New Delhi: Indian economy expAnded 8.2% in the third quarter of the current financial year on the back of robust growth in agriculture and services sectors . The growth number was in line with expectations, but lower than 8.9% growth recorded in the previous two quarters, government data showed.
Farm output grew 8.9% over the year-ago period, boosted by strong monsoon rains, while the manufacturing sector experienced a slowdown at 5.6%. The decline in investments, which grew 5.99% in the quarter compared with 17.84% in the previous quarter, remained a concern.
Success in my Habit
Tuesday, March 8, 2011
Core sector output rises 7.1% in Jan
New Delhi: The output of the country’s six core infrastructure industries grew 7.1 per cent in January, on the back of healthy production of crude oil, petroleum refinery products and electricity.
The six core sectors — crude oil, petroleum refinery products, coal, electricity, cement and finished steel — had expanded by 9.8 per cent in the same month last year.
In December 2010, the output of these infrastructure industries rose by 6.1 per cent. The six core industries account for 26.68 per cent of the country’s total industrial output. Petroleum refinery and crude oil output grew by 8.7 per cent and 10.8 per cent respectively in January, up from 3.8 per cent and 9.8 per cent in the same period last year, a statement released by the Ministry of Commerce and Industry showed.
Electricity generation grew by a healthy 9.3 per cent, compared to 6.4 per cent growth in the corresponding month last year, the data said. However, coal output dropped by 1.2 per cent as against 5.4 per cent expansion during the same month last year.
The six core sectors — crude oil, petroleum refinery products, coal, electricity, cement and finished steel — had expanded by 9.8 per cent in the same month last year.
In December 2010, the output of these infrastructure industries rose by 6.1 per cent. The six core industries account for 26.68 per cent of the country’s total industrial output. Petroleum refinery and crude oil output grew by 8.7 per cent and 10.8 per cent respectively in January, up from 3.8 per cent and 9.8 per cent in the same period last year, a statement released by the Ministry of Commerce and Industry showed.
Electricity generation grew by a healthy 9.3 per cent, compared to 6.4 per cent growth in the corresponding month last year, the data said. However, coal output dropped by 1.2 per cent as against 5.4 per cent expansion during the same month last year.
India in top 10 manufacturers list
New Delhi: India was amongst the top 10 manufacturers in 2010 and together with Brazil and China accounted for a third of the world manufacturing output, up from one-fifth 10 years ago, said a United Nations report .
"India is listed as one of the top 10 manufacturers of the world in 2010," the international yearbook of industrial statistics 2011, published by the United Nations Industrial Development Organisation (UNIDO) said.
India along with other leading developing economies such as Brazil and China showed strong performance in economic growth in 2010 and the manufacturing value added of all these countries grew by over 10% last year, the agency said.
The share of these three countries in world manufacturing output reached 32% compared to 20% 10 years ago, the report, released in Vienna on Thursday, added.
World manufacturing value added, or MVA, rose 5.3% in 2010, as per the agency's estimate.
The MVA of industrialised countries was up 3.4% in 2010.
India topped developing countries (excluding China) in production of textiles, chemical products, basic metals, general machinery and equipment, and electrical machinery.
It overtook Brazil in the production of motor vehicles and now ranks second among developing countries after Mexico.
However, its Asian competitors Thailand, Malaysia and the Philippines are ahead in the production of electronic goods such as computers and office equipment, radio, television and other communication equipment.
"India is listed as one of the top 10 manufacturers of the world in 2010," the international yearbook of industrial statistics 2011, published by the United Nations Industrial Development Organisation (UNIDO) said.
India along with other leading developing economies such as Brazil and China showed strong performance in economic growth in 2010 and the manufacturing value added of all these countries grew by over 10% last year, the agency said.
The share of these three countries in world manufacturing output reached 32% compared to 20% 10 years ago, the report, released in Vienna on Thursday, added.
World manufacturing value added, or MVA, rose 5.3% in 2010, as per the agency's estimate.
The MVA of industrialised countries was up 3.4% in 2010.
India topped developing countries (excluding China) in production of textiles, chemical products, basic metals, general machinery and equipment, and electrical machinery.
It overtook Brazil in the production of motor vehicles and now ranks second among developing countries after Mexico.
However, its Asian competitors Thailand, Malaysia and the Philippines are ahead in the production of electronic goods such as computers and office equipment, radio, television and other communication equipment.
Ameya Pawar becomes the first Indian-American to be elected to Chicago City Council
New Delhi: Ameya Pawar has become the first Indian-American to be elected to Chicago City Council. He has been elected as the alderman for the 47th Ward on Chicago's North Side.
Thirty year old Pawar won with 50 per cent of the vote. Pawar has committed to donate US$ 50,000 of his salary to address the city's deficit or offer community grants, and has promised to have an elected ward council to guide his actions at City Hall.
