New Delhi: The new profitability clause for firms planning to list on the main stock exchanges will help boost the Small and Medium Enterprises (SME) platforms launched by the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The Securities and Exchange Board of India (Sebi), last week, added the minimum profitability clause for firms wanting to list on the main stock exchanges. Accordingly, only issuers with a minimum average pre-tax operating profit of Rs 15 crore will be allowed to make initial public offerings on the main exchanges.
Investment bankers said this provision would help SME exchanges attract companies.
Dara Kalyaniwala, vice-president (investment banking), Prabhudas Lilladher, said the move would push more smaller companies to seek listing on the SME exchange. Kalyaniwala cited some recent examples, where several companies barely crossed the new profitability limits. According to BS Research Bureau, at least 25 companies listed in 2011 had net profit figures less than Rs 15 crore. In 2012, at least three IPOs saw issuers with net profits below this number.
“Only issuers with a minimum average pre-tax operating profit of Rs 15 crore will be able to come through this route,” Sebi decided in its board meeting last week. The move will be beneficial to both companies and investors, as the SME Exchange had more safeguards in place to support the smaller IPOs.
The smaller bourse keeps away very small investors, as minimum investment is pegged at Rs 1 lakh. Further, there are market makers and anchor investors for each scrip who ensure liquidity by giving two-way quotes.
Lakshman Gugulothu, chief executive officer, BSE SME Exchange, said the move would help make a clear demarcation between the main board and the SME exchange. “There was a lot of lot of overlap because even very small companies were going to the main board and raising Rs 30-40 crore. This had to be minimised. The Sebi move is a market development measure which will be positive for both the main exchange and the SME platform.”
This will induce investor appetite in the main exchange also, as only companies with considerable size and profit track record will be present there, say experts. Companies with paid-up capital of up to Rs 25 crore can be listed on the SME Exchange. Considering companies list at a premium, they could look at a market capitalisation of around Rs 250 crore. Usually companies look to divest up to 40 per cent of the equity. Thus, issuers looking to raise up to Rs 100 crore could come to the SME platform, say experts.
Gugulothu said the SME Exchange was picking up well and such moves would help add to the momentum. “Every week, we are seeing one or two companies coming for listing and few others filing prospectuses. In the next two months we will have 10-15 companies listed on the platform,” he added.
Success in my Habit
Tuesday, August 21, 2012
CRO market to double to $1 billion by 2016: Frost & Sullivan
New Delhi: Driven by a large, easy-to-access population, cost arbitrage of up to 30-50% over US and improved regulations, the Indian clinical research market is set to more than double to cross $1 billion by 2016 according to Frost & Sullivan.
The local $485 million clinical research market is growing at a 11-13% as the country gains increasing favour as a base for global clinical trials (phase I-IV), it said.
Multinational CROs still dominate the nation's CRO market. While foreign and local CROs and foreign MNCs focus on global trials, Indian pharma companies look at conducting local trials.
"Therapeutic areas in which research can be conducted in India are varied, and this is likely to result in more number of studies in the country," a Frost & Sullivan release said. "Emerging areas, such as diagnostic research are also expected to drive the India CRO market," it added.
The growth is further bolstered by the Drug Controller General of India's (DCGI) efforts to create a favourable environment for clinical trials. The improved regulatory environment with stringent enforcement laws will also bring more credibility to trials in India, the release said.
However, increasing competition, quality concerns and lack of quality infrastructure in smaller tier II sites are some factors that impede the growth rate of the CRO market.
The local $485 million clinical research market is growing at a 11-13% as the country gains increasing favour as a base for global clinical trials (phase I-IV), it said.
Multinational CROs still dominate the nation's CRO market. While foreign and local CROs and foreign MNCs focus on global trials, Indian pharma companies look at conducting local trials.
"Therapeutic areas in which research can be conducted in India are varied, and this is likely to result in more number of studies in the country," a Frost & Sullivan release said. "Emerging areas, such as diagnostic research are also expected to drive the India CRO market," it added.
