New Delhi: Hero MotoCorp, the country's largest two-wheeler maker, said it has commenced construction of a research and development centre that will create a "pool of global talent" and play a key role in the company's future product development.
The company said it will initially spend Rs 450 crore on the construction of the centre at Kukas, near Jaipur in Rajasthan, and that it will be ready by the first quarter of 2015.
"Kukas is going to be on the global map with a truly international centre of excellence, not just in terms of its design, development, testing and validation facilities but also in terms of the diversified pool of human talent from all over the world," Pawan Munjal, managing director and chief executive of Hero MotoCorp, told ET over the phone after laying the first brick for the centre.
"We will acquire the best of global talent to build a truly multi-cultural, multi-national set up here, which will also play the role of a catalyst in nurturing multi-faceted local talent through knowledge sharing." The company said the centre will have more than 600 engineers working on Hero's future product line-up, as it expands its global footprint.
In two years of the commencement of its solo journey, Hero MotoCorpBSE 3.84 % has scaled up its in-house research and development capabilities. It employs over 400 engineers at its R&D centres housed in Gurgaon and Dharuhera plants in Haryana.
"Hero's new R&D centre will play a crucial role in developing a range of next-generation twowheelers for its customers in India and around the world," according to an independent industry analyst. "With the company spreading its manufacturing base to more than 20 locations across continents by 2020, they really need such a centre to scale up their technological prowess."
In an interview with ET at the time of this announcement, Munjal had said that he was looking at both organic as well as inorganic options for growth. He had said that the first of the new launches will happen around the festive season this year, although "the completely new model will come up in 2014."
Success in my Habit
Thursday, September 12, 2013
HCL eyes Europe for tablets & phablets
New Delhi: After foraying into Turkey and South Africa with its range of computer tablets and phablets, HCL Infosystems is now eyeing European countries. The company claims it is selling as many tablets internationally as it is retailing in India.
Currently, the European market was dominated by established high-end players and there was enough room for the value-for-money segment to grow, Gautam Advani, executive vice-president and global head (mobility), HCL Infosystems, told Business Standard. “We want to recreate in Europe what we have done in other international markets.”
In India, the company retails tablets and phablets at Rs 6,000-15,000. It claimed these sales have surpassed the sales of laptops in the country. The company declined to share the total number of units sold.
Advani said though the company was trying to target the value-for money segment, it didn’t want to follow a dumping strategy similar to that of many local players in India. “We want to build a proper brand around HCL and we have made significant marketing investments in the past in countries such as Turkey.” He added the company had given itself six months to come up with a suitable strategy for the European market.
Kiran Kumar, research manager at market research and consultancy firm IDC India and someone who tracked the personal computer (PC) market, said primarily, HCL’s strategy was to focus on the low-cost entry-level segments, both for and PCs. “Most of these users (going for such products) are from tier-II and III cities and are users of smartphones or feature phones. They are buying a tablet before buying a PC. That’s where HCL plays.” He added the company had an edge over other players because of its huge coverage in the country. “Even in markets such as West Asia, it has a distribution ecosystem, as it is also a system integrator there.” However, it remained to be seen whether those markets, especially Europe, shared India’s price sensitiveness, he added.
The Indian tablet market is expected to double to 6 million units in 2013 according to IDC India. Local vendors and Chinese imports contribute almost two-thirds of the market in India. The research firm said in a June report that “most of these vendors operate on a “fly by night” model, wherein they flood the market with low cost tablets and vanish within 2-3 quarters.”
While Samsung led the market with around 16% share, Micromax came second with 13.3% share and Apple held close to 10% share in 2012. HCL, which is considered to be one of the branded yet low-cost service providers had over 7% share in the last calendar year.
On the other hand, according to an August report of by IDC, the 5.0 inch-6.99 inch screen size smartphones, or so-called phablets have steadily grown in the Indian market command 30% of the smartphone market in the June quarter of 2013. There were a total of 9.3 million smartphones shipped during the quarter compared to 3.5 million units in the same period of 2012. As in the case of tablets, in the smartphone category too local vendors accounted for over half of the total shipments in the June quarter.
HCL currently retails its products across Nepal, UAE, Oman, Qatar, Kuwait, Saudi Arabia, Bahrain, Turkey and in some countries of Africa.
Currently, the European market was dominated by established high-end players and there was enough room for the value-for-money segment to grow, Gautam Advani, executive vice-president and global head (mobility), HCL Infosystems, told Business Standard. “We want to recreate in Europe what we have done in other international markets.”
In India, the company retails tablets and phablets at Rs 6,000-15,000. It claimed these sales have surpassed the sales of laptops in the country. The company declined to share the total number of units sold.
Advani said though the company was trying to target the value-for money segment, it didn’t want to follow a dumping strategy similar to that of many local players in India. “We want to build a proper brand around HCL and we have made significant marketing investments in the past in countries such as Turkey.” He added the company had given itself six months to come up with a suitable strategy for the European market.
