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India Legal Update Jan 2012 India Legal Update In This Issue....
Lafarge Decision- Light at the end of the tunnel?
Whether Competent Authority is empowered re-write a fresh award by nullifying the earlier award
NewsQuest: News and Views from India
Synapse: S&P's some new Projects Read More...Nov 11 India Legal Update In This Issue....
Foreign Currency Convertible Bonds (FCCB) – Options to Tackle Redemption Woes
Reference to Arbitration after Final Settlement: Parameters of Courts
NewsQuest: News and Views from India
Synapse: S&P's some new Projects
Read More...Oct 2011 India Legal UpdateIn This Issue....
Enforceability of Employee Non-Compete Covenants
Supreme Court - Scheme of Amalgamation
NewsQuest: News and Views from India
Synapse: S&P's some new Projects
Read More...Aug 2011 India Legal UpdateIn This Issue....
Fast Track Exit Scheme for Companies
Scope of inquiry under amended section 202(1) of Cr.Pc
NewsQuest: News and Views from India
Synapse: S&P's some new Projects
Read More...March 2011 - India Legal UpdateIn This Issue....
Regulatory Challenges in the Major Ports-Need to Act Now
CAT- on appointment of legal heirs
NewsQuest: News and Views from India
Synapse: S&P's some new Projects Read More...Jan 2011 - India Legal UpdateIn This Issue....
Can India become the Food Basket of the World?
FOOD LAWS – are we finally there?
The Central Legislature can enact laws with regard to the stretches of National Highways even within municipal areas
NewsQuest: News and Views from India
Synapse: S&P's some new Projects Read More...May 2011 India Legal UpdateIn This Issue....
Vodafone scheme of arrangements crashes – courts adopt contradictory approaches
Can judgments from foreign courts be enforced in India?
NewsQuest: News and Views from India
Synapse: S&P's some new Projects Read More...Dec 2010 - India Legal UpdateIn This Issue....
Catapulting India’s Economic Growth to the Next Orbit
Nuclear Power: Legal Framework and Basics of the Nuclear Liability Act
Appointment of Arbitrator - An Exception by Supreme Court
To obtain or not to obtain PAN - a Catch-22 situation for Non Residents
NewsQuest: News and Views from India
Synapse: S&P's some new Projects Read More...Sep 2010 - India Legal UpdateIn This Issue....
Competition Commission of India
The Duration Test: Qualifying as a Permanent Establishment in India
International arbitration: Enforcement of Foreign Awards
NewsQuest: News and Views from India
Synapse: S&P's some new Projects Read More...May 2010 - India Legal UpdateIn This Issue....
India set to break the Double-digit Growth Barrier
Special Economic Zones Legal Framework, Fiscal Benefits, and Recent Developments
Public Private Partnership and Article14 Basic principles underpinning judicial intervention
A Case of Territorial Jurisdiction
NewsQuest: News and Views from India
Synapse: S&P's some new Projects Read More...Jan 2010 - India Legal UpdateIn This Issue....
New Business Laws Open Exciting Opportunities in India
Limited Liability Partnership: Welding the best in a Company and Partnership Firm
New Provisions in Competition Act to Rein Predatory Pricing and Abuse of Dominance
S&P wins the day for National Highway Authority of India
NewsQuest: News and Views from India
Synapse: S&P's some new Projects Read More...Nov 09 - India Legal UpdateIn This Issue....
India’s Economic Growth Offers Premium Opportunities
New Guidelines for Public Private Partnerships
Court Room: A recent judgment wherein a Contractor had challenged its disqualification under a tender process for a highway project, the Hon’ble Delhi High Court held that adherence to the instructions under the tender document cannot be given a go by and dismissed the writ petition filled by the Contractor
NewsQuest: News and Views from India
Synapse: S&P's some new Projects Read More...India Infrastructure Update October 2011- India Infrastructure Update In This Issue....
Resurgence of EPC Model
Updates on...
-Roads & Highways
-Renewable Energy
-Power, Oil & Gas
-Airports & Ports
-Project Finance
-Railways
Read More...November 2011- India Infrastructure Update In This Issue....
‘Draft’ National Public Private Partnership Policy
Updates on...
-Roads & Highways
-Renewable Energy
-Project Finance
-Railways
Read More...January 2012- India Infrastructure UpdateIn This Issue....
Supersession of Contractual Rights by Change in Policy: The Judgment in the Case of APM Terminal vs. Union of India
Updates on...
-Roads & Highways
-Renewable Energy
-Oil & Gas
-Mining
-Airports & Ports
-Railways
-Project Finance
-Power
Read More...May 2011- India Infrastructure UpdateRead More...June 2011- India Infrastructure UpdateRead More...April 2011- India Infrastructure UpdateRead More...March 2011- India Infrastructure UpdateRead More...July 2011- India Infrastructure UpdateRead More...India Intellectual Property Update January 2012 - India Intellectual Property Update In This Issue....
John Doe-Remedy against Infringement by an unidentified person
IP UPDATES Read More...December 2011 - India Intellectual Property Update In This Issue....
Trade Mark- Infringement vis-a-vis Passing off
IP UPDATES / CASE LAWS
Read More...October 2011 - India Intellectual Property UpdateIn This Issue....
Patents - Invention Disclosure - Bane or Boon
IP CASE LAW
IP NEWS UPDATES
Read More...September 2011 - India Intellectual Property Update In This Issue....
Acquiescence is inconsistent with the claim for exclusive rights for trademark
No action for passing off in absence of goodwill of a trademark
IP NEWS UPDATES
Read More...August 2011- India Intellectual Property UpdateIn This Issue....
Proposed Amendments to the Indian Copyright Law
IP CASE LAW
IP NEWS UPDATES
Read More...June 2011- India Intellectual Property UpdateIn This Issue....
IP CASE LAW
IP NEWS UPDATES
Read More...India Defence Update Sep 2011 India Defence UpdateIn This Issue....
Policy on agents in defence procurements – a dilemma for foreign vendors
NEWS UPDATES
- National
- International
Read More...Oct 2011 India Defence Update In This Issue....
Defence Procurement Procedure, 2011 –An Overview
NEWS UPDATES
- National
- International Read More...December 2011 India Defence Update In This Issue...
Balancing Opposing Interests-FDI in Indian Defence Sector
NEWS UPDATES
- National
- International
The Year 2011 for Indian Defence: A Review
NEWS UPDATES
- National
- International
Case Studies Proctor & Gamble V/S Joy Creators and OthersIn order to constitute infringement it is not necessary that impugned trademark should be an absolute replica of the registered trademark. Punitive damages are founded on the philosophy of corrective justice.
Read More...GE INDIA TECHNOLOGY CENTRE PRIVATE LTD. VS COMMISSIONER OF INCOME TAX & ANRPayments to a non-resident or foreign company will be subject to deduction of Tax at Source under section 195 (1) of the Income Tax Act, 1961 only if the sum payable is “chargeable to tax” in India in the hands of the non-resident or foreign company.
Read More...Iridium India Telecom Ltd. vs. Motorola Inc. and Ors.A company/corporation is virtually in the same position as any individual and may be convicted of offences including those requiring mens rea. A company/corporation cannot escape liability for a criminal offence merely because the punishment prescribed is that of imprisonment and fine.
Read More...Intellectual Property Case Laws
- The Delhi High Court in the matter of Champagne Moet and Chandon (“Petitioner”) vs. Union of India and Ors. (“Respondents”), W.P. (C) 9778 of 2006, has held that same trademarks can be registered for different classes of goods.
- The Delhi High Court passed interim orders in the copyright infringement lawsuit filed by Sholay Media & Entertainment Pvt. Ltd. & Anr. (“Plaintiff”) against Vodafone Essar Mobile Services Ltd. & Ors. (“Defendant”), CS (OS) No. 490/2011, regarding the sale and distribution of ringtones of songs from the Bollywood movie Sholay.
- In the case between Gorbatschow Wodka KG v. John Distilleries Limited, the shape of the bottle of Vodka gave rise to the controversy.
Read More...RICHTER HOLDINGS LTD vs. ASSISTANT DIRECTOR OF INCOME TAXIn case a non-resident company claims that purchase of shares of an Indian company from another non-resident company does not amount to transfer of capital asset, it may be necessary to lift corporate veil to look into real nature of transaction to ascertain vital facts.
Read More...Arbitral Awards: calculating the period of limitationsDoes the period of limitation for making an application to set aside an arbitral award (under section 34 of the Arbitration and Conciliation Act, 1996) begin from when a party receives a copy of the award by any means and from any source or from the date the arbitrator delivers a signed copy of the award?Read More...S.E INVESTMENTS LTD V. UNION OF INDIA & ORS W.P. (C) 2393/2010 & CM APPLNo person can be taxed by implication. Before taxing any person, it must be shown that he falls within the ambit of the charging section by clear words.
Read More...Arbitral awards: calculating the period of limitationsDoes the period of limitation for making an application to set aside an arbitral award (under section 34 of the Arbitration and Conciliation Act, 1996) begin from when a party receives a copy of the award by any means and from any source or from the date the arbitrator delivers a signed copy of the award? Amalgamations: court no judge of commercial wisdomRuling in Sesa Industries Ltd v Krishna Bajaj & Ors, the Supreme Court recently held that a scheme of amalgamation should not be held up merely on the ground that the conduct of an official liquidator is found to be blameworthy. GUFFIC CHEM P. LTD. VS. C.I.T., BELGAUM AND ANR.(2011 (3) SCALE 595)“Compensation received for the loss of agency is a revenue receipt whereas the compensation attributable to a negative/restrictive covenant is a capital receipt.”
