Risk Management Insights from the Duckworth-Lewis Method

Cricket, where matches can be influenced by various factors like weather conditions, the Duckworth-Lewis method stands as a testament to effective risk management. Originally devised by statisticians Frank Duckworth and Tony Lewis, this method revolutionised the way cricket matches affected by rain interruptions are decided, ensuring fairness and accuracy in determining the outcome.

While its application is specific to cricket, the underlying principles of risk management inherent in the Duckworth-Lewis method offer valuable insights applicable to investment risk management. In this article, let’s look at a few.

Understanding the Duckworth-Lewis Method

At its core, the Duckworth-Lewis method seeks to adjust target scores based on the resources available to the batting team. In rain-affected matches, overs lost due to interruptions can significantly impact a team’s ability to chase or set a target. Therefore, the method employs a mathematical formula that takes into account the number of overs remaining, wickets lost, and the run rate at the time of interruption to determine a revised target.

1. Setting Targets and Goals

In cricket, teams set target scores to chase down within a specified number of overs. Similarly, investors set financial goals, such as achieving a certain rate of return or accumulating a target amount of wealth.

2. Unforeseen Interruptions

Rain interruptions in cricket disrupt the game plan, just as unexpected market volatility, events or economic downturns can disrupt investment strategies in the stock market.

3. Adaptation and Recalculation

The Duckworth-Lewis Method recalculates the target score based on the overs lost due to rain, ensuring fairness in the game. Likewise, investors must adapt and recalibrate their investment strategies in response to market situations to stay on track towards their financial goals.

4. Optimising Resources

Cricket teams aim to maximise runs within the remaining overs, while investors aim to maximise returns or minimise losses within the constraints of market conditions. Both endeavours require efficient allocation of resources to achieve desired outcomes.

5. Risk Management

Both cricket teams and investors engage in risk management. Teams assess the risk of losing wickets and falling short of the target, while investors evaluate the risk-return trade-off of various investment options to mitigate potential losses.

6. Staying Resilient

Just as cricket teams must maintain resilience and adaptability to overcome rain interruptions and still emerge victorious, investors must remain resilient in the face of market uncertainties and persevere towards their financial objectives.

Know Why Emergency Funds Are an Absolute Must Have?

Conclusion

By drawing parallels between the Duckworth-Lewis Method and investing in the stock market, we can appreciate the strategic mindset and adaptability required in both domains. 

Just as cricket teams strategise to navigate through rain interruptions and emerge victorious, investors must navigate through unexpected market volatility with a well-thought-out investment strategy to achieve their financial aspirations. 

As the associate sponsor of Tata IPL 2025, Angel One recognises the importance of resilience, strategy, and adaptability, both on the cricket field and in the world of finance.

 

Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.

Indore to Establish India’s First Green Waste Processing Plant Under PPP Model; IMC to Earn ₹3,000 per Tonne

Indore is taking a significant step towards sustainable waste management with the establishment of India’s first green waste processing plant under a Public-Private Partnership (PPP) model. This initiative, developed under the Swachh Bharat Mission-Urban, underscores the city’s commitment to environmental conservation and innovation in waste recycling.

Located on 55,000 square feet of land in Bicholi Hapsi, the facility is designed to recycle green waste efficiently, transforming discarded wood and branches into wooden pellets—a sustainable alternative to coal. This development marks a milestone in urban waste management, reinforcing Indore’s reputation as a leader in cleanliness and sustainability initiatives.

Financial Viability and Green Resource Generation

A key aspect of this initiative is its financial sustainability. The Indore Municipal Corporation (IMC) will receive a royalty of ₹3,000 (US$ 34.66) per tonne of waste supplied to the plant, ensuring a steady revenue stream while addressing environmental concerns.

Indore generates around 30 tonnes of green waste daily, which surges to 60-70 tonnes in autumn due to seasonal shedding. Institutional waste collection is also being integrated into the system, expanding the plant’s impact.

Innovative Waste Processing Techniques

The plant, which will be operated by Astronomical Industries Private Limited, employs a unique drying process that spans 3 to 4 months, reducing moisture content by 90%. This process converts waste into fine sawdust, which can be repurposed into multiple eco-friendly products, such as:

  • Biodegradable packaging
  • Furniture manufacturing
  • Fertilisers
  • Disposable plates (reducing plastic consumption)

Additionally, municipal gardens will utilise composting pits to process garden waste, further enhancing the city’s waste management efficiency.

