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| 02. NEWSMAKERS |
India-Brazil-South Africa (IBSA) Dialogue Forum held |
The Prime Minister, Dr. Manmohan Singh with the President of Brazil, Mr. Lula da Silva and the President of South Africa, Mr. Kgalema Motlanthe at the signing ceremony of the trilateral Agreements/ MoUs, at the Third Summit of the India, Brazil & South Africa (IBSA) Dialogue Forum
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The Prime Minister of India, H.E. Dr Manmohan Singh, the President of Brazil, H.E. Mr. Luiz Inácio Lula da Silva, and the President of South Africa, H.E. Mr. Kgalema Petrus Motlanthe met in New Delhi, India, in October 2008, for the 3rd Summit of the India-Brazil-South Africa (IBSA) Dialogue Forum.
The leaders expressed their deep satisfaction with the progress on the consolidation of the IBSA Dialogue Forum in the five years since its inception in 2003 and their gratitude to the sterling contribution of former President TM Mbeki of the Republic of South Africa in the formation and consolidation of IBSA and South–South cooperation in general. They reaffirmed their commitment to further strengthening the trilateral cooperation and reaffirmed that the Forum is an important mechanism for closer coordination on global issues, for promoting the interests of developing countries, enhancing cooperation in sectoral areas and improving their economic ties.
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“Passport Seva Project” agreement signed
Mr. Shivshankar Menon, Foreign Secretary presided over a function in New Delhi where the Ministry of External Affairs signed an agreement on the Passport Seva Project with M/s Tata Consultancy Services appointing them as the service provider for the project. Mr. S. Ramadorai, CEO and MD of TCS was also present at the function. The Passport Seva Project is one of the Mission Mode Projects under the National E-Governance Programme. It aims to deliver passport related services to the citizens in a timely and transparent manner and in a comfortable environment, through streamlined processes. The entire project is being implemented on the Public Private Partnership (PPP) mode.
Speaking on the occasion, Foreign Secretary informed the gathering that about 5 million passports were issued last year all over India by the Central Passport Organization. The total demand for passports is expected to grow to over 10 million in 2011. To meet this rapidly growing demand, the Ministry of External Affairs conceived the Passport Seva Project which is expected to be completed in phases by January 2010. It will result in the issue of passports within three days, and where police verification is required, within three days after the completion of the verification process. Tatkal passports will be issued on the day of submission of the application. 77 Passport Seva Kendras will be opened all over the country. The pilot locations for the project are Bangalore and Chandigarh and the pilot sites will be functional by June 2009.
The design of this Project ensures that only support functions like improving citizen interface, managing the technology backbone, the call centres, training and change management etc. are provided by TCS, and the Government will continue to exercise all sovereign and security related functions in the passport issuance process. |
Crunch yet to take bite out of India Inc's sales |
Even as economists and government officials are busy revising India's GDP growth estimates downwards, demand slowdown, it appears, is yet to hit India Inc. An ET study of early birds - companies who have announced their financial results for the quarter ended September 30, 2008 - shows that aggregate net sales for 175 firms have grown by a healthy 32%, which is marginally more than the 31% topline growth in Q2 FY08. Sales growth in the past five quarters is in the 27-34% range.
Rising interest costs and high fuel and power expenses have resulted in the quarterly net profit growth shrinking to a modest 12% for the companies in the study during Q2 FY09 as against 32% growth during Q2 FY08 and a sizzling 48% growth during Q3 FY08. However, the good news is the aggregate profit growth shows a rebound in the quarter under review. Net profit growth of these firms had slumped to just 2% during Q1 FY09 and stood at 10% in Q4 FY08.
The performance of the companies which are part of the Sensex, the benchmark stock market index, has been even better. The five companies out of the total 30 Sensex firms whose results have been announced have recorded aggregate revenue growth of 41.7%. Their bottomline grew 34% compared to the same quarter in the previous year.
