Indian Economy - News & Updates - Archive

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India Inc sets eyes on $40 bn nuclear energy market
NEW DELHI: Eyeing the $50 billion (approximately Rs.2,000 billion) potential seen in India's nuclear energy sector over the next 10-15 years, apex industry chambers have begun to lobby with the government to permit private sector entry in the industry, two days after a historic global decision to end the country's decades-old nuclear isolation.

"As many as 40 Indian companies have already started talks with the government to allow the private sector into nuclear power generation," Venugopal Dhoot, chairman of white goods to energy major Videocon Group, told reporters here Monday.

"This is a huge business opportunity for India as power is a booming sector that requires maximum investment in the near future," said Dhoot, the past president of the Associated Chambers of Commerce and Industry (Assocham).

He said Videocon, Tata Power and Jindal Power are among the 40 or so corporates negotiating joint ventures with their foreign counterparts for nuclear power generation. "We are already talking to the government to allow private players in this sector," Dhoot added.

His comment came after the 45-member Nuclear Suppliers Group (NSG) met in Vienna last week and decided to end more than three decades of nuclear isolation of India, after three days of intense diplomacy by the US and Indian diplomatsIndia Inc sets eyes on $40 bn nuclear energy market- Indicators-Economy-News-The Economic Times

 

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India tops list of Dubai's trading partners
DUBAI: Pushing aside China to the second place, India has topped the list of Dubai's main trading partners during the first half of 2008.

The bilateral trade volume of imports between India and Dubai has grown by 49.6 per cent, crossing USD 6.56 billion as against USD 4.38 billion, in the corresponding period last year, a report by Dubai World's Statistics Department has said.

India also topped among trading partners in exports, which was put at USD 2.26 bn, a growth rate of 44.4 per cent as compared to the first six months last year, the report said.
Also, the report added that China moved to second place as the Dubai's trading partners but showed a growth rate of 29.9 per cent which was USD 6.48 billion as against last year's USD 4.98 billion.

The United States stood at third place with a growth rate of 76.4 percent.

Meanwhile, Dubai's non-oil direct foreign trade jumped by 54.3 percent during the first half of 2008, as compared to the same period last year.

"This growth reflects the position Dubai now enjoys in global trade. Excellent development of infrastructure and reinforcement of its competitive potentials have helped Dubai become an attractive economic hub for investments in diverse areas," said Saeed Al Qaizi, the director of procurement, contracts and statistics, at the Dubai World.

Nassim Al Mehairi, the acting manager at statistics department of Dubai World said, "Dubai's overall imports during January-June, 2008 also saw a growth rate of 52.7 per cent."





India tops list of Dubai's trading partners- Indicators-Economy-News-The Economic Times

 

[Neo]

India, Germany launch 20m euro science and technology center ​

New Delhi, Sept 9, IRNA

India and Germany on Tuesday launched a 20 million euro strategic partnership on innovation in skill development, industrial growth and life sciences.

Both countries would start a Indo-German Science and Technology Center which will strengthen collaboration in the field and accelerate translation of research into new products, processes and services.

India and Germany have already started a joint research project on infectious diseases since 2006. Systemic biology, drug development and clinical trials are the focus areas of the project.

The new partnership in research and technology would see an investment of 10 million euro each from India and Germany.

"The partnership would address the challenges faced by both the countries in various areas. It will look forward to technological solution to the local problems," Science and Technology Minister Kapil Sibal said.

He said India is planning to set up 50,000 development centers where people would be provided skill-oriented training.

Germany, which is much advanced in skill development, can be of help to India in this regard, he said.

The centers will come up on public-private partnership basis with involvement of industry bodies like Federation of Indian Chamber of Commerce and Industry (FICCI), ASSOCHAM and Confederation of Indian Industry (CII).

The major issues in India include energy security, climate change and health related problems, Sibal said the government has launched scheme under which scholarships are being provided to students to pursue further studies and research.

The government is also bringing a bill which envisages a share for scientists in the wealth created by the technology developed by them.

This would encourage them go for more research and innovation, Sibal said.

Germany's Federal Minister of Education and Research Annette Schavan said the cooperation has potential for both sides.

