New Delhi: The Indian and Chinese governments agreed today to scale up two-way trade to $100 billion by 2015 from $67.8 bn in 2012-13.
Bilateral trade went from $2.1 bn in 2001-02 to $75.6 bn in 2011-12; it then came down to $67.8 bn during 2012-13. Simultaneously, India’s trade deficit increased from $1.1 bn in 2001-02 to $40.8 bn in 2012-13. In 2012-13, China became India’s fourth largest trading partner from third largest in 2011-2012. Our exports fell from $18.1 bn in 2011-12 to $13.5 bn in 2012-13.
The surging deficit is a big cause of concern and Commerce and Industry Minister Anand Sharma took up the matter with Chinese counterpart Gao Hucheng. Sharma today urged greater work on some of the steps suggested in the earlier communiqué issued by the Premiers of the two governments, to allow our exports to increase.
In 2010, both sides had set a trade turnover target of $60 bn, which was achieved. However, India was not able increase its exports to China, while imports from there kept rising. The only exception was in 2012-13, when imports from China fell to $54.3 bn from $57.5 bn in FY2012.
The joint communiqué issued then had suggested measures for India to increase its exports, including enhancing exchange and cooperation in pharmaceutical products, stronger relationships between information technology (IT) companies, and speedier completion of phyto-sanitary negotiations on agro products.
“Targets do get achieved but that always happens in their (China’s) favour,” said Biswajit Dhar of Delhi-based think tank RIS. “This is now an opportunity for us to pull up our socks and look at the Chinese market seriously, and understand areas where they need us. We must realise that China is gradually becoming a high-cost economy, and there are labour and wage issues that are affecting their market. Indian industry has to stop being defensive and work out a well-thought strategy.”
According to exporters, increasing of market access to China is vital for a jump in India’s exports as the country endeavours to change its export profile from raw materials to finished and value-added products.
“While bilateral trade of $100 bn by 2015 is within the realm of reality, I would like India’s exports to touch $40 bn by 2015, so as to bring the trade deficit within a narrow zone,” said M Rafeeque Ahmed, president, Federation of Indian Export Organisations.
An India-China CEOs’ Forum has been constituted to deliberate on business issues and make recommendations on expansion of trade and investment cooperation. The India side would be chaired by Anil Ambani, chairman, Reliance ADAG Group. Chen Yuan, chairman of the China Development Bank will head the other side.
For five years, India had been making efforts to enter the Chinese IT and pharmaceuticals sectors. However, Indian IT faces problems in work permits and business tax regulations. In pharma, too, Indian industry faces several barriers in the form of delay in approvals and a complex registration process.
To address the trade deficit issue, both sides today signed three agreements, on buffalo meat, fisheries and pharmaceuticals, and one agreement on feed and feed ingredients. The export of buffalo meat had not been allowed from India to China and this has been a long-pending issue. With the resumption, India hopes a big merchandise flow would be helpful in reducing trade imbalance.
Success in my Habit
Tuesday, May 21, 2013
Harvard University students to get tips from Indian public enterprises
New Delhi: Students at the prestigious Harvard University will soon get tips on becoming socially responsible corporate citizens from Indian Central Public Sector Enterprises.
The Department of Public Enterprises (DPE) has been invited to a talk on the new guidelines on ‘Corporate Social Responsibility and Sustainability for Central Public Sector Enterprises’, which came into effect from April 1. A Joint Secretary in the department, Ashok Pavadia, will do the honours on May 23.
Confirming the development, O.P. Rawat, Secretary in the department, told Business Line, “Corporate social behaviour is key to corporate social responsibility and a part of the net profit (for CSR activities) is just a component of the entire CSR exercise.”
This is a shift from the previous guidelines, which focussed on CSR activities for external stakeholders, that is addressing social causes and environmental concerns through CSR projects funded by an earmarked budget.
Earlier, CSR and sustainable development were treated as separate subjects, posing practical difficulties for companies. Now, keeping in line with international practice, these two have been clubbed together.
Now the thrust of CSR and sustainability is on capacity building, empowerment of communities, inclusive socio-economic growth, environment protection, promotion of green and energy-efficient technologies, development of backward regions, and uplift of the marginalised and under-privileged sections of the society.
Major project
Also, Central enterprises will have to mandatorily take up at least one major project for development of a backward district. This has the potential of contributing significantly to socio-economic growth in all backward regions in the long run.
