Day: March 13, 2025

Renewable energy accounted for 22.49% of the total electricity generation in the country in 2024-25 (till January), the Union ministry of new and renewable energy informed the Rajya Sabha on Tuesday.

The information was provided by Shripad Yesho Naik, Union minister of state (MoS) for renewable energy in a written response to questions by CPI MP V Sivadasan.

Naik had said, on February, 11 that in line with Prime Minister Narendra Modi’s announcement at COP26, the ministry is working towards achieving 500 GW of installed electricity capacity from non-fossil sources by 2030. To be sure, generation is the amount of electricity produced over a period of time, while capacity is the maximum amount of electricity that can be produced.

Over the last nine years, contribution of the renewable energy sector to total energy generation increased from 17.28% in 2014-15 to 20.75% in 2023-24, according to the Renewable Energy Statistics Report 2023-24. In 2022-2023, the report states that renewable energy accounted for 22.61% of total electricity generation.

According to India’s updated nationally determined contribution (essentially, emissions reduction target) under the Paris Agreement in August 2022, it aims to reduce emissions intensity of its GDP to 45% by 2030 from the 2005 level, and increase the share of non-fossil fuel-based energy resources to 50% (500GW) of its installed power generation capacity by 2030. India is yet to update its NDC for 2035 period.

On Tuesday, Naik also responded to questions on increase in solar power capacity and manufacturing.

India’s solar power sector has witnessed an increase in capacity over the past decade, rising from 2.82 GW in 2014 to 100 GW in 2025, he said in response to questions by BJP MP Jaggesh.

“India has also made significant strides in solar manufacturing. In 2014, the country had a limited solar module manufacturing capacity of just around 2 GW. Over the past decade, this has surged to 67 GW, as enlisted under the Approved List of Models and Manufacturers,” he said.

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Global brokerage firm CLSA has an ‘Outperform’ rating on IndusInd Bank but has lowered its price target from ₹1,300 to ₹900 per share. The revised price target suggests a potential upside of 31% from current levels.

The foreign brokerage wrote in its note that the past few days have been turbulent for the bank, starting with a one-year extension for the MD, followed by the disclosure of a ₹1,500 crore net worth hit due to an accounting gap.

This has naturally raised investor concerns about the possibility of further negative developments.

CLSA cautioned that uncertainty may persist over the next two to three quarters, with fears of additional financial issues and questions surrounding management stability.

The brokerage also mentioned that appointing a PSU banker as MD could further dampen investor sentiment.

Additionally, the potential invocation of the promoter’s pledged shares by lenders could add to the uncertainty.

However, CLSA believes that, over time, the bank’s fundamentals will take over.

In the near term, the brokerage said that two key positives — a recovery in the microfinance segment and improved banking system liquidity, which, along with potential rate cuts, could provide some relief to margins.

Citi also has a ‘Buy’ rating on IndusInd Bank, but cut its price target to ₹1,160 from ₹1,378 earlier. It said that the recent developments has led them to cut IndusInd Bank’s earnings estimates for financial year 2025 by 25%.

Shares of IndusInd Bank crashed 27% on March 11, after the Mumbai-based private lender reported some deficiencies in its derivatives accounting transactions prior to April 1, 2025. Internal estimates anticipate a hit of ₹1,577 crore due to this issue.

The fall led to a market capitalisation erosion of close to ₹20,000 crore and the stock also entered the F&O ban.

The bank’s MD & CEO Sumant Kathpalia assured investors that IndusInd Bank will turn in a profit during the March quarter despite this hit and that the issue is a one-off in a recent interaction with CNBC-TV18.

Shares of IndusInd Bank saw a marginal recovery on Wednesday, when the stock saw some short-covering as it was in the F&O ban, which means no new positions can be created in the stock.

The stock settled 4.4% higher on Wednesday at ₹684.7 apiece. The stock is now under Stage 1 of the Short-term ASM framework. The margin rate applicable under this stage is 1.5 times the existing margin, or 40% and is capped at 100%.

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Reliance Jio and Bharti Airtel have signed agreements with SpaceX to distribute Starlink’s satellite internet services in India. The deals involve selling Starlink’s equipment through Jio and Airtel’s retail networks, while Jio will also provide customer service, installation, and activation support.

Additionally, the partnership will focus on delivering high-speed internet to businesses, schools, healthcare centres, and remote communities across India.

However, these agreements are subject to regulatory approval. SpaceX is still awaiting permission from the government to officially launch Starlink’s services in the country.

Dayanand Mittal, an analyst at JM Financial Research, said, “As of now, the agreement seems limited to Bharti and Jio distributing Starlink’s satellite broadband services through their extensive retail network, mainly for B2C and B2B customers in rural and remote areas. However, in the future, Starlink may also collaborate with telecom companies in the field of direct-to-cell satellite services, similar to how it has partnered with telcos in several countries worldwide.”

HOW STARLINK FITS INTO INDIA’S TELECOM MARKET

Starlink’s primary focus is connecting rural and hard-to-reach areas using satellite technology. Analysts believe that the partnership with Jio and Airtel does not compete with their existing broadband services, such as Jio Fiber and Airtel Xstream Fiber.

Instead, it is expected to complement their business by expanding internet access to places where laying fibre-optic cables is difficult or expensive.

Mittal further added, “Given that Starlink’s satellite internet is primarily for rural and remote regions, this agreement complements rather than competes with Bharti and Jio’s broadband business. It will help in expanding high-speed internet access to areas that are otherwise difficult to reach.”

Currently, both Jio and Airtel have their own satellite broadband venturesAirtel through Eutelsat OneWeb and Jio through SES. The agreement with Starlink adds another layer of collaboration in the satellite internet space. In the future, there is also potential for direct-to-mobile satellite services, similar to what Starlink has done with telecom providers in other countries.

JM Financial Research said in a report, “Satellite internet plans also come with data caps and limited speeds, whereas Jio and Airtel provide unlimited data and higher speeds. Hence, satellite internet pricing needs to reduce sharply to become competitive in the price-conscious Indian market.”

Since Starlink’s services are more expensive and offer lower speeds, analysts believe they are unlikely to attract a large number of urban users. Instead, it will remain a solution for areas with no other internet options, such as hilly regions, remote villages, and islands.

IMPACT ON INDIAN TELECOM COMPANIES

The impact of Starlink’s entry on Jio, Airtel, and Indus Towers is expected to be limited. Since satellite broadband is expensive and not a direct substitute for fibre or mobile networks, Jio and Airtel will continue to dominate India’s telecom market.

Mittal said, “We continue to believe that Starlink’s satellite broadband services pose a limited threat to telcos’ home broadband business given its higher pricing and limited speed. Further, Starlink’s direct-to-cell satellite services are also unlikely to disrupt telcos’ key wireless business given its dependence on telecom companies and its inferior performance.”

According to JM Financial Research, the home broadband segment contributes only 6 to 10% to Jio and Airtel’s expected earnings by FY30. Since Starlink is unlikely to disrupt this market significantly, there is no major financial risk to these companies.

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