Naypyitaw (Myanmar): A new onshore oil block that will be explored by Jubilant Technologies, a paper mill to be set up by JK Mills and a pump plant by Kirloskar are the immediate business gains of Prime Minister Manmohan Singh’s visit to Myanmar, the first by an Indian Prime Minister in 25 years.
A joint statement by the two governments listed a host of other measures to bring India and Myanmar closer together. These included initiatives in economic cooperation, connectivity, development cooperation, trade and investment promotion, capacity building and human resource development, culture & people-to-people contacts, and academic exchanges.
Gaps in connectivity and physical infrastructural linkage with Myanmar in the highways, railways and civil aviation sectors are to be filled.
The scale of most of the projects undertaken is small, in recognition of the capacities of both sides. For instance, $5 million (Rs 27 crore) per year for five years will be allocated for small developmental projects such as schools, small roads & bridges, agriculture and agro-processing projects and related training programmes in the Naga Self Administered Zone (in the Sagaing division, bordering Manipur) and the Chin State (bordering Mizoram) in Myanmar. Road connectivity that will enable the Imphal-Mandalay bus service to be operational through the year (the road is currently unusable during the rainy season) will be undertaken.
An Air Services Agreement was signed, enabling Indian carriers to combine their flights to Myanmar with other destinations in Southeast Asia and elsewhere. A working group will discuss possibilities of enhancing rail connectivity, movement of freight from India to Southeast Asia and cooperation in the railway sector.
At the political level, the Prime Minister and President Thein Sein of Myanmar assured each other that territories of either country would not be allowed to be used for activities inimical to the other. This includes insurgents of all kinds.
Success in my Habit
Tuesday, May 29, 2012
Monday, May 28, 2012
India expansion on for global cash & carry chains
New Delhi: International cash and carry chains in the retail sector want to expand through the year in India, despite the economic slowdown and dip in foreign investor confidence.
Having no foreign direct investment (FDI) restriction, these wholesale chains are allowed to sell products only to retailers, professional users, caterers, institutional buyers and other businesses, which need special licences to buy from these outlets.
Walmart, the $446-billion American retail giant, which operates cash and carry outlets in India in a 50-50 joint venture with the Bharti group, expects to open 12 to 15 wholesale outlets in 2012, against 10 in 2011. At an average cost of $6-7 million (Rs 33-38 crore) per store, excluding land and construction cost, 15 outlets would mean an investment of anything between Rs 500 crore and Rs 600 crore. With land and construction cost, total investment could double.
Even as Walmart has been waiting for the government to allow FDI in multi-brand retail, it is bullish on the India market for cash and carry outlets. It has opened two more in India this year and has a total of 17 till now.
Metro, the top German cash and carry group, which has an estimated annual revenue of euro 67 billion, is also planning to stay on the expansion path this year in India. While noting the challenging general economic conditions, a company spokesperson said, “Allocation of capex funds is to be prioritised more strongly.”
He said the Metro group had decided, therefore, “to first concentrate on like-for-like (existing stores) sales growth and to accelerate the expansion in selected countries, where we are already well established with our business model”. India is among the select countries where the German chain wants to continue to expand. As against three store launches in 2011, Metro has opened two (New Delhi and Jaipur) in the first five months of 2012. At around Rs 60-70 crore investment on each wholesale centre, a Metro spokesperson said many more outlets would be opened across the country over the next few years, but did not elaborate on the specifics.
French retail major Carrefour (annual sales worth euro 112 billion), which had launched one cash and carry outlet each in 2010 and 2011, may go for another store opening later this year, sector sources said. The company did not talk about its India plans. Carrefour, like Walmart, wants to set up operations in multi-brand retail in India and is waiting for the government to give a green signal. Its India head, Jean Noel Bironneau, had met commerce and industry minister Anand Sharma a few days before, perhaps to discuss issues related to multi-brand FDI.
UK-based Booker, a $6.5-billion cash and carry chain, has in the first five months of 2012 already surpassed last year’s store launch. This calendar year, it has opened two wholesale centres, with more planned, against just one in 2011. Zunaid Bangee, chief executive officer, Booker India, said the general global and European economic climate had not impacted the store opening plans. When asked if the company’s investment decisions would be influenced by the dip in global investor confidence in India at this point, Bangee replied, “No, this will not have an impact on our expansion plans.” The company plans to open up to 20 stores in India over the next five years. Its first outlet opened in Mumbai in 2009 and it has a total of four wholesale centres in the country.
