New Delhi: The two countries are likely to sign an MoU for the Rs 2,500-crore project.
The government’s initiative to have trading of electricity with Sri Lanka is likely to bear fruit by mid-2014, with the commissioning of a high capacity power transmission link between the two countries. Power Grid Corporation of India (PGCIL), the country’s largest electricity transmission utility and the implementing agency for the project from the Indian side, is likely to sign a memorandum of understanding (MoU) for developing the Rs 2,500-crore project with the neighbouring country by next month.
The 285-kilometre India-Sri Lanka power link, which includes submarine cables over 50 km, will enable the two countries to trade their surplus power with each other, thereby offering a cheaper option to bridge their power generation deficits and also manage peak demand. “We are going to sign the MoU with the Sri Lankan side for the project in December. After this, it will take us six months to start work on the development of the project. We will complete the project within three years,” Power Grid Chairman and Managing Director S K Chaturvedi told Business Standard.
While India generally reels under an overall 12 per cent peak power deficit currently, minute electricity surplus in eastern and southern grids become available seasonally. “With the commissioning of the Krishnapatnam Ultra Mega Power Project (UMPP) in Andhra Pradesh, tradeble surplus would become available,” Chaturvedi said.
UMPPs are large-sized projects being developed by the private sector. The Krishnapatnam UMPP is being developed by Anil Dhirubhai Ambani-owned Reliance Power and is likely to be commissioned by 2015. The link will help Sri Lanka reduce its use of expensive fuels and import cheaper power from India’s surplus. For India, the link will help open a new market for its projected surplus of power.
The subsea line would initially have a capacity of transmitting 500 Mw, according to Power Grid’s feasibility report. “Later, the power flow could be ramped up to 1,000 Mw, beginning 2016, when the power generation capacities in the two countries improve, with surplus availability especially in the Indian southern grid,” Chaturvedi said.
The completion of the proposed undersea transmission link, however, would also depend on the commissioning of NTPC’s 500 Mw imported coal-based power project being planned to be set up at Trincomalee in Sri Lanka. The undersea project would be useful in evacuation of power from the plant.
“The transmission project is linked to the Trincomalee plant. It takes at least four-five years to set up a coal-based project, while my project takes only three years for completion,” Chaturvedi said. While the work on NTPC’s project has not begun, an official from NTPC said the construction work would begin as soon as all the necessary approvals were obtained.
Powergrid and Ceylon Electricity Board (CEB), the largest electricity company of Sri Lanka, will lay down cables under the Gulf of Mannar between Rameswaram in Tamil Nadu and Talaimannar in Sri Lanka.
Globally, transnational undersea power transmission lines have been laid so far only between the UK and the France for transferring 2,000 Mw of electricity. The Philippines plans to set up similar transmission links to connect its islands through the undersea electricity network.
Success in my Habit
Monday, December 6, 2010
IIFT to set up institute in Africa
Kolkata: The Indian Institute of Foreign Trade (IIFT) will soon have its foreign counterpart with an “IIFT type institute” coming up in one of the “less developed nations” in Africa, Mr K.T. Chacko, Director, IIFT, said here on Wednesday.
The announcement regarding the location of the institute and other details will be made by the Prime Minister, Dr Manmohan Singh, within the coming months, he added.
Mr Chacko was speaking on the sidelines of the National Trade and Logistics Symposium organised by the IIFT here on Wednesday.
Refusing to call it the IIFT's African campus, the director said that according to the prior commitments made by the Prime Minister an “IIFT type institute” will come up in Africa. The African institute will help in developing the managerial capabilities and knowledge base in the continent.
The decision has been taken keeping in mind Africa's immense growth potential and trade benefits in the coming years.
Initially the Indian government will take an active part in setting up the institute and providing infrastructure facilities such as hostel and library. Faculty will also be provided by the IIFT.
“After the initial years, say around five to 10 years, we will hand over the management and running of the institute to the respective government in the country,” Mr Chacko said.
student intake
Mr Chacko added that the IIFT was planning to take in around 200 students for its Kolkata campus. This will be more than the 180 seats that it has in its Delhi one.