Read More...No anti-competitive practices by banks in home loan sectorRuling in Neeraj Malhot ra v Deutsche Post Bank Home Finance Limited, the Competition Commission of India (CCI) recently gave its first final decision under the Competition Act, 2002. In it the CCI held that “the prepayment charges levied by banks on home loans do not fall foul of competition law”. The question considered by the CCI was whether the decision taken by Indian Banks Association (IBA) on prepayment charges on home loans amounted to agreement (as defined under section 2(b) of the act) having an appreciable adverse effect on competition under section 3 of the act. In addition the CCI considered if the respondents had abused their dominant positions, which would violate section 4 of the act.Read More...Public issue of securities: SIRECL v SEBI – an analysis Two unlisted companies, Sahara India Real Estate Corporation (SIRECL) and Sahara Housing Investment Corporat ion Limi ted (SHICL), were raising funds by way of a private placement through optionally fully convertible debentures (OFCDs). They filed a red herring prospectus with the registrar of companies of Uttar Pradesh. Another Sahara group company, Sahara Prime City, filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an initial public offering. SEBI received complaints that SIRECL and SHICL had issued OFCDs in violation of statutory norms and issued a notice to their merchant banker calling for certain information relating to the debentures. Subsequently, on 24 November 2010, SEBI banned the Sahara group from raising money from the public for allegedly violating public issue norms.Read More...Applying globally part I of the Arbitration ActInternational commercial arbitrations often involve cases where the law that governs the contract is defined by the parties, but the law that governs the arbitration and its conduct is left open. How are such international arbitrations dealt with and under which law are they conducted? Recently, these questions arose before the Supreme Court in Citation Infowares Limited v Equinox Corporation. This case dealt with the jurisdiction of the Indian courts to entertain applications for the appointment of an arbitrator under the Arbitration and Conciliation Act, 1996, where the arbitration agreement did not provide for a venue or the law applicable to such arbitration although the contract was to be governed by foreign laws.Read More...No claim certification does not relinquish claims Recently in RL Kalathia and Co v State of Gujarat the Supreme Court of India reiterated that merely because a contractor has given a “no dues certificate”, and has signed and accepted bills prepared by the state government, he cannot be estopped from filing suit. This decision may come to lessen the coercive tactics of the government departments.Read More...Convention on arrest of ships: applicability in India Th ro u g h t h e I n t e r n a t i o n a l Convention Relating to the Arrest of Sea-Going Ships, 1952, and the more recent International Convention of Arrest of Ships, 1999, (the Geneva convention) the United Nations has strived to bring about parity between the posing interests of maritime claimants and ship owners. As such, while the right to arrest a ship is the single most valuable tool in enforcing maritime claims and recovering debts against ship owners and operators, it is essential that a wrongful arrest, attachment, or injunction does not interrupt legitimate trading. The following case exemplifies the dichotomy between these two opposing groups.Read More...News Rs. 500 cr may be set aside in 12th Plan to build secure networkAs part of the 12th Five-Year Plan starting in April, the government is likely to set aside around Rs. 500 crore towards connecting government offices across the country via optical fibre cable (OFC) to ensure that key administrative units and other essential departments are not cut off in the case of a natural disaster or other emergencies, two officials in the department of telecommunications (DoT) said.Read More...CII for more clarity in nuclear damage lawThe Confederation of Indian Industry wants clarity in some clauses of the Civil Liability for Nuclear Damage Act, 2011.Welcoming the notification of implementation rules, the CII said a framework is in place for the first time, instituting strict liability for the operator who has to pay damages of up to Rs 1,500 crore. A balanced legislation would send the right signals to investors and suppliers and expedite the country’s nuclear power programme, it said.Read More...Riders on car imports from EUThe import duty relaxation for luxury cars from the European Union (EU) under the proposed India-EU free trade agreement will come with riders, including a cap on the number of cars allowed to enter the Indian market from Europe by using the low tariff regime. The commerce ministry is actively considering a proposal to put country-wise caps on the number of cars that can be exported to India by the EU nations.Read More...SEBI cuts timeframe for buyback process to 44 daysMarket regulator SEBI has reduced the timeframe for completion of buyback of shares by companies to 34-44 days, a decision which could facilitate the government in getting closer to its ambitious disinvestment target of Rs 40,000 crore for the current fiscal.Read More...After 7 months wait, RBI allows FDI in LLPsThe Reserve Bank of India has agreed to notify foreign direct investment rules in limited liability partnerships, a form of business organization that is popular globally but has not taken off in India.Read More...SEBI asks merchant bankers to disclose track record of public issuesWith a view to enable investors to take well-informed investment decisions, regulator SEBI on Tuesday directed merchant bankers to disclose the track record of the performance of the public issues managed by them.Read More...TRAI proposes Rs 20 cr entry fee for unified licenceThe Telecom Regulatory Authority of India (TRAI) has suggested Rs 20 crore as the entry fee for pan India unified licence. Though this licence will not have any spectrum bundled with it, companies will be able to offer all types of services across the country.Read More...Budget may tax power gear importsImport duty may be hiked on power generation equipment for projects above 1,000 MW capacity in the coming Budget. Currently, imported equipment for such projects attract 5 per cent duty.Read More...Banks stop giving term loans to poor women-members of self-help groupsPoor women-members of Self Help Groups (SHGs) will not be able to get any term loans from banks, thanks to a circular from the Finance Ministry. Though cash credit will be sanctioned to SHGs in the ratio of 1:4 of their savings of five years, it would mean a quantum dip in credit flow to them, say experts.Read More...TRAI wants operators to report revenues separately for different servicesThe Telecom Regulatory Authority of India has suggested that operators should disclose revenues from each stream of business separately. While telecom companies are already required to separately report revenue from broad service categories, TRAI now wants reports on income from services such as 3G, tower business, Internet Protocol TV and multimedia messaging.Read More...Sebi may ask merchant bankers to monitor end-use of IPO moneyInvestment bankers generally laugh all the way to the bank once shares get listed on the bourses, but they may have to hang around a bit longer. The Securities and Exchange Board of India (Sebi) is planning to make the bankers managing an issue responsible for the end-use of issue proceeds.Read More...Pension regulator raises commission charges for NPSThe Pension Fund Regulatory and Development Authority (PFRDA) on Monday revised the charges to be taken from private sector subscribers under the New Pension Scheme (NPS). A first-time subscriber is to be charged Rs 100 for registration and a transaction charge of 0.25 per cent of the initial contribution amount. This ad valorem transaction charge is subject to a minimum of Rs 20 and a maximum of Rs 25,000. In any subsequent transaction involving a contribution upload, the NPS subscriber would be charged 0.25 per cent of the amount subscribed, subject to a minimum of Rs 20 and a maximum of Rs 25,000.Read More...New railway policy to attract private participationFacing a huge backlog of pending projects worth Rs 1 lakh crore, Railways is planning to opt for build, operate and transfer (BOT) model as part of a new investment policy to attract private participation in rail connectivity and capacity augmentation projects.Besides BOT, cost sharing model for doubling and multiple line projects will also be a part of the new Railway policy.Read More...New National Steel Policy by fiscal-endA new National Steel Policy will be unveiled by the end of FY12, replacing the existing framework announced in November, 2005, a Steel Ministry official said."The National Steel Policy will come by the end of the current fiscal," the official, requesting anonymity.Read More...Railways moots regulator for monitoring tariffThe Indian Railways has now favoured an independent regulator to look after its operations and ressurect its financial weaknessses. Railway minister Dinesh Trivedi went against the stand taken by two of his predecessors suggesting that a regulator could be the right option to depolitise the policies followed for the national transporter.
? Read More...DoT Wants LawMin to Decide Dates for One-time FeeAfter deciding to impose onetime charge retrospectively on 2G airwaves awarded to telcos in the past,the telecoms department now wants the law ministry to decide on the dates from which these charges are applicable. Read More...Morgan Stanley Facebook Role May Cement IPO Lead for Third Year.Morgan Stanley may cement its status as the top underwriter for U.S. initial public offerings for a third year running with its lead role on Facebook Inc.'s planned $5 billion sale Read More...SEBI notifies institutional placement normsSEBI has notified an institutional placement programme that would enable companies to raise their minimum public shareholding to the stipulated 25 per cent. Read More...New valuation norms hit structured products The Securities and Exchange Board of India (Sebi) made it mandatory for issuers of such products to appoint a third-party valuer from among credit rating agencies registered with the regulator. The valuer will have to publish the value of the securities on its website at least once a week and also provide it to the issuer.Read More...Uniform packaging, weight for 19 products from July 1? Nineteen products, mostly in FMCG and food categories, will have to be only sold in specified uniform standard packaging and weight from July 1.Through a recent amendment of the Packaged Commodities Rules, 2011, under the Standards of Weights and Measures Act, 1976
Read More...Telecom dept kicks off process for 4G auctionsA year and a half after it raised over R1 lakh crore through 3G spectrum auctions, the government is dipping into the wireless pool yet again, this time 4G spectrum in the 700 MHz band. Besides ushering in blazing fast data speeds, the move could also help raise non-tax revenues for the cash-strapped government. The auctions may be completed in 2012-13.Read More...Supreme Court Judgment on 2G- An Analysis The Hon’ble Supreme Court on 02.02.2012 allowed the Writ Petitions challenging the issuance of award of telecom licenses in January 2008 by former telecom minister A Raja and ordered cancellation of all the 122 Unified Access Service licences (“UAS”). The Supreme Court raised important issues, which are..Read More...FDI by foreign airlines may be allowed soonIn an encouraging step for domestic civil aviation sector, a group of key ministers on 17th January, 2012 took a policy decision to allow foreign airlines to invest up to 49% in domestic carriers. The proposal for Foriegn Direct Investment (FDI) up to 49% will now be sent to the Cabinet for its approval and if Cabinet approves the same, it will open the doors for foreign airlines to infuse equity in the domestic carriers.Read More...Joint Venture with Defence Public Sector Undertaking’s: Union Cabinet gives nod to guidelines The Union Cabinet on 8th Feb 2012 approved the guidelines for establishing joint venture companies by Defence Public Sector Undertakings (DPSUs). In the second part of the Kelkar committee’s report regarding recommendations on acquisition procedures and participation of private sector in defence production, submitted to Ministry of Defense (‘MOD’) in Nov 2005, the Committee had recommended that the Government should give greater freedom to the PSUs to form joint ventures and consortiums. In pursuance of the same in January 2011, Ministry of Defence issued the Defence Production Policy which allowed for adoption of all viable approaches such as formation of consortia, joint ventures and public private partnerships.Read More...Vodafone wins tax battle in Supreme Court In a much awaited tax dispute, The Supreme Court of India has today ruled that Indian tax authorities has no jurisdiction over the transactions taking place outside India and Vodafone is not liable to capital gains tax in India on such transactions. The Court has also directed the Income Tax Department to refund INR 2,500 Crores with 4% interest to Vodafone, the amount which Vodafone has already paid.Read More...India Strengthens Air Combat Capabilities The $20 billion Medium Multi-Role Combat Aircraft (MMRCA) deal to supply 126 fighters to India is won by the French jet Rafale on 31st Jan 2012. This shall involve Transfer of Technology (ToT) to Hindustan Aeronautical Limited (HAL). Under the MMRCA project, the first 18 jets will come in "fly-away condition" from France in mid-2015. Read More...
News Archives Govt changes norms to protect independent directorsIndependent directors will not be hauled up for the acts undertaken by companies without their consent or knowledge, as per the new norms announced by the government.
Read More...Mining FDI to be put on FIPB routeAfter telecom, ports and refineries, foreign direct investment (FDI) in more sectors could now be put under security scrutiny. The government is planning to slap new entry route restrictions on FDI in the mining and realty sectors from a security standpoint.
Read More...Union cabinet clears creation of National clean energy fundThe Union cabinet cleared the creation of a national clean energy fund that will finance green energy projects and research ventures aimed at reducing India's carbon footprint.
Read More...Govt changes norms to protect directorsIndependent directors will not be hauled up for the acts undertaken by companies without their consent or knowledge, as per the new norms announced by the government.
Read More...Financial sectors rules set for overhaul?A high-profile panel will begin on Tuesday deliberations for re-writing the entire financial sector rules of the country and evolving a better regulatory oversight system to check frauds and irregularities.
Read More...ICAI may propose fresh shares for subscribers of overpriced IPOsConcerned that scores of initial public offerings (IPOs) that hit the market of late appear to have been overpriced, the Institute of Chartered Accountants of India (ICAI) is considering recommending a formula for the companies to compensate their shareholders by doling out fresh shares. The ICAI might take up the matter with the finance ministry and Securities and Exchange Board of India
Read More...Companies need not pay stamp duty on increased capital: High Court - 25 April 2011The Delhi High Court has held that a company is not required to pay the stamp duty on the increased amount of its authorised share capital.A bench headed by justice S Muralidhar said this while allowing the plea of S E Investments, which challenged the direction of the Registrar of Companies (ROC) seeking stamp duty on increased amount in authorised share capital.
Read More...Cloud over Vodafone, Essar dealIt was supposed to be a done deal. When Vodafone announced last week that Essar had agreed to exit Vodafone Essar for $5 billion, everyone thought this would be the end of the long bitter dispute between the two partners.But it now transpires that the two are heading for a long legal battle.Essar is contemplating legal action against Vodafone for alleged violation of the shareholder agreement that governs the joint venture, people familiar with the development say. The arbitration proceedings may be initiated as early as next week. Some of the commercial disputes may be taken up in London as well.
Read More...Govt mulls allowing major ports to issue tax-free bondsAmong the various ways being considered by the central government to raise Rs 5,000 crore from tax-free bonds for shipping ports, one is to allow major ports to themselves issue these.
Read More...M&A rules from June 1 CCI scanner on takeoversThe government on April 8, 2011 stood firm on implementing the mergers and acquisition rules from June 1 that would put these takeovers under the scanner of fair-market watchdog, Competition Commission of India (CCI).
