My Application Form Status

Check the status of your application form with Angel Broking.
Arq - The Hyper Intelligent Investment Engine By Angel Broking
DBTL (PAHAL) Mechanism made it possible to block 3.34 crore duplicate / fake / inactive domestic LPG connections. Estimated savings due to blocking of
Aug 23,2016

Ministry of Petroleum & Natural Gas has come across several news items appearing in various newspapers about the CAG report stating that direct LPG subsidy savings was less than the Governments claim.

In this regard, it is clarified that an intensive exercise was carried out for identifying duplicate/fake/ghost/inactive domestic LPG connections and, as of 01.04.2015, 3.34 Crore such connections were identified by the Oil Marketing Companies (OMCs). As a result of implementation of DBTL (PAHAL) mechanism, it became possible to block these 3.34 Crore LPG connections as the subsidy was transferred in the accounts of only those consumers who had registered under PAHAL and who have been cleared after de-duplication exercise. Before DBTL, all or many of these 3.34 crore consumers would have continued to purchase subsidized cylinders from the distributors. But for the blocking of these accounts, the subsidy bill would have been much higher despite fall in crude oil prices.

Estimated Savings from the above efforts are calculated as follows:

For the financial year (FY) 2014-15, for 3.34 crore consumers outside the PAHAL net, the Estimated savings would be 3.34 crore x 12 cylinders x Rs.369.72 (average Subsidy/cylinder for FY 2014-15) equal to Rs.14,818.4 crore. Following a similar principle, the Savings estimated for FY 2015-16 is Rs.6,443 crore and the total for both the years works out to Rs. 21,261 crores.

FINANCIAL YEARAverage Subsidy per Cylinder (for that year)CALCULATIONSEstimated Savings (in crores of rupees)2014-15Rs. 369.723.34 * 369.72 * 1214,818.42015-16Rs. 150.823.56 * 150.82 * 126,443TOTAL21,261.4

The total consumption of cooking gas in any given year is a combination of the number of connections at the beginning of the year, bogus connections eliminated during the year through the process of DBT under PAHAL, new connections issued to genuine consumers during the year and normal fluctuations in individual consumption. Hence, the saving from implementation of DBT cannot be correctly computed merely by reference to the total consumption in a year or the total expenditure on subsidy. If the DBT had not been implemented, the outgo on the subsidy would have been higher by Rs. 14,818 crore in 2014-15 and Rs. 6,443 crore in 2015-16. Hence the total savings from the elimination of fake/duplicate/ghost connection as a result of implementation of DBT for the two years together, as calculated above, is estimated at more than Rs. 21,000 crore. Since fake/duplicate/ghost connections are mostly used for diversion, hence it is assumed that the full entitlement would have been utilised. This figure is not comparable with the actual expenditure on subsidy which includes the subsidy on new genuine connections given during these two years. Without implementation of PAHAL, subsidy burden would have been higher than the actual expenditure recorded during these years, even with lower petroleum prices.

Furthermore, it should be noted that concrete evidence of successful elimination of bogus connections is seen in the phenomenal growth of non-subsidized commercial LPG sales which have registered an increase of 39.3% in the period April 2015 to March 2016. This is in contrast to the pre-PAHAL experience when commercial sales growth was negligible or declining.

Powered by Capital Market - Live News

Jawaharlal Nehru Port Trust Signs Agreement for ECB worth $400 Million with State Bank of India and Development Bank of Singapore
Aug 23,2016

Indias premier container port, Jawaharlal Nehru Port Trust in Navi Mumbai, has signed an agreement with State Bank of India and Development Bank of Singapore for External Commercial Borrowing (ECB) to the tune of USD 400 Million at a n++very competitiven++ interest rate to improve the infrastructure required for n++doublingn++ its existing capacity to 9.85 Million TEUs annually. JNPT has US Dollar denominated foreign currency earnings which can be leveraged for a low cost foreign currency borrowing. The ECB of USD 400 Million (USD300 Million from the SBI & USD100 Million from DBS) will be primarily utilised by JNPT for expanding the network of roads that connect to its port projects. The existing road network for evacuation of traffic is currently operated at a capacity utilisation of 100%, and the expansion is needed for quicker and more efficient evacuation of traffic.

The agreement with the SBI and Development Bank of Singapore was signed by the JNPT Chairman Anil Diggikar in the presence of Minister for Shipping, Road Transport & Highways Shri. Nitin Gadkari after the Reserve Bank of India granted approval to JNPT for raising USD 400 Million with an end use of on-lending to Mumbai JNPT Port Road Company (MJPRCL) for implementation of road project. The Ministry of Shipping has already granted its approval as required under the Major Port Trusts Act,1963.

Speaking on the occasion, Shri Gadkari said that JNPT is the first major port in the country to have taken loans in dollars. This was possible because ports have a natural hedge in foreign currency earnings. He also said that the rate of the ECB loan of 2.025% plus Libor USD 6M (approx 3.15%) is cheaper than Indian currency loan. He said the funding by JNPT is the first of its kind for major port and it opens up one more avenue for major and government ports to raise funds by accessing international markets for their requirements.

