Shipping ministry in talks with firms to set up fund of up to Rs.15,000 Cr to extend low-cost loans

Bangalore, September 02 2014.: The shipping ministry has initiated discussions with financial institutions such as IFCI and IDBI to establish a fund of as much as Rs.15,000 crore to extend low-cost loans to shipbuilders. The shipbuilding development fund will form a key part of a policy being drafted by the shipping ministry to promote local shipbuilding as announced by finance minister Arun Jaitley in his budget speech on 10 July. 

“We are discussing the finer details of the shipbuilding development fund with IFCI and IDBI,” a shipping ministry spokesman said. Other features of the policy could include granting special economic zone (SEZ) status to shipyards and declaring it as a strategic sector with attendant fiscal incentives. 

“Shipbuilding is a big opportunity today,” Prime Minister Narendra Modi said on 16 August during the foundation stone laying ceremony for a special economic zone (SEZ) and road connectivity project at Jawaharlal Nehru Port Trust located near Mumbai. “India’s contribution to global shipbuilding has been very low. South Korea, a very small country, smaller than the state of Maharashtra today alone has a 40% share of global shipbuilding,” Modi said. 

“We want to encourage shipbuilding.” Elaborating on his theme of “come, make in India”, which he mentioned during his Independence Day speech, Modi said his government will encourage foreign investment in shipbuilding. India, Modi said, has a large army of youngsters which was as long as the country’s vast coastline. “We have young people, skilled manpower who can be easily mobilized. Shipbuilding is also not about technology. 

Turner, fitter, welder also are involved in shipbuilding. The poorest of the poor gets employment,” Modi added. Local shipbuilders have been struggling to get orders for constructing merchant ships after the global recession of 2008. Indian shipyards are outbid by Chinese and Korean shipyards due to cost differentials arising from lack of support for the industry in India, said a spokesperson for the Shipyards Association of India, an industry lobby. 

“On the other hand, foreign shipyards benefit from direct fiscal and non-fiscal support from their respective governments,” he said. Indian shipyards pay an interest of 13-14% on capital expenditure and working capital loans for purchasing raw materials and other inputs as against around 4-6% in countries such as China and South Korea. 

“The differential interest cost imposes a significant cost burden on Indian built ships,” the Shipyards Association spokesman added. China’s EXIM bank gives preferential loans to its domestic shipyards at rates as low as 2.7% which provides a huge cost advantage to Chinese shipyards, especially when a ship is financed at debt-to-equity ratios which are as high as 90:10 and the working capital requirements for building a ship can be as much as 35% of the cost of a ship, on an average, during its construction period, the ministry spokesman said. 

“Korea, China and Japan have pursued a mix of fiscal and non-fiscal incentives for encouraging growth and development of their shipbuilding industry. Shipbuilding is a capital intensive industry with a sell first, build later model where buyers pay a small percentage of the price of the ship upfront. This requires shipbuilders to invest substantial capital in executing orders,” the spokesman said. “Availability of loans at a low cost is a significant support provided by most shipbuilding countries to their yards.”

Courtesy: Live Mint

PM Narendra Modi stresses on building infrastructure; says take ownership to build a strong nation 

Photo: IDFC

[Editor: The real problem with Narendra Modi is that he talks more but works less. He is seen more, giving high publicity to his works, rather than showing his real achievements. However, he is a quality (good) salesman, who somehow managed to reach the corridors of New Delhi. Now it seems a large section of the media dances to his tune. Anyway, I sincerely hope that, he becomes a man of action instead of living only on his past glory. But then I am more interested with the performance of the NDA. If the NDA does well and our (Indian) economy shines, then it does not become important, whether Narendra Modi continues to remain a Buffoon or not. A  monkey will always climb a tree, whether it is England or India. So let the ape climb a tree as long as it fetches fruits for us]
NEW DELHI, 19 Aug, 2014: Stressing on the importance of building a robust infrastructure, Prime Minister Narendra Modi on Tuesday said, "A nation that gives impetus to infrastructure, be it roads, rail, airport, that is where chances of development increase."

"We have to take ownership to build a strong nation," Modi said. "When the road network increases the avenues of development increase too," he added. "We cannot do with infrastructure of the last century. Any contractor comes makes a road & it gets destroyed in monsoon...this won't do," Modi said.

Modi also said that removing corruption was key to ensuring progress. "Corruption is worse than cancer. We together have to uproot this evil," he said. "'Mera Kya' and 'Mujhe Kya'...this has ruined the nation. We need to free nation from corruption," he reiterated. 

Modi laid foundation stone for the Kaithal-Rajasthan border section of National Highway 152/65, at Kaithal in Haryana.

The Rs 1,393 crore project road starts from Kaithal and ends at Haryana-Rajasthan Border and will be completed in 30 months. It passes through Kalayat, Narwana, Barwala, Hisar and Siwani towns, the officials said.

Twenty-three underpasses and 20.90 km service roads are proposed in the project near villages which shall ensure the safety of the pedestrian and the people residing in the vicinity of the road, they said.

(With inputs from PTI)

Courtesy: The Economic Times 

End-Session: IT stocks nudge higher

19-Jun-14: Key benchmark indices declined in choppy trade as macroeconomic worries resurfaced along with increase in crude oil prices. India imports majority of its crude oil requirements. The barometer index, the S&P BSE Sensex, shed 44.45 points or 0.18%, off 224.05 points from the day's high and up 132.14 points from the day's low. The market breadth indicating the overall health of the market was negative.

IT stocks gained after the US Federal Reserve on Wednesday, 18 June 2014, gave a positive assessment of the world's largest economy and committed to retaining its accommodative monetary policy. 

Index heavyweight and cigarette major ITC gained after a block deal was executed on the counter on BSE today, 19 June 2014. Shares of PSU OMCs and state-run upstream oil firms dropped after international crude oil prices firmed up. Another trigger for the slide in the shares of ONGC and Oil India was reports that oil ministry has proposed that gas price hike should be restricted to incremental production rather than the entire production. Those reports also weighed on the shares of another gas producer Reliance Industries. Many PSU stocks declined after market regulator the Securities and Exchange Board of India (Sebi) at its board meeting today, 19 June 2014, recommended that all listed companies including PSUs should have at least 25% public shareholding in three years.

Shares of United Spirits dropped as the open offer made by Diageo, the world's largest liquor maker, to acquire additional stake in the company ends today, 19 June 2014. Shares of companies whose fortunes are linked to orders from Indian Railways rose on reports the government is moving swiftly to allow foreign direct investment in railways. Among FMCG stocks, Colgate Palmolive (India) scaled record high. VIP Industries and D B Realty hit 52-week high. Rallis India and MindTree scaled record high. Shares of Bharat Electronics hit 52-week high. ALSTOM India also scaled 52-week high. Metal and mining stocks were mixed. Sugar stocks edged lower.

