Daily Economic News - 12 May 2014

Tamil Nadu pips Narendra Modi's Gujarat to top spot in CMIE’s CapEx ranking
In FY14, a year when the investment projects attaining completion across the country clocked a sharp dip of 37 per cent at Rs 2.32 lakh crore, seven states led by Tamil Nadu bucked the broader trend of a dip in overall investment completions.
Tamil Nadu recorded the completion of investments worth Rs 26,430 crore during the year, displacing Gujarat from the top slot, according to CMIE’s CapEx rankings. In FY14, Maharashtra retained its second position for the third consecutive year in the CMIE’s latest CapEx database, with completion of investments worth Rs 24,240 crore. Karnataka came in third, surpassing Gujarat, with completion of Rs 21,500 crore worth of investments.

(Source: The Financial Express)

World Bank bans two Indian entities for fraudulent practices
World Bank has banned two Indian entities for violating its fraud and corruption guidelines making them ineligible to participate in any projects financed by the global lender for certain period. Savoir Soft Solutions Private Ltd, based out of Noida, and one individual Laxminarayan Mallick from Cuttack have been barred from participating in any Bank-financed contract, according to latest information from the World Bank. Earlier also, the lender has barred various Indian entities. Currently there are 11 entities in the World Bank list of 'Debarred & Cross-Debarred Firms & Individuals'.

(Source: The Economic Times)

FDI from Mauritius to India dips 50% in Apr-Feb period
Foreign Direct Investment inflows from Mauritius have almost halved during April-February period of last fiscal to $4.48 billion, according to the data of the Department of Industrial Policy and Promotion (DIPP). India had received $8.97 billion during April-February 2012-13. The controversial GAAR provision, which seeks to check tax avoidance by investors routing their funds through tax havens, will come into effect from April 1, 2016 in India. The GAAR provision will apply to entities availing tax benefit of at least Rs 3 crore.
The India-Mauritius DTAA is being revised amid concerns that Mauritius is being used for round-tripping of funds into India even though that country has always maintained that there have been no concrete evidence of any such misuse.
Mauritius has been one of the biggest sources of FDI into India, which attracted inflows of $78.15 billion FDI from that country between April 2000 and February 2014. Mauritius accounts for 37 per cent of the country's total foreign direct investment.

(Source: Business Standard)

Thaiindianet. Team

12 May 2014