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100% FDI In Insurance Gets Cabinet Approval; Bill Likely In Parliament Next Week: Reports

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100% FDI In Insurance Gets Cabinet Approval; Bill Likely In Parliament Next Week: Reports


New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved a proposal to allow 100 per cent foreign direct investment (FDI) in insurance companies in a major economic reform that does away with the 74 per cent limit that was in place for such investments. 

The Cabinet approval will pave the way for attracting more foreign investment in the insurance sector, increase competition which in turn will benefit customers.

The Insurance Laws (Amendment) Bill 2025 is likely to be introduced during the ongoing winter session of Parliament which draws to an end on December 19.

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The Lok Sabha bulletin lists the Insurance Laws (Amendment) Bill 2025, aimed at boosting insurance penetration, accelerating sectoral growth and development, and improving the ease of doing business, among the 13 legislative items for discussion in the parliamentary session.

Finance Minister Nirmala Sitharaman had, during the presentation of the Union Budget for 2025-26, announced a proposal to increase the foreign investment limit in the insurance industry from 74 per cent to 100 per cent as part of broader financial sector reforms.

The finance ministry has recommended revising several sections of the Insurance Act, 1938. These proposed changes include increasing the FDI limit to 100 per cent, lowering paid-up capital requirements, and creating a composite licence framework.

As part of a wider legislative overhaul, amendments will also be made to the Life Insurance Corporation Act 1956 and the Insurance Regulatory and Development Authority Act 1999, in addition to the Insurance Act 1938.

Changes to the LIC Act are intended to give its board greater authority over operational matters, such as opening new branches and hiring staff.

The overarching purpose of the amendment is to strengthen policyholder protections, bolster financial security, and encourage more participants to enter the insurance market, thereby supporting economic expansion and job creation.

These reforms are expected to improve industry efficiency, simplify business operations, and push insurance penetration forward to achieve the vision of Insurance for All by 2047, according to an official statement.



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The giant heat pumps designed to warm whole districts

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The giant heat pumps designed to warm whole districts


Chris BaraniukTechnology Reporter

MVV Energie A large, shiny chrome tank with shiny pipework around it. MVV Energie

MVV Energie is building the world’s most powerful heat pump systems

The pipe that will supply the heat pump, drawing water from the River Rhine in Germany, is so big that you could walk through it, fully upright, I’m told.

“We plan to take 10,000 litres per second,” says Felix Hack, project manager at MVV Environment, an energy company, as he describes the 2m diameter pipes that will suck up river water in Mannheim, and then return it once heat from the water has been harvested.

In October, parent firm MVV Energie announced its plan to build what could be the most powerful heat pump modules ever. Two units, each with a capacity of 82.5 megawatts.

That’s enough to supply around 40,000 homes, in total, via a district heating system. MVV Energie aims to build the system on the site of a coal power plant that is converting to cleaner technologies.

The scale of the heat pumps was determined partly by limits on the size of machinery that could be transported through the streets of Mannheim, or potentially via barges along the Rhine. “We’re not sure about that yet,” says Mr Hack. “It might come via the river.”

One person well aware of the project is Alexandre de Rougemont, at Everllence (formerly MAN Energy Solutions), another German company that also makes extremely large heat pumps. “It is a competition, yeah,” he says. “We’re open about it.”

Heat pumps soak up heat from the air, ground or, in these cases, bodies of water. Refrigerants inside the heat pumps evaporate when they are warmed even slightly.

By compressing the refrigerant, you boost that heat further. This same process occurs in heat pumps designed to supply single homes, it just happens on a much larger scale in giant heat pumps that serve entire city districts.

As towns and cities around the world seek to decarbonise, many are deciding to purchase large heat pumps, which can attach to district heating networks.

These networks allow hot water or steam to reach multiple buildings, all connected up with many kilometres of pipe. Ever bigger models of heat pump are emerging to meet demand.

“There was a lot of pressure on us to change the heat generation to new sources, especially renewable sources,” explains Mr Hack as he discusses the decommissioning of coal-fired units at the Mannheim plant. The site is right by the Rhine, already has a hefty electricity grid connection, and is plugged in to the district heating network, so it makes sense to install the heat pumps here, he says.

