Mumbai: Four international banks have sanctioned Reliance Power $800 million (Rs 4,432 crore) of debt for its ultra mega power project in Sasan. Memoranda of understanding for these loans were signed during US President Barack Obama’s visit to India in 2010.
While US Exim Bank sanctioned $600 million, the remaining would be provided by Standard Chartered Bank, Mizuho Bank and Developmental Bank of Singapore. Reliance Power says it was decided the loans would be provided at a fixed interest rate of 3.6 per cent a year, and this could help the company save on interest costs.
“This financing, along with financing from Chinese banks, would support import of world-class equipment for this prestigious project,” said Reliance Power chief executive J P Chalasani. The loans would be used to refinance the equipment purchased for the 4,000-Mw ultra mega power project’s captive coal mine. Most of the equipment was purchased from Caterpillar Inc in the US.
The first unit of the Sasan project is expected to be commissioned in December and the coal mine is expected to be operational before that. Earlier, the company had earlier tied up about $1.1 billion (Rs 6,094 crore) from Chinese banks. Equipment for the power plant, such as boiler-turbine and generators, has already been purchased from Chinese suppliers.
Success in my Habit
Tuesday, July 31, 2012
PM sets up panel to review taxation of development centres, IT sector
New Delhi: The Prime Minister has constituted a Committee to Review Taxation of Development Centres and the Information Technology Sector.
This will be headed by former Chairman of IRDA and Central Board of Direct Taxes Mr N. Rangachary.
The Committee will engage in consultations with stakeholders and related Government departments to finalise the Safe Harbour provisions announced in Budget 2010 sector-by-sector, a Prime Minister Office Statement said.
Committee members include Ms Anita Kapoor (DG, International Taxation) and Ms Rashmi Sahani Saxena (DIT-TP).
The Committee will engage in consultations with stakeholders and related Government departments to finalise the approach to taxation of Development Centres and suggest any circulars that need to be issued. It will also go for sector-wide consultations and finalise the Safe Harbour provisions.
It will examine issues relating to taxation of the IT sector and suggest any clarifications that may be required.
The new committee has been formed at a time when an Expert Committee under the chairmanship of Mr Partho Shome is engaged in a widespread consultation process and finalise the GAAR Guidelines. This committee is expected to submit its report by September 30.
IT sector
“While this committee would address concerns on GAAR provisions and would reassure investors about the predictability and fairness of our tax regime, it was felt that there is still a need to address some other issues relating to the taxation of the IT sector such as the approach to taxation of Development Centres, tax treatment of ‘onsite services’ of domestic software firms, and also the issue of finalising the Safe Harbour provisions announced in Budget 2010,” the statement said.
Safe Harbour provisions, though proposed in the Finance Bill 2010, are yet to be operationalised. Safe harbour provisions have the advantage of being a good risk mitigation measure.
The Government has noted that nearly 750 multinational companies are operating development centres in over 1,100 locations in India. These entities are involved in product development, analytical work and software development.
However, India can not claim to have a monopoly on Development Centres. This is a highly competitive field with other countries wanting to grab a share of the pie. There is need for clarity on their tax, the statement added.
This will be headed by former Chairman of IRDA and Central Board of Direct Taxes Mr N. Rangachary.
The Committee will engage in consultations with stakeholders and related Government departments to finalise the Safe Harbour provisions announced in Budget 2010 sector-by-sector, a Prime Minister Office Statement said.
Committee members include Ms Anita Kapoor (DG, International Taxation) and Ms Rashmi Sahani Saxena (DIT-TP).
The Committee will engage in consultations with stakeholders and related Government departments to finalise the approach to taxation of Development Centres and suggest any circulars that need to be issued. It will also go for sector-wide consultations and finalise the Safe Harbour provisions.
It will examine issues relating to taxation of the IT sector and suggest any clarifications that may be required.
The new committee has been formed at a time when an Expert Committee under the chairmanship of Mr Partho Shome is engaged in a widespread consultation process and finalise the GAAR Guidelines. This committee is expected to submit its report by September 30.
IT sector
“While this committee would address concerns on GAAR provisions and would reassure investors about the predictability and fairness of our tax regime, it was felt that there is still a need to address some other issues relating to the taxation of the IT sector such as the approach to taxation of Development Centres, tax treatment of ‘onsite services’ of domestic software firms, and also the issue of finalising the Safe Harbour provisions announced in Budget 2010,” the statement said.
