Sahara India Power Corporation Limited, the subsidiary of Sahara India Pariwar's real estate company Sahara Prime City Limited signed Memorandum of Understanding (MOU) with the Government of Orissa for setting up a 1320 MW (2 x 660) Coal Based Thermal Power Plant in Turla Tehsil of Balangir District, Orissa at an investment of about Rs.5604 Cr.
The MoU was signed by Mr. Pradeep Jena, Commissioner Cum Secretary - Power, on behalf of the Government of Orissa and Mr. Ashok K Bhargava, Chief Advisor and Head – Sahara Power Projects, in the presence of the Hon'ble Chief Minister of Orissa, Shri Naveen Patnaik and other distinguished dignitaries and officials.
To be built on an area of 1,500 acres, the Sahara Power's Turla plant is planned to commission its first Unit of 660 MW by February 2013 while the second unit of 660 MW is expected to be commissioned within 6 to 8 months thereafter. The plant is planned to be set up through Joint Venture Participation with Power Companies from different parts of the world.
Sahara India Power Corporation Limited will develop fuel based or non conventional power plants using the latest and emerging technologies. Sahara Power will set up a 5 MW Grid Interactive Solar Photo Voltaic Power Plant in Dhenkanal District of Orissa at an estimated investment of about Rs. 125 Cr. The Company has already received an in-principle approval from the Government of Orissa through M/s Orissa Renewable Energy Development Agency (OREDA).
Sahara Power has tied up with M/s Solar Integrated Technologies Inc. (SIT) USA, as its strategic partner for supply and installation of the required plant and equipment. In addition to this, Sahara Power is also planning to set up 25 MW of Wind Power projects in Orissa through a reputed Wind Energy Company which has already set up wind masts at 7 locations. The company plans to proceed with the project once it receives data, gathered by the masts in next 6 to 9 months.
Sahara India Power Corporation Limited has also proposed to set up a 2000 MW Coal based power plants in Jharkhand and Chhattisgarh at an estimated investment of Rs. 8000 Cr. each.
On this occasion Mr. Ashok K Bhargava said, "We extend our sincere gratitude to the Government of Orissa for their kind support, cooperation extended to us at all levels of our efforts to initiate the power projects in the state. We are confident that our project will not only serve the Energy requirement of the state and the country but will also bring in all round integrated development in the region of Turla district."
Sahara India Pariwar, considered as one of the most socially responsible corporates of the country, has plans, along with the setting up of the Mega Power Plant, to contribute to the welfare of the people of the Balangir district. The group with the aim of improving the quality of life of the local populace will develop pucca roads in the projects vicinity, make provision for potable drinking water and will also set up primary health and education centre. The Power Plant and its related infrastructure shall further attract investment in the region by Corporate Houses and Entrepreneurs in the Manufacturing, Real Estate, Service Sectors etc. by setting up of establishments, amenities and facilities, including Ancillaries and SMEs.
Commenting on the signing of the MoU Mr. Sushanto Roy, Head – Infrastructure & Housing, Sahara Prime City Limited, said, "It is a moment of great pride for all of us at Sahara India Pariwar as we have joined hands to fulfill the power requirements of the nation. Power Sector also holds a huge business opportunity and we have forward integrated plans to be a major player in all the segments including power generation through conventional and renewable resources, power transmission & distribution, power trading, manufacturing of power equipments etc."
Notes to the Editor
• Sahara India Power Corporation Ltd is a 100% subsidiary of Sahara Prime City Limited, the real estate Company of Sahara India Pariwar.
• Sahara Prime City Limited has developed commercial and residential projects which includes townships, premium group housing projects, hospitals, hotels, among other projects.
• The flagship project of SPCL is 'Sahara City Homes', a chain of townships to be developed across 217 cities in India.
• The other projects of SPCL are 'Sahara Star', a luxurious 5 star Deluxe Hotel located near the Domestic Airport in Mumbai, and a 554 bedded Super Specialty, Multi-Disciplinary, Tertiary Care Sahara Hospital in Lucknow.
• Sahara Power was set up in 2001 with the aim to provide reliable and continuous power supply to 'Sahara City Homes'. Each project of Sahara City Homes will need 30 MW of dedicated power, aggregating over 6000 MW.
Showing posts with label india. Show all posts
Showing posts with label india. Show all posts
Tuesday, February 10, 2009
Tuesday, January 20, 2009
Birla Sun Life Insurance bags micro insurance mandate from global project
• BSLI to offer micro Insurance solutions to over 100,000 people
• Part of a DFID funded Asian project
• To be implemented in UP, Bihar & MP
MUMBAI: In a major development that will see Birla Sun Life Insurance making inroads into micro insurance, the company has been selected to partner a prestigious international development project for promoting a sustainable livelihood program in three states of India – Bihar, Uttar Pradesh and Madhya Pradesh.
This 4.6 million pound development project has been initiated by the UK-based Research Into Use (RIU) project and funded by Department for International Development (DFID) and spans across the next three years.
GY Associates Ltd, UK is the lead partner for this project with RIU. For the project, G Y Associates has a contractual agreement with Centre for Promoting Sustainable Livelihood (CPSL), a Patna based NGO to form 10,000 Self Help Groups (SHGs) and ICAR (Indian Council of Agricultural Research) to provide technical support to the project. CPSL has identified BSLI as a coalition partner to provide micro insurance to the SHG members.
The project will directly benefit 2,000 villages and around 10,000 Self Help Groups and over 100,000 group members. It will cover a total of 500,000 direct beneficiaries in the rural areas.
"We are extremely delighted at this unique opportunity to partner a prestigious international project and to work at the grass root level. With this New Year gift, we are positioned to begin a new era in our service. As a partner, BSLI will create awareness of the need of life insurance among the Self Help Group Members formed under the project and thus generate demand for Micro Insurance Products and make the insurance plan accessible and affordable to that segment. Our objective is to provide social and financial security to the SHG members," said Ajay Srinivasan Chief Executive, Financial Services, Aditya Birla Group.
• Part of a DFID funded Asian project
• To be implemented in UP, Bihar & MP
MUMBAI: In a major development that will see Birla Sun Life Insurance making inroads into micro insurance, the company has been selected to partner a prestigious international development project for promoting a sustainable livelihood program in three states of India – Bihar, Uttar Pradesh and Madhya Pradesh.
This 4.6 million pound development project has been initiated by the UK-based Research Into Use (RIU) project and funded by Department for International Development (DFID) and spans across the next three years.
GY Associates Ltd, UK is the lead partner for this project with RIU. For the project, G Y Associates has a contractual agreement with Centre for Promoting Sustainable Livelihood (CPSL), a Patna based NGO to form 10,000 Self Help Groups (SHGs) and ICAR (Indian Council of Agricultural Research) to provide technical support to the project. CPSL has identified BSLI as a coalition partner to provide micro insurance to the SHG members.
The project will directly benefit 2,000 villages and around 10,000 Self Help Groups and over 100,000 group members. It will cover a total of 500,000 direct beneficiaries in the rural areas.
"We are extremely delighted at this unique opportunity to partner a prestigious international project and to work at the grass root level. With this New Year gift, we are positioned to begin a new era in our service. As a partner, BSLI will create awareness of the need of life insurance among the Self Help Group Members formed under the project and thus generate demand for Micro Insurance Products and make the insurance plan accessible and affordable to that segment. Our objective is to provide social and financial security to the SHG members," said Ajay Srinivasan Chief Executive, Financial Services, Aditya Birla Group.
Friday, January 2, 2009
India's exports zoom to $ 163 billion -26.4% annual growth
Demonstrating signs of a robust Indian economy, India’s merchandise exports increased from US $ 63.8 billion in 2003-04 to US $ 162.9billion in 2007-08 recording average annual growth rate of 26.4% during the last four years.
(Values in US $ billion)
Year Exports %Growth Imports %Growth
2003-2004 63.8 -- 78.1 --
2004-2005 83.5 30.8 111.5 42.7
2005-2006 103.1 23.4 149.2 33.8
2006-2007 126.3 22.5 185.6 24.4
2007-2008 162.9 29.0 251.4 35.5
2007-08(Apr-Nov.) (P) 99.9 153.1
2008-09(Apr-Nov.) (P) 119.3 19.4 203.6 33
Provisional
Data Source: DGCI&S, Kolkata
Steps taken by the Government to arrest deceleration of export -- (1) Excise duty reduced across the board by 4% for all products except petroleum products and those products where current rate was less than 4%; (2) Interest subvention of 2% has been provided till 31.3.2009, to the following labour intensive sectors for exports: Textiles (including Handlooms), Handicrafts, Leather, Gems & Jewellery, Marine Products and SMEs; (3) Additional funds of Rs.350 crore provided for export incentive Schemes; (4) All items of handicrafts included in Vishesh Krishi and Gram Udyog Yojana; (5) Back-up guarantee to ECGC for up to Rs.350 crore; (6) Rs1,100 crore provided to ensure full refund of claims of CST/Terminal Excise duty/ Duty drawback on deemed exports; (7) Additional funds of Rs.1400 crore provided for textile sector to clear the backlog claims of TUF; (8) Export duty on iron ore fines eliminated, and for lumps, reduced to 5%; (9) Import duty on naphtha for power sector eliminated; (10) Some pending issues relating to Service Tax refund on exports – resolved.
Special Economic Zones
SEZs have created employment for large number of unemployed rural youth. Even in the services sector, 12.5 million sq meters space is expected in the IT/ITES SEZs which as per the NASSCOM standards translates into 12.5 lakh jobs. It is, therefore, expected that establishment of SEZs would lead to fast growth of labour intensive manufacturing and services in the country. The total investment in the SEZs, as on 30th September 2008, were Rs.93507.23 crore and the total employment generated so far to 3,62,650 persons.
Out of the 531 formal approvals given till date, 174 approvals are for sector specific and multi product SEZs for manufacture of Textiles & Apparels, Leather Footwear, Automobile components, Engineering etc. which would involve labour intensive manufacturing. Exports from SEZs during the year 2007-08 was to the tune of Rs.66,638 crore with a growth of 92% over 2006-07 (overall growth of exports of 381% over past four years (2003-04). The export projection for 2008-09 is Rs.1, 25,950 crore.
Gems & Jewellery
During the year 2007-08, exports in gems & Jewellery sector were worth US $ 19,657.36 million dollars and registered growth of 23.13% as compared to the year 2006-07. During the period April-July of the current fiscal exports worth US $ 6296.14 million were effected as against US $ 6141.92 million during the corresponding period previous year.
Marine Products
Marine Products Export Development Authority had initiated following measures to sustain the export of marine products during the current year: 1. Launched a comprehensive programme to tap deep sea resources of Tuna and finalised an action plan for development of tuna fishery in the Andamans. 2. Increased thrust on diversification of culture practices and launched a new scheme for providing financial assistance for value addition. 3. Introduced for the first time in the world Organic fresh water shrimp in the international market. 4. Promoted ornamental fish breeding for export. 5. Took steps to set up six more screening laboratories in Andhra Pradesh to improve the quality of shrimp exported. 6. Undertook R&D activities for new aquaculture technologies / innovative methods for increasing the production of fin/shell fish varieties. 7. Taken steps to introduce a brand promotion scheme to promote the image of Indian Seafoods at abroad.
Anti-dumping Investigations during 2008
During the year 2008, the Directorate General of Anti Dumping has so far initiated 18 fresh anti-dumping investigations (till 8.12.2008). The products involved are Cable Ties, All Fully Drawn or Fully Oriented Yarn/Spin Draw Yarn/Flat Yarn of Polyester, Plain Medium Density Fibre Board, Power Steering Gear System, Thyionyl Chloride, Plastic Processing Machinery, Cathode ray Television Picture Tube – III, Nylon Tyre Cord Fabrics, Flax Fabrics, Ceramic tiles, Tyres Curing Presses, Radial Tyres, Pencillin – G, Phosphoric Acid, Diethyl Thio Phosphoryl Chloride, Cold Rolled Products of Stainless Steel, Hot Rolled Steel Products and Axle Beam and Steering Knuckles. The countries involved in these investigations are China PR, Thailand, Vietnam, Malaysia, New Zealand, Sri Lanka, European Union, Indonesia, Belarus, Hong Kong, Korea RP, Japan, South Africa, Taiwan, USA, Iran, Kazakhstan, Saudi Arabia, Russia, Romania, Turkey and Ukraine.