He notes that the technology is possible partly thanks to the availability of very large compressors in the oil and gas industry – where they are used to compress fossil fuels for storage or transportation, for example.

MVV Energie A large stainless steel pipe with four blue valves on the top and a gauge.MVV Energie

The new heat pump at Mannheim will transfer heat from the Rhine

Work on the Mannheim project is due to start next year. The heat pumps – with a combined capacity of 162MW – are set to become fully operational in the winter of 2028-29. Mr Hack adds that a multi-step filter system will prevent the heat pumps sucking up fish from the river, and that modelling suggests the system will affect the average temperature of the river by less than 0.1C.

Installations such as this are not cheap. The Mannheim heat pump setup will cost €200m ($2.3m; £176m). Mr de Rougemont at Everllence says that, at his company, heat-pump equipment costs roughly €500,000 per megawatt of installed capacity – this does not include the additional cost of buildings, associated infrastructure and so on.

Everllence Five men in hi-viz jackets talk while standing next to heat pump machinery.Everllence

Everllence has plans for heat pumps even bigger than this one in Esberg

Everllence is currently working on a project in Aalborg, Denmark that will be even more powerful than the system in Mannheim, with a total capacity of 176MW. It will use smaller modules, however – four 44MW units – and is due to become operational in 2027, when it will supply nearly one third of all heating demand in the town.

Those 44MW machines are actually the same ones used in a previous project, now fully operational, to the south of Aalborg in Esbjerg. There, they don’t run at maximum capacity but rather supply 35MW each.

Large hot water storage tanks, each able to hold 200,000 cubic metres of liquid, will give the system added flexibility, adds Mr de Rougemont: “When the electricity price is high, you stop your heat pump and only provide heat from the storage.”

Veronika Wilk at the Austrian Institute of Technology says, “Heat pumps and district heating systems are a great fit.” Such systems can harvest heat from bodies of water or even wastewater from sewage treatment plants.

Dr Wilk notes that, when you use multiple large heat pumps on a district heating network, you gain flexibility and efficiency. You could run two out of four heat pumps in the autumn, say, when less heat is required than during the depths of winter.

Getty Images Helsinki waterfront with boats in the foreground and the cathedral in the background.Getty Images

Helsinki is overhauling its district heating system

All the systems mentioned so far harvest energy from water sources but, less commonly, very large heat pumps can use the air as a heat source, too. Even in a relatively cold city such as Helsinki.

“The sea in front of Helsinki is too shallow,” explains Timo Aaltonen, senior vice president of heating and cooling at Helen Oy, an energy firm. “We calculated that we would need to build a tunnel more than 20km long to the ocean, to get enough water [with a] temperature high enough.”

Helsinki is in the process of radically overhauling its district heating system. The city has added heat pumps, biomass burners and electric boilers to a 1,400km network that links up nearly 90% of buildings in the Finnish capital, adds Mr Aaltonen.

Heat pumps convert single kilowatt hours of electricity into multiple kilowatt hours of heat but electric boilers can’t do this and are therefore considered less efficient.

I ask why Helen Oy decided to install hundreds of megawatts of these boilers and Mr Aaltonen says that they are cheaper to install than heat pumps and having them also means he and colleagues don’t have to rely entirely on the air, which is limited in terms of how much heat it can provide at scale. Plus, the electric boilers can help to soak up surplus renewables and provide an electricity grid-balancing function, he says.

There are no heat pumps in the UK that rival the systems under development in Denmark, Germany and Finland. However, some new district heating networks are on the way, such as the Exeter Energy Network, which will supply the University of Exeter and other customers.

The minimum planned capacity of the network is 12MW. It will feature three 4MW air-to-water heat pumps, with the first unit due to become operational in 2028.

Keith Baker at Glasgow Caledonian University, who researches district heating systems, says the UK has opportunities to make more of this technology. Water in disused mines, which maintains a relatively stable temperature, is beginning to supply larger heat pumps here, for example.

Post-industrial and rural areas where there is adequate space to install heat pumps and heat storage tanks are “the sweet spots”, he says.

