New Delhi: Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on March 6, 2013, the Government has approved six (6) Proposals of Foreign Direct Investment (FDI) amounting toRs.732.77 crore approximately.
Details of Proposals considered in the Foreign Investment Promotion Board (FIPB) Meeting held on 06.03.2013:
Following Six (6) proposals have been approved.
Sl. No. Name of the applicant Particulars of the proposal FDI/NRI inflows(` In crore)
ECONOMIC AFFAIRS (CM DIVISION)
1 M/s SIDBI Social Venture Trust, Mumbai To allot Class A units of the Fund to bring foreign investment. 285.00
ROAD TRANSPORT & HIGHWAYS
2 M/s Navayuga Road Projects Pvt. Ltd., Hyderabad To act as an investing company and to make downstream investments in its Special Purpose Companies. 357.60
CIVIL AVIATION
3 M/s AirAsia Investment Ltd., Malaysia To set up a JV company to undertake the business of operation of scheduled passenger airlines. 80.98
4 M/s Farnair Switzerland A.G., Switzerland To increase FDI in an Air Transport Business Company by purchase of shares from Indian shareholder. 1.35
PHARMACEUTICALS
5 M/s AET Laboratories Pvt. Ltd., Hyderabad Induction of additional foreign equity in a pharmaceutical company. 5.34
DEFENCE PRODUCTION
6 M/s Bharat Electronics Limited, Bangalore To set up a JV company to carry out the business of Design, Development, marketing, supply and support of civilian and select defence Radars for Indian and global markets. 2.5
2. The following Seven (7) proposals have been deferred:
Sl. No Name of the applicant Particulars of the proposal
1 M/s ICICI Venture Funds Management Company Ltd., Mumbai To bring fund from a foreign limited liability company FVCI for making investment in the units of a Trust for making investments in Portfolio companies in India.
2 M/s P5 Asia Holding Investments (Mauritius) Limited, Mauritius NR to NR transfer of shares to carry out the business of (a) Broadcasting a non- news and current affairs television channel namely “StarCJ alive” Channel; (b) wholesale cash and carry trading of products; and (c) creation of home shopping content for broadcast through any and all mediums, including the channel, all within India.
3 M/s Premier Medical Corporation Limited, Mumbai Induction of foreign equity in a pharmaceutical company.
4 M/s Fullife Healthcare Pvt. Ltd., Mumbai Induction of foreign equity in a pharmaceutical company to carry out the business of in-licensing, developing, getting products manufactured from third party and out-licensing the marketing rights of unique healthcare solution in the field of food supplements, non-critical diagnostics and pharma products.
5 M/s Barefoot Resorts & Leisure India Pvt. Ltd., Chennai Post facto approval for issuance of partly paid up shares to carry out the business of leisure tourist resorts both on wholesome basis and on time share basis.
6 M/s Highdell Investment Ltd., Mauritius Induction of foreign equity in an investment holding company.
7 M/s BF Elbit Advanced Systems Pvt. Ltd., Pune To set up a new JV company to be engaged in design, development, manufacturing of defence related products.
3. The following one (1) proposal has been rejected:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Prithvi Information Solutions Ltd., Andhra Pradesh Issue of warrants to carry out the business of end-to-end solutions in information technology, RF engineering and knowledge service apart from providing consulting and staff augmentation.
4. The following one (1) proposal has been recommended to advise the applicant to approach the Reserve Bank of India (RBI).
Sl. No Name of the applicant Particulars of the proposal
1 M/s Copper Beech Infrastructure Pvt. Ltd., New Delhi Request for deletion of compounding condition. The company is engaged in the business of setting up of Educational Infrastructure.
5. The following one (1) proposal has been advised that FIPB approval is not required:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Artura Pharmaceuticals Pvt. Ltd., Chennai Post facto approval for issuance of shares in a pharmaceutical company.
6. The following one (1) proposal has been advised to access automatic route.
Sl. No Name of the applicant Particulars of the proposal
1 M/s Woory Automotives India Pvt. Ltd., Chennai An operating cum investing company to make downstream investment.
7. The following Two (2) proposals have been withdrawn from the Agenda:
Sl. No Name of the applicant
1 M/s NA Pali Europe SARL
2 Mrs. Jayalakshmi Jagannathan
8. Decision in the following six (6) proposals will be communicated separately:
Sl. No Name of the applicant Particulars of the proposal
1 M/s Yes Bank Limited, Mumbai To increase foreign equity participation through a qualified institutional placement (QIP) of Equity shares to eligible NRs and/or issue of GDRs to FIIs.
2 M/s Brampton Pvt. Ltd. Clarification regarding limit on percentage of shareholding to be held either by Indian partner or foreign partner for forming the joint venture company.
3 M/s Indian Energy Exchange Limited, Mumbai Post facto approval for the issue of compulsory convertible preference shares and equity shares to foreign investors. The company is engaged in the business of exchange of electricity.
4 M/s Sunij Pharma Pvt. Ltd., Ahmedabd Induction of additional foreign equity in a pharmaceutical company.
5 M/s WCP Holdings III, Mauritius Acquisition of shares of an Indian stock exchange (NSE) from an existing financial institution shareholder.
6 M/s Scripbox.com India Pvt. Ltd., Bangalore Indian company acting as facilitator of investments into mutual funds (other financial Services not mentioned in the FDI policy) proposes to receive foreign investment.
Success in my Habit
Thursday, March 28, 2013
India to be Third Largest Aviation Market by 2020
New Delhi: Speaking at a function in the capital on the occasion of Aviation Day, the Minister for Civil Aviation, Shri Ajit Singh said that, India would be the third largest aviation market by 2020. Addressing senior representatives of the aviation industry, Shri Ajit Singh informed that studies suggest, the countries airports would be handling 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion by 2020.
The Minister reminded the gathering that recently he took a decision to liberalize the process for airlines to aquire aircrafts by doing away with the Aircraft Acquisition Committee. He added that the Government has also taken steps to liberalize and grant traffic rights to Indian carriers to fly to new destinations around the globe .
Following is the entire text of the Minister’s speech----
“Smt. Sheila Dixit, Chief Minister of Delhi, Mr. Tony Tyler, DG of International Air Transport Association (IATA), Mr. S.Bomiddala, Chairman of GMR Airports, Shri Hari Bhartia, former President CII, Shri Chandrajit Banerjee, DG, CII, representatives of industry, members of media, friends, ladies and gentlemen.
I am delighted to be here amongst this august gathering, the confluence of best minds in aviation industry from across India and abroad and welcome you all on the occasion of ‘Aviation Day’.
It is really heartening to see that the first-off “Aviation Day” in India is being organized with the focus on economic benefits that aviation brings to the Indian economy. I am told that the most important branches of the Aviation value chain which are critically linked and interdependent including the airline industry, the airports and manufacturing, engineering and service industry through the CII are jointly organizing today’s session. I hope this realization of interdependencies among airlines, airport and the industry will also reflect in a growing shared agenda among the three; and reflect the growing areas of synergies between key players from the industry, to work towards the development of the aviation sector in India. To quote Henry Ford, “Coming together is a beginning; keeping together is progress; working together is success.” I congratulate the organizers for bringing you all together on the “Aviation Day”, a new beginning which I am sure will progress into success.
