The Union cabinet has approved a proposal to offer financial assistance for the development of Electronics manufacturing Clusters (EMCs), to aid the growth of the Electronics Systems Design and Manufacturing (ESDM) sector in India.
Setting up clusters brings about cost advantage of upto 8 per cent to an ESDM unit through supplier consolidation and lower logistics cost. The proposed EMS scheme would support establishment of both green-field and brown-field EMCs. “Under the scheme, financial support would be provided to a Special Purpose vehicle (SPV) registered for this purpose. The assistance would be restricted to 50 per cent of the project cost for green-field EMCs and 75 per cent of the project cost for brown-field EMCs,” an official statement read.
The scheme would be open for applications for five years. The government clarified that today’s announcement is merely a policy decision and should not be seen as a financial commitment as the financial assistance under the policy would be subject to approval of a competent authority.
The scheme is expected to help flow of investment for development of in the ESDM sector. India’s draft National Policy on Electronics (NPE) proposes to achieve domestic production of around $ 400 billion by 2020 in the ESDM sector by creating an industry friendly policy framework.
Success in my Habit
Friday, July 6, 2012
India, Poland to ink pact for audio-visual co-production
New Delhi: India will sign an audio-visual co-production agreement with Poland. The pact will be signed by the Minister for Information & Broadcasting, Ms Ambika Soni, and the Poland Minister for Culture and National Heritage, Mr B. Zdrojewski. Ms Soni, who is in Poland on a three-day visit, is also expected to give a talk on the preservation of film heritage at the National Film Archives of Poland, according to an Information and Broadcasting Ministry release. Also on the agenda, is a meeting with officials of the Polish National Television, TVP. The I&B Ministry’s initiative to establish a Films Commission to promote single-window clearance for necessary permissions to foreign production companies and film-makers would also be shared with the Polish Government.
Thursday, July 5, 2012
Bharti Walmart to invest Rs 104 cr for expansion
The US retail chain Walmart and New Delhi-based Bharti Enterprises joint-venture company have raised these funds last year, they said in a filing to the Registrar of Companies.
Having doubled its store count to ten outlets in 2011, the cash-and-carry major has added two stores in the last six months. In all, Bharti Walmart has about 17 stores in the country. Simultaneously, the company has been investing in logistics and improving its back-end supply chain system.
The company also mentioned that it has incurred a loss of Rs 765 crore in calendar year 2011, even as sales doubled during the period to Rs 1,876-crore.
However, the company seems to be optimistic and upbeat about the business outlook in the future given the fact that the wholesale business – or trade between two businesses - has considerable scope for growth going ahead. The fresh equity infusion could also be a signal that the retail segment is set to witness reforms in foreign direct investment norms, observe industry-watchers.
“Indian retailers are making steady strides in rationalising their retail network and learning the nuances of organised retail,” says Mr Mohit Bahl, Partner, KPMG India.
“In cash-and-carry segment, where FDI is already permitted, international players making investments in establishing their network though these are still very muted. However, with expectation of FDI in retail opening up – should that happen, the flood gates should open,’’ he added.
Bharti Walmart has also raised about Rs 500 crore in short-term loans from banks including Citibank, BNP Paribas, HSBC. The fresh capital infusion by Bharti Walmart also indicates the company’s massive expansion drive that is in line with the huge competition in the cash and carry segment. The world’s second largest retailer Carrefour has also opened its first cash-and-carry store in India in December last, while Germany’s Metro AG entered its tenth year of operation in India with eleven stores this year.
E-voting will make life easier for investors
Mumbai: The Securities and Exchange Board of India issued its guidelines, making it mandatory for the country’s top 500 companies to offer the e-voting facility to its shareholders, after a large number of votes sent through the postal ballot route were found invalid.
For instance, when Sesa Goa and Sterlite Industries were seeking shareholder approval for the merger of the two entities in January, a large number of votes were found to be invalid on counting. The deal was recently passed at the company’s annual general meeting (AGM).
The e-voting process works in the following way. Depositories, such as CDSL and NSDL, will create a database of investors of companies opting for e-voting.
“They communicate user address and password to each investor via post or e-mail. Once an investor receives this login address and password, he can go to the depository website and register for the e-voting facility. He will be asked to change the password the first time and this would be the permanent password for future use. In future, if an investor wants to use the e-voting facility for another company, he just needs to login with his registered password and vote,” explained a CDSL official.