Walmart, which had opened its first wholesale store in India in 2009, along with Bharti, dismisses the view that the global economic climate could influence its store expansion plans. “Saving people money so they can live better is at the heart of everything we do,” the spokesperson said, adding, “this is especially relevant in an economic slowdown”.
On global investors’ mood, a Bharti-Walmart spokesperson said, “The India story remains strong with the international business community.” Adding, “There is understanding and appreciation of the factors that impact policy making, particularly in India’s vibrant democracy.” Walmart is here in India for the long term, the executive added.
The Metro executive expressed similar sentiments. “We are confident in the big potential of the India market. We are on a growth path and well positioned to expand our presence in other parts of the country,” he said. The oldest international cash and carry chain in India, it opened its first outlet in the country some eight years before. Having picked up speed recently, it has a total of 11 wholesale outlets in India till now. Apart from India, Metro has launched two outlets, in both China and Kazakhstan, and one each in Poland, Russia and Vietnam this calendar year till April. “We will continue to grow in our existing markets, with a focus on Eastern Europe and Asia,” the executive said.
Cash-and-carry represents an opportunity worth around $150 billion (Rs 8.25 lakh crore) of the $500-billion (Rs 27.5 lakh crore) annual retail business in India.
Having no foreign direct investment (FDI) restriction, these wholesale chains are allowed to sell products only to retailers, professional users, caterers, institutional buyers and other businesses, which need special licences to buy from these outlets.
Walmart, the $446-billion American retail giant, which operates cash and carry outlets in India in a 50-50 joint venture with the Bharti group, expects to open 12 to 15 wholesale outlets in 2012, against 10 in 2011. At an average cost of $6-7 million (Rs 33-38 crore) per store, excluding land and construction cost, 15 outlets would mean an investment of anything between Rs 500 crore and Rs 600 crore. With land and construction cost, total investment could double.
Even as Walmart has been waiting for the government to allow FDI in multi-brand retail, it is bullish on the India market for cash and carry outlets. It has opened two more in India this year and has a total of 17 till now.
Metro, the top German cash and carry group, which has an estimated annual revenue of euro 67 billion, is also planning to stay on the expansion path this year in India. While noting the challenging general economic conditions, a company spokesperson said, “Allocation of capex funds is to be prioritised more strongly.”
He said the Metro group had decided, therefore, “to first concentrate on like-for-like (existing stores) sales growth and to accelerate the expansion in selected countries, where we are already well established with our business model”. India is among the select countries where the German chain wants to continue to expand. As against three store launches in 2011, Metro has opened two (New Delhi and Jaipur) in the first five months of 2012. At around Rs 60-70 crore investment on each wholesale centre, a Metro spokesperson said many more outlets would be opened across the country over the next few years, but did not elaborate on the specifics.
French retail major Carrefour (annual sales worth euro 112 billion), which had launched one cash and carry outlet each in 2010 and 2011, may go for another store opening later this year, sector sources said. The company did not talk about its India plans. Carrefour, like Walmart, wants to set up operations in multi-brand retail in India and is waiting for the government to give a green signal. Its India head, Jean Noel Bironneau, had met commerce and industry minister Anand Sharma a few days before, perhaps to discuss issues related to multi-brand FDI.
UK-based Booker, a $6.5-billion cash and carry chain, has in the first five months of 2012 already surpassed last year’s store launch. This calendar year, it has opened two wholesale centres, with more planned, against just one in 2011. Zunaid Bangee, chief executive officer, Booker India, said the general global and European economic climate had not impacted the store opening plans. When asked if the company’s investment decisions would be influenced by the dip in global investor confidence in India at this point, Bangee replied, “No, this will not have an impact on our expansion plans.” The company plans to open up to 20 stores in India over the next five years. Its first outlet opened in Mumbai in 2009 and it has a total of four wholesale centres in the country.
Walmart, which had opened its first wholesale store in India in 2009, along with Bharti, dismisses the view that the global economic climate could influence its store expansion plans. “Saving people money so they can live better is at the heart of everything we do,” the spokesperson said, adding, “this is especially relevant in an economic slowdown”.
