PM Modi speeds up capital spending in April to boost economic growth

Prime Minister Modi ramped up spending on roads, railways and ruralinfrastructure in April to boost economic growth, after $19 billion in cuts brought public investment shuddering to a halt at the end of the last fiscal year.

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Modi, who completed one year in power this week, has vowed to raise public spending on infrastructure by $11 billion in the current fiscal year. At the same time, he is targeting a fiscal deficit of 3.9 % of gross domestic product, a shade lower than 4 % achieved in the year that ended in March.The government increased capital spending to 351.6 billion rupees (USD) in April, the first month of fiscal 2015/16. That is up more than 50 % from a year ago, data released by the government on Friday showed.

In the first month of the current fiscal year, the government allocated 32.89 billion rupees for railways, 58.3 billion rupees for roads and 175 billion rupees for rural projects.

Data released earlier on Friday showed the Indian economy grew 7.5 % in the quarter ended in March, faster than China. But a contraction in agriculture and a downward revision for the previous quarter indicated weaknesses in Asia's third- largest economy.

With banks weighed down by bad loans, company profits squeezed, rural demand weak and exports depressed, the government recognises it will have to take the lead to meet its jobs and growth goals.

"Front-loading of spending on infrastructure is a welcome step, though it remains to be seen what happens in the whole year," said NR Bhanumurthy, an economist at the National Institute of Public Finance and Policy (NIPFP), a Delhi-based think tank.

Fiscal deficit figures for the first month of the new fiscal year indicated that Modi's government plans to support domestic demand. Finance Minister Arun Jaitley plans to boost public investment in infrastructure and devolve more spending powers from the centre to India's 29 states.

He has abandoned costly diesel subsidies, helped by lower global crude prices, and promised to reduce corporate tax rates to 25 % in the next four years, besides cutting rates for individual tax payers.

Officials at the finance ministry, however, warned capital spending might be cut in later months if revenue collection does not pick up.

It is also not clear whether the government will reach its target of nearly 700 billion rupees from sales of stakes in state-run companies this fiscal year, a senior finance ministry official said before the release of the data.

SOurce - DNA 

India overtakes China in GDP growth rate; economists say figures may not reflect ground situation

India’s gross domestic product (GDP) grew at 7.5% during the January-March period, faster than China’s 7% in the same period, mainly on account of improvement in services and manufacturing sectors.

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For the full 2014-15 the growth was 7.3%, missing the the Central Statistical Organization (CSO) estimate of 7.4%. The  Chinese GDP expanded 7.5 % in 2014-15.  India celebrated faster growth than China in the December quarter, but on Friday the CSO sharply revised growth down to 6.6% from 7.5%, further distorting the picture.
The growth numbers are under the new GDP series, which is wholly based on profits of companies both private and public and wage increases. Some economists and even the Reserve Bank of India fear that it may not reflect the actual growth and that the higher growth rates are driven more by statistical factors. 

Investment, credit growth, job market — major indicators of a broader growth in the economy — are all still sluggish.

Pranjul Bhandari, chief India economist, HSBC, said in a note, “Is growth picking up? The common answer is: depends. Depends on who you ask, what indicators you look at and, more recently, how much you buy into the new GDP series.” “Here is a quick stab at the question. Relying on the more trusted indicators, 60% of GDP is still in the woods. Agriculture, construction, banking and public administration are not showing signs of improvement. On the other hand, the remaining 40% of GDP, comprising of manufacturing, utilities and trade/transportation, has inched up from depressed levels, though upticks are gradual at best,” Bhandari added.

The GDP growth for the entire FY15 now provisionally stands at 7.3%. The GDP growth rate for first quarter of FY15 was revised upwards to 6.7% versus an earlier estimate of 6.5%. The Q3 GDP growth was revised down to 6.6% versus 7.5% earlier. The Q2 GDP growth was revised to 8.4% versus earlier estimate of 8.2%.

Standard Chartered Bank said in a note, “Strong GDP prints in FY14 and FY15 are driven more by statistical factors after India released a new GDP series...rather than a pick-up on the ground. We revise up our FY16 GDP growth forecast to 7.7% year on year under the new series from 6.3% under the old series. Recent comments by the RBI governor Rajan indicate that the central bank will be cautious in drawing policy inferences from this data.”

