New Delhi: Keeping in view the importance of Tourism sector, the allocation for Ministry of Tourism in the Union Budget presented today has been hiked by Rs.87.66 crore. The allocation for the Ministry this year is Rs.1297.66 crore while it was Rs. 1210 crore in the Union Budget 2012-13 and Rs. 1110.96 crore in the Union Budget 2011-12.
The Budget allocation for Plan projects/schemes for the benefit of North East region and Sikkim has been hiked from Rs. 121 crore to Rs. 129 crore. The allocation under this head in the Union budget 2011-2012 was 110 crore.
The allocation under tourist infrastructure is for the creation of infrastructural facilities on construction of Budget Accommodation, wayside amenities, Tourist Reception Centers, Refurbishment of Monuments, Special Tourism Projects, Adventure and Sports facilities, Sound and Light Shows, illuminations of monuments, providing for improvement in solid waste management and sewerage management improvement of surroundings, Signages, procurement of equipments directly related to Tourism and Rural Tourism projects etc. This provision also relates to the Large Revenue Generating projects, generating revenue through levy of fees or user charges like Tourist Trains, cruise vessels, Cruise terminals, Convention Centre, Golf Courses etc. and creation of land bank for hotels to provide the hotel accommodation in the country by purchasing land and build hotels through public private partnerships. The provision also includes Externally Aided Projects (including UNDP Endogenous Tourist Projects and assistance to c entral agencies for Tourism Infrastructural Development.
Success in my Habit
Saturday, March 2, 2013
Rs 14,000-cr capital infusion for public sector banks next fiscal
Hon’ble Members are aware that Government constituted the Financial Sector Legislative Reforms in 2011. I am informed that the report will be presented next month. It is our intention to examine the recommendations and act quickly and decisively so that our financial sector stands on sound legal foundations and remains well-regulated, efficient and internationally competitive. I propose to constitute a Standing Council of Experts in the Ministry of Finance to analyse the international competitiveness of the Indian financial sector, periodically examine the transaction costs of doing business in the Indian market, and provide inputs to Government for necessary action.
Banking
Our public sector banks are well regulated; they must also be adequately capitalised. Before the end of March 2013, we shall provide Rs 12,517 crore to infuse additional capital into 13 public sector banks. In 2013-14, I propose to provide a further amount of Rs 14,000 crore for capital infusion. We shall ensure that public sector banks always meet the Basel III regulations as they come into force in a phased manner.
Financial inclusion has made rapid strides. All scheduled commercial banks and all RRBs are on core banking solution (CBS) and on the electronic payment systems (NEFT and RTGS). We are working with RBI and Nabard to bring all other banks, including some cooperative banks, on CBS and e-payment systems by 31.12.2013. Public sector banks have assured me that all their branches will have an ATM in place by 31.3.2014.
Women are at the head of many banks today, including two public sector banks, but there is no bank that exclusively serves women. Can we have a bank that lends mostly to women and women-run businesses, that supports women SHGs and women’s livelihood, that employs predominantly women, and that addresses gender related aspects of empowerment and financial inclusion? I think we can. I, therefore, propose to set up India’s first Women’s Bank as a public sector bank and I shall provide Rs 1,000 crore as initial capital. I hope to obtain the necessary approvals and the banking licence by October, 2013, and I invite all Hon’ble Members to the inauguration of the bank shortly thereafter.
The Rural Housing Fund set up through the National Housing Bank is used to refinance lending institutions, including RRBs that extend loans for rural housing. So far, 400,000 rural families have taken loans. In the last Budget, we provided Rs 4,000 crore to the Fund. In consultation with RBI, I propose to provide Rs 6,000 crore to the Rural Housing Fund in 2013-14.
Similarly, it is proposed to start a fund for urban housing to mitigate the huge shortage of houses in urban areas. I propose to ask National Housing Bank to set up the Urban Housing Fund and, in consultation with RBI, I propose to provide Rs 2,000 crore to the Fund in 2013-14.
Insurance
A multi-pronged approach will be followed to increase the penetration of insurance, both life and general, in the country. I have a number of proposals that have been finalised in consultation with the regulator, IRDA.
Insurance companies will be empowered to open branches in Tier II cities and below without prior approval of IRDA.