Safe Harbour provisions, though proposed in the Finance Bill 2010, are yet to be operationalised. Safe harbour provisions have the advantage of being a good risk mitigation measure.
The Government has noted that nearly 750 multinational companies are operating development centres in over 1,100 locations in India. These entities are involved in product development, analytical work and software development.
However, India can not claim to have a monopoly on Development Centres. This is a highly competitive field with other countries wanting to grab a share of the pie. There is need for clarity on their tax, the statement added.
FDA nod for GVK Biosciences' Ahmedabad unit
Hyderabad: GVK Biosciences, a contract research organisation, announced on Monday that its clinical pharmacology unit at Ahmedabad has cleared a US drug regulatory audit.
The United States Food and Drug Authority (USFDA) team visited and audited the facility which was commissioned in 2010. It has three clinics with 110 beds. It has already got approval from the Indian, Brazilian and Turkish regulators. The facility carries out important scientific studies related to drug development for pharma customers (drug companies, research institutes, etc) and submits them to various regulatory authorities.
Studies can be done on healthy human volunteers, in special populations and some specific patient-based projects, a release from the company said.
The Chief Executive Officer of GVK Biosciences, Mr Manni Kantipudi, said now customers can choose between Ahmedabad and Hyderabad, which already has regulatory approvals. The Hyderabad facility has four clinics and 144 beds with necessary scientific equipment.
Since its establishment in 2003, the company has completed over 750 studies, including those intended for regulatory submissions.
The United States Food and Drug Authority (USFDA) team visited and audited the facility which was commissioned in 2010. It has three clinics with 110 beds. It has already got approval from the Indian, Brazilian and Turkish regulators. The facility carries out important scientific studies related to drug development for pharma customers (drug companies, research institutes, etc) and submits them to various regulatory authorities.
Studies can be done on healthy human volunteers, in special populations and some specific patient-based projects, a release from the company said.
The Chief Executive Officer of GVK Biosciences, Mr Manni Kantipudi, said now customers can choose between Ahmedabad and Hyderabad, which already has regulatory approvals. The Hyderabad facility has four clinics and 144 beds with necessary scientific equipment.
Since its establishment in 2003, the company has completed over 750 studies, including those intended for regulatory submissions.
Small and Light CV Segment to more than double to 8 lakh units by 2015-16: Report
Mumbai: The Indian small and light commercial vehicle segment, which is one of the fastest growing segments in the country is expected to more than double by 2015-16 and grow at 18.5% compounded annual growth rate for the next five years, according to research report published by leading research agency Frost & Sullivan called 'Strategic Assesment of Small and Light Commercial Vehicles Market in India.'
The small and light commercial vehicle segment which stood at 3,53,620 units in 2010-11, Frost & Sullivan says will touch 8,27,920 units by 2015-16. SCV goods carrier is expected to account for around 70 per cent of this volume.
The research report says, economic changes in India have fuelled growth in the commercial vehicle market and other factors have helped skew the market in favour of small and light commercial vehicle. These segments have just entered its rapid growth phase and they are expected to continue growing in the next 5-10 years.
The Indian CV market is polarizing towards the small and light CV segments with the market share of medium CVs (MCVs) declining. This trend is intensified by many factors. For instance, the restriction on medium and heavy CVs' entrance into metro cities has made it necessary for logistics companies to procure SCVs and LCVs for within-city delivery of goods. Availability of low cost LCVs with high power and gross vehicle weight (GVW) capacities has also eaten the market share of MCVs.
However, the entrance of global CV majors into the Indian market through joint ventures with local majors is expected to make it very competitive, with many new and better products hitting the market. Nonetheless, local majors like Tata Motors Ltd (TML), Ashok Leyland (AL) and Mahindra & Mahindra (M&M) will continue to dominate the market due to their widespread network in India and increasing acquisitions abroad.
"As competition increases, it is important to strategically position products as early in their lifecycle as possible to capitalize on the market trends," said Frost & Sullivan Automotive Research Analyst. "Inflation caused by polarization and de-regulation of fuel prices, among other factors, has a direct impact on earnings of the organization."
Manufacturing in India is a key strength, especially for low cost trucks, which can generate a good business opportunity in growing global markets such as Mexico, Brazil, Africa and China. Domestic companies can attract high volumes as these products provide similar configurations at lower costs, noted the report.