For CSR activities, the World Bank has been providing technical support to DPE in areas such as capacity building, sharing of international best practices and advocacy. This has helped include strategic philanthropy, sustainability and creating shared value, with CSR being made part of business strategy.
“Corporate social responsibility is not just about writing a cheque of a fixed amount. It has many dimensions. These include actual change in the lives of the people through contributing to human development and social inclusion,” Shabnam Sinha, Senior Education and Institutional Development Specialist with the World Bank, said.
Sinha complimented the CSR activities by some Central enterprises such as NMDC, GAIL, ONGC and Rashtriya Chemicals and Fertilisers.
The Department of Public Enterprises (DPE) has been invited to a talk on the new guidelines on ‘Corporate Social Responsibility and Sustainability for Central Public Sector Enterprises’, which came into effect from April 1. A Joint Secretary in the department, Ashok Pavadia, will do the honours on May 23.
Confirming the development, O.P. Rawat, Secretary in the department, told Business Line, “Corporate social behaviour is key to corporate social responsibility and a part of the net profit (for CSR activities) is just a component of the entire CSR exercise.”
This is a shift from the previous guidelines, which focussed on CSR activities for external stakeholders, that is addressing social causes and environmental concerns through CSR projects funded by an earmarked budget.
Earlier, CSR and sustainable development were treated as separate subjects, posing practical difficulties for companies. Now, keeping in line with international practice, these two have been clubbed together.
Now the thrust of CSR and sustainability is on capacity building, empowerment of communities, inclusive socio-economic growth, environment protection, promotion of green and energy-efficient technologies, development of backward regions, and uplift of the marginalised and under-privileged sections of the society.
Major project
Also, Central enterprises will have to mandatorily take up at least one major project for development of a backward district. This has the potential of contributing significantly to socio-economic growth in all backward regions in the long run.
For CSR activities, the World Bank has been providing technical support to DPE in areas such as capacity building, sharing of international best practices and advocacy. This has helped include strategic philanthropy, sustainability and creating shared value, with CSR being made part of business strategy.
“Corporate social responsibility is not just about writing a cheque of a fixed amount. It has many dimensions. These include actual change in the lives of the people through contributing to human development and social inclusion,” Shabnam Sinha, Senior Education and Institutional Development Specialist with the World Bank, said.
Sinha complimented the CSR activities by some Central enterprises such as NMDC, GAIL, ONGC and Rashtriya Chemicals and Fertilisers.
Dutch firm Coram to use India as base
New Delhi: Coram International, the Netherlands-based coordinated design bathroom company, is set to start operations in India from July this year.
The company, which set up a wholly-owned subsidiary in India in 2012, also has plans to set up a manufacturing facility for its flagship products in India, which is identified as the “sweet spot” for Coram. “There is good potential. But we would put up the plant once there is certain scale. India is likely to emerge as the manufacturing base for our operations in Asia over the next few years,” said Niels Pilaar, CEO, Coram International.
Huge population, coupled with affinity towards European designs, are the key reasons why Coram has decided to shift focus to India, said Pilaar. “Europe has become saturated and is declining as a market. Though China has the advantage of being the world’s largest population, it is not an easy market because of excessive Government interference,” he added.
The company would require about $10 million to set up a manufacturing unit which can be expanded depending on requirement. “The investment in India for a possible manufacturing unit is yet to be firmed up. It would depend on the time and scale. However, investments would come from the parent firm,” said the CEO.
India would be the first country outside Europe where Coram is planning to establish a manufacturing facility. At present, it has production units in Holland, Poland, the
UK, Germany, France and Italy. It also has an assembly unit in Malaysia. Pilaar said Coram’s India unit could initially target markets like Indonesia and Vietnam.
By July, the company will set up two experience zones, to have direct consumer connect, in Delhi and the National Capital region. Later, it would look at other parts of the country, starting with cities like Ludhiana, targeting bungalows and other residences.
Coram’s Xtreme wellness bathroom set up costs about Rs 15 lakh, while its product range starts from Rs 2 lakh.
Coram offers the coordinated design bathroom solutions with the possibility of added sustainable Xtreme wellness. Pilaar said annual sales of more than 5,000 units would make manufacturing viable in India.
At present, Coram gets about 90 per cent of its revenue from European markets.
