NEW DELHI: Sanitary ware and bathroom equipment maker HSIL today said it is eyeing acquisitions, which could be worth Rs 80 crore to Rs 400 crore to strengthen business.
The firm, which has undertaken an image makeover of its 'Hindware' brand for a more youthful look, however, did not specify if the acquisitions would be in domestic or international markets.
"We continue to look for potential targets to make acquisitions in the segments such as sanitary ware, bathroom equipments and kitchen appliances. We would typically at an acquisition size of Rs 80 crore to Rs 400 crore," HSIL Joint Managing Director Sandip Somany told PTI.
Without giving details on potential targets and timeline, he said the company was financially capable of making an acquisition. "We have a healthy balance sheet and can also raise debt as and when required," Somany said.
Last year HSIL had acquired bathroom fittings and accessories business of Havells India in an all cash deal of Rs 17 crore and a UK-based sanitary ware company called Barwood Products Ltd for one million pounds.
HSIL has also announced a change in the logo of its brand 'Hindware' with an intention to position it as a youthful brand.
Somany said after 20 years, the company has decided to change the look and feel of its brand logo and will invest up to Rs 30 crore in the current fiscal on marketing and promotion.
The red colour logo in a new font has been developed by UK-based design firm Fitch, a part of global advertising and media services agency WPP.
Meanwhile, the company is currently working on expanding production capacity.
"The company has a plan to invest Rs 650 crore to set up a new sanitary ware manufacturing unit in Gujarat along with with a new unit in Rajasthan for making taps and another unit in Andhra Pradesh for container glass," Somany said.
Following the expansion, the glass bottles capacity will increase from 1,050 metric tonnes per day (MTD) to 1,500 MTD, sanitary ware production capacity will be expanded to 5 million pieces per annum from 2.8 million pieces.
Besides, chrome plated bath fittings production capacity will also be hiked to 25 lakh units every year from the current three lakh units per annum.
HSIL is also expanding the chain of 'Evok' retail stores that offer interiors solutions in living, kitchen and bath domains.
Evok stores are operated by HSIL's wholly-owned subsidiary Hindware Home Retail Pvt Ltd.
"Currently we have eight Evok stores up and running and we have plans to open up to eight new stores every year. In the next two-and-a-half years, we will invest Rs 150 crore on retail expansion," Somany added.
Success in my Habit
Wednesday, April 20, 2011
Mukesh Ambani plans big for financial business, non-traditional way
NEW DELHI: Billionaire industrialist Mukesh Ambani-led Reliance Industries group is planning a big splash in financial services sector, but may take a path different than those adopted traditionally in the business of money.
RIL signed a joint venture with global private equity fund house DE Shaw late last month for its financial sector foray and is now considering businesses where it can utilise its expertise and presence in sectors like energy and retail, as also its proposed telecom and power ventures.
The businesses that RIL wishes to undertake with DE Shaw include energy trading, private equity, mutual fund, financial service distribution, infrastructure funding as also equity and debt funding for corporate sector, sources close to the development said.
Emailed queries sent to both DE Shaw and RIL in this regard remained unanswered.
The final contours of its partnership with DE Shaw, such as the shareholding pattern and businesses to undertake, may be discussed at RIL's next board meeting on April 21.
Besides DE Shaw, RIL would also look at a number of other partners for various specific financial service businesses, as it has done in its retail business and to some extent in its energy operations, sources said.
The group would look at serving both corporate and individual customers with an equal focus through its various financial services offerings, they added.
RIL has been working on its financial sector foray for about a year now and a final blueprint on this front may be finalised in next couple of months to enable Ambani to announce the details at the company's AGM later this year.
Between the two Ambani brothers, financial services hitherto have been the domain of younger sibling Anil Ambani, but abolition of their non-compete agreement last year paved the way for Mukesh to pursue this business.
However, the groups led by two brothers may still keep away from any direct competition in their various businesses in this space, at least for initial period, sources said.
RIL, and especially its chief, is known for expertise in in establishing ultra-high value projects in whatever businesses they intend to undertake and financial services would not be any different on that front, sources said.
A mega business plan is being worked out for the Reliance Industries group's entry into financial services sector, but it would be different from the traditional banking and financial businesses, at least in the beginning, they added.