Saugata Bhattacharya, economist at Axis Bank told dna, “The new series based on the profits of companies is fine and in FY16 the growth in the Indian economy may take over the Chinese economy.” “The real GDP or GDP at constant (2011-12) prices in the year 2014-15 is now estimated at Rs 106.44 lakh crore (as against Rs 106.57 lakh crore estimated earlier on 9th February, 2015), showing a growth rate of 7.3% (as against 7.4% estimated earlier) over the New Series/First Revised Estimates of GDP for the year 2013-14 of Rs 99.21 lakh crore, released on January 30, 2015,” an official statement said. 

Source - DNA Money 

Know the hidden costs when buying a property

Buying a piece of land or a house for the family is one of the most cherished dreams for most of the people. Investment in property is often seen as a significant investment for a lifetime. Therefore, the home buyers, generally, are willing to go that extra mile to acquire a decent piece of real estate.

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Since, real estate the biggest investment that the average person takes up, in most of the cases, people generally reach the upper scale of the limit of their financial budget while selecting a property to buy.

Hiddend costs, therefore, are one such expenditures that take many home buyers by surprise. These hideen costs often escalate the total cost and makes it very difficult for the person to handle the expenses.

The initial costs as described by the real estate agent does not include a host of add-ons which one has to pay for ultimately raising the budget by almost 25 per cent. It is smarter to be aware of and be prepared for this additional expenditure that will come your way when buying real estat.

Source - Times Of india

Maintenance deposits 

Reliance Capital Q4 net profit rises 53% to Rs 407 crore

MUMBAI: Financial services conglomerate Reliance Capital on Friday reported 53 per cent rise in its fourth quarter net profit to Rs 407 crore, driven by robust gains in its mutual fund and general insurance businesses. 

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The total income in the quarter ended March 31, 2015 rose by 37 per cent to Rs 2,527 crore. 

Reliance Capital, the financial services arm of Anil Ambani-led Reliance Group, said that its net profit for the full fiscal ended March 31 rose by 34 per cent to Rs 1,001 crore. The total income for the fiscal rose by 17 per cent to Rs 8,861 crore. 

The company's mutual fund arm, Reliance Capital Asset Management Company (RCAM) recorded a profit before tax of Rs 455 crore for the full year, up by 29 per cent, while Reliance General Insurance's profit rose 27 per cent to Rs 81 crore. 

Reliance Cap has presence across mutual fund, insurance, broking and a host of other businesses in the financial services sector, while it is keenly awaiting to foray into banking as and when the regulatory framework permits. 

Shares of the company were up 1.48 per cent at Rs 393.50 on BSE. 

As on March 31, 2015, Reliance Capital's net worth stood at Rs 13,547 crore ($2.2 billion) — an increase of 9 per cent from the year ago level. The total assets rose by 4 per cent to Rs 47,440 crore ($7.6 billion). 

The company also said that Sumitomo Mitsui Trust Bank invested Rs 371 crore and acquired 2.8 per cent stake through preferential allotment in March 2015. Besides Nippon Life acquired 9 per cent stake in RCAM for Rs 657 crore and raised its stake to 35 per cent in February 2015. 

The company said that Reliance Capital Asset Management managed Rs 2,44,649 crore ($39.3 billion) worth assets as on March 31 across mutual funds, pension funds, managed accounts and offshore funds. 

Reliance Mutual Fund is amongst the top mutual funds in India, in terms of AUM, with market share of 11.5 per cent. 

Its average assets under management (AAUM), for the quarter ended March 31, 2015, were Rs 1,37,124 crore ($22 billion) — an increase of 32 per cent. 

It has total 66 schemes comprising 26 equity oriented schemes, 32 debt oriented schemes, 7 exchange traded funds and 1 Fund of funds. 

RCAM's income from its operations was Rs 955 crore for the full fiscal, registering a growth of 23 per ent, while profit before tax rose 29 per cent to Rs 455 crore. 

Reliance Commercial Finance disbursed loans worth over Rs 10,400 crore for the full year, up 7 per cent, while its profit before tax rose 3 per cent to Rs 441 crore. 

