FIRST: Every litre of Ethanol, Govt India will lose Rs15-20 in Tax Collections since:
👉Cost of Procuring PETROL is Rs45/lt
👉Cost of Procurement of ETHANOL is Rs65/Lt
👉Difference is Rs20/lt is LOSS IN TAX REVENUE
1020cr Ethanol = 20400cr in Tax Losses/Yr
SECOND: E20 Blended Fuel (Petrol) causes loss of 7-9% fuel efficiency for 4 Wheelers as per the #Nitiayog Report.
On 5100 Crore of Petrol Consumption, 8% Efficiency @ Rs104/lt of Petrol, it’s loss amounts to Rs42,400 crore of EXTRA FUEL COST ON AAM ADMI (Indian Public)
YOU MUST BE WONDERING why your 4 Wheeler Car or Petrol SUV is giving you such a low Mileage post COVID? Almost 6-7% lesser today, Since engines are designed for E0 (Ethanol Zero) but Fuel is E10. In a year, it will Be E20 and then your Vehicles will have 8-9% lower Mileage
THIRD: #Elephant in the Room is #WATER Consumption of #Ethanol. @NITIAyog: Every 1 liter of Ethanol, Water Footprint is 2860 liters of WATER while India faces a BIG SHORTAGE of #FRESH#WATER & Decline of #WaterTable in 200 of 700+ districts
VALUE OF WATER per Ltr of ETHANOL? 🤔
Assuming Just 1 Paise per Litre of Ethanol, with a Water Footprint of 2860 litres (Refer attached Pic), Value of Water is Rs28.60/lt of Ethanol. For 1020 Cr Litres of Ethanol, it’s 29,000 Cr Cost of WATER. At 2 Paisa/Lt, this figure becomes 58,000 Cr in Cost of FRESH WATER
So Let’s SUMMARISE the costs per Year
1) Loss of Tax: 20,000 Cr 2) Loss of Fuel Efficiency (Mileage): 40,000 Cr 3) Loss of FRESH WATER: Rs 29000 to 58000 Cr
So Per year India will lose 89000 to 118,000 Cr in order to save Rs36,000 Cr
NET LOSS: 53000-82000 CRORES/yr 😢🤫😳
But the losses don’t end there
(1) When Engines designed for Pure PETROL use E10 or 10% Blended Ethanol … there is CORROSION of some parts of the ENGINE. Source is the same NITIAYOG report
(2) SUGARCANE destroys the Agriculture Land as ask as hurts CROPS in close Vicinity
(3) We are SUBSIDING FERTILISER and then using that to grow Sugarcane for ETHANOL and then BURNING air up 😳😳😳
(4) The US Recently published a report that #ETHANOL is as Unfriendly to CLIMATE CHANG as PETROL ⛽️ 😳😳😳
DISCUSS: How severe is India’s water crisis & why it is likely to worsen
DID YOU KNOW
👉India is the world’s largest extractor of groundwater, accounting for 244.92 billion cubic metres of annual extraction 😳
👉INDIA is extracting more groundwater than #US & #China COMBINED 😳
👉As a result, as many as 256 of 700 districts in India have reported ‘critical’ or ‘over-exploited’ groundwater levels, according to the Central Ground Water Board data (from 2017)
👉 70 percent of surface water in India is unfit for consumption.
👉 According to a 2019 report of the @NITIAyog, Maharashtra, Gujarat, Karnataka, Jharkhand, Andhra Pradesh & Rajasthan, Uttar Pradesh, Punjab, Delhi, Bengaluru & Chennai have been facing serious water scarcity since 2018.
HOW BAD IS IT ? as per data presented in the Parliament in March 2023, the per capita water availability in 2001 was assessed to be 1,816 cubic metres. It reduced to 1,486 cubic metres in 2021 and is expected to decline further to 1,367 by 2031
DO YOU REALLY WANNA HAVE KIDS?
👉 As per the parliamentary standing committee on water resources, groundwater provides 80% of India’s rural drinking water, 50% of urban drinking water and nearly two-thirds of irrigation needs.
😳
THE MONSOON (Rainy Season): The monsoon accounts for around 70 percent of the country's annual rainfall. It irrigates 60 percent of our net sown area.
👉It is also essential to maintain an optimum level of storage in 140 reservoirs, as per the Central Water Commission.
#UncommonSense
UK/US NRIs & Top 2% Indian Residents (30 Mn Income Earners > Rs6lac/per yr) praise #Medical#Facilities in India especially ability to Approach Specialists Directly
Driving though PUNE/MUM/BLR & reaching Hospital in time in a Medical Emergency is Impossible
These people generally forget that when they compare themselves to the US/UK NRIs vs the Indians in India… one is comparing the Avg US/UK citizen with the Top 2% in India
Let me explain
(1) For Indian hospitals in Major Metros in India average revenue per occupied bed (ARPOB) is Rs65k > 50% Annual Revenue for 60% of Indian population
THIS IS #BIG ! #Hawala 2.0 Will EXPLODE in India post JULY 1st. Just My opinion:
By IMPLEMENTING 20% Tax Collected On Source (#TCS) on Foreign Spend (Currency, FX cards, Credit Cards, Debit Cards, Transfers), it becomes Increasingly more Cost Effective to Transfer Via #Hawala
If you try and BUY #Foreign Currency in the Black, that spread that used to be 2-3%, will now become 10% possibly
Unused Balances of Loaded Forex Cards will Go at a Premium of 10-12%
This REMINDS me of what happened in GOLD SMUGGLING in India post June 2022 when @nsitharaman decided to Raise IMPORT duty on GOLD to 12.5% from previous levels of 7.5%
WILL #ITC Hive off the Non-Tobacco FMCG ?
During Q4 & FY23, Operating PAT Growth delivered by #ITCs non-tobacco #FMCG business has been No1 amongst Peers.
Revenue (+19% YoY) but EBITDA (+76% YoY) & margins a respectable 13.3%
Will Investors Attach Super High PE to Non-Tobac FMCH biz ?
I was looking at DABUR, its Consold Op Profit and PAT declined in FY23 vs FY22... its 3 yr CAGR is just 6% (that's way lower than inflation). Its Fwd PE and EV/EBITDA is 47 & 34 respectively (marketScreener.com)
Now lets look at ITC Non-Tobacco FMCG business. Q4 Segment EBITDA up 76% YoY against Q4 Segment Revenue up 19.4% YoY