"Designing the right product to be placed strategically in the market is critical for the long-term growth of the OEMs," concluded the Analyst. "The best combination of product and partner will ensure technological superiority a better market share of the OEM."
The small and light commercial vehicle segment which stood at 3,53,620 units in 2010-11, Frost & Sullivan says will touch 8,27,920 units by 2015-16. SCV goods carrier is expected to account for around 70 per cent of this volume.
The research report says, economic changes in India have fuelled growth in the commercial vehicle market and other factors have helped skew the market in favour of small and light commercial vehicle. These segments have just entered its rapid growth phase and they are expected to continue growing in the next 5-10 years.
The Indian CV market is polarizing towards the small and light CV segments with the market share of medium CVs (MCVs) declining. This trend is intensified by many factors. For instance, the restriction on medium and heavy CVs' entrance into metro cities has made it necessary for logistics companies to procure SCVs and LCVs for within-city delivery of goods. Availability of low cost LCVs with high power and gross vehicle weight (GVW) capacities has also eaten the market share of MCVs.
However, the entrance of global CV majors into the Indian market through joint ventures with local majors is expected to make it very competitive, with many new and better products hitting the market. Nonetheless, local majors like Tata Motors Ltd (TML), Ashok Leyland (AL) and Mahindra & Mahindra (M&M) will continue to dominate the market due to their widespread network in India and increasing acquisitions abroad.
"As competition increases, it is important to strategically position products as early in their lifecycle as possible to capitalize on the market trends," said Frost & Sullivan Automotive Research Analyst. "Inflation caused by polarization and de-regulation of fuel prices, among other factors, has a direct impact on earnings of the organization."
Manufacturing in India is a key strength, especially for low cost trucks, which can generate a good business opportunity in growing global markets such as Mexico, Brazil, Africa and China. Domestic companies can attract high volumes as these products provide similar configurations at lower costs, noted the report.
"Designing the right product to be placed strategically in the market is critical for the long-term growth of the OEMs," concluded the Analyst. "The best combination of product and partner will ensure technological superiority a better market share of the OEM."
India takes the lead in national standards for organic textiles
New Delhi: India has become the first country in the world to introduce national standards for organic textiles. This follows the Commerce, Industry and Textiles Minister, Mr Anand Sharma, on Monday launching the “Indian Standards for Organic Textiles” (ISOT). The standards will be introduced in the National Standards for Organic Production (NPOP) and will be administered by the Commerce and Industry Ministry as part of the Foreign Trade Policy, an official statement said. There are over 1,000 branded organic products produced in India and each one is backed up with certification and traceability. Last year, India supplied certified organic products worth Rs 1,866 crore to Europe, Asia and the US, Mr Sharma said. “The NPOP includes norms for organic production and processing of agriculture crops and certification standards. Certification standards for organic textiles were not a part of it earlier. By introducing ISOT, India took over the long-standing position of the Global Organic Textiles standards (GOTS), a private standards prevailing in the organic textiles industry,” said the Commerce Secretary, Mr S.R. Rao.
Monday, July 30, 2012
Technopark incubator, Oman college ink MoU
Thiruvananthapuram: Technopark-Technology Business Incubator has agreed to help set up an entrepreneurial ecosystem at the Caledonian College of Engineering, Oman.
Both parties signed an agreement here on Thursday. The incubator will provide technical assistance and guidance to establish, develop and promote a centre for creativity and innovation at the college in the Sultanate.
First Centre
This joint initiative will result in Oman’s first centre for creativity and innovation, a spokesperson for the Technopark incubator said here.
The arrangement will enable the college to collaborate with companies at the incubator to establish network and connections in Oman.
The latter shall also arrange training for professional development relevant to innovation and entrepreneurship at Caledonian.
Both parties will offer training, special short courses and consultancy services to the industries and commerce ministry in Oman for establishing the innovation centre.
Dr K. C. Chandrasekharan Nair, chief financial officer, Technopark, and secretary and registrar of the Technopark incubator, and Prof K. P. Ramachandran, associate dean, Caledonian College, signed the agreement.
“We wish to teach innovation to our students and would want industry professionals to benefit from the incubation centre that we plan to build,” Prof Ramachandran said.
Present at the MoU signing ceremony were Ms Annie Moses, administrative officer; and Ms Surya Thankom and Mr Sreejith S., technical officers, at the incubator.
The Caledonian College is a leading private higher education institution providing quality technological education in the Sultanate of Oman.