Pawar said, "We have a lot of issues that we have to work through. But it's what you do in the private sector, non-profit sector when you have problems or issues, you bring in new eyes to a set of problems and you work on them together."
Pawar, the son of Indian immigrants, said he stands on the shoulders of other prominent Indian Americans as well as his parents and grandparents. He is an emergency preparedness expert working on his third master's degree.
Thirty year old Pawar won with 50 per cent of the vote. Pawar has committed to donate US$ 50,000 of his salary to address the city's deficit or offer community grants, and has promised to have an elected ward council to guide his actions at City Hall.
Pawar said, "We have a lot of issues that we have to work through. But it's what you do in the private sector, non-profit sector when you have problems or issues, you bring in new eyes to a set of problems and you work on them together."
Pawar, the son of Indian immigrants, said he stands on the shoulders of other prominent Indian Americans as well as his parents and grandparents. He is an emergency preparedness expert working on his third master's degree.
Indian-American trade expert appointed to key US export committee
New Delhi: Chiradeep Sengupta, an eminent Indian-American trade expert, has been appointed to an important US export committee to provide "invaluable" advice on exports. Sengupta of Federal Express will be responsible for providing his advice on the export control reform initiative of the Obama administration, which targets doubling the country's exports in five years.
Commerce Secretary Gary Locke appointed Sengupta as a member to the President's Export Council Subcommittee on Export Administration (PECSEA), which will advise the commerce department on the administration's export control reform initiative.
Locke said, "The PECSEA will provide invaluable advice as we continue to enhance our national security through the President's reform efforts."
PECSEA was chartered by the department of commerce to advise it on US policies encouraging trade with all countries with which the United States had diplomatic or trading relations, as well as of policies governing trade for national security, foreign policy and short supply reasons
Commerce Secretary Gary Locke appointed Sengupta as a member to the President's Export Council Subcommittee on Export Administration (PECSEA), which will advise the commerce department on the administration's export control reform initiative.
Locke said, "The PECSEA will provide invaluable advice as we continue to enhance our national security through the President's reform efforts."
PECSEA was chartered by the department of commerce to advise it on US policies encouraging trade with all countries with which the United States had diplomatic or trading relations, as well as of policies governing trade for national security, foreign policy and short supply reasons
CCI gets power to approve big M&As
New Delhi: The Competition Commission of India will now be able to vet and approve big mergers and acquisitions in the country, with the government notifying the key provisions of the Competition Act on Friday.
The provisions, Sections 5 and 6, would grant the competition watchdog the powers to scrutinise amalgamation proposals of companies with a threshold of 1,500 crore. The CCI would take a maximum of 180 days to vet mergers.
Corporate affairs secretary DK Mittal, however, clarified that this would not cover mergers in the banking sector once the Banking Amendment Bill gets passed in Parliament. The Banking Amendment Bill, which proposes to keep banking sector M&As out of the purview of the Competition Commission of India (CCI), was passed by the cabinet on Thursday and will be placed before Parliament in this session.
CCI chairman Dhanendra Kumar told ET that the watchdog expects to clear all such M&A proposals as quickly as possible. "This would immensely help M&A activity in the country as there will be a legal certainty and ensure accelerated growth in the economy," he said.
Kumar said he expected only 40-50 such proposals as it would be looking at acquisitions with combined assets of 1,000 crore or more, or combined turnover of 3,000 crore or more.
Further, the target company's net assets have to be a minimum of 200 crore or turnover of 600 crore to attaract CCI's intervention.
The provisions, Sections 5 and 6, would grant the competition watchdog the powers to scrutinise amalgamation proposals of companies with a threshold of 1,500 crore. The CCI would take a maximum of 180 days to vet mergers.
Corporate affairs secretary DK Mittal, however, clarified that this would not cover mergers in the banking sector once the Banking Amendment Bill gets passed in Parliament. The Banking Amendment Bill, which proposes to keep banking sector M&As out of the purview of the Competition Commission of India (CCI), was passed by the cabinet on Thursday and will be placed before Parliament in this session.
CCI chairman Dhanendra Kumar told ET that the watchdog expects to clear all such M&A proposals as quickly as possible. "This would immensely help M&A activity in the country as there will be a legal certainty and ensure accelerated growth in the economy," he said.
Kumar said he expected only 40-50 such proposals as it would be looking at acquisitions with combined assets of 1,000 crore or more, or combined turnover of 3,000 crore or more.
Further, the target company's net assets have to be a minimum of 200 crore or turnover of 600 crore to attaract CCI's intervention.
FM allows foreign access, gives MFs reason to smile
Mumbai: The Indian mutual fund industry, reeling under strict regulatory norms related to commissions and disclosures, has finally got a reason to smile. Finance Minister Pranab Mukherjee, while presenting the Union Budget 2011-12, has allowed fund houses to tap foreign nationals for investing in equity schemes.