All towns of India with a population of 10,000 or more will have an office of LIC and an office of at least one public sector general insurance company. I propose to achieve this goal by 31.3.2014.
KYC of banks will be sufficient to acquire insurance policies.
Banks will be permitted to act as insurance brokers so that the entire network of bank branches will be utilised to increase penetration.
Banking correspondents will be allowed to sell micro-insurance products.
Group insurance products will now be offered to homogenous groups such as SHGs, domestic workers associations, anganwadi workers, teachers in schools, nurses in hospitals etc.
There are about 10,00,000 motor third party claims that are pending before Tribunals/Courts. Public sector general insurance companies will organise adalats to settle the claims and give relief to the affected persons/families.
The Insurance Laws (Amendment) Bill and the PFRDA Bill are before this House. I sincerely hope that Government and the Opposition can arrive at a consensus and pass the two Bills in this session.
The Rashtriya Swasthiya Bima Yojana covers 34 million families below the poverty line. It will now be extended to other categories such as rickshaw, auto-rickshaw and taxi drivers, sanitation workers, rag pickers and mine workers.
A comprehensive and integrated social security package for the unorganised sector is a measure that will benefit the poorest and most vulnerable sections of society. The package should include life-cum-disability cover, health cover, maternity assistance and pension benefits. The present schemes such as AABY, JSBY, RSBY, JSY and IGMSY are run by different ministries and departments. I propose to facilitate convergence among the various stakeholder ministries/departments so that we can evolve a comprehensive social security package.
Banking
Our public sector banks are well regulated; they must also be adequately capitalised. Before the end of March 2013, we shall provide Rs 12,517 crore to infuse additional capital into 13 public sector banks. In 2013-14, I propose to provide a further amount of Rs 14,000 crore for capital infusion. We shall ensure that public sector banks always meet the Basel III regulations as they come into force in a phased manner.
Financial inclusion has made rapid strides. All scheduled commercial banks and all RRBs are on core banking solution (CBS) and on the electronic payment systems (NEFT and RTGS). We are working with RBI and Nabard to bring all other banks, including some cooperative banks, on CBS and e-payment systems by 31.12.2013. Public sector banks have assured me that all their branches will have an ATM in place by 31.3.2014.
Women are at the head of many banks today, including two public sector banks, but there is no bank that exclusively serves women. Can we have a bank that lends mostly to women and women-run businesses, that supports women SHGs and women’s livelihood, that employs predominantly women, and that addresses gender related aspects of empowerment and financial inclusion? I think we can. I, therefore, propose to set up India’s first Women’s Bank as a public sector bank and I shall provide Rs 1,000 crore as initial capital. I hope to obtain the necessary approvals and the banking licence by October, 2013, and I invite all Hon’ble Members to the inauguration of the bank shortly thereafter.
The Rural Housing Fund set up through the National Housing Bank is used to refinance lending institutions, including RRBs that extend loans for rural housing. So far, 400,000 rural families have taken loans. In the last Budget, we provided Rs 4,000 crore to the Fund. In consultation with RBI, I propose to provide Rs 6,000 crore to the Rural Housing Fund in 2013-14.
Similarly, it is proposed to start a fund for urban housing to mitigate the huge shortage of houses in urban areas. I propose to ask National Housing Bank to set up the Urban Housing Fund and, in consultation with RBI, I propose to provide Rs 2,000 crore to the Fund in 2013-14.
Insurance
A multi-pronged approach will be followed to increase the penetration of insurance, both life and general, in the country. I have a number of proposals that have been finalised in consultation with the regulator, IRDA.
Insurance companies will be empowered to open branches in Tier II cities and below without prior approval of IRDA.
All towns of India with a population of 10,000 or more will have an office of LIC and an office of at least one public sector general insurance company. I propose to achieve this goal by 31.3.2014.
KYC of banks will be sufficient to acquire insurance policies.
Banks will be permitted to act as insurance brokers so that the entire network of bank branches will be utilised to increase penetration.
Banking correspondents will be allowed to sell micro-insurance products.
Group insurance products will now be offered to homogenous groups such as SHGs, domestic workers associations, anganwadi workers, teachers in schools, nurses in hospitals etc.
There are about 10,00,000 motor third party claims that are pending before Tribunals/Courts. Public sector general insurance companies will organise adalats to settle the claims and give relief to the affected persons/families.