The growth is further bolstered by the Drug Controller General of India's (DCGI) efforts to create a favourable environment for clinical trials. The improved regulatory environment with stringent enforcement laws will also bring more credibility to trials in India, the release said.
However, increasing competition, quality concerns and lack of quality infrastructure in smaller tier II sites are some factors that impede the growth rate of the CRO market.
Friday, August 17, 2012
iGATE to open new facility in US, create 250 jobs
Bangalore: Nasdaq-listed iGATE will invest $1 million to open a new facility in Loudoun County in Washington DC, which will create 250 new jobs over the next 2-3 years.
Increasing visa costs and access to government projects have prompted iGATE to open a development centre in the US. In this development centre, the company will design, build and operate US Federal Government-related outsourcing projects. Additionally, it will create 250 new jobs over the next two to three years, according to company officials.
According to US laws, federal government projects cannot be done out of the US for security purposes. Some other reasons for iGATE to open a development centre in the US are political proximity and adequate skilled technical manpower. This is the fourth facility in the US for iGATE.
“This facility enhances our ability to deliver top-quality, innovative IT solutions to our government customers,” said Timothy Coffin, President, iGate Government Solutions.
Washington DC, which has 900 federal government contractors, employs 20 per cent of the county’s IT workforce, according to Loudoun county officials.
In an election year in the US, the topic of jobs in the US is increasingly coming to the fore and this investment by iGate will help to quell concerns around Indian companies taking away US jobs, according to industry watchers. “Also, Indian IT companies have to be more global and clients are increasingly asking them to deliver out of different geographies,” said Sanjoy Sen, Senior Director, Deloitte.
Companies such as HCL Technologies plans to create 10,000 jobs by 2015 in the US and European markets and others such as WNS Holdings set up an office in South Carolina from July. Similarly, TCS, Infosys and Wipro have a presence in the American continent.
Increasing visa costs and access to government projects have prompted iGATE to open a development centre in the US. In this development centre, the company will design, build and operate US Federal Government-related outsourcing projects. Additionally, it will create 250 new jobs over the next two to three years, according to company officials.
According to US laws, federal government projects cannot be done out of the US for security purposes. Some other reasons for iGATE to open a development centre in the US are political proximity and adequate skilled technical manpower. This is the fourth facility in the US for iGATE.
“This facility enhances our ability to deliver top-quality, innovative IT solutions to our government customers,” said Timothy Coffin, President, iGate Government Solutions.
Washington DC, which has 900 federal government contractors, employs 20 per cent of the county’s IT workforce, according to Loudoun county officials.
In an election year in the US, the topic of jobs in the US is increasingly coming to the fore and this investment by iGate will help to quell concerns around Indian companies taking away US jobs, according to industry watchers. “Also, Indian IT companies have to be more global and clients are increasingly asking them to deliver out of different geographies,” said Sanjoy Sen, Senior Director, Deloitte.
Companies such as HCL Technologies plans to create 10,000 jobs by 2015 in the US and European markets and others such as WNS Holdings set up an office in South Carolina from July. Similarly, TCS, Infosys and Wipro have a presence in the American continent.
Piramal Enterprises picks up 27% stake in Bluebird Aero Systems
Mumbai: Piramal Enterprises, of the Ajay Piramal-led group, joins the list of Indian companies that see a growing opportunity in the Defence sector.
It has picked up a 27.83 per cent stake in Bluebird Aero Systems, an Israel-based unmanned air systems manufacturer, for about Rs 40 crore ($7 million). Bluebird is set to bid for contracts in India.
Piramal’s deal with Bluebird Aero Systems is considered unique as the company is an initiative of former engineers of the Israel Defence Forces. Bluebird has an agreement with Bangalore’s Dynamatic Technologies for manufacturing and marketing mini and micro tactical, unmanned aerial vehicles in India.
Companies such as Tata Motors, Mahindra and Mahindra and L&T have a presence in the Defence sector, as they hope to capitalise on the offset clause — foreign suppliers must have a percentage of local content in the orders they bag to supply to the sector. India’s Defence budget for this year is up 17 per cent to $38 billion.