Performance of Plantation Sector
COFFEE – The Government of India has approved the Development Support Scheme for coffee sector with a total financial outlay of Rs.310 crore during the month of March 2008. An area of 47776 hectares has been brought under plantation from January to November 2008. A new scheme on Export Promotion of Coffee and the scheme on Support for Coffee Processing have been approved by the Government of India with a total financial outlay of Rs.45 crore on April 10, 2008. The total export for the period from January to November 2008 was 2,08,023 tonnes earning a foreign exchange of Rs.2,271.81 crore against 2,04,538 tonnes earning a foreign exchange of Rs.1,773.50 crore during the same period last year.
RUBBER – India is the fourth largest producer of rubber with a share of 8.3% in the world production. The rubber sector accounts for 93% of the production and 89% of the area with an average holding size of 0.5 hectare. Natural rubber export and import is expected to reach 72,000 tonnes and 80,000 tonnes respectively in 2008. The Rubber Training Centre received ISO: 2000 certificate in June 2008.
SPICES – Indian spices industry recorded an export of 4,44,250 tonnes worth over US $ 1 billion during the year 2007- 2008. It marked a quantum leap of 19 per cent in volume and 24 per cent in rupee value. Mumbai is the major hub for export of spices and has alone accounted for 39% in volume of the total spice exports during the last financial year.
TOBACCO – India earned a foreign exchange of Rs.2,022.78 crore and Rs.10,271.55 crore as excise revenue in the year 2007- 2008. The exports of tobacco and tobacco products during 2007- 2008 were valued at Rs.2022.78 crore. During April-October 2008, exports of tobacco and tobacco products were valued at Rs.1952.43 crore. During April-October 2008, unmanufactured tobacco exports were valued at Rs.1623.10 crore and exports of tobacco products were valued at Rs.329.33 crore. Going by the current trend exports of tobacco and tobacco products are expected to cross US $ 600 million during 2008- 2009.
Prospects of the Doha Round
India continues to believe in strengthening the multilateral trade rules of the WTO. The full liberalisation through the WTO secures the economic and commercial gains necessary in the goods and services sectors and modes of supply of interest to developing countries. India has reiterated the need for a serious discussion on the expectations of WTO Members regarding other issues. The developing countries want to have progress in some of these issues such as the TRIPS-CBD issue. The WTO Ministers will raise issues that they consider important and it would therefore be prudent to prepare for this so that the discussions in the Ministerial Conference can be held in a constructive environment and lead us to a successful conclusion.
Further, progress needs to be made in other areas of negotiations as well, that are of great interest to the developing countries. Our focus is on the bankable commitments from our major trading partners in areas where we have relative strengths and which would provide certainty and value to trade in Services. India has made it known that without bankable commitments from the major developed countries in Services, it may be difficult for India to agree to the modalities on Agriculture and NAMA. India needs to have clear information on the important elements which are required for completion of Services’ negotiations too.
India has been engaging constructively and actively with other fellow Member countries of the WTO towards this end. For India, it is important that the Doha Round negotiations are brought to a successful conclusion. Such a conclusion can only be possible if we are faithful to the mandate and the outcome reflects a clear balance between market opening and the development needs of the majority of the membership. India is ready to show the necessary flexibility to achieve such an outcome but the onus for movement lies largely with the developed countries.
(Values in US $ billion)
Year Exports %Growth Imports %Growth
2003-2004 63.8 -- 78.1 --
2004-2005 83.5 30.8 111.5 42.7
2005-2006 103.1 23.4 149.2 33.8
2006-2007 126.3 22.5 185.6 24.4
2007-2008 162.9 29.0 251.4 35.5
2007-08(Apr-Nov.) (P) 99.9 153.1
2008-09(Apr-Nov.) (P) 119.3 19.4 203.6 33
Provisional
Data Source: DGCI&S, Kolkata
Steps taken by the Government to arrest deceleration of export -- (1) Excise duty reduced across the board by 4% for all products except petroleum products and those products where current rate was less than 4%; (2) Interest subvention of 2% has been provided till 31.3.2009, to the following labour intensive sectors for exports: Textiles (including Handlooms), Handicrafts, Leather, Gems & Jewellery, Marine Products and SMEs; (3) Additional funds of Rs.350 crore provided for export incentive Schemes; (4) All items of handicrafts included in Vishesh Krishi and Gram Udyog Yojana; (5) Back-up guarantee to ECGC for up to Rs.350 crore; (6) Rs1,100 crore provided to ensure full refund of claims of CST/Terminal Excise duty/ Duty drawback on deemed exports; (7) Additional funds of Rs.1400 crore provided for textile sector to clear the backlog claims of TUF; (8) Export duty on iron ore fines eliminated, and for lumps, reduced to 5%; (9) Import duty on naphtha for power sector eliminated; (10) Some pending issues relating to Service Tax refund on exports – resolved.
Special Economic Zones
SEZs have created employment for large number of unemployed rural youth. Even in the services sector, 12.5 million sq meters space is expected in the IT/ITES SEZs which as per the NASSCOM standards translates into 12.5 lakh jobs. It is, therefore, expected that establishment of SEZs would lead to fast growth of labour intensive manufacturing and services in the country. The total investment in the SEZs, as on 30th September 2008, were Rs.93507.23 crore and the total employment generated so far to 3,62,650 persons.
Out of the 531 formal approvals given till date, 174 approvals are for sector specific and multi product SEZs for manufacture of Textiles & Apparels, Leather Footwear, Automobile components, Engineering etc. which would involve labour intensive manufacturing. Exports from SEZs during the year 2007-08 was to the tune of Rs.66,638 crore with a growth of 92% over 2006-07 (overall growth of exports of 381% over past four years (2003-04). The export projection for 2008-09 is Rs.1, 25,950 crore.
Gems & Jewellery
During the year 2007-08, exports in gems & Jewellery sector were worth US $ 19,657.36 million dollars and registered growth of 23.13% as compared to the year 2006-07. During the period April-July of the current fiscal exports worth US $ 6296.14 million were effected as against US $ 6141.92 million during the corresponding period previous year.
Marine Products
Marine Products Export Development Authority had initiated following measures to sustain the export of marine products during the current year: 1. Launched a comprehensive programme to tap deep sea resources of Tuna and finalised an action plan for development of tuna fishery in the Andamans. 2. Increased thrust on diversification of culture practices and launched a new scheme for providing financial assistance for value addition. 3. Introduced for the first time in the world Organic fresh water shrimp in the international market. 4. Promoted ornamental fish breeding for export. 5. Took steps to set up six more screening laboratories in Andhra Pradesh to improve the quality of shrimp exported. 6. Undertook R&D activities for new aquaculture technologies / innovative methods for increasing the production of fin/shell fish varieties. 7. Taken steps to introduce a brand promotion scheme to promote the image of Indian Seafoods at abroad.
Anti-dumping Investigations during 2008
During the year 2008, the Directorate General of Anti Dumping has so far initiated 18 fresh anti-dumping investigations (till 8.12.2008). The products involved are Cable Ties, All Fully Drawn or Fully Oriented Yarn/Spin Draw Yarn/Flat Yarn of Polyester, Plain Medium Density Fibre Board, Power Steering Gear System, Thyionyl Chloride, Plastic Processing Machinery, Cathode ray Television Picture Tube – III, Nylon Tyre Cord Fabrics, Flax Fabrics, Ceramic tiles, Tyres Curing Presses, Radial Tyres, Pencillin – G, Phosphoric Acid, Diethyl Thio Phosphoryl Chloride, Cold Rolled Products of Stainless Steel, Hot Rolled Steel Products and Axle Beam and Steering Knuckles. The countries involved in these investigations are China PR, Thailand, Vietnam, Malaysia, New Zealand, Sri Lanka, European Union, Indonesia, Belarus, Hong Kong, Korea RP, Japan, South Africa, Taiwan, USA, Iran, Kazakhstan, Saudi Arabia, Russia, Romania, Turkey and Ukraine.
Performance of Plantation Sector
COFFEE – The Government of India has approved the Development Support Scheme for coffee sector with a total financial outlay of Rs.310 crore during the month of March 2008. An area of 47776 hectares has been brought under plantation from January to November 2008. A new scheme on Export Promotion of Coffee and the scheme on Support for Coffee Processing have been approved by the Government of India with a total financial outlay of Rs.45 crore on April 10, 2008. The total export for the period from January to November 2008 was 2,08,023 tonnes earning a foreign exchange of Rs.2,271.81 crore against 2,04,538 tonnes earning a foreign exchange of Rs.1,773.50 crore during the same period last year.
RUBBER – India is the fourth largest producer of rubber with a share of 8.3% in the world production. The rubber sector accounts for 93% of the production and 89% of the area with an average holding size of 0.5 hectare. Natural rubber export and import is expected to reach 72,000 tonnes and 80,000 tonnes respectively in 2008. The Rubber Training Centre received ISO: 2000 certificate in June 2008.
SPICES – Indian spices industry recorded an export of 4,44,250 tonnes worth over US $ 1 billion during the year 2007- 2008. It marked a quantum leap of 19 per cent in volume and 24 per cent in rupee value. Mumbai is the major hub for export of spices and has alone accounted for 39% in volume of the total spice exports during the last financial year.
TOBACCO – India earned a foreign exchange of Rs.2,022.78 crore and Rs.10,271.55 crore as excise revenue in the year 2007- 2008. The exports of tobacco and tobacco products during 2007- 2008 were valued at Rs.2022.78 crore. During April-October 2008, exports of tobacco and tobacco products were valued at Rs.1952.43 crore. During April-October 2008, unmanufactured tobacco exports were valued at Rs.1623.10 crore and exports of tobacco products were valued at Rs.329.33 crore. Going by the current trend exports of tobacco and tobacco products are expected to cross US $ 600 million during 2008- 2009.
Prospects of the Doha Round
India continues to believe in strengthening the multilateral trade rules of the WTO. The full liberalisation through the WTO secures the economic and commercial gains necessary in the goods and services sectors and modes of supply of interest to developing countries. India has reiterated the need for a serious discussion on the expectations of WTO Members regarding other issues. The developing countries want to have progress in some of these issues such as the TRIPS-CBD issue. The WTO Ministers will raise issues that they consider important and it would therefore be prudent to prepare for this so that the discussions in the Ministerial Conference can be held in a constructive environment and lead us to a successful conclusion.
Further, progress needs to be made in other areas of negotiations as well, that are of great interest to the developing countries. Our focus is on the bankable commitments from our major trading partners in areas where we have relative strengths and which would provide certainty and value to trade in Services. India has made it known that without bankable commitments from the major developed countries in Services, it may be difficult for India to agree to the modalities on Agriculture and NAMA. India needs to have clear information on the important elements which are required for completion of Services’ negotiations too.
India has been engaging constructively and actively with other fellow Member countries of the WTO towards this end. For India, it is important that the Doha Round negotiations are brought to a successful conclusion. Such a conclusion can only be possible if we are faithful to the mandate and the outcome reflects a clear balance between market opening and the development needs of the majority of the membership. India is ready to show the necessary flexibility to achieve such an outcome but the onus for movement lies largely with the developed countries.
Friday, December 5, 2008
India invites Russian investment in energy
NEW DELHI:Union Minister of Commerce & Industry Kamal Nath has said that there is immense possibility for joint investments between INdia and Russia in areas like banking, information technology, telecommunications, high-technology sectors, power, pharmaceuticals and textiles.
Addressing the India-Russia CEOs Council Meeting here today,Mr Kamal Nath said that India and Russia have managed to sustain strong business vibes in recent years and added that the India-Russia Forum on Trade & Investment has underscored the need for investment cooperation in a large number of sectors.
“Indian companies are quickly establishing themselves in Russia and the cumulative Indian investments in the Russian economy amounted to US $ 744.1 million as of March 31, 2008”, he said. The meeting was also attended by Shri G.K. Pillai, Commerce Secretary Ajai Shankar, Secretary (IPP) apart from CEOs from both the countries. During the occasion, the Minister also launched the IBEF Website in Russian language.
Mr Nath said there is a strong case for Russian companies to invest in India, especially in power sector, as Russia is energy rich and India's energy requirements are going to increase manifold over the next 10-15 years.
The Minister emphasised that critical sectors of the economy, like agriculture, have started a process of revival by growing at a rate of close to 4%. This growth rate is a significant contribution to inclusiveness, which is vital for India as it helps sustain domestic consumption, which will sustain our growth story in the short, medium and long term, he added.