The company, which set up a wholly-owned subsidiary in India in 2012, also has plans to set up a manufacturing facility for its flagship products in India, which is identified as the “sweet spot” for Coram. “There is good potential. But we would put up the plant once there is certain scale. India is likely to emerge as the manufacturing base for our operations in Asia over the next few years,” said Niels Pilaar, CEO, Coram International.
Huge population, coupled with affinity towards European designs, are the key reasons why Coram has decided to shift focus to India, said Pilaar. “Europe has become saturated and is declining as a market. Though China has the advantage of being the world’s largest population, it is not an easy market because of excessive Government interference,” he added.
The company would require about $10 million to set up a manufacturing unit which can be expanded depending on requirement. “The investment in India for a possible manufacturing unit is yet to be firmed up. It would depend on the time and scale. However, investments would come from the parent firm,” said the CEO.
India would be the first country outside Europe where Coram is planning to establish a manufacturing facility. At present, it has production units in Holland, Poland, the
UK, Germany, France and Italy. It also has an assembly unit in Malaysia. Pilaar said Coram’s India unit could initially target markets like Indonesia and Vietnam.
By July, the company will set up two experience zones, to have direct consumer connect, in Delhi and the National Capital region. Later, it would look at other parts of the country, starting with cities like Ludhiana, targeting bungalows and other residences.
Coram’s Xtreme wellness bathroom set up costs about Rs 15 lakh, while its product range starts from Rs 2 lakh.
Coram offers the coordinated design bathroom solutions with the possibility of added sustainable Xtreme wellness. Pilaar said annual sales of more than 5,000 units would make manufacturing viable in India.
At present, Coram gets about 90 per cent of its revenue from European markets.
ZTE in pact with Calyx to sell smartphones
Pune: Chinese telecom player ZTE Corporation, hitherto a supplier of handsets to mobile operators in India, is entering the Indian open market with smartphones and tablets.
ZTE has entered into an exclusive agreement with Pune-based Calyx Group to market and distribute its products across the country.
Xu Dejun, CEO, ZTE India, said India contributed 10 per cent to the Chinese company’s revenues and was a key growth propeller. “We are now changing our business area,” he said, adding that ZTE was targeting a place amongst the top three players in the Indian smartphones segment in the next three years.
Distribution
With a turnover of Rs 450 crore, the Calyx Group, which has interests in real estate and textiles, said it will invest Rs 500-600 crore in setting up a distribution network to sell mobiles and build the ZTE brand identity.
“We expect to sell a million units during this fiscal,” Gaurav Somani, Executive Director, Calyx Telecommunications, said. The initial plan is to launch five smartphone models priced Rs 5,000 to Rs 15,000, to be followed with high-end tablets around Diwali, Xu said.
ZTE has entered into an exclusive agreement with Pune-based Calyx Group to market and distribute its products across the country.
Xu Dejun, CEO, ZTE India, said India contributed 10 per cent to the Chinese company’s revenues and was a key growth propeller. “We are now changing our business area,” he said, adding that ZTE was targeting a place amongst the top three players in the Indian smartphones segment in the next three years.
Distribution
With a turnover of Rs 450 crore, the Calyx Group, which has interests in real estate and textiles, said it will invest Rs 500-600 crore in setting up a distribution network to sell mobiles and build the ZTE brand identity.
“We expect to sell a million units during this fiscal,” Gaurav Somani, Executive Director, Calyx Telecommunications, said. The initial plan is to launch five smartphone models priced Rs 5,000 to Rs 15,000, to be followed with high-end tablets around Diwali, Xu said.
India M&A deals record US$ 1.66 billion in April 2013: Grant Thornton
New Delhi: The total mergers and acquisitions (M&A) in April 2013 were valued at US$ 1.66 billion through 39 deals as compared to US$ 1.97 billion by way of 60 transactions during the same period last year, according to the data released by Grant Thornton. There has been a significant increase in inbound deals and this trend is likely to continue in the coming months.
“Cross border deals and in particular inbound deals are seeing strong resurgence. Unilever’s investment announcement preceded the Diageo transaction, which is now in its final legs. These are two significant transactions,” as per Mr Harish HV, Partner, India Leadership Team at Grant Thornton India LLP.
During April 2013, cross border deals were valued at US$ 1,121 million, followed by domestic deals (US$ 488 million) and mergers and internal restructuring at US$ 60 million.
