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Lisbon, 20th June 2013 Index of this Newsletter: Newsletter, 20-V-2013 ........................................................................................................................ 3 INDIA 3 1.1. 1.2. 1.3. 1.4.

1.5. 2.1. 2.2. 3. 4.1. 4.2. 5. 6.1. 6.2. 6.3. 6.4. 6.5. 7. India probably world's third largest economy: OECD ................................................................. 3 Its tough to do business in India: Sistema chairman ................................................................. 3 Government opens up healthcare to private sector in a big way ................................................ 4 India and United Kingdom sign MoU on cooperation in health sector ........................................ 5 Fitch upgrades outlook of 10 Indian FIs to 'stable's ................................................................... 6 Government gets 12 proposals worth Rs 5,000 cr ($900 million) ............................................... 6 Kapil Sibal launches e-governance application store ................................................................. 7 Tata Group to invest Rs 10 million for 33% stake in Dalit enterprise .......................................... 8 RIL AGM: Company plans to invest Rs 1.5 lakh crore ($27 bn) over three years ..................... 10 RCom to lease out telecom towers to Reliance Jio in Rs 12,000-cr ($2,1 bn) pact ................... 11 Import lobbies threaten every oil minister: Veerappa Moily ...................................................... 12 TCS forays into US government space ................................................................................... 13 TCS bags Rs 1,100 cr ($200 million) contract from Department of Posts ................................. 14 Top five Indian IT services firms grew 13 per cent in 2012 ...................................................... 15 Private banks: Game changers in Indian banking.................................................................... 15 IT spending by banking, securities firms to touch Rs 42,200 crore ($7.540 million) .................. 16 Teledensity rises from 7.04 pc to 73.07 pc in last nine years average call rates (per minute) drop to 47 paisa (0,007) from Rs 2.89 (0,041) ................................................................................. 16 8.1. 8.2. 8.3. 8.4. 8.5. 8.6. 8.7. 9.1. 9.2. 9.3. Government, bank collaborate to offer Saudi returnees rehabilitation ...................................... 17 Indo-Australia pact to train farm workers ................................................................................. 17 Indo-Dutch agri initiative plans 10 centres of excellence.......................................................... 18 Punjab approves four milk plants worth Rs 250 crore each ..................................................... 18 Ruchi Soya partners Japan companies for edible oil ............................................................... 19 Spices exports cross Rs 10,000-cr mark ................................................................................. 20 Guar gum India's biggest agricultural export item for a second year ........................................ 21 MSMEs share in exports to grow to 50 per cent by 2017 ......................................................... 21 MSME share in exports was 43% in 2011-12 .......................................................................... 22 DHL Express to hold clinics for SMEs ..................................................................................... 22

10.1. Zydus to launch 1st new chemical entity by Indian Company .................................................. 23 10.2. Aurobindo Pharma to launch 20 drugs in US this year............................................................. 24 11.1. Hero Cycles ties up with German firm for Euro invasion .......................................................... 24 11.2. Honda opens third 2-wheeler plant in India ............................................................................. 25 12. Network Rail (UK) selects Cognizant as key systems integration framework partner ............... 25
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13.

Indian companies' overseas investment trebles to $7.64 billion in April.................................... 26

14.1. India to be a big market for Tetra in 10 years .......................................................................... 27 14.2. New CEO reiterates P&Gs $1bn India investment plan .......................................................... 28 15. Daimler to develop India operations as export hub .................................................................. 28 16.1. Delhi Airport: Adding to Indias pride ....................................................................................... 29 16.2. Bangalore International Airport Ltd has the highest per passenger spends: MD....................... 29 16.3. IndiGo a dark horse for Star Alliance which continues to woo Jet Airways ............................... 30 17. 18. French Accor Group becomes fastest growing hospitality chain in India .................................. 31 Apollo Tyres to buy US-based Cooper Tire for Rs 14,500 crore ($2,5 bn)................................ 32

19.1. Andhra Pradesh registers growth in microfinance portfolio in FY13 ......................................... 33 19.2. World Bank ropes in ESAF Micro for marketplace initiative ..................................................... 34 20. Essar Oil to double refining capacity of Vadinar plant ($6,4 bn+ $7,3 bn of investment) ........... 35