RIL signed a joint venture with global private equity fund house DE Shaw late last month for its financial sector foray and is now considering businesses where it can utilise its expertise and presence in sectors like energy and retail, as also its proposed telecom and power ventures.
The businesses that RIL wishes to undertake with DE Shaw include energy trading, private equity, mutual fund, financial service distribution, infrastructure funding as also equity and debt funding for corporate sector, sources close to the development said.
Emailed queries sent to both DE Shaw and RIL in this regard remained unanswered.
The final contours of its partnership with DE Shaw, such as the shareholding pattern and businesses to undertake, may be discussed at RIL's next board meeting on April 21.
Besides DE Shaw, RIL would also look at a number of other partners for various specific financial service businesses, as it has done in its retail business and to some extent in its energy operations, sources said.
The group would look at serving both corporate and individual customers with an equal focus through its various financial services offerings, they added.
RIL has been working on its financial sector foray for about a year now and a final blueprint on this front may be finalised in next couple of months to enable Ambani to announce the details at the company's AGM later this year.
Between the two Ambani brothers, financial services hitherto have been the domain of younger sibling Anil Ambani, but abolition of their non-compete agreement last year paved the way for Mukesh to pursue this business.
However, the groups led by two brothers may still keep away from any direct competition in their various businesses in this space, at least for initial period, sources said.
RIL, and especially its chief, is known for expertise in in establishing ultra-high value projects in whatever businesses they intend to undertake and financial services would not be any different on that front, sources said.
A mega business plan is being worked out for the Reliance Industries group's entry into financial services sector, but it would be different from the traditional banking and financial businesses, at least in the beginning, they added.
Anand Automotive Group aims $ 2 billion sales by 2014
NEW DELHI: Auto component maker Anand Automotive Group today said it targets a sales turnover of $ 2 billion (about Rs 10,000 crore) by 2014 and will invest up to Rs 1,500 crore in the next five years for expansion.
"With the largest range of automotive components, the group recorded sales turnover of $ 700 million in 2009, with a target to achieve $ 2 billion by 2014," Anand Automotive Director K C Anand said in a statement.
The group has an investment plan of between Rs 1,300 crore and Rs 1,500 crore in the next five years for new plants, joint ventures in the automotive sector and capacity building in existing plants, he added.
The Group's company, Mahle Filter Systems, announced commencement of a new manufacturing unit at Parwanoo in Himachal Pradesh to make filters, which is expected to generate turnover of Rs 25 crore this year.
"The plant went into production on March 19, 2010 and will generate annual revenue of Rs 25 crore this year. The proposed installed capacity of the plant is expected to be 22 million filters per annum," Mahle Filter Systems COO Sunil Nair said.
Mahle Filter Systems, a joint venture between Mahle Group of Germany and Anand Automotive Group caters to leading automotive makers including Ashok Leyland , Tata Motors , Mahindra & Mahindra , General Motors and Bosch .
Besides supplying to the existing customers, the new unit will also cater to the requirements of the replacement market in India and for exports, the statement said.
The Group comprises 19 companies with 44 business units spread in eight states across the country, according to its website.
It currently employs 8,000 people and aims to provide 13,000 jobs in 2014, the statement added.
"With the largest range of automotive components, the group recorded sales turnover of $ 700 million in 2009, with a target to achieve $ 2 billion by 2014," Anand Automotive Director K C Anand said in a statement.
The group has an investment plan of between Rs 1,300 crore and Rs 1,500 crore in the next five years for new plants, joint ventures in the automotive sector and capacity building in existing plants, he added.
The Group's company, Mahle Filter Systems, announced commencement of a new manufacturing unit at Parwanoo in Himachal Pradesh to make filters, which is expected to generate turnover of Rs 25 crore this year.
"The plant went into production on March 19, 2010 and will generate annual revenue of Rs 25 crore this year. The proposed installed capacity of the plant is expected to be 22 million filters per annum," Mahle Filter Systems COO Sunil Nair said.
Mahle Filter Systems, a joint venture between Mahle Group of Germany and Anand Automotive Group caters to leading automotive makers including Ashok Leyland , Tata Motors , Mahindra & Mahindra , General Motors and Bosch .
Besides supplying to the existing customers, the new unit will also cater to the requirements of the replacement market in India and for exports, the statement said.
The Group comprises 19 companies with 44 business units spread in eight states across the country, according to its website.
