Kochi: Blaupunkt, the world leader in car infotainment and sound, is eyeing a 25 per cent growth in its India business this year thanks to signs of revival in the auto sector.
Last year, the company had garnered a sales revenue of Rs 125 crore through its OEM and after-sales market despite the slowdown affecting OEM sales considerably. However, the company managed the situation by focussing on after-sales service, Lars Placke, CEO and Managing Director, Blaupunkt, told Business Line on the sidelines of a function.
Placke was here to inaugurate the company’s first brand shop in India at Kochi which offers the entire product portfolio.
After drop in sales in 2012-13, he said the auto sector has started picking up this year with a visible improvement in OEM sales which is expected to continue.
Today, the company is infotainment partner of choice to leading passenger car OEs, including VW, Audi, Hyundai, and Suzuki, as well as a number of commercial vehicle providers.
Referring to brand shops, he said it would not only provide a platform for Blaupunkt to display its entire range but be the part of the company’s retail expansion strategy to scale up distribution and reach across the country.
The brand shop enables Blaupunkt to get closer to the customer and the company is aiming to launch 20 more stores in main cities in the next two years. These shops would play the role of a support centre for dealers to get more information on the products rather than offering them a competition, he added.
The company, he said, is developing next generation connected car infotainment platforms that enable multimedia, navigation, smartphone integration, 3G/WiFi connectivity, android applications, CAN base vehicle diagnostics, telematics and driver assistance.
Asked why the company has chosen Kerala to set up its first brand shop, Pankaj Jagwani, Director, Blaupunkt India, said that the State is an important market in retail perspective as the customers are more familiar with high-end products, may be because of their connections with Gulf nations.
Success in my Habit
Monday, July 14, 2014
HLL Lifecare ties up with Tata Memorial Centre
Thiruvananthapuram: HLL Lifecare, a Central public sector undertaking based here, has teamed up with Tata Memorial Centre for constructing a modern women and children cancer hospital at Parel in Mumbai.
The two parties signed a memorandum of understanding whereby they assigned the project management consultancy to the infrastructure development division of HLL Lifecare.
Hadron beam facility
The construction of the Rs 350-crore hospital is expected to be completed within 30 months.
The project will include a hadron beam facility, which an official spokesman said is the first of its kind in India and only the 12th in the world, that offers advanced and precise proton therapy for cancer patients.
Hadrons help irradiate cancerous tumours with lesser damage to surrounding healthy tissues than X-rays are thought to cause in conventional radiation therapy.
Hindustan Lifecare is proud to be associated with Tata Memorial Centre, a spokesman quoted M Ayyappan, Chairman and Managing Director, as saying.
Primary care
Commissioned in 1941, Tata Memorial Centre is among India’s most comprehensive centres for treatment, education, research and prevention of cancer.
It attracts around 43,000 new patients every year from all parts of India and neighbouring countries. Nearly 60 per cent of them receive primary care at the hospital; more than 70 per cent are treated almost free.
At least 1,000 patients report as out patients every day, the spokesman said.
As for HLL Lifecare, its infrastructure development and facility management division provides services in design, engineering, execution and management of healthcare facilities.
Among its clients are the central and various state governments, the National Rural Health Mission, the Employees State Insurance Corporation; Jipmer, Puducherry; medical colleges at Bangalore, Salem and Madurai; and the Kerala University of Health Sciences.
The two parties signed a memorandum of understanding whereby they assigned the project management consultancy to the infrastructure development division of HLL Lifecare.
Hadron beam facility
The construction of the Rs 350-crore hospital is expected to be completed within 30 months.
The project will include a hadron beam facility, which an official spokesman said is the first of its kind in India and only the 12th in the world, that offers advanced and precise proton therapy for cancer patients.
Hadrons help irradiate cancerous tumours with lesser damage to surrounding healthy tissues than X-rays are thought to cause in conventional radiation therapy.
Hindustan Lifecare is proud to be associated with Tata Memorial Centre, a spokesman quoted M Ayyappan, Chairman and Managing Director, as saying.
Primary care
Commissioned in 1941, Tata Memorial Centre is among India’s most comprehensive centres for treatment, education, research and prevention of cancer.
It attracts around 43,000 new patients every year from all parts of India and neighbouring countries. Nearly 60 per cent of them receive primary care at the hospital; more than 70 per cent are treated almost free.
At least 1,000 patients report as out patients every day, the spokesman said.
As for HLL Lifecare, its infrastructure development and facility management division provides services in design, engineering, execution and management of healthcare facilities.
Among its clients are the central and various state governments, the National Rural Health Mission, the Employees State Insurance Corporation; Jipmer, Puducherry; medical colleges at Bangalore, Salem and Madurai; and the Kerala University of Health Sciences.
Keys Hotels to unlock 100 properties in India by 2018
Keys Hotels, a mid-market brand of New York-based proprietary fund, Berggruen Holdings, is aggressively stepping up expansion in the country with plans to have 100 hotels by 2018, up from 36 now, as part of its growth strategy in Asia's third largest economy.
A few days back, it took over the management of Ras Resorts in Silvassa, adding 85 more rooms to its inventory of 1,500 rooms. Keys, in which its MD & CEO Sanjay Sethi too owns a significant equity stake, has been active in India since 2007.
The young hospitality company will use a mix of business models, including the management format, to ramp up the number of properties to 100 in the next five years.
A few days back, it took over the management of Ras Resorts in Silvassa, adding 85 more rooms to its inventory of 1,500 rooms. Keys, in which its MD & CEO Sanjay Sethi too owns a significant equity stake, has been active in India since 2007.
The young hospitality company will use a mix of business models, including the management format, to ramp up the number of properties to 100 in the next five years.
M&A activity in India up 47% to US$ 17.1 billion in 2014
New Delhi: India targeted mergers and acquisitions (M&A) activity registered a growth of 47.4 per cent in H1 2014 to touch US$ 17.1 billion, as compared to US$ 11.6 billion in H1 2013, according to a report by Mergermarket.
In the first quarter from January-March 2014, there were M&A transactions worth US$ 3.7 billion only while the next quarter from April-June 2014 saw deals worth US$ 13.4 billion, which accounted for 78 per cent of the total first-half deal value.
The second quarter this year was the most active quarter since the second quarter of 2012. Moreover, there was also an influx of large cap deals compared to the first quarter of this year. Diageo and Vodafone Group provided the largest deals, which resulted in impressive second quarter for inbound activities valued at around US$ 6.3 billion.
The most active sectors in the first two quarters of 2014 were the pharma, medical and biotech sectors, as they accounted for 27 per cent of market share from deals worth US$ 4.6 billion.
In spite of the fact that the industrials and chemicals sector led the industry chart in terms of number of deals, 27 in number, the deal value summed up to just around US$ 0.6 billion, which was down by 61.4 per cent over the corresponding period in the previous year.
The highlight of the first half of this year’s deals was the US$ 3.97-billion Sun Pharma-Ranbaxy deal followed by the Diageo deal where it acquired 26 per cent stake in United Spirits for US$ 3.14 billion and the Vodafone Group’s deal where it acquired 10.97 per cent stake in Vodafone India from Piramal Enterprises for a sum of US$ 1.47 billion.
Adani Ports and Special Economic Zone (APSEZ) acquiring Dhamra Port in Odisha from Tata Steel and L&T Infrastructure Development Projects (L&T IDPL) and Reliance Industries-Network 18 Media deals were some other major deals as mentioned in the report.
The report also mentioned that Citi topped the financial advisor league table by advising on five deals worth around US$ 8.2 billion, while the top position for the number of deals was clinched by EY which was a part of 13 transactions totaling around US$ 5.2 billion.
In the first quarter from January-March 2014, there were M&A transactions worth US$ 3.7 billion only while the next quarter from April-June 2014 saw deals worth US$ 13.4 billion, which accounted for 78 per cent of the total first-half deal value.
The second quarter this year was the most active quarter since the second quarter of 2012. Moreover, there was also an influx of large cap deals compared to the first quarter of this year. Diageo and Vodafone Group provided the largest deals, which resulted in impressive second quarter for inbound activities valued at around US$ 6.3 billion.
The most active sectors in the first two quarters of 2014 were the pharma, medical and biotech sectors, as they accounted for 27 per cent of market share from deals worth US$ 4.6 billion.
In spite of the fact that the industrials and chemicals sector led the industry chart in terms of number of deals, 27 in number, the deal value summed up to just around US$ 0.6 billion, which was down by 61.4 per cent over the corresponding period in the previous year.
The highlight of the first half of this year’s deals was the US$ 3.97-billion Sun Pharma-Ranbaxy deal followed by the Diageo deal where it acquired 26 per cent stake in United Spirits for US$ 3.14 billion and the Vodafone Group’s deal where it acquired 10.97 per cent stake in Vodafone India from Piramal Enterprises for a sum of US$ 1.47 billion.
Adani Ports and Special Economic Zone (APSEZ) acquiring Dhamra Port in Odisha from Tata Steel and L&T Infrastructure Development Projects (L&T IDPL) and Reliance Industries-Network 18 Media deals were some other major deals as mentioned in the report.
The report also mentioned that Citi topped the financial advisor league table by advising on five deals worth around US$ 8.2 billion, while the top position for the number of deals was clinched by EY which was a part of 13 transactions totaling around US$ 5.2 billion.
Industrial growth at 19-month high
New Delhi: Industrial production was at a 19-month high, growing 4.7 per cent in May on improved performances across sectors, including the manufacturing, mining and power sectors.
A low base also helped push up the growth figures as industrial production in May 2013 had contracted by 2.5 per cent.
The Index of Industrial Production (IIP) for the April-May period grew 4 per cent over the comparable period last year, according to data released by the Central Statistics Office on Friday.
In April-May 2013 the IIP had contracted by 0.5 per cent. Basic goods, capital goods and consumer goods also posted growth under the use-based classification of industrial performance.
“The rise in industrial production for the second month in a row provides a glimmer of hope that the economy could be bottoming out and recovery could be on the anvil,” CII Director-General Chandrajit Banerjee said.
A low base also helped push up the growth figures as industrial production in May 2013 had contracted by 2.5 per cent.
The Index of Industrial Production (IIP) for the April-May period grew 4 per cent over the comparable period last year, according to data released by the Central Statistics Office on Friday.