The S&P BSE Sensex shed 44.45 points or 0.18% to settle at 25,201.80, its lowest closing level since 16 June 2014. The index lost 176.59 points at the day's low of 25,069.66 in early afternoon trade. The index jumped 179.60 points at the day's high of 25,425.85 in early trade.

The CNX Nifty shed 17.50 points or 0.23% to settle at 7,540.70, its lowest closing level since 16 June 2014. The index hit a low of 7,502.55 and a high of 7,606.45 in intraday trade.

The market breadth indicating the overall health of the market was negative. On BSE, 1,586 shares declined and 1,406 shares gained. A total of 93 shares were unchanged.

The BSE Mid-Cap index shed 37.90 points or 0.42% to settle at 8,997.35. The BSE Small-Cap index lost 30.66 points or 0.31% to settle at 9,842.98. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 3710 crore, lower than Rs 4288.99 crore on Wednesday, 18 June 2014.

Among the 30-share Sensex pack, 17 stocks declined and the rest of them gained.

Index heavyweight and cigarette major ITC rose 0.99% to Rs 336.35 on volume of 14.40 lakh shares. A block deal of 12.61 lakh shares was executed on the counter at Rs 336.35 per share at 14:55 IST on BSE today, 19 June 2014.

United Spirits dropped 7.88% as the open offer made by Diageo, the world's largest liquor maker, to acquire additional stake in the company ends today, 19 June 2014.

Diageo made an open offer to public shareholders of United Spirits to acquire an additional 26% stake at Rs 3,030 per share. The offer opened on 6 June 2014 and ends today, 19 June 2014.

Diageo, through a subsidiary Relay B V, is the largest shareholder of USL, with a 28.78% stake (as on 31 March 2014).

United Spirits is yet to announce its Q4 and year ended 31 March 2014 results.

Colgate Palmolive (India) rose 3.9% to Rs 1,584.80, also its record high.

Mahindra & Mahindra rose 1.6% to Rs 1178, with the stock recovering on bargain hunting after recent slide. Shares of Mahindra & Mahindra (M&M) had declined 5.7% in three trading sessions to settle at Rs 1,159.40 on Wednesday, 18 June 2014, from a recent high of Rs 1,229.50 on 13 June 2014.

Oil and gas stocks dropped. State-run GAIL (India) declined 1.88%. Private sector oil explorer Cairn India fell 1.36%.

Shares of PSU OMCs dropped after international crude oil prices firmed up. BPCL (down 4.79%), HPCL (down 3.9%) and Indian Oil Corporation (down 2.88%), edged lower.

Higher crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.

Shares of state-run upsteam oil firms dropped on concerns their subsidy burden will rise along with increase in crude oil prices. ONGC lost 4.95% at Rs 421.25. Oil India shed 6.24% at Rs 561. ONGC and Oil India share part of the under-recoveries of state-run oil refining-cum-marketing firms (PSU OMCs ) arising from the government-imposed price caps on prices three key fuels -- diesel, LPG for domestic use and kerosene.

ONGC and Oil India also slipped after media reports suggested that the petroleum ministry has proposed that higher gas price as per the Rangarajan formula could be allowed only for incremental production over and above the current levels. This is an alternative to applying the formula unconditionally from 1 July 2014. Restricting the higher price to additional output, the ministry feels, would incentivise production while also protecting the interests of consuming industries like power and fertilisers, reports said.

Private sector oil major Reliance Industries was down 2.51% to Rs 1,040.05. The stock hit a high of Rs 1,076 and a low of Rs 1,031.85.

IT stocks gained after the US Federal Reserve on Wednesday, 18 June 2014, gave a positive assessment of the world's largest economy and committed to retaining its accommodative monetary policy. US is the biggest outsourcing market for the Indian IT firms.

Tata Consultancy Services (TCS) (up 2.36%), Infosys (up 1.83%), HCL Technologies (up 1.57%), Wipro (up 1.22%) and Tech Mahindra (up 0.49%) gained.

MindTree advanced 3.82% to Rs 862 after hitting a record high of Rs 872 in intraday trade.

Dr Reddy's Laboratories rose 0.79%. The US Food and Drug Administration has reportedly announced that Dr Reddy's Laboratories is recalling 13,560 bottles of the high blood pressure drug metoprolol succinate in the United States after it failed a dissolution test. Metoprolol succinate extended release is a cheaper generic form of AstraZeneca Plc's Toprol XL. The recall was voluntarily started by Dr Reddy's on 23 May 2014, reports suggest.

Maruti Suzuki India fell 3.4%. Maruti Suzuki India during market hours today, 19 June 2014, said that the company has commissioned a 1 megawatts photovoltaic solar power plant at Manesar this month. Built with an investment of Rs 10.30 crore, the solar power plant will help the company offset CO2 emissions to the tune of over 1200 tonnes annually, Maruti Suzuki India said. The power generated from the solar plant at Manesar is synchronized with the natural gas based captive power plant and is used to complement the power requirement in the facility, Maruti said.

Kotak Mahindra Bank fell 3.96% as the Reserve Bank of India after market hours on Wednesday, 18 June 2014, notified that the foreign share holding in the private sector bank by Foreign Institutional Investors (FIIs) under Portfolio Investment Scheme (PIS) has reached the trigger limit. Hence, further purchases of equity shares of this company would be allowed only after obtaining prior approval of the Reserve Bank of India.

Many PSU stocks declined after market regulator the Securities and Exchange Board of India (Sebi) at its board meeting today, 19 June 2014, recommended that all listed companies including PSUs should have at least 25% public shareholding in three years. Under the current rule, while non-PSUs are required to have minimum 25% public shareholding, PSUs are required to have only 10% minimum public shareholding.

Coal India (down 2.07%), Steel Authority of India (Sail) (down 4.41%), National Aluminium Company (Nalco) (down 3.55%) and NHPC (down 0.76%) declined. MMTC (up 2.38%) and NMDC (up 0.71%) rose. The government holds a stake of 80% or more in these state-run companies.

Zee Entertainment Enterprises was down marginally by 0.02% to Rs 276. A block deal of 10.79 lakh shares was executed on the counter at Rs 276.20 per share at 14:57 IST on BSE today, 19 June 2014.

Zee Media Corporation shed 0.25%. Zee Entertainment Enterprises after market hours on Wednesday, 18 June 2014, said its subsidiary Taj Television India will now distribute all the channels of Zee Entertainment Enterprises and Zee Media Corporation while also representing Turner channels as its authorized agent. Taj Television is India's largest distribution agency and has a repertoire of over 45 leading television channels.

Shares of companies whose fortunes are linked to orders from Indian Railways rose on reports the government is moving swiftly to allow foreign direct investment in railways. Simplex Casting (up 5%), Stone India (up 4.91%), Kalindee Rail Nirman (Engineers) (up 4.98%), Titagarh Wagons (up 4.99%), Kernex Microsystems (India) (up 1.52%), BEML (up 1.26%) edged higher.