“To liberalise the portfolio investment route, it has been decided to permit Sebi-registered mutual funds to accept subscriptions from foreign investors who meet the KYC (Know Your Customer) requirements for equity schemes,” Mukherjee said while presenting the Budget in Parliament. “This would enable Indian mutual funds to have a direct access to foreign investors and widen the class of foreign investors in the Indian equity market, he added.
It is widely believed that the move would lead to a lot of mid-sized foreign funds and wealthy individuals looking at the Indian equity market more seriously. According to the current norms, foreign investors need to first register with the Securities and Exchange Board of India (Sebi) before investing in the domestic equity markets. As a result, mid-sized and smaller funds which did not have a significant India allocation chose alternative investment avenues, including offshore funds and participatory notes (PNs). Going forward, they just need to comply with the KYC norms and start investing.
Experts feel the government’s initiative could prove to be a “game-changer” for the Indian fund industry, as this would pave the way for large global investors to invest directly into mutual fund schemes.
“To liberalise the portfolio investment route, it has been decided to permit Sebi-registered mutual funds to accept subscriptions from foreign investors who meet the KYC (Know Your Customer) requirements for equity schemes,” Mukherjee said while presenting the Budget in Parliament. “This would enable Indian mutual funds to have a direct access to foreign investors and widen the class of foreign investors in the Indian equity market, he added.
It is widely believed that the move would lead to a lot of mid-sized foreign funds and wealthy individuals looking at the Indian equity market more seriously. According to the current norms, foreign investors need to first register with the Securities and Exchange Board of India (Sebi) before investing in the domestic equity markets. As a result, mid-sized and smaller funds which did not have a significant India allocation chose alternative investment avenues, including offshore funds and participatory notes (PNs). Going forward, they just need to comply with the KYC norms and start investing.
Experts feel the government’s initiative could prove to be a “game-changer” for the Indian fund industry, as this would pave the way for large global investors to invest directly into mutual fund schemes.
FIIs allowed to invest $20 b more in bonds of infrastructure cos
New Delhi: In keeping with its thrust on infrastructure development and also deepening the corporate debt market, the Centre has hiked the foreign institutional investors (FII) investment limit in corporate bonds to $40 billion.
It represents an increase of $20 billion over the earlier limit of $20 billion under this window.
The additional limit of $20 billion will be available to FIIs only for investments in corporate bonds issued by companies in the infrastructure sector, the Finance Minister, Mr Pranab Mukherjee, said in his Budget speech today.
Also, the investments would have to be made in bonds with residual maturity of over five years.
This move would in effect take the overall limit for FII investment in corporate bonds of companies in the infrastructure sector to $25 billion.
Prior to this announcement, the total FII investment limit in corporate bonds was pegged at $20 billion, including a $5-billion sub-limit for bonds with a residual maturity of over five years and issued by companies in the infrastructure sector.
Meanwhile, Mr Mukherjee today announced that FIIs would also be permitted to invest in unlisted bonds with a minimum lock-in period of three years. This is being allowed as most of the infrastructure companies are organised in the form of special purpose vehicles, it was pointed out.
However, the FIIs will be allowed to trade among themselves during the lock-in period.
To enable higher FII investment flows into the corporate debt market, the Centre had in January 2009, at the peak of the financial crisis, raised the FII investment cap in corporate bonds to $15 billion from $6 billion.
This limit was further hiked by $5 billion in September 2010 but with a rider that this incremental limit be invested in securities with a residual maturity of over five years issued by companies in the infrastructure sector.
This move was intended to ensure greater participation of FIIs on a longer term basis and also enable the flow of long-term resources to the infrastructure sector.
It represents an increase of $20 billion over the earlier limit of $20 billion under this window.
The additional limit of $20 billion will be available to FIIs only for investments in corporate bonds issued by companies in the infrastructure sector, the Finance Minister, Mr Pranab Mukherjee, said in his Budget speech today.
Also, the investments would have to be made in bonds with residual maturity of over five years.
This move would in effect take the overall limit for FII investment in corporate bonds of companies in the infrastructure sector to $25 billion.
Prior to this announcement, the total FII investment limit in corporate bonds was pegged at $20 billion, including a $5-billion sub-limit for bonds with a residual maturity of over five years and issued by companies in the infrastructure sector.
Meanwhile, Mr Mukherjee today announced that FIIs would also be permitted to invest in unlisted bonds with a minimum lock-in period of three years. This is being allowed as most of the infrastructure companies are organised in the form of special purpose vehicles, it was pointed out.
However, the FIIs will be allowed to trade among themselves during the lock-in period.
To enable higher FII investment flows into the corporate debt market, the Centre had in January 2009, at the peak of the financial crisis, raised the FII investment cap in corporate bonds to $15 billion from $6 billion.
