ECONOMY - 2014 SEPTEMBER

September 1

India will get $50 billion from Japan over the next five years (2019 - 20).
* This includes for developmental projects, including building of smart cities and next generation infrastructure as also cleaning of the Ganga.
* Shinzo Abe expressed his intention to realise 3.5 trillion Yen (Rs. 2,10,000 crore, $35 billion) of public and private investment and financing from Japan, including Overseas Development Assistance (ODA).
Dedicated Freight Corridors
* Sanctioned Dedicated Freight Corridors

Corridor

Connecting

Distance

Sponsored

Western Dedicated Freight Corridor

Dadri, Uttar Pradesh to Jawaharlal Nehru Port, Mumbai

1,468 km

Indian Railways & India

Eastern Dedicated Freight Corridor

Ludhiana, Punjab to Dankuni, West Bengal

1,760 km

Indian Railways & India

* Under process

Corridor

Connecting

Distance

Sponsored

Bangalore - Chennai

Bangalore - Chennai


Japan & India

Bangalore - Mumbai

Bangalore - Mumbai


UK & India

Mumbai - Delhi

Mumbai - Delhi

1483 km

Japan

Amritsar Delhi Kolkata Industrial Corridor

Amritsar, Delhi and Kolkata


World Bank

* Planned Dedicated Freight Corridors

Corridor

Connecting

Distance

Sponsored

East - West Dedicated Freight Corridor

Kolkata and Mumbai

2,000 km

Yet to be cleared

North-South Dedicated Freight Corridor

Delhi and Chennai

2,173 km

Yet to be cleared

East Coast Dedicated Freight Corridor

Kharagpur with Vijayawada

1,100 km

Yet to be cleared

South-West Dedicated Freight Corridor

Chennai and Goa

890 km

Yet to be cleared

CAD narrows sharply to 1.7 per cent in first quarter.
* The lower Current account deficit (CAD) was primarily on account of a contraction in the trade deficit contributed by both a rise in exports and a decline in imports.
* CAD narrowed sharply to USD 7.8 billion (1.7 per cent of GDP) in the first quarter of the 2014 - 15 fiscal, from USD 21.8 billion (4.8 per cent of GDP) in the year-ago period.

Tata Consultancy Services (TCS), HCL Technologies and HDFC Bank are among the 50 best public companies in Asia-Pacific according to acompilation by Forbes.
* And also it ranked India second behind China as home to the world's next growth engines.
* The Forbes 2014 'Honour Roll of the Fabulous 50' lists best of Asia-Pacifics biggest publicly traded companies.

September 2

Govt relaxes onion import norms.
* In light of public concern over high prices of onion in the market, Government on Monday relaxed the import norms of onion by allowing fumigation in India up to 30th of November this year.
* According to the Ministry of Agriculture, consignments of imported onions, which arrive in Indian ports without fumigation and endorsement, will be fumigated in the country by the importer through an accredited treatment provider.
* It said that the consignments will be inspected thoroughly by quarantine officials and released only if found free from pests and diseases of concern to India.

Snapdeal to sell stamp collections, ties up with India Post.
* World's largest postal service India Post has tied up with online marketplace firm Snapdeal to sell stamps to reach out to larger audiences.
* Under the partnership, targeted especially at philately enthusiasts, Snapdeal will sell stamps and collections priced between Rs. 300 - 5,500.
About India Post Stamps:
* The first India Postage Stamps were issued in 1854, which bore the inscription 'India Postage'.
* The first independence stamps, issued in 1947 (three in number), depicted the Ashoka Pillar, the Indian National Flag and an Aircraft.

September 4

Finance Ministry sets up panel on unclaimed PPF, small savings deposits.
* Finance Minister Arun Jaitley has set up a committee, under Reserve Bank of India (RBI) Deputy Governor H.R. Khan, to assess the amount of unclaimed deposits in the popular Public Provident Fund (PPF) and Post Office saving schemes, and suggest steps for utilisation of funds for the benefit of senior citizens.
* Members of the committee will include Secretary (Department of Post), Joint Secretary (Law Ministry and Budget Division in Finance Ministry), State Bank of India (SBI) Deputy MD and Punjab National Bank (PN) Executive Director.
* The committee is to suggest procedures to bring unclaimed deposits to a common pool, it said, adding the panel will submit its report by December 31.

Indian Diaspora Engagement Meet to be held in Bahrain.

* For the first time, India will hold a meeting for Indian businesses in Bahrain this week to acquaint them with the various investment opportunities in the country and also seek investments from Bahraini nationals. 
* Minister of External Affairs & Overseas Indian Affairs Sushma Swaraj is expected to attend the event. 

