My Application Form Status

Check the status of your application form with Angel Broking.
CPWD gives up old construction methods; shifts to efficient, green construction technology
Jun 03,2016

Governments construction major, the Central Public Works Department (CPWD) will henceforth, adopt modern Monolithic construction technology for all major projects of Rs.100 cr and above each, abandoning traditional methods of construction which are marked by several disadvantages.

Monolithic construction, being followed in countries like the US, UK, Russia, Germany and some other European countries, China, Singapore and Malaysia enables column free and integrated timber and brick free construction of walls and roofs. This reduces the construction completion cycle from 3 weeks per floor under traditional load bearing and Reinforced Cement Concrete methods to less than a week.

Minister of Urban Development Shri M.Venkaiah Naidu approved the technology shift by CPWD in the context of rising concerns over dust pollution, recommendation of the Standing Committee on Urban Development and observations of National Green Tribunal and the Supreme Court over the alarming levels of Air and Noise Pollution in Delhi and other major cities of the country. This comes as a part of the Reform Agenda for CPWD set by the Ministry.

Benefits of Monolithic construction technology which is suited for large housing projects and office complexes include; cost saving due to reduced construction time, much lesser air and noise pollution and construction waste, no use of timber, optimum use of water, better finish, durable construction, all weather construction, increased labour productivity etc. Only Ready Mix Concrete (RMC) will be used doing away with the need of moving sand, cement, aggregates, bricks and steel shuttering materials to the construction site.

This technology also furthers the cause of Swachh Bharat Mission by ensuring neat and tidy workplace with minimal environmental pollution and of Skill India Mission with industry taking up skill upgradation activities while enabling Skill, Scale and Speed in large construction works. Monolithic technology is validated by the Building Materials and Technology Promotion Council of the Ministry of Housing & Urban Poverty Alleviation.

Disadvantages of traditional constructions methods include ; air, water and noise pollution, hazardous working conditions at site, inadequate control over quality of construction, work progress subject to weather conditions, longer construction time etc.

Out of the total works executed by CPWD during 2015-16 at a total cost of Rs.4,988 cr, large scale construction projects amounted to a total cost of Rs.2,301 cr.

Powered by Capital Market - Live News

Dr Jitendra Singh directs targeted approach for Seeding of Aadhaar numbers in Pensioners Accounts
Jun 03,2016

The Union Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), MoS (IC) for Youth Affairs and Sports, MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr Jitendra Singh has directed that priority should be given to pensioners visiting the bank branches for seeding Aadhaar number in their bank account. Dr. Jitendra Singh said Pensioners can approach their paying branches with the PPO, Aadhaar card and bank pass book for trouble-free seeding.

Special AADHAAR Seeding Camps are being held from May 30, 2016 to June 10, 2016. These camps are being organised all over the country in Pension disbursing banks and their branches. Dr. Jitendra Singh said that it is hoped that a large number of Pensioners will be able to benefit from these camps. So as to reach the pensioners and family pensioners located in the remotest corners of the country, this event will be publicised through radio jingles, hand bills, local cable TV network etc., he added

Various steps are being taken by the Government and Pension Disbursing Banks to sensitize Pensioners and Bank Branches and to link up Aadhaar number, PPO number and Bank Account Number so that all Pensioners can avail of the Jeevan Pramaan facility.

Dr. Jitendra Singh said, in case the Pensioners do not have an Aadhaar number they can avail of the special facilities set up for this purpose in the bank premises.

Jeevan Pramaan is an initiative launched by the Department of Pension & Pensioners Welfare, especially for the benefit of the aged and infirm Pensioners/Family Pensioners. Under the scheme Digital Life Certificates can be submitted by Pensioners from personal computers and laptops at home or by visiting a conveniently located Common Service Centre or the nearest branch of any Pension Disbursing Bank. Submission of Digital Life Certificate also ensures authenticity of Pension Payments. So far, more than 15 lakh Digital Life Certificates have been attempted.

Powered by Capital Market - Live News

A Memorandum of Understanding (MoU) Signed Between Ministry of Railways and Govt. of Haryana for setting up of JV Company
Jun 03,2016

In the august presence of Union Minister of Railways, Shri Suresh Prabhakar Prabhu and Chief Minister of Haryana Shri Manohar Lal Khattar a Memorandum of Understanding (MoU) for n++Formation of Joint Venture Company for Development of Railway Infrastructure in the Staten++ was signed on 3rd June, 2016. Chairman, Railway Board, Shri A.K. Mital, Addl. Chief Secretary to Govt. of Haryana Shri Hardeep Kumar, and other Board Members, and senior officials from both the sides were also present on the occasion. The MoU was signed by Shri Ved Prakash Dudeja on behalf of Railway Ministry whereas it was signed by Shri Hardeep Kumar, Addl. Chief Secretary on behalf of Govt. of Haryana. The MoU was signed in the context of Railway Ministers Budget Announcement regarding setting up of JV Companies with the State Government for developing railway infrastructure in the States.