Kiran Kumar, research manager at market research and consultancy firm IDC India and someone who tracked the personal computer (PC) market, said primarily, HCL’s strategy was to focus on the low-cost entry-level segments, both for and PCs. “Most of these users (going for such products) are from tier-II and III cities and are users of smartphones or feature phones. They are buying a tablet before buying a PC. That’s where HCL plays.” He added the company had an edge over other players because of its huge coverage in the country. “Even in markets such as West Asia, it has a distribution ecosystem, as it is also a system integrator there.” However, it remained to be seen whether those markets, especially Europe, shared India’s price sensitiveness, he added.
The Indian tablet market is expected to double to 6 million units in 2013 according to IDC India. Local vendors and Chinese imports contribute almost two-thirds of the market in India. The research firm said in a June report that “most of these vendors operate on a “fly by night” model, wherein they flood the market with low cost tablets and vanish within 2-3 quarters.”
While Samsung led the market with around 16% share, Micromax came second with 13.3% share and Apple held close to 10% share in 2012. HCL, which is considered to be one of the branded yet low-cost service providers had over 7% share in the last calendar year.
On the other hand, according to an August report of by IDC, the 5.0 inch-6.99 inch screen size smartphones, or so-called phablets have steadily grown in the Indian market command 30% of the smartphone market in the June quarter of 2013. There were a total of 9.3 million smartphones shipped during the quarter compared to 3.5 million units in the same period of 2012. As in the case of tablets, in the smartphone category too local vendors accounted for over half of the total shipments in the June quarter.
HCL currently retails its products across Nepal, UAE, Oman, Qatar, Kuwait, Saudi Arabia, Bahrain, Turkey and in some countries of Africa.
Jet gets code-share nod with five airlines
New Delhi: Days after the Etihad tie-up, Jet Airways has got yet another major boost to expand its global footprint and become the biggest Indian carrier in terms of network. The aviation ministry has allowed Jet to go for code-sharing with five airlines — American Airlines, Malaysian, Garuda of Indonesia, Vietnam Airlines and Kenya Airways.
A code-share allows two or more airlines share the same flight. Passengers will buy ticket from one airline and take a flight operated by another airline, allowing partners to expand their global connectivity.
Jet promoter Naresh Goyal's decision not to enter any airline alliance has clearly paid off, as it can tie up with any carrier, without having to remain within the fold and sticking to fellow member airlines. Lufthansa-led Star Alliance, the world's largest alliance, was very keen to have Jet on board.
"This is one of the biggest permissions given to an Indian airline for code-share in a go, and will be a big boost for Jet," said sources. With the $900-million deal with Etihad likely to be signed by this month-end, Jet is aggressively planning to expand its global network and this recent decision will be another shot in the arm.
Apart from code-share, the Etihad deal will mean Jet operates flights between 23 Indian cities and Abu Dhabi. From the Gulf, Jet will have flights to numerous points in the US, including a non-stop to San Francisco, Gulf, East Africa and Europe. These will be in addition to the non-stops it operates directly from India to the West and Southeast Asia.
Jet expects a substantial passenger load between Europe, Southeast Asia and China, where it plans to restart operations to Shanghai. The airline, which has 100 aircraft in its fleet, is in talks with Boeing for a big order for Boeing 737 Max.
A code-share allows two or more airlines share the same flight. Passengers will buy ticket from one airline and take a flight operated by another airline, allowing partners to expand their global connectivity.
Jet promoter Naresh Goyal's decision not to enter any airline alliance has clearly paid off, as it can tie up with any carrier, without having to remain within the fold and sticking to fellow member airlines. Lufthansa-led Star Alliance, the world's largest alliance, was very keen to have Jet on board.
"This is one of the biggest permissions given to an Indian airline for code-share in a go, and will be a big boost for Jet," said sources. With the $900-million deal with Etihad likely to be signed by this month-end, Jet is aggressively planning to expand its global network and this recent decision will be another shot in the arm.
Apart from code-share, the Etihad deal will mean Jet operates flights between 23 Indian cities and Abu Dhabi. From the Gulf, Jet will have flights to numerous points in the US, including a non-stop to San Francisco, Gulf, East Africa and Europe. These will be in addition to the non-stops it operates directly from India to the West and Southeast Asia.
Jet expects a substantial passenger load between Europe, Southeast Asia and China, where it plans to restart operations to Shanghai. The airline, which has 100 aircraft in its fleet, is in talks with Boeing for a big order for Boeing 737 Max.
SMEs plays vital role in the growth of Indian pharma industry
New Delhi: The pharmaceutical sector of India is heavily reliant on the small and medium enterprises (SMEs), as they form a critical part of the supply chain for the larger players. There are more than 24,000 registered units in the Indian pharma sector, which meet around 70 per cent of the country’s needs.
