Indian Economy: News and Discussion

[Antimony]

Unfortunately, IT and High-Tech industry will only make the existing middle class richer. The only known way to make the majority wealthier is manufacturing.

Reform the stupid manufacturing laws like licenses and special products reserved for SSI and I can bet we will see more

China did this all through the 90s by manufacturing everything under the sun. India is going nowhere unless we either replicate the Chinese model, or come up with our own way of creating productive mass-employment (not these useless government work yojanas - i.e. dig a ditch and fill it up again)

Surprise:

The Indian babudom and politicos have suddently had the shocking realisation that using this manpower to build real assets is actually better than having them digging up holes and filling them

The Telegraph - Calcutta (Kolkata) | Nation | Job scheme to build assets

Job scheme to build assets CITHARA PAUL

New Delhi, July 28: The rural job scheme will no longer be about digging pits and filling potholes here and there, often without much purpose, just so the village poor can be paid somehow.

It will now build assets for the country — such as rural hospitals, schools, bridges and irrigation canals — so it can become an “overall driver of the rural economy’’, officials say.

For instance, some 230,447km of rural roads will be built by 2012 under the scheme, says a draft policy on its expansion being finalised by the rural development ministry. The target till next March is 46,000km of roads.

The expanded National Rural Employment Guarantee Scheme (NREGS) is expected to be unveiled on August 20, the birth anniversary of former Prime Minister Rajiv Gandhi.

“The NREGS will no longer be a plain job guarantee scheme where projects are created just to find 100 days’ job a year for the poor. We will focus on creating permanent assets,” a rural development ministry official said.

The new policy seeks a “convergence” of the scheme with development programmes run by other ministries such as those for health, water resources, education, forests and environment, and agriculture.

Building a hospital or school will not only help the National Rural Health Mission and education programmes, it will also save the health and education ministries money on wages. The convergence experiment —which may also include afforestation and fishery work — will be carried out initially in 115 select districts.

The scheme now mostly involves odd jobs such as repairing roads, building temporary check dams and digging pits. Various social auditing teams that have visited NREGS sites have complained that thousands of pits were being dug across the country without any utility or purpose.

“The main problem has been the lack of enough co-ordination between the Centre and the states at the district level in conceiving projects. So, a lot of money has gone into projects that are of not much use. From now on, there will be more co-ordination,’’ the official said.

If assets are to be built, NREGS jobs will need skilled workers more than ever. The new policy plans to induct semi-skilled and skilled workers if they are willing.

One other feature is imparting skill training. The job scheme’s beneficiaries will now be trained to weave, care for children, the sick and the elderly, maintain school buildings and public toilets, even to help anganwadi workers. The related ministries will provide the training.

The draft policy also wants to involve more small and marginal farmers, who make up about 85 per cent of India’s agricultural community.

One suggestion the rural development ministry is apprehensive about accepting is that the beneficiaries be allowed to work as labourers on paddy fields where there is a shortage of workforce.

The problem is, the paddy fields would mostly be in private hands. “It is a touchy subject since many will oppose government money flowing into private hands through the scheme,’’ the official said, adding this could open the way for abuse of the scheme.

The official said funds would not be a problem for any project under the scheme: the rural development ministry had received a 144 per cent hike in its budget.

 

[ajay_ijn]

Unfortunately, IT and High-Tech industry will only make the existing middle class richer. The only known way to make the majority wealthier is manufacturing.

China did this all through the 90s by manufacturing everything under the sun. India is going nowhere unless we either replicate the Chinese model, or come up with our own way of creating productive mass-employment (not these useless government work yojanas - i.e. dig a ditch and fill it up again)

can't replicate chinese model in manufacturing. India realised that with SEZs. just can't replicate them. you need consensus of everybody before moving ahead. its not required in china but necessary in India. for example look at Singur episode.

Communists tried the china way at Nandigram and realised that such things simply do not work in India. Even for states who have forcibly implemented business friendly environment, they are criticized by the displaced people, environmentalists.

South Korean steel company Posco is almost fighting a war with farmers in Orissa who seem to determined not give up their lands. almost every steel company has projects delayed for long time coz of land aquisition.

