Adani Group chairman Gautam Adani speaks at an event in Jaipur on November 30, 2024.
| Photo Credit: AP

The story so far: Last week, the U.S. Department of Justice charged two officials of a renewable energy company listed in the U.S. in connection with a bribery scheme allegedly perpetrated by Gautam Adani, chairman of the Adani Group, and his associates including his nephew Sagar Adani. Several officials of an Adani Group company have been accused of bribing government officials in various Indian States to receive business favours.

What followed the revelations?

Shares of various Adani Group companies dropped sharply; they have recovered most of their losses in the last week after Adani Green Energy Ltd. (AGEL) filed its first response to stock exchanges, denying the bribery charges pressed by the American market regulator. The Adani Group has claimed that the allegations of bribery cost the group’s listed companies a loss of $55 billion in market value. The conglomerate had notably lost more than $150 billion in market value last year after fraud allegations made by U.S. short-seller Hindenburg Research.

Are lenders likely to review plans?

The latest bribery allegations are likely to make it harder for the Adani Group to raise funds from overseas investors, which means the company may have to rely more on domestic investors for its financing needs. Local lenders, including Indian banks that currently lend to the Adani Group, too may review their exposure to the group. The State Bank of India, which is the largest lender to the Adani Group among Indian banks, is exposed with loans worth ₹33,800 crore. While this represents less than 1% of the bank’s total loan book, a Reuters report on Thursday contended that SBI has said it will be cautious about disbursals to the Adani Group. The bank will however, continue funding for projects nearing completion.

How have rating agencies responded?

Fitch Ratings, Moody’s and S&P Global took negative rating actions on Adani firms this week. As The Hindu reported, citing governance risks for its rating action, Moody’s said there could be a broader credit impact from AGEL’s crisis on group firms “given Gautam Adani’s prominent role as chairman of each of the rated entities or their parent companies as well as the controlling shareholder.” Fitch Ratings also took negative rating actions on the Adani Group’s infrastructure entities. S&P Global Ratings lowered its outlook on three Adani Group entities to negative, pointing at risks to funding access following the U.S. indictment. AGEL had to shelve a $600 million bond issue as a result.

What are the allegations?

The U.S. DOJ alleges that the AGEL promoter and senior officials paid bribes worth $265 million to officials in Andhra Pradesh, Chhattisgarh, Odisha, Tamil Nadu, and Jammu and Kashmir for the sale of renewable energy produced by AGEL. It is alleged that these bribes were paid so that State power distribution companies (DISCOMS) would purchase eight gigawatts worth of energy from AGEL’s renewable energy project. AGEL had won the right to sell renewable energy to interested buyers through the Solar Energy Corporation of India (SECI), a public sector unit owned by the Centre.

It is alleged that DISCOMS were unwilling to purchase power from AGEL due to the high price quoted. Hence, bribes were paid by Adani Group officials to prod State government officials to purchase power at prices favourable to the Adani Group. Azure Power Energy Ltd., a New Delhi-headquartered energy company listed in the U.S. and whose officials have been indicted for bribery by the DOJ, is also alleged to have colluded with AGEL officials to bribe State officials.

What are the implications?

Allegations against AGEL officials could lead to higher costs of capital for the Group and also affect its profitability. However, the allegations may have no impact if lenders were already implicitly aware of potential corrupt practices and factored this in while making their lending decisions. The charges against AGEL have also raised doubts about the Centre’s policy goal of boosting the nation’s renewable energy capacity to 500 gigawatts by 2030.

The Centre has been prodding State governments to increase renewable energy adoption through Renewable Purchase Obligations which obligate States to purchase a certain minimum amount of their power from renewable energy sources. However, State DISCOMS have been reluctant to follow the mandate as they are already financially burdened and lack the infrastructure necessary to source and distribute renewable energy. Further, some analysts also note that governments often renege on their guarantee to purchase energy from renewable energy companies, pushing some of these companies resort to illegal means, including bribery, to sell power.