The Insurance Laws (Amendment) Bill and the PFRDA Bill are before this House. I sincerely hope that Government and the Opposition can arrive at a consensus and pass the two Bills in this session.
The Rashtriya Swasthiya Bima Yojana covers 34 million families below the poverty line. It will now be extended to other categories such as rickshaw, auto-rickshaw and taxi drivers, sanitation workers, rag pickers and mine workers.
A comprehensive and integrated social security package for the unorganised sector is a measure that will benefit the poorest and most vulnerable sections of society. The package should include life-cum-disability cover, health cover, maternity assistance and pension benefits. The present schemes such as AABY, JSBY, RSBY, JSY and IGMSY are run by different ministries and departments. I propose to facilitate convergence among the various stakeholder ministries/departments so that we can evolve a comprehensive social security package.
Government to introduce investment allowance of 15 per cent for high value investments
New Delhi: The Finance Minister, Shri P Chidambaram in his Budget speech in Lok Sabha today said that to attract new investment and to quicken the implementation of projects, I propose to introduce an investment allowance for new high value investments A company investing Rs. 100 crore or more in plant and machinery during the period 1.4.2013 to 31.3.2015 will be entitled to deduct an investment allowance of 15 percent of the investment. This will be in addition to the current rates of depreciation. There will be enormous spill-over benefits to small and medium enterprise.
Shri Chidambaram added that the National Electronics Policy 2012 is intended to promote manufacture of electronic good in India. We recognize the pivotal role of semiconductor wafer fabs in the eco-system of manufacture of electronics. I propose to provide appropriate incentives to semiconductor wafer fab manufacturing facilities, including zero customs duty for plant and machinery.
Shri Chidambaram added that the National Electronics Policy 2012 is intended to promote manufacture of electronic good in India. We recognize the pivotal role of semiconductor wafer fabs in the eco-system of manufacture of electronics. I propose to provide appropriate incentives to semiconductor wafer fab manufacturing facilities, including zero customs duty for plant and machinery.
Thursday, February 28, 2013
Mitsubishi Electric begins inverter assembly
Pune: Mitsubishi Electric India (MEI) has begun assembly of inverters for industrial and building applications at Pune. The facility will cater to requirements in India initially, and for export to South-East Asian markets, subsequently.
The company has also set up an India Development Centre to support development of products such as programmable logic controllers, human machine interfaces and servo drivers that will be manufactured at one of three locations globally.
Hideyuki Ohkubu, Executive Officer, Group President, Mitsubishi Electric Corporation, said the company will make India-specific as well as global market products here, and help set up a base for exports.
Mitsubishi has been in India since 1995 and been providing imported low voltage drives from 0.4 kW to 630 kW to industry sectors such as plastic, textile, pharmacy and automobile.
The Pune facility has involved an investment of Rs 15 crore and will make 40,000 units in the first year, and scale it up to 150,000 units in phases over the next two to three years.
The capacity will range from 3.75 kW to 15 kW.
The factory automation business is currently around Rs 250 crore and will treble and garner a market share in India of around 15 per cent by 2015-16, said Sumit Sinha, Strategic Planning, MEI Pvt Ltd.
The company has also set up an India Development Centre to support development of products such as programmable logic controllers, human machine interfaces and servo drivers that will be manufactured at one of three locations globally.
Hideyuki Ohkubu, Executive Officer, Group President, Mitsubishi Electric Corporation, said the company will make India-specific as well as global market products here, and help set up a base for exports.
Mitsubishi has been in India since 1995 and been providing imported low voltage drives from 0.4 kW to 630 kW to industry sectors such as plastic, textile, pharmacy and automobile.
The Pune facility has involved an investment of Rs 15 crore and will make 40,000 units in the first year, and scale it up to 150,000 units in phases over the next two to three years.
The capacity will range from 3.75 kW to 15 kW.
The factory automation business is currently around Rs 250 crore and will treble and garner a market share in India of around 15 per cent by 2015-16, said Sumit Sinha, Strategic Planning, MEI Pvt Ltd.
L&T Construction bags new orders worth Rs 1,504 cr
Coimbatore: Engineering giant Larsen & Toubro has said its construction arm L&T Construction has obtained new orders worth more than Rs 1,504 crore both within and outside the country.