INDIA & THE WORLD ...................................................................................................................... 36 21.1. India, China set $100-bn target for FY15................................................................................. 36 21.2. ZTE in pact with Calyx to sell smartphones ............................................................................. 37 21.3. Indian, Chinese companies can create new business miracle: Li Keqiang ............................... 37 21.4. Taj to set up two hotels in China ............................................................................................. 38 22. 23. Airtel launches 3G services in Africa's Burkina Faso ............................................................... 38 Freight corridor to get Japanese boost with Larsen &Toubro-Sojitz contract ............................ 38

24.1. UK business delegation to tour Kolkata, Kochi ........................................................................ 39 24.2. UK eyeing doubling bilateral trade with India by 2015 ............................................................. 40 25.1. India committed to be a steadfast partner of Myanmar: Anand Sharma ................................... 40 25.2. We may spend $1bn on Myanmar rollout: Sunil Bharti Mittal ................................................... 41 25.3. India offers US$ 150 million for SEZ in Sittwe ......................................................................... 42

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Newsletter, 20-V-2013
INDIA
1.1. India probably world's third largest economy: OECD PTI | May 29, 2013 LONDON: India has probably surpassed Japan to become the world's third largest economy after the US and China, Paris-based think-tank OECD said even as it lowered the country's economic growth projection for 2013 to 5.3%. "China will likely pass the United States as the world's largest economy in the next few years and India has probably recently surpassed Japan to be third largest," said the OECD Economic Outlook report. Until around 2020, China is set to have to highest growth rate among major countries, but could be then surpassed by India, it further said. OECD also said that by early 2030s, the BRIICS' (Brazil, Russia, India, Indonesia, China and South Africa) combined GDP should roughly equal that of the OECD (based on current membership), compared with just over half that of OECD now. "Between now and 2060, GDP per capita is seen to increase more than 8-fold in India and 6-fold in Indonesia and China," it added. The Organisation for Economic Cooperation and Development (OECD), which in November had projected India to grow at 5.9% in 2013, cautioned that structural bottlenecks in the country could further constrain investment and growth potential. "GDP growth is projected to rise gradually over the next two years... Significantly more growth would be forthcoming if structural bottlenecks were swept away by fundamental structural reforms," the report said. Looking ahead, it said India is likely to improve growth to 6.7% next year, after having logged a decade's low of 3.8% in 2012. OECD said the world real GDP is projected to increase by 3.1% this year and by 4% in 2014. Across OECD countries, GDP is projected to rise by 1.2% this year improve to 2.3% in 2014. Growth in non-OECD countries will rise by 5.5% this year and 6.2% in 2014.

1.2. Its tough to do business in India: Sistema chairman Sidhartha, TNN | May 30, 2013 Vladimir Evtoushenkov is co-founder and chairman of Sistema, the $34 billion Russian conglomerate, which is the majority shareholder in mobile telecom firm Sistema Shyam. The Indian venture has managed to win back nine of the 21 licences that it had lost due to the Supreme Court ruling last year. Although it is looking to invest in new sectors such as retail and power, Evtoushenkov says future investments will depend on how quickly the government deals with some of Sistema concerns in telecom. Excerpts:

Telecom is your largest investment and it's been through ups and downs. Has it gone the way you wanted it to go? We have substantial investment of around $3.6 billion and we will make further investments. But it is very difficult to recover this investment because the telecom market is not very stable. It is very difficult to say
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how much investment is needed because the rules are not stable and the regulatory system is changing. According to preliminary business we should have achieved break-even in 2013. Now, the cash break-even is beyond 2017, or may be even longer. That's why the Indian market is very peculiar. But, the market is getting more sophisticated and the situation will improve. Is India one of the toughest places to do business in? I don't know if it's the toughest but it is certainly tough. Regulatory climate is not very good. You can put together a business plan but you can't implement it because the rules keep changing. You had a setback because you had planned for pan-India presence but you are now in nine circles... As the government prepared new rules, we decided to decrease the number of circles to nine. Once we see an EBIDTA break-even by 2014-end, we will then look at going to further circles. You had sought arbitration with the Indian government, are you going to pursue that further? It's in abeyance at this moment. We want to wait and see if we will get what we were promised. We are awaiting clarity on merger and acquisition rules and actual allocation of spectrum. A lot of things need to be put in place and delivered before we can withdraw the notice. You have other business interests, including retail. Will you enter this sector since FDI is now allowed? As soon as he telecom issue is solved we will look at it. For us, priority is the safe city project for which we had done a pilot in Delhi. The pilot project was very successful. We are the leader in Russia in the safety and security system. There are issues on financing and a national policy is missing. There are federal guidelines in Russia and municipal financing. We are talking to the home ministry on a policy on this. It is an integrated model where the entire city, including buses, have cameras and is connected to an emergency response system. In a city like Delhi it can be very helpful. We did the pilot in Delhi three years ago and if it was implemented, rapes and other crimes would have been checked. We also have a navigation system and we have an agreement with BSNL but that is not working. We are looking for pilot projects. We also want to look at power station, construction and real estate development but all this depends on what happens in telecom.

