Sify Technologies Limited, a leader in managed enterprise, network and IT services in India, today launched Sify mystorage, a cloud-based online storage and backup solution targeted at consumers and small businesses.
Sify mystorage enables users to insure critical files--documents, mail, photos,videos and music in the computer against everyday risks like virus attacks, Sify Technologies Commercial and Consumer Business President Natesh Mani told reporters here.
Sify mystorage automatically and continuously backs up and stores users' files in a secure cloud thus providing foolproof protection against data loss, he said.
With a single mystorage account, a user can backup and store documents from any number of devices, Mani said.
A file saved in Sify mystorage can be accessed online from anywhere or can be shared with friends and family easily, he said.
Sify mystorage is intuitive to the extent that the user's files are organised and stored in the cloud in exactly the same folder structure as in his or her device, Mani informed
Success in my Habit
Friday, December 23, 2011
Indian products will have edge using genuine IT, says Microsoft
The usage of genuine IT in the manufacturing sector will not only differentiate the Indian products but will also give it an edge over the products of their competitors, a Microsoft official has said.
"According to the new unfair competition laws in certain US states, sale of products which are being manufactured and distributed using illegal information technology, for example pirated software, is prohibited," said Tabrez Ahmad, director, IP policy of the software major.
"The law's objective is to create a level playing field for law abiding manufacturers by obligating the non-compliant manufacturers to show use of genuine and legal IT before their products can be distributed and sold in certain territories of US," he said at a function here Wednesday.
"If the Indian manufacturers - who are into exports in US - use genuine IT, then they can score over competitors who are using non-genuine IT because their products will be scrapped," said Ahmad.
Leading IP boutique law firms also feel that India can increase its exports to US and come to a level playing field with China, which tops the list.
"If Indian manufacturers start now by using genuine IT for manufacturing and distribution, then they can easily gain momentum in the competition in terms of exports to US as nearly 79 percent of the Chinese manufacturers use non-genuine IT," said Sunil K. Singh of Saikrishna & Associates.
"This is a big opportunity against China where software piracy and hardware counterfeiting is among the highest in the world. And since China is also the largest exporter of manufactured products to US, they will face maximum challenges. Even an increase in two percent of export to US can have a very positive impact on our economy," he said.
"According to the new unfair competition laws in certain US states, sale of products which are being manufactured and distributed using illegal information technology, for example pirated software, is prohibited," said Tabrez Ahmad, director, IP policy of the software major.
"The law's objective is to create a level playing field for law abiding manufacturers by obligating the non-compliant manufacturers to show use of genuine and legal IT before their products can be distributed and sold in certain territories of US," he said at a function here Wednesday.
"If the Indian manufacturers - who are into exports in US - use genuine IT, then they can score over competitors who are using non-genuine IT because their products will be scrapped," said Ahmad.
Leading IP boutique law firms also feel that India can increase its exports to US and come to a level playing field with China, which tops the list.
"If Indian manufacturers start now by using genuine IT for manufacturing and distribution, then they can easily gain momentum in the competition in terms of exports to US as nearly 79 percent of the Chinese manufacturers use non-genuine IT," said Sunil K. Singh of Saikrishna & Associates.
"This is a big opportunity against China where software piracy and hardware counterfeiting is among the highest in the world. And since China is also the largest exporter of manufactured products to US, they will face maximum challenges. Even an increase in two percent of export to US can have a very positive impact on our economy," he said.
Zydus Cadila buys Biochem
Mumbai: Ahmedabad-based pharma major, Zydus Cadila, has acquired 100 per cent stake in Biochem, a Mumbai-based mid-sized drug company. Biochem has presence in therapeutic areas of antibiotics, cardiovascular, anti-diabetic and oncological segments. Financial details of the deal were not disclosed.
Biochem had reported sales of Rs 264.5 crore for 2010-2011.
Established in 1959, Biochem has strong presence in manufacturing and marketing of antibiotics. The top five brands of the company are Ampilox, Biotax, Monotax, Amicin and Zithrocin, which together contribute 40 per cent of the company’s sales. Three of Biochem’s brands fall in the top 300 pharma brands of India, stated a Cadila release.
India, as one of the fastest growing drug market, lures more local players to strengthen presence through domestic acquisitions.