“There will be accurate counting of votes, elimination of postal ballots getting lost in-transit and sufficient time for shareholders to vote till the end of the voting cycle,” says Prithvi Haldea, chairman and managing director (CMD), Prime Database. Haldea worked closely in deliberating on and implementing the e-voting process.
“Now, even Non-Resident Indians (NRI) can take part in important decisions that have to be taken through the e-voting route,” says CJ George, managing director, Geojit BNP Paribas Financial Services.
This could be done away with when voting is done electronically, say market men. “You will have a login ID and password which will be required to cast your vote. The e-voting platforms will have prefilled forms where the shareholder will only have to cast their vote,” explained the CDSL official.
Invalid votes are a big issue in postal ballots. A vote is called invalid, for instance, if there are issues with the signature on the ballot, if the shareholder has not ticked the option in a proper way, the details of the shares held by the investor do not match the records with the company and so on.
Though e-voting is not a substitute for an AGM, it will be useful when companies have to pass special resolutions. By taking out the aspect of physical presence, Sebi is ensuring that the process is made easier for investors to participate.
In the past, in order to cast your vote or to have your say in important decisions of a company whose shares you hold, you needed to be physically present at the shareholders’ meeting or ask for a postal ballot whereby you would send in your votes.
At the most you can have a “proxy” vote or have someone stand in for you.
This was indeed a tedious process, which meant many investors would skip such meetings or not send in their votes. As a result, they would miss out on opportunities to take part in company matters, such as mergers and acquisitions, fund raising and so on.
A stock exchange official said that currently majority of the votes do not come in, that is, shareholders do not participate.
For instance, when Sesa Goa and Sterlite Industries were seeking shareholder approval for the merger of the two entities in January, a large number of votes were found to be invalid on counting. The deal was recently passed at the company’s annual general meeting (AGM).
The e-voting process works in the following way. Depositories, such as CDSL and NSDL, will create a database of investors of companies opting for e-voting.
“They communicate user address and password to each investor via post or e-mail. Once an investor receives this login address and password, he can go to the depository website and register for the e-voting facility. He will be asked to change the password the first time and this would be the permanent password for future use. In future, if an investor wants to use the e-voting facility for another company, he just needs to login with his registered password and vote,” explained a CDSL official.
“There will be accurate counting of votes, elimination of postal ballots getting lost in-transit and sufficient time for shareholders to vote till the end of the voting cycle,” says Prithvi Haldea, chairman and managing director (CMD), Prime Database. Haldea worked closely in deliberating on and implementing the e-voting process.
“Now, even Non-Resident Indians (NRI) can take part in important decisions that have to be taken through the e-voting route,” says CJ George, managing director, Geojit BNP Paribas Financial Services.
This could be done away with when voting is done electronically, say market men. “You will have a login ID and password which will be required to cast your vote. The e-voting platforms will have prefilled forms where the shareholder will only have to cast their vote,” explained the CDSL official.
Invalid votes are a big issue in postal ballots. A vote is called invalid, for instance, if there are issues with the signature on the ballot, if the shareholder has not ticked the option in a proper way, the details of the shares held by the investor do not match the records with the company and so on.
Though e-voting is not a substitute for an AGM, it will be useful when companies have to pass special resolutions. By taking out the aspect of physical presence, Sebi is ensuring that the process is made easier for investors to participate.
In the past, in order to cast your vote or to have your say in important decisions of a company whose shares you hold, you needed to be physically present at the shareholders’ meeting or ask for a postal ballot whereby you would send in your votes.
At the most you can have a “proxy” vote or have someone stand in for you.
This was indeed a tedious process, which meant many investors would skip such meetings or not send in their votes. As a result, they would miss out on opportunities to take part in company matters, such as mergers and acquisitions, fund raising and so on.
A stock exchange official said that currently majority of the votes do not come in, that is, shareholders do not participate.
Indian mobile handset market crosses 50 million units: Study
Mumbai: Mobile phone sales crossed the 50 million mark in the January-March quarter of this year, up 9.1% from last year at the same, according to the latest data released by Cybermedia Research India. Smartphones made up 5.3% of the phones sold and almost a quarter of the total handset revenues in India.
Multi-sim handsets, which have been very popular among Indian consumers, accounted for two-thirds of the total sales while 3G handset accounted for under 10% of total sales, according to the Cybermedia numbers.
In the overall mobile handsets market, troubled Finnish handset maker Nokia retained its leadership position with 23% share, followed by Samsung at second position with 14.1% and homegrown brand Micromax at third position with 5.8%, in terms of sales (unit shipments) during the January-March period.
