The Chakan airport project is likely to get further delayed with the government yet to disburse the seed capital of Rs 200 crore sanctioned a month back. And now the forthcoming elections will further add to the delay of the project even as Union Civil Aviation Minister Praful Patel looks at a 2010-11 deadline for the project. The state government had given the final nod for setting up an international airport at Chakan last month, with Guardian Minister Ajit Pawar stressing the need for early disbursement of funds before the election code of conduct comes in place. However, the funds were not disbursed and now the Maharashtra Airport Development Company (MADC) is helpless and cannot go ahead with the project. “We have not got the requisite funds from the government. Only when the funds are deposited with the land acquisition officer, can we start the process of land acquisition. We also need to appoint a consultant for the technofeasibility study,” said general manager of MADC Ramesh Yaul.
The MADC plans to acquire 3,365 hectares instead of the original plan of 2,565 hectares for the airport project for which 1,500 hectares would be used for the airport, cargo space, maintenance and hangars. While 500 hectares would go back to landowners as part of the state government’s rehabilitation policy, the remaining 1,300 hectares would be utilised for development projects.
The MADC which got the development rights from Maharashtra Industrial Development Corporation (MIDC) a year back will now have to re-acquire the land under the Land Acquisition Act 1894 which would again be a cumbersome process. An MADC official said the entire process of re-acquiring land and development of the project after a techno-feasibility study would take at least three years which would of course cross the deadline put forth by the civil aviation minister. “Even re-acquiring land would increase the costs that is estimated over Rs 1,000 crore,” said Yaul. “The techno-feasibility report which will be prepared by the consultants requires an approval from the Aviation and Environment Ministries,” said Yaul. The project is to come up three kms from Rajgurunagar at Chandoos, Shiroli, Waki Budruk, Koregaon Budruk, Kiwle, Pimpri Thakur and Wadgaon.
1.4.09
Volkswagen Chakan plant inaugurated
German auto major Volkswagen’s plant in Chakan was inaugurated on Tuesday signifying one of the largest investment commitments of Rs 3,800 crore in the country.
Spread across 575 acres, the Chakan plant will start production of the Skoda Fabia compact car from May and the hatchback version of the Volkswagen Polo, especially developed for the Indian market, from 2010. The plant, ready in 17 months, has a maximum annual production capacity of 1,10,000 vehicles to cater to the Indian market. Speaking on the occasion, Jochem Heizmann, member of the board of Volkswagen AG said despite economic slowdown the Indian auto market has enormous potential. “India too is feeling the effects of the global financial crisis. The growth of the local automobile market has slowed down since the second half of 2008. But experts point out that there will be strong growth from 1.2 million vehicles at the moment to over two million in the next five years,” he said. He said apart from Skoda Fabia, Volkswagon Polo, especially designed for India, would start production from the Chakan plant. “By 2010, the plant will bring work for around 2,500 people. Many more jobs will be created at the suppliers region and a very high degree of localisation is a crucial success factor here. We are working hard to set up an efficient and innovative local supplier industry,” he said. Christian Matthias Sehlaga, German acting Ambassador, said India is a good place for doing business with a capable work force.
“Indo-German working group will be set up for the automotive sector. The investment made by Volkswagen will encourage German companies to invest in the country,” he said.
Jorg Muller, president and managing director Volkswagen India Private Limited, said the company has not set any target and the production of cars from the Pune facility would be based on the market demand. “The Beetle will be launched in the Indian market by the end of next year. We plan to attain a market share of 8 to 10 per cent in the next five years,” he said.
Maharashtra Governor S C Jamir, who was also present at the function, said in times of global slowdown the Indian government has taken proactive steps to protect the interest of automotive sector. “About 30 special economic zones are planned in the state and Volkswagen will serve as a catalyst for the development of others sectors as well,” he said.
Spread across 575 acres, the Chakan plant will start production of the Skoda Fabia compact car from May and the hatchback version of the Volkswagen Polo, especially developed for the Indian market, from 2010. The plant, ready in 17 months, has a maximum annual production capacity of 1,10,000 vehicles to cater to the Indian market. Speaking on the occasion, Jochem Heizmann, member of the board of Volkswagen AG said despite economic slowdown the Indian auto market has enormous potential. “India too is feeling the effects of the global financial crisis. The growth of the local automobile market has slowed down since the second half of 2008. But experts point out that there will be strong growth from 1.2 million vehicles at the moment to over two million in the next five years,” he said. He said apart from Skoda Fabia, Volkswagon Polo, especially designed for India, would start production from the Chakan plant. “By 2010, the plant will bring work for around 2,500 people. Many more jobs will be created at the suppliers region and a very high degree of localisation is a crucial success factor here. We are working hard to set up an efficient and innovative local supplier industry,” he said. Christian Matthias Sehlaga, German acting Ambassador, said India is a good place for doing business with a capable work force.