According to a recent PricewaterhouseCooper report, Indian pharma industry is expected to touch $74 billion (Rs 3.7 lakh crore) sales by 2020 from $11 billion (Rs 55,000 crore) now.
"Aggregate disclosed value of merger & acquisitions (M&A) deals in the pharmaceuticals sector surged from a meagre $1.2 billion (Rs 6,000 crore) in FY10 to $4 billion (Rs 20,000 crore) in FY11, reflecting a jump of more than 230 per cent, says an E&Y report. M&A has emerged as one of the key strategies in the last two to three years to gain a foothold in emerging markets with several big ticket acquisitions, it added.
A few years earlier, Alembic had acquired Dabur's non-oncology business for $35 million (Rs 175 crore).
Zydus Cadila’s Chairman and Managing Director, Pankaj R Patel said, “The formulations business in India has always been the bulwark of our operations and we have looked at every strategic opportunity to grow and contribute to this market, either by way of novel initiatives, collaborations or acquisitions. Biochem represents the right fit as they have a significant presence in our core therapy areas and also add value to our product offerings in the key growth segments.”
On Wednesday, shares of Zydus Cadila went down by 0.98 per cent to close at Rs 701.05 on BSE.
In June, Zydus Pharmaceuticals USA Inc, the US-subsidiary of Zydus had acquired US-based pharmaceutical company Nesher Pharmaceuticals Inc for an undisclosed amount.
Biochem had reported sales of Rs 264.5 crore for 2010-2011.
Established in 1959, Biochem has strong presence in manufacturing and marketing of antibiotics. The top five brands of the company are Ampilox, Biotax, Monotax, Amicin and Zithrocin, which together contribute 40 per cent of the company’s sales. Three of Biochem’s brands fall in the top 300 pharma brands of India, stated a Cadila release.
India, as one of the fastest growing drug market, lures more local players to strengthen presence through domestic acquisitions.
According to a recent PricewaterhouseCooper report, Indian pharma industry is expected to touch $74 billion (Rs 3.7 lakh crore) sales by 2020 from $11 billion (Rs 55,000 crore) now.
"Aggregate disclosed value of merger & acquisitions (M&A) deals in the pharmaceuticals sector surged from a meagre $1.2 billion (Rs 6,000 crore) in FY10 to $4 billion (Rs 20,000 crore) in FY11, reflecting a jump of more than 230 per cent, says an E&Y report. M&A has emerged as one of the key strategies in the last two to three years to gain a foothold in emerging markets with several big ticket acquisitions, it added.
A few years earlier, Alembic had acquired Dabur's non-oncology business for $35 million (Rs 175 crore).
Zydus Cadila’s Chairman and Managing Director, Pankaj R Patel said, “The formulations business in India has always been the bulwark of our operations and we have looked at every strategic opportunity to grow and contribute to this market, either by way of novel initiatives, collaborations or acquisitions. Biochem represents the right fit as they have a significant presence in our core therapy areas and also add value to our product offerings in the key growth segments.”
On Wednesday, shares of Zydus Cadila went down by 0.98 per cent to close at Rs 701.05 on BSE.
In June, Zydus Pharmaceuticals USA Inc, the US-subsidiary of Zydus had acquired US-based pharmaceutical company Nesher Pharmaceuticals Inc for an undisclosed amount.
TN plans to introduce new info-tech, IT-enabled service policy
Chennai: The Tamil Nadu Government proposes to bring out a new information technology and IT-enabled service policy that will engender many avant-garde features. This will catapult Tamil Nadu to the numero uno position, said the Chief Minister, Ms J. Jayalalithaa, without giving any time frame or details of the policy.
“My Government is committed to providing an investor-friendly industrial policy framework to provide a healthy and productive environment. I have a vision or a dream to make Tamil Nadu numero uno in terms of all-round development,” she said at Connect2011, which is the 11th edition of the annual conference to promote the State as a destination for information, communication and technology. Incidentally, in her earlier tenure as Chief Minister, Ms Jayalalithaa had inaugurated the first Connect event in 2001.
Sunshine sector
“We would like to be a State with the right attitude towards investors. Tamil Nadu is a State that delivers and we need partners who can see growth both in the old and the new economy and participate in the generation and creation of wealth,” she said.
