 8 million hotspots are required of which only about 31,000 hotspots are currently available, reveals the study.

Currently, over 55,000 villages remain deprived of mobile connectivity. This is largely due to the fact that providing mobile connectivity in such locations is not commercially viable for service providers, adds the study.

Challenges in policy, such as taxation, right of way, restrictive regulations etc. are major roadblocks in realizing the vision of Digital India. Some of the common policy hurdles include the following lack of clarity in FDI policies, for instance, have impacted the growth of e-commerce.

Implementation of the Digital India program has been hampered by contracting challenges such as the projects assigned to PSUs are delayed given challenges related to skills, experience and technical capabilities.

Several RFPs issued by the government are not picked up by competent private sector organizations since they are not commercially feasible. Reports suggest that, as recently as 2014, nearly 70% of Indian consumers indicated that lack of awareness was the main reason for not using internet services. Non availability of digital services in local languages is also a major concern, adds the joint study.

With the proliferation of cloud-based services like DigiLocker, data security has emerged as a major challenge. The recent data breach in August 2016, in which debit card data for more than 3.2 million subscribers was stolen highlights the importance of implementing foolproof security systems.

A uniform RoW policy across all states with a reasonable cost structure is required along with a single window mechanism for granting RoW permissions. PPP models need to be explored for sustainable development of digital infrastructure, as has been the case for civic infrastructure projects like roads and metro project. In addition, the government should make efforts to make additional spectrum available to telecom service providers for deployment of high speed data networks, noted the study.

Effective collaboration with the private sector is critical to the development of the digital infrastructure. Innovative engagement models that ensure commercial viability needs to developed jointly through consultation with industry bodies. This will encourage private sector participation and ensure a better response to infrastructure RFPs. In addition, startups need to be incentivized for the development of the last mile infrastructure and localized services and applications.

In rural and remote areas, private sector players should be incentivized to provide last mile connectivity. USOF can be effectively used to incentivise and create a viable business model. The deployment of funds so far has been erratic and not been used to effectively to fund the cost of infrastructure creation in rural areas.

Satellite communication solutions could be used to speed up broadband access in rural and remote areas. For instance, banks can use VSAT technology to connect remote ATMs, remote branches that need instant access to customer data. It could be used as a last mile connectivity solution in rural areas which lack telecom networks, highlighted the study.

For the success of the Digital India program, capacity building is crucial. In addition to infrastructure development, Digital Literacy, skill building and higher adoption of digital solutions is key to program success, said the study.

Despite rising smartphone penetration and internet user base, digital literacy in India has been low. In order for the benefits of the Digital India programme to reach all sections of the population, improving digital literacy is imperative. A strong skill base is required to support the initiatives and services that are envisaged under the Digital India umbrella.

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