September 5

Current Account Deficit (CAD) of India narrowed down sharply to 1.7 percent of Gross Domestic Product (GDP) in the Quarter 1 (Q1) of the fiscal year 2014 - 15 as compared to 4.8 percent in the Q1 of 2013 - 14. Q1 refers to the period April – June.
* In absolute terms, the CAD in Q1 of 2014 - 15 was US$ 7.8 billion as compared to US$ 21.8 billion in Q1 of 2013 - 14.
Reasons for Narrowing of CAD
* The narrowing down of CAD in Q1 of 2014 - 15 was mainly on account of reduction in trade deficit (contributed by increase in exports and decline in imports), and a steep decline in gold imports.

India slipped to 71st in Global Competitiveness List 2014 - 2015.
* Top ten rankings in the Global Competitiveness List Switzerland (1st), Singapore (2nd), USA (3rd), Finland (4th), Germany (5th), japan (6th), Hong Kong (7th), NetherLand (8th), UK (9th), Sweden (10th).

* India slipped to 71st position out of 144 countries by losing 11 places in the global competitiveness list of Geneva-based World Economic Forum (WEF) with the score of 4.2 out of 7.
* The three basic parameters that decide the rankings are:
(1) Basic Requirements.
(2) Efficiency Enhancers.
(3) Innovation and Sophistication Factors.
* The basic requirement includes institutions, infrastructure, macroeconomic environment, health and primary education.
* Efficiency Enhancers includes higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness and market size.
* Innovation and Sophistication Factors includes business sophistication and innovation factors.

Union Government on approved 7 percent hike in Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners. The notification of DA and DR will be effective from 1 July 2014.

* This hike is an increase over the existing rate of 100 percent of the Basic Pay or Pension to compensate for price rise. This means that the DA has reached to 107 percent of the Basic Pay and the hike would benefit more than 30 lakh central employees and about 50 lakh pensioners.

September 6

India slips to 62nd spot in effective stock market regulation.
* India has plunged 35 places to 62nd rank in terms of effective regulation of the stock exchanges.
* The country, last year, stood at the 27th spot for effective regulation and supervision of securities exchanges.
* South Africa is on the top followed by Finland, Hong Kong SAR, Luxembourg and Singapore in this category, says the report.
* Besides, neighbouring countries Pakistan and China are also placed at a better position than India on the parameters at 51 and 58 positions, respectively.
Note: The findings are part of WEF’s Global Competitiveness report 2014-15, where India has been ranked among 144 countries across the globe.
* The performance review was based on 12 pillars, including development of the financial markets. A value of 1 for regulation of exchanges implies ‘not at all effective’ while 7 represent ‘extremely effective’.

India and Australia sign civilian nuclear energy deal.
* It might take four-five years for the shipments to start.
* The deal officially marked an end to the ban imposed by Australia on selling uranium to India. The ban was lifted in 2012, when talks for the nuclear deal began.
* India has similar agreements with the US, Canada, the UK, South Korea and France, among other countries.
* India has become first country to get this deal without being a member of Non-Proliferation Treaty (NPT).
* Apparently, both sides also signed a parallel nuclear safeguards agreement, as India isn’t a signatory to the Nuclear Non-Proliferation Treaty. This was also the case when India had signed a civil nuclear deal with Canada.
* Australia has about 40 percent of global uranium reserves and also one of the largest exporters of the commodity. It doesn’t have any nuclear power plants of its own.
Nuclear Energy generation in India
* India has 21 operational nuclear power reactors, across six power plants, with an installed capacity of 5,302 Mw; these produce 29,664.75 GWh of electricity. Seven more reactors, under construction, are expected to generate an additional 6,100 Mw, according to official statistics.
* Under the nuclear power generation programme, India hopes to increase its nuclear capacity to 63,000 Mw by 2032 by adding about 30 reactors, at an estimated cost of $85 billion.

* India’s is getting nuclear supplies from foreign after Civil Nuclear Agreement, 2005 with USA.
Projects under work:

Power station

Operator

State

Year of staring operation

Kaiga

NPCIL

Karnataka

1993

Kakrapar

NPCIL

Gujarat

2000

Kalpakkam

NPCIL

Tamil Nadu

1984

Narora

NPCIL

Uttar Pradesh

1992

Rawatbhata

NPCIL

Rajasthan

1973

Tarapur (T.A.P.S.)