Read More...Govt likely to modify M&A rulesThe central government is likely to notify the merger and acquisition (M&A) rules meant to operationalise M&A provisions prescribed under the Competition Act, 2002 by mid-April. The M&A rules will lay down the procedures for administering the merger provisions that is to take effect from June 1.
Read More...Ramesh indicates softening of stand on No-GoEnvironment Minister Jairam Ramesh is understood to have softened his stand on issues related to coal mining in No-Go areas. At the same time, he maintained there was no question of reviewing the classification of ‘Go’ and ‘No-Go’ norms for coal mining, even as a Group of Minister (GoM) favoured that the issue be tackled on case-by-case basis for now.
Impasse over Cairn-Vedanta deal to continueThe impasse over the controversial $9.6-billion Cairn-Vedanta deal could continue till May because key ministers in the government panel constituted to resolve the royalty payment dispute and give possible go-ahead to the deal are currently busy with state elections.
Read More...Wind energy gear makers power up India plansWith the epicentre of the wind energy industry, in the words of Mr Tulsi Tanti, Chairman and Managing Director, Suzlon Energy Ltd, moving towards the Asia-Pacific and India and China offering the biggest opportunities for growth, turbine manufacturers are charting out expansion plans for India.
Read More...Call for comprehensive renewable energy lawA comprehensive renewable energy law, adequate transmission infrastructure, long-term renewable energy generation targets and a centralised regulatory authority are some imperatives for the sustained growth of wind energy sector in India, according to Mr Steve Sawyer, Secretary-General, Global Wind Energy Council.
Read More...Orissa Government approves project with investment of Rs. 1.36 TrillionThe Orissa government approved nine new projects, including coal-to-liquid (CTL), steel and aluminium units, involving a total investment of Rs. 1.36 trillion. Apart from two CTL, two steel and one aluminium units, the approved projects included a power plant, one textile unit, a paper plant and an aluminium park. Among the major proposals was the Rs. 42,000 crore CTL project of Jindal Symflex Ltd to be set up at Durgapur in Angul district using German Lurgi technology, adding its capacity would be 80,000 barrels per day. Requiring 4,000 acre of land, the project would have an 1100 MW captive power plant. Set to provide 6,500 direct employment, it would use 90 cusec water from river Mahanadi.Read More...Infra funds make a beeline for IndiaIndia-specific infrastructure funds from abroad and in the country are queuing up to invest large sums. There are 13 India-specific infrastructure funds targeting an investment of nearly $7.3 billion in projects. Nine funds are set to be launched in 2011, according to a report. India requires nearly $1 trillion worth of infrastructure development in the next five years if it is to meet the demands of a growing population and an emerging industrial economy. The government does not have the means or capability to finance this requirement. A significant proportion of the capital will come from the private sector. Institutional investors and unlisted infrastructure funds will play a key role in Indian infrastructure development, said Preqin, an independent research firm focusing on alternative assets. Given the long payback period and the nature of infrastructure industry, foreign investors would prefer to invest in countries that can provide a legal and regulatory framework that is transparent, investor friendly and predictable. Indian courts and the legal fraternity would also need significant capacity building as several public policy issues and investor concerns have to be balanced equitably with limited precedents for guidance in the private-public-partnership space, he said.Read More...India, Australia to start negotiations on free tradeIndia and Australia are all set to open negotiations on free trade following a feasibility study that showed each sides would gain AUD 30 billion over 20 years from lowering barriers. According to Australian Trade Minister Craig Emerson, preliminary talks on a deal with India would kick off next week in Canberra with his visiting Indian counterpart Anand Sharma. The minister praised India government's formal agreement to begin negotiations on a free-trade agreement as a milestone in diplomatic relations. "India is an enormous, rapidly expanding market for Australian businesses," he said. "Such a deal would broaden the base of merchandise trade, remove barriers to services trade, facilitate and encourage investment and address behind-the-border obstacles to trade." While a free-trade agreement to achieve zero tariffs would be bilateral, Emerson stressed the importance of achieving trade liberalisation with India through multilateral forums.Read More...External commercial borrowings rise to the most in more than two yearsIndian companies raised $5.63 billion (Rs. 25,000 crore) overseas in March, the highest amount in more than two years, to take advantage of low interest rates abroad. Companies such as Reliance Communications Ltd and Aircel Ltd had raised money overseas in the month to refinance rupee loans availed for bidding for third-generation (3G) telecom spectrum. Others such as Infrastructure Development Finance Co., Indian Railway Finance Corp. Ltd and Rural Electrification Corp. Ltd had raised money to fund projects. Interest rates at home have been climbing with India’s central bank raising its key policy rate eight times in a year to 6.75% to tame inflation.Read More...Government seeks World Bank assistance for 37,000 km roadsThe Government of India has sought assistance from the World Bank for construction and upgradation of 37,000 km of roads as national highways. While approval has been given by the Cabinet to convert 10,000 km of state highways into national highways, the ministry is in the process of seeking nod for another 10,000 km. India has an extensive road network of 3.3 million km, the second largest in the world, and national highways constitute 70,548 km. The Government of India has announced constructing 35,000 km of highways by 2014 for which it has estimated an investment of over Rs. 3 lakh crore. A major chunk of this is expected from the private sector.Read More...Infra to exclude telephony, powerFinance ministry of Union of India draws up list, to put it up to panel of secretaries for discussion after seeking Cabinet approval. Telephony and power generation will no more be counted as infrastructure with the Union government set to notify 25 sectors as infrastructure, setting right a policy anomaly that gave incentives to the core sector but never defined it. These sectors will be eligible for tax incentives, viability gap funding and will be covered by regulatory framework for the infrastructure sector, including levy of user charges. Real estate, one of the most sensitive sectors when comes to lending, has been kept out of the definition along with cement. Among sectors that expected to benefit are roads, telecommunication towers, education, hospital, power transmission lines, petroleum and natural gas pipelines, cold storage and modern post-harvest storage facility. The sectors have been selected on the basis of six well-defined criteria, including levy of user charges for being eligible for incentives meant for infrastructure sector. With user charges being one of the conditions, the government has tried to make a distinction between public service and infrastructure, Another important requirement that went into the selection of sectors was the non-tradability of a good or service. Among other conditions is existence of natural monopoly where one company is capable of meeting the demand for a good or service at a price lower than others. Infrastructure sectors have also been chosen on the grounds of high sunk costs that make investment irreversible. The identified infrastructure sectors also create value around them. For instance, coming up of a road could enhance the value of real estate in that area or creation of storage facility can improve provision of food through less wastage.Read More...Ultra mega projects needed to raise capacity to 145MT: Steel ministryTo raise India's capacity to 145 MT by 2015-16 to meet growing alloy demand and curb imports, a Steel Ministry panel has proposed "Ultra Mega projects" citing delays in multi-billion dollar ventures of Arcelor Mittal and POSCO due to regulatory and land acquisition hurdles. Each Ultra Mega Steel Project (UMSP) to be built on fast track basis using super critical technology on the pattern of Ultra Mega Power Projects (UMPPs), may cost Rs 50,000 crore.Read More...HCL to develop system for CCI M&A casesThe Competition Commission of India (CCI) has selected HCL Technologies to develop an electronic system ensuring confidentiality of sensitive documents given by companies for merger and acquisition (M&A) scrutiny. Confidentiality of data has been a major concern of the industry after the Government of India notified provisions under the Competition Act, 2002, for CCI to handle M&A scrutiny from June 1. Anticipating the operationalization of M&A rules from June, CCI is busy equipping its staff through training programmes conducted by experts from agencies such as the US Federal Trade Commission. It has also established a floor in its offices to only house the M&A section, with strict entry restrictions. Meanwhile, CCI and its administrative ministry, corporate affairs, are in the process of finalising the M&A rules which will provide the operational directions to CCI.Read More...India aims to add 17,000 MW renewable power by 2017India aims to add 17,000 megawatts of renewable energy over five years starting 2012, a top government official said recently, stepping up the country's focus to develop clean energy sources.
Read More...FTA to help India, New Zealand reach USD 3 bn trade: SharmaIndia and New Zealand are likely to conclude a Free Trade Agreement (FTA) next year with the target of trebling bilateral commerce to USD 3 billion by 2014, Indian Commerce and Industry Minister Anand Sharma said here.
Read More...BOARD/SHAREHOLDER’S MEETINGS THROUGH e-MODERead More...India, Ethiopia sign tax accordIndia and Ethiopia have signed double taxation avoidance agreement aimed at strengthening bilateral economic cooperation and stimulate the flow of investment and technology.
Read More...India, US start $50 mn fund for clean technologyThe United States and India announced a joint $50 million fund to promote research in clean energy technologies on Wednesday, a step seen as part of efforts to whittle down their differences over how to fight climate change.
Read More...Coal linkages awaited for pwr projects with 40,000 MW capacity.Power projects of 80,000 MW generation capacity are under construction in the country, with targeted commissioning by 2017, but the government has warned that coal linkages for plants with a combined capacity of 40,000 MW are yet to be obtained.
Read More...E-Waste (Management & Handling) Rules, 2010 NotifiedE-Waste (Management & Handling) Rules, 2010, have been Notified by the Ministry of Environment & Forest, Government of India on 12th May, 2011 and shall come in effect from 1st May, 2012.
Read More...Focus on factories rather than IT parks, say expertsHeavily reliant on services, the nation must shift economic gears towards manufacturing if it is to maintain near-double digit growth Read More...BrahMos eyes 20% of global market share BrahMos, jointly developed and produced by India and Russia, is looking forward to capture 20% of the global missile market share in the next decade.Read More...Ministry seeks views on procurement policy The defence ministry has invited suggestions from the Armed Forces and various departments and agencies that fall under it for amending the defence procurement policy (DPP) that governs defence purchases.Read More...Maharashtra plans to cut power tariff for industrial customers.Maharashtra is planning to lower electricity charges for industrial customers, now the highest among all Indian states, in an attempt to regain pole position in attracting investment to set up industries.Read More...East coast to get first LNG import terminal The operator of Dhamra port in Orissa plans to build India’s first liquefied natural gas (LNG) terminal on the east coast at an estimated cost of Rs.3,000-3,500 crore.Read More...Coal shortage may double in 5 years: Jaiswal Coal shortage in the country is likely to more than double in the next five years from 125 million tonnes now if steps are not taken soon to ramp up production, Coal Minister Sriprakash Jaiswal on Sunday warned. "The shortage could be around 250-300 million tonnes annually," he told reporters here before embarking on a 10-day visit to Poland, Czech Republic and Belarus to study modern methods and technologies used in underground mining.Read More...IEA forecasts a golden age for natural gas The International Energy Agency (IEA) has forecast that natural gas will play an increasingly important role in meeting global energy consumption in the years to 2035 because of its easy availability and also due to its effectiveness in fighting global warming. Natural gas is an attractive option for countries like India where energy consumption is growing fast, according to the IEA. However, the big question is if India is prepared to switch over to the clean fuel on a large scale.Read More...DoT readies big-ticket changes in telecom policy The Department of Telecommunications (DoT) is considering sweeping changes in the country’s proposed new telecom policy. The department is planning a complete overhaul of the archaic Indian Telegraph Act. Under the new telecom policy, DoT also wants to replace the rollout obligation clause for broadband operators with a new incentive scheme. Other key proposals include re-farming of spectrum with operators for 3G and 4G and setting up of a telecom security council to oversee and audit all issues in this area.Read More...NTPC goes for joint venture to set up power exchange NTPC has formed a joint venture company, National Power Exchange Ltd (NPEX), to set up a power exchange. It will be a third exchange after Power Exchange India Ltd (PXIL) and India Energy Exchange and is expected to be operational within a year, officials said.The joint venture with NHPC, Power Finance Corporation (PFC) and Tata Consultancy Services (TCS), has already received in-principle approval from the Central Electricity Regulatory Commission (CERC) to begin. NTPC officials said the implementation time may, however, vary depending on terms of CERC approval and other factors.Read More...India set to produce 700 MW solar power in 2011India is on track to produce 700 megawatts of solar power at a cost of $2.2 billion by December, ahead of an initial target for an ambitious plan that seeks to boost green power generation from near zero to 20 gigawatts (GW) by 2022.