A Step Towards Cleaner Energy and Air Quality Improvement

One of the standout features of the plant is the production of wooden pellets, which will be supplied to the National Thermal Power Corporation (NTPC) and other industries as a clean energy source. By replacing conventional fuels with biomass-based alternatives, the initiative is expected to contribute to better air quality and help control the Air Quality Index (AQI).

This aligns with the broader Garbage-Free Cities vision under the Swachh Bharat Mission-Urban, promoting environmental sustainability while also ensuring additional revenue generation for municipal authorities.

Conclusion: A Model for Other Cities

Indore’s green waste processing plant is a trailblazing effort in India’s urban waste management landscape. Its success could serve as a blueprint for other cities looking to adopt similar eco-friendly waste disposal and recycling mechanisms. By combining sustainability with financial viability, the initiative reflects how public-private collaboration can drive innovative environmental solutions.

With its forward-thinking approach, Indore continues to lead the way in clean energy adoption, waste reduction, and circular economy practices, reinforcing its status as one of India’s most environmentally conscious cities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Indian Railways Achieves Over 90% Punctuality Despite Heavy Passenger Demand

Despite the surge in passenger travel during peak festive seasons such as Holi, Diwali, Chhath, Summer holidays, and Maha Kumbh, Indian Railways has successfully maintained an on-time performance of over 90%. This achievement comes as a result of significant infrastructural advancements, AI-driven scheduling, and real-time monitoring systems.

Addressing the Lok Sabha, Union Minister for Railways, Shri Ashwini Vaishnaw, highlighted various key developments in Indian Railways, including punctuality, environmental sustainability, and exports under the ‘Make in India’ initiative. He reiterated the government’s commitment to transforming the railway network into a modern, efficient, and eco-friendly transport system.

Impressive Punctuality Levels Across Railway Divisions

According to the minister, out of 68 railway divisions, 49 have already surpassed 80% punctuality, while 12 divisions have achieved an exceptional 95% on-time performance. This improvement has enhanced both passenger and freight operations, ensuring a smoother travel experience. Some of the top-performing railway divisions include:

Division Zone Punctuality (%)
Sealdah Eastern Railway 98
Bikaner North Western Railway 98.1
Ratlam Western Railway 98.9
Madurai Southern Railway 99.2
Bhavnagar Western Railway 99.6

With more than 13,000 passenger trains currently in operation, including 4,111 Mail and Express trains, 3,313 Passenger trains, and 5,774 Suburban trains, Indian Railways has now exceeded its pre-COVID operational levels.

Record-Breaking Special Train Operations During Festive Seasons

To cater to the growing passenger demand during peak travel seasons, Indian Railways has significantly increased the number of special trains. In the past year alone, thousands of special trains were deployed to manage the festive rush:

  • Holi: The number of special trains increased from 241 in 2021-22 to 1,107 in 2024-25.
  • Summer Vacation: Around 13,000 special trains were operated.
  • Diwali & Chhath: Over 8,000 special trains facilitated smooth travel.
  • Maha Kumbh: A record-breaking 17,330 special trains ensured seamless travel for devotees.
Year Holi Special Trains
2021-22 241
2022-23 527
2023-24 604
2024-25 1,107

This expansion reflects the unwavering commitment of Indian Railways to enhancing passenger convenience and optimising travel management.

‘Make in India’ Initiative Fuels Global Railway Exports

Under the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives, Indian Railways has expanded its reach beyond domestic operations by exporting rolling stock, including components of the Vande Bharat trains, to international markets such as Africa, Latin America, and Southeast Asia. This move not only strengthens India’s global railway presence but also contributes to economic growth and technological advancements.

A Future-Ready Railway Network

The commitment of Indian Railways to punctuality, efficiency, and sustainability continues to drive its transformation. With the adoption of advanced technologies, increased special train operations, and international expansions, the railway network is poised to further enhance passenger experiences and support India’s economic development. The focus remains on reliability, convenience, and modernisation, ensuring that Indian Railways remains a pillar of the nation’s transport infrastructure.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

AC and Refrigerator Stocks Surge as Government Eases BIS Certification Rules

The shares of air-conditioner and refrigerator manufacturers, including Voltas (1.89%), Blue Star (2.47%), and Havells India (2.62%), witnessed gains in today’s trading session. The rally comes after the government announced the exemption of certain critical components from mandatory Bureau of Indian Standards (BIS) certification to prevent potential supply disruptions ahead of what is expected to be an intense summer.

