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Issue no 621 I April 28-May 4, 2015
WEEKLY
ECONOMIC
BULLETIN
p. 02/03
ITP Division
Ministry of
External Affairs
Government of India
NEWS FEATURE
Modi calls for fast-tracking infrastructure projects
Prime Minister Narendra Modi on May 2 pushed for fast-tracking all projects that will ensure a modern
infrastructure backbone in the country, as part of the targets set for the 75th year of India’s independence in 2022.
India, Afghanistan vow to work together to fight terror, boost trade
India and Afghanistan on April 28 pledged to work together to fight terrorism and also boost bilateral trade
and connectivity as Prime Minister Narendra Modi held talks with visiting Afghan President Ashraf Ghani in
New Delhi.
More in this section
p. 04/08
OVERSEAS INVESTMENTS
German lending agency to fund Andhra’s green energy corridor
German lending agency KFW and the central government have agreed to fund the proposed green energy corridor in Andhra Pradesh, which is aimed at transforming the state into a renewable energy hub.
US to sell India $96 mn support for C-130J Super Hercules aircraft
The US State Department has approved the sale of $96 million worth of follow-on support for C-130J Super
Hercules aircraft to India to enable the Indian Air Force to remain mission-ready for disaster relief and international humanitarian assistance needs like in quake-hit neighbouring Nepal.
More in this section
p. 09/10
TRADE NEWS
Indians largest non-Arab investors in Dubai real estate market
Indian nationals have emerged the largest non-Arab investors in Dubai’s real estate market, accounting for
property transactions worth 3.040 billion Dhirams ($820.8 million) in the first quarter of 2015.
More in this section
p. 11/15
SECTORAL NEWS
India’s forex reserves touch record high at $345 bn
India’s foreign exchange reserves rose $1.4 billion in the week ended April 24 to touch $344.6 billion, creating a
new record, the Reserve Bank of India said on May 1.
More in this section
p. 16/20
NEWS ROUND-UP
GDP will grow at 7.7% in 2015-16, India Ratings says
The country’s GDP (gross domestic product) would grow by 7.7% in 2015-16, driven by a further pick-up in private consumption demand, India Ratings and Research has said.
More in this section
Issue no 621 I April 28-May 4, 2015
WEEKLY
ECONOMIC
BULLETIN
2
>> NEWS FEATURE
PM Narendra Modi calls for fast-tracking infrastructure projects
Prime Minister Narendra Modi on May 2 pushed for fast-tracking all projects that will ensure a modern infrastructure
backbone in the country, as part of the targets set for the 75th year of India’s independence in 2022.
“Besides a broad overview of the infrastructure scenario in the country, the meeting focused on the specific sectors of rural
infrastructure, power, coal, renewable energy and petroleum and natural gas,” an official statement said after the meeting.
“The prime minister stressed on the need
for government departments to work toward initialising spending of the budget in a
focused manner from the start of the financial year. He was given a detailed overview
of the plans of various ministries for completion of pending projects within the current financial year.”
Against the backdrop of the cabinet recently approving the mission to create 100 smart cities in the country, Mopdi
said one of the priorities for urban areas must be in creation of waste-to-wealth and efficient systems for used water disposal and solid waste management in 500 cities.
“The prime minister also asked for specific data to be collected and presented on priority areas such as toilets, affordable housing and smart cities,” the statement said.
Those at the meeting included Finance Minister Arun Jaitley, Road Transport and Highways Minister Nitin Gadkari,
Communications Minister Ravi Shankar Prasad, Power Minister Piyush Goyal, Petroleum Minister Dharmendra Pradhan,
Railway Minister Suresh Prabhu and Civil Aviation Minister Ashok Gajpati Raju.
In the prime minister’s “Make in India” campaign, a major thrust has been accorded to infrastructure. The value of infrastructure projects ready for procurement this fiscal is estimated at $240 billion, of which half is envisaged through
public-private-partnerships.
These cover roads and highways, ports, power, civil aviation, industrial corridors and railways.
Among some specific interventions made by the prime minister, were on according highest priority to the irrigation
projects, as also electrification of all the remaining villages at the earliest. Renewable energy and adoption of efficient
technologies were also discussed.
Minister Jaitley, while presenting India’s national budget, had said the country had emerged as the largest market for
public-private partnerships in the world with more than 900 projects in various stages of development.
He said this model had delivered some of iconic infrastructure.
Source: Indo-Asian News Service
Issue no 621 I April 28-May 4, 2015
WEEKLY
ECONOMIC
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>> NEWS FEATURE
India, Afghanistan vow to work together to
fight terror, boost trade
India and Afghanistan on April 28 pledged to work together to fight terrorism and also boost bilateral trade and connectivity
as Prime Minister Narendra Modi held talks with visiting Afghan President Ashraf Ghani in New Delhi.
Ghani, whose country continues to battle the Taliban menace after the drawdown of the US-led international forces, spoke
out strongly against terrorism.