Read More...PE firms route funds to India’s road sectorMany large private equity (PE) firms that have raised millions of dollars to invest in India’s infrastructure have struck at least one deal in the road sector this year—a rarity four years ago when the PE market was at its peak.
Read More...REC eyes renewable energy foray; plans investmentLooking to diversify into power generation, state-run Rural Electrification Corporation plans to set up renewable energy projects entailing an investment of about Rs 2,800 crore in the next five years.Read More...PE investments gain momentum amid weak capital marketSluggish stock markets have helped increase private equity investments significantly in India as several companies that were looking to raise funds from public are now trading the PE route. Read More...Sebi meet may take up new takeover code proposals soonThe much-awaited decision on revised takeover code recommendations that will change the way mergers and acquisitions (M&A) happen in listed companies may be taken by the Securities and Exchange Board of India late this month or early May.
Read More...Deora To Meet India Inc. On New M&A CodeIn bid to iron out the differences with India Inc, in light of the new M&A code to be implemented by the Competition Commission of India (CCI) from June 1, the Union Minister for Corporate Affairs Murli Deora has convened a special meeting on 25th April at Mumbai. The ministry officials told BW that he would try to address challenges and road blocks relating to competition.
Read More...GMR to raise $150 mn for its airports bizBangalore-based GMR Infrastructure today said it was close to raising as much as $150 million (around Rs 698 crore) in the second round of private equity investment for its airport arm, GMR Airport Holdings. Last month, it had raised $200 million (Rs 893 crore) from SBI Macquarie Infrastructure Fund.
Read More...New Telecom policy to ease M&A rulesThe existing stringent merger and acquisition rules will be eased in the new telecom policy that will be in place by the year-end, communication minister Kapil Sibal said on Monday. The move is aimed at bringing in much-needed consolidation in the hyper-competitive 14-player telecom market. Sibal did not divulge details regarding the relaxation of M&A rules.
Read More...EIH to expand in Europe, plans to open 5 hotelsLuxury hospitality group that runs Oberoi Hotels is actively looking to expand in Europe and intends to open three out of its next five hotels outside India even as it continues to see opportunities in the domestic market.
Read More...CCI notifies M&A rules The Competition Commission of India (CCI) notified regulations requiring corporates to seek its approval before going in for high value mergers and acquisitions. As per the notification, the CCI will take a view on the proposed merger deals within 180 days of the filing of notice by the companies. The regulation Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 shall come into force from 1 June 2011. The parties would have to submit a fee of up to Rs1 lakh for getting the CCI approval. According to the provisions in the Act, companies with a turnover of over Rs1,500 crore will have to approach the CCI for approval before merging with another firm. Only those proposals would need the CCI’s nod where the companies have combined assets of Rs1,000 crore or more, or a combined turnover of Rs3,000 crore or more, as per the Act. Also, the target company’s net assets have to be a minimum of Rs200 crore or it should have a turnover of Rs600 crore for CCI intervention.Read More...LLP firms allowed to receive FDI To boost Foreign Investments in India, CCEA has given its approval for FDI in Limited Liability Partnership (LLP), albeit with certain conditions. At present FDI would be allowed only in sector like mining, power and airports. LLPs with FDI, however, will not be allowed to operate in agricultural and plantation activity, print media or real estate business. The Cabinet Committee on Economic Affairs, which cleared the proposal, however, said a prior approval of the government (Foreign Investment Promotion Board) will be required for bringing in FDI in LLPs. The FDI in LLPs will be implemented in a calibrated manner, beginning with the ‘open’ sectors where monitoring is not required, subject to the following conditions: (a) LLPs with FDI will be allowed, through the Government approval route, in those sectors/activities where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance related conditions. (b) LLPs with FDI will not be allowed to operate in agricultural/plantation activity, print media or real estate business. (c) LLPs with FDI will not be eligible to make any downstream investments. There are also additional conditions relating to funding, ownership and management of LLPS. Read More...GI status gives Scotch Whisky new high in IndiaIndia has granted 'geographical indication of origin' (GI) status to Scotch Whisky, a legal protection that will help prevent the sale of counterfeit products in the Indian market as well as reinforce the authenticity of the product for the consumer.The recognition was marked by an event in Edinburgh attended by the Indian consul-general Anil Anand, Scotland Office minister David Mundell and Scotch Whisky Association (SWA) chief Gavin Hewitt .Read More...India richer by one of the world's largest uranium reserves Tummalapalle in Andhra Pradesh could have one of the largest uranium reserves in the world. Recent studies have indicated that it could have a reserve of 1.5 lakh tonnes of the scarce material, said Atomic Energy Commission Chairman Srikumar BanerjeeRead More...Rural roads set to go PPP way with pvt funding The ambitious plan to build a vast network of rural roads, hit by delays linked to a shortage of funds, is going the highways path. The government is planning to throw it open to the private sector under a public-private-partnership (PPP) model that would bring in investments on the one hand and assure reasonable returns to entrepreneurs on the other.Read More...India, Lithuania sign double tax avoidance pact India has signed a double taxation avoidance pact with Lithuania. This agreement provides for effective exchange of information between tax authorities of the two countries, including exchange of banking information.Read More...Government for early decision on FDI in multi-brand retail: Sharma Government on Wednesday said it will take an early decision on opening up multi-brand retail sector for FDI after it formally gets minutes of the recommendations of top secretaries on the issue."(Policy formulation) is a careful calibrated exercise.... Once recommendations formally reach my table...we will take early and appropriate policy decision," Commerce and Industry Minister Anand Sharma said in Rajya Sabha.Read More...EU for duty cuts in auto sector in FTA with IndiaThe government today said the European Union (EU) had requested India to cut import duties in several sectors, including automobile, in the proposed comprehensive market opening pact. "The negotiations are ongoing. Requests have been made on a variety of sectors, including automobiles. Positions taken evolve from stakeholders consultations and domestic sensitivities," Minister of State for Commerce and industry Jyotiraditya Scindia said in a written reply to Rajya Sabha. India is negotiating a Broad Based Trade and Investment Agreement (BTIA) with the 27-nation bloc since June 2007. The pact with EU, which is India's biggest trading partner, would liberalise commerce in goods, services and investment. So far, 13 rounds of negotiations have been held.Read More...DLF slapped Rs 630 crore fine, relief for buyers It is a verdict that could bring some order to one of India's most disorganised sectors. The Rs 630 crore penalty imposed on real estate giant DLF will relieve customers, who say sale agreements are heavily tilted in favour of the builder.Read More...Big ticket deals like RIL-BP and Posco may push FDI in India to $35 billion in FY 2012Foreign direct investment (FDI) in India may cross USD 35 billion in 2011-12 as against USD 19.4 billion in the last fiscal, on account of major deals like RIL-BP and Posco."I would expect the FDI to cross USD 35 billion... big investment projects like RIL-BP deal and Posco would help in pushing the numbers," a senior official said. Foreign investors are confident of India's economic growth as even during the peak of the global economic crisis, the country's GDP registered a healthy growth rate, the official said.
Read More...COMPETITION LAW: DLF PENALIZED FOR ABUSE OF DOMINANCECompetition Commission of India (CCI) in its latest judgment under Competition Act, 2002, has imposed a penalty of US$ 140 million (INR 630 Crores) on DLF Limited (DLF), one of the largest real estate Developers in India for abuse of dominance and unfair trade practices.
Read More...Delhi is destination No.1 for foreign firms to locate Mumbai may be the business capital of the country, but Delhi is clearly the unanimous choice among foreign companies looking to set up shop in India. The Capital is home to close to half the 3,138 foreign companies that are operating in the country, according to latest Government data. Maharashtra comes second, with Mumbai and Pune being the main cities that foreign firms prefer to be located in. Karnataka, with Bangalore as the information technology capital, and Tamil Nadu, where a bevy of foreign car makers and consumer durable firms have chosen to build facilities, come next.Read More...Government plans big role for LIC in infrastructure financing The government plans to draw in the country's biggest insurer, Life Insurance Corporation (LIC), into infrastructure project financing to boost funding for roads, ports and highways. LIC is likely to tie up with India Infrastructure Finance Company Ltd (IIFCL) to buy out long-tenure loan portfolios of commercial banks. Read More...Firms to require minimum Rs 500 cr to set up banks The Reserve Bank of India (RBI) on Monday released draft guidelines on new banking licences, pegging the minimum required capital to set up a bank by a corporate entity at Rs 500 crore while limiting the foreign shareholding at 49%, a move that will allow large corporate to start banks.Read More...Railways to revamp freight terminal policyTo aggressively woo private investors to set up terminals in greenfield and brownfield
sidings The Railways is set to revamp its private freight terminal (PFT) policy to woo
more private investors. Though it has primarily plugged the gaps through the revised PFT
policy in June, it is still open to tweaking the details to make it simpler for interested parties. Read More...Finance standing panel clears pension reform BillA key financial sector reform will be rolled out in Parliament’s winter session, signalling a tacit understanding between the government and Opposition to let the reform juggernaut roll despite political battles. Sources confirmed that the Pension Fund Regulatory and Development Authority (PFRDA) Bill has been cleared by the finance standing committee without major changes.The Bill envisages part-investment of pension funds in stocks. It proposes to empower PFRDA to oversee
pension funds and corporate and PSU superannuation schemes. Read More...Manufacturing policy to offer tax sops on case-to-case basisThe recently announced National Manufacturing Policy (NMP) offers a series of fiscal incentives, including tax sops, especially for small and medium enterprises (SME). However, the incentives would be given on a case-to-case basis depending on the preparedness of a particular state that wants to attract industry and make it a manufacturing hub. Read More...Net effect: Cipla settles infringement case with Bayer Cipla has settled a trademark infringement case with German drug major Bayer Healthcare after it found Cipla's veterinary products finding their way into the United States market.Read More...Companies Bill to be more flexible; SMEs worried In a bid to make the Companies Bill more lean and flexible, it will be stripped of all detail, which may be separately inserted under the heading – Rules.Read More...Manufacturing policy makes eco, water audits mandatory.The recently approved National Manufacturing Policy has stringent norms to ensure ‘green manufacturing'.These include mandatory environmental and water audit for all industrial and institutional units in the National Investment and Manufacturing Zones (NIMZs).
According to the policy, establishment of NIMZs is a key instrument to catalyse the growth of manufacturing.The policy has also made activities such as wastewater treatment and rain water harvesting compulsory for all industrial and institutional units in the NIMZs. Read More...FDI inflows up 50% between January and August.
Despite the uncertain economic environment globally, FDI in India surged 50 percent to $20.76 billion from January-August, according to the industry ministry’s latest data.
During January-August 2010, the country attracted FDI worth $13.85 billion.Experts maintain that the government should further streamline policies and make the environment more conducive to Foreign Direct Investment (FDI).
The sectors that attracted maximum FDI during the first eight months this year include services (financial and non-financial), telecom, housing and real estate, construction and power, the industry ministry data showed.
Read More...Exit Options restored by DIPP It will be recalled that in the Consolidated FDI Policy announced on October 1, 2011 the Government had introduced new para No. 3.3.2.1 by which “Options” of any kind had been prohibited in agreements involving Foreign Direct Investment. However, DIPP has reviewed its earlier decision and decided to delete the said para from the FDI Policy. This means that the status quo ante has been restored and exit options of any kind are now permissible under the extant FDI Policy.