On global investors’ mood, a Bharti-Walmart spokesperson said, “The India story remains strong with the international business community.” Adding, “There is understanding and appreciation of the factors that impact policy making, particularly in India’s vibrant democracy.” Walmart is here in India for the long term, the executive added.
The Metro executive expressed similar sentiments. “We are confident in the big potential of the India market. We are on a growth path and well positioned to expand our presence in other parts of the country,” he said. The oldest international cash and carry chain in India, it opened its first outlet in the country some eight years before. Having picked up speed recently, it has a total of 11 wholesale outlets in India till now. Apart from India, Metro has launched two outlets, in both China and Kazakhstan, and one each in Poland, Russia and Vietnam this calendar year till April. “We will continue to grow in our existing markets, with a focus on Eastern Europe and Asia,” the executive said.
Cash-and-carry represents an opportunity worth around $150 billion (Rs 8.25 lakh crore) of the $500-billion (Rs 27.5 lakh crore) annual retail business in India.
BHEL commissions 500 MW unit at Rihand
New Delhi: Bharat Heavy Electricals Ltd (BHEL) has commissioned the first 500-MW unit at NTPC’s Rihand Super Thermal Power Station (STPS) stage III in Uttar Pradesh.
With this, 12 million units of electricity will be added to the grid of the power-deficit state everyday, the company said in a statement.
BHEL has earlier commissioned all the four 500-MW units operating at the power project. With the commissioning of the fifth unit, the cumulative generating capacity of Rihand STPS has gone up to 2,500 MW.
BHEL’s scope of work in the contract envisages design, engineering, manufacture, supply, erection, testing and commissioning of two steam generator and turbine generator sets of 500 MW each.
The steam generator and turbine generator was manufactured at the company’s Tiruchi and Haridwar plants, respectively, BHEL said.
With this, 12 million units of electricity will be added to the grid of the power-deficit state everyday, the company said in a statement.
BHEL has earlier commissioned all the four 500-MW units operating at the power project. With the commissioning of the fifth unit, the cumulative generating capacity of Rihand STPS has gone up to 2,500 MW.
BHEL’s scope of work in the contract envisages design, engineering, manufacture, supply, erection, testing and commissioning of two steam generator and turbine generator sets of 500 MW each.
The steam generator and turbine generator was manufactured at the company’s Tiruchi and Haridwar plants, respectively, BHEL said.
Sahara inks deal to build Notun Dhaka in Bangladesh
New Delhi: Sahara India Pariwar has signed an agreement with the Bangladesh government to design and develop a new city near Dhaka - Notun Dhaka (New Dhaka).
Sahara Matribhumi Unnayan Corporation has signed a memorandum of understanding with the Bangladesh government to build affordable housing for low income groups with housing finance support and also design- and plan-integrated satellite townships under the ministry of housing & public works (MOHPW) of the Bangladesh government.
Sahara India Pariwar managing worker and chairman Subrata Roy, who met Bangladesh PM Sheikh Hasina, has sought easing of norms on home finance and also suggested changes in tax rules.
In a statement, Sahara said the emphasis will be on development of infrastructure in the proposed townships. "The newly formed company 'Sahara Matribhumi Unnayan Corporation Ltd's plans are to build integrated and satellite townships which will be heavily intensive on infrastructure unlike regional real estate projects," Sahara said in a statement.
During his meetings with Bangladesh central bank governor Atiur Rahman and executive chairman of Board of Investments S A Samad, Roy suggested that a classification of a section be created midway between housing and infrastructure so that the taxation policy is relooked at in Bangladesh, the statement added.
Sahara Matribhumi Unnayan Corporation has signed a memorandum of understanding with the Bangladesh government to build affordable housing for low income groups with housing finance support and also design- and plan-integrated satellite townships under the ministry of housing & public works (MOHPW) of the Bangladesh government.
Sahara India Pariwar managing worker and chairman Subrata Roy, who met Bangladesh PM Sheikh Hasina, has sought easing of norms on home finance and also suggested changes in tax rules.
In a statement, Sahara said the emphasis will be on development of infrastructure in the proposed townships. "The newly formed company 'Sahara Matribhumi Unnayan Corporation Ltd's plans are to build integrated and satellite townships which will be heavily intensive on infrastructure unlike regional real estate projects," Sahara said in a statement.