The life insurance unit Reliance Life Insurance (RLI) recorded New Business Premium of Rs 2,070 crore for the full fiscal, up 7 per cent and revenue premium rose 9 per cent to Rs 2,551 crore. It posted a profit of Rs 135 crore. 

In equity broking, the number of accounts rose 4 per cent to 7,51,000 an average daily equities turnover of over Rs 1,700 crore, up 39 per cent. 

The commodity broking accounts rose by 14 per cent to nearly 54,600, with average daily commodities turnover at Rs 288 crore. 

The broking business had revenues of Rs 187 crore (up 35 per cent), while profit before tax was Rs 5 crore for the year ended March 31, 2015. 

In wealth management, the AUMs as on March 31, 2015, increased to over Rs 1,360 crore, up 69 per cent in a year. The business generated revenues of Rs 98 crore.

Source - Times OF India

Sensex climbs 321 points on rate cut hopes, value-buying

MUMBAI: The benchmark BSE sensex on Friday staged a strong comeback to close 321.73 points higher on across-the-board buying in blue-chip stocks by funds and retail investors on rate cut hopes and value-buying. 

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Further, beginning of June series in the derivatives segment, supported the upside in stock prices. 

The 30-stock index opened on a positive note at 27,553.03 but quickly slipped into the red on profit-booking. Later, it bounced back at a rapid pace to hit the day's high of 27,888.32 on beginning of June series in the derivatives segment. 

The gauge settled 321.73 points or 1.17 per cent higher at 27,828.44, its strongest rally since May 18. 

On similar lines, NSE Nifty recaptured the 8,400-mark by rising 114.65 points or 1.38 per cent to 8,433.65 after hovering between 8,443.90 and 8,305.70, intra-day. 

Revival of value-buying by investors as recent fall was excessive, too influenced sentiments, they said. 

Bharti Airtel at 5.98 per cent was the best sensex gainer, followed by M&M 4.89 per cent, GAIL 2.30 per cent, Maruti Suzuki 2.26 per cent and Coal India 2.14. 

Sentiments bolstered on renewed hopes that the Reserve Bank of India may cut rates in its policy review and beginning of new series in the derivatives segment, triggering buying by participants, brokers said. 

Of 30-sensex shares, 26 ended higher, while 4 ended lower. 

Among BSE sectoral indices, auto index gained the most by rising 2.08 per cent, followed by infra (1.84 per cent), healthcare (1.63 per cent), bankex (1.45 per cent), oil & gas (1.32 per cent) and capital goods (1.23 per cent). 

Buying activity also re-emerged in the broader markets with the BSE mid-cap index rising 1.48 per cent and small cap gaining 1.22 per cent. 

Meanwhile, foreign portfolio investors sold shares worth Rs 792.54 crore, while Doemstic Institutional Investors bought shares worth Rs 683.29 crore yesterday, as per provisional data.

Source - Times Of India

Government nod to houses for slum dwellers in Bhubaneswar

BHUBANESWAR: The state government has approved a proposal of Bhubaneswar Development Authority (BDA) to construct 240 houses for evicted slum dwellers at Chandrasekharpur here.

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BDA vice-chairman (VC) Krishan Kumar said families removed from Tarini Basti and Arabinda Basti will be rehabilitated at the proposed site. "Tender for the project will be floated soon," he said.

 

"Since BDA will monetize the land vacated by slum dwellers, we consider rehabilitation of the affected families as a social responsibility," he said.

 

According to the proposal, a five-storey structure with houses for economically weaker section (EWS) will come up over 2.14 acre at an estimated cost of Rs 15.36 crore. The BDA would spend Rs 10.61 crore on civil works, Rs 2.72 crore on amenities and the rest on associated costs, financial adviser (housing and urban development) A K Ray wrote to the BDA vice-chairman.

 

The project cost would be met from Basic Services to Urban Poor (BSUP) and Capital Region Development Fund. Beneficiaries are required to pay about 20% of the project cost. BDA would help them secure loans from banks, Kumar added.

 

In a push to affordable housing, the government has prepared a draft 'housing policy for all-2015'. It suggests a maintenance fund with developers, including Odisha State Housing Board, Bhubaneswar Development Authority and Cuttack Development Authority, contributing 2% of the project cost in case of social housing. The fund would be managed by the respective housing societies for future repair work and maintenance, official sources said.