“Terror must be confronted and must be overcome... we are determined to make Afghanistan the graveyard of terror.”
Ghani, who arrived here on Monday night on a three-day official
visit, pushed for a regional framework of peace and cooperation in
order to fight the “disease of terror” and cure it “lock, stock and
branch”.
“Terror cannot be classified into good and bad, it cannot be differentiated. We must have a unified approach, and we must be
united in the region and globally to contain the phenomenon.”
The joint statement noted that there is no justification for acts of
terrorism and both leaders expressed determination to work together, along with the international community, to combat and defeat the scourge of terrorism in all its forms and manifestations.
They called on the international community to severely deal
with the safe havens for terrorists that continue to threaten regional and global security.
Prime Minister Modi, in his speech, said that the success of an
Afghan-led and Afghan-owned process “requires a positive and
constructive approach from neighbours, including an end to support for violence” - in a reference to Pakistan, where the Taliban are
believed to be harboured along the border.
“We share Afghanistan’s pain over persisting terrorism and extremist violence that destroy lives and derail progress,” he said,
and also thanked Ghani for the bilateral cooperation against terrorism.
Modi said that India is ready to walk “shoulder to shoulder” with Afghanistan and also backed Ghani’s vision of making
Afghanistan the hub of connectivity in the region.
Both sides reaffirmed their commitment to work towards strengthening the India Afghanistan Strategic Partnership “with
a clear focus on the long term relationship between the two countries,” the joint statement said.
Modi said India is ready to welcome Afghan trucks at the Attari check post and also join the Afghan-Pakistan Trade and
Transit Agreement. He also pledged to take the Chahbahar Port project in Iran forward.
India will expand its development partnership in Afghanistan and also explore new trade and investment opportunities, he
added. Both sides also agreed to to work towards a more liberalized business visa regime.
Stressing that India and Afghanistan are “bound by million ties through millennia”, Ghani spoke of the need to boost the
potential of the South Asian Association for Regional Cooperation (SAARC).
Issue no 621 I April 28-May 4, 2015
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>> OVERSEAS INVESTMENT
He said his vision was to recreate his country’s position as a “roundabout” where ideas, people and goods from South and
Central Asia came, merged and transited. Afghanistan would be a place where the energy of Central Asia will flow to South
Asia, as well as pipelines, fibreoptics and connectivity, he said.
Citing Rabindranath Tagore’s iconic “Kabuliwala”, he said he wanted to thank the Nobel laureate who has “done more to
give us a brand” than any advertisement could ever bring. Expressing delight that novel continues to be popular in India, he
said that a “new version is being prepared to give a much more authentic setting inside Afghanistan”.
Ghani welcomed India’s decisions to provide support to the Habibia School, located in Kabul over the next 10 years, contribution to the Afghan Red Crescent Society’s program to treat Child Congenital Heart disease (CHD disease) over the next five
years, and support a program of the ‘Indira Gandhi Institute of Child Health (IGICH) in Kabul over the next 5 years,said the
statement.
He also thanked India for gifting of three multi-role Cheetal helicopters in April 2015.
The two leaders agreed to sign six documents within three months of the visit, including an extradition treaty and an
agreement on transfer of sentenced persons, a Motor Vehicles Agreement and a MOU on visa free entry for holders of diplomatic passports.
Ghani also invited Modi to Kabul for the inauguration of the parliament building being built by India as well as to the
Bamiyan valley.
Source: Indo-Asian News Service
Govt steps to boost growth to 9-10%: FM
Initiatives being taken by the government to boost investments and introduce tax reforms will lead to 9-10 per cent economic growth in the coming years, Union Finance Minister Arun Jaitley said on April 30.
“The cumulative impact of these (initiatives), I believe, will increase our capacity to grow more than nine per cent,” he
said in an interview to Doordarshan.
Significant work is being done in the infrastructure as
well as agriculture sectors and the government is making
special efforts to tackle farmers issues, particularly irrigation, he added.
Jaitley said the government has created a transparent
environment and has given up discretionary powers to
dole out incentives to corporates.
“We do not hear the word corruption in this government.
If you have spectrum, coal, mine reserves, auction them...
The money that comes from auctioning of coal and mines
go to the states from where the reserves were generated.”
Indian economy is expected to grow at 8-8.5 per cent in
the current financial year, up from the estimated 7.4 per
cent for the previous financial year.
The draft code on industrial relations has proposed to amalgamate three labour laws including The Trade Unions Act,
1926, The Industrial Employment (Standing Orders) Act, 1946 and The Industrial Disputes Act, 1947.
Firms employing up to 300 workers would be permitted to lay them off without prior govt approval, as against the current threshold of 100 workers.
Source: Press Trust of India
Issue no 621 I April 28-May 4, 2015
WEEKLY
ECONOMIC
BULLETIN
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>> OVERSEAS INVESTMENT
German lending agency to fund Andhra’s
green energy corridor
German lending agency KFW and the central government have agreed to fund the proposed green energy corridor in
Andhra Pradesh, which is aimed at transforming the state into a renewable energy hub.
