Mumbai: Smaller cities are scoring over metros in terms of growing urbanisation, and cities such as Jalandhar, Aurangabad, Bhubhaneshwar, Agra and Raipur are believed to be the next ‘cities of opportunities’.
According to the latest Morgan Stanley research report, ‘AlphaWise City Vibrancy Index: A Guide to India’s Urbanization’, households in these cities earn more than India’s average urban household.
Centre for Monitoring Indian Economy (CMIE) pegs the quarterly average household income at about Rs 45,000 per urban household, whereas in cities such as Jalandhar, Bhubaneswar, Guwahati and Aurangabad have a quarterly average household income of above Rs 65,000.
The report measures the key drivers of urbanisation such as physical infrastructure, financial penetration, consumer services and job listings in the top 200 cities (by population) in India. The vibrancy index is aimed at helping investors evaluate companies’ strategic positioning in urban centers and monitor sector trends.
Urbanisation is important to the process of city formation and building India’s competitive strength in the global markets, feels Ridham Desai, head of India research and India strategist at Morgan Stanley. “The relative performance of components of the vibrancy index could give us insight into potential for urbanisation. For example, a city’s rate of urbanisation may be low but it may be (that) financial penetration may be high. This gives us potential for consumer services or job creation in that city,” says Desai.
Success in my Habit
Monday, February 21, 2011
India, Japan target $25-bn trade by '14
New Delhi: India and Japan have set a target of achieving $25 billion worth of bilateral trade by 2014 from the present $10.3 billion even as both countries have signed the much-awaited Comprehensive Economic Partnership Agreement (Cepa) that will see about 94 per cent tariff reduction in goods ranging from cars to shrimps and easier movement of nurses and chefs.
The deal was signed between Commerce and Industry Minister Anand Sharma and Japanese Foreign Minister Seiji Maehara in Tokyo. It was formally agreed upon by Prime Minister Manmohan Singh and his Japanese counterpart Naoto Kan last year in October.
“India stands to gain significantly through this agreement and 90 per cent of tariff lines are covered while Japan has covered 5 per cent more lines than India. The agreement has ensured that the sensitive sectors for India are fully protected. These include agriculture, fruits, spices, wheat, basmati rice, edible oils, wines and spirits and also certain categories of industrial products such as auto and auto parts,” said an official statement by the ministry of commerce and industry.
On a trade value basis, while Japan has agreed to 97 per cent tariff reduction in trade in goods, India has consented for 90 per cent duty abolition, according to the Embassy of Japan’s communiqué. The number of Japanese firms in India has doubled in last three years taking the total investments from Japan to India to more than 800 billion Yen, according to Japanese official data.
However, as a result of this deal companies from both countries such as Mitsubishi Religare Enterprises Ltd, Heavy Industries, Toshiba, Dai-Ichi, JSW, Hitachi, L&T, NTPC, Panasonic, Sony and Marubeni India Pvt would stand to gain.
Besides getting a liberal access to Japan’s $5 trillion economy, India would also now be able to access the Japanese pharmaceutical sector while imports of petrochemicals, chemicals, textile, readymade garments, cement and jewellery would be cheaper.
Japan has also agreed to give same treatment to the Indian generics in line with its domestic pharmaceutical industry.
On several farm products, forest items and marine products such as lumbers, shrimps and prawns, durian and asparagus, there would 3-6 per cent tariff reduction immediately after the agreement comes into force by April 1.
In other agriculture and marine commodities such as black tea, frozen octopus, capsicum, curry and sweet corn, Chinese yam, peach and strawberries, tariffs would be gradually reduced in the next 7-10 years.
In industrial goods, elimination of duties in auto parts such as diesel engines and gear boxes would be done over a period of 10 years. Similarly, duties would be reduced by about 94 per cent in DVD players, video cameras and steel sheets, plates and alloys within the next 5-10 years.
“As the majority of Japan’s non-agricultural tariff lines will see immediate duty elimination for exports from India, with a strategic approach, India can significantly improve its share in Japan’s total imports from the existing low level of 0.7 per cent. India also stands to benefit in services,” highlighted Secretary General, Federation of Indian Chambers of Commerce and Industry (FICCI), Amit Mitra. As part of the trade in services, both countries would soon be establishing a social-security agreement, specifically for Indian qualified nurses and Japanese certified care-workers. This agreement is expected to be signed by 2014, the consultations for which have already begun this year in January.