As we know, aviation sector brings enormous benefits to communities and economies around the globe. It is a key enabler of economic growth, social development and tourism providing connectivity and access to markets globally.Air transport currently supports 56.6 million jobs and over US$2.2 trillion of Global GDP.
India is among the countries witnessing highest growth in air passenger traffic. Its airport infrastructure is undergoing modernisation with the installation of state-of-the-art facilities. New Greenfield airports are under construction and security, surveillance and air traffic navigation systems have been modernized. India, a growing Asian economy, is amongst the fastest growing and currently the 9th largest aviation market handling 121 million domestic and 41 million international passengers. Today, more than 85 international airlines operate to India and 5 Indian carriers connect over 40 countries.
The studies suggest that by the year 2020, India is likely to become the 3rd largest aviation market handling 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion. Indian Aviation Industry has been instrumental in the overall economic development of the country. I am told that Oxford Economics report commissioned by IATA indicates that Aviation accounts for 1.5% of India’s GDP and supports 1.7 million jobs – with a further 7.1 million employed in other sectors including tourism through the catalytic effects of aviation.
The prospects and possibilities of growth of Indian aviation markets are huge.The gap between potential and current air travel penetration shows that India is presently at 0.04 air trips per capita per annum which is far behind developed countries like US and Australia (more than 2 air trips per capita per annum), China and Brazil (0.3 air trips per capita per annum). The Low ratio of per capita air trips in India suggests a huge potential for the air traffic growth considering a relatively higher trajectory of economic growth in the country coupled with necessary Government support.
“The journey of a thousand miles begins with small steps.”We have taken number of initiatives to create an enabling environment for rapid growth of civil aviation sector in India. The single most important policy decision which may transform the civil aviation sector in India has been, to allow 49% FDI by the foreign carriers in domestic airlines. The ceiling of 49% is quite high as compared to other foreign countries where on an average it is kept as 26%. This also shows the Government’s firm commitment towards reforms in this sector. I am happy to know that some Indian carriers have already started exploring the possibilities of foreign collaboration which will boost civil aviation not only in India but in other parts of the world.
You are all aware, that the cost of ATF constitutes the major component of the cost of operations of airlines in India. One of the important reasons of higher cost of ATF in India is the added burden of sales tax levied by the State Governments. To reduce this burden, the Government has decided to allow direct import of ATF by Indian carriers. I am told that all major Indian airlines are exploring the possibilities of importing ATF. There are initial difficulties in putting the whole system in place for import of ATF in terms of sharing of on-site and off-site infrastructure for transport of ATF. We are in discussion with the Petroleum & Natural Gas Ministry in this regard to bring ATF notified under PNGRB Act. Besides, I am also trying to persuade various State Governments to bring down the rate of sales-tax on ATF.
Recently, we have taken an important decision to liberalise the acquisition of aircraft by the scheduled, non-scheduled airlines, flying institutes and for private use. At present prior permission from the Ministry of Civil Aviation is required before the acquisition of aircraft by them through Aircraft Acquisition Committee. Henceforth, no permission for acquisition of aircraft will be required from the Ministry of Civil Aviation and they will be free to acquire aircrafts as per their business plan and requirements. I am sure, this policy decision will give impetus to the growth and expansion of airlines in India.
To give a big boost to international air travel, the Government has taken substantial steps to liberalize and grant traffic rights to Indian carriers to fly to several new destinations across the globe. In order to ensure better advance planning on the part of airlines, the Ministry of Civil Aviation as a long term plan has already allocated the traffic rights to Indian carriers for next two years i.e. Summer-2013 and Winter-2013. The new traffic rights have opened up several new international sectors and increased the overall traffic entitlements of the airlines by approximately 60% over the existing traffic rights. Only in Gulf and South East Asian countries, there is an enhancement of approximately 81,000 seats per week in the entitlement of Indian carriers which is about 80% more than their present entitlements. Now with liberalised aircraft acquisition policy, I hope our airlines will be able to utilize all these bilateral rights bringing enormous benefits to the Indian public.
Another area which has given wings to the growth of Indian civil aviation is the privatization of four major airports under JV/PPP model and the policy of development of Greenfield airports which envisages synergy between the public and private sector. Keeping pace with the Government policy, the Airports Authority of India has also completed the expansion and upgradation of two metro airports at Kolkata and Chennai and has undertaken the development of 35 selected non-metro airports. The Government would like the AAI to run these airports including metro airports at Kolkata and Chennai by engaging professional airport operators on the management contract through a global competitive bidding process. Further accelerating the modernization and development process, Indian Government envisages an investment of US$ 12.1 billion at Indian airports under the 12th Five-Year Plan, of which a contribution of about US$ 9.3 billion is expected from the private sector.
The Government has also unleashed the potential of development around airports by simplifying the building regulations. Henceforth no prior permission will be required for construction activities around airports if the builder constructs the building within the permissible height limits which will be marked by AAI on coloured maps.
Despite rapid growth of civil aviation in India, the benefits of air transport have not reached the smaller cities and remote and difficult areas of the country. To make the growth in this sector equitable and inclusive, my top priority is to provide connectivity to these areas. Apart from the development of low-frill airports and modification of Route Dispersal Guidelines,the Government is in the process of formulation of a policy for promotion of regional and remote area connectivity in India incentivising the Indian carriers to operate on these routes including code sharing and seat credit mechanism.
While the aviation sector has undergone an exponential increase in traffic and aircraft movements, we have found that the safety regulatory apparatus has not kept pace with the requirements of the sector. The Directorate General of Civil Aviation (DGCA) has found itself constrained functionally and administratively to respond to the growing requirements of business. The Government is in the process of introducing a bill in Parliament which will enable replacing the existing DGCA with a more autonomous Civil Aviation Authority. The CAA will be a self-funding entity and shall have financial and operational autonomy.
India has the potential to be an MRO hub due to the growing aircraft fleet, location advantage and availability of technical manpower. To facilitate the growth of MRO Business and to make it competitive, the Government of India has recently announced several concessions in budget for 2013-14 which include extension of time period allowed for utilisation of aircraft parts and equipments from three months to one year, exemption of custom duty on parts, equipments, accessories, spares required for MRO purposes to private category aircraft also and inclusion of foreign airlines for the purpose of duty-free imports of parts etc. as applicable for scheduled air transport services. I am told these concessions have been widely welcomed by the industry.
The Government has recently cleared Flexi Use of Airspace by civil and military users. Implementation of FUA through civil and military coordination is an essential requirement to foster the air travel growth with ultimate benefit to our economy. I expect that there will be a reduction of carbon emission by about 7 million kg. per annum by direct routing between 7 major city pairs only because of FUA.
