Czech Republic to help India modernise heavy industry

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India has signed a protocol with Czech Republic to promote bilateral cooperation in the field of heavy industry, especially in industrial cooperation and facilities construction, the Union Cabinet was apprised today.

The protocol includes modernisation of the existing facilities in India by the Czech companies, including modernisation of three plants of Heavy Engineering Corporation and a central public sector enterprise (CPSE) under the Department of Heavy Industries at Ranchi, set up with Czech support in early 1960’s.

“The aim of the protocol is to promote bilateral cooperation…in the field of heavy industry on the principle of mutual convenience and benefit, in accordance with the laws valid on the territories of the states of the Parties and their obligations resulting from other international agreements,” an official statement said.

Source:  http://economictimes.indiatimes.com/articleshow/50467014.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

US, India to boost defence ties, fast-track co-production

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India and the US have ramped up their defence and strategic ties by agreeing to fast-track co-production ventures as their defence ministers held wide-ranging talks on regional and global security issues besides discussing the growing menace of terrorism.

Defence Minister Manohar Parrikar and his American counterpart Ashton Carter held one-and-a-half hour long closed door discussions yesterday during which the two leaders “reviewed the cooperation between our armed forces which have grown stronger”.

Parrikar said India and US share a strategic partnership that reflects their shared values and interests. Defence and security cooperation is a vital component of this partnership, he said.

Describing the Indo-US defence partnership as an anchor of global security, Carter said the Obama Administration is ready to further strengthen this relationship.

“The Indo-Asia-Pacific is one of the most consequential parts of the world for America’s future. And we welcome India’s rise as a security partner in a region where half of humanity lives, and half of the world’s economic activity takes place,” Carter told reporters at a joint news conference with the visiting Indian Defence Minister.

Carter informed Parrikar that the US has updated its policy on gas-turbine engine technology transfer to India to expand cooperation in production and design of sensitive jet engine components.

As a result of this policy update, Carter said that the US will be able to expand cooperation in production and design of sensitive jet engine components.

Carter and Parrikar look forward to US companies working with their Indian counterparts to submit transfer requests that will benefit from this updated policy, said a joint statement.

During the meeting, the two leaders discussed ways and means to move the ambitious Defence Technology and Trade Initiative (DTTI) forward.

Expressing satisfaction with DTTI progress to date, the two committed themselves to identifying additional projects for possible co-development and co-production of high technology items that meet the transformational intent of DTTI, the joint statement said.

This was the third meeting between the two leaders in less than six months.

Yesterday the two leaders stayed together for nine hours, including four hours abroad USS Eisenhower, a nuclear-powered aircraft carrier.

“Through our meetings today and expanded cooperation in the days to come, the US-India defence partnership will become an anchor of global security, as together, we work towards a common future, a common future between the United States and India that is destined,” Carter said.
“This is a relationship that will be critical in strengthening the Indo-Asia-Pacific security architecture, so that everyone there can continue to rise and prosper,” said the US Defence Secretary.

Carter said he and Parrikar discussed the progress that has been made towards cooperation on jet engines and aircraft carrier design and construction as well as opportunities to collaborate on additional projects of interest, which will also further Prime Minister Narendra Modi’s ‘Make in India’ policy.

Parrikar said their desire is to further collaborate in the higher-end technologies within the framework of DTTI.

“The assurance I have, and I am confident of that India is placed at a level which would ensure that red tapism is cut. I think this is the biggest take home one can get. We have got a very clear promise and we have been experiencing it that our issues are fast-tracked,” he told reporters.

Parrikar said some US companies have shown interest in setting up manufacturing base in India for fighter jets for which India has asked the Pentagon if there is any advance clearance system from their side.

“They (US) are very positive on that,” the Minister said adding that the US side has indicated that pre-approval could be considered on all such proposals coming from companies like Boeing and Lockheed.

As many as 17 new ideas for cooperation under the DTTI are also being discussed.

“We have identified many new areas for cooperative research and development, and both sides are committed to continue to exchange ideas in the search for additional projects for possible co-development and co-production that meet the spirit of DTTI,” he said.

Both sides said that progress has been made on the Defence Technology and Trade Initiative (DTTI) pathfinder projects which include the Raven mini Unmanned Aerial Vehicles (UAVs), “roll-on, roll-off” mission modules for C-130J aircraft, Mobile Electric Hybrid Power Sources (MEHPS) and Next Generation Protective Ensemble (NGPE) for soldiers.