1.3. Government opens up healthcare to private sector in a big way The Times of India, May 23, 2013 Mumbai: The state government has entered into a partnership with global healthcare giant GE Healthcare for setting up advanced diagnostic and imaging facilities in 22 hospitals. A consortium of Wipro GE Healthcare will run these 24/7 diagnostic facilities. Patients from below the poverty line, orphan and senior citizens, will get free services at these centres. Also, patients admitted to these hospitals and outpatients can get the services at subsidized rates. But the private partner can charge private patients as per market rates. CM Prithviraj Chavan on Friday announced the arrangement and termed it a giant leap in advancing healthcare to people. However, questions have been raised that the private partner was being allowed access at dirt-cheap rates. For 10 hospitals in the Marathwada belt, it will be paying the government Rs 22 lakh and Rs 32 lakh for facilities at the remaining 12 hospitals. Public health minister Suresh Shetty said revenue was never the motivating factor behind the partnership.
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"Our intention is to provide quality diagnostic services at concessional rates to common citizens." He pointed out that the consortium was selected through a transparent bidding process. Shetty also said that owing to a dearth of diagnostic facilities, patients from government hospitals were often referred to private clinics and ended up paying more. "A decision to outsource imaging facilities was taken three years ago owing to a dearth of such facilities and shortage of radiologists and technicians. Procurement of modern-day diagnostic facilities on its own would have cost the government Rs 200 crore," Shetty said. A separate tender will be floated for hospitals in the Vidarbha region, which are not covered under this arrangement. The public health department has 19 CT scans and X-ray machines at present. It does not have any MRI or mammography machine. Shetty said that the existing facilities will be shifted to rural and peripheral hospitals. Copyright 2013, Bennett, Coleman & Co. Ltd. All Rights Reserved.

1.4. India and United Kingdom sign MoU on cooperation in health sector Press Information Bureau, May 21, 2013 New Delhi: Union Minister of Health & Family Welfare India, ShriGhulamNabi Azad and Secretary of State for Health, UK, Mr. Jeremy Richard Hunt signed an MOU on cooperation in the field of health sector last evening at Geneva between the Government of India and the Government of the United Kingdom of Great Britain and Northern Ireland. Describing the agreement as a historic event and a great milestone, Shri Azad noted with optimism that this agreement is going to usher in a new era of cooperation in the health sector between the two countries. Shri Azad stated that the agreement between India and UK will promote wide-ranging cooperation in the health sector between the two countries and spur the exchange of information and expertise for the common good of people. The areas identified for cooperation in the MOU include: i. ii. iii. iv. v. vi. vii. Promoting exchange on healthcare policy in India and the UK; Human resources for Health; Regulatory issues; Health technology development: Primary healthcare; Strengthening of public infrastructure and capacity; Health security, including cooperation on infectious diseases, emerging infections and drug resistance.

It is worthwhile to mention that India is a strategic partner to the UK and has been a recipient of UKs bilateral assistance in the form of grants since 1975. The aid agency of the UK is Department for International Development (DFID). The priority for the DFID (UK)- Government of India partnership has been improvement of maternal & child health and reducing the burden of communicable diseases.

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Shri Azad also noted with satisfaction that Department of Health Research, GOI and National Institute of Clinical Excellence (NICE), UK are in the process of signing an agreement for collaboration in areas relating to medical and health technology assessment. Recalling the historic relations that the two countries share, Sh Azad noted that the signing of this agreement demonstrates the commitment of both the countries to work closely with each other to further cement their strong relations.