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Frontier Airlines replaces CEO Barry Biffle with carrier’s president

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Frontier Airlines replaces CEO Barry Biffle with carrier’s president


Barry Biffle, president and chief executive officer Frontier Airlines, prior to a Senate Judiciary Subcommittee on Antitrust, Competition Policy, and Consumer Rights hearing in Washington, DC, US, on Tuesday, Sept. 30, 2025.

Kent Nishimura | Bloomberg | Getty Images

Frontier Group Holdings, the parent company of budget airline Frontier, replaced its nearly decade-long CEO, Barry Biffle, with the carrier’s president, the company said Monday.

James Dempsey is taking over as interim CEO effective immediately.

“Jimmy has been an invaluable member of Frontier’s senior leadership team for more than 10 years and has played an instrumental role in the company’s evolution and growth during that time,” Board Chair Bill Franke said in a news release. “We believe Jimmy is uniquely qualified to guide our airline into the future.”

Biffle and Frontier declined to comment. Frontier said Biffle would stay on in an “advisory capacity” until the end of the year.

Biffle had been Frontier’s chief executive since March 2016 and has a more than three-decade career in airlines, including at the country’s longtime top budget carrier, Spirit, which is currently in its second bankruptcy in less than a year.

Frontier lost $190 million in the first nine months of the year, compared with net income of $31 million a year earlier.

Frontier had been in talks to merge with Spirit several times since early 2022, but none have solidified thus far.

Smaller budget airlines like Frontier have struggled to produce steady profits in the wake of the pandemic, as higher labor and other costs, as well as consumer tastes shifting to international travel and higher-end seats, and an oversupply of domestic capacity, hurt financial results.

Biffle led some of Frontier’s initiatives in recent months to cater to customers seeking more space on board.

Frontier’s shares are down nearly 19% so far this year, while the NYSE Arca Airline Index, which tracks mostly U.S. airlines, is up more than 6%.



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RBI Holds 879.6 Tonnes Of Gold As Prices Surge Amid Global Uncertainty

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RBI Holds 879.6 Tonnes Of Gold As Prices Surge Amid Global Uncertainty


New Delhi: The Reserve Bank of India, as on March 31 this year, held 879.58 metric tonnes of gold as compared to 822.10 metric tonnes as on March 31, 2024, reflecting an increase of 57.48 metric tonnes, the Parliament was informed on Monday.

These gold holdings contribute to strengthening confidence in the Indian rupee and the overall external stability of the economy, Minister of State for Finance Pankaj Chaudhary told the Lok Sabha in a reply to a question.

To questions about the surge in gold and silver prices in the domestic market, he said that domestic prices of precious metals like gold and silver are primarily determined by their prevailing international prices (in US dollar terms), the exchange rate of the Indian rupee against the US dollar and applicable tariffs.

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The recent surge in prices is largely attributable to heightened geopolitical tensions and uncertainty over global growth, which have boosted safe-haven demand, including substantial gold purchases by central banks and major institutions worldwide.

The minister said that the recent rally in gold prices may have differential effects across states or population groups, depending upon the degree of socio-cultural and economic reliance on these precious metals.

“They serve a dual role — not only as a consumption item but also as an investment avenue, as they are considered safe assets for hedging against uncertainties,” he said.

Thus, an increase in the price of gold or silver positively influences household wealth, as the notional value of existing gold or silver holdings appreciates, he added. Chaudhary further stated that the prices of precious metals are determined by the market, and the government is not involved in the price fixation.

However, the government, as a relief measure for consumers, lowered customs duty on gold imports from 15 to 6 per cent in July 2024.

The government introduced measures such as the Gold Monetisation Scheme (GMS), Gold exchange‑traded funds (ETFs) and Sovereign Gold Bond Scheme to reduce the demand for physical gold and to mobilise idle domestic gold, so that part of the demand is met from local stocks rather than fresh imports, thereby reducing external vulnerability and price pressures.

“The RBI and government regulation of bullion imports through nominated agencies, banks and refineries improve traceability, reduce grey‑market channels and help domestic prices more smoothly track global benchmarks rather than react to shortages or speculative spikes,” the minister said.



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