 

[Neo]

India-Malaysia bilateral trade to reach $16 bn by 2012​

Calcutta News.Net
Tuesday 9th September, 2008 (IANS)

Total bilateral trade between India and Malaysia stood at $4.09 billion from January to May this year against $2.94 billion in the same period last year. The amount is expected to go up to $16 billion by 2012, according to Malaysian High Commissioner to India Ten Seng Sung.

India now imports crude petroleum, palm oil, electrical and electronic products from Malaysia and exports chemicals and chemical products, live animals and refined petroleum products, Sung said after a meeting with West Bengal Chief Minister Buddhadeb Bhattacharjee.

The two countries have identified sectors like petroleum and gas, IT, healthcare, education, processed food, medicine, construction and engineering as major areas of collaboration.

On the other hand, major Malaysian companies have invested in sectors like construction, power generation, telecommunications and tourism in India, Sung said.

The high commissioner assured Bhattacharjee that he would look into the scope of resuming air connectivity between Kuala Lumpur and Kolkata.

The chief minister sought collaboration with Malaysia in the area of agro processing. He emphasised that West Bengal could export mangoes to Malyasia and provide opportunities to the companies from the East Asian nation to put up potato processing plants as the state had a huge surplus in potato production.

Sung and Bhattacharjee also discussed the possibilities for Malaysian investment in the state in the infrastructure sector and also for setting up downstream units in petrochemicals and steel sectors, according to a statement issued by the office of the Malaysian Consul in Kolkata Sanjay Budhia.

 

[Neo]

FTA in hand, how far are India & ASEAN from a CEPA?​

10 Sep, 2008, 0314 hrs IST,Amiti Sen, ET Bureau

NEW DELHI: While the negotiations on a free trade agreement (FTA) in goods between India and the ASEAN have been successfully concluded, talks on liberalising services-the area which could generate the maximum benefits for India in terms of greater job opportunities and more services exports-is yet to begin. Negotiations on services and investment, which are expected to begin next month and be concluded by the end of next year, will eventually spell out the net gains made by India from the bilateral agreement.

When talks started on a bilateral trade agreement between India and the ten ASEAN countries began way back in 2002, the two sides initially began work on a comprehensive economic partnership agreement (CEPA), including goods and services and investment-all to be negotiated under a single undertaking (meaning if you can't agree on any one of the three, you don't have a deal). However, as the negotiations progressed and came against several road-blocks, the ASEAN demanded that the goods agreement should be concluded first and the agreement on services and investment should follow.

India, which was keen to forge an alliance with the ASEAN, especially because of China's growing economic ties with the region, agreed. As a result, India lost some bargaining power, which could have been utilised to wrench a few extra concessions, particularly in the area of movement of professionals against concessions given by India in the area of goods.

Despite the obvious disadvantage of negotiating a purely services agreement, India could still manage to get a good bargain with some careful negotiations. Since Singapore-India's best friend in the ASEAN group-is the chair of the negotiating group on services, the chances of India getting a raw deal stand reduced.

According to the framework agreement of the India-ASEAN CEPA the commitments on liberalising services between the two parties should go beyond the commitments which the two will make in the General Agreement on Trade in Services of the World Trade Organisation. India's main interest lies in easier temporary visas for its workers to go to any of the ASEAN countries to provide their services.

India also wants mutual recognition agreements (MRAs) to be part of the treaty. This would enable Indian professionals like doctors, architects and chartered accountants to practice in the other country with a degree or diploma earned in the home country. India is working on similar MRAs with Singapore under the India-Singapore CEPA. In the area of investments, both sides have talked about strengthening cooperation in investment, facilitate investment, improve transparency of investment rules and regulations and provide for the protection of investments. In the financial services sector, like banking and insurance, this could provide opportunity to Indian entities to set up business in the ASEAN countries.

The agreement on goods, which is likely to be implemented by the beginning of next year, is quite ambitious with all parties reducing or eliminating tariffs on more than 90% tariff lines corresponding to about 96% of total trade. While majority of the trade stands to be liberalised by 2012, depending on the country and the track, the process would go on till 2023.