NPCIL

Maharashtra

1969

Kudankulam

NPCIL

Tamil Nadu

2013

The projects under construction are:

Power station

Operator

State

With the help of

Kalpakkam

Bhavini

Tamil Nadu

USSR

Kakrapar

NPCIL

Gujarat

USA

Rawatbhata

NPCIL

Rajasthan

Canada

Kudankulam Unit 2

NPCIL

Tamil Nadu

USSR

The planned projects are:

Power station

Operator

State

Gorakhpur

NPCIL

Haryana

Chutka

NPCIL

Madhya Pradesh

Mahi Banswara

NPCIL

Rajasthan

Kaiga

NPCIL

Karnataka

Kalpakkam

NPCIL

Tamil Nadu

Kudankulam


Tamil Nadu

Jaitapur


Maharashtra

Kovvada


Andhra Pradesh

Mithi Virdi (Viradi)


Gujarat

September 7

Govt clears 22 FDI proposals worth Rs. 3,249 crore.
* The government said it has cleared foreign direct investment proposals of KSK Energy Ventures, Telenor Mobile, InterGlobe Aviation and of 19 others worth Rs. 3248.83 crore has been cleared.
* FIPB has also cleared the proposal of InterGlobe Aviation, holding company of IndiGo. This would clear the way for fresh foreign direct investment in air carrier IndiGo.

SC grants 15 more days to Subrata Roy to sell luxury hotels
* Subrata Roy, the founder and chairman of Sahara Group, has won 15 days more from the Supreme Court to use his makeshift office in prison to negotiate the sale of his group's luxury overseas hotels and raise $1.7 billion in bail money.

September 8

Forex reserves up by USD 60.5 million to USD 318.64 billion.
* The country's foreign exchange reserves surged by US $60.5 million to US $318.64 billion for the week ended August 29, as foreign currency assets rose, the Reserve Bank of India (RBI).
* The special drawing rights were down US $10.5 million to US $4.386 billions
* Foreign currency assets (FCAs), a major constituent of overall reserves, increased by US $75 million to US $291.393 billion in the period.
* Gold reserves remained unchanged at US $21.173 billion.

September 9

SFIO gives probe report on Saradha scam to government.
* The chitfund scam, wherein lakhs of investors in West Bengal and neighbouring states were defrauded of thousands of crores through illegal money pooling activities, came to light early last year and has also had its political ramifications.
* SFIO: Serious Fraud Investigation Office.

The Confederation of Indian Industry (CII) will open its first Middle East office in Bahrain to boost trade and investments in the region.
* The move represents a further strengthening of relationship with India as there are over 350,000 Indian residents in the country and total trade between the two countries in 2011 exceeded US $1.7 billion.
* The CII is a leading association of domestic businesses, founded in 1895 and with more than 7,200 members and an indirect membership of over 100,000 enterprises from around 242 national and regional sectoral industry bodies.

ICICI Bank launches “Card-less Cash Withdrawal” scheme.
* ICICI Bank launched a facility under which an account holder with it can transfer money to a mobile phone user in the country even without the latter having an account with any bank.
How to send?
* A customer having a savings account with the country's largest private lender can initiate a fund transfer using online banking by giving only the mobile number and address of the beneficiary.
How to receive funds?
* A secure six-digit code gets sent to the mobile number of the beneficiary, who can withdraw the amount from any of the bank's ATMs, using that number.
* The money has to be withdrawn within two days of the transfer.
* The beneficiary need not have an account with any bank can also use this scheme.

September 10

India not to impose anti-dumping duty on solar panels.
* India has decided not to impose anti-dumping duty on imports of solar panels from countries like the US and China, Commerce Minister Nirmala Sitharaman said today.
* To protect the struggling domestic industry, the Ministry of Commerce in May had recommended imposing a restrictive duty in the range of USD 0.11 - 0.81 per watt on solar cells imported from the US, China, Malaysia and Chinese Taipei.
* Power Minister: Piyush Goyal.

Government will not approve FDI in multi-brand retail.
* The government will not allow foreign direct investment in multi-brand retail, Commerce and Industry Minister Nirmala Sitharaman.
Background:
* The UPA government had opened the multi-brand retail sector for foreign investment and allowed up to 51 per cent FDI in the sector, while the BJP had opposed the policy.

September 11

Economic prospects brighten, GDP to improve to 5.2% in 2014: Moody's.
* Moody's, is the bond credit rating business of Moody's Corporation, representing the company's traditional line of business and its historical name.
* Headquarters: New York.
* Moody’s, Standard & Poor's (S&P) and Fitch Group, is considered one of the Big Three credit rating agencies. All have headquarters at New York.

The Cabinet Committee on Economic Affairs (CCEA) approved the disinvestment of the stake of Coal Indian Limited (CIL), Oil and Natural Gas Company (ONGC) and National Hydro Power Corporation (NHPC).
* The stakes of the three organisations will be sold to garner a combined 43 thousand crore rupees.
* The CCEA has cleared disinvestment of 10 percent stake of CIL (out of 89%), 5 percent in ONGC (out of 69%) and 11.36 percent in NHPC (out of 86%).

September 12

Retail inflation eased to 7.80 per cent in August, helped mainly by slower annual increases in prices of fuel, light and clothes, government data.
* The latest number was in line with a Reuter’s poll forecast and lower than July's figure of 7.96 per cent.
* Consumer food price inflation, under a new series published by the government, edged up to 9.42 per cent in August from 9.36 per cent in the previous month.