Source : The Economic Times (ETRealty.com)

PM Narendra Modi's 'Housing for all by 2022' scheme to be launched by mid June

NEW DELHI: The government is getting ready to launch PM Narendra Modi's most ambitious scheme: Housing for all by 2022. Modi is likely to launch the scheme as an umbrella mission, dovetailing all affordable housing schemes and slum redevelopment projects.

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The urban development and rural development ministries have finalised their respective components for providing 6 lakh houses - 2 lakh in urban areas and 4 lakh in rural areas. According to sources, the Prime Minister has to give time for the launch of the scheme, which is likely around mid-June. A source told ET, "The ministers have been busy with the 1st year anniversary programmes.

 

After this we are only waiting for PM to give time for the final launch. It's a very big initiative so it would have a proper launch." The endeavour, which was earlier planned as Sardar Patel Mission, would now be named to commemorate 75 years of Independence. The new mission would include all the already existing schemes of Ministry of Housing and Urban Poverty Alleviation and rural development ministry. A senior official said, "Schemes like Rajiv Awas Yojana, Rajiv Rinn Yojana would all be included under this mission."

 

One of the main components of the mission would be slum redevelopment. Under this, land will be pooled and then given to a private real estate developer. Slum dwellers would be given flats free of cost in multi-storey towers by the developer. The government would allow the developer to generate revenue by developing a portion of land of commercial purposes.

 

A senior urban development ministry official said, "In case some projects are unviable, viability gap funding would be allowed." The government is also planning to increase the interest subsidy of 5% on loans granted to economically weaker sections (EWS) and lower income group (LIG) categories to construct their houses.

 

Sources said that the subsidy would be increased and the amount of loan is likely to be increased from Rs 5 lakh to Rs 10 lakh under the new mission. Another major component is the upfront assistance given to individual beneficiaries for constructing or upgrading their tenements.

 

his amount is also likely to be doubled under the new scheme. "The biggest challenge before the Modi government right now is that the funds would be provided by the Centre and the states would reap political benefits out of such a welfareoriented scheme," said a source.

Source : The Economic Times (ETRealty.com)

Software flaw in BMC hits building plans

MUMBAI: As part of its 'ease of doing business' policy, the BMC early this month made it mandatory for the construction industry to submit building proposals online.

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But glitches due to an outdated software supplied to the BMC by a private contractor have left builders and architects fuming. They complain the system does not work because the software is not user-friendly and not been updated to support changes made in the development control rules over the past two years. Even plans, which are prima facie wrong, are shown as approvable by the software, said architects.

 

Municipal commissioner Ajoy Mehta admitted the online system supports barely 15% of a building proposal. "More work needs to be done. Our aim now is to bring a certain level of predictability in building permissions," he told TOI on Wednesday. Mehta said proposals are, however, being approved manually.

 

The city's leading architects' association, PEATA, will meet Mehta to rectify the system. They alleged that unscrupulous ward level staff is using this as an excuse to delay permissions and knock out money from builders.

 

On May 16, the chief engineer of the civic development plan department issued an ultimatum to zonal offices to ensure all proposals are accepted only through a single window application online system. The directive said that from May 18, only those proposals processed through this system should be accepted. But architects said the automation envisaged by the BMC is not happening; on the contrary, proposals are getting delayed because the software is cumbersome. "None of the sub-engineers of the building proposal department are comfortable with it," they said.

 

Last April, TOI reported about the BMC's attempt to streamline its notorious building proposal department from mid-May by curtailing permissions a developer needs to obtain building approvals and commencement certificate.

 

A 21-page circular issued by the then civic chief Sitaram Kunte directed the development plan department to begin "auto scrutiny" and online single window application of building proposals.

 

"The main focus is to simplify the construction permit process and reduce the time by eliminating avoidable procedures. It envisages a reduction in procedures involved in interdepartmental clearances and stages by about 50% and reduction of time byabout 60%. It also envisages an IT-enabled system for a single window clearance as a long-term solution," said the circular.

 

The World Bank's 2014 report on 'Dealing with Construction Permits' ranks India 184th out of 189 countries. The report states it takes 27 steps and 162 days to obtain a construction permit in Greater Mumbai. It adds that the cost of construction permit in the city is 46.05% of the total cost of construction.