Under Cepa, Japan has also agreed to provide liberalised access for Indian professionals and service providers such as chefs, nurses, English language teachers, accountants, advertisers and tourist guides.
“The trade relationship between our two countries has been far below its true potential. We are certain that Cepa will lead to a quantum increase in bilateral trade and investment flows, by relaxing barriers to trade in goods, services and movement of natural persons, besides enhanced cooperation on protection of intellectual property,” said President, Confederation of Indian Industry (CII), Hari S Bhartia from Tokyo.
Both countries would be creating a sub-committee that would explore the feasibility of a Mutual Recognition Arrangement (MRAs) for certain specific sectors such as electrical products, telecommunications and radio equipment among others. The sub-committee would be meeting within three months from the implementation of Cepa.
India and Japan have also agreed to the creation of a joint revolving fund of $9 billion for kick-starting the ambitious 1483-km-long Delhi-Mumbai Industrial Corridor Project running through six states of Delhi, Uttar Pradesh, Haryana, Rajasthan, Gujarat and Maharashtra.
The India-Japan global partnership summit would also take place in Tokyo from September 5-7 to promote collaboration and increase investments between both the countries.
The deal was signed between Commerce and Industry Minister Anand Sharma and Japanese Foreign Minister Seiji Maehara in Tokyo. It was formally agreed upon by Prime Minister Manmohan Singh and his Japanese counterpart Naoto Kan last year in October.
“India stands to gain significantly through this agreement and 90 per cent of tariff lines are covered while Japan has covered 5 per cent more lines than India. The agreement has ensured that the sensitive sectors for India are fully protected. These include agriculture, fruits, spices, wheat, basmati rice, edible oils, wines and spirits and also certain categories of industrial products such as auto and auto parts,” said an official statement by the ministry of commerce and industry.
On a trade value basis, while Japan has agreed to 97 per cent tariff reduction in trade in goods, India has consented for 90 per cent duty abolition, according to the Embassy of Japan’s communiqué. The number of Japanese firms in India has doubled in last three years taking the total investments from Japan to India to more than 800 billion Yen, according to Japanese official data.
However, as a result of this deal companies from both countries such as Mitsubishi Religare Enterprises Ltd, Heavy Industries, Toshiba, Dai-Ichi, JSW, Hitachi, L&T, NTPC, Panasonic, Sony and Marubeni India Pvt would stand to gain.
Besides getting a liberal access to Japan’s $5 trillion economy, India would also now be able to access the Japanese pharmaceutical sector while imports of petrochemicals, chemicals, textile, readymade garments, cement and jewellery would be cheaper.
Japan has also agreed to give same treatment to the Indian generics in line with its domestic pharmaceutical industry.
On several farm products, forest items and marine products such as lumbers, shrimps and prawns, durian and asparagus, there would 3-6 per cent tariff reduction immediately after the agreement comes into force by April 1.
In other agriculture and marine commodities such as black tea, frozen octopus, capsicum, curry and sweet corn, Chinese yam, peach and strawberries, tariffs would be gradually reduced in the next 7-10 years.
In industrial goods, elimination of duties in auto parts such as diesel engines and gear boxes would be done over a period of 10 years. Similarly, duties would be reduced by about 94 per cent in DVD players, video cameras and steel sheets, plates and alloys within the next 5-10 years.
“As the majority of Japan’s non-agricultural tariff lines will see immediate duty elimination for exports from India, with a strategic approach, India can significantly improve its share in Japan’s total imports from the existing low level of 0.7 per cent. India also stands to benefit in services,” highlighted Secretary General, Federation of Indian Chambers of Commerce and Industry (FICCI), Amit Mitra. As part of the trade in services, both countries would soon be establishing a social-security agreement, specifically for Indian qualified nurses and Japanese certified care-workers. This agreement is expected to be signed by 2014, the consultations for which have already begun this year in January.
Under Cepa, Japan has also agreed to provide liberalised access for Indian professionals and service providers such as chefs, nurses, English language teachers, accountants, advertisers and tourist guides.