Read More...Viability Gap Funding extended to Health & Education Sector The Government of India has extended ‘Viability Gap Funding’ (VGF) to partially subside capital investment in Education and Health sectors, making these sectors even more attractive for the investors....
Read More...Sebi: Norms to regulate advisers soon Capital market regulator Sebi on Tuesday said it will soon come out with norms for regulating the role of investment advisers. Sebi had proposed to bar investment advisers from acting as agents for promoting financial products. Read More...Secretaries' panel approves tough riders for retail FDI Emerging consensus is that all state capitals be covered.
The Union government’s committee of secretaries (CoS) on foreign direct investment (FDI) in multi-brand retail has put a number of tough conditions. The CoS had earlier approved in principle the proposal to allow up to 51 per cent FDI in the sector. Now, the conditions it has decided include minimum investment, limiting the presence of foreign retailers to a few cities and wide powers to state governments to decide if they want to allow such stores. There are also clauses to protect small-scale enterprises and local shops.The panel will now prepare a note for clearance by the Cabinet Committee on Economic Affairs, the final decision-making body on this issue. Read More...IT SEZ units may soon be allowed to lease out vacant spaces The units in IT and ITeS special economic zones may soon be allowed to lease out space from their premises, giving them a rental revenue, sources said.But these units will have to form special purpose vehicles to be given the status equivalent to the developers, as only they can lease out premises in the special economic zones (SEZs). The permission for leasing out excess space would however be subject to approval from the inter-ministerial Board of Approval on SEZ, they said.Read More...RBI comes out with draft guidelines for licensing of new banks in private sector In his 2011 budget speech, Hon’ble Finance Minister had announced that Reserve Bank of India (RBI) would issue guidelines for banking licences before the close of this financial year. Consequently, RBI has on 29th August, 2011 issued the draft “Guidelines for Licensing of New Banks in the Private Sector” (the Guidelines). The draft Guidelines have been issued for comments from banks, non-banking financial institutions, industrial houses and public. After the comments are received and reviewed, the Guidelines would be finalized and issued. The Guidelines specify various requirements for obtaining banking license, viz., eligible promoters, corporate structure, new bank to be under a non-operative holding company, minimum capital requirements and shareholding structure, foreign shareholding, corporate governance, etc.
The following is a brief summary of the Guidelines:
Read More...The ubiquitous Put Option mode of exit in Investment Agreement outlawed by Indian Regulators The Put Options are essentially exit rights under investment agreements, such as those involving joint ventures as well as private equity and venture capital investments. These are right (but not obligation) which entitles the holder of shares in a company to sell those shares to another person, at a pre-determined price (Strike Price). When the Put Option is exercised by the holder thereof, the other person is obligated to buy the shares at the Strike Price. This Article examines the legal landscape of enforceability of Put Options in investments agreements in India, both under the securities and foreign exchange regulations...
Read More...Bidding norms for power projects to be revised The qualification norms for companies bidding for power projects will be revised as many developers struggle to meet their obligations, government sources said.Read More...Ranbaxy gets nod for first drug developed by Indian pharma co The country's drug regulator has given conditional market approval for Ranbaxy Laboratories' anti-malaria drug, paving the way for the launch of the country's first privately-developed medicine and ending more than a decade of failures or near misses for India's drug makersRead More...Change in criteria for ‘dormant' firms in new Companies Bill.The draft Companies Bill 2011 proposes to change the criteria for dormant companies.
This is being done to better identify vanishing companies, according to an official. Read More...‘Micro-finance institutions will be allowed ECB limit of up to $10mn'Microfinance institutions (MFIs) will be allowed to draw external commercial borrowings of up to $10 million, according to the Reserve Bank of India Deputy Governor, Mr H. R. Khan.Read More...Parliament panel proposes voting right cap of 26% in private banks.A parliamentary panel today recommended raising voting rights of investors in the private sector banks but with a cap of 26 per cent with a view to maintaining a balance between economic control and promoting corporate democracy. Read More...Parliament panel rejects government proposal to hike FDI cap in insuranceIn an another instance which may stall reforms, a Parliament panel has rejected the government proposal to hike the FDI cap in the insurance sector to 49 per cent, saying this may not have the desired effect and could expose the economy to global vulnerability. Read More...UMPP bid norms: cabinet secretariat to seek report.The cabinet secretariat plans to seek a report from the Union power ministry on changes to bid norms for the so-called ultra mega power projects (UMPPs) that allowed Reliance Power Ltd to divert surplus coal from captive coal mines associated with one of the projects to another of its plants.Read More...IPO guidelines fail to excite insurersThe recent Initial Public Offer (IPO) guidelines notified by the Insurance Regulatory and Development Authority to raise capital may not excite too many life insurance companies given the poor sentiment in the equity market and doubts on the possibility of getting good valuations. On the contrary, eligible insurers (for IPO) would rather want to dilute their stake in favour of their foreign joint-venture partners rather than test the volatile equity markets since last last one year.Read More...Green Signal for 100% Foreign Direct Investment in Single Brand Retail The Department of Industrial Policy & Promotion on January 10, 2012 enhanced the limit of Foreign Direct Investment in Single Brand Retail Trading from 51% to 100%, subject to certain conditions (Please refer to Press Note No. 1 (2012 series)). The approval of the Indian Government increasing the FDI limit aims at attracting investments in production and marketing, improving the availability of such goods for the consumer, encouraging increased sourcing of goods from India, and enhancing competitiveness of Indian enterprises through access to global designs, technologies and management practices.Read More...Kolaveri Di: Sony seeks trademark"Why this kolaveri di..." may soon become the first song in India to have its first line trademarked. Why? Perhaps because Sony Music wants to use the world-famous phrase as a brand, and definitely because it wants to stop others from doing it.
Read More...Government unveils policy to curb illicit narcoticsThe government has announced a national policy to control and regulate narcotic drugs and psychotropic substances to stop the menace of trafficking, considered to be a major source of black money.Read More...Subsidy for mobiles, low bills likely in rural areasThe Planning Commission has proposed that for all rural mobile phone bills below R300, the subscriber could be reimbursed the bulk of the share that goes to the government as taxes and revenue. Besides this, a new mobile phone buyer in rural India will get an upfront subsidy of R250.Read More...Battle expected over impending pharma policyThe Supreme Court is expected to resume the hearing of a public-interest-litigation that seeks government monitoring and control over the prices of all essential medicines sold in the country.Read More...Export duty on iron ore hiked to 30%India raised iron ore export duties to 30% from 20% as it seeks to conserve supplies for its own steel industry, sending down shares of iron ore producers and boosting those of steel makers.Read More...Sebi tweaks norms on public issues to aid govt’s divestment programmeThe Securities and Exchange Board of India (Sebi) on Tuesday made it easy for the government to quickly tap major institutional investors to sell up to 10% of its stake in listed public sector companies. The government needs to earn R40,000 crore from its disinvestment programme within March 2012 to keep a grip on the slipping fiscal deficit.Read More...Govt for foreign airlines taking 49% stake in domestic carriers.In a major relief to debt-laden airlines such as Kingfisher, the Civil Aviation Ministry has announced a “broad consensus” in the Government on allowing foreign airlines to pick up equity of up to 49 per cent in domestic scheduled airlines. The Cabinet will take a final call on the issue.Read More...New port projects run into rough weather in GujaratVansi Borsi, a proposed port in Gujarat, will relocate to a new site more than 15 years after it was conceived because the nation’s biggest oil explorer said it wouldn’t move an undersea gas pipeline, making the project unviable.
Read More...Set up EGoM to review bidding laws: Power cos Leading private power producers such as Reliance Power, Tata Power, Jindal Power, Adani and GMR have urged the government to soon activate an institutional set-up in the form of an empowered group of ministers (EGoM) to revisit their contracts under the competitive bidding mechanism framework.Read More...M&M aircraft prototype to be unveiled soon The country’s first indigenous aircraft prototype, developed at a cost of $11.2 billion by Mahindra and Mahindra (M&M), will be launched soon, a top official said. This will make India one of the select few countries that manufacture aircraft. “Yes, our very first prototype that is designed in India and manufactured in Australia will be coming out soon... We are not rushing it,” said Karthik Krishnamurthy, chief technology officer of Mahindra Aerospace, the aviation division of the Mahindra Group. He added that Mahindra and Mahindra has entered into a joint venture with National Aeronautics Laboratory to manufacture aircraft and aero components. It is setting up a facility at Bangalore with an investment of over $60million.Read More...New body for nuclear oversightSignalling its resolve to go ahead with a proposed $10 billion (Rs44,600 crore) nuclear plant, the United Progressive Alliance (UPA) government announced it would set up an independent, statutory nuclear regulatory body. The move, which comes at a time when the government is contemplating a greater role for the private sector as it pushes for higher reliance on nuclear power, would make the regulatory process transparent and the body accountable to Parliament. Fears of a disaster after the nuclear accident in Fukushima in Japan had intensified protests against the proposed 9,900 megawatts nuclear plant in Jaitapur, Maharashtra, by farmers and fishermen in the villages near the proposed site, who were already against land acquisition for the project.Read More...India, Russia decide to remove bottlenecksRussia and India have agreed to remove bottlenecks in their cooperation in the field of pharmaceuticals, including clinical trials of new drugs. The officials from the two countries could agree on mutual recognition of clinical trials, although it was a very technical, scientific issue.Read More...Government aiming for broadband in 5 lakh villagesThe telecom ministry is likely to provide rural wireless broadband connections to over 5 lakh villages in one-and-a-half years and will provide a subsidy to both state-owned and private service providers operators from the Universal Service Obligation Fund for this purpose. The tender for the same was supposed to come in March. The resources for implementation of USO are raised through a Universal Service Levy (USL), which at present has been fixed at 5% of the Adjusted Gross Revenue (AGR) of all telecom service providers, excluding pure value-added services like Internet, voice mail, e-mail, etc. Under the ‘Rural Wireline Broadband´ scheme of USOF, a total of 2,61,413 broadband connections and 2,506 kiosks have been provided till 31 January, 2011, in rural and remote areas of the country, against a target of 8,88,832 connections and 28,762 kiosks by 2014.Read More...ADB extends $250 mn loan for Bangalore metro rail projectMultilateral lending agency Asian Development Bank (ADB) has approved a $250 million loan to part-finance the Bangalore Metro Rail Transit System Project (BMRTSP). The bank’s board of directors has approved the loan, which will partly fund a total of 42.3 kilometres of track, rolling stock, stations and equipment for two key routes in the tech hub. The Bangalore Metro Rail Corporation, a special purpose vehicle, jointly owned by the government of India and the Karnataka government, is carrying out the project. Besides the ADB loan, the Bangalore metro project is also being funded by the Japan International Cooperation Agency.Read More...Mining bill: states to get to call bids The new mining bill will empower state governments to hand out leases, take up prospecting and exploration activities before mines and call for bids for commercial utilisation of mineral deposits such as coal and iron ore. The Group of Ministers (GoM), which vetted the draft Mines and Minerals (Development and Regulation) Bill 2011 a fortnight ago, has given its nod for authorising and incentivising state governments take up "prospecting and exploration, so that adequately prospected ore bodies can be put on bid."Read More...Road Ministry plans to invest US$ 58.67 billion on highwaysAmid concerns raised by Prime Minister Manmohan Singh on highways deficit in the country, the government is looking at an investment of over US$ 58.67 billion in the road sector in the next five years, over 65% of which will come from the private sector.Read More...Asian Development Bank announces $200 million loan to build roads in Northeast Multilateral funding agency Asian Development Bank on Friday announced a $200 million loan to reconstruct roads in north-eastern region of the country to open up growth and development opportunities.Read More...Govt approves two highway projects worth US$ 518 mn The government today gave its approval to two highway projects worth over US$ 518 mn covering Chhattisgarh, Orissa and Kerala, with a view to expediting the infrastructure work in these states.This includes the project for development of four laning of 150 km long Chhattisgarh-Orissa Border - Aurang section on National Highway-6 in Chhattisgarh under NHDP.Read More...Switzerland may clear tax treaty with India without referendumThe revised DTAA between the two nations, that would allow India to seek details about its citizens having unaccounted money in Swiss banks, was approved by Switzerland’s Parliament on 17 June. The revised Indo-Swiss tax treaty, which will allow India to seek secret bank account details from 1 January this year, is expected to be approved without a national referendum in Switzerland, a top Swiss official saidRead More...Ourview | Good news for the M&A businessTwo developments this week offer glad tidings to everyone with an interest in a more robust market for corporate control in India. Two developments this week offer glad tidings to everyone with an interest in a more robust market for corporate control in India. On Wednesday, the Competition Commission of India (CCI), the recently empowered watchdog, cleared the bid by Reliance Industries to take control of the struggling life insurance and general insurance companies from the Bharti-AXA combine. This is the first order by the regulator on a merger and acquisition (M&A) proposal since it began vetting such deals in June. Significantly, the CCI gave its green signal within three weeks.Read More...Irda may let promoters offload their stake earlyThe authority will allow the new buyers to divest only after five years, said three persons directly involved in the process. India’s Insurance Regulatory and Development Authority (Irda) will soon allow promoters of life insurance firms, holding at least 26% stake, to sell strategic stake after five years of obtaining a licence, instead of the present holding period of 10 years.Read More...Travel Cos Get Ready to Acquire Foreign Assets Travel firms in India are preparing their war chests in anticipation of growing business out of the Indian market. While Cox & Kings has announced it is acquiring UK-based adventure and camping firm Holiday-Break for . 2,300 crore, several other firms, including Indian arms of international travel firms, are scouting for possible acquisition targets. Read More...Cabinet Note Soon on Allowing 51% FDI in Multi-brand RetailThe department of industrial policy and promotion will soon float a cabinet note for allowing up to 51% foreign direct investment (FDI) in multi-brand retail after an informal group of ministries that have issues with some of the proposal gives its recommendations.