Taxed at a significantly lower rate following the introduction of the concessional tax regime in 2019, India’s largest corporates may have saved over ₹3 lakh crore in tax payments since then. This is in addition to over ₹8 lakh crore in revenue foregone through various deductions granted to companies in the decade since 2012-13 (FY13).

Experts note that while the tax cuts point towards the need to rationalise tax incentives, a decline in corporate tax-gross domestic product (GDP) ratio could limit the government’s ability to finance additional development expenditure.

Until 2019, a corporate tax rate of 25% was levied on domestic companies with an annual turnover of up to ₹400 crore. It was 30% for the rest. The new tax regime slashed the rate to 22% as long as the companies forgo certain deductions under the Income Tax (IT) Act. In addition to this, tax rates for new manufacturing companies were lower, provided they fulfilled certain conditions.

Suranjali Tandon, Associate Professor at NIPFP, explains that the new tax regime is indicative of a preference for a “simpler tax system with lower rates” as corporate tax rates have undergone changes at different points before to align with the country’s economic priorities.

“However, there is no consensus on the optimal corporate tax rates as this may vary as per economic circumstances and context,” she says.

R. Nagaraj, Distinguished Senior Fellow at IIT Bombay, argues that a reduction in corporate tax rates mainly serves the “class interests” of the “business community” — evident in the simultaneous increase in luxury consumption. “This is the standard Laffer curve argument which was popular during the Reagan administration in America. But we do not have any evidence of this working anywhere in the world, especially not in India.” To get a sense of the amount saved in taxes as a result of this incentive, data of India’s largest companies, those on the BSE 500 index, were considered, which were sourced from the Capitaline database.

So, until FY19, The Hindu’s analysis shows, the effective tax rate for these companies, which is the average rate at which the profits (before taxes) of corporations are taxed, was 30% or higher. The ratio declined in the subsequent years, and touched a low of 21.2% in FY24. Moreover, the top 10% of the BSE 500 companies continued to enjoy lower effective tax rates compared to the overall average for all companies, even as the gap has considerably narrowed in recent years.

Table 1 shows the effective tax rate (in %)

Charts appear incomplete? Click to remove AMP mode.

“As large companies opt for the new regime, the lower effective tax rate is expected,” says Prof. Tandon.

In absolute terms, this could have translated into a tax saving of roughly ₹3.14 lakh crore for these companies since FY20.

The figures were estimated by calculating the compound annual growth rate (CAGR) in taxes paid by companies in the five years ending at FY19 (which was 11.5%) and also assuming a similar rate of growth for the subsequent years until FY24 had the tax cuts not been introduced, provided all other factors remained constant (Table 2).

Table 2 shows the tax data for BSE500 companies for which figures were available^

Company profits grew at a much slower pace at 10.4% in the five years ending at FY19. In the five years since FY20, however, company profits have grown at a rate of 32.5% while corporate taxes paid by these companies have done so only by 18.6%.

Apart from tax rates and profits, the level of economic activity also influences corporate tax collections, says Zico Dasgupta, Assistant Professor of Economics at Azim Premji University.

While the intent behind such changes was to encourage private investment, create jobs and “establish a globally competitive business environment for certain domestic companies”, Prof. Dasgupta says there is little evidence to suggest that tax incentives make businesses more competitive.

But since tax concession also means forgone expenditures by the government, it seems to me that the more important policy question pertains to a cost-benefit analysis of providing greater tax concession.”

He says, “The corporate tax concessions announced in the pre-COVID-19 period do not seem to be based on such considerations.”

Prof. Tandon notes that since the incentives coincided with the pandemic, the evidence to suggest increased private sector investments due to rate cuts is “mixed”. “Nevertheless, the profitability of companies has allowed them to create reserves and to invest in current assets. In part, the anticipated demand can influence the decision to make capital investments.”