“The trade relationship between our two countries has been far below its true potential. We are certain that Cepa will lead to a quantum increase in bilateral trade and investment flows, by relaxing barriers to trade in goods, services and movement of natural persons, besides enhanced cooperation on protection of intellectual property,” said President, Confederation of Indian Industry (CII), Hari S Bhartia from Tokyo.
Both countries would be creating a sub-committee that would explore the feasibility of a Mutual Recognition Arrangement (MRAs) for certain specific sectors such as electrical products, telecommunications and radio equipment among others. The sub-committee would be meeting within three months from the implementation of Cepa.
India and Japan have also agreed to the creation of a joint revolving fund of $9 billion for kick-starting the ambitious 1483-km-long Delhi-Mumbai Industrial Corridor Project running through six states of Delhi, Uttar Pradesh, Haryana, Rajasthan, Gujarat and Maharashtra.
The India-Japan global partnership summit would also take place in Tokyo from September 5-7 to promote collaboration and increase investments between both the countries.
Indian-origin doctor Srinivasan Madhusudan given UK honour
New Delhi: Srinivasan Madhusudan, a doctor of Indian-origin, has received the Goulstonian lectureship for 2011 by the Royal College of Physicians, London. The lecturership, which dates back to 1635, is one of the most prestigious ones, and considered as the highest honour that can be awarded for academic excellence.
Dr Madhusudan received his Bachelor of Medicine and Bachelor of Surgery (MBBS) from Dr MGR Medical University, Tamil Nadu, in 1994. He currently serves as the Clinical Associate Professor in Medical Oncology at the School of Molecular Medical Sciences and is a Consultant Medical Oncologist at Nottingham Cancer Centre .
Dr Madhusudan will deliver the lecture later in 2011. The lecture will be on his translational research targeting DNA base excision repair, an innovative approach for personalised cancer therapy.
Dr Madhusudan received his Bachelor of Medicine and Bachelor of Surgery (MBBS) from Dr MGR Medical University, Tamil Nadu, in 1994. He currently serves as the Clinical Associate Professor in Medical Oncology at the School of Molecular Medical Sciences and is a Consultant Medical Oncologist at Nottingham Cancer Centre .
Dr Madhusudan will deliver the lecture later in 2011. The lecture will be on his translational research targeting DNA base excision repair, an innovative approach for personalised cancer therapy.
Indian doctor awarded for community service
New York: Dr Shuvendu Sen, MD has recently received the 2011 Oscar Edwards E. Award from American College of Physicians (ACP) in North Carolina for outstanding contributions to Community. Presently, attending Physician of Internal Medicine at Betsy Johnson Hospital, North Carolina, Dr Sen has been instrumental in the implementation of a voluntary organization called Project Access in his County for the treatment of uninsured and low income population.
Sen was awarded at the Washington Inn, Duke University, North Carolina by the ACP Governor Byron Hoffman Jr, MD on Jan 28th,2011. He is currently serving as the Chief Editor of a medical text book titled Principles of Clinical Medicine, to be published in 2012.
Sen was awarded at the Washington Inn, Duke University, North Carolina by the ACP Governor Byron Hoffman Jr, MD on Jan 28th,2011. He is currently serving as the Chief Editor of a medical text book titled Principles of Clinical Medicine, to be published in 2012.
Asba now mandatory for institutions, HNIs
Mumbai: In his last press conference as chairman of the Securities & Exchange Board of India, C B Bhave extended the scope of some market reforms he initiated when entering office three years ago.
Asba, or applications supported by blocked amount, has been made mandatory for qualified institutional buyers and high net-worth investors when applying for public or rights issues. Bhave had introduced Asba in the second board meet that he chaired in May 2008 after assuming office in February that year.
“After taking into account the feedback received from market participants, it has been decided that Asba will be mandatory for the non-retail segment from May 1 onwards,” said Bhave while addressing the media here on Monday.
Under Asba, an applicant can submit a bid, even as the money remains in the bank account. The money is debited only at the time shares are allotted. This eliminates delays related to refunds, speeding up the whole process. While the facility was initially available only for retail applicants, it was extended to institutional investors in April 2010.
When asked if Asba would be made mandatory for retail investors, too, Bhave said, “A decision would be taken based on a review of the current change.”