In April-May 2013 the IIP had contracted by 0.5 per cent. Basic goods, capital goods and consumer goods also posted growth under the use-based classification of industrial performance.
“The rise in industrial production for the second month in a row provides a glimmer of hope that the economy could be bottoming out and recovery could be on the anvil,” CII Director-General Chandrajit Banerjee said.
Essar Global arm inks pact with Teleperformance
Mumbai: AGC Holdings Ltd, a wholly-owned portfolio company of Essar Global Fund Ltd, has signed an agreement with Teleperformance to sell its outsourcing company Aegis US for $610 million. The company will sell Aegis’s presence in the US, the Philippines and Costa Rica.
It will continue to retain the remainder of the BPO business globally across India, Sri Lanka, Malaysia, Australia, South Africa, Peru, Argentina, Saudi Arabia and UK (other than in the US, the Philippines and Costa Rica).
“This transaction fits the strategic objectives of Essar Fund in the rapidly growing high quality assets and delivering value creation, in this case through a sale to a high quality strategic player in Teleperformance. This transaction will also yield many synergies and benefits for Aegis’ employees and esteemed customers,” said Uday Gujadhur, Board Member, Essar Capital, fund manager for Essar Global Fund.
The transaction is expected to close during the third quarter of 2014, subject to regulatory approvals and other customary closing conditions. The transaction is not subject to a financing condition.
Post the transaction, Aegis would have operations in 37 locations across 9 countries with more than 37,000 employees.
Aegis US has revenues of about $400 million and has more than 19,000 full-time employees across 16 centres in three countries. It serves premium clients in the US market in various key growing industries such as healthcare, financial services, travel and hospitality.
It will continue to retain the remainder of the BPO business globally across India, Sri Lanka, Malaysia, Australia, South Africa, Peru, Argentina, Saudi Arabia and UK (other than in the US, the Philippines and Costa Rica).
“This transaction fits the strategic objectives of Essar Fund in the rapidly growing high quality assets and delivering value creation, in this case through a sale to a high quality strategic player in Teleperformance. This transaction will also yield many synergies and benefits for Aegis’ employees and esteemed customers,” said Uday Gujadhur, Board Member, Essar Capital, fund manager for Essar Global Fund.
The transaction is expected to close during the third quarter of 2014, subject to regulatory approvals and other customary closing conditions. The transaction is not subject to a financing condition.
Post the transaction, Aegis would have operations in 37 locations across 9 countries with more than 37,000 employees.
Aegis US has revenues of about $400 million and has more than 19,000 full-time employees across 16 centres in three countries. It serves premium clients in the US market in various key growing industries such as healthcare, financial services, travel and hospitality.
MSMEs allocated Rs. 10,000-crore VC fund
New Delhi: Referring to Medium, Small and Micro Enterprises (MSME) as the ‘backbone’ of the economy, Finance Minister Arun Jaitley said his Government proposes to set up a Rs. 10,000-crore venture capital fund intended to be a catalyst to attract private capital. The fund will “provide equity, quasi-equity, soft loans and other risk capital for start-up companies,” he said.
Heeding the long-standing demand of the sector, Jaitley also announced that the definition of MSME would be reviewed to provide for a higher capital ceiling. At present, the ceiling for manufacturing is Rs. 25 lakh for micro enterprises, Rs. 5 crore for small units and Rs. 10 crore for medium enterprises. He said a committee which would include members of the Finance Ministry, the MSME Ministry and the Reserve Bank would be set up to examine the sector’s financial difficulties and will submit its report in three months.
“The revision of the MSME definition for high capital ceiling will enable them to get greater credit from the market, in turn helping them grow and expand,” said R Narayan, Founder and CEO, Power2SME, a B2B buying platform for such enterprises.
The Budget also proposed to offer easier exit norms. “An entrepreneur-friendly legal bankruptcy framework will also be developed for SMES to enable easy exit,” he said. A Rs. 200-crore fund was also announced to promote innovation, entrepreneurship and the agro industry, and also a country-wide district-level Incubation Accelerator Programme to support new entrepreneurial ideas. The Budget also proposed to allocate Rs. 200 crore for setting up six more mega textile clusters in Bareilly, Lucknow (Uttar Pradesh), Surat, Kutch (Gujarat), Bhagalpur (Bihar), Mysore (Karnataka) and one in Tamil Nadu.
Further, Rs. 50 crore has been provided for a Trade Facilitation Centre and a Crafts Museum in Varanasi (Uttar Pradesh) to promote handloom products. The city is known for its handwoven Banarasi silk sarees, mostly made by Muslimweavers who are now struggling to survive after the entry of cheap Chinese imitations.
Heeding the long-standing demand of the sector, Jaitley also announced that the definition of MSME would be reviewed to provide for a higher capital ceiling. At present, the ceiling for manufacturing is Rs. 25 lakh for micro enterprises, Rs. 5 crore for small units and Rs. 10 crore for medium enterprises. He said a committee which would include members of the Finance Ministry, the MSME Ministry and the Reserve Bank would be set up to examine the sector’s financial difficulties and will submit its report in three months.
“The revision of the MSME definition for high capital ceiling will enable them to get greater credit from the market, in turn helping them grow and expand,” said R Narayan, Founder and CEO, Power2SME, a B2B buying platform for such enterprises.
The Budget also proposed to offer easier exit norms. “An entrepreneur-friendly legal bankruptcy framework will also be developed for SMES to enable easy exit,” he said. A Rs. 200-crore fund was also announced to promote innovation, entrepreneurship and the agro industry, and also a country-wide district-level Incubation Accelerator Programme to support new entrepreneurial ideas. The Budget also proposed to allocate Rs. 200 crore for setting up six more mega textile clusters in Bareilly, Lucknow (Uttar Pradesh), Surat, Kutch (Gujarat), Bhagalpur (Bihar), Mysore (Karnataka) and one in Tamil Nadu.
Further, Rs. 50 crore has been provided for a Trade Facilitation Centre and a Crafts Museum in Varanasi (Uttar Pradesh) to promote handloom products. The city is known for its handwoven Banarasi silk sarees, mostly made by Muslimweavers who are now struggling to survive after the entry of cheap Chinese imitations.
Budget 2014: FM Arun Jaitley proposes 16 new port projects
Mumbai: Finance Minister Arun Jaitley, in its first budget after BJP's victory in May, said India will get 16 new port projects this year, with a focus on their connectivity to the hinterland.
India currently has 13 major ports. Jaitley also reiterated previous government's plan to spend Rs 11,635 crore to develop the phase one of the outer harbour project in VO Chidambaranar Port Trust at Tuticorin.
The FM also said special economic zones will be developed along the existing major ports, Kandla in Gujarat and Jawaharlal Nehru Port Trust in Mumbai.
He said a comprehensive policy will also be announced to promote the struggling shipbuilding industry in India this financial year.
He said India will also develop an inland waterway system in river Ganga from Allahabad in Uttar Pradesh to Haldia in West Bengal, which will be build over the next 6 years at an estimated cost of Rs 4,200 crore.
India currently has 13 major ports. Jaitley also reiterated previous government's plan to spend Rs 11,635 crore to develop the phase one of the outer harbour project in VO Chidambaranar Port Trust at Tuticorin.
The FM also said special economic zones will be developed along the existing major ports, Kandla in Gujarat and Jawaharlal Nehru Port Trust in Mumbai.
He said a comprehensive policy will also be announced to promote the struggling shipbuilding industry in India this financial year.
He said India will also develop an inland waterway system in river Ganga from Allahabad in Uttar Pradesh to Haldia in West Bengal, which will be build over the next 6 years at an estimated cost of Rs 4,200 crore.
FDI cap in insurance raised to 49%
New Delhi: The insurance sector finally had its moment in the sun after the Budget increased the FDI limit in insurance to 49 per cent. After the insurance sector opened up in 2000, both life and general insurance businesses have gone though a series of regulatory changes. Until recently, only few insurance players were profitable.
Also, the lack of valuation benchmarks in the listed space has kept investor interest tepid. But now, many players, both in the life and general insurance space, have turned around and are profitable.
Capital-intensive
With a possible recovery in the economy, and structural changes done with, insurance players are likely to get a leg-up.
The much-awaited increase in the FDI limit in insurance to 49 per cent will help the insurance industry in two ways. One, this help companies access capital more easily, which is huge positive, given that the insurance sector is capital intensive.
Two, this could act as a trigger for listing of insurance players, which will provide a better yardstick to value these companies.
For many conglomerates in the financial services space, their insurance subsidiaries are still undervalued, in spite of accounting for a substantial portion of their earnings.
Valuations
Companies such as Max India, Reliance Capital, Bajaj Finserv and Sundaram Finance will see substantial value unlocking.
For instance, more than 75 per cent of Max India’s value (sum-of-the-parts) valuation comes from the life insurance business. For Bajaj Finserv, 44 per cent of its value comes from the life insurance business and 28 per cent form the general insurance business.
For Reliance Capital, 35 per cen
Also, the lack of valuation benchmarks in the listed space has kept investor interest tepid. But now, many players, both in the life and general insurance space, have turned around and are profitable.
Capital-intensive
With a possible recovery in the economy, and structural changes done with, insurance players are likely to get a leg-up.
The much-awaited increase in the FDI limit in insurance to 49 per cent will help the insurance industry in two ways. One, this help companies access capital more easily, which is huge positive, given that the insurance sector is capital intensive.
Two, this could act as a trigger for listing of insurance players, which will provide a better yardstick to value these companies.
For many conglomerates in the financial services space, their insurance subsidiaries are still undervalued, in spite of accounting for a substantial portion of their earnings.
Valuations
Companies such as Max India, Reliance Capital, Bajaj Finserv and Sundaram Finance will see substantial value unlocking.
For instance, more than 75 per cent of Max India’s value (sum-of-the-parts) valuation comes from the life insurance business. For Bajaj Finserv, 44 per cent of its value comes from the life insurance business and 28 per cent form the general insurance business.
For Reliance Capital, 35 per cen
Five new IITs and five new IIMS will be set up in the states
New Delhi: The Government has announced to set-up five more IITs in the Jammu & Kashmir, Chattisgrah, Goa, Andhra Pradesh and Kerala. Similarly, five new IIMs will be set-up in the States of Himachal Pradesh, Punjab, Bihar, Odisha and Maharashtra. For this, a sum of Rs. 500 crore has been allocated in the Budget. Presenting his Maiden Budget in Parliament here today, the Union Finance Minister Shri Arun Jaitley said that the country needs a large number of Centres of higher learning which are world class and accordingly declare to set-up Jai Prakash Narayan National Centre for Excellence in humanities in Madhya Pradesh.