Small and medium scale units have played a crucial role in the growth story of the Indian pharmaceutical industry and form an integral part of the sector, according to India Micro, Small and Medium Enterprise Report 2013.
SMEs contribute 35-40 per cent to the Indian pharmaceutical industry in terms of production, with a turnover of about Rs 35,000 crore.
The Indian pharmaceutical industry is highly fragmented and estimated to have 9,456 units in the SME segment, which account for around 87 per cent of production by volume and 40 per cent by value, highlighted the report.
Pharmaceuticals product exports from India grew to US$ 14.6 billion in 2012-13 from US$ 6.23 billion in 2006-07, registering a compound annual growth rate (CAGR) of around 15.2 per cent.
The Ministry of Commerce has set a target for Indian pharma sector exports to reach US$ 25 billion by 2014 at an annual growth rate of 25 per cent.
The SME sector is at the forefront in terms of number of units and employment generation. They also support 48 per cent of the country’s pharma exports, as per the report.
Strengths of pharma industry
SMEs are mainly focusing on manufacturing and niche marketing. Contract Research and Manufacturing (CRAMs) and Biopharma have emerged as areas of high relevance to the MSME sector. It is recognised that these units can effectively address the two critical public expectations viz. cost effective and affordable medicines within the given framework of excellent manufacturing processes, technology, regulatory compliance, distribution system and prices.
On the export front, pharmaceutical SMEs in India have become preferred partners for the supply of active pharmaceutical ingredients (APIs) and finished dosages for Indian as well as foreign pharmaceutical firms, highlighted the report.
Government policy support
The Government of India provides tax deduction to promote research and development (R&D).
“SMEs can play a strong role in the R&D area. The sector has been asking for various kinds of fiscal incentives and tax sops in order to stimulate investments in innovations and R&D beyond the current tax deduction,” said Mr Gaurav Khungar, KPMG.
The tax reduction demands of SMEs are to the tune of 150 per cent on R&D spend. The Government of India has initiated multiple reforms such as the cluster development programme, technology upgradation fund, credit link capital scheme, amongst others, which have rendered success.
“There’s a pressing need for the state governments, local governments to join hands with the central government and work towards increasing the presence of MSME’s in the ecosystem,” said Mr Madhav Lal, Secretary, Ministry of Micro, Small and Medium Enterprises, Government of India.
Small and medium scale units have played a crucial role in the growth story of the Indian pharmaceutical industry and form an integral part of the sector, according to India Micro, Small and Medium Enterprise Report 2013.
SMEs contribute 35-40 per cent to the Indian pharmaceutical industry in terms of production, with a turnover of about Rs 35,000 crore.
The Indian pharmaceutical industry is highly fragmented and estimated to have 9,456 units in the SME segment, which account for around 87 per cent of production by volume and 40 per cent by value, highlighted the report.
Pharmaceuticals product exports from India grew to US$ 14.6 billion in 2012-13 from US$ 6.23 billion in 2006-07, registering a compound annual growth rate (CAGR) of around 15.2 per cent.
The Ministry of Commerce has set a target for Indian pharma sector exports to reach US$ 25 billion by 2014 at an annual growth rate of 25 per cent.
The SME sector is at the forefront in terms of number of units and employment generation. They also support 48 per cent of the country’s pharma exports, as per the report.
Strengths of pharma industry
SMEs are mainly focusing on manufacturing and niche marketing. Contract Research and Manufacturing (CRAMs) and Biopharma have emerged as areas of high relevance to the MSME sector. It is recognised that these units can effectively address the two critical public expectations viz. cost effective and affordable medicines within the given framework of excellent manufacturing processes, technology, regulatory compliance, distribution system and prices.
On the export front, pharmaceutical SMEs in India have become preferred partners for the supply of active pharmaceutical ingredients (APIs) and finished dosages for Indian as well as foreign pharmaceutical firms, highlighted the report.
Government policy support
The Government of India provides tax deduction to promote research and development (R&D).
“SMEs can play a strong role in the R&D area. The sector has been asking for various kinds of fiscal incentives and tax sops in order to stimulate investments in innovations and R&D beyond the current tax deduction,” said Mr Gaurav Khungar, KPMG.
The tax reduction demands of SMEs are to the tune of 150 per cent on R&D spend. The Government of India has initiated multiple reforms such as the cluster development programme, technology upgradation fund, credit link capital scheme, amongst others, which have rendered success.
“There’s a pressing need for the state governments, local governments to join hands with the central government and work towards increasing the presence of MSME’s in the ecosystem,” said Mr Madhav Lal, Secretary, Ministry of Micro, Small and Medium Enterprises, Government of India.