At present, IIFT's Kolkata campus has a capacity of 60 students and operates from rented premises in Sector V in Salt Lake, in North 24 Parganas. The institute has been allotted a 10 acre plot of land, seven acres initially and three later, off Eastern Metropolitan Bypass in Kolkata in 2006. Documentation and obtaining clearances had delayed the setting up of the new campus.
The institute expects to start construction work on its Rs 100-crore second campus within the next month. Ramky Infrastructure will carry out construction work on behalf of the institute.
The announcement regarding the location of the institute and other details will be made by the Prime Minister, Dr Manmohan Singh, within the coming months, he added.
Mr Chacko was speaking on the sidelines of the National Trade and Logistics Symposium organised by the IIFT here on Wednesday.
Refusing to call it the IIFT's African campus, the director said that according to the prior commitments made by the Prime Minister an “IIFT type institute” will come up in Africa. The African institute will help in developing the managerial capabilities and knowledge base in the continent.
The decision has been taken keeping in mind Africa's immense growth potential and trade benefits in the coming years.
Initially the Indian government will take an active part in setting up the institute and providing infrastructure facilities such as hostel and library. Faculty will also be provided by the IIFT.
“After the initial years, say around five to 10 years, we will hand over the management and running of the institute to the respective government in the country,” Mr Chacko said.
student intake
Mr Chacko added that the IIFT was planning to take in around 200 students for its Kolkata campus. This will be more than the 180 seats that it has in its Delhi one.
At present, IIFT's Kolkata campus has a capacity of 60 students and operates from rented premises in Sector V in Salt Lake, in North 24 Parganas. The institute has been allotted a 10 acre plot of land, seven acres initially and three later, off Eastern Metropolitan Bypass in Kolkata in 2006. Documentation and obtaining clearances had delayed the setting up of the new campus.
The institute expects to start construction work on its Rs 100-crore second campus within the next month. Ramky Infrastructure will carry out construction work on behalf of the institute.
Bajaj, KTM, Kawasaki plan global pact
Mumbai: The alliance will lead to products suitable to the three companies’ strategy and brand.
In an attempt to give its international plans a major fillip, Bajaj Auto, the country's second-largest motorcycle maker, is working towards bringing the technological prowess of Austrian bike maker KTM and Kawasaki of Japan together to form a global alliance.
The three companies are discussing the matter, which would lead to cost-effective manufacturing programmes for engines, platforms and components, and also a global distribution and marketing set-up.
Developed platforms can be used by the three companies to create different products suitable to their strategy and brand. Platform sharing is more common in car and sport utility vehicle industry, where some companies have multiple brands.
Pune-based Bajaj Auto has a 38.09 per cent stake in KTM, which specialises in making stylish street and off-road bikes. The two companies are in the process of developing a range of high-performance engines to serve domestic and international markets.
This new range of low- and high-capacity engines can be tapped by Kawasaki, one of the world's largest bike makers and a long-time technical partner of Bajaj Auto.
Such a multiple use of similar engines would ease the cost of manufacturing in the long run, said Rajiv Bajaj, managing director of Bajaj Auto.
"Every component is not common, but the basics, like crank cases, shafts and gears, are very similar. So, the trick is one must have scale at the back end, but one must also have specialisation in the front. So, at the front end one, we will sell a (Kawasaki) Ninja, a (KTM) Duke and a (Bajaj) Pulsar, but at the back end, they may have lot of commonality," Bajaj said.
KTM is preparing to launch Duke, a 125cc motorcycle, next year in India. The engine of the bike, likely to be priced above Rs 1 lakh, is developed by KTM and Bajaj.
"With the same people, same knowledge, same standards, they will be making those common parts," Bajaj stated.
Kawasaki - which has so far maintained a low profile in the Indian market, following increasing research and development (R&D) independence of Bajaj Auto - recently formed a subsidiary in India due to increasing demand for its Ninja 250R motorcycle.
The Japanese auto company is studying other emerging markets like China, Southeast Asia and Latin America, to carry over its alliance with Bajaj Auto.
Kawasaki is importing automotive components using the supplier base of Bajaj Auto for models sold in other parts of Asia and aims to start parts supplies to developed market of the United States and Europe.