Special and differential treatment in terms of longer implementation period is being given to Cambodia, Laos, Myanmar and Vietnam. India and the remaining six ASEAN members including Malaysia, Singapore, Thailand, Indonesia, Philippines and Brunei will liberalise their markets for industrial and agricultural goods faster. India-ASEAN trade, which has been growing at a compounded annual growth rate of 27%, stood at $38.37 billion in 2007-08. It is projected to reach $ 48 billion in 2008-09.

 

[Neo]

India's N-energy trade to touch USD 100 bn in 10 yrs: US​

9 Sep 2008

HYDERABAD: The nuclear energy business in India would be in the order of USD 100 billion in about ten years after nuclear deal comes through, the United States Assistant Commerce Secretary David Bohigian said on Tuesday.

The Nuclear Suppliers Group's waiver for India was a positive move that would foster clean energy business in both the countries, he said.

Bohigian, who is leading the US clean energy trade mission to India to explore the business opportunities, was interacting with the media here.

Though a business plan for the post-deal period is not made yet, he said there were immense opportunities waiting to be tapped.

India, he said, would witness nuclear renaissance once the deal is through.

Some companies dealing in clean energy have been making enquiries with the Commerce Department about the possible trade opportunities and the scope of nuclear business, the visiting dignitary said.

Asked why US did not set up new nuclear reactors in the past two decades, he said it was working on the second generation reactors which are more economical and reliable.

 

[Neo]

India Top 10 Yearbook for 2008 Reveals Key Information on Almost All Socio-Economic Aspects Prevailing in India​

DUBLIN, Ireland — Research and Markets
Tuesday, Sep. 09, 2008

(Indiastat India Top 10 Yearbook - 2008 - Market Research Reports - Research and Markets) has announced the addition of the "Indiastat India Top 10 Yearbook - 2008" report to their offering.

Indiastat India Top 10 Yearbook - 2008 is a complete guide that serves as an effective source of key information on almost all socio-economic aspects prevailing in India with the comparison of world. All parameters have been structured in descending/ascending order with India's rank in globe and form a unique source of knowledge for readers from all walks of life.

This book is a single source of information providing interesting statistics on various aspects of the geography, Demographics, agriculture, economy, industry, infrastructure, health & nutrition, travel & tourism, labour & workforce, education, market, sports, crime & law and media & lifestyle presented in over 1000 tables.

The work highlights amazing facts in a manner never laid before. A list of Top 10 has been conceived that includes ranking on certain specific parameters and its comparison with the countries ranking. Indiastat India Top 10 Yearbook- 2008 will satiate the urge of every reader to reach out to the most interesting pieces of information which otherwise would require browsing through many texts & websites of this nature. Access to such facts and figures had never been made so easy.

Indiastat India Top 10 Yearbook- 2008 makes available the most recent data on the present socio-economic aspects. The various facts will sweep many persisting notions among the common man with factual data piled up from the most authenticated sources.

The data of India comparing to world is its most unique feature. One such tabulation brings out India as a country with the second highest producer of rice in world with the production of 608367.82 thousand tones after China, which is producing 180522.60 thousand tones in the year 2004. Another list for the year 2007 indicates India's fourth internet user position in globe by having 60000000 users. The ranking by Forbes of world most powerful women quotes Sonia Gandhi on fourth place while Angela Morkel, chancellor of Germany, listed on top position. The sources reveal Switzerland as country with the highest briber payer index followed by Sweden & Australia while India is on thirteenth position in the year 2006. As on 2005, India is projected in top list of countries, which haves the highest population without electricity.

AdvertisementThe reader is bound to enjoy the available pool of data in this publication for India, its expanse and variety. Among the major oil refineries in India at the end of March 2007, Reliance Petroleum Ltd. at Jamnagar is the largest refining capacity. As per companies' sale figure of steel for the year end March 2007, SAIL (Steel Authority of India) is listed on the top position followed bt Tata steel. As on June 2007, BSNL records the highest number of internet subscribers in India followed by MTNL and Sify. Maharashtra for the highest power generating state in 2007 while Gujarat and Andhra Pradesh following it.

Indiastat India Top 10 Yearbook- 2008 is sure to become an indispensable collection of interesting information for every knowledge seeker.