Bilateral trade between India and Russia during 2008-09 (April-July) was to the tune of US $ 1613.56 million. Major items of export are drugs, pharmaceuticals & fine chemicals, RMG cotton including accessories, tea, coffee, tobacco un-manufactured, processed minerals, plastic & linoleum products, machinery & instruments, transport equipments, electronic goods etc. Major items of import are iron & steel, non-ferrous metals, coal, coke, newsprint, silver, synthetic & reclaimed rubber etc.
Cumulative FDI inflows from Russia till August 2008 were US $ 144 million. The top sectors that attracted FDI inflows were medical & surgical appliances, hotel & tourism, food processing industries etc.
Addressing the India-Russia CEOs Council Meeting here today,Mr Kamal Nath said that India and Russia have managed to sustain strong business vibes in recent years and added that the India-Russia Forum on Trade & Investment has underscored the need for investment cooperation in a large number of sectors.
“Indian companies are quickly establishing themselves in Russia and the cumulative Indian investments in the Russian economy amounted to US $ 744.1 million as of March 31, 2008”, he said. The meeting was also attended by Shri G.K. Pillai, Commerce Secretary Ajai Shankar, Secretary (IPP) apart from CEOs from both the countries. During the occasion, the Minister also launched the IBEF Website in Russian language.
Mr Nath said there is a strong case for Russian companies to invest in India, especially in power sector, as Russia is energy rich and India's energy requirements are going to increase manifold over the next 10-15 years.
The Minister emphasised that critical sectors of the economy, like agriculture, have started a process of revival by growing at a rate of close to 4%. This growth rate is a significant contribution to inclusiveness, which is vital for India as it helps sustain domestic consumption, which will sustain our growth story in the short, medium and long term, he added.
Bilateral trade between India and Russia during 2008-09 (April-July) was to the tune of US $ 1613.56 million. Major items of export are drugs, pharmaceuticals & fine chemicals, RMG cotton including accessories, tea, coffee, tobacco un-manufactured, processed minerals, plastic & linoleum products, machinery & instruments, transport equipments, electronic goods etc. Major items of import are iron & steel, non-ferrous metals, coal, coke, newsprint, silver, synthetic & reclaimed rubber etc.
Cumulative FDI inflows from Russia till August 2008 were US $ 144 million. The top sectors that attracted FDI inflows were medical & surgical appliances, hotel & tourism, food processing industries etc.
Wednesday, November 19, 2008
India turns Global telecom playground
A Corporate Radar excluisive
Why is the Indian telecom market becoming such an active playground for foreign investors? What is the reason for such an inflow of FDI, despite the global financial crisis? Corporate Radar asked Mr. Bundeep Singh Rangar, Chairman of IndusView Advisors Ltd, for his views. IndusView advises multinational companies on business opportunities emanating from India’s fast growing economy. Mr Rangar’s response:
1. Post Etisalat etc., do you think more FDI will flow into Indian telecom?
Ans: The current dynamics of the Indian telecom market should be seen from two perspectives, which also explains the evolutionary cycle the sector has seen over the last two decades:
• A very basic realization among the masses about the need to remain connected – The first phase
• To remain connected and also harness the immense potential of the value added services and innovative applications – The second phase
While the first phase has seen the tele-density of the country jump from less than 1% in the '80s to about 30% now; the second phase is witnessing the numerous applications and value added services like music and movie clips downloads, innovative ring tones, among others.
But, that is not enough ... there is still a large population that needs to be offered the benefits of the basic communication services – that is how the target of achieving a tele-density of about 45% is set for the next five years by the government of India. The service providers – both the state owned and the private sector – would be aiming to surpass that target and garner the maximum possible chunk of that potential subscriber base.
The race among mobile telecommunication service providers translates in to a growing opportunity estimated at more than 700 million by 2012 from the current 300 million, at a CAGR of 21%.
Apart from the vanilla voice and sms services that the mobile services are widely associated with, the advent of next generation platforms like 3G and progressively 4G, will exponentially accelerate the possibilities of innovative applications that can be bundled on to the networks and delivered at the subscribers' finger tips in the hi-tech mobile handsets.
Such subscriber growth targets and evolving technology landscape calls for corresponding high capital investments which is pegged at about $73 billion over the next five years. And, a major chunk of the investment is expected to be realized through Foreign Direct Investment (FDI), particularly in the area of mobile communication.
2. Why do you think Indian telecom market is becoming so attractive for foreign players?
Ans: As mentioned above, the incumbent mobile telecommunication service providers in India currently add more than nine million subscribers a month with a potential of taking the total tally of subscribers up to 700 million in the next five years. In terms of expected revenues that translates in to overall mobile services revenues likely to be more than $37 billion by 2012 growing at a CAGR of 18%. Such growth potential in the segment offers enough incentive to overseas service providers to vie for their share of the pie. And investor friendly regulations by the government, allowing up to 74% stake holding in a domestic entity by foreign player is an icing on the cake.
The potential of a profitable exit opportunity is another reason. For instance, the stake of 26% in Tata Teleservices by Japanese telecom services provider NTT DoCoMo at $2.7 bn (Rs 12,770 crore) values Tata Teleservices at Rs 50,270 crore. Even in the current market conditions the valuations are still moving north. In early 2006, Temasek picked up a 9.9% stake in Tata Teleservices for Rs 1,500 crore valuing the company at around Rs 15,000 crore. The NTT DoCoMo deal values Tata Teleservices at more than three times that in less than three years.
3. Given current global crisis, do you think the telecom market, particularly in india, will withstand the turmoil and witness the same pattern of growth as seen in the recent times?
Ans: The recent string of investments in Indian telecom companies, including, Tata Teleservices Ltd by NTT DoCoMo, Inc; Unitech Telecom, the telecom arm of India's second largest real estate developer Unitech Ltd by Norwegian telecom firm Telenor ASA, world's seventh largest telecom service provider at $1.36 billion; and Swan Telecom, a start-up GSM telecom service company of a Mumbai-based real estate developer Dynamix Balwas Group by Dubai-based Emirates Telecommunications Corp (Etisalat) at $900 million; or, South Africa's largest telecom company MTN Group's attempts to enter the Indian market are examples of overseas companies that have exhibited confidence in the potential of the Indian market.
Communication is a necessity. The related costs of owning a handset and usage charges (tariffs) in India are among the lowest in the world. To add to that, the service providers are offering innovative tariff packages even while touching the lowest band and are willing to further lower the packages to bring new subscribers in to their fold.
Such customer friendly posture will go a long way in ensuring the market remains an active playground.
Why is the Indian telecom market becoming such an active playground for foreign investors? What is the reason for such an inflow of FDI, despite the global financial crisis? Corporate Radar asked Mr. Bundeep Singh Rangar, Chairman of IndusView Advisors Ltd, for his views. IndusView advises multinational companies on business opportunities emanating from India’s fast growing economy. Mr Rangar’s response:
1. Post Etisalat etc., do you think more FDI will flow into Indian telecom?
Ans: The current dynamics of the Indian telecom market should be seen from two perspectives, which also explains the evolutionary cycle the sector has seen over the last two decades:
• A very basic realization among the masses about the need to remain connected – The first phase
• To remain connected and also harness the immense potential of the value added services and innovative applications – The second phase
While the first phase has seen the tele-density of the country jump from less than 1% in the '80s to about 30% now; the second phase is witnessing the numerous applications and value added services like music and movie clips downloads, innovative ring tones, among others.
But, that is not enough ... there is still a large population that needs to be offered the benefits of the basic communication services – that is how the target of achieving a tele-density of about 45% is set for the next five years by the government of India. The service providers – both the state owned and the private sector – would be aiming to surpass that target and garner the maximum possible chunk of that potential subscriber base.
The race among mobile telecommunication service providers translates in to a growing opportunity estimated at more than 700 million by 2012 from the current 300 million, at a CAGR of 21%.
Apart from the vanilla voice and sms services that the mobile services are widely associated with, the advent of next generation platforms like 3G and progressively 4G, will exponentially accelerate the possibilities of innovative applications that can be bundled on to the networks and delivered at the subscribers' finger tips in the hi-tech mobile handsets.
Such subscriber growth targets and evolving technology landscape calls for corresponding high capital investments which is pegged at about $73 billion over the next five years. And, a major chunk of the investment is expected to be realized through Foreign Direct Investment (FDI), particularly in the area of mobile communication.
2. Why do you think Indian telecom market is becoming so attractive for foreign players?
Ans: As mentioned above, the incumbent mobile telecommunication service providers in India currently add more than nine million subscribers a month with a potential of taking the total tally of subscribers up to 700 million in the next five years. In terms of expected revenues that translates in to overall mobile services revenues likely to be more than $37 billion by 2012 growing at a CAGR of 18%. Such growth potential in the segment offers enough incentive to overseas service providers to vie for their share of the pie. And investor friendly regulations by the government, allowing up to 74% stake holding in a domestic entity by foreign player is an icing on the cake.
The potential of a profitable exit opportunity is another reason. For instance, the stake of 26% in Tata Teleservices by Japanese telecom services provider NTT DoCoMo at $2.7 bn (Rs 12,770 crore) values Tata Teleservices at Rs 50,270 crore. Even in the current market conditions the valuations are still moving north. In early 2006, Temasek picked up a 9.9% stake in Tata Teleservices for Rs 1,500 crore valuing the company at around Rs 15,000 crore. The NTT DoCoMo deal values Tata Teleservices at more than three times that in less than three years.
3. Given current global crisis, do you think the telecom market, particularly in india, will withstand the turmoil and witness the same pattern of growth as seen in the recent times?
Ans: The recent string of investments in Indian telecom companies, including, Tata Teleservices Ltd by NTT DoCoMo, Inc; Unitech Telecom, the telecom arm of India's second largest real estate developer Unitech Ltd by Norwegian telecom firm Telenor ASA, world's seventh largest telecom service provider at $1.36 billion; and Swan Telecom, a start-up GSM telecom service company of a Mumbai-based real estate developer Dynamix Balwas Group by Dubai-based Emirates Telecommunications Corp (Etisalat) at $900 million; or, South Africa's largest telecom company MTN Group's attempts to enter the Indian market are examples of overseas companies that have exhibited confidence in the potential of the Indian market.
Communication is a necessity. The related costs of owning a handset and usage charges (tariffs) in India are among the lowest in the world. To add to that, the service providers are offering innovative tariff packages even while touching the lowest band and are willing to further lower the packages to bring new subscribers in to their fold.
Such customer friendly posture will go a long way in ensuring the market remains an active playground.
Tuesday, November 18, 2008
Super power flexibility must for Doha round success: India
NEW DELHI:Union Minister of Commerce & Industry Kamal Nath has stated that the infrastructure development is a vital area for India’s economic growth.
During his interaction with Douglas Alexander, Secretary of State for Department of International Development, UK, here last evening, Nath emphasised that there is an excellent opportunity for UK expertise as well as investments In India. “We need to generate interests in the large number of PPP projects being explored in India”, he added. Both sides also discussed about the present global financial crisis and the impact on trade. The meeting was also attended by G.K. Pillai, Commerce Secretary apart from senior officials from both the countries.
Both sides discussed the possibilities for early conclusion of the Doha Round Negotiations of the WTO. Kamal Nath explained that India continues to believe strongly in a rule-based, transparent and fair multilateral trade regime. “One of the factors which will have an important bearing on the conclusion of the Round is whether the developed countries would be willing to show the necessary flexibility for finalizing a multilateral deal. However, India has been engaging constructively and actively with other fellow member countries of the WTO in the expectation that this would be forthcoming. A conclusion would of course depend on whether the WTO members are faithful to the mandate and the final outcome reflects a clear balance between market opening and the development needs of the majority of the membership”, he added.
Both sides agreed that there is a huge potential for bilateral trade and investment in view of shared interests and a long history of relations. It was felt that the potential area for growth in trade and investment are agri-business, healthcare, infrastructure, high-technology, legal services, accountancy services and financial services. Shri Kamal Nath informed the visiting Secretary of State that Indian healthcare industry is keen for tie-ups with the UK health insurance industry for offering healthcare facilities in India.