The two leaders discussed range of regional security issues, including the threat posed by the Islamic State and entities such as Al-Qaeda and its affiliates, Lashkar-e-Taiba, Jaish-e-Mohammad, D Company, the Haqqani Network and other regional terror groups, according the joint statement.

Parrikar said in all his meetings in the US, terrorism was one of the key issues of discussions with American leadership.

“The issue of terrorism was a key topic discussion in all engagements Terrorism has become a global phenomenon and requires a comprehensive response. Terrorists of all shades and affiliations must be countered without any differentiation,” he told reporters.

Carter said terrorism of all kinds in South Asia has been and remains a serious problem. India, he said, has been attacked and is continuously threatened with attack from terrorists. However, India has ruled out any enhancement of its role

in the Middle East in view of the emergence of deadly ISIS in Syria and Libya.

Parrikar said there has been no change in India’s policy on participating only in UN approved peacekeeping missions.

But India is and has been sharing intelligence with the US on issues related to terrorism, he said.

Source: http://www.business-standard.com/article/pti-stories/us-india-to-boost-defence-ties-fast-track-co-production-115121100316_1.html

FDI flow in to India grows by 35% in last 17 months

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Foreign direct investment into India has grown by 35 per cent in the last 17 months even as across the world it has fallen by 16 per cent, a top Union government official said today.

“FDI in India has grown by 35 per cent at a point of time when FDI across the world has fallen by 16 per cent,” Department of Industrial Policy and Promotion Secretary Amitabh Kant told reporters here.

He said ‘Make in India’ was launched in end-September last year and since then FDI has grown by 40 per cent as compared to the previous year, “but if you look at the last seventeen months of this government FDI has grown by 35 per cent as compared to the previous seventeen months.”

FDI has come into manufacturing, consumer goods, logistics and food processing sectors, he added.

Kant was today given additional charge of the post of CEO, NITI Aayog, consequent to the completion of tenure of Sindhushree Khullar.

Asked about the additional charge, he said “…I have not yet taken over.”

On startups, Kant said, “there is a huge energy, vitality and dynamism amongst startups in India and we need to carry this forward from digital startups to manufacturing startups, to startups in agriculture and social innovation areas, and from tier one to tier two and three cities.”

“The Prime Minister will be launching the Startup India movement on January 16 in New Delhi, we are inviting all the startups from Bengaluru to participate in this.”

“On that day we will link up all the IITs, IIMs, NITs and central universities for viewing of the startup India discussions from morning to evening,” he added.

He also said to provide a major impetus to the sector the Prime Minister will unveil the action plan for startups on that day.

On the economy, Kant said India is growing at 7.4 per cent and “it is an oasis of growth in the midst of a very balanced economic landscape across the world.”

“Challenge for India is to grow at 9-10 per cent over a long period of time over the next three decades or more,” he said.

“If India has to grow at 9-10 per cent India must become a very easy and simple place for people to do business….; It has to grow rapidly in manufacturing sector,” he added.

While speaking about the Make in India initiative of the government, Kant said Make in India week is being organised from February 13 to 18 in Mumbai, where about hundred countries are participating from across the world. Also, Asia business forum will be held during this event.

Stating that government is taking a series of measures to make India a very easy and a very simple place to do business, he said, “We have created an e-biz platform with Infosys where we have put twenty government services online with one single point of payment….”

“Our objective is that in the long run there should be only one identification number for the businessmen. The company identification, the labour identification and others should all get merged into one identification and there should be just one single form…..” he added.

Speaking about competition among states in ease of doing business, Kant said last year we had ranked the states on hundred points, this year we are doing it on 340 points.

“We expect Karnataka to do extremely well this year and take action on all 340 points and prove its position; Karnataka must come in top three,” he added.

 

Source: http://www.business-standard.com/article/pti-stories/fdi-flow-grows-by-35-in-last-17-months-official-115122900639_1.html

Global mergers and acquisitions hit all-time high in 2015 at $4.86 trillion: Dealogic report

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Global M&A volume at USD 4.86 trillion in 2015 was the highest on record for any year, surpassing the previous record of USD 4.61 trillion in 2007.

The 2015 was a record year for global merger and acquisitions (M&A) as corporates announced deals worth USD 4.86 trillion and a significant portion of this came from Asia Pacific targeted deals, says a report.
According to global deal tracking firm Dealogic, global M&A volume at USD 4.86 trillion in 2015 was the highest on record for any year, surpassing the previous record of USD 4.61 trillion in 2007.

Moreover, this year’s total is a good 33 per cent higher than the last year.