While Bajaj Auto is helping Kawasaki by selling the latter's models in India through its own dealers, Kawasaki will provide the same assistance to Bajaj Auto in far away international markets. KTM and Kawasaki's products will come out of Bajaj Auto's Chakan plant in Pune.
At present, Kawasaki sells Bajaj bikes in countries like Columbia and the Philippines, and is exploring newer market for further expansion. Likewise, Bajaj plans to use KTM's extensive dealer network in Europe and the US to make a foray with its own range of two-wheelers.
In an attempt to give its international plans a major fillip, Bajaj Auto, the country's second-largest motorcycle maker, is working towards bringing the technological prowess of Austrian bike maker KTM and Kawasaki of Japan together to form a global alliance.
The three companies are discussing the matter, which would lead to cost-effective manufacturing programmes for engines, platforms and components, and also a global distribution and marketing set-up.
Developed platforms can be used by the three companies to create different products suitable to their strategy and brand. Platform sharing is more common in car and sport utility vehicle industry, where some companies have multiple brands.
Pune-based Bajaj Auto has a 38.09 per cent stake in KTM, which specialises in making stylish street and off-road bikes. The two companies are in the process of developing a range of high-performance engines to serve domestic and international markets.
This new range of low- and high-capacity engines can be tapped by Kawasaki, one of the world's largest bike makers and a long-time technical partner of Bajaj Auto.
Such a multiple use of similar engines would ease the cost of manufacturing in the long run, said Rajiv Bajaj, managing director of Bajaj Auto.
"Every component is not common, but the basics, like crank cases, shafts and gears, are very similar. So, the trick is one must have scale at the back end, but one must also have specialisation in the front. So, at the front end one, we will sell a (Kawasaki) Ninja, a (KTM) Duke and a (Bajaj) Pulsar, but at the back end, they may have lot of commonality," Bajaj said.
KTM is preparing to launch Duke, a 125cc motorcycle, next year in India. The engine of the bike, likely to be priced above Rs 1 lakh, is developed by KTM and Bajaj.
"With the same people, same knowledge, same standards, they will be making those common parts," Bajaj stated.
Kawasaki - which has so far maintained a low profile in the Indian market, following increasing research and development (R&D) independence of Bajaj Auto - recently formed a subsidiary in India due to increasing demand for its Ninja 250R motorcycle.
The Japanese auto company is studying other emerging markets like China, Southeast Asia and Latin America, to carry over its alliance with Bajaj Auto.
Kawasaki is importing automotive components using the supplier base of Bajaj Auto for models sold in other parts of Asia and aims to start parts supplies to developed market of the United States and Europe.
While Bajaj Auto is helping Kawasaki by selling the latter's models in India through its own dealers, Kawasaki will provide the same assistance to Bajaj Auto in far away international markets. KTM and Kawasaki's products will come out of Bajaj Auto's Chakan plant in Pune.
At present, Kawasaki sells Bajaj bikes in countries like Columbia and the Philippines, and is exploring newer market for further expansion. Likewise, Bajaj plans to use KTM's extensive dealer network in Europe and the US to make a foray with its own range of two-wheelers.
Zensar acquires US IT solution firm Akibia for $66 million
Mumbai: RPG group-owned Zensar Technologies acquired US-based infrastructure management company PSI Holding, which operates under the name Akibia, in an allcash deal of $66 million, the Indian software exporter said at a conference on Monday.
Furthermore, the company will look at more acquisitions in strategic verticals like business intelligence and remote infrastructure management, or the new regions the company hopes to expand into, RPG group chairman, Harsh Goenka said.
RPG operates several other businesses including Ceat tyres, RPG Lifesciences, and an enterprise in rubber plantations Harrisons Malayalam. Mr Goenka said the group plans to double revenue from the current Rs 18,000 crore over the next three years.
The goal is likely to be achieved through 75% of business growth for existing companies, and the rest through acquisitions, he said.
The company that Zensar has acquired has approximately 10% earnings before interest, tax, depreciation, and amortisation, or Ebitda, margin, said Ganesh Natarajan, vice chairman and managing director, Zensar.