BSE-listed Rossell India, which recently diversified into Defence procurement, has floated a joint venture with CAE, Canada, for simulation training solutions for the Defence sector. Following FIPB approval, Rossell India is to hold 74 per cent, with CAE holding 26 per cent share in the venture.
The venture will focus on providing training solutions for Defence procurement. An official said the Defence Ministry has specifically recognised simulation and training services as being eligible under the Indian offset criteria for Defence programmes.
Early this month, Mahindra and Mahindra and New York-headquartered Telephonics Corporations announced a joint venture to provide advanced airborne surveillance and communication systems to the Defence Ministry and Civil sector. The tie-up envisages establishing a plant at Bangalore, which will initially manufacture and service airborne radar systems being supplied to Hindustan Aeronautics.
Tata Motors will invest around Rs 600 crore on developing Futuristic Infantry Combat Vehicles. The company’s current market share in the wheeled military segment is approximately 40 per cent, and in the internal security segment is 75 per cent. “We work very closely with the Defence Research and Development Organisation on the potential needs of the forces,” said a company spokesperson.
It has picked up a 27.83 per cent stake in Bluebird Aero Systems, an Israel-based unmanned air systems manufacturer, for about Rs 40 crore ($7 million). Bluebird is set to bid for contracts in India.
Piramal’s deal with Bluebird Aero Systems is considered unique as the company is an initiative of former engineers of the Israel Defence Forces. Bluebird has an agreement with Bangalore’s Dynamatic Technologies for manufacturing and marketing mini and micro tactical, unmanned aerial vehicles in India.
Companies such as Tata Motors, Mahindra and Mahindra and L&T have a presence in the Defence sector, as they hope to capitalise on the offset clause — foreign suppliers must have a percentage of local content in the orders they bag to supply to the sector. India’s Defence budget for this year is up 17 per cent to $38 billion.
BSE-listed Rossell India, which recently diversified into Defence procurement, has floated a joint venture with CAE, Canada, for simulation training solutions for the Defence sector. Following FIPB approval, Rossell India is to hold 74 per cent, with CAE holding 26 per cent share in the venture.
The venture will focus on providing training solutions for Defence procurement. An official said the Defence Ministry has specifically recognised simulation and training services as being eligible under the Indian offset criteria for Defence programmes.
Early this month, Mahindra and Mahindra and New York-headquartered Telephonics Corporations announced a joint venture to provide advanced airborne surveillance and communication systems to the Defence Ministry and Civil sector. The tie-up envisages establishing a plant at Bangalore, which will initially manufacture and service airborne radar systems being supplied to Hindustan Aeronautics.
Tata Motors will invest around Rs 600 crore on developing Futuristic Infantry Combat Vehicles. The company’s current market share in the wheeled military segment is approximately 40 per cent, and in the internal security segment is 75 per cent. “We work very closely with the Defence Research and Development Organisation on the potential needs of the forces,” said a company spokesperson.
Cairn India buys 60% in South African gas block
New Delhi: In its first deal since being acquired by Vedanta Resources, Cairn India has acquired a 60 per cent stake from PetroSA in an oil and gas exploration block on the west coast of South Africa. With this, Cairn India’s presence abroad would now be extended beyond Sri Lanka.
The block comprises an existing gas field, discovered in 1987. Cairn India would conduct seismic surveys and carry out initial exploration drilling. The time taken to begin production would depend on the nature and volume of hydrocarbons found.
“This is an important step for the company’s growth beyond the Indian sub-continent. We see an attractive opportunity to leverage our capabilities in a rapidly-emerging area and aspire to build a wider business in the region,” said P Elango, Cairn India director (strategy).
Elango is scheduled to take over as officiating chief executive from September 1. He would replace Rahul Dhir, who had resigned a week earlier.
Cairn India would be the operator in the block, while PetroSA, owned by the government of that country, would hold the remaining interest, said a company statement. The closure of the transaction is subject to regulatory approvals from the South African government.