Companies also avail tax concessions in the form of deductions under various sections of the IT Act. For instance, tax incentives are granted on donations made to charitable trusts, contributions to political parties, expenditure on scientific research or on profits of undertakings set-up in north-eastern States among others. The government calculates the revenue impact of such concessions in the Budget document each year and this is done for a larger database of over 10 lakh companies.

Revenue forgone due to such deductions amounts to ₹8.22 lakh crore in the decade ended FY22 (latest data). The data show an underestimation of the revenue impact in six of the ten years considered (Table 3).

Table 3 shows the revenue impact of major tax incentives for corporate tax payers (in Rs. crore). It also shows the projected revenue impact (in Rs. crore). The data show an underestimation of the revenue impact in six of the ten years considered.

With inputs from Sindhu Hariharan

Source: Budget documents, Capitaline

samreen.wani@thehindu.co.in

A vehicle drives past solar panels installed at the Adani Green Renewable Energy Plant in Khavda, Gujarat.
| Photo Credit: AFP

Shares of Adani Green Energy jumped 9% on Monday (December 2, 2024) morning after Adani group chairman Gautam Adani said his conglomerate was committed to compliances and “every attack makes us stronger” amid recent allegations and his indictment in the U.S.

The stock of Adani Green Energy Ltd surged 9% to ₹1,445 on the BSE.

Among other group firms, shares of Adani Ports climbed 2%, Ambuja Cements went up by 1.33%, ACC 1% and Sanghi Industries 1%.

However, group stocks, including Adani Total Gas, Adani Energy Solutions, Adani Enterprises and Adani Power were trading lower.

Adani Total Gas was trading at ₹774.45, down 4.57%, Adani Energy Solutions at ₹805.60, decline of 4.16%, Adani Enterprises ₹2,428.20, a fall of 1.38% and Adani Power at ₹546.50, lower by 1.45% on the BSE.

Coming out in public for the first time after recent allegations and his indictment in the U.S., Adani group chairman Gautam Adani on Saturday (November 30, 2024) said his conglomerate was committed to compliances and “every attack makes us stronger”.

“Less than two week back, we faced a set of allegations from the U.S. about compliance practices. This is not the first time we have faced such challenges. What I can tell you is that every attack makes us stronger,” he said addressing the 51st Gems and Jewellery Award in Jaipur.

On November 20, 2024, the United States Department of Justice and the US Securities and Exchange Commission (SEC) issued an indictment and a civil complaint in the New York district court against Gautam Adani, Sagar Adani and Vneet Jaain, key functionaries of Adani Green Energy Ltd (AGEL).

AGEL is at the heart of allegations of $265 million bribes allegedly being paid to Indian officials to secure solar power sale contracts that could bring in $2 billion of profits over a 20-year period to the firm.

The Adani Group last week denied all allegations as baseless and said it would seek legal recourse to defend itself.

The story so far: Parliament’s winter session has remained chilly as a stand-off continues between the Centre and Opposition over the indictment of Indian businessman Gautam Adani by the US Department of Justice (DoJ). The Rajya Sabha had listed the Oilfields (Regulation and Development) Amendment Bill, 2024 for passage on Monday (December 2, 2024), but the Upper House was quickly adjourned for the day without any legislative business being conducted. The Bill had been introduced in the Upper House during the Monsoon session. 

“This Bill aims to ensure policy stability for oil and gas producers and allow international arbitration,” said Union Oil Minister Hardeep Singh Puri while speaking at the Geo India 2024 conference on November 15. Promising private sector companies ‘zero interference’ by the government, Mr. Puri also said that the Bill would enhance India’s domestic output and cut down its reliance on oil imports. 

According to the Centre for Monitoring Indian Economy (CMIE), India’s oil and petroleum imports for the past three quarters have been worth ₹4,121,787.4 million, ₹4,294,979.6 million and ₹3,130,294.1 million respectively. This is worth at least thrice the country’s quarterly oil and petroleum exports.  