The cumulative foreign direct investment (FDI) inflows from the UK during 1991-2008 was to the tune of US $ 5.03 billion. The top sectors that attracted FDI from the UK were: telecommunications, fuels (power & oil refining), chemicals (other than fetillisers and services sector (financial & non-financial). The top investment areas by Indians in the UK are: software development services, pharmaceuticals, textiles and handicrafts.
The total bilateral trade between India and the UK during the year 2007-08 was US $ 12 billion (exports - $ 7 billion and imports - $ 5 billion). During 2006-07, the bilateral trade was US $ 9.8 billion (exports - $ 5.6 billion and imports - $ 4.2 billion). The main exports to UK were: readymade garments, petroleum, machinery & instruments, gems & jewellery, footwear etc. The main imports from the UK were: precious & semi-precious stones, electronic goods, silver, transport equipments, metalifers ores and metal scrap etc.
The present Indo-UK Joint Working Groups is in the sectors of hi-tech, IPR (intellectual property rights), accountancy, legal services, infrastructure, healthcare, financial services and company affairs. The 5th Meeting of the Indo-UK JETCO (Joint Economic and Trade Committee) is scheduled to be held in New Delhi on a date to be decided mutually.
During his interaction with Douglas Alexander, Secretary of State for Department of International Development, UK, here last evening, Nath emphasised that there is an excellent opportunity for UK expertise as well as investments In India. “We need to generate interests in the large number of PPP projects being explored in India”, he added. Both sides also discussed about the present global financial crisis and the impact on trade. The meeting was also attended by G.K. Pillai, Commerce Secretary apart from senior officials from both the countries.
Both sides discussed the possibilities for early conclusion of the Doha Round Negotiations of the WTO. Kamal Nath explained that India continues to believe strongly in a rule-based, transparent and fair multilateral trade regime. “One of the factors which will have an important bearing on the conclusion of the Round is whether the developed countries would be willing to show the necessary flexibility for finalizing a multilateral deal. However, India has been engaging constructively and actively with other fellow member countries of the WTO in the expectation that this would be forthcoming. A conclusion would of course depend on whether the WTO members are faithful to the mandate and the final outcome reflects a clear balance between market opening and the development needs of the majority of the membership”, he added.
Both sides agreed that there is a huge potential for bilateral trade and investment in view of shared interests and a long history of relations. It was felt that the potential area for growth in trade and investment are agri-business, healthcare, infrastructure, high-technology, legal services, accountancy services and financial services. Shri Kamal Nath informed the visiting Secretary of State that Indian healthcare industry is keen for tie-ups with the UK health insurance industry for offering healthcare facilities in India.
The cumulative foreign direct investment (FDI) inflows from the UK during 1991-2008 was to the tune of US $ 5.03 billion. The top sectors that attracted FDI from the UK were: telecommunications, fuels (power & oil refining), chemicals (other than fetillisers and services sector (financial & non-financial). The top investment areas by Indians in the UK are: software development services, pharmaceuticals, textiles and handicrafts.
The total bilateral trade between India and the UK during the year 2007-08 was US $ 12 billion (exports - $ 7 billion and imports - $ 5 billion). During 2006-07, the bilateral trade was US $ 9.8 billion (exports - $ 5.6 billion and imports - $ 4.2 billion). The main exports to UK were: readymade garments, petroleum, machinery & instruments, gems & jewellery, footwear etc. The main imports from the UK were: precious & semi-precious stones, electronic goods, silver, transport equipments, metalifers ores and metal scrap etc.
The present Indo-UK Joint Working Groups is in the sectors of hi-tech, IPR (intellectual property rights), accountancy, legal services, infrastructure, healthcare, financial services and company affairs. The 5th Meeting of the Indo-UK JETCO (Joint Economic and Trade Committee) is scheduled to be held in New Delhi on a date to be decided mutually.
Monday, November 17, 2008
Dont't run away from India, Kamal Nath tells investors
NEW DELHI: Union Commerce Minister Kamal Nath today said that world would benefit tremendously from a stable, large and growing consumer market provided by India and added that this is not the time for foreign investors to give up on India.
"Foreign investors who withdraw equity investments or shelve FDI plans in India will find themselves behind the curve as our economy picks up its 9-10% pace once again," he said addressing the Plenary Session on “Securing Opportunities for Inclusive Growth in India” at the India Economic Summit here.
Kamal Nath pointed out that India’s reform process has allowed millions of poor people to cross the poverty threshold and added that there is still a lot of room for further reforms in key areas such as public private partnerships, financial sector, and taxation, among others. He said that much action remains on the agenda table for integrating further with the global economy and becoming a vital link in the international supply chain of goods and services, funds and capital, and resources and talent.
The 3-day (16-18 November) Summit is being jointly organized by the Confederation of Indian Industry (CII) and World Economic Forum.
Kamal Nath emphasised that inclusive growth ultimately depends on the productivity of the overall workforce, which in turn is dependent on its education, skill development, technical and professional education, and talent resource levels. India’s workforce numbers around 500 million people and is expected to expand by about 20 million each year for the next ten years. “But 600 million people continue to depend on agriculture as a source of livelihood. While agriculture has been expanding at close to 3% annually, there is need to move people off the land in order to enhance their productivity and increase their incomes”, he added.
Speaking about India’s engagement with the world, he said that India’s total exports in 2004-05 was at $ 83.5 billion, whereas in 2007-08, it exceeded the targets and achieved a doubling of trade to $163 billion and this year, for the period April to September export growth was 31% over the same period last year. At the same time, we continue to be a solid market for overseas goods, he underlined and added that India’s imports have gone up from $ 112 billion in 2004-05 to $ 251 billion in 2007-08 and non-oil imports increased at a rapid clip of 43%. “When we include export and import of services, our external engagement can be placed at over $ 525 billion for the past year, which adds up to more than half of GDP. This is unprecedented in India’s modern economic history”, he said
"Foreign investors who withdraw equity investments or shelve FDI plans in India will find themselves behind the curve as our economy picks up its 9-10% pace once again," he said addressing the Plenary Session on “Securing Opportunities for Inclusive Growth in India” at the India Economic Summit here.
Kamal Nath pointed out that India’s reform process has allowed millions of poor people to cross the poverty threshold and added that there is still a lot of room for further reforms in key areas such as public private partnerships, financial sector, and taxation, among others. He said that much action remains on the agenda table for integrating further with the global economy and becoming a vital link in the international supply chain of goods and services, funds and capital, and resources and talent.
The 3-day (16-18 November) Summit is being jointly organized by the Confederation of Indian Industry (CII) and World Economic Forum.
Kamal Nath emphasised that inclusive growth ultimately depends on the productivity of the overall workforce, which in turn is dependent on its education, skill development, technical and professional education, and talent resource levels. India’s workforce numbers around 500 million people and is expected to expand by about 20 million each year for the next ten years. “But 600 million people continue to depend on agriculture as a source of livelihood. While agriculture has been expanding at close to 3% annually, there is need to move people off the land in order to enhance their productivity and increase their incomes”, he added.
Speaking about India’s engagement with the world, he said that India’s total exports in 2004-05 was at $ 83.5 billion, whereas in 2007-08, it exceeded the targets and achieved a doubling of trade to $163 billion and this year, for the period April to September export growth was 31% over the same period last year. At the same time, we continue to be a solid market for overseas goods, he underlined and added that India’s imports have gone up from $ 112 billion in 2004-05 to $ 251 billion in 2007-08 and non-oil imports increased at a rapid clip of 43%. “When we include export and import of services, our external engagement can be placed at over $ 525 billion for the past year, which adds up to more than half of GDP. This is unprecedented in India’s modern economic history”, he said
Saturday, November 15, 2008
Indian Railways to pump in $62 billion for development
by Harish Kunwar(Assistant Director, Press Information Bureau, New Delhi)
Over the decade, private sector participation in the railway sector has increased, though it remains limited. The public-private partnership (PPP) model is becoming increasingly popular in order to mobilize capital and improve operation and management skills. In the past, IR made several attempts to involve the private sector through works or management contracts in areas such as catering wagon ownership and leasing, and joint ventures (JVs) for rail infrastructure projects. As a result, several initiatives were taken up on a PPP basis. These included commercial utilization of railway land, private operation of container trains, catering services, warehouses and wagon procurement. A number of PPP projects are also on the anvil. These include construction of dedicated freight corridors, modernization of railway stations, manufacture of rolling stock, utilization of vacant railway land, development of railside warehouses, construction of passenger terminals and development of VSAT hubs.
It has been assessed that Indian Railways would need to spend around Rs. 2,51000 crore (US$62 billion) on various capacity enhancement measures over the next five year period. A major part of the investment would come from internally generated resources. Budgetary support to the extent feasible would also come forth. However, to meet the massive investment needed, these would need to be leveraged to mobilize adequate level extra budgetary resources. Around Rs. 1,00,000 crore is expected to come from extra budgetary resources including Public Private Partnership (PPP). PPP would, thus, play a crucial role in the attainment of the strategic goals outlined above.
Construction of DFC
It has been planned to construct a new Dedicated Freight Corridor (DFC), initially covering about 2700 route kms. equivalent to around 5000 track kilometers at an approximate cost of Rs. 28000 crore (US$6 billion) linking the ports of western India and the ports and mines of Eastern India to Delhi and Punjab. The construction of this corridor will be implemented through an SPV being created for the purpose through a mix of Engineering Procurement and Construction (EPC) and PPP methods. Ministry of Railways is in the process of selecting a global consultant to advise on the concession agreement, principles of track access charges and other financing and bidding issues. It is envisaged that innovative ideas on design, construction and maintenance of railway to achieve optimal life – cycle costs would be forthcoming through PPP especially as the work progresses on the initial two corridors and further corridors are taken up. The concessionaire could also tap additional ancillary revenue streams through commercial exploitation of and, construction of freight terminal/logistic park/ICDs etc.
World Class Railway Stations
Railway stations at metropolitan cities and important tourist centres need to be modernized to provide world-class passenger amenities and services to the large multitude of passengers using these stations. Indian Railways is planning to do so by attracting private investments in the area by leveraging the land around and airspace above the stations. The concessionaire would be expected to construct and maintain the operational and passenger areas free of cost, share the revenue earned from the real-estate created and hand over the same after the concession period. Altogether 26 stations have been identified in the first stage. These are CST Mumbai (Carnac Bunder), Pune, Howrah (Kolkata), Lucknow, New Delhi, Anand Vihar and Bijwasan at Delhi, Amritsar, Chandigarh, Varanasi, Chennai, Thiruvananthapuram, Secunderabad, Ahmedabad, Patna, Bhubaneshwar, Mathura, Agra, Gaya, Bangalore, Jaipur, Nagpur, Tirupati, Bhopal, Kanpur and Guwahati. Pre-qualification process for bidders for the pilot project for New Delhi Station has been initiated. Redevelopment of Patna, Secunderabad and Mumbai will also be taken up during the current year. Development of other stations and green field passenger terminals would also be taken up subsequently.
Commercial Utilization of Land
Indian Railways has approximately 43,000 hectares of vacant land. These are mostly alongside track in longitudinal strips, around railway stations, and in railway colonies especially in metro and other important cities/towns with potential of being used commercially to generate revenue as well as capital for modernization and capacity addition. A new body, namely Rail Land Development Authority (RLDA) has been set up under the Railway (Amendment) Act 2005 to pursue, interalia, the main objectives of generating revenue and up grading railway assets. 110 sites have already been entrusted to RLDA.
SPV for manufacturing
With sustained economic growth and the resultant demand for rail transport the requirement of rolling stock has increased manifold. The requirement of coaches/Electrical Multiple Units is projected at 22689 vehicle unit for the XI Five Year Plan The gap between the requirement and the combined capacity of the two Production Units at Integral Coach Factory, Perambur and Rail Coach Factory, Kapurthala (around 2500 per annum) is planned to be bridged by augmenting the existing capacity of these Production Units and setting up a new manufacturing unit through a JV under PPP.
Similarly, the requirement of Electric and Diesel Locomotives has been projected at 1800 each during the XI Five Year Plan i.e. 360 locos per year. The existing in – house capacity for the manufacture of these locomotives is presently 150 per annum for Electric and for Diesel. The gap between the requirement and capacity is also planned to be bridged by setting up two locomotive manufacturing units one each for diesel and electric locomotives through PPP. Possibility of PPP through long-term demand guarantee to prospective manufactures of modern wagons is also being explored.