People in many underdeveloped areas who are least connected with rest of economy will never welcome manufacturing projects. for them land is everything they have. they don't care about how modern economies work. they are very much sure that govt and company will cheat them and will not fulfill promise of compensations or providing them land at some other location.

if a person in urban people distrusts Indian govt and leaders, how can we expect people in remote areas to trust govt.

Environment clearences is another major challenge. Not a single major hydropower project has been allowed to move ahead smoothly because of serious environment concerns and the displacement of many villages. Govt doesn't seem to give up and neither does the people fighting against project. So it goes on and project gets delayed endlessly.

Fortunately IT and Hi-tech sector has no such problems because they required small amount of land in cities which real estate sector will happily provide them. also they don't need dedicated roads, railway lines, big power plants, ports to function. it explains why Govt so eager to provide computers to schools in villages even there is no power for most of the time, even basic amenities are not there. They want students to directly jump start and get used to computers.

 

[johnee]

IMO, Our growth is quite inclusive(atleast it benefits middle class and is not limited to uber rich) but not as inclusive as desired(because it leaves the poor). But I guess, it takes time. If we continue to grow, then we will surely see 'trickle-down effect'. I believe that in any society, first the rich get the benefits, then the middle class, then the poor. Its a slow process, but thats how it works.

I am of course, not defending our lethargic and corrupt political class or Babudom, but the lethargy and corruption of a society, IMHO, are directly proportional to the state of society. As everyone in society can afford to get their two meals a day, they concentrate on education, as they concentrate on education, they demand that political class and babus do their duty. So accountablity increases, which leads to growth, which leads to accountablity and so on. Its a cycle. The reverse is also true: as people become poorer, they only worry about their next meal, politicians and babus are free to do whatever they like. No growth leads to no accountability, which leads to no growth, which leads to no accuntability and so on. So, the important thing IMO, is that not to let the process of growth get jeopardised. India must keep growing...

 

[ajay_ijn]

But I guess, it takes time. If we continue to grow, then we will surely see 'trickle-down effect'. I believe that in any society, first the rich get the benefits, then the middle class, then the poor. Its a slow process, but thats how it works.

not only for longer time but at higher growth rates. we haven't reached double digit at all and we are expecting poverty to reduce drastically fall with 5 years of 9% growth.

That 9% was because of high manufacturing growth rate which backed Services sector, the main engine of our growth.

last year it was the agriculture which supported the services growth and help growth to reach 6.7%.

 

[NSG_Blackcats]

We have to pay certain price for being a democracy. No matter what we do there will always be delays in decision making. Political parties will afraid to take decision that might be good in the long term but unpopular in short term because they have to go back to people for vote. The Chinese Govt. has no such fear. So we can't replicate Chinese way of work culture in India.
Back on topic, as we all know 70% of India population lives in rural areas.

So we have to develop our rural economy. Now how can we do that?

Increase substantial amount of private investment in agro based industry. Each state in India has some special fruit to offer, like apples in J & K, oranges and grapes (Maharashtra), Mango (Maharashtra, UP, Karnataka, AP), Lichi (Bihar, Jharkhand) etc; so Govt. should provide 100% tax benefit to private firms for building food processing industry and cold storages there. Now only a few states like Kerala, AP encourages their farmers to go for cash crops. Now here other state Govt. can follow.

Now Textile industry in India is the second highest employer after agriculture. It is really in a bad shape. Govt. is only talking of reviving it but nothing substantial has been done.

We always say Gujarat is doing a great job in terms of development. The diamond industry in Surat is world famous. Some 6 lak (0.6 million) are employed in this industry. But in this recession Govt. had no backup plan for these workers. They have no social security which could have help them survive 15/16 months before the demand is up again.

IT, ITES can only help few millions in India (in terms of getting employment). We need Textile, Steel, food processing, gem and jewelry, agriculture and lot of other industry to bring a lot of Indian to economic prosperity.

 

[RPK]

Indian rupee near 2-month highs; stocks watched

Rupee gains tracking weakness in dlr versus majors

* Further rise towards 47.25 seen in the near-term, dealers

* Traders watch local shares for clues on foreign fund flows (Updates to mid-morning)

MUMBAI, Aug 4 (Reuters) - The Indian rupee rose for a fourth consecutive session on Tuesday as weakness in the U.S. unit versus other majors underpinned market sentiment, but choppy trade in domestic shares limited the local unit's gains.