Salient Features of MoU : -

n++ In view of the growing demands for railway lines in various states and huge requirement of funds to execute them, Honble Minister for Railways announced in his budget speech regarding setting up of Joint Ventures with states for focused project development, resource mobilization, land acquisition, project implementation and monitoring of critical rail projects.

n++ 17 State Governments consented for formation of Joint Venture Companies in collaboration with the Ministry of Railways for development of rail infrastructure in their respective States. Draft MoUs were sent to these State Governments and discussions were also held with them to clarify various provisions of the MoU.

n++ MoUs have already been signed by the Ministry of Railways with six State Governments viz. Odisha, Maharashtra, Chhattisgarh, Andhra Pradesh, Telangana and Kerala.

n++ Today, MoU is being signed with the State Government of Haryana. This signing of MOU is going to be a stepping stone for formation of JV companies.

n++ The MoU envisages formation of a Joint Venture company having 51% stake of the State Government and 49% stake of Ministry of Railways. Thus, the JV company shall be fully owned by the Government. The company will primarily identify projects and possible financing avenues in addition to Govt. of India and the State Government. After finances for a project are tied up, project specific SPVs or special purpose vehicles shall be formed. These SPVs can have other stake holders from Industries, Central PSUs, State PSUs etc. However, the JV companies shall be mandatory stake holders with minimum 26% shares in the SPVs.

n++ The ministry of Railways will sign a concession agreement of 30 years with the project SPV for safe and sound operation, revenue sharing and providing technical & marketing logistics to the SPV. The revenue sharing shall be based on already established formula being used for inter zonal apportionment of revenue.

n++ The most important aspect of this MoU is that the ownership of the land shall vest with the SPVs which is a departure from previous practice. This will give financial leverage to the company to exploit commercial potential of the land. This is likely to result in making project viable which are otherwise not viable.

n++ At the end of concession period, the railways will have option to take over the assets at a nominal price. This is largely in line with average codal life of the assets as most of the assets will need large scale replacement after 30 years.

n++ Signing of this MoU will be followed by signing of Joint Venture Agreement for which draft has been made ready. JV Agreements are likely to be signed in next week or ten days time.

n++ Indian Railways has been playing a major role in national integration by connecting the remotest places and bringing people closer to each other. Railways receive a large number of demands for network expansion as a railway line acts as an engine of growth for the area it serves.

n++ However, Railways have a large shelf of ongoing New Line, Gauge Conversion and Doubling projects needing about Rs 3.86 lakh crores to complete. We have been trying to meet the aspirations of public within limited availability of funds.

n++ To expedite the projects, Railways have been trying to mobilize resources through other than Gross Budgetary Support. However, on the initiative of Honble Minister for Railways Sh. Suresh Prabhu ji, Indian Railways have tied up funds for critical capacity enhancement project of doubling, third line, electrification etc. This tied up loan will ensure dedicated and assured funding for such critical projects.

n++ Formation of Joint Venture Companies with the State Governments will go a long way in faster commissioning of critical rail infrastructure projects as it will not only help in mobilization of funds but also in facilitating various clearances and land acquisition.

Powered by Capital Market - Live News

Gartner Says Worldwide Server Revenue Declined 2.3 Percent in the First Quarter of 2016, While Shipments Increased 1.7 Percent
Jun 03,2016

In the first quarter of 2016, worldwide server revenue declined 2.3 percent year over year, while shipments grew 1.7 percent from the first quarter of 2015, according to Gartner, Inc.

Although revenue declined, the first quarter of 2016 continued with a trend of low-level shipments growth on a global level with a variation in results by region, said Jeffrey Hewitt, research vice president at Gartner. The drop in revenues in light of shipment increases demonstrates that the servers that shipped during the period had lower average selling prices than those that shipped in the same time frame last year.

All regions showed a decline in either shipments and/or vendor revenue except for Asia/Pacific, which posted 9.7 percent growth in revenue and 8.4 percent growth in shipments for the period. Western Europe grew 1.4 percent in shipments and 1.5 percent in revenue. North America posted a 1 percent increase in shipments but declined 5.9 percent year over year in revenue.

The real driver of global growth continues to be the hyperscale data center segment. The enterprise and small or midsize business (SMB) segments remain relatively flat as end users in these segments accommodated their increased application requirements through virtualization and considered cloud alternatives, Mr. Hewitt said.

Hewlett Packard Enterprise (HPE) continued to lead in the worldwide server market, based on revenue, with a 25.2 percent market share (see Table 1). HPE was the only vendor in the top five to experience growth in the first quarter of 2016. Despite a decline of 1.4 percent, Dell maintained the second spot in the market with 17.3 percent market share. IBM secured the third position with 9.7 percent of the market, but experienced the largest decline among the top five vendors.

Table 1
Worldwide: Server Vendor Revenue Estimates, 1Q16 (U.S. Dollars)

Company1Q16 Revenue1Q16 Market Share (%)1Q15 Revenue1Q15 Market Share (%)1Q16-1Q15 Growth (%)HPE3,296,591,96725.23,191,694,94823.83.3Dell2,265,272,25817.32,296,473,02617.1-1.4IBM1,270,901,3719.71,887,939,14114.1-32.7Lenovo871,335,5426.7970,254,6597.2-10.2Cisco850,230,0006.5890,179,9306.6-4.5Others4,537,261,45734.74,157,871,70531.09.1Total13,091,592,596100.013,394,413,410100.0-2.3

In server shipments, HPE remained the worldwide leader in the first quarter of 2016, even with a year-over-year shipment decline of 1.6 percent (see Table 2). HPEs worldwide server shipment share was 19.4 percent, representing a 0.6 percent drop in share from the first quarter of 2015.

Of the top five vendors in server shipments worldwide, only Huawei and Inspur produced shipment increases.