“For India to reduce its import dependence, the increase in domestic production must outpace the country’s rapidly growing energy demand,” explains Vivek Rahi, Partner, KPMG in India, adding, “Imports have largely remained unchanged in spite of policy measures aimed at boosting domestic production—such as the Hydrocarbon Exploration and Licensing Policy (HELP), the Discovered Small Fields (DSF) policy, gas pricing reforms, and reduced royalty rates for deepwater, ultra-deepwater, and high-pressure/high-temperature areas.”

Here’s a look at the proposed amendments and how they will affect India’s oil industry.

Mineral oils definition and lease expanded

Currently, the petroleum industry is burdened by delays in obtaining environmental and forest clearances, complexities in land acquisition, absence of comprehensive standards, procedures, and guidelines for operational and safety compliance, explains Mr. Rahi.

“India is believed to hold yet-to-find potential of 13 billion tons of oil equivalent. This bill addresses two critical issues to help India exploit these resources – separation of petroleum and mining activities and expanding the definition of mineral oils,” he says, 

In the Oilfields (Regulation and Development) Act, 1948, petroleum and natural gas were the only two defined as mineral oils. This Bill expands the definition to include coal bed methane, oil shale, shale gas, shale oil, tight gas, tight oil, and gas hydrate, but does not include coal, lignite and helium occurring in the petroleum process. Subsequently, the Bill alters the previously used mining lease to introduce a ‘petroleum lease’ which allows companies to explore, prospect (search for oil and gas fields), produce, make merchantable, and dispose of mineral oils. Mining leases in use will remain valid. 

“The broader definition (of mineral oils) enables the efficient exploration, development, and production of both conventional and unconventional hydrocarbon resources without any policy confusion,” says Mr. Rahi, adding, “This (separation of leases) eliminates redundant or irrelevant approvals, streamlining the regulatory framework.”

Expands Centre’s regulatory powers, decriminalises offences

Under the Act, the Centre was empowered to regulate the grant, terms and conditions, and time period of leases, production, storage and conservation of mineral oils and collecting royalties, fees and taxes for mineral oils. This Bill expands the Centre’s powers to include framing rules for lessees to reduce emissions, sharing of oil production and processing units, merger of leases and resolving disputes on leases. 

With India and the energy sector’s focus on green technology, this Bill also urges oil companies to use oilfields for other purposes like hydrogen production, carbon capture utilization and storage or coal gasification.

Explaining how this is reflected in the current practices of the oil and gas industries, Mr. Rahi says, “The global industry is increasingly prioritizing decarbonization with methane capture, carbon capture, utilization and storage (CCUS), and other low-carbon technologies.” Acknowledging that the current viability of such projects is subject to challenges, he adds, “government support, in the form of a policy direction to begin with and possible incentives in the future, could make these projects sustainable.” 

Further, the Bill also decriminalises offences related to the above-mentioned petroleum activities, such as those pertaining to invalid leases and non-payment of royalties; however, it increases the monetary fine for them from Rs. 1000 to Rs 25 lakhs. 

Refuting any claims of avenues for misuse of the decriminalisation clause, Mr. Rahi stresses that it has been a long-standing demand of the industry, as many operators are increasingly outsourcing specific operations to optimize costs. “By shifting from criminal penalties to administrative fines for minor infractions, companies can focus on compliance and operational improvements without the fear of severe legal consequences. This will foster a more predictable environment, encourage innovation, and streamline the regulatory process,” says Mr. Rahi.

Opening up no-go areas to oil exploration

The Centre has allowed oil exploration within previously defined no-go areas, such as those near missile testing sites. In a recent bid, 1.36 lakh square kilometers of area was being offered, of which 38% had been previously marked no-go area, said Mr. Puri. This Bill is an attempt by the Centre to “catch up and make up for somewhat tardy or slow focus on implementation in the past” as oil exploration and production was not in focus for previous governments, says Mr. Puri. 

“While these reforms are designed to enhance exploration and production, achieving a meaningful reduction in import dependency will require a sustained and significant growth in domestic production, particularly in oil, natural gas, and deployment of renewable energy,” Mr. Rahi says.