There are no overlapping customers between the acquired and parent companies, he added, suggesting that there is ample scope for cross-selling services to clients of each company. Akibia’s revenue in the year to September was $108 million.
Zensar will be paying performance-linked incentives to the current employees of Akibia in addition to the acquisition costs, the company said. Infrastructure management accounts for less than 10% of the company’s revenue at the moment, Mr Natarajan said. However, by 2013 Zensar expects the business will contribute 30% of revenue.
The revenue growth target for Akibia’s existing business over the next year or two is 10-12%, he said. Yet, the new business of Akibia is likely to be partly offshored, which will possibly aid the overall operating margins of the company.
Typically, Indian software companies offshore work from the US to India, thereby reducing the cost for clients, and also increasing their profit margin on the business.
Furthermore, the company will look at more acquisitions in strategic verticals like business intelligence and remote infrastructure management, or the new regions the company hopes to expand into, RPG group chairman, Harsh Goenka said.
RPG operates several other businesses including Ceat tyres, RPG Lifesciences, and an enterprise in rubber plantations Harrisons Malayalam. Mr Goenka said the group plans to double revenue from the current Rs 18,000 crore over the next three years.
The goal is likely to be achieved through 75% of business growth for existing companies, and the rest through acquisitions, he said.
The company that Zensar has acquired has approximately 10% earnings before interest, tax, depreciation, and amortisation, or Ebitda, margin, said Ganesh Natarajan, vice chairman and managing director, Zensar.
There are no overlapping customers between the acquired and parent companies, he added, suggesting that there is ample scope for cross-selling services to clients of each company. Akibia’s revenue in the year to September was $108 million.
Zensar will be paying performance-linked incentives to the current employees of Akibia in addition to the acquisition costs, the company said. Infrastructure management accounts for less than 10% of the company’s revenue at the moment, Mr Natarajan said. However, by 2013 Zensar expects the business will contribute 30% of revenue.
The revenue growth target for Akibia’s existing business over the next year or two is 10-12%, he said. Yet, the new business of Akibia is likely to be partly offshored, which will possibly aid the overall operating margins of the company.
Typically, Indian software companies offshore work from the US to India, thereby reducing the cost for clients, and also increasing their profit margin on the business.
Indian Bank gets approval to open branch in Jaffna
Chennai: Indian Bank has received the Central Bank of Sri Lanka's nod to open its branch at Jaffna in Sri Lanka, according to its chairman and managing director T M Bhasin.
During his recent visit to Sri Lanka, he had said that the new branch would adopt a different model for its Jaffna operations by forming and lending to self-help groups in sectors such as agriculture, fisheries and dairy.
The bank would deploy the deposits garnered from Jaffna, in Jaffna itself to improve the economic development and to help improve the lives of the people there.
Indian Bank which helped in the formation of more than 450,000 SHGs and financing them through its 29 exclusive microsate branches in India will replicate a similar model in Jaffna.
The bank is also looking at expanding its footprint on the east coast of the island nation with two branches being planned in Batticaloa and Trincomalee by the end of next year. The bank’s Colombo branch which has a balance sheet of 5 billion Sri Lankan rupees, plans to double it in two years. It would also play a major role in the rebuilding and rehabilitation process in Jaffna by financing the houses planned to be built for the displaced people.
Sri Lanka’s infrastructure development is witnessing a boom similar to India which has been growing at a pace of 40 per cent in the last three years. Indian Bank would actively lend for infrastructure development activities through the new branches.
Bhasin further said that the Colombo branch had been ploughing back profits to boost the capital to prepare for higher loan growth.
It already had 3.5 billion rupees by way of capital which was higher than the required 3 billion year-end floor set by the Central Bank of Sri Lanka. If needed, the bank may further infuse capital from India for expansion of credit in the Island nation, he said.
During his recent visit to Sri Lanka, he had said that the new branch would adopt a different model for its Jaffna operations by forming and lending to self-help groups in sectors such as agriculture, fisheries and dairy.
The bank would deploy the deposits garnered from Jaffna, in Jaffna itself to improve the economic development and to help improve the lives of the people there.
