The Haryana government wants the BPO companies in Gurgaon to conduct campus interviews in state-owned colleges to motivate students to acquire skills that would help them get jobs in industries dealing with IT-enabled services (ITeS).
Sources in the state education department said that the industry leaders can choose the college in the region from where they want to kick off this initiative. It has been some time since the state government has been discussing the possibility of designing the college syllabus in such a manner that it makes the state's youngsters more employable.
While Gurgaon has emerged as the major BPO hub in north India, the manpower requirement is met from either Delhi or its adjoining cities. Confirming that the state government is thinking of incorporating subjects in college curriculum to meet the industry requirement, higher education secretary S S Prasad said that a high-level task force is looking into the suggestions made by the industry. Prasad was in Gurgaon to attend a workshop on Monday with the Nasscom representatives and top industry leaders.
This was also attended by deans and senior faculty of about 25 colleges besides representatives from companies such as Cognizant, Fidelity, IBM, Genpact and WNS. The education secretary said that the task force under the chairmanship of the chief secretary is meeting on January 20 to give concrete shape to the proposals made by the BPO industry. "The curriculum should be relevant to the industry. There is a need to fill the gap that exists between the industry and our education system," Prasad added.
It was decided in the workshop that the industry and the academia would jointly organize faculty training workshops, summer internships, industry visits for faculty and students, focused grooming of select interested students to help achieve early results and organize job fairs and campus interviews.
Subinder Khurana, chairman, Nasscom regional council, said that the focus is on improving infrastructure, expanding the industry footprint and increasing employment of local talent in the industry. Rakesh Kapoor, managing director of Summit Technologies, said that the education initiative is targeted at increasing the absorption of local talent in the IT/ BPO industry.
Success in my Habit
Thursday, January 12, 2012
Friday, January 6, 2012
Adani Group commissions country's largest solar project
Diversified Adani Group announced the commissioning of country's largest 40 mw solar power plant in Kutch district Gujarat. For India's largest private thermal power producer, the Solar Power Plant marks Adani's first big foray in the renewable energy sector. Going forward, Adani Group is planning to expand the capacity of this plant to 100 mw. The group is claiming to have commissioned country's largest solar power plant in record time of 150 days starting from foundation stone laying to electricity generation.
"We are pleased to dedicate country's largest solar plant to Nation today. We, at Adani, are committed to protect and encourage better use of natural resources of our country by implementing better technologies. The Solar plant and uses of Super Critical Technology in all of our Thermal Power Plants is a testimony of our commitment towards the environment," said Adani Group chairman Gautam Adani. The solar power plant is using solar PV technology and has over 400,000 solar PV modules mounted on 21,600 structures, which are erected on 130,000 foundations.
The power generated from this solar plant will be evacuated through a 66 KV line linked to a substation in Netra, located 20 kms away from the project site. The project was awarded under Gujarat Solar Power policy of 2009. Adani Power, a company of Adani Group, is currently operating 3,300 MW at Mundra with 4 units of 330 MW and 3 units of 660 MW, and is in the process of commissioning two more units of 660 MW by March 12 to achieve the final plant capacity of 4,620 MW. This will position Mundra as the single largest thermal power plant in India. Within this financial year, Adani Power also plans to commission 1320 MW at Tiroda enhancing operational capacity of Adani Power to 6000 MW by March 12. Further Adani Power plans to commission 6000 mw by March 2012 and 10,000 mw of power generation capacity by March 2013. This capacity will be achieved with Mundra (4620MW), Tiroda (3300MW) and Kawai (1320MW)
"We are pleased to dedicate country's largest solar plant to Nation today. We, at Adani, are committed to protect and encourage better use of natural resources of our country by implementing better technologies. The Solar plant and uses of Super Critical Technology in all of our Thermal Power Plants is a testimony of our commitment towards the environment," said Adani Group chairman Gautam Adani. The solar power plant is using solar PV technology and has over 400,000 solar PV modules mounted on 21,600 structures, which are erected on 130,000 foundations.