Beijing considers democratically governed Taiwan its own territory, a claim the government in Taipei rejects. File
| Photo Credit: Reuters

China criticised new U.S. military aid to Taiwan on Sunday (December 22, 2024), saying the $571 million package seriously violates the “one China principle” and provisions of joint communiques between China and the U.S.

 Explained | Why is Taiwan caught between U.S. and China?

China will take “all necessary measures” to protect its sovereignty and territorial integrity, a Foreign Ministry spokesperson said, calling Taiwan “a red line that must not be crossed” in China-U.S. relations, according to a statement released by the Ministry.

Beijing considers democratically governed Taiwan its own territory, a claim the government in Taipei rejects.

नई द‍िल्‍ली. अगर आप आईफोन खरीदने की सोच रहे हैं लेक‍िन ज्‍यादा पैसे खर्च नहीं करना चाहते हैं, तो iPhone 14 एक बढ‍िया च्‍वाइस हो सकता है.  iPhone 14 , आईओएस 16 के साथ आ रहा है और इसे खरीदने के ल‍िए आपको ज्‍यादा पैसे भी नहीं खर्च करने होंगे.  दरअसल, Amazon  इस फोन पर बंपर ऑफर लेकर आया है, ज‍िसके बाद इसकी कीमत 50,000 रुपये से कम हो गई है.

अमेजन पर 512जीबी वाले इस फोन को 89,900 रुपये की कीमत पर ल‍िस्‍ट क‍िया गया है. इस पर अमेजन 14% का ड‍िस्‍काउंट दे रहा है. इस ड‍िस्‍काउंट के बाद फोन की कीमत  76900 हो गई है.

लेक‍िन ऑफर यहीं खत्‍म नहीं हुआ है. Amazon, इस हैंडसेट पर एक्‍सचेंज ऑफर भी दे रहा है. एक्‍सचेंज ऑफर में आप 27300 रुपये का ड‍िस्‍काउंट पा सकते हैं, ज‍िसके बाद 512जीबी वाले आईफोन 14 की कीमत घट कर 47550 रुपये हो जाएगी.

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हालांक‍ि इस बात का ध्‍यान रखें क‍ि एक्‍सचेंज ऑफर में पुराने फोन की कीमत, उसके मॉडल और कंड‍िशन के आधार पर तय होती है. फ्ल‍िपकार्ट इस हैंडसेट पर 60600 रुपये का एक्‍सचेंज ऑफर दे रहा है.

आईफोन 14 के स्‍पेस‍िफ‍िकेशन :
इस फोन में 6.1 इंच का सुपर रेटिना XDR डिस्प्ले द‍िया गया है. यानी आपको इसे इस्‍तेमाल करते वक्‍त आंखों में चुभन मसूस नहीं होगी. कैमरे की बात करें तो इसमें किसी भी रोशनी में बेहतर फोटो के लिए उन्नत कैमरा सिस्टम द‍िया गया है. फ्रंट और बैक कैमरा 12एमपी का है. फोन में सिनेमैटिक मोड अब 4K डॉल्बी विजन में 30 fps तक फोटो और वीड‍ियोज ले सकता है. सुचारू, स्थिर, हैंडहेल्ड वीडियो के लिए इसमें एक्शन मोड द‍िया गया है.

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फोन में फ्रंट और बैक दोनों साइड पर गोर‍िल्‍ला ग्‍लास द‍िया गया है और साइड में एल्‍युमीन‍ियम बॉडी दी गई है. स्‍क्रीन को ऐसे बनाया गया है क‍ि इस पर जल्‍दी स्‍क्रैच नहीं आएगा. सिरेमिक शील्ड और वाटर रेसिस्टेंस के साथ इस फोन को पानी से कोई ज्‍यादा फर्क नहीं पडेगा.