Indian Bank which helped in the formation of more than 450,000 SHGs and financing them through its 29 exclusive microsate branches in India will replicate a similar model in Jaffna.
The bank is also looking at expanding its footprint on the east coast of the island nation with two branches being planned in Batticaloa and Trincomalee by the end of next year. The bank’s Colombo branch which has a balance sheet of 5 billion Sri Lankan rupees, plans to double it in two years. It would also play a major role in the rebuilding and rehabilitation process in Jaffna by financing the houses planned to be built for the displaced people.
Sri Lanka’s infrastructure development is witnessing a boom similar to India which has been growing at a pace of 40 per cent in the last three years. Indian Bank would actively lend for infrastructure development activities through the new branches.
Bhasin further said that the Colombo branch had been ploughing back profits to boost the capital to prepare for higher loan growth.
It already had 3.5 billion rupees by way of capital which was higher than the required 3 billion year-end floor set by the Central Bank of Sri Lanka. If needed, the bank may further infuse capital from India for expansion of credit in the Island nation, he said.
Railways' freight revenue grows by 8.4 per cent in October 2010
New Delhi: The Indian Railways has registered a growth of 8.39 per cent in freight revenues in October 2010 as compared to the corresponding period in 2009.
The freight earnings in the month of October 2010 stood at US$ 1.15 billion. The rise is supported by good growth in transportation of coal, raw material movement to steel plants, cement, foodgrains, fertilisers, mineral oil and containers.
The earnings for some of commodities such as coal stood at US$ 444.11 million, cement at US$ 111.41 million, foodgrains at US$ 78 million, fertilisers at US$ 81.53 million, mineral oil at US$ 64.14 million, and container traffic revenue at US$ 60.03 million.
Furthermore, the export traffic for iron ore was 1.78 million tonne (MT) in October 2010, while the revenue from iron ore export traffic stood at US$ 76.23 million.
The freight earnings in the month of October 2010 stood at US$ 1.15 billion. The rise is supported by good growth in transportation of coal, raw material movement to steel plants, cement, foodgrains, fertilisers, mineral oil and containers.
The earnings for some of commodities such as coal stood at US$ 444.11 million, cement at US$ 111.41 million, foodgrains at US$ 78 million, fertilisers at US$ 81.53 million, mineral oil at US$ 64.14 million, and container traffic revenue at US$ 60.03 million.
Furthermore, the export traffic for iron ore was 1.78 million tonne (MT) in October 2010, while the revenue from iron ore export traffic stood at US$ 76.23 million.
India open to joint venture for gas-based fertiliser plants in Saudi
New Delhi: India is keen to set up joint ventures for gas-based fertiliser plants in Saudi Arabia, the Union Commerce and Industry Minister, Mr Anand Sharma, said on Friday.
After a meeting with the Saudi Arabian Minister of Commerce and Industry, Mr Abdullah bin Ahmed Zainal Alireza, here, Mr Sharma said in a statement that, “Indian companies have evinced keen interest in setting up of such projects (gas-based fertiliser plants) in the Kingdom of Saudi Arabia.”
He added that while the trade ties are already quite substantial, there is immense potential for taking it to a higher level.
The statement said both sides felt that the focus is to be shifted to investment and joint ventures for enhancing trade in goods and services. It said an emphasis on regular exchange of business delegations would also help.
Stating that economic ties would constitute a solid foundation for the development of Indo-Saudi Strategic Partnership, Mr Sharma told his counterpart that strategies should be developed to increase the trade volume in traditional items and diversifying the trade basket.
Bilateral trade growing
India and Saudi Arabia trade has increased from $3.44 billion in 2005-06 to $21 billion in 2009-10. India's exports to Saudi Arabia have increased from $1.8 billion in 2005-06 to $3.9 billion in 2009-10. Major item of export to Saudi Arabia are petroleum products, basmati rice, non-ferrous metals, machinery and instruments, dyes/intermediary and coal tar chemicals.
Imports from Saudi Arabia have increased from $1.63 billion in 2005-06 to $17 billion in 2009-10 and the main items of imports are petroleum products, organic chemicals, artificial resin and plastic.