Borrowing by JNPT is for Door-to- Door tenor of 7.5 years. However, lending by JNPT to MJPRCL is for 16 years (two years construction and 14 years repayment). The funding process involved assessment and structuring of cash-flows (both at JNPT level and MJPRCL level), bid process management, engagement of domestic and foreign lenders. The project will be developed by Mumbai JNPT Port Road Company (MJPRCL), a joint venture company of NHAI, JNPT and CIDCO at a total estimated cost of Rs. 2895 crore. Considering the importance and urgency of implementation of the project, it will be taken up by MJPRCL on EPC mode and funding for the project would be carried out by JNPT.

The project will primarily benefit and cater to the needs of JNPT. JNPT is going to double its capacity in the next seven years. This project will cater to the additional cargo which will be handled at the 4th Container Terminal. An improved connectivity is essential for traffic evacuation from JNPT. This evacuation corridor would help in supporting the EXIM trade besides providing economic opportunity to the local people and people from the region. The project is of great significance to JNPT and will give a boost to the countrys economy.

Port projects, including connectivity projects, are critical to developing cargo handling capacity. With the thrust on port led development under the Sagarmala programme, improving viability of projects is critical. One of the primary factors that impacts viability is the interest rate on borrowings to fund projects. While Ports have surplus funds, they also need to borrow to achieve a quantum jump in the investment. Minister of Shipping and Road Transport & Highways Shri Nitin Gadkari had suggested an innovative means of raising low-cost external commercial borrowings, particularly when the port had revenues in foreign exchange, which provided a natural hedge to the ports. This would substantially eliminate the requirement of hedging the forex risk and would reduce the cost of borrowing. This suggestion was followed up by Ports and JNPT became the first Major Port to finalise the terms of external commercial borrowing. With this beginning, other Major ports would also adopt similar means to improve their capability to invest. The step is another milestone in infusing dynamism into the functioning of the ports, both in their operations and financing.

Powered by Capital Market - Live News

Government planning to set up Indian Council for Fertilizers Research
Aug 23,2016

The Union Minister of Chemicals & Fertilizers and Parliamentary Affairs Shri Ananth Kumar has advocated a n++3 An++ approach towards fertilizers in the country, these being authenticity (Quality), availability and affordability. Inaugurating a Conference of Officers of State Agriculture Departments handling fertilizers in New Delhi today, Sh. Ananth Kumar said that the ultimate aim of the Government should be to provide last mile timely availability of quality fertilizers at affordable rates to the farmers. This, he said, would ensure the fertilizers security of the country which is essential for the food security.

Sh. Ananth Kumar said that till two years back, there used to be shortage of urea, leading to its hoarding, black-marketing and smuggling. He congratulated the Indian Fertilizer manufacturers for running the plants at over 100 per cent capacity and achieving an all time record of 245 lakh MT urea production last year. The Minister said that the timely imports, pre-positioning of the fertilizers, contribution of the States in timely distribution, and cooperation of the Railways through Good Rake Movement also helped in making the fertilizer position comfortable in the country.

Sh. Ananth Kumar asked the State Government officials to enforce quality checks on the fertilizers, undertake district level planning for supply of fertilizers, ensure early turnaround of rakes, provide adequate storage facilities, and take benefit of pre-positioning. He called upon the States to initiate a drive against those who indulge in hoarding, black-marketing, diversion and smuggling of fertilizers. He also said that the unethical practices of the retailers/companies to tag certain items for selling to farmers along with the required fertilizers, should be discouraged. The Minister also emphasized on the issue of soil security and ways to compost initiative. He said the Government is reviving the sick fertilizer PSU and the basic principle of producing where it is being consumed.

Sh. Ananth Kumar said that the Government is soon planning to set up Indian Council for Fertilizers Research, on the lines of ICMR and ICAR. He said research is very much required to discover and develop various means and ways of producing quality fertilizers, fortified fertilizers, hybrid fertilizers, nutrients and various combinations which are good for the soil. He said research has a role to play in the all aspects of the fertilizer chain which includes production, transportation, storage, availability, application, etc.

The Minister of State for Chemicals and Fertilizers, and Road Transport, Highways and Shipping Sh. Mansukh L Mandaviya said that Prime Minister has given a call to double the income of farmers and the Department is working on this direction by reducing their input costs. He said that poor farmers are often misguided by certain vested interest and it is essential to launch a campaign to inform them about the best practices, balanced and optimum use of fertilizers. He said that recently the Government announced reduction in non-urea fertilizers and the farmers should be made aware about this. He called upon the States to work in tandem with the Central Government for the welfare of the farmers.

The Conference of Principal Secretaries/Secretaries/Directors dealing with the Agriculture Departments in the State/UTs is the first such initiative of the Department of Fertilizers. The Central and the State Government officials dealing with the various aspects of fertilizers discussed various issues concerning the sector including availability and supply of fertilizers, implementation of Direct Benefit Transfer Scheme, fertilization and neem-coating of urea, quality control of fertilizers, issues in Fertilizer Monitoring System and promotion of city compost.