Key Topics Covered:
- Geographical Facts
- Demographics
- Agriculture
- Economy
- Industry
- Infrastructure
- Health & Nutrition
- Travel & Tourism
- Labour & Workforce
- Education
- Market
- Sports
- Crime & Law
- Media & Lifestyle

For more information visit Indiastat India Top 10 Yearbook - 2008 - Market Research Reports - Research and Markets

Research and Markets Laura Wood, Senior Manager U.S. Fax: 646-607-1907 Fax (outside U.S.): +353-1-481-1716 press@researchandmarkets.com

 

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India, Canada FTA recommended

Indo-Canadian CEOs "have concluded that Canada and India should enter into a new era of cooperation", which should result in their concluding a "comprehensive Free Trade Agreement."

The CEOs on both sides, headed by Thomas d'Aquino, chief executive and president of Canadian Council of Chief Executives, and Tarun Das, president of Confederation of Indian Industries, submitted a 14-page report on September 2 to the two trade ministers in Canada and India for their considerations and follow-up actions.

It was in June last year that India's Commerce Minister Kamal Nath and Canada's Minister for International Trade David Emersion asked the India-Canada CEO Roundtable participants for advice on the possibility of launching negotiations toward a free trade agreement between the two countries.

The draft report that they have now submitted is the result of that initiative by two ministers.

"It is time to elevate the trade and investment relationship between Canada and India to a new level," and the CEO Roundtable participants, in their draft report, "recommend the launch of discussions toward a comprehensive economic partnership agreement consistent with the principles outlined in the report."

"CEO Roundtable participants agreed that deepening bilateral trade relations should support rather than upstage or undermine the multilateral agenda," the report added.

The CEOs on both sides "believe that the scope to conduct business bilaterally is limitless and that the time to engage is now. The products and services that Canada and India produce and what each country needs are complementary. The strong linkages offered by a vibrant Indo-Canadian community represent further untapped potential in the relationship."

Some people have expressed apprehension that the proposed FTA agreement could not serve much purpose when the trade between the two countries is so low -- about $4-billion on two sides this year. According to some projections, within the next five years it could increase to $10 billion.

CEOs on both sides disagree with this kind of pessimism. "A more aggressive but strategic approach to the bilateral relationship is needed to produce benefits for both India and Canada in the form of new markets for goods and services, opportunities for investment and stronger economic growth."

It is suggested in their draft report that "pursuit of deeper commercial relations would result in greater competitiveness and prosperity for Canada and India."

Dr Wendy Dobson, professor at Rotman School of Management, University of Toronto, said the report by the CEOs "has all the good principles and it is suggested that it should be comprehensive FTA, and agriculture should be included as far as possible."

Participating in a Canada-India business round table, sponsored jointly by Indo-Canada Chamber of Commerce and Ontario Chamber of Commerce, held on September 4, Dobson said, "It is a good time (for release of this document), something that needs to simmer and be considered and tackled, if possible."

"Official responses are positive as what we learnt during Canada-US Free trade negotiations and subsequently in the North American free trade agreement negotiations is that even the prospect of negotiations is an enormous catalyst and raised business interests as to how should we position ourselves if this (FTA) happens," she said.

"Given current global, regional, and country-specific economic conditions, further study will be needed in a number of sectors that are not yet ready for full bilateral liberalisations, including the agricultural and cultural sectors," the CEO Roundtable report said.

Agriculture, it is known, is a very important and touchy sector in India as 50 pe rcent of the country's population still depends on agriculture for their sustenance.

As for the CEO Roundtable participants, "There are no major impediments to beginning bilateral negotiations immediately� (as) for agriculture, the negotiations should take into account the livelihood issues in India and develop areas of complementarity; non-tariff barriers should be eliminated between the two countries; and the FTA should include a binding dispute settlement mechanism."

In their report, the CEOs have recommended that the two prime ministers should move beyond the 2003 and 2005 joint declarations signed by leaders in two countries "and endorse the launch in 2008 of negotiations toward a Free Trade Agreement."

Such an agreement, CEO Roundtable participants suggested, "would enable closer bilateral cooperation in priority areas such as security, commercial exchanges, culture, science and technology, education, infrastructure and energy and the environment."

The report also discussed the potential of India as "a large and growing economy; one that is projected to become the world's third largest by 2050 and therefore, it is suggested that the Canadian businesses must engage more actively."