As per reports, the commerce and industry ministry has initiated the exercise to allow 100% foreign direct investment (FDI) in several segments of railways, moving beyond its earlier plan to open select sectors such as high-speed train systems, dedicated freight lines built through the public-private partnership route and in certain areas of suburban rail networks. Currently, there is a complete ban on any kind of FDI in railways, except mass rapid transport systems.

Crompton Greaves fell 2.09%. Crompton Greaves today, 19 June 2014, said that the company is currently not negotiating any offer for sale of its land at Kanjurmarg in Mumbai. The company issued this clarification after news reports suggested the company has put up a part of its land parcel in the eastern suburbs of Mumbai for sale.

VIP Industries jumped 4.81% to Rs 114.45 after hitting a 52-week high of Rs 118.50 in intraday trade.

Rallis India gained 3.66% to Rs 212.40 after hitting a record high of Rs 217.70 in intraday trade.

D B Realty surged 4.35% to Rs 106.70 after hitting a 52-week high of Rs 116.20 in intraday trade.

Bharat Electronics gained 6.93% to Rs 1,946.80 after scaling a 52-week high of Rs 1,989.70 in intraday trade.

ALSTOM India surged 6.12% to Rs 579.90, also its 52-week high.

Sugar stocks edged lower. Simbhaoli Sugar Mills (down 4.97%), Shree Renuka Sugars (down 3.1%), Dhampur Sugar Mills (down 2.13%), Sakthi Sugars (down 2.11%), Triveni Engineering & Industries (down 2.06%), Bajaj Hindusthan (down 1.24%), Balrampur Chini Mills (down 0.98%) and Dwarikesh Sugar Industries (down 0.38%) declined.

Indian stocks witnessed high intraday volatility today, 19 June 2014. Key benchmark indices edged higher in early trade as Asian stocks rose after the US Federal Reserve after a monetary policy review on Wednesday, 18 June 2014, said a highly accommodative stance of monetary policy for the US economy remains appropriate at this juncture. Volatility struck the bourses in morning trade as the key benchmark indices retreated from intraday high hit in early trade only to regain strength later. The 50-unit CNX Nifty regained positive zone soon after reversing intraday gain to briefly turn negative. Volatility continued in mid-morning trade as the key benchmark indices regained positive zone after hitting fresh intraday low in negative zone. Key benchmark indices extended fall and hit fresh intraday low in early afternoon trade. Key benchmark indices recovered from the day's low in afternoon trade as European stocks rose in early trade there. Key benchmark indices rebounded from intraday low to regain positive zone in mid-afternoon trade. Intraday volatility continued in late trade.

Brent crude rose as investors worried about exports from Iraq as militant violence in the country continues. Brent crude futures for August delivery were up 27 cents at $114.53 a barrel. The contract had risen 81 cents to settle at $114.26 a barrel on Wednesday, 18 June 2014, the highest level since 6 September 2013.

Increase in oil prices has triggered macroeconomic worries for India which imports majority of its crude oil requirements. Increase in crude oil prices have raised concerns of increase in fuel price inflation and increase in India's current account deficit and fiscal deficit.

European shares edged higher on Thursday, 19 June 2014, as investor sentiment received a boost from the Federal Reserve which said the US economy is rebounding and that US interest rates would stay low for some time. Key benchmark indices in UK, France and Germany were up 0.82% to 0.87%.

Asian markets edged lower on Thursday, 19 June 2014, as crude rose as investors worried about exports from Iraq as militant violence in the country continues. Key benchmark indices in Singapore, Hong Kong, Indonesia and China fell by 0.06% to 1.55%. Key benchmark indices in Taiwan, South Korea and Japan rose by 0.13% to 1.62%.

Chinese Premier Li Keqiang vowed that his nation's economy will not suffer a so-called hard landing, a report said.

Trading in US index futures indicated a flat opening of US stocks on on Thursday, 19 June 2014. US stocks rallied on Wednesday, 18 June 2014, gaining the most in four weeks, after the Federal Reserve chief signaled no hurry to raise rates.

The Federal Reserve said growth is bouncing back and the job market is improving as it continued to reduce the monthly pace of asset purchases. The Federal Open Market Committee trimmed bond-buying by $10 billion for a fifth straight meeting, to $35 billion, keeping it on pace to end the program late this year.

In a statement, the Federal Open Market Committee (FOMC) said that if the incoming information broadly supports the committee's expectation of ongoing improvement in US labor market conditions and inflation moving back toward its longer-run objective, the committee will likely reduce the pace of asset purchases in further measured steps at future meetings. However, asset purchases are not on a preset course, and the committee's decisions about their pace will remain contingent on the committee's outlook for the labor market and inflation as well as its assessment of the likely efficacy and costs of such purchases. To support continued progress toward maximum employment and price stability, a highly accommodative stance of monetary policy remains appropriate at this juncture, the FOMC said. The committee was of the view that it will be appropriate to maintain the current zero to 1/4 percent target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the committee's 2% longer-run goal, and provided that longer-term inflation expectations remain well anchored.

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Marg Ltd  (Rs.19.75): Will Slowly Move towards Rs.89-90

Book Value: Rs.180.91

Market Cap: Rs.75.28 Crore only

MARG Limited (formerly MARG Constructions Ltd) is one of the leading Infrastructure & Real estate Company in south India. MARG was awarded with the prestigious "Excellence in Infrastructure" award at the Construction Industry Awards 2012, Chennai. MARG is focused on achieving holistic regional development, unlocking economic prosperity and creating inclusive & sustainable growth models. 

The Company, by itself and through its subsidiaries, is undertaking the development and operation of infrastructure projects in the areas of marine infrastructure, urban and industrial infrastructure, thereby pioneering the development of economic growth centers. It owns and operates a port at Karaikal, Puducherry with handling capacity of 28 MTPA and is also developing a 612 acre special economic zone (SEZ), as a part of MARG Swarnabhoomi - 'The Land of New Thinking' on the scenic East Coast Road between Chennai and Puducherry. 
MARG’s EPC division provides integrated turnkey solutions by offering a plethora of services including integrated design, engineering, material procurement, field services and construction & project management services for infrastructure sector and real estate projects for its various subsidiaries as well as external customers. The Company also offers quality residential spaces, predominantly catering to the mid segment and affordable segment categories and commercial spaces as developing a multi-use commercial building, in the heart of Chennai's IT corridor, comprising retail space (mall & multiplex), office space, hotel and service apartments. Besides this, the Company is developing and executing various commercial & residential projects in other states, which have gained momentum in recent years.