It currently employs 8,000 people and aims to provide 13,000 jobs in 2014, the statement added.
Tata Chemicals acquires 25% stake in Gabon fertiliser complex for $290 mn
Mumbai: Tata Chemicals has acquired 25.1 per cent stake in the ammonia-urea fertiliser complex at Gabon in Africa for $290 million (Rs 1,300 crore).
The company acquired stake as a strategic investor in stream 1 of a greenfield port-based ammonia-urea fertilizer manufacturing complex in the Republic of Gabon.
The project comprises setting up of 1.3 million tonnes per annum (MTPA) of urea plant in the first phase (stream 1). There is an option to expand into another stream (stream 2) of 1.3 MTPA.
Other shareholders in the project are Olam with 63 per cent stake and the Republic of Gabon with 12 per cent stake.
The plant is strategically located near Gabon’s main port and it enables efficient and cost-effective material handling and proximity to large markets such as Africa, North America, Latin America and India, the statement said.
The company acquired stake as a strategic investor in stream 1 of a greenfield port-based ammonia-urea fertilizer manufacturing complex in the Republic of Gabon.
The project comprises setting up of 1.3 million tonnes per annum (MTPA) of urea plant in the first phase (stream 1). There is an option to expand into another stream (stream 2) of 1.3 MTPA.
Other shareholders in the project are Olam with 63 per cent stake and the Republic of Gabon with 12 per cent stake.
The plant is strategically located near Gabon’s main port and it enables efficient and cost-effective material handling and proximity to large markets such as Africa, North America, Latin America and India, the statement said.
Dr Reddy's expands R&D centre in Cambridge
Chennai/Hyderabad: Dr Reddy's Laboratories has opened its newly expanded Chirotech Technology Centre, a purpose-built facility to house its laboratories and offices, at the Cambridge Science Park, UK.
“Being located in this historic university city and in one of the leading European centres for science and innovation makes it the ideal location to expand and develop our research, development and technology capabilities. The facility will be a centre of excellence for chemistry and reinforces our commitment to building a leading edge research organisation to meet the innovation needs of our customers,” GV Prasad, vice chairman and CEO of the company, said in a release.
Dr Reddy’s had acquired the Chirotech R&D facility from Dow Pharma along with its manufacturing facility in Mirfield, UK, in 2008 at $32 million. The additional capacity of 33,000 ft built at the centre helps to house more number of scientists and laboratory facilities. The company has already increased the number of scientists to 40 from the previous 30, according to a company spokesman.
The additional capacity will help facilitate an initial doubling of scientific staff in Chirotech while providing for further capacity additions in future, the company said. It is expected to strengthen core capabilities in biocatalysis and chemocatalysis, build capacities in fast growing segments and allow development of other areas of expertise in chemistry and processing for use in the pharmaceutical industry. The new facility is part of the custom pharmaceutical services business unit of Dr Reddy's and will offer these expanded services to its customers worldwide.
“Being located in this historic university city and in one of the leading European centres for science and innovation makes it the ideal location to expand and develop our research, development and technology capabilities. The facility will be a centre of excellence for chemistry and reinforces our commitment to building a leading edge research organisation to meet the innovation needs of our customers,” GV Prasad, vice chairman and CEO of the company, said in a release.
Dr Reddy’s had acquired the Chirotech R&D facility from Dow Pharma along with its manufacturing facility in Mirfield, UK, in 2008 at $32 million. The additional capacity of 33,000 ft built at the centre helps to house more number of scientists and laboratory facilities. The company has already increased the number of scientists to 40 from the previous 30, according to a company spokesman.
The additional capacity will help facilitate an initial doubling of scientific staff in Chirotech while providing for further capacity additions in future, the company said. It is expected to strengthen core capabilities in biocatalysis and chemocatalysis, build capacities in fast growing segments and allow development of other areas of expertise in chemistry and processing for use in the pharmaceutical industry. The new facility is part of the custom pharmaceutical services business unit of Dr Reddy's and will offer these expanded services to its customers worldwide.
ONGC Videsh buys into Kazakh oilfield
New Delhi: ONGC Videsh, the foreign arm of India's largest energy explorer ONGC, has signed 'definitive' agreements with Kazakhstan's state-run KazMunaiGas to acquire a 25% stake in the Satpayev exploration block, which has estimated 1.85 billion barrel oil reserves.
