Mumbai: India’s asset management companies (AMCs) have seen a rise of 19.5 per cent in their average assets under management (AUM) in FY13. After dipping to less than Rs 7 lakh crore in the previous financial year, the sector has made a smart comeback —thanks to the high inflows in the debt funds and gains in the stock indices.
Interestingly, majority of the top 10 players have outperformed the industry's growth with a wide margin. For instance, Birla Sun Life Mutual Fund, ICICI Prudential MF, Kotak MF, IDFC MF and SBI MF, among others, registered a growth of between 25 and 40 per cent during the year. On the other hand, giants such as HDFC MF and Reliance MF managed to post a growth of 13 per cent and 21 per cent, respectively.
Srinivas Jain, chief marketing officer of SBI Mutual Fund, the sixth largest fund house with an average AUM of close to Rs 55,000 crore, says, “In FY13, we had good flows into our long-term fixed income funds and I believe that is true with the overall industry as well.” The fund house registered a whopping rise of 30.6 per cent in its AUM during the year.
According to the latest statistics available from industry body Association of Mutual Funds in India (Amfi), the sector’s average assets stood at Rs 8.16 lakh crore as on March 31, 2013, compared to Rs 6.64 lakh crore a year ago. Whereas in the quarter ended March 31, 2013, average assets grew a little less than a percentage point.
Reliance Mutual Fund, whose assets had dipped to below Rs 80,000 crore, came back strongly and inched close to its lost Rs 1-lakh crore mark with assets at Rs 94,580 crore.
Top officials at Reliance MF told Business Standard the fund house’s continued focus on retail has helped. “Our focus on non-liquid is helping us improve,” said an official.
According to Dhruva Chatterji, senior research analyst at Morningstar India, high flows in the intermediate to long-term bond funds in the debt category pushed up assets of the industry.
“Till February, our study shows there is a rise of 600 per cent in the assets of bond funds (year-on-year). Most of the assets inflows came in the second half of FY13 as expectations built up for rate cuts.”
Gilt funds, which invest primarily in government securities, attracted a consistent sum of Rs 1,000 crore for several months in the second half. “Of late, with a rise of one per cent point in short-term rates, we are also witnessing money flowing into the liquid funds with duration of three to six months,” added Chatterji.
According to experts, despite 11 months of net outflows from the equity segment during the year, rise in stock markets also helped push up the average assets of equity funds to a certain extent.
Success in my Habit
Friday, April 5, 2013
Thursday, April 4, 2013
Mukesh Ambani's 4G arm Reliance Jio inks Rs 1,200 crore pact with Anil Ambani's RCom
Mumbai: The Ambani brothers announced their first collaboration after splitting their father's business enterprise eight years ago, with Mukesh, the chairman of Reliance Industries, agreeing to use his younger sibling's optic fibre network to launch his mobile venture.
The first business collaboration since the billionaire brothers scrapped no-compete agreements, which prevented Mukesh from entering industries in which Anil was present, three years ago may eventually extend to other sectors such as power and entertainment, a number of analysts said.
As part of the deal announced on Tuesday, Reliance Jio Infocomm, the telecom arm of RIL, will get access to Reliance Communications' national and international optic fibre for an up-front payment of 1,200 crore. The amount will be paid to RCOM as soon as it readies the network for RIL's use.
More telecom infrastructure-sharing deals are in the works, according to the announcement to BSE. This may largely involve RIL's fourth-generation services riding on telecom towers owned by Reliance Communications, which is owned by Anil.
Stocks of companies belonging to Anil Ambani, which operate under the Reliance Group brand, all benefitted from the announcement. RCOM shares went up 11% at 63.30 apiece while Reliance Power, Reliance Mediaworks and Reliance Capital all went up between 4-5%.
"We believe the deal is a positive for Reliance Communications," according to JPMorgan Asia Pacific Equity Research.
However, it is a token positive at best in the absence of further co-operative steps. The onetime fee of Rs1,200 crore will not produce any change whatsoever in RCOM's net debt to EBITDA ratio (nominally changes from 5.6x to 5.5x).