High Speed Corridors
Pre-feasibility studies are being awarded for a few identified corridors to examine. Linking a few of our bustling metropolises with a high speed rail links to facilitate train travel over 600-1000 km within 2.5 to 4 hours. All options including PPP will be explored.
Operation of container trains and construction of Multi-modal Logistics Parks
Private operators have been allowed to manage rail-borne Container Services on Indian Railways. Concession agreement setting out the terms of such operation has been signed with 15 private operators. The scheme is also open for other operators to join. So far private operators have inducted 45 rakes and built three ICDs at Garihassru, Patli and Loni.
Policy framework to facilitate setting up of Multi-modal Logistics Parks (MLPs) in SEZs or private land with rail connectivity has been formulated. The policy also evisages utilization or surplus railway land available at suitable locations for development of MLPs and/or bulk or dedicated freight terminals.
Wagon investment Scheme
The Wagon Investment Scheme (WIS) with provisions for freight rebate and supply of guaranteed number of rakes over periods ranging from 7-15 years for various categories of wagons has been in operation for the past few years. The scheme is being replaced by a new scheme to broaden its appeal to investors providing high-capacity and special purpose wagons. A scheme to facilitate third-party leasing of wagons is also under finalization.
Port Connectivity works
Rail Vikas Nigam Limited (RVNL) has been mandated to undertake capacity augmentation works and port connectivity projects by establishing Special Purpose Vehicles (SPVs) Some of the projects taken up or under consideration of RVNL include Palanpur-Gandhidham gauge conversion project (linking Kandla and Mundhra ports to North India), Haridaspur-Paradeep New Line (linking iron ore mines of Orissa and Jharkhand to Pradeep port), Anugul-Sukinda (linking iron-ore and coal-belts of Orissa), Obulavaripalli-Krishnapatnam – New Line Project linking the Krishnapatnam port of Andhra Pradesh, Bharuch-Dahej and Surt-Hazira projects in the State of Gujarat and Penn-Rewas Port link (Maharashtra)
Catering etc.,
Indian Railway Catering and Tourism Corporation (IRCTC) has been mandated to develop catering services, budget hotels and food plazas at major stations through involvement of private entrepreneurs.
IRCTC is commissioning new Food Plazas in Railway premises with private participation. The license period for food plazas is of nine years with a provision of extension of three years. Already 53 such Food Plazas have been commissioned.
Indian Railways is also in the process of carrying out an examination of the scope of need-based ‘base kitchens’ and ‘launderettes’ with public private partnership to strengthen the infrastructure for on-board services. Call centers are also being planned under PPP by IRCTC to cater to the need for information dissemination to the railway customers.
Apart from the above projects, for which Indian Railway Catering and Tourism Corporation (IRCTC) would act as a nodal agency, Indian Railway is also planning to launch new services for the luxury tourism segment on the pattern of ‘Palace on Wheel’ in partnership with interested State Governments. (PIB Features)
Over the decade, private sector participation in the railway sector has increased, though it remains limited. The public-private partnership (PPP) model is becoming increasingly popular in order to mobilize capital and improve operation and management skills. In the past, IR made several attempts to involve the private sector through works or management contracts in areas such as catering wagon ownership and leasing, and joint ventures (JVs) for rail infrastructure projects. As a result, several initiatives were taken up on a PPP basis. These included commercial utilization of railway land, private operation of container trains, catering services, warehouses and wagon procurement. A number of PPP projects are also on the anvil. These include construction of dedicated freight corridors, modernization of railway stations, manufacture of rolling stock, utilization of vacant railway land, development of railside warehouses, construction of passenger terminals and development of VSAT hubs.
It has been assessed that Indian Railways would need to spend around Rs. 2,51000 crore (US$62 billion) on various capacity enhancement measures over the next five year period. A major part of the investment would come from internally generated resources. Budgetary support to the extent feasible would also come forth. However, to meet the massive investment needed, these would need to be leveraged to mobilize adequate level extra budgetary resources. Around Rs. 1,00,000 crore is expected to come from extra budgetary resources including Public Private Partnership (PPP). PPP would, thus, play a crucial role in the attainment of the strategic goals outlined above.
Construction of DFC
It has been planned to construct a new Dedicated Freight Corridor (DFC), initially covering about 2700 route kms. equivalent to around 5000 track kilometers at an approximate cost of Rs. 28000 crore (US$6 billion) linking the ports of western India and the ports and mines of Eastern India to Delhi and Punjab. The construction of this corridor will be implemented through an SPV being created for the purpose through a mix of Engineering Procurement and Construction (EPC) and PPP methods. Ministry of Railways is in the process of selecting a global consultant to advise on the concession agreement, principles of track access charges and other financing and bidding issues. It is envisaged that innovative ideas on design, construction and maintenance of railway to achieve optimal life – cycle costs would be forthcoming through PPP especially as the work progresses on the initial two corridors and further corridors are taken up. The concessionaire could also tap additional ancillary revenue streams through commercial exploitation of and, construction of freight terminal/logistic park/ICDs etc.
World Class Railway Stations
Railway stations at metropolitan cities and important tourist centres need to be modernized to provide world-class passenger amenities and services to the large multitude of passengers using these stations. Indian Railways is planning to do so by attracting private investments in the area by leveraging the land around and airspace above the stations. The concessionaire would be expected to construct and maintain the operational and passenger areas free of cost, share the revenue earned from the real-estate created and hand over the same after the concession period. Altogether 26 stations have been identified in the first stage. These are CST Mumbai (Carnac Bunder), Pune, Howrah (Kolkata), Lucknow, New Delhi, Anand Vihar and Bijwasan at Delhi, Amritsar, Chandigarh, Varanasi, Chennai, Thiruvananthapuram, Secunderabad, Ahmedabad, Patna, Bhubaneshwar, Mathura, Agra, Gaya, Bangalore, Jaipur, Nagpur, Tirupati, Bhopal, Kanpur and Guwahati. Pre-qualification process for bidders for the pilot project for New Delhi Station has been initiated. Redevelopment of Patna, Secunderabad and Mumbai will also be taken up during the current year. Development of other stations and green field passenger terminals would also be taken up subsequently.
Commercial Utilization of Land
Indian Railways has approximately 43,000 hectares of vacant land. These are mostly alongside track in longitudinal strips, around railway stations, and in railway colonies especially in metro and other important cities/towns with potential of being used commercially to generate revenue as well as capital for modernization and capacity addition. A new body, namely Rail Land Development Authority (RLDA) has been set up under the Railway (Amendment) Act 2005 to pursue, interalia, the main objectives of generating revenue and up grading railway assets. 110 sites have already been entrusted to RLDA.
SPV for manufacturing
With sustained economic growth and the resultant demand for rail transport the requirement of rolling stock has increased manifold. The requirement of coaches/Electrical Multiple Units is projected at 22689 vehicle unit for the XI Five Year Plan The gap between the requirement and the combined capacity of the two Production Units at Integral Coach Factory, Perambur and Rail Coach Factory, Kapurthala (around 2500 per annum) is planned to be bridged by augmenting the existing capacity of these Production Units and setting up a new manufacturing unit through a JV under PPP.
Similarly, the requirement of Electric and Diesel Locomotives has been projected at 1800 each during the XI Five Year Plan i.e. 360 locos per year. The existing in – house capacity for the manufacture of these locomotives is presently 150 per annum for Electric and for Diesel. The gap between the requirement and capacity is also planned to be bridged by setting up two locomotive manufacturing units one each for diesel and electric locomotives through PPP. Possibility of PPP through long-term demand guarantee to prospective manufactures of modern wagons is also being explored.
High Speed Corridors
Pre-feasibility studies are being awarded for a few identified corridors to examine. Linking a few of our bustling metropolises with a high speed rail links to facilitate train travel over 600-1000 km within 2.5 to 4 hours. All options including PPP will be explored.
Operation of container trains and construction of Multi-modal Logistics Parks
Private operators have been allowed to manage rail-borne Container Services on Indian Railways. Concession agreement setting out the terms of such operation has been signed with 15 private operators. The scheme is also open for other operators to join. So far private operators have inducted 45 rakes and built three ICDs at Garihassru, Patli and Loni.
Policy framework to facilitate setting up of Multi-modal Logistics Parks (MLPs) in SEZs or private land with rail connectivity has been formulated. The policy also evisages utilization or surplus railway land available at suitable locations for development of MLPs and/or bulk or dedicated freight terminals.
Wagon investment Scheme
The Wagon Investment Scheme (WIS) with provisions for freight rebate and supply of guaranteed number of rakes over periods ranging from 7-15 years for various categories of wagons has been in operation for the past few years. The scheme is being replaced by a new scheme to broaden its appeal to investors providing high-capacity and special purpose wagons. A scheme to facilitate third-party leasing of wagons is also under finalization.
Port Connectivity works
Rail Vikas Nigam Limited (RVNL) has been mandated to undertake capacity augmentation works and port connectivity projects by establishing Special Purpose Vehicles (SPVs) Some of the projects taken up or under consideration of RVNL include Palanpur-Gandhidham gauge conversion project (linking Kandla and Mundhra ports to North India), Haridaspur-Paradeep New Line (linking iron ore mines of Orissa and Jharkhand to Pradeep port), Anugul-Sukinda (linking iron-ore and coal-belts of Orissa), Obulavaripalli-Krishnapatnam – New Line Project linking the Krishnapatnam port of Andhra Pradesh, Bharuch-Dahej and Surt-Hazira projects in the State of Gujarat and Penn-Rewas Port link (Maharashtra)
Catering etc.,
Indian Railway Catering and Tourism Corporation (IRCTC) has been mandated to develop catering services, budget hotels and food plazas at major stations through involvement of private entrepreneurs.
IRCTC is commissioning new Food Plazas in Railway premises with private participation. The license period for food plazas is of nine years with a provision of extension of three years. Already 53 such Food Plazas have been commissioned.
Indian Railways is also in the process of carrying out an examination of the scope of need-based ‘base kitchens’ and ‘launderettes’ with public private partnership to strengthen the infrastructure for on-board services. Call centers are also being planned under PPP by IRCTC to cater to the need for information dissemination to the railway customers.
Apart from the above projects, for which Indian Railway Catering and Tourism Corporation (IRCTC) would act as a nodal agency, Indian Railway is also planning to launch new services for the luxury tourism segment on the pattern of ‘Palace on Wheel’ in partnership with interested State Governments. (PIB Features)
Saturday, November 1, 2008
Repo rate cut, RBI warns of global recession trends
MUMBAI: Announcing, further measures for Monetary and Liquidity Management, the Reserve Bank of India (RBI) today cut repo rate by 50 basis points. With this new repo rate stands at 7.5 per cent.
In its Mid-Term Review of the Annual Policy Statement for 2008-09, the Reserve Bank of India indicated that in the context of the uncertain and unsettled global situation and its indirect impact on our domestic economy and our financial markets, it would closely and continuously monitor the situation and respond swiftly and effectively to developments. In doing so, the Reserve Bank will employ both conventional and unconventional measures.
RBI noted that global financial conditions continue to remain uncertain and unsettled, and early signs of a global recession are becoming evident. These developments are being reflected in sharp declines in stock markets across the world and heightened volatility in currency movements. International money markets are yet to regain calm and confidence and return to normal functioning.
It was also indicated in the Mid-Term Review that the current challenge for the conduct of monetary policy is to strike an optimal balance between preserving financial stability, maintaining price stability and sustaining the growth momentum. Inflation, in terms of the wholesale price index (WPI), has been softening steadily since August 9, 2008 and has declined to 10.68 per cent for the week ended October 18, 2008.
Globally, pressures from commodity prices, including crude, appear to be abating. The moderation in key global commodity prices, if sustained, would further reduce inflationary pressures. On the growth front, it is important to ensure that credit requirements for productive purposes are adequately met so as to support the growth momentum of the economy, RBI said.
Domestic financial markets have been functioning normally. Prudent regulatory surveillance and effective supervision have ensured that our financial sector has been and continues to be robust. However, the global financial turmoil has had knock-on effects on our financial markets; this has reinforced the importance of focusing on preserving financial stability,
The Reserve Bank has reviewed the current and evolving macroeconomic situation and liquidity conditions in the global and domestic financial markets. Based on this review, it has decided to take the following further measures:
(i) On October 20, 2008, the Reserve Bank announced a reduction in the repo rate under the Liquidity Adjustment Facility (LAF) by 100 basis points from 9.0 to 8.0 per cent. In view of the ebbing of upside inflation risks as also to address concerns relating to the moderation in the growth momentum, it has been decided to reduce the repo rate under the LAF by 50 basis points to 7.5 per cent with effect from November 3, 2008.