The agreements were signed on Saturday during Prime Minister Manmohan Singh's Kazakhstan visit, the company said. The cabinet had approved the deal in July 2009. ONGC Videsh already has stakes in oilfields in several countries including Russia, Sudan and Vietnam, apart from exploration blocks. In a separate development, Kazakhstan announced that it will supply 2100 tonnes of uranium to India's nuclear plants by 2014.
The agreements were signed on Saturday during Prime Minister Manmohan Singh's Kazakhstan visit, the company said. The cabinet had approved the deal in July 2009. ONGC Videsh already has stakes in oilfields in several countries including Russia, Sudan and Vietnam, apart from exploration blocks. In a separate development, Kazakhstan announced that it will supply 2100 tonnes of uranium to India's nuclear plants by 2014.
Retail investors bet big on ETFs, especially those in gold
Mumbai: Underperforming equities drive push, trend seems likely to continue
Indian retail investors are betting big on Exchange Traded Funds (ETFs). The category emerged as an outperformer during financial year 2010-11, even as the mutual fund sector witnessed erosion of assets in other categories.
ETFs were the only category which registered a four-fold increase in influx of funds. Net inflows here were Rs 3,638 crore, compared with a meagre Rs 784 crore in the previous financial year. The number of folios jumped from a little over 200,000 to 420,000. The funds thus mobilised were Rs 7,709 crore against Rs 3,535 crore earlier, up 118 per cent.
On the other hand, overall industry folios dropped two per cent, while the average of assets under management slipped 5.6 per cent to Rs 7.05 lakh crore during the year, against Rs 7.47 lakh crore in the previous year.
Rajan Mehta, executive director, Benchmark Asset Management, says, “Investors’ base in ETFs have gone up as the visibility of these products increased. More, investors' mindset is aligning to the fact that it's a simple, suitable product for them and an investor-centric instrument, with a low cost attached to it.”
The industry added seven more ETF schemes in 2010-11, taking the total to 28. Ten of these are Gold ETFs. Says Nitin Rakesh, managing director and CEO of Motilal Oswal Mutual Fund: “The number of retail investors putting money in ETFs is probably the highest at this point of time.”
Interestingly, it is the gold ETFs which have attracted much of the investor attention. Net inflow in gold ETFs has gone up close to three-fold last year, to Rs 2,250 crore.
“With the kind of rally seen in gold prices over the last three years, investors have understood that gold investment could give better returns at a time when equities are underperforming,” explains Mehta. He says lesser returns from equities last year also contributed to the rising number of retail investors in gold ETFs.
“Investors are now willing to put in 10-20 per cent of their overall investments in ETFs,” adds Mehta. The gold ETFs saw investor folios reach 320,000 in 2010-11, compared with 160,000 in 2009-10.
Fund houses are optimistic about continuation of the high trajectory of growth in the ETF category, which has also attracted global MF players to India. The recent deal of Goldman Sachs taking over Benchmark AMC is one signal in this regard.
Indian retail investors are betting big on Exchange Traded Funds (ETFs). The category emerged as an outperformer during financial year 2010-11, even as the mutual fund sector witnessed erosion of assets in other categories.
ETFs were the only category which registered a four-fold increase in influx of funds. Net inflows here were Rs 3,638 crore, compared with a meagre Rs 784 crore in the previous financial year. The number of folios jumped from a little over 200,000 to 420,000. The funds thus mobilised were Rs 7,709 crore against Rs 3,535 crore earlier, up 118 per cent.
On the other hand, overall industry folios dropped two per cent, while the average of assets under management slipped 5.6 per cent to Rs 7.05 lakh crore during the year, against Rs 7.47 lakh crore in the previous year.
Rajan Mehta, executive director, Benchmark Asset Management, says, “Investors’ base in ETFs have gone up as the visibility of these products increased. More, investors' mindset is aligning to the fact that it's a simple, suitable product for them and an investor-centric instrument, with a low cost attached to it.”
The industry added seven more ETF schemes in 2010-11, taking the total to 28. Ten of these are Gold ETFs. Says Nitin Rakesh, managing director and CEO of Motilal Oswal Mutual Fund: “The number of retail investors putting money in ETFs is probably the highest at this point of time.”
