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  01 MAIN
   
   
  02 NEWSMAKER
   
   
  03 INVESTMENT UPDATE
   
   
  04 TRADE AND ECONOMY
   
   
  05 INFOTECH
   
   
 

06 FEATURE

   
   
  07 TRAVEL
   
   
  08 CALENDAR
   

   
  HIGHLIGHTS
   
 

Vandana Shiva wins Sydney Peace Prize
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  India’s Promising Economic Outlook
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  GOA- Jewel of India
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04. TRADE AND ECONOMY

RBI relaxes ECB norms for infra finance companies

Mumbai: The Reserve Bank of India has allowed infrastructure finance companies (IFCs) to raise funds through external commercial borrowings without obtaining its prior approval. IFCs can now raise funds through ECBs up to 50 per cent of their owned funds under the automatic route, the RBI said in a circular.
“As a measure of liberalisation of the existing procedures, it has been decided to permit the IFCs to avail themselves of ECBs, including the outstanding ECBs, up to 50 per cent of their owned funds under the automatic route, subject to their compliance with the prudential guidelines already in place,” the circular said.
Companies raising more than 50 per cent of their owned funds through the ECB window would continue to require approval from RBI.
Earlier, IFCs were permitted to raise funds for on-lending to the infrastructure sector only under the approval route. This move is part of RBI's effort to ensure preferential lines of credit to companies lending to the infrastructure sector, said Mr R. Shankar Raman, Executive Vice-President (Finance), L&T Ltd.
However, companies may not look to utilise this opportunity at least in the near term.

The current turmoil globally may dissuade companies from borrowing abroad as raising money is going to be expensive, Mr Shankar Raman said.

India seeks global fund to help Third World expand forest cover

New Delhi: India seized the opportunity accorded by the Oslo Conference on Climate and Forests to make a case for a global fund to aid developing countries increase their forest cover. New Delhi maintains that it is not enough to provide compensation and incentives for avoiding deforestation and degradation of forests.
Instead, a comprehensive framework should have positive incentives for afforestation and reforestation and sustainable forest management or the REDD plus approach. The Oslo meet seeks to arrive at an interim partnership arrangement for reducing emissions from deforestation and forest degradation (REDD) in developing countries.
India has said that the Oslo partnership must put REDD and other ‘plus’ activities on the same footing, as envisaged in the Bali Action Plan. The focus at Oslo is on avoided deforestation. At stake is a $3.5-billion global fund being mobilised for the purpose. The fund was announced at the Copenhagen summit. India doesn’t stand to gain from this REDD fund. Countries with tropical forests and high rates of deforestation like Brazil and Indonesia, Gabon and Papua New Guinea have a greater claim on the financial incentives and compensation.

Presenting India’s position in Oslo, environment secretary Vijai Sharma said: “India believes REDD needs to be seen in the broader context of REDD+. The reduction of deforestation and conservation and enhancement of forest carbon stocks should be treated at par. Fairness requires that a unit of carbon saved should be treated the same as a unit of carbon added.”

New Delhi maintains that there is a need to look beyond avoided deforestation and degradation and must incentivise efforts at increasing forest cover and sustainable forest management. This is the REDD plus approach. “We have stressed that REDD and REDD plus are two sides of the same mitigation coin and India’s focus is on REDD plus,” environment minister Jairam Ramesh said.

In December 2008, India made a formal submission on a potential conceptual framework for such an agreement as part of the UNFCCC process. On this count, India’s position is mirrored by China. Both countries have been adding to their forest cover — China has an aggressive afforestation programme, as part of the actions it has submitted under the Copenhagen Accord. Beijing has said it will increase forest coverage by 40 million hectares and forest stock volume by 1.3 billion cubic meters by 2020 from 2005 levels.

Climate experts have said a major drawback of India’s approach is the lack of knowledge compared to the REDD. To fill the gap, the government has set up a technical group to develop methods and procedures to make assessment and monitoring of REDD plus actions. It is also planning a national REDD plus Coordinating Agency.

India has also finalised a draft proposal document for the National Mission for a Green India. The mission targets to take up 20 million hectares for afforestation/eco-restoration over the next 10 years. This is double the current target of 10 million hectares. This would mean an increase in the greenhouse gas removals by India’s forests to 6.35% of India’s annual total GHG emissions by 2020, leading to additional carbon sequestration of 43 million tonnes of carbon dioxide, equivalent annually by the year 2020.

India's first artificial reef to protect Kovalam

Thiruvanathapuram: India's first artificial reef was commissioned in the waters off the coast of Kerala's Kovalam beach on Wednesday.
Tourism minister Kodiyeri Balakrishnan unveiled the 110-metre long reef about 100m away from the shoreline. Geo-textile bags measuring about 30m in breadth and filled with sand were stacked on the seabed to build the 'soft reef'.
The submerged structure will break sea waves taller than 1m letting only low intensity ones to pass through, said Sheikh Pareeth, chief engineer with the Harbour Engineering Department, technical supervisor for the project. "We have a three-fold purpose with the reef: to protect the sea shore threatened by erosion, improve the tourism potential of the area as the reef will lead to calm sea conditions off the Kovalam coast making it ideal for surfers. The structure will also improve fish breeding following the growth of underwater vegetation and create conditions similar to natural reefs," said Unnikrishnan, planning officer with the state tourism department.

"However, he added, "we will have to wait for some time, at least till the end of the monsoon, to see if the intended results have been achieved." With the reef in place, the tourism department is also hoping that tourist flow to Kovalam will no more be a seasonal affair. Funded by the Centre's Tsunami Rehabilitation Programme, the reef was constructed at a cost of Rs 7.5 crore.

BOA GRANTS 3 FORMAL AND 3 IN PRINCIPAL APPROVAL

The Board of Approval of the Special Economic Zones (SEZs) met today to consider proposals for setting up of Special Economic Zones and also to approve other miscellaneous requests pertaining to SEZs.

Addressing the Board of Approval members, the Chairman informed that so far 578 formal approvals have been granted for setting up of SEZs out of which 353 have been notified. He further informed that over Rs.1,48,489 crore have been invested in the Special Economic Zones during this short span of time and direct employment of the order of 5,03,611 persons has been generated in the Special Economic Zones. During the financial year 2009-2010, total exports of Rs.2,20,711 crore has been made from SEZs.
In this meeting, the Board recommended grant of three Formal Approvals and three In-Principal Approvals.



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