FDI
The foreign direct investment from Saudi Arabia during April 2000-August 2010 is to the tune of $31.59 Million. Main sectors that attracted FDI from Saudi Arabia are electrical equipments, food processing industries, automobile industry, computer software and hardware and telecommunications.
After a meeting with the Saudi Arabian Minister of Commerce and Industry, Mr Abdullah bin Ahmed Zainal Alireza, here, Mr Sharma said in a statement that, “Indian companies have evinced keen interest in setting up of such projects (gas-based fertiliser plants) in the Kingdom of Saudi Arabia.”
He added that while the trade ties are already quite substantial, there is immense potential for taking it to a higher level.
The statement said both sides felt that the focus is to be shifted to investment and joint ventures for enhancing trade in goods and services. It said an emphasis on regular exchange of business delegations would also help.
Stating that economic ties would constitute a solid foundation for the development of Indo-Saudi Strategic Partnership, Mr Sharma told his counterpart that strategies should be developed to increase the trade volume in traditional items and diversifying the trade basket.
Bilateral trade growing
India and Saudi Arabia trade has increased from $3.44 billion in 2005-06 to $21 billion in 2009-10. India's exports to Saudi Arabia have increased from $1.8 billion in 2005-06 to $3.9 billion in 2009-10. Major item of export to Saudi Arabia are petroleum products, basmati rice, non-ferrous metals, machinery and instruments, dyes/intermediary and coal tar chemicals.
Imports from Saudi Arabia have increased from $1.63 billion in 2005-06 to $17 billion in 2009-10 and the main items of imports are petroleum products, organic chemicals, artificial resin and plastic.
FDI
The foreign direct investment from Saudi Arabia during April 2000-August 2010 is to the tune of $31.59 Million. Main sectors that attracted FDI from Saudi Arabia are electrical equipments, food processing industries, automobile industry, computer software and hardware and telecommunications.
Jewellery exports rise 38% in Oct
Mumbai: Gems and jewellery exports rose sharply in October on re-stocking demand from retailers in developed countries including the US and the European Union. The growth was beyond traders expectations as the demand recovered from last year’s low.
Jewellery shipments were worth $2,922.58 million (Rs 12,979.19 crore) in October, registering a rise of 37.82 per cent (31 per cent in rupee terms) as compared to $2,120.64 million (Rs 9,907.61 crore) in the corresponding month of the previous year, data compiled by the apex trade body the Gems & Jewellery Export Promotion Council showed.
Rajiv Jain, chairman of the council, had estimated the jewellery demand to rise between 15-20 per cent for the current season on rising consumer and retailer demand for the upcoming festival season.
Between April-October period of the current financial year, total exports of gems and jewellery rose 41.64 per cent in dollar terms and 34.48 per cent in rupee terms at $21,395.13 million (Rs 98,088.53 crore) as compared to $15,105.77 million (Rs 72,937.90 crore) in the same period of the previous year.
Overall gems and jewellery imports were at $2,300.64 million (Rs 10,217.13 crore) in October, up 33.60 per cent (26.99 per cent in rupee terms) as compared to $1,722.03 million (Rs 8,045.32 crore) in the same period last year. Imports of rough diamonds were at $6,589.25 million (Rs 30,292.28 crore) in the first seven months, rising 44.86 per cent as compared with the imports at $4,548.65 million (Rs 21,958.11 crore) respectively in the same period of the previous year.
Jewellery shipments were worth $2,922.58 million (Rs 12,979.19 crore) in October, registering a rise of 37.82 per cent (31 per cent in rupee terms) as compared to $2,120.64 million (Rs 9,907.61 crore) in the corresponding month of the previous year, data compiled by the apex trade body the Gems & Jewellery Export Promotion Council showed.
Rajiv Jain, chairman of the council, had estimated the jewellery demand to rise between 15-20 per cent for the current season on rising consumer and retailer demand for the upcoming festival season.
Between April-October period of the current financial year, total exports of gems and jewellery rose 41.64 per cent in dollar terms and 34.48 per cent in rupee terms at $21,395.13 million (Rs 98,088.53 crore) as compared to $15,105.77 million (Rs 72,937.90 crore) in the same period of the previous year.