The recurring cash flows/revenues will start to flow when Reliance Jio will launch 4G services, the time frame for which is yet to be disclosed. Hence, the revenue potential of this single deal is unlikely to move the needle for RCOM's financials (revenues, debt ratios among others)," JPMorgan Asia Pacific Equity Research said.
"Logically it would mean that RIL has chosen not to roll out but lease infrastructure because if it was building itself, the logical thing would be to have its own backbone," said Kamlesh Bhatia, principal analyst at research firm Gartner. However, an official at RIL said the company still plans to build some towers and lay some optic fibre of its own. RCOM will, as a matter of reciprocity, have access to that infrastructure, according to the joint statement.
A senior tower industry official, who asked not to be named, said RIL would largely share RCOM's towers following this announcement given that optic fibre is typically laid between towers and would not be connected to towers of other operators.
It is also a lengthy and daunting task to build more towers along an existing network, the official said. Talks of such a deal being struck have been doing the rounds since October 2010, shortly after RIL won its licence in the May 2010 auctions. ET had first reported concrete steps towards an agreement in November 2011, after which talks went cold.
In January this year, ET again reported revival of the talks. In the new round of negotiations, RIL pushed RCOM hard on pricing, a reading of the negotiations three analysts who asked not to be named agreed with. The indefinite sharing of optic fibre at Rs1 lakh per 1,000 km is probably the lowest ever, they said. Jio Infocomm's service launch has been long awaited as a potential disrupter in pricing of data service offerings.
However, RIL seems to have been dragging its feet so far, amid confusion and lack of clarity on the final rollout plan, according to industry officials. This deal is a first step in the direction of finalisation of concrete plans, said an RIL official.
The company has also tied up with Samsung, Huawei and ZTE for 4G radio equipment for its launch. However, the end devices using LTE 4G technology in the 2,300 MHz frequency are still few.
The first business collaboration since the billionaire brothers scrapped no-compete agreements, which prevented Mukesh from entering industries in which Anil was present, three years ago may eventually extend to other sectors such as power and entertainment, a number of analysts said.
As part of the deal announced on Tuesday, Reliance Jio Infocomm, the telecom arm of RIL, will get access to Reliance Communications' national and international optic fibre for an up-front payment of 1,200 crore. The amount will be paid to RCOM as soon as it readies the network for RIL's use.
More telecom infrastructure-sharing deals are in the works, according to the announcement to BSE. This may largely involve RIL's fourth-generation services riding on telecom towers owned by Reliance Communications, which is owned by Anil.
Stocks of companies belonging to Anil Ambani, which operate under the Reliance Group brand, all benefitted from the announcement. RCOM shares went up 11% at 63.30 apiece while Reliance Power, Reliance Mediaworks and Reliance Capital all went up between 4-5%.
"We believe the deal is a positive for Reliance Communications," according to JPMorgan Asia Pacific Equity Research.
However, it is a token positive at best in the absence of further co-operative steps. The onetime fee of Rs1,200 crore will not produce any change whatsoever in RCOM's net debt to EBITDA ratio (nominally changes from 5.6x to 5.5x).
The recurring cash flows/revenues will start to flow when Reliance Jio will launch 4G services, the time frame for which is yet to be disclosed. Hence, the revenue potential of this single deal is unlikely to move the needle for RCOM's financials (revenues, debt ratios among others)," JPMorgan Asia Pacific Equity Research said.
"Logically it would mean that RIL has chosen not to roll out but lease infrastructure because if it was building itself, the logical thing would be to have its own backbone," said Kamlesh Bhatia, principal analyst at research firm Gartner. However, an official at RIL said the company still plans to build some towers and lay some optic fibre of its own. RCOM will, as a matter of reciprocity, have access to that infrastructure, according to the joint statement.
A senior tower industry official, who asked not to be named, said RIL would largely share RCOM's towers following this announcement given that optic fibre is typically laid between towers and would not be connected to towers of other operators.
It is also a lengthy and daunting task to build more towers along an existing network, the official said. Talks of such a deal being struck have been doing the rounds since October 2010, shortly after RIL won its licence in the May 2010 auctions. ET had first reported concrete steps towards an agreement in November 2011, after which talks went cold.
