Daily Excelsior...Business

HDFC Bank is looking at Canada, Singapore: Parekh

India-Japan trade may touch USD 15 bn by 2010: CII

SBI to expand gold coin sale business

Par panel concerned over lack of security in Sunderbans

Lal Singh inaugurates Cotton County showroom

Excelsior Correspondent

JAMMU, Mar 9: Senior Congress leader Ch Lal Singh, MP, inaugurated an exclusive showroom of Cotton County at Narwal Bye-Pass, here today.

The showroom offers world class collection of ready-made clothes that help to enhance the personality and the customers also get the formals which are a hit across international ramps and the smart casuals.

Lal Singh appreciated the efforts of proprietors of the show room and stressed on maintaining quality and variety of the stocks to the satisfaction of the customers.

The proprietors Rajinder Gupta and Rajeev Gulati informed that they were opening chain of stores in major parts of Jammu city. They added that products of the company have a genuine MRP and it has maintained best quality standards in the production of goods.

The company has launched its summer collection in T-Shirts, cotton products and special items for ladies and assured that wide range of variety for complete satisfaction of customers.

Rajinder Gupta and Rajeev Gulati, proprietors presented vote of thanks, while others present on the occasion included MLA Basohli, Mrs Kanta Andotra and president Jammu Chamber of Commerce and Industry, Ram Sahai.

India likely to maintain close to 20 pc exports growth in '09

NEW DELHI, Mar 9: An economic slowdown in the US notwithstanding, India is likely to maintain the 20 per cent growth in exports in 2008-09 but the basket may undergo a change, said a Finance Ministry official.

"US is one of the major destinations for India. We said that in the coming year, it may not be as good as it was earlier. But that does not mean we are not performing well. We are having 20 per cent plus growth and possibly we can continue with 20 per cent plus," H A C Prasad, Senior Economic Advisor in the Finance Ministry, told PTI.

In the US market, many of India's export items, particularly textiles, handicraft, have fallen. Same is the case with EU, but Asian nations and other economies, Indian exports have not fallen to that extent, he said.

India has set export target of 160 billion dollars for the current fiscal, up 28 per cent over 125 billion dollars in the previous year. Exports have already grown to 124 billion dollars till January and are likely to be close to 160 billion dollars in the full fiscal, with March usually expected to record higher figures, Prasad said.

"Another two months are left and we have to attain 160 billion dollars, which I think we may attain. Almost near to that. May be short by a few billion (dollars)," Prasad, one of the key team members who authored the External Sector part of the Economic Survey 2007-08, said.

Prasad said Economic Survey has pointed towards the areas of weakness for the coming year. "We have to work on the higher base of exports. On this base, we have to have higher exports. There is a recession in the world economy, including US".

A slowdown in the US affected the textile sector first, and then spilled over to other sectors, hampering India's exports to the US, European Union and elsewhere. (PTI)

Indian billionaires beat Chinese, Americans in GDP weightage

NEW DELHI, Mar 9: The domestic economy is smaller than that of China and the US, but the wealth of billionaires from India is equivalent to a larger share of the nation's GDP, compared to Americans and Chinese in their respective countries.

The wealth amassed by Indian billionaires -- estimated at 340.9 billion dollars by the US business magazine Forbes -- is nearly 31 per cent of the country's total GDP. This gives them nearly three times more weight in the economy than their American counterparts and over ten times of those in China.

The net worth of all the Chinese billionaires is just about three per cent of the country's GDP, while that for the US billionaires is nearly 11 per cent.

In its annual list of world's billionaires, Forbes said there are a total 42 billionaires in China and 469 in the US with a combined net worth of 95 billion dollars and 1.6 trillion dollars, respectively.

The magazine put the number of Indian billionaires at 53.

According to latest data available with International Monetary Fund (IMF), the GDP size of India, China and the US for 2007 are estimated at 1,089.9 billion dollars, 3,248 billion dollars and 13,794 billion dollars respectively.