Industrial output growth slows down to 0.5 per cent for July.
* During the April-July period of the 2014 - 15 fiscal, IIP has recorded 3.3 per cent growth, as against contraction of 0.1 per cent in the same period of 2013 - 14.
* Additionally, according to data released by the Central Statistics Office (CSO), IIP for June has been revised upwards to 3.9 per cent from the provisional estimates of 3.4 per cent released in August.

September 13

M&M, Samsung donate Rs. 5 crore to PM's National Relief Fund.
* This is to help in relief operations in flood-ravaged Jammu and Kashmir National Relief Fund.
* According to an official release issued by the PMO, the Mahindra and Mahindra Group and Samsung Electronics have donated Rs. 2 crore and Rs. 3 crore respectively towards the Prime Minister's National Relief Fund.

Card payment network RuPay sees boost from PM Jan Dhan Yojana.
* RuPay users have now almost doubled from 23 million at the end of July.
* By March next year, the CEO expects that number to rise to 160 million, with more than 60 per cent of the increase coming from the government scheme.
* Started in 2012 by National Payments Corp of India (NPCI), a company owned by 10 local and foreign banks, RuPay competes with global payment firms Visa and MasterCard for the few customers in Asia's third largest economy able to afford a debit or credit card
* RuPay users account for just 1.5 per cent of daily card transactions of almost one million at retailers, said AP Hota, chief executive of NPCI.

September 14

Declining prices of vegetable and other food articles pulled down wholesale inflation sharply to 3.74 per cent in August to a nearly five-year low.
* The inflation measured on Wholesale Price Index (WPI) was at 5.19 per cent in July and 6.99 per cent in August 2013.

Saradha Group guilty of running ponzi scheme, to face prosecution: SFIO.
* Regarding 'chit fund scam' of 14 Saradha group firms, SFIO said these companies have been found to be running 'ponzi schemes' and would face prosecution for violation of several laws.
* SFIO: Serious Fraud Investigation Office.

September 15

Cipla to buy two units in Goa and Maharashtra for Rs. 100 crore.
* The acquisition will be carried out through the company's wholly owned subsidiary Medispray Laboratories. The decision was approved by Cipla board at its meeting held.
* The consideration for the above two transactions are Rs. 29 crore and Rs. 71.93 crore respectively.

Pfizer, Ranbaxy won dismissal of lawsuit over generic Lipitor.
* Pfizer Inc and Ranbaxy Laboratories won dismissal of a US antitrust lawsuit accusing them of conspiring to delay sales of generic versions of the best-selling cholesterol drug Lipitor.
* U.S. District Judge Peter Sheridan in Trenton, New Jersey, ruled that the plaintiffs, retailers and distribution companies that bought Lipitor directly from Pfizer, failed to plead their case with enough detail.

September 16

India to receive $63.3 million loan from ADB.
* India signed a $63.3 million loan from the Asian Development Bank (ADB) for improving urban services in North Karnataka.
* The agreement is for the fourth project under the overall facility of $270 million for the 'North Karnataka Urban Sector Investment Program'.
Objective of Loan:
* To upgrade infrastructure, including expansion of the potable water systems to provide continuous water supply (24X7) with private sector participation in 12 towns.
* And aims to improve basic urban services for at least 4.3 million people living in 25 North Karnataka towns by providing them with improved water supply, cleaner environmental conditions, safer and faster urban transportation, and other public facilities.

India may become fifth-largest exporter by 2030, says HSBC report.
* India's Trade Confidence Index increased from 126 in the second half of 2013 to 137 in the first half of 2014.
* In the near term, respondents see Europe as the most promising trading destination, pushing Asia into second position.
* The UAE is likely to remain top export destination for the country till 2030, and China is forecast to emerge as the second largest export market, displacing the US.
* Current(2014) Exports & Imports table of India.


Exports

Imports

Goods

(Top goods traded)

Software, petrochemicals, agriculture products, jewellery, engineering goods, pharmaceuticals, textiles

Crude oil, gold and precious stones, electronics, engineering goods, chemicals, plastics, coal

Main partners


European Union

USA,

UAE


China

European Union

UAE


Govt clears 21 FDI projects, rejects Sistema Shyam's proposal.
* Foreign Investment Promotion Board (FIPB) cleared FDI 21 proposals including that of Bharati Shipyard, but turned down Sistema Shyam's request to raise foreign holding.
* The FIPB, headed by Finance Secretary Arvind Mayaram, at its meeting considered 35 proposals.
* The proposal of Bharti Shipyard-an Indian company in ship building sector which has existing FDI through FIIs and NRIs-to undertake defence activities was cleared, sources said.
* Besides, the proposal of Verizon Communications India which sought approval to increase foreign equity participation by its foreign parent from 74 per cent to 100 per cent was also approved by the FIPB.