Positives  

Though concerns continue to exist over the current account deficit scenario, prevailing supply side constraints, inadequate infrastructure investments and long term policy directions, but with INR appreciating against the USD and the newly elected NDA Government likely to give greater impetus to infrastructure development and planning (to double investments in the infrastructure sector, over the period of next five years), is expected to give a major boost to the construction and infrastructure activities. The NDA Government is focused to make major amendments to land acquisition laws, which is hoped to accelerate the process of Land acquisitions.

EPC VERTICAL

The FY12-13 was a challenging phase and emerged as a year of consolidation for project execution and other business aspects. It has an unexecuted EPC order book is at Rs.3,800 Crores as of March 2013 constituted by 19% for Group assets like Port, Mall and others and 81% for external customers including 45% for civil work for group’s projects for residential and external customers and 36% for Government, PSU and other Corporate EPC customers. It is participating in fresh tenders in FY15. 

MARG EPC division has signed agreement with Momentum Group, an Irish-registered Company established in 1983 with its headquarters in Dubai, which qualifies MARG to foray into off and on-shore oil & gas sector. The Momentum Group actively markets well drilling and program engineering services providing total drilling operations management for jack-up, land drilling and pipeline projects all over the world. Some of their most recent projects and services being in the Caspian region (Azerbaijan, Russia, Turkmenistan), Far East (Malaysia), Middle East (UAE, Iraq, Kuwait), Turkey and North Africa (Egypt).

MARG is in the process of building a healthy pipeline of additional EPC contracts - bidding for mega contracts in the specialized areas like marine, industrial projects, urban infrastructure and solar & alternate energy sector.

Apart from this, recent approvals obtained for residential projects, infusion of funds into MARG Junction; Launch of Service Apartments will increase the EPC division’s turnover from MARG in the forthcoming years.

The EPC division which was catering to the need of in-house and external projects has successfully handed over Pushpadrum Residential Project and is in the process of handing over its other residential project MARG Vishwashakthi at Tirupathi. Twin Disk project is completed and full-fledged development of MARG Institute of Technology Science is being done in Swarnabhoomi. 

On completion of Berths & allied Infrastructure, Edible Oil & Molasses Tank farms, Marine Loading & Unloading arms, Truck loading system execution is now focused and is nearing completion on construction of break waters, Stacker Cum Reclaimer, Wagon Loading System, Ship Unloaders and Conveying System in Karaikal Port. 

The external project team has completed wagon fabrication work for Braithwaite Company Limited, Jhansi I & II for Northern Central Railways. Multi Storied Residential project for BHEL is completed & Residential project for HUDA in Rewari, Haryana, as well as 200 bedded Cardiothoracic Hospital for Military Engineering Services is nearing completion in Northern Region.

MARG EPC has been appreciated for safety practices, a notable achievement as the present accident frequency across all project sites is 0.25, as per Indian Standard: 3786-1983.

Some of the prestigious projects include construction of head quarters for Bureau of Police Research & Development (BPR&D), National Crime Records Bureau (NCRB) and allied works at Mahipalpur, New Delhi from NBCC. Other projects include medium format assignments like construction of a school and miscellaneous city beautification work at Mahe, awarded by Government of Puducherry and Construction of Facilities for Research in Experimental Nuclear Astrophysics (FRENA) laboratories for Dept. of Atomic Energy, at Kolkata. 

Port

Karaikal Port – a deep draft, all weather port is owned and operated by Karaikal Port Private Limited - a subsidiary of MARG Limited. The Port is now in the fifth successful year of operations. The Port has handled 6.61 MMT of cargo in Financial Year 2013 as against 6.01 MMT in Financial Year 2012, which is a straight 9.98% increase. Revenue for the Financial Year 2013 went up by 25.14%, from Rs.221.35 crores to Rs.277 Crores. EBIDTA for the Financial Year Rs.2013 is Rs.133 Crores and Rs.100 crores for Financial Year 2012, recording a rise of 33%. 

During FY13, it handled 1,231 rakes as against 1,087 rakes handled in FY12. A total of 3,090 rakes have been handled since the commencement of railway operations. The company has entered into contracts with many major cement companies like Chettinad Cement, Dalmia Cement, Madras Cements and The India Cements for handling their coal imports. 

Karaikal Port added new cargos to the portfolio like Fire clay, Lime Stone, Iron Ore, Wheat and Maize and efforts will continue to bring in additional cargos to the port. With the iron ore mining ban in Karnataka, JSW has started importing domestic iron ore in the forms of fines and lumps for its Mecheri Plant through Karaikal Port. The cargo is expected to continue through the next year as well. 

With the UPA government’s decision to export the surplus  wheat, it has contributed a total volume of 172,000 MT in FY13 and significant volumes is likely to flow in this year (FY15) as well. Maize is another significant addition to the cargo portfolio in the recent times and is expected to add traffic to the port in FY15 too.
Terminalisation opportunities are being explored for Coal Terminal, Liquid cum General Cargo Terminal, LNG Terminal and Container Terminal. Port has created lot of interest among national and international bulk cargo traders.

SEZ

MARG is developing two special economic zones in the field of Engineering Services and Multi Services spread over 612 acres as part of ‘MARG Swarnabhoomi – The Land of New Thinking’.  This Project is developed by New Chennai Township Private Limited, a wholly owned subsidiary. 
MARG Swarnabhoomi is located on the scenic East Coast Road, midway between Chennai and Puducherry.

Engineering Services SEZ is promoted at MARG Swarnabhoomi with the objective of attracting clients in various segments like Auto Components, Fasteners, Valves, Pumps, Power components, Electronic components, Electronic meters, Renewable Energy, etc. M/s Grundfos Pumps, M/s Virgo Engineers, M/s P.H. Hydraulics and Pneumatics, M/s Eswari Electricals, M/s Kwik patch Ltd and M/s Twin Disc (Far East) Pte Ltd are operating in Engineering services SEZ. M/s Tecpro Energy Systems has registered lease deed and is in advanced stages of setting up their premises in MARG Swarnabhoomi. 

Total exports from the engineering SEZ in FY-12-13 was Rs.52.69 Crores The Multi Services SEZ is promoted in MARG Swarnabhoomi to attract clients in various segments like IT/ITES, Knowledge Hub, BPO, KPO, Animation, Medical Tourism, R&D, Publishing etc. 

M/s Biophenolika Polymers Private Limited, an Indian unit of Italian firm Cimteclab, a research and development company with international manufacturing facilities specialized in the field of high performance polymers, biopolymers, protective coatings, and flame retardants have signed an agreement to set up their premises at the Multi Services SEZ. 
Swarnabhoomi Academy of Music (SAM) is the first professional college of music in India offering a range of programs in contemporary music that includes rock, jazz, classical and world music. The students from 6 countries have been in enrolled in SAM. SAM has signed the Initial twining partner agreement with McNally Smith an international music school based out of Minnesota. SAM is also awaiting the international experience agreement from McNally. The construction of the Science & Technology Park with world class amenities is in full swing and 80% of the project is completed.