"As the India mobile handsets market grows the needs of users are clearly seen to be converging around two major form factors - high-power, high-speed smartphones vis-a-vis value-plus, content-enabled feature phones. While most players are strong in a particular category, Samsung and others have been able to maintain a strong presence across the spectrum," said Anirban Banerjee, associate vice president, research and advisory services, Cybermedia Research.
Players like Motorola and Sony have chosen to stay in the high value smartphones segment, which accounts for just 5.3% of shipments but added up to as much as 23.4% of the market value in the January-March quarter, according to the data released by Cybermedia.
"Currently, large, international players like Nokia and RIM, as well as relatively new entrants like Micromax, Karbonn, Lava and Spice are faced with the challenge to enhance their portfolio of products, models and services, to stay relevant and profitable in the long run," added Naveen Mishra, lead analyst, Telecoms Practice, Cybermedia Research.
Shipments of multi-SIM handset category continued its rise, accounting for as much as 67.7% of total shipments in the last quarter.
However, even more significantly, total shipments of 3G-enabled mobile handsets in the country touched 4.7 million units during the first quarter of the year. While this was a decline of (-)7.8% over the the October-December 2011 known as the 'festival quarter', it was a growth of 34.3% over the corresponding period last year.
"With the recently announced reduction in tariffs of 3G services by as much as 70% by leading India telecom service providers, the market for both 3G-enabled devices and mobile broadband-driven content is likely to see an upward trend in the forthcoming quarters," said Tarun Pathak, a telecoms analysts with Cybermedia Research. CyberMedia Research uses the term shipments to describe the number of handsets leaving the factory premises for stocking by distributors and retailers.
Multi-sim handsets, which have been very popular among Indian consumers, accounted for two-thirds of the total sales while 3G handset accounted for under 10% of total sales, according to the Cybermedia numbers.
In the overall mobile handsets market, troubled Finnish handset maker Nokia retained its leadership position with 23% share, followed by Samsung at second position with 14.1% and homegrown brand Micromax at third position with 5.8%, in terms of sales (unit shipments) during the January-March period.
"As the India mobile handsets market grows the needs of users are clearly seen to be converging around two major form factors - high-power, high-speed smartphones vis-a-vis value-plus, content-enabled feature phones. While most players are strong in a particular category, Samsung and others have been able to maintain a strong presence across the spectrum," said Anirban Banerjee, associate vice president, research and advisory services, Cybermedia Research.
Players like Motorola and Sony have chosen to stay in the high value smartphones segment, which accounts for just 5.3% of shipments but added up to as much as 23.4% of the market value in the January-March quarter, according to the data released by Cybermedia.
"Currently, large, international players like Nokia and RIM, as well as relatively new entrants like Micromax, Karbonn, Lava and Spice are faced with the challenge to enhance their portfolio of products, models and services, to stay relevant and profitable in the long run," added Naveen Mishra, lead analyst, Telecoms Practice, Cybermedia Research.
Shipments of multi-SIM handset category continued its rise, accounting for as much as 67.7% of total shipments in the last quarter.
However, even more significantly, total shipments of 3G-enabled mobile handsets in the country touched 4.7 million units during the first quarter of the year. While this was a decline of (-)7.8% over the the October-December 2011 known as the 'festival quarter', it was a growth of 34.3% over the corresponding period last year.
"With the recently announced reduction in tariffs of 3G services by as much as 70% by leading India telecom service providers, the market for both 3G-enabled devices and mobile broadband-driven content is likely to see an upward trend in the forthcoming quarters," said Tarun Pathak, a telecoms analysts with Cybermedia Research. CyberMedia Research uses the term shipments to describe the number of handsets leaving the factory premises for stocking by distributors and retailers.
Govt plans Rs 2k cr fund for pharma
New Delhi: The government is planning to set up a venture capital fund with a corpus of Rs 2,000 crore aimed at strengthening research and development capabilities in the pharmaceutical sector.
Commerce, industry and textiles minister Anand Sharma, who chaired the first meeting of the consultative committee on pharmaceutical exports on Tuesday, said a panel of secretaries would also be set up to devise a strategy for the growth of the pharma industry and address the concerns. The progress would be reviewed after three months. "We are considering a proposal of venture capital fund of Rs 2,000 crore for the drug industry. We are talking with Exim Bank for this," Sharma told reporters.
He assured industry representatives that the government will take up the issue of non-tariff barriers being mounted by the US and the EU against Indian pharma industry in bilateral forums at appropriate levels. "The government is fully committed to support this vibrant sector," Sharma said.