Shri Jaitley announced “Pandit Madan Mohan Malviya New Teachers Training Programme” to infuse new training tools and motivate teachers with an initial corpus of Rs.500 crore. He said that for Sarva Shiksha Abhiyan a provision of Rs. 28, 635 crore has been made while for Rashtriya Madhyamik Shiksha Abhiyan Rs. 4,966 crores have been allocated. The Government will also strive to provide toilets and drinking water in all the girls school in first phase, the Minister added.
To take advantage of the reach of the IT, the Finance Minister allocated a sum of Rs. 100 crore for setting up virtual classrooms as Communication Linked Interface for Cultivating Knowledge (CLICK) and online courses.
Shri Jaitley announced “Pandit Madan Mohan Malviya New Teachers Training Programme” to infuse new training tools and motivate teachers with an initial corpus of Rs.500 crore. He said that for Sarva Shiksha Abhiyan a provision of Rs. 28, 635 crore has been made while for Rashtriya Madhyamik Shiksha Abhiyan Rs. 4,966 crores have been allocated. The Government will also strive to provide toilets and drinking water in all the girls school in first phase, the Minister added.
To take advantage of the reach of the IT, the Finance Minister allocated a sum of Rs. 100 crore for setting up virtual classrooms as Communication Linked Interface for Cultivating Knowledge (CLICK) and online courses.
Saturday, July 12, 2014
Blackstone lines up Rs 1,000 crore for residential realty
Mumbai: Blackstone, one of the largest investors in commercial properties, is set to step up presence in the residential segment, said a top executive in the know. According to him, who spoke on the condition of anonymity, the US private equity (PE) giant is gearing up to invest about Rs 1,000 crore in residential projects across Indian metros. The company is currently in advanced discussions with many developers, the executive revealed.
Recently, the New York- based fund invested Rs 175 crore in the Chennai project of Bangalore-based Ozone Group, its first investment in the residential sector.
Blackstone, which has invested about $1 billion in commercial properties in India, has so far stayed away from directly investing in residential properties. However, it had exposure to residential real estate by the virtue of taking over the $2.68-billion Asian Real Estate Opportunities Fund of Bank of America-Merrill Lynch (BofA-ML) in 2010. The most high-profile one in BofA Merrill Lynch's India portfolio being its $377-million (Rs 1,800 crore) investment in DLF's housing projects. It picked up 49 per cent stake in seven mid-income housing projects of DLF, the country's largest property company, in Chennai, Bangalore, Kochi and Indore.
Its US peers such as Morgan Stanley, The Carlyle Group and others have entity-level stakes in some of the large realty companies. For instance, Morgan Stanley has entity-level stake in Mumbai-based Oberoi Realty. Carlyle has stake in the Jerry Rao-promoted Value & Budget Housing Corporation.
The timing of Blackstone's investment in residential properties bodes well for the investor, since residential enquiries have picked up in many markets such as the National Capital Region and the Mumbai Metropolitan Region after the new government came to power and buyer sentiments have revived, consultants said.
"This is just an opportunistic investment. We did not get good opportunities in the past. Internationally, we invest in all asset classes abroad," said another executive associated with the PE firm.
An email questionnaire to Blackstone did not elicit any response.
Blackstone is a careful player, says Ambar Maheshwari, managing director, corporate finance at Jones Lang LaSalle (JLL). "They (Blackstone) did not invest when the prices were very high, Then, slowdown happened and prices crashed. If they are looking at residential, I think they are very serious about it." He added Blackstone would look at India-dedicated funds given their portfolio of assets.
Recently, the New York- based fund invested Rs 175 crore in the Chennai project of Bangalore-based Ozone Group, its first investment in the residential sector.
Blackstone, which has invested about $1 billion in commercial properties in India, has so far stayed away from directly investing in residential properties. However, it had exposure to residential real estate by the virtue of taking over the $2.68-billion Asian Real Estate Opportunities Fund of Bank of America-Merrill Lynch (BofA-ML) in 2010. The most high-profile one in BofA Merrill Lynch's India portfolio being its $377-million (Rs 1,800 crore) investment in DLF's housing projects. It picked up 49 per cent stake in seven mid-income housing projects of DLF, the country's largest property company, in Chennai, Bangalore, Kochi and Indore.
Its US peers such as Morgan Stanley, The Carlyle Group and others have entity-level stakes in some of the large realty companies. For instance, Morgan Stanley has entity-level stake in Mumbai-based Oberoi Realty. Carlyle has stake in the Jerry Rao-promoted Value & Budget Housing Corporation.
The timing of Blackstone's investment in residential properties bodes well for the investor, since residential enquiries have picked up in many markets such as the National Capital Region and the Mumbai Metropolitan Region after the new government came to power and buyer sentiments have revived, consultants said.
"This is just an opportunistic investment. We did not get good opportunities in the past. Internationally, we invest in all asset classes abroad," said another executive associated with the PE firm.
An email questionnaire to Blackstone did not elicit any response.
Blackstone is a careful player, says Ambar Maheshwari, managing director, corporate finance at Jones Lang LaSalle (JLL). "They (Blackstone) did not invest when the prices were very high, Then, slowdown happened and prices crashed. If they are looking at residential, I think they are very serious about it." He added Blackstone would look at India-dedicated funds given their portfolio of assets.
India gets more back-packer tourists
New Delhi: India appears to be getting back packers but not high spending tourists, says the Economic Survey. “While foreign exchange earnings (FEE) in rupee terms are a reflection of the exchange rate movements, what is cause for concern is the steep deceleration in FEEs in dollar terms, while the deceleration in tourist arrivals was less. This indicates a higher inflow of back-packers vis-à-vis high-spending tourists,” says the Survey. Foreign tourist arrivals grew 5.9 per cent in 2013 over the previous fiscal, but forex earnings in dollar terms were up 2.2 per cent during the period.
Passenger car sales jump 15% in June
New Delhi: Improved sentiment and speculative purchases towards the second week of last month have fuelled the sales of passenger cars in India, the Society of Indian Automobile Manufacturers (SIAM) said on Wednesday.
Total passenger car sales grew 15 per cent to 1.60 lakh units in June this year compared with around 1.4 lakh units in June 2013, the SIAM report said.
“This was the highest-ever June sales and we hope the trend of double-digit growth going forward,” Vishnu Mathur, Director General, SIAM, told reporters here.
Excise duty cuts
He said because of the speculation that the Government might not continue with the excise duty cuts on cars in early June, companies saw increased footfalls at the showrooms, which turned into better sales too.
Total passenger vehicles sales also grew 11 per cent to 2.19 lakh units during last month against 1.97 lakh units in the corresponding month previous year.
2-wheelers, commercial vehicles
Total two-wheelers segment also grew 13 per cent to 12.61 lakh units from 11.16 lakh units in June 2013.
However, total commercial vehicle sales are still in negative (-9 per cent) zone year-on-year at 51,119 units during June against 56,194 units in June 2013.
Overall, the grand total of all vehicles sold during June grew 12 per cent to 15.78 lakh units against 14.07 lakh units in the corresponding month last year.
Total passenger car sales grew 15 per cent to 1.60 lakh units in June this year compared with around 1.4 lakh units in June 2013, the SIAM report said.
“This was the highest-ever June sales and we hope the trend of double-digit growth going forward,” Vishnu Mathur, Director General, SIAM, told reporters here.
Excise duty cuts
He said because of the speculation that the Government might not continue with the excise duty cuts on cars in early June, companies saw increased footfalls at the showrooms, which turned into better sales too.
Total passenger vehicles sales also grew 11 per cent to 2.19 lakh units during last month against 1.97 lakh units in the corresponding month previous year.
2-wheelers, commercial vehicles
Total two-wheelers segment also grew 13 per cent to 12.61 lakh units from 11.16 lakh units in June 2013.
However, total commercial vehicle sales are still in negative (-9 per cent) zone year-on-year at 51,119 units during June against 56,194 units in June 2013.
Overall, the grand total of all vehicles sold during June grew 12 per cent to 15.78 lakh units against 14.07 lakh units in the corresponding month last year.
Indo-Israel free trade pact likely by year-end
Hyderabad: The Indo-Israel Free Trade Agreement may be concluded by the year end, paving the way for deeper engagement between the two countries, according to a senior Israeli diplomat.
“It should have been signed by the end of last year, but it got delayed. I am expecting that it will be finalised by this year end,” Avi Friedman, Consul for Trade and Economic Affairs, Head of Trade Section, Consulate General of Israel, said.
This agreement could significantly increase bi-lateral trade, currently at $4.5 billion, excluding the defence sector, he told Business Line . Friedman identified the cyber sector as a new potential area for greater cooperation, especially in the context of preventing cyber attacks.
“India is a victim of cyber attacks in the power and oil and gas sectors. Even Israel is faced with cyber attacks (hacking of key installations),” he said.
A Frost and Sullivan report says the cyber defence market for oil and gas industries alone may reach $3.75 billion globally by 2021. Russian security firm Kaspersky pointed that India follows Russia in the number of cyber attacks faced, with UK, Ukraine and Vietnam being other victims.
“It should have been signed by the end of last year, but it got delayed. I am expecting that it will be finalised by this year end,” Avi Friedman, Consul for Trade and Economic Affairs, Head of Trade Section, Consulate General of Israel, said.
This agreement could significantly increase bi-lateral trade, currently at $4.5 billion, excluding the defence sector, he told Business Line . Friedman identified the cyber sector as a new potential area for greater cooperation, especially in the context of preventing cyber attacks.
“India is a victim of cyber attacks in the power and oil and gas sectors. Even Israel is faced with cyber attacks (hacking of key installations),” he said.
A Frost and Sullivan report says the cyber defence market for oil and gas industries alone may reach $3.75 billion globally by 2021. Russian security firm Kaspersky pointed that India follows Russia in the number of cyber attacks faced, with UK, Ukraine and Vietnam being other victims.