At 10:40 a.m. (0510 GMT), the partially convertible rupee INR=IN was at 47.54/55 per dollar, off an early high of 47.43 -- its strongest since June 12 and 0.2 percent above its Monday's close of 47.635/645.

"The rupee is largely tracking global cues, but the currency has reversed its short-term direction. It is likely to trade in a 47.40-47.70 band today," a senior dealer with a foreign bank said.

The dollar stayed near its lowest level this year against a basket of currencies on Tuesday, as bullish global stock markets and upbeat economic data lifted investor risk appetite, denting the greenback's appeal. [USD/]

The main shares index .BSESN started the day on a shaky note. It opened up 0.2 percent and then rose past 16,000 points for the first time in 14 months before falling back. [.BO]

Foreign fund buying of local shares has been a key support for the stock market as also the domestic currency. Foreigners bought shares worth $2.4 billion in July, taking net purchases to $7.5 billion so far in 2009.

Dealers said they would monitor any dollar buying intervention by the central bank to prevent sharp appreciation in the rupee.

One-month offshore non-deliverable forward contracts PNDF were quoting at 47.56/66, largely steady compared to the onshore spot rate.

"The simultaneous move of the EUR/USD above 1.44 and Sensex above 16,250 points is good enough to push the USD/INR into the 47.25-47.40 zone," J. Moses Harding, head of global markets at IndusInd Bank wrote in a daily note.

"The near-term range has clearly shifted into 47-48 and consolidation of the EUR/USD within 1.44-1.47 and Sensex within 16,000 to 16,500 will call for further shift into 46.50-47.50," he added. (Reporting by Swati Bhat; Editing by Himani Sarkar)

 

[NSG_Blackcats]

ONGC drills for oil off Kochi coast​

Government-run explorer Oil and Natural Gas Corporation (ONGC) started a major oil exploration drill off the Kochi coast on Sunday. ONGC chairman and managing director R S Sharma, who formally launched the drill, said it would take 101 days to get a complete picture of the oil prospects in the area.

Video

 

[ajay_ijn]

We always say Gujarat is doing a great job in terms of development. The diamond industry in Surat is world famous. Some 6 lak (0.6 million) are employed in this industry. But in this recession Govt. had no backup plan for these workers. They have no social security which could have help them survive 15/16 months before the demand is up again.

Do textile employees have any saving schemes to rescue them from such downturns?,

because micro-lending and saving schemes are being ecouraged in rural areas to spend wisely and plan for long term and not get trapped in high debt.

the so called NREGA itself is a program for social security. you dig pits, refill them, get some money and live with that. Even for that Govts finances are getting drained, yet its known to be mostly as a failure. It did create one more trouble for the country, increased contruction labour prices.

 

[RPK]

Airtel bags project from Bhutan govt

Airtel bags project from Bhutan govt

NEW DELHI: Telecom firm Bharti Airtel has entered into an agreement with the Bhutan government for creating a new terrestrial cable network in the
neighboring country.

Airtel has inked an MoU with the Royal Government of Bhutan to extend fibre connectivity to the Himalayan Kingdom, Bharti Airtel said in a statement today.

"At Bharti, we have always believed in undertaking business projects that have a positive impact on the society at large. The launch of Bhutan Fibre Connect is reiteration of Bharti Airtel's commitment to building a truly global network," Bharti Airtel Chief Executive Officer and Joint Managing Director Manoj Kohli said.

The initiative will enable enterprises in Bhutan to reach out to different countries by accessing Bharti's cable assets, through its international cable landing stations in Chennai and Mumbai.

"...Bhutan has identified Information and Communications Technology as a priority sector for creating an Information Society, providing government services to citizens and businesses through the deployment of e-Government solutions and further the growth of the IT/ITES industry and data centre market in Bhutan," Royal Government of Bhutan Minister for Information and Communications Lyonpo Nandalal Rai said.