Both parties signed an agreement here on Thursday. The incubator will provide technical assistance and guidance to establish, develop and promote a centre for creativity and innovation at the college in the Sultanate.
First Centre
This joint initiative will result in Oman’s first centre for creativity and innovation, a spokesperson for the Technopark incubator said here.
The arrangement will enable the college to collaborate with companies at the incubator to establish network and connections in Oman.
The latter shall also arrange training for professional development relevant to innovation and entrepreneurship at Caledonian.
Both parties will offer training, special short courses and consultancy services to the industries and commerce ministry in Oman for establishing the innovation centre.
Dr K. C. Chandrasekharan Nair, chief financial officer, Technopark, and secretary and registrar of the Technopark incubator, and Prof K. P. Ramachandran, associate dean, Caledonian College, signed the agreement.
“We wish to teach innovation to our students and would want industry professionals to benefit from the incubation centre that we plan to build,” Prof Ramachandran said.
Present at the MoU signing ceremony were Ms Annie Moses, administrative officer; and Ms Surya Thankom and Mr Sreejith S., technical officers, at the incubator.
The Caledonian College is a leading private higher education institution providing quality technological education in the Sultanate of Oman.
Crompton Greaves acquires Spanish smart grid provider
Mumbai: Crompton Greaves (CG) has acquired 100 per cent stake in Spain-based ZIV for an enterprise value of €150 million.
ZIV is into high value smart grid and automation solutions for industrial and utilities segments.
The company provides digital equipment for grid automation and advanced metering infrastructure.
It operates in over 50 countries, with major operations located in Brazil, Bangalore, Spain and the US.
CG said it has been expanding its activities into the systems arena, providing integrated solutions for utilities and industries and ZIV would complement its offering for grid automation.
Mr Laurent Demortier, Managing Director, said, “With the exciting growth in smart grid around the world, CG is now well positioned to effectively compete in this fast growing segment.”
ZIV is into high value smart grid and automation solutions for industrial and utilities segments.
The company provides digital equipment for grid automation and advanced metering infrastructure.
It operates in over 50 countries, with major operations located in Brazil, Bangalore, Spain and the US.
CG said it has been expanding its activities into the systems arena, providing integrated solutions for utilities and industries and ZIV would complement its offering for grid automation.
Mr Laurent Demortier, Managing Director, said, “With the exciting growth in smart grid around the world, CG is now well positioned to effectively compete in this fast growing segment.”
IndianOil to set up refinery in Sri Lanka for Rs 20,000 cr
Mumbai: Indian Oil Corporation (IOC) will set up its first refinery outside India with an investment of up to Rs 20,000 crore in Sri Lanka. It will thus become the second Indian company to have a refinery abroad.
The Ruias-promoted Essar Energy owns the Stanlow refinery in the UK and has 50 per cent interest in Kenya Petroleum Refinery.
IOC operates 10 refineries in India and the capacity of its Sri Lankan refinery is expected to be 5-9 mtpa (million tonnes per annum). “We have done the analysis and have first-hand information on the kind of refinery we plan to set up in Sri Lanka. We are in discussions with the Sri Lankan government for tax concessions, a holiday for customs and excise, and other benefits that a refinery should accrue to us. The land will come from the Sri Lankan government,” said a senior IOC official who did not wish to be named.
IOC is already present in Sri Lanka through its subsidiary Lanka IOC. That company is the only private oil company that operates retail fuel stations in Sri Lanka. The state-owned Ceylon Petroleum Corporation also operates such stations. Lanka IOC has 157 fuel retail outlets. IOC’s refinery, the official added, could come up adjacent to an existing refinery in Sapugaskanda commissioned 43 years ago and processing 5,200 million tonnes per day of Iranian light crude oil.
IOC plans to set up the refinery in a joint venture with the Sri Lankan government, as the route would allow it easy clearances along with the government’s commitment.
“Keeping in mind its oil security, the Sri Lankan government has been looking at setting up another refinery. They were looking at expressions of interest from various countries. Since we were present in Sri Lanka, we held discussions with them. We have done the preliminary survey and have to see what kind of refinery would make economic sense,” said the official.
Sri Lanka’s only refinery has a refining capacity of two mtpa. The country’s fuel consumption is 4.5 mtpa, which necessitates 2.5 mtpa of imports. Sri Lanka’s fuel needs are estimated to rise to 6.5 mtpa by 2020 and 8.5 mtpa by 2030. Instead of importing fuel, the country plans to import crude oil and process it.