India has the Second Fastest Growing Services Sector with Compound Annual Growth Rate at 9 Per Cent
New Delhi: India has the second fastest growing services sector with its Compound Annual Growth Rate at 9.0 per cent, just below China’s 10.9 per cent, during 2001 to 2012. Also, India ranked 12th in terms of services Gross Domestic Product (GDP) in 2012 among the world’s top 15 countries in terms of GDP. While services share in World GDP was 65.9 per cent and in employment was only 44 per cent in 2012, in India, they were 56.9 per cent and 28.1 per cent respectively.
GDP
Services constitute a 57 per cent share in GDP at factor cost (at current prices) in 2013-14, an increase of 6 percentage points over 2000-01. Despite deceleration, services GDP growth at 6.8 per cent was above the 4.7 per cent overall GDP in 2013-14. The growth rate of the combined category of trade, hotels, restaurants, transport, storage, and communications decelerated to 3.0 per cent while financing, insurance, real estate, and business services grew robustly at 12.9 per cent.
FDI
In 2013-14, FDI inflows to the services sector (top five sectors including construction) declined sharply by 37.6 per cent to US$ 6.4 billion compared to an overall growth in FDI inflows at 6.1 per cent resulting in the share of the top five services in total FDI falling to nearly one-sixth.
Exports
India’s increase in share in world services exports from 0.6 per cent in 1990 to 3.3 per cent in 2013 was faster than in merchandise exports. Exports of software services, accounting for 46 per cent of India’s total services exports, decelerated to 5.4 per cent in 2013-14, travel, accounting for a nearly 12 per cent share, witnessed negative growth of 0.4 per cent.
GDP
Services constitute a 57 per cent share in GDP at factor cost (at current prices) in 2013-14, an increase of 6 percentage points over 2000-01. Despite deceleration, services GDP growth at 6.8 per cent was above the 4.7 per cent overall GDP in 2013-14. The growth rate of the combined category of trade, hotels, restaurants, transport, storage, and communications decelerated to 3.0 per cent while financing, insurance, real estate, and business services grew robustly at 12.9 per cent.
FDI
In 2013-14, FDI inflows to the services sector (top five sectors including construction) declined sharply by 37.6 per cent to US$ 6.4 billion compared to an overall growth in FDI inflows at 6.1 per cent resulting in the share of the top five services in total FDI falling to nearly one-sixth.
Exports
India’s increase in share in world services exports from 0.6 per cent in 1990 to 3.3 per cent in 2013 was faster than in merchandise exports. Exports of software services, accounting for 46 per cent of India’s total services exports, decelerated to 5.4 per cent in 2013-14, travel, accounting for a nearly 12 per cent share, witnessed negative growth of 0.4 per cent.
Argentina-based luxury brand La Martina opens store in Delhi
Mumbai: Argentina-based luxury brand La Martina, a polo lifestyle company known for its apparel, technical equipment and accessories, has started operations with its maiden store in Delhi.
The 1,800 sq ft standalone store was opened at luxury mall DLF Emporio.
Eliana Koulas, Director of Luxus Retail, the Indian franchisee for La Martina, said La Martina has a strong association with vacations and leisure.”
La Martina has also diversified the brand to add general fashion products for ladies, men and kids. The apparel and accessories are priced between Rs 8,900 and Rs 66,800.
La Martina has offices in North and South America, Switzerland and the UK.
The 1,800 sq ft standalone store was opened at luxury mall DLF Emporio.
Eliana Koulas, Director of Luxus Retail, the Indian franchisee for La Martina, said La Martina has a strong association with vacations and leisure.”
La Martina has also diversified the brand to add general fashion products for ladies, men and kids. The apparel and accessories are priced between Rs 8,900 and Rs 66,800.
La Martina has offices in North and South America, Switzerland and the UK.
Glenmark gets USFDA nod to launch anti-hypertension drug in US
Mumbai: Glenmark Generics Inc, USA, a subsidiary of Glenmark Generics, has been granted final abbreviated new drug approval (ANDA) from the United States Food and Drug Administration (US FDA) for Telmisartan tablets, indicated for the treatment of hypertension. Glenmark is to commence distribution of the product immediately.
Telmisartan tablets are Glenmark’s generic version of Boehringer Ingelheim’s Micardis. The approval is for the 20 mg, 40 mg and 80 mg tablets. For the 12-month period ended March 31, 2014, Telmisartan garnered annual sales of $250 million, according to IMS Health.
Glenmark’s current portfolio consists of 92 products authorised for distribution in the US market and 73 ANDAs pending approval with the USFDA. In addition to these internal filings, the company continues to identify and explore external development partnerships to supplement and accelerate the growth of the existing pipeline and portfolio.
Shares of Glenmark Pharmaceuticals were trading at Rs 595.60 per scrip in the mid-day trade, up 1.09 per cent from the previous close on the BSE.
Telmisartan tablets are Glenmark’s generic version of Boehringer Ingelheim’s Micardis. The approval is for the 20 mg, 40 mg and 80 mg tablets. For the 12-month period ended March 31, 2014, Telmisartan garnered annual sales of $250 million, according to IMS Health.
Glenmark’s current portfolio consists of 92 products authorised for distribution in the US market and 73 ANDAs pending approval with the USFDA. In addition to these internal filings, the company continues to identify and explore external development partnerships to supplement and accelerate the growth of the existing pipeline and portfolio.
Shares of Glenmark Pharmaceuticals were trading at Rs 595.60 per scrip in the mid-day trade, up 1.09 per cent from the previous close on the BSE.
Rail Budget 2014: 58 new trains to be introduced, 11 existing trains to be extended
New Delhi: Proposing to introduce new 58 new trains, Railway Minister DV Sadananda Gowda on Tuesday said that these will include five Jansadharan Trains, five Premium Trains, six AC express trains, 27 express trains, eight passenger trains, two MEMU services and five DEMU services this year.
Announcing this in Parliament while presenting the rail budget, Gowda also proposed to extend the run of 11 existing trains. Gowda said these services would be meeting the demand surges which manifest themselves on special occasions.
He said that special trains would continue to run to meet the holiday and festival rush including services for Melmaruvathur, Velankanni, Jhalawar etc. Here is the list of new trains that have been announced in the Railway Budget:
NEW TRAINS
Jansadharan Trains
Ahmedabad-Darbhanga Jansadharan Express via Surat
Jaynagar-Mumbai Jansadharan Express
Mumbai-Gorakhpur Jansadharan Express
Saharasa-Anand Vihar Jansadharan Express via Motihari
Saharasa-Amritsar Jansadharan Express
Premium Trains
Mumbai Central-New Delhi Premium AC Express
Shalimar-Chennai Premium AC Express
Secunderabad-- Hazrat Nizamuddin Premium AC Express
Jaipur-Madurai Premium Express
Kamakhya-Bengaluru Premium Express
AC Express Trains
Vijayawada-NewDelhiAPExpress(Daily)
LokmanyaTilak(T)-Lucknow(Weekly)
Nagpur-Pune(Weekly)
Nagpur-Amritsar(Weekly)
Naharlagun-NewDelhi(Weekly)
Nizamuddin-Pune(Weekly)
Express Trains
Ahmedabad-Patna Express(Weekly)via Varanasi
Ahmedabad- Chennai Express(Bi-weekly)via Vasai Road
Bengaluru -Mangalore Express(Daily)
Bengaluru -Shimoga Express(Bi-weekly)
Bandra(T)-Jaipur Express(Weekly)Via Nagda,Kota
Bidar-Mumbai Express(Weekly)
Chhapra-Lucknow Express (Tri- weekly)viaBallia,Ghazipur,Varanasi
Ferozpur-Chandigarh Express(6 days a week)
Guwahati-Naharlagun Intercity Express(Daily)
Guwahati-Murkongselek Intercity Express(Daily)
Gorakhpur-Anand Vihar Express(Weekly)
Hapa-Bilaspur Express(Weekly)via Nagpur
Hazur Saheb Nanded-Bikaner Express(Weekly)
Indore-Jammu Tawi Express(Weekly)
Kamakhya-Katra Express(Weekly)via Darbhanga
Kanpur-Jammu Tawi Express(Bi-weekly)
Lokmanya Tilak(T)-Azamgarh Express(Weekly)
Mumbai_Kazipeth Express(Weekly)via Balharshah
Mumbai-Palitana Express(Weekly)
New Delhi -Bhatinda Shatabdi Express(Bi-weekly)
New Delhi-Varanasi Express(Daily)
Paradeep-Howrah Express(Weekly)
Paradeep-Visakhapatnam Express(Weekly)
Rajkot-Rewa Express(Weekly)
Ramnagar-Agra Express(Weekly)
Tatanagar Baiyyappanahali (Bengaluru) Express(Weekly)
Visakhapatnam-Chennai Express(Weekly)
Passenger Trains
Bikaner-Rewari Passenger(Daily)
Dharwad-Dandeli Passenger(Daily)via Alnavar
Gorakhpur-Nautanwa Passenger(Daily)
Guwahati-Mendipathar Passenger(Daily)
Hatia-Rourkela Passenger
Byndoor-Kasaragod Passenger(Daily)
Rangapara North-Rangiya Passenger(Daily)
Yesvantpur-Tumkur Passenger(Daily)
MEMU services
Bengaluru -Ramanagaram 6 days a week(3Pairs)
Palwal-Delhi-Aligarh
DEMU services
Bengaluru -Neelmangala (Daily)
Chhapra-Manduadih (6days a week)via Ballia
Baramula-Banihal (Daily)
Sambalpur-Rourkela (6 days a week)
Yesvantpur -Hosur (6 days a week)
EXTENSION OF RUN OF EXISTING TRAINS
22409/22410 Anand Vihar Sasaram Garib Rath Express to Gaya
12455/12456 Delhi Sarai Rohilla Sriganganagar Express to Bikaner
15231/15232 Gondia Muzaffarpur Express to Barauni
12001/12002 New Delhi Bhopal Shatabdi Express to Habibganj
54602 Ludhiana-Hissar Passenger to Sadulpur
55007/55008 Sonpur-Kaptanganj Passenger to Gorakhpur
55072/55073 Gorakhpur-Thawe Passenger to Siwan
63237/63238Buxar-Mughalsarai MEMU to Varanasi
63208/63211 Jhajha-Patna MEMU to Jasidih
64221/64222 Lucknow Hardoi MEMU to Shahjahanpur
68002/68007 Howrah-Belda MEMU to Jaleswar
Announcing this in Parliament while presenting the rail budget, Gowda also proposed to extend the run of 11 existing trains. Gowda said these services would be meeting the demand surges which manifest themselves on special occasions.