Source : The Economic Times (ETRealty.com)

Raman tells builders to give buyers flats in Greater Noida

NOIDA: Scores of homebuyers in Greater Noida (west) conveyed their grievances to Rama Raman, the chairperson and CEO of Greater Noida Authority, on Wednesday.

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Following the meeting, Raman asked the developers in question to resolve all buyers' grievances at the earliest and start giving them possession of the flats.

 

Nearly 1.5 lakh buyers in Greater Noida (west) have been waiting for their flats for more than four years. Their dreams were put on hold after the row over land acquisition broke out in 2011. Nearly two weeks ago, the SC upheld land acquisition by the Greater Noida and Noida Authorities between 2006 and 2009, bringing relief to thousands of homebuyers who had invested in the area.

 

"We have asked the developers, who are members of CREDAI (Confederation of Real Estate Developers Association of India), to speed up their projects and resolve issues related to late delivery, unjustified penalties, changes in layout plans, high interest on late payments, stalled possession, withdrawal of buyer from project, among others," Raman said.

 

Raman assured the homebuyers of his support and "We will do our best to help resolve the issues and in making sure all developers follow ethical practices," he said.

 

"We met the buyers and have heard their issues. We hope to mitigate some of their complaints," Manoj Gaur, president of CREDAI NCR, said.

Source : The Economic Times (ETRealty.com)

 

Ashiana Housing to invest Rs 300 crore in Sohna project

NEW DELHI: Real estate firm Ashiana Housing will inject Rs 300 crore into a 13 acre residential project in Sohna, Gurgaon that it is building in a joint venture with the land owner. 

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"We will invest around Rs 250-300 crore in the Sohna project, which will be funded through internal accruals," said Shantanu Haldule, vice president of Ashiana Housing. 

 

The project christened 'Ashiana Anmol', with a total saleable area of 11.60 lakh sq ft, will be developed in two phases, offering a total of 780 units of two and three BHKs. The company has launched the first phase of the project offering 300 homes in the sizes ranging between 1270 sq ft and 1700 sq ft. 

 

"We are awaiting the environmental clearance, which might take around 2-4 months, after which we aim to deliver the first 300 homes in around 26-39 months," Haldule added. 

 

Ashiana Housing on Wednesday reported a consolidated net profit of Rs 29.58 crore for the quarter ended March 31, against Rs 2.93 crore in the year-ago period, on higher sales. 

 

For the entire financial year 2014-15, the company's net profit jumped over two fold at Rs 46.49 crore from Rs 21.86 crore in the previous year.

Source : The Economic Times (ETRealty.com)

Securing Smart Cities aims to make smart cities safer

New Delhi: Soon a new not-for-profit global initiative, Securing Smart Cities, is going to be launched with the aim to solve the cyber security challenges that smart cities face through collaboration and information sharing.

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Backed by leading IT security researchers, companies and organisations including IOActive, Kaspersky Lab, Bastille and the Cloud Security Alliance, the group plans to serve as a communications node for companies, governments, media outlets, not-for-profit initiatives and individuals across the world involved in the creation, improvement, and promotion of smart and safe technologies for modern cities.

The concept of a smart city is very topical and many organisations are working on intelligent solutions to make urban areas energy efficient, comfortable, environmentally friendly and physically safe.

Unfortunately, there are concerns about the cyber security of these smart cities. The more IT organisations involved in creating a smart city, the greater is the potential risk.

The initiative seeks to prevent this outcome using a range of activities, such as:

Educating smart city planners and providers on the importance and cost benefits of security best practices

Collaborating with partners to share ideas and methodologies Endorsing the significance and benefits of introducing security early into the development lifecycle of a project or plan

Fostering partnerships between cities, providers, and the security community

Creating standards, guidelines, and resources to help improve cyber security across all areas related to smart cities

Participants in the initiative believe that it will help efficiently and responsibly share knowledge about the cyber security of modern cities. It will also connect vendors of infrastructure automation equipment with security researchers.