Thomas d'Aqino was the keynote speaker at Indo-Canada Chamber of Commerce Gala on June 14, when India's Minister of Science and Technology Kapil Sibbal was among the special guests present that evening.

D'Aquino explained how a group of Canadian CEOs, under his leadership, went to India in March last year, which was part of the Canada-India CEO Roundtable. It was followed by visit of Indian CEOs for their second CEO Roundtable in Montreal in June where Minister Kamal Nath, Canada's Minister for International Trade David Emersion and Quebec Premier Jean Charest were also present.

"At that meeting, both ministers asked the Canada-India CEO Roundtable participants for advice on the possibility of launching negotiations towards a free trade agreement between India and Canada," d'Aquino said.

This draft 14-page report has been submitted to the two ministers.

The CEOs on both sides believe that the FTA, once concluded, "would deepen economic engagement to the benefit of both countries" and it would also reinforce "existing agreements and understanding."

"While our bilateral trade and investment remains modest, significant benefits would accrue to both Canada and India if this (Free Trade) agreement was substantial and comprehensive, covering a broad range of trade-related areas," the CEOs said.

The CEOs have recommended that the two prime ministers "should meet at the earliest opportunity to consider the course of action recommended" by them in their draft report.

"India-Canada CEO Roundtable participants pledge to hold additional meetings to prepare for the launch of the negotiations," they said.
India, Canada FTA recommended

 

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Top finance adviser sees single digit inflation by year-end

NEW DELHI: Inflation rate will come down to single digit by the end of this fiscal if oil prices keep softening in the international markets, says a top adviser in the finance ministry.

"If oil prices go below $100 per barrel, the wholesale price index inflation will even come down to five-six percent by the end of the current fiscal," Arvind Virmani, chief economic adviser in the finance ministry, told IANS in an interview.

"I am reasonably confident that within a year, inflation will be back to normal. In the short-term, it depends on oil prices to a large extent and we have seen oil prices coming down."

He also said food price inflation has not been that severe in India when compared with the global situation, as prices of primary food articles such as fruits, vegetables, tea and lentils had gone up by 6.04 percent during the 52-weeks ended Aug 23.

"It is partly because of the nature of our economy, which is still isolated from the global situation except in one or two commodities like edible oils as we import some 60 percent-plus of our overall edible oil requirements," he said.

"Nevertheless, our food price inflation has only been around seven percent for the primary food articles as compared to 45 percent for the index of food globally."

The Prime Minister's Economic Advisory Council (EAC) in its recent "Economic Outlook Report for 2008" had said that a coordinated policy action could bring the inflation rate down to eight-nine percent by March 2009.

"Given the global impulse, to a large extent, the short-term outlook will depend really on what happens globally," Virmani said.

"Of course, in the medium to long term, various monetary policy actions have been taken. These will help in bringing down inflation in the next three to six months."

To rein in inflation, the Reserve Bank of India (RBI) successively hiked the repo rate or the rate which the central bank lends to commercial banks and the cash reserve ratio or the minimum balance a bank has to keep against deposits.

These measures helped in moderating the country's inflation rate to 12.34 percent for the week ended Aug 23 from close to 13 percent a few weeks ago, bringing some relief to policy makers.

Virmani also projected a lower economic growth in India during the current fiscal, but higher then the projection of 7.7 percent growth predicted by the advisory council. The gross domestic product had expanded by nine percent last fiscal.

"This year the economy will grow below the trend of nine percent. The growth will remain between 7.75 percent and 8.75 percent," he said.

Indian economy grew at 7.9 percent during the first quarter of this fiscal compared to 9.2 percent during the corresponding period of last year.



Top finance adviser sees single digit inflation by year-end- Indicators-Economy-News-The Economic Times

 

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Japan: The 9th Round of Negotiations on the Japan-India Economic Partnership Agreement
The 9th round of negotiations on the Japan-India Economic Partnership Agreement (EPA) will be held from September 8 (Mon) to 12(Fri), 2008 in New Delhi, India, at the Ministry of Commerce and Industry.