I am aware that airline industry in India is undergoing a very challenging period because of high cost structure coupled with global economic slowdown. I am sure, various initiatives the Civil Aviation Ministry has taken, will have a positive impact on the growth and competitiveness of the airlines in India. There are still number of policy issues which have drawn my attention and we are in process of taking decisions on these issues to further the process of reforms. Technology upgradation in the field of air navigation is one of the most important areas for the overall efficiency and safety of entire Indian civil aviation industry. The creation of ANS Corporation from the existing AAI is one of the top most priorities of the Government so as to boost the pace of modernisation and upgradation of technology in the field of air navigation.
The development work of Navi Mumbai airport may not likely begin as envisaged. To ease the pressure on the existing Mumbai airport, Government has taken an initiative to develop Juhu airport which will augment the capacity of existing Mumbai airport. KPMG has already submitted a report in this regard and I have also discussed it with the Chief Minister of Maharashtra during my recent visit to Mumbai.
We also need to take all measures to facilitate operations by the airlines to bring efficiency and competitiveness in their operations. Hence, there is need to streamline and liberalise various procedures in DGCA in view of the development of modern technology and the changed civil aviation requirements without compromising safety and security of air travel. I have asked the DGCA to explore the possibilities in this regard.
I am extremely pleased to be a part of ‘Aviation Day’ function where the key-players of the industry including airline industry have gathered to jointly work towards the development of civil aviation sector in India. I am sure that the collective knowledge, wisdom and experience which all of you have brought here together will be of great help in improving and strengthening the civil aviation sector in India. Let me assure you all that the Government is committed for a liberal and enabling policy environment to provide safe, secure and affordable air services with world class aviation infrastructure in the coming years.
I would welcome new innovative suggestions in this regard.“A mind is like a parachute, it doesn’t work if it is not open.” Give us ideas and suggestions with open mind. I assure that my Ministry will also consider them with open mind. Once again, I extend my best wishes for the success of not just this Aviation Day, but also every single day where Aviation continues to play an important and critical role in our lives.
The Minister reminded the gathering that recently he took a decision to liberalize the process for airlines to aquire aircrafts by doing away with the Aircraft Acquisition Committee. He added that the Government has also taken steps to liberalize and grant traffic rights to Indian carriers to fly to new destinations around the globe .
Following is the entire text of the Minister’s speech----
“Smt. Sheila Dixit, Chief Minister of Delhi, Mr. Tony Tyler, DG of International Air Transport Association (IATA), Mr. S.Bomiddala, Chairman of GMR Airports, Shri Hari Bhartia, former President CII, Shri Chandrajit Banerjee, DG, CII, representatives of industry, members of media, friends, ladies and gentlemen.
I am delighted to be here amongst this august gathering, the confluence of best minds in aviation industry from across India and abroad and welcome you all on the occasion of ‘Aviation Day’.
It is really heartening to see that the first-off “Aviation Day” in India is being organized with the focus on economic benefits that aviation brings to the Indian economy. I am told that the most important branches of the Aviation value chain which are critically linked and interdependent including the airline industry, the airports and manufacturing, engineering and service industry through the CII are jointly organizing today’s session. I hope this realization of interdependencies among airlines, airport and the industry will also reflect in a growing shared agenda among the three; and reflect the growing areas of synergies between key players from the industry, to work towards the development of the aviation sector in India. To quote Henry Ford, “Coming together is a beginning; keeping together is progress; working together is success.” I congratulate the organizers for bringing you all together on the “Aviation Day”, a new beginning which I am sure will progress into success.
As we know, aviation sector brings enormous benefits to communities and economies around the globe. It is a key enabler of economic growth, social development and tourism providing connectivity and access to markets globally.Air transport currently supports 56.6 million jobs and over US$2.2 trillion of Global GDP.
India is among the countries witnessing highest growth in air passenger traffic. Its airport infrastructure is undergoing modernisation with the installation of state-of-the-art facilities. New Greenfield airports are under construction and security, surveillance and air traffic navigation systems have been modernized. India, a growing Asian economy, is amongst the fastest growing and currently the 9th largest aviation market handling 121 million domestic and 41 million international passengers. Today, more than 85 international airlines operate to India and 5 Indian carriers connect over 40 countries.
The studies suggest that by the year 2020, India is likely to become the 3rd largest aviation market handling 336 million domestic and 85 million international passengers with projected investment to the tune of US$ 120 billion. Indian Aviation Industry has been instrumental in the overall economic development of the country. I am told that Oxford Economics report commissioned by IATA indicates that Aviation accounts for 1.5% of India’s GDP and supports 1.7 million jobs – with a further 7.1 million employed in other sectors including tourism through the catalytic effects of aviation.
The prospects and possibilities of growth of Indian aviation markets are huge.The gap between potential and current air travel penetration shows that India is presently at 0.04 air trips per capita per annum which is far behind developed countries like US and Australia (more than 2 air trips per capita per annum), China and Brazil (0.3 air trips per capita per annum). The Low ratio of per capita air trips in India suggests a huge potential for the air traffic growth considering a relatively higher trajectory of economic growth in the country coupled with necessary Government support.
“The journey of a thousand miles begins with small steps.”We have taken number of initiatives to create an enabling environment for rapid growth of civil aviation sector in India. The single most important policy decision which may transform the civil aviation sector in India has been, to allow 49% FDI by the foreign carriers in domestic airlines. The ceiling of 49% is quite high as compared to other foreign countries where on an average it is kept as 26%. This also shows the Government’s firm commitment towards reforms in this sector. I am happy to know that some Indian carriers have already started exploring the possibilities of foreign collaboration which will boost civil aviation not only in India but in other parts of the world.
You are all aware, that the cost of ATF constitutes the major component of the cost of operations of airlines in India. One of the important reasons of higher cost of ATF in India is the added burden of sales tax levied by the State Governments. To reduce this burden, the Government has decided to allow direct import of ATF by Indian carriers. I am told that all major Indian airlines are exploring the possibilities of importing ATF. There are initial difficulties in putting the whole system in place for import of ATF in terms of sharing of on-site and off-site infrastructure for transport of ATF. We are in discussion with the Petroleum & Natural Gas Ministry in this regard to bring ATF notified under PNGRB Act. Besides, I am also trying to persuade various State Governments to bring down the rate of sales-tax on ATF.
Recently, we have taken an important decision to liberalise the acquisition of aircraft by the scheduled, non-scheduled airlines, flying institutes and for private use. At present prior permission from the Ministry of Civil Aviation is required before the acquisition of aircraft by them through Aircraft Acquisition Committee. Henceforth, no permission for acquisition of aircraft will be required from the Ministry of Civil Aviation and they will be free to acquire aircrafts as per their business plan and requirements. I am sure, this policy decision will give impetus to the growth and expansion of airlines in India.