Read More...Essar to invest $4 bn in Zimbabwe ventures Joining the list of Indian business groups making huge investments abroad, Essar Africa Holdings Ltd (EAHL) of the Essar Group on Wednesday said it plans to invest aroundRead More...Tax haven FDI to face tough scrutinyInvestments from tax havens such as Mauritius, Cayman Islands and Cyprus are set to be treated on par with those in sensitive sectors like telecom from the regulatory perspective. Read More...Black money: Realty sector deals now under I-T scannerReal estate deals above a certain threshold in metros will be tracked by the income tax department, in its bid to intensify vigil over unaccounted money floating in the system. According to officials, the crackdown by the department will not only cover real estate firms, corporates and high net worth individuals (HNIs) but also other realty buyers.Read More...Supreme Court begins proceedings on Vodafone tax pleaThe Supreme Court on Wednesday started hearing the British telecom giant Vodafone International Holdings BV’s appeal against the Bombay High Court judgment that upheld the Indian tax authorities’ jurisdiction over the 2007 Vodafone-Hutch cross-border deal that created Vodafone-Essar.Read More...Indian Railways to spend R1.60 lakh cr on new rolling stockIndian Railways will spend R1.60 lakh crore in buying rolling stock in next five years, as it aims to expand its network to haul more freight and passengers to raise earnings. The gross revenue of the transporter has remained stagnant at around 1.5% of the country’s gross domestic product in last 12 years. The railways aims to take it to 3% by 2020.Read More...Tariff structure may force cut in port container trafficPrivate container-handling operators are planning to reduce throughput at their respective terminals, thanks to a tariff structure which reduces the tariffs when traffic goes up.Under the existing tariff structure for 12 major ports in India, which is reviewed by the Tariff Authority of Major Ports (Tamp) every three years, the more containers private operators handle, the more loss they incur in terms of their tariffs being cut at every Tamp review.Read More...Lanco wins coal block, power plant bid in ChhattisgarhLanco Infratech said on Wednesday it has emerged as the sucessful bidder as a mine developer for a coal block in Chhattisgarh which belongs to Maha Tamil Collieries. Lanco also said it will also develop a 2,000 mw power project associated with the coal block.Read More...US, India facing same challenge of providing energy: EnvoyUS and India are facing the "same challenge" of providing for the energy needs of their people while ensuring that environment is not harmed, US Consul General in Kolkata Dean R Thompson has said. 'India and USA are working to make progress in the areas of strategic cooperation, which includes security issues, energy and climate change'.
Read More...Compounding powers delegated to Regional offices of Reserve Bank of India (RBI) RBI has vide their circular APD 37 dt 13 Dec 2011, " decided to delegate the powers to the Regional Offices of the Reserve Bank of India mentioned below to compound the contraventions of FEMA involving:
(i) delay in reporting of inward remittance
(ii) delay in filing of form FC-GPR after allotment of shares
(iii) delay in issue of shares beyond 180 days (viz. paragraphs 9(1)(A), 9(1)(B) and 8, respectively, of the Schedule I to the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000, notified vide Notification No. FEMA 20/2000-RB dated 3rd May 2000 and as amended from time to time" and advised Banks to " bring the contents of this circular to the notice of their constituents and customers concerned".
Please read the circular for full details.
Read More...Union Cabinet clears 3 anti-graft bills
The Union cabinet on Tuesday cleared three major anti-corruption bills to counter Anna Hazare’s movement. Hazare has threatened yet another indefinite fast from December 27 demanding passage of a strong Lokpal Bill. Read More...Bill to digitise Cable TV passed in Parliament
The Cable Television Networks (Regulation) Amendment Bill 2011 will pave the way not only for mandatory digitisation, but usher in a host of other changes.
Read More...DIPP releases press note for Foreign Direct Investment in Limited Liability Partnership Firms.Clarified issues on downstream investments, permitted investors and conversion into FDI...
Read More...Riders on Cairn deal not to violate UK treaty: GoMThe government imposing preconditions for approving Edinburgh-based Cairn Energy's stake sale in its Indian unit to Vedanta Resources will not violate the country's investment protection treaty with UK, a ministerial panel on the $9.6-billion deal has opined. A panel headed by finance minister Pranab Mukherjee had on May 27 decided that Cairn or its successor has to agree to paying cess on its share of 70% in the crownjewel Rajasthan oilfields and treat royalty paid by state-owned ONGC on its behalf as cost recoverable for the government giving its consent.Read More...Indo-Japan JV on cards for western section of rail freight corridor Dedicated Freight Corridor Corp India (DFCCIL), promoting the $17-billion rail freight corridor project , has decided that its 1,490-km western part will be executed by a joint venture between Indian and Japanese infrastructure developers, selected through a bidding process. "The bidding process for 6,000 crore ($1.3 billion) phase-I development is expected to start in mid-June when we will invite pre-qualification bids from interested companies," PN Shukla, director-operations & business development, DFCCIL, toldRead More...Power Grid Corp to bid for Rs 1,300-cr contract; stock downPower Grid Corporation of India will be competing for a domestic contract with Indian and foreign rivals for the first time since its inception. The corporation will bid for the Rs 1,300-crore contract, the first after the government in January made it mandatory for state-run companies to compete with private firms for securing power projects. Power Grid has the monopoly over electricity transmission in the country. The company owns and operates about 45% of interstate transmission systems. At 10:11 am, shares of Power Grid Corporation of India were trading 0.72 per cent down at Rs 102.80 on the Bombay Stock Exchange.Read More...We'll be honoured, but India has to make the first move on joining OECD: Angel Gurria The Paris-based Organization for Economic Cooperation and Development (OECD) has said that it was up to India to decide whether it wants to join the 34-member group that represents more than 60% of world output, indicating that it was keen to have the fast rising economy to increase its clout. "We'll be very honoured but it's up to them to start the process. We have made clear to Indian authorities that they can start the process," OECD Secretary General Angel Gurria told ET in an interview. However, he said membership was not an obstacle in OECD's deeper engagement with India and the country was already a part of more than 20 sub-committees. Read More...Green nod breach may lead to closure.After a short period of lenience in allowing coal mining in “no-go” forest areas, the environment ministry has decided to impose stringent penalties on violators. In a significant move, the ministry has categorised non-compliance with the environment clearance (EC) conditions as ‘serious’ and ‘not-so-serious’ across 27 sectors and said that violators of the serious ones would be issued closure orders.Read More...FDI policy on equity relaxed, realty to gainReal estate companies starved of funds can breathe a sigh of relief. Notwithstanding the RBI’s reservations, the government has decided to restore the flexibility for them in raising money through equity instruments with inbuilt options under the FDI policy. This would mean that foreign investors who retain the option of exiting with assured returns would be able to invest in Indian real estate projects.Read More...MCA, finmin iron out differences over Cos Bill.The Companies Bill, which seeks to replace the over 50-year-old Companies Act, is likely to get Cabinet approval when it comes up for discussion next week.Top government sources said all differences between the corporate affairs and finance ministries had been addressed in the latest version of the Bill.Read More...Laws to curb cell tower radiation on cards.Sixteen years after the introduction of mobile telephony in India, the government is finally readying the first set of guidelines on electromagnetic field (EMF) radiation from mobile base stations mounted on cellular phone towers. India has roughly 4 lakh mobile towers according to the Telecom Regulatory Authority of India (Trai).Read More...Takeover code doesn’t supersede FDI policy: SebiRemoving concerns over a perceived dichotomy between FDI policy and the takeover code, the Securities and Exchange Board of India (Sebi) has made it clear that the code will not supersede or replace the FDI policy or any other government regulation for that matter.Read More...Bill on cards to penalize govt officials for delay in serviceThe day is not far when state government officials would have to cough up a part of their salary in form of penalty for a day's delay in delivery of service to common man.Read More...New companies bill tightens regulations regarding subsidiaries.The new companies bill has tightened the provision relating to the way subsidiary companies are defined, ensuring that a larger number of firms are brought under the reporting ambit.Read More...Tata Steel, 7 other cos seek Rly nod to set up pvt freight terminals Eight companies, including Tata Steel, Central Warehousing Corporation and Container Corporation of India, have sought Indian Railways’ permission to set up freight terminals to transport third-party cargo after the latter relaxed eligibility criteria effective June 21.Read More...SEBI INCREASES OPEN OFFER TRIGGER LIMITS AND OFFER SIZEThe Securities and Exchange Board of India (SEBI) approved on July 28, 2011 the proposals for raising the trigger limit for open offer and size of the open offer. As per the information released by SEBI, it has accepted most of the recommendations of Takeover Regulations Advisory Committee (TRAC)....Read More...New Packaging Law will result in price hikes Rising inflation, coupled with a new packaging legislation, will make price hikes of packaged foods inevitable, says Mr Chitranjan Dar, Divisional Chief Executive, ITC's foods division.Read More...Trai to initiate process on exit policy for telcosIn a respite to new telecom service providers, who are operating in the highly competitive market dominated by incumbent GSM players, sectoral regulator Trai today said it will come out with a paper seeking views on exit policy for such players.Read More...Two-tier FDI cap in media finalisedWith the ministry of finance giving its nod, the decks have been cleared for the implementation of a simplified, two-tier policy on foreign direct investment (FDI) cap in media.Read More...Competition regulator to screen big JVs too.The corporate affairs ministry is considering two key changes in the Competition Act, 2002: One to give the Competition Competition of India (CCI) regulatory powers over big joint ventures (JVs) and another to include deal size as a criterion for mergers and acquisitions (M&As) to come under the commission’s purview.Read More...Foreign investors can get equity in lieu of dividendChange in keeping with global practice of treating reinvested earnings as FDI.In a significant liberalisation of the foreign direct investment policy, the government has permitted the issuance of additional equity shares to a foreign investor that already has shareholding in a company in lieu of its dividend income.Read More...India asks its airlines not to submit carbon tax data to EU.Read More...Tokyo Summit to focus on Delhi-Mumbai Industrial CorridorSeveral Indian and Japanese companies are likely to sign joint venture pacts worth several billion dollars during an upcoming summit in Tokyo for projects along the proposed $90-billion Delhi-Mumbai Industrial Corridor.Read More...Ashok Leyland defence arm ties up with Krauss-MaffeiAshok Leyland Defence Systems (ALDS), a newly formed company in which the Hinduja flagship Ashok Leyland holds 26% stake, has formed a strategic alliance with Krauss-Maffei Wegmann GmbH & Co KG, Munich, Germany, at the International Defence Exhibition (IDEX) at Abu Dhabi on Tuesday to co-operate in the development of advanced defence systems for the Indian defence establishment as well as other defence forces worldwide. The scope of the co-operation will initially include the development of armoured wheeled vehicles, recovery vehicles, artillery and combat systems, bridge laying systems and other similar products. ALDS brings to this strategic alliance the expertise and experience of designing and developing defence vehicles that has made Ashok Leyland the largest supplier of logistics vehicles to the Indian Army with over 60,000 of its Stallion vehicles forming the Army’s veritable logistics backbone.Read More...BUDGET HIGHLIGHTS: 2011-12 - INFRASTRUCTUREPresenting the Budget for FY 2011-12 to the Parliament on Feb 28 2011,The Hon'able Finance Minister of India Pranab Mukherjee said that the budget is a transition towards a more transparent and result oriented economic management system in India.Read More...Highways body moves towards pre-qualification of firmsHighway developers can now apply to the National Highways Authority of India (NHAI) to get pre-qualified for projects that will be bid during a year. The NHAI has invited applications for annual pre-qualification (RFAQ) from companies. They can apply for pre-qualification as a single entity or as a consortium. The companies that get pre-qualified at the RFAQ stage do not have to not submit detailed application for project specific qualification (RFQ) stage. At present, for each project, NHAI invites requests for qualification – a process that takes three to four months.