The minister said substantial opportunities exist for Indian pharmaceutical industry in emerging economies such as Russia, Africa, South America.
The industry leaders made a strong plea for timely approvals and procedural simplification by the Drug Controller General of India for clinical trials, import of samples among other issues. They also urged liberal funding through venture capital vehicle for giving an impetus to R&D. The industry said the domestic pharma sector is capable of doubling exports if the right policy initiatives are taken.
Commerce, industry and textiles minister Anand Sharma, who chaired the first meeting of the consultative committee on pharmaceutical exports on Tuesday, said a panel of secretaries would also be set up to devise a strategy for the growth of the pharma industry and address the concerns. The progress would be reviewed after three months. "We are considering a proposal of venture capital fund of Rs 2,000 crore for the drug industry. We are talking with Exim Bank for this," Sharma told reporters.
He assured industry representatives that the government will take up the issue of non-tariff barriers being mounted by the US and the EU against Indian pharma industry in bilateral forums at appropriate levels. "The government is fully committed to support this vibrant sector," Sharma said.
The minister said substantial opportunities exist for Indian pharmaceutical industry in emerging economies such as Russia, Africa, South America.
The industry leaders made a strong plea for timely approvals and procedural simplification by the Drug Controller General of India for clinical trials, import of samples among other issues. They also urged liberal funding through venture capital vehicle for giving an impetus to R&D. The industry said the domestic pharma sector is capable of doubling exports if the right policy initiatives are taken.
India ranked second in Global Innovation Efficiency Index
New Delhi: India takes the second spot in the Global Innovation Efficiency Index, a metric to assess the innovation landscape in different countries. INSEAD and the World Intellectual Property Organization (WIPO) published a report titled 'Stronger Innovation Linkages for Global Growth' which benchmarks the performance of different countries in addressing the gaps in the innovation cycle by developing products and services for emerging markets. The report ranks 141 countries/economies on the basis of their innovation capabilities and results.
Chandrajit Banerjee, director-general, CII said, "Every country can aspire to be an innovation-driven economy. The more resource-constrained an economy is, the more prone to innovation it actually can be. Importantly, innovation is about acts, which improve everyday lives and a journey towards faster-sustainable-inclusive-growth."
However, Per-Ola Karlsson, senior partner, managing director of Europe, Booz & Company, said developed economies must continue to strengthen and develop linkages among stakeholders in the innovation landscape to stay ahead in strategic sectors. "By aligning cross-cutting policies and co-ordinating the efforts of all stakeholders, these coherent linkages drive the innovation process," he added.
The Innovation Input Index, the sub-index of the efficiency index, is evaluated on key parameters including human capital and research, institutions and infrastructure. While the output index captures actual evidence of innovation results and knowledge and technology outputs.
Chandrajit Banerjee, director-general, CII said, "Every country can aspire to be an innovation-driven economy. The more resource-constrained an economy is, the more prone to innovation it actually can be. Importantly, innovation is about acts, which improve everyday lives and a journey towards faster-sustainable-inclusive-growth."
However, Per-Ola Karlsson, senior partner, managing director of Europe, Booz & Company, said developed economies must continue to strengthen and develop linkages among stakeholders in the innovation landscape to stay ahead in strategic sectors. "By aligning cross-cutting policies and co-ordinating the efforts of all stakeholders, these coherent linkages drive the innovation process," he added.
The Innovation Input Index, the sub-index of the efficiency index, is evaluated on key parameters including human capital and research, institutions and infrastructure. While the output index captures actual evidence of innovation results and knowledge and technology outputs.
Adani Ports signs pact to develop bulk terminal at Kandla
Chennai: Adani Ports and Special Economic Zone on Monday said that its subsidiary, Adani Kandla Bulk Terminal Pvt Ltd, has signed a concession agreement with the Kandla Port Trust to set up a dry bulk terminal at the Kandla port on build, operate, transfer basis.
The project, estimated to cost Rs 1,200 crore, is expected to be completed in 24 months.
The terminal will have a capacity to handle 20 million tonnes of cargo. This will be a modern and mechanised cargo bulk terminal and will act as a “gamechanger for EXIM trade of the Northwest hinterland”.
Location
The significance of the project is its location - it will be located off Tekra near Tuna outside the Kandla creek. The Tuna port is owned by the Kandla Port Trust. It is learnt that Adani will construct four T-shaped jetties near Tuna outer buoy, where the draft (depth) is 14 metres.