Powered by Capital Market - Live News

India and Germany join hands on skill agenda Germany Contributes Rs 22.6 crore for Skill Development in India
Aug 23,2016

India and Germany are deepening their collaboration in the area of skill development. An implementation agreement was signed between the Ministry of Skill Development and Entrepreneurship (MSDE) and (German International Cooperation (GIZ), to initiate a new project focused on adapting elements of the German dual system in select industrial clusters in India.

This new project will run for three years starting August 2016 with a budget of EUR 3,000,000 (22.6 Crores INR) - made available by the German Government and aims to foster conditions which will help create and improve cooperative workplace-based vocational training in Indias industrial clusters. The project will be implemented in three selected clusters, which include the Automobile cluster in Maharashtra and Electronics cluster in Bangalore.

German technical assistance will be used to enhance industry institute partnerships between Indian and German organizations, build capacity of local training institutions and foster industry linkages which will help adapt elements of the German dual system, into the Indian context. This new project will also play an important role in supporting MSDEs existing programmes to scale up apprenticeship training.

The project will be implemented under the umbrella of the Joint Memorandum of Understanding (MoU) in the field of Skill Development and Vocational Education and Training (VET), signed during the Indo- German intergovernmental consultations on 5th October 2015 in New Delhi.

The Joint Working Group, under the MoU held its first meeting on 26 July 2016, in New Delhi. At the meeting, the two countries agreed to deepen their collaboration in a number of specific areas including: curriculum development, research and sharing of best practices, training of trainers, and establishing cooperative workplace based skill training programmes in three industrial clusters.

Commenting on the Indo-German partnership in the area of skill development, Shri Rajiv Pratap Rudy, Union Minister of State (I/C) for Skill Development and Entrepreneurship said, n++We in India recognize the fact that Germanys dual system is widely acclaimed as one of the best in the world, noted for its close linkages between industry and training institutions. This provides a competitive edge to German industry and businesses. We need to adapt elements of the German VET system to the Indian context to ensure that skill training in India is closely aligned with the requirements of industry.n++

n++Germany has been one of countries which is on top of the manufacturing and innovation pyramid and continues to develop most high end products. It has some of the best working models in sustainable workforce development which is the reason for the countrys economic progress. This partnership with Germany will help strengthen our skill development initiatives. The recent budget allocations that have been made for promoting apprenticeship programs in the country will help our plans see daylightn++ said Shri Rohit Nandan, Secretary, Ministry of Skill Development and Entrepreneurship.

n++Germany is known for its excellent vocational education system that relies on the strong participation and engagement of the private sector. Having a very long standing partnership with India, Germany is pleased to support the n++Skill Indian++ and n++Make in Indian++ initiatives with a new bilateral programme on vocational education and training. Herein, the engagement of private enterprises, including German firms, as carriers for skill development will be crucial for the successn++, said German Ambassador to India, Dr Martin Ney, during an official signing ceremony for the launch of a new bilateral partner programme at the Ministry of Skill Development and Entrepreneurship (MSDE).

Powered by Capital Market - Live News

Union Home Minister Shri Rajnath Singh assures NSG of upgrading their infrastructure and training needs
Aug 23,2016

Union Home Minister Shri Rajnath Singh has assured the National Security Guard (NSG) of upgrading their infrastructure and training needs. Shri Rajnath Singh also stressed upon the NSG to conduct regular exercises with counterpart forces from friendly countries. Pointing out that such exercises will help the NSG soldiers hone their skills, the Home Minister said that today no developed country can claim immunity from terrorist strikes. All progressive societies have to stand up against terrorism, he added.

Underlining that the people of India have reposed faith in the NSG as the elite anti-terrorist force, Shri Rajnath Singh said that even during the attack on the Pathankot airbase in January, 2016, the security forces prevented any damage to vital strategic assets and installations.

Noting that 19 NSG personnel have laid down their lives in the service of the nation since the force was set up in 1984, the Union Home Minister called upon the NSG to bring out illustrated booklets containing biographies of the NSG martyrs as an inspiration for the youth. The NSG must commemorate the martyrdom day of the forces martyrs with at least one NSG Officer visiting their families and organising programmes at their homes by involving the community. Shri Rajnath Singh also assured that to consider instituting more medals for the NSG personnel.

Earlier, Director General, NSG Shri RC Tayal said that all State Police Forces have now set up their specialized Counter-Terrorism Units. The NSG conducts regular exercises with them, he added.

Powered by Capital Market - Live News

The main cause of water scarcity in country is consecutive failure of monsoon, resulting low storages in dams
Aug 23,2016

The report of on the Spot Study of Water Situation in Drought Affected Areas of the country (2015-16) has recommended construction of water harvesting structures, mass awareness among citizen for water conservation, construction of new water storage structures, interlinking of rivers, renovation and repair of existing water bodies as some of the important measures to meet the challenges of overall water scarcity scenario in the country. The study was carried out by Central Water Commission under the Ministry of Water Resources, River Development and Ganga Rejuvenation. Various long/short term measures (being taken up and to be taken up) to mitigate water scarcity situation have also been recommended which are region/area/state specific.