Table 2
Worldwide: Server Vendor Shipments Estimates, 1Q16 (Units)

Company1Q16 Shipments1Q16 Market Share (%)1Q15 Shipments1Q15 Market Share (%)1Q16-1Q15 Growth (%)HPE526,11519.4534,55920.0-1.6Dell464,29217.1507,43319.0-8.5Lenovo199,1897.3220,3798.3-9.6Huawei130,7554.8105,8034.023.6Inspur109,3904.091,8473.419.1Others1,286,09747.41,209,31945.36.3Total2,715,838100.02,669,340100.01.7

Powered by Capital Market - Live News

Gartner Says Enterprises Should Create an Industry Vision for Digital Business Success
Jun 03,2016

Enterprises struggling with digital business transformation can most easily pursue digital business by creating a vision for their own industry, according to Gartner, Inc. According to Gartners 2016 CIO Agenda, executives expect that 41 percent of enterprise revenue will come from digital business by 2020, almost double what it was in 2015. Yet, in 2016 many enterprises have not started a digital business transformation.

Enterprises can transform by exploiting business moments or by using digital capabilities to enter or create new markets as Airbnb and Uber have done, said Jorge Lopez, vice president and distinguished analyst at Gartner. However, many enterprises will find it easier to start by creating a vision for digital business for their particular industry. This approach enables the enterprise to tilt the fundamentals of competition in its favor without limiting digital business to narrow sequences of events and committing to a vast building project. Once the enterprise has established its vision, it can more easily tackle business moments or leverage its digital capabilities in new markets.

To take this approach, CIOs who have been put in charge of digital business need to understand what an industry vision for digital business involves.

Broadly speaking, an industry vision shows what business could look like if enterprises use the Internet of Things (IoT) and smart machines to their full potential, explained. Mr. Lopez. For asset-intensive industries, digital technologies can automate operations on a large scale n++ not just individual business processes, but a whole operation end to end. Productivity will leap as smart automation makes better, faster decisions, and produces more at lower cost with fewer assets and fewer stoppages. At the same time, optimized production will usually reduce the enterprises environmental impact.

An industry vision consists of four parts:

1.Concept n++ An industry vision seeks fundamental change that will affect many dimensions of the business and operations. For example, an auto parts manufacturer that enables repair shops to 3D print plastic or composite parts, rather than having to order them and wait for delivery. The manufacturer would not have to buy raw materials, manage suppliers, manufacture the parts and distribute them to wholesalers. The economics of the business would change n++ a lot of costs would disappear. But other challenges would arise, such as creating an accurate digital description of each part and making sure repair shops have the right equipment, process expertise and material to print it.

2.Capabilities n++ The enterprise needs a new set of capabilities to make the digital business work. These capabilities will require expertise that the enterprise doesnt already have. In the above example, the parts maker would have to market the 3D printing service in new way to a new audience, and it would have to provide training to part suppliers on running a 3D printing operation and to maintain a help desk to field any problems the repair shops run into. The enterprise can develop some capabilities in-house (for example, the IT department can create 3D printing files). But it will need to find partners (a 3D printing company and the plastics or metal supplier) to set up the business and may need to acquire companies (perhaps one that runs help desks). Sales and marketing will need innovative contracts.

3.Assets n++ The enterprise needs a different set of assets to execute the business, including people, data and intellectual property (IP). The parts manufacturer will have to beef up its 3D modeling skills, its 3D printing knowledge, set up databases and networks to send the right files speedily, and start a digital marketing program to keep repair shops engaged. The enterprise will need to hire people to do this work. Those people will need good data about the parts and customers, plus analytics tools to analyze the business and operations. Since the new approach gives the enterprise a competitive edge, it must develop and protect its IP n++ a complex challenge since it must collaborate with partners that have their own IP.

4.Research n++ The new digital business is not static; it will expand into new areas. The enterprise will have to maintain a research program designed to add to the business and will need to experiment continually with new digital business possibilities. Those possibilities will require new technologies, so the enterprise will need research partnerships, especially with universities.

Powered by Capital Market - Live News

Universal Identity Cards for the Persons with Disabilities to be released soon
Jun 03,2016

The Union Government is ready with Universal Identity cards for the persons with disabilities. All the preparatory work has been done including design of the card by National Institute of Design, Ahmedabad. Very soon these will be passed on to the States for the distribution. State Governments have been asked to gear up themselves to identify the persons with disabilities in their respective states, so that within one and half year all the disabled persons can have universal identity cards. This was stated by the union minister for social justice and empowerment Shri Thaawarchand Gehlot while addressing State social welfare monsters conference. He said that these cards will be linked with the Aadhar card and data will be available online which will ensure transparency. The Universal Identity Cards will help the persons with disabilities to avail all Government schemes and reservation. These Cards will be recognisable by all the States.

Referring various scholarship schemes for the persons with disabilities started by NDA government in 2014-15, Shri Gehlot said that the Union Government is very keen that all deserving students with disabilities are assisted with these scholarships. He urged the State governments to launch a campaign from next academic year to identify such students, to award them scholarships. He said that to avoid any delay and leakages his ministry has adopted DBT channel to pass on the scholarships.

Shri Gehlot said that his ministry has committed to provide skill training to about 25 lakh the persons with disabilities and to arrange finance through NHFDC to economically empower them. He informed that during last 2 years 46000 disabled have been provided skill training and financial support by the corporation for starting their own venture.

Shri Gehlot asked the State Government to take advantage of the scheme for providing assistive devices to the persons with disabilities. He said that his ministry will provide all possible support in this effort. He said during last 2 years, 1850 camps have already been organised and 4,40,000 persons have been benefitted.