Expectedly, the media interaction after the Sebi board meeting on Mon day started off on a nostalgic note. “All of us must remember that Sebi is an institution. Chairmen come and chairmen go. Sebi as an institution has only progressed since 1992, when it was first formed. This is a journey of the institution,” said the seventh chairman of the market regulator. Bhave is due to retire on February 17.
Sebi does not want interested shareholders, including promoters, to vote on special resolutions and will forward this recommendation to the ministry of company affairs. The recommendation, which has its roots in the Satyam fraud, calls for amending Clause 166 of the Companies Bill, 2009.
“You may recall, during the talks of amalgamation of Maytas and Satyam, questions were raised on whether Satyam shareholders, who are interested in this transaction, should be allowed to vote or not. That amalgamation never took place, but this point was definitely raised,” explained Bhave.
“This will protect small and diversified shareholders in listed companies from abusive related-party transactions. This view was taken based on the learning from the investigation into the matter of Satyam,” said a Sebi release.
Sebi has also decided to bring in uniformity in the period of initial registration granted to market participants. The initial registration will be for a period of five years.
Thereafter, based on a performance assessment, permanent registration will be granted. “(Intermediaries) should not be required to come time and again,” said Bhave, while explaining the rationale.
Sebi has also decided the currency derivatives segment would have self-clearing members that have a net worth of Rs 5 crore.
The Sebi board decided to defer a final decision on the proposed Takeover Code, as the government is still in the process of talking to industry participants on some recommendations. The Takeover Code was sent to Sebi in July 2010.
The board also did not take up the pending issue of the Bimal Jalan report, as Sebi is still not through analysing feedback from market participants. “Comments have come to us. These comments are being collated by the department. That issue was not taken at this meeting at all,” he said.
Asba, or applications supported by blocked amount, has been made mandatory for qualified institutional buyers and high net-worth investors when applying for public or rights issues. Bhave had introduced Asba in the second board meet that he chaired in May 2008 after assuming office in February that year.
“After taking into account the feedback received from market participants, it has been decided that Asba will be mandatory for the non-retail segment from May 1 onwards,” said Bhave while addressing the media here on Monday.
Under Asba, an applicant can submit a bid, even as the money remains in the bank account. The money is debited only at the time shares are allotted. This eliminates delays related to refunds, speeding up the whole process. While the facility was initially available only for retail applicants, it was extended to institutional investors in April 2010.
When asked if Asba would be made mandatory for retail investors, too, Bhave said, “A decision would be taken based on a review of the current change.”
Expectedly, the media interaction after the Sebi board meeting on Mon day started off on a nostalgic note. “All of us must remember that Sebi is an institution. Chairmen come and chairmen go. Sebi as an institution has only progressed since 1992, when it was first formed. This is a journey of the institution,” said the seventh chairman of the market regulator. Bhave is due to retire on February 17.
Sebi does not want interested shareholders, including promoters, to vote on special resolutions and will forward this recommendation to the ministry of company affairs. The recommendation, which has its roots in the Satyam fraud, calls for amending Clause 166 of the Companies Bill, 2009.
“You may recall, during the talks of amalgamation of Maytas and Satyam, questions were raised on whether Satyam shareholders, who are interested in this transaction, should be allowed to vote or not. That amalgamation never took place, but this point was definitely raised,” explained Bhave.
“This will protect small and diversified shareholders in listed companies from abusive related-party transactions. This view was taken based on the learning from the investigation into the matter of Satyam,” said a Sebi release.
Sebi has also decided to bring in uniformity in the period of initial registration granted to market participants. The initial registration will be for a period of five years.
Thereafter, based on a performance assessment, permanent registration will be granted. “(Intermediaries) should not be required to come time and again,” said Bhave, while explaining the rationale.
Sebi has also decided the currency derivatives segment would have self-clearing members that have a net worth of Rs 5 crore.
The Sebi board decided to defer a final decision on the proposed Takeover Code, as the government is still in the process of talking to industry participants on some recommendations. The Takeover Code was sent to Sebi in July 2010.
The board also did not take up the pending issue of the Bimal Jalan report, as Sebi is still not through analysing feedback from market participants. “Comments have come to us. These comments are being collated by the department. That issue was not taken at this meeting at all,” he said.