1.5. Fitch upgrades outlook of 10 Indian FIs to 'stable's Business Standard, Jun. 17, 2013 Mumbai: International rating agency Fitch on Friday upgraded the outlook of 10 Indian financial institutions (FI), including foreign subsidiary of Bank of Baroda. The outlook has been upgraded to stable from negative while affirming the ratings at BBB-, Fitch said in a statement. The institutions which have been upgraded include five public sector banks, an overseas subsidiary of Bank of Baroda, two private banks and two wholly government owned FIs. Ratings of State Bank of India (SBI), Bank of Baroda (BoB), Bank of Baroda (New Zealand) Limited, Punjab National Bank (PNB), Canara Bank and IDBI Banks have been upgraded. In the private sector, ratings of ICICI Bank and Axis Bank have been upgraded; the other two institutes are Exim Bank and Housing and Urban Development Corporation (Hudco). The change in the outlook on the ratings follows the revision of the outlook on India's ratings to stable from negative, the Fitch statement said. The revision in outlook for SBI, ICICI, BoB, PNB, Canara, IDBI, Exim and Hudco, in line with the sovereign rating change, is primarily driven by a strong propensity and ability to support the banks if needed, the statement added. The viability ratings (VR) of ICICI and Axis Bank, which are at 'bbb-' - the same level as the sovereign's ratings - also support the outlook revision, due to their steadily improving standalone credit profile despite difficult market conditions, the statement said. Fitch also said it expects non-performing assets and restructured assets to continue to rise this financial year. Public sector banks stressed assets were 11.59 per cent of the total at the end of 2012, against the sector average of 9.61 per cent, it said. According to the agency, the asset quality of certain government banks like PNB witnessed a sharp deterioration, which has put their VR under pressure. Further deterioration from the current levels will add additional pressure which may lead to a downgrade of their VR, it warned.

2.1. Government gets 12 proposals worth Rs 5,000 cr ($900 million) The Hindu Business Line, May 28, 2013 Mumbai: The proposals are from telecom equipment, consumer electronics, solar panels, LED manufacturing and semi-conductor assembly-test-mark-pack companies, Ajay Kumar, Joint IT Secretary, Department of Electronics and Information Technology, told Business Line. These were received under the Departments Modified Special Incentive Package Scheme (M-SIPS), he added. When I say proposals, these are proposals for which funds are tied up. In fact, Rs 2,000 crore worth of proposals were received last week. There are several other companies that are in advanced stages of finalising their proposals, but we have not considered them yet, said Kumar.
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He, however, did not name the 12 companies. Recently, telecom minister Kapil Sibal was quoted as saying that Bosch Electronics and Samsung have applied for the M-SIPS scheme. Target set The Department has set a target of accepting proposals worth Rs 25,000 crore by the current fiscal-end, Kumar said. By 2020, the Government intends to bring in investments of about $100 billion in the electronic equipment manufacturing industry, through its National Policy on Electronics 2012. Under the M-SIPS, the Government will provide up to Rs 10,000 crore in benefits to the industry between 2012 and 2017 for promoting the production of electronics products and components. The scheme will provide subsidy for investments in capital expenditure with a limit of 20 per cent for investments in the Special Economic Zone and 25 per cent in non-SEZs. Investors will also get reimbursement of countervailing duties and excise for capital equipment for units set up outside the SEZs. The incentives would be provided for firms engaged in electronic design and manufacturing. According to a 2009 task force report, the demand for electronics hardware in India is set to go up to $400 billion by 2020, but at the current growth rate, the domestic industry would be able to cater to demand worth $104 billion, while the rest would need to be imported. Copyright 2013, Kasturi & Sons Ltd., Chennai All Rights Reserved.

2.2. Kapil Sibal launches e-governance application store The Economic Times, Jun. 03, 2013 New Delhi: In a major step towards curbing the inefficiencies plaguing the functioning of the government in terms of providing services online to its citizens, IT and Telecom minister, Kapil Sibal launched an egovernance application store today. This appstore will allow citizens to receive information in an efficient and a much-simplified manner. It is hosted by the DeitY and has been designed and developed by the NIC. The appstore will start with 20 apps, of which 'roughly half' will be directly accessible to the public (g2c). The number is expected to rise to 100 within three years. They are categorized into 'runnable' and 'downloadable' apps in which citizens can directly use all he runnable apps but maybe restricted in using the downloadable apps. The 'government to government' (g2g) apps can be open to the public if it is made runnable by the concerned department. The criteria for the applications included a 'citizen-centric focus' with high transactional value in which private players are allowed to host. Broadly the downloading of apps is categorized into 'freelydownloadable apps', 'downloadable with cost apps' and 'restricted apps', which can only be used by the government and the judiciary. ""Within three months, policies based on the usage of these applications will be formed', Sibal said. The features provided in the appstore site include sharing of applications, search for applications, basic information about an application when selected, user feedback and rating of an application, downloading of an application after authentication of user and a 'two level approval process' for contributing applications.