फोन में 3279 mAh की बैटरी है और ये फास्‍ट चार्ज‍िंग को सपोर्ट करता है, जो 30 म‍िनट के भीतर 50 फीसदी चार्ज हो जाता है. एक बार फुल चार्ज होने के बाद फोन 20 घंटे तक चल सकता है. फोन में क्रैश डिटेक्शन जैसे महत्वपूर्ण सुरक्षा तकनीक भी दी गई है.

यह भी पढें: 1.19 लाख कीमत वाला MacBook Air M2 म‍िल सकता है 35000 से भी कम दाम में, जानें कैसे

लाइटनिंग-फास्ट परफॉर्मेंस के लिए 5-कोर GPU के साथ A15 बायोनिक चिप दी गई है. ये फोन सुपरफास्ट 5G सेलुलर को सपोर्ट करता है. फोन iOS 16 आधार‍ित है और ये पांच रंगों – म‍िडनाइट, पर्पल, स्‍टारलाइट, ब्‍लू और लाल में उपलब्‍ध है.

Tags: New Iphone, Tech news, Tech news hindi

Gautam Adani, Chairman, Adani Group.
| Photo Credit: ANI

Bangladesh has halved the power it buys from Adani Power, citing lower winter demand, government officials told Reuters on Monday (December 2, 2024), amid disagreements over dues running into hundreds of millions of dollars.

Adani, whose founder has been accused by U.S. authorities of being involved in a bribery scheme in India, charges which he has denied, halved supply to Bangladesh on Oct. 31 over payment delays as the country battles a foreign exchange shortage.

Subsequently Bangladesh told Adani to keep supplying only half the power for now, officials said, although it will keep paying its old dues.

“We were shocked and angry when they cut our supply,” said Md. Rezaul Karim, chairperson of the state-run Bangladesh Power Development Board (BPDB). “Winter demand is now down, so we have told them there is no need to run both units of the plant.”

Adani has been supplying power under a 25-year contract signed in 2017 under ousted Prime Minister Sheikh Hasina, from a $2-billion power plant in Jharkhand that has two units, each with capacity of about 800 megawatts.

A document seen by Reuters showed the plant ran at only 41.82% capacity in November, the lowest this year, with one unit shut since Nov. 1.

Two BPDB sources said Bangladesh had bought about 1,000 MW a month from Adani last winter, adding that Adani had asked the board when it would resume normal purchases, but had not received a definitive answer.

An Adani Power spokesperson said the firm was continuing supply to Bangladesh, although mounting dues were a significant concern, making plant operations unsustainable.

“We are in constant dialogue with senior officials of BPDB and the government, who have assured us that our dues will be cleared soon,” said the spokesperson.

The firm was confident Bangladesh would fulfil its commitments, just as Adani had upheld its contract obligations, he added.

Mr. Karim said Bangladesh owed Adani about $650 million, and paid about $85 million last month and $97 million in October.

An Adani Power source, speaking on condition of anonymity, said the dues had jumped to about $900 million, hurting its debt profile and risking a higher cost of funds.

Bangladesh wants to sharply lower prices under the Adani deal, unless it is cancelled by a court, which has called for an investigation into it, the de facto minister for power and energy told Reuters on Sunday.

The Adani Power spokesperson said the firm had no indication that Bangladesh was reviewing its power purchase pact.

Adani charges the highest rate of all Indian suppliers to Bangladesh, a government document seen by Reuters showed.

Its cost per unit was 14.87 taka during the fiscal year that ended on June 30 2024, compared with an average of 9.57 for all Indian suppliers.

The retail price in Bangladesh is 8.95 taka a unit, leading to an annual power subsidy bill of 320 billion taka ($2.7 billion).

“Because the prices are high, the government has to subsidise,” said Muhammad Fouzul Kabir Khan, Bangladesh’s power and energy adviser. “We would like power prices, not only from Adani, to come down below the average retail prices.”