Cairn India would hold the stake through a wholly-owned South African subsidiary. The company has made no payment for the deal. However, in the initial phase, it would carry PetroSA’s share of investment towards the work programme. The consideration for the stake acquired in the block would be through investment linked to the work programme for developing the asset. A company statement said it had signed a farm-in agreement for exploration in offshore Block 1. The block would be an anchor exploration asset in South Africa, and would augment Cairn India’s existing portfolio, the company said.
Block 1 covers 19,922 sq km and currently, initial stages of exploration are underway there. The block has an existing gas discovery, as well as identified oil and gas leads and prospects. It is located in the Orange Basin, along the north-western maritime border between South Africa and Namibia.
The block comprises an existing gas field, discovered in 1987. Cairn India would conduct seismic surveys and carry out initial exploration drilling. The time taken to begin production would depend on the nature and volume of hydrocarbons found.
“This is an important step for the company’s growth beyond the Indian sub-continent. We see an attractive opportunity to leverage our capabilities in a rapidly-emerging area and aspire to build a wider business in the region,” said P Elango, Cairn India director (strategy).
Elango is scheduled to take over as officiating chief executive from September 1. He would replace Rahul Dhir, who had resigned a week earlier.
Cairn India would be the operator in the block, while PetroSA, owned by the government of that country, would hold the remaining interest, said a company statement. The closure of the transaction is subject to regulatory approvals from the South African government.
Cairn India would hold the stake through a wholly-owned South African subsidiary. The company has made no payment for the deal. However, in the initial phase, it would carry PetroSA’s share of investment towards the work programme. The consideration for the stake acquired in the block would be through investment linked to the work programme for developing the asset. A company statement said it had signed a farm-in agreement for exploration in offshore Block 1. The block would be an anchor exploration asset in South Africa, and would augment Cairn India’s existing portfolio, the company said.
Block 1 covers 19,922 sq km and currently, initial stages of exploration are underway there. The block has an existing gas discovery, as well as identified oil and gas leads and prospects. It is located in the Orange Basin, along the north-western maritime border between South Africa and Namibia.
Abhijeet Group in $7-bn coal deal with US firm
New Delhi: The Nagpur-based Abhijeet Group on Thursday signed a $7-billion (Rs 39,069 crore) deal with US-based FJS Energy LLC for coal supply to fire its steel and power units in India. The New Jersey-based company said it would supply coal from its affiliates, FJSE Marshall Inc and FJSE River Coal, for 25 years.
“The deal would benefit both companies optimally,” said M P Narayanan, chairman of the FJS Energy board. “Abhijeet Group is a major client for coal producers and suppliers in the US.”
Abhijeet, led by Manoj Jayaswal, has significant presence in the core sector areas of power, roads, mining, engineering procurement and construction, ferro alloys, steel and cement. It has a power generation capacity of 2,671 Mw — the 271-Mw Mihan project in Nagpur, the 1,080-Mw Chandwa project in Jhark-hand and the 1,320-Mw Banka project in Bihar. It is also setting up 10-million-tonne per annum (mtpa) steel-making capacity over three states — Jharkhand, West Bengal and Maharashtra.
The Group’s Executive Director, Anand Kumar, said, “FJS Energy is a reliable and high-quality coal producer in the US. The import will help us meet the increasing demand for energy and steel here.”
FJS Energy was founded in 2011 by energy sector professionals from India and North America as a global resource and energy enterprise. The company aims to secure five per cent market share in the Indian coal import business.
“The deal would benefit both companies optimally,” said M P Narayanan, chairman of the FJS Energy board. “Abhijeet Group is a major client for coal producers and suppliers in the US.”
Abhijeet, led by Manoj Jayaswal, has significant presence in the core sector areas of power, roads, mining, engineering procurement and construction, ferro alloys, steel and cement. It has a power generation capacity of 2,671 Mw — the 271-Mw Mihan project in Nagpur, the 1,080-Mw Chandwa project in Jhark-hand and the 1,320-Mw Banka project in Bihar. It is also setting up 10-million-tonne per annum (mtpa) steel-making capacity over three states — Jharkhand, West Bengal and Maharashtra.