Overall gems and jewellery imports were at $2,300.64 million (Rs 10,217.13 crore) in October, up 33.60 per cent (26.99 per cent in rupee terms) as compared to $1,722.03 million (Rs 8,045.32 crore) in the same period last year. Imports of rough diamonds were at $6,589.25 million (Rs 30,292.28 crore) in the first seven months, rising 44.86 per cent as compared with the imports at $4,548.65 million (Rs 21,958.11 crore) respectively in the same period of the previous year.
Independent authority to asses impact of government's flagship programmes
New Delhi: The government has decided to set up an independent authority to assess the impact of various public programmes and improve their effectiveness amid criticism of severe leakages in flagship schemes.
The union cabinet on Thursday approved the creation of an Independent Evaluation Office, having committed to such a body in the presidential address to the joint session of both Houses of Parliament in June, 2009.
On Tuesday finance minister Pranab Mukherjee had also sought detailed reports from the comptroller and auditor general (CAG) on whether government’s programmes are achieving their desired objectives and improving the quality of life of our people.
The independent evaluation office will be attached to the Planning Commission and funded by it as well. It will have a governing board chaired by the deputy chairman of the commission. It will have full functional autonomy to discharge its functions. The authority will advise the plan panel and the implementing agencies, helping them develop appropriate management systems.
The authority will draw from resources available from research organizations and its findings will be placed in the public domain.
The cabinet committee on economic affairs approved setting up of five more mega food parks in addition to 10 on going projects, involving a total govern-ment grant of Rs 250 crore.
The scheme which was approved by the government in September, 2008 envisages raising the processing of perishables in the country from the existing 6% to 20%, value addition from 20% to 35% and the share in global food trade from 1.5% to 3% by the year 2015.
The cabinet gave its nod to wind up the National Fund for Rural Development and transfer the residual funds to Council for Advancement of People’s Action and Rural Technology (CAPART), an autonomous body under the ministry of rural development.
The NFRD was set up in 1984 to mobilise funds from individuals, corporate and non-corporate bodies for undertaking rural development activities. The cabinet also approved additional Rs 71.28 crore for Bhopal gas leak victims in line with the the recommendations of the group of ministers.
The union cabinet on Thursday approved the creation of an Independent Evaluation Office, having committed to such a body in the presidential address to the joint session of both Houses of Parliament in June, 2009.
On Tuesday finance minister Pranab Mukherjee had also sought detailed reports from the comptroller and auditor general (CAG) on whether government’s programmes are achieving their desired objectives and improving the quality of life of our people.
The independent evaluation office will be attached to the Planning Commission and funded by it as well. It will have a governing board chaired by the deputy chairman of the commission. It will have full functional autonomy to discharge its functions. The authority will advise the plan panel and the implementing agencies, helping them develop appropriate management systems.
The authority will draw from resources available from research organizations and its findings will be placed in the public domain.
The cabinet committee on economic affairs approved setting up of five more mega food parks in addition to 10 on going projects, involving a total govern-ment grant of Rs 250 crore.
The scheme which was approved by the government in September, 2008 envisages raising the processing of perishables in the country from the existing 6% to 20%, value addition from 20% to 35% and the share in global food trade from 1.5% to 3% by the year 2015.
The cabinet gave its nod to wind up the National Fund for Rural Development and transfer the residual funds to Council for Advancement of People’s Action and Rural Technology (CAPART), an autonomous body under the ministry of rural development.
The NFRD was set up in 1984 to mobilise funds from individuals, corporate and non-corporate bodies for undertaking rural development activities. The cabinet also approved additional Rs 71.28 crore for Bhopal gas leak victims in line with the the recommendations of the group of ministers.
Govt fuels electric cars with Rs 1 lakh incentive
New Delhi: The Society of Manufacturers of Electric Vehicles (SMEV) expects sales of electric two-wheelers to double in the coming months, on the back of a Rs 95 crore incentive scheme announced by the Ministry of New and Renewable Energy (MNRE) today.