“We expect significant uptick in the inbound arena. Similarly, we are seeing resurgence in outbound transactions and expect to see significant uptick in this area from both, IT and manufacturing sectors,” said Mr Harish.
The deal of the month was Etihad Airways acquiring 24 per cent of Jet Airways for US$ 379 million.
Other major M&A deals in April 2013 include Bharti Airtel, acquiring 100 per cent stake in Bangladesh’s Warid Telecom, followed by Aditya Birla Nuvo selling its carbon black business to group firm SKI Carbon Black for Rs 1,451 crore (US$ 263.70 million) and Qatar-based investment firm Hassad Food buying majority stake in basmati rice company Bush Foods for over US$ 100 million.
“We continue to see Indian corporates focused to divest non-core assets to enhance liquidity such as DLF stake sale in wind power assets for over $ 100 million,” said Mr Raja Lahiri, Partner, Transaction Advisory Services at Grant Thornton India LLP.
The foreign direct investment (FDI) regulatory changes in sectors and government’s push to attract FDI, the Etihad-Jet transaction is good for the aviation sector and we believe that more such inbound deals are expected to play out in sectors such as aviation, retail and broadcasting, added Mr Lahiri.
“Cross border deals and in particular inbound deals are seeing strong resurgence. Unilever’s investment announcement preceded the Diageo transaction, which is now in its final legs. These are two significant transactions,” as per Mr Harish HV, Partner, India Leadership Team at Grant Thornton India LLP.
During April 2013, cross border deals were valued at US$ 1,121 million, followed by domestic deals (US$ 488 million) and mergers and internal restructuring at US$ 60 million.
“We expect significant uptick in the inbound arena. Similarly, we are seeing resurgence in outbound transactions and expect to see significant uptick in this area from both, IT and manufacturing sectors,” said Mr Harish.
The deal of the month was Etihad Airways acquiring 24 per cent of Jet Airways for US$ 379 million.
Other major M&A deals in April 2013 include Bharti Airtel, acquiring 100 per cent stake in Bangladesh’s Warid Telecom, followed by Aditya Birla Nuvo selling its carbon black business to group firm SKI Carbon Black for Rs 1,451 crore (US$ 263.70 million) and Qatar-based investment firm Hassad Food buying majority stake in basmati rice company Bush Foods for over US$ 100 million.
“We continue to see Indian corporates focused to divest non-core assets to enhance liquidity such as DLF stake sale in wind power assets for over $ 100 million,” said Mr Raja Lahiri, Partner, Transaction Advisory Services at Grant Thornton India LLP.
The foreign direct investment (FDI) regulatory changes in sectors and government’s push to attract FDI, the Etihad-Jet transaction is good for the aviation sector and we believe that more such inbound deals are expected to play out in sectors such as aviation, retail and broadcasting, added Mr Lahiri.
Anand Sharma meets Japan Prime Minister Shinzo Abe
New Delhi: The Union Minister for Commerce, Industry and Textiles Shri Anand Sharma is on a two-day visit to Tokyo for a comprehensive review of bilateral economic engagement with Japan, ahead of Dr. Manmohan Singh’s visit to Tokyo.
Today, he called upon Japanese PM Mr. Shinzo Abe, and apprised him of the progress made in the implementation of the Delhi Mumbai Industrial Corridor (DMIC) project, which was conceptualised in the 2007 visit of Mr. Abe to India. Mr Abe expressed satisfaction on the amount of work put into the project and mentioned that Japanese companies are looking forward to partner with India in project implementation. Japan has already committed USD 4.5 billion in the first phase of project implementation. The Government of India has committed an equal amount for development of trunk infrastructure for creation of new industrial townships along the corridor. Shri Sharma informed the Japanese Prime Minister that currently Japan has already taken 26% equity in the Delhi Mumbai Industrial Corridor Development Corporation creating a new paradigm of economic cooperation based on collaboration in innovation, technology and manufacturing under the framework of the strategic global partnership between the two countries. Shri Sharma mentioned that India was looking forward to welcoming the Emperor and Empress of Japan to India during this year.