In some areas like Marathwada of Maharashtra, Bundelkhand of UP and MP interlinking projects have been recommended. Water budgeting and planning the cropping patterns for the oncoming agricultural season(s), the strategy for avoiding water intensive crops to the extent in consultation with the relevant expert departments are also crucial for checking such situation. Micro irrigation (sprinkler and drip) should be adopted to achieve more crops per drop.

The study says that at almost all places minimum domestic water requirements are being met through importing water from other regions, if required; by digging local deep bore wells and also by tankers. Ground water levels have been reported as falling in almost all regions of the country due to over exploitations and inadequate recharging mechanism for ground water. However, no specific observation on water quality has been reported at most of the areas except in Gujarat, where problem of salinity in coastal areas has been reported.

According to the report, the water scarcity situation is prevailing in the country, but some pockets like Marathwada in Maharashtra, Bundelkhand in U.P. and MP, Telangana and Andhra Pradesh are more affected by water scarcity situation. The main cause of water scarcity in country is consecutive failure of monsoon, resulting low storages in dams, during last two years. Rainfall deficit in country as a whole during 2015 was 14% and in 2014 it was 12%. Earlier, year 2012 was also a rainfall deficit year with 11% deficit. Consecutive less rainfall also resulted less carryover storage in reservoirs.

Powered by Capital Market - Live News

Mineral Production during June 2016 was 4.7% higher as compared to June 2015
Aug 23,2016

The index of mineral production of mining and quarrying sector for the month of June (new Series 2004-05=100) 2016 at 127.3, was 4.7% higher as compared to June 2015. The cumulative growth for the period April- June 2016-17 over the corresponding period of previous year stands at (+) 2.3%.

The total value of mineral production (excluding atomic & minor minerals) in the country during June 2016 was Rs. 18344 crore. The contribution of Coal was the highest at Rs. 7171 crore (39%). Next in the order of importance were: Petroleum (crude) Rs. 5393 crore, Natural gas (utilized) Rs. 2077 crore, Iron ore Rs. 1802 crore, Limestone Rs. 584 crore and Lignite Rs.517 crore. These six minerals together contributed about 96% of the total value of mineral production in June 2016.

Production level of important minerals in June 2016 were: Coal 517 lakh tonnes, Lignite 37 lakh tonnes, Natural gas (utilized) 2511 million cu. m., Petroleum (crude) 30 lakh tonnes, Bauxite 2177 thousand tonnes, Chromite 297 thousand tonnes, Copper conc. 10 thousand tonnes, Gold 114 kg., Iron ore 150 lakh tonnes, Lead conc. 17 thousand tonnes, Manganese ore 179 thousand tonnes, Zinc conc. 73 thousand tonnes, Apatite & Phosphorite 54 thousand tonnes, Limestone 274 lakh tonnes, Magnesite 23 thousand tonnes and Diamond 2932 carat.

The production of important minerals showing positive growth during June 2016 over June 2015 include Iron ore (42.6%), Bauxite (35.5%), Chromite (34.9%), Gold (14.0%), Coal (11.4%), Diamond (9.5%), Limestone (7.6%) and Magnesite (0.7%). The production of other important minerals showing negative growth are: Apatite & Phosphorite [(-) 80.7%], Zinc conc. [(-) 44.2%], Lead conc. [(-) 17.8%], Petroleum (crude) [(-) 4.3%], Natural gas (utilized) [(-) 3.9%], Lignite [(-) 3.6%], Manganese ore [(-) 3.0%] and Copper conc. [(-) 2.7%].

Powered by Capital Market - Live News

Gartner Says Five of Top 10 Worldwide Mobile Phone Vendors Increased Sales in Second Quarter of 2016
Aug 23,2016

Global Sales of Smartphones Grew 4.3 Percent Year on Year

Global sales of smartphones to end users totaled 344 million units in the second quarter of 2016, a 4.3 percent increase over the same period in 2015, according to Gartner, Inc. Overall sales of mobile phones contracted by 0.5 percent with only five vendors from the top 10 showing growth. Among them were four Chinese manufacturers (Huawei, Oppo, Xiaomi and BBK Communication Equipment) and South Koreas Samsung.

Demand for premium smartphones slowed in the second quarter of 2016 as consumers wait for new hardware launches in the second half of the year, said Anshul Gupta, research director at Gartner. In addition, the decline in sales of feature phones (down 14 per cent) bolstered the decline in overall sales of mobile phones in the second quarter of 2016 (see Table 1).

All mature markets except Japan saw slowing demand for smartphones leading to a decline in sales of 4.9 percent. In contrast, all emerging regions except Latin America saw growth, which led to smartphone sales growing by 9.9 percent.