Now, large ships can anchor directly at Tuna rather than have to transfer cargo on to barges and float the barges down to the Kandla port. Berthing at Tuna also cuts the distance to the hinterland.
Sources said the plan also includes a container terminal and a special economic zone between Kandla and Tuna.
Adani Ports has “thus emerged the only private sector port operator with presence across six ports in India,” the company has said in a notification to the stock exchanges.
It is now the only private port infrastructure company to operate and construct ports and terminals across six locations in India – Mundra, Dahej, Hazira and Kandla in Gujarat, Mormugao in Goa and Visakhapatnam.
The terminal at Kandla will handle cargo such as coal, fertiliser, salt, minerals and agro products.
Adani Ports aims to reach 200 million tonnes of handling capacity by 2020.
"In 2011-12, Adani Ports achieved a turnover of Rs 2,482 crore on which it made a net profit of Rs 1,177 crore, (or 48 per cent of turnover). Each share earned Rs 5.88."
On the BSE, the share of Adani Ports and Special Economic Zone Ltd (of face value of Rs 2) is being traded at around Rs 122.60.
India is an important market for Intel: CFO, Stacy Smith
Mumbai: The world's largest computer chip manufacturer now diverts a high proportion of its think tank towards phones and portable devices because the internet has transformed the use of computing gizmos, said Intel Inc's chief financial officer Stacy Smith.
A chunk of the Intel's chip designing for phones and next generation computing is driven by its 3,200 employees in India, added Smith.
"Markets we called adjacencies are now going to the core of our business, like cars, security systems, tablets phones etc. We see our business now as having two different thrusts," Intel's CFO said in an exclusive interview with ET.
For several decades Intel has made microprocessors for desktop and laptop computers for all major brands around the globe, including Lenovo, Dell and even Apple. In April, Intel's first cellphone hit the market in partnership with India's mobile manufacturing firm - Lava.
The Xolo as the cellphone is named currently sells at 22,000 a piece. India is set to be among the top five markets for the company by 2016.
Smith said, although India is a key market for Intel, the focus will remain on the computers - desktops and servers - for the country. The launch of Intel's first phone here is a mere coincidence coupled with very limited customisation on the part of Lava. "In India, that's what happened, the customer took in essence what we were offering," he said.
Subsequently Lenovo has launched an Intel phone in China and Orange in Europe. "We have been targeting our development on the high performance low power devices, we're there today. The device that is shipping to India now isn't even based on our most leading edge technology and it is outperforming almost everything that is out there in the market," Smith said.
"Smartphone space for us will have two offerings: One for high-end users and one for lower-end, high volume phones. Right now the push is on winning designs. Let's build credibility with customers, understand what people want. We will make money at some point, but that's not now."
Intel's revenue from just the mobile segment was $4 billion in the year gone by and is expected to hit $5.5 billion this year, Smith said.
While all the research on cellphones and mobile devices is making its way into desktop and laptop technology, Smith said the chip sets are unlikely to converge. "I see them as being separate product lines. You have the Atom that will go into low-power kind of devices, the core i5, 7 in these (Ultrabook) kind of devices, Xeon that will go to servers," Smith said.
"We are already seeing the focus on phones is benefitting the computer segment. Fine grain power technologies are an example. Historically that has not been important for laptops, but some of the tricks we have learnt on the phone side have worked their way to the core technology."
Intel's first fourth generation, or 4G, LTE technology phone is currently being sampled for a launch early next year, in the US. Intel has also forged some foundry contracts with Achronix, Tabula and Netronome, apart from its silicon chip manufacturing. However, Smith said those remain small. "We are doing very small agreements for small companies. We are learning what it takes to build out process technologies, learnings that may build up some big options later."
Meanwhile the focus remains on selling microprocessors. In India, Smith is confident the boom will come irrespective of business environment or even internet broadband penetration that is likely to be setback by policy uncertainties, caused as a result of the 2G scam.
"It is a relatively simple phenomena you saw a dramatic increase in people who had PCs in China. We expect the same thing in India, where it will be less than two months of income for someone to own a PC; and we see market after market where this happens. We see the ownership of the technology goes up as it is a highly desirable technology."
A chunk of the Intel's chip designing for phones and next generation computing is driven by its 3,200 employees in India, added Smith.
"Markets we called adjacencies are now going to the core of our business, like cars, security systems, tablets phones etc. We see our business now as having two different thrusts," Intel's CFO said in an exclusive interview with ET.