Shri Sharma also met Japanese Foreign Minister Fumio Kishida and expressed satisfaction on the healthy growth of trade after the signing of Comprehensive Economic Partnership Agreement (CEPA) between the two countries. However, he flagged concerns of India relating to mounting trade deficit and specially urged for market access for Indian agricultural and marine produce and Indian pharmaceuticals. The Japanese pharma market is projected to grow to USD 100 billion and Indian generics can play a key role in providing affordable healthcare.
Shri Sharma also met the Japanese Minister of Economy Trade and Industry, Mr. Toshimitsu Motegi, which provided an opportunity for a comprehensive review of the DMIC project including the implementation of the early bird projects.
Top Japanese company CEOs including those from Mitsubishi, Hitachi, New Energy and Industrial Technology Development Organization (NEDO) made a detailed presentation to Shri Sharma on the progress of the project implementation. The CEO of Japan Bank of International Cooperation (JBIC), Mr. Hiroshi Watanabe also met Shri Sharma assuring him of full financial support for the DMICDC project and other infrastructure projects in India.
Today, he called upon Japanese PM Mr. Shinzo Abe, and apprised him of the progress made in the implementation of the Delhi Mumbai Industrial Corridor (DMIC) project, which was conceptualised in the 2007 visit of Mr. Abe to India. Mr Abe expressed satisfaction on the amount of work put into the project and mentioned that Japanese companies are looking forward to partner with India in project implementation. Japan has already committed USD 4.5 billion in the first phase of project implementation. The Government of India has committed an equal amount for development of trunk infrastructure for creation of new industrial townships along the corridor. Shri Sharma informed the Japanese Prime Minister that currently Japan has already taken 26% equity in the Delhi Mumbai Industrial Corridor Development Corporation creating a new paradigm of economic cooperation based on collaboration in innovation, technology and manufacturing under the framework of the strategic global partnership between the two countries. Shri Sharma mentioned that India was looking forward to welcoming the Emperor and Empress of Japan to India during this year.
Shri Sharma also met Japanese Foreign Minister Fumio Kishida and expressed satisfaction on the healthy growth of trade after the signing of Comprehensive Economic Partnership Agreement (CEPA) between the two countries. However, he flagged concerns of India relating to mounting trade deficit and specially urged for market access for Indian agricultural and marine produce and Indian pharmaceuticals. The Japanese pharma market is projected to grow to USD 100 billion and Indian generics can play a key role in providing affordable healthcare.
Shri Sharma also met the Japanese Minister of Economy Trade and Industry, Mr. Toshimitsu Motegi, which provided an opportunity for a comprehensive review of the DMIC project including the implementation of the early bird projects.
Top Japanese company CEOs including those from Mitsubishi, Hitachi, New Energy and Industrial Technology Development Organization (NEDO) made a detailed presentation to Shri Sharma on the progress of the project implementation. The CEO of Japan Bank of International Cooperation (JBIC), Mr. Hiroshi Watanabe also met Shri Sharma assuring him of full financial support for the DMICDC project and other infrastructure projects in India.
Friday, May 17, 2013
Manipal Health Enterprises acquires Ankur Healthcare
Bangalore: Manipal Health Enterprises (MHE) has forayed into andrology and reproductive medicine services by acquiring Ankur Healthcare.
Ankur Healthcare is a speciality centre focusing in the areas of reproductive medicine – In Vitro Fertilisation, andrology and men’s Health.
MHE has invested Rs 40 crore so far in this speciality healthcare outfit founded by Vasan S. S., Uro Andrologist, and Bina Vasan, specialist in reproductive medicine, a decade ago. Further, MHE has also committed Rs 3 crore to strengthen its medical infrastructure and plans to bring in Rs 100 crore for expansion in the next three to four years.
“This investment marks the beginning of Manipal’s foray into allied healthcare delivery formats in partnership with established players in specified clinical areas,” said Rajen Padukone, Managing Director and Chief Executive Officer, Manipal Health Enterprises.
The new entity will be called Manipal-Ankur Andrology & Reproductive Services and called so even after Manipal Hospital’s investment. Vasan will lead the new entity as the Chief Executive Officer and Medical Director while Bina will head the Reproductive Medicine Division.
Ankur Healthcare is a speciality centre focusing in the areas of reproductive medicine – In Vitro Fertilisation, andrology and men’s Health.
MHE has invested Rs 40 crore so far in this speciality healthcare outfit founded by Vasan S. S., Uro Andrologist, and Bina Vasan, specialist in reproductive medicine, a decade ago. Further, MHE has also committed Rs 3 crore to strengthen its medical infrastructure and plans to bring in Rs 100 crore for expansion in the next three to four years.