In this round, Mr. Masato Takaoka, Deputy Director-General of the Economic Affairs Bureau, Ministry of Foreign Affairs (Coordinator for the Japanese Co-chairs), other Director-General-level Co-chairs and officials from relevant ministries and agencies of Japan, and Mr. Dinesh Sharma, Joint Secretary of the Department of Commerce, Ministry of Commerce and Industry (Indian Co-chair) and officials from relevant ministries of India will respectively participate.

In the round, both sides will discuss market access of trade in goods and such issues as rules of origin, general rules, customs procedures, trade in services, investment, intellectual property, and cooperation.

Japan: The 9th Round of Negotiations on the Japan-India Economic Partnership Agreement

 

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End To India Nuclear Isolation Opens Huge Market

September 08, 2008: 10:06 PM EST
NEW DELHI (AFP)--The end to India's nuclear pariah status paves the way for atomic fuel and technology sales worth tens of billions of dollars and companies are racing to exploit the market, officials say.

A host of companies - from Westinghouse Electric Co. and General Electric Co. (GE), and France's state-controlled Areva (CEI.FR) to Russia's atomic energy agency Rosatom - have been jockeying for a slice of India's lucrative civilian nuclear technology market and more are poised to join the fray.

"This is a huge business opportunity for India as power is a booming sector requiring maximum investment," Venugopal Dhoot, who heads consumer goods-to- energy firm Videocon Group, told reporters Monday.

Videocon is one of about 40 Indian companies seeking to negotiate nuclear power joint ventures with foreign firms, said Dhoot, past president of Indian business lobby Assocham.

The Nuclear Suppliers Group, or NSG, which controls the sale of nuclear technology, cleared civilian nuclear commerce with India Saturday -- a key step in sealing the India-U.S. atomic technology accord signed by President Bush and Indian Premier Manmohan Singh in 2005.

The decision - ending a 34-year embargo - gives India the right to buy nuclear reactors from abroad and access to nuclear fuel on the global market.

The U.S.-India Business Council, one of the champions of the nuclear pact between New Delhi and Washington, said the NSG's decision could unlock nuclear energy investment in India worth more than $100 billion.

"India's existing civilian nuclear power program generates only 3,500 megawatts of electricity due to lack of access to much-needed fuel," said the group's president, Ron Somers.

"India plans to increase this capacity to 30,000 to 60,000 megawatts over the next 20 years by acquiring fuel from Nuclear Suppliers Group countries for its civilian nuclear energy program - at a cost exceeding $100 billion," he said.

India state-owned Nuclear Power Corp. - the monopoly nuclear power generator - is readying to place orders that will form the first phase of the country's plan to build 40,000 megawatts of nuclear capacity by 2020, according to Indian media reports.

According to U.S. forecasts, India will import at least eight nuclear reactors by 2012.

Energy-hungry India, where many areas endure blackouts lasting 12 hours or more, has been denied access to foreign civilian nuclear technology since it tested a nuclear weapon in 1974 and refused to sign the Nuclear Non- Proliferation Treaty.

The ruling Congress party has been seeking to broaden India's energy sources as it seeks to keep the country's fast economic growth on track.

Thermal fuel provides 70% of India's energy while 20% comes from hydroelectricity. Nuclear energy accounts for just 2% to 3%, which India is aiming to boost to between 5% and 7% by 2030.

Technically, as a result of the NSG's decision, India now is free to trade on the world market. But India said late Monday it would seek to clinch international nuclear deals only after the India-U.S. atomic agreement is cleared by the U.S. Congress.

India will "enter into trade with supplying countries through bilateral agreements" after Congress ratifies it, Foreign Minister Pranab Mukherjee said in New Delhi.

The deal has been held up as a high-water mark of growing strategic ties between Washington and New Delhi.

Mukherjee's pledge came after U.S. Secretary of State Condoleezza Rice urged India not to "disadvantage American companies" should the deal hit a roadblock in this session of Congress, which winds up at the end of this month.

But in the meantime, India can hold informal talks for nuclear reactors. On Monday, a British nuclear power industries delegation arrived in India to explore the market.

"We've discussed lots of possibilities for nuclear trade between India and the U.K.," India's Minister of State for Industry Ashwani Kumar said after meeting the delegation
End To India Nuclear Isolation Opens Huge Market

 

[nitesh]

Tata Group | Tata Consultancy Services | Media releases | TCS partners with Saab to set up aerospace design and development centre in India

Tata Consultancy Services (TCS), (BSE: TCS.BO, NSE: TCS.NS), a leading global IT services, business solutions and outsourcing firm, today announced its partnership with Saab for the establishment of Saab’s Aeronautical Design and Development Centre (ADDC) in India. Saab serves the global market with world-leading products, services and solutions ranging from military defense to civil security.