KFW has communicated to the state government that it
will sanction Rs.500 crore at a concessional rate of interest.
According to the State Energy Conservation Mission, the
union power ministry will provide Rs.515 crore to develop
the Rs.3,500 crore green energy corridor.
Ajay Jain, secretary for energy, industries and infrastructure, said on Sunday that the green corridor would be
developed to support the upcoming solar and wind projects with an initial cost of about Rs.1,289 crore.
The state is making efforts to secure necessary funding
with the support of the centre and international financial
institutions.
The AP Transco and Discoms would initiate steps soon
to mobilise the balance investments from the Power Finance Corporation (PFC) and the Rural Electrification Corporation
(REC).
The government plans to turn the state into a renewable energy hub in the country in the next four years. As part of this
plan, it has set a target of 5,000 MW solar power and 4,000 MW wind power by 2019.
Andhra Pradesh, which claims to be the number one in the country in the area of energy efficiency and energy conservation within the short span of over 10 months, will constitute a taskforce for expediting the renewable energy projects.
Jain said the state had also initiated measures to develop the world’s biggest solar park with a capacity of around 2,500
MW, with support of the central government, public undertaking sectors like the National Thermal Power Corporation
(NTPC), NVVL, and the ministry of new and renewable energy (MNRE).
It is also contemplating to develop 1,000 MW solar power parks in the districts of Anantapur, Kadapa and Kurnool.
The solar park will have various zones for solar power projects, manufacturing, research and development and training
centres.
The state will extend all facilities and fiscal incentives provided by central government/National Solar Mission to the
manufacturers.
A Special Purpose Vehicle will be established for development of infrastructure and management of the solar park.
Source: Indo-Asian News Service
Issue no 621 I April 28-May 4, 2015
WEEKLY
ECONOMIC
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>> OVERSEAS INVESTMENT
US to sell India $96 mn support for C-130J
Super Hercules aircraft
The US State Department has approved the sale of $96 million worth of follow-on support for C-130J Super Hercules aircraft to India to enable the Indian Air Force to remain mission-ready for disaster relief and international humanitarian assistance needs like in quake-hit neighbouring Nepal.
Pentagon’s arm handing foreign military sales notified
the US Congress of this possible sale to India last week
saying the “proposed sale of this equipment and support
will not alter the basic military balance in the region.”
“This proposed sale of additional equipment and support will enable the Indian Air Force to sustain a higher
mission-ready status for its C-130J fleet,” the US Defence
Security Cooperation Agency (DSCA) said.
India needs this support for its Super Hercules aircraft
to ensure its aircraft operate effectively to serve its transport, local and international humanitarian assistance, and
regional disaster relief needs, the agency said.
India, it said has requested for follow on support for five
years for their fleet of C-130J Super Hercules that includes 8 spare AN/ALE-47 Counter-Measures Dispensing Systems
and 6 spare AN/ALR-56M Advanced Radar Warning Receivers.
It also wants to buy up to 9,000 flare cartridges, spare and repair parts, configuration updates, support and test equipment, publications and technical data, technical services, personnel training and training equipment.
“This proposed sale will contribute to the foreign policy and national security of the United States by helping to
strengthen the US-India strategic relationship,” DSCA said.
It would also help “improve the capabilities of a major South Asian partner which has been, and continues to be, an important force for economic progress and stability in South Asia.”
The principal contractor will be the Lockheed-Martin Company in Marietta, Georgia, DSCA said.
There are no known offset agreements proposed in connection with this potential sale, it said.
The proposed sale will also not require the assignment of any additional US Government or contractor personnel to
India.
There will be no adverse impact on US defence readiness as a result of this proposed sale, DSCA said.
Source: Indo-Asian News Service
Issue no 621 I April 28-May 4, 2015
WEEKLY
ECONOMIC
BULLETIN
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>> TRADE NEWS
Indians largest non-Arab investors in Dubai
real estate market
Indian nationals have emerged the largest non-Arab investors in Dubai’s real estate market, accounting for property transactions
worth 3.040 billion Dhirams ($820.8 million) in the first quarter of 2015.
The Dubai Land Department’s (DLD) annual report said a total of 11,603 real estate transactions in the emirate in the first
quarter of 2015 exceeded 64 billion Dhirams ($17.28 billion).
The total value of non-Arab investments in Dubai real estate market’s amounted to more than 12 billion Dhirams.
“Indian nationals were ranked the highest value
foreign investors, making a total of AED 3.040 billion worth of property transactions through 1293 investors,” the DLD said in a statement. It did not give
details of the Indian investors.
Pakistani nationals came in second among nonArab investors, with a total of 953 transactions
worth 1.392 billion Dhirams. British investment
came third at 1.892 billion Dhirams through 699 investors.
They were followed by Iran and Russia with totals of 633 million Dhirams and 509 million Dhirams.