The water and effluent treatment business has secured new orders worth Rs 621 crore including from the Kolkata Metropolitan Development Authority and the Kolkata Municipal Corporation.
Its solar business unit has got an order from Kiran Energy for building solar PV plants in Tamil Nadu valued Rs 413 crore.
In the power transmission and distribution business, L&T Construction has got an order worth Rs 265 crore from TANGEDCO (Tamil Nadu Generation & Distribution Corporation Ltd) for power distribution works across the State and orders worth Rs 205 crore related to ongoing projects in the civil works space.
The water and effluent treatment business has secured new orders worth Rs 621 crore including from the Kolkata Metropolitan Development Authority and the Kolkata Municipal Corporation.
Its solar business unit has got an order from Kiran Energy for building solar PV plants in Tamil Nadu valued Rs 413 crore.
In the power transmission and distribution business, L&T Construction has got an order worth Rs 265 crore from TANGEDCO (Tamil Nadu Generation & Distribution Corporation Ltd) for power distribution works across the State and orders worth Rs 205 crore related to ongoing projects in the civil works space.
Turkish Cargo signs pact with IBS Software for iCargo
Thiruvananthapuram: IBS Software has signed a 10-year, ‘multimillion dollar’ contract with Turkish Airlines for providing software support to its cargo service.
The deal was announced in Istanbul, said Sankalp Saxena, President and Head, Aviation operations services, IBS Software.
iCargo is the flagship product of IBS for the air cargo operations.
iCargo supports requirements of airline freight business providing Web-enabled features that optimise operations, enhance profitability and provide scalability.
iCargo will power Turkish airline’s air cargo movement worldwide and replace the legacy system.
Single Unit
This compares well with an average of three per cent growth for the other European airlines. Under the deal, the airline sales/inventory, terminal operations/handling, ULD (unit load devices) management and revenue accounting systems will be integrated into single solution.
This single suite will improve access to real-time information and actionable intelligence for users at all levels across locations.
Over 20 global airlines have opted for iCargo to manage their mission critical cargo logistics.
Leading Clients
They include All Nippon Airways, British Airways, Qantas, South African Airways, Lufthansa Cargo and Nippon Cargo Airlines.
iCargo will replace the TACTIC system holding the mainframe substructure in use for last 20 years, said Temel Kotil, President and Chief Executive Officer, Turkish Airlines.
Coming close on the heels of the Lufthansa deal, this is another significant step for IBS, said Sankalp Saxena.
The deal was announced in Istanbul, said Sankalp Saxena, President and Head, Aviation operations services, IBS Software.
iCargo is the flagship product of IBS for the air cargo operations.
iCargo supports requirements of airline freight business providing Web-enabled features that optimise operations, enhance profitability and provide scalability.
iCargo will power Turkish airline’s air cargo movement worldwide and replace the legacy system.
Single Unit
This compares well with an average of three per cent growth for the other European airlines. Under the deal, the airline sales/inventory, terminal operations/handling, ULD (unit load devices) management and revenue accounting systems will be integrated into single solution.
This single suite will improve access to real-time information and actionable intelligence for users at all levels across locations.
Over 20 global airlines have opted for iCargo to manage their mission critical cargo logistics.
Leading Clients
They include All Nippon Airways, British Airways, Qantas, South African Airways, Lufthansa Cargo and Nippon Cargo Airlines.
iCargo will replace the TACTIC system holding the mainframe substructure in use for last 20 years, said Temel Kotil, President and Chief Executive Officer, Turkish Airlines.
Coming close on the heels of the Lufthansa deal, this is another significant step for IBS, said Sankalp Saxena.
India's inflation may fall to 6.2-6.6% in March
New Delhi: Inflation is expected to fall in the range of 6.2 to 6.6 per cent in March this year, helped by moderation in non-food manufacturing sector and global commodity prices, according to the Economic Survey 2012-13 released Wednesday.
The core inflation based on the whole price index (WPI) has remained muted in the current financial year and declined to a three year low of 6.62 per cent in January 2013.
"The recent increase in onion prices in January 2012 and revision in diesel prices may put some pressure on headline inflation. However, inflation is expected to continue the moderating trend," said the annual document presented in Parliament by finance minister P Chidambaram.