““The physics behind engine performance is complex, but AI helps us understand it more deeply,” Alok Nanda, CTO, GE Aerospace – India, said.
| Photo Credit: GE Aerospace

As the aerospace industry continues to push the boundaries of innovation, one thing remains clear: fundamental sciences are at the heart of ground-breaking technological advancements. “We emphasize the importance of fundamental sciences in developing talent for the future,” Alok Nanda, CTO of GE Aerospace said in an exclusive interview on The Hindu’s Interface podcast, highlighting the critical role of foundational knowledge in shaping the future of flight.

This talent philosophy underpins GE Aerospace’s ongoing contributions to aerospace technology. From material science breakthroughs to AI-driven engine maintenance and open fan design, GE Aerospace has been innovating at scale, nurturing talent and integrating deep scientific principles into research.

Advancing material sciences

Aerospace engineers are constantly challenged to develop materials that can withstand extreme conditions—particularly the high temperatures inside jet engines, which exceed the melting points of most known metals. To address this, GE Aerospace has made significant advancements in ceramic matrix composites (CMCs). These composites combine ceramic fibres with a ceramic matrix, offering the high temperature resistance of ceramics along with improved toughness, which is crucial for engine durability.

“We’ve developed CMCs that allow us to achieve the temperature resistance needed for modern jet engines, while also ensuring the material’s toughness. This is a fundamental scientific breakthrough that has taken over two decades to perfect,” Mr. Nanda explained.

These materials are already being used in GE Aerospace’s LEAP engines and will feature even more prominently in future engines, including the GE9X, which powers Boeing’s 777X aircraft. By relying on these advanced materials, GE Aerospace is ensuring that engines are not only more efficient but also capable of withstanding the extreme conditions of flight for longer periods.

Designing for efficiency and sustainability

GE Aerospace is innovating on the open fan engine design that promises to reduce fuel consumption by up to 20%. The open fan design is based on the concept of using a larger, exposed fan to improve the efficiency of the engine, but it also presents unique challenges, particularly with regard to noise and safety.

“The benefits of an open fan are obvious—it increases efficiency and reduces fuel consumption,” Nanda said. “However, noise reduction and ensuring safety standards are met have been significant hurdles. Thanks to advances in computational power and understanding the underlying physics, we have made breakthroughs in these areas, bringing us closer to commercial viability.”

By combining high-performance computing with an in-depth understanding of materials and aerodynamics, GE Aerospace has made significant progress in solving these issues, with open fan engines now poised to play a key role in future aircraft designs.

AI in predictive maintenance and engine design

AI is revolutionizing both the design and maintenance of engines, helping companies like GE Aerospace optimize their products for efficiency and safety.

“Using AI, we can analyse real-time data from engine inspections and predict when maintenance should be performed. This reduces downtime, improves operational efficiency, and helps airlines get the most out of their fleets,” Nanda highlighted.

AI is also aiding in engine design, where computational tools allow engineers to explore the design space in far greater detail than before. With access to vast computing power, engineers can now simulate various configurations and optimize designs faster and more accurately, leading to more efficient and durable engines.

“The physics behind engine performance is complex, but AI helps us understand it more deeply. It enables us to push the boundaries of design, which is essential for developing engines that are not only more efficient but also more sustainable,” Nanda added.

Connecting fundamental sciences to emerging technologies

From material science to AI-driven optimization, the integration of deep scientific knowledge with cutting-edge technologies is setting the stage for the next generation of flight. For GE Aerospace, this focus on science is not just about developing new products; it’s about ensuring that the talent behind these innovations is equipped with the skills to solve the challenges of tomorrow.

“By developing a deep understanding of science and how to apply it, we can continue to push the envelope of innovation,” Nanda shared.

But there is no “silver bullet” that will solve all problems at once, Nanda cautioned. Instead, the industry must continue to mature technologies, iterating and refining them to meet the demands of the future.

(Listen to the full discussion with Alok Nanda on the Interface podcast or watch the YouTube video for more insights.)

Indian Coast Guard personnel apprehend a Myanmarese fishing boat with more than 6,000 kg of methamphetamine on November 25, 2024. Photo: X/@IndiaCoastGuard via PTI

Andaman and Nicobar police will seek details from Elon Musk’s Starlink, they said on Tuesday (December 3, 2024), in a bid to hunt down drug smugglers who used its satellite internet device to navigate deep seas and bring meth worth $4.25 billion into Indian waters for the first time.