In January this year, ET again reported revival of the talks. In the new round of negotiations, RIL pushed RCOM hard on pricing, a reading of the negotiations three analysts who asked not to be named agreed with. The indefinite sharing of optic fibre at Rs1 lakh per 1,000 km is probably the lowest ever, they said. Jio Infocomm's service launch has been long awaited as a potential disrupter in pricing of data service offerings.
However, RIL seems to have been dragging its feet so far, amid confusion and lack of clarity on the final rollout plan, according to industry officials. This deal is a first step in the direction of finalisation of concrete plans, said an RIL official.
The company has also tied up with Samsung, Huawei and ZTE for 4G radio equipment for its launch. However, the end devices using LTE 4G technology in the 2,300 MHz frequency are still few.
Infosys inks 5-year pact with European energy trading house
Bangalore: Infosys has signed a five-year agreement with RWE Supply and Trading (RWEST), a leading European energy trading house to provide technology services. In a statement, the software exporter said these technology services will be used power its trading platform systems. The deal is over five years and according to Infosys officials, it is based on ‘gain share’, which essentially means that Infosys gets revenues based on RWEST’s transactions on this platform. RWEST is based out of Essen in Germany and has trading floors in London and Swindon as well as trading floors of subsidiaries and affiliates in Den Bosch, Geneva, Singapore and New York. Also, Infosys will jointly invest in a framework to identify and implement business and technology projects that will create business efficiencies, drive growth from new markets and commodities and deliver measurable benefits, according to Infosys officials.
India MARS Mission promising for NASA-ISRO collaboration
Kolkata: Sunita Williams on Tuesday revived hopes on collaboration between National Aeronautics and Space Administration (NASA) and Indian Space Research Organisation (ISRO) in space exploration missions.
On her visit to Kolkata at the invitation of National Council of Science Museums, the Indian-American astronaut said that she would not only meet with students, but would like to show them the opportunities in space research and missions.
“People (scientists) from NASA and ISRO are talking together. I see that progressing,” Williams told reporters when asked about the two organisations’ plans to cooperate on Moon and Mars missions in future.
India’s Mars Mission, which is scheduled to be launched in November this year, might be promising for the space research organisations to work together.
On her visit to Kolkata at the invitation of National Council of Science Museums, the Indian-American astronaut said that she would not only meet with students, but would like to show them the opportunities in space research and missions.
“People (scientists) from NASA and ISRO are talking together. I see that progressing,” Williams told reporters when asked about the two organisations’ plans to cooperate on Moon and Mars missions in future.
India’s Mars Mission, which is scheduled to be launched in November this year, might be promising for the space research organisations to work together.
New norms for FII investments in govt, corporate bonds
New Delhi: The Finance Ministry has created two new sub-limits to enable foreign institutional investors (FIIs) park their funds in short-term papers of Government securities (G-secs) and corporate bonds.
In the G-sec bucket, where the overall FII investment limit is now pegged at $25 billion, the Finance Ministry has now carved out a sub-limit of $5.5 billion for foreign investment in short-term papers such as treasury bills.
Similarly, in the case of corporate bonds, a new sub-limit of $3.5 billion has been created for foreign investment in short-term papers such as commercial papers. This sub-limit has been carved out of the overall $51 billion limit for corporate bonds.
These sub-limits have been carved out based on the current holdings of such short-term instruments by FIIs and have been provided so that existing investments are not adversely affected.
The two sub-limits form part of the new investment policy for foreign investment in G-secs and corporate bonds.
Finance Minister P. Chidambaram announced the new policy on March 23 at the National Editors’ conference in the capital.
To encourage greater foreign investments in rupee-denominated debt instruments, the Government has simplified the framework of FII debt limits and also drawn a perspective plan for enhancement of these debt limits in the future. All the existing debt-limits have been merged into the two broad categories. The new approach has come into effect from April 1.
