Microsec: NEWS
RAJESH DESAI
INFRASTRUCTURE
Ramky Infra bags orders worth Rs 1,249 cr
· Ramky Infrastructure Ltd has bagged orders worth Rs 1,248.95 crore covering roads, irrigation and construction segments. In a statement to the BSE, the Hyderabad-based infrastructure company has informed that these orders have been secured from several states including from Arunachal Pradesh, Bihar and Chandigarh.
· The company now has an order book of Rs 14,229 crore both in India and abroad.
Source: Business Line
GVK Power finance chief may step down
· GVK Power & Infrastructure Ltd is likely to restructure its finance functions. The rejig may follow the likely exit of a GVK veteran, Mr Isaac A. George, who may step down as the company's Chief Finance Officer and Non-Independent Director.
· Mr George has been instrumental in driving the group's finances for nearly two decades. He had been handling vital finance related functions of the group, and has played a key role in making it a diversified business entity.
Source: Business Line
Realty players upbeat over removal of 1% TDS
· Finance Minister Pranab Mukherjee’s move to withdraw one per cent tax deducted at source (TDS) on transfer of immovable property has brought relief to the real estate industry. The industry said the move would be helpful, as TDS on property transactions would have discouraged buyers due to price escalation.
· On Monday, the finance minister withdrew the tax, saying, “I have received a number of representations pointing out the additional compliance burden this measure would impose. I, therefore, propose to withdraw this provision for the levy of TDS on transfer of immovable property.
Source: Business Standard
80,000 MW power generation capacity under construction: Government
· A mammoth 80,000 MW power generation capacity is under construction during the 12th Five Year Plan period ending March 31, 2017, Power Minister SushilKumar Shinde told the Rajya Sabha today.
· For the 11th Five Year Plan (2007-12), a target of 78,775 MW was set which was revised to 62,000 MW during mid-term appraisal. The actual capacity addition was 55,000 MW.Shinde said that in 2011-12 20,400 MW power generation capacity was added, which was much higher than the projection of 17,000 MW.
Source: Economic times
Cong favoured Jaypee group: Dhumal
· Himachal chief minister P K Dhumal on Monday blamed the opposition Congress for allowing the Jaypee group to build a cement plant in the state in violation of rules.
· According to Dhumal Congress signed a memorandum of understanding (MoU) with Jaipraksh Associates Ltd (JAL) in July 2004 to set up a plant at Bagheri in Solan district . The MoU was signed in a hurry without following proper procedures
Source: Business Standard
CONSUMER DURABLES
Retail FDI: Domestic Sourcing Norms Not Just for Local Mkt
· The government has said that the 30% norm for sourcing from local small and medium enterprises is not just for the local market only, and anything sourced from such enterprises by a single brand retailer for its global operations will also be considered as fulfilling the rules.
· Besides, the government may also be waiving off the sourcing condition for retailers of high-precision items such as sports watches, who may genuinely not get high quality inputs from SMEs in the country. This clarification by the government is likely to make single brand retail more attractive.
· Many global luxury brands want to enter India, but with full control over their operations in the country. While the explanation on allowing domestic sourcing for exports would help, clarity on the definition of SMEs is also necessary to enable brands make a decision faster.
· The minister was, however, less optimistic on the issue of allowing FDI in multi-brand retail. Only states can give trade license or one to set up a shop or establishment.
AUTOMOBILES
Renault-Nissan to roll out2.5 lakh cars this year
The Renault-Nissan car plant near Chennai is set to nearly double its output for the third year with a production of 250,000 cars this year.
The unit set up by Renault Nissan Automotive India Pvt Ltd commissioned its second production line in March to achieve the fully committed capacity of over 400,000 cars a year. With this, the Rs 4,500-crore investment by the Renault Nissan Automotive India Pvt Ltd, beats the deadline for full capacity by three years.
It has also completed over 80 per cent of its investment at the car plant located at Oragadam, an industrial suburb about 45 km west of Chennai.
Next week, it will launch the ‘Evalia', a passenger car that is set to ferry New Yorkers around as it will be inducted into the city's taxi fleet next year. The other launch will be the Duster, a SUV-like vehicle.
ROOM FOR EXPANSION
There is still head room to expand its marketing to match the capacity, Of the 1.35 lakh units, the company exports nearly 70 per cent of its production with about 39,000 units being sold in the domestic market. This is primarily because it is still expanding its sales outlets. The 640-acre facility has adequate land area to accommodate a major expansion in line with demand.
Renault-Nissan is inviting its component suppliers to set up shop closer to Chennai to increase speed of delivery. Nearly a 100 companies supply parts for the cars and half of them are close to Chennai. The others are in Delhi, Bangalore and Pune which poses a logistics challenge. It takes nearly a week to transport the parts from Delhi.
The company's policy is to make the top management completely in the hands of local skills in 5-10 years, highlighting the advantage of setting up the unit in Chennai, which has earned a reputation as a hub of automobile production with global manufacturers such as Hyundai, Ford and BMW.
BANKING
SBI Gen Insurance premium income surges 481% in FY12
SBI General Insurance posted a 481 per cent jump in premium income to Rs 250 crore in 2011-12. The last fiscal was its first full year of operation. As much as 52 per cent of its business came from the retail segment, the corporate segment accounted for 35 per cent, and the SME segment, 13 per cent.
The company, which operates out of 25 locations, plans to add 25-30 branches in Tier-II and Tier-III towns this year.
RBI allows NRIs to transfer funds from NRO to NRE account
The Reserve Bank allowed non-resident Indians (NRIs) to transfer funds from non-resident ordinary (NRO) account to Non-Resident External (NRE) account subject to a ceiling of $1 million in a financial year. As per the existing regulation, fund transfer from NRE account to NRO was allowed, but not the other way round.
An NRE account is for depositing income from abroad, NRO account is mainly for putting Indian incomes.
Punjab & Sind Bank to seek Rs 900-cr capital support from Centre
Punjab & Sind Bank will soon write to the Finance Ministry seeking a capital support of about Rs 900 crore to fund its business growth this fiscal. Bank has no plans to raise capital from the market. Currently, the Centre holds 78 per cent stake in the bank. The public sector lender had made a capital support request for a similar amount last year too, but had not received any funds from the Centre.
As at end March 2012, Punjab & Sind Bank had a capital adequacy ratio of 13.26 per cent. The bank expects a business growth of 21 per cent this fiscal on the back of likely pick-up in economic activity. Credit growth was sluggish last fiscal at just six per cent. In the three years’ post the global financial crisis of 2008, the bank had recorded a compounded annual growth rate of 30 per cent.
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CA. Rajesh Desai