Key Exemptions to Prevent Shortages

The Department for Promotion of Industry and Internal Trade (DPIIT) has lifted the BIS certification requirement for:

  • Grooved copper tubes
  • Air-conditioner compressors with a capacity of 2 tonnes and above

These exemptions apply to both domestic production and imported components, including those from China, which has been a major supplier to the Indian market.

Industry’s Struggle with Domestic Shortages

According to a news report, Industry executives had raised concerns about a severe shortage of essential AC and refrigerator components, as many Chinese and other foreign suppliers had not yet received BIS certification. This issue had the potential to create significant bottlenecks in production, particularly with rising temperatures driving demand for cooling appliances.

Additionally, reports indicate that domestic manufacturers are charging higher prices for copper tubes compared to international vendors, further increasing costs for companies.

Upcoming Policy Changes Under Consideration

While the DPIIT’s exemptions currently apply only to AC compressors of 2 tonnes and above, the government is reportedly considering extending similar relaxations to:

  • AC compressors below 2 tonnes
  • Refrigerator compressors

Reports say an official notification on this matter soon, which could further stabilise production and supply in the coming months.

Temporary Import Allowance for Copper Tubes

To balance domestic supply and import dependency, the government has allowed:

  • Imports of grooved copper tubes without BIS certification until June 30, 2024
  • Imports of AC compressors (2 tonnes and above) without BIS certification until February 10, 2026
  • Between January and March, industries can import copper tubes up to 25% of their total 2023-24 imports

This move aims to prevent price escalations and stock shortages as demand picks up.

Industry Impact and Future Outlook

As per government regulations, all brands must ensure that the components used in their ACs and refrigerators have BIS approval, regardless of whether they are sourced locally or internationally.

Amber Enterprises, India’s largest AC contract manufacturer, recently highlighted in its earnings call that production in April could be impacted due to component shortages.

Conclusion

The government’s decision to temporarily relax BIS certification norms provides relief to AC and refrigerator manufacturers, ensuring that production continues smoothly ahead of peak summer demand. While this move has boosted market sentiment and stock prices, industry leaders are still advocating for long-term solutions, including enhancing domestic manufacturing capacity for critical components.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Fundamental Rights Petitions Against Adani Green Energy’s Sri Lanka Projects Withdrawn

In recent developments, Adani Green Energy has retracted its involvement in wind energy projects in Sri Lanka’s northeastern regions of Mannar and Pooneryn. This decision led to the withdrawal of multiple fundamental rights petitions that had been filed against these projects. 

Project Cancellation Amidst Environmental and Transparency Concerns

In 2024, 5 fundamental rights petitions were filed challenging the Adani Green Energy projects approved by the previous Sri Lankan cabinet. The petitions highlighted environmental hazards and a lack of transparency associated with the projects. Following these concerns, Adani Green Energy notified the Board of Investment about its decision to cancel the wind energy projects, prompting the Attorney General to file a motion leading to the withdrawal of the petitions. 

Government’s Stance on Power Purchase Agreements

The newly elected Sri Lankan government, led by President Anura Kumara Dissanayake, reviewed and sought to renegotiate the power purchase agreement associated with the Adani projects. The previous agreement had set a price of eight cents per unit, which the new administration considered excessive. The government aimed to reduce this rate below six cents per unit to ensure more favourable terms for the country. 

Adani Green Share Performance 

As of March 19, 2025, at 3:00 PM, the Adani Green Energy share price is trading at ₹914.55 per share, reflecting a profit of 1.52% from the previous day’s closing price. 

Conclusion

The withdrawal of Adani Green Energy from the wind projects in Sri Lanka underscores the importance of environmental considerations and transparent dealings in large-scale energy initiatives. It also reflects the Sri Lankan government’s commitment to securing equitable agreements in its renewable energy sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

 

Indian Railways in Talks to Set Up Small Nuclear Power Plants for Clean Energy

Indian Railways is in discussions with the Department of Atomic Energy (DAE) and the power ministry to explore the feasibility of setting up small nuclear power plants. This is aimed at meeting the railway network’s growing electricity demand while supporting its goal of achieving net zero emissions by 2030.