Under Sugamya Bharat Abhiyan, States were advised to give approval for the building plan only when it has accessibility provisions for the persons with disabilities as per recently issued NBCC code. He urged State Governments to identify public utility buildings, to carry out access audit and making it disabled friendly.

The minister said that a plan has been prepared to make about 3000 identified Union Government and State Government sites accessible to the persons with disabilities. 650 such sites already have been made accessible for the persons with disabilities.

Powered by Capital Market - Live News

Private sector activity sees weakest rise in May 201 6 since last November: Nikkei India Services PMI
Jun 03,2016

Growth of services activity in India softened for the second straight month in May, as new business inflows expanded at the slowest rate since July 2015. Although some firms took on additional staff, the overall pace of job creation was fractional. Input costs rose again, leading to a further increase in prices charged. Although service providers remained optimistic that output will expand in the year ahead, the level of confidence was the lowest recorded since February.

Falling from 53.7 in April to 51.0 in May, the seasonally adjusted Nikkei Services Business Activity Index pointed to a slight expansion in business activity that was the weakest since last November. Output rose in three of the six tracked categories, namely Transport & Storage, Post & Telecommunication and Financial Intermediation. The latter saw the strongest rate of increase.

Manufacturing production growth also eased, which combined with the slowdown in services resulted in a weaker increase in private sector output. The seasonally adjusted Nikkei India Composite PMI Output Index fell to a six-month low of 50.9 in May, from 52.8 in April.

Growth of new work at services firms eased for the second month running in May. Where new business inflows expanded, panellists reported aggressive marketing campaigns. Nonetheless, there were mentions that growth was restricted by increased competition and the assembly elections in some regions. Manufacturing order books increased at a quicker pace that was nonetheless modest.

There was ongoing evidence of spare capacity in the service sector, as unfinished business declined for the fourth successive month. Despite accelerating since April, the rate of backlog depletion was only moderate. Work-in-hand among goods producers also decreased.

Services staffing levels increased in May, following a stagnation in the prior month. But with only 1% of survey participants signalling higher payroll numbers, the overall rate of job creation was fractional. A marginal increase in manufacturing employment was also registered.

Amid reports of higher petrol prices, average cost burdens facing service providers in India rose during May. The latest increase in input prices was the eighth in as many months, but the rate of inflation eased since April and was lower than its long-run average. Conversely, cost inflation at manufacturers accelerated to the fastest since March 2015.

Service providers attempted to improve margins by raising their selling prices again in May. As has been the case throughout the current six-month sequence of inflation, the rate of increase in charges was weaker than for costs. By comparison, factory gate prices increased for the third consecutive month, but at the slowest pace in this sequence.

Services companies expect output to increase over the coming 12 months, but the degree of optimism weakened to the lowest since February. Exactly 15% of firms forecast activity growth, citing favourable government policies, improved marketing strategies, business expansion plans and hopes of better demand conditions.

Commenting on the Indian Services PMI survey data, Pollyanna De Lima, economist at Markit, which compiles the survey, said: Ongoing weakness in manufacturing and services was evident in May, with output growth losing momentum for a second straight month. Overall expansion across the two sectors was the lowest since last November, as was the case for new orders.

Latest PMI numbers raise doubts about the effectiveness of economic and monetary policies. The gloomy growth picture will be a concern to policymakers and will raise the chances of further cuts to interest rates by the RBI. This would be supported by subdued inflationary pressures, with May data pointing to weaker increases in both costs and charges.

Powered by Capital Market - Live News

Moodys: Reliance Communications FY2015-16 results can be accommodated in Ba3 ratings; outlook negative
Jun 03,2016

Moodys Investors Service says Reliance Communications Limiteds (RCOM) FY2015-16 results can be accommodated in its Ba3 corporate family rating and senior secured rating. The ratings outlook remains negative.

RCOMs consolidated revenues for Q4 ended March 2016 were up 3.8% year-on-year (YoY) to around INR59 billion; revenues from India operations, -- the largest contributor -- were up 6.5% over the same period. In India, a decline of 8%YoY in voice revenue in 4Q 2016 was offset by a 27% increase on non-voice revenues.

At the same time, RCOMs global operations-- accounting for approximately 19% of total revenues -- reported a 4% decline in revenues in 4Q 2016.

For the full year ended 31 March 2016 (FY2015-16), the company reported broadly stable revenues at INR221 billion, due mainly to its cancellation of licenses in five circles earlier this year.

RCOM reported EBITDA of around INR74 billion, with its EBITDA margin decreasing by 0.4% over the previous year to 33.6%. The decline in EBITDA margin is in line with Moodys expectation, owing to increased contribution of data revenues and higher customer acquisition costs, says Nidhi Dhruv, a Moodys Vice President and Senior Analyst.

Moodys estimates RCOMs adjusted, consolidated debt/EBITDA was around 6.3x for the year ended 31 March 2016, compared to 5.3x last year. This increase in leverage is notably due a INR38 billion increase in reported debt and the inclusion of INR33 billion deferred spectrum liabilities.

Upon the completion of the share swap transaction with Sistema Shyam Teleservices (SSTL unrated), RCOM will have adequate spectrum. However, should the company participate in the upcoming spectrum auctions, its leverage metrics will be further pressured.

RCOM also continues to have a strained liquidity profile, with the company remaining reliant on recurring covenant waivers due to its high leverage. There is also an ongoing need to refinance upcoming debt maturities.