The partnership to establish ADDC aims at addressing the global aeronautical market. ADDC will create a single source of design and development capabilities within India, addressing domestic and the global defense and civil aeronautical applications. ADDC capabilities across the product lifecycle include: design and development of structures / systems for new platforms, performance studies and virtual prototyping, aircraft sustenance engineering, manufacturing support, production and after market support, life extension / upgrade programs, avionics and mission critical software development.

“This co-operation is not limited to any specific product but is aimed towards building a joint capability to leverage collective strengths across the globe,” says Saab CEO Ake Svensson.

Commenting on the partnership, S Ramadorai, chief executive officer and managing director, TCS, commented: “This partnership has a strong blend of Saab’s technology solutions and TCS global engineering model to address the growing opportunities in the aerospace and defense sector.”

Tata Industrial Services (TISL), which oversees and monitors contracts, was instrumental in forging this co-operation. Uma Pillai, managing director of TISL, commented: “The formation of ADDC is the first step in harnessing the potential of the two global organisations in aerospace and defense sector.”

 

[Neo]

Delays drive up Mittal’s project costs​

NEW DELHI, Sept 10: Steel giant Arcelor Mittal said on Wednesday delays in obtaining approvals for its two Indian plants had pushed up costs by 50 per cent but the company was still committed to investing in the country.

Arcelor Mittal, the world’s largest steel firm, said its planned integrated steel plants in mineral-rich Orissa and Jharkhand states were facing big cost overruns due to delays in getting mining, land acquisition and other approvals.

“When we started, we estimated they (the two plants) would cost about $20 billion,” Arcelor Mittal chief executive officer Lakshmi Mittal told reporters in the Indian capital.

But “there has been a delay for two years so costs have gone up by 50 per cent,” he said. “The more the delay, the more the cost overruns.” The steel tycoon’s statements came as India slipped two notches to 122 out of 181 countries in the World Bank’s annual global ranking of the easiest places to do business.

At the same time, India-born Mittal, who was in New Delhi for a company meeting, said Arcelor Mittal was “still very excited about our (eastern) Indian projects” and added he “was emotionally committed to the country.” Analysts say Arcelor Mittal is keen on using low-cost facilities in emerging markets to cut production costs.

Neither Arcelor Mittal’s experience nor the bitter dispute over the building of a Tata Motors plant in West Bengal slated to produce the world’s cheapest car detracted from India’s appeal as an investment destination, Mittal said.

A slew of Indian business leaders have warned that violent demonstrations demanding return of farmland acquired for the Nano car plant in Marxist-ruled West Bengal will damage the country’s investment allure.

“One can face this kind of problem in any other country,” Mittal said. “But the country as a whole is interested in growing.” He said he had no idea when the plants, which would have total capacity of 25 million tons annually, would get the green light, but the company had set up an office in Kolkata and “whenever we have approvals the projects can move fast.” In the meantime, Arcelor Mittal was working with local communities to explain the training and job benefits of the projects, he said.

“This is not a one-way process... this will reduce the anxiety of the people,” he said.

“India has never seen this kind of investment in the infrastructure,” he added.

Large industrial projects, which Indian politicians say are vital to creating jobs in the country of over 1.1 billion people, have faced huge local opposition with farmers objecting to loss of their land.—AFP

 

[Neo]

India’s core infrastructure growth slumps​

NEW DELHI, Sept 10: Growth of India’s core infrastructure industries, such as crude oil slumped in July, official data showed on Wednesday, stoking concern about an already slowing economy.

Growth of the six core infrastructure industries, which account for 26.7 per cent of industrial output, accelerated by 4.3 per cent in July, down from 7.2 per cent in the same month a year earlier, commerce ministry data showed.

The six sectors making up the core infrastructure index are crude oil, petroleum refinery products, coal, electricity, cement and finished steel.

Crude oil production shrank by three per cent in July compared with growth of 0.9 per cent in the same month a year earlier.