Source : The Financial Express

FDI inflows to India jump 62% to $35 billion in FY 2015: Nomura

Foreign direct investment is likely to have hit high of $34.9 billion in financial year 2015, a massive 61.6% jump from $21.6 billion in the previous fiscal, according to a report by Japanese brokerage Nomura.

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According to the report, the FY 2015 inflows are 1.7% of GDP, up from 1.1% in the previous year.

The report by its India economists attributed the higher FDI to the growing investor confidence in the country and lower outbound FDI following weak balance-sheet of domestic companies coupled with a weak global growth outlook.

According to the latest government data, as of April-February period of 2014-15, FDI grew by 39% year-on-year to $28.81 billion.

The Nomura report is hopeful that the current financial year will be better in terms of inflows on the back of the recent liberalisation in the FDI regime, wherein the government has put most of the sectors on automatic route and out of the purview of the Reserve Bank.

"We expect FDI inflows to pick up further in FY 2016, driven by an improving domestic growth outlook, recent liberalisation of FDI limits and government efforts to improve the ease of doing business," the report says.

Data for April-February FY 2015 shows that the infrastructure and services sectors led the pick-up. In infrastructure, telecom, oil & gas and mining sectors saw higher FDI inflows, while trading (wholesale, cash & carry) and IT services drove services inflows, the report noted.

FDI inflows into manufacturing remained lacklustre, although the auto sector was an exception, it added.

The largest single FDI inflow in recent years was the world's largest spirit maker Diageo buying out United Spirits last fical for over $3 billion for a 55% stake.

Meanwhile, in a move aimed at further improving the ease of doing business, the government has said companies need not approach the Foreign Investment Promotion Board (FIPB), which is the nodal agency for attracting foreign investment, for M&As in sectors where FDI is allowed under the automatic route.

The country ranks 142 out of the 189 countries on ease of doing business list of the World Bank.

"FIPB approval would not be required in case of mergers and acquisitions taking place in sectors under automatic route," a new FDI circular of the Department of Industrial Policy and Promotion (DIPP) said.

"This is a step towards ease of doing business. Through this, the DIPP has clarified the existing position," head of tax and FDI expert with corporate law firm Shardul Amarchand & Mangaldas Krishan Malhotra said.

Investments above Rs 3,000 crore have to be approved by the FIPB, which is an inter-ministerial body.

The circular also said the government permission will not be required for issuing ESOPS (employees stock option scheme) in sectors under the automatic route.

The government's 'Make in India' campaign and higher FDI in the defence and other sectors are likely to see a further fillip in the net inflows.

Source - DNA Money

Reliance Infra net falls 26% to Rs 459.11 crore

Reliance Infrastructure today reported a 26.11% drop in consolidated net profit for the quarter ended March 31, 2015 at Rs 459.11 crore, mainly due to the loss the company has incurred from its cement and Mumbai metro businesses.

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The company had reported a net profit of Rs 621.42 crore in the January-March quarter of the last fiscal.

Its total operating income during the quarter declined marginally to Rs 4,618.21 crore as against Rs 4,707.69 crore in the corresponding period last year.

"Our net profit for the quarter would have been 19 per cent higher if we exclude the loss of Rs 70 crore incurred by Mumbai Metro and Rs 55 crore in cement business during the period as well as one time gain in Mumbai generation of Rs 130 crore," its Chief Executive M S Mehta told reporters here.Its total expenditure during the quarter was almost flat at Rs 4,140.63 crore as against Rs 4,159.66 crore in the corresponding period a year-ago.

For the year, the company recorded a consolidated net profit of Rs 1,800.18 crore as against Rs 1,913.67 crore in FY14.

Its total income for FY 2015 dropped to Rs 17,198.46 crore as against Rs 19,033.68 crore in the previous year.

Total expenses during the year stood at Rs 15,120.65 crore in comparison to Rs 16,736.88 crore in the previous year.

During the year, the company incurred a loss of Rs 191 crore and Rs 115 crore on its Mumbai metro and cement businesses, respectively.

"This year has been quite good...Operations have been stable in all the businesses. Our view is that after the sluggish years in the roads sector, there has been an improvement in traffic which is a reflection of GDP growth and increase in economic activities," he said.

Segment-wise, power business contributed Rs 3,299.25 crore in revenues, followed by Rs 844.76 crore from EPC and contracts business during the quarter.