I&B Minister launches Bharat Nirman Web portal
I&B Minister launches Bharat Nirman Web portal -
www.bharat-nirman.in and AIR News free SMS service
Presents a Comprehensive Analysis of the
"Glimpses of the India Story"-Multi-Media Initiative
Reiterates Government's Commitment to a "Rights Based Approach" for citizens
The Minister for Information & Broadcasting Shri Manish Tewari today launched the online portal for the Bharat Nirman Campaign. The online portal provides an interactive digital platform for the creative campaign on various schemes and programmes of the Bharat Nirman Campaign. The digital platform is both in English and Hindi with creatives in 11 regional languages. The portal enables the user to get information about the Bharat Nirman schemes at a single place. It also has live integration with social media platforms such as Face Book, Twitter and You Tube. The portal has apps for mobiles and tablets to provide easy reading.
Phase II of the 2013 comprehensive multi media campaign was launched by the Ministry of Information & Broadcasting on 14th August, 2013. The 360 degree communication approach used all formats of media such a TV, radio, print, outdoor publicity and special outreach programmes. The multi media campaign was supported by a strong media outreach programme through eight Public Information Campaigns (PICs) in rural areas conducted by the Press Information Bureau (PIB) with support from the Directorate of Advertising and Visual Publicity (DAVP), Directorate of Field Publicity (DFP) and the Song & Drama Division. So far, four PICs have been supported by the 'Jamunia' Sound and Light Show. The Song & Drama Division is also developing a new production taking forward the theme of 'Priya Power' which is scheduled to be launched in mid-September at the Red Fort grounds, New Delhi.
Prasar Bharati as a part of its mandate conceptualised different programmes such as serials, interviews of eminent personalities and success stories/achievements of flagship schemes. Doordarshan has been airing a serial named "Poorva Suhani Aaye Re" every Wednesday and Thursday at 10 pm and All India Radio has come up with a serial named "Priya". These success stories based on ground realities where the Bharat Nirman schemes have ushered in progress and prosperity are also being telecast on Doordarshan and broadcast on All India Radio.A scientific approach has been undertaken to monitor and evaluate the Bharat Nirman Media Campaign.
Today, the Minister also launched All India Radio's initiative, "AIR News free SMS service". The service provides AIR news headlines free of cost to its subscribers on mobile telephones. People willing to subscribe to the service can SMS "AIRNEWS their name" to 08082080820. They can also give a missed call to 08082080820 to subscribe to the service. So far 2 lakh people have subscribed to the service.
Facts and figures of the Bharat Nirman Campaign
Media vehicle Category Phase I Phase II (Till date)
(No. of ads/spots)
TV Cable & Satellite Channels 31,042 34,789
DD 1570 2090
Total 32,612 36,879
Radio AIR 12,600 (across 92 stations)
Private FM 94,932 (across 216 stations)
Total 1,07,532 (1.07lakhs)
Community Radio 6,048 spots (across 36 stations)
Digital Cinema Screens 11,200 per day, 2.24 lakhs during the entire period (across 1400 empanelled screens) 27,324 per day, 6.46 lakhs during the entire period (across 6,831 empanelled screens)
Print Advertorials 5 X 750 = 3750
Strip ads 12 X 750 = 9000
Total 12,750 (in about 750 newspapers) 15,120 (in about 700 newspapers)
Outdoor Publicity No. of sites displayed 3,550 4,225
The PICs conducted so far in August and September, 2013 are as follows:-
Jhabua in Madhya Pradesh (11th-13th August,2013)
Marwar, Distt. Pali in Rajasthan (17th-19th August,2013)
Saiha Distt. In Mizoram (21st-23rd August,2013)
Dhariyabad, Distt. Pratapgarh in Rajasthan (24th-26th August,2013)(Jamunia from 23.8.2013 to 27.8.2013)
Baitul in Madhya Pradesh (25th-27th August,2013) (Jamunia from 24.8.2013 to 28.8.2013)
Chhindwara in Madhya Pradesh (5th-7th September, 2013) (Jamunia from 8.9.2013 to 11.9.2013)
Gariaband Distt. in Chhattisgarh (6th-8th September, 2013)
Baouli, Distt Sawai Madhopur in Rajasthan (7th-9th September, 2013) (Jamunia from 3.9.2013 to 7.9.2013)
www.bharat-nirman.in and AIR News free SMS service
Presents a Comprehensive Analysis of the
"Glimpses of the India Story"-Multi-Media Initiative
Reiterates Government's Commitment to a "Rights Based Approach" for citizens
The Minister for Information & Broadcasting Shri Manish Tewari today launched the online portal for the Bharat Nirman Campaign. The online portal provides an interactive digital platform for the creative campaign on various schemes and programmes of the Bharat Nirman Campaign. The digital platform is both in English and Hindi with creatives in 11 regional languages. The portal enables the user to get information about the Bharat Nirman schemes at a single place. It also has live integration with social media platforms such as Face Book, Twitter and You Tube. The portal has apps for mobiles and tablets to provide easy reading.