“This investment marks the beginning of Manipal’s foray into allied healthcare delivery formats in partnership with established players in specified clinical areas,” said Rajen Padukone, Managing Director and Chief Executive Officer, Manipal Health Enterprises.
The new entity will be called Manipal-Ankur Andrology & Reproductive Services and called so even after Manipal Hospital’s investment. Vasan will lead the new entity as the Chief Executive Officer and Medical Director while Bina will head the Reproductive Medicine Division.
Upgradation of existing facility and creation of new facility at Visakhapatnam Port Trust for iron ore handling
New Delhi: The Cabinet Committee on Economic Affairs has approved the project for upgradation of existing facility and creation of a new facility at Visakhapatnam Port Trust for iron ore handling in two phases on Design, Build, Finance, Operate and Transfer (DBFOT) basis at an estimated cost of Rs. 845.41 crore. The project will be taken up for implementation under Private Public Partnership (PPP) mode on DBFOT basis, that is, the entire investment on the project will be made by the concessionaire.
The project is envisaged to be implemented in two phases. In Phase-l, upgradation of existing mechanized iron ore handling facility at Outer Harbour will be taken up at an estimated cost of Rs.580.89 crore. This will involve capacity addition of 16.2 MTPA. In Phase II, creation of new mechanized facility at West Quay-1 (WQ-1) berth in inner harbour at an estimated cost of Rs. 264.52 crore involving capacity addition of 6.8 MTPA will be taken up. Phase-ll facility at Inner Harbour would be taken up after attaining the threshold limit of 12.5 million tonnes of cargo handling at Outer Harbour or two million tonnes of cargo handling at Inner Harbour, whichever is earlier. However, there is no bar on the operator to commence Phase - II on the date of award of concession. Phase I of the project will be completed by June 2015 and Phase II, within two years of its commencement.
This project will create additional employment opportunities and lead to the socio-economic development of the region.
The project is envisaged to be implemented in two phases. In Phase-l, upgradation of existing mechanized iron ore handling facility at Outer Harbour will be taken up at an estimated cost of Rs.580.89 crore. This will involve capacity addition of 16.2 MTPA. In Phase II, creation of new mechanized facility at West Quay-1 (WQ-1) berth in inner harbour at an estimated cost of Rs. 264.52 crore involving capacity addition of 6.8 MTPA will be taken up. Phase-ll facility at Inner Harbour would be taken up after attaining the threshold limit of 12.5 million tonnes of cargo handling at Outer Harbour or two million tonnes of cargo handling at Inner Harbour, whichever is earlier. However, there is no bar on the operator to commence Phase - II on the date of award of concession. Phase I of the project will be completed by June 2015 and Phase II, within two years of its commencement.
This project will create additional employment opportunities and lead to the socio-economic development of the region.
Tecpro signs pact with Japanese major for better thermal power tech
Chennai: Chennai-headquartered Tecpro Systems Ltd has entered into an agreement with Mitsubishi Heavy Industries Mechatronics Systems Ltd (MHI) of Japan for technology for manufacturing electro-static precipitators (ESPs) for thermal power projects.
With MHI technology, Tecpro will make the ESPs at its Rs 25-crore plant that is coming up in the Sri City industrial estate near Chennai. The tie-up could potentially result in business prospects of about Rs 500 crore a year, Tecpro Systems’ Chairman and Managing Director, Ajay Kumar Bishnoi, told Business Line today.
Electrostatic precipitators are nothing new in India —all coal-based thermal power projects here are equipped with them.
These are needed to trap and remove particulate matter from the exhaust gases from boilers. So what makes MHI technology any different?
Arvind Bishnoi, Director at Tecpro, observed that there were two major advantages to MHI technology. Typically, an ESP system costs Rs 50 crore. With MHI, the costs would be significantly lower and the size of the equipment much smaller. Second, emissions from their ESP systems will be contained well within the 30 mg/cubic nm norm.
Tecpro mainly offers coal and ash handling systems for thermal power projects. It also provides full ‘balance of plant’ solutions on turnkey basis. In 2012-13, the company was able to book orders worth Rs 2,552 crore. It has orders on hand of around Rs 4,000 crore.