During his meetings with Bangladesh central bank governor Atiur Rahman and executive chairman of Board of Investments S A Samad, Roy suggested that a classification of a section be created midway between housing and infrastructure so that the taxation policy is relooked at in Bangladesh, the statement added.
Centre promoting pharma cluster in coastal AP
Hyderabad: The Centre is promoting a pharma cluster with an investment of Rs 66.16 crore at the PCPIR in coastal Andhra Pradesh.
The PCPIR (Petroleum, Chemicals, Petrochemical Investment Region) covers East Godavari and Visakhapatnam districts. Andhra Pradesh ranks first in the manufacture of bulk drugs and hence there is a need to push further, said Mr M. Gopinath, Regional Joint Director General of Foreign Trade.
The state ranks third in formulations. It accounts for 40 per cent of the country’s total bulk drugs production and 50 per cent of the bulk drug exports, he said here at a business networking meet on `ChemTech World Expo 2013’.
Pharma sector sales
The country’s pharmaceutical sector is gaining a global position. The domestic pharma sector sales is expected to touch $74 billion by 2020 from the current $11 billion, according to research reports.
Drugs and pharmaceuticals sector attracted foreign direct investments (FDI) worth $9,173.50 million between April 2000 to February 2012.
The meet was organised by Jessubhai Media in association with the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI).
Mr Devendra Surana of FAPCCI said Andhra Pradesh is a hub for pharma and biotech companies because of a large number of research institutes. It has managed to draw several international and domestic companies to set up their base.
The PCPIR (Petroleum, Chemicals, Petrochemical Investment Region) covers East Godavari and Visakhapatnam districts. Andhra Pradesh ranks first in the manufacture of bulk drugs and hence there is a need to push further, said Mr M. Gopinath, Regional Joint Director General of Foreign Trade.
The state ranks third in formulations. It accounts for 40 per cent of the country’s total bulk drugs production and 50 per cent of the bulk drug exports, he said here at a business networking meet on `ChemTech World Expo 2013’.
Pharma sector sales
The country’s pharmaceutical sector is gaining a global position. The domestic pharma sector sales is expected to touch $74 billion by 2020 from the current $11 billion, according to research reports.
Drugs and pharmaceuticals sector attracted foreign direct investments (FDI) worth $9,173.50 million between April 2000 to February 2012.
The meet was organised by Jessubhai Media in association with the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI).
Mr Devendra Surana of FAPCCI said Andhra Pradesh is a hub for pharma and biotech companies because of a large number of research institutes. It has managed to draw several international and domestic companies to set up their base.
Irda caps commission on limited-tenure policies
Mumbai: The insurance regulator has capped the agents’ commission paid by insurers for selling policies with limited premium payment tenure.
The Insurance Regulatory and Development Authority (Irda) said commission paid by insurers to agents selling policies with limited paying tenure should be 10-25 per cent of the first-year premium. The regulator specified the rate of renewal commission for such plans, where the premium paying tenure is lower than the policy term. The move is to discourage policies with limited tenure.
This is the first time the insurance regulator has capped the commission on traditional plans, which include endowment, money-back and term assurance plans. According to the Insurance Act, an insurance company less than 10 years old can pay up to 40 per cent of the premium as commission in the first year to an agent on traditional policies. Companies more than 10 years have first-year commission capped at 35 per cent.
In a recent communication to insurers, Irda has specified the first-year commission would be capped at 10 per cent for policies with a tenure between five and nine years. For the remaining term, the maximum commission payout would be capped at five per cent. For policies with a 10-14-year tenures, the maximum commission would be 20 per cent for the first year, 7.5 per cent for the second and third years and five per cent for the remaining term.
For policies with more than 15 years’ tenure, the regulator has suggested insurers offer a commission of 25 per cent for the first year, 7.5 per cent for second and third years, and five per cent thereafter. Earlier, a renewal commission was not specified by the regulator.
Irda has also mandated that any policy should have a minimum payment tenure of five years. “As insurance is a long-term savings product, the regulator is discouraging products with smaller tenure. Some insurers were giving as high as 35 per cent commission for policies with five-year tenure. Now for shorter tenure policies, the regulator has prescribed lower commission. This would act as a disincentive for agents,” said a senior official at a private life insurance company.