Addressing a press conference after the release of the annual Economic Survey, chief economic advisor to finance ministry Raghuram Rajan said high food inflation remain a worry for the policymakers.
Unlike last year when the food price inflation was mainly driven by higher protein food items, this year the pressure has been mounting in cereals.
The survey authored by Rajan points out that inflation has eased in almost all major advanced and emerging market economies in the current year.
"The positive effect of continuous policy easing by the major advanced and developing countries could pose a higher risk to inflation expectations. However, in the short run, given weak growth sentiments, the impact of policy easing may not lead to a surge in inflation and inflation expectations may remain anchored around current target inflation rates," the survey said.
As per the World Bank, except for metals, most global commodity prices are expected to decline further in 2013 and 2014.
"The impact of benign inflationary expectations internationally will have a moderating impact on domestic prices," it said.
The core inflation based on the whole price index (WPI) has remained muted in the current financial year and declined to a three year low of 6.62 per cent in January 2013.
"The recent increase in onion prices in January 2012 and revision in diesel prices may put some pressure on headline inflation. However, inflation is expected to continue the moderating trend," said the annual document presented in Parliament by finance minister P Chidambaram.
Addressing a press conference after the release of the annual Economic Survey, chief economic advisor to finance ministry Raghuram Rajan said high food inflation remain a worry for the policymakers.
Unlike last year when the food price inflation was mainly driven by higher protein food items, this year the pressure has been mounting in cereals.
The survey authored by Rajan points out that inflation has eased in almost all major advanced and emerging market economies in the current year.
"The positive effect of continuous policy easing by the major advanced and developing countries could pose a higher risk to inflation expectations. However, in the short run, given weak growth sentiments, the impact of policy easing may not lead to a surge in inflation and inflation expectations may remain anchored around current target inflation rates," the survey said.
As per the World Bank, except for metals, most global commodity prices are expected to decline further in 2013 and 2014.
"The impact of benign inflationary expectations internationally will have a moderating impact on domestic prices," it said.
India has highest increase in share of services in GDP at 8.1%
New Delhi: A comparison of the services performance of the top 15 countries for the 11 year period from 2001 to 2011 shows that the increase in share of services in GDP is the highest for India with 8.1 percentage points. These 15 top countries include major developed countries alongwith Brazil, Russia, India and China. While China’s highest services compound annual growth rate (CAGR) stood at 11.1%, India’s very high CAGR of 9.2% was second highest and also accompanied by highest change in its share. This is a reflection of the fact that India’s growth has been powered mainly by the services sector.
India’s services sector has emerged as a prominent sector in terms of its contribution to national and state incomes, trade flows, FDI inflows and employment. For more than a decade the sector has been pulling up the growth of Indian economy with great stability. The share of services in India’s GDP at factor cost (at current prices) increased from 33.3% (1950-1951) to 56.5% in 2012-13, as per advance estimates. Including construction, this would increase to 64.8%. With 18%, trade, hotels and restaurants are the largest contributors to GDP among the various sub sectors. This is followed by financing, insurance, real estate and business services with 16.6% share. Community, social, and personal services with 14% share stand in the third place. This is followed by construction at fourth place with 8.2% share.
In 2011-12, although the growth of “trade” sub-sector decelerated to 6.5%, its share improved to 16.6%. The share of the sub-sector “transport by other means” was 5.4%, while its growth was 8.6%. Banking and insurance was the most dynamic sector in 2011-12 with growth of 13.2%. “Other services” had a share of 7.9% in 2010-11 and 2011-12. It grew at 6.5% in 2011-12.
India’s services sector has emerged as a prominent sector in terms of its contribution to national and state incomes, trade flows, FDI inflows and employment. For more than a decade the sector has been pulling up the growth of Indian economy with great stability. The share of services in India’s GDP at factor cost (at current prices) increased from 33.3% (1950-1951) to 56.5% in 2012-13, as per advance estimates. Including construction, this would increase to 64.8%. With 18%, trade, hotels and restaurants are the largest contributors to GDP among the various sub sectors. This is followed by financing, insurance, real estate and business services with 16.6% share. Community, social, and personal services with 14% share stand in the third place. This is followed by construction at fourth place with 8.2% share.