RCOM has about $450 million in debt falling due in the quarter ending 30 June 2016, which includes a $350 million ECB facility at Reliance Infratel (unrated), which is guaranteed by RCOM and has a cross-default with other debt. Management is still in the process of renewing this facility with the banks and expects to complete the refinancing ahead of maturity.

Failure in obtaining final renewal approvals from the banks will lead to imminent ratings downgrade, which would be more than one notch.

There have also been further delays in the RCOMs deleveraging plans. In December 2015, the company announced that it had entered into exclusive discussions with Aircel Limited (unrated) for a potential combination of businesses. This deal has yet to close and RCOM has extended the exclusivity period for its discussions with Aircel by another 30 days to 22 June 2016, adds Dhruv, also Moodys Lead Analyst for RCOM.

In December 2015, RCOM entered into a non-binding and exclusive agreement to sell towers owned by its subsidiaryn++ Reliance Infratel (RITL, unrated)n++to two investment companies, Tillman Global Holdings, LLC (unrated) and TPG Asia, Inc (unrated). RCOM has made a public commitment to use the entire proceeds from the sale for debt reduction.

RCOM has also re-prioritized its strategies again, and now plans to announce the final binding tower sale transaction within two months from the completion of discussions with Aircel. This is a significant delay from our earlier expectations for the tower transaction to be confirmed within the June quarter, adds Dhruv.

Cumulatively, these transactions, when consummated, could benefit RCOM substantially. However, in our view, changes in the companys strategy continue to delay execution of its plans. Hence any tangible benefit to RCOMs financial and credit profile will now be delayed for at least 6-9 months.

The negative outlook reflects our view that ongoing delays in RCOMs rollout of its deleveraging plans will keep its financial and credit profile strained over the near term. Moodys will closely review the progress on RCOMs stated plans over the next 6-9 months.

The ratings could be downgraded if RCOM (1) experiences a significant deterioration in market share and/or competition intensifies, such that profitability deteriorates; (2) fails to execute its deleveraging plans in a timely manner; (3) encounters difficulty in complying with its financial covenant requirements, accessing capital to fund growth or repaying/refinancing debt, as and when it falls due; or (4) implements aggressive investment and/or shareholder return policies.

Specific indicators that Moodys would consider for a downgrade include: (1) adjusted debt/EBITDA failing to trend in line with expectations towards 4.0x by end-2016; (2) adjusted EBITDA margins falling below 30%; and (3) adjusted (funds from operations + interest)/interest remaining below 3.0x.

Furthermore, any unexpected regulatory developments in the Indian telecommunications sector will also be negative for the rating.

Given the negative outlook, an upgrade is unlikely over the near term. However, the outlook could stabilize should RCOM (1) continue to grow revenues and earnings of its core-Indian operations by increasing the number of subscribers and data revenue without compromising its EBITDA margins; (2) continues to generate positive free cash flow on a sustained basis; and (3) improves its liquidity profile significantly.

Specific indicators that Moodys would consider for stabilizing the outlook include: adjusted debt/EBITDA at 4.0x-4.5x; adjusted EBITDA margins between 30%-35%; and adjusted (funds from operations + interest)/interest over 3.0x on a sustainable basis.

Powered by Capital Market - Live News

Highway through the Mowgli Land gets 186 crore to take care of wildlife
Jun 03,2016

The National Highways Authority of India has demonstrated its firm commitment to the cause of wildlife conservation once again. For the road project of widening of the Madhya Pradesh/Maharashtra border - Mansar section of the existing NH-7 which cuts across the tiger corridor in the state of Maharashtra, NHAI has approved Rs. 186 Crore for wildlife mitigation measures to take care of any possible adverse impact on the tiger population in the Pench - Kanha Tiger Corridor. This is only a part of the amount to be spent for the purpose.

The total length of the project from Nagpur to Madhya Pradesh/Maharashtra border is 117 Km. Out of this, the work of 4 laning of about 79 Km, which includes the Nagpur Bypass, Kamptee- Kanhan Bypass and Kanhan to Mansar of existing NH-7, was completed in July 2012. However, the work of 4 laning from Mansar to MH/MP Border could not be taken up for want of tree felling permission and finalisation of mitigation measures to be adopted for wildlife habitat in and around the stretch. With all the statutory clearances in place, NHAI has resumed civil works on this stretch. As per the recommendations of the Wildlife Institute of India and the National Tiger Conservation Authority, also endorsed by the Honble High Court at Nagpur, NHAI is providing elaborate mitigation measures on the stretch. The measures include three elevated sections of 750m, 750m and 300m length, so that wildlife can move across the highway alignment following their natural paths. Besides these, 6 other wildlife crossings of different dimensions are also being provided.

Powered by Capital Market - Live News

Long Range Forecast Update for the 2016 Southwest Monsoon Rainfall
Jun 02,2016

The India Meteorological Department (IMD), Ministry of Earth Sciences, issues the operational long range forecasts for the southwest monsoon season (June-September) rainfall over the country as a whole in two stages i.e. in April and in June. The update for the forecast for the seasonal rainfall over the country as a whole, issued in April, was released today. The Forecast predicts rainfall over the country as a whole, for the 2016 southwest monsoon season (June to September), is most likely to be Above Normal (>104% to 110% of long period average (LPA)). 

The forecasts for the monthly rainfall for July & August over the country as a whole and for the season rainfall for the 4 broad geographical regions of India (NW India, NE India, Central India and South Peninsula) have been issued using a 6-parameter Ensemble Forecasting System. 