In another first, the Asia Pacific targeted M&A broke the USD 1 trillion mark, reaching USD 1.16 trillion in 2015, and accounted for a record 24 per cent share of global M&A.

Sectorwise, healthcare was the top ranked sector in 2015 with USD 708.7 billion, up 62 per cent from 2014 when deals worth USD 436.3 billion were announced.

Technology was a close second with record high volume and activity (USD 697.4 billion by way of 9,038 deals), almost double 2014 volume (USD 326.1 billion).
The four largest technology deals on record were all announced in 2015, led by Dell’s USD 66 billion bid for EMC, announced on October 1.
Meanwhile, Goldman Sachs (USD 1.76 trillion), Morgan Stanley (USD 1.49 trillion), JPMorgan (USD 1.48 trillion) and Bank of America Merrill Lynch (USD 1.12 trillion) all recorded their highest annual advisory volumes on record.

All these firms surpassed their previous M&A records set in 2007, the report added.

 

Source: http://economictimes.indiatimes.com/articleshow/50354461.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

SEBI allows foreign venture funds to register as FPIs, plans to finalize listing norms for startups soon

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Capital markets regulator SEBI has said that Foreign Venture Capital Investors (FVCIs) can be granted registration as a foreign portfolio investor if they meet certain guidelines.

The announcement came following a query from designated depository participant seeking clarification with regard to any restrictions on applicants, holding registration as a FVCI, from obtaining registration as a FPI (Foreign Portfolio Investor).

FVCI is an investor incorporated or established outside of India who can invest either in a domestic venture capital fund or a venture capital undertaking (domestic unlisted company), while FPI comprises of FIIs, sub-accounts and Qualified Foreign Investors.

In the circular, Securities and Exchange Board of India (SEBI) said depository participants may consider an applicant, holding FVCI registration, for grant of registration as a FPI.

The capital markets regulator “do not expressly prohibit FVCI from holding registration as a FPI.” However, the registration is subject to certain criteria like the applicant complies with the eligibility criteria as prescribed under the FPI regulations.

Other criteria include funds raised, allocated and invested must be clearly segregated for both registrations, reporting of transactions must be done separately and there should be clear segregation of securities held under FVCI and FPI registrations.

“Separate accounts must be maintained with the custodian for execution of trades. However, such an applicant shall have same custodian for its activities as FPI and FVCI,” SEBI noted.

Also, to attract technology startups to the domestic stock markets, SEBI is all set to make their listing and fund raising requirements easier. The final norms, which would be presented for approval from the SEBI’s board later this month, have been finalised after taking into account suggestions from all stakeholders to the draft guidelines released in March, sources said.

Asking technology startups founded by Indians to remain within the country, SEBI Chairman U K Sinha, last weekend, had promised an easier set of regulations for them to get listed and raise funds from the domestic stock market. “We are going to take a decision very soon in this regard. We are looking into how to make it easier for them to raise money,” Sinha had said.

The new norms are expected to help startup companies raise funds within India and stop their flight to overseas markets. “What is happening today is most of these startups, who have been reasonably successful, they are getting attracted to the New York Stock Exchange or Singapore Stock Exchange,” Sinha had said.

“They do not want to get listed here for varieties of reasons. They are getting attracted to foreign markets. Our effort is to provide a mechanism that they get listed in India itself, for the benefit of the country and for the benefit that the country’s startups remain within the country,” he had added.

Under the new norms, the entire pre-issue capital is expected to be locked-in for a period of six months for all shareholders. At present, promoters are required to offer a minimum of 20 per cent of post-issue capital as lock-in for a period of three years. Besides, SEBI is expected to make easier disclosure norms for startup listings. While filing the draft offer document with the capital market watchdog, such firms will only need to disclose broad objectives in line with the major international jurisdictions.

SEBI has already made it easier for the Small and Medium Enterprises (SMEs) to raise money from capital markets. “SMEs are primarily dependent on bank loans today and we know that banks have their own limitations. We have created separate platforms for SMEs at the two top exchanges BSE and NSE. We have balanced the requirement of safeguarding the investors and also facilitating the fund requirement of the SMEs.
Source: http://yourstory.com/2015/06/sebi-allows-foreign-venture-funds/

RBI sets up helpline for startups on fund-raising

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With startups raising funds from a variety of offshore sources, including individuals, private equity players and crowdsourcing, the RBI has set up a dedicated helpline for advice on cross-border remittances which are subject to guidelines issued under the foreign exchange management act.