In 2011-12, although the growth of “trade” sub-sector decelerated to 6.5%, its share improved to 16.6%. The share of the sub-sector “transport by other means” was 5.4%, while its growth was 8.6%. Banking and insurance was the most dynamic sector in 2011-12 with growth of 13.2%. “Other services” had a share of 7.9% in 2010-11 and 2011-12. It grew at 6.5% in 2011-12.
Wednesday, February 27, 2013
Small and medium Japanese auto-component makers to explore investments in TN
Chennai: After a wave of large Japanese automotive companies, a bunch of small auto component makers from the country are set to make their way into Tamil Nadu.
A delegation of Japanese auto component companies is in Tamil Nadu to explore investment opportunities and scout for partnerships with Indian auto component makers.
The delegation, consisting Medium and Small Enterprises (MSMEs), include 46 companies from the auto component sector and five from other sectors like rubber.
Tamil Nadu houses over 300 Japanese companies and these Tier-1 companies would need support from Tier-2 component makers and other MSME suppliers, so the delegation of MSME companies is here to explore opportunities.
"The objective is to promote networking amongst existing companies and new companies that are proposing to set up shop in Tamil Nadu. There are here to get a better understanding regarding the investment ecosystem in the state," said Souichi Yoshimura, executive vice-president, Japan External Trade Organisation (JETRO).
"MSMEs might not be able to manage investment and might need support from Indian companies, so they might need partnerships with Indian companies," he said.
JETRO will be providing support to the members of the delegation by collating information required by the MSMEs, he said. The MSMEs, for instance, would require information on procurement procedures of the larger companies based on which they could decide their working here, he said.
A delegation of Japanese auto component companies is in Tamil Nadu to explore investment opportunities and scout for partnerships with Indian auto component makers.
The delegation, consisting Medium and Small Enterprises (MSMEs), include 46 companies from the auto component sector and five from other sectors like rubber.
Tamil Nadu houses over 300 Japanese companies and these Tier-1 companies would need support from Tier-2 component makers and other MSME suppliers, so the delegation of MSME companies is here to explore opportunities.
"The objective is to promote networking amongst existing companies and new companies that are proposing to set up shop in Tamil Nadu. There are here to get a better understanding regarding the investment ecosystem in the state," said Souichi Yoshimura, executive vice-president, Japan External Trade Organisation (JETRO).
"MSMEs might not be able to manage investment and might need support from Indian companies, so they might need partnerships with Indian companies," he said.
JETRO will be providing support to the members of the delegation by collating information required by the MSMEs, he said. The MSMEs, for instance, would require information on procurement procedures of the larger companies based on which they could decide their working here, he said.
NTPC signs MoU with CREDA for geothermal project
New Delhi: National Thermal Power Corporation Limited (NTPC) has signed a Memorandum of Understanding (MoU) with Chhattisgarh Renewable Energy Development Agency (CREDA) to explore the potential of geothermal resources and subsequently implement geothermal project at Tatapani in Chhattisgarh.
The MoU was signed by Shri Ajit Kumar, Executive Director (Business Development), NTPC and Shri Shailendra Kumar Shukla, Director, CREDA in the presence of Shri Aman Singh, Secretary (Energy), Government of Chhattisgarh, Shri S. N. Ganguly, Regional Executive Director, NTPC and other dignitaries.
Tattapani Geothermal field is located approximately 100 kms northeast of Ambikapur in Surguja district of Chhattisgarh and is considered to be one of the most promising site in India for developing geothermal based power project.
Geothermal generation is the harnessing of the geothermal energy or the vast reservoir of heat energy stored in the earth's interior for generating power.
The MoU was signed by Shri Ajit Kumar, Executive Director (Business Development), NTPC and Shri Shailendra Kumar Shukla, Director, CREDA in the presence of Shri Aman Singh, Secretary (Energy), Government of Chhattisgarh, Shri S. N. Ganguly, Regional Executive Director, NTPC and other dignitaries.
Tattapani Geothermal field is located approximately 100 kms northeast of Ambikapur in Surguja district of Chhattisgarh and is considered to be one of the most promising site in India for developing geothermal based power project.
Geothermal generation is the harnessing of the geothermal energy or the vast reservoir of heat energy stored in the earth's interior for generating power.
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