To give a big boost to international air travel, the Government has taken substantial steps to liberalize and grant traffic rights to Indian carriers to fly to several new destinations across the globe. In order to ensure better advance planning on the part of airlines, the Ministry of Civil Aviation as a long term plan has already allocated the traffic rights to Indian carriers for next two years i.e. Summer-2013 and Winter-2013. The new traffic rights have opened up several new international sectors and increased the overall traffic entitlements of the airlines by approximately 60% over the existing traffic rights. Only in Gulf and South East Asian countries, there is an enhancement of approximately 81,000 seats per week in the entitlement of Indian carriers which is about 80% more than their present entitlements. Now with liberalised aircraft acquisition policy, I hope our airlines will be able to utilize all these bilateral rights bringing enormous benefits to the Indian public.
Another area which has given wings to the growth of Indian civil aviation is the privatization of four major airports under JV/PPP model and the policy of development of Greenfield airports which envisages synergy between the public and private sector. Keeping pace with the Government policy, the Airports Authority of India has also completed the expansion and upgradation of two metro airports at Kolkata and Chennai and has undertaken the development of 35 selected non-metro airports. The Government would like the AAI to run these airports including metro airports at Kolkata and Chennai by engaging professional airport operators on the management contract through a global competitive bidding process. Further accelerating the modernization and development process, Indian Government envisages an investment of US$ 12.1 billion at Indian airports under the 12th Five-Year Plan, of which a contribution of about US$ 9.3 billion is expected from the private sector.
The Government has also unleashed the potential of development around airports by simplifying the building regulations. Henceforth no prior permission will be required for construction activities around airports if the builder constructs the building within the permissible height limits which will be marked by AAI on coloured maps.
Despite rapid growth of civil aviation in India, the benefits of air transport have not reached the smaller cities and remote and difficult areas of the country. To make the growth in this sector equitable and inclusive, my top priority is to provide connectivity to these areas. Apart from the development of low-frill airports and modification of Route Dispersal Guidelines,the Government is in the process of formulation of a policy for promotion of regional and remote area connectivity in India incentivising the Indian carriers to operate on these routes including code sharing and seat credit mechanism.
While the aviation sector has undergone an exponential increase in traffic and aircraft movements, we have found that the safety regulatory apparatus has not kept pace with the requirements of the sector. The Directorate General of Civil Aviation (DGCA) has found itself constrained functionally and administratively to respond to the growing requirements of business. The Government is in the process of introducing a bill in Parliament which will enable replacing the existing DGCA with a more autonomous Civil Aviation Authority. The CAA will be a self-funding entity and shall have financial and operational autonomy.
India has the potential to be an MRO hub due to the growing aircraft fleet, location advantage and availability of technical manpower. To facilitate the growth of MRO Business and to make it competitive, the Government of India has recently announced several concessions in budget for 2013-14 which include extension of time period allowed for utilisation of aircraft parts and equipments from three months to one year, exemption of custom duty on parts, equipments, accessories, spares required for MRO purposes to private category aircraft also and inclusion of foreign airlines for the purpose of duty-free imports of parts etc. as applicable for scheduled air transport services. I am told these concessions have been widely welcomed by the industry.
The Government has recently cleared Flexi Use of Airspace by civil and military users. Implementation of FUA through civil and military coordination is an essential requirement to foster the air travel growth with ultimate benefit to our economy. I expect that there will be a reduction of carbon emission by about 7 million kg. per annum by direct routing between 7 major city pairs only because of FUA.
I am aware that airline industry in India is undergoing a very challenging period because of high cost structure coupled with global economic slowdown. I am sure, various initiatives the Civil Aviation Ministry has taken, will have a positive impact on the growth and competitiveness of the airlines in India. There are still number of policy issues which have drawn my attention and we are in process of taking decisions on these issues to further the process of reforms. Technology upgradation in the field of air navigation is one of the most important areas for the overall efficiency and safety of entire Indian civil aviation industry. The creation of ANS Corporation from the existing AAI is one of the top most priorities of the Government so as to boost the pace of modernisation and upgradation of technology in the field of air navigation.
The development work of Navi Mumbai airport may not likely begin as envisaged. To ease the pressure on the existing Mumbai airport, Government has taken an initiative to develop Juhu airport which will augment the capacity of existing Mumbai airport. KPMG has already submitted a report in this regard and I have also discussed it with the Chief Minister of Maharashtra during my recent visit to Mumbai.
We also need to take all measures to facilitate operations by the airlines to bring efficiency and competitiveness in their operations. Hence, there is need to streamline and liberalise various procedures in DGCA in view of the development of modern technology and the changed civil aviation requirements without compromising safety and security of air travel. I have asked the DGCA to explore the possibilities in this regard.
I am extremely pleased to be a part of ‘Aviation Day’ function where the key-players of the industry including airline industry have gathered to jointly work towards the development of civil aviation sector in India. I am sure that the collective knowledge, wisdom and experience which all of you have brought here together will be of great help in improving and strengthening the civil aviation sector in India. Let me assure you all that the Government is committed for a liberal and enabling policy environment to provide safe, secure and affordable air services with world class aviation infrastructure in the coming years.
I would welcome new innovative suggestions in this regard.“A mind is like a parachute, it doesn’t work if it is not open.” Give us ideas and suggestions with open mind. I assure that my Ministry will also consider them with open mind. Once again, I extend my best wishes for the success of not just this Aviation Day, but also every single day where Aviation continues to play an important and critical role in our lives.
Wednesday, March 27, 2013
Tata Power commissions fifth unit of Mundra project
Ahmedabad: With Tata Power Company Ltd completing commercial operation of the fifth and last unit of 800 MW at Mundra in Gujarat, India’s first, greenest, 4,000 MW UMPP has become fully commercial.
Tata Power, India’s largest integrated power utility, which developed the project through its wholly-owned subsidiary Coastal Gujarat Power Ltd (CGPL), announced on Monday the commissioning of the fifth unit. With this, the entire UMPP has become commercially operational, according to a statement here.
The Mundra UMPP is the first of the UMPPs in India that heralds the entry of 800 MW supercritical boiler technology in India, which is environment friendly and efficient. The total power generation capacity of Tata Power currently stands at 8,500 MW, reinforcing its position as the largest integrated power company in India.
Tata Power’s Mundra UMPP has been completed in a record time of one year from the date of commissioning of the first 800 MW unit in March 2012.
The average gap taken between synchronisation of two units has been 3.5 months which is better than the baseline schedule of four months and is much better than the five months provided in original PPA, said Anil Sardana, Managing Director.
The technology used for the 4,000-MW Mundra UMPP and the choice of unit sizes will help save fuel.
Tata Power, India’s largest integrated power utility, which developed the project through its wholly-owned subsidiary Coastal Gujarat Power Ltd (CGPL), announced on Monday the commissioning of the fifth unit. With this, the entire UMPP has become commercially operational, according to a statement here.
The Mundra UMPP is the first of the UMPPs in India that heralds the entry of 800 MW supercritical boiler technology in India, which is environment friendly and efficient. The total power generation capacity of Tata Power currently stands at 8,500 MW, reinforcing its position as the largest integrated power company in India.
Tata Power’s Mundra UMPP has been completed in a record time of one year from the date of commissioning of the first 800 MW unit in March 2012.
The average gap taken between synchronisation of two units has been 3.5 months which is better than the baseline schedule of four months and is much better than the five months provided in original PPA, said Anil Sardana, Managing Director.
The technology used for the 4,000-MW Mundra UMPP and the choice of unit sizes will help save fuel.
Agri & processed food export to set record
Mumbai: Agricultural and processed food exports from India are likely to set a record this financial year, despite unfavourable global economic sentiment.
These exports had already surpassed last year’s annual figure in the first 10 months of the current financial year, witnessing a strong demand for India’s ready-to-eat and raw food products from foreign markets. Data compiled by the Agricultural and Processed Food Products Export Development Authority (Apeda) showed India’s agri and processed foods exports shot up 63 per cent to set a record at Rs 101,504 crore in the first 10 months of 2012-13, as compared to Rs 62,244 crore in the corresponding period of last year.
“Overall exports of agri and processed foods might surpass Rs 125,000 crore by the end of this financial year,” said a senior Apeda official.
Cereals constituted a little over 40 per cent of India’s overall shipment in this sector. Commodities such as dried and preserved vegetables, mango pulp and pulses also recorded a sharp jump.
Dietmar Eiden, vice-president (trade fair management) at Koelnmesse GmbH, the organiser of the world’s largest food and beverage exhibition, the Anuga International Fair, said: “An unfavourable global economic climate is unlikely to hurt consumer demand for food and agri products. That’s the reason we have got overwhelming response from Indian food and agri exporters, who have already set their foothold in European countries and want to strengthen their presence.”
The commerce ministry took initiatives to promote India’s agri and processed food products in European countries in recent years, boosting India’s significance in Anuga events. Exports of these products haven’t been hit by the unfavourable global economic sentiment. As a result, these exports has risen ten-fold in four years, from Rs 11,178 crore in 2009-10.
In Europe, Germany continues to remain a major destination for rice products, coffee, dried and preserved vegetables and poultry products. America is a major importer of India’s cereal preparations, guar gum, cocoa products, natural honey and milled products. Asian countries are also major export destinations for a number of agri products.
These exports had already surpassed last year’s annual figure in the first 10 months of the current financial year, witnessing a strong demand for India’s ready-to-eat and raw food products from foreign markets. Data compiled by the Agricultural and Processed Food Products Export Development Authority (Apeda) showed India’s agri and processed foods exports shot up 63 per cent to set a record at Rs 101,504 crore in the first 10 months of 2012-13, as compared to Rs 62,244 crore in the corresponding period of last year.
“Overall exports of agri and processed foods might surpass Rs 125,000 crore by the end of this financial year,” said a senior Apeda official.
Cereals constituted a little over 40 per cent of India’s overall shipment in this sector. Commodities such as dried and preserved vegetables, mango pulp and pulses also recorded a sharp jump.
Dietmar Eiden, vice-president (trade fair management) at Koelnmesse GmbH, the organiser of the world’s largest food and beverage exhibition, the Anuga International Fair, said: “An unfavourable global economic climate is unlikely to hurt consumer demand for food and agri products. That’s the reason we have got overwhelming response from Indian food and agri exporters, who have already set their foothold in European countries and want to strengthen their presence.”
The commerce ministry took initiatives to promote India’s agri and processed food products in European countries in recent years, boosting India’s significance in Anuga events. Exports of these products haven’t been hit by the unfavourable global economic sentiment. As a result, these exports has risen ten-fold in four years, from Rs 11,178 crore in 2009-10.
In Europe, Germany continues to remain a major destination for rice products, coffee, dried and preserved vegetables and poultry products. America is a major importer of India’s cereal preparations, guar gum, cocoa products, natural honey and milled products. Asian countries are also major export destinations for a number of agri products.
CARE launches ‘fundamental grading’ of SMEs
New Delhi: Credit Analysis & Research Limited (CARE Ratings) has launched a new product called "SME fundamental grading", which, it said will aid investors in taking informed investment decisions based on the fundamentals of small and medium enterprises (SMEs). It will also assist SMEs to differentiate themselves from others, thereby facilitating the raising of funds.
With the introduction of SME platforms on the stock exchanges - BSE SME Exchange and NSE Emerge - SMEs are now able to raise equity capital by listing on these platforms. With this development, it was important to classify entities with better business fundamentals for taking a long-term investment view, the agency said. This product is expected to fill this gap, it said.
SME fundamental grading will be an independent and professional opinion on the fundamentals of a SME. It will be a relative assessment in relation to other Indian SMEs, involving an in-depth assessment of various quantitative and qualitative parameters of the entity.
Quantitative parameters include growth prospects of the industry, financial strength and operating performance of the entity. Qualitative parameters primarily include management capability, an evaluation of the promoters, accounting policies and corporate governance practices.
CARE will grade the SMEs' fundamentals on a five-point scale, from fundamental grade 5/5 (the highest grade, indicating 'strong fundamentals') to the lowest score, fundamental grade 1/5 (indicating 'weak fundamentals'). A score of 4/5 will indicate very good fundamentals; 3/5 will indicate good fundamentals, and 2/5 will indicate modest fundamentals.
The first two companies to be rated on the new scale are Ashapura Intimate Fashions Limited (AIFL) and Sarda Energy & Minerals Ltd (SEML).
With the introduction of SME platforms on the stock exchanges - BSE SME Exchange and NSE Emerge - SMEs are now able to raise equity capital by listing on these platforms. With this development, it was important to classify entities with better business fundamentals for taking a long-term investment view, the agency said. This product is expected to fill this gap, it said.
SME fundamental grading will be an independent and professional opinion on the fundamentals of a SME. It will be a relative assessment in relation to other Indian SMEs, involving an in-depth assessment of various quantitative and qualitative parameters of the entity.
Quantitative parameters include growth prospects of the industry, financial strength and operating performance of the entity. Qualitative parameters primarily include management capability, an evaluation of the promoters, accounting policies and corporate governance practices.
CARE will grade the SMEs' fundamentals on a five-point scale, from fundamental grade 5/5 (the highest grade, indicating 'strong fundamentals') to the lowest score, fundamental grade 1/5 (indicating 'weak fundamentals'). A score of 4/5 will indicate very good fundamentals; 3/5 will indicate good fundamentals, and 2/5 will indicate modest fundamentals.
The first two companies to be rated on the new scale are Ashapura Intimate Fashions Limited (AIFL) and Sarda Energy & Minerals Ltd (SEML).
Mobile value-added services market will touch $9.5 b in 2 years
New Delhi: Wipro Technologies and the Internet and Mobile Association of India (IAMAI) in a joint research report said the mobile value-added services (MVAS) market will reach $9.5 billion in 2015, from $4.9 billion in 2012.
