Heavy smog covers New Delhi, with the city this week placed in the severe and hazardous category of the Air Quality Index. EPA
Heavy smog covers New Delhi, with the city this week placed in the severe and hazardous category of the Air Quality Index. EPA
Heavy smog covers New Delhi, with the city this week placed in the severe and hazardous category of the Air Quality Index. EPA
Heavy smog covers New Delhi, with the city this week placed in the severe and hazardous category of the Air Quality Index. EPA

New Delhi schools to take early winter break because of air pollution


Taniya Dutta
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Authorities in India's capital have ordered schools to take the winter break early as air pollution remained at hazardous levels.

Citing "no respite from adverse weather conditions”, the New Delhi government’s education department said on Wednesday that schools would close from November 9 to 18 instead of late December to early January.

The change to the winter break is "so that schools can be totally closed and children and teachers can stay at home”, it said.

The schools, except for pupils of grades 10 and 12 were already closed for a week until Friday because of the heavy air pollution New Delhi has been experiencing since last month, with Air Quality Index (AQI) readings consistently in the severe range.

The capital region's government has banned construction work and heavy vehicles in the city and other vehicles with odd and even number plates to be used only on alternate days, but air pollution remains high.

The AQI reading at Delhi's Anand Vihar station was 449 on Wednesday afternoon.

A reading between zero and 50 is considered good, 51 to 100 is satisfactory, 101 to 200 moderate, 201 to 300 is considered poor, 301 to 400 very poor and 401 to 500 severe.

Morning smog in New Delhi, India, on Wednesday. Reuters
Morning smog in New Delhi, India, on Wednesday. Reuters

Teachers said the frequent school closures because of pollution would affect children’s development.

“It is not a solution. Why does the government not look at this issue throughout the year and see how this can be stopped?" said Bula Chakraborty, principal of St George School in Greater Noida, one of New Delhi's two satellite cities in neighbouring Uttar Pradesh state.

"Closing schools, say five times or seven times in a month, hampers the studies. School is basic [requirement],” Ms Chakraborty told The National.

She said the school closures also had physical, social and psychological effects.

“There are also children who come from poor backgrounds or whose parents are not educated. It affects their studies," she said.

"Children can’t be confined to houses. There are parents who are not in favour. Closing schools doesn’t help the root cause of the problem.”

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: November 08, 2023, 1:15 PM