The DLD report stated that total value of transactions had increased by 3 billion Dhirams over the
same period last year. A total of 1,964 investors from the Gulf Cooperation Council (GCC) states accounted for investments worth
9 billion Dhirams.
The agency said this increase was “proof of sustainable growth” as sales accounted for 8,000 transaction worth 24 billion Dhirams while mortgages accounted for more than 37 billion Dhirams.
Sultan Butti Bin Mejren, director general of DLD, said: “The figures in this report are showing a well-established trust in our real
estate market, as well as full preparations and readiness with for quantum leaps in the next few years.”
Source: Hindustan Times
Issue no 621 I April 28-May 4, 2015
WEEKLY
ECONOMIC
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>> TRADE NEWS
India, Japan sign action agenda to boost
trade, investment
India and Japan on April 30 signed a five-point action agenda to increase bilateral trade and investment.
The five-point agenda includes development of selected townships in India as Japanese industrial townships, promotion of investment and infrastructure development, further development and cooperation in IT sector, enhancing cooperation in strategic
sectors and Asia-Pacific economic integration.
Commerce Minister Nirmala Sitharaman and visiting Japanese Trade and Industry Minister Yoichi
Miyazawa signed the agenda agreement.
“Signing of the action agenda is in line with Prime
Minister Narendra Modi’s vision of ‘Make in India’,”
said Sitharaman, according to a commerce ministry
release. “I believe that agreements in these agendas
are a historic milestone in the economic relations
between India and Japan. I hope that India and
Japan can move as one. We will take action and
make progress in these areas,” Miyazawa said.
According to Sitharaman, the interaction with her Japanese counterpart involved not only both the countries but also had a
partnership and dialogue component involving business delegations of both countries.
Bilateral trade stood at $16.29 billion in 2013-14. Between April 2000 and February 2015, India has received $18 billion as foreign direct investment from Japan.
Source: Indo-Asian News Service
India, Bangladesh agreement on HYV rice
seeds trade
Seed associations of India and Bangladesh on April 30 signed a cooperation agreement to initiate cross-border trade in high-yielding variety (HYV) rice seeds that will also enable knowledge-sharing in their production and trade.
A Memorandum of Understanding for this purpose was signed here between the Bangladesh Seeds Association and the National Seed Association of India.
There is currently no formal trade between both countries in HYV rice seeds, but there much movement through informal
channels in this low-value, high-volume trade that is nevertheless of importance to the food security of the region.
While a protocol has been recently signed between India, Bangladesh and Nepal creating the possibility for the release of seed
varieties developed by one country in others, Thursday’s MoU marks a definitive step closer to formalisation of rice seeds trade
and knowledge-sharing. The MoU event saw the report dissemination of a two-year-long research and advocacy project by CUTS
International on “Addressing barriers to rice seeds trade between India and Bangladesh” carried out with support of the Bill &
Melinda Gates Foundation. “This is an attempt to make the informal trade in rice seeds legal. Since varieties released in India are
notified, the attempt is to harmonise the notifications with Bangladesh and Nepal,” Rajesh Kumar Singh, joint secretary (seeds) in
the agriculture ministry told IANS on the sidelines of the event.
“This way we’ll end up saving three years that is otherwise taken up by trials. We have tried to regulate more of this trade so
that farmers in both countries have access to better quality seeds,” he added.
“The situation calls for analysing factors that can enable the formalisation of rice seeds trade and knowledge-sharing,” Deputy
High Commissioner of Bangladesh Salahuddin Noman Chowdhury said in his address.
Source: Indo-Asian News Service
Issue no 621 I April 28-May 4, 2015
WEEKLY
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>> SECTORAL NEWS
India’s forex reserves touch record high
at $345 bn
India’s foreign exchange reserves rose $1.4 billion in the week ended April 24 to touch $344.6 billion, creating a new
record, the Reserve Bank of India said on May 1.
The rise in exchange reserves was mainly on account of a
$1.4 billion jump in the foreign currency assets (FCAs) which
stood at $320 billion, data released by the RBI showed.
The forex reserves in the previous week had increased by
$2.788 billion to $343.2 billion. Foreign exchange reserves have
increased by close to $25 billion since January as overseas investors poured in dollars in the local debt and equities market
buoyed the hope of economic revival.
The country’s gold reserves remained stable at $19.03 billion in the week in question.
The special drawing rights (SDRs) with the International
Monetary Fund were marginally up by $0.2 million to $4 billion,
while the country’s reserve position with the IMF remained stable at $1.29 billion.
Meanwhile, expressing concerns over the volatility of the rupee, Finance Minister Arun Jaitley said on Friday that
India’s currency has remained stable against the US dollar in the last few months mainly because of the forex reserves.
“Indias forex reserves and laws to avert flight of curency have supported the rupee,” he said at the foundation day celebrations here of the Enforcement Directorate.
Source: Indo-Asian News Service
Government hikes FDI limit in pension
sector to 49 percent
The Indian government on April 27 raised the limit of foreign direct investment (FDI) in the pension sector to 49 percent
in line with the FDI cap raised recently in the insurance sector.