In the G-sec bucket, where the overall FII investment limit is now pegged at $25 billion, the Finance Ministry has now carved out a sub-limit of $5.5 billion for foreign investment in short-term papers such as treasury bills.
Similarly, in the case of corporate bonds, a new sub-limit of $3.5 billion has been created for foreign investment in short-term papers such as commercial papers. This sub-limit has been carved out of the overall $51 billion limit for corporate bonds.
These sub-limits have been carved out based on the current holdings of such short-term instruments by FIIs and have been provided so that existing investments are not adversely affected.
The two sub-limits form part of the new investment policy for foreign investment in G-secs and corporate bonds.
Finance Minister P. Chidambaram announced the new policy on March 23 at the National Editors’ conference in the capital.
To encourage greater foreign investments in rupee-denominated debt instruments, the Government has simplified the framework of FII debt limits and also drawn a perspective plan for enhancement of these debt limits in the future. All the existing debt-limits have been merged into the two broad categories. The new approach has come into effect from April 1.
Hero MotoCorp starts ops in Africa, LatAm
New Delhi: The country’s largest two-wheeler maker, Hero MotoCorp, on Monday said it had commenced operations in Africa, Latin and Central America.
Pawan Munjal, managing director & chief executive officer, Hero MotoCorp, said: “We have started despatches to our new international markets in Central and Latin America and Africa. Our first consignments of two-wheelers have already been shipped to Peru in Latin America, El Salvador, Guatemala and Honduras in Central America and to Burkina Faso and Ivory Coast in Africa.”
The company is set to despatch the first lot of two-wheelers to Kenya later this month.
It has already appointed new distributors and channel partners in these markets, where retail sales of the Hero two-wheelers is likely to commence in the first quarter of this financial year. Hero motorcycles to be sold in these markets include a mix of models from the 100cc and 125cc range.
Hero MotoCorp has earmarked Rs 1100 crore as capital expenditure for the current financial year. It includes an investment of about Rs 600 crore on the company’s upcoming fourth plant and global parts centre at Neemrana, and Rs 100-150 crore on a state-of-the-art integrated R&D centre at Kukas (near Jaipur in Rajasthan).
These initiatives are in line with Hero MotoCorp’s vision of reaching a total of 10-million unit volumes in a few years’ time, and garnering a million units — 10 per cent of that — from international business. The company currently registers around 2.5 per cent of its volumes from sales in overseas markets.
To meet this objective, the company has already short-listed as many as 30 countries across Latin America, Central America, Africa and South East Asia.
Colombia is the only country in Latin America where Hero MotoCorp currently exports to. The other international markets where Hero two-wheelers are sold include Sri Lanka, Bangladesh and Nepal.
Pawan Munjal, managing director & chief executive officer, Hero MotoCorp, said: “We have started despatches to our new international markets in Central and Latin America and Africa. Our first consignments of two-wheelers have already been shipped to Peru in Latin America, El Salvador, Guatemala and Honduras in Central America and to Burkina Faso and Ivory Coast in Africa.”
The company is set to despatch the first lot of two-wheelers to Kenya later this month.
It has already appointed new distributors and channel partners in these markets, where retail sales of the Hero two-wheelers is likely to commence in the first quarter of this financial year. Hero motorcycles to be sold in these markets include a mix of models from the 100cc and 125cc range.
Hero MotoCorp has earmarked Rs 1100 crore as capital expenditure for the current financial year. It includes an investment of about Rs 600 crore on the company’s upcoming fourth plant and global parts centre at Neemrana, and Rs 100-150 crore on a state-of-the-art integrated R&D centre at Kukas (near Jaipur in Rajasthan).
These initiatives are in line with Hero MotoCorp’s vision of reaching a total of 10-million unit volumes in a few years’ time, and garnering a million units — 10 per cent of that — from international business. The company currently registers around 2.5 per cent of its volumes from sales in overseas markets.
To meet this objective, the company has already short-listed as many as 30 countries across Latin America, Central America, Africa and South East Asia.
Colombia is the only country in Latin America where Hero MotoCorp currently exports to. The other international markets where Hero two-wheelers are sold include Sri Lanka, Bangladesh and Nepal.