In September 2010, Irda capped charges and commissions on unit-linked products (ulips). As a result, the average commission in ulips as a percentage to premiums collected fell to four per cent in 2011-12, from nearly 10 per cent in 2009-10. Whereas, the average commission in traditional plans as a percentage to premium, which was 8.5 per cent in 2009-10 for the private sector; increased to 12.5 per cent in 2011-12.
“While the average first-year commissions in ulip has shrunk to five to eight per cent because of the cap in commissions, in traditional plans it can go up to 40 per cent. Hence, agents were also pushing traditional plans,” said another insurance official.
During 2011-12, life insurance industry’s policy issuance was down by eight per cent, whereas for the whole private players industry it was down by 24 per cent. As a result the first-year premium collection of life insurers, was down by nine per cent to Rs 1,14,233 crore against Rs 1,25,826 crore in the corresponding period last year. Traditional policies accounted for roughly 60 per cent of the premium.
The Insurance Regulatory and Development Authority (Irda) said commission paid by insurers to agents selling policies with limited paying tenure should be 10-25 per cent of the first-year premium. The regulator specified the rate of renewal commission for such plans, where the premium paying tenure is lower than the policy term. The move is to discourage policies with limited tenure.
This is the first time the insurance regulator has capped the commission on traditional plans, which include endowment, money-back and term assurance plans. According to the Insurance Act, an insurance company less than 10 years old can pay up to 40 per cent of the premium as commission in the first year to an agent on traditional policies. Companies more than 10 years have first-year commission capped at 35 per cent.
In a recent communication to insurers, Irda has specified the first-year commission would be capped at 10 per cent for policies with a tenure between five and nine years. For the remaining term, the maximum commission payout would be capped at five per cent. For policies with a 10-14-year tenures, the maximum commission would be 20 per cent for the first year, 7.5 per cent for the second and third years and five per cent for the remaining term.
For policies with more than 15 years’ tenure, the regulator has suggested insurers offer a commission of 25 per cent for the first year, 7.5 per cent for second and third years, and five per cent thereafter. Earlier, a renewal commission was not specified by the regulator.
Irda has also mandated that any policy should have a minimum payment tenure of five years. “As insurance is a long-term savings product, the regulator is discouraging products with smaller tenure. Some insurers were giving as high as 35 per cent commission for policies with five-year tenure. Now for shorter tenure policies, the regulator has prescribed lower commission. This would act as a disincentive for agents,” said a senior official at a private life insurance company.
In September 2010, Irda capped charges and commissions on unit-linked products (ulips). As a result, the average commission in ulips as a percentage to premiums collected fell to four per cent in 2011-12, from nearly 10 per cent in 2009-10. Whereas, the average commission in traditional plans as a percentage to premium, which was 8.5 per cent in 2009-10 for the private sector; increased to 12.5 per cent in 2011-12.
“While the average first-year commissions in ulip has shrunk to five to eight per cent because of the cap in commissions, in traditional plans it can go up to 40 per cent. Hence, agents were also pushing traditional plans,” said another insurance official.
During 2011-12, life insurance industry’s policy issuance was down by eight per cent, whereas for the whole private players industry it was down by 24 per cent. As a result the first-year premium collection of life insurers, was down by nine per cent to Rs 1,14,233 crore against Rs 1,25,826 crore in the corresponding period last year. Traditional policies accounted for roughly 60 per cent of the premium.
Friday, May 25, 2012
Microsoft gets the Indian developer community ready for Windows 8
umbai: Over 200 hundred developers from across India have camped up for two days at a hotel in south Mumbai for a Windows 8 hackathon. This is the first time that the Indian developer community is getting into the hack mode for Microsoft Windows.
Hackathon, or codefest, is an event in which computer programmers and others in the field of software development, like graphic designers, interface designers and project managers, collaborate intensively on software-related projects.
With Microsoft Corp geared to launch its cloud-connected Windows 8 later this year, the US-based software developer is making sure that the developer community is ready with applications (apps) for the platform.
“India is an incredible bastion of software developers. On a global scale about 25-30 per cent of all the software codes written in the world are written by Indian developers (based out in India and abroad). Certainly galvanising the developer community in India to see the possibility and re-imagine Windows 8 and build next generation businesses is important,” said Steve Ballmer, chief executive officer (CEO) of Microsoft, via a video conference at the Microsoft India Technology Summit.