India’s economy has been expanding by at least nine per cent for the past three financial years but is expected to slow to 7.7 per cent in the year to March 2009, according to the government’s Economic Advisory Council.

Recent data showed first-quarter to June economic growth eased to 7.9 per cent, the weakest pace in three-and-a-half years, as successive interest rate hikes to tackle double-digit inflation hit demand.

Hefty borrowing charges and a surge in prices — inflation has nearly tripled in the past year to 12.34 per cent — have discouraged purchases of consumer and other goods, economists say.

 

[Neo]

End to India nuclear isolation opens huge market ​

By Penny MacRae

State-owned Nuclear Power Corp of India Ltd is getting ready to place orders that will form the first phase of the country’s plan to build 40,000 megawatts of nuclear capacity by 2020

THE end to India’s nuclear pariah status paves the way for atomic fuel and technology sales worth tens of billions of dollars and companies are racing to exploit the market, officials say.

A host of companies - from Westinghouse Electric Co and General Electric of the United States, France’s state-controlled Areva to Russia’s atomic energy agency Rosatom - have been jockeying for a slice of India’s lucrative civilian nuclear technology market and more are poised to join the fray.

“This is a huge business opportunity for India as power is a booming sector requiring maximum investment,” Venugopal Dhoot, who heads consumer goods-to-energy firm Videocon Group, told reporters on Monday. Videocon is one of some 40 Indian companies seeking to negotiate nuclear power joint ventures with foreign firms, said Dhoot, past president of Indian business lobby Assocham.

The Nuclear Suppliers Group (NSG), which controls the sale of nuclear technology, on Saturday cleared civilian nuclear commerce with India - a key step in sealing the India-US atomic technology accord signed by US President George W. Bush and Indian Premier Manmohan Singh in 2005. The decision - ending a 34-year embargo - gives India the right to buy nuclear reactors from abroad and access to nuclear fuel on the global market. The US-India Business Council, one of the champions of the nuclear pact between New Delhi and Washington, said the NSG’s decision could unlock nuclear energy investment in India worth more than 100 billion dollars.

“India’s existing civilian nuclear power programme generates only 3,500 megawatts of electricity due to lack of access to much-needed fuel,” said the group’s president, Ron Somers. “India plans to increase this capacity to 30,000 to 60,000 megawatts over the next 20 years by acquiring fuel from the Nuclear Suppliers Group countries for its civilian nuclear energy programme - at a cost exceeding 100 billion dollars,” he said.

State-owned Nuclear Power Corp of India Ltd - the monopoly nuclear power generator - is readying to place orders that will form the first phase of the country’s plan to build 40,000 megawatts of nuclear capacity by 2020, according to Indian media reports. According to US forecasts, India will import at least eight nuclear reactors by 2012.

Energy-hungry India, where many areas endure blackouts lasting 12 hours or more, has been denied access to foreign civilian nuclear technology since it tested a nuclear weapon in 1974 and refused to sign the Nuclear Non-proliferation Treaty. The ruling Congress party has been seeking to broaden India’s energy sources as it seeks to keep the country’s fast economic growth on track. Currently, thermal fuel provides 70 percent of India’s energy while 20 percent comes from hydro-electricity. Nuclear energy accounts for just two to three percent, which India is aiming to boost to five to seven percent by 2030. Technically, as a result of the NSG’s decision, India now is free to trade on the world market. But India said late Monday it would seek to clinch international nuclear deals only after the India-US atomic agreement is cleared by the US Congress.

India will “enter into trade with supplying countries through bilateral agreements” after Congress ratifies it, Foreign Minister Pranab Mukherjee said in New Delhi. The deal has been held up as a high-water mark of growing strategic ties between Washington and New Delhi.

Mukherjee’s pledge came after US Secretary of State Condoleezza Rice urged India not to “disadvantage American companies” should the deal hit a roadblock in this session of Congress, which winds up at the end of this month. But in the meantime, India can hold informal talks for nuclear reactors. On Monday, a British nuclear power industries delegation arrived in India to explore the market. “We’ve discussed lots of possibilities for nuclear trade between India and UK,” India’s Minister of State for Industry Ashwani Kumar said after meeting the delegation. afp