7 Jun 2016

Gujarat unveils new policy to boost IT, start-ups in 5 years

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As part of Prime Minister Narendra Modi’s “Make in India” and “Start-up India” moves, Gujarat Chief Minister Anandiben Patel, on Sunday, announced her government’s new policy for promotion of information technology (IT) and electronic start-ups, envisaging setting up of 50 incubators to provide leadership and facilities to 2,000 start-ups over the next five years.

About 10 lakh square feet of space will be developed for incubators, targeting investment to the tune of Rs.7,000 crore and creation of new employment opportunities.

The BJP government also announced a slew of incentives for incubators and start-ups, including financial assistance of up to Rs.50 lakh for fixed capital investment and up to Rs.5 lakh per annum for guidance of start-ups. They would be given 100 per cent waiver on stamp duty and registration. Also, they would get a rebate of 100 per cent amount of electricity duty for five years and 50 per cent assistance for software purchase up to Rs.1 crore to incubators.

For start-ups, the government’s incentives include partnership of start-up units for government’s e-governance project, up to 25 per cent equity-linked financial assistance in fund taken for venture capital fund, 100 per cent discount on stamp duty and registration fee and product development and marketing assistance, Rs.15 per square feet per employee lease rental assistance, Rs.2 lakh for local patent and Rs.5 lakh for international patent and some other incentives up to 7 years.

Source: http://www.thehindubusinessline.com/news/national/gujarat-unveils-new-policy-to-boost-it-startups-in-5-years/article8693723.ece

6 Jun 2016

No funding for Adani project, says Australia PM

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There will be no government funding for Adani’s $21.7-billion coal mine project, Australian prime minister Malcolm Turnbull said on Friday as he sought to assure a protester in fish costume that he took climate change “as seriously as you”.

Turnbull made these remarks during an election campaign in South Australia. An environmental protester dressed as a clown fish from animated movie Finding Nemo asked him to commit to no public funding for Indian mining firm Adani’s controversial project.

“Adani’s plan to build one of the world’s biggest coal mines in Australia has been hampered time and again. A federal court in August last year had revoked the original approval due to environmental concerns. In October last year, the project got a new lease of life after the Australian government gave its re-approval.

An email to Adani on Friday did not get any response. Analysts said the prime minister’s statement was a major policy shift by the Australian government as until now it had been looking at all sorts of angles to get financial support to the proposal, including the idea of the A$117-billion Future Fund stepping in. A$ is Australian dollar.

“Adani’s pivot into Australian solar project development is looking like a clear insight into how they are going to react. At least with the solar projects, they will have a multi-decade tax holiday in Australia, given they will probably end up having to write off their entire A$1.3-billion ($940 million) investment in Adani Mining Australia profit and loss to-date. This would have a major impact on shareholder equity of the listed Adani Enterprises Ltd, which stood at $2.03 billion on March 31, given Adani Mining Australia represents 46 per cent of the net book value of equity of the entire group,” said Tim Buckley, director of energy finance studies at the Institute for Energy Economics and Financial Analysis (IEEFA).

The admission from the minister that Adani’s proposed Carmichael coal mine project will receive no government money removes one of the final remote funding options for the beleaguered project, he said.

Buckley said Adani Enterprises remained relatively heavily geared, with net debt of $2.6 billion representing 1.3 times book value of shareholders equity. And taking into account the 2015 accounts filed with Australian authorities, Adani Mining Australia Pty is entirely debt-funded and is operating with negative shareholder funds. Hence, financial leverage remains an insurmountable barrier to develop the Carmichael coal proposal. “Adani appears to have no capacity to undertake the high risk A$10-billion Carmichael coal proposal, particularly since the company is now well underway on its new $5-10-billion solar investment programme in India and abroad,” said Buckley.

Apart from Adani, GVK group and Lanco group are also stuck after buying coal mines in Australia.

The Adani group had said they would go ahead with the Australian project to supply cheap coal to Indian power stations. At the same time, Coal India’s production has touched a record high to provide coal to Indian power plants. Besides, with coal-based power plants now shutting down due to high pollution in the developed world, the future of coal mines look uncertain.

3 Jun 2016

Rs 3,770-cr nod for Chennai Metro project

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The union cabinet chaired by Prime Minister Narendra Modi on Wednesday approved an investment of Rs 3,770 crore for development of the first phase of the Chennai Metro Rail project.

The 9.051 km corridor between Washermanpet and Wimconagar will be executed by Chennai Metro Rail Ltd (CMRL), the existing special purpose vehicle (SPV) of the centre and the state government with equal share of equity.

“The project is scheduled to be completed by March 2018. This extension will provide improved access to public transport for dense population comprising predominantly industrial workers to move towards the central business district of the city for work,” said an official statement.

The centre will have a share of Rs 713 crore in the total project cost while the state government’s share would stand at Rs 916 crore.The state’s share includes Rs 203 crore as cost of land acquisition and resettlement and rehabilitation (R&R).

The balance amount of Rs 2,141 crore for the project would be sourced as loan from domestic or multi-lateral funding agencies. The project is estimated to have a ridership of 160,000 passengers per day in the first year of operation.

Source: http://www.business-standard.com/article/economy-policy/rs-3-770-cr-nod-for-chennai-metro-project-116060101427_1.html

 

1 Jun 2016

Danish companies keen to take part in Make in India

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Denmark-based companies such as Danfoss, Grunfdfoss, sRamboll, Novo Nordisk and Novozymes are eyeing the benefits of Narendra Modi’s Make-in-India programme to set up their base in the country.