The power generated from this solar plant will be evacuated through a 66 KV line linked to a substation in Netra, located 20 kms away from the project site. The project was awarded under Gujarat Solar Power policy of 2009. Adani Power, a company of Adani Group, is currently operating 3,300 MW at Mundra with 4 units of 330 MW and 3 units of 660 MW, and is in the process of commissioning two more units of 660 MW by March 12 to achieve the final plant capacity of 4,620 MW. This will position Mundra as the single largest thermal power plant in India. Within this financial year, Adani Power also plans to commission 1320 MW at Tiroda enhancing operational capacity of Adani Power to 6000 MW by March 12. Further Adani Power plans to commission 6000 mw by March 2012 and 10,000 mw of power generation capacity by March 2013. This capacity will be achieved with Mundra (4620MW), Tiroda (3300MW) and Kawai (1320MW)
IRDA issues uniform ALM norms for insurers
Mumbai: Insurance regulator IRDA has issued uniform asset-liability management norms for insurers to manage their solvency, and asked insurance companies to undertake stress tests to ascertain their ability to meet financial obligations in the event of a crisis.
On examination of the extant norms being followed by insurance companies, IRDA found they were “incomplete and inconsistent. As the mandate by the authority was very broad, each insurer had adopted their own measures in reporting such details”.
“The Asset-Liability Management (ALM) is relevant to and critical for the sound management of the finances of the insurers that invest to meet their future cash flow needs and capital requirements,” IRDA said in a circular.
The guidelines, which would come into effect from April 1, make it mandatory for insurance companies to prepare an ALM policy and have it approved by the Insurance Regulatory and Development Authority (IRDA) by March-end.
“Stress testing being critical in the management of risks and the financial soundness of the insurers… the authority has mandated all insurers to conduct scenario and sensitivity testing,” IRDA said.
Effective procedures
IRDA has asked the insurance companies to determine their ability to meet financial liabilities after taking into account factors like a 30 per cent fall in equity values and a one percentage point decline in yields on fixed investments, among others.
IRDA has issued these guidelines to bring about uniformity in the ALM norms being followed by both life and non-life insurance companies.
IRDA has said that insurers would have to put in place effective procedures for monitoring and managing their asset-liability positions to ensure that their investment activities and asset positions are appropriate to their liability, risk profiles and solvency positions and it should be used to measure the interest rate risk faced by insurers.
The ALM policy should enable the insurers to understand the risks they are exposed to and develop ALM policies to manage them effectively.
On examination of the extant norms being followed by insurance companies, IRDA found they were “incomplete and inconsistent. As the mandate by the authority was very broad, each insurer had adopted their own measures in reporting such details”.
“The Asset-Liability Management (ALM) is relevant to and critical for the sound management of the finances of the insurers that invest to meet their future cash flow needs and capital requirements,” IRDA said in a circular.
The guidelines, which would come into effect from April 1, make it mandatory for insurance companies to prepare an ALM policy and have it approved by the Insurance Regulatory and Development Authority (IRDA) by March-end.
“Stress testing being critical in the management of risks and the financial soundness of the insurers… the authority has mandated all insurers to conduct scenario and sensitivity testing,” IRDA said.
Effective procedures
IRDA has asked the insurance companies to determine their ability to meet financial liabilities after taking into account factors like a 30 per cent fall in equity values and a one percentage point decline in yields on fixed investments, among others.
IRDA has issued these guidelines to bring about uniformity in the ALM norms being followed by both life and non-life insurance companies.
IRDA has said that insurers would have to put in place effective procedures for monitoring and managing their asset-liability positions to ensure that their investment activities and asset positions are appropriate to their liability, risk profiles and solvency positions and it should be used to measure the interest rate risk faced by insurers.
The ALM policy should enable the insurers to understand the risks they are exposed to and develop ALM policies to manage them effectively.
Trai issues norms for better customer services
New Delhi: Telecom Regulatory Authority of India (TRAI) today mandated all operators to set up a complaint centre that would have a toll-free number and can be accessed by a subscriber of even another mobile operator.
Trai’s Telecom Consumers Complaint Regulations, 2012, said such a centre would be responsible in addressing all complaints it receives. Further, all operators have to set up a web-based complaint monitoring system, through which the consumer can track their complaints, according to the regulations.
A two-tier system will replace the existing three-tier complaint redressal mechanism — now comprising call centre, nodal centre and appellate authority — by doing away with the nodal officer. This is because the complaint centres are essentially registration and response centres, and do not deal with the resolution of complaints. They only facilitate registration of consumer complaints — and the level at which a problem is resolved within a company depends on the complexity of the issue involved, Trai said.
Every complaint at the centre will be registered by giving a unique docket number, which will remain in the system for at least three months. The docket number, along with the date and time of registration and the time limit for resolution of the complaint, would be communicated to the consumer through SMS. The customer shall also be informed of the action taken through a texted message over the mobile phone. The service provider will set up a two-member advisory committee in each of the service areas. It will comprise a member from the consumer organisation registered with Trai, and another member from the service provider.
Further, mobile operators will publish a citizen’s charter that will contain different time-frames specified by the authority for various complaints and various procedures related to services -- such as mobile number portability, amount to be deducted and consumer's rights, the regulator added.
Trai’s Telecom Consumers Complaint Regulations, 2012, said such a centre would be responsible in addressing all complaints it receives. Further, all operators have to set up a web-based complaint monitoring system, through which the consumer can track their complaints, according to the regulations.
A two-tier system will replace the existing three-tier complaint redressal mechanism — now comprising call centre, nodal centre and appellate authority — by doing away with the nodal officer. This is because the complaint centres are essentially registration and response centres, and do not deal with the resolution of complaints. They only facilitate registration of consumer complaints — and the level at which a problem is resolved within a company depends on the complexity of the issue involved, Trai said.
Every complaint at the centre will be registered by giving a unique docket number, which will remain in the system for at least three months. The docket number, along with the date and time of registration and the time limit for resolution of the complaint, would be communicated to the consumer through SMS. The customer shall also be informed of the action taken through a texted message over the mobile phone. The service provider will set up a two-member advisory committee in each of the service areas. It will comprise a member from the consumer organisation registered with Trai, and another member from the service provider.
Further, mobile operators will publish a citizen’s charter that will contain different time-frames specified by the authority for various complaints and various procedures related to services -- such as mobile number portability, amount to be deducted and consumer's rights, the regulator added.
RBI raises FCCB limit to $750 million
Mumbai: In a bid to give India Inc respite from possible pressures arising from redemption of foreign currency convertible bonds, the Reserve Bank of India on Thursday said eligible borrowers can raise these bonds for up to $750 million or equivalent per financial year for permissible end-uses.
Similarly, corporates in specified service sectors such as hotel, hospital and software can raise FCCBs up to $200 million or equivalent for permissible end-uses during a financial year subject to the condition that the borrowing is not used for acquisition of land.
A FCCB is a hybrid debt and equity instrument issued in foreign currency. Not only does it gives the bondholder regular coupon and principal payments, but also gives the option to convert the bond into shares.
The central bank's move on FCCB comes in the wake of its September 2011 notification whereby the external commercial borrowing (ECB) limit for eligible borrowers under the automatic route was enhanced from $500 million to $750 million or equivalent per financial year for permissible end-uses.
Consequent to the enhancement in the limits under the automatic route, the RBI clarified that the ECB/FCCB availed for the purpose of refinancing the existing outstanding FCCB will be reckoned as part of the limit of $750 million.
The enhancement in the ECB/FCCB comes at a time when India Inc is staring huge FCCB and ECB redemptions in 2011-12.
According to a CRISIL report, repayment of foreign currency convertible bonds and external commercial borrowings and related interest payments add up to nearly $16 billion.
“Corporate debt repayment may continue to exert downward pressure on the rupee through the rest of the fiscal as Indian companies pay back their foreign debt. Considering the prevailing weakness in the equity markets, it would be difficult to swap FCCB repayments with equity or roll them over,” the report said.
The RBI, in its notification, said that consequent to the enhancement in ECB limits, the revised average maturity guidelines under the automatic route would be: ECB up to $20 million or equivalent in a financial year with minimum average maturity of three years; and ECB above $20 million and up to $750 million or equivalent in a financial year with minimum average maturity of five years.
Similarly, corporates in specified service sectors such as hotel, hospital and software can raise FCCBs up to $200 million or equivalent for permissible end-uses during a financial year subject to the condition that the borrowing is not used for acquisition of land.
A FCCB is a hybrid debt and equity instrument issued in foreign currency. Not only does it gives the bondholder regular coupon and principal payments, but also gives the option to convert the bond into shares.
The central bank's move on FCCB comes in the wake of its September 2011 notification whereby the external commercial borrowing (ECB) limit for eligible borrowers under the automatic route was enhanced from $500 million to $750 million or equivalent per financial year for permissible end-uses.