The 6 predictors used are: North East Pacific to North West Atlantic SST Anomaly Gradient (December + January), Southeast Equatorial Indian Ocean Sea Surface Temperature (February), East Asia Mean Sea Level Pressure (February + March), Central Pacific (Nino 3.4) Sea Surface Temperature (March to May + tendency between March to May & December to February), North Atlantic Mean Sea Level Pressure (May) and North-Central Pacific 850 zonal wind gradient (May). 

Recent changes in the atmospheric conditions over the Pacific reflect the weakening El Nin++o conditions. Latest forecast from IMD-IITM (Indian Institute of Tropical Meteorology) coupled model indicate ENSO (El Nin++o - Southern Oscillations) neutral conditions are likely to continue and turn to weak La Nina conditions in the latter part of the monsoon season. The rapidly declining El Nino conditions became moderate in early April 2016, weak in early May and now have turned to neutral ENSO conditions. 

Over Indian Ocean, the sea surface temperatures are warmer than normal over most parts except along the coast off central and south Africa. The latest forecast from IMD-IITM coupled model indicates positive Indian Ocean Dipole (IOD) conditions are most likely during early part of the monsoon season and same to turn to negative IOD during the latter part of the monsoon season. 

The Monsoon Mission Experimental forecast, based on the ESSO-IMD-IITM coupled dynamical model, suggests that the monsoon rainfall during the 2016 monsoon season (June to September) averaged over the country as a whole is likely to be 112% n++ 5% of long period model average (LPMA). The experimental five category probability forecasts for the 2016 monsoon season rainfall over the country as a whole using the experimental dynamical prediction system are 0% (deficient), 0% (below normal), 18% (normal), 18% (above normal) and 64% (excess). 

The details of the Second Stage Forecasts for 2016 Southwest Monsoon Rainfall are as follows: 

Quantitatively, the season rainfall for the country as a whole is likely to be 106% of the long period average (LPA) with a model error of n++4%. The LPA rainfall over the country as a whole for the period 1951-2000 is 89 cm. Thus there is no change in the updated quantitative forecast from the first stage operational forecast issued on 12th April, 2016. 

The 5 category probability forecasts for the Season (June to September) rainfall over the country as a whole is given below:

CategoryRainfall Range
(% of LPA)
Forecast Probability (%)Climatological
Probability (%)
Deficient< 90016Below Normal90 - 96417Normal96 -1043333Above Normal104 -1104016Excess> 1102317

The season rainfall over Broad Geographical Regions is likely to be 108% of LPA over North-West India, 113% of LPA over Central India, 113% of LPA over South Peninsula, and 94% of LPA over North-East India all with a model error of n++ 8 %.  

The rainfall over the country as a whole is likely to be 107% of its LPA during July and 104% of LPA during August both with a model error of n++ 9 %. 

Powered by Capital Market - Live News

Corporate Bond Issuances Muted; Issuers Lap Up Funds through CPs
Jun 02,2016

Muted earnings growth, sluggish private sector capex, and an overall environment of low demand-high leverage are expected to keep overall corporate debt supply subdued, says India Ratings and Research (Ind-Ra). Spreads on investment-grade bonds are likely to be stable backed by a steady appetite and an overall lower supply. Any spread compression hereon is likely only on the back of a benign global environment, an enhanced risk appetite, improved growth prospects, along with an improvement in the state of corporates balance sheet.

CP Refinancing: In Ind-Ras assessment, commercial papers (CPs) worth INR555.5bn are due for redemption over the coming six months with 84% of them arising from the three sectors - financial services, financial institutions, and oil and gas.

Issuance Space Dominated by Top Borrowers: Inter-sector divergence in access to capital market may play out as bond issuances in few sectors such as non-banking financial corporations, banking/term lending, and power (primarily renewables, transmission and UDAY bonds) will outpace the growth in issuances in other corporate sectors such manufacturing, engineering, and cement among others.

Demand to be Driven by Domestic Investors: The appetite for corporate debt will be driven by domestic investors. Given the nature of these investors, bond market development is likely to remain restricted in the AA and above categories. Credit quality issues may keep the outlook challenging for the issuers down the credit curve. However, the need for higher yields may necessitate some mutual funds to take exposure down the credit curve. Foreign portfolio investors are likely to focus on rate outlook and are unlikely to take a meaningful incremental exposure in corporate bonds. However, provident funds and insurance companies, along with domestic banks and mutual funds, will continue augmenting demand for corporate bonds, offsetting the waning appetite of foreign portfolio investors.

Ind-Ra presents its first edition of Indian Corporate Debt Market Tracker - a publication aimed at providing a complete picture of developments in the domestic primary bond market in terms of sectoral composition, rating mix, and CP issuance trends. The study pertains to the January to April 2016 period, unless otherwise specified. The study has been conducted based on the data obtained from Prime Database and pertains to the private placements for corporate bonds. The actual issuance amount may vary.

Powered by Capital Market - Live News

Funding - A Key Risk for E-tailers; Conventional Funding Unlikely
Jun 02,2016

Online retailers (e-tailers) are exposed to funding risks as their access to easily available private equity (PE) funds gets tighter, says India Ratings and Research (Ind-Ra). Ind-Ra further believes funding through the conventional bank lending route is highly unlikely; consequently they will need to look for specialised institutional investors which have a high risk appetite to avail of bridge finance. E-tailers which were flushed with PE funds up till 2015 have had lesser fortune this year, with muted deals during January-April 2016. The funding concerns have arisen at a time when e-tailers are undergoing a structural transition in their business model, involving considerable capital expenditure.

