No room for pessimism, govt moving ahead with reforms: P. Chidambaram
Finance minister P Chidambaram on Tuesday once again asked investors not to be overly pessimistic about the falling value of the rupee and promised more reforms in the coming weeks that would help revive capital inflows into the country.
“Among the large emerging economies, we are the fastest growing economies next only to China and therefore I am confident that money will flow back into India. Investors will find India a safe destination to invest. And this temporary phase should pass. There is no need for pessimism,” he said on the sidelines of a Crisil function.
He also announced that the government will take a call on revising the FDI caps in different sectors in the second or third week of July. A panel led by economic affairs secretary Arvind Mayaram had last week submitted a report calling for a comprehensive overhaul in the foreign investment regime. Besides, other crucial decisions are also expected to be taken in the coming days, the finance minister indicated.
(Source: Economic Times, Zeenews, Financial Express, NDTV, Indian Express)
Sebi eases foreign investment rules, tightens buyback norms
Approving a Sebi committee report on the rationalization of foreign investment routes, the market regulator on Tuesday introduced uniform entry norms for existing foreign institutional investors (FIIs), sub-accounts and qualified foreign investors (QFIs) and combined these entities under a category known as foreign portfolio investors (FPIs).
In order to make entry easier for overseas investors, the regulator relaxed the norms requiring prior registration and allowed FPIs to invest in India merely by registering with designated depository participants on behalf of the regulator.
No FII or sub-account is currently allowed to invest in India unless it secures Sebi approval. Some 1,759 FIIs and 6,403 sub-accounts are registered with Sebi.
The move assumes significance in the backdrop of the government’s efforts to attract foreign fund flows as the weakening rupee bloats the country’s import bill and widens the current account deficit.
(Source: Livemint, the Asian Age, Deccan Herald, the Hindu, Zeenews, the Statesman)
PM lays foundation stone of 850 Mw Hydel project in Jammu and Kashmir
Prime Minister Manmohan Singh yesterday kick-started work on a mega 850 megawatt hydro-electric project on the River Chenab as part of efforts to tap the hydroelectric potential in Jammu and Kashmir.
The 850 MW Ratle project, which is the nation's first hydroelectric project that was bid out through tariff based international competitive bidding, will cost$ 923 million, Singh said laying foundation stone of the project.
Prime Minister said a sum of $ 44 million is being spent on environment management and rehabilitation and resettlement of those affected by the Ratle project.
Speaking on the occasion, UPA Chairperson Sonia Gandhi said the ecology and biodiversity should be protected while carrying out development projects.
(Source: Economic Times, Indiatimes, Business Standard, Hindu Business Line, Newstrack India)
AirAsia chief to meet ministers to garner support for airline venture
Malaysian airline entrepreneur and founder of AirAsia Bhd Tony Fernandes is likely to meet chief ministers of a few states besides key Union ministers early next week to drum up support for his upcoming airline venture AirAsia India with Tata Sons Ltd .
The government in April cleared AirAsia’s proposal to invest $ 14 million in a domestic passenger airline that it plans to launch jointly with Tata Sons, marking the clearance of the project’s first step before seeking a licence to operate.
AirAsia will hold a 49% stake in the Indian venture, while Tata Sons will own 30%, and Arun Bhatia of Telestra Tradeplace Pvt. Ltd the rest.
AirAsia India plans to develop a network across the country starting with Chennai as the hub, with an Airbus A320 fleet that it sees expanding to 36 planes in five years. By the fifth year of operations, it expects to have a dozen planes each based in Chennai, Bangalore and Kolkata.
(Source: Livemint)
Aviation ministry not keen on 74% FDI in domestic airlines
Reluctance on the part of the civil aviation ministry is likely to scuttle the finance ministry's plans to raise the FDI cap in domestic airlines to 74% from 49% at present.
While a panel headed by department of economic affairs secretary Arvind Mayaram has recommended that the sectoral FDI cap for domestic airlines be raised to 74%, the civil aviation ministry is not keen on the proposal as it has not received any such request from the industry and also because a number of changes in the regulations and policies would be required to implement such a proposal.
The Mayaram panel also suggests permitting 100% foreign ownership of non-scheduled airlines and existing airports.
Foreign money coming into existing airports could help reduce user development fee at Delhi and Mumbai airports while 100% ownership of non-scheduled airlines could interest global travel agents to set up shop here and operate non-scheduled flights between smaller cities.
(Source: Financial Express, Firstpost)
Foreign diplomats to join 'mango party'
The sweetness and aroma of the dussehri mango has transcended boundaries and found a fan following among foreign diplomats.
Ambassadors and High Commissioners of about a dozen countries are arriving in the nondescript town of Malihabad, about 30 km from Lucknow, for a 'mango party' on June 29.
The programme is being hosted by the Mango Grower Association of India. It is aimed at popularising dussehri and seeking government support for the mango growers and exporters.
The diplomats would be presented with dussehri saplings and urged to promote their cultivation in their countries. Some of the diplomats would represent Algeria, Fiji, Papua New Guinea, Sri Lanka, Trinidad & Tobago, Brunei, Kazakistan, Niger, etc.
(Source: Business Standard, Smart Investors, Hindustan Times, Rediff News)
Sanjiv Goenka is the 2013 Indian Business Leader of the Year
At the 2013 Global India Business Meeting, currently being held at Belfast UK, Mr Sanjiv Goenka was honored on Monday with the coveted "2013 Indian Business Leader of the Year" award in the presence of 300 delegates from India and Northern Ireland business houses, as also government officials.
The Global India Business Meeting is the foremost gathering of Indian business leaders and their global counterparts. The object is to create a powerful platform for cooperation between India and the rest of the world.
This award is in recognition of the success of his business enterprise and to acknowledge his position as an outstanding entrepreneur in India.
(Source: Economic Times, Indiatimes, Hindu Business Line, the Financial Herald)
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