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These five companies are Infosys, Satyam Computer, HDFC, HDFC Bank and L&T. These five firms account for one-third of the aggregate revenues and 40% of the total profit for the 175 firms in the sample. Data for different expenditure heads show that the decline in global commodity prices has brought some relief for Indian companies. Growth in raw material costs, while still remaining high, has decelerated compared to Q1 FY09. Similarly, upward pressure on wage costs has also subsided. However, the high interest rate regime is playing spoilsport for the corporate sector in general, and particularly for the manufacturing sector. Interest outgo for the manufacturing firms has shot up 62.5% during Q2 FY09 as against an average growth of 26% over the past four quarters.
Power and fuel costs also continue to eat into margins and as a result, the manufacturing firms have reported a decline in both operating and net profit growth for the quarter. The growth of non-operating income of firms continued to remain modest during the quarter, which is also reflected in lower profit growth. Other and extraordinary income, which had supported Indian companies' financial performance till March 2008, has taken a hit over the past two quarters. During Q2 FY09, growth in such income was down to a mere 5.2% as against 60% jump in Q2 FY08.
Source: The Economic Times |
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Tatas acquire 50.3% in Norwegian e-vehicle major for Rs 9.4 crore |
Tata Motors has acquired a 50.3% holding in Norway-based electric vehicle major Miljo Grenland/Innovasjon for Kroner 12 million (Rs 9.4 crore). Its UK subsidiary, Tata Motors European Technical Centre, is the investment vehicle for the acquisition. The existing shareholders will retain the remaining stake in the company. ET had reported the development in its edition dated August 5, 2008.Miljo will produce electric vehicles based on Tata Motors' products, besides manufacturing super polymer lithium ion batteries and developing related technologies. Electric car, or e-car, is the new super kid in the world of automobiles. The first such vehicle to be developed will be Indica EV. It is scheduled for launch in Europe in 2009. Unlike existing e-vehicles, Indica EV will be capable of carrying four people. Analysts say the vehicle may attract buyers as there is no excise duty.
Source: The Economic Times
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RBI allows MFs to raise funds against CDs
In a bid to help the domestic mutual fund industry, which is reeling under a severe liquidity crisis, the Reserve Bank of India (RBI) has decided to allow them to raise funds against certificates of deposit (CDs). The central bank will also conduct a special 14-day repo auction, at which it would infuse Rs 20,000 crore to meet the liquidity requirements of MFs. “It has been decided to relax these guidelines for the issuance of CDs on lending and buyback, for a period of 15 days, only in respect of CDs held by mutual funds,” said the central bank in a statement. RBI allows banks and financial institutions to raise funds by issuing CDs to various entities, including MFs, for a period ranging from seven days to three years. Banks and FIs, however, are not allowed to grant loans against CDs or buy back CDs before maturity.
RBI relaxed the CD guidelines in the backdrop of the redemption pressure being faced by MFs, allowing them to seek loans against CDs or surrender them to banks before maturity. The relaxation would be subject to the Sebi (Mutual Funds) Regulations, according to which, “A mutual fund shall not borrow except to meet temporary liquidity needs of the mutual funds for the purpose of repurchase, redemption of units or payment of interest or dividend to the unit holders.”
Commenting on RBI's decision to conduct a special 14-day repo at 9% for Rs 20,000 crore, Ajay Bagga, CEO, Lotus Mutual Fund, said it would be of immense help to the MF industry. “The limit of Rs 20,000 crore is adequate for the industry to meet its requirements,” he said. Dhirendra Kumar, CEO, Value Research, said that the apex bank standing behind the redemptions would help to restore investor confidence and reduce redemption pressure on fund houses. However, Rs 20,000 crore may be an inadequate amount and the 14-day period may prove too short a duration, he added. Kumar added that with the current experience, investors' attitudes towards fixed-income assets would undergo a sea change. “I expect credit markets in India to see a wholesale flight to safety for a long time to come, just as in the rest of the world,” said Kumar
Source: The Financial Express |
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