September 17

SEBI to float paper on reducing FPO timeline.
* To elicit views from diverse stakeholders, capital market regulator Securities and Exchange Board of India (SEBI) will come out with a discussion paper on reducing the timeline for follow-on public offers (FPOs).
* The proposal for a discussion paper also comes at a time when many public sector companies are gearing up for stake sale as part of the government's ambitious disinvestment programme.
* FPO and Offer for Sale (OFS) are seen as preferred routes for selling stakes in public sector companies.

September 18

Crisil launches first inflation-linked government securities index.
* Largest domestic credit rating agency Crisil Research on Thursday launched the country's first inflation indexed government securities index (Crisil IIGS Index), which will track the performance of a portfolio of inflation-linked government securities.
* Crisil believes the index will provide market participants an appropriate and easily accessible benchmark to measure and analyse the performance of such securities, the agency said in a statement.
* That apart, this total return index seeks to capture returns on inflation-linked securities due to coupon accruals and price change, both adjusted for inflation.

September 19

Centre joins hands with Bill & Milinda Gates Foundation for universal sanitation.
* With the objective of addressing sanitation related health concerns, the Urban Development Ministry and the Bill & Milinda Gates Foundation have agreed on a partnership to promote user friendly toilets to ensure universal sanitation in India.
* Under Swachchh Bharat Mission to be launched on October 2, every household is to be enabled with toilet facility by 2019.

September 20

World Wrestling, Ten Sports to invest Rs. 600 crore in India.
* New York-listed World Wrestling Entertainment (WWE), along with Ten Sports channel, will invest a little over $100 million (Rs. 600 crore) in the Indian sporting related entertainment market.
* Rajesh Sethi, CEO of Ten Sports said the funds would be used to bring in technology, which would help reduce the gap between the television shows shown in the US and India market. He added it would also be used to organise more live events in the country, and to launch a WWE line of merchandise for kids and adults.
* Ten Sports will also air WWE content in multiple Indian languages for the first time, and bring WWE live events back to India in 2015, Sethi said during the launch in Mumbai.

September 21

BofA-ML sees country's current fiscal CAD down at 1.7 per cent.
* The nation's current account deficit (CAD) is likely to narrow down to 1.7 per cent of GDP this fiscal but may widen to 2.3 per cent in FY16, says a report.
* We have cut down our FY15 current account deficit forecast to 1.7 per cent of GDP from 2.6 per cent earlier as it does not look like New Delhi will remove gold import restrictions in the near future.
* The report said the Reserve Bank of India needs to build foreign exchange reserves of $373 billion by March 2016 to maintain the present eight-month import cover.

September 22

Iran oil imports jump 50 per cent in Jan-Aug, say trade sources.
* Indian imports of Iranian oil rose by nearly half to 271,000 barrels per day (bpd) in January-August from a year ago, when refineries cut purchases due to worries about insurance coverage for processing crude from Tehran, data from trade sources shows.
* World powers and Iran are working to resolve a decade-old dispute over the OPEC nation's nuclear programme, with an interim deal that eases some sanctions on the country extended by four months to late November.
* India, the Islamic state's top client after China, had boosted imports in the first quarter of this year to make up for the cuts in 2013 and to hit its target of importing 220,000 bpd from Iran in the fiscal year to March 31.

India's infra market to reach $6.6 trillion by 2025, says PwC report.
* India's infrastructure market is expected to touch $6.6 trillion by 2025, which will be nearly 12.5 per cent of the Asia-Pacific, says a report.
* According to consultancy firm PwC, the Asia Pacific infrastructure market is expected to grow by 7-8 per cent a year over the next decade to over $53.6 trillion by 2025 and representing nearly 60 per cent of the world total.
* India's share of the Asia-Pacific infrastructure market is expected to continue to grow, reaching around 12.5 per cent or $ 6.6 trillion by 2025, PwC said in its report.

September 23

Punjab, tops in CPSE investments.
* Punjab, Maharashtra, Bihar and Odisha are the only four states amid top 20 major states in India that have seen a surge in employment generated by the CPSEs while rest of the states have recorded a fall ranging between 3-22 per cent.
* The number of people employed by the CPSEs (excluding contractual workers) across India came down from about 15.33 lakh to 14.04 lakh during the period, a fall of about eight per cent.
* Gujarat has rank 12th recorded a decline of over 14 per cent in employment generated by the Central Public Sector Enterprises (CPSEs) between 2008-09 and 2012-13, apex industry body Assocham said on Tuesday.
* The CPSEs investment growth rate was recorded at 9.05 per cent in 2012-13 on year on year basis as compared to 13.42 per cent in 2011-12 and 9.48 per cent in 2010-11 and 15.52 per cent in 2009-10.