The report — Future Thought of Business: MVAS — predicts that the Indian MVAS market will grow at a compounded annual growth rate of 25 per cent between 2012 and 2015.
It said there are opportunities for different participants in the Indian MVAS market, including domestic mobile operators, which could focus on providing better network and connectivity, and global operators that can increase their base by testing new VAS offerings in the Indian market.
Also, content and VAS technology providers can focus on developing personalised content based on consumer experience, and original equipment manufacturers that can innovate with low-cost smartphones and mobile devices to drive penetration, the report said.
Largest contributor
“India’s consumers will increasingly purchase enriched and transformational education, health, finance and entertainment services,” Ayan Mukerji, Senior Vice-President, Global Head - Media and Telecom, Wipro Technologies, said.
The research found that mEntertainment is the largest contributor to operators’ MVAS revenues and provides key opportunities in localised vernacular content, on-demand music and video content and live TV shows and events.
On the other hand, mEducation can play a key role in expanding the reach and quality of education in India through interactive English language learning services, competitive examination preparation solutions, tutor-on-call and vocational training.
mHealth has the potential to improve healthcare access and affordability in India, especially through remote diagnostics, chronic disease management and maternal care, it said.
Mobile phones will also play a key role in extending financial services to 40 per cent of India’s population who are unbanked.
mFinance through mobile wallet services, mobile remittance services and business correspondence model-based services will contribute to MVAS revenues, it said.
“By forging mutually agreeable partnerships, we can improve customisation and localisation of content and create services with a compelling consumer value proposition,” Subho Ray, President, IAMAI, said.
The research involved over 450 consumers and providers of MVAS in India to identify the major drivers and barriers of the Indian MVAS market.
The report — Future Thought of Business: MVAS — predicts that the Indian MVAS market will grow at a compounded annual growth rate of 25 per cent between 2012 and 2015.
It said there are opportunities for different participants in the Indian MVAS market, including domestic mobile operators, which could focus on providing better network and connectivity, and global operators that can increase their base by testing new VAS offerings in the Indian market.
Also, content and VAS technology providers can focus on developing personalised content based on consumer experience, and original equipment manufacturers that can innovate with low-cost smartphones and mobile devices to drive penetration, the report said.
Largest contributor
“India’s consumers will increasingly purchase enriched and transformational education, health, finance and entertainment services,” Ayan Mukerji, Senior Vice-President, Global Head - Media and Telecom, Wipro Technologies, said.
The research found that mEntertainment is the largest contributor to operators’ MVAS revenues and provides key opportunities in localised vernacular content, on-demand music and video content and live TV shows and events.
On the other hand, mEducation can play a key role in expanding the reach and quality of education in India through interactive English language learning services, competitive examination preparation solutions, tutor-on-call and vocational training.
mHealth has the potential to improve healthcare access and affordability in India, especially through remote diagnostics, chronic disease management and maternal care, it said.
Mobile phones will also play a key role in extending financial services to 40 per cent of India’s population who are unbanked.
mFinance through mobile wallet services, mobile remittance services and business correspondence model-based services will contribute to MVAS revenues, it said.
“By forging mutually agreeable partnerships, we can improve customisation and localisation of content and create services with a compelling consumer value proposition,” Subho Ray, President, IAMAI, said.
The research involved over 450 consumers and providers of MVAS in India to identify the major drivers and barriers of the Indian MVAS market.
India among top 20 global real estate investment markets: Cushman & Wakefield
Mumbai: According to Cushman & Wakefield's latest report International Investment Atlas, the global property investment market recorded a modest 6% rise in activity during 2012 with volumes reaching US$929bn (714bn).
In what was a difficult year in most markets, investment volumes rallied in Q4 signaling the beginning of real momentum and a return of confidence in the market which could see volumes this year increase 14% to exceed US$1 trillion mark (815bn) for the first time since 2007.
India was (20th) among the top 20 real estate investment markets globally with investment volume of INR 190 billion (USD 3466 million) recorded in 2012. Majority of the investment in India were through institutional sales (67%) while remaining were through private equity (PE) investments (33%). The market witnessed institutional sales (excluding apartments) of INR 128 billion, concentrated in commercial development sites and office segment including stand-alone and pre-leased office buildings. However the investments in institutional sales saw a decline of 37 % over last year. On the other hand private equity investment in India increased by 7% in 2012 and was noted at INR 62.0 billion.
In terms of value, majority of the Private Equity in Real Estate (PERE) investments were noted in ready income generating / operational office assets at INR 32.3 billion saw an increase of 34% over 2011. Under construction residential projects continued to witness the highest number (25) of PERE deals in 2012 and witnessed private equity investments at INR 28.5 billion.
Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, "Investment in ready income generating / operational office assets have gained strength over the last few years due to lower risk and steady cash flows associated with this type of investment. With increase in number of high value transactions in this sector, the market is moving towards a mature phase."
China remained the largest global investment market overall thanks to the surge in land sales seen in late 2012. Nevertheless, the US began to close the gap at 2nd position followed by the UK in 3rd place.
statement over last year , South Asia, Cushman & Wakefield, Source: Cushman & Wakefield, RCA, KTI and Property Data: Deals over US$5mn including land
In 2012, China and the USA were two key engines of the strong finish - the former benefitting from a record high in land right sales and the latter seeing a rush of activity to beat year-end capital gains tax hikes. However growth was far from limited to these two global heavyweights and a range of other markets in all regions saw a final quarter rally notably Spain, Poland, Norway, Switzerland, India Indonesia, Thailand, India and Australia.
India City Performance in PERE market
Bengaluru witnessed the highest number and value of private equity investments at INR 32.5 billion in 2012, recording more than double of investment over last year, followed by Mumbai with INR 13 billion and NCR with INR 7 billion of investments. However, Mumbai witnessed a marginal decline of 2% while NCR witnessed a decline of 44% in total value of investments compared to 2011.
Sanjay Dutt added, "Bangalore witnessed some high value investments in pre-leased office asset which has led it to be the top runner in the PERE market. However NCR and Mumbai continue to be preferred locations for investments due to the opportunity they offer. NCR market in 2012 saw lower number of investments, as it is an active residential sales market, which obviated the need for PE funding in many projects."
Announced PE Deals Volume - INR billion
City 2011 2012
Bengaluru 16.1 32.5
Mumbai 13.2 13
NCR 12.6 7
Others 15.9 9.6
Total 57.8 62.0Source: Cushman & Wakefield Research
Asia Pacific - investment activity to rise 15-20% in 2013
Improved macroeconomic conditions with sustainable growth across the region will boost activity and performance resulting in 15-20% increase in investment activity forecast. Investment demand will increase as faith grows in China's soft landing but demand will also broaden and other markets such as Australia and Japan will be an increasing target for overseas investors while markets such as India and Indonesia are likely to be on the rise.