The percentage figures for the share of billionaires' wealth in the three countries are based on the analysis of Forbes net worth figures and the GDP size of these economies.

The GDP share of Indian billionaires' wealth is more than four times of the global average also. Forbes magazine put the combined wealth of all 1,125 billionaires in the world at 4.4 trillion dollars, which is just about seven per cent of the world's total GDP size. (PTI)

NTPC's Sipat project languishes for want of state support

NEW DELHI, Mar 9: A Rs 12,000-crore power project of NTPC that could have eased electricity deficit in western states, specially in summers, is idling despite completion due to Chhattisgarh government reneging on its commitment to supply water.

Lack of water, which is heated and turned into steam for power generation in thermal plants besides for washing coal, has prompted NTPC to approach the who's who both at the Centre and in Chhattisgarh to get the 500-MW unit at the Sipat power plant on stream. The project will have a capacity of 3,000 MW when fully commissioned.

Delay in water supply could mean an additional interest outgo and a loss in revenue totalling Rs 200 crore a month.

NTPC was to commission the first 500-MW unit in October 2007 but had to put it on hold following the Chhattisgarh government's decision to revoke the sanction of water for the plant, company Chairman and Managing Director T Sankaralingam told PTI here.

"There is already a delay of five months because of the water issue with the state government," he said.

The second 500 MW unit would have been commissioned this month or early April to partly meet summer power demand of Maharashtra, Goa, Madhya Pradesh, Gujarat and Chhattisgarh.

But, the schedule has gone haywire due to the state government decision that has already led to a rise of Rs 19 crore a month in capital cost on account of interest for the construction period.

Water in a coal-based power plant is heated and turned into steam for power generation. It is also used for washing of coal.

Sankarlingam said the state government stopped water supply to the plant in May last year, alleging non-drawal of water from the allocated reservoir within the agreed period. "We started drawing water as per schedule (and) have not violated any agreement." (PTI)

Reliance to start selling pvt label electronics in 2-3 yrs

NEW DELHI, Mar 9: Mukesh Ambani-led Reliance Retail, targeting over Rs 15,000 crore turnover from its consumer durables vertical in 3-4 years, is going slow on its private labels to attain a critical scale of operations in terms of retail presence and price performance.

"Two-three years from now, private labels will be a great opportunity. Before that we want to build up some scale. Unless the price performance equation is satisfied we cannot do it," Reliance Retail Consumer Durable IT and Telecom (CDIT) President and Chief Executive Ajay Baijal told PTI.

He said, in current scenario, there was a risk of price erosion and the company would consider scaling up private label products once it opens at least 12 'Reliance Digital' stores across India.

"We are already selling some products like storage devices and accessories under private label, but that is a very small part. In long term, the plan is to have at least 10-15 per cent of products under private labels," he said.

To begin with, the company could start with kitchen appliances, cables, computer and mobile accessories, lanterns, CD and DVD players and audio systems manufactured domestically or imported from countries like China, Taiwan and Thailand.

"May be over a period of time, if the market for other products like flat panel TVs takes off, than we can also consider making TVs," Baijal said.

Reliance currently operates four 'Reliance Digital' stores, which sell consumer durables and electronics items, while in next three years, it plans to open 150 stores across 70 cities in India.

The company is eyeing around over Rs 15,000 crore worth of business from the sector in the next 3-4 years. (PTI)

GMR to unveil IPL's 'Delhi Daredevils' campaign on Monday

NEW DELHI, Mar 9: GMR Group, which owns the national capital's team for the upcoming Indian Premier Cricket league, will unleash a campaign for its 'Delhi Daredevils' on Monday, which would feature dashing openers Virender Sehwag and Gautam Gambhir.

The group, which is in the last stage of finalising main and associate sponsors, has roped in Leo Burnett for its advertising campaign and would be organising clinics and reaching out to schools as a part of the campaign.

"By Monday, we will start the actual on-ground activities of trying to connect with the fans in Delhi through a campaign," GMR Sports CEO Yogesh Shetty told PTI.