Consequent to the enhancement in the limits under the automatic route, the RBI clarified that the ECB/FCCB availed for the purpose of refinancing the existing outstanding FCCB will be reckoned as part of the limit of $750 million.
The enhancement in the ECB/FCCB comes at a time when India Inc is staring huge FCCB and ECB redemptions in 2011-12.
According to a CRISIL report, repayment of foreign currency convertible bonds and external commercial borrowings and related interest payments add up to nearly $16 billion.
“Corporate debt repayment may continue to exert downward pressure on the rupee through the rest of the fiscal as Indian companies pay back their foreign debt. Considering the prevailing weakness in the equity markets, it would be difficult to swap FCCB repayments with equity or roll them over,” the report said.
The RBI, in its notification, said that consequent to the enhancement in ECB limits, the revised average maturity guidelines under the automatic route would be: ECB up to $20 million or equivalent in a financial year with minimum average maturity of three years; and ECB above $20 million and up to $750 million or equivalent in a financial year with minimum average maturity of five years.
Narendra Modi's Rs 78,000 cr hi-tech city GIFT to try new concepts; may shape future city technologies
Ahmedabad: Narendra Modi would not have thought of Gujarat International Finance Tec-City (GIFT) as the test-bed for future city technologies, but his dream project in Gandhinagar may well have this interesting spillover. Work on the proposed Rs 78,000-crore nano city has now started, and the first occupant may move in by March.
By the time the first phase is completed in three-and-a-half years, this special economic zone (SEZ) would have tried out, on a small scale, some contemporary urban design ideas.
GIFT would have a command and control centre to monitor the IT infrastructure and respond quickly during emergencies (a fire anywhere, for example, will trigger an automatic response). The city will use the energy-efficient district cooling system instead of air-conditioning. It will also use an automated waste collection system that sucks away garbage from buildings at high speed. Says GIFT Director Ramakant Jha: "We will now try on a pilot scale many technologies that will be used when the city is developed fully."
District cooling, which uses chilled water to cool buildings, is being tried in a few places such as Toronto, Cornell University and Masdar City in Abu Dhabi. Its proponents say the technology consumes 90% less energy compared with traditional air-conditioning.
In automated vacuum waste collection systems, garbage is sorted out and then sucked away at high speed through underground tubes to a central location, which can be as far as 20 km away. It is being used in cities such as London, Montreal, Stockholm and Barcelona. No Indian city has these technologies yet.
These concepts may be widely used in smart cities of future as they are considered sustainable. District cooling, for example, can be used easily with renewable energy. Automated waste collection can be combined with biomass energy generation systems, so GIFT will burn waste to generate energy. Greenfield cities such as GIFT have an opportunity to test new technologies before they are adopted in existing Indian cities.
Top-Notch Global Fin Centre
GIFT was conceived in 2007 and the idea was developed initially by a set of consultants such as McKinsey and urban development specialist Fairwood Consultants. It is being planned as a top-notch global financial centre to rival London, New York and Hong Kong.
On a more immediate time scale, it is being built to attract companies from Mumbai, Gurgaon and even Bangalore. After the initial flurry of announcements, the project entered a stage of lull due to the global economic meltdown in 2008. With the city being granted permission last November to operate as a multi-services SEZ, the Gujarat government is keen to take it forward quickly.
The stock exchanges of London, Tokyo and Singapore have evinced interest in setting up offices in GIFT, as have many Indian banks. Singapore Co-operation Enterprises, a government agency, has just signed an agreement with GIFT to develop a banking enclave.
"Liberty to transact in foreign currency at the IFSC in GIFT will significantly raise foreign firms' investment and participation in India," says SS Thakur, former chairman of HDFC and former controller of foreign exchange in the Reserve Bank of India. Similar financial centres in Hong Kong, Dubai, China, Malaysia, the UK (London) and the US (New York) contribute 5-60% of GDP of their respective countries. GIFT is expected to create 10 lakh jobs in 10 years.
Fairwood Consultants, which developed the first master plan, had envisaged a 'next-class city'. It proposed 110 buildings with the tallest being 88 stories. "God does not give us land anymore," says Vikas Chopra, senior vice-president of Fairwood, which is no longer associated with the project. Concentrating urban life into a small area was an eminently 21st Century concept as it made many services cost-effective and environment-friendly.