(ii) The cash reserve ratio (CRR) of scheduled banks is reduced by 100 basis points from 6.5 per cent to 5.5 per cent of net demand and time liabilities (NDTL). This will be effected in two stages: by 50 basis points retrospectively with effect from the fortnight beginning October 25, and by a further 50 basis points prospectively with effect from the fortnight beginning November 8, 2008. This measure is expected to release around Rs.40,000 crore into the system.
(iii) On September 16, 2008, the Reserve Bank had announced, as a temporary and ad hoc measure, that scheduled banks could avail additional liquidity support under the LAF to the extent of up to one per cent of their NDTL and seek waiver of penal interest. It has now been decided to make this reduction permanent. Accordingly, the Statutory Liquidity Ratio (SLR) will stand reduced to 24 per cent of NDTL with effect from the fortnight beginning November 8, 2008.
(iv) In order to provide further comfort on liquidity and to impart flexibility in liquidity management to banks, it has been decided to introduce a special refinance facility under Section 17(3B) of the Reserve bank of India Act, 1934. Under this facility, all scheduled commercial banks (excluding RRBs) will be provided refinance from the Reserve Bank equivalent to up to 1.0 per cent of each bank's NDTL as on October 24, 2008 at the LAF repo rate up to a maximum period of 90 days. During this period, refinance can be flexibly drawn and repaid.
(v) On October 15, 2008 the Reserve Bank announced, purely as a temporary measure, that banks may avail of additional liquidity support exclusively for the purpose of meeting the liquidity requirements of mutual funds (MFs) to the extent of up to 0.5 per cent of their NDTL. A similar facility of liquidity support for non-banking financial companies (NBFCs) is also found to be necessary to enable them to manage their funding requirements. Accordingly, it has now been decided, on a purely temporary and ad hoc basis, subject to review, to extend this facility and allow banks to avail liquidity support under the LAF through relaxation in the maintenance of SLR to the extent of up to 1.5 per cent of their NDTL. This relaxation in SLR is to be used exclusively for the purpose of meeting the funding requirements of NBFCs and MFs. Banks can apportion the total accommodation allowed above between MFs and NBFCs flexibly as per their business needs.
(vi) As indicated in the Reserve Bank's press release of September 16, 2008, as on some previous occasions, the Reserve Bank will continue to sell foreign exchange (US dollar) through agent banks to augment supply in the domestic foreign exchange market or intervene directly to meet any demand-supply gaps. The Reserve Bank would either sell the foreign exchange directly or advise the bank concerned to buy it in the market. All the transactions by the Reserve Bank will be at the prevailing market rates and as per market practice. Entities with bulk forex requirements can approach the Reserve Bank through their banks for this purpose.
(vii) It has been decided, as a temporary measure, to permit Systemically Important Non-Deposit taking Non-Banking Financial Companies (NBFCs-ND-SI) to raise short- term foreign currency borrowings under the approval route, subject to their complying with the prudential norms on capital adequacy and exposure norms. Details in this regard have been notified separately and are available on the Reserve Bank's web site.
(viii) Under the Market Stabilisation Scheme (MSS), Government Securities (treasury bills and dated securities) have been issued to sterilise the expansionary effects of forex inflows. In the context of forex outflows in the recent period, it has been decided to conduct buy-back of MSS dated securities so as to provide another avenue for injecting liquidity of a more durable nature into the system. This will be calibrated with the market borrowing programme of the Government of India. The securities proposed to be bought back and the timing and modalities of these operations are being notified separately.
The Reserve Bank will continue to closely monitor the developments in the global and domestic financial markets and will take swift and effective action as appropriate, an official communiqué said.
In its Mid-Term Review of the Annual Policy Statement for 2008-09, the Reserve Bank of India indicated that in the context of the uncertain and unsettled global situation and its indirect impact on our domestic economy and our financial markets, it would closely and continuously monitor the situation and respond swiftly and effectively to developments. In doing so, the Reserve Bank will employ both conventional and unconventional measures.
RBI noted that global financial conditions continue to remain uncertain and unsettled, and early signs of a global recession are becoming evident. These developments are being reflected in sharp declines in stock markets across the world and heightened volatility in currency movements. International money markets are yet to regain calm and confidence and return to normal functioning.
It was also indicated in the Mid-Term Review that the current challenge for the conduct of monetary policy is to strike an optimal balance between preserving financial stability, maintaining price stability and sustaining the growth momentum. Inflation, in terms of the wholesale price index (WPI), has been softening steadily since August 9, 2008 and has declined to 10.68 per cent for the week ended October 18, 2008.
Globally, pressures from commodity prices, including crude, appear to be abating. The moderation in key global commodity prices, if sustained, would further reduce inflationary pressures. On the growth front, it is important to ensure that credit requirements for productive purposes are adequately met so as to support the growth momentum of the economy, RBI said.
Domestic financial markets have been functioning normally. Prudent regulatory surveillance and effective supervision have ensured that our financial sector has been and continues to be robust. However, the global financial turmoil has had knock-on effects on our financial markets; this has reinforced the importance of focusing on preserving financial stability,
The Reserve Bank has reviewed the current and evolving macroeconomic situation and liquidity conditions in the global and domestic financial markets. Based on this review, it has decided to take the following further measures:
(i) On October 20, 2008, the Reserve Bank announced a reduction in the repo rate under the Liquidity Adjustment Facility (LAF) by 100 basis points from 9.0 to 8.0 per cent. In view of the ebbing of upside inflation risks as also to address concerns relating to the moderation in the growth momentum, it has been decided to reduce the repo rate under the LAF by 50 basis points to 7.5 per cent with effect from November 3, 2008.
(ii) The cash reserve ratio (CRR) of scheduled banks is reduced by 100 basis points from 6.5 per cent to 5.5 per cent of net demand and time liabilities (NDTL). This will be effected in two stages: by 50 basis points retrospectively with effect from the fortnight beginning October 25, and by a further 50 basis points prospectively with effect from the fortnight beginning November 8, 2008. This measure is expected to release around Rs.40,000 crore into the system.
(iii) On September 16, 2008, the Reserve Bank had announced, as a temporary and ad hoc measure, that scheduled banks could avail additional liquidity support under the LAF to the extent of up to one per cent of their NDTL and seek waiver of penal interest. It has now been decided to make this reduction permanent. Accordingly, the Statutory Liquidity Ratio (SLR) will stand reduced to 24 per cent of NDTL with effect from the fortnight beginning November 8, 2008.
(iv) In order to provide further comfort on liquidity and to impart flexibility in liquidity management to banks, it has been decided to introduce a special refinance facility under Section 17(3B) of the Reserve bank of India Act, 1934. Under this facility, all scheduled commercial banks (excluding RRBs) will be provided refinance from the Reserve Bank equivalent to up to 1.0 per cent of each bank's NDTL as on October 24, 2008 at the LAF repo rate up to a maximum period of 90 days. During this period, refinance can be flexibly drawn and repaid.
(v) On October 15, 2008 the Reserve Bank announced, purely as a temporary measure, that banks may avail of additional liquidity support exclusively for the purpose of meeting the liquidity requirements of mutual funds (MFs) to the extent of up to 0.5 per cent of their NDTL. A similar facility of liquidity support for non-banking financial companies (NBFCs) is also found to be necessary to enable them to manage their funding requirements. Accordingly, it has now been decided, on a purely temporary and ad hoc basis, subject to review, to extend this facility and allow banks to avail liquidity support under the LAF through relaxation in the maintenance of SLR to the extent of up to 1.5 per cent of their NDTL. This relaxation in SLR is to be used exclusively for the purpose of meeting the funding requirements of NBFCs and MFs. Banks can apportion the total accommodation allowed above between MFs and NBFCs flexibly as per their business needs.
(vi) As indicated in the Reserve Bank's press release of September 16, 2008, as on some previous occasions, the Reserve Bank will continue to sell foreign exchange (US dollar) through agent banks to augment supply in the domestic foreign exchange market or intervene directly to meet any demand-supply gaps. The Reserve Bank would either sell the foreign exchange directly or advise the bank concerned to buy it in the market. All the transactions by the Reserve Bank will be at the prevailing market rates and as per market practice. Entities with bulk forex requirements can approach the Reserve Bank through their banks for this purpose.
(vii) It has been decided, as a temporary measure, to permit Systemically Important Non-Deposit taking Non-Banking Financial Companies (NBFCs-ND-SI) to raise short- term foreign currency borrowings under the approval route, subject to their complying with the prudential norms on capital adequacy and exposure norms. Details in this regard have been notified separately and are available on the Reserve Bank's web site.
(viii) Under the Market Stabilisation Scheme (MSS), Government Securities (treasury bills and dated securities) have been issued to sterilise the expansionary effects of forex inflows. In the context of forex outflows in the recent period, it has been decided to conduct buy-back of MSS dated securities so as to provide another avenue for injecting liquidity of a more durable nature into the system. This will be calibrated with the market borrowing programme of the Government of India. The securities proposed to be bought back and the timing and modalities of these operations are being notified separately.
The Reserve Bank will continue to closely monitor the developments in the global and domestic financial markets and will take swift and effective action as appropriate, an official communiqué said.
Saturday, October 18, 2008
Anything for infra, says Indian Govt
To invest whopping Rs 20,00,000 crores in current plan period
CHENNAI: Union Minister of Shipping, Road Transport and Highways,T.R. Baalu has said that the Union Government is committed to improve the infrastructure of the country to meet the growing needs of the economy.
Presiding over the signing ceremony of the Memorandum of Understanding between the Ennore Port Ltd and Nissan Motor (India) Pvt Ltd for export of Cars through Ennore Port in Chennai today, Mr Baalu said that the country’s economy is poised to take a great leap and to give the economy a big boost, Government has planned to give an impetus to infrastructure development.
He said that over Rs. 20,00,000 crore (20 lakh crore) would be invested during the five years of 11th five year plan for the infrastructure development out of a total investment of over Rs. 36,00,000 crore (36 lakh crore) which is 56.4% of the total investment.
Thiru Baalu said that the Department of Shipping has launched the National Maritime Development Policy (NMDP), which has put the port sector in India in an overdrive mode during the past 4 years. He said that the capacity of major ports stood at 384.5 million tonnes in March 2004 and it has leaped forward to 532 million tonnes as on March 2008, representing a 36% growth in capacity in the last four years. Likewise, the traffic through the major ports went up from 344.79 million tonnes in 2003-04 to 519.23 million tonnes in 2007-08, registering an impressive growth of 51%, the Minister added.
He informed that the NMDP comprises of 387 projects involving a total investment of Rs.1,00,339 crores (approximately US $ 21 billion). Out of this, Rs.55,804 crores (approximately US $ 12 billion) is for the Port sector and the balance Rs.44,535 crores (approximately US $ 9 billion) is for the Shipping and Inland Waterway Transport sectors with the target of completion by 2011-12. Thiru Baalu said that Tamil Nadu’s Gross State Domestic Product (GDP) for 2007 is estimated at Rs.2,75,000 crore which comes to 9.50% per year and which is in line with the national growth of 9.08%. He said that keeping in view the pace of development in the State in last few years, as also the glorious maritime history, a total of Rs.13,284 crores has been allocated by the Department of Shipping, Government of India to Tamil Nadu for the development of the three major ports, namely, Ennore, Chennai and Tuticorin. This translates to around 23.80% of the total NMDP investments. Of this, Ennore Port’s share at Rs.6,466 crores alone is nearly half of that for Tamil Nadu at 11.59% of the NMPD allocation for the 12 Major Ports.
Commending the performance of the Ennore Port, which is the first corporate port of the country, the Minister said that though youngest, the Port has embarked on the ambitious programme under Phase-I of the NMDP to develop various projects at an estimated cost of Rs.2,700 crore. The total investment by private partners through the BOT projects is around Rs.1100 crore and apart from this, the Ennore Port is investing Rs.300 crore in connectivity and harbour deepening projects, the Minister informed.
He also commended the Ennore Port for taking up the major initiative to facilitate export of Cars in pursuit of which, the EPL and Nissan Motor (India) have signed an MOU today. He hoped that the project would be completed on time and the export of cars would commence immediately after commissioning of the Nissan’s upcoming Car Plant at Oragadam, near Chennai.