The Indian IT sector continues to be one of the sunshine sectors of the Indian economy, showing rapid growth and promise. IT has powered the transformation of Tamil Nadu into a modern economy, clearly making it India's eastern gateway to the world, not just South Asia.
Tamil Nadu has emerged as a global leader in ITeS verticals such as banking, financial services and insurance, health systems management, computer-aided design and computer-aided engineering, she said.
In 2010-11, software exports from STPI units in Tamil Nadu touched Rs 42,100 crore, and if exports from the IT SEZ units are included, the total exports would be above Rs 50,000 crore, she said.
“Tamil Nadu and Chennai have become the destination of choice for IT investments. At present, Tamil Nadu has over 1,800 software and ITeS exporters, including over 210 foreign, wholly-owned subsidiaries and multinational companies in software development, she said.
Ms Jayalalithaa thanked Mr S. Ramadorai, Advisor to the Prime Minister on Skill Development, for his suggestions on improving the industrial climate in the State.
Opportunity to grow
In his keynote address, Mr Ramadorai, who is also Vice-Chairman of Tata Consultancy Services, said with the combination of talent, technology and incentivised policy, the State has all the ingredients to make the leap to becoming a global destination for products and services. Consequently, a city such as Chennai has the opportunity to grow into a global city.
Tamil Nadu has India's brightest minds, a large entrepreneurial force, a vibrant entertainment industry and thriving arts and cultural landscape. Its growth can be powered by sectors such as automotive, textile, manufacturing, biotech, health and pharma, energy, animation and visual effects and IT, in which it has already established leadership, he said.
“My Government is committed to providing an investor-friendly industrial policy framework to provide a healthy and productive environment. I have a vision or a dream to make Tamil Nadu numero uno in terms of all-round development,” she said at Connect2011, which is the 11th edition of the annual conference to promote the State as a destination for information, communication and technology. Incidentally, in her earlier tenure as Chief Minister, Ms Jayalalithaa had inaugurated the first Connect event in 2001.
Sunshine sector
“We would like to be a State with the right attitude towards investors. Tamil Nadu is a State that delivers and we need partners who can see growth both in the old and the new economy and participate in the generation and creation of wealth,” she said.
The Indian IT sector continues to be one of the sunshine sectors of the Indian economy, showing rapid growth and promise. IT has powered the transformation of Tamil Nadu into a modern economy, clearly making it India's eastern gateway to the world, not just South Asia.
Tamil Nadu has emerged as a global leader in ITeS verticals such as banking, financial services and insurance, health systems management, computer-aided design and computer-aided engineering, she said.
In 2010-11, software exports from STPI units in Tamil Nadu touched Rs 42,100 crore, and if exports from the IT SEZ units are included, the total exports would be above Rs 50,000 crore, she said.
“Tamil Nadu and Chennai have become the destination of choice for IT investments. At present, Tamil Nadu has over 1,800 software and ITeS exporters, including over 210 foreign, wholly-owned subsidiaries and multinational companies in software development, she said.
Ms Jayalalithaa thanked Mr S. Ramadorai, Advisor to the Prime Minister on Skill Development, for his suggestions on improving the industrial climate in the State.
Opportunity to grow
In his keynote address, Mr Ramadorai, who is also Vice-Chairman of Tata Consultancy Services, said with the combination of talent, technology and incentivised policy, the State has all the ingredients to make the leap to becoming a global destination for products and services. Consequently, a city such as Chennai has the opportunity to grow into a global city.
Tamil Nadu has India's brightest minds, a large entrepreneurial force, a vibrant entertainment industry and thriving arts and cultural landscape. Its growth can be powered by sectors such as automotive, textile, manufacturing, biotech, health and pharma, energy, animation and visual effects and IT, in which it has already established leadership, he said.
Wednesday, December 21, 2011
Novartis, GlaxoSmithKline, Pfizer & Ranbaxy focus on hinterland
Mumbai: Sample this: India's rural market accounts for half of two-wheeler sales, a third each of fast-moving consumer goods sales and telephone subscriptions and 60% of gold consumption. In contrast, the drug industry in spite of the importance of medicine still sees the rural market accounting for just 20% of its revenues.