On the education front, ‘Swarnabhoomi Academic Institutions’ (SAI) is functioning in MARG Swarnabhoomi. The Knowledge based ecosystem is a unique differentiator for MARG Swarnabhoomi wherein it houses institutions catering to basic education, higher education and vocational skills training institutes. 

MARG Navjyothi Vidyalaya School is operational in Swarnabhoomi with a count of 400 students. The school is affiliated with CBSE and fully equipped with Audio/Science and Math lab and offers courses up to 10th Std. 
MARG Institute of Design and Architecture Studies (MIDAS) operating in Swarnabhoomi offers two-five year undergraduate programs - Bachelor of Architecture and Bachelor of Architecture Interior Design and is affiliated to Anna University. 80 students have enrolled in the course offered by MIDAS in 2012-13. MOU with Central Institute of Technology, Australia and ITEES, Singapore is signed for multidisciplinary vocational and and hospitality programs respectively. 

As part of 300 acres Educity- new institutions and programs will be introduced by 2014-15, which include a Management College, an AICTE approved engineering College and an Arts and Science degree college.

Real Estate Development

MARG ProperTies – residential arm of MARG, since its inception from October 2009 has emerged as one of the leading real estate developers in Chennai. MARG’s residential development is moving forward as lot of infrastructure growth is happening in Tamilnadu and the company has a strong presence in Chennai where there is a huge demand for residential space.

To cater to the housing demand and leverage the economic growth drivers, the company has a strong project pipeline and land bank near the suburban micro-markets. The company’s project portfolio is primarily skewed towards mid and low income segment which forms the bulk of the residential demand.

As the South & West Chennai is getting developed rapidly, MARG ProperTies projects which are located in these areas are benefitted more. Second phase of Nemmeli Desalination Plant and the proposed Country’s longest elevated corridor (45km) in OMR augurs well for South Chennai residents. The upcoming industrial parks and the proposal of doubling the Sriperumbudur – Guduvanchery rail line adds spur to the West Chennai residents. Planned satellite cities, improved connectivity and social infrastructure will further drive growth.

MARG ProperTies has further created an avenue to get closer to its customers through ProperTies Shoppe at Kottivakkam, OMR and Ashok Nagar. It is the first of its kind in the real estate industry to create more touch points and offer the company’s wide range of products to customers through experience and consultative selling. Interactive touch screen kiosk is another unique innovation from MARG ProperTies to touch base with its customers.

In FY2012-13 MARG ProperTies registered residential sales of 0.39 million sq ft (369 units) at a sale value of Rs.132 Crores, total sales (ITD) till March 2013 was 1966 units (2.12 million sq ft) at sales value of Rs.552 Crores.

With the revival of the Indian economy, the real estate sector is booming. Families are shrinking and relocating to cities, creating a demand for urban residential space. As per CMDA estimate, the demand for housing in Chennai is estimated to be at 4.0 lakhs in 2011 and it is expected to reach 6.6 lakhs by 2016. 
To capitalize the residential demand and with a clear understanding of the real estate business backed by scale, people, process and technology coupled with innovation, MARG ProperTies is poised to garner a large market share across a wide product range. 

Real Estate – Retail & Commercial, MARG Junction, a 1.8 million sqft. integrated mixed use commercial project comprising of a mall (6.76 lacs sqft), Serviced Apartments (2 towers - 3.2 lacs sqft with 295 keys) and Club (50,000 sq.ft) is being developed by the company’s subsidiary, Riverside Infrastructure (India) Private Limited (RIPL).

As on 31st March 2013 around 267,705 sq.ft of mall space has been leased and received EOI’s from brands for around 119,803 sqft. Over 57%(both signed & EOI’s) of the Gross Leasable Area (GLA) is now finalized, Apart from the anchors signed in FY10-11, EOI’s were obtained from key mini-anchor brands like Blu-O, Time zone, Reliance Trends & Reliance Digital during the year, Top Vanilla brands like Levis, Titan, Nike, Puma, Lee, Wrangler were signed. The average rental achieved of Signed & EOI agreements as on 31st March 2013 is Rs.76/- psft p.m.The hotel component is now being converted to Serviced Apartments with 295 keys along with 50,000 sq.ft business center and 65,000 sq.ft of banquet facility.

Highlights

• MARG Ltd's FY13, Revenue Stands at Rs.762 Crore, including EPC revenue of Rs.748 Crores, with Current order book at around Rs.3,800 Crores-plus. Its 9M-Income comes at Rs.233.47 Crore. It is expected to end FY14, with a total revenue of Rs.300-310 crores. 
• Karaikal Port Private Limited (KPPL), a subsidiary of the Company has successfully handled 6.61 MMT of  multi-cargo in FY12-13 and reported a top line of Rs.277 Crores and EBITDA Rs.133 Crores. The Port has handled 19MMT of Cargo since its commencement.
• MARG Swarnabhoomi has sold 402 apartments (0.4 million sqft) with sale value of Rs.74 Crores during FY12-13, taking cumulative sale booking to 2042 apartments (2.02 million sqft) with sale value of Rs.341 Crores. In FY14, the company is expected to generate around Rs.85-90 crores from the sale of apartments. 
• MARG ProperTies Limited, the real estate arm of MARG has sold 369 units (0.4 million sq ft) in FY12-13, with sale value of Rs.132 Crores, taking cumulative sale booking to 1966 apartments (2.12 million sqft) with sale value of Rs.552 Crores. In FY14, also, the numbers will be along the expected lines. 
• MARG bagged a double at CIDC Vishwakarma Awards 2013: G R K Reddy, CMD – MARG Group was chosen as ‘Industry Doyen’ & MARG Ltd, as the ‘Best Professionally Managed Company’.
• MARG Karaikal Port was Chosen as the ‘Innovative Port of the Year’ at South East CEO Conclave & Awards, 2012.  
• Two awards at 'Construction Week Awards 2012' at Mumbai:
  (i) Excellence in CSR (Winner)
  (ii) Infrastructure Company of the year (Runner up).
• Marg Ltd has total of 58 Subsidiaries as on 31st March 2013, out of which 5 Non Wholly-Owned Companies and 53 Wholly-Owned Companies, including 25 Step-down Subsidiaries.

• JOINT VENTURE: The Company has following major joint venture companies:
• (i) M/s. Future Parking Private Limited (in which MARG holds 51% of paid-up share capital), is a joint venture with M/s. Apollo Hospitals Enterprise Limited for the development of Multi Level Car Parking (MLCP) at Wallace Garden, Chennai on BOT basis, with a provision of right for development of commercial complex along with the MLCP facility for the entire BOT period.
  (ii) Signa Infrastructure India Limited (in which MARG holds 74% of paid –up share capital), is a joint venture with M/s. Housing and Urban Development Corporation Limited (HUDCO) for Techno-Financial collaboration.
  (iii) M/s. Rajakamangalam Thurai Fishing Harbour Private Limited (in which MARG holds 39% of paid-up share capital), is into joint venture with M/s. Rajakamangalam Thurai Development Trust to develop a fishing Harbour at Rajakamangalam Thurai in Kanyakumari District of Tamil Nadu.