However, GIFT will have to wait a while to go vertical. Currently, it has clearance to build only up to 122 metres since the airport is seven km away. In 6-7 years, the airport will shift to a new location, allowing GIFT to soar high.
GIFT had made changes to the original plan, which had proposed subterranean roads and four levels of underground parking, leaving the surface purely for pedestrians. It had also envisaged a Personal Rapid Transit System similar to the one operational at London's Heathrow airport and one planned for Amritsar. Now, the parking will be on the surface since underground parking and roads are too expensive.
The Personal Mass Rapid Transit System has been dropped as the Metro would come right up to GIFT. However, cars will remain in the periphery as residents and visitors will use district-cooled, moving walkways to get to the city centre. The city is being planned in such a way that future planners do not have to dig for 100 years.
The first phase of GIFT would experiment with new technology concepts to see if they can be replicated on a larger scale. It would involve two 30-storey buildings with around 10,000 people working inside. The investment for infrastructure in this phase would be Rs 1,400 crore, and around Rs 10,000 crore for all the three phases. The city would need a total investment of Rs 78,000 crore.
By the time the first phase is completed in three-and-a-half years, this special economic zone (SEZ) would have tried out, on a small scale, some contemporary urban design ideas.
GIFT would have a command and control centre to monitor the IT infrastructure and respond quickly during emergencies (a fire anywhere, for example, will trigger an automatic response). The city will use the energy-efficient district cooling system instead of air-conditioning. It will also use an automated waste collection system that sucks away garbage from buildings at high speed. Says GIFT Director Ramakant Jha: "We will now try on a pilot scale many technologies that will be used when the city is developed fully."
District cooling, which uses chilled water to cool buildings, is being tried in a few places such as Toronto, Cornell University and Masdar City in Abu Dhabi. Its proponents say the technology consumes 90% less energy compared with traditional air-conditioning.
In automated vacuum waste collection systems, garbage is sorted out and then sucked away at high speed through underground tubes to a central location, which can be as far as 20 km away. It is being used in cities such as London, Montreal, Stockholm and Barcelona. No Indian city has these technologies yet.
These concepts may be widely used in smart cities of future as they are considered sustainable. District cooling, for example, can be used easily with renewable energy. Automated waste collection can be combined with biomass energy generation systems, so GIFT will burn waste to generate energy. Greenfield cities such as GIFT have an opportunity to test new technologies before they are adopted in existing Indian cities.
Top-Notch Global Fin Centre
GIFT was conceived in 2007 and the idea was developed initially by a set of consultants such as McKinsey and urban development specialist Fairwood Consultants. It is being planned as a top-notch global financial centre to rival London, New York and Hong Kong.
On a more immediate time scale, it is being built to attract companies from Mumbai, Gurgaon and even Bangalore. After the initial flurry of announcements, the project entered a stage of lull due to the global economic meltdown in 2008. With the city being granted permission last November to operate as a multi-services SEZ, the Gujarat government is keen to take it forward quickly.
The stock exchanges of London, Tokyo and Singapore have evinced interest in setting up offices in GIFT, as have many Indian banks. Singapore Co-operation Enterprises, a government agency, has just signed an agreement with GIFT to develop a banking enclave.
"Liberty to transact in foreign currency at the IFSC in GIFT will significantly raise foreign firms' investment and participation in India," says SS Thakur, former chairman of HDFC and former controller of foreign exchange in the Reserve Bank of India. Similar financial centres in Hong Kong, Dubai, China, Malaysia, the UK (London) and the US (New York) contribute 5-60% of GDP of their respective countries. GIFT is expected to create 10 lakh jobs in 10 years.
Fairwood Consultants, which developed the first master plan, had envisaged a 'next-class city'. It proposed 110 buildings with the tallest being 88 stories. "God does not give us land anymore," says Vikas Chopra, senior vice-president of Fairwood, which is no longer associated with the project. Concentrating urban life into a small area was an eminently 21st Century concept as it made many services cost-effective and environment-friendly.
However, GIFT will have to wait a while to go vertical. Currently, it has clearance to build only up to 122 metres since the airport is seven km away. In 6-7 years, the airport will shift to a new location, allowing GIFT to soar high.