Big drugmakers such as Novartis, GlaxoSmithKline, Pfizer, Ranbaxy and Aventis are keen to emulate the consumer industry's success in the hinterland, but are facing a raft of challenges. "While aspiration products like mobile phones, and direct-to-home televisions have gained a strong share of the rural consumer's wallet, health is still a low priority in villages," says a Novartis India spokesperson.
Doctors are spread across wider geographies and people don't always seek treatment. There is only one doctor for every 25,000 people in rural areas including practitioners of Indian systems of medicine such as Ayurveda, compared to one doctor for almost every 500 people in urban areas.
"It's a long haul," says GlaxoSmithKline Pharmaceuticals Managing Director Hasit Joshipura. "Unlike the FMCG industry, which saw growth being created by the increasing penetration of media and good monsoons, in pharmaceuticals it is healthcare infrastructure in addition to the ability to pay that matters," he says.
IMS Health estimates that per capita spending on medicines in rural areas averages $2, or just over Rs 100, per year compared to $36, or almost Rs 2,000, in urban India.
Pratin Vete of Aventis Pharma, a subsidiary of European drugmaker Sanofi, says the standard of doctors and medical staff is an issue. "As we go deeper, the doctor's qualification diminishes," says Vete, who is senior director for tier 2 and internal medicine at Aventis.
Big drugmakers also face intense competition from small, regional players, he says. "These are not virgin markets and there is no dearth of drug brands." Then there is lack of infrastructure and investment.
Simple things like a refrigerator to store vaccines, or a computer to maintain records in the pharmacy, and an X-ray machine can improve medical diagnosis and availability of drugs, says Novartis India Vice-Chairman and Managing Director Ranjit Shahani.
Another problem is field force attrition. "A sales rep may attend a training programme from one company and then end up joining another," says a drug industry executive. Many field representatives are hired on contractors' books to keep costs down, making retention tough.
A September report by Mumbaibased MAPE Securities pegs the share of revenues of large listed pharma companies from this market at 5-10% of sales. But rural markets are expected to grow 25-30% a year, or at double the speed of urban markets, till 2016.
"The rural piece is getting urbanised," says Sunil Madhok, senior director, business operations, at Pfizer.
"If you go there now, you can get the first-mover advantage with the doctor, the supply chain, and the community." Some companies are thinking out of the box.
Aventis has started Prayas, an initiative that gives doctors in small towns and villages the chance to attend training sessions by doctors from major cities on a variety of relevant health issues. Popular topics include treating snakebites and pesticide poisoning.
Novartis educates 6 million villagers a year on health under the banner of Arogya Parivar. A large proportion of these people now go to doctors for timely treatment, a company spokesperson says.
Borrowing a page from the FMCG book, Novartis has also launched smaller packs of medicine that cost less. In a pilot, it also facilitates small loans to individuals to stock up on drugs.
Most companies are not sure whether their rural marketing efforts are bearing fruit, says Anjan Sen, director at Deloitte's life sciences and healthcare practice. "Ultimately any model has to be commercially viable," he says. But results of such initiatives are slow to appear.
Aventis' Vete says that out of every 15 doctors touched by Prayas, six might prescribe its brands. And Novartis agrees that smaller packs meant that patients may not necessarily complete treatment. Industry executives say medicine retail is not just about capital but regulation as well-hawking prescription drugs requires a drug licence.
To win over the rural markets, companies need to offer hefty discounts to edge out local players who work on much lower margins, says MAPE's Adhia. They also need to rework their compensation to field staff by adding a larger component of performance-linked incentives to overall pay, he adds. Partnerships with other sectors such as FMCG and medical technology are on the anvil.
Big drugmakers such as Novartis, GlaxoSmithKline, Pfizer, Ranbaxy and Aventis are keen to emulate the consumer industry's success in the hinterland, but are facing a raft of challenges. "While aspiration products like mobile phones, and direct-to-home televisions have gained a strong share of the rural consumer's wallet, health is still a low priority in villages," says a Novartis India spokesperson.
Doctors are spread across wider geographies and people don't always seek treatment. There is only one doctor for every 25,000 people in rural areas including practitioners of Indian systems of medicine such as Ayurveda, compared to one doctor for almost every 500 people in urban areas.