Govt plans truck terminal, logistics hub in Nellore district
Hyderabad: The Andhra Pradesh Government is planning to set up a dedicated truck terminal and logistics hub in Nellore district as part of the logistics requirement in the Bangalore-Chennai-Krishnapatnam port freight corridor.
The project, which will be taken up by the AP Industrial Infrastructure Corporation, with financial assistance from the Centre, is likely to become operational within a year. The facility will come up at Venkatachalam with an estimated investment of about Rs 40 crore.
“This corridor is experiencing increased movement of trucks and container vehicles flowing in and out of the Krishnapatnam and other non-major ports on the Andhra Pradesh coast. There is a need for a truck terminal and logistics hub,” J. Geetha Reddy, AP Minister for Major Industries, told media persons here today.
Currently, cargo-laden trucks are parked haphazardly in this region. The proposed terminal, to be set up over 51 acres, will initially provide basic logistics services and later add other services related to export and import of cargoes.
Krishnapatnam port, which has five multi-purpose berths with a draft of about 15 mts, handles a little over 16 million tonnes, as against the phase-I installed capacity of 25 mt.
The three non-major ports on the AP coast, including Gangavaram and Kakinada ports, together handle a throughput of 40 mt. A bulk of these cargoes moves down south, passing through the Bangalore-Chennai-Krishnapatnam port freight corridor.
In addition to these ports, another two are coming up at Machilipatnam, with a proposed initial capacity of 20 mt and Nizampatnam (15 mt).
“The land for the project has been acquired. The complex will be processing 300 tonnes of hides and skin per day. The Centre has released Rs 15 crore as grant, while the State Government released Rs 10 crore to start off the project,” Geetha Reddy said.
The project, which will be taken up by the AP Industrial Infrastructure Corporation, with financial assistance from the Centre, is likely to become operational within a year. The facility will come up at Venkatachalam with an estimated investment of about Rs 40 crore.
“This corridor is experiencing increased movement of trucks and container vehicles flowing in and out of the Krishnapatnam and other non-major ports on the Andhra Pradesh coast. There is a need for a truck terminal and logistics hub,” J. Geetha Reddy, AP Minister for Major Industries, told media persons here today.
Currently, cargo-laden trucks are parked haphazardly in this region. The proposed terminal, to be set up over 51 acres, will initially provide basic logistics services and later add other services related to export and import of cargoes.
Krishnapatnam port, which has five multi-purpose berths with a draft of about 15 mts, handles a little over 16 million tonnes, as against the phase-I installed capacity of 25 mt.
The three non-major ports on the AP coast, including Gangavaram and Kakinada ports, together handle a throughput of 40 mt. A bulk of these cargoes moves down south, passing through the Bangalore-Chennai-Krishnapatnam port freight corridor.
In addition to these ports, another two are coming up at Machilipatnam, with a proposed initial capacity of 20 mt and Nizampatnam (15 mt).
“The land for the project has been acquired. The complex will be processing 300 tonnes of hides and skin per day. The Centre has released Rs 15 crore as grant, while the State Government released Rs 10 crore to start off the project,” Geetha Reddy said.
Gail India books LNG output facility in US for 20 years
New Delhi: Gail India, the country's biggest gas utility, has booked 2.3 million tonnes of liquefied natural gas (LNG) production capacity in the US, from where it hopes to bring the scarce resource to India, company executives said.
It has signed a deal with US energy firm Dominion for using capacity at its Cove Point terminal at Lusby in Maryland. "Dominion is marketing 4.6 million tonnes per annum and Gail has booked 50% of such capacity for 20 years," the company said in a statement. A major Japanese buyer holds the balance capacity in the terminal.
Construction of the terminal is expected to start in 2014 and the liquefaction facilities will be commissioned by 2017, it said.
Cove Point will be a premier facility in terms of direct access to the Marcellus and Utica shale plays, two of the most prolific shale gas basins in North America, Gail said.
Gail plans to import natural gas from America and this project will help it in importing LNG, a company executive said.