For several decades Intel has made microprocessors for desktop and laptop computers for all major brands around the globe, including Lenovo, Dell and even Apple. In April, Intel's first cellphone hit the market in partnership with India's mobile manufacturing firm - Lava.
The Xolo as the cellphone is named currently sells at 22,000 a piece. India is set to be among the top five markets for the company by 2016.
Smith said, although India is a key market for Intel, the focus will remain on the computers - desktops and servers - for the country. The launch of Intel's first phone here is a mere coincidence coupled with very limited customisation on the part of Lava. "In India, that's what happened, the customer took in essence what we were offering," he said.
Subsequently Lenovo has launched an Intel phone in China and Orange in Europe. "We have been targeting our development on the high performance low power devices, we're there today. The device that is shipping to India now isn't even based on our most leading edge technology and it is outperforming almost everything that is out there in the market," Smith said.
"Smartphone space for us will have two offerings: One for high-end users and one for lower-end, high volume phones. Right now the push is on winning designs. Let's build credibility with customers, understand what people want. We will make money at some point, but that's not now."
Intel's revenue from just the mobile segment was $4 billion in the year gone by and is expected to hit $5.5 billion this year, Smith said.
While all the research on cellphones and mobile devices is making its way into desktop and laptop technology, Smith said the chip sets are unlikely to converge. "I see them as being separate product lines. You have the Atom that will go into low-power kind of devices, the core i5, 7 in these (Ultrabook) kind of devices, Xeon that will go to servers," Smith said.
"We are already seeing the focus on phones is benefitting the computer segment. Fine grain power technologies are an example. Historically that has not been important for laptops, but some of the tricks we have learnt on the phone side have worked their way to the core technology."
Intel's first fourth generation, or 4G, LTE technology phone is currently being sampled for a launch early next year, in the US. Intel has also forged some foundry contracts with Achronix, Tabula and Netronome, apart from its silicon chip manufacturing. However, Smith said those remain small. "We are doing very small agreements for small companies. We are learning what it takes to build out process technologies, learnings that may build up some big options later."
Meanwhile the focus remains on selling microprocessors. In India, Smith is confident the boom will come irrespective of business environment or even internet broadband penetration that is likely to be setback by policy uncertainties, caused as a result of the 2G scam.
"It is a relatively simple phenomena you saw a dramatic increase in people who had PCs in China. We expect the same thing in India, where it will be less than two months of income for someone to own a PC; and we see market after market where this happens. We see the ownership of the technology goes up as it is a highly desirable technology."
NHB partners Genworth, IFC, ADB to form India's first mortgage guarantee company
Kolkata: National Housing Bank has on Monday announced the formation of India's first mortgage guarantee joint venture with three overseas partners -- International Finance Corporation, Asian Development Bank and US-based financial security firm Genworth Financial International Holdings.
NHB will have the majority stake with 38% holding while Genworth will hold 36%. IFC and ADB will hold 13% each the company -- the India Mortgage Guarantee Corporation Pvt Ltd. It proposes to start operation with a Rs 120 crore paid up capital once it gets licence from Reserve Bank of India.
"NHB has been part of this project through the years and we are glad that the company has been set up now, richer with all the learnings from the recent global experience," NHB chairman and managing director RV Verma was quoted saying in a press statement released Monday.
The JV will provide guarantees to credit portfolio of banks and housing finance companies. "Mortgage guarantee products will bring in greater depth and stability in the housing finance market," Verma said.
State Bank of India, Housing Finance Development Corporation or ICICI Bank are expected to benefit the most from this development as they can unlock significant chunk of their capital by taking mortgage guarantee cover and expand business further.
NHB will have the majority stake with 38% holding while Genworth will hold 36%. IFC and ADB will hold 13% each the company -- the India Mortgage Guarantee Corporation Pvt Ltd. It proposes to start operation with a Rs 120 crore paid up capital once it gets licence from Reserve Bank of India.
"NHB has been part of this project through the years and we are glad that the company has been set up now, richer with all the learnings from the recent global experience," NHB chairman and managing director RV Verma was quoted saying in a press statement released Monday.
The JV will provide guarantees to credit portfolio of banks and housing finance companies. "Mortgage guarantee products will bring in greater depth and stability in the housing finance market," Verma said.
State Bank of India, Housing Finance Development Corporation or ICICI Bank are expected to benefit the most from this development as they can unlock significant chunk of their capital by taking mortgage guarantee cover and expand business further.
Subscribe to:
Posts (Atom)