Atul Gupta, an individual application developer who has been coding for the last 16-17 hours, is elated with his experience on Windows 8. “This is my first time that I have attended a hackathon and the experience was awesome. The application that I developed is consumer oriented,” said Gupta.
But some of the app developers, who are active on the Android and Apple platforms, are yet to test the Windows 8 platform. “We do not see any immediate reason to be part of the Windows 8 environment. What matters is the actual number of people using handset on that platform, as of now they are very small. Besides the Android base is just growing fast,” said Sagar Bedmutha, founder CEO of Optinno Mobitech.
The company has been developing apps for Research in Motion’s (RIM) BlackBerry smartphones and the Android platform.
Noida based OnGraph Technologies is yet another app developer that is staying away from the Windows 8 platform. “Our issue with Windows is that it is not an open source system. Hence, we prefer Android,” said Nikhil Verma, business development manager, OnGraph.
For Microsoft, getting the developer support from India and APAC (Asia Pacific region) will be significant as the region has several hundreds of companies creating application for the Android, Apple and RIM platforms. “For Microsoft, this is crucial as they need to create a market. There is no dispute that Windows has a huge base in the enterprise segment but that’s not the case in the handset and tablet segments. And these are two areas that are growing exponentially,” said an analyst who did not want to be identified.
Ballmer also reiterated that the launch of Windows 8 is a “rebirth” of the company. “While Windows 7 was one of the best products, with Windows 8 we are re-imagining Windows from ground up,” he said.
Agrees Alok Shende, principal analyst, Ascentius Consulting: “For Microsoft Windows 8 is one of the most important product. The company has a dominant position in the desktop environment, the challenge will be in the mobile category. With Blackberry losing sheen in the enterprise segment perhaps Microsoft can address that market too. But consumers already have too much to choose from,” added Shende.
Vishal Tripathi, principal research analyst, Gartner, believes that Windows 8 has its benefits as security, application store and delivery models and app contracts. It will also support broader devices where users can have same seamless experience on tablet, Phone and PC. “But one of the challenges for Windows 8 is the Metro UI. While they have developed plenty of desktop applications but the catalogue of Metro is limited. Though Microsoft is encouraging developers to build applications and apps acquired through the app store are free for a limited time. In India Windows 8 adoption will face some resistance enterprise who have recently migrated to Windows7 so moving to to a new platform is a huge cost in terms of license, manpower, application testing etc. The change in OS in the enterprise environment happens every three to four years in India and in case of small businesses perhaps up to five to years. It might make sense of companies who are still on XP to move to Windows 8,” said Tripathi.
IIFT signs MOU with Singapore Management University on training and research programs
Kolkata: The Indian Institute of Foreign Trade (IIFT) and Singapore Management University ( SMU) have signed an MoU to collaborate on conducting training programs and research relating to international trade and business from an Asian perspective.
Under the partnership, the two institutions will jointly design and launch management development programs as well as offer postgraduate certificate programs in areas related to international trade, business and management.
Both parties also agreed to conduct joint research, case writing in the area of international trade and business, especially related to the Asian region. The MoU also covers student exchanges between the two institutions.
"With the shift in growth and centre of economic gravity towards emerging economies in Asia, it is becoming increasingly important for international trade professionals to be trained both inside and outside India to take full advantage of India's business opportunities. That Singapore is a trading and logistics hub, as well as a major financial centre in the region makes the SMU-IIFT or Singapore-Delhi educational axis a good mechanism for fostering both education and trade," said Professor Srivastava, SMU's provost and deputy president (academic affairs) in a statement.
IIFT director K. T. Chacko said, "The joining of hands between Singapore Management University and the Indian Institute of Foreign Trade, India would go a long way in enriching the research and collaborative educational programmes. SMU's academic strength and in depth understanding of South East Asia and IIFT's core strength in International Business will prove a win-win situation for both."
India's first solar Renewable Energy Certificates issued, to MandB Switchgear
Chennai: The country’s first solar ‘Renewable Energy Certificates’ were issued today.
NSE and BSE-listed M and B Switchgear Ltd was issued 249 RECs by the National Load Despatch Centre in New Delhi.
RECs are generation-based ‘certificates’ awarded (electronically, in demat form) to those generating electricity from renewable sources such as wind, biomass, hydro and solar, if they opt not to sell the electricity at a preferentially higher tariff.