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This appstore will be a part of the GI Cloud and its mechanisms will provide for a complete ecosystem in which applications developed by the Centre, States and private players will feature in the appstore with the inclusion of aspects such as funding and contract management. The concept of the functioning of this 'e-Gov appstore' was summed up by Kapil Sibal as 'What Apple provides its customers, the Government of India is providing its citizens.'

3. Tata Group to invest Rs 10 million for 33% stake in Dalit enterprise Naren Karunakaran, ET Bureau | Jun. 14, 2013 MUMBAI: Cyrus Mistry, chairman of the $100-billion Tata Group, is set to alter the very discourse on affirmative action in the private sector, by getting into a full-bodied manufacturing joint venture with an obscure company owned by a Dalit entrepreneur. The Tata Group has made an in-principle decision to pick up one-third equity in Delhi-based Chandan & Chandan Industries, a company incorporated to manufacture industrial helmets. Nand Kishore Chandan, a Dalit entrepreneur, will hold the remaining two-thirds in the company. The investment was personally cleared by Mistry, say sources close to the deal. The Tatas are also exploring the possibility of floating a section 25 (not for profit) company under the Companies Act to channelise more investments into several other Dalit-owned enterprises. Tata group companies could pool monies into this special entity. Confirming this, an executive from Tata Group's PR agency said Tata companies are coming together to help Dalit entrepreneurs trying to start businesses. "This is history in the making, and most importantly, a giant step in moving from patronage to partnership," says Chandra Bhan Prasad, commentator on Dalit issues and mentor, Dalit Indian Chamber of Commerce and Industry (DICCI). Over the past few years, Cyrus' predecessor Ratan Tata and former director of Tata Sons, JJ Irani, have infused the conglomerate with a degree of enthusiasm and commitment to the Dalit cause. Apart from investing in Dalit enterprises, the Tata Affirmative Action Programme also works on employment, employability, and education programmes for Scheduled Caste and Scheduled Tribe communities. DICCI Chairman Milind Kamble said the investments were the culmination of over eight months of negotiations steered by B Muthuraman, vice-chairman, Tata Steel, and chair of the TAAP. Clearly overawed, Chandan, an electrical engineering diploma holder and a veteran in plastics moulding, could only mumble homilies about being 'delighted and overwhelmed' by the prospect of working with the Tata group. The new venture, which is in the process of setting up its factory in Ghaziabad, has already received its first tranche of orders for over 50,000 helmets from a clutch of group companies including Tata Steel, Tata Motors, Tata Housing, and Tata Projects. It is not yet clear how the investment from the Tatas would come about. Initially it was believed Tata Capital would be in the thick of it, but now, according to DICCI sources, there is talk about creation of a special purpose entity. This move by the Tata Group is indeed a shot in the arm for the concept of 'supplier diversity' within the affirmative action space. Supplier diversity is the trend among large corporations to seek out, handhold, and buy products and services from entrepreneurs belonging to under-privileged and minority sections. It can be voluntary or mandated by the government. In the US, African American, women and other minority-owned companies have benefited a great deal by its proliferation. The Tatas have added sheen to the concept by not only promising to buy but also investing in such companies. This is in keeping with Ratan Tata's take on social upliftment. He always underlined "the importance of facilitating integration through affirmative action programmes rather than just giving easy entitlements." He was among the few industrialists to express solidarity and visit the Mumbai DICCI Expo
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held in December 2011 along with Adi Godrej of the Godrej group and Farhad Forbes of the Pune-based Forbes Marshall group. A host of senior executives from the Tata group visited and held talks with Dalit entrepreneurs at the Expo. Cyrus Mistry, on his part, at an in-house Affirmative Action Programme Assessors meet last year maintained 'the momentum should continue.' In fact, it was Cyrus who personally conveyed to Milind Kamble his sanction for the project when he happened to bump into the latter at the 25th anniversary celebrations of Sebi in Mumbai recently. NK Chandan started his career as a shop floor employee in 1990 and by 2001, on the strength of the considerable expertise he had acquired, was inducted as a partner in the plastic moulding company he worked for. The company did well by manufacturing plastic spares for photo copying machines. In 2012 he bought out the partners, acquired the plant spread over 1200 sq metres in Ghaziabad for Rs 1.82 crore, and also renamed the company. "Except for my house, I sold off all my assets and scraped out all my savings to start afresh," says Chandan. He wanted to get into manufacture of urea bags as the volume demand was high, though margins were low. It then struck him that industrial helmets would be a safer bet. As DICCI's Delhi chapter head, he had been mobilising support for Dalit entrepreneurs and this brought him into close proximity with large corporates, including Bombay House. This eventually coalesced into a deal with the Tatas. The helmet manufacturing project is estimated at Rs 3.05 crore, of which Chandan's contribution is Rs 2.05 crore and the Tatas contribution around Rs 1 crore. The installed capacity is around 3 lakh helmets per annum. This initiative in supplier diversity comes at a time when things are beginning to look up for Dalit entrepreneurs. Finance Minister P Chidambaram, last Thursday, formally launched the DICCI SME Fund, for investment in companies promoted by SCs. SIDBI has already committed Rs 10 crore to the fund and the finance minister has promised to ask other financial institutions to pitch in. It also comes at a time when the central government is in the process of rolling out a 4 per cent quota in public procurement by government departments and public sector enterprises. While this opportunity is around Rs 46,000 crore, it will be a while before government departments gets it act together. However, it is the private sector potential that can really trigger change, quickly, as seen by the Tata initiative. Even in the US, it's the private sector, through the Billion Dollar Club, that is providing heft to the supplier diversity concept. Each of the 18 member companies of the Club buy at least $1 billion worth of products or services from Black American, women, Hispanics and other minorities annually. Members include Ford Motors, IBM, P&G, Walmart, Toyota, Boeing, and Johnson & Johnson