 

[Singh]

Column : Growth that’s even more inclusive

Column : Growth that’s even more inclusive​

Will India’s growing middle class drive its social and economic transformation? The investment community, both global and Indian, has been licking its lips at the prospects of India’s middle class market. Middle class values are thought to be sources of good social, political and economic behaviour. But there is nothing guaranteed here. Many countries with large middle classes faltered in the development process. Today’s industrialised countries grew slowly by the standards of India’s current aspirations. A lot will depend on questions of development design.

Why does the middle class matter for development? Consumption patterns shift increasingly out of basic necessities into the whole array of goods and services that power growth in output and jobs, including housing, transportation, consumer durables, health and education services. Middle classes have the resources, and develop the values, that can more effectively press for better government and can underpin stronger aspirations for the future.

However, there is nothing automatic here. To start with, in global terms, India’s middle classes are small. If we take a cutoff of (purchasing power adjusted) $2 a day—around Latin American poverty line—then only the top 30 percent of urban Indians, and the top 20 percent of rural are ‘middle class’, according to the last National Sample Survey. And if we take a cutoff of $10 per day (around the US poverty line), then we are looking at way under 5 percent of the population that could be described as ‘global middle class’. Yet, India is on the cusp of changes in which interactions with middle groups and the behaviour of global middle class will be highly influential.

So, what makes a difference? One of the biggest questions is whether the middle classes opt out. Middle class households who can afford to choose, will abandon inefficient or corruption-ridden government services. This is happening fast in education and health, and is well on the way in urban enclaves, at least for the global middle class. If casual violence rises, there’ll be a rise in private security.

India looks vulnerable to an unhappy resolution. India’s middle classes are being formed with a degree of awareness of global standards of consumption and services that is unprecedented in history. And politically, it is harder to form alliances between middle and poorer groups for better government, owing to the socio-cultural fissures of caste, religion and language. Better off Indians already vote less than the poor. India could easily head for a bad equilibrium of low quality government services for the poor, while the middle classes go for alternatives.

So, what does this imply? It gives a whole different meaning to the idea of inclusion. It is, of course, central to include the poor and near-poor—say, the bottom 40 percent—in the development process. But for the dynamics of both growth and government behaviour, it is equally important to keep both middle groups and the global middle class in the system, as beneficiaries of public services and sources of pressure on governmental accountability.

Achieving such a broadened idea of inclusion is fundamentally a question of genuine, universal citizenship. But it is also highly relevant for practical questions of policy design. Policies need to be shaped in ways that benefit the poor, middle groups and the global middle class. Of greatest importance is for government to effectively deliver on genuine public goods.

But I think the area in which there is both greatest danger and greatest potential is urban development. This is where most of India’s middle groups and the vast majority of the global middle class will be living in years to come. It is a domain now thick with dysfunctional resolutions of service provision, costly and corrupt fights over land, and emerging opt-out. Yet there is potentially a common interest amongst all groups in having livable and well-functioning cities.

Unfortunately, urban policy is an area in which current policy is woefully inadequate by global standards. Putting more resources into the JNNURM is a good thing, but the real problem lies in the failure to take on the central issue of urban governance, with genuine decentralisation to cities, linked to greater citizen participation. There will be big resistance, not least from state governments which would lose control and sources of patronage. But in the absence of genuine devolution and democratisation of cities and towns, it is hard to see the creation of social and political coalitions across the classes, or effective resolution of problems of urban service delivery. India’s development dynamic could be undercut by failures of inclusion of both the poor and middle classes.

The author is at the Harvard Kennedy School, the Institute of Social &Economic Change and the Centre for Policy Research

Column : Growth that’s even more inclusive - The Financial Express

 

[RPK]

Reliance Infra bags Rs 11k-cr Mumbai Metro-II project

Reliance Infra bags Rs 11k-cr Mumbai Metro-II project

New Delhi: Reliance Infrastructure, which emerged as a single bidder in the second phase of Mumbai metro, has bagged the Rs 11,000 crore contract from the Mumbai Metropolitan Region Development Authority (MMRDA) to develop the 32-km stretch over a concession period of 35 years, which can be extended by 10 years. The project will be operational by 2015.