“In pursuance of the enactment of Insurance Regulatory & Development Authority Act, 2013, government has decided
to permit FDI in the pension sector. The decision will take immediate effect,” said the press note through which the department of industrial policy and promotion (DIPP) gives effect to new FDI policies or changes in existing ones.
The FDI ceiling in the sector has been hiked to 49 percent which includes foreign investment in the forms of FPI, FII,
QFI, FVCI, NRI and DR.
No government approval is required till 26 percent, but the Foreign Investment Promotion Board (FIPB) approval
would be needed for investment beyond 26 percent and up to the cap of 49 percent, the press note said.
All investments in the pension sector, however, will have to abide by the pension sector regulator the Pension Fund
Regulatory and Development Authority (PFRDA).
Through an ordinance in December last year, the government had allowed 49 percent FDI. The ordinance was later
converted into law by parliament.
Source: Indo-Asian News Service
Issue no 621 I April 28-May 4, 2015
WEEKLY
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>> SECTORAL NEWS
Jewellery export might hit 4-year high
in FY16
Jewellery exports from India are likely to hit a four-year high, crossing $40 billion, in the current financial year on robust
American demand.
Also expected is a rise in demand for gold ornaments in West Asia and Turkey. The Gems and Jewellery Export Promotion Council (GJEPC) has fixed a
target of $43 billion this year.
India’s shipment of precious stones and value-added
ornaments grew 3.7 per cent in 2014-15 at $36.2 billion, of which gold jewellery was $6.2 bn. A staggering
jump of 77.9 per cent in gold ornament export is attributed largely to promotional activities in West Asia and
Turkey.
“Exports of studded, gold-plated colour stones and
silver ornaments are likely to post a very good growth,”
said Shah.
Gems and jewellery are 13 per cent of Indian merchandise export. India processes 11 of every 13 diamonds in the world.
“We expect diamond and gold jewellery to record
seven to nine per cent growth this year,” said Shreyas
Doshi, chairman, Shrenuj & Co, one of the country’s largest jewellery exporters.
America constitutes around 42 per cent of world jewellery consumption and around 40 per cent of India’s overall gem
and jewellery export goes there.
“China had taken up some of India’s market shares in the past few years. But, the increasing cost of labour has made
exports from China more expensive than India,” said Mehul Choksi, managing director of Gitanjali Gems, which runs a little over 100 retail shops there.
Indian jewellers have taken several initiatives to promote gold and diamond ornaments. Apart from frequent bilateral
meets, they’ve also successfully made a dent in the Latin American market, set to fetch good volume this year.
A delegation led by GJEPC Vice-Chairman Deepak Parekh is currently on tour to Panama and is later to go to Mexico
and Brazil, to explore opportunities in these markets.
Source: Business Standard
Issue no 621 I April 28-May 4, 2015
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>> SECTORAL NEWS
‘Defence exports have risen in past
6 to 8 months’
The Make in India campaign would have increased India’s defence exports over the past six to eight months, Defence Minister Manohar Parrikar said on May 4.
Parrikar was speaking to reporters here during a two-day visit to the state.
“Actual export figures will come after some time,” Parrikar said, when asked if measures taken by his ministry to boost
defence-related export had worked.
“Many of the items from defence ministry list have been delisted, export has been opened...During last six-eight months
the export NOCs are being granted online. There is no complaint...Earlier NOCs used to take months to be given; now we
give them within specified time frame. I have been intimated by
the industry itself that they have been getting the export NOC
within the time, in fact, faster than they expect,” Parrikar said.
Parrikar also said that the Make In India policy was the highlight of the defence procurement procedure, under which 49
percent foreign direct investment was permitted in the defence
sector and on a case to case basis, the FDI could go up even up
to 100 per cent.
He also said that currently the global component in defence
procurement was a small one, and the majority of the items
were made in India.
Parrikar also said that de-listing of nearly two-thirds of the items from the defence ministry list had encouraged manufacture and free trade in the sector.
“When we deleted some items, they became free-to-export, and freely tradable...So the restrictions of requirement of
Defence NOC were automatically withdrawn. Almost two-third items have been removed from the list, so now you have
more items which you can freely manufacture and export,” Parrikar said.
Source: Indo-Asian News Service
Issue no 621 I April 28-May 4, 2015
WEEKLY
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>> SECTORAL NEWS
Jharkhand, NTPC ink 4,000 MW power
expansion agreement
Jharkhand and National Thermal Power Corporation (NTPC) on May 3 signed an MoU for a 4,000 MW capacity expansion of
the Patratu Thermal Power Station in Ramgarh district through the formation of a joint venture company.
The memorandum of understanding was signed in
the presence of union Power Minister Piyush Goyal
and Jharkhand Chief Minister Raghubar Das here.
According to the Jharkhand government, the official name of the proposed venture is Patratu Vidyut
Utpadan Nigam Ltd.
As part of the joint venture, NTPC will hold 74 percent share in the new holding company while the
Jharkhand government will have 26 percent.