Table 1

Worldwide Smartphone Sales to End Users by Vendor in 2Q16 (Thousands of Units)

Company2Q16
Units
2Q16 Market Share (%)2Q15
Units
2Q15 Market Share (%)Samsung76,743.522.372,072.521.8Apple44,395.012.948,085.514.6Huawei30,670.78.926,454.48.0Oppo18,489.65.48,073.82.4Xiaomi15,530.74.515,464.54.7Others158,530.346.0160,162.148.5Total344,359.7100.0330,312.9100.0

Source: Gartner (August 2016)

In the second quarter of 2016, Samsung had nearly 10 percent more market share than Apple. Samsung saw sales of its Galaxy A and Galaxy J series smartphones compete strongly with Chinese manufacturers. Its new smartphone portfolio also helped Samsung win back share it recently lost in emerging markets.

Apple continued its downward trend with a decline of 7.7 percent in the second quarter of 2016. Apple sales declined in North America (its biggest market) as well as in Western Europe. However, it witnessed its worst sales decline in Greater China and mature Asia/Pacific regions, where sales declined 26 percent. Apple had its best performance in Eurasia, Sub-Saharan Africa and Eastern Europe regions in the second quarter of 2016, where iPhone sales grew more than 95 percent year on year.

Among the top five smartphone vendors, Oppo exhibited the highest growth in the second quarter of 2016 at 129 percent. This is due to strong sales of its R9 handset in China and overseas.

Features such as an anti-shake camera optimized for selfies, and rapid charge technology, helped Oppo carve a niche market for itself and boost sales in a highly competitive and commoditized smartphone market, said Mr. Gupta.

In terms of the smartphone operating system (OS) market, Android regained share over iOSto achieve an 86 percent share (see Table 2) in the second quarter of 2016. Androids performance continued to come from demand for mid- to lower-end smartphones from emerging markets, but also from premium smartphones, which recorded a 6.5 percent increase in the second quarter of 2016.

A number of key Android players, such as Samsung with the Galaxy S7, introduced their new high-end devices, but Chinese brands like Huawei and Oppo are also pushing their premium smartphone ranges with more affordable devices.

Google is evolving the Android platform fast, which allows Android players to remain at the cutting edge of smartphone technology, said Roberta Cozza, research director at Gartner. Facing a highly commoditized smartphone market, Googles focus is to further expand and diversify the Android platform with additional functionalities, like virtual reality, enabling more-intelligent experiences and reach into wearables, connected home devices, in-car entertainment and TV.

Table 2

Worldwide Smartphone Sales to End Users by Operating System in 2Q16 (Thousands of Units) 

Operating System2Q16
Units
2Q16 Market Share (%)2Q15
Units
2Q15 Market Share (%)Android296,912.886.2271,647.082.2iOS44,395.012.948,085.514.6Windows1,971.00.68,198.22.5Blackberry400.40.11,153.20.3Others680.60.21,229.00.4Total344,359.7100.0330,312.9100.0

Source: Gartner (August 2016)

Powered by Capital Market - Live News

Economy in Motion, But Slow Investment Recovery is Hindering Growth Acceleration
Aug 23,2016

India Ratings and Research (Ind-Ra) has revised its gross domestic product (GDP) growth forecast for FY17 upwards to 7.8% from its earlier forecast of 7.7% (FY16: 7.6%, FY15: 7.2%). The upward revision has been prompted by the progress of monsoon and the sowing of kharif crops so far. With the exception of East and Northeast, the rainfall in other regions of the country has been more than long period average.

With a favourable monsoon so far, Ind-Ra expects rural demand to recover in FY17. This coupled with urban demand, which will be aided the Seventh Central Pay Commission payout, will give a fillip to the consumption demand in the economy. Ind-Ra expects consumption demand to grow at 8.4% in FY17. However, industrial growth at 7.2% in FY17 will still be lower than the 7.4% witnessed in FY16.

The key factor that is holding the acceleration of industrial growth is investment recovery. The incumbent government has taken several initiatives. For example, to encourage manufacturing activity there has been a concerted focus on improving the ease of doing business through programmes such as Make in India, Start Up India etc. Similarly, to address the power sector woes, it has introduced the Ujwal DISCOM Assurance Yojana (UDAY) scheme and to address the woes of other sectors such as metals, mining, road and oil & gas etc. it has introduced debt restructuring schemes. However, all this has failed to rekindle the animal spirit in the economy so far.

In fact, the debt-fuelled investment boom that began during FY10-FY11 has taken a heavy toll on the financial health of both corporates and banking sector. As a result, both are repairing their balance sheets. Another factor that is holding up investments is low capacity utilisation rates in a number of manufacturing sectors due to both tepid domestic demand and global overcapacity in sectors such as steel, tyre etc.

Ind-Ra expects the Wholesale Price Index and Consumer Price Index based inflation to come in at 3.3% and 5.0%, respectively, in FY17 (FY16: negative 2.5% and 5.0%). With food inflation surprising on the upside and households expecting inflation to rise in the near term, the window for further rate cuts by the Reserve Bank of India (RBI) is shrinking. The real risk-free interest rate which had inched up to 4% in July-August 2015 is now down to 1.7%.