Read More...India’s Lanco Infratech to acquire Australia’s Griffin Coal for A$730 million India’s foremost infrastructure firm, Lanco Infratech is to acquire Australia’s Griffin Coal. According to the ET report, the investment is for a consideration of A$730 million, about Rs 3,400 crore. Lanco’s move comes amidst previous similar moves by Indian firms keen on securing resource supplies for their Indian units.According to the ET, it is the second biggest investment by an Indian company in Australia, after Adani Enterprises acquired Linc in August 2010 for $2.7 billion. Speaking to ET, Lanco’s chief financial officer, Suresh Kumar, said the acquisition of Griffin Coal will cater for about 30 per cent of Lanco’s overall coal needs to the year 2015.
Read More...Monthly review of BSNL circle heads on anvilDetermined to turn around loss-making PSU BSNL within six months, the telecom ministry has decided to review performance of all circle heads of the service provider on a monthly basis. “There will be a monthly review of all the 24 zonal directors. It is necessary as quarterly monitoring is a very long period for assessing the performance of a commercial organisation like BSNL,” a DoT source said.Read More...Maharashtra to invest in ports, coastal securityThe Maharashtra government will spend around Rs8.27 billion on developing ports along with the western coast, with a port in Ratnagiri, K Shankarnarayan, Governor, in an inaugural speech of the budget session. He said apart from developing ports, the state will invest in coastal security. The government has set up 12 special coastal police stations and will build seven more to provide protection along the coast and establish a marine security academy at Raigadh.The governor said the state will ensure funds for Naxal-affected areas are utilised.
Read More...Reserve Bank of India ready to let big firms set up banksRegulatory nod for new licences only after laws are changed to give central bank power to supersede boards The Reserve Bank of India (RBI) is ready to allow big industrial houses to set up banks, but only after it gets the power to supersede boards of banks that are not being run properly. RBI also wants the right to oversee the operations of the promoting company and any affiliates that will have business relationships with the bank.
Read More...Companies may have to induct at least one female independent directorCoinciding with International Women's Day , the Corporate Affairs Ministry on Tuesday said it would make it mandatory for companies having five or more independent directors to have at least one female independent director. Companies having five or more independent directors would have to necessarily have at least one female independent director, Corporate Affairs Minister Murli Deora said. The proposal would be part of Companies Bill 2009, which is expected to be tabled in the current session of Parliament. Read More...India to talk tough on IPR issue in free trade talks with EUIndian negotiators have been asked not to take any obligations on intellectual property rights beyond what is mandated in domestic laws and World Trade Organisation rules in their discussions with their European counterparts for a free trade pact with the European Union.
Read More...Government clears FDI proposals worth Rs.1,027 crThe Government of India has cleared 21 foreign direct investment (FDI) proposals amounting to Rs. 1,027 crore, including those of ACB India and Oriental Tollways. A total of 47 FDI proposals were taken up by the Foreign Investment Promotion Board (FIPB), but the board deferred decisions on 17 applications and rejected nine, the finance ministry said in a statement. FIPB gave its approval to Oriental Tollways Pvt Ltd (Delhi and Haryana) for induction of foreign equity in an investing company. The proposal is likely to bring in FDI worth Rs. 475 crore. Meanwhile, the finance ministry said the next meeting of the FIPB chaired by secretary of economic affairs R Gopalan will be held on 20 May.Read More...Projects below 200 MW not to get coal supply from govtProjects below 200 MW coming on stream after March next year will not get coal supplies as the government looks to promote higher-capacity power plants that consume less fuel. The new policy, however, won't apply to captive plants to be set up by industrial units.
The power ministry will not recommend coal linkages to central, state or independent power projects with unit size below 200 MW under its amended policy for projects in the 12th Five-Year Plan, beginning next year.
Read More...UMPPS may get to divert surplus coalThe government is planning to allow developers of ultra mega power projects to use surplus coal from allocated blocks for other projects in which they hold majority stake. The coal ministry, which is in the process of drafting a policy on use of surplus coal, will soon seek the law ministry's views on the proposal, a government official said.
Read More...Changes in Foreign Direct Investment (FDI) PolicyIn its latest review of consolidated Foreign Direct Investment (FDI) Policy, Department of Industrial Policy & Promotion (DIPP), issued Circular 1 of 2011 (31st March, 2011, ) that came into effect from 1st April, 2011.This note recaps the major changes that have been introduced in the FDI Policy vide Circular 1 of 2011. The changes that have been introduced are....
Read More...Nigeria invites Indian investment in energy, banking and financial sectorThe Nigerian Government has invited Indian industry to invest in the country’s power, oil and gas and the banking and financial sectors which have been deregulated and thrown open to private sector investment. The Nigerian Foreign Minister, H Odein Ajumogobia expressed this while addressing at an industry round table organized by Federation of Indian Industry (FICCI) in New Delhi.
Read More...R-Infra gets 7,200-cr order for R-Power’s Samalkot projectReliance Infrastructure has bagged an engineering, procurement, and construction order worth Rs 7,200 crore from group company Reliance Power for its 2,400 mw gas fuelled Samalkot Power Plant in Andhra Pradesh. With this order, Reliance Infrastructure's EPC order book stands at Rs 30,700 crore, the Anil Dhirubhai Ambani Group company said
Read More...Gail backs PNGRB proposal on pipeline tariffsIndia's biggest gas transportation firm Gail India has endorsed petroleum sector regulator's proposal allowing pipeline companies to charge tariffs lower than approved rates but the move has been opposed by Reliance Gas Transportation Ltd.The regulator's move aims to promote competition in gas transportation sector which is expected to grow fast after Reliance Industries recently tied-up with global energy major BP to source and market natural gas in India.hirubhai Ambani Group company said
Read More...PPP policy gaps to be filled in core pushThe government is framing a national policy for public-private partnership (PPP) in infrastructure projects to eliminate the inconsistencies in current rules and make infrastructure more attractive to foreign investment."The idea is to define the framework clearly to bring about predictability in the regime," R Gopalan, secretary, department of economic affairs told ET.
Read More...Banking M&A to be under purview of central bankThe government, for now, has sought to put to rest the issue of who is to regulate mergers and acquisitions (M&A) in the banking sector, by conferring the power on the Reserve Bank of India (RBI). The Banking Laws (Amendment) Bill, 2011, tabled in the Lok Sabha recently, comes in the wake of pressure from RBI to clarify the matter.Read More...India ahead of US on energy efficiency: Report India is making more progress than the US in increasing the country's energy efficiency, a report said. 'India's Clean Revolution' was launched by international NGO The Climate Group (TCG). The report suggested that the rate of increase of India's private investment in clean energy will be 736 percent over the next 10 years, three times that of the US or China. Further, low cost labour and highly skilled manufacturing base will make India a major hub for clean technologies. 'Only a clean industrial revolution can guarantee long term prosperity for any nation and nowhere is this truer than in India. The low carbon economy offers huge economic opportunities,' TCG's chief executive officer Mark Kenber said. Read More...BUDGET 2011 - HIGHLIGHTSThe Hon’ble Finance Minister Mr. Pranab Mukherjee presented yesterday (28th Feb 2011) to the Parliament India’s budget for the year beginning April 2011. We list below the highlights.… Read More...Indonesia’s coal pricing plan may hit power firms Private power companies such as Tata Power, Adani Power and Reliance Power sourcing Indonesian coal under long-term contracts are going to take a big hit on their bottomlines, with the Southeast Asian country switching over to a new coal pricing methodology based on international index. As a result of the new pricing formula, price of Indonesian coal will go up by $30 a tonne and lead to a R0.70 per unit increase in cost of electricity generation, according to industry experts. Until recently, Indonesian coal producers had the freedom to sell their coal at their own price.Read More...Lawyers free to practise in any court Lawyers will be able to practise in courts across the country irrespective of their enrollment in any bar council without the need to transfer licence to their desired states. The Centre has notified Section 30 of the Advocates Act of 1961. Though 50 years have passed since the Act was enacted, the section was brought to force only on June 9.Read More... Firm News S&P appointed as Legal Advisor to PWD, PunjabS&P is appointed as Legal Advisor to Public Works Department (PWD), Punjab for four laning of Patiala-Sangrur-Bathinda section of NH-64 in the state of Punjab through Public-Partnership on Design, Build, Finance, Operate and Transfer (DFBOT) Basis. The assignment involves drafting/reviewing of the Concession Agreement and Bid Documents and provide legal assistance and advisory services to the authority in conducting the Bidding process and execution of the concession agreement.S&P appointed Legal advisor in consortium with PFCCLS&P is assisting Power Finance Corporation Consulting Limited (PFCCL) on Legal & Regulatory related aspects for selection of developer for setting up of 1000 MW gas based power project at Keshoraipatan in Rajasthan under Case -2 of guidelines for determination of Tariff by Bidding process for procurement of Power Distribution Licensees: issued by Ministry of Power , Govt of India. The mandate includes vetting and drafting of documents like RFQ, RFP, concept papers, various reports, recommendations, procedures conformance to the government regulations, Electricity Act 2003, other laws as applicable including guidelines of SEBI.S&P appointed Legal Advisor to MoRD in consortium with IDFCAdvising Ministry of Rural Development (MoRD) in consortium with Infrastructure Development Finance Corporation (IDFC) for selection of service provider for Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) related works. MGNREGA aims to enhance livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work. The primary objective of implementing the Project on a national level is to ensure common standardized processes across the nation, in six lac villages through use of biometric and GPS enabled ICT devices at work sites. The introduction of biometric attendance systems are expected to eliminate ghost workers and address the complaints from workers about the difficulty in obtaining the job cards. Out mandate includes conceptualization, bid documentation and selection of service provider.