The company will set up the 4,000 MW (800
MWx5) expansion in different phases using 1,850
acres of land out of the existing 6,300 acres.
The first phase of the expansion, which would be
completed in 2019-20, would be composed of three
units of 800 MW (2,400 MW) while the second phase,
which would be completed by 2024, would comprise two units of 800 MW (1,600 MW).
The company will also renovate several units of the power plant.
The state government would provide land, water and coal for the plant.
Speaking on the occasion, Chief Minister Raghubar Das said: “Jharkhand will become self sufficient in power sector in
next five years. The ‘Make in India’ programme would not be successful without Jharkhand. Jharkhand will emerge as
prosperous state in the next ten years.”
Source: Indo-Asian News Service
Issue no 621 I April 28-May 4, 2015
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>> SECTORAL NEWS
ISRO successfully tests indigenous
cryogenic engine with four-tonne capacity
The Indian Space Research Organisation (Isro) successfully tested an indigenous cryogenic engine on April 29 which will
allow launch vehicles to carry satellites of up to four tonnes.
Congratulating the scientists on the successful testing, Prime Minister Narendra Modi said on Twitter, “The engine tested
today will enable us to put satellites of up to 4 tons in geostationary orbit. A proud accomplishment.”
Although the Geosynchronous Satellite Launch Vehicle (GSLV Mark III) successfully launched an unmanned capsule that
could be used for manned missions in December, it had a passive cryogenic stage.
While GSLV Mark III is India’s largest launch vehicle, carrying up to four-tonne vehicles will only be possible with a cryogenic engine with the capacity.
India has till now been dependent on foreign launch vehicles to send heavier satellites to the required orbits.
“There was a special test set up in Mahendragiri to see if the engine developed the exact thrust required to launch payloads of that weight. It succeeded,” an Isro spokesperson told Mint on the phone.
“Now we’ll have to prove if this engine can be used in a launch vehicle,” the spokesperson added. Mahendragiri in Tamil
Nadu is home to the Isro Propulsion Complex, where cryogenic engines are tested.
India has been on a long arduous journey to develop an operational indigenous cryogenic engine which began around 30
years ago. The first success came in January last year, when India successfully launched GSLV-D5, marking the first successful launch of a vehicle with an indigenous cryogenic engine. But India at present can only launch satellites of up to two
tonnes.
Source: Mint
Flipkart acquires Appiterate to
strengthen mobile app presence
Indian e-commerce portal Flipkart said it has acquired Delhi-based mobile engagement and marketing automation company Appiterate for an undisclosed amount.
“Flipkart has been persistently looking to improve and expand its mobile
app capabilities to cater to the shifting preferences on its user base,” the
company said in a statement.
After the completion of the acquisition, Appiterate’s mobile marketing
automation platform will be integrated into Flipkart’s mobile app.
Talking over the acquisition, senior director of corporate development at
Flipkart, Nishant Verman said: “In a short span of 1.5 years, Appiterate has
carved out a niche in the industry as being one of the most disruptive companies in its space. We are confident that their innovative platform and tech
team will bring deep mobile capabilities to the table which is a key focus
area for Flipkart”.
Appiterate started as an A/B testing product for native mobile apps
which later on expanded into a full-fledged mobile marketing automation platform, based on huge market demand.
The company, in the past, has helped leading e-commerce companies combine the power of mobile apps and big data to
allow them to do one-on-one targeting of their users though push notifications and in-app messages.
Source: Indo-Asian News Service
Issue no 621 I April 28-May 4, 2015
WEEKLY
ECONOMIC
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>> NEWS ROUND UP
GDP will grow at 7.7% in 2015-16, India
Ratings says
The country’s GDP (gross domestic product) would grow by 7.7% in 2015-16, driven by a further pick-up in private consumption demand, India Ratings and Research has said.
Consumption demand is expected to expand 8.1% in 2015-16 compared to 7.1% in 2014-15 and 6.2% in 2013-14. The
economy is estimated to have clocked 7.4% growth in 2014-15.
“A significant moderation in inflation and inflationary expectations is likely to boost consumer
sentiments, albeit gradually,” the agency said.
The share of private consumption demand in
GDP is around 60%. “Even investment and government expenditure would provide adequate support
to consumption-led GDP growth,” it said.
India Ratings, which is part of the Fitch Group, expects that agricultural growth will touch 2.1% in
2015-16.
“Although much would depend on the spatial/geographical distribution of rain during the monsoon
season, the agricultural growth could be lower in
case of a sub-normal monsoon,” the agency noted.
A sustained government focus on ‘Make in India’
and ‘ease of doing business’ and the successful auction of coal mines could push the industrial growth to 6.5% in 201516 compared to 5.9% in the previous fiscal.
India Ratings expects that both wholesale price index (WPI) and consumer price index (CPI) based inflation will moderate to 2.4% and 5.6%, respectively in 2015-16.