Thiru Baalu added that Ennore Port along with Chennai Port would be a catalyst in making Chennai the Detroit of Asia by facilitating seamless exports and imports, and it would be the Engine of industrial and economic development of not only Tamil Nadu but also its hinterland in the other Southern States. (PIB)
CHENNAI: Union Minister of Shipping, Road Transport and Highways,T.R. Baalu has said that the Union Government is committed to improve the infrastructure of the country to meet the growing needs of the economy.
Presiding over the signing ceremony of the Memorandum of Understanding between the Ennore Port Ltd and Nissan Motor (India) Pvt Ltd for export of Cars through Ennore Port in Chennai today, Mr Baalu said that the country’s economy is poised to take a great leap and to give the economy a big boost, Government has planned to give an impetus to infrastructure development.
He said that over Rs. 20,00,000 crore (20 lakh crore) would be invested during the five years of 11th five year plan for the infrastructure development out of a total investment of over Rs. 36,00,000 crore (36 lakh crore) which is 56.4% of the total investment.
Thiru Baalu said that the Department of Shipping has launched the National Maritime Development Policy (NMDP), which has put the port sector in India in an overdrive mode during the past 4 years. He said that the capacity of major ports stood at 384.5 million tonnes in March 2004 and it has leaped forward to 532 million tonnes as on March 2008, representing a 36% growth in capacity in the last four years. Likewise, the traffic through the major ports went up from 344.79 million tonnes in 2003-04 to 519.23 million tonnes in 2007-08, registering an impressive growth of 51%, the Minister added.
He informed that the NMDP comprises of 387 projects involving a total investment of Rs.1,00,339 crores (approximately US $ 21 billion). Out of this, Rs.55,804 crores (approximately US $ 12 billion) is for the Port sector and the balance Rs.44,535 crores (approximately US $ 9 billion) is for the Shipping and Inland Waterway Transport sectors with the target of completion by 2011-12. Thiru Baalu said that Tamil Nadu’s Gross State Domestic Product (GDP) for 2007 is estimated at Rs.2,75,000 crore which comes to 9.50% per year and which is in line with the national growth of 9.08%. He said that keeping in view the pace of development in the State in last few years, as also the glorious maritime history, a total of Rs.13,284 crores has been allocated by the Department of Shipping, Government of India to Tamil Nadu for the development of the three major ports, namely, Ennore, Chennai and Tuticorin. This translates to around 23.80% of the total NMDP investments. Of this, Ennore Port’s share at Rs.6,466 crores alone is nearly half of that for Tamil Nadu at 11.59% of the NMPD allocation for the 12 Major Ports.
Commending the performance of the Ennore Port, which is the first corporate port of the country, the Minister said that though youngest, the Port has embarked on the ambitious programme under Phase-I of the NMDP to develop various projects at an estimated cost of Rs.2,700 crore. The total investment by private partners through the BOT projects is around Rs.1100 crore and apart from this, the Ennore Port is investing Rs.300 crore in connectivity and harbour deepening projects, the Minister informed.
He also commended the Ennore Port for taking up the major initiative to facilitate export of Cars in pursuit of which, the EPL and Nissan Motor (India) have signed an MOU today. He hoped that the project would be completed on time and the export of cars would commence immediately after commissioning of the Nissan’s upcoming Car Plant at Oragadam, near Chennai.
Thiru Baalu added that Ennore Port along with Chennai Port would be a catalyst in making Chennai the Detroit of Asia by facilitating seamless exports and imports, and it would be the Engine of industrial and economic development of not only Tamil Nadu but also its hinterland in the other Southern States. (PIB)
Wednesday, October 15, 2008
Golden Era: Indian post offices to sell gold coins
NEW DELHI:Indian Post Offices have started selling 24 carat gold coins from today.
The sale will be available in over 100 India Post outlets in Delhi, Tamil Nadu, Maharashtra and Gujarat in the pilot phase. The gold coins are in the popular denomination of half gram, one gram, 5 grams and 8 grams. The prices of these coins will be competitive based on the prevailing prices of gold.
Launching the service in Delhi, Communications and IT Minister A. Raja directed the Department of Post to take the gold coins to rural post offices so that the benefit goes to the common man. He announced that the sale will gradually extend based on public response. He said, during Phase-II of the project, Post Offices will be selling gold coins with India Post logo.
India Post has launched this pioneering venture in association with World Gold Council and Reliance Money. World Gold Council will help market the Swiss Medallions supplied by Reliance Money, making it available to Indian consumers through Post offices in a convenient and cost effective manner. The gold coins will be packed in a sealed cover with the certification from Valcambi, Switzerland. It has the benefits like internationally recognized certification, low risk of duplication, quality packaging, product standardization, numbering and assayer certificate.
Mr Raja observed that the Post office, known for its trust and reliability, will serve as an ideal location for the people to buy quality gold coins. He said, India Post will continue to maximize the network, by making the post office a one stop shop for communication, distribution and retail solutions. Mr. Raja said, the time has come for India Post to boldly venture into new services that will make the Post office as the hub for various businesses.
Gold is the latest addition to a range of retail activity that India Post has already taken up. India Post has been selling various products under Retail Post category and there is sustained growth in the revenue from these activities. Post Office sells UPSC applications and university applications, it retails Darjeeling Tea in West Bengal, it markets Aloe Vera products in Gujarat and it takes orders for distribution of Prasadams of various temples in Andhra Pradesh and Kerala. Apart from enhancing the revenue of the Department, this will enable India Post to usher in a new image of India Post as a modern and relevant organization to the public in all areas of life.
The Minister of State for Communications & IT, Mr. Jyotiraditya M. Scindia, who was the guest of honour at the launch ceremony, declared that this pilot project on the sale of gold coins would be a beginning of many more such retail services that India Post will undertake. He said, the venture reinforces India Post’s dedicated service to the ordinary Indian.
Speaking on World Gold Council’s association with India Post, Mr. Ajay Mitra, Managing Director of the Council, said, “Retailing gold through India Post is a ground-breaking initiative in the Indian investment sector and one of its kind in the world”. Mr. Sudip Bandyopadhyay, Director and CEO, Reliance Money, said, “We want to take the culture of structured investments in gold to the masses through India Post and provide gold at impeccable quality, quantity and price points”.
The sale will be available in over 100 India Post outlets in Delhi, Tamil Nadu, Maharashtra and Gujarat in the pilot phase. The gold coins are in the popular denomination of half gram, one gram, 5 grams and 8 grams. The prices of these coins will be competitive based on the prevailing prices of gold.
Launching the service in Delhi, Communications and IT Minister A. Raja directed the Department of Post to take the gold coins to rural post offices so that the benefit goes to the common man. He announced that the sale will gradually extend based on public response. He said, during Phase-II of the project, Post Offices will be selling gold coins with India Post logo.
India Post has launched this pioneering venture in association with World Gold Council and Reliance Money. World Gold Council will help market the Swiss Medallions supplied by Reliance Money, making it available to Indian consumers through Post offices in a convenient and cost effective manner. The gold coins will be packed in a sealed cover with the certification from Valcambi, Switzerland. It has the benefits like internationally recognized certification, low risk of duplication, quality packaging, product standardization, numbering and assayer certificate.
Mr Raja observed that the Post office, known for its trust and reliability, will serve as an ideal location for the people to buy quality gold coins. He said, India Post will continue to maximize the network, by making the post office a one stop shop for communication, distribution and retail solutions. Mr. Raja said, the time has come for India Post to boldly venture into new services that will make the Post office as the hub for various businesses.
Gold is the latest addition to a range of retail activity that India Post has already taken up. India Post has been selling various products under Retail Post category and there is sustained growth in the revenue from these activities. Post Office sells UPSC applications and university applications, it retails Darjeeling Tea in West Bengal, it markets Aloe Vera products in Gujarat and it takes orders for distribution of Prasadams of various temples in Andhra Pradesh and Kerala. Apart from enhancing the revenue of the Department, this will enable India Post to usher in a new image of India Post as a modern and relevant organization to the public in all areas of life.
The Minister of State for Communications & IT, Mr. Jyotiraditya M. Scindia, who was the guest of honour at the launch ceremony, declared that this pilot project on the sale of gold coins would be a beginning of many more such retail services that India Post will undertake. He said, the venture reinforces India Post’s dedicated service to the ordinary Indian.
Speaking on World Gold Council’s association with India Post, Mr. Ajay Mitra, Managing Director of the Council, said, “Retailing gold through India Post is a ground-breaking initiative in the Indian investment sector and one of its kind in the world”. Mr. Sudip Bandyopadhyay, Director and CEO, Reliance Money, said, “We want to take the culture of structured investments in gold to the masses through India Post and provide gold at impeccable quality, quantity and price points”.
Monday, October 13, 2008
Banish Fear, says Indian FM
NEW DELHI, October 13, 2008: Indian Finance Minister P. Chidambaram today declared that “we must banish fear”.
Making a statement on the ongoing crisis in the financial markets, Mr Chidambaram said: We must remain confident and respond to the situation in a cool and mature manner. We must banish fear. Especially, depositors have nothing to fear because their deposits in banks are safe.”
He said: “Investors must take informed decisions. Before you sell, you must remember that for every seller there is a buyer. You must ask yourself why the buyer is buying in these times of perceived uncertainty and, therefore, ask yourself the further question whether there is a need to act in haste or in panic. In my view, there is no reason at all to act in haste or to give room for panic.”
“If all the players in the economy remain confident and take informed decisions, I have no doubt that the Indian economy will weather the current storm and emerge stronger.,” he said.
Pointing out that “this is a time of uncertainty,” he said: “Yet, even in a time of uncertainty there are some facts that cannot be – and ought not to be – ignored.”
The Indian economy continues to grow at a satisfactory rate. As recently as last week, the IMF’s research department (Mr. Oliver Blanchard) noted that “the Indian economy would continue to do well despite the impact of the global liquidity crunch.” As per projections made by the IMF, India is expected to post a GDP growth of 7.9 per cent during the current fiscal year.
The stock market indices are important indicators, but they are not the only indicators of the health of the Indian economy. The ratio of investment to GDP remains high at over 35 per cent at the end of the first quarter of 2008-09. The monsoon has been normal; the Kharif crop (especially rice and cotton) has been good; farmers are sowing their fields; and the prospects for the Rabi crop are bright. Factories continue to produce goods and the services sector is growing at a brisk rate, he said.
“Crude oil and commodity prices have declined sharply. This is expected to have a beneficial effect on inflation.
“The root cause of the present uncertainty is liquidity and not any dramatic change in the fundamentals of the economy. According to RBI figures, as on 26th September, 2008, non-food credit increased, year-on-year, by 24.8 per cent. Between April and 26th September, non-food credit grew by 7.8 per cent. Time and demand deposits with banks grew, year-on-year, by 18.8 per cent and, between April and 26th September by 7.2 per cent. I am happy that depositors continue to repose their confidence in the health of our banking system.
“Nevertheless, liquidity was found to be inadequate and, consequently, lenders were unwilling to take risks. Some lenders and investors faced redemption pressures leading to a sale of assets, especially stocks. The markets that are bearing the brunt of the problem are the capital market and the money market and, to an extent, the foreign exchange market. These problems can be overcome if adequate liquidity is infused into the system.
“Accordingly, RBI has taken measures that have infused an additional Rs.60,000 crore into the financial system. The LAF also provides liquidity and, as on 10th October, 2008, Rs.91,500 crore had been accessed by banks through the LAF window. We believe that these steps should ease the liquidity situation and the flow of credit should become smoother, relieving the pressures that had built up in the last two weeks.
“Government, RBI and SEBI have been in close consultation with each other during the weekend. I have spoken to the Governor, RBI and Chairman, SEBI several times in the last two days. We are coordinating our actions. We are watching the situation carefully and we will respond swiftly according to the needs of the situation. We are working on more measures that will infuse liquidity, make credit intermediation smoother, and increase the confidence of depositors and investors. We hope to be able to announce them shortly.
“Our banks are ready and willing to provide credit. Suitable advisories are being issued to the banks.
Over the weekend, the US, UK, Euro zone and Australian authorities have announced a number of measures to stabilize the financial system. The Australian capital market and three of the East Asian capital markets have opened on a bright note this morning. I expect that our capital market will also take its cue from these positive developments.”