"It's a long haul," says GlaxoSmithKline Pharmaceuticals Managing Director Hasit Joshipura. "Unlike the FMCG industry, which saw growth being created by the increasing penetration of media and good monsoons, in pharmaceuticals it is healthcare infrastructure in addition to the ability to pay that matters," he says.
IMS Health estimates that per capita spending on medicines in rural areas averages $2, or just over Rs 100, per year compared to $36, or almost Rs 2,000, in urban India.
Pratin Vete of Aventis Pharma, a subsidiary of European drugmaker Sanofi, says the standard of doctors and medical staff is an issue. "As we go deeper, the doctor's qualification diminishes," says Vete, who is senior director for tier 2 and internal medicine at Aventis.
Big drugmakers also face intense competition from small, regional players, he says. "These are not virgin markets and there is no dearth of drug brands." Then there is lack of infrastructure and investment.
Simple things like a refrigerator to store vaccines, or a computer to maintain records in the pharmacy, and an X-ray machine can improve medical diagnosis and availability of drugs, says Novartis India Vice-Chairman and Managing Director Ranjit Shahani.
Another problem is field force attrition. "A sales rep may attend a training programme from one company and then end up joining another," says a drug industry executive. Many field representatives are hired on contractors' books to keep costs down, making retention tough.
A September report by Mumbaibased MAPE Securities pegs the share of revenues of large listed pharma companies from this market at 5-10% of sales. But rural markets are expected to grow 25-30% a year, or at double the speed of urban markets, till 2016.
"The rural piece is getting urbanised," says Sunil Madhok, senior director, business operations, at Pfizer.
"If you go there now, you can get the first-mover advantage with the doctor, the supply chain, and the community." Some companies are thinking out of the box.
Aventis has started Prayas, an initiative that gives doctors in small towns and villages the chance to attend training sessions by doctors from major cities on a variety of relevant health issues. Popular topics include treating snakebites and pesticide poisoning.
Novartis educates 6 million villagers a year on health under the banner of Arogya Parivar. A large proportion of these people now go to doctors for timely treatment, a company spokesperson says.
Borrowing a page from the FMCG book, Novartis has also launched smaller packs of medicine that cost less. In a pilot, it also facilitates small loans to individuals to stock up on drugs.
Most companies are not sure whether their rural marketing efforts are bearing fruit, says Anjan Sen, director at Deloitte's life sciences and healthcare practice. "Ultimately any model has to be commercially viable," he says. But results of such initiatives are slow to appear.
Aventis' Vete says that out of every 15 doctors touched by Prayas, six might prescribe its brands. And Novartis agrees that smaller packs meant that patients may not necessarily complete treatment. Industry executives say medicine retail is not just about capital but regulation as well-hawking prescription drugs requires a drug licence.
To win over the rural markets, companies need to offer hefty discounts to edge out local players who work on much lower margins, says MAPE's Adhia. They also need to rework their compensation to field staff by adding a larger component of performance-linked incentives to overall pay, he adds. Partnerships with other sectors such as FMCG and medical technology are on the anvil.
Crompton Greaves team wins German wind farm project order
Mumbai: Crompton Greaves has said it is part of a consortium of four companies that has bagged a turnkey contract from Amrumbank West for its German wind farm project.
Amrumbank West GmbH (AWG) is a wholly owned subsidiary company of E.ON Climate & Renewables Central Europe.
The Amrumbank West Wind farm is 40 km offshore in the North Sea.
An offshore substation will transform the voltage to 155 kilovolt (kV) and transmit about 300 megawatt (MW) to the grid, operated by Tennet TSO (Transmission System Operator).
Crompton Greaves said the wind farm will have 80 multi-megawatt wind turbines.
It will design, engineer, supply and integrate all critical high voltage power equipment to connect the 33 kV and 155 kV networks, including power transformers, high voltage and medium voltage switchgear and automation equipment.
The installation of the offshore high voltage substation is scheduled for 2014, and will be made operational in 2015.
“Crompton Greaves plans to augment its foray in the rapidly growing segment of offshore wind with its competitive offering in renewable energy solutions and application,” said Mr Laurent Demortier, the company's Managing Director.
Amrumbank West GmbH (AWG) is a wholly owned subsidiary company of E.ON Climate & Renewables Central Europe.
The Amrumbank West Wind farm is 40 km offshore in the North Sea.