Retail and WPI inflation declined to 5.2% and negative 2.3% respectively in March. Moderation in inflation and inflationary expectations prompted the Reserve Bank of India (RBI) to cut the repo rate by 25 bps (0.25%) each on January 15
and March 4.
India Ratings expects that RBI will cut the repo rate by another 50 bps (0.5%) by the end of 2015-16.
Although the unseasonal rains in March and less-than-normal monsoon in 2015 can up the risk of food inflation, soft
global commodity as well as crude prices and low growth in the minimum support price of food grains would keep the
inflation within the glide path of RBI, the agency stated.
The fiscal deficit target of 3.9% for 2015-16 is achievable because the projection of government’s earning and expenditure for the year is moderate, it said. India, a net commodity importer, benefited considerably from the fall in global
commodity prices, especially crude in 2014-15.
Even in 2015-16, the country is likely to reap this benefit, in view of soft crude prices, India Ratings said. As a result,
current account deficit for the fiscal could decline to 1% of the GDP from 1.1%, it estimated.
Source: The Times of India
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Manufacturing PMI up in April
India’s manufacturing activities, now a focus area for the government at the Centre, saw a moderation in growth in April
when compared with the previous month, because of lower new orders, showed the widely tracked HSBC Purchasing
Managers’ Index (PMI).
As expansion in new orders slowed, firms did not increase output much and reduced hiring.
Manufacturing PMI in April fell to 51.3 points from 52.1 in March.
But it was higher than the 51.2 points in February.
A PMI reading above 50 shows expansion while one below that implies contraction. This was, however, 18th straight
month of expansion in the country’s manufacturing activities.
“Following the solid readings seen in March, the Indian manufacturing economy recorded a slowdown in growth during April. Total new orders increased at a weaker rate and, as a result, companies reduced staffing levels and raised output to a smaller degree,” Markit Economics, which compiles PMI data, said.
The PMI data came at a time when official data showed output of eight crucial industries, with a weight of almost 38
per cent, declined for the first time in 17 months in March.
Markit Economics further said a slowdown in expansion of manufacturing activities reflected a softer increase in order
book volumes. Higher output was recorded across categories, with growth strongest for capital goods firms and slowest
for the consumer goods sub-sector.
New order volumes continued to rise in April, marking an 18-month expansionary sequence. That said, the rate of
growth moderated since March, with data pointing to softening domestic demand and competitive pressures.
Surprisingly, Markit Economics said demand from external markets remained strong, as the level of new export orders increased at a solid pace that was unchanged since the previous month. This is not in sync with export performance
so far. In March, the country’s merchandise exports fell for a fifth month in 2014-15.
However, the PMI survey pointed to interested developments related to exports — companies reported greater inflow
of new business from key export clients, particularly from those operating in Asia.
Pollyanna De Lima, economist at Markit, said: “A highlight of the latest survey was the strong external market, with
the rise in new export business remaining solid.”
Source: Business Standard
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Mukesh Ambani back on top as richest
Indian in Forbes list
Reliance Industries chairman Mukesh Ambani on April 27 regained his position as the world’s richest Indian with a net
worth of $19.6 billion, pushing Sun Pharmaceuticals founder Dilip Shanghvi back to the second place after seven weeks.
With a fall of $100.1 million in his net worth, Ambani slipped from his 39th position in the Forbes 2015 ranking to the
47th position among the world’s billionaires, while Shanghvi ($19.3 billion) with a much greater loss of $474.6 million fell
to the 48th position from the 44th.
In a ‘real time’ update, the US business magazine
noted that Shanghvi’s net worth dip was the third
biggest loss among the world’s billionaires in its annual
rich list.
Ambani and Shanghvi remain the only two Indians
among the top 50.
In the annual list released on March 2, Forbes had
ranked Ambani as the richest Indian for the eighth consecutive year.
In the global list, Ambani with a net worth of $21 billion was ranked 39th while Shanghvi was at the 44th
place with $20 billion, based on share prices and exchange rates as on February 13.
However, Shanghvi overtook Ambani as the richest
Indian after two days on March 4 with a sharp rally in
the valuation of Sun Pharma.
Globally, Microsoft co-founder Bill Gates continues to top the list with a current net worth of $80.3 billion, up from
$79.2 billion in the annual list with Carlos Slim Helu and Warren Buffett retaining their second and third ranking, respectively.
According to real-time update, Ambani (47) and Shanghvi (48) are followed by Azim Premji (60), Lakshmi Mittal (85),
Shiv Nadar (94), Kumar Mangalam Birla (169), Uday Kotak (200), Sunil Mittal (204), Cyrus Poonawala (220) and Gautam
Adani (238) among the top 10 richest Indians.
Source: Indo-Asian News Service
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Smart Cities offer largest potential area
for US investment: Envoy
Describing Prime Minister Narendra Modi’s “100 Smart Cities” as an area with “seemingly unlimited potential”, US envoy
to india Richard Verma on April 28 said the initiative is a “largest” potential area for US investment and commercial cooperation.