"Gail has a positive outlook on Henry Hub-indexed LNG exports from the US and that has prompted us to sign this terminal service agreement, which follows our deal with Cheniere signed in 2011. The contracts signed with Cheniere and Dominion make Gail one of the largest Henry Hub LNG portfolio holders and provide us an opportunity to market about 6 mmtpa of LNG from the US," Gail chairman & managing director BC Tripathi said.This agreement will help Gail to procure its own natural gas and deliver it to the Cove Point pipeline for liquefaction at the terminal. "This would enhance Gail's scale of operations in the US where we already have a presence through our participation in a shale gas asset in the Eagle Ford basin. Our upstream acquisition efforts for gas sourcing and hedging would now intensify in the US," Tripathi said.
"This deal would also provide Gail with an opportunity to trade part of the volume in the international market apart from organising the ships required to transport the rest of the volume to India," he said.
It has signed a deal with US energy firm Dominion for using capacity at its Cove Point terminal at Lusby in Maryland. "Dominion is marketing 4.6 million tonnes per annum and Gail has booked 50% of such capacity for 20 years," the company said in a statement. A major Japanese buyer holds the balance capacity in the terminal.
Construction of the terminal is expected to start in 2014 and the liquefaction facilities will be commissioned by 2017, it said.
Cove Point will be a premier facility in terms of direct access to the Marcellus and Utica shale plays, two of the most prolific shale gas basins in North America, Gail said.
Gail plans to import natural gas from America and this project will help it in importing LNG, a company executive said.
"Gail has a positive outlook on Henry Hub-indexed LNG exports from the US and that has prompted us to sign this terminal service agreement, which follows our deal with Cheniere signed in 2011. The contracts signed with Cheniere and Dominion make Gail one of the largest Henry Hub LNG portfolio holders and provide us an opportunity to market about 6 mmtpa of LNG from the US," Gail chairman & managing director BC Tripathi said.This agreement will help Gail to procure its own natural gas and deliver it to the Cove Point pipeline for liquefaction at the terminal. "This would enhance Gail's scale of operations in the US where we already have a presence through our participation in a shale gas asset in the Eagle Ford basin. Our upstream acquisition efforts for gas sourcing and hedging would now intensify in the US," Tripathi said.
"This deal would also provide Gail with an opportunity to trade part of the volume in the international market apart from organising the ships required to transport the rest of the volume to India," he said.
Indian Railways enter one billion tonne select club after exceeding revised freight loading target for the year 2012-13
China, Russia& USA are the Other Members of this Club
Railway Minister Congratulates Railwaymen for this Milestone Achievement
New Delhi: The Indian Railways achieved yet another significant milestone when it entered the one billion tonne select club in freight movement joining Chinese, Russian and USA railways. In 2012-13, Indian Railways have been able to achieve an originating freight loading of around 1010 million tonnes (i.e. one billion plus) which shows an incremental loading of 40 million tonnes (4.1% growth) over the last financial year.
Shri Pawan Kumar Bansal has congratulated Railwaymen for this achievement. In a message to them, he said it is really creditable to achieve this significant freight loading despite present economic scenario the world over. The Minister pointed out that Indian Railways will play the role of engine of growth for country’s economy.
The Railway Minister Shri Pawan Kumar Bansal had announced in his 2013-14 Rail Budget speech that Indian Railways is poised to enter the one billion tonne select club. Indian Railways did achieve this mile stone despite the present industrial growth in the country. The achievement is more than the revised target of 1007 million tonnes fixed for the year 2012-13.
It may be worthwhile to mention that the economic growth in the country has been sluggish in 2012-13 and it is estimated that the GDP growth would be in the range of 5%. The Index of Industrial Production (IIP) growth during the period April-December in 2012-13 has been 0.7%. The growth in the INDEX OF 8 CORE INFRASTRUCTURE INDUSTRIES has been 3.3% during April-December, 2012-13. Demand for Railway transportation services is a derived demand with a direct co-relation to the IIP growth in the country, especially the growth in the core infrastructure industries.