Land Allocation and Power Supply

As per the initial plan, Indian Railways will provide land for the nuclear plants, while DAE and the power ministry will oversee the establishment and fuel supply. Officials have confirmed that site identification has started, and discussions are underway regarding operational requirements.

Energy Procurement Strategy

Indian Railways plans to procure 3 GW of renewable energy, including hydropower, along with 3 GW of thermal and nuclear power by 2030. The remaining power requirement, especially for traction purposes, will be met through purchases from power distribution companies. The railway network’s total traction power demand is expected to reach 10 GW by the end of the decade.

Budget Allocation 

Funding for the nuclear projects is expected to come from public sector financing institutions, including the Indian Railways Finance Corporation (IRFC). Indian Railways previously explored nuclear energy collaboration in 2016, but financial constraints delayed the plan. The government has recently revived the focus on nuclear power, allocating ₹20,000 crore under the Nuclear Energy Mission to develop at least five Small Modular Reactors (SMRs) by 2033.

Conclusion

In response to a parliamentary query, Railway Minister Ashwini Vaishnaw confirmed that Indian Railways has approached the Nuclear Power Corporation of India Limited (NPCIL) and the power ministry regarding nuclear energy supply. He also noted the railway network’s increasing electricity needs and ongoing efforts to explore alternative power sources.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Adani Group Proposes User Development Fee at Mumbai Airport Amid Expansion Plans

The Adani Group-led Mumbai International Airport Limited (MIAL), which operates Chhatrapati Shivaji Maharaj International Airport (CSMIA), has proposed a hike in user development fees (UDF) for departing passengers. This marks the first UDF introduction under Adani Airports’ management. The proposal, subject to approval by the Airports Economic Regulatory Authority (AERA), aims to balance rising infrastructure investments with operational sustainability.

Proposed UDF Hike and Tariff Adjustments

Under the new tariff plan, MIAL has proposed a UDF of ₹325 per domestic passenger, where none was previously charged. For international passengers, the fee may rise from ₹187 to ₹650 per passenger. To offset this increase, the airport plans to reduce airline landing and parking charges by 35%, allowing airlines to manage operating costs efficiently and maintain competitive ticket prices.

AERA’s consultation paper issued on 10 March 2025 indicates that if the proposal is approved, the Yield Per Passenger (YPP) at CSMIA will increase by 18%, from ₹285 to approximately ₹332. The airport operator has justified the hike by citing increased capital expenditure, debt servicing, and operational losses.

Planned Infrastructure Developments

Over the next five years, MIAL plans to invest ₹10,000 crore in infrastructure enhancements. This includes redeveloping Terminal 1, which will be demolished and rebuilt with a modern facility capable of handling 20 million passengers annually, a 42% capacity increase. The terminal is expected to be shut down for reconstruction in November 2024, with completion anticipated between 2028 and 2029.

Additionally, Terminal 2 (T2) will see upgrades such as self-baggage drop systems, CTIX hand baggage screening, and full-body scanners to improve security efficiency. Runway maintenance, apron and taxiway enhancements, and sustainability initiatives—such as transitioning to electric vehicles and achieving net-zero emissions by 2029—are also part of the expansion plan.

Conclusion

The proposed UDF hike at Mumbai Airport, along with reductions in airline charges, reflects a strategic revenue shift to fund large-scale infrastructure improvements. As AERA reviews the proposal, the airport aims to strike a balance between cost recovery and enhancing passenger experience.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

India and Mauritius Sign Pact to Boost Local Currencies Based Trade

The Reserve Bank of India (RBI) and the Bank of Mauritius (BOM) have signed an agreement to facilitate cross-border transactions in Indian Rupees (INR) and Mauritian Rupees (MUR). This initiative aims to strengthen financial cooperation, reduce transaction costs, and promote trade between the two nations.

Framework for Local Currency Transactions

The Memorandum of Understanding (MoU) was signed by RBI Governor Sanjay Malhotra and BOM Governor Rama Krishna Sithanen G.C.S.K. in the presence of Prime Ministers Narendra Modi and Navinchandra Ramgoolam. The agreement allows for invoicing and settlement in INR and MUR for all current account transactions and permissible capital account transactions. By fostering an INR-MUR market, the initiative seeks to enhance trade efficiency, lower transaction costs, and expedite payment settlements.