New industrial policy to ensure industrialisation across Telangana.
* The idea is to have two large industrial parks for each sector over a period of time.
* Think of this as 20 industrial parks spread over the nine districts of Telangana (excluding Hyderabad - the tenth and the capital).

September 24

India to contribute USD 12 million to UN to tackle Ebola.
* Prime Minister Narendra Modi has approved 12 million dollars assistance to United Nations to fight Ebola virus in Africa.
* External Affairs Ministry Spokesperson Syed Akbaruddin said, 10 million dollars will be contributed to UN Secretary General's Fund and an additional 2 million dollars will be given for purchase of protective gear to tackle Ebola.
* Ebola virus hit the African continent earlier this year and has killed nearly 2,200 people in several countries there. The UN Security Council has declared the outbreak of the virus in West Africa a threat to international peace and security.

ADB ups 2015 growth to 6.3%.
* Revising India’s GDP upwards by 0.3 per cent to 6.3 per cent in 2015, Asian Development Bank (ADB) has said the economy shows a new promise of turnaround after the election brought a stable government in May.
* This Update maintains the 5.5 per cent growth forecast for 2014 but upgrades to 6.3 per cent, the forecast for 2015, when reform can begin to bear fruit.

Amul jumps to rank 15th in IFCN listing.
* Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells Amul brand of milk products ranked 15th among the top dairy organisations in the world in the International Farm Comparison Network (IFCN) – a global dairy knowledge organisation.
* Amul has been emerged as the fastest growing dairy organisation as it jumped from the rank of 20 in 2012 to the current slot of 15th in terms of milk procurement and turnover per kg milk.
* Among the other top-ranked dairy organisations in the IFCN list included multi-national majors like Dairy Farmers of America - USA, Fonterra Cooperative Group - New Zealand, Nestle – Switzerland, Danone – France among others.
* Note: In spite of India being largest producer of milk in the world, its largest dairy brand, Amul figures much lower in the IFCN list as compared to other international players.

September 26

Swedish furniture maker IKEA to build suppliers park in Telangana.
* The Swedish giant, that sourced $450 million(Rs. 2,700 crore) worth of goods from India last year, is looking at building one of India's largest suppliers' park to boost local sourcing.
* Ikea has asked Telangana, where it will set up its first store in the country, to help find suitable land at a key location for building the suppliers' park. It plans to accommodate its global and domestic supply chain partners there.
* The Telangana government has positively responded to the proposal of Ikea for building a suppliers' park spread over 500 acres of land near Hyderabad

Adani gets Australian approval for rail project.
* Adani Mining took a step closer to the development of Australian $2.2 billion ($1.94 billion) coal mining project in Australia after the federal government approved construction of a rail haulage line.
* The Australian unit of Adani Enterprises needed the approval of Environment Minister Greg Hunt to proceed with the 300 km (186-mile) line, after last month gaining clearance from the state of Queensland.
* Known as the North Galilee Basin Rail project, it is being designed to connect collieries owned by Adani and potentially other developers in the largely unpopulated Galilee Basin to the east coast port of Abbot Point.
* Despite analyst views that Adani’s project would be unprofitable at current coal prices, the company remains committed to pushing ahead with it to supply power stations in India.
* Note: India is home to the world’s fifth-largest coal reserves but still needs to resort to imports as state-owned Coal India, which accounts for about 80 per cent of the country’s output, frequently falls short of its output target.

Onus on civil aviation ministry panel to decide on airport privatisation.
* The civil aviation ministry has decided to take an inter-ministerial group's (IMG) approval before proceeding on a proposal to privatise operations and management at six airports.
* The IMG is headed by civil aviation secretary V. Somasundaran and has representations from the Planning Commission as well as the law and finance ministries. It has been set up to consider aviation-related matters.
* The six airports that are to be privatised are Kolkata, Chennai, Jaipur, Guwahati, Ahmedabad and Lucknow.

Emami biotech acquired Vanaspati brand Rasoi.
* Emami biotech acquired Vanaspati brand Rasoi. Emami biotech is the edible oil and bio-diesel arm of the Emami Group of Companies.
* The deal is estimated to be worth around 20 crore rupees. This is Emami's second acquisition in three months and with this deal Emami makes entry into vanaspati segment.
* The acquisition will be an addition to the Company’s existing portfolio of edible oil brands such as Emami Healthy & Tasty and Himani Best Choice.

September 27

S&P upgrades India outlook from negative to stable.
* Standard & Poor's raised India's credit rating outlook to stable on the back of strong political mandate helping fiscal and economic reforms.
* The ratings agency, after a gap of two years, has improved the country's sovereign credit rating outlook from negative to stable indicating the possibility of a rating upgrade.
* The agency currently has a 'BBB-/A-3' rating on India.
* BBB- is India’s previous rating and agency has retained this for long term.
* But for short term it gave A-3 rating.
* (-) means negative outlook.
* (+) means positive outlook.