The Group’s Executive Director, Anand Kumar, said, “FJS Energy is a reliable and high-quality coal producer in the US. The import will help us meet the increasing demand for energy and steel here.”
FJS Energy was founded in 2011 by energy sector professionals from India and North America as a global resource and energy enterprise. The company aims to secure five per cent market share in the Indian coal import business.
India's grassroot products find market on foreign shores
Ahmedabad: Unique, innovative products and practices by grassroot innovators of India are seeing a surge demand in foreign countries. The Honey Bee Network (HBN) and National Innovation Foundation (NIF), which scout and document innovations from remote areas in the country, have received enquiry from 40 countries for 27 products. Out of these, the innovators have sold nine innovations to individuals or companies in many countries.
Mitticool, a clay refrigerator that works without electricity, has attracted companies in the US and Spain. The green innovator, Mansukh Prajapati, has already sold several units of the refrigerator to companies in these countries.
The refrigerator is among eight other products, which have been sold to countries like UK, Germany, Sri Lanka, Philippines, Pakistan, South Africa and several other African countries.
"Biomass gassifier, food processing machine, onion transplanter, milking machine, coconut tree climber, sanitary napkin machine, eczema cream, sugar cane bud chipper are the products, which have been sold to many countries," said Anil Gupta, founder of HBN and a professor at the Indian Institute of Management Ahmedabad.
Other products like Ajooba tubelight, clay cooker, gas iron, hydro electric turbine, natural water cooler, pole climber and solar mosquito destroyer are among those that have invited queries and are under various stages of discussion.
"Our focus is not just to sell products or practices to these countries but also to learn from them. For instance, HBN's newsletter has published innovative practices from many African countries. Our focus is not only to give them but also learn from them," said Gupta.
Mitticool, a clay refrigerator that works without electricity, has attracted companies in the US and Spain. The green innovator, Mansukh Prajapati, has already sold several units of the refrigerator to companies in these countries.
The refrigerator is among eight other products, which have been sold to countries like UK, Germany, Sri Lanka, Philippines, Pakistan, South Africa and several other African countries.
"Biomass gassifier, food processing machine, onion transplanter, milking machine, coconut tree climber, sanitary napkin machine, eczema cream, sugar cane bud chipper are the products, which have been sold to many countries," said Anil Gupta, founder of HBN and a professor at the Indian Institute of Management Ahmedabad.
Other products like Ajooba tubelight, clay cooker, gas iron, hydro electric turbine, natural water cooler, pole climber and solar mosquito destroyer are among those that have invited queries and are under various stages of discussion.
"Our focus is not just to sell products or practices to these countries but also to learn from them. For instance, HBN's newsletter has published innovative practices from many African countries. Our focus is not only to give them but also learn from them," said Gupta.
Thursday, August 16, 2012
Volvo-Eicher JV to drive in new-generation trucks
Mumbai: Volvo, the world's second-largest truck maker, will soon renew its global rivalry with top player Daimler on the Indian roads through its joint venture with Eicher Motors.
Even as Daimler India gears up to launch its BharatBenz range of trucks within a few months, the Volvo-Eicher venture is readying a whole new range of trucks right from 5 tonne to 49 tonne and above with new platforms, engines and cabins.
"We want to make a big breakthrough in the heavy duty trucks," Siddhartha Lal, MD of Eicher Motors, said. "We have new engines from Volvo's global platform and we will have full new modern truck product range powered by these engines," he added.
While Lal declined to share the specifics, industry insiders said the new trucks will be based on Volvo's UD platform (from Nissan Diesel) and will be priced at a 10% premium to the existing range.
The new range is expected to help VE Commercial Vehicles, the joint venture between Volvo and Eicher, expand its presence in medium and heavy truck segments (25-49 tonne), where the company has minimal share. VECV showcased its entire range-which will take 2-3 years to hit the road-to dealers and suppliers in May. Industry sources say they will match BharatBenz trucks in quality and cost parameters.