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4.1. RIL AGM: Company plans to invest Rs 1.5 lakh crore ($27 bn) over three years ET Bureau | Jun. 7, 2013 MUMBAI: Reliance Industries (RIL) plans to invest Rs 1.5 lakh crore over the next three years, said Chairman Mukesh Ambani at the company's 39th annual general meeting in Mumbai on Thursday. "Your company is investing the largest capital in India by any enterprise public or private, Indian or foreign. This is an expression of the faith of Reliance in India and in her potential. We are making these investments at a time when the global economy is facing one of its most challenging periods in modern times, we have the conviction to look through the cycle and make investments at this time," he said. RIL is the country's largest private sector company with business interests that span energy, petrochemicals, retail and telecom. Discussing the outlook on the company's core oil and gas business in India, Ambani said, "We have now commenced our exploration campaign in the East Coast of India. Our first success has been achieved in the MJ1 well in KG-D6 block. Success that we now know has the potential to significantly add to our resource base." "This discovery is a testimony to the combined technical skills of BP and Reliance and the prospectivity of the KG basin. This gas and condensate reservoir is located 2 km below the currently producing D1, D3 gas fields and has exhibited very good potential during the flow test," he added. He also said additional hydrocarbon resources in the KG-D6 and NEC25 blocks. On RIL's CBM acreage, he said, "We are all set to proceed with the development of two coal bed methane blocks in Sohagpur, Madhya Pradesh, despite various execution and infrastructure challenges. We are awaiting approvals to build a pipeline to connect to the major pipeline grid of the country for immediate utilisation of this gas by various consumers and we target for first gas from these fields in 2015." In an otherwise regular AGM event, there was a moment of diversion when the normally patient and courteous Mukesh Ambani lost his cool with a shareholder who questioned him about the company's balance sheet, its retail foray and falling gas production at KG-D6. When the shareholder began to comment on his personal wealth and how he should be running the government and become PM, Ambani said, "Please do not get personal. I will not allow it, this is just not done... please stop. Any personal suggestion you have, please bring them to my office or else I will use my chairman's powers and not allow your questions." On its global oil and gas business, Ambani was very bullish on its shale gas acreages in the US. "Our US shale gas business has more than doubled its revenues and EBITDA compared to last year. It has become a significant contributor to our E&P portfolio. Production from shale gas will be in excess of onethird of our aggregate production this year," he said. RIL is a partner in the shale resource base of Marcellus and Eagle Ford Shale gas plays in the US, through its three joint ventures with Chevron, Pioneer and Carrizo. Ambani said RIL is among the largest foreign investors in the shale gas business in the US, with investments exceeding $5.7 billion as on March 31, 2013. Referring to Venezuela, the country with the largest oil reserves in the world, Ambani said, "RIL will be signing a memorandum of understanding with Petroleos de Venezuela, the state-owned company, to evaluate opportunities to participate in development of heavy oil fields in Orinoco Oil Belt in Venezuela." On interests in Iraq, he said, "We have been pre-qualified by the Iraq government to bid for the AlNasiriya Integrated Project for development of upstream oil field and construction and operation of a 300,000-barrel-per-day petroleum refinery in Iraq." Commenting on RIL's petrochemical business, Ambani said the company has undertaken the singlelargest expansion in the petrochemicals sector in the world. "In Polyester, we are expanding our capacity by 1.5 million tonnes per year to reach 4 million tonnes per year. The polyester filament yarn plant at Silvassa will be commissioned during the first half of the current financial year. This will be followed by the PET resin plant in the second half of this financial year at Dahej, making us the seventh-largest producer of PET in the world." "We will commission a million-tonne PTA plant in the first half of the next year followed by another plant of same capacity within the next six months, taking the total PTA capacity to 4.3 million tonnes per year, and will also double our paraxylene capacity at Jamnagar over the next 30 months to become the second| Rua Paulo da Gama, 16 | 1400 Lisboa | Portugal | Tel. 21 301 01 66 | Fax 21 301 99 28 |