With the company already implementing metro projects worth Rs 5,241 crore in Delhi and Mumbai, this agreement takes the total exposure of the company to metro development at Rs 16,241 crore.

Other partners in the consortium that will implement the project on a build operate and transfer (BoT) basis include SNC Lavolin Inc of Canada, Reliance communication and MMRDA. SNC Lavolin Inc is Canada’s largest engineering company which is designing an Algerian city to house 80,000 people.

Reliance Infrastructure is likely to achieve financial closure for the Mumbai Metro Phase II within nine months of signing of the contract. With the LoA being awarded to the company today, the concession agreement will be signed in 45 days.

Speaking on funding for the project a top company official said, “Out of the capital outlay of Rs 11,000 crore for the project, we will get Rs 2,298 crore as viability gap funding from the MMRDA.”

However, the company has not yet decided the mode in which it will raise the balance amount but expects to do so soon. “Deciding upon the debt:equity ratio requires preparing a financial plan. The financial plan will be ready in a couple of months. We will tie up the funds required for the project within nine months,” the official added.

Mumbai Metro-II Line, which will link Navi Mumbai and the Western suburbs, connecting Charkop in the North to Bandra and then to Mankhurd in the East, will come as a respite for 12,00,000 commuters daily.

 

[NSG_Blackcats]

Bharti Airtel plans bid for Millicom Sri Lanka network​

MUMBAI (Reuters) - India's Bharti Airtel plans to bid for telecom operator Millicom's Sri Lankan mobile network, the Economic Times said on Wednesday, citing two executives familiar with developments.The move would make it the second largest mobile phone operator in the island nation, trebling its user base from one million now, the paper said. A spokesman for Bharti told Reuters he would not comment on market speculation.

Bharti will have to compete with an array of suitors such as Malaysia's Axiata Group, Russia's Vimpelcom and United Arab Emirates Etisalat, which are reportedly interested in Millicom's Asian assets, including Tigo network in Sri Lanka, the report said. Millicom International had put its operations across Cambodia, Laos and Sri Lanka on the block in July, the report said.

Bharti's Sri Lankan arm has already invested $125 million in the country against a commitment of $250 million, the paper said. Bharti is in exclusive talks with South Africa's MTN aimed at a merger to create the world's third-biggest telecoms firm.

Link

 

[EnlightenedMonk]

Top 100 tax defaulters owe Rs 1.41 lakh crore

Top 100 tax defaulters owe Rs 1.41 lakh crore

Country's largest state-owned bank State Bank of India (SBI), automobile giant Tata Motors and oil major Indian Oil Corporation, besides Sahara India and its promoter Subroto Roy figure in the list of top 100 tax defaulters in the country.

Disclosing the list of defaulters in the Rajya Sabha on Tuesday, the Minister of State for Finance S S Palanimanickam said in a written reply that top 100 tax defaulters owe to the exchequer Rs 1.41 lakh crore - more than three times the amount the government spends on National Rural Employment Guarantee Act (NREGA) scheme annually to provide employment to Below Poverty Line families.

The Centre is taking various steps to recover the outstanding dues, the Minister said, adding that the government has requested the adjudicating authorities like ITAT and Settlement Commission "to dispose of high demand cases expeditiously."

As per the list, disgraced stud farm owner Hassan Ali Khan tops the list of tax defaulters with an outstanding arrear of more than Rs 50,000 crore.

The list of tax defaulters also includes stock broker late Harshad Mehta and his associates and other brokers like AD Narrotam and Hiten Dalal.

While the SBI owes Rs 333.6 crore in taxes, Tata Motors and Indian Oil Corporation have to pay Rs 206.5 crore and Rs 210.3 crore to the treasury.

As regards Sahara, many of its group companies figure in the list of defaulters, while its promoter Roy owes Rs 230 crore to the exchequer.

Among leading public sector undertakings, BSNL has a tax demand of about Rs 2,417 crore, while NTPC faces a demand for Rs 622 crore. VSNL Ltd (now Tata Communications Ltd) has a tax demand of about Rs 505.5 crore.

Among Sahara group companies, Sahara India and Sahara Airlines (now Jetlite) figure among tax defaulters apart from Sahara India Financial Corporation Ltd.