Under the freight loading strategy adopted by Indian Railways, special focus was given to enhancing evacuation of coal from Coal India Limited (CIL) sources and during the month of March’13, on an average 228 rakes/day were loaded from CIL sources. If the washed coal from coal sourced from CIL is included, on an average 247 rakes/day were loaded during March’13. Due to increased evacuation of coal by Railways, Coal India has been able to achieve an off-take of 465 million tonnes of coal, even though its production was only 452 million tonnes in 2012-13. There has been a draw down of 13 million tonnes of stocks with Coal India and its pithead stocks have reduced to 57.9 million tonnes as on 1st April 2013 as against 70.9 million tonnes as on 1st April 2012. Increased transportation of coal by Railways has facilitated building up of coal stocks with Thermal Power Houses in the country to 20 million tonnes as on 1st April 2013 as against 14.7 million tonnes as on 1st April 2012. Indian Railways also transported 39.29 million tonnes of foodgrains on Food Corporation of India’s account in 2012-13
Railway Minister Congratulates Railwaymen for this Milestone Achievement
New Delhi: The Indian Railways achieved yet another significant milestone when it entered the one billion tonne select club in freight movement joining Chinese, Russian and USA railways. In 2012-13, Indian Railways have been able to achieve an originating freight loading of around 1010 million tonnes (i.e. one billion plus) which shows an incremental loading of 40 million tonnes (4.1% growth) over the last financial year.
Shri Pawan Kumar Bansal has congratulated Railwaymen for this achievement. In a message to them, he said it is really creditable to achieve this significant freight loading despite present economic scenario the world over. The Minister pointed out that Indian Railways will play the role of engine of growth for country’s economy.
The Railway Minister Shri Pawan Kumar Bansal had announced in his 2013-14 Rail Budget speech that Indian Railways is poised to enter the one billion tonne select club. Indian Railways did achieve this mile stone despite the present industrial growth in the country. The achievement is more than the revised target of 1007 million tonnes fixed for the year 2012-13.
It may be worthwhile to mention that the economic growth in the country has been sluggish in 2012-13 and it is estimated that the GDP growth would be in the range of 5%. The Index of Industrial Production (IIP) growth during the period April-December in 2012-13 has been 0.7%. The growth in the INDEX OF 8 CORE INFRASTRUCTURE INDUSTRIES has been 3.3% during April-December, 2012-13. Demand for Railway transportation services is a derived demand with a direct co-relation to the IIP growth in the country, especially the growth in the core infrastructure industries.
Under the freight loading strategy adopted by Indian Railways, special focus was given to enhancing evacuation of coal from Coal India Limited (CIL) sources and during the month of March’13, on an average 228 rakes/day were loaded from CIL sources. If the washed coal from coal sourced from CIL is included, on an average 247 rakes/day were loaded during March’13. Due to increased evacuation of coal by Railways, Coal India has been able to achieve an off-take of 465 million tonnes of coal, even though its production was only 452 million tonnes in 2012-13. There has been a draw down of 13 million tonnes of stocks with Coal India and its pithead stocks have reduced to 57.9 million tonnes as on 1st April 2013 as against 70.9 million tonnes as on 1st April 2012. Increased transportation of coal by Railways has facilitated building up of coal stocks with Thermal Power Houses in the country to 20 million tonnes as on 1st April 2013 as against 14.7 million tonnes as on 1st April 2012. Indian Railways also transported 39.29 million tonnes of foodgrains on Food Corporation of India’s account in 2012-13
Singapore becoming favourable investment destination for Indian companies
New Delhi: Singapore is increasingly popular becoming a popular destination among Indian companies keen on globalising their businesses. “Singapore is seen (by Indian companies) as home away from home for their business growth on the international front because Asia is booming,” according to Mr Lee Eng Keat, International Director at Singapore’s Economic Development Board (EDB). So far, Indian companies have invested US$ 14.11 billion during 2008-09 and 2011-12 in Singapore, said Mr Keat.
Several IT companies will accompany the other Indian enterprises already operating out of the city state. In addition, an Indian pharmaceutical major plans to set up its regional office in Singapore this year. “This year we will be garnering more Indian IT investments into Singapore as well as potentially a pharmaceutical project as well,” said Mr Keat. However, the name of pharma company was not disclosed.