One of the suppliers working on the project says the new Volvo range will offer stiff competition to Tata Motors Prima and Ultra trucks as well as Ashok Leyland's U Truck. Industry experts say Eicher's attempt to enter the heavy-duty truck space in 2005-06 did not get a good response from the market and that's how the tie-up with Volvo came about four years ago. "With Volvo's global platform and engines, VECV could now have a compelling product proposition in the core medium and heavy duty truck market, which will bridge the critical gap in the portfolio and could make the company a serious player," V G Ramakrishnan, senior director, Frost & Sullivan said.
VECV has already invested 700 crore in the business and it has lined up another 1,000 crore for the next few years, which will go into R&D, engine manufacturing facility, bus body building plant and new paint shop. Lal, the company MD, said VECV targets 15% share in the Indian heavy-duty truck market by 2015, up from 3.4% now. It has 11% share in the overall truck market, thanks to 31% share in the light duty and medium duty segment of 5-12 tonne.
Even as Daimler India gears up to launch its BharatBenz range of trucks within a few months, the Volvo-Eicher venture is readying a whole new range of trucks right from 5 tonne to 49 tonne and above with new platforms, engines and cabins.
"We want to make a big breakthrough in the heavy duty trucks," Siddhartha Lal, MD of Eicher Motors, said. "We have new engines from Volvo's global platform and we will have full new modern truck product range powered by these engines," he added.
While Lal declined to share the specifics, industry insiders said the new trucks will be based on Volvo's UD platform (from Nissan Diesel) and will be priced at a 10% premium to the existing range.
The new range is expected to help VE Commercial Vehicles, the joint venture between Volvo and Eicher, expand its presence in medium and heavy truck segments (25-49 tonne), where the company has minimal share. VECV showcased its entire range-which will take 2-3 years to hit the road-to dealers and suppliers in May. Industry sources say they will match BharatBenz trucks in quality and cost parameters.
One of the suppliers working on the project says the new Volvo range will offer stiff competition to Tata Motors Prima and Ultra trucks as well as Ashok Leyland's U Truck. Industry experts say Eicher's attempt to enter the heavy-duty truck space in 2005-06 did not get a good response from the market and that's how the tie-up with Volvo came about four years ago. "With Volvo's global platform and engines, VECV could now have a compelling product proposition in the core medium and heavy duty truck market, which will bridge the critical gap in the portfolio and could make the company a serious player," V G Ramakrishnan, senior director, Frost & Sullivan said.
VECV has already invested 700 crore in the business and it has lined up another 1,000 crore for the next few years, which will go into R&D, engine manufacturing facility, bus body building plant and new paint shop. Lal, the company MD, said VECV targets 15% share in the Indian heavy-duty truck market by 2015, up from 3.4% now. It has 11% share in the overall truck market, thanks to 31% share in the light duty and medium duty segment of 5-12 tonne.
Indirect tax collections up 23% in July
New Delhi: Indirect tax collections rose 23 per cent to Rs 39,787 crore in July, against Rs 32,289 crore in the corresponding month last year. For this financial year, the government has set an indirect tax target of Rs 5.05 lakh crore, 27 per cent more than the mop-up in 2011-12.
A meagre eight per cent growth in customs collections, owing to contraction in imports, pulled down the overall indirect tax mop-up. Collections from levy of customs duty stood at Rs 12,486 crore in July, against Rs 11,540 crore in the year-ago period.
Excise and service tax collections, however, recorded 27.6 per cent and 37.4 per cent growth, respectively, owing to a two-percentage point rise in both excise and service tax in the Budget. The growth in these collections was also aided by the introduction of a negative list for services, which helped widen the tax base. Excise duty collections in July stood at Rs 15,715 crore, against Rs 12,316 crore in the year-ago period. This was despite official data showing industrial production contracted 0.1 per cent in the quarter ended June. Service tax collections rose to Rs 11,586 crore, compared with Rs 8,433 crore in the corresponding month last year.
Source: Venture Intelligence
For the April-July period, indirect tax collections rose 14.5 per cent to Rs 1.25 lakh crore, against Rs 1.09 lakh crore in the year-ago period. While service tax collections rose about 40 per cent to Rs 30,917 crore in this period from Rs 21,100 crore in the year-ago period, excise duty collections rose 18.4 per cent to Rs 42,934 crore. Customs duty collections increased just 0.8 per cent to Rs 51,173 crore.