Despite a bit rusty fiscal arithmetic, Ind-Ra expects that the union government will still be able to achieve its fiscal deficit to the GDP target of 3.5% in FY17. Ind-Ra further expects FY17 to be the fourth consecutive year of comfortable current account deficit (CAD) deficit at USD29.0bn (1.3% of GDP). Ind-Ra believes that the export and import trends will not change during the remaining months of this fiscal due to the lack of global demand and soft commodity prices coupled with tepid domestic investment demand. A robust foreign capital inflow is expected to add nearly USD17bn to the forex reserve in FY17. Yet, Ind-Ra expects average INR/USD to be 67.79 in FY17 due to active RBI intervention in the forex market.

Powered by Capital Market - Live News

Jawaharlal Nehru Port Trust to sign agreement with bankers for External Commercial Borrowing
Aug 23,2016

Port projects, including connectivity projects, are critical to developing cargo handling capacity at Ports. With the thrust on port led development under the Sagarmala program, improving viability of projects is critical. One of the primary factors that impacts viability is the interest rate on borrowings to fund projects. Ports have surplus funds, but to achieve a quantum jump in the investment, borrowings would also have to be made by ports. Minister of Shipping and Road Transport & Highways Shri Nitin Gadkari, had suggested an innovative means of raising low-cost external commercial borrowings, particularly when the port had revenues in foreign exchange, which provided a natural hedge to the ports. This would substantially eliminate the requirement of hedging the forex risk and would reduce the cost of borrowing. This suggestion was followed up by Ports. JNPT is the first Major Port to finalise the terms of external commercial borrowing.

Considering the need of the JNPT to cater to the increase in traffic, Shri Nitin Gadkari realised the criticality of project implementation especially for NPTs cargo evacuation requirements and in a review meeting in July 2014, it was decided that the project for conversion of the existing road connectivity to 6/8 laning of NH-4B, SH-54 and Amra Marg on the boundaries of proposed Navi Mumbai International Airport in the state of Maharashtra, would be undertaken on EPC basis. Substantial investment would be required for this project, and cheaper funds would add to the viability of the project, reduce costs for end-users, and also ad to the profitability of JNPT.

In line with Prime Minister Narendra Modis port-led development programme, Indias premier container port, Jawaharlal Nehru Port in Navi Mumbai, has signed an agreement with State Bank of India and Development Bank of Singapore for External Commercial Borrowing to the tune of USD 400 Million at a n++very competitiven++ interest rate to improve the infrastructure required for n++doublingn++ its existing capacity to 9.85 Million TEUs annually.

The ECB of USD 400 Million ( USD300 Million from the SBI & USD100 from DBS) will be primarily utilised by the JNPT, which has US Dollar denominated foreign currency earnings which can be leveraged for a low cost foreign currency borrowing, for expansion of its existing roads network connecting to its port project as the existing road network for evacuation of traffic is currently operated at a capacity utilisation of 100%.

The agreement with the SBI & DBS was signed by the JNPT Chairman Anil Diggikar in the presence of the Shipping Secretary Rajive Kumar after the Reserve bank of India granted approval to JNPT for raising USD400 Million with an end use of on-lending to Mumbai JNPT Port Road Company Limited (MJPRCL) for implementation of road project. The ministry of shipping has already granted its approval as required under the Major Port Trusts Act, 1963. The two parties will exchange the documents today.

Borrowing by JNPT is for Door-to-Door tenor of 7.5 years. However, lending by JNPT to MJPRCL is for 16 years (two years construction and 14 years repayment).

The funding process involved assessment and structuring of cash-flows (both at JNPT level and MJPRCL level), bid process management, engagement of domestic and foreign lenders.

Project will be developed by Mumbai JNPT Port Road Company (MJPRCL), a joint venture company of NHAI, JNPT and CIDCO at a total estimated cost of Rs. 2895 crore. Considering the importance and urgency of implementation of the project, it will be taken up by MJPRCL on EPC mode and funding for the project would be carried out by JNPT.

The rate of ECB loan of 2.025% plus Libor USD6M ( approx 3.15%) which is cheaper than any other Indian currency loan.

The funding by JNPT is the first of its kind for major port and it opens up one more avenue for major and government ports to raise funds by accessing international markets for their requirements.

The project will primarily benefit and cater to the needs of JNPT and an improved connectivity is essential for traffic evaluation from JNPT. It is of great significance to JNPT and will give a boost to the countrys economy.

This project will cater to the additional cargo which will be handled at the 4th Container Terminal. JNPT is going to double its capacity in the next seven years. This evacuation corridor would help in supporting the EXIM trade besides providing economic opportunity to the local and region.

With this beginning, other Major ports would also adopt these means and improve their capability to invest. The step is another milestone in infusing dynamism into the functioning of the ports, both in their operations and financing.

