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Projects being shelved at unprecedented pace, stalled projects at record high, says CMIE report

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Projects being shelved at unprecedented pace, stalled projects at record high, says CMIE report

The claims of Modi government and the calls for more projects and investments and promotion of ‘self-employment’ instead of providing jobs, seem to have come a cropper, the much touted ‘unprecedented’ rise in India’s Ease of Doing Business (EOB) rank notwithstanding: The number of stalled projects in the country has reached a record level, according to a new report.

Citing a report by Centre for Monitoring Indian Economy (CMIE), Quartz India said, “India Inc is mothballing projects at a record pace.”

In the 12 months ending March 2018, India saw an unprecedented number of projects being shelved by companies, said the report.

In financial year 2017-2018, investments worth Rs7.63 lakh crore ($117.35 billion) were scrapped.

Over 40% (worth Rs3.3 lakh crore) of which were dropped from January-March, the last three months alone, the report said.

Projects being shelved at unprecedented pace, stalled projects at record high, says CMIE reportWhereas earlier the projects usually got delayed due to hurdles in getting regulatory approvals, now the reason was subdued economic growth leading to lack of demand, said the Quartz report quoting, chief economist at India Ratings & Research Devendra Kumar Pant.

Most companies were using only 71.8% of their existing capacities, according to a Reserve Bank of India (RBI) survey conducted towards the end of the July-September 2017 quarter. In such a scenario, adding more factories and manufacturing units may not be viable.

“In the power sector, for instance, there is surplus supply. This has affected the distribution companies’ financial position. Similarly, rising input costs and falling demand have taken the wind out of the steel sector. Therefore, companies in the power and steel sector are unlikely to take up any new projects in the coming months,” the report said.

It said that overall, with output and new orders declining, manufacturing activity in March grew at the slowest pace in the last five months, the Nikkei India manufacturing Purchasing Managers’ Index (PMI), compiled by IHS Markit, showed.

Mounting debt and languid demand have also resulted in subdued growth in corporate earnings in the last few years. Things worsened in financial year 2018 due to the lingering effect of demonetisation and the introduction of the goods and services tax.

There was more bad news. Quarterly profit growth for listed Indian firms fell from 16.4% in the January to March quarter last year to a negative 13.9% in the October to December quarter, according to the CMIE data.

Tepid demand and slow sales have, in turn, added to the massive debt pile. At the end of March 2017, India’s corporate debt inched up to a seven-year high, underlining their stress levels.

With investments on hold, there is little generation of employment and demand. The economy is already staring at a job crisis with unemployment rising steadily.

The problem is not new. Exactly a year ago, it was reported that the number of stalled projects had reached the highest level since Narendra Modi assumed office as the prime minister in May 2014.

How was the government taking it? ‘Change the label’ was the recommendation of the Prime Minister’s Office (PMO), to ‘shelved’ or ‘dropped’ or ‘abandoned’ if the promoters have no further intention to start implementation instead of calling it ‘stalled’, said a report in The Indian Express in February this year. The IE report quoted the communique to ministries from the PMO’s Project Monitoring Group (PMG): “Wherever the project proponents have decided not to pursue the projects, the same should be explicitly stated on the (e-suvidha) portal to help Private Economic Databases (PEDs) to appropriately reclassify the project.”

“Continued classification of mere project ideas as ‘implementation stalled’ projects in public domain has been reflecting the investment scenario in poor light even though the promoters themselves have not taken any concrete/firm step towards the project implementation for a variety of reasons,” the report said, quoting the note.

The PMG believed that these projects in reports released by PEDs were “negatively impacting the sentiments about the ongoing investments in the economy and portraying an unduly gloomy scenario of increase in ‘implementation stalled’ projects”.

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Xbox announces 3,200 layoffs as Asha Sharma outlines major restructuring plan

Xbox has announced plans to lay off 3,200 employees over the next year while introducing a major restructuring programme that includes management changes, studio restructuring and cost-cutting measures.

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XBOX layoff

Xbox has announced plans to reduce its workforce by 3,200 employees, representing around 20 per cent of its total staff, over the coming year as part of a broader restructuring programme linked to Microsoft’s increased investment in artificial intelligence.

According to an email shared with employees by Asha Sharma, the company will begin the process immediately, with 1,600 employees leaving on Monday, while the remaining job reductions will take place during FY27. The company also plans to divest four gaming studios and is preparing to separate from another.

Business reset planned amid financial challenges

In her message to employees, Sharma said the company’s current financial position required significant changes, stating that Xbox’s business was operating at substantially lower margins than comparable platform and publishing companies.

She said the layoffs were not a reflection of employees’ commitment or abilities but were part of a wider effort to strengthen the company’s long-term business.

The workforce reduction comes as Microsoft continues implementing AI-focused cost-cutting measures across its operations. Overall, the technology company is reportedly cutting 4,800 jobs, with Xbox accounting for the largest share.

Sharma also described the gaming sector as experiencing one of its most challenging hardware periods and said the company needed to “reset Xbox” to improve its future performance.

Company to streamline operations and reduce management layers

As part of the restructuring strategy, Xbox plans to simplify its organisational structure, revise its content portfolio and improve platform operations.

According to Sharma, the company currently loses 64 cents for every dollar invested annually, making operational efficiency a key priority.