A meagre eight per cent growth in customs collections, owing to contraction in imports, pulled down the overall indirect tax mop-up. Collections from levy of customs duty stood at Rs 12,486 crore in July, against Rs 11,540 crore in the year-ago period.
Excise and service tax collections, however, recorded 27.6 per cent and 37.4 per cent growth, respectively, owing to a two-percentage point rise in both excise and service tax in the Budget. The growth in these collections was also aided by the introduction of a negative list for services, which helped widen the tax base. Excise duty collections in July stood at Rs 15,715 crore, against Rs 12,316 crore in the year-ago period. This was despite official data showing industrial production contracted 0.1 per cent in the quarter ended June. Service tax collections rose to Rs 11,586 crore, compared with Rs 8,433 crore in the corresponding month last year.
Source: Venture Intelligence
For the April-July period, indirect tax collections rose 14.5 per cent to Rs 1.25 lakh crore, against Rs 1.09 lakh crore in the year-ago period. While service tax collections rose about 40 per cent to Rs 30,917 crore in this period from Rs 21,100 crore in the year-ago period, excise duty collections rose 18.4 per cent to Rs 42,934 crore. Customs duty collections increased just 0.8 per cent to Rs 51,173 crore.
Green nod for 2,040 projects in last 3 years, says Govt
New Delhi: In the past three years, projects in Gujarat received the highest number environmental clearances, followed by Andhra Pradesh and Maharashtra.
Of the total 2,040 projects cleared in the past three years, 273 are in Gujarat, 230 in Andhra Pradesh, 200 in Maharashtra and 156 in Orissa, according to the Ministry of Environment and Forests (MoEF).
Interestingly, among the smaller States, projects in Chhatisgarh received the maximum number of green nods at 115 and Jharkhand at 112, both mineral-rich areas.
As on August 13, 2012, a total of 593 project proposals were awaiting environment and forest clearance, the Environment Minister, Jayanthi Natarjan, said in a written reply to Lok Sabha this week.
The Ministry has been under pressure to fast-track green clearances to send the right signals to attract investments. The Prime Minister’s Office had recently held a review meeting on coal projects being held up due to green clearances. After recent outages, the Ministry also came under fire for “stalling” of power projects, which it refuted as “factually incorrect’.
To fast-track clearances, the MoEF has now decentralised work, assigning some of the work to States and Union territories. Regular meetings of the expert appraisal panel, updating of project status on the Ministry’s Web site and uploading of sector-specific manuals are some of the other steps, the Minister said.
According to the Environment Impact Assessment Notification, 2006, there is a time of limit of 105 days from the date of receipt of complete information for grant of environmental clearance.
Of the total 2,040 projects cleared in the past three years, 273 are in Gujarat, 230 in Andhra Pradesh, 200 in Maharashtra and 156 in Orissa, according to the Ministry of Environment and Forests (MoEF).
Interestingly, among the smaller States, projects in Chhatisgarh received the maximum number of green nods at 115 and Jharkhand at 112, both mineral-rich areas.
As on August 13, 2012, a total of 593 project proposals were awaiting environment and forest clearance, the Environment Minister, Jayanthi Natarjan, said in a written reply to Lok Sabha this week.
The Ministry has been under pressure to fast-track green clearances to send the right signals to attract investments. The Prime Minister’s Office had recently held a review meeting on coal projects being held up due to green clearances. After recent outages, the Ministry also came under fire for “stalling” of power projects, which it refuted as “factually incorrect’.
To fast-track clearances, the MoEF has now decentralised work, assigning some of the work to States and Union territories. Regular meetings of the expert appraisal panel, updating of project status on the Ministry’s Web site and uploading of sector-specific manuals are some of the other steps, the Minister said.
According to the Environment Impact Assessment Notification, 2006, there is a time of limit of 105 days from the date of receipt of complete information for grant of environmental clearance.
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