India ratifies double taxation avoidance pacts with SAARC
NEW DELHI: India has ratified the new Double Taxation Avoidance Agreements with SAARC nations taking forward its efforts to track and unearth black money. The revised treaties will come into effect from next fiscal, according to a government notification.
"The central government hereby directs that all the provisions of the said agreement shall be given effect to in the Union of India with effect from 1st day of April, 2011," the official government Gazette notification said. According to the notification, the new agreement will apply to persons who are residents of one or more member states.
However, the notification said SAARC limited multilateral agreement on avoidance of double taxation and mutual administrative assistance in tax matters shall be applicable only in the member states where an adequate direct tax structure is in place. "In case of a member state where such a structure is not in place, this agreement shall become effective from the date on which such a member state introduces a proper direct tax structure and notifies the SAARC secretariat to this effect," the gazette notification said.
India is in the process of negotiating DTAA with 65 countries. This is to broaden the scope of article concerning exchange of information, specifically regarding banking and taxpayers not covered earlier.
Finance minister Pranab Mukherjee had recently unveiled a five pronged strategy to check and curb black money in the country. He said DTAA and Exchange of Taxation Information Agreement are two instruments under which information can be obtained and that the government has already amended pacts with 23 countries to get information from various banks.
"The central government hereby directs that all the provisions of the said agreement shall be given effect to in the Union of India with effect from 1st day of April, 2011," the official government Gazette notification said. According to the notification, the new agreement will apply to persons who are residents of one or more member states.
However, the notification said SAARC limited multilateral agreement on avoidance of double taxation and mutual administrative assistance in tax matters shall be applicable only in the member states where an adequate direct tax structure is in place. "In case of a member state where such a structure is not in place, this agreement shall become effective from the date on which such a member state introduces a proper direct tax structure and notifies the SAARC secretariat to this effect," the gazette notification said.
India is in the process of negotiating DTAA with 65 countries. This is to broaden the scope of article concerning exchange of information, specifically regarding banking and taxpayers not covered earlier.
Finance minister Pranab Mukherjee had recently unveiled a five pronged strategy to check and curb black money in the country. He said DTAA and Exchange of Taxation Information Agreement are two instruments under which information can be obtained and that the government has already amended pacts with 23 countries to get information from various banks.
Ministry releases new guidelines for eco-zones around national parks
New Delhi: The environment ministry has come out with new guidelines to create eco-sensitive zones (ESZs) around the protected areas to prevent ecological damages caused due to developmental activities around national parks and wildlife sanctuaries.
The new ESZ guidelines, declared by the ministry on February 9, would also ensure that these areas act as “shock absorbers” to the protected areas by regulating and managing the activities around such areas. The guidelines were updated on the ministry website today. “It is prerequisite that an inventory of different land-use patterns and the different types of activities, types and number of industries operating around each of the protected areas be made,” the ministry said.
For this purpose, the ministry has asked all states to constitute a committee comprising the wildlife warden, an ecologist and a revenue department official of the area concerned to suggest the requirement of an eco-sensitive zone and its extent.
The panel could also suggest the best methods to manage such zones and broad-based thematic activities to be included in the master plan for the areas, which have been classified as prohibited, restricted with safeguards and permissible. The guidelines said activities, including commercial mining, setting of saw mills and industries causing pollution, commercial use of firewood and major hydropower projects, are prohibited in such areas.
It also prohibits tourism activities like flying over protected areas in an aircraft or hot air balloon, and discharge of effluents and solid waste in natural water bodies or terrestrial areas.
Felling of trees, drastic change in agriculture systems and commercial use of natural water resources, including groundwater harvesting and setting up of hotels and resorts, are the activities regulated in the areas.
Activities permitted in the areas include ongoing agriculture and horticulture practices by local communities, rainwater harvesting, organic farming, adoption of green technology and use of renewable energy sources.
The width of the ESZ and type of regulation may vary from protected area to area. However, as a general principle, the width of the ESZ could go up to 10 kms around the protected area. The ministry said all states and union territories were asked to forward site-specific proposals to set up ESZs. But only few states have forwarded the proposals. “This ministry after careful consideration, has therefore, decided to frame guidelines to facilitate the state/union territory for declaration of eco-sensitive zones around national parks and wild life sanctuaries.”