These certificates are tradeable on the power exchanges and are bought by ‘obligated entities’ that are either specified consumers or electricity distribution companies. These obligated entities may be required to purchase a certain quantum of either green power or RECs.
The obligations are split into non-solar and solar — which means the obligated entities have to purchase either power from solar power projects or RECs generated by them.
M and B Switchgear, headquartered in Indore, is a manufacturer of transformers. In 2010-11, the company’s turnover was Rs 37 crore on which it made a net profit of Rs 77 lakh. For the first nine months of 2011-12, its turnover was Rs 18 crore, and net profit, Rs 32 lakh. M and B’s shares closed on the CSE on Wednesday at Rs 76.85.
The company also has a 2 MW solar photovoltaic power plant. In 2012-13, this plant is expected to generate close to 3,250 RECs, says Mr Vishal Pandya, Director, REConnect, M and B Switchgear’s consultants for REC-related matters.
The government fixes the floor and ceiling prices of RECs for a specified period. The minimum and maximum prices for solar RECs for 2012-17 are Rs 9,300 and Rs 13,400 respectively. Therefore, if M and B’s solar plant generates 3,250 RECs, the company could be richer by anywhere between Rs 3 crore and Rs 4.35 crore.
Getting the certificates is a two-step process — first ‘registration’ with the state load despatch centre and then ‘accreditation’ by NLDC. While M and B Switchgear is the only one to be accredited so far, four other solar power developers have been registered for RECs. They are: Jain Irrigation – 8.5 MW Maharashtra; Kanoria Chemicals – 5 MW, Rajasthan; Gupta Suns – 0.5 MW, Madhya Pradesh; and Numeric Power Systems – 1.0555 MW, Tamil Nadu, according to information provided by REConnect.
Japan likes to be a partner in national manufacturing policy: JETRO India chief
New Delhi: Japan wants to be a partner while rolling out India's national manufacturing policy which aims at creating 100 million jobs and enhancing the country's share in the GDP to 25 per cent in 10 years.
Japan External Trade Organization ( JETRO), an arm of the ministry of economy, trade and commerce is likely to propose to Indian government that Japan should be declared a partner country while promoting India's manufacturing policy.
N Noguchi, JETRO's chief director general in India told ET that most of 820 Japanese companies which are active in India are in manufacturing sector, and many more such companies are willing to shift their bases to India. Hit by economic downturn, the Japanese market is shrinking every day and most of the Japanese companies want to shift bases outside the country.
"After the disastrous flood in Thailand last year, many Japanese companies realized they should not concentrate their manufacturing centers only in one place. They want to set up manufacturing facilities in India so as to minimize risks", Noguchi said.
Noguchi who had an earlier innings in India between 2005 and 2010, said many Japanese companies were also enthused by the success story of the newly developed Neemrana industrial area in Rajasthan. Over 30 Japanese companies including Daikin Air-conditioning, Nissin Brake, Mitsui Chemical etc. are setting up their plants in Neemrana area.
"Japanese companies are already contributing to manufacturing sector in India. But if we officially partner with India's national manufacturing policy, the process will get a momentum," said Noguchi.
Japan External Trade Organization ( JETRO), an arm of the ministry of economy, trade and commerce is likely to propose to Indian government that Japan should be declared a partner country while promoting India's manufacturing policy.
N Noguchi, JETRO's chief director general in India told ET that most of 820 Japanese companies which are active in India are in manufacturing sector, and many more such companies are willing to shift their bases to India. Hit by economic downturn, the Japanese market is shrinking every day and most of the Japanese companies want to shift bases outside the country.
"After the disastrous flood in Thailand last year, many Japanese companies realized they should not concentrate their manufacturing centers only in one place. They want to set up manufacturing facilities in India so as to minimize risks", Noguchi said.
Noguchi who had an earlier innings in India between 2005 and 2010, said many Japanese companies were also enthused by the success story of the newly developed Neemrana industrial area in Rajasthan. Over 30 Japanese companies including Daikin Air-conditioning, Nissin Brake, Mitsui Chemical etc. are setting up their plants in Neemrana area.
"Japanese companies are already contributing to manufacturing sector in India. But if we officially partner with India's national manufacturing policy, the process will get a momentum," said Noguchi.
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