Phase II of the 2013 comprehensive multi media campaign was launched by the Ministry of Information & Broadcasting on 14th August, 2013. The 360 degree communication approach used all formats of media such a TV, radio, print, outdoor publicity and special outreach programmes. The multi media campaign was supported by a strong media outreach programme through eight Public Information Campaigns (PICs) in rural areas conducted by the Press Information Bureau (PIB) with support from the Directorate of Advertising and Visual Publicity (DAVP), Directorate of Field Publicity (DFP) and the Song & Drama Division. So far, four PICs have been supported by the 'Jamunia' Sound and Light Show. The Song & Drama Division is also developing a new production taking forward the theme of 'Priya Power' which is scheduled to be launched in mid-September at the Red Fort grounds, New Delhi.
Prasar Bharati as a part of its mandate conceptualised different programmes such as serials, interviews of eminent personalities and success stories/achievements of flagship schemes. Doordarshan has been airing a serial named "Poorva Suhani Aaye Re" every Wednesday and Thursday at 10 pm and All India Radio has come up with a serial named "Priya". These success stories based on ground realities where the Bharat Nirman schemes have ushered in progress and prosperity are also being telecast on Doordarshan and broadcast on All India Radio.A scientific approach has been undertaken to monitor and evaluate the Bharat Nirman Media Campaign.
Today, the Minister also launched All India Radio's initiative, "AIR News free SMS service". The service provides AIR news headlines free of cost to its subscribers on mobile telephones. People willing to subscribe to the service can SMS "AIRNEWS their name" to 08082080820. They can also give a missed call to 08082080820 to subscribe to the service. So far 2 lakh people have subscribed to the service.
Facts and figures of the Bharat Nirman Campaign
Media vehicle Category Phase I Phase II (Till date)
(No. of ads/spots)
TV Cable & Satellite Channels 31,042 34,789
DD 1570 2090
Total 32,612 36,879
Radio AIR 12,600 (across 92 stations)
Private FM 94,932 (across 216 stations)
Total 1,07,532 (1.07lakhs)
Community Radio 6,048 spots (across 36 stations)
Digital Cinema Screens 11,200 per day, 2.24 lakhs during the entire period (across 1400 empanelled screens) 27,324 per day, 6.46 lakhs during the entire period (across 6,831 empanelled screens)
Print Advertorials 5 X 750 = 3750
Strip ads 12 X 750 = 9000
Total 12,750 (in about 750 newspapers) 15,120 (in about 700 newspapers)
Outdoor Publicity No. of sites displayed 3,550 4,225
The PICs conducted so far in August and September, 2013 are as follows:-
Jhabua in Madhya Pradesh (11th-13th August,2013)
Marwar, Distt. Pali in Rajasthan (17th-19th August,2013)
Saiha Distt. In Mizoram (21st-23rd August,2013)
Dhariyabad, Distt. Pratapgarh in Rajasthan (24th-26th August,2013)(Jamunia from 23.8.2013 to 27.8.2013)
Baitul in Madhya Pradesh (25th-27th August,2013) (Jamunia from 24.8.2013 to 28.8.2013)
Chhindwara in Madhya Pradesh (5th-7th September, 2013) (Jamunia from 8.9.2013 to 11.9.2013)
Gariaband Distt. in Chhattisgarh (6th-8th September, 2013)
Baouli, Distt Sawai Madhopur in Rajasthan (7th-9th September, 2013) (Jamunia from 3.9.2013 to 7.9.2013)
Wednesday, September 11, 2013
Sultanate of Oman woos Indian tourists with attractive packages
Hyderabad: The Sultanate of Oman is seeking to woo Indian tourists by offering attractive packages, opening up exotic locations for shooting movies and as a meeting, wedding and convention destination.
Oman attracted over 2.21 lakh tourists visitors from India last year, an increase of over 35.6 per cent over 2011.
“We believe that the potential is lot more as the air connectivity makes it a lot more attractive for an Indian tourist,” said Lubaina Sheerazi, India representative of Oman.
Addressing a press conference here, she said the focus now is to tap tourists from non-metros, and Tier II cities including Hyderabad, Pune and Ahmedabad. With excellent connectivity, Oman offers an ideal location even for wedding ceremonies.
“The new convention centre coming up and the new airport, both expected to be ready by 2014, will make it even more attractive,” she explained.
Lubaina said, “Indians connect with a destination like Oman as its rich culture, tradition and hospitality is something that they will identify with and appreciate, besides its picturesque locations.”
Bollywood film Once Upon a Time in Mumbai Dobarra and South Indian movie Singham were shot in Oman. “We had associated with these movies as an initiative to popularise the destination in India,” she said.
Oman is all about old world charm and modernity. It provides ultimate Arabian experience blending old and new, she said.
To facilitate Indian tourists, the visa issuance process is also made easy as one can apply online and get it within four working days. The cost of visa for a visitor travelling for less than 10 days has also been kept low.
Oman attracted over 2.21 lakh tourists visitors from India last year, an increase of over 35.6 per cent over 2011.