Outlook
The infrastructure industry is expecting a MAJOR IMPROVEMENT, this year (FY15), after suffering a repeated setbacks, during the last three fiscals (FY12, FY13 and FY14). 

The outgoing UPA Government of India had taken measures to stabilize the economy and revive the sentiments which are expected to have positive effects for the economy in medium to long term. The slow growth in the infrastructure sector was primarily driven by a range of sector-specific issues, such as land acquisition, environmental clearances, high interest rate regime and macro-economic factors. Marg Ltd is prepared to capture the growth in the high end, focused to meet the challenges and is committed to deliver the best in adding value to the company. Marg Ltd is known for ‘Innovative Thinking’, enjoys strong brand image due to the past performance which will act as a catalyst in ensuring a sustainable growth in future. In addition, the new affordable housing scheme, steady growth in port activities, industrial urban infrastructure services and increased opportunities for EPC shall drive growth prospects to the Company’s business.

The infrastructure sector in India is still in its nascent stage and a lot of development is required in logistics, ports, railways, road connectivity, communications and power. This opens up newer opportunities for the companies like Marg Ltd. 

Caution & Conclusion

While the assets created by MARG are poised for growth and value creation in the long run, due to the present economic situation and allied reasons, there is a temporary cash-flow mismatch. This has put some pressure on the current liquidity situation in MARG and its ability to service debts. Managing this temporary cash-flow mismatch will go a long way in ensuring that the value creation envisaged by all the projects in the mid and longer term are intact.

As part of the initiatives to achieve this, the Company has discussed with all the bankers and bilaterally renegotiated most of the loans with principal / interest moratorium and extended repayment period, matching the cash flow generation capabilities of the Company. Further, Management has also tightened up more the cost monitoring initiatives by ensuring that optimum levels of resources are deployed, leveraging maximum efficiency. These measures have improved the cash flow position and has also allowed the Management to concentrate on the business development and execution.
Marg Ltd (Rs.19.95) is a huge company and slowly its share price would move towards Rs.89-90 mark or may be even higher. Hence, buy the shares of the company whenever it comes out of the circuits and keep holding. Moreover, if SEBI order on OPEN OFFER is enforced in future by the honourable Supreme Court of India, then it could move towards Rs.300 plus mark in the coming days. It is Mega-Bagger in the making, therefore, it is a must for every portfolio. 

WINNING STROKES: THINK DIFFERENT

As expected, today also Nifty tanked. During the market hours a sell in Nifty_Futures was given corresponding to the spot rate of around 6497 for a target of 6470 (spot) on the downside. The Nifty touched 6473.25 on the downside. The Paid Group Members might have made some money from this otherwise dull market, with some stocks spurting up due to sporadic news. Nifty which opened above 6500 today closed just above the immediate support levels. Now, with the Narendra Modi deciding to contest from Varanasi and Mr.Rajnath Singh trying to replace Mr.Tandon from Lucknow, the infighting in the BJP is getting stronger everyday. This is not all good for the Indian markets, which does not like uncertainty. 

A very bad precedence which was set by the top RSS leadership in connivance with Narendra Modi & Co is slowly snowballing into a some sort of crisis in the BJP, which I think will take the markets further down in the coming days. Also, now according to some media report, with Digvijay Singh emerging as a candidate to take on Modi, the Varanasi seat is looking be to slowly slipping away from the grip of the BJP. That is why Narendra Modi supporters are seeking additional seat for him in case he loses the Varanasi seat. 

In South Assam too, the condition of the BJP is very bad as the INC is likely to win both the seats from there, after a rumoured high valule deal with the AIUDF (of Badriuddin Ajmal). I commented earlier through repeated Facebook posts, that the BJP should tie up with AIUDF, when they could tie up with Muslim League in Nagpur, but then the BJP leadership thought otherwise. 

So, the BJP is not expected to get more than 4-5 seats from Assam. In West Bengal when senior leaders at present are talking about formation of Gorkhaland by breaking Bengal, then people are not expected to vote for the BJP. So, the BJP is not likely to get more than 2-3 seats from Bengal. 

Therefore, due to one wrong move by the RSS and Narendra Modi & Co, the whole equation is slowly changing against the BJP. And I would not be surprised if in the next opinion polls, the BJP's tally comes down to 170-180. 

The point is that the RSS and Narendra Modi & Co, should know how to respect the seniors in the party who sort of laid down the foundation stone of the BJP. Now, if they are humiliated in such a way, then it is  natural for people like us to feel very bad. 

Narendra Modi is a pure salesman and in Gujarat he is known to have anti--Industry image. Allowing such a person to become Prime Minister of India instead of L K Advani is a matter of great debate, especially after the way he dealt the Varanasi issue, shunting, Dr.M M Joshi to Kanpur. 

The Upper Caste Lobby (especially the Brahmins) of Uttar Pradesh might shift their allegiance to Samajbadi Party (SP) this time, due to initiatives taken by Akhilesh Yadav. 

WINNING STROKES: THINK DIFFERENT

Shree Ganesh Jewellery House (I) Ltd hit another buyer Freeze in the opening trade. The scrip was recommended to the Paid Groups some days back. The Book Value of the shares of the company is a whooping Rs.226.03. 

Essar Port Ltd today touched Rs.63, however, it came down after profit booking was suggested in the counter to the Premium Group members, due to certain reasons (to know the reasons you need to join the Premium Services). The scrip was recommended around Rs.56.70, last week. 

Today, a buy call was initiated on Rolta India Ltd at Rs.67-67.30, for a target of Rs.75-77. The company came out with good set of numbers for the September, 2013 quarter, which incidentally is the 1st quarter of the company, for FY14. In September, 2013 quarter, the net profit of the company came out as Rs.70.26 Cr, which gave an EPS of Rs.4.40. However, the company closed the FY13, in June, 2013 quarter, with a loss. Hence any loss in that last quarter of FY13 will not have any impact in the current Financial Year (FY14), which I feel many analysts overlooked. Also, the loss was due to EXCEPTIONAL ITEM, which the company clarified as follows: 