Besides, corporates which owe taxes to the government are Coca Cola India (Rs 600 crore), Baron International (Rs 589 crore), Oracle Corporation (Rs 558 crore), Rolex Holding Ltd (Rs 558 crore), Aaditya Luxury Hotels (564 crore) and Reliance Energy (Rs 176 crore).

Nokia, Daewoo Motors, Bunge India Ltd, Tata Industries, Satyam Computers and IBM Pvt Ltd are other companies which have been named on the list.

The Minister said that these tax demands also include those which are difficult to recover for various reasons like demands notified under Special Court, inadequate assets and companies under litigation.

However, among special measures being taken by the government to expedite recovery of default taxes includes monitoring of the recovery of amount in large cases by a Task Force. "Invariably arrear demand above Rs 25 crore is monitored by CBDT and between 10 crore and 25 crore by CCIT/DIT (Recovery)," the Minister said.

Top 100 tax defaulters owe Rs 1.41 lakh crore

 

[RPK]

L&T bags orders worth Rs.853 crore

Mumbai (IANS): Construction and engineering major Larsen and Toubro (L&T) Wednesday said it had bagged contracts worth Rs.853 crore for setting up coal handling plants in Uttar Pradesh and Tamil Nadu.

L&T has received a contract from Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVNL) and Neyveli Lignite Corp for setting up coal handling plants at Anpara in Uttar Pradesh and Tuticorin in Tamil Nadu, the company said in a regulatory statement.

The scope of work of these two contracts includes basic and detail engineering, supply, erection of mechanical, electrical and instrumentation works, complete civil and structural works, testing and commissioning.

 

[NSG_Blackcats]

Five more power plants seek gas from RIL's KG fields​

NEW DELHI: Five more power plants have joined the scramble for natural gas from Reliance Industries' KG-D6 fields, seeking a minimum allocation of 4.73 million cubic meters a day. Two power plants each in Delhi and Andhra Pradesh and one in Gujarat have sought gas from of RIL fields before they are commissioned this fiscal, a government official said.

RIL is currently producing 36 mmscmd gas from KG-D6, half of which goes to power plants. The firm has the capacity to produce 60 mmscmd but is constrained to produce less as the government is yet to identify customers for buying gas beyond the initial 40 mmscmd, allocated primarily to fertiliser and power producers in accordance with the Gas Utilisation Policy.

RIL cannot sell gas to these and other users including its own refineries, which are starved of the fuel, unless allocation is approved by the Government. The official said the Central Electricity Authority, the technical arm of the Ministry of Power, has recommended 1.37 mmscmd of gas to Lanco's 366 MW Kondapalli extension project, which will be commissioned in February 2010.

It sought 1.21 mmscmd for the 374 MW Utran plant in Gujarat, which will go on stream in November, and 0.82 mmscmd for the 220 MW Tanir Vavi plant before its commissioning in March 2010. For the 108 MW Tithalia and 250 MW Bawana power plants in Delhi, the CEA recommended 0.40 mmscmd and 0.93 mmscmd of gas from KG-D6.

Link

 

[NSG_Blackcats]

the so called NREGA itself is a program for social security. you dig pits, refill them, get some money and live with that. Even for that Govts finances are getting drained, yet its known to be mostly as a failure. It did create one more trouble for the country, increased contruction labour prices.

When it comes to FMCG good, Pricing of Petroleum products we say Govt. should deregulate them and let the market forces decide their price. On the other hand due to programs implemented in NREGA if the labourer is getting Rs. 40/50 more in the construction industry we make it a big issue. This shows our mentality, the rich should be richer and the poor should live in despair.

Now what is the aim of NREGA? It tries to give 100 days (min) of employment to people in rural areas. The work location will be within 5/10 km where he/she lives. The programs are implemented when the cultivation season is over and the framers have to sit ideal. In a way it tries to bring down the migration of people from rural India to urban area and cities. That is why the cost of labour is increasing in construction Industry. I strongly welcome this. If a poor labourer who has no social security, who works in unsafe conditions; gets Rs. 40/50 more a day, what is wrong in that!!