“Indo-German working group will be set up for the automotive sector. The investment made by Volkswagen will encourage German companies to invest in the country,” he said.
Jorg Muller, president and managing director Volkswagen India Private Limited, said the company has not set any target and the production of cars from the Pune facility would be based on the market demand. “The Beetle will be launched in the Indian market by the end of next year. We plan to attain a market share of 8 to 10 per cent in the next five years,” he said.
Maharashtra Governor S C Jamir, who was also present at the function, said in times of global slowdown the Indian government has taken proactive steps to protect the interest of automotive sector. “About 30 special economic zones are planned in the state and Volkswagen will serve as a catalyst for the development of others sectors as well,” he said.
Marol finalised as NSG hub site in Maharashtra
After scouting several areas in and around the city along with the state police, the National Security Guard (NSG) officials have reached an understanding to set up the state’s NSG hub on a 23 acre land at Tungwe in Marol that is currently Maharashtra Police property, Mumbai Police Commissioner Hasan Gafoor said. “Several areas were surveyed and considered for the NSG hub including places in Kalyan and Dahanu. However, we have reached the final understanding that the NSG will be given a 23-acre area in Marol that is part of police property. We have given our No Objection to the state government, which will allot the land to the NSG. While the NSG had initially demanded a 150 acre plot for setting up the base, it was just not feasible,” said Gafoor. The new NSG chief NPS Aulakh was in the city a week ago to finalise the site selection. Two NSG officials have been permanently posted in the city to liaise with the city police for the entire process. “The other areas surveyed might have been larger, but they were located at a great distance from the airport. Those were not found suitable as the distance from the airport would have hampered the NSG’s response in times of any crisis,” said Gafoor. The site finalized is adjacent to the Maharashtra Police Training School in Marol, and is close to the domestic as well as the international airports. According to the Mumbai Police, the NSG is keen on setting up the hub before the monsoon sets in. “The NSG is very keen on starting construction as soon as possible, since it won’t be possible once the rains set in,” said Gafoor. Initially, land in Kalyan and Palghar were surveyed as likely sites for the NSG hub, besides land at the Juhu aerodrome. The Kalyan land was in possession of the defence forces and was part of a war-time aerodrome, while the 450-acre area in Palghar was ruled out due to its distance from the city. Land at the Juhu aerodrome was also considered, but it was part of the airport land.
IGI-New Delhi Railway station link snippets
The Delhi Airport Metro Express Link, a private public partnership between the Delhi Metro Rail Corporation and a consortium of Reliance Infrastructure and CAF, a Spanish company, is all set to meet its October 2010 deadline, after a financial closure was signed on Wednesday. Delhi Airport Metro Express Private Limited (DAMEPL), a special purpose vehicle created by Reliance Infrastructure and CAF, has managed to mobilise Rs 2,050 crore from 10 leading banks across the country. It will have to pay the money back within a period of 17 years, including the two years needed for the completion of the project. The loan includes a $55 million grant by the India Infrastructure Finance Company (IIFC) of Japan. The banks involved include Axis Bank (lead bank), Allahabad Bank, Andhra Bank, Axis Trustee Services, Bank of India, Dena Bank, Central Bank, UCO Bank and Canara Bank, a DMRC official said. “While civil work on the line will be carried out by the DMRC, rolling stock, signalling, telecom, automatic fare collection, track laying and other operations and maintenance will be taken care of by the Reliance consortium,” Anuj Dayal, DMRC spokesperson, said. “The Express line has been leased out to the consortium for a period of 30 years, following which it will revert to the DMRC,” he said. “The Concessionaire will be entitled to designing and constructing, or allowing the design and construction of shops, kiosks and the like within public areas of the New Delhi, Shivaji Stadium and Dhaula Kuan stations,” Dayal said.
Nearly 40 per cent work on the Express Link is complete and is slated to open for operations by October 2010. The 22.7-km-stretch will have five underground stations at the New Delhi Railway Station, Shivaji Terminus, NH-8, IGI Airport, Dwarka Sector 21, and an elevated station at Dhaula Kuan. “This will be one of three lines that are being built using standard gauge and the alignment will go under the Rajiv Chowk Metro Station,” Dayal said.