The general meaning of our credit rating opinions is summarized below.
* 'AAA'—Extremely strong capacity to meet financial commitments. Highest Rating.
* 'AA'—Very strong capacity to meet financial commitments.
* 'A'—Strong capacity to meet financial commitments, but somewhat susceptible to adverse economic conditions and changes in circumstances.
* 'B'—More vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments.
* 'BB'—Less vulnerable in the near-term but faces major ongoing uncertainties to adverse business, financial and economic conditions.
* 'BB+'—Considered highest speculative grade by market participants.
* 'BBB'—Adequate capacity to meet financial commitments, but more subject to adverse economic conditions.
* 'BBB-'—Considered lowest investment grade by market participants.

September 28

Net direct tax collection at Rs. 2.60 lakh crore.
* The gross direct tax collection till September 26 was at Rs. 3.37 lakh crore. Of this, corporate tax contributed was Rs. 1.55 lakh crore during the period, a senior finance ministry official said.
* Personal income tax realisation stood at 1.01 lakh crore.
* Besides, collection of Securities Transaction Tax (STT) and Wealth Tax stood at Rs. 3,222 crore and Rs. 357.5 crore respectively.
* The government has targeted to raise Rs. 7.36 lakh crore from direct taxes in 2014-15, up from over Rs. 6.36 lakh crore collected last financial year.
Strides Arcolab to buy Shasun Pharma for $200 million in all-stock deal.
* Strides Arcolab has agreed to buy smaller rival Shasun Pharmaceuticals in an all-stock deal, valued at about $200 million, to bolster its generic medicine and drug ingredient businesses.
* Shasun, which has a market value of $193.5 million, makes drug ingredients and finished medicines, as well as provides contract research and manufacturing services. It supplies to North America, Europe, Asia and Latin America.
MCX signs software support and services deal with FTIL.
* The Multi Commodity Exchange (MCX) said it has entered into a new agreement with Financial Technologies (FTIL) for availing software support and managed services till 2022.
Objective:
* The pact (a supplementary agreement), inked on mutually agreed terms, marks the continuation of technology partnership between the two companies, founded by entrepreneur Jignesh Shah, and comes as a shot in the arm for MCX as it seeks to launch fresh contracts.
* In a filing to the BSE, the commodity bourse said the agreement was entered into with several changes.
* As per the new agreement, MCX will pay FTIL a fixed charge of Rs. 1.5 crore per month, including managed services payable in advance on semi-annual basis. Earlier, it was paying Rs. 2 crore per month.
* FTIL will also get a variable charge of 10.3 per cent of gross transaction fees as compared to 12.5 per cent earlier.

September 29

Government cancels SEZs of Hindalco, Essar, Adani on unsatisfactory progress.
* The decision was taken in the meeting of the Board of Approval (BoA) headed by Commerce Secretary Rajeev Kher.
About Hindalco, Essar, Adani SEZ’s
* Hindalco Industries had proposed to set up an aluminium product SEZ in Orissa. The formal approval to the developer was granted in July 2007 and the later extended deadline is December 31, 2013.
* Essar Jamnagar SEZ, which had proposed to set up a multi-product zone in Gujarat, got formal approval in August 2006. It was expired in August 2009.
* Similarly, Adani Townships & Real Estate Company had proposed an IT/ITeS zone in Gujarat. The BoA granted formal approval in June 2007, which expired in June 2010.
Note:
* As per SEZ rules, formal approval is valid for a period of three years, by which time at least one unit has to commence production and the zone becomes operational from the date of commencement of such production.

FinMin seeks pre-2011 bank account info from Swiss authorities.

* The Finance Ministry has taken up with the Swiss authorities the issue of providing information pertaining to the pre-2011 period on bank accounts held by the country's tax evaders in the Alpine nation as this is essential to uncover the black money trail.
* Commission black money: M.B. Shah.

September 30

Federal Bank sanctions Rs. 500 crore term loan to CIAL.
* Federal Bank has sanctioned a term loan of Rs. 500 crore to Cochin International Airport Ltd (CIAL) for the construction of the new International terminal.
* Federal Bank Limited is a major Indian commercial bank in the private sector, headquartered at Kochi, Kerala. It is the fourth largest bank in India in terms of capital base.
* Headquarters: Kochi, Kerala.
* Chairman: Abraham Koshy.

