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- 16th lok sabha election to cost around Rs. 30,000 crore
- India Inc investment up $29.3-billion in overseas market
- Foreign companies show interest in Indian power sector
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16th lok sabha election to cost around Rs. 30,000 crore Posted: 17 Mar 2014 10:16 PM PDT A whopping Rs 30,000 crore is likely to be spent by the government, political parties and candidates in the upcoming Lok Sabha elections, making it by far the most expensive electoral exercise in Indian history. The projected expenditure to elect the 16th Lok Sabha is set to rival the USD seven billion (approximately Rs 42,000 crore) spent by candidates and parties in the 2012 US presidential elections. A study carried out by Centre for Media Studies on poll spendings says “unaccounted for” money pumped in by “crorepati” candidates, corporates and contractors has pushed up the expenditure to elect 543 MPs. Out of the estimated Rs 30,000 crore, the exchequer will spend Rs 7000 to Rs 8000 crore to hold the electoral exercise for the 16th Lok Sabha. While the Election Commission is likely to spend around Rs 3,500 crore, the Union Home Ministry, Indian Railways, various other government agencies and state governments will spend a similar amount to put in place means to ensure free and fair polls. “But the final figures will emerge after the poll process is on. Money will be debited to the EC account through book adjustments by various agencies,” explained a senior government official. The study says the recent decision to hike expenditure limits for Lok Sabha elections to a maximum of Rs 70 lakh and a minimum of Rs 54 lakh, is one of the reasons for poll spendings likely to touch the Rs 30,000 crore mark. According to a rough, unofficial estimate, after the hike in poll expenditure cap, candidates in fray for 543 seats alone could spend nearly Rs 4000 crore in the LS polls. “Till recently, political parties used to spend more during election. Now, the trend has changed with candidates in most cases spending more than the parties. Now where is this money coming from. It is coming from crorepati candidates, corporates and contractors,” Centre for Media Studies Chairman N Bhaskara Rao told PTI here. The CMS study claims that while Rs 2,500 crore was spent in the 1996 Lok Sabha elections, the amount jumped to Rs 10,000 crore in 2004 polls. Considering expenditure in absolute terms, Rs 10.45 crore was spent in 1952, while Rs 846.67 crore was the amount government spent for 2009 polls. Source – PTI ©2009 Copyright by Invest In India 
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India Inc investment up $29.3-billion in overseas market Posted: 17 Mar 2014 10:14 PM PDT Outward foreign direct investment (FDI) from India, which was on a slippery road during the past two fiscal years, has seen some signs of recovery in the ongoing fiscal year with the total deal value touching $29.34 billion so far, according to a report by Care Ratings. “The period between FY07 and FY11 has been buoyant at times for outward FDI investments, but there has been a slowdown since then. Investments declined in FY12 and FY13, but there has been a recovery in FY14 so far,” the rating agency said in its report. FDI is divided into three categories – equity, loans and guarantee issued. Most of the investments are made in the form of guarantee issued followed by equity, and lastly in the form of loans. Out of the total investments made in the April-January period of FY14, $19.12 billion were guarantee issued, which accounted for 65.1 per cent, Care said. During the period, investment in equity and loans stood at $7.1 billion and $3.21 billion with a share of 23.9 per cent and 11 per cent, respectively. On sectoral basis, the highest investment of $8.91 billion was in transport, storage and communication services space, while $7.56 billion were invested in manufacturing related activities, the report said. Activities such as wholesale, retail trade, restaurant and hotels attracted $2.91 billion from domestic companies in FY14 so far. Significantly, only $32 million were invested in electricity, gas and water and miscellaneous activities. Geographically, the Netherlands and Singapore were the favourite destinations of domestic companies, with a share of 28.8 per cent and 15.2 per cent in total investments, respectively. This was followed by the British Virgin Islands and Mauritius with 10.3 per cent and 7 per cent respectively, with the value $3.69 billion and $3.13 billion respectively. The US accounted for 7 per cent of investments amounting to $2.13 million. Domestic companies made lesser investments in countries such as Azerbaijan (2.8 per cent), the Cayman Islands (1.8 per cent), Hong Kong (1.1 per cent), Cyprus (0.9 per cent), Saudi Arabia (0.9 per cent), Belgium (0.6 per cent) and Oman (0.4 per cent), the report said. Source – PTI ©2009 Copyright by Invest In India
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Foreign companies show interest in Indian power sector Posted: 17 Mar 2014 10:07 PM PDT There has been an increased interest in projects in the Indian power sector with international companies acquiring stakes in power projects in the country. In some instances promoters have sold assets with a view to servicing their loan obligations. The sale of two hydro power projects by the Jaypee Group is a case in point. “Banks have managed to convince the promoter to sell two profitable hydro power plants,” a Standard Chartered report said. “In the case of Jai Prakash Power, the promoters have pledged 97% of their equity in the company to lenders giving lenders a big say in the resolution of debt related issues,” they added. The thermal power sector is among the most stressed sector, because of low availability of coal — which attracts fewer prospective buyers. India’s biggest electricity generator, NTPC, recently invited expressions of interest from state electricity boards and private companies as it looks to buy coal-based power plants in India and overseas to increase power generating capacity through acquisitions. “Given its free cash, it could buy at best 2-3 such plants. Any acquisition of a private thermal plant by NTPC can only happen after the elections given that NTPC is state owned,” SC analysts said. Source – Financial Express ©2009 Copyright by Invest In India
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