“We believe that the potential is lot more as the air connectivity makes it a lot more attractive for an Indian tourist,” said Lubaina Sheerazi, India representative of Oman.
Addressing a press conference here, she said the focus now is to tap tourists from non-metros, and Tier II cities including Hyderabad, Pune and Ahmedabad. With excellent connectivity, Oman offers an ideal location even for wedding ceremonies.
“The new convention centre coming up and the new airport, both expected to be ready by 2014, will make it even more attractive,” she explained.
Lubaina said, “Indians connect with a destination like Oman as its rich culture, tradition and hospitality is something that they will identify with and appreciate, besides its picturesque locations.”
Bollywood film Once Upon a Time in Mumbai Dobarra and South Indian movie Singham were shot in Oman. “We had associated with these movies as an initiative to popularise the destination in India,” she said.
Oman is all about old world charm and modernity. It provides ultimate Arabian experience blending old and new, she said.
To facilitate Indian tourists, the visa issuance process is also made easy as one can apply online and get it within four working days. The cost of visa for a visitor travelling for less than 10 days has also been kept low.
UK, AP to join hands to conserve energy
Hyderabad: The UK has agreed in principle to share the best practices with the Government of Andhra Pradesh in energy efficiency and energy conservation initiatives.
This decision was taken at a meeting of Sandip Verma, Minister for Energy and Climate Change, Government of UK, with Chief Secretary and Chairperson of State Energy Conservation Mission (SECM) P.K. Mohanty here on Saturday, according to a release.
A high-level delegation of experts on energy and representatives of energy efficiency companies of the UK would be visiting the State to share the best practices, particularly a World Class Comprehensive Demand Side Management (CDSM) which was implemented in the UK over two decades ago.
objective
The objective was to achieve energy savings of around 15,000 million units a year in key sectors such as industry, agriculture, domestic and government offices and public/civic infrastructure.
The UK Govt has also agreed to strengthen and assist the SECM in implementing energy efficiency programmes by providing technical support and involving various prominent energy efficiency companies of the UK, the release said.
This decision was taken at a meeting of Sandip Verma, Minister for Energy and Climate Change, Government of UK, with Chief Secretary and Chairperson of State Energy Conservation Mission (SECM) P.K. Mohanty here on Saturday, according to a release.
A high-level delegation of experts on energy and representatives of energy efficiency companies of the UK would be visiting the State to share the best practices, particularly a World Class Comprehensive Demand Side Management (CDSM) which was implemented in the UK over two decades ago.
objective
The objective was to achieve energy savings of around 15,000 million units a year in key sectors such as industry, agriculture, domestic and government offices and public/civic infrastructure.
The UK Govt has also agreed to strengthen and assist the SECM in implementing energy efficiency programmes by providing technical support and involving various prominent energy efficiency companies of the UK, the release said.
RBI relaxes norms for non-resident investors
Mumbai: In yet another step to attract foreign money, the Reserve Bank of India (RBI) on Friday allowed non-resident investors to acquire shares of listed Indian companies through stock exchanges under the foreign direct investment (FDI) scheme.
The central bank has said such investment will be allowed only if the non-resident investor has already “acquired and continues to hold control” according to the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations.
At present, foreign institutional investors (FIIs), qualified foreign institutions and non-resident Indians (NRIs) are eligible to acquire shares on stock exchanges in compliance with FEMA regulations, but they are not permitted to acquire shares on bourses under the FDI scheme.
According to experts, the new regulation will pave the way for foreigners to be treated on a par with FIIs, as they can buy shares in the company they control (in line with the Sebi takeover code regulations) through on-market deals. Earlier, they were allowed to do so only through off-market deals.
“This is a very important step and will have a far-reaching impact,” said Lalit Kumar, Partner at J Sagar Associates.
“This will also have tax implications, as stock market transactions don’t attract capital gains. Also, the move to allow such acquisitions to be funded through dividend paid to NRIs is significant. The move will help attract capital flows into the Indian market,” said Lalit Kumar, Partner at J Sagar Associates.
Such transaction should happen through a registered broker, RBI said in a notification.
Earlier, a non-resident wasn’t permitted to acquire shares on stock exchange.
Some experts were of the view that the move was a step towards fuller convertibility of the rupee. “This is a step towards full convertibility of the rupee. Right now, we allow repatriation of capital to a select class of investor and in select assets. Now, this window has been opened to even foreign individuals and NRIs. This makes India a more attractive investment destination,” said Sivarama Krishnan, executive director, risk advisory services of consultant firm PwC.
The central bank has also laid out certain conditions for the sources of funds for purchase of shares. The amount should be paid by way of inward remittance through normal banking channels, the RBI said. It further said the amount can be paid by way of debit to the NRE/FCNR account of the person concerned or paid by debit to a non-interest-bearing escrow account (in rupees) maintained in India.