In their biggest such seizure, Andaman and Nicobar islands police uncovered more than 6,000 kg of meth last week in a Myanmar boat carying sacks of suspected contraband, and detained six Myanmar nationals.

Smugglers using Starlink satellite internet

But the incident has set off alarm bells as it is the first time Starlink’s device has been used to navigate and reach Indian waters, Hargobinder S. Dhaliwal, a top police officer in the Andaman islands who is handling the case, told Reuters.

Starlink, which says it provides coverage in international waters, has plans to launch in India, but says its coverage in territorial waters is contingent on government approval.

“This (case) is different because it is bypassing all the legal channels,” Mr. Dhaliwal added. “They directly operated (phones) with satellite, creating a Wi-Fi hotspot.”

He said he planned to seek from Starlink details such as who bought the device and when, as well as its usage history.

“They (smugglers) were using Starlink since their journey started from Myanmar,” he said.

Starlink did not immediately respond to a request for comment.

Andaman and Nicobar police estimated the seized meth had a retail market value of 360 billion rupees ($4.25 billion).

Their inquiry comes as Starlink inches closer to a launch in India after lobbying for months to secure satellite spectrum, following a face-off with Indian billionaire Mukesh Ambani who repeatedly opposed the move and urged spectrum auctions.

Mr. Dhaliwal said the smugglers used the Starlink Mini device, described on its website as “a compact, portable kit that can easily fit in a backpack”.

Police checking involvement of local or foreign syndicates

Police in the Andaman and Nicobar islands have said they are checking the involvement of any local or foreign syndicates in the whole network as they tackle the latest seizure case from various angles.

In 2023, seizures of methamphetamine, or meth, as it is known, reached a record high of 190 tons in east and southeast Asia, as meth trafficking on maritime routes has increased in recent years, the United Nations Office on Drugs and Crime says.

India is a growing transit and destination market for methamphetamine from Myanmar, the UNODC said in its report this year.

In an important management change at Air India, the airline announced that an old-hand from Singapore Airlines, Basil Kwauk, will replace Klaus Goersch as the Chief Operations Officer.

In an internal announcement, Air India’s MD & CEO Campbell Wilson informed that Mr. Goersch would be leaving Air India at the end of December “to take up a senior role closer to his family in the United States”. He was appointed for the role in October 23.

Mr. Kwauk has 25 years of experience at Singapore Airlines. He was sent to Vistara on secondment where he was senior vice-president, flight operations, from 2017 and 2021 before he returned to Singapore from New Delhi.

Mr. Kwauk has flown a multitude of aircraft ranging from A319s to A340s and Boeing 787s, 777s and 747s. He holds a Mechanical Engineering degree from National University Singapore.

The development follows the merger of Vistara, which Singapore Airlines co-owned with Tata Sons, with Air India. Singapore Airlines now has 25.1% control in the Air India Group.

Mr. Kwauk is credited for steering Vistara operations through the pandemic. During his tenure, the airline also acquired 9 Boeing 737 from erstwhile Jet Airways as well as recruited requisite crew for flight operations when Vistara was an all Airbus fleet with only 22 planes. The airline also inducted Boeing 787 Dreamliners into the fleet from 2020 onwards and started its foray into international destinations during his time.

Though Mr. Goersch has been described as an “absentee COO” who often worked remotely from the U.S., many of those who have worked with Mr. Kwauk during his stint at Vistara called him a “great choice” for the role. Erstwhile Vistara crew described him as a “people’s person” who often interacted with ground staff to resolve their concerns and devised SOPs friendly for crew and passengers.

Industry watchers said that his appointment was a signal of Air India ensuring that some of the best practices that Vistara came to be known for were also brought into the merged entity, apart from Singapore Airlines getting a share of the pie in the management of the airline.