“Considering Sri Lanka’s fuel consumption targets for 2020 and 2030, we may look at either setting up a five-mtpa refinery or a nine-mtpa one. Accordingly, we’ll select the type of crude to be processed,” the official said. IOC accounts for 34.8 per cent of India’s refining capacity. Its refining capacity is 65.7 mtpa, the largest among refining companies in India.
Lanka IOC has a market share of about 43.5 per cent. It is a major supplier of lubricants and grease to Sri Lanka’s defence forces. “Lanka IOC is making phased investments to provide world-class quality petroleum products and services to the Sri Lankan customers,” the company says on its website.
The Ruias-promoted Essar Energy owns the Stanlow refinery in the UK and has 50 per cent interest in Kenya Petroleum Refinery.
IOC operates 10 refineries in India and the capacity of its Sri Lankan refinery is expected to be 5-9 mtpa (million tonnes per annum). “We have done the analysis and have first-hand information on the kind of refinery we plan to set up in Sri Lanka. We are in discussions with the Sri Lankan government for tax concessions, a holiday for customs and excise, and other benefits that a refinery should accrue to us. The land will come from the Sri Lankan government,” said a senior IOC official who did not wish to be named.
IOC is already present in Sri Lanka through its subsidiary Lanka IOC. That company is the only private oil company that operates retail fuel stations in Sri Lanka. The state-owned Ceylon Petroleum Corporation also operates such stations. Lanka IOC has 157 fuel retail outlets. IOC’s refinery, the official added, could come up adjacent to an existing refinery in Sapugaskanda commissioned 43 years ago and processing 5,200 million tonnes per day of Iranian light crude oil.
IOC plans to set up the refinery in a joint venture with the Sri Lankan government, as the route would allow it easy clearances along with the government’s commitment.
“Keeping in mind its oil security, the Sri Lankan government has been looking at setting up another refinery. They were looking at expressions of interest from various countries. Since we were present in Sri Lanka, we held discussions with them. We have done the preliminary survey and have to see what kind of refinery would make economic sense,” said the official.
Sri Lanka’s only refinery has a refining capacity of two mtpa. The country’s fuel consumption is 4.5 mtpa, which necessitates 2.5 mtpa of imports. Sri Lanka’s fuel needs are estimated to rise to 6.5 mtpa by 2020 and 8.5 mtpa by 2030. Instead of importing fuel, the country plans to import crude oil and process it.
“Considering Sri Lanka’s fuel consumption targets for 2020 and 2030, we may look at either setting up a five-mtpa refinery or a nine-mtpa one. Accordingly, we’ll select the type of crude to be processed,” the official said. IOC accounts for 34.8 per cent of India’s refining capacity. Its refining capacity is 65.7 mtpa, the largest among refining companies in India.
Lanka IOC has a market share of about 43.5 per cent. It is a major supplier of lubricants and grease to Sri Lanka’s defence forces. “Lanka IOC is making phased investments to provide world-class quality petroleum products and services to the Sri Lankan customers,” the company says on its website.
Solar photovoltaic installations in India cross 1 GW milestone
Chennai: Solar photovoltaic installations in India have crossed the 1,000 MW or 1 gigawatt (GW) mark, data made available by the Ministry of New and Renewable Energy, show.
As at the end of June, India had grid interactive solar PV installed capacity of 1,030.66 MW. Most of the capacities have come in Gujarat. In addition, India has 85.21 MW of off-grid solar PV systems, counting only those that are higher than 1 kW.
Renewable Energy in India crossed another milestone in the first quarter of the current year — total grid interactive renewable energy installations crossed 25,000 MW.
During the quarter, 495 MW were added — 291.70 MW of which came from the wind sector.
This addition took the total installed capacity of renewable power plants in the country to 25,409 MW.
Target for 2012-13
The Ministry has set a target of 4,125 MW of additional green power capacity for the current financial year. This includes 2,500 MW of wind power and 800 MW of solar PV.
It is worthy of note that the targeted wind power capacity is lesser than the achievement of last year, which was 3,164 MW.
However, the wind industry expects that even 2,500 MW would be a tough target to achieve, due to two reasons — removal of two key benefits of ‘accelerated depreciation’ and ‘generation-based incentive’, and the tough operating environment in key States, especially in the windiest State in the country, viz., Tamil Nadu.