Addressing the annual general meeting of the American Chamber of Commerce in India, Verma sought to develop a
symbiotic relationship between US businesses and the US government that could
work together to address challenges in way of becoming India’s “best” partner, as
per US President Barack Obama’s vision. “Cooperation on infrastructure development and Prime Minister Modi’s ‘Smart Cities’ initiative” are “two of the largest potential areas for US investment and commercial cooperation”.
The US envoy said the recent high-level visits from the US and India have shown
that both sides recognise that in the century to come, a robust US-India partnership can achieve better results than acting alone.
“Times like these show just how true that is,” he added.
With the strategic-plus partnership, Verma said, the two countries are expanding the scope of relationship by supporting cooperative effort in over 70 areas,
ranging from space to vaccines. He noted that “our bilateral trade in goods and
services finally crossed that elusive $100 billion threshold last year and now
stands at approximately $103 billion”.
“We stand ready to work with our Indian counterparts to increase that mark to
$500 billion,” he added.
The recent Transportation Memorandum of Cooperation between the two countries deepened cooperation on items
like road safety and includes important new activities related to the development of Smart Cities and sustainability, he
said.
“On Smart Cities, we will look at intelligent transportation systems, multi-modal planning, livability, and infrastructure
financing. On sustainability, we agreed to cooperate on vehicle fuel efficiency standards and promotion of dedicated
freight corridors to facilitate the movement of goods from India’s ports to major cities of the region,” Verma said.
Impressing on “Shared Effort, Progress for All”, the vision in common between Modi and Obama, the envoy said expanding the strategic dialogue to include a specific commercial focus would be an “excellent” way to prioritize key issues
and activities of mutual interest. “We are therefore formalizing the involvement of our commerce secretary and India’s
commerce minister in a newly reconstituted Strategic and Commercial Dialoguea to engage in productive, two-way trade
and investment that supports jobs in both countries,” he said.
“As India grows, so will its needs, not just in infrastructure, but also in health, education, energy, and other areas. The
US government and industry can play a leading role in helping India manage this unprecedented growth,” Verma added.
Three Memoranda of Cooperation have also been signed designating leading roles for US industry in smart city projects in Vizag, Ajmer and Allahabad, Verma highlighted.
The US also praised India for its “global leadership” by managing crisis internationally.
“India has demonstrated its global leadership in recent weeks, first in Yemen and now in Nepal. We are grateful; we
are impressed; we are inspired,” he said.
Verma also expressed grief, and condoled deaths in Nepal due to massive earthquake.
Source: Indo-Asian News Service
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‘IIT Bombay best technical institute in
India, Delhi University top varsity’
IIT Bombay has emerged as the best technical institute in India and one among the top 100 worldwide according to subject-wise ranking by Quacquarelli Symonds (QS), a leading world university ranking agency.
Delhi University topped the 20 leading Indian varsities which featured in the ranking list, bagging the 17th position in
the world for its performance in Development Studies, as per QS University World Rankings by Subject released in April
30. Nine Indian institutions are listed in the top 100 within
nine disciplines, a statement issued by the agency said.
“Indian universities display increased international competitiveness in the top 100 with a stronger presence
across the subjects,” it said.
According to the ranking list, IIT Bombay is the most
prevalent Indian institute, appearing in the top 100 for
eight subjects – Statistics and Operational Research; Material Science; Mechanical, Aeronautical & Manufacturing
Engineering; Electrical and Electronic Engineering; Civil
and Structural Engineering; Chemical Engineering; Computer Science and Information System; Art and Design.
“IIT Delhi appears in the top 100 for Civil and Structural Engineering, Electrical & Electronic Engineering,
Mechanical Aeronautical and Manufacturing Engineering
and Computer Science and Information System,” the statement said.
In Art and Design, Shanmugha Arts Science Technology and Research Academy in Thanjavur has been ranked among
the top 100, while Indian Institute of Science is in the top 100 for Material Science and Electrical & Electronic Engineering.
Also in the top 100 is the IIT Kharagpur within Material Science, Civil and Structural Engineering, Electrical and Electronic Engineering, and Mechanical Engineering. The IIT Madras ranks in the top 100 within the disciplines of Mechanical,
Engineering, Electrical and Electronic Engineering and Civil and Structural Engineering.
QS World University Rankings are annual university rankings published by British Quacquarelli Symonds (QS). This is
the fifth QS World University Rankings by Subject. “India secures 107 places across the 36 subject tables,
Including the six new disciplines for 2015 – Architecture, Arts and Design, Business Studies, Dentistry, Development
Studies and Veterinary Science,” the statement said.
“Of those places, 37 have moved downwards compared to 2014, 44 have maintained the same position, seven have
gone up and 19 are new entries,” it added. On DU’s ranking, the university’s spokesperson Malay Neerav said, “This is a
reflection of the progress made by DU in last four years where it has been continuously ranked number one among Indian universities and our rankings have improved in several disciplines. We are committed to securing a better ranking in
future”.
Source: Press Trust of India
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