Further, the consideration amount can be paid out of the dividend paid by Indian investee company, in which the said non-resident holds control. Such dividends, however, should have been credited to specially designated non-interest bearing rupee account for acquisition of shares on the floor of stock exchange.
RBI has also said that the original and resultant investments have to be in line with the extant FDI policy and FEMA regulations in respect of sectoral cap, entry route, reporting requirement, and documentation.
LURING FOREIGN FUNDS
* NRIs qualify only if they have “acquired and continue to hold control” under Sebi norms
* Foreigners could be treated on a par with FIIs as they get on-market-deal window
* Deals can only happen through a registered broker
* Some experts say step a precursor to fuller convertibility of the rupee
* Share purchase should be paid by inward remittance through banking channels
* Amount can be paid via debit to NRE/FCNR accounts or via debit to non-interest bearing escrow account
The central bank has said such investment will be allowed only if the non-resident investor has already “acquired and continues to hold control” according to the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations.
At present, foreign institutional investors (FIIs), qualified foreign institutions and non-resident Indians (NRIs) are eligible to acquire shares on stock exchanges in compliance with FEMA regulations, but they are not permitted to acquire shares on bourses under the FDI scheme.
According to experts, the new regulation will pave the way for foreigners to be treated on a par with FIIs, as they can buy shares in the company they control (in line with the Sebi takeover code regulations) through on-market deals. Earlier, they were allowed to do so only through off-market deals.
“This is a very important step and will have a far-reaching impact,” said Lalit Kumar, Partner at J Sagar Associates.
“This will also have tax implications, as stock market transactions don’t attract capital gains. Also, the move to allow such acquisitions to be funded through dividend paid to NRIs is significant. The move will help attract capital flows into the Indian market,” said Lalit Kumar, Partner at J Sagar Associates.
Such transaction should happen through a registered broker, RBI said in a notification.
Earlier, a non-resident wasn’t permitted to acquire shares on stock exchange.
Some experts were of the view that the move was a step towards fuller convertibility of the rupee. “This is a step towards full convertibility of the rupee. Right now, we allow repatriation of capital to a select class of investor and in select assets. Now, this window has been opened to even foreign individuals and NRIs. This makes India a more attractive investment destination,” said Sivarama Krishnan, executive director, risk advisory services of consultant firm PwC.
The central bank has also laid out certain conditions for the sources of funds for purchase of shares. The amount should be paid by way of inward remittance through normal banking channels, the RBI said. It further said the amount can be paid by way of debit to the NRE/FCNR account of the person concerned or paid by debit to a non-interest-bearing escrow account (in rupees) maintained in India.
Further, the consideration amount can be paid out of the dividend paid by Indian investee company, in which the said non-resident holds control. Such dividends, however, should have been credited to specially designated non-interest bearing rupee account for acquisition of shares on the floor of stock exchange.
RBI has also said that the original and resultant investments have to be in line with the extant FDI policy and FEMA regulations in respect of sectoral cap, entry route, reporting requirement, and documentation.
LURING FOREIGN FUNDS
* NRIs qualify only if they have “acquired and continue to hold control” under Sebi norms
* Foreigners could be treated on a par with FIIs as they get on-market-deal window
* Deals can only happen through a registered broker
* Some experts say step a precursor to fuller convertibility of the rupee
* Share purchase should be paid by inward remittance through banking channels
* Amount can be paid via debit to NRE/FCNR accounts or via debit to non-interest bearing escrow account
Sebi inks info-exchange pacts with 31 European regulators
New Delhi: For a greater oversight of hedge funds and other Alternative Investment Funds (AIFs) with cross-border presence, Sebi has reached regulatory cooperation and information exchange pacts with its counterparts in 31 European countries.
These include Germany, France, Spain, Italy, Luxembourg, Denmark, Cyprus, Greece, Hungary, Norway, Liechtenstein, Belgium, the Netherlands, Portugal, Finland and the UK.
As per the memorandum of understanding (MoU) finalized between Sebi and its European peers, they would be able to "consult, cooperate and exchange information" with regard to the supervision and oversight of AIFs, as also their managers and other related entities.
AIFs include hedge funds, private equity funds, start-up funds, venture capital funds, SME funds, among others.
These MoUs have been finalised at the initiative of the EU region capital markets regulator, European Securities and Markets Authority (ESMA), as part of the European Parliament's Alternative Investment Fund Managers Directive (AIFMD).
The MoUs provide for "ongoing, informal, oral consultations, supplemented by more in-depth cooperation" between Sebi and its 31 European counterparts, as also the written exchange of non-public information whenever necessary.
Besides, the regulators would also facilitate for each other the cross-border on-site visits in connection with their regulatory and supervisory functions.
Under the AIFMD regime, such cooperation agreements have been made necessary for allowing such funds and their managers from outside EU region to access any of the EU market or perform their fund management businesses by delegation from EU-based entities.