largest producer in the world. On RIL's retail foray, he said, "The company has achieved a significant milestone by crossing revenues of Rs 10,000 crore during the year and achieved cash breakeven with earnings before depreciation, finance cost and tax expense of Rs 78 crore." "We added 184 stores across format sectors market, I am confident that our retail business would undertake multi-fold growth in the next few years by delivering over 50% revenue growth in various format sectors year-on-year and is on its way to achieve revenue target of Rs 40,000- Rs 50,000 crore," he said. Towards the end of the address, Ambani discussed RIL's telecom foray. "We have finalised the key vendor and supplier partnerships that are required for the initial launch of our services; together with our partners, we have charted an ambitious plan for the next 12 months, and we at Reliance Jio foresee making rapid progress over this period towards launching our services across India. Our impatience to reach our goal demands a sense of urgency, but not careless haste." "From less than 700 professionals a year back, most of them based in the Navi Mumbai campus, the Reliance Jio team has grown rapidly to a national footprint of over 3,000 professionals today. And we estimate that over the next year we will grow the team further to a national strength of nearly 10,000 professionals," Ambani added.

4.2. RCom to lease out telecom towers to Reliance Jio in Rs 12,000-cr ($2,1 bn) pact The Hindu Business Line, Jun. 10, 2013 Mumbai: The Ambani brothers are getting closer, firming up on Friday a Rs 12,000-crore telecom tower deal. Anil Ambani promoted Reliance Communications will lease some 45,000 mobile masts to Reliance Jio Infocomm, run by his once estranged brother Mukesh. Prelude to 4G The latest deal with RCom is one of the several arrangements being put in place by Mukesh Ambanis Reliance Industries to launch fourth generation, or 4G, telecom services next year via Reliance Jio Infocomm. Reliance Jio has pan-India licences to launch 4G services which, once deployed, will enable users to download a 10-megabyte piece of software in two seconds, and a two-gigabyte HD movie in minutes. Reliance Jio will use 45,000 of RComs 50,000 ground and rooftop-based towers so that the rollout of 4G services can be accelerated, the two companies said in a press statement. The deal will increase RCom s average tenancy ratio, or tenants per tower to 2.7 per cent from 1.7 per cent, market sources said. The deal is said to be part of an ongoing comprehensive framework of business co-operation between Reliance Industries and RCom. The first commercial accord between the two firms was signed in April when RIL agreed to use RComs fibre optic network for a one-time payment of Rs 1,200 crore. Interestingly, this time around, the companies have chosen not to disclose the tenure of the engagement. All they have said is that the deal is valid for the lifetime of the agreement. Company executives, who declined to be identified, say the two companies have contracted for 15 years. Validity Reliance Industries will pay an average of Rs 800 crore a year, but the payout in the first few years will be around Rs 200 crore, they said.