In what was a difficult year in most markets, investment volumes rallied in Q4 signaling the beginning of real momentum and a return of confidence in the market which could see volumes this year increase 14% to exceed US$1 trillion mark (815bn) for the first time since 2007.
India was (20th) among the top 20 real estate investment markets globally with investment volume of INR 190 billion (USD 3466 million) recorded in 2012. Majority of the investment in India were through institutional sales (67%) while remaining were through private equity (PE) investments (33%). The market witnessed institutional sales (excluding apartments) of INR 128 billion, concentrated in commercial development sites and office segment including stand-alone and pre-leased office buildings. However the investments in institutional sales saw a decline of 37 % over last year. On the other hand private equity investment in India increased by 7% in 2012 and was noted at INR 62.0 billion.
In terms of value, majority of the Private Equity in Real Estate (PERE) investments were noted in ready income generating / operational office assets at INR 32.3 billion saw an increase of 34% over 2011. Under construction residential projects continued to witness the highest number (25) of PERE deals in 2012 and witnessed private equity investments at INR 28.5 billion.
Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, "Investment in ready income generating / operational office assets have gained strength over the last few years due to lower risk and steady cash flows associated with this type of investment. With increase in number of high value transactions in this sector, the market is moving towards a mature phase."
China remained the largest global investment market overall thanks to the surge in land sales seen in late 2012. Nevertheless, the US began to close the gap at 2nd position followed by the UK in 3rd place.
statement over last year , South Asia, Cushman & Wakefield, Source: Cushman & Wakefield, RCA, KTI and Property Data: Deals over US$5mn including land
In 2012, China and the USA were two key engines of the strong finish - the former benefitting from a record high in land right sales and the latter seeing a rush of activity to beat year-end capital gains tax hikes. However growth was far from limited to these two global heavyweights and a range of other markets in all regions saw a final quarter rally notably Spain, Poland, Norway, Switzerland, India Indonesia, Thailand, India and Australia.
India City Performance in PERE market
Bengaluru witnessed the highest number and value of private equity investments at INR 32.5 billion in 2012, recording more than double of investment over last year, followed by Mumbai with INR 13 billion and NCR with INR 7 billion of investments. However, Mumbai witnessed a marginal decline of 2% while NCR witnessed a decline of 44% in total value of investments compared to 2011.
Sanjay Dutt added, "Bangalore witnessed some high value investments in pre-leased office asset which has led it to be the top runner in the PERE market. However NCR and Mumbai continue to be preferred locations for investments due to the opportunity they offer. NCR market in 2012 saw lower number of investments, as it is an active residential sales market, which obviated the need for PE funding in many projects."
Announced PE Deals Volume - INR billion
City 2011 2012
Bengaluru 16.1 32.5
Mumbai 13.2 13
NCR 12.6 7
Others 15.9 9.6
Total 57.8 62.0Source: Cushman & Wakefield Research
Asia Pacific - investment activity to rise 15-20% in 2013
Improved macroeconomic conditions with sustainable growth across the region will boost activity and performance resulting in 15-20% increase in investment activity forecast. Investment demand will increase as faith grows in China's soft landing but demand will also broaden and other markets such as Australia and Japan will be an increasing target for overseas investors while markets such as India and Indonesia are likely to be on the rise.
Tuesday, March 26, 2013
Costa Coffee to add 200 stores in India by 2015
Chennai: Costa Coffee, the coffee shop chain brand under the UK-based multinational hotel, coffee shop and restaurant company Whitbread, is looking at expanding its presence in India with another 200 outlets within 2015, which would require an investment of around Rs 200 crore. The company, which claims as the world's second largest coffee chain,is planning to add around 1,000 outlets across the country by 2015-16, according to company officials.
The company has already set up 100 coffee shops in various parts of the country through its master franchisee, Devyani International Ltd (DIL), a part of Rs 3000 crore RJ Corp.
"In the last two years, we have been growing faster, with expanding presence in overseas market (outside UK)," said Andy Marshall, managing director EMEI, Whitbread.
"We have 2,500 outlets as of now and our plans are to expand it to 3,500 outlets in the financial year 2015-16 in 28 countries. We see a great potential for the business in India," he added.
The master franchisee, Devyani International, which is also franchisee for PizzaHut and KFC in select regions in the country, said that it would focus on the major cities for expansion in the next two years and would look at the tier II markets for expansion after the two years.
Each Costa Coffee outlet would require an investment of around Rs 80 lakh to Rs 1 crore and in this proportion, DIL is expecting an investment of Rs 200 crore into the expansion in next two years.
"We dont believe in bringing in more franchisees into the business and all the new stores would be opened by us only. We will fund it through debt and equity," said Virag Joshi, president and CEO, DIL. He was speaking to the reporters during the inauguration of the second coffee shop in Chennai.
At present the coffee shop has presence in Delhi,Mumbai, Pune, Jaipur, Chennai and Bangalore. There are plans to open more shops in the South Indian major cities, Chennai and Bangalore, in near future, added Joshi.
The store opened in Chennai would serve over 25 varieties of hot and cold coffee and flavoured drinks along with a range of snacks and food items. The company has made supply chain arrangements with TajSats catering firm, added the company officials.
The UK-based Costa Coffee currently has a sales of One Billion Pound Sterling and plans are to double it in next four to five years through various plans including aggressive expansion overseas, added Marshall.
The company has already set up 100 coffee shops in various parts of the country through its master franchisee, Devyani International Ltd (DIL), a part of Rs 3000 crore RJ Corp.
"In the last two years, we have been growing faster, with expanding presence in overseas market (outside UK)," said Andy Marshall, managing director EMEI, Whitbread.
"We have 2,500 outlets as of now and our plans are to expand it to 3,500 outlets in the financial year 2015-16 in 28 countries. We see a great potential for the business in India," he added.
The master franchisee, Devyani International, which is also franchisee for PizzaHut and KFC in select regions in the country, said that it would focus on the major cities for expansion in the next two years and would look at the tier II markets for expansion after the two years.
Each Costa Coffee outlet would require an investment of around Rs 80 lakh to Rs 1 crore and in this proportion, DIL is expecting an investment of Rs 200 crore into the expansion in next two years.
"We dont believe in bringing in more franchisees into the business and all the new stores would be opened by us only. We will fund it through debt and equity," said Virag Joshi, president and CEO, DIL. He was speaking to the reporters during the inauguration of the second coffee shop in Chennai.
At present the coffee shop has presence in Delhi,Mumbai, Pune, Jaipur, Chennai and Bangalore. There are plans to open more shops in the South Indian major cities, Chennai and Bangalore, in near future, added Joshi.
The store opened in Chennai would serve over 25 varieties of hot and cold coffee and flavoured drinks along with a range of snacks and food items. The company has made supply chain arrangements with TajSats catering firm, added the company officials.