Powered by Capital Market - Live News

Shipping Ministry seeks 5% of Central Road Fund for development of Waterways
Aug 23,2016

The Shipping Ministry has mooted a proposal to utilize part of the fuel cess collected for building national highways for expansion of National Waterways as well. Speaking at the Infrastructure Session of the Indo-American Chamber of Commerces Annual Convention in Mumbai today, Union Minister for Shipping, Road Transport & Highways, Nitin Gadkari said his Ministry has sent a proposal seeking allocation of 5% of the Central Road Fund for development of Inland Waterways. n++My Ministry has prepared the proposal, but the final decision will be taken by the Ministry of Finance. I am pursuing the mattern++ Mr. Gadkari added.

Central Road Fund is a non-lapsable fund created under the Central Road Fund Act 2000 out of a cess imposed on petrol and high-speed diesel. The funds are meant to be used to develop and maintain national highways, state roads and railway over and under bridges. The move to seek a pie in the CRF follows governments ambitious plan to tap Indias vast network of rivers and canals stretching 14,500 kms for moving goods.

Mr. Gadkari said n++It is far more cheaper to transport goods by water as compared to road or rail. n++Currently cargo movement along the five existing national waterways is paltry 3% of all cargo movement in India. We want to raise the share of waterways in overall cargo movements to 15%n++ he said.

Earlier last week, the Shipping Minister Mr. Nitin Gadkari flagged off a cargo vessel carrying 200 Maruti cars from Varanasi to Kolkata as part of a pilot run. The Government has commissioned the Jal Marg Vikas project with the technical and financial support of the World Bank to augment capacity of River Ganga from Varanasi to Haldia. The Rs 4,200 crore project, when completed in six years, will facilitate movement of up to 2000 tonne vessels.

Under the National Waterways Act 2016, 111 inland waterways have been declared as National Waterways. Out of these, Allahabad-Haldia Ganga Waterway (NW1), Brahmaputra (NW2), West Coast Canal in Kerala (NW3), Mandovi river in Goa (NW 68), Sundarbans Waterway in West Bengal (NW97) and Zurari River (NW 111) are presently operational. Six more waterways are likely to be commissioned during this financial year.

Powered by Capital Market - Live News

Delhi Poised to get New Air Force Aerospace Museum
Aug 23,2016

Delhi will soon have a sprawling new Aerospace Museum close to the international airport focused mainly on Nations rich aviation history. New Aerospace Museum is not only meant to preserve the glorious tradition of the IAF but also to create awareness in general public about Indias rich Aerospace heritage.

The IAF believes that the Museum would be a popular tourist attraction and a landmark in Indias capital city. A proposal for new Air Force Aerospace Museum was cleared by Ministry of Defence and final financial sanction on the Detailed Project Report is awaited. After the approval, the new museum would be ready for the tourists within 3-5 years.

Spread over 43 acres, the new Aerospace Museum would have extensive indoor and outdoor displays including huge aircraft parked and hanging in flying attitude with mural depicting the golden era. A dedicated childrens area would be part of the museum where children could enter cockpits of displayed aircraft and get the feel of flying controls. A video arcade would also be created. As per the plan, the internal displays would have a history section in which all IAF Squadrons history would be displayed along with aviation legends, major campaigns and wars fought by the IAF. Along with this history, major Humanitarian Assistance and Disaster Relief operations undertaken by the IAF would also be highlighted.

The IAF presently has a museum near the technical area of Air Force Station Palam, which was established in 1967. The museum has an average footfall of 500 tourists daily and exhibits details about combat operations undertaken by the IAF depicting IAFs rich history since its formation in 1932 to present date, along with the display of various aircraft and equipment on the IAFs inventory, since its inception.

Powered by Capital Market - Live News

Evening Bells: Bond yield rises
Aug 22,2016

The yield on 10-year benchmark federal paper, 7.59% GS 2026, increased by 06 basis points (bps) to close at 7.16% compared with 7.10% close in the previous trading session. The total trading volume on the central banks gilts trading platform was Rs 81390 crore.

The yield increased the most since February after Urjit Patels appointment was announced over the weekend.

The weighted average rate in the overnight call money market increased to 6.39%, compared with 6.37% in the previous session. The call money rate hovered in the range of 5.00% to 6.55% with the volume at Rs 14090.15 crore.

Powered by Capital Market - Live News

Centre plans to provide Rs 90,000 Crore loan to SHGs in next two years
Aug 22,2016

Government plans to provide loan worth Rs. 90,000 Crore in next couple of years to Women Self-Help Groups, SHGs for non-farm economic activities. Addressing a National Workshop here on Best Practices in National Rural Livelihoods Mission (NRLM), Secretary, Rural Development Shri Amarjeet Sinha said that at present 3 crore women are linked to Aajeevika Mission and they availed about Rs 30,000 crore bank loans for economic activities. NRLM is an innovative flagship programme designed to alleviate rural poverty in a time-bound manner. Launched in 2011, the Mission aims at mobilizing all rural poor households into self-managed Self Help Groups (SHG) and federations which, in turn, promote the livelihoods of the poor.