An offshore substation will transform the voltage to 155 kilovolt (kV) and transmit about 300 megawatt (MW) to the grid, operated by Tennet TSO (Transmission System Operator).
Crompton Greaves said the wind farm will have 80 multi-megawatt wind turbines.
It will design, engineer, supply and integrate all critical high voltage power equipment to connect the 33 kV and 155 kV networks, including power transformers, high voltage and medium voltage switchgear and automation equipment.
The installation of the offshore high voltage substation is scheduled for 2014, and will be made operational in 2015.
“Crompton Greaves plans to augment its foray in the rapidly growing segment of offshore wind with its competitive offering in renewable energy solutions and application,” said Mr Laurent Demortier, the company's Managing Director.
Infosys buys Australia-based Portland BPO
Infosys BPO Limited, the business process outsourcing subsidiary of Infosys Limited, has signed a definitive agreement to acquire all of the outstanding share capital in Australia-based Portland Group Pty Ltd.
Portland Group is a leading provider of strategic sourcing and category management services. The acquisition is expected to be completed by early January 2012, subject to certain closing conditions being met. Portland Group was founded in 1999 and today counts several large ASX 200 organizations within the Australia region as clients. It is headquartered in Sydney and has offices in Melbourne, Brisbane, and Perth.
The company reported revenue of approximately AUD 31.3 million for the fiscal year ending 30 June 2011. The company employs 113 professionals. Swaminathan D, CEO and MD, Infosys BPO said, "We are delighted to have an outstanding team of domain specialists in Portland Group join us. This acquisition would significantly deepen our capabilities and domain expertise in our Sourcing and Procurement practice. Further in a dynamic marketplace such as Australasia this will strengthen the top-end of our service offering in the strategic sourcing and category management functions. This will also enhance the competitiveness, spread of offerings and global reach for our clients."
Gavin Solsky, CEO of Portland Group Pty Ltd said, "We believe the combination of Portland Group and Infosys will provide our clients with a highly compelling proposition that does not currently exist in the sourcing and procurement services market in Australia. It will allow us to offer our clients a truly integrated and globally competitive solution to deliver procurement benefits in the most effective and efficient way possible."
Portland Group's expertise in strategic sourcing and category management services is expected to complement Infosys BPO's global Sourcing & Procurement capabilities to create a market offering that will positively impact client's business efficiency and effectiveness. The purchase consideration for the deal is AUD 37 million, subject to customary post-completion adjustments.
Portland Group is a leading provider of strategic sourcing and category management services. The acquisition is expected to be completed by early January 2012, subject to certain closing conditions being met. Portland Group was founded in 1999 and today counts several large ASX 200 organizations within the Australia region as clients. It is headquartered in Sydney and has offices in Melbourne, Brisbane, and Perth.
The company reported revenue of approximately AUD 31.3 million for the fiscal year ending 30 June 2011. The company employs 113 professionals. Swaminathan D, CEO and MD, Infosys BPO said, "We are delighted to have an outstanding team of domain specialists in Portland Group join us. This acquisition would significantly deepen our capabilities and domain expertise in our Sourcing and Procurement practice. Further in a dynamic marketplace such as Australasia this will strengthen the top-end of our service offering in the strategic sourcing and category management functions. This will also enhance the competitiveness, spread of offerings and global reach for our clients."
Gavin Solsky, CEO of Portland Group Pty Ltd said, "We believe the combination of Portland Group and Infosys will provide our clients with a highly compelling proposition that does not currently exist in the sourcing and procurement services market in Australia. It will allow us to offer our clients a truly integrated and globally competitive solution to deliver procurement benefits in the most effective and efficient way possible."
Portland Group's expertise in strategic sourcing and category management services is expected to complement Infosys BPO's global Sourcing & Procurement capabilities to create a market offering that will positively impact client's business efficiency and effectiveness. The purchase consideration for the deal is AUD 37 million, subject to customary post-completion adjustments.
Registration for entrepreneur development scheme begins
Thiruvananthapuram: The Registration for Entrepreneur Development Mission, a scheme aimed at providing self-employment to one lakh youths through 10,000 new ventures, has begun, the State Finance Minister, Mr K.M. Mani, has said.
