สรุปข่าวเศรษฐกิจอินเดียประจำวันที่ 10 กรกฎาคม 2556

Tata Motors to make Indonesia exports hub
Tata motors will make Indonesia a hub to export vehicles to South East Asia as the country is set to overtake Thailand as the region's biggest car market.

Biswadev Sengupta, CEO of Indonesia unit, said that Tata Motors, which plans to start sale in Indonesia in two months, aims to sell enough vehicles in the country to make local assembly factory feasible. The volumes would also help boost content of locally made components to 40%, a level that is required to sell to members of ASEAN at zero duty.

(Source: the Financial Express)

Korea and China's Cos, Front Runners for Reliance Power's order
In a move to make supply to the Tilaiya ultra mega power project in the state of Jharkhand, Korea's Doosan and China's Dong Fang have emerged as front-runners for Reliance Power's Rs. 10,000-crore contract.

Reliance Power is required to invest more than Rs.20,000-crore to implement the power project and the associated coal mine. A Reliance Power spokeperson stated, "We have received a very good response from India, China, Europe, and Japan for the supply of the main plants equipment for Tilaiya ultra mega power project." Furthermore, the private developer has secured key statutory clearance and acquired land for developing the project. And on commissioning the project will supply electricity to 18 discoms in ten states at a revelished tariff of Rs.1.77 a unit.

(Source: the Financial Express)

Investors want Apollo Tyre rethink $2.5-b Cooper Buyout
Concerned by highly-leveraged acquisition of Cooper Tire, institutional investors of Apollo Tyre are convincing the management to rethink on the $2.5 billion all-cash deal.

The investors believe that the company is "over-paying" for synergies that will be difficult to achieve and they believe that the value-destructive deal is already been reflected in the sharp decline of Apollo shares, that destroyed about Rs. 1,500 crore of shareholder value in the aftermath of the deal announcement. Amit Tandon, managing director, IIAS, one of the shareholders, said if it had gone to shareholders to vote, we would have said vote to against the deal. They further believe that the big-ticket acquisition will change the character of the company.

However, Suman Sarkar, chief financial officer of Apollo Tyre said, "We are in continual engagement with our shareholders at all times and have been proactively reaching out to explain the strategic rationale, the financing structure and benefits to shareholders."

(Source: the Economic Times)

Plan to Raise Sectoral FDI Cap Faces Opposition from Ministries
The government's plan to raise sectoral foreign direct investment caps is facing oppositions from many individual ministries and departments, including defence and civil aviation.

The panel headed by department of economic affairs secretary Arvind Mayaram has suggested that the hiking of direct foreign investment (FDI) to 74% in retail sector and 49% in most areas should be clarified. The government strongly believes that the proposal will help boost the economy. The stable foreign capital flows will help fund the country's record–high current account deficit, which has put pressure on rupee as well. P Chidambaram, Finance Minister, is also the one who spearheading the move to revive the FDI norms. It is reported that the rupee has fallen 13% since April. And right now P Chidambaram is in the US urging various companies to come invest in India.

However, ministries of defence, power, petroleum and natural gas, and consumers affairs have already expressed their concerns in writing to the Department of Industrial Policy and Promotion (DIPP). There is increasing number of ministries raising the issues of security against the revival of FDI as well. Most of them want FDI to be maintained at current percentage, according to the report.

(Source: the Economic Times,)

Rains Disrupt Rubber, Tyre Industry Worried
With the heavy rain in Kerala, the largest rubber producer in the country, rubber tapping has been disrupted. Natural rubber prices have vaulted to a nine-month high raising worries for the tyre industry which has demanded import at a reduced duty.

Insufficient availability has upset the calculations of the tyre industry "Of the 5,000 tonnes of natural rubber needed by us from domestic market in June, we could muster only about 3,000 tonnes. Imports contracted now will a month or more to arrive," said Sawaranjit Singh, director-materials, JK Tyres. Therefore, the acute scarcity has led tyre makers to request for a duty reduction in import. Besides, the Automotive Tyre Manufacturers Association also has asked the Rubber Board to verify the natural rubber stock availability in the country up to June by an independent agency.

(Source: the Economic Times)

IEA says Gas Price Hike will give investment in India a life
The International Energy Agency (IEA) expects India's new gas price hike to boost investments in exploration and production, which will enhance energy security and help consumers, including gas-starved power plans.

Laszlo Varro, IEA's head of gas, coal, and power, said India's "Prices for natural gas that are more closely related to those in Asia-Pacific region will likely spur more investment in upstream production and will contribute to enhanced energy security by making more fuel available for domestic needs."

(Source: the Economic Times)

Economic Section
Royal Thai Embassy