The centrally sponsored Mission is currently being implemented in 3157 blocks across 462 districts by all states and Union territories in a phased but intensive manner. As of July, 2016, 324 lakh rural poor households stood mobilized into 26.94 lakh SHGs, which are in turn, federated into 1.45 village organizations. The states have set-up dedicated implementation structures at the state, district and block levels and have engaged more than 20000 dedicated professionals and about 1 lakh community professionals to implement the Mission. The Mission is designed to saturate social mobilization and SHG promotion in all blocks of the country during the next 3-4 years.

Shri Sinha also outlined the progress that the Mission has made in promoting farm-based livelihoods through Mahila Kisan Sashaktikaran Pariyojana and employment and self-employment through DDU-GKY and RSETI components. The Secretary indicated 4 critical tasks ahead for the Mission viz. (i) saturating social mobilization in all blocks of the country during the next 3-4 years; (ii) augmenting and sustaining SHG-credit linkage in North and North-eastern states; (iii) ensuring to each rural household 2-3 sustainable livelihoods including skill-based employment/ self-employment; and (iv) promotion of poverty-free Gram Panchayats with funds dovetailed from different sources including NREGS and 14th Finance Commission. Shri Sinha commended the states for several of their innovations and best practices and advised others to adopt them after necessary customization.

The Mission has made significant progress. The Mission has provided a capital grant of about Rs. 3170 crores to the SHGs and federations in the form of revolving fund, community investment fund and interest subsidy to support the livelihoods of the poor. The cumulative own savings of SHGs facilitated by the Mission in intensive blocks alone account for over Rs. 10665 crores (up to July, 2016). More significantly, the SHGs have leveraged Rs. 83153 crores of bank credit since FY 2013-14. The financial services catalyzed by the Mission coupled with the technical livelihood support services provided are securing livelihoods, reviving local economies and empowering women across the country

As part of NRLM, 34 lakh Mahila Kisans are being supported under Mahila Kisan Sashaktikaran Pariyojana component. In addition, about 19.70 lakh rural youth have been trained in self-employment skills through a network of 583 Rural Self Employment Training Institutes (RSESTIs), of whom 12.13 lakh have been settled in gainful self-employment. The Mission is poised for a big leap forward in livelihoods.

NRLM provides a substantial degree of autonomy to states to adopt innovative strategies, methods and processes in implementing the Mission. Further, states are also at different stages of implementation. Some have a longer history of promoting SHGs than others. The southern states are far ahead of others in mobilizing bank credit. Some states have adopted very successful models for institution building, financial inclusion and livelihoods promotion. Some have demonstrated scalable models with tangible livelihood outcomes. Successful models, innovations, experiments and practices demonstrated by different states can be adopted by others. It is in this context that MoRD is organizing a 2-day workshop on Best Practices in NRLM. The objective of the workshop is to facilitate sharing of experiences among the states and facilitate adoption of successful models by others. The workshop is, thus, expected to contribute to the pace and outcomes of the Mission.

About 35 best practices selected from 13 different states was presented at the workshop. The practices selected for presentation cover a wide range of themes viz. community institution building, financial inclusion of the poor, promotion of farm and non-farm livelihoods, food nutrition, health and sanitation, and convergence for livelihoods. The list of best practices is presented in attachment-I. The best practices presented at the workshop (documents and videos) will be compiled and published by the MoRD very shortly.

Powered by Capital Market - Live News

Bond Gains to Halt; Rupee Anchored
Aug 22,2016

The appointment of Dr Urjit Patel as the new Reserve Bank of India (RBI) Governor signals the reassertion of policy continuity by policy makers. Bond gains are likely to halt and the currency will continue to face global risk shifts. The 10-year yield is likely to trade at 7.08%-7.18% (7.10% at close on 19 August) and the rupees trading range is likely to be 66.65/USD-67.25/USD (67.06/USD at close on 19 August) this week.

The RBIs ongoing approach towards monetary policy has been reinforced by the appointment of Dr Patel. Dr Patel chaired the committee that recommended the inflation-targeting mechanism in 2014 and also led the monetary policy department at RBI. Hence, the agency believes that the policy approach will remain unchanged in the short term.

Debt Market Momentum to Halt: The rally in the bond market since the beginning of July 2016 was led by several positives: benign global conditions, low crude oil prices and adequate domestic liquidity. The agency believes that in the absence of meaningful triggers, debt investors are likely to be in a wait and watch mode. Further cuts in the repo rate are unlikely to take place in the near future until retail inflation sustainably moderates. In the absence of any incremental positive developments and limited scope for open market operation purchases, upward bias for bond yields remains.

Rupee Bias to Stay Positive: The agency believes market perception of Dr Patel as an inflation hawk will anchor the rupees near-term movement. Additionally, global conditions are reasonably conducive to the rupees strength. Mixed signals from US policymakers over the timing of the next Fed rate hike have reined in the USDs strength. Fed Chair Janet Yellens speech at the Jackson Hole symposium on 26 August could provide insights into the Feds own assessment of the US economy. Downside risks for the rupee are likely to emerge on two counts: 1) weak foreign portfolio flows and 2) the potential resurgence of risk-off sentiment.

Powered by Capital Market - Live News