Government eases foreign funding rules in key infrastructure sectors
Government eased its overseas borrowing rules to enable companies to raise funds more easily, which will help boost economic growth.
Reserve Bank of India Deputy Governor H.R. Khan said the central bank has allowed oil marketing companies to finance part of their short-term trade credit requirement through overseas debt.
The RBI also extended the external commercial borrowing (ECB) relaxation for affordable housing for two years and aviation for a few more months.
Khan spoke to reporters after a meeting with senior government officials.
The central bank will also come out with a uniform definition for infrastructure companies, he said, adding there has been no overall change in the ECB limit of $40 billion.
(Sources: Economic Times, Indiatimes, Business Standard, Reuters India, Business World, NDTV)
India to grow at 6% in current fiscal: Standard & Poor's
India is projected to grow by 6 per cent in the current fiscal while growth is expected to be steady in most of the Asia Pacific economies, global rating agency Standard & Poor's said today.
It, however, cautioned that a weaker global risk appetite and a poor monsoon would pull down growth to around 5 per cent in 2013-14 fiscal.
S&P's growth projection is lower than the government's estimate of 6.1-6.7 per cent. It is, however, higher than RBI's projection of 5.7 per cent.
For 2014-15 and 2015-16 fiscal, S&P projected the economic growth to pick up at 6.7 per cent and 7 per cent respectively.
(Sources: Indian Express. Financial Express, Hindustan Times, India Everyday, Moneycontrol)
India April wholesale price inflation eases to 4.89%: Reports
Wholesale price index in April likely rose 4.89 percent, a news channel reported, citing unnamed sources, ahead of the official data release due around noon on Tuesday.
The data, if confirmed, would be much lower than consensus forecasts from a Reuters poll, which expected wholesale prices to have risen an annual 5.50 percent in April, the slowest pace since November 2009.
WPI rose 5.96 percent in March. The benchmark 10-year bond yield dropped 4 basis points to 7.54 percent from levels before the TV report.
The benchmark 5-year swap rate fell 5 bps to 6.77 percent, while the one-year rate dropped 3 bps to 7.15 percent, dealers said.
(Sources: Economic Times, Indiatimes, Yahoo News, Express India, Zeenews, WSJ)
BHEL to set up manufacturing unit in Maharashtra; invest $ 91.30 million
"BHEL is setting up a new Power Equipment Fabrication Plant at Bhandara in Maharashtra. The greenfield unit is being set up by the company at an initial investment of $ 91.30 million and will provide direct employment to about 700 persons," BHEL said in a statement.
The foundation stone for the new unit was laid yesterday by Prithviraj Chavan, Chief Minister of Maharashtra.
(Sources: Business Standard, Economic Times, the Statesman, Hindu Business, PTI)
Kumar Birla, family to invest $ 95.80 million for retail ramp-up
Aditya Birla Group chairman Kumar Mangalam Birla plans to invest $ 95.80 million in the group's retail arm and raise its borrowing limit by $ 456 million to ramp up its food and grocery business.
Aditya Birla Retail (ABRL) has decided to issue optional convertible bonds to RKN Retail, promoted by Birla, his family and some closely held companies of the family, an official said.
The third largest supermarket chain in the country after Future Group and Reliance Retail has decided to increase its borrowing limit to $ 1.37 billion from$ 913 million. The firm plans to open 100 supermarkets and 6-8 hypermarkets this fiscal year.
(Sources: Economic Times, Indiatimes, Reuters India, India Everyday, i4u, News BCC, IBNLive)
India talks tough on FTA with European Union, asks for lowering ambition
Ahead of crucial talks between chief negotiators of India and the EU from tomorrow to iron out differences to conclude long-pending FTA talks, top officials today made it clear that the European bloc has to "lower down" its "high ambitions" if it really wants to seal the pact.
"India is taking a very tough stand. EU has to lower down from their high ambitions if they really want to seal the pact," sources said, ahead of the two-day deliberations on issues like duty cut in automobile sector.
India and the 27-nation bloc European Union (EU) are negotiating a Broad-based Trade and Investment Agreement (BTIA) since June 2007 but any breakthrough has not yet achieved due to strong differences on several of the issues.
Sources also clearly said that there are no chances of "partial agreement" with the EU as India has done with ASEAN.
According to them, even if the two sides were able to conclude the negotiations this year, it would take at least another two years for implementation of the BTIA.
(Sources: Business Standard, Zeenews, Livemint, Economic Times, Indiatimes, India Everyday)
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