According to an official release, the application form can be downloaded from the Web site of the Kerala Financial Corporation (www.kfc.org) and the filled-in application should be submitted to the nearest local body. Educated, unemployed persons aged between 21 and 40 years can apply.
The scheme aims to launch 2,000 ventures every year, taking the figure to 10,000 in five years and providing employment to 20,000 persons annually. Through decentralised development, the scheme aims to provide one lakh jobs in five years. According to the release, ten ventures will be launched in each local body in the next five years.
Kerala Financial Corporation (KFC) is the nodal agency for the scheme. KFC and banks will provide loans up to 90 per cent of the project budget.
Those who repay the loan on time will not be charged any interest. The repayment deadline is five years with one-year moratorium. The ventures are the guarantee for the creditor.
The State Government will provide training to selected candidates, who will be briefed by experts and successful entrepreneurs. Candidates' minimum qualification is higher secondary/vocational training.
Those eligible for training will be selected between January 4 and 18.
The scheme is proposed to be launched on January 25 and training camps will be conducted between January 30 and March 2, Mr Mani said.
The scheme was announced in the last budget and Rs 25 crore has been allotted, the release added
According to an official release, the application form can be downloaded from the Web site of the Kerala Financial Corporation (www.kfc.org) and the filled-in application should be submitted to the nearest local body. Educated, unemployed persons aged between 21 and 40 years can apply.
The scheme aims to launch 2,000 ventures every year, taking the figure to 10,000 in five years and providing employment to 20,000 persons annually. Through decentralised development, the scheme aims to provide one lakh jobs in five years. According to the release, ten ventures will be launched in each local body in the next five years.
Kerala Financial Corporation (KFC) is the nodal agency for the scheme. KFC and banks will provide loans up to 90 per cent of the project budget.
Those who repay the loan on time will not be charged any interest. The repayment deadline is five years with one-year moratorium. The ventures are the guarantee for the creditor.
The State Government will provide training to selected candidates, who will be briefed by experts and successful entrepreneurs. Candidates' minimum qualification is higher secondary/vocational training.
Those eligible for training will be selected between January 4 and 18.
The scheme is proposed to be launched on January 25 and training camps will be conducted between January 30 and March 2, Mr Mani said.
The scheme was announced in the last budget and Rs 25 crore has been allotted, the release added
IIFCL to set up $1-bn infra debt fund via mutual funds by Feb
New Delhi: The India Infrastructure Finance Company (IIFCL) is planning to set up a $1-billion infrastructure debt fund through mutual fund route by the end of February 2012.
Such infrastructure debt funds (IDFs) are expected to address the long-term financing needs of infrastructure projects and fast-track them.
IIFCL Chairman and Managing Director S K Goel said Asian Development Bank and HSBC will contribute 25 per cent each to the fund. The remaining will come from IIFCL (26 per cent), IDBI Bank (14 per cent) and LIC (10 per cent).
IIFCL is looking for more foreign partners to sponsor the fund when its corpus increases. "Initial corpus is $1 billion but we can go on adding to it. One or two partners may not give a sizeable corpus. There is scope to expand it," said Goel.
An IDF can be set up as a trust or as a company. A trust-based IDF is a mutual fund that issues units, while a company-based fund is in the form of a non-banking finance company (NBFC) issuing bonds. While mutual funds are regulated by Sebi, NBFCs are regulated by RBI.
The state-run infrastructure financing arm was planning to use NBFCs to launch the fund; but later opted for the mutual fund route because "Sebi guidelines are more flexible".
India needs $1 trillion of investment in infrastructure in the XII Five-Year Plan.
Finance Minister Pranab Mukherjee had, in the 2011-12 Budget, announced setting up of IDFs to accelerate and enhance the flow of long-term debt to infrastructure projects for funding the government's infrastructure development programmes.
Infrastructure projects, given their long pay-back period, require long-term financing to be sustainable and cost effective. However, banks, the main source of funding these projects, are unable to provide long-term funding given their asset-liability mismatch. Moreover, banks are also approaching their exposure limits.
Infrastructure debt funds are expected to provide long-term low-cost debt for infrastructure projects by tapping into savings such as insurance and pension funds. By refinancing bank loans of projects, IDFs are expected to take over a fairly large volume of the bank debt that will release an equivalent volume for fresh lending to infrastructure projects. IDFs may also help accelerate the evolution of a secondary market for bonds, which is lacking depth.
