Railways to allow private companies to run own freight trains
Indian Railways will soon allow private companies to run freight trains from their own private terminals, a move which could potentially break the monopoly of the national transporter on the country’s rail roads. Companies from sectors such as cement, steel, auto, logistics, grains, chemicals and fertilisers have evinced interest in having their own fleet under the special freight train operations scheme of the railways, a senior rail official said. “Through these private terminals, we’ll be able to add almost 20-25 million tonnes of additional loading capacity.
Real estate sector gets 19 investments worth $3.4 billion in first quarter
Indian real estate is now becoming way more attractive to investors — both foreign and domestic — than ever before, thanks to changes in regulatory framework. The global capital flow into Indian real estate in 2016 stood at about $5.7 billion. Though the historic high of 2007, in terms of total PE inflows, was not breached, last year proved to be the second best year so far. This year has also started with a bang as real estate companies and projects attracted 19 investments totaling an announced value of $3.41 billion in the first quarter ended March.
NITI Aayog finalising 3-year action plan
The NITI Aayog is at an advanced stage of finalising 3-year action plan and the 15-year vision document for the country, Parliament was informed today. It will also unveil a 7-year strategy document. The government had decided to do away with the practice of preparing annual budgets on the basis of 5-year plans from the current fiscal. Financial year 2016-17 was the terminal fiscal of the 12th Five Year Plan (2012-17). “The three-year action plan along with 7-year strategy and 15-year vision document is at an advanced stage of finalization.”
Source: The Hindu Business Line
Flipkart raises $1.4 billion from eBay, Microsoft, Tencent, acquires eBay India
India’s largest online retailer Flipkart has closed a mammoth funding round of $1.4 billion from Tencent Holdings Ltd, eBay Inc. and Microsoft Corp., in the biggest-ever start-up funding round that both boosts Flipkart ability to compete with arch-rival Amazon India and takes the company a step closer to presenting itself (to investors and customers) as the only option to the US firm’s Indian arm. Flipkart Ltd will also buy eBay’s India business as part of the $1.4 billion deal. The funding round values Flipkart at $11.6 billion, which is lower than its peak valuation of $15 billion but still higher than the valuation it was assigned by some of its own investors last year.
TDSAT defers hearing on Jio offer case to April 20
Telecom tribunal TDSAT on Monday deferred the hearing to April 20 on a plea challenging a Trai order that allowed free 4G service offers of Reliance Jio beyond stipulated 90 days. The plea moved by Bharti Airtel and Idea Cellular against the Trai order was listed for a hearing today. Jio had launched the inaugural free voice and data plan in September last year, and in December, extended the freebies till March, 2017. Following this, existing players Airtel and Idea moved the tribunal against the Trai order allowing Mukesh Ambani-led telecom company to provide free services beyond the stipulated 90-day period.
Govt reduces number of centrally sponsored schemes to 28
The Government has reduced the number of centrally sponsored schemes (CSS) to 28 umbrella schemes from 66, Parliament was informed today. “Based on the recommendation of the sub-group of Chief Ministers on rationalisation of centrally sponsored schemes, the government of India has rationalised centrally sponsored schemes (CSS) effective from the financial year 2016-17. “The schemes of CSS have been reduced from 66 to 28 umbrella schemes,” Minister of State (Independent Charge) for Planning Rao Inderjit Singh said in a written reply to the Rajya Sabha.
No proposal to review FDI policy in multi-brand retail: Govt
The government today said there is no proposal under its consideration to review the foreign direct investment (FDI) policy in the multi-brand retail sector. “No proposal is under consideration of the government to review the extant FDI policy on multi-brand retail,” Commerce and Industry Minister Nirmal Sitharaman said in a written reply to the Lok Sabha. The current foreign direct investment policy permits overseas players to hold 51 per cent stake in an Indian retail company. So far, only one foreign player, Tesco, has received approval for opening stores under the multi-brand retail policy.
Source: The Hindu Business Line
FireEye Says China-Based Hacker Group Now Targeting Firms in India
Raising an alarm for the IT service providers and manufacturing companies in India, US-based cyber-security group FireEye has claimed that a new set of tools is being used by China-based cyber espionage group APT10 to steal confidential business data from domestic firms to support Chinese corporations. FireEye has been tracking APT10 since 2009 and they have historically targeted construction, engineering, aerospace, telecom firms and governments in the US, Europe and Japan.
India is one of world’s most expensive stock markets
With the earnings season about to start, the chart illustrates why the fate of the Indian markets depends on the ability of Q4 earnings to beat expectations. As the chart shows, the Indian market is one of the most expensive in the world, immediately after the US, according to estimates from Citi Research. At the current forward price-earnings multiple, the valuation for the Indian market is well above its mean. To be sure, abundant liquidity, both from foreign and domestic investors, has been driving up stocks. As the outlook for investment in real estate and gold has faded, investors have switched to equities.
India is losing faith in free-trade agreements
Till fairly recently, it looked like two massive new agreements would compete to define the future of world trade. The Trans-Pacific Partnership, backed by the US, would try to move the global trade architecture toward new norms, with harmonized regulations at its centre. Meanwhile, the Regional Comprehensive Economic Partnership (RCEP), backed by China, would drastically reduce remaining tariffs across a swathe of Asia and push the existing model of trade and manufacturing as far as it could go. The TPP is now history, thanks to Donald Trump. But the RCEP can’t exactly declare victory yet. The 16 countries involved—China, Japan, Korea, Australia, New Zealand and much of Southeast Asia—have discovered a familiar hurdle in their path: India.
HDFC Bank to raise Rs 50,000 crore in the next 12 months
Private sector lender HDFC Bank said it will raise Rs50,000 crore within a year by issuing debt instruments. The Bank proposes to raise funds by issuing perpetual debt instruments (part of additional tier I capital), tier II capital bonds and senior long-term infrastructure bonds up to a total amount of Rs50,000 crore, the bank said in a regulatory filing. Perpetual bonds carry no maturity date, so they may be treated as equity, not as debt. The bank did not mention what purpose it will utilise the funds to be raised. It said the money will be raised in the period of next 12 months through private placement mode.
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