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The broadband wireless access licence won by Infotel Broadband, and later acquired by RIL, is valid for 20 years starting 2010. RIL is known to be a tough negotiator. Since the com pany had not disclosed the tenure of the engagement, in all probability RIL would have got a good deal on the valuation side. However, the deal is good news for RCom as it will help it reduce debt and stabilise cash-flows, said Alok Shende, Principal Analyst, Ascentius Consulting. As on March 31, 2013, RCom had a net debt of Rs 38,864 crore. A deal with Reliance Jio, which means assured business, increases the chances of RCom finding a strategic investor. Brokerages too are taking a cautious view on the RIL and RCom stocks as no details are available on the deal. We continue to remain neutral on the stock as of now and wait for clarity on the nature of payments, rentals, etc, Angel Brokings Telecom Analyst Ankita Somani said in a research note. The Reliance Industries scrip closed down 0.97 per cent at Rs 784.6 on the BSE, while the RCom ended at Rs 116.1, 1.1 per cent lower than Thursdays closing price. Copyright 2013, Kasturi & Sons Ltd., Chennai All Rights Reserved.

5. Import lobbies threaten every oil minister: Veerappa Moily PTI | Jun. 14, 2013 NEW DELHI: In a stunning comment, oil minister M Veerappa Moily on Friday said petroleum ministers are "threatened" by import lobbies not to take decisions that will cut India's $160 billion oil imports. Moily, who has been under attack from the CPI leader Gurudas Dasgupta for proposing to hike natural gas prices by 60 per cent, said he has been striving to attract investments in almost stagnant oil and gas exploration which will lead to higher domestic output and lesser reliance on imports. "I am telling you with all sense of responsibility (that) we are floating in oil and gas in this country. And we don't explore it. We put every obstruction not to do it. There is bureaucratic obstructions and delays. "And also there are other lobbies. They don't want us to stop imports. There are some lobbies who are working on that. Every minister is threatened many a times. Every minister who occupies this position is threatened," he told reporters here. Moily however refused to name anyone or identify anyone who may have directly or indirectly threatened ministers. "History will speak about it. It is for you to judge," he said, adding oil imports will rise dramatically if domestic production is not incentivised through right pricing policy. "This (increase in oil imports) will work to the detriment of the country. We are challenged by the vagaries of international price," he said. The revision in natural gas prices was aimed at reviving investor confidence and attracting investments, he added. "For the last 4-5 years, investor sentiments is not that high... We have to give right price, otherwise nobody will come. One well (in the ultra deepsea) may sometime cost in millions of dollars," he said. Moily said he has proposed to the Cabinet Committee on Economic Affairs (CCEA) the raising of domestic gas prices from current $4.2 per million British thermal unit to $6.775. Moily said he will not be cowed down by any lobby and will continue to work for any India energy independent by 2030. "I am not helpless. Any timid minister will not go forward... I have come here to strive hard for the sake of the country, to work for the country. If anybody thinks that decision making process in the oil sector will be prevented they are totally wrong," he said.
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"After having dismantled many of the obstacles, it is in the national interest to go for aggressive exploration. Investors should also come. They should be attracted it is not done now," Moily said. India spent a record $160 billion on import of oil last fiscal and the geographical progression is that imports are going up, he added. Raising domestic oil and gas production by increased exploration is the answer but decisions are not taken which is hurting the country. "Decisions are not taken. Trend is not to take decisions here. I don't want to blame anybody. This is the fate of the country," he said. Asked about Dasgupta's allegations that the gas price hike was to benefit Reliance Industries Ltd (RIL), he said he and his ministry are open to any solution that will help unshackle the present grid of noninvestment-no-production and increased imports. "I had called him (Dasgupta) but he is not prepared to come for a discussion. But I can reassure Gurudas Dasgupta or whosoever is there in the market, all the criticism should be there, but it should not get personal," he said. He said he was open to any suggestion of the CPI leader. "I am open to any suggestion by Gurudas Dasgupta or any other person. If they can come out with best solution, we are open it as after all we are doing this in the