Such infrastructure debt funds (IDFs) are expected to address the long-term financing needs of infrastructure projects and fast-track them.
IIFCL Chairman and Managing Director S K Goel said Asian Development Bank and HSBC will contribute 25 per cent each to the fund. The remaining will come from IIFCL (26 per cent), IDBI Bank (14 per cent) and LIC (10 per cent).
IIFCL is looking for more foreign partners to sponsor the fund when its corpus increases. "Initial corpus is $1 billion but we can go on adding to it. One or two partners may not give a sizeable corpus. There is scope to expand it," said Goel.
An IDF can be set up as a trust or as a company. A trust-based IDF is a mutual fund that issues units, while a company-based fund is in the form of a non-banking finance company (NBFC) issuing bonds. While mutual funds are regulated by Sebi, NBFCs are regulated by RBI.
The state-run infrastructure financing arm was planning to use NBFCs to launch the fund; but later opted for the mutual fund route because "Sebi guidelines are more flexible".
India needs $1 trillion of investment in infrastructure in the XII Five-Year Plan.
Finance Minister Pranab Mukherjee had, in the 2011-12 Budget, announced setting up of IDFs to accelerate and enhance the flow of long-term debt to infrastructure projects for funding the government's infrastructure development programmes.
Infrastructure projects, given their long pay-back period, require long-term financing to be sustainable and cost effective. However, banks, the main source of funding these projects, are unable to provide long-term funding given their asset-liability mismatch. Moreover, banks are also approaching their exposure limits.
Infrastructure debt funds are expected to provide long-term low-cost debt for infrastructure projects by tapping into savings such as insurance and pension funds. By refinancing bank loans of projects, IDFs are expected to take over a fairly large volume of the bank debt that will release an equivalent volume for fresh lending to infrastructure projects. IDFs may also help accelerate the evolution of a secondary market for bonds, which is lacking depth.
Micro-lenders can now raise up to $10 million a year overseas
Mumbai: Microfinance institutions may soon be able to borrow up to $10 million in a year overseas.
In a press release issued on Monday, the Reserve Bank of India said that MFIs may be permitted to raise funds through External Commercial Borrowing (ECB) under the automatic route.
The move is expected to address the issue of liquidity that the microfinance sector has been witnessing in recent times, according to leading players in the industry.
The criteria
According to the RBI guidelines, MFIs should have a satisfactory borrowing relationship for at least three years with a scheduled commercial bank authorised to deal in foreign exchange.
The bank would also require to issued a certificate of due diligence on ‘fit and proper' status of the board or committee of management of the MFI that is borrowing.
The ECB funds should be routed through normal banking channels.
In addition, NBFC-MFIs will also be permitted to borrow from multilateral institutions, such as International Finance Corporation and Asian Development Bank, the RBI said.
Other MFIs will be permitted to avail themselves of ECBs from international banks, multilateral financial institutions, export credit agencies, overseas organisations and individuals, subject to certain conditions, said the RBI.
The RBI has also increased the ECB limit of NGOs (non-government organisations), engaged in microfinance activities, to $10 million in a financial year, as against the current $5 million.
In a press release issued on Monday, the Reserve Bank of India said that MFIs may be permitted to raise funds through External Commercial Borrowing (ECB) under the automatic route.
The move is expected to address the issue of liquidity that the microfinance sector has been witnessing in recent times, according to leading players in the industry.
The criteria
According to the RBI guidelines, MFIs should have a satisfactory borrowing relationship for at least three years with a scheduled commercial bank authorised to deal in foreign exchange.
The bank would also require to issued a certificate of due diligence on ‘fit and proper' status of the board or committee of management of the MFI that is borrowing.
The ECB funds should be routed through normal banking channels.
In addition, NBFC-MFIs will also be permitted to borrow from multilateral institutions, such as International Finance Corporation and Asian Development Bank, the RBI said.
Other MFIs will be permitted to avail themselves of ECBs from international banks, multilateral financial institutions, export credit agencies, overseas organisations and individuals, subject to certain conditions, said the RBI.
The RBI has also increased the ECB limit of NGOs (non-government organisations), engaged in microfinance activities, to $10 million in a financial year, as against the current $5 million.
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