Interestingly, it is the gold ETFs which have attracted much of the investor attention. Net inflow in gold ETFs has gone up close to three-fold last year, to Rs 2,250 crore.
“With the kind of rally seen in gold prices over the last three years, investors have understood that gold investment could give better returns at a time when equities are underperforming,” explains Mehta. He says lesser returns from equities last year also contributed to the rising number of retail investors in gold ETFs.
“Investors are now willing to put in 10-20 per cent of their overall investments in ETFs,” adds Mehta. The gold ETFs saw investor folios reach 320,000 in 2010-11, compared with 160,000 in 2009-10.
Fund houses are optimistic about continuation of the high trajectory of growth in the ETF category, which has also attracted global MF players to India. The recent deal of Goldman Sachs taking over Benchmark AMC is one signal in this regard.
Bank loans grow 21.4% in 2010-11, deposits rise 15.8%
Mumbai: Bank loans registered a growth of 21.38 per cent in 2010-11, while deposit growth stood at 15.84 per cent, according to data released by the Reserve Bank of India (RBI).
While credit growth was higher than RBI’s projection of 20 per cent in 2010-11, deposit growth fell short of the 18 per cent projection. Deposit growth for 2009-10 was 17 per cent, while the growth in credit was 16 per cent.
The growth in loans came off sharply in the last fortnight of the financial year ended March 25, compared to the previous fortnight, in which credit growth was 23.20 per cent. In the fortnight ended March 25, banks disbursed Rs 82,593 crore worth of loans. Deposits grew by Rs 64,333 crore in the fortnight.
Analysts and bankers said a growth rate of 18 per cent in deposits and 20 per cent in credit should be sustainable for banks in 2011-12. With policy rates expected to rise further, banks may not be willing to raise loan rates, owing to liquidity coming back into the system. Typically in the beginning of a financial year, the demand for loans is slack.
“We feel interest rates have peaked. But since inflation is still high, there is a chance of RBI raising policy rates further in May. However, a rise in policy rates will not necessarily mean an immediate hike in deposit and lending rates,” said RK Bansal, executive director and group head (retail banking), IDBI Bank. He said IDBI Bank had no plans to cut retail term deposit rates, nor to raise lending rates. “For the current financial year, because of a low-base, I expect around 20 per cent growth in deposits. I also expect 18-20 per cent growth in credit,” Bansal said.
Liquidity concerns have also ebbed since the beginning of the financial year, as banks become net lenders to the central bank’s liquidity adjustment facility. Liquidity was in deficit mode during the second half of the current financial year, which saw rates heading north.
“Currently, there are no liquidity pressures. Hence, banks may want to withdraw their special rates on deposits. But banks may not reduce rates, as deposits from retail segment are yet to pick up. So they may want to wait and watch before slashing interest rates on deposits,” said a official from a public sector bank.
While credit growth was higher than RBI’s projection of 20 per cent in 2010-11, deposit growth fell short of the 18 per cent projection. Deposit growth for 2009-10 was 17 per cent, while the growth in credit was 16 per cent.
The growth in loans came off sharply in the last fortnight of the financial year ended March 25, compared to the previous fortnight, in which credit growth was 23.20 per cent. In the fortnight ended March 25, banks disbursed Rs 82,593 crore worth of loans. Deposits grew by Rs 64,333 crore in the fortnight.
Analysts and bankers said a growth rate of 18 per cent in deposits and 20 per cent in credit should be sustainable for banks in 2011-12. With policy rates expected to rise further, banks may not be willing to raise loan rates, owing to liquidity coming back into the system. Typically in the beginning of a financial year, the demand for loans is slack.
“We feel interest rates have peaked. But since inflation is still high, there is a chance of RBI raising policy rates further in May. However, a rise in policy rates will not necessarily mean an immediate hike in deposit and lending rates,” said RK Bansal, executive director and group head (retail banking), IDBI Bank. He said IDBI Bank had no plans to cut retail term deposit rates, nor to raise lending rates. “For the current financial year, because of a low-base, I expect around 20 per cent growth in deposits. I also expect 18-20 per cent growth in credit,” Bansal said.
Liquidity concerns have also ebbed since the beginning of the financial year, as banks become net lenders to the central bank’s liquidity adjustment facility. Liquidity was in deficit mode during the second half of the current financial year, which saw rates heading north.