//During the fourth quarter of FY-13, as a matter of prudence & to align depreciation policy with the current replacement cycle taking into consideration various factors such as technology up-gradation and industry best practices, the Company has revised estimated useful life of all assets. Useful life of Computer Systems is now estimated at 2-6 years against 4-10 years earlier, Other Equipment at 10 years against 20 years earlier, Furniture & Fixtures at 10 years against 15 years earlier and Vehicles at 5 years against 10 years earlier. Consequent to above, there is an additional charge for depreciation during the quarter amounting to Rs. 1,152.72 Cr which is shown as an exceptional item. Further consequent to this the profit for the year(after exceptional item)is lower by Rs. 1,152.72 Cr however, this has no impact on operating profits as well as cash flows for the year ended June 30, 2013. Further to disclose the fair value of Freehold & Leasehold Land, the Company has revalued these assets to Rs. 1,057.10 Cr. based on independent valuations and an equivalent amount has been credited to Revaluation Reserve Account. This revaluation has no impact on P&L for the year and the net impact on reserves after considering change in estimate & revaluation of assets is Rs. 95.62 Cr.// Now, going by the current trend we can expect an EPS of Rs.11-12 in FY14, which gives the year end target of Rs.120-130 for the scrip, after giving suitable discounting.  The Board of Directors has recommended a dividend of Rs. 3.0 per share for the FY2012-13. The book value of the shares of the company is Rs.157.74. Rolta  is  a  leading IT  services player  in three  major business segments: Geospatial Services, Engineering Design and eConsulting. It provides integrated solutions for  mapping, mechanical designing and ERPs for defense, government, infrastructure and utilities sector. It has tied‐up with global giants like Thales, Stone & Webster and CA for various technological alliance and offshoring contracts. It has a monopolistic market share in GIS and Infrastructure design business. Its elite clientele includes likes of Indian Defense, Reliance, British Telecom, ONGC, Saudi Telecom, Dubai Municipality, CA and others. The  company  offers  high end services  in  all  its business segment.  It has a technological edge powered by its large rich depository  of  IPRs,  highly  skilled  & experienced  manpower  and domain expertise.  CLICK HERE.
Country Club (India) Ltd which was recommended here in this blog, last week and asked to be accumulated on all declines, today touched Rs.9.50, before closing at Rs.9.41, up more than 7%. The scrip will slowly head towards Rs.17-18 mark. 

A Buy call was initiated in Nifty today, after while, the indices recovered by more than 15 points. The outlook looks positive and the BULLS can carry forward their longs for a target of 6350 on Nifty_Spot. Today, i.e.on 30-Dec-2013, the FIIs have been a net buyer of Rs.116.06 Cr. To get more such calls join the Premium Service or my recommended Brokerage House/ s and stay ahead of others.

Kingfisher Airlines Ltd might start flying from March

For Sanjay Aggarwal, Chief Executive of the grounded Kingfisher Airlines, the new year did not exactly begin on a happy note. His January 18 meeting with a State Bank of India-led (SBI) team of bankers failed to make much headway on plans to revive the beleaguered carrier. Three days later, some former Kingfisher pilots and employees threatened to move court to seek the closure of the airline if their outstanding salaries were not paid soon.

But senior bank officials now see hope on the horizon. They say Chairman Vijay Mallya is in talks with investors, including two airlines, from West Asia in a bid to sell one of them a stake in Kingfisher so that the troubled airline can fly again by the end of March. The bankers, who have been engaged with the Kingfisher management, say Mallya will use part of the money he got from selling his stake in United Spirits to UK drinks giant Diageo Plc. last November along with outside investment to revive the airline. "He is definitely talking to investors but away from the media glare. He is desperate to see his airline back in business," says a banker who does not want to be identified.

Kingfisher, which has not flown since October, owes close to Rs 7,000 crore to a consortium of banks led by SBI. It needs no-objection certificates from all stakeholders, including banks, oil companies and airports, to restart operations. The airline also owes money to GMR Infrastructure, GVK Power & Infrastructure and the Airports Authority of India for using airport services. A core group of banks has told the airline they will consider issuing a no-objection certificate and any fresh line of support only if it pays at least some of its dues, or about Rs 800 crore, to the banks. "We want Rs 800 crore. This figure is not cast in stone. We are flexible about it, but we want something for us on the table," says the top banker.

Kingfisher's lenders have been patient so far. The airline lost its operating licence at the end of last year and so far has not come up with any convincing turnaround plan to get back into the air. Still, a senior banker says they are delaying extreme actions, such as recovery proceedings, because the airline has few tangible assets. The airline has not reported a profit since its start in May 2005 and has accumulated losses of about Rs 10,000 crore. Its shares hit a lifetime low of Rs 7.05 on the National Stock Exchange on August 13, although they have almost doubled since then on the back of positive signs from the government and the UB Group.

The airline is yet to submit a concrete revival plan to the Civil Aviation Ministry. But the government says it is willing to support a plan if Kingfisher were to settle its employees' dues. "We will move in accordance with the rules. The airline owes salary dues to employees, and huge dues to the Airports Authority of India. It will have to act with accountability and settle the dues," Minister of State for Civil Aviation K.C. Venugopal told Business Today. 
In January, Mallya wrote a letter to staff outlining a plan to revive the airline . He promised to invest Rs 650 crore from the UB Group so that some Kingfisher planes could begin flying again in the summer. But market analysts are sceptical.
They do not think UB (Holdings) Limited, until recently the holding company of the airline, will be able to do much to bail out the carrier. The firm held a 24.5 per cent stake in the airline as on September 30, 2012. "The UB (Holdings) balance sheet is extremely stretched, so how the fund infusion into the airline will happen is unclear," says Nikhil Vora, Managing Director at IDFC Securities. "It is most likely to come from the unlisted entities in the UB Group."Estimates of how much Kingfisher needs to pump in immediately to fly again vary. Civil Aviation Minister Ajit Singh says the struggling carrier needs about Rs 1,000 crore to resume operations. Sharan Lillaney, analyst at Angel Broking Ltd, says the airline will require about Rs 2,000 crore to start with six to 10 aircraft. "It was grounded because of financial problems, not any safety issues… It has proved itself to be a good airline."

Passengers near a Kingfisher aircraft at Delhi airport Photo: Shekhar Ghosh

But Kingfisher's troubles won't end with a fresh infusion of funds. It has already lost several pilots, engineers and cabin crew to other players in the aviation and hospitality industries, both in India and abroad.

Mark D. Martin, CEO of Dubai-based aviation consulting firm Martin Consulting, says Emirates Airlines, Fly Dubai, Etihad Airways and Qatar Airways will need about 7,000 pilots over the next two to three years. "The most difficult task for the airline management would be to put in place the exceptional operations and maintenance teams it had earlier," says Martin.