GIFT had made changes to the original plan, which had proposed subterranean roads and four levels of underground parking, leaving the surface purely for pedestrians. It had also envisaged a Personal Rapid Transit System similar to the one operational at London's Heathrow airport and one planned for Amritsar. Now, the parking will be on the surface since underground parking and roads are too expensive.
The Personal Mass Rapid Transit System has been dropped as the Metro would come right up to GIFT. However, cars will remain in the periphery as residents and visitors will use district-cooled, moving walkways to get to the city centre. The city is being planned in such a way that future planners do not have to dig for 100 years.
The first phase of GIFT would experiment with new technology concepts to see if they can be replicated on a larger scale. It would involve two 30-storey buildings with around 10,000 people working inside. The investment for infrastructure in this phase would be Rs 1,400 crore, and around Rs 10,000 crore for all the three phases. The city would need a total investment of Rs 78,000 crore.
India keen on participating in Saudi Arabia's oil, gas sectors
New Delhi: India on Wednesday expressed keen interest in participating in the petroleum and gas sectors in Saudi Arabia, including upstream and downstream.
In return, it has invited Saudi Arabia to invest in the Indian petroleum and gas-based mega industrial estates, fertilisers, petrochemical plants and refineries.
Stating this during a meeting with his Saudi Arabian counterpart Dr Tawfiq bin Fawzan Al-Rabiah, the Commerce and Industry Minister, Mr Anand Sharma, observed that the focus of the two countries should now be on investment and joint ventures to enhance bilateral trade and services.
Mr Sharma also said the two sides have to develop strategies to increase the trade volume in traditional items and diversify the trade basket.
He noted that both countries have pledged to elevate the current buyer-seller relationship into one of strategic energy co-operation.
Ease visa rules
Earlier in the day, speaking at a FICCI function, the Saudi Arabian Commerce and Industry Minister sought an easing of visa rules by India to facilitate greater movement of people between the two countries and to help boost bilateral ties.
Dr Al-Rabiah, who is accompanied by a 35-member business delegation, said there was “huge potential” for more trade with India and enhanced bilateral engagement in sectors such as information technology, infrastructure, and education.
The bilateral trade increased from $15.9 billion in 2006-07 to $25.6 billion in 2010-11.
Exports, imports
The exports to Saudi Arabia have doubled from $2.6 billion in 2006-07 to $5.2 billion in 2010-11. The main items of export to Saudi Arabia are petroleum, basmati rice, dyes, machinery and instruments, iron and steel. Imports from Saudi Arabia have jumped from $13.35 billion in 2006-07 to $20.4 billion in 2010-11. The major items of imports are petroleum, chemicals, artificial resin and plastics. India imports almost a quarter of its crude oil requirements from Saudi Arabia.
In return, it has invited Saudi Arabia to invest in the Indian petroleum and gas-based mega industrial estates, fertilisers, petrochemical plants and refineries.
Stating this during a meeting with his Saudi Arabian counterpart Dr Tawfiq bin Fawzan Al-Rabiah, the Commerce and Industry Minister, Mr Anand Sharma, observed that the focus of the two countries should now be on investment and joint ventures to enhance bilateral trade and services.
Mr Sharma also said the two sides have to develop strategies to increase the trade volume in traditional items and diversify the trade basket.
He noted that both countries have pledged to elevate the current buyer-seller relationship into one of strategic energy co-operation.
Ease visa rules
Earlier in the day, speaking at a FICCI function, the Saudi Arabian Commerce and Industry Minister sought an easing of visa rules by India to facilitate greater movement of people between the two countries and to help boost bilateral ties.
Dr Al-Rabiah, who is accompanied by a 35-member business delegation, said there was “huge potential” for more trade with India and enhanced bilateral engagement in sectors such as information technology, infrastructure, and education.
The bilateral trade increased from $15.9 billion in 2006-07 to $25.6 billion in 2010-11.
Exports, imports
The exports to Saudi Arabia have doubled from $2.6 billion in 2006-07 to $5.2 billion in 2010-11. The main items of export to Saudi Arabia are petroleum, basmati rice, dyes, machinery and instruments, iron and steel. Imports from Saudi Arabia have jumped from $13.35 billion in 2006-07 to $20.4 billion in 2010-11. The major items of imports are petroleum, chemicals, artificial resin and plastics. India imports almost a quarter of its crude oil requirements from Saudi Arabia.
Banks must acknowledge, streamline MSME loan applications: RBI
Mumbai: The Reserve Bank of India has asked banks to mandatorily acknowledge all loan applications, submitted either manually or online, by micro, small and medium enterprise (MSME) borrowers. The central bank has reiterated the above directive following complaints from industry associations/ chambers that banks are not acknowledging loan applications.
Banks have been asked to ensure that a running serial number is recorded on the loan application form as well as the acknowledgement receipt. Further, banks are encouraged to start a central registration for loan applications, the RBI said. The same technology may be used for online submission of loan applications to enable online tracking.
Better design
The RBI emphasised that loan application forms have to be so designed that all documents required to be executed by the borrower on sanction of the loan form a part of it. The forms should have a checklist of the documents required to be submitted by the applicant and the formalities to be completed, post-sanction.
For micro enterprises, simplified application-cum-sanction form, printed in regional language, should be introduced for loans up to Rs 1 crore.
Banks should consider introducing a committee approach for sanction of new loans as also rehabilitation cases. This will improve the quality of decision as the members' collective wisdom will be utilised, especially while taking decision on loan applications for greenfield projects in the sector or rehabilitation proposals.
The RBI said banks should give it an ‘action taken report' on compliance with these directives by the end of this month.
Banks have been asked to ensure that a running serial number is recorded on the loan application form as well as the acknowledgement receipt. Further, banks are encouraged to start a central registration for loan applications, the RBI said. The same technology may be used for online submission of loan applications to enable online tracking.
Better design
The RBI emphasised that loan application forms have to be so designed that all documents required to be executed by the borrower on sanction of the loan form a part of it. The forms should have a checklist of the documents required to be submitted by the applicant and the formalities to be completed, post-sanction.
For micro enterprises, simplified application-cum-sanction form, printed in regional language, should be introduced for loans up to Rs 1 crore.
Banks should consider introducing a committee approach for sanction of new loans as also rehabilitation cases. This will improve the quality of decision as the members' collective wisdom will be utilised, especially while taking decision on loan applications for greenfield projects in the sector or rehabilitation proposals.
The RBI said banks should give it an ‘action taken report' on compliance with these directives by the end of this month.
India Inc raises $1.6 bn via ECBs in Nov 2011
Mumbai: India Inc raised raised $ 1.6 billion via external commercial borrowings (ECBs) in November, 2011. According to the Reserve Bank of India (RBI), the ECB borrowing dipped by $900 million as against $2.5 billion in October 2011.
Under the automatic route, 78 companies raised $ 1.3 billion. ONGC Mangalore Petrochem raised $250 million and Tata Teleservices borrowed $200 million for financing of new project and import of capital goods respectively. Infrastructure Development Finance Corporation (IDFC) also raised $100 million for onward lending to infrastructure projects via ECB.
Currently, the government allows the companies to raise up to $750 million under the automatic route in a year. Beyond $750 million, approval by the RBI is required.
A total of $253 million was raised under the approval route that requires case-by-case nod by the regulator. Under the approval route, Dredging Corporation of India raised $253 million for development of ports, while The India Hotels Company borrowed $95 million. No foreign currency convertible bonds (FCCB) were issued.
The ECB borrowings have slowed over the past few months as the global economic outlook is weak and firms are following a wait and watch policy with respect to their investment activities, economists said.
Under the automatic route, 78 companies raised $ 1.3 billion. ONGC Mangalore Petrochem raised $250 million and Tata Teleservices borrowed $200 million for financing of new project and import of capital goods respectively. Infrastructure Development Finance Corporation (IDFC) also raised $100 million for onward lending to infrastructure projects via ECB.
Currently, the government allows the companies to raise up to $750 million under the automatic route in a year. Beyond $750 million, approval by the RBI is required.
A total of $253 million was raised under the approval route that requires case-by-case nod by the regulator. Under the approval route, Dredging Corporation of India raised $253 million for development of ports, while The India Hotels Company borrowed $95 million. No foreign currency convertible bonds (FCCB) were issued.
The ECB borrowings have slowed over the past few months as the global economic outlook is weak and firms are following a wait and watch policy with respect to their investment activities, economists said.
Wednesday, January 4, 2012
Auto Expo 2012: Ford sees China, India fuelling auto market growth
NEW DELHI: The global automobile market is likely to grow by 5 percent a year for the next two years, led by China and India, Ford Motor Co CEO Alan Mulally said, after the U.S. automaker launched a global compact sports utility vehicle in India.
The EcoSport is the second of eight new global models that Ford plans to launch in India, the company said in a statement earlier, as it targets Asian and African markets in a push to increase annual global sales to 8 million vehicles by 2015.
"The global automobile market is expected to grow by 5 percent in the next two years and most of it will come from the Asia Pacific region," Mulally told reporters in the Indian capital after unveiling the EcoSport.
"There is some slowdown in Asia Pacific but it is a very good market with a huge potential. In the Asia Pacific market, China and India will drive the growth," he said.
Ford, which sold just under 100,000 cars in India in 2011, a rise of 15 percent from the previous year, has said it expects Asian sales volumes to double to account for a third of the carmaker's global sales by 2020.
"The Indian market will be the third largest by the end of the decade behind the U.S. and China," Joe Hinrichs, group vice-president and Asia Pacific and Africa president told reporters.
"We are still bullish on India and we expect significant growth as per capita income rises in tier-II and -III cities."
India's car sales, which grew 30 percent in the year that ended in March 2011, are expected to be flat in the current financial year, an industry body said last month, as high interest rates and rising input costs bite.
Despite slowing economic growth, India's young population, rising salaries and low penetration makes it a key market for global carmakers such as Ford as economic turmoil continues to keep developed markets sluggish.
Renault said on Tuesday it would announce plans for low-cost cars in India this year with Japanese affiliate Nissan, after weighing the alliance's technologies against those of potential partners.
Ford will invest $142 million in its 200,000 vehicles-a-year plant in Chennai in south India, where the carmaker builds its Figo and Fiesta models, to buy equipment to manufacture the EcoSport, said Michael Boneham, managing director of Ford India.
Ford, the only U.S. automaker not to take a federal bailout in 2009, said it will make the EcoSport for the domestic and export markets. It, however, did not disclose the price of the vehicle.
The car was launched a day ahead of the start of India's Auto Expo where fuel-efficient cars and a slew of new SUV models will be unveiled as global carmakers continue to rev up their activity in one of the world's few growth engines.
The 2012 India Auto Expo, held once every two years, begins on Thursday in New Delhi.
The EcoSport is the second of eight new global models that Ford plans to launch in India, the company said in a statement earlier, as it targets Asian and African markets in a push to increase annual global sales to 8 million vehicles by 2015.
"The global automobile market is expected to grow by 5 percent in the next two years and most of it will come from the Asia Pacific region," Mulally told reporters in the Indian capital after unveiling the EcoSport.
"There is some slowdown in Asia Pacific but it is a very good market with a huge potential. In the Asia Pacific market, China and India will drive the growth," he said.
Ford, which sold just under 100,000 cars in India in 2011, a rise of 15 percent from the previous year, has said it expects Asian sales volumes to double to account for a third of the carmaker's global sales by 2020.
"The Indian market will be the third largest by the end of the decade behind the U.S. and China," Joe Hinrichs, group vice-president and Asia Pacific and Africa president told reporters.
"We are still bullish on India and we expect significant growth as per capita income rises in tier-II and -III cities."
India's car sales, which grew 30 percent in the year that ended in March 2011, are expected to be flat in the current financial year, an industry body said last month, as high interest rates and rising input costs bite.
Despite slowing economic growth, India's young population, rising salaries and low penetration makes it a key market for global carmakers such as Ford as economic turmoil continues to keep developed markets sluggish.
Renault said on Tuesday it would announce plans for low-cost cars in India this year with Japanese affiliate Nissan, after weighing the alliance's technologies against those of potential partners.
Ford will invest $142 million in its 200,000 vehicles-a-year plant in Chennai in south India, where the carmaker builds its Figo and Fiesta models, to buy equipment to manufacture the EcoSport, said Michael Boneham, managing director of Ford India.
Ford, the only U.S. automaker not to take a federal bailout in 2009, said it will make the EcoSport for the domestic and export markets. It, however, did not disclose the price of the vehicle.
The car was launched a day ahead of the start of India's Auto Expo where fuel-efficient cars and a slew of new SUV models will be unveiled as global carmakers continue to rev up their activity in one of the world's few growth engines.
The 2012 India Auto Expo, held once every two years, begins on Thursday in New Delhi.
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