Making a statement on the ongoing crisis in the financial markets, Mr Chidambaram said: We must remain confident and respond to the situation in a cool and mature manner. We must banish fear. Especially, depositors have nothing to fear because their deposits in banks are safe.”
He said: “Investors must take informed decisions. Before you sell, you must remember that for every seller there is a buyer. You must ask yourself why the buyer is buying in these times of perceived uncertainty and, therefore, ask yourself the further question whether there is a need to act in haste or in panic. In my view, there is no reason at all to act in haste or to give room for panic.”
“If all the players in the economy remain confident and take informed decisions, I have no doubt that the Indian economy will weather the current storm and emerge stronger.,” he said.
Pointing out that “this is a time of uncertainty,” he said: “Yet, even in a time of uncertainty there are some facts that cannot be – and ought not to be – ignored.”
The Indian economy continues to grow at a satisfactory rate. As recently as last week, the IMF’s research department (Mr. Oliver Blanchard) noted that “the Indian economy would continue to do well despite the impact of the global liquidity crunch.” As per projections made by the IMF, India is expected to post a GDP growth of 7.9 per cent during the current fiscal year.
The stock market indices are important indicators, but they are not the only indicators of the health of the Indian economy. The ratio of investment to GDP remains high at over 35 per cent at the end of the first quarter of 2008-09. The monsoon has been normal; the Kharif crop (especially rice and cotton) has been good; farmers are sowing their fields; and the prospects for the Rabi crop are bright. Factories continue to produce goods and the services sector is growing at a brisk rate, he said.
“Crude oil and commodity prices have declined sharply. This is expected to have a beneficial effect on inflation.
“The root cause of the present uncertainty is liquidity and not any dramatic change in the fundamentals of the economy. According to RBI figures, as on 26th September, 2008, non-food credit increased, year-on-year, by 24.8 per cent. Between April and 26th September, non-food credit grew by 7.8 per cent. Time and demand deposits with banks grew, year-on-year, by 18.8 per cent and, between April and 26th September by 7.2 per cent. I am happy that depositors continue to repose their confidence in the health of our banking system.
“Nevertheless, liquidity was found to be inadequate and, consequently, lenders were unwilling to take risks. Some lenders and investors faced redemption pressures leading to a sale of assets, especially stocks. The markets that are bearing the brunt of the problem are the capital market and the money market and, to an extent, the foreign exchange market. These problems can be overcome if adequate liquidity is infused into the system.
“Accordingly, RBI has taken measures that have infused an additional Rs.60,000 crore into the financial system. The LAF also provides liquidity and, as on 10th October, 2008, Rs.91,500 crore had been accessed by banks through the LAF window. We believe that these steps should ease the liquidity situation and the flow of credit should become smoother, relieving the pressures that had built up in the last two weeks.
“Government, RBI and SEBI have been in close consultation with each other during the weekend. I have spoken to the Governor, RBI and Chairman, SEBI several times in the last two days. We are coordinating our actions. We are watching the situation carefully and we will respond swiftly according to the needs of the situation. We are working on more measures that will infuse liquidity, make credit intermediation smoother, and increase the confidence of depositors and investors. We hope to be able to announce them shortly.
“Our banks are ready and willing to provide credit. Suitable advisories are being issued to the banks.
Over the weekend, the US, UK, Euro zone and Australian authorities have announced a number of measures to stabilize the financial system. The Australian capital market and three of the East Asian capital markets have opened on a bright note this morning. I expect that our capital market will also take its cue from these positive developments.”
Saturday, October 11, 2008
India continues to be tourist destination
Tourism sector in India continues to witness encouraging trends despite the fears of global economic slow down. The foreign tourist arrivals to India have touched 3.87 millions by September 2008, which is an increase of 10.4% over corresponding period of previous year. While the percentage increase in foreign tourist arrivals of 2007 over 2006 for the month of September was only 1.3%, the increase in 2008 has been as high of 9.6%, according to data available with the Press Information Bureau (PIB)
The foreign exchange earnings to India in tourism sector in rupee terms has touched 36,464 crores by September, which is a 17.8% increase over previous year for the corresponding period while the increase in 2007 over 2006 for the same period was 13.7%. Interestingly in September 2007, there was a negative growth of foreign exchange earnings over 2006. However, the trend has been reversed and there has been 21.2% increase in FE earnings in September 2008 as compared to 2007.
India continues to be a long duration and high spending destination for foreign travelers. This is quite evident from the statistics received through the UNWTO World Tourism Barometer, which indicate that the foreign exchange earnings per foreign traveler coming to India has been US $ 2112 in the year 2007, which is more than twice the foreign exchange earned per foreign traveler worldwide (which is US $ 948) as well as Asia Pacific (which is US$ 1027). In fact, most of the major Asian countries like China, Japan, Indonesia, Malaysia, Singapore and Thailand much less foreign exchange earned per foreign traveler as compared to India.
The resilience of Indian tourism sector is also evident from the fact that while the growth rate of foreign tourist arrivals worldwide has been 5% in 2008 and the average growth rate of Asia Pacific has been 6.9%, the foreign tourist arrivals to India have grown at a rate well above 10%.
Foreign Tourist Arrivals (FTAs) and Foreign Exchange Earnings (FEE) from Tourism in India during September 2008 and comparative figures of 2006 and 2007
Can India survive the global financial crisis? Yes, says World Bank
Finance Minister P Chidambaram sought to draw the attention of the business community to the fact that Mr. Robert Zoellick, President, World Bank, has said that “India is in a position to weather the global financial turmoil.”
The Minster, in a statement in New Delhi on Friday, also said: “I also wish to draw attention to the statement of Mr. H. Kuroda, President, ADB that the impact on the financial sector in Asia is limited this time.
Credit is the lifeline of trade, commerce and business and, hence, it is important that credit continues to flow to all sectors of the economy. In consultation with RBI and other regulatory authorities, Government will address the liquidity and other concerns about the economy, he said..
“It is also important to maintain our confidence in the Indian economy. As the Cabinet noted on Wednesday, the fundamentals of our economy are strong and there are many indicators which affirm the sound fundamentals,” Mr Chidambaram added.
The Minster, in a statement in New Delhi on Friday, also said: “I also wish to draw attention to the statement of Mr. H. Kuroda, President, ADB that the impact on the financial sector in Asia is limited this time.
Credit is the lifeline of trade, commerce and business and, hence, it is important that credit continues to flow to all sectors of the economy. In consultation with RBI and other regulatory authorities, Government will address the liquidity and other concerns about the economy, he said..
“It is also important to maintain our confidence in the Indian economy. As the Cabinet noted on Wednesday, the fundamentals of our economy are strong and there are many indicators which affirm the sound fundamentals,” Mr Chidambaram added.
Friday, August 15, 2008
Puravankara takes big leap into mass housing
MUMBAI: Taking a big leap into affordable premium housing and targeting the middle classes including the first time home buyer, real estate major Puravankara Projects Limited today announced the launch of its 100% owned subsidiary, Provident Housing and infrastructure Limited.
Under Phase I alone, the affordable housing project will cover Bangalore, Chennai, Hyderabad, Coimbatore, and Mysore where 64,500 homes with a total built up area of 59.80 million sq ft will be constructed over the next five years at a cost of about Rs 8,000 crores. The funding for these Phase I projects will be through construction debt and customer advances amounting to Rs 6,500 crores, with internal accruals and equity sourcing the remaining Rs 1,500 crores which will be utilized for land acquisitions.
In Phase II, Provident’s foot print will also cover cities like Delhi, Kolkata, Kochi, Jaipur, Pune and Nagpur.
The prices of Provident homes which are to be developed in a phased manner, are presently priced at Rs 10 lakhs, Rs 15 lakhs and Rs 20 lakhs and comprise of one, two and three bedroom homes.
The first three projects of Provident in Bangalore and Mysore of over 19,000 homes covering an area of 17.10 million sq ft are in the advanced stages of plan sanction with the first project in North Bangalore of 4.50 million sq ft comprising some 5,100 homes ready for launch in the next few months.
Mr Jayakar Jerome, a former IAS officer, who is credited with resurrecting the Bangalore Development Authority and taking up a slew of infrastructure projects in Bangalore City, will be the Managing Director of Provident Housing and Infrastructure Limited, while the Puravankara Group head, Mr Ravi Puravankara, will be the Chairman of the Company.
“Provident will target middle-class families and first time home buyers with the objective of meeting the ever increasing demand in this space.” said Mr Jayakar Jerome. “We will provide affordable premium homes which will cater to a largely under serviced market in the Country,” he said.
Provident has been established as an independent stand-alone entity with its own budget, offices and staff. Modern technology based methods are being used to achieve scalability at an affordable price. Provident Housing and Infrastructure Limited will function under the supervision of the Puravankara Group which is known for its premium, world class quality construction standards.
Apart from homes Provident will also develop and sell large plotted development townships for affordable housing supported by facilities like hospitals, schools and playgrounds.
With rising income levels and aspirations and the emergence of a new salaried class in the Country, the demand for homes has far out-paced supply. According an estimate, India’s housing shortage has increased from 19.4 million units in 2004 to 22.4 million in 2005-06 and this figure has since only kept rising.
The Puravankara Group with over 33 years of excellence in the upper end of the housing sector across various regions of the Country has projects in Bangalore, Chennai, Kochi, Coimbatore, Hyderabad, Mysore and Colombo. The Group also has an important presence in Dubai in the UAE and business representatives in the United Kingdom and the United States. With a land bank of over 125 million sq ft, the Group has above 20 million sq ft of residential and commercial space currently under construction. Included in this are on-going residential projects amounting to 18.30 million sq ft comprising 11,010 homes.
Under Phase I alone, the affordable housing project will cover Bangalore, Chennai, Hyderabad, Coimbatore, and Mysore where 64,500 homes with a total built up area of 59.80 million sq ft will be constructed over the next five years at a cost of about Rs 8,000 crores. The funding for these Phase I projects will be through construction debt and customer advances amounting to Rs 6,500 crores, with internal accruals and equity sourcing the remaining Rs 1,500 crores which will be utilized for land acquisitions.
In Phase II, Provident’s foot print will also cover cities like Delhi, Kolkata, Kochi, Jaipur, Pune and Nagpur.
The prices of Provident homes which are to be developed in a phased manner, are presently priced at Rs 10 lakhs, Rs 15 lakhs and Rs 20 lakhs and comprise of one, two and three bedroom homes.
The first three projects of Provident in Bangalore and Mysore of over 19,000 homes covering an area of 17.10 million sq ft are in the advanced stages of plan sanction with the first project in North Bangalore of 4.50 million sq ft comprising some 5,100 homes ready for launch in the next few months.
Mr Jayakar Jerome, a former IAS officer, who is credited with resurrecting the Bangalore Development Authority and taking up a slew of infrastructure projects in Bangalore City, will be the Managing Director of Provident Housing and Infrastructure Limited, while the Puravankara Group head, Mr Ravi Puravankara, will be the Chairman of the Company.
“Provident will target middle-class families and first time home buyers with the objective of meeting the ever increasing demand in this space.” said Mr Jayakar Jerome. “We will provide affordable premium homes which will cater to a largely under serviced market in the Country,” he said.
Provident has been established as an independent stand-alone entity with its own budget, offices and staff. Modern technology based methods are being used to achieve scalability at an affordable price. Provident Housing and Infrastructure Limited will function under the supervision of the Puravankara Group which is known for its premium, world class quality construction standards.
Apart from homes Provident will also develop and sell large plotted development townships for affordable housing supported by facilities like hospitals, schools and playgrounds.
With rising income levels and aspirations and the emergence of a new salaried class in the Country, the demand for homes has far out-paced supply. According an estimate, India’s housing shortage has increased from 19.4 million units in 2004 to 22.4 million in 2005-06 and this figure has since only kept rising.
The Puravankara Group with over 33 years of excellence in the upper end of the housing sector across various regions of the Country has projects in Bangalore, Chennai, Kochi, Coimbatore, Hyderabad, Mysore and Colombo. The Group also has an important presence in Dubai in the UAE and business representatives in the United Kingdom and the United States. With a land bank of over 125 million sq ft, the Group has above 20 million sq ft of residential and commercial space currently under construction. Included in this are on-going residential projects amounting to 18.30 million sq ft comprising 11,010 homes.
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