Italian tractor major to invest Rs 1,100 crore in India

Source: The Economic Times, Jun 18, 2013

NEW DELHI: New Holland Fiat India, part of the Italian automotive major Fiat Industrial Group plans to invest Rs 1100 crore to set up a new greenfield plant in Maharashtra and increase its tractor manufacturing capacity by 50% in the next three years.

The company would take its tractor capacity to 60,000 units at the Greater Noida plant in Uttar Pradesh with a cumulative investment of Rs 230 crore. Currently it churns our 40,000 tractors per year. Besides, an Rs 550 crore plant will come up at Chakan in Maharashtra to make sugarcane harvesters, cotton pickers and harvest combiner’s for various crop applications in the country.

New Holland MD Rakesh Malhotra told ET, “We have lined up fresh investment to launch new farm implements and emerge as a integrated farm solutions company for the Indian agriculture market. We are also beefing up our R&D facility with an additional investment of Rs 220 crore to developed products and farm equipment for captive application in the Indian market.”

COAI calls for 100% FDI in telecom, seeks ‘clear road map’ on sector

Source: The Economic Times, Jun 18, 2013

NEW DELHI: At a time when the telecom department’s relation with the industry is at an all-time low, the industry has approached the government to provide a ‘clear road map’ and regulatory and policy certainty to improve the sector’s health.

In a recent presentation to the department of telecommunications ( DoT), the GSM industry body, the COAI, has clearly said that the government must resolve issues concerning one-time spectrum charge and Vodafone tax dispute. The Industry body also sought powers for the telecom regulator akin to that of a civil court, auction of spectrum in the 700 Mhz band to expand the reach broadband and 100% FDI in the sector. The COAI insisted that there is no link between the government’s security concerns and the preferential market access (PMA) policy which mandates that 80% of all security-sensitive telecom and electronic products must be sourced domestically by 2020. “Hence it must be de-linked,” the industry body had contended.

Kochi emerges India’s strongest market for BMW, Audi, Mercedes, Jaguar Land Rover

Source: The Economic Times, Jun 17, 2013

New Delhi: We should have guessed it more than a month ago when a YouTube video of a 9-year-old boy driving his father’s Ferrari in Kerala caught international attention and led to his father’s arrest: the tiny southern state has developed a strong fascination for fast cars.

Kochi has beaten all the metros and other cities to emerge as India’s strongest growing market for the likes of BMW, Audi, Mercedes and Jaguar Land Rover, thanks to rising value of spices and rubber, ever-increasing inflows from non-resident Keralites and the state’s newfound urge to splurge on luxury.

Luxury carmakers ET spoke to say Kochi has been clocking 40% year-on-year growth for the last three years, much higher than the rest of India, and it now sells more luxury cars than Chennai, Kolkata and Hyderabad.

M&M in share-swap deal with Spain’s CIE

Source: Business Standards, Jun 17, 2013

Mumbai: Tractor and utility vehicle major Mahindra & Mahindra (M&M) has entered into a share-swap arrangement with Spain’s CIE Automotive to create a global auto component manufacturer.

The Mumbai-based firm has agreed to merge its five listed and unlisted subsidiaries and later sell a stake in the combined entity to CIE Automotive for euro 100 million (Rs 770 crore). In exchange, using the proceeds, M&M will buy 13.5 per cent in CIE for euro 96.24 million (Rs 740 crore). M&M hopes the multi-structured deal, after regulatory approvals, will be completed in 12-14 months.

Guar gum India’s biggest agricultural export item for a second year

Source: Business Standards, Jun 17, 2013

New Delhi: For a second year, guar gum has emerged as Indias largest item of agricultural export. And, responsible for pushing the countrys overall farm exports to Rs 120,000 crore in 2012-13, show data from the Director General of Commercial Intelligence and Statistics (DGCIS).

Guar gum, has seen rising demand from big Western oil companies on its use as a controlling agent in oil wells for facilitating easy drilling and preventing fluid loss. Between 2010-11 and 2012-13, it has registered 624 per cent rise in exports in value terms.

India is the worlds largest producer of the gum. On average, the country produces 1-1.5 million tonnes of guar annually.

Special session of Parliament likely for food Bill passage

Source: LiveMint, Jun 14, 2013

New Delhi: The Congress-led United Progressive Alliance (UPA) put on hold plans to implement its marquee food security Bill through the promulgation of an ordinance and has begun exploring the possibility of calling a special parliamentary session to pass the law.

The shift in stance has the political backing of Congress president Sonia Gandhi, who is betting on the support of the opposition parties. It comes at a time when there is considerable speculation that the general election may be advanced. The national polls are currently scheduled to be held in 2014.

If true, then the Congress is implicitly suggesting that the food security law, together with direct transfer of subsidies, could generate a feel-good bump to offset the anti-incumbency sentiment working against its electoral interests.

World Bank sees India growth rising to 5.7% in 2013-14

Source: The Hindu Buisness Line, Jun 13, 2013

New Delhi: The World Bank sees India’s economic growth rising to 5.7 per cent in 2013-14, buoyed by gradual strengthening of external demand.

Growth is projected to accelerate to 6.5 per cent in 2014-15 and 6.7 per cent in 2015-16, the World Bank said in its latest edition of the Global Economic Prospects released on Thursday.

However, the GDP growth forecast of 5.7 per cent for 2013-14 is lower than the 6.1 per cent growth projected in the January edition of this report.

The Indian economy had in 2012-13 recorded growth of five per cent, the slowest pace since 2003. It was also less than the 10-year average of eight per cent.

The Finance Ministry had in February this year projected India’s economic growth to be between 6.1-6.7 per cent in 2013-14.

The World Bank report said the global economy would expand 2.2 per cent in 2013, paring a forecast of 2.4 per cent in January.