The agency believes that funding by PEs has slowed down and thus competitive pressure from new players in the e-tailer business may reduce, resulting in higher entry barriers. Thus established players will enjoy the first mover advantages and have limited operating expenses compared to the large capital expenditure (capex) that new entrants in the e-commerce space will need. However the Indian industry is exposed to competition from global players with deep pocket and strong parentage and they will continue to be a challenge.

The funding challenges have come at a stage when the e-tailers are attempting to move out of the deep discounting model to a more sustainable business model, by offering lower discounts, improving efficiencies and focusing on improving loyalty among customers, which requires a considerable investment commitment. As a result the existing players have large planned investments in the value chain namely logistics, payment banking, fulfillment centers and omni channels with a primary focus on improving the active customer base; enhancing customer loyalty and value add services. Additionally, e-tailers are also undergoing structural changes in terms of their business model, especially after the governments guidelines on Foreign Direct Investment (FDI) in E-commerce , which restricts e-tailers from using FDI funds in the inventory based model. Thus E-tailers are restructuring their business model to operate primarily as a marketplace rather than on the inventory based model. This entails increasing overhead costs on a recurring basis.

The transition to a more sustainable business model, with lower discounts will result in lower cash burn rate; hence the funding requirement is expected to be smaller than was previously seen in the previous rounds of equity raised. However since these players have planned investments in the entire value chain, funding requirements are expected to still be sizeable. In the event of unsuccessful rounds of PE funding in the future, e-tailers with high cash balances may have to use their cash surplus cautiously to fund growth in the short to medium term. This may jeopardise their organic growth and may result in losing market share to global giants. All of which may further impact the e-tailers valuations, which have recently taken a beating, shares of Flipkart India Pvt Ltd and Zomato Media Pvt Ltd were marked down by several investment fund houses. Ind-Ra thus believes that higher investments are imperative to maintain the growth momentum and e-tailers will need to find alternate funding sources.

Ind-Ras analysis of the top e-tailers indicates that players are maintaining a considerable amount of unencumbered cash to fund the upcoming planned investments. These constitute funds raised from the previous rounds of PE funding. Ind-Ra believes that home grown e-tailers (dependent on PE infusion without a strong parentage) have sufficient funds for planned investments in CY16, however funding in CY17 will be a challenge, due to the cautious approach of investors in recent times. With muted funding through PEs in CY16 so far, investor appetite seems to have dried up in the e-commerce space, which hit an all-time high in CY15.

Ind-Ra believes that specialised institution investors with primary focus on exponential growth sectors, involving high level of risk will be the target for e-tailers to raise funds. Such funding will only be available at a higher cost. These funds are generally extended on a short term basis, until the next round of PE funding occurs. Ind-Ra believes funding however from such investors will depend upon the ability of the e-tailers to maintain a level of PE confidence by sustaining its prominence and valuation, which seems to heading southward.

We believe that the conventional banking sector will remain out of the lending community for the e-commerce sector in the medium term. Earlier, banks have funded players with working capital loans albeit with lien on cash and current investments. Ind-Ra believes it is unlikely that e-tailers will find takers in the conventional banking community, especially with the backdrop of the absence of material collateral, previous year losses and the lack of visibility of positive cash flows in the near term.

Ind-Ra believes PE activity will remain muted in the foreseeable future, especially after a series of mark down in valuations of e-tailers by investors. Furthermore, the expected US Federal Reserve rate hike, a fragile global recovery and the recent amendment to the India-Mauritius tax treaty may keep global investors away from India, one of the fastest growing e-commerce industries in the world.

Powered by Capital Market - Live News

Ind-Ra: Fourth Quarter GDP Surprised on the Upside, but Capex Continues to Disappoint
Jun 02,2016

Gross domestic product (GDP) in 4QFY16 came in higher at 7.9% (based on the provisional estimate of the Central Statistical Office (CSO)) than Ind-Ras forecast of 7.4%. Real GDP in FY16 grew at 7.6% (similar to CSOs advanced estimate of 7.6%), marginally higher than Ind-Ras expectation of 7.5%. Although overall GDP in FY16 is in line with Ind-Ras expectation, sectoral composition of growth on the production/supply side has undergone a change. As against the FY16 advanced estimate, the FY16 provisional estimate of CSO suggests lower services gross value added (GVA) growth and marginally better industrial GVA growth. At a more disaggregated level, the sectors that have grown higher than the advanced estimates are mining and electricity.

The mining and quarrying sector grew at 7.4%, while electricity, gas, water supply, and other utilities grew at 6.6% in FY16 as against the earlier estimates of 6.9% and 5.9%, respectively. Manufacturing growth came in lower at 9.3% as against the advanced estimate of 9.5% in FY16. In 4QFY16, manufacturing grew 9.3% yoy, lower than the previous quarter growth of 11.5% yoy. Industry as a whole grew 7.9% in 4QFY16 and 7.4% in FY16, led by mining and electricity.

Services sector grew 8.9% in FY16 as against 10.3% in FY15. On a quarterly basis, services grew 8.7% in 4QFY16, which is the lowest in the last seven quarters. Services growth slowed due to lower growth in financial, real estate and professional services and public administration and defence in 4QFY16.

On the production side, agriculture has done well mainly because of the base effect. Growth in agriculture in 4QFY15 was affected by unseasonal rains, which resulted in negative growth of 1.7%. Agriculture growth has benefited from this and the sector clocked a growth rate of 2.3% in 4QFY16. For FY16 as a whole, agriculture growth came in marginally better at 1.2% as against the CSO advanced estimate of 1.1%, mainly due to higher production of food grains.