Courtesy: Business Today

PM blames lack of political consensus for slow growth

 Vows to tackle graft, seeks help of all political parties in passing Lokpal, Lokayukta bills Press Trust of India / New Delhi Aug 15, 2012,

Battling the charge of policy paralysis in the government, Prime Minister Manmohan Singh today blamed lack of political consensus for slow growth and vowed to do everything to boost economy through investments while linking development processes to national security.
Addressing the nation from the ramparts of historic Red Fort on the occasion of 66th Independence Day, he promised to work for reducing corruption in public life and sought the help of all political parties in passing the Lokpal and Lokayuktas Bill in Parliament in this regard.
During his 35-minute speech in Hindi, Singh made a host of announcements in social sector like expanding the national health scheme and electrification, undertaking skill development and assessment of teachers.
The 79-year-old economist Prime Minister also sought to encourage foreign investors, who have been apprehensive after certain recent taxation decisions, that there would be "no barriers" to investment in India.
He referred to violence in Assam and promised that the causes would be looked into and steps taken to ensure that such incidents are not repeated anywhere else.
 He highlighted that internal security in the country, including Jammu and Kashmir, had improved but said the recent blasts in Pune were a reminder that more needed to be done.
 In his ninth consecutive Independence Day address, only the third Prime Minister to do so after Jawaharlal Nehru and Indira Gandhi, Singh said there was a need to "introspect what remains to be done" so that "we learn from our failures and build on our successes".
 "As far as creating an environment within the country for rapid economic growth is concerned, I believe that we are not being able to achieve this because of a lack of political consensus on many issues," Singh said.
 "Time has now come to view the issues which affect our development processes as matters of national security," he said.
 The statement assumes significance as the government has been facing the charge of policy paralysis with key economic reforms decisions, like FDI in retail, being stuck due to opposition by allies.
In the backdrop of criticism from some foreign investors that the Indian policy environment was not conducive for business, Singh said "we have to create confidence at the international level that there are no barriers to investment in India".
 On employment, Singh said his government will work hard for creation of new job opportunities for youth.
 "Creation of new employment opportunities is possible only when we encourage industry and trade. For this we need to speedily improve our infrastructure," he said adding government will spare no effort to encourage investment.
On infrastructure sector, Singh said steps will be taken to increase investment with the help of the private sector.The 12th Five Year Plan, which will be approved by the National Development Council this year, envisages $one trillion investment in the infrastructure sector.
 "The Plan would determine the future course of action on all important matters relating to the country's development. It would lay down measures for increasing our present rate of economic growth from 6.5 to 9 per cent in the  last year of the Plan," the Prime Minister added.
 The Plan would focus special attention on areas important from the point of view of reaching the fruits of development to all and specially to the weaker sections of our society, he said.
 "I have full confidence that the Centre and the States will act together to implement the 12th Plan in an effective manner," Singh added.
 He also announced that to provide housing to urban poor, "we will soon launch the Rajiv Housing Loan Scheme". Under the scheme, people belonging to economically weaker sections would be given relief on interest for housing loans of less than Rs 5 lakh.
 On power supply in rural areas, the Prime Minister said the target is to provide electricity to every rural household in the next five years.
The Prime Minister further said the government intends to create a system in which money from Government schemes - pension for old people, scholarship for students and wages for labourers - can be credited directly into beneficiaries' bank accounts.
 "This would reduce inconvenience to the beneficiaries, make it easy for them to receive payment and increase transparency. For this work, we will take help from the Aadhar scheme under which about 20 crore people have been registered so far," Singh said.
 He also said that it will be "our endeavour to ensure that all households benefit from bank accounts in the next 2 years". Presently only half of the rural households get the benefit of bank accounts.
 About the state of economy, the Prime Minister said that the global factors are affecting India as well. "These days global economy is passing through a difficult phase. The pace of economic growth has come down in all countries of the world. Seen together, the European countries are estimated to grow 0 per cent this year. Our country has also been affected by these external conditions," he said.
The Prime Minister said India was being affected by the "difficult phase" encountered by the global economy.
 "Also there have been domestic developments which are hindering our economic growth," he said, pointing out that last year, the GDP grew by 6.5 per cent.
 Hoping to "do a little better" this year, Singh said, "I believe that this period of difficulties will not last long. Even as we face these problems, we should be encouraged by the fact that we have achieved extraordinary successes in many areas in the last 8 years. We now need to replicate these successes in newer areas."
 He said the government will leave no stone unturned to encourage investment in the country so that entrepreneurs can make a substantial contribution to the economy.
 To attract foreign capital, we will have to create confidence at the international level that there are no barriers to investment in India," he said.
 Foreign investors have been apprehensive after some recent decisions on tax matters like retrospective amendment and General Anti-Avoidance Rules (GAAR).
 Talking about corruption over which his government has been facing an onslaught from civil society and opposition, Singh said, "We will continue our efforts to bring more transparency and accountability in the work of public servants and to reduce corruption."
 While doing so, steps will be taken to see that the morale of public functionaries taking decisions in public interest is not affected because of baseless allegations and unnecessary litigation, he said.
 In this context, Singh referred to the Lokpal and Lokayuktas Bill which was passed by the Lok Sabha last year and is now pending with the Rajya Sabha.

"We hope that all political parties will help us in passing this Bill in the Rajya Sabha," he said.

"Our commitment to make the work of the government and administration transparent and accountable stands," he said.

Courtesy: Business Standard 
Note:I have placed the result analysis of Kohinoor Broadcasting Corporation Ltd, Allied Digital Services Ltd, etc, on my Premium Service Blog: http://sumanspeakspremiumservices.blogspot.com. Also,  I have recommended a scrip from Infrastructure Space, with its Q1FY13 result analysis in the same blog, for Paid Members and for those who are trading through my brokerage house.

Selling government stake in state-owned banks can kill two birds with one stone

Large-scale corporate debt restructuring following a sharp rise in the number of bad loans on the books of the banking system serves to focus attention on the banks' need to raise capital.
It is estimated that the banking sector may need an additional capital of Rs 1.60-1.75 lakh crore by March 2018, to conform to Basel-III norms on capital adequacy, even without factoring in providing for bad loans.
Yet another important contribution to the pressure on banks to raise capital could come from the ongoing efforts to expand the reach of formal banking. Bank lending is about 50% of GDP in India, while it is upwards of 100% of GDP for mature market economies.
It is not the case that the Indian economy manages to make do with little credit. It is just that enterprises, particularly those in the small and medium space, source their credit from non-banking sources.
If financial inclusion drives succeed in providing larger segments of the economy access to the banking system, bank lending would go up sharply, raising the demand for capital in proportion. Promoters of private banks may be able to mobilise the required additional capital; but can the government, the majority owner of public sector banks?
More importantly, is that the best use of taxpayer money? Or should government give up its fetish about majority-ownership and allow public sector banks to raise capital from the investing public, diluting its own stake to less than 51%?
The government can sell its stake to below the majority threshold as well. If it does, it can kill two birds with one stone: it can raise much-needed funds and also not have to pump in more equity. There is a widespread notion that state ownership of the bulk of banking insulated India from the worst effects of the global financial crisis.
There is also a lot of mythmaking about the wisdom and efficacy of India's financial regulation. Without belittling what is sensible in India's financial regulation, it is fair to say that the stunted nature of the Indian financial system, which underserves its $1.8-trillion economy, offered far greater insulation than public ownership of savvy regulation.

Courtesy: Economic Times