“Currently, there are no liquidity pressures. Hence, banks may want to withdraw their special rates on deposits. But banks may not reduce rates, as deposits from retail segment are yet to pick up. So they may want to wait and watch before slashing interest rates on deposits,” said a official from a public sector bank.
India, US pursue sustainable alliance in coal sector
Mumbai: After the civil nuclear agreement, India and the US are pursuing an alliance in the coal sector. Both the countries, which met recently in New Delhi, are considering encouraging equity partnerships with offtake in expansion projects, long term offtake arrangement and equity in new projects.
India’s premier coal producer, Coal India (CIL), has identified 142 new projects, comprising 35 under ground (UG) and 107 opencast (OC) for ultimate capacity of 380.22 million tonnes with an estimated capex of $7.7 billion.
Besides, CIL is setting up 20 washeries with a capacity of 111.1 million tonnes, with estimated capex of $510 million. India is expected to have a coal production of 447 million tonnes by the end of the 11th plan and 633 million tons by end of the 12th plan. According to Centre’s estimates, the coal shortage is expected to be 85 million tonnes by end of 2011-12.
The alliance is crucial to tackle constraints in exploration of coal. Of 277 billion tonnes geological reserves, only 110 billion tonnes reserves are in “proved category”. Besides, there are problems and constraints in underground mining, mainly because of use of old technology, and labour-intensive processes and safety issues.
A coal ministry official told Business Standard, “In equity model, it is proposed to acquire stakes in operating mines or greenfield coal blocks and import produce from such acquisitions to India. In the off-take model, it is proposed to enter into long-term offtake contract (10 years) with coal companies for procurement of imported coal. USA has been identified as a preferred country for both the equity and off-take models.”
At present, Coal India (CIL) is in an advanced stage of creating strategic alliance with a large US company through the “equity model”. In “off-take model”, several US coal companies have qualified to participate in the final stage of the process and price bids shall be shortly invited from those coal companies.
The official argued: “Thermal coal exports from USA at a competitive price can potentially bridge India’s demand-supply gap. Competitive model for maritime freight needs to be explored for making the landed cost of US coal in India attractive. Indo-US bilateral platform can be leveraged to sensitise stake holders at the government level to create an enabling situation for CIL to strike deals with US coal companies. Several responses were received from US-based coal companies. Discussions are in progress with Peabody, and Massey Energy Corporation.”
US side may come up with new technologies and expertise to take part in mechanisation of UG mines, keeping in view the production, productivity, safety and economics.
India and US are also looking at financing of capacity building and skill development in the area of geospatial technology application in mine land reclamation for sustainable coal mining in India.
Besides, funds can be available to develop core competence of technical experts through training and site visits to make them capable of taking inferred decisions for addressing land reclamation challenges.
India’s premier coal producer, Coal India (CIL), has identified 142 new projects, comprising 35 under ground (UG) and 107 opencast (OC) for ultimate capacity of 380.22 million tonnes with an estimated capex of $7.7 billion.
Besides, CIL is setting up 20 washeries with a capacity of 111.1 million tonnes, with estimated capex of $510 million. India is expected to have a coal production of 447 million tonnes by the end of the 11th plan and 633 million tons by end of the 12th plan. According to Centre’s estimates, the coal shortage is expected to be 85 million tonnes by end of 2011-12.
The alliance is crucial to tackle constraints in exploration of coal. Of 277 billion tonnes geological reserves, only 110 billion tonnes reserves are in “proved category”. Besides, there are problems and constraints in underground mining, mainly because of use of old technology, and labour-intensive processes and safety issues.
A coal ministry official told Business Standard, “In equity model, it is proposed to acquire stakes in operating mines or greenfield coal blocks and import produce from such acquisitions to India. In the off-take model, it is proposed to enter into long-term offtake contract (10 years) with coal companies for procurement of imported coal. USA has been identified as a preferred country for both the equity and off-take models.”
At present, Coal India (CIL) is in an advanced stage of creating strategic alliance with a large US company through the “equity model”. In “off-take model”, several US coal companies have qualified to participate in the final stage of the process and price bids shall be shortly invited from those coal companies.