 

Although businesses are supposed to know the law before they raise capital, many of the startups are being promoted by very young and inexperienced individuals. Moreover, the amount raised by some of them run into only a few lakhs, making it difficult for them to hire law firms.

 

The helpline is actually an email ID (helpstartup@rbi.org.in) through which RBI will respond to queries. The central bank said that it will offer guidance/assistance to them for undertaking cross-border transactions within the ambit of the regulatory framework.

 

“While seeking guidance, the enterprises should provide complete information to the RBI and mention the specific issues on which they need guidance in relation to the Foreign Exchange Management regulations. This would enable the personnel attending the helpline to offer timely and effective information.”

 

In his Independence Day speech, Prime Minister Narendra Modi had announced that government would take measures to promote startups in the country. Since then, the government has sought inputs from investors like SoftBank president Nikesh Arora and Snapdeal CEO Kunal Bahl and former Infosys director Mohandas Pai. The department of industrial policy and promotion had drawn up an action plan to address concerns of entrepreneurs. One of the issues raised was the cumbersome process in complying with the Foreign Exchange Management Act (FEMA) documentation.

 

Startups usually undertake a wide range of cross-border transactions including those related to investment. Cross-border transactions of resident Indians are subject to the regulatory regime provided by the Foreign Exchange Management Act, 1999.

 

Source: http://timesofindia.indiatimes.com/business/india-business/RBI-sets-up-helpline-for-startups-on-fund-raising/articleshow/50290682.cms

Japan’s SoftBank wins first solar project in India

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Marking its debut in the Indian solar sector after its investment announcement of $20 billion, Japan’s SoftBank won its first solar power project in India. The Japanese firm won the 350 megawatt (Mw) project, under the Jawaharlal Nehru National Solar Mission (NSM), through its joint venture (JV) company SBG Cleantech.

SBG Cleantech bid the lowest tariff of Rs 4.63 per unit to win the entire tendered capacity of 350 Mw. This is the lowest bid this year for solar power. Last month, US firm SunEdison had won a 500-Mw solar power park in Andhra Pradesh at the same tariff.

Indiabulls’ Yarrow Infrastructure, Azure Power, Reliance CleanGen, Goldman Sachs-backed ReNew Power, US’ First Solar and China’s Trina Solar were also in the fray.

“Our goal is to create a market-leading renewable energy company, to fuel India’s growth with clean, reliable and affordable sources of energy. I am glad we could open our account with this win. This project will immensely contribute to the Prime Minister’s vision of meeting the country’s energy demands through clean sources and India’s commitment to providing a safe environment, following the recent Paris convention,” said Nikesh Arora, president and chief operating officer of SoftBank, in a statement.

In June this year, SoftBank had tied up with Foxconn and Bharti Enterprises to invest in the Indian solar energy sector, committing $20 billion. This is its second bid participation after the AP solar park and the first win for any power project through its JV, SBG Cleantech.

“SoftBank is establishing itself as a serious player. The company is likely to be a strong contender in the upcoming national bids as well,” said Jasmeet Khurana, associate director (consulting), Bridge to India.

SBG Cleantech has Bharti veterans Manoj Kohli as executive chairman and Raman Nanda as chief executive. The company is headquartered in New Delhi.

“Of the 100 gigawatt (Gw) target set by the PM, the SoftBank venture will look at solar power generation of 20 Gw. The investment will be made through the next 10 years. Acceleration will depend on the support of the central and local governments, and NTPC,” SoftBank founder & CEO Masayoshi Son had said in June during the launch of the joint venture.

According to market experts, the recent bids show there are only 10-12 developers who have the appetite to continuously try and take up large projects at current tariff levels, which has gone below Rs 5 a unit.

“The government and power distribution companies must be happy about the results and this might be good for continued policy support for new allocations across India. With such results, the states are likely to be much more willing to allocate land to solar parks and take the NSM route to attract solar investments,” said Khurana.

Sun Power

Company Tariff                                                              (Rs per unit)

SBG CLEANTECH LTD (SoftBank)                                      – 4.63

Yarrow Infrastructure Limited (IndiaBulls)                          – 4.64

Azure Power India Private Limited                                        – 4.76

Reliance CleanGen Limited                                                     – 4.88

ReNew Solar Power Private Limited                                       – 5.17

MIRA ZAVAS PRIVATE LIMITED (China’s Trina Solar)  – 5.18

Marikal Solar Parks Pvt Ltd (US’ First Solar)                       – 5.34

*Parent  institutions in brackets

 

Source: http://www.business-standard.com/article/companies/japan-s-softbank-wins-first-solar-project-in-india-115121500246_1.html