Under the scheme, the government will provide financial incentives for each electric vehicle sold in India during the remaining part of the 11th Plan. The scheme, which will come into effect immediately, envisages incentives of up to 20 per cent on ex-factory prices of the vehicles, subject to a limit.
The cap on the incentive will be Rs 4,000 for low-speed electric two-wheelers, Rs 5,000 for high speed electric two- wheelers and Rs 1,00,000 for an electric car.
Sohinder Gill, director, SMEV said, “This could have an immediate impact on sales of electric two-wheelers. In terms of monthly sales, we expect an immediate doubling of sales.” Gill added, a meeting would soon be convened among members to pass on benefits to consumers.
“The incentive is for manufacturers to invest in research activities and enhance capacities. But we are looking at ways to partially pass on the benefits to customers”, added Gill. Electric two-wheelers are priced between Rs 25,000 and Rs 40,000 depending on the speed range.
Manufacturers would, however, have to register with SMEV for availing of the scheme. Registration would be provided on meeting eligibility norms, which include having 30 per cent indigenous content in the vehicles sold, a sizeable operation in retail and after sales outlets and a multi-point check system for accounting the retail sale.
The notification says, the government will take up “dissemination of two-wheelers, three -wheelers and four-wheelers Battery Operated Vehicles (BOV) and R&D and technology demonstration and other activities in the area of Alternative Fuels for Surface Transportation at a total cost of Rs 95 crore during the remaining period of the 11th Plan”.
In 2010-11, the government will subsidise 20,000 units of low speed electric two-wheelers and another 10,000 units of high speed two-wheelers. In 2011-12, the numbers would increase to 80,000 units and 20,000 units low-speed and high-speed two-wheelers respectively. Additionally, the government has also decided to incentivise 100 units of three-wheelers and 140 units of passenger cars in the rest of this year, which would be upped to 166 units and 700 units in the next financial year. The Indian electric two-wheeler market, at present, stands at about 85,000 units annually. Some of the leading electric two-wheeler manufacturers include Hero Electric, Avon Cycles, BSA Motors and Lohia Auto.
Under the scheme, the government will provide financial incentives for each electric vehicle sold in India during the remaining part of the 11th Plan. The scheme, which will come into effect immediately, envisages incentives of up to 20 per cent on ex-factory prices of the vehicles, subject to a limit.
The cap on the incentive will be Rs 4,000 for low-speed electric two-wheelers, Rs 5,000 for high speed electric two- wheelers and Rs 1,00,000 for an electric car.
Sohinder Gill, director, SMEV said, “This could have an immediate impact on sales of electric two-wheelers. In terms of monthly sales, we expect an immediate doubling of sales.” Gill added, a meeting would soon be convened among members to pass on benefits to consumers.
“The incentive is for manufacturers to invest in research activities and enhance capacities. But we are looking at ways to partially pass on the benefits to customers”, added Gill. Electric two-wheelers are priced between Rs 25,000 and Rs 40,000 depending on the speed range.
Manufacturers would, however, have to register with SMEV for availing of the scheme. Registration would be provided on meeting eligibility norms, which include having 30 per cent indigenous content in the vehicles sold, a sizeable operation in retail and after sales outlets and a multi-point check system for accounting the retail sale.
The notification says, the government will take up “dissemination of two-wheelers, three -wheelers and four-wheelers Battery Operated Vehicles (BOV) and R&D and technology demonstration and other activities in the area of Alternative Fuels for Surface Transportation at a total cost of Rs 95 crore during the remaining period of the 11th Plan”.
In 2010-11, the government will subsidise 20,000 units of low speed electric two-wheelers and another 10,000 units of high speed two-wheelers. In 2011-12, the numbers would increase to 80,000 units and 20,000 units low-speed and high-speed two-wheelers respectively. Additionally, the government has also decided to incentivise 100 units of three-wheelers and 140 units of passenger cars in the rest of this year, which would be upped to 166 units and 700 units in the next financial year. The Indian electric two-wheeler market, at present, stands at about 85,000 units annually. Some of the leading electric two-wheeler manufacturers include Hero Electric, Avon Cycles, BSA Motors and Lohia Auto.
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