A multi-level parking facility will come up at New Delhi station on an area of 9,000 sq m, and it will be integrated with the Metro station. A seven-floor parking will be developed and the first two floors are likely to be used as check-in areas for passenger facilitation and concourse.
Nearly 40 per cent work on the Express Link is complete and is slated to open for operations by October 2010. The 22.7-km-stretch will have five underground stations at the New Delhi Railway Station, Shivaji Terminus, NH-8, IGI Airport, Dwarka Sector 21, and an elevated station at Dhaula Kuan. “This will be one of three lines that are being built using standard gauge and the alignment will go under the Rajiv Chowk Metro Station,” Dayal said.
A multi-level parking facility will come up at New Delhi station on an area of 9,000 sq m, and it will be integrated with the Metro station. A seven-floor parking will be developed and the first two floors are likely to be used as check-in areas for passenger facilitation and concourse.
India’s capital account turns negative for first time in 10 years
For the first time since the first quarter of 1998-99, India's capital account balance turned negative during the third quarter of 2008-09 mainly due to net outflows under portfolio investment, banking capital and short-term trade credit. In simple terms, it means India witnessed an outflow of funds through various channels during the period. Moreover, the current account deficit -- the difference between exports and imports — at $14.6 billion during Q3 of 2008-09 was the highest quarterly deficit since 1990. Capital account balance — the net result of public and private international investment including FDI, FII and bank accounts flowing in and out of a country — turned negative showing outflows of $ 3.7 billion during the Q3 of 2008-09 for the first time since Q1 of 1998-99 mainly due to net outflows under portfolio investment, banking capital and short-term trade credit, according to the Reserve Bank of India.
There were net inflows at $ 31.0 billion during Q3 of 2007-08, thanks to high FDI and FII investments. But the tide turned unfavourable since October 2008 as the global financial crisis and the market turmoil led to outflows. The RBI said gross capital inflows to India during Q3 of 2008-09 amounted to $70.0 billion ($127.3 billion in Q3 of 2007-08) as against gross outflows from India at $73.6 billion ($ 96.3 billion in Q3 of 2007-08). “Other components of the capital account which recorded a fall during the quarter were inflows and outflows under foreign direct investment and external commercial borrowings, while inflows under short-term trade credit also declined during the quarter,” it said. “On account of large trade deficit and with moderate increase in net invisibles, the current account deficit rose sharply to $ 14.6 billion in Q3 of 2008-09 ($ 4.5 billion in Q3 of 2007-08). This level of CAD was the highest quarterly deficit since 1990,” the RBI said.
Private transfer receipts, comprising mainly remittances from Indians working overseas, declined marginally from $ 10.93 bn to $ 10.54 bn during Q3 of 2008-09. Software services receipts, on the other hand, increased by 11.8 per cent during the quarter. Private transfers are mainly in the form of inward remittances from Indian workers abroad for family maintenance, local withdrawal from NRI rupee deposits, gold and silver brought through passenger baggage and personal gifts/donations to charitable/religious institutions.
According to the RBI, private transfer receipts increased to $ 36.9 billion in April-December 2008 from $ 29.3 billion in the corresponding period of the previous year Invisibles payments also recorded a marginal negative growth of 2.1 per cent during Q3 of 2008-09 mainly led by sharp decline in payments under travel, software and business services account. There was also a marginal decline in payments under investment income in the form of interest payments and dividends.
There were net inflows at $ 31.0 billion during Q3 of 2007-08, thanks to high FDI and FII investments. But the tide turned unfavourable since October 2008 as the global financial crisis and the market turmoil led to outflows. The RBI said gross capital inflows to India during Q3 of 2008-09 amounted to $70.0 billion ($127.3 billion in Q3 of 2007-08) as against gross outflows from India at $73.6 billion ($ 96.3 billion in Q3 of 2007-08). “Other components of the capital account which recorded a fall during the quarter were inflows and outflows under foreign direct investment and external commercial borrowings, while inflows under short-term trade credit also declined during the quarter,” it said. “On account of large trade deficit and with moderate increase in net invisibles, the current account deficit rose sharply to $ 14.6 billion in Q3 of 2008-09 ($ 4.5 billion in Q3 of 2007-08). This level of CAD was the highest quarterly deficit since 1990,” the RBI said.
Private transfer receipts, comprising mainly remittances from Indians working overseas, declined marginally from $ 10.93 bn to $ 10.54 bn during Q3 of 2008-09. Software services receipts, on the other hand, increased by 11.8 per cent during the quarter. Private transfers are mainly in the form of inward remittances from Indian workers abroad for family maintenance, local withdrawal from NRI rupee deposits, gold and silver brought through passenger baggage and personal gifts/donations to charitable/religious institutions.