 

[RPK]

World Bank unit invests in VW Pune plant

WASHINGTON (Reuters) - The International Finance Corp, the World Bank's private-sector lender, said on Wednesday it would invest 135 million euros in Volkswagen India's manufacturing plant in Pune to help create jobs locally.

IFC said the financing would consist of a 60 million euro loan from its own resources and an additional syndicated loan worth 75 million raised through commercial banks Socit Gnrale, Bank of Mitsubishi, DBS Bank, and Fortis Bank.

In addition, the European Investment Bank and German development bank KfW are considering further loans to meet the project's remaining financing needs, IFC said

Construction of the plant, which will have the capacity to produce 110,000 cars, started in 2007 and Volkswagen AG has invested about 245 million euros in the project.

"This investment demonstrates the important counter-cyclical role IFC plays in supporting a vital project with significant job-creating potential during challenging times," said Dimitris Tsitsiragos, IFC director for global manufacturing and services.

"The investment will also support the development of India's car manufacturing sector and sends a strong signal to other investors in the country," Tsitsiragos added.

 

[RPK]

20,000MW solar mission gets nod - India - NEWS - The Times of India

NEW DELHI: In a step forward, the Solar Mission under the National Action Plan on Climate Change got an in-principle nod from the PM with an
ambitious target of 20,000MW solar power by 2020 being accepted.

In a meeting that lasted over two hours, the Climate Change Council headed by the PM suggested several changes and alterations to the mission details which will now be incorporated in the final document. The mission document had become contentious with institutional framework and unrealistic costs being some of the key issues being raised by council members and involved ministries. These issues came up again with a more realistic cost of the programme being suggested to correct projections of when grid-parity would be attained for solar power.

The PM’s council recommended that the character of the mission be altered to make it more regulatory in character than one that provides subsidy to solar power manufacturers and generators.
Several members pointed out that the existing mechanisms for renewable energy had failed to meet expectations. It was also pointed out that the draft document had paid little attention to solar-thermal and more towards photovoltaic. Council members recommended that with India having a manufacturing base in solar-thermal and the possibilities of cost reduction being higher in it, the mission should give higher weightage to solar-thermal.

It was also decided to build in a special focus on research and development, which, several members and ministries had earlier pointed, was missing till date in the proposed solar mission. Other members states that while keeping an ‘ambitious’ target the solar mission should be built within an ‘enabling framework’ emerging from international negotiations. It would be important to demand technological and financial support from the international community under the UN negotiations for such a huge target for clean energies due to the uncertainty of the costs, it was stated.

Issues were also raised about the institutional framework recommended which comprises of a commission along the lines of the Atomic Energy Regulatory Commission and an authority to carry out implementation. Concerns about the weakness in the atomic commission as well as the wind-power generation system were also raised.

 

[NSG_Blackcats]

Govt releases 25.46 bln rupees for textile fund​

NEW DELHI (Reuters) - The government has released 25.46 billion rupees of subsidies to textile firms to upgrade their technology, textile minister Dayanidhi Maran said on Thursday. Maran said the fund under the technology upgradation fund scheme would reach beneficiaries in three working days. Maran also said a committee to formulate a national fibre policy has been set up and would submit its recommendations in three months.

Link

 

[I-G]

India-S Korea CEPA to be signed on Friday in Seoul

India-S Korea CEPA to be signed on Friday in Seoul

Updated on Thursday, August 06, 2009, 18:02 IST

New Delhi: India and South Korea will sign in Seoul tomorrow the Comprehensive Economic Partnership Agreement (CEPA) opening up trade and investment between the two countries.

The CEPA comprises six agreements relating mainly to opening up of trade in goods, services and customs. It would give a boost to the more than USD 10 billion bilateral trade.


India's exclusion and sensitive list contains mostly agricultural, textiles and auto sector items.

The CEPA negotiations had started in March 2006 and were concluded in September 2008. The Cabinet had approved the pact last month.

In 2007-08, India exported USD 2.85 billion worth of goods to South Korea, posting a rise of 13.5 per cent over the previous year.

Commerce and Industry Minister Anand Sharma and several senior officials have left for the South Korean capital.

India-S Korea CEPA to be signed on Friday in Seoul