Mr Keat was confident that more and more bio-pharmaceutical and pharmaceutical companies would be locating their regional offices in Singapore.
The advance levels of medical, diseases and drug researches undertaken by Singapore-based institutes would support Indian pharma companies’ global market plans.
Singapore was inviting international corporations in the field of pharmaceuticals to set up operations and business here, Mr Keat added.
“We do feel that there are groups of companies in India that are looking into innovative drug developments and formulation capabilities and delivery mechanism,” said Mr Keat.
More than 4,500 Indian companies have set up operations in Singapore to globalise their businesses or trades, making it the largest business community in corporate Singapore, ahead of the Chinese, Malaysians and Indonesians.
Indian companies are looking at advantages of Singapore’s free trade agreements with China, Australia and Southeast Asia. These treaties will enable them to lower the tariff for their exports of goods into these markets. Singapore offers basic financing need to these companies.
Mr Keat observed India was looking to increase its trade with China, and pointed out that Singapore offered one of the most competitive foreign exchange options, including Renminbi/Yuan (RMB). Singapore has recently been acknowledged asthe second clearing centre for RMB.
China appointed the Industrial and Commercial Bank of China Singapore branch as the clearing bank for RMB in Singapore in February 2013.
Mr Keat highlighted options of Singapore’s other financial capabilities including convertible bonds, currency hedging and participation in the equity markets.
The top Indian companies operating out of Singapore, includes Tata Consultancy Services (TCS) and HCL Technologies as well as infrastructure group Punj Lloyd, highlighted Mr Keat.
“These companies see Singapore as a home for innovation. They are actually creating new solutions for their global clients,” he added.
These companies have also built their skilled manpower from the cosmopolitan workforce in Singapore and international operations, said Mr Keat.
TCS had recruited its top management from Singapore for setting up operations in China, he added.
Several IT companies will accompany the other Indian enterprises already operating out of the city state. In addition, an Indian pharmaceutical major plans to set up its regional office in Singapore this year. “This year we will be garnering more Indian IT investments into Singapore as well as potentially a pharmaceutical project as well,” said Mr Keat. However, the name of pharma company was not disclosed.
Mr Keat was confident that more and more bio-pharmaceutical and pharmaceutical companies would be locating their regional offices in Singapore.
The advance levels of medical, diseases and drug researches undertaken by Singapore-based institutes would support Indian pharma companies’ global market plans.
Singapore was inviting international corporations in the field of pharmaceuticals to set up operations and business here, Mr Keat added.
“We do feel that there are groups of companies in India that are looking into innovative drug developments and formulation capabilities and delivery mechanism,” said Mr Keat.
More than 4,500 Indian companies have set up operations in Singapore to globalise their businesses or trades, making it the largest business community in corporate Singapore, ahead of the Chinese, Malaysians and Indonesians.
Indian companies are looking at advantages of Singapore’s free trade agreements with China, Australia and Southeast Asia. These treaties will enable them to lower the tariff for their exports of goods into these markets. Singapore offers basic financing need to these companies.
Mr Keat observed India was looking to increase its trade with China, and pointed out that Singapore offered one of the most competitive foreign exchange options, including Renminbi/Yuan (RMB). Singapore has recently been acknowledged asthe second clearing centre for RMB.
China appointed the Industrial and Commercial Bank of China Singapore branch as the clearing bank for RMB in Singapore in February 2013.
Mr Keat highlighted options of Singapore’s other financial capabilities including convertible bonds, currency hedging and participation in the equity markets.
The top Indian companies operating out of Singapore, includes Tata Consultancy Services (TCS) and HCL Technologies as well as infrastructure group Punj Lloyd, highlighted Mr Keat.
“These companies see Singapore as a home for innovation. They are actually creating new solutions for their global clients,” he added.
These companies have also built their skilled manpower from the cosmopolitan workforce in Singapore and international operations, said Mr Keat.
TCS had recruited its top management from Singapore for setting up operations in China, he added.
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