She said Xbox would increasingly support independent game creators by offering open development tools and broader audience access.

The restructuring will also see Mojang and King report directly to Sharma. She said both studios have evolved into major gaming platforms with large monthly active player bases and will play a central role in Xbox’s future strategy.

To improve decision-making, the company plans to significantly reduce its management hierarchy. Sharma said some departments currently have as many as 14 management layers, which slow down operations. Xbox aims to reduce this to no more than five layers, and in some cases, only three.

The company will also reduce vendor spending by 50 per cent as part of its cost-saving measures.

Helen Chiang promoted to Chief Operating Officer

Alongside the restructuring announcement, Sharma confirmed the promotion of Helen Chiang to the newly created position of Chief Operating Officer.

Chiang will oversee profit and loss responsibilities across Xbox’s content, hardware, platform and services divisions while reporting directly to Sharma.

According to Sharma, the new operating structure is intended to improve investment decisions, strengthen accountability and better integrate the company’s various business units.

Despite the ongoing restructuring and job cuts, Sharma said Xbox remains committed to long-term growth and plans to continue investing heavily in the business, while placing greater emphasis on disciplined spending and strategic priorities.

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India News

Bank holiday today: Are banks open or closed on June 29? Here’s what RBI calendar says

Banks in Himachal Pradesh and Mizoram will remain closed on June 29, 2026, due to regional holidays, while banking operations will continue normally in most other states.

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Bank Holidays

As June comes to an end, many customers are wondering whether banks across the country are open on June 29, 2026. According to the Reserve Bank of India’s (RBI) holiday calendar, bank operations will not be affected nationwide, but branches in some states will remain closed due to local holidays.

Banks closed in these states on June 29

Banks will remain shut in Himachal Pradesh on Monday, June 29, on account of Sant Guru Kabir Jayanti. In addition, bank branches in Mizoram will remain closed to observe Remna Ni, a regional public holiday.

However, bank branches in most other states and Union Territories are expected to function normally as June 29 is not a nationwide banking holiday.

Will online banking services remain available?

Even when physical branches remain closed, customers can continue using digital banking facilities. Services such as internet banking, mobile banking, UPI transactions, ATM withdrawals and cash deposits at ATMs will remain operational.

Customers planning to visit a bank branch are advised to check with their local branch beforehand, as holiday schedules may vary depending on the state and local observances.

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Union Budget 2026 highlights: Nirmala Sitharaman Raises Capex to Rs 12.2 Lakh Cr, West Bengal Gets Major Allocation

Finance Minister Nirmala Sitharaman is presenting the Union Budget 2026 in Parliament today. Follow this space for live updates, key announcements, and policy insights.

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Finance Minister Nirmala Sitharaman arrives to present Union Budget 2026

Finance Minister Nirmala Sitharaman will shortly present the Union Budget 2026 in the Lok Sabha, marking her ninth consecutive Budget. The annual financial statement is expected to outline the government’s policy priorities, reform agenda and spending plans for the coming year. Stay tuned for live updates, key announcements and immediate reactions as the Budget speech unfolds.

Finance Minister Nirmala Sitharaman tabled her ninth Union Budget today, beginning her speech at 11 am.

Nirmala Sitharaman is set to present her ninth Union Budget today, with the finance minister scheduled to begin her speech at 11 am.

Budget 2026 live updates: Presenting the Union Budget for 2026–27, Finance Minister Nirmala Sitharaman said the occasion coincided with Magh Purnima and the birth anniversary of Guru Ravidas. She noted that over the past 12 years, India’s economic journey has been defined by stability, fiscal discipline, sustained growth and moderate inflation.

The budgeted fiscal deficit for fiscal 2026 is estimated at 4.4 per cent of gross domestic product (GDP)

Planned capital expenditure this fiscal year Rs 11.2 lakh crore

Rare earth corrdiors in Odisha and Kerala

Hi-tech tool rooms to be set up by PSUs

Construction equipment scheme to be launched

Container manufacturing scheme for Rs 10,000 crore over 5 years

Rs 10,000 crore SME Growth Fund

Semi-conductor mission to get Rs 40,000 crore

Rs 12.2 lakh crores for infrastructure development

Dedicated RITES to repurpose land of Central PSUs

20 new waterways over next 5 years to be connected

7 high-speed corridors on rail

High-level committee on banking for next phase of Viksit Bharat

Capital expenditure hike of to ₹12.2 lakh crore in Budget 2026, with West Bengal receiving a significant share of allocations.

Mahatma Gandhi Gram Swaraj Initiative aimed at boosting the khadi, handloom, and handicrafts sectors.

High-speed rail corridors: Mumbai-Pune, Pune-Bengaluru, Hyderabad-Bengaluru, Chennai-Bengaluru, Delhi-Varanasi, Varanasi-Siliguri, Pune-Hyderabad

Five university campuses to be established near industrial corridors

Lakpati Didi program expanded in Budget 2026 to reach more beneficiaries across India.

Fiscal deficit for FY26 revised to 4.4%; Budget Estimate for FY27 set at 4.3%.

TCS on overseas tour packages cut to 2% to ease travel costs

Tax holiday to foreign companies that provide cloud services by setting up data centres in India till 2047

17 cancer drugs exempted from import duties

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