This limit was further hiked by $5 billion in September 2010 but with a rider that this incremental limit be invested in securities with a residual maturity of over five years issued by companies in the infrastructure sector.
This move was intended to ensure greater participation of FIIs on a longer term basis and also enable the flow of long-term resources to the infrastructure sector.
Friday, March 4, 2011
Mobile phone towers to be powered by solar energy: Minister
NEW DELHI: The Government is considering use of solar energy to tide over power deficiency impeding installation of mobile phone towers in tribal and hilly areas, the Rajya Sabha was informed today.
"We have to solarise the mobile towers," Minister of State of IT and Telecommunication Sachin Pilot said during Question Hour.
He said power shortage in some states was impeding installation of these towers there and added that government was looking at various options, including public private partnership, to make up for the deficiency.
The minister said while 604 towers of BSNL installed in tribal areas of Orissa have already been activated, 46 of 1023 towers in Jharkhand and 107 out of 759 towers in Chhattisgarh are still be be activated.
He assured members that this will be done by June 2011. Pilot said 98 per cent villages in Jharkhand have already been given rural telephone connections besides some satellite phones.
Replying to a supplementaries about decline in the number of land line telephone connections, Pilot said the phenomenon is due to abundant availability of mobile telephony.
He said telephone density in the country has risen to 66 per cent from a mere 7 percent in 2004.
The minister acknowledged there are some constraints in installation of mobile towers in the North East because of tough terrain. He said the government has asked BSNL to install towers there as private operators are hesitant to go
"We have to solarise the mobile towers," Minister of State of IT and Telecommunication Sachin Pilot said during Question Hour.
He said power shortage in some states was impeding installation of these towers there and added that government was looking at various options, including public private partnership, to make up for the deficiency.
The minister said while 604 towers of BSNL installed in tribal areas of Orissa have already been activated, 46 of 1023 towers in Jharkhand and 107 out of 759 towers in Chhattisgarh are still be be activated.
He assured members that this will be done by June 2011. Pilot said 98 per cent villages in Jharkhand have already been given rural telephone connections besides some satellite phones.
Replying to a supplementaries about decline in the number of land line telephone connections, Pilot said the phenomenon is due to abundant availability of mobile telephony.
He said telephone density in the country has risen to 66 per cent from a mere 7 percent in 2004.
The minister acknowledged there are some constraints in installation of mobile towers in the North East because of tough terrain. He said the government has asked BSNL to install towers there as private operators are hesitant to go
Sibal to meet telcos next week to discuss spectrum issues, M&A
NEW DELHI: Telecom Minister Kapil Sibal is likely to meet industry players next week in order to reach a consensus on issues, including licencing, spectrum allocation, spectrum sharing and mergers and acquisition.
"The Minister will meet the telecom industry players next week on March 8 in order to hold consultations to evolve a "clear and transparent" regime covering licencing, spectrum allocation, tariffs/pricing, linkage with roll-out performance, spectrum sharing, trading and, mergers and acquisition," a source in the know said.
The meeting is part of Sibal's efforts to achieve the 100-day plan for reforms in the telecoms sector in consultation with the industry.
Executives from telecom companies like Bharti airtel , Vodafone , Reliance Communications are likely to be the part of the meeting, source added.
Sibal had in January this year announced formulation of a new and comprehensive National Telecom Policy 2011.
The Minister will also discuss a series of proposals on spectrum such as its pricing, capping the amount of airwaves a telco can hold, methodology for awarding additional spectrum and reworking the usage fee for this resource.
Sharing of spectrum and reframing of this resource is another prominent item on the agenda.
Further, other proposals involve initiating discussions on renewal of mobile permits and replacing the rollout obligations with a new methodology to measure if companies are extending their networks
"The Minister will meet the telecom industry players next week on March 8 in order to hold consultations to evolve a "clear and transparent" regime covering licencing, spectrum allocation, tariffs/pricing, linkage with roll-out performance, spectrum sharing, trading and, mergers and acquisition," a source in the know said.
The meeting is part of Sibal's efforts to achieve the 100-day plan for reforms in the telecoms sector in consultation with the industry.
Executives from telecom companies like Bharti airtel , Vodafone , Reliance Communications are likely to be the part of the meeting, source added.
Sibal had in January this year announced formulation of a new and comprehensive National Telecom Policy 2011.
The Minister will also discuss a series of proposals on spectrum such as its pricing, capping the amount of airwaves a telco can hold, methodology for awarding additional spectrum and reworking the usage fee for this resource.
Sharing of spectrum and reframing of this resource is another prominent item on the agenda.
Further, other proposals involve initiating discussions on renewal of mobile permits and replacing the rollout obligations with a new methodology to measure if companies are extending their networks
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