Infrastructure business garnered a revenue of Rs 201.66 crore while Rs 296.82 crore came from the cement business. 

For the year, the EPC business revenue stood at Rs 2,752 crore while road and Mumbai metro earned Rs 606 crore and Rs 136 crore respectively during the year. Cement business revenue stood at Rs 519 crore during the year.

"There has been a good progress in the power business as we are adding new customers in our Delhi and Mumbai distribution networks. The transmission segment is adding revenues to the power business," Mehta said.

The company, which was earlier conservative about its EPC business, is not keenly looking at opportunities in the segment.

"Though we continue to remain conservative in the EPC segment with a focus on small internal projects, we are now looking at opportunities in the roads sector as BOT road projects are not coming up for bidding and there are a lot of uncertainties. EPC in roads is progressing well," he said.

However, Mehta noted that unless investments kick start on broad scale, the company doesn't see EPC giving good returnsin near future.

"NHAI projects are not looking attractive at the moment. But this will not remain so and there is a need to kick start investments in the sector," he said.

Mehta said the company is also looking at EPC orders in the solar segment.

"Our focus will be on solar EPC projects as we have the expertise in the field as well as the cement business. We already have a 5.8 mtpa cement plant operational in Madhya Pradesh and we plan to add nearly 10 mtpa, with 5 mtpa each in Maharashtra and Uttar Pradesh in the next few years," he said.

Mehta further said the foray into defence manufacturing with the acquisition of Pipavav Defence and Offshore Engineering Co, through acquisition of 18% promoters stake accompanied by open offer for 26% of share capital, gives a good growth opportunity for the company.

"We have entered the defence sector at the right time given the latest announcements made by the government. The Pipavav acquisition gives us a good opportunity in the ship building segment. But we are keen on all fronts in the defence sector," Mehta said.

As on March 31 the consolidated net worth of the company stood at Rs 26,974 crore, while the gross debt is Rs 25000 crore.

Source - DNA Money

Rupee reverses trend, gains 8 paise against dollar

Breaking its 3-day falling spree, the rupeerecovered 8 paise to 63.93 against the USdollar in early trade today at the Interbank Foreign Exchange on fresh selling of the American currency by exporters.

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Besides, forex dealers said, a higher opening in the domestic equity market propped up the rupee.

They said, however, month-end demand for the greenback from importers and the dollar's strength against other currencies overseas restricted the gains.

The rupee had lost three paise against the dollar yesterday to end at 2-week low of 64.01 on dollar demand from importers coupled with a stronger greenback overseas.The benchmark BSE Sensex rose 95.06 points, or 0.34%, to 27,659.72 in early trade today.

Source - DNA Money

Sensex recovers 33 points on late buying; Nifty ends in red

MUMBAI: Snapping its two-day fall, the BSE sensex on Wednesday recovered by 33 points to close at 27,564.66 points on late buying in banking, FMCG and oil stocks after recent falls and hopes of rate cut by the Reserve Bank. 

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Covering-up of short positions in select stocks in view of May month expiry in the derivatives segment on Thursday and hopes of rate cut by RBI helped the sensex to close in positive zone, brokers said. 

The wider 50-issue Nifty of NSE, however, closed down by 4.75 points, or 0.06 per cent at 8,334.60 points. 

Cautioned prevailed following disappointing earnings by Tata Motors and Tech Mahindra and overnight sell-off in the US markets on fears about Greek fiscal woes and speculation that the Federal will raise interest rates this year, brokers said. 

Market participants are expecting RBI to cut key rates in its June 2 policy meeting as inflation worries has eased, they added. 

After opening lower at 27,447.40 points, the BSE sensex continued to slide and touched the day's low of 27,363.72 points due to sustained selling. 

However, the sensex bounced back following emergence of value buying particularly in banking stocks in the last half-an-hour of trading on hopes of rate cut by RBI. The barometer settled higher by 33.25 points, or 0.12 per cent, at 27,564.66. 

The gauge had lost 426.09 points in the previous two sessions on lower-than-expected earnings from bluechip firms. 

Foreign portfolio investors bought shares worth Rs 114.81 crore on Tuesday, as per provisional the data. 