The new ESZ guidelines, declared by the ministry on February 9, would also ensure that these areas act as “shock absorbers” to the protected areas by regulating and managing the activities around such areas. The guidelines were updated on the ministry website today. “It is prerequisite that an inventory of different land-use patterns and the different types of activities, types and number of industries operating around each of the protected areas be made,” the ministry said.
For this purpose, the ministry has asked all states to constitute a committee comprising the wildlife warden, an ecologist and a revenue department official of the area concerned to suggest the requirement of an eco-sensitive zone and its extent.
The panel could also suggest the best methods to manage such zones and broad-based thematic activities to be included in the master plan for the areas, which have been classified as prohibited, restricted with safeguards and permissible. The guidelines said activities, including commercial mining, setting of saw mills and industries causing pollution, commercial use of firewood and major hydropower projects, are prohibited in such areas.
It also prohibits tourism activities like flying over protected areas in an aircraft or hot air balloon, and discharge of effluents and solid waste in natural water bodies or terrestrial areas.
Felling of trees, drastic change in agriculture systems and commercial use of natural water resources, including groundwater harvesting and setting up of hotels and resorts, are the activities regulated in the areas.
Activities permitted in the areas include ongoing agriculture and horticulture practices by local communities, rainwater harvesting, organic farming, adoption of green technology and use of renewable energy sources.
The width of the ESZ and type of regulation may vary from protected area to area. However, as a general principle, the width of the ESZ could go up to 10 kms around the protected area. The ministry said all states and union territories were asked to forward site-specific proposals to set up ESZs. But only few states have forwarded the proposals. “This ministry after careful consideration, has therefore, decided to frame guidelines to facilitate the state/union territory for declaration of eco-sensitive zones around national parks and wild life sanctuaries.”
Saturday, February 19, 2011
Etisalat keeps option to leave DB venture open
Etisalat, the $8.7 billion telecom major based in the UAE, may exit the joint venture it has with Dynamix Balawas (DB) group depending on the outcome of the investigation into the Rs 1,76,000 crore 2G spectrum scam. Etisalat is simultaneously in negotiations with telecom operators like Idea Cellular of Aditya Birla group and Reliance Communications (RCom) to pick up equity stake in either of them. Both of them have 3G spectrum. One thing that Etisalat has signalled is that it will continue to stay put in the Indian telecom market that offers opportunities as well as challenges.
Nokia Siemens Networks leads Indian 3G market
Nokia Siemens Networks has emerged as the leading 3G mobile infrastructure and services vendor in India with 30% market share. The company has won deals from Aircel, Bharti Airtel, Idea Cellular, Tata Teleservices and Vodafone for the deployment of 3G networks in twenty of the country's telecom circles. With the rapid growth of smart mobile devices in India, a strong 3G infrastructure will boost the country's broadband penetration. Nokia Siemens Networks recently demonstrated the world's first TD-LTE video call on 2.3GHz using commercial hardware in its Bengaluru R&D centre.
Thursday, February 10, 2011
Suzlon gets $1.28b order from Caparo
Mumbai: Suzlon Energy has received an order worth $1.28 billion for supply of wind turbines aggregating to 1,000 MW to Caparo Energy (India), the Pune-headquartered company said in a statement on Friday.
Caparo Energy, an independent power producer, plans to commission 500 MW by March 2012, and another 500 MW by March 2013 in India.
"Price of the turbines for the first 500 MW is fixed, while the next 500 MW would have index-based price so that cost rise can be absorbed," Chief Financial Officer Robin Banerjee told ET.
Caparo's order comes at a time when Suzlon is struggling with order inflow as global demand for wind energy continues to be muted.
Caparo Energy, an independent power producer, plans to commission 500 MW by March 2012, and another 500 MW by March 2013 in India.
"Price of the turbines for the first 500 MW is fixed, while the next 500 MW would have index-based price so that cost rise can be absorbed," Chief Financial Officer Robin Banerjee told ET.
Caparo's order comes at a time when Suzlon is struggling with order inflow as global demand for wind energy continues to be muted.
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