Shetty said the firm is currently in the last stage of finalising the main and associate sponsors for the Daredevils.

"We have had interest from firms, even including international ones. Currently, we are in advanced stage of talks with four different parties for finalising deal for one main and other associate sponsors," he added.

He, however, declined to comment on details, saying the Delhi Daredevils' team uniform and other sponsors would be announced on coming Friday.

The company had spent close to Rs 22 crore for signing up players, including New Zealand Captain Daniel Vettori, Pakistan speedster Mohd Asif and ex-Australian fast bowler Glenn McGrath, besides Indian players including Dinesh Kaarthick and Manoj Tiwary.

It had acquired the Delhi team for nearly Rs 340 crore (USD84 million) and the Delhi Daredevils will have Greg Shippard as its coach and TA Sekar for managing the team's cricket operations. (PTI)

Rs 2000cr Budget booster for SIDBI to lend more to small units

NEW DELHI, Mar 9: Backed by a Rs 2,000-crore fund announced in the Union Budget for boosting credit flow to small and medium firms , the Small Industries Development Bank of India will strengthen its presence in industrial clusters.

"We will open branches in the industrial clusters of Kolapur in Maharashtra and Chindwara in Madhya Pradesh in the next one month," SIDBI Deputy Managing Director Rakesh Rewari told PTI.

SIDBI, which is not in the business of direct lending, extends funds to the Micro, Small and Medium Enterprises (MSMEs) through banks and other institutions. It has already opened branches in clusters of Alwar in Rajasthan, Trichi in Tamil Nadu and Kozhikode in Kerala.

A large chunk of India's 12.85 million small and tiny enterprises contributing 39 per cent to the country's manufacturing sector are housed in over 350 industrial clusters, many of which specialise in specific products.

Finance Minister P Chidambaram has proposed in the Budget for 2008-09 setting up of two funds of Rs 2,000 crore in SIDBI - one for risk capital financing and the other for enhancing refinance capability to the MSME sector.

Rewari said, SIDBI would be taking a major initiative to encourage entrepreneurs to avail of the collateral-free loan under the Credit Guarantee Scheme. Under the scheme, up to 80 per cent of the loan guarantee is given by the Centre.

"Over 90,000 units have already been given collateral- free loans" he said adding that SIDBI would seek increased credit from the public sector banks for the MSMEs.

Under the Credit Guarantee Fund Scheme, collateral-free credit up to Rs 50 lakh is available to MSMEs by lending institutions. (PTI)

HDFC Bank is looking at Canada, Singapore: Parekh

NEW DELHI, Mar 9: With the in-principle approval to merge Centurion Bank of Punjab with itself, HDFC Bank is looking at increasing its global footprint.

"We are exploring possibility of having presence in some location," said Housing Development Finance Corporation Chairman Deepak Parekh, promoter of HDFC Bank.

Among various destination the bank is looking at Canada and Singapore, he told PTI.

To fund the global expansion, HDFC Bank also plans to raise one billion dollars (about Rs 4,000 crore) from overseas markets.

"We are going to open some foreign branches for which we require funds," HDFC Bank Treasury (Head) Sudhir Joshi had said.

"As and when we need, we will raise fund through different instruments under the medium-term notes (MTN) programme and the first tranche of fund would be raised in the next 3-4 months," he had said.

The bank has already applied for licences in Bahrain and Hong Kong. Currently, it has a representative office in Dubai.

Meanwhile, the country's second largest private sector lender decided to merge CBoP, a move that will create the country's largest private sector financial institution in terms of branch network.

The Board has already decided the swap ratio of 1:29 for the merger and the combined entity's branch network would go up to 1,148 branches nation-wide. (PTI)

India-Japan trade may touch USD 15 bn by 2010: CII

NEW DELHI, Mar 9: Trade between India and Japan has the potential to double in the next two years if issues like trade facilitation and non-tariff barriers are addressed, according to industry body CII.