The UK-based Costa Coffee currently has a sales of One Billion Pound Sterling and plans are to double it in next four to five years through various plans including aggressive expansion overseas, added Marshall.
Cairn India to invest $2 b in Rajasthan in two years
Barmer: Cairn India, a Vedanta Group Company, on Saturday said it would invest $2 billion in the next two years to develop its Barmer block in Rajasthan.
“In the next couple of years, we are looking at around $2 billion investment. In the next five years, we are looking to drill at least 500 wells a year. The resource base allows production of 300,000 barrels per day ,” said P. Elango, member of the board, Cairn India.
Cairn India, promoted by London-based billionaire Anil Agarwal, said the exit production rate for 2013-14 is expected to be 200,000-215,000 bpd. The block is jointly held by Cairn India, which has 70 per cent stake, and public sector explorer ONGC, which holds the remaining 30 per cent.
In the long-run, output from Barmer may go up to 500,000 bpd and to drill that much oil, nearly Rs 10,000 crore of investments may be poured in, said Anil Agarwal, Executive Chairman, Vedanta Resources.
Gas and crude sales
Cairn India and ONGC on Saturday also announced the commercial sale of natural gas. They said production has started from the Aishwariya field .
“Initial commercial volumes will be about 5 mmscf per day,” Cairn said in a statement. Elango said the Government would nominate buyers for natural gas from the Barmer block.
Veeraapa Moily, Petroleum Minister, said gas would be sold at $5/mBtu.
The block produces about 30 mmscf of gas a day from the Raageshwari deep gas field and the Mangala and Bhagyam fields. The gas produced along with crude oil is used to fire its 48 MW captive power station at its Mangala processing terminal.
At its peak, Aishwariya is expected to add 10,000 barrels of oil per day (bpd) to the current output of 175,000 barrels from the Mangala, Saraswati and Bhagyam fields in the block.
Oil output from the Rajasthan block contributes over 20 per cent to the nation’s oil production. India meets close to 80 per cent of its crude oil requirement through imports.
The block has contributed Rs 19,000 crore (cumulative) to the exchequer in the form of royalty and levies. The field, since it began production in August 2009, has replaced imports of about Rs 50,000 crore.
“Everyday, Cairn India pays a royalty of Rs 15 crore to Rajasthan,” Elango said.
Infrastructure
Elango said the explorer is in talks with the Government of Rajasthan to develop gas infrastructure in the State. “We have formally submitted our expression of interest. The State has a joint venture with GAIL. The new gas can push the project,” he added.
“In the next couple of years, we are looking at around $2 billion investment. In the next five years, we are looking to drill at least 500 wells a year. The resource base allows production of 300,000 barrels per day ,” said P. Elango, member of the board, Cairn India.
Cairn India, promoted by London-based billionaire Anil Agarwal, said the exit production rate for 2013-14 is expected to be 200,000-215,000 bpd. The block is jointly held by Cairn India, which has 70 per cent stake, and public sector explorer ONGC, which holds the remaining 30 per cent.
In the long-run, output from Barmer may go up to 500,000 bpd and to drill that much oil, nearly Rs 10,000 crore of investments may be poured in, said Anil Agarwal, Executive Chairman, Vedanta Resources.
Gas and crude sales
Cairn India and ONGC on Saturday also announced the commercial sale of natural gas. They said production has started from the Aishwariya field .
“Initial commercial volumes will be about 5 mmscf per day,” Cairn said in a statement. Elango said the Government would nominate buyers for natural gas from the Barmer block.
Veeraapa Moily, Petroleum Minister, said gas would be sold at $5/mBtu.
The block produces about 30 mmscf of gas a day from the Raageshwari deep gas field and the Mangala and Bhagyam fields. The gas produced along with crude oil is used to fire its 48 MW captive power station at its Mangala processing terminal.
At its peak, Aishwariya is expected to add 10,000 barrels of oil per day (bpd) to the current output of 175,000 barrels from the Mangala, Saraswati and Bhagyam fields in the block.
Oil output from the Rajasthan block contributes over 20 per cent to the nation’s oil production. India meets close to 80 per cent of its crude oil requirement through imports.
The block has contributed Rs 19,000 crore (cumulative) to the exchequer in the form of royalty and levies. The field, since it began production in August 2009, has replaced imports of about Rs 50,000 crore.
“Everyday, Cairn India pays a royalty of Rs 15 crore to Rajasthan,” Elango said.
Infrastructure
Elango said the explorer is in talks with the Government of Rajasthan to develop gas infrastructure in the State. “We have formally submitted our expression of interest. The State has a joint venture with GAIL. The new gas can push the project,” he added.
Government issues norms for setting up manufacturing zones
New Delhi: The government has issued norms for setting up of manufacturing zones under the national manufacturing policy, giving them many benefits, including tax sops.
Units located in the National Investment & Manufacturing Zones (NIMZs) will be exempt from capital gains tax on sale of plant and machinery, the guidelines issued by the Department of Industrial Policy and Promotion said on Friday.
NIMZs will be eligible for Viability Gap Funding, support from the government to make projects commercially viable, of up to 20% of the project cost.
The national manufacturing policy seeks to enhance the share of manufacturing in GDP to 25% from the current about 14% within a decade and in the process create 100 million jobs in this period.
To achieve these goals, the policy will largely rely on NIMZs, which are envisaged as integrated industrial townships of at least 50 sq km (5,000 hectares) with state-of- the-art infrastructure. A minimum of 30% of the total land area of NIMZs will be available to manufacturing units.
The capital gains tax exemption will be available only if the proceeds are re-invested within a period of three years for purchase of new plant and machinery in any other unit located in the same NIMZ or another NIMZ, the guidelines said. NIMZs will also be allowed to raise funds through external commercial borrowing for developing the internal infrastructure of the NIMZs. The government will also explore the possibility of soft loans from multilateral institutions for funding infrastructure development in NIMZ.
Units located in the National Investment & Manufacturing Zones (NIMZs) will be exempt from capital gains tax on sale of plant and machinery, the guidelines issued by the Department of Industrial Policy and Promotion said on Friday.
NIMZs will be eligible for Viability Gap Funding, support from the government to make projects commercially viable, of up to 20% of the project cost.
The national manufacturing policy seeks to enhance the share of manufacturing in GDP to 25% from the current about 14% within a decade and in the process create 100 million jobs in this period.
To achieve these goals, the policy will largely rely on NIMZs, which are envisaged as integrated industrial townships of at least 50 sq km (5,000 hectares) with state-of- the-art infrastructure. A minimum of 30% of the total land area of NIMZs will be available to manufacturing units.
The capital gains tax exemption will be available only if the proceeds are re-invested within a period of three years for purchase of new plant and machinery in any other unit located in the same NIMZ or another NIMZ, the guidelines said. NIMZs will also be allowed to raise funds through external commercial borrowing for developing the internal infrastructure of the NIMZs. The government will also explore the possibility of soft loans from multilateral institutions for funding infrastructure development in NIMZ.
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