The Sri City plant would be production-ready in a few months and Tecpro Systems has started offering its products from here. It has, for instance, participated in an NTPC tender for two plants of 800 MW each in the Garadwara project.
This is, incidentally, the second tie-up that the Japanese major has entered into with an Indian company recently.
Last month, MHI signed a similar technology agreement with public sector power equipment major BHEL for imparting know-how to make flue-gas desulphurisation systems for power projects.
With MHI technology, Tecpro will make the ESPs at its Rs 25-crore plant that is coming up in the Sri City industrial estate near Chennai. The tie-up could potentially result in business prospects of about Rs 500 crore a year, Tecpro Systems’ Chairman and Managing Director, Ajay Kumar Bishnoi, told Business Line today.
Electrostatic precipitators are nothing new in India —all coal-based thermal power projects here are equipped with them.
These are needed to trap and remove particulate matter from the exhaust gases from boilers. So what makes MHI technology any different?
Arvind Bishnoi, Director at Tecpro, observed that there were two major advantages to MHI technology. Typically, an ESP system costs Rs 50 crore. With MHI, the costs would be significantly lower and the size of the equipment much smaller. Second, emissions from their ESP systems will be contained well within the 30 mg/cubic nm norm.
Tecpro mainly offers coal and ash handling systems for thermal power projects. It also provides full ‘balance of plant’ solutions on turnkey basis. In 2012-13, the company was able to book orders worth Rs 2,552 crore. It has orders on hand of around Rs 4,000 crore.
The Sri City plant would be production-ready in a few months and Tecpro Systems has started offering its products from here. It has, for instance, participated in an NTPC tender for two plants of 800 MW each in the Garadwara project.
This is, incidentally, the second tie-up that the Japanese major has entered into with an Indian company recently.
Last month, MHI signed a similar technology agreement with public sector power equipment major BHEL for imparting know-how to make flue-gas desulphurisation systems for power projects.
In FY13, NRI deposits climb 19%
Mumbai: Lured by higher returns offered by banks in their homeland, non-resident Indians (NRIs) placed deposits aggregating $14.18 billion in the financial year ended March 2013, an increase of 19 per cent over the previous year.
In the previous year, NRIs parked deposits aggregating $11.92 billion with banks in India. NRIs placed deposits predominantly in non-resident (external) rupee account or NRE account. NRE deposits with the banking system jumped 85 per cent (rising by $15.81 billion in FY13 compared to $8.53 billion in FY12), according to Reserve Bank of India data.
The attractiveness of NRE deposits lies in the fact that banks quote the same interest rate on these as on domestic deposits. For example, State Bank of India is quoting 8.75 per cent on NRE deposits of one- to 10-year duration. Also, the principal and interest are fully repatriable and the interest earned is exempt from Indian income-tax.
“The rising trend in NRE deposits is an indication that the NRIs expect the rupee to appreciate down the line. So, the NRIs are not only gaining by way of interest rate but also on account of favourable exchange rate conversion factor,” said a banker.
In FY13, the banking system’s NRO (non-resident ordinary deposits) shrunk by $1.8 billion (against an accretion of $4 billion). Since NRO deposits are non-repatriable and require submission of tax-residency certificate and self-declaration, bankers say these deposits have become unattractive.
In the previous year, NRIs parked deposits aggregating $11.92 billion with banks in India. NRIs placed deposits predominantly in non-resident (external) rupee account or NRE account. NRE deposits with the banking system jumped 85 per cent (rising by $15.81 billion in FY13 compared to $8.53 billion in FY12), according to Reserve Bank of India data.
The attractiveness of NRE deposits lies in the fact that banks quote the same interest rate on these as on domestic deposits. For example, State Bank of India is quoting 8.75 per cent on NRE deposits of one- to 10-year duration. Also, the principal and interest are fully repatriable and the interest earned is exempt from Indian income-tax.
“The rising trend in NRE deposits is an indication that the NRIs expect the rupee to appreciate down the line. So, the NRIs are not only gaining by way of interest rate but also on account of favourable exchange rate conversion factor,” said a banker.
In FY13, the banking system’s NRO (non-resident ordinary deposits) shrunk by $1.8 billion (against an accretion of $4 billion). Since NRO deposits are non-repatriable and require submission of tax-residency certificate and self-declaration, bankers say these deposits have become unattractive.
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