Cost of borrowing to be reasonable; yields expected at FY21 level: DEA Secy

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The government will borrow about Rs 12 lakh crore for the next fiscal year at a reasonable rate, Economic Affairs Secretary Tarun Bajaj said expressing hope that the yield would be around the current year’s level.


He said that the government will ensure its record borrowing programme for 2021-22 doesn’t crowd out the private sector if credit demand picks up.


Due to the ample liquidity in the market, the cost of borrowing for the government declined during the 2020-21.


Despite large borrowing programme of Rs 12.80 lakh crore for the government, the cost of fund has been 80-100 basis points lower than the previous fiscal year.


Average yield in the first half of 2020-21 was 5.82 per cent. This is nearly 1 percentage point lower than the average yield in the previous financial year. During 2019-20, the average yield for the government borrowing was 6.58 per cent.


Even the latest 10-year G-Sec bond auction bear a coupon rate of 5.85 per cent.


For the coming year, the Secretary in the Department of Economic Affairs (DEA) said “rates would be reasonable…it would be at the current level.

Red-hot rally: BSE firms’ market capitalisation crosses Rs 200 trillion

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The sum of the market value of BSE-listed companies crossed Rs 200 trillion for the first time, on Thursday. The feat comes a day after the S&P BSE Sensex closed above the coveted 50,000-mark.


The Sensex, on Thursday, ended at 50,614.29, up 358.54 points.


The combined of the National Stock Exchange of India-listed companies was a shade lower at Rs 199.1 trillion, based on Thursday’s closing.


The Nifty50 index ended the session at 14,895.65, up 105.70 points.


In dollar terms, the market cap figure of BSE-listed firms is $2.75 trillion — the seventh highest globally. The country’s market cap-to-GDP ratio is now more than 100 per cent. Its nominal GDP (revised estimate for FY21) at current prices is around Rs 195 trillion.


ALSO READ: Retail investor stake in 115 bankrupt companies nears Rs 1,000 cr


The combined market cap of BSE-listed companies had topped the Rs 100 trillion-mark in December 2014. Back then, the market cap-to-GDP ratio was at 80 per cent. In September 2007, when the market cap crossed Rs 50 trillion, the ratio was similar to the current level. The had come

Amazon To Use Smart Cameras To Watch Over Delivery Drivers

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Amazon on Thursday confirmed plans to install artificial intelligence-imbued cameras in delivery vehicles, describing it as part of an initiative to keep drivers safe.

The cameras are designed to watch the road and the driver, noting concerns as well as good practices, according to a tutorial video.

“We are investing in safety across our operations and recently started rolling out industry leading camera-based safety technology across our delivery fleet,” the e-commerce colossus said in response to an AFP inquiry.

“This technology will provide drivers real-time alerts to help them stay safe when they are on the road.”

Word of Amazon watching over delivery drives with smart cameras was met with concerns about privacy and the potential for unfairly harsh scrutiny by the company.

“This amounts to the largest expansion of corporate surveillance in human history,” Fight for the Future deputy directory Evan Green said in a released statement from the digital rights group.

“We’re demanding that Amazon immediately stop the roll out of this unsafe program, and we call on Congress to launch a full investigation into Amazon’s surveillance empire.”

The Seattle-based company has faced criticism over work conditions at its vast logistics network, which includes using contractors for deliveries.

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