According to the RBI, private transfer receipts increased to $ 36.9 billion in April-December 2008 from $ 29.3 billion in the corresponding period of the previous year Invisibles payments also recorded a marginal negative growth of 2.1 per cent during Q3 of 2008-09 mainly led by sharp decline in payments under travel, software and business services account. There was also a marginal decline in payments under investment income in the form of interest payments and dividends.
Sensex lost 38% in '08-'09
The last day of the financial year 2008-09 — March 31 — turned out to be bullish for Dalal Street with the Sensex rising 140 points, or 1.47 per cent, at 9,708.50. However, during the financial year ended March 31, 2009, the Sensex lost 5,936 points, or 38 per cent, from 15,644.44 recorded on March 31, 2008. The global financial crisis, meltdown in equity markets and huge selling by foreign investors contributed to this huge erosion in equity valuations during the fiscal. It was not all that bad. The BSE Sensex clocked its first quarterly gain in the January-March period since 2007, as easing concerns about the global economy revived investor appetite and sparked a worldwide rally in March. In the quarter ended March 2009, the Sensex rose 61.19 points or 0.63 per cent from 9,647.31 on December 31, 2008. It was Sensex's first quarterly gain since the December 2007 quarter. The Sensex rose 9.2 per cent in March, its first gain in three months and the best show since last April.
Investor wealth also eroded in a big way. The combined market valuation of all the listed companies per cent or market capitalisation per cent in the country dropped to Rs 30,86,100 crore on Monday as against Rs 49,73,000 crore on March 31, 2008, leading to a loss of around Rs 18,87,000 crore during the period. Reliance Industries alone saw an erosion of close to Rs 89,460 crore in its market cap during the fiscal ended March 31, 2009.
The Sensex was one of the top five performers among major indices in the world, but well below China’s 30 per cent jump. Automakers Maruti Suzuki and Mahindra & Mahindra powered the quarterly rise as lower interest rates pushed their sales up even in the face of a slowing economy. Energy giant Reliance Industries, which has the biggest weight in the main index, was another major market mover as it gets set to pump gas from its field off India’s east coast.
Investor wealth also eroded in a big way. The combined market valuation of all the listed companies per cent or market capitalisation per cent in the country dropped to Rs 30,86,100 crore on Monday as against Rs 49,73,000 crore on March 31, 2008, leading to a loss of around Rs 18,87,000 crore during the period. Reliance Industries alone saw an erosion of close to Rs 89,460 crore in its market cap during the fiscal ended March 31, 2009.
The Sensex was one of the top five performers among major indices in the world, but well below China’s 30 per cent jump. Automakers Maruti Suzuki and Mahindra & Mahindra powered the quarterly rise as lower interest rates pushed their sales up even in the face of a slowing economy. Energy giant Reliance Industries, which has the biggest weight in the main index, was another major market mover as it gets set to pump gas from its field off India’s east coast.
WB, ADB, OECD see India growth at 4-5 pc
India's economy will expand at the slowest pace in seven years with the World Bank, Asian Development Bank and a grouping of developed nations expecting growth to be knocked down to 4-5 per cent in 2009-10. There is also little chance of the global economy staging a recovery during this year, although it might be able to stand up on its feet in 2010. In its global economic forecast update for 2009, the World Bank projected a growth rate of 4 per cent for India during 2009-10, while the Asian Development Bank (ADB), in its outlook, expects the economy to expand by 5 per cent. A separate outlook by Organisation for Economic Cooperation and Development (OECD), a club of developed countries, has forecast 4.3 per cent growth rate for India. India had last grown below this level in 2002-03, when the economy expanded by 3.8 per cent. A likely recovery in global economy next year may push India's growth rate in fiscal 2010-11 to 7 per cent (WB forecast) and 6.5 per cent (ADB projection). Before the financial crisis hit the global economy, India had been recording a growth rate of nine per cent or more. As far as 2008-09 ending today is concerned, the growth estimates vary from 5.5 to 7.1 per cent. The ADB’s forecast for 2008-09 is 7.1 per cent, with downside risks — the same as the one estimated by the Central Statistical Organisation (CSO). “In the large emerging economies, activities are slowing as access to international credit dries up, commodity prices fall and export demand weakens,” said the Interim Economic Outlook released by the OECD. Pointing out that the economic growth in India will ease to 4.3 per cent this year, the Outlook said that China is likely to grow by 6.3 per cent.
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