He said that special trains would continue to run to meet the holiday and festival rush including services for Melmaruvathur, Velankanni, Jhalawar etc. Here is the list of new trains that have been announced in the Railway Budget:
NEW TRAINS
Jansadharan Trains
Ahmedabad-Darbhanga Jansadharan Express via Surat
Jaynagar-Mumbai Jansadharan Express
Mumbai-Gorakhpur Jansadharan Express
Saharasa-Anand Vihar Jansadharan Express via Motihari
Saharasa-Amritsar Jansadharan Express
Premium Trains
Mumbai Central-New Delhi Premium AC Express
Shalimar-Chennai Premium AC Express
Secunderabad-- Hazrat Nizamuddin Premium AC Express
Jaipur-Madurai Premium Express
Kamakhya-Bengaluru Premium Express
AC Express Trains
Vijayawada-NewDelhiAPExpress(Daily)
LokmanyaTilak(T)-Lucknow(Weekly)
Nagpur-Pune(Weekly)
Nagpur-Amritsar(Weekly)
Naharlagun-NewDelhi(Weekly)
Nizamuddin-Pune(Weekly)
Express Trains
Ahmedabad-Patna Express(Weekly)via Varanasi
Ahmedabad- Chennai Express(Bi-weekly)via Vasai Road
Bengaluru -Mangalore Express(Daily)
Bengaluru -Shimoga Express(Bi-weekly)
Bandra(T)-Jaipur Express(Weekly)Via Nagda,Kota
Bidar-Mumbai Express(Weekly)
Chhapra-Lucknow Express (Tri- weekly)viaBallia,Ghazipur,Varanasi
Ferozpur-Chandigarh Express(6 days a week)
Guwahati-Naharlagun Intercity Express(Daily)
Guwahati-Murkongselek Intercity Express(Daily)
Gorakhpur-Anand Vihar Express(Weekly)
Hapa-Bilaspur Express(Weekly)via Nagpur
Hazur Saheb Nanded-Bikaner Express(Weekly)
Indore-Jammu Tawi Express(Weekly)
Kamakhya-Katra Express(Weekly)via Darbhanga
Kanpur-Jammu Tawi Express(Bi-weekly)
Lokmanya Tilak(T)-Azamgarh Express(Weekly)
Mumbai_Kazipeth Express(Weekly)via Balharshah
Mumbai-Palitana Express(Weekly)
New Delhi -Bhatinda Shatabdi Express(Bi-weekly)
New Delhi-Varanasi Express(Daily)
Paradeep-Howrah Express(Weekly)
Paradeep-Visakhapatnam Express(Weekly)
Rajkot-Rewa Express(Weekly)
Ramnagar-Agra Express(Weekly)
Tatanagar Baiyyappanahali (Bengaluru) Express(Weekly)
Visakhapatnam-Chennai Express(Weekly)
Passenger Trains
Bikaner-Rewari Passenger(Daily)
Dharwad-Dandeli Passenger(Daily)via Alnavar
Gorakhpur-Nautanwa Passenger(Daily)
Guwahati-Mendipathar Passenger(Daily)
Hatia-Rourkela Passenger
Byndoor-Kasaragod Passenger(Daily)
Rangapara North-Rangiya Passenger(Daily)
Yesvantpur-Tumkur Passenger(Daily)
MEMU services
Bengaluru -Ramanagaram 6 days a week(3Pairs)
Palwal-Delhi-Aligarh
DEMU services
Bengaluru -Neelmangala (Daily)
Chhapra-Manduadih (6days a week)via Ballia
Baramula-Banihal (Daily)
Sambalpur-Rourkela (6 days a week)
Yesvantpur -Hosur (6 days a week)
EXTENSION OF RUN OF EXISTING TRAINS
22409/22410 Anand Vihar Sasaram Garib Rath Express to Gaya
12455/12456 Delhi Sarai Rohilla Sriganganagar Express to Bikaner
15231/15232 Gondia Muzaffarpur Express to Barauni
12001/12002 New Delhi Bhopal Shatabdi Express to Habibganj
54602 Ludhiana-Hissar Passenger to Sadulpur
55007/55008 Sonpur-Kaptanganj Passenger to Gorakhpur
55072/55073 Gorakhpur-Thawe Passenger to Siwan
63237/63238Buxar-Mughalsarai MEMU to Varanasi
63208/63211 Jhajha-Patna MEMU to Jasidih
64221/64222 Lucknow Hardoi MEMU to Shahjahanpur
68002/68007 Howrah-Belda MEMU to Jaleswar
Ministry lays special emphasis on education
Mumbai: The ministry of railways has taken some initiatives to help its staff continue their education and to encourage the spirit of innovation.
“The railways proposes to set up an Innovations Incubation Centre to harness the ideas generated from the staff and convert them into practical solutions to increase efficiency of the railways,” said minister Sadananda Gowda.
This is akin to the concept of incubation centres in engineering and management schools, where students’ business and project ideas are mentored by professors and visiting industry officials, to determine viability and ability to be transformed into a successful venture.
“The railways’ workforce, due to its sheer number, is a gold-mine of ideas. If there is a professional platform to analyse their ideas and convert them into solutions, it could lead to newer innovations in our railway systems. However, there should be a proper mix of internal and external mentors to harness their ideas,” said the head of the entrepreneurship and incubation cell at an Indian Institute of Technology. Further, Gowda said these innovations, which result in cost saving and revenue generation, will be rewarded.
As part of this exercise, it is also proposed to set up summer internships for the undergraduates of engineering and management studies. Students can intern at any of the various units of the railways - division, railway public-sector units and production units. The Indian Railways is one of the largest employers in India with more than 1.36 million employees selected through a competitive examination.
According to placement officials of business schools, it would be an enriching experience for students to intern with the Railways.
“Although we don’t know how many students would be given an opportunity to intern, this will be a hands-on experience in a very large enterprise and would reflect highly in the student's curriculum vitae in the future," said the chief placement officer of a Mumbai-based business school.
Some placement heads, however, added that students from the top three to five management schools, which are particularly focused on the job-role and pay package, may not be comfortable in a government functioning since it is not explicitly stated whether these students would be given a stipend. However, the dean of a private engineering institute in West Bengal said students in the instrumentation and mechanical fields would find these internships extremely useful from a practical knowledge perspective.
The minister has said that railways is also contemplating on setting up a Railway University for both technical and non-technical subjects. “Indian Railways will tie up with technical institutions for introducing railway-oriented subject for graduation and skill development,” he said. Officials close to the development said the university would provide degree programmes starting this year. Currently, there are several institutes floated by the railway ministry that provide diploma courses.
Staff at the ground level will be sent for short-duration courses of technical and non-technical nature, involving locally-available technical institutions. The exposure for specialised areas such as high-speed, heavy haul operations etc will be undertaken for all level of staff and officers at appropriate institutes in India and abroad.
The ministry has institutes like Indian Railways Institute of Electrical Engineering, Indian Railways Institute of Civil Engineering, and National Academy of Indian Railways for training its officials. The Institute of Rail Transport offers diploma programmes to railway and non-railway professionals in the areas of transport economics and management, logistics management, and rail transport and management.
“The railways proposes to set up an Innovations Incubation Centre to harness the ideas generated from the staff and convert them into practical solutions to increase efficiency of the railways,” said minister Sadananda Gowda.
This is akin to the concept of incubation centres in engineering and management schools, where students’ business and project ideas are mentored by professors and visiting industry officials, to determine viability and ability to be transformed into a successful venture.
“The railways’ workforce, due to its sheer number, is a gold-mine of ideas. If there is a professional platform to analyse their ideas and convert them into solutions, it could lead to newer innovations in our railway systems. However, there should be a proper mix of internal and external mentors to harness their ideas,” said the head of the entrepreneurship and incubation cell at an Indian Institute of Technology. Further, Gowda said these innovations, which result in cost saving and revenue generation, will be rewarded.
As part of this exercise, it is also proposed to set up summer internships for the undergraduates of engineering and management studies. Students can intern at any of the various units of the railways - division, railway public-sector units and production units. The Indian Railways is one of the largest employers in India with more than 1.36 million employees selected through a competitive examination.
According to placement officials of business schools, it would be an enriching experience for students to intern with the Railways.
“Although we don’t know how many students would be given an opportunity to intern, this will be a hands-on experience in a very large enterprise and would reflect highly in the student's curriculum vitae in the future," said the chief placement officer of a Mumbai-based business school.
Some placement heads, however, added that students from the top three to five management schools, which are particularly focused on the job-role and pay package, may not be comfortable in a government functioning since it is not explicitly stated whether these students would be given a stipend. However, the dean of a private engineering institute in West Bengal said students in the instrumentation and mechanical fields would find these internships extremely useful from a practical knowledge perspective.
The minister has said that railways is also contemplating on setting up a Railway University for both technical and non-technical subjects. “Indian Railways will tie up with technical institutions for introducing railway-oriented subject for graduation and skill development,” he said. Officials close to the development said the university would provide degree programmes starting this year. Currently, there are several institutes floated by the railway ministry that provide diploma courses.
Staff at the ground level will be sent for short-duration courses of technical and non-technical nature, involving locally-available technical institutions. The exposure for specialised areas such as high-speed, heavy haul operations etc will be undertaken for all level of staff and officers at appropriate institutes in India and abroad.
The ministry has institutes like Indian Railways Institute of Electrical Engineering, Indian Railways Institute of Civil Engineering, and National Academy of Indian Railways for training its officials. The Institute of Rail Transport offers diploma programmes to railway and non-railway professionals in the areas of transport economics and management, logistics management, and rail transport and management.
India, UK to set up Financial Partnership in three months
New Delhi: India and the UK have agreed to launch a UK-India Financial Partnership that will aim to promote closer ties between Mumbai and London as financial centres.
The strategic partnership — to be supported by both the Governments and the respective financial services industries — will be set up over the next three months, according to a joint statement issued by Finance Minister Arun Jaitley and UK Chancellor of the Exchequer George Osborne.
This followed the seventh round of UK-India Economic and Financial Dialogue held here on Tuesday.
In the first year, the deal will cover the following work-streams: collaboration to develop the Indian corporate bond market; mutual sharing of expertise on banking regulation and capitalisation; enhancing financial training and qualification; financial inclusion; (v) and developing a programme around the opportunities to improve cross-border provision of financial and insurance services.