The official argued: “Thermal coal exports from USA at a competitive price can potentially bridge India’s demand-supply gap. Competitive model for maritime freight needs to be explored for making the landed cost of US coal in India attractive. Indo-US bilateral platform can be leveraged to sensitise stake holders at the government level to create an enabling situation for CIL to strike deals with US coal companies. Several responses were received from US-based coal companies. Discussions are in progress with Peabody, and Massey Energy Corporation.”
US side may come up with new technologies and expertise to take part in mechanisation of UG mines, keeping in view the production, productivity, safety and economics.
India and US are also looking at financing of capacity building and skill development in the area of geospatial technology application in mine land reclamation for sustainable coal mining in India.
Besides, funds can be available to develop core competence of technical experts through training and site visits to make them capable of taking inferred decisions for addressing land reclamation challenges.
BRICS to trade in own currencies
China: The settlement in local currencies will be subject to national laws.
India on Thursday agreed to an arrangement to facilitate and expand the system of settling in local currencies all trade transactions among members of the BRICS group of countries. The agreement followed consultations among development banks representing Brazil, Russia, India, China and South Africa, held here with a view to strengthening the BRICS inter-bank cooperation.
At $4.6 trillion, the five BRICS countries account for almost 15 per cent of global trade volume, but trade among them is only about $230 billion a year. The expanded system of settling trade in local currencies would boost intra-BRICS trade, a senior Chinese government official said.
While the China Development Bank led the discussion at the meeting, held concurrently with the BRICS Summit, the Exim Bank represented the Indian side. A key element in the new arrangement, a senior Indian government official explained, was that the settlement in local currencies would be subject to national laws.
The annual BRICS development banks’ meeting, that began here yesterday, also formalised three other cooperation arrangements among the member countries. To start with, the participating banks agreed to enhance co-operation in cross-border investments and financing of companies and projects.
The development banks also agreed to take pro-active steps in expediting capital market reforms in the BRICS countries, particularly with regard to issuance of bonds and listing of stocks. India, the officials said, would play a major role in this area as it has one of the most developed and active capital markets within the BRICS region.
The fourth element in the inter-bank co-operation mechanism pertains to the development banks’ commitment to promote exchange of information on financing and investments.
The absence of an established system of flow of financial information among the BRICS countries has hindered faster growth of intra-BRICS trade and investments.
The BRICS countries are the most representative countries among emerging markets. The combined population of the five countries is close to three billion, accounting for 43 per cent of the world total. Their combined gross domestic product, or GDP, is $11 trillion, or 16 per cent of the world’s total GDP. Their GDP share in the global pie, however, goes up to almost 25 per cent when compared against their GDP on a purchasing-power-parity basis.
India on Thursday agreed to an arrangement to facilitate and expand the system of settling in local currencies all trade transactions among members of the BRICS group of countries. The agreement followed consultations among development banks representing Brazil, Russia, India, China and South Africa, held here with a view to strengthening the BRICS inter-bank cooperation.
At $4.6 trillion, the five BRICS countries account for almost 15 per cent of global trade volume, but trade among them is only about $230 billion a year. The expanded system of settling trade in local currencies would boost intra-BRICS trade, a senior Chinese government official said.
While the China Development Bank led the discussion at the meeting, held concurrently with the BRICS Summit, the Exim Bank represented the Indian side. A key element in the new arrangement, a senior Indian government official explained, was that the settlement in local currencies would be subject to national laws.
The annual BRICS development banks’ meeting, that began here yesterday, also formalised three other cooperation arrangements among the member countries. To start with, the participating banks agreed to enhance co-operation in cross-border investments and financing of companies and projects.
The development banks also agreed to take pro-active steps in expediting capital market reforms in the BRICS countries, particularly with regard to issuance of bonds and listing of stocks. India, the officials said, would play a major role in this area as it has one of the most developed and active capital markets within the BRICS region.
The fourth element in the inter-bank co-operation mechanism pertains to the development banks’ commitment to promote exchange of information on financing and investments.
The absence of an established system of flow of financial information among the BRICS countries has hindered faster growth of intra-BRICS trade and investments.
The BRICS countries are the most representative countries among emerging markets. The combined population of the five countries is close to three billion, accounting for 43 per cent of the world total. Their combined gross domestic product, or GDP, is $11 trillion, or 16 per cent of the world’s total GDP. Their GDP share in the global pie, however, goes up to almost 25 per cent when compared against their GDP on a purchasing-power-parity basis.
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