India-Japan trade can reach 15 billion dollars by 2010 from 7.5 billion dollars in 2006-07. New areas of trade in services, higher investment flows into India from Japan, promoting people-to-people contact are other ways through which the level of bilateral trade can increase," CII said.

Bilateral trade has more than doubled since 2002-03 with trade balance in favour of Japan. "While import duties on most goods in Japan is low at present, the India-Japan Comprehensive Economic Partnership Agreement (CEPA) can raise the level of India's exports," it said in a study.

There is need for greater focus on agricultural exports to Japan since share of agricultural items in India's exports to Japan has declined by about 22 per cent over the last 10 years, although export of processed food increased by 4 per cent during this period.

Further, export of Indian agricultural goods, chemicals and pharmaceuticals face various NTBs. Exporters also have difficulties in understanding guidelines and regulations, since they are mostly in the Japanese language.

It further said there is need to relax visa norms for Indian medical, para-medical workers and engineers similar to the liberalised entry its nurses have to Philippines and Indonesia as part of free trade deals. "There should be liberalisation of trade in services with regard to movement of professionals in the CEPA," it said.

The Japanese government should also provide Validated End User (VEU) certificate on the lines of the US policy for the Indian buyers. The 6th round of India-Japan CEPA negotiations is scheduled to take place in Tokyo later this month. (PTI)

SBI to expand gold coin sale business

NEW DELHI, Mar 9: An unabated fascination for gold among the domestic consumers and its safe-haven investment character has inspired the State Bank of India to ratchet up its gold business and bring out coins weighing 2-50 grams to be sold through its select branches.

"SBI is expanding its network for sale of gold coins and is desirous of short-listing/empaneling established manufacturers of proven track record for minting and supply of gold coins," the bank said on its website while inviting offers from manufacturers.

The SBI, which launched gold coin business around Diwali last year, will soon be shortlisting manufacturers for minting and supplying the gold coins weighing of 2, 5, 8, 10, 20 and 50 grams. Last year, the largest Public Sector lender opened around 100 branches across the country.

The gold prices have been continuously rising for quite some time because of a host of reasons which include weakening of dollar vis-a-vis rupee and increase in domestic demand.

Gold prices in the domestic market touched Rs 13,000 per 10 gram in Kolkata on March three. The metal is trading at Rs 12,960 today in the national capital.

The manufacturers of the coins will be required to mint gold coins of 999.9/995 fineness from the bars supplied by the SBI.

As per the terms of offer, manufacturers will also be required to supply the coins in tamper-proof certified cards across the country.

The interested manufacturers can send their offers to the bank by March 24, 2008, SBI said. (PTI)

Par panel concerned over lack of security in Sunderbans

NEW DELHI, Mar 9: Expressing concern over lack of security arrangement, provided either by BSF, State Government or the IWAI, in Sunderbans or protocol routes in West Bengal, a Parliamentary panel has asked the Shipping Ministry to take up the matter with the Home Ministry.

"The Committee notes with anguish that no security personnel is being provided in Sunderbans/protocol routes in West Bengal by the BSF, State Government or the IWAI.

"The Committee is of the opinion that security is a prime concern and should be looked into seriously making commensurate arrangements," the Parliamentary Committee on Transport, Tourism and Culture observed in its report.

Under the trade agreement between Bangladesh and India, Inland Waterways Authority of India (IWAI) is the nodal agency in issuing necessary permission for inland barges of both the countries for their movement and undertaking loading and unloading at designated Ports of Call.

"The Committee recommends the Department of Shipping to take up the matter of beefing-up security arrangement in the Sunderbans/protocol routes with the Union Home Ministry so that inadequacy of police deployment could be addressed in a big way," the Parliamentary panel said in its report.

At present, checking of authorised or illegal transportation of men and materials fall under the Customs Department (for cargo) and Immigration Department (for men), IWAI does not play any role in either connection.

The Customs and Immigration authorities check and verify if the cargo carried and men on board were as per the declared manifesto (certified by the Bangladesh' nodal agency for trade and transit protocol - BIWTA), Shipping Ministry sources said. (PTI)