The treaties would allow the EU and non-EU authorities will be able to supervise fund managers that operate on a cross-border basis both within and outside Europe. The co-operation would also include mutual assistance in the enforcement of the respective laws.
As per the MoU, "no domestic secrecy, blocking laws or regulations should prevent an authority (Sebi etc) from providing assistance to other authorities", although any of its signatories can deny information on the grounds of the national public interest.
The cooperation are aimed to be most useful in cases like initial application, on-going oversight, regulatory approvals or supervisory actions and enforcement actions with regard to the AIFs and their managers.
Besides, Sebi and its counterparts would need to inform each other about any material event that could adversely impact the covered entity and the overall market. For any forward passage of information received under the MoU, the regulators would need to take a permission from the other party.
These include Germany, France, Spain, Italy, Luxembourg, Denmark, Cyprus, Greece, Hungary, Norway, Liechtenstein, Belgium, the Netherlands, Portugal, Finland and the UK.
As per the memorandum of understanding (MoU) finalized between Sebi and its European peers, they would be able to "consult, cooperate and exchange information" with regard to the supervision and oversight of AIFs, as also their managers and other related entities.
AIFs include hedge funds, private equity funds, start-up funds, venture capital funds, SME funds, among others.
These MoUs have been finalised at the initiative of the EU region capital markets regulator, European Securities and Markets Authority (ESMA), as part of the European Parliament's Alternative Investment Fund Managers Directive (AIFMD).
The MoUs provide for "ongoing, informal, oral consultations, supplemented by more in-depth cooperation" between Sebi and its 31 European counterparts, as also the written exchange of non-public information whenever necessary.
Besides, the regulators would also facilitate for each other the cross-border on-site visits in connection with their regulatory and supervisory functions.
Under the AIFMD regime, such cooperation agreements have been made necessary for allowing such funds and their managers from outside EU region to access any of the EU market or perform their fund management businesses by delegation from EU-based entities.
The treaties would allow the EU and non-EU authorities will be able to supervise fund managers that operate on a cross-border basis both within and outside Europe. The co-operation would also include mutual assistance in the enforcement of the respective laws.
As per the MoU, "no domestic secrecy, blocking laws or regulations should prevent an authority (Sebi etc) from providing assistance to other authorities", although any of its signatories can deny information on the grounds of the national public interest.
The cooperation are aimed to be most useful in cases like initial application, on-going oversight, regulatory approvals or supervisory actions and enforcement actions with regard to the AIFs and their managers.
Besides, Sebi and its counterparts would need to inform each other about any material event that could adversely impact the covered entity and the overall market. For any forward passage of information received under the MoU, the regulators would need to take a permission from the other party.
India, Japan to raise currency swap limit to $50 billion
Mumbai: In a bid to bring stability to the financial markets, the Indian and Japanese Governments have decided to expand their bilateral currency-swap arrangement from $15 billion to $50 billion.
A bilateral currency swap agreement will allow us to pay for imports in these nations’ currencies, rather than in dollars, up to the mutually agreed threshold, according to India Forex Advisers.
Such agreements will help reduce the demand for dollars in the short term and boost exports. This kind of agreement can be an effective hedge against the volatility in the forex markets, and India should only enter into such agreements with countries with which it does not have a big trade imbalance, said the forex advisory firm.
To finalise terms
The Government and the Reserve Bank of India will discuss and finalise the terms of the enhancement in the currency-swap arrangement with their Japanese counterparts.
In December, 2012 a bilateral swap agreement was signed between the Bank of Japan and the Reserve Bank of India for US$ 15 billion. This arrangement, aimed at addressing possible short-term liquidity mismatches and supplementing existing international financial arrangements, is part of the effort to strengthen mutual cooperation between Japan and India.
India Forex Advisors also said the Government should consider investment-led trade with China as it is one of our major trading partners, so that the latter relocates its industry here and imports from India.
A bilateral currency swap agreement will allow us to pay for imports in these nations’ currencies, rather than in dollars, up to the mutually agreed threshold, according to India Forex Advisers.
Such agreements will help reduce the demand for dollars in the short term and boost exports. This kind of agreement can be an effective hedge against the volatility in the forex markets, and India should only enter into such agreements with countries with which it does not have a big trade imbalance, said the forex advisory firm.
To finalise terms
The Government and the Reserve Bank of India will discuss and finalise the terms of the enhancement in the currency-swap arrangement with their Japanese counterparts.
In December, 2012 a bilateral swap agreement was signed between the Bank of Japan and the Reserve Bank of India for US$ 15 billion. This arrangement, aimed at addressing possible short-term liquidity mismatches and supplementing existing international financial arrangements, is part of the effort to strengthen mutual cooperation between Japan and India.
India Forex Advisors also said the Government should consider investment-led trade with China as it is one of our major trading partners, so that the latter relocates its industry here and imports from India.
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