The strategic partnership — to be supported by both the Governments and the respective financial services industries — will be set up over the next three months, according to a joint statement issued by Finance Minister Arun Jaitley and UK Chancellor of the Exchequer George Osborne.
This followed the seventh round of UK-India Economic and Financial Dialogue held here on Tuesday.
In the first year, the deal will cover the following work-streams: collaboration to develop the Indian corporate bond market; mutual sharing of expertise on banking regulation and capitalisation; enhancing financial training and qualification; financial inclusion; (v) and developing a programme around the opportunities to improve cross-border provision of financial and insurance services.
Friday, July 4, 2014
Venture capital investments surge; reflects optimism about India's entrepreneurial ecosystem
Mumbai: Venture capital (VC) investments surged during the first half of 2014, reflecting optimism about India's entrepreneurial ecosystem and the potential of the country's market.
According to data from audit and advisory firm E&Y, investments in early-stage companies and startups rose nearly 40% to 121 deals with the transaction value jumping 66% to $605 million (Rs 3,630 crore), compared with the same period in 2013.
Venture capital investments are at their highest level for the first half since 2010, when $663 million (Rs 3,978 crore) was invested across 51 deals.
"The 15 years I have been involved in India, this is the most healthy venture ecosystem I have ever seen," said Avnish Bajaj of Matrix Partners India, who founded e-commerce venture Baazee in 2000 before becoming a VC in 2006.
He said that factors like a deep consumer market, hungry entrepreneurs and different business models are providing an interesting market for risk capital firms. VC investments in 2014 so far are close to overtaking the entire amount deployed in 2013, when $630 million (Rs 3,780 crore) was ploughed in across 179 deals.
VC investments had reached a high in 2011 when $1.3 billion (Rs 7,800 crore) was invested in 159 deals
According to data from audit and advisory firm E&Y, investments in early-stage companies and startups rose nearly 40% to 121 deals with the transaction value jumping 66% to $605 million (Rs 3,630 crore), compared with the same period in 2013.
Venture capital investments are at their highest level for the first half since 2010, when $663 million (Rs 3,978 crore) was invested across 51 deals.
"The 15 years I have been involved in India, this is the most healthy venture ecosystem I have ever seen," said Avnish Bajaj of Matrix Partners India, who founded e-commerce venture Baazee in 2000 before becoming a VC in 2006.
He said that factors like a deep consumer market, hungry entrepreneurs and different business models are providing an interesting market for risk capital firms. VC investments in 2014 so far are close to overtaking the entire amount deployed in 2013, when $630 million (Rs 3,780 crore) was ploughed in across 179 deals.
VC investments had reached a high in 2011 when $1.3 billion (Rs 7,800 crore) was invested in 159 deals
PMI points to boost in manufacturing
New Delhi: Manufacturing activity rose a four-month high in June, albeit the pick-up was too gradual, shows a widely-tracked HSBC Purchasing Managers’ Index (PMI).
The index rose 51.5 points in June from 51.4 points in the previous month. A reading above 50 denotes expansion while one below 50 implies contraction.
PMI has been slowly picking up pace since April. However, it was nowhere close to 52.5 points in February.
The slow pace suits the Reserve Bank of India (RBI), as otherwise higher growth would push up inflation, said Frederic Neumann, co-head of Asian Economic Research at HSBC.
“The muted pace will suit the RBI: since input and output prices are rising as well, faster growth would only stoke inflation and require tightening,” he said.
Even then, inflation of final products rose to an eight-month high. Also, higher prices paid for metals, plastics, textiles, food and energy led to a further increase in average purchase prices, said Markit Economics, a financial information firm which compiles the PMI data.
Input cost and output price inflation accelerated over the month, although in both cases the rates of increase were below their respective long-run averages, it said.
Markit Economics said greater domestic and foreign demand led companies to increase production levels further.
Buying activity expanded at a faster rate, while employment continued to rise.
The financial information firm said operating conditions improved for the eighth month in succession, although modestly.
Output expanded at the fastest pace since February, with survey respondents indicating that growth reflected the signing of new contracts.
All three broad areas of the manufacturing sector registered higher production volumes, led by consumer goods producers.
The sharpest rise was noted at consumer goods firms, a finding which contradicts the latest official index of industrial production (IIP). Both consumer durables and fast moving consumer goods fell in May IIP.
The June data highlighted a marked and accelerated expansion of new export orders received by Indian manufacturers. Officially, exports grew by double digits in May. If PMI is any indicator, exports may continue their upsurge in June as well.
The index rose 51.5 points in June from 51.4 points in the previous month. A reading above 50 denotes expansion while one below 50 implies contraction.
PMI has been slowly picking up pace since April. However, it was nowhere close to 52.5 points in February.
The slow pace suits the Reserve Bank of India (RBI), as otherwise higher growth would push up inflation, said Frederic Neumann, co-head of Asian Economic Research at HSBC.
“The muted pace will suit the RBI: since input and output prices are rising as well, faster growth would only stoke inflation and require tightening,” he said.
Even then, inflation of final products rose to an eight-month high. Also, higher prices paid for metals, plastics, textiles, food and energy led to a further increase in average purchase prices, said Markit Economics, a financial information firm which compiles the PMI data.
Input cost and output price inflation accelerated over the month, although in both cases the rates of increase were below their respective long-run averages, it said.
Markit Economics said greater domestic and foreign demand led companies to increase production levels further.
Buying activity expanded at a faster rate, while employment continued to rise.
The financial information firm said operating conditions improved for the eighth month in succession, although modestly.
Output expanded at the fastest pace since February, with survey respondents indicating that growth reflected the signing of new contracts.
All three broad areas of the manufacturing sector registered higher production volumes, led by consumer goods producers.
The sharpest rise was noted at consumer goods firms, a finding which contradicts the latest official index of industrial production (IIP). Both consumer durables and fast moving consumer goods fell in May IIP.
The June data highlighted a marked and accelerated expansion of new export orders received by Indian manufacturers. Officially, exports grew by double digits in May. If PMI is any indicator, exports may continue their upsurge in June as well.
France extends €1b for sustainable development projects in India
New Delhi: France plans to extend a €1-billion credit line to India for funding sustainable infrastructure and urban development. This was announced by Laurent Fabius, France’s Minister of Foreign Affairs and International Development, on Tuesday.
The credit line, which is to be available over three years, will be given through the French Development Agency (AFD).
Curbing temperature rise
France is to host the next edition of the World Climate Conference in Paris in 2015. Fabius urged nations to come together and agree on limiting global warming to an average global temperature increase of below two degrees Celsius when they meet in Paris for the conference.
Globally, the attempt is to curb the rise in temperature to under two degrees to reduce the impact of climate change. Studies predict that a global rise in temperature by two degree celsius could lead to a 20 per cent dip in water availability, severely impacting food production and causing other disasters.
Fabius also charted five areas of cooperation between France and India — on carbon-free energy (off-shore wind energy, ocean thermal energy); on civilian nuclear energy; water-management in the context of various projects on rivers in India; urban development; and space and earth observation.
A six-member French delegation led by Fabius met Prakash Javadekar, Minister of State (Independent Charge) for Environment, Forests and Climate Change on Tuesday.
Javadekar suggested that part of the Green Climate Fund could be used to buy technology IPRs, which would help developing countries transition to climate-resilient development, an official release said.
He said the Government’s focus on poverty eradication and providing energy access to all would ensure sustainable, balanced development.
The credit line, which is to be available over three years, will be given through the French Development Agency (AFD).
Curbing temperature rise
France is to host the next edition of the World Climate Conference in Paris in 2015. Fabius urged nations to come together and agree on limiting global warming to an average global temperature increase of below two degrees Celsius when they meet in Paris for the conference.
Globally, the attempt is to curb the rise in temperature to under two degrees to reduce the impact of climate change. Studies predict that a global rise in temperature by two degree celsius could lead to a 20 per cent dip in water availability, severely impacting food production and causing other disasters.
Fabius also charted five areas of cooperation between France and India — on carbon-free energy (off-shore wind energy, ocean thermal energy); on civilian nuclear energy; water-management in the context of various projects on rivers in India; urban development; and space and earth observation.
A six-member French delegation led by Fabius met Prakash Javadekar, Minister of State (Independent Charge) for Environment, Forests and Climate Change on Tuesday.
Javadekar suggested that part of the Green Climate Fund could be used to buy technology IPRs, which would help developing countries transition to climate-resilient development, an official release said.
He said the Government’s focus on poverty eradication and providing energy access to all would ensure sustainable, balanced development.
India, Singapore want economic partnership deal fast-tracked
New Delhi: India and Singapore have asked their negotiators working on the Comprehensive Economic Partnership Agreement (CEPA) to show adequate flexibility to move ahead and have the review completed at the earliest.
This was agreed to at a meeting that the Singapore’s visiting Foreign and Law MinisterK Shanmugam, had with External Affairs Minister Sushma Swaraj here on Tuesday.
“The focus of the discussion was largely economic. Singapore is the source of the largest foreign direct investment into India,” the spokesman of the Ministry of External Affairs said.
Infra projects
The two leaders also had “prolonged and detailed” discussions on the possibility of Singaporean companies participating in infrastructure projects based in the Delhi-Mumbai industrial corridor, the Chennai-Mumbai corridor, in the North East and on the Buddhist circuit.
“The focus was principally on Singapore investments in urban development projects and efficient delivery of urban services,” the spokesman said.
India and Singapore will also exchange state visits as part of the year long 50th anniversary celebrations of establishment of diplomatic relations between them.
Iraq situation
Meanwhile, the Government has purchased tickets for 233 Indians wanting to fly out of Iraq, the spokesman said.
“The most significant numbers are from North India because their tickets are booked for Delhi. After that the largest number is to Hyderabad.
There are a limited number to Kerala and Tamil Nadu but these are in single digits,” the spokesman added.
While about a 1,000 Indians have confirmed to the mobile teams established by the Indian Embassy in Baghdad that they would like to return an almost equal number have indicated that they will remain there, the spokesman said adding that not all Indians have been contacted.
This was agreed to at a meeting that the Singapore’s visiting Foreign and Law MinisterK Shanmugam, had with External Affairs Minister Sushma Swaraj here on Tuesday.
“The focus of the discussion was largely economic. Singapore is the source of the largest foreign direct investment into India,” the spokesman of the Ministry of External Affairs said.