Strengthening Bilateral Relations and Cooperation

The currency agreement was part of a broader set of bilateral engagements during Modi’s visit to Mauritius. Other agreements included a credit facility deal with the State Bank of India, collaboration in MSME development, governance, maritime security, and financial crime prevention. Modi also inaugurated the Atal Bihari Vajpayee Institute of Public Service and Innovation, a new health centre, and 20 High Impact Community Development Projects. Additionally, India pledged support for constructing a new Parliament building and advancing Phase II of the HICDP initiative.

Conclusion

The INR-MUR trade framework marks a significant step in strengthening financial and economic ties between India and Mauritius. With deeper financial integration and strategic bilateral cooperation, the initiative is expected to enhance trade efficiency and further solidify the longstanding relationship between the two nations.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Nearly 5 Lakh Taxpayers Report Income Over ₹1 Crore by February 2025

Income tax filings in India have reached a new milestone, with over 9 crore returns submitted for the financial year 2025. The data highlights a significant number of high-income taxpayers, reflecting economic growth and improved tax compliance. With the deadline set for 31 March, the numbers are expected to rise further.

Surge in Income Tax Filings

As of 28 February, more than 9.11 crore taxpayers have filed their income tax returns (ITRs), according to the latest figures from the Income Tax Department. With India having 13.96 crore registered taxpayers, this means approximately 65% have submitted their returns so far. Additionally, 8.56 crore returns have been e-verified, and refunds worth Rs 3.92 lakh crore have been processed.

Among those filing returns, 4.68 lakh taxpayers reported an annual income exceeding Rs 1 crore. Of these, 3.89 lakh individuals earned between Rs 1 crore and Rs 5 crore, while 36,274 taxpayers reported income in the range of Rs 5 crore to Rs 10 crore. Meanwhile, 43,004 individuals declared earnings exceeding Rs 10 crore.

State-wise Tax Return Trends

Maharashtra recorded the highest number of ITR filings at 1.38 crore, followed by Uttar Pradesh with 90.68 lakh. Gujarat accounted for 87.90 lakh filings, while Delhi recorded 44.45 lakh returns. Punjab and Andhra Pradesh saw 43.79 lakh and 30.76 lakh filings, respectively.

The growth in different ITR categories was also notable. ITR-1 filings saw a marginal increase of 0.11%, while ITR-2 filings grew by 33.89%. ITR-3 reported a growth of 15.50%, followed by ITR-5 and ITR-6 at 6.46% and 5.59%, respectively.

Conclusion

The surge in income tax filings highlights a growing taxpayer base and improved compliance. With the deadline approaching, the total number of returns is expected to rise further, contributing to a stronger and more transparent tax system.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

ESAF Small Finance Bank to Consider Fundraising via NCDs on March 21

ESAF Small Finance Bank (ESAF SFB) has scheduled a board meeting on March 21, 2025, to discuss raising funds through the issuance of Non-Convertible Debentures (NCDs) under Tier II Bonds on a preferential basis.

As of March 19, 3:11 PM, ESAF Small Finance Bank Limited’s stock stands at ₹27.49, up 2.80% (+₹0.75) today, but down 44.55% over the past six months and 52.27% over the past year.

Fundraising Through Tier II Bonds

The proposed issuance will be carried out via private placement and will comply with the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021, along with SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

The fundraising, if approved, will remain within the existing borrowing limits set under Section 180(1)(c) of the Companies Act, 2013. These limits were previously approved by the bank’s shareholders on August 14, 2024.

SEBI Compliance and Market Regulations

ESAF SFB, like all financial institutions, must maintain adequate capital reserves. The issuance of Tier II Bonds will help the bank in strengthening its capital adequacy ratio, as required under regulatory guidelines.

No Equity Dilution

Since the fundraising is being done through NCDs, it will not affect the equity structure of the bank. Instead, it will increase its long-term debt capital while allowing it to meet financial and operational requirements.

Board Meeting Details

  • Date: March 21, 2025
  • Purpose: Consideration of fund-raising through NCDs (Tier II Bonds)
  • Method: Private placement on a preferential basis
  • Regulatory Compliance: SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021

The bank has requested stock exchanges and stakeholders to take note of this upcoming development.

Conclusion 

The bank has stated that details of the board’s decision will be published on its official website, after the meeting. The information is also being provided to stock exchanges as per regulatory requirements.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.