BHEL topped gainers' list by rising 3.34 per cent largely on covering-up of short positions and value-buying, followed by ONGC which rose by 2.70 per cent. 

Among banking stocks, Axis Bank rose by 2.26 per cent, HDFC Bank by 1.32 per cent and ICICI Bank by 1.1 per cent. 

State-run SBI gained 1.23 per cent. 

Snapping its two-day fall after lacklustre results, ITC was up by 1.10 per cent. 

Oil major ONGC gained 2.70 per cent while Coal India was up by 2.11 per cent. Coal India, Bharti Airtel, NTPC, Tata Power and L&T also posted gains.

Source - Times Of India

RBI likely to cut policy rates by 0.25 per cent on June 2: Citi

NEW DELHI: The Reserve Bank is likely to cut policy rates by 0.25 per cent in its upcoming policy review meet next week, a Citigroup report said on Wednesday. 

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According to the global financial services major, there is a strong case for 25 basis points (bps) cut in interest rates, especially since macroeconomic data such as PMI and IIP, non-oil exports and credit growth has not been encouraging. 

"Following status quo in the April meeting, we expect RBI to cut policy rates by 25 basis points in its upcoming June 2 meeting (from 7.5 per cent to 7.25 per cent)," Citigroup India economistAnurag Jha said in a research note. 

The report pointed out that since the April policy, lending rates have softened by 15-25 bps. 

Despite unseasonal rains, the CPI inflation continued to undershoot RBI's projected trajectory and there has also been supply-side reforms. 

"We expect RBI to resume its easing cycle in the June 2 policy with a 25 bps cut," Citigroup said, adding that given the ongoing trends of structural reforms coupled with cyclical easing of monetary policy and range-bound commodity prices, growth is likely to revive to 8 per cent in next fiscal. 

The central bank has lowered its policy rate twice so far in 2015, but maintained a status quo in its last monetary policy review on April 7 on fears of unseasonal rains impacting food prices. 

The next review meeting is scheduled on June 2, although the previous two cuts have taken place outside the scheduled policy reviews. 

The report further noted that though this rate action is widely expected, the policy will be keenly watched for areas where there is not as much of a consensus like - forward guidance and transmission.

Source - Times OF India

Indian economy poised to grow at 9-10% in medium-term: CII

NEW DELHI: India's economy can grow at 9-10 per cent in the medium-term with a multi-pronged economic strategy, industry body CII said on Wednesday, outlining ten areas requiring policy attention that can bring huge economic benefits for growth, investment and employment creation. 

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The areas highlighted by the industry body for more attention include macro-economy, mining, manufacturing, land acquisition, energy, labour reforms, skill development, taxation, financial sector and Companies Act. 

On macro-economy, it hoped that the government would stay the course on fiscal discipline. 
"Setting a ceiling on subsidy expenditure would be an important step in that direction," said CII president Sumit Mazumder. 

The industry body suggested that all subsidy disbursal may be converted into direct benefit transfer (DBT) by linking Jan Dhan Yojana, Aadhar and mobile technology or the JAM trinity, including for foodgrains, LPG and kerosene, within two years. 

Welcoming the government's resolve to introduce GST, CII said the indirect tax reform would add 1.5 percentage points to the GDP growth rate. 

On Land Acquisition Bill, CII suggested that compensation package should be reviewed to reduce rehabilitation and resettlement costs as sellers receive multiples of market value on acquisition. 

The consent clause from Gram Sabhas should be dropped as it is already required from land owners for Schedule V areas, it suggested. 

"There is huge need for ex-ante zoning of land for identification of land use over a 100 year time horizon and establishment of State Land Bank Corporations for scientific acquisition and disbursal of land parcels for industrialisation and urbanisation," Mazumder said. 

The industry body welcomed several path-breaking economic reform measures announced by theNarendra Modi-led government during the last one year and called for continuing the strong momentum across ten critical areas. 

"The government has exceeded the expectations of industry in the area of economic reforms. We are hopeful that the government would continue to maintain strong momentum of reforms going forward," Mazumder added. 

The industry body categorised the government's achievements during the year into four areas: corruption-free governance; economic diplomacy; empowerment of states; and putting in place key policies to revive investment in the economy. 

Source - Times OF India