Infra projects
The two leaders also had “prolonged and detailed” discussions on the possibility of Singaporean companies participating in infrastructure projects based in the Delhi-Mumbai industrial corridor, the Chennai-Mumbai corridor, in the North East and on the Buddhist circuit.
“The focus was principally on Singapore investments in urban development projects and efficient delivery of urban services,” the spokesman said.
India and Singapore will also exchange state visits as part of the year long 50th anniversary celebrations of establishment of diplomatic relations between them.
Iraq situation
Meanwhile, the Government has purchased tickets for 233 Indians wanting to fly out of Iraq, the spokesman said.
“The most significant numbers are from North India because their tickets are booked for Delhi. After that the largest number is to Hyderabad.
There are a limited number to Kerala and Tamil Nadu but these are in single digits,” the spokesman added.
While about a 1,000 Indians have confirmed to the mobile teams established by the Indian Embassy in Baghdad that they would like to return an almost equal number have indicated that they will remain there, the spokesman said adding that not all Indians have been contacted.
‘India became an investment destination under Modi’
New Delhi: India has ‘suddenly’ become a promising investment destination for foreign companies looking to do business here, after the new government led by Prime Minister Narendra Modi took over, according to Nitin Nohria, dean of Harvard Business School (HBS).
He was speaking to reporters after delivering leadership lessons to top bureaucrats from power, coal and renewable energy ministries. India-born Nohria imparted lessons on leadership qualities to senior bureaucrats of the rank of joint secretary and above in an interactive session organised by energy minister Piyush Goyal.
“The first Indian dean of HBS flew in to Delhi to give us a sense of what leadership is all about,” said Goyal said after the session. Goyal himself is pursuing an HBS programme, Owner/ President Management, according to his website.
The interactive session lasted for about one-and-a-half hour. Nohria said the country is going through a historic transition in leadership.
“These transitions are important events. We cannot imagine economic development without power and coal. Better leadership inspires others,” he said.
On being asked what he thinks about the business sentiment in India, Nohria said the country has an “amazing moment of opportunity in terms of international business sentiment.”
According to him, people are happy with the clear mandate of the new government. Nohria pointed out that China and Japan have become less attractive for foreign investors - another factor that makes India a promising investment destination.
“But, people will wait for six months to see if the initial excitement translates into direct action. It is guarded optimism,” he said.
The interactive session followed last month’s lecture by author Chetan Bhagat, organised by the ministry for “employees with permanent job with no motivation” with the objective of improving productivity and bringing out new ideas to streamline government processes.
He was speaking to reporters after delivering leadership lessons to top bureaucrats from power, coal and renewable energy ministries. India-born Nohria imparted lessons on leadership qualities to senior bureaucrats of the rank of joint secretary and above in an interactive session organised by energy minister Piyush Goyal.
“The first Indian dean of HBS flew in to Delhi to give us a sense of what leadership is all about,” said Goyal said after the session. Goyal himself is pursuing an HBS programme, Owner/ President Management, according to his website.
The interactive session lasted for about one-and-a-half hour. Nohria said the country is going through a historic transition in leadership.
“These transitions are important events. We cannot imagine economic development without power and coal. Better leadership inspires others,” he said.
On being asked what he thinks about the business sentiment in India, Nohria said the country has an “amazing moment of opportunity in terms of international business sentiment.”
According to him, people are happy with the clear mandate of the new government. Nohria pointed out that China and Japan have become less attractive for foreign investors - another factor that makes India a promising investment destination.
“But, people will wait for six months to see if the initial excitement translates into direct action. It is guarded optimism,” he said.
The interactive session followed last month’s lecture by author Chetan Bhagat, organised by the ministry for “employees with permanent job with no motivation” with the objective of improving productivity and bringing out new ideas to streamline government processes.
EPFO launches online registration facility for employers
New Delhi: Employers will now be able to register online with the Employees' Provident Fund Organisation (EPFO) and get the PF code within one day. Labour Minister Narendra Singh Tomar launched the online registration system on Monday.
"Earlier, it used to take 20-25 days to get the registration done, but through this service, a firm can now be registered in just a day's time," said Tomar.
Companies can register online through a link on the EPFO website, and the PF code will be given upon verification of their permanent account number. Applicants can also track the status of their application through the website.
"Emphasising employment generation as the prime priority for the ministry, Tomar said the government is committed to create employment opportunities by developing labour intensive industries and imparting skill development training to the youth," said a press release by the labour ministry.
The employers associations were also given a presentation on the upcoming website for single-window compliance of labour laws. The ministry is planning to launch the pilot project in October to facilitate single-window compliance of labour laws, including online registration by employers, returns, inspections and redressal of grievances.
"Earlier, it used to take 20-25 days to get the registration done, but through this service, a firm can now be registered in just a day's time," said Tomar.
Companies can register online through a link on the EPFO website, and the PF code will be given upon verification of their permanent account number. Applicants can also track the status of their application through the website.
"Emphasising employment generation as the prime priority for the ministry, Tomar said the government is committed to create employment opportunities by developing labour intensive industries and imparting skill development training to the youth," said a press release by the labour ministry.
The employers associations were also given a presentation on the upcoming website for single-window compliance of labour laws. The ministry is planning to launch the pilot project in October to facilitate single-window compliance of labour laws, including online registration by employers, returns, inspections and redressal of grievances.
Cipla buys Yemen-based drug distributor for $21 mn
Mumbai: Cipla, once known as a domestic pharmaceutical company, on Monday announced its fifth global acquisition deal within a span of a year, a 51 per cent stake in a pharmaceuticals manufacturing and distribution business in Yemen for $21 million.
While Cipla did not name the company, it said the Yemeni drug maker is owned by a business group based in the United Arab Emirates. Yemen is a fast-growing market where Cipla already has a leading position, with about 200 products. The deal includes more to be paid over the next three years, on achievement of agreed milestones.
This is Cipla’s second buyout this month. On June 17, it said it had acquired a 60 per cent stake in a Sri Lankan company for $14 million. Cipla had entered this transaction through its wholly-owned subsidiary, Cipla (Mauritius) Ltd. Through the recent acquisitions, Cipla seems to be eyeing a strong foothold in West Asia and Africa. On Monday, Cipla’s shares closed at Rs 437.95 apiece, up 0.15 per cent on the BSE. The company did not respond to queries from Business Standard.
Since 2013, Cipla has made five acquisitions in various countries. After completing the buyout of Cipla Medpro for $512 million in June 2013, it acquired a 14.5 per cent stake in Uganda-based Quality Chemical Industries, 100 per cent in Croatia-based Celeris in December 2013 and 60 per cent in the Sri Lankan company mentioned above
While Cipla did not name the company, it said the Yemeni drug maker is owned by a business group based in the United Arab Emirates. Yemen is a fast-growing market where Cipla already has a leading position, with about 200 products. The deal includes more to be paid over the next three years, on achievement of agreed milestones.
This is Cipla’s second buyout this month. On June 17, it said it had acquired a 60 per cent stake in a Sri Lankan company for $14 million. Cipla had entered this transaction through its wholly-owned subsidiary, Cipla (Mauritius) Ltd. Through the recent acquisitions, Cipla seems to be eyeing a strong foothold in West Asia and Africa. On Monday, Cipla’s shares closed at Rs 437.95 apiece, up 0.15 per cent on the BSE. The company did not respond to queries from Business Standard.
Since 2013, Cipla has made five acquisitions in various countries. After completing the buyout of Cipla Medpro for $512 million in June 2013, it acquired a 14.5 per cent stake in Uganda-based Quality Chemical Industries, 100 per cent in Croatia-based Celeris in December 2013 and 60 per cent in the Sri Lankan company mentioned above
Washington University partners IIT-Bombay for e-MBA degree
Mumbai: Washington University in St Louis (WUSTL) and the Indian Institute of Technology Bombay (IITB) have jointly launched a combined US-India joint executive MBA degree programme. The new programme, which will confer a joint MBA degree, will be modelled after WUSTL's executive MBA in China and the US.
"This is our first joint degree programme that we have in Washington University and conveys our commitment to partnership and confidence in IIT Bombay," Mark S Wrighton, chancellor of Washington University told ET in an exclusive interaction on Monday.
"We expect enrolment from companies that are based outside India and the ones that are based in India. That development of network of business professionals will be valuable for those who enroll," he said.
"Back home in the US I have spoken to a lot of companies that have operations in India and I have had the chance to speak to the CEOs of three important St Louis-headquartered companies, including Emerson, which has 10,000 employees or more in India, Monsanto and Sigma Aldrich and each of those companies has committed to having one or two employees in their first cohort of students in this joint EMBA programme," said Wrighton. The partnership will also enable IIT Bombay to connect with a large number of businesses in many sectors, other than technology, and complement their ongoing activities of industry academia linkages.
"At IIT Bombay, we see this as a great interface to industry. We already have strong connections with the industry on the technology side; this way we will get an opportunity to connect on the business side, too," said Devang V Khakhar, director, IIT Bombay. Classes will be held in the IIT Bombay campus and taught by faculty from WUSTL's Olin Business School and IIT Bombay's Shailesh J Mehta School of Management.
The programme will be of 18-month duration and classes will be offered four days a month. It will end with a two-week exposure at the Washington University. The first session of the programme will commence from early 2015. The tuition fees will be $55,000-$60,000, which is 50% less than its current cost in the US.
"The curriculum will draw upon the expertise of not just the two business schools but also of IIT Bombay and Washington University," said Mahendra Gupta, the Indian origin dean of WUSTL's Olin Business School. "There are two countries that are going to have a major economic impact on the world, in addition to the existing leaders in the western hemisphere, that is China and India," Gupta said.
The programme is meant for professionals with at least seven years of experience. "Our executives will be representing all sectors including women in such a way that we will be able to open the door not only for corporate leaders but also in the fields of social entreprenuership, CSR, policy perspectives, government leaders, bureaucrats, and NGOs," said S Bhargava, head of SJMSOM.
"This is our first joint degree programme that we have in Washington University and conveys our commitment to partnership and confidence in IIT Bombay," Mark S Wrighton, chancellor of Washington University told ET in an exclusive interaction on Monday.
"We expect enrolment from companies that are based outside India and the ones that are based in India. That development of network of business professionals will be valuable for those who enroll," he said.