Ind-Ra believes that the overall pattern of growth in FY17 is not going to be very different from what has been witnessed in FY16 except that agricultural GVA growth would be in excess of 2% and overall GDP growth 7.7%.

On the expenditure/demand side, real GDP at constant (2011-12) prices grew 7.9% in 4QFY16, surprising on the upside led by buoyant growth in private final consumption expenditure. Private final consumption expenditure (which had a share of 55.3% in GDP) grew 8.3% in 4QFY16 and 7.4% for the year as a whole as against 6.2% in FY15. Growth in investment or gross fixed capital formation disappointed with a negative growth rate of 1.9%yoy in the fourth quarter, which is the lowest since 4QFY14. This indicates that investment demand is still low despite the stepped-up capital expenditure by the government. Ind-Ra believes corporate sector investment will remain down for the foreseeable future due to excess capacity in several manufacturing sectors coupled with the stretched balance sheet of infrastructure companies.

Government final consumption expenditure growth came in marginally lower at 2.9%yoy. Exports contracted further 1.9% yoy, although the contraction was lower than previous quarters of FY16.

A closer look at the GDP components shows that the item discrepancies gave a fillip to GDP growth in 4QFY16. The line item discrepancies in GDP rose sharply to INR1432.10bn in 4QFY16 from INR299.33bn in 4QFY15, up 378.4%yoy. Discrepancies accounted for 4.8% of GDP in 4QFY16. If one remove discrepancies, GDP growth in 4QFY16 would fall to 3.9% and FY16 GDP growth will be 5.2%.

Nominal GDP growth at 10.4% in 4QFY16 was the highest in seven quarters. GDP deflator remained positive at 2.2% in 4QFY16, after clocking 1.3%, negative 1.1% and 1.7% in 1Q, 2Q and 3Q of FY16, respectively. GDP deflator is moving in tandem with Wholesale Price Index inflation (highest deflation in 2QFY16), and Ind-Ra believes inflation will inch up from here, however will remain benign. This will translate into GDP deflator in FY17 growing around 3.0%. Ind-Ra therefore, believes that the nominal growth assumed in the Union Budget FY17 is achievable. This will also help the government to come closer to the tax collection target of FY17.

Powered by Capital Market - Live News

TN tops in green energy capacity addition; to reach 72 % of peak demand: study
Jun 02,2016

In an election season, Tamil Nadu may be in the news of some populist schemes but the state has done a tremendous development when it comes to adding capacity of Renewable Energy (RE), which is projected to reach even 72 per cent of its peak demand by 2022, according a joint ASSOCHAM-Ernst & Young paper.

At present, the state has an installed capacity of over 8300 MW of non-conventional energy which is about 40 per cent of the total capacity installed including the conventional sources of thermal and hydro. However, the problem remains about a huge gap between the installed RE capacity and its actual generation. Against the 40 per cent ratio of the installed capacity, the RE sources supply just about 14 per cent of the states peak demand, thanks to inadequate infrastructure to evacuate the power to the grid and the natural limitations.

All the same, the ASSOCHAM-EY paper pointed out that against peak electricity demand of 29,975 MW, the projected installed capacity of the RE resources would be 21,508 MW.

n++Let us give credit to the state for a laudable work done in the area of non-conventional energy. The other progressive states in the area of RE are Gujarat, Rajasthan and Rajasthan. But the interest is still limited to a few states. If only rest of the states follow and exploit the abundant natural resources of wind, energy and bio-mass, India can be on top of the world league for green economy,n++ ASSOCHAM Secretary General Mr D S Rawat said.

Gauging the conventional capacity addition growth between 2014 and 2022, it is clearly seen that Tamil Nadu is adding capacity beyond its demand. n++This beckons for a robust market mechanism to accommodate RE power within the state and also explore market mechanism to trade its power to the RE deficit states,n++ the paper suggested.

Moreover, aggressive increase in the state RE capacity lucidly explains that the state should sufficiently use conventional capacity indigenously or through bilateral trade agreements for balancing the variable RE.

Even in rest of the country, the distribution of renewable energy is concentrated in a few regions of the country and this poses as a hurdle and at the same time opportunity. n++While power needs to travel from one region to another, geographical distribution of RE in combination with the large Indian power grid offers the potential to smoothen RE fluctuationsn++.

Thus, the RE resources in the country are very unevenly distributed. This would result in certain RE rich states developing installed capacity which would exceed their peak load at certain times of the year.

Powered by Capital Market - Live News

Short term Yoga programmes included in Tourist Visa and e-Tourist Visa
Jun 02,2016

The Ministry of Home Affairs has taken a decision to include short term yoga programmes in Tourist Visa and e-Tourist Visa. Realizing the spread and importance of yoga world over, the Government has decided to include n++attending a short term yoga programmen++ in the list of permissible activities under Tourist Visa. Besides, the Government has decided to include n++attending a short term yoga programmen++ and n++short duration medical treatment under Indian systems of medicinen++ in the list of permissible activities under e-Tourist Visa.

Presently, a Tourist Visa is granted to a foreigner whose sole objective of visiting India is recreation, sight seeing and casual visit to meet friends or relatives, short duration medical treatment or casual business visit.

All Indian Mission abroad and Foreigners Regional Registration Officers (FRROs)/ Foreigners Registration Officers (FROs) in the country have been requested to take action as per above amendments.

Powered by Capital Market - Live News