S&P, empaneled with two large State Infrastructure Development BoardsS&P has been empanelled for providing Legal Advisory Services to Gujarat Infrastructure Development Board (GIDB) which is a statutory organization created under GID ACT 1999 and it has the unique and challenging responsibility to attract investment and create world –class infrastructure by providing investor friendly policy framework that emphasizes development through equal emphasis on inter related sectors of the economy. S&P has also been empaneled with Department of Urban Development, Housing & Local Self Government, Government of Rajasthan for providing legal services for preparation of contractual documents etc. in PPP projects.
S&P defends NHAI in an Arbitration matter with a claim of Rs. 200 millionS&P is defending National Highway Authority of India (NHAI), in arbitration matter where the claimant, M/s Afcons Infrastructure Ltd. has filed claim of Rs. 200 million under a contract of Rs. 147 million related to road projects in the state of Karnataka. The claims pertain to issues related to extended stay cost, reimbursement of entry tax paid by the contractor, certification and payment of additional works, valuation of varied works, measurement and payment of portion of embankment construction executed between the original ground level after clearing and grubbing, measurement and payment for the portion of profile correction course executed by using DBM under BOQ items.
S&P appointed as Legal Advisor to wind up a premier Shipping CompanyScindia Shipping Navigation Company Ltd was one of the premier companies engaged in the business of shipping. Established in 1919, this was the first large scale Indian owned shipping company and played a significant role in India’s Independence Struggle. However due to international recession in the 1980’s, the Company suffered huge losses, pursuant to which the Government of India liquidated its assets for recovery of the amounts due to the Government of India. Under the directions of the Government, the Company has requested for winding up itself. S&P has filed Voluntary Winding Up Petitions for the Company and its subsidiaries under Sections 433(a),(e) and (f) read with Section 439 of the Companies Act, 1956.
Founder and Senior Partner Ravi Singhania elected to the Board of Directors of TerraLexRavi Singhania, the Founder Member & Senior Partner has been elected to the Board of Directors of TerraLex, a global legal network of law firms. TerraLex has 160 member law firms in 100 countries and 41 US states, and is one of the largest international legal networks. As a TerraLex member representing India, Singhania & Partners has access to expertise around the world from leading law firms in each country and across the United States.Legal Counsel for reforms in Khadi Village Industries SubsectorS&P is acting as Legal Counsel in consortia with Pricewaterhouse Coopers for revitalising the Khadi and Village Industries through policy level reforms and institutional reforms for inter alia, establishment of the Khadi Mark, promoting and marketing of Khadi, revitalising Khadi Institutions. These reforms entail a review of the existing Legislation governing the Khadi and Village Industries Commission (KVIC) and the drafting of the new Regulations to enable the KVIC to achieve the reforms. This project is funded to the tune of US$ 150 million by the Asian Development Bank.
Legal Counsel to KSHIP to develop the first ever BOT annuity (State) documentation in IndiaS&P is acting as Legal Counsel in consortia with Scott Wilson to the Karnataka State Highway Implementation Project (KSHIP) for upgrading of State Highways through World Bank funding. The project envisages developing of bidding documents for grant of concession on design, build, finance, operate, maintain and transfer (annuity) bases in terms of the World Bank procurement guidelines. The project envisages development for the first time Annuity documents for the World Bank in respect of State Highways.S & P has been appointed as Legal Counsel to IDBI bank for a ` 1375 crore JSW Steel Project.S & P has been appointed as Lenders Legal Counsel to a consortium of banks where IDBI bank in the lead for a project loan sanctioned to JSW Steel Limited for their Beneficiation and Pelletisation plants being set up at Vijayanagar Bellary, Karnataka. The scope of the project envisages setting up of 6 streams of 500 tonne per hour (tph) capacity for the Beneficiation Plant and a single stream of 4.2 million tonne per annum (mtpa) for the Pelletisation Plant. The total cost of the Project has been estimated at `1375 crore out of which ` 900 crore is being financed by the consortium of banks.S&P defends NHAI in an Arbitration matterS&P, defending NHAI, wins arbitration where the claimant, B.G. Shirke Pvt. Ltd & Birla GTM Entrepose Ltd. (JV) had filed claims of `700 million in addition to ` 860 million, already received by the contractor under a contract of `766 Million related to the road/major bridges project in the state of Maharashtra. The claims pertained to issues related to delay in payment of running bills, variation items/orders, idling of resources, price escalation, increase in royalty on account of subsequent legislation etcLegal Counsel to APIIC for Due Diligence in PPP projects under disputeS&P is acting as counsel to Andhra Pradesh Industrial Infrastructure Corporation ltd. (APIIC) for a detailed due diligence and investigation in a SPV where APIIC and Emaar have been equity partners in 3 PPP projects. The mandate is to assess violations/ breaches by the private party and represent APIIC in court proceedings.Lenders Legal Counsel to Power Finance CorporationS&P is acting as Lenders Legal Counsel to Power Finance Corporation for financial assistance to M/s Ind Barath Power (Madras) Ltd (IBPML) for 660 MW (1x660 MW) Coal based Thermal Power Project at Sasthavinallur & Pallakkurichi villages, Sattankulam Taluk, Tuticorin District of Tamil Nadu. The estimated project cost is Rs. 3540 Cr.S&P represents Denel in appointment of ArbitratorS&P represented Denel Proprietary Ltd, one of the largest manufacturers of defence equipments in South Africa before the Hon’ble Supreme Court of India in a matter related to the appointment of Arbitrator wherein, the Supreme Court without disturbing the settled general law that Court cannot interpose and interdict the appointment of an Arbitrator, took a fresh view upholding the submissions put forth by S&P that the Court can intervene in the appointment of Arbitrator where apprehension of bias exists.S&P Legal counsel to Ministry of Power in consortium with PFCS&P in association with PFC is advising Ministry of Power on legal and regulatory issues for selection of transmission services provider for 2 large Transmission projects. The projects entail system strenghthening for the western region and northern region private participation on tariff based competitive bidding.S&P Appointed Lenders’Legal counsel to Axis Bank for coal berth project in OrissaActing as a legal counsel to Axis Bank for the due diligence and documentation relating to credit facilities of `41.4 billion to Essar Paradip Terminals ,for a proposed project for development of a deep draught coal berth at Paradip Port, Orissa.Legal Counsel to Mormugao Port Trust, GoaActing as legal advisor to ‘Mormugao Port Trust‘for “Providing Transaction Advisory Services for Development of a 8MMTPA Iron Ore Export Terminal at Mormugao Port” for selection of a developer. The RFQ stage is now complete and the RFP has been issued to the qualified applicants.Legal Counsel to Kolar Gold PLC, Australian Mining CompanyActing as a legal counsel to an Australian mining company for an acquisition of mining assets in India and potential fund raising on the AIM market.
Legal advisor in consortium with PFCCLS&P is assisting Power Finance Corporation Consulting Limited (PFCCL) on Legal & Regulatory related aspects for selection of developer for setting up of 2-125 MW Unit 3 &4 of Giral TPP under “Case-2” of Guidelines for determination of Tariff by Bidding process for procurement of Power Distribution Licensees: issued by Ministry of Power, Govt of India.
Lenders Legal counsel to PFC for Rs. 26.55 loanS&P acting as Lender Legal counsel to Power Finance Corporation for providing financial assistance of Rs. 26.55 billion to M/s Ind-Barath Energy Utkal Ltd. for setting up 660 MW coal based thermal power project at Sasthavinallur at Pallakkurichi Villages in Tamil Nadu.
S & P hosted the Asian TerraLex Members MeetS & P hosted the Asian TerraLex Members Meet this year between the 24-27th Feb 2011, S & P is the Indian Representative of TerraLex, a global network of 160 top independent law firms and 15,000 attorneys in nearly 100 countries and 41 US States. TerraLex lawyers guide clients through the challenges of global business. Member firms interact seamlessly, providing clients with the global reach and local expertise one needs to meet any challenge, anytime, anywhere.
Articles Competition Commission Of IndiaCompetition Act, 2002 (Act) in India, marks a landmark shift in approach towards regulating business in India. The Act brings India at par with UK, USA and EU in regulating free market.
Read More...The Duration TestIf an offshore enterprise carries out engineering and construction projects in India, the time spent on each project cannot be combined r clubbed together to determine whether the foreign enterprise would constitute a permanent establishment in India, unless the relevant tax treaty provides for aggregation of time spent on different projects or the activities of different projects of the foreign enterprise are so inextricably interconnected or interdependent that the contracts cannot be isolated from each other
Read More...Enforcement of Foreign AwardsA foreign award is defined as an arbitral award on differences between persons arising out of legal relationships whether contractual or not, considered as commercial under the law in force in India made or before 11.10.1960 in pursuance of an agreement in writing for arbitration to which either New York Convention or Geneva Convention applies or is made in such territory which central Government declares to be the territories to which either New York or Geneva Convention applies.
Read More...Ministry introduces e-participation in board and shareholders' meetingsAs part of its aim to be both digital and environmentally friendly, the Ministry of Corporate Affairs has announced that directors and shareholders will now be able to participate in meetings through video conferencing. Sections 2, 4, 5, 13 and 81 of the 2000 Information Technology Act, read with the provisions of the 1956 Companies Act, facilitate the practical implementation of conducting meetings electronically.
Read More...Confidential Information: Protection and PunishmentA company's foundations are built on its confidential information. An involuntary leak of such sensitive information could:
- damage the company;
- give its competitors an unfair advantage; or
- result in financial crisis, damage to goodwill and even bankruptcy.
Therefore, protection of such information is of utmost importance.The damage that the leakage of sensitive information can do to a company is often underestimated. Therefore, it is essential - especially in light of the growing number of blatant security breaches - to keep confidential information confined within the company.Read More...Vodafone scheme of arrangement crashes: courts deliver opposing verdicts A scheme of arrangement filed under Sections 391 and 392 of the Companies Act (1956) recently received opposing treatment from two different high courts. In the first case the Gujarat High Court rejected the scheme in its order dated December 9 2010. On the same facts, the Delhi High Court approved the scheme in its order March 29 2011. This update analyses and compares the reasoning of the two courts in adopting opposing views on identical issues.on confined within the company.Read More...Forming a private limited company - an easy and quick route into the Indian marketThe Indian market provides various global opportunities and is readily accessible in terms of raw materials, labour, research areas, a hassle-free legal code, the environment, infrastructure and tax benefits, among other things. The government has been active in eliminating the legal impediments to foreign direct investment in India, so as to enable foreign players to explore the Indian markets and contribute to the transformation of India from a developing country into a developed country.
Read More...Amendment in the Information Technology Act, 2000- An introductionThe traditional legal system has not been able to keep pace with the technological advancement in the information technology sector. The changes in the information technology by way of introduction of new hardware and software systems happens rapidly and the legislative enactments as well as amendments to the same are always slow to respond to such changes. The reason for this can be attributed to the fact that the law making process as well as the amendments to the law is a slow and tedious process which is made to respond to the old system in which circumstances triggering change in law would not change so often.
Read More...Law of Plea Bargaining in India In the US and Europe, Plea Bargaining is an extensively ubiquitous practice which facilitates expedite the legal process. Plea bargaining allows the accused to bargain with the court on the sentence that will be awarded. The significant aspect is that the facts stated in an application for plea bargaining (Section 265-B of CrPC, 1973) are not meant to be used for any other purposes.Read More...Reference - Plea Bargaining Case Study
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