"Back home in the US I have spoken to a lot of companies that have operations in India and I have had the chance to speak to the CEOs of three important St Louis-headquartered companies, including Emerson, which has 10,000 employees or more in India, Monsanto and Sigma Aldrich and each of those companies has committed to having one or two employees in their first cohort of students in this joint EMBA programme," said Wrighton. The partnership will also enable IIT Bombay to connect with a large number of businesses in many sectors, other than technology, and complement their ongoing activities of industry academia linkages.
"At IIT Bombay, we see this as a great interface to industry. We already have strong connections with the industry on the technology side; this way we will get an opportunity to connect on the business side, too," said Devang V Khakhar, director, IIT Bombay. Classes will be held in the IIT Bombay campus and taught by faculty from WUSTL's Olin Business School and IIT Bombay's Shailesh J Mehta School of Management.
The programme will be of 18-month duration and classes will be offered four days a month. It will end with a two-week exposure at the Washington University. The first session of the programme will commence from early 2015. The tuition fees will be $55,000-$60,000, which is 50% less than its current cost in the US.
"The curriculum will draw upon the expertise of not just the two business schools but also of IIT Bombay and Washington University," said Mahendra Gupta, the Indian origin dean of WUSTL's Olin Business School. "There are two countries that are going to have a major economic impact on the world, in addition to the existing leaders in the western hemisphere, that is China and India," Gupta said.
The programme is meant for professionals with at least seven years of experience. "Our executives will be representing all sectors including women in such a way that we will be able to open the door not only for corporate leaders but also in the fields of social entreprenuership, CSR, policy perspectives, government leaders, bureaucrats, and NGOs," said S Bhargava, head of SJMSOM.
India, China sign pact on industrial parks
Beijing: India and China on Monday formalised an agreement to take forward the setting up of China-dedicated industrial clusters in India, with an aim to boost Chinese investment in infrastructure and manufacturing.
The agreement, signed during Vice-President Hamid Ansari’s visit to Beijing, was, however, short on details. With China still considering at least four locations for setting up its first parks, officials described the MoU as more “an enabling framework” rather than a concrete agreement.
The MoU also did not mention whether the proposed clusters would be given any preferential policies, only saying that benefits would be “no lower than that envisaged under the prevailing policy frameworks in India such as Special Economic Zone (SEZ), National Investment & Manufacturing Zone (NIMZ), and existing policies of the State Governments, as applicable”.
Officials hope that the agreement will send a strong signal to Chinese firms that India is open to investment, particularly in infrastructure and manufacturing.
Commerce and Industry Minister Nirmala Seetharaman, who met with her counterpart Gao Hucheng for talks here on Monday morning, said there was “immense scope” for Chinese investment, “not just for manufacturing but many sectors where the Chinese have an advantage”. “Whether manufacturing or railways, we could always find out more such areas where Chinese investments can be encouraged,” she said.
Market access sought
During her meeting, Seetharaman also called on China to improve market access for Indian firms here, particularly in sectors such as pharmaceuticals and IT where companies have complained of an opaque regulatory framework. She made the point that the widening trade deficit, which touched $31 billion last year out of two-way trade of $65 billion, was unsustainable. According to the MoU, an Industrial Park Cooperation Working Group, made up of equal number of representatives from both the countries, will be set up to identify and agree upon the detailed modalities, with four locations already being considered by China. The group will meet alternately in each country and periodically review progress.
MoU on hydrological data
The agreement was one of three MoUs signed following Ansari’s talks with his counterpart Li Yuanchao. Both countries also signed an MoU on the provision of hydrological data and for a first ever training exchange programme for officials of both countries, between the Lal Bahadur Shastri National Academy of Administration (LBSNAA), Mussoorie and the China Executive Leadership Academy (CELAP) in Shanghai.
China has agreed to allow Indian hydrological experts to conduct study tours in Tibet to monitor the flows of the upper reaches of the Brahmaputra, in an apparent move to assuage India’s concerns about on-going dam projects on the upper reaches of the river – known as the Yarlung Zangbo in Tibet.
China has in the past been sensitive about allowing access to Tibet, and Indian hydrological experts have, as yet, not formally visited the region. China also agreed to extend provision of hydrological data from May 15 to October 15 every year on a daily basis, adding 15 days to an earlier agreement. The data will be provided by three stations, at Nugesha, Yangcun and Nuxia in Tibet on the main stream of the river.
The agreement, signed during Vice-President Hamid Ansari’s visit to Beijing, was, however, short on details. With China still considering at least four locations for setting up its first parks, officials described the MoU as more “an enabling framework” rather than a concrete agreement.
The MoU also did not mention whether the proposed clusters would be given any preferential policies, only saying that benefits would be “no lower than that envisaged under the prevailing policy frameworks in India such as Special Economic Zone (SEZ), National Investment & Manufacturing Zone (NIMZ), and existing policies of the State Governments, as applicable”.
Officials hope that the agreement will send a strong signal to Chinese firms that India is open to investment, particularly in infrastructure and manufacturing.
Commerce and Industry Minister Nirmala Seetharaman, who met with her counterpart Gao Hucheng for talks here on Monday morning, said there was “immense scope” for Chinese investment, “not just for manufacturing but many sectors where the Chinese have an advantage”. “Whether manufacturing or railways, we could always find out more such areas where Chinese investments can be encouraged,” she said.
Market access sought
During her meeting, Seetharaman also called on China to improve market access for Indian firms here, particularly in sectors such as pharmaceuticals and IT where companies have complained of an opaque regulatory framework. She made the point that the widening trade deficit, which touched $31 billion last year out of two-way trade of $65 billion, was unsustainable. According to the MoU, an Industrial Park Cooperation Working Group, made up of equal number of representatives from both the countries, will be set up to identify and agree upon the detailed modalities, with four locations already being considered by China. The group will meet alternately in each country and periodically review progress.
MoU on hydrological data
The agreement was one of three MoUs signed following Ansari’s talks with his counterpart Li Yuanchao. Both countries also signed an MoU on the provision of hydrological data and for a first ever training exchange programme for officials of both countries, between the Lal Bahadur Shastri National Academy of Administration (LBSNAA), Mussoorie and the China Executive Leadership Academy (CELAP) in Shanghai.
China has agreed to allow Indian hydrological experts to conduct study tours in Tibet to monitor the flows of the upper reaches of the Brahmaputra, in an apparent move to assuage India’s concerns about on-going dam projects on the upper reaches of the river – known as the Yarlung Zangbo in Tibet.
China has in the past been sensitive about allowing access to Tibet, and Indian hydrological experts have, as yet, not formally visited the region. China also agreed to extend provision of hydrological data from May 15 to October 15 every year on a daily basis, adding 15 days to an earlier agreement. The data will be provided by three stations, at Nugesha, Yangcun and Nuxia in Tibet on the main stream of the river.
Isro launches PSLV-C23 with 5 foreign satellites
Sriharikota: The Indian Space Research Organisation (Isro)’s polar satellite launch vehicle (PSLV)-C23 was launched successfully on Monday from the first launch pad of Sriharikota space station here, about 100 km north of Chennai. Prime Minister Narendra Modi and other senior ministers witnessed the launch at the Satish Dhawan Space Centre.
The PSLV-C23 lifted off from the spaceport at 9.52 am on Monday instead of 9.49 am as was decided earlier. This is because Isro had to delay the launch by three minutes to avoid the threat of space debris getting in the way of the satellites.
The launch vehicle, PSLV-C23, with a height of 44.4 metres, carried with it SPOT-7, a 714-kg French earth-observing satellite as the main payload, which was injected into a 655-km Sun Synchronous Orbit (SSO). The other satellites being carried by PSLV-C23 include the 14-kg AISAT of Germany, NLS7.1 (CAN-X4) and NLS7.2 (CAN-X5) of Canada - each weighing 15 kg - and the 7-kg VELOX-1 of Singapore.
Till April 2014, there had been 25 consecutive successful flights of PSLV and this is the 26th such launch. Meanwhile, PSLV-C23 is the 10th flight of PSLV in ‘core-alone’ configuration, which means a configuration without the use of solid strap-on motors.
After an estimated time of 20 minutes, Isro’s workhorse PSLV separated all five satellites — one by one into their intended orbit. All the satellites were separated as planned, Isro said in a statement.
SPOT-7 is a French optical earth observation satellite identical to SPOT-6 launched earlier on-board PSLV-C21 in September 2012. SPOT-7, after its injection into the SSO, will be phased and placed diametrically opposite to SPOT-6 and will form part of the existing earth observation constellation.
Modi praised the cost-effective nature of Indian space programme, saying the country’s Mars mission had reportedly cost less than the Hollywood science fiction Gravity, said a PTI report. Mangalyaan was launched in November 2013 at an estimated cost of $72 million. The movie was reportedly made at an estimated $100 mn.
The PSLV-C23 lifted off from the spaceport at 9.52 am on Monday instead of 9.49 am as was decided earlier. This is because Isro had to delay the launch by three minutes to avoid the threat of space debris getting in the way of the satellites.
The launch vehicle, PSLV-C23, with a height of 44.4 metres, carried with it SPOT-7, a 714-kg French earth-observing satellite as the main payload, which was injected into a 655-km Sun Synchronous Orbit (SSO). The other satellites being carried by PSLV-C23 include the 14-kg AISAT of Germany, NLS7.1 (CAN-X4) and NLS7.2 (CAN-X5) of Canada - each weighing 15 kg - and the 7-kg VELOX-1 of Singapore.
Till April 2014, there had been 25 consecutive successful flights of PSLV and this is the 26th such launch. Meanwhile, PSLV-C23 is the 10th flight of PSLV in ‘core-alone’ configuration, which means a configuration without the use of solid strap-on motors.
After an estimated time of 20 minutes, Isro’s workhorse PSLV separated all five satellites — one by one into their intended orbit. All the satellites were separated as planned, Isro said in a statement.
SPOT-7 is a French optical earth observation satellite identical to SPOT-6 launched earlier on-board PSLV-C21 in September 2012. SPOT-7, after its injection into the SSO, will be phased and placed diametrically opposite to SPOT-6 and will form part of the existing earth observation constellation.
Modi praised the cost-effective nature of Indian space programme, saying the country’s Mars mission had reportedly cost less than the Hollywood science fiction Gravity, said a PTI report. Mangalyaan was launched in November 2013 at an estimated cost of $72 million. The movie was reportedly made at an estimated $100 mn.
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