As at the end of June, India had grid interactive solar PV installed capacity of 1,030.66 MW. Most of the capacities have come in Gujarat. In addition, India has 85.21 MW of off-grid solar PV systems, counting only those that are higher than 1 kW.
Renewable Energy in India crossed another milestone in the first quarter of the current year — total grid interactive renewable energy installations crossed 25,000 MW.
During the quarter, 495 MW were added — 291.70 MW of which came from the wind sector.
This addition took the total installed capacity of renewable power plants in the country to 25,409 MW.
Target for 2012-13
The Ministry has set a target of 4,125 MW of additional green power capacity for the current financial year. This includes 2,500 MW of wind power and 800 MW of solar PV.
It is worthy of note that the targeted wind power capacity is lesser than the achievement of last year, which was 3,164 MW.
However, the wind industry expects that even 2,500 MW would be a tough target to achieve, due to two reasons — removal of two key benefits of ‘accelerated depreciation’ and ‘generation-based incentive’, and the tough operating environment in key States, especially in the windiest State in the country, viz., Tamil Nadu.
India's GDP will cross the $5 trillion mark by 2020: Report
New Delhi: Business information and knowledge provider Dun & Bradstreet on Friday forecasted that India's GDP will still cross the US$ 5 trillion mark by 2020 despite the economy slowdown, in its second edition of its publication, India 2020 - economy outlook.
The study evaluates the growth of the Indian economy in the current decade based on its strengths and weaknesses.
"India is expected to be more than US$ 5 trillion (current market price) economy by FY20, and reach close to Japan (in terms of GDP in US$) as of 2010," the report said. "We expect the current phase of subdued growth to continue till FY15 before the economy moves into a high growth phase," it added.
According to the report, investment activity is expected to accelerate, which will help the Indian economy grow faster. Share of investment to GDP is expected to increase to 40.7% of GDP by FY20 from 36.6% in FY10. Infrastructure will be both a cause and a consequence of economic growth during the current decade. Share of discretionary spending is likely to rise to 70% of the private final consumption expenditure by FY20, compared to 60.0% in FY11.
Dr. Arun Singh, senior economist at Dun & Bradstreet India said in a statement: "Subdued growth in the domestic economy owing to the culmination of domestic and global factors is likely to continue till FY15, after which we expect the Indian economy to embark on a high growth phase."
Dun & Bradstreet also says that investment in physical infrastructure is likely to lead to employment generation, increased production efficiency, reduction in cost of doing business and improved standard of living. The share of the private sector in infrastructure financing is expected to increase from 39.4% in FY12 to 48. % in FY20.
Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu will be among the most progressed states in the country by FY20, while Bihar, Madhya Pradesh, Rajasthan, Odisha and Uttar Pradesh which have been considered laggard in terms of development, are expected to begin leveraging their huge potential in terms of vast natural resources and manpower.
The study evaluates the growth of the Indian economy in the current decade based on its strengths and weaknesses.
"India is expected to be more than US$ 5 trillion (current market price) economy by FY20, and reach close to Japan (in terms of GDP in US$) as of 2010," the report said. "We expect the current phase of subdued growth to continue till FY15 before the economy moves into a high growth phase," it added.
According to the report, investment activity is expected to accelerate, which will help the Indian economy grow faster. Share of investment to GDP is expected to increase to 40.7% of GDP by FY20 from 36.6% in FY10. Infrastructure will be both a cause and a consequence of economic growth during the current decade. Share of discretionary spending is likely to rise to 70% of the private final consumption expenditure by FY20, compared to 60.0% in FY11.
Dr. Arun Singh, senior economist at Dun & Bradstreet India said in a statement: "Subdued growth in the domestic economy owing to the culmination of domestic and global factors is likely to continue till FY15, after which we expect the Indian economy to embark on a high growth phase."
Dun & Bradstreet also says that investment in physical infrastructure is likely to lead to employment generation, increased production efficiency, reduction in cost of doing business and improved standard of living. The share of the private sector in infrastructure financing is expected to increase from 39.4% in FY12 to 48. % in FY20.
Maharashtra, Gujarat, Andhra Pradesh and Tamil Nadu will be among the most progressed states in the country by FY20, while Bihar, Madhya Pradesh, Rajasthan, Odisha and Uttar Pradesh which have been considered laggard in terms of development, are expected to begin leveraging their huge potential in terms of vast natural resources and manpower.
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