SEBI notifies norms for listing REITs, InvITs.
Objective of norms:
* Both REITs and InvITs are expected to help in attracting billions of dollars into the country's real estate and infrastructure segments.
* REIT, InvIT investments are expected to tap Rs. 1 trillion investments into Indian economy
* As an innovation, a modified REIT-type structure for infrastructure projects is also being announced as Infrastructure Investment Trusts (InvITs), which would have a similar tax efficient pass through status, for PPP (public-private partnership)and other infrastructure projects.
* The new guidelines, which herald a new investment avenue in India on the lines of one in developed markets like the US, UK, Japan, Hong Kong and Singapore, would allow trading in units of REITs and InvITs like any other security on stock exchanges.

NORMS

* The minimum asset base for these trusts to get listed is Rs. 500 crore.
* The minimum initial offer size should be Rs. 250 crore with a public float of at least 25 per cent, according to SEBI.
* REITs and InvITs are required to make investments either directly or through Special Purpose Vehicles (SPVs). In case of PPP projects, money can be put in only through SPVs.
Cautions:
* In case of REIT and InvIT failing to get listed within three years from the date of getting registered with Sebi, they would have to surrender their registration certificates.

REIT’s Norms

* In the case of REITs, the minimum public holding should be 25 per cent while the total number of outstanding units at all times as well as the number of unit holders - who are part of the public - should be 200.
* Under both the IPO and follow-on public offer (FPO), the REIT shall not accept subscription of an amount less than two lakh rupees from an applicant, as per the norms.
* Sebi has said that at least 80 per cent of the value of REIT assets should be invested in completed and rent generating properties.
* REITs are barred from investing in vacant land or agricultural land or mortgages other than mortgage backed securities.
* Not less than seventy five per cent of the revenues of the REIT and the SPV, other than gains arising from disposal of properties, shall be, at all times, from rental, leasing and letting real estate assets or any other income incidental to the leasing of such assets.
Direct (or) special projects:
* At least two projects should be held by a REIT, either directly or through SPV. Out of that, only up to 60 per cent of the asset value can be invested in one project.

Norms for InvITs

* With regard to InvITs, Sebi said they should put in at least 80 per cent of the value of the assets in completed and revenue generating infrastructure assets should, among others, raise funds only through public issue of units.
* In this case, minimum subscription from any investor in IPO and FPO would have to be Rs. 10 lakh.
* The units proposed to be offered to the public not less than 25 per cent of the total of the outstanding units of the InvIT and the units being offered by way of the offer document.
* An investment manager of InvIT can apply for delisting if among others, there are no projects or assets remaining under the trust for more than six months and it does not propose to invest in any project in future.

For under-construction projects:
* For trusts, that propose to invest over ten per cent of its asset value in under construction projects, funds can be raised only through private placement to Qualified Institutional Buyers and body corporates.
* In such cases the trusts can raise minimum investment of Rs. 1 crore from any investor and "from not less than five and not more than one thousand investors".

Norms for Sponsors
* There can be a maximum of three sponsors for REIT and InvIT.
REIT’s
* In the case of real estate investment trust, the collective net worth of sponsors should be at least Rs. 100 crore and on individual basis, the same has been fixed at minimum level of Rs. 20 crore.
* A manager for REIT should have a minimum net worth of Rs. 10 crore in case of a "body corporate or a company" while the net tangible assets of value should not less than Rs. 10 crore where the manager is a LLP (Limited Liability Partnership).
InvIT’s
* Each sponsor should have a net worth of not less than Rs. 100 crore if it is a body corporate or a company and the criteria is same for net tangible assets pertaining to LLP.
* Among others, an investment manager for InvIT should have a net worth of at least Rs. 10 crore and is required to have an "office in India from where the operations pertaining to the InvIT is proposed to be conducted".

Comparison REIT & InvIT norms:


REIT

InvIT

Minimum asset base

Rs. 500 crore

Rs. 500 crore

Investments type

Directly (or) Special Purpose Vehicles (SPVs).

In case of PPP projects, only through SPVs.

Same as REIT

Mim. Investment in IPO or FPO

Rs. 2 lakh

Rs. 10 lakh

Max. allowed stock to be listed

25 per cent

25 per cent

Conditions

REITs are barred from investing in vacant land or agricultural land or mortgages other than mortgage backed securities.

No such conditions in were not to invest

At least 80 per cent of the value of REIT assets should be invested in completed and rent generating properties.

At least 80 per cent of the value of the assets in completed and revenue generating infrastructure assets should, among others, raise funds only through public issue of units.


No such conditions

If there are no projects (or) assets remaining under the trust for more than six months and it does not propose to invest in any project in future.

At least two projects should be held by a REIT, either directly or through SPV

At least two projects should be held by a REIT, either directly or through SPV

TAX

Yes (equal to STT)

Yes (equal to STT)

 

Norms for Sponsors


REIT’s

InvIT’s

Maximum number of sponsors

Three

Three

Collective net worth of sponsors

Rs. 100 crore


Individual basis

Rs. 20 crore

Rs. 100 crore

manager net-worth

Rs. 10 crore

Rs. 10 crore

 


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