 

Indian ambasssador to Copenhagen Rajeev Shahare said Denmark has embarked on a number of steps to be ahead of the curve in doing business with India. “The Danish Confederation of Industries (DI) has an office in Mumbai; the Danish Trade Council (part of its Ministry of Foreign Office) has a strong representative office in Bangalore; Asia House in Copenhagen has commissioned a study on how to effectively participate in the Smart Cities project in India,” the ambassador told FE.

 

While many big companies like Danfoss and Carlsberg already have their units, some others are in the process of doing so. “One company is setting up a unit in Hyderabad for manufacturing of ocean cleaning pumps and equipment; another consulting company is exploring Mumbai for its regional office,” he said.

 

The Scandinavian country is keen on setting up production facilities in India taking advantage of India’s low cost of production, availability of technical and English speaking manpower and a compatible working environment, he added.

 

India can also partner Denmark and learn from its best practices in areas like health services, food technology, dairy management, agro services, solid waste management and waste water management.

 

There are around 125 Danish companies in India and probably all top companies have a strong presence — the shipping giant Maersk (AP Moller) which also developed the Pipavav port and is now looking for investments in ports on the eastern coast; Danfoss, Grunfdfoss, Ramboll, leading pharma company Novo Nordisk etc. The Danish companies operating in India are directly or indirectly providing around two lakh jobs to locals here.

 

According to Statistics Denmark, the Danish FDI in India was $854 million in 2014, $731 million in 2013 compared to $931 million in 2012 (up from $877 million in 2011). Major Danish investments in India have been made in sectors such as manufacturing, trade and transport, financial and business services.

 

On the other hand, the Indian investment in Denmark were $71 million in 2014, $89 million in 2013 compared to $103 million in 2012 (up from $112 million in 2011) (Source: Statistics Denmark). Around 30 Indian companies have a presence in Denmark. Of them, 24 are IT companies, two belong to life sciences field and four are diversified mainly in the renewable space.

 

There are some major success stories of companies from Denmark that need to be highlighted. “The largest Danish bank- Danske Bank has all its back end operations in India; the entire Kommune (municipal) operations of KMD are handled by an Indian software company,” according to Shahare.

Source: http://www.financialexpress.com/article/industry/companies/danish-companies-keen-to-take-part-in-make-in-india/269514/

28 May 2016

Now, listed companies’ management to explain audit qualifications : SEBI

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Markets regulator Sebi today asked listed companies to disseminate cumulative impact of audit qualifications in a separate format along with the annual audited financial results to the stock exchanges.

Besides, the management of a company would be required to explain its view about audit qualifications.

The new framework would ensure that the impact of audit qualifications are clearly communicated by the companies concerned to their investors in a timely manner apart from streamlining the whole process.

Sebi decided to have the new system on audit qualifications after extensive discussions with its advisory committees, Institute of Chartered Accountants of India (ICAI), stock exchanges and industry bodies.

Now, listed entities will be required to disclose the cumulative impact of all audit qualifications on relevant financial items in a separate form called ‘Statement on Impact of Audit Qualifications’ instead of the present form.

Such disclosures will have to be made in a tabular form, along with annual audited financial results filed in compliance with the listing regulations.

The new mechanism will be applicable for all the annual audited standalone/consolidated financial results, submitted by the listed entities for the period ended March 31, 2016 and thereafter.

The listed entity will have to furnish a declaration in case there are no audit qualifications.

In case of audit reports with modified opinion, a statement showing impact of audit qualifications will be filed with the stock exchanges in a format specified by the regulator, Sebi said in a circular today.

Issuing a format for ‘Statement on Impact of Audit Qualifications’ for the financial year, Sebi said that companies will have to disclose net profit, networth, turnover, total expenditure, earning per share, total assets and liabilities.

Besides, the firms will have to make submission about details, types, frequency of audit qualification. The management will have the right to give its views on the audit qualification.

Also, the management of the listed entity will have explain its views on the audit qualifications.

“Where the impact of the audit qualification is not quantified by the auditor, the management shall make an estimate. In case the management is unable to make an estimate, it shall provide reasons for the same. In both the scenarios, the auditor shall review and give the comments,” Sebi noted.

Source: http://www.business-standard.com/article/pti-stories/now-listed-cos-management-to-explain-audit-qualifications-116052700918_1.html

27 May 2016

Tanzania plans to invest $1.9 billion each year in energy projects by 2025

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“Tanzania’s electricity sector faces another important challenge. As it is heavily dependent on hydropower, energy provision cannot be ascertained in times of drought,” Tanzania’s prime minister, Kassim Majaliwa, said.

Tanzania plans to invest $1.9 billion each year by 2025 in energy projects in a bid to end power shortages and boost industrial growth in East Africa’s second-biggest economy, its prime minister said.

Tanzania aims to boost power generation capacity to 10,000 megawatts from around 1,500MW at present, using natural gas and coal and reducing its dependence on hydro power sources.

“Tanzania’s electricity sector faces another important challenge. As it is heavily dependent on hydropower, energy provision cannot be ascertained in times of drought,” Tanzania’s prime minister, Kassim Majaliwa, said in a statement late on Tuesday.

“Severe and recurrent droughts in the past few years triggered a devastating power crisis as electricity generation in most of the hydropower stations have progressively been declining in recent years, occasionally resulting in long hours of power black outs.”

Majaliwa said the government wants to see more private capital investment in the energy sector.
“The projected power projects funding exceeds the existing government fiscal space,” he said. “To attract private capital, the government is improving institutional set up, legal and regulatory frameworks.”

Investors have long complained that lack of reliable power was one of the obstacles of doing business in Tanzania.

Tanzania said last week Japan’s Koyo Corporation plans to invest $1 billion in a gas-fired power plant near big offshore natural gas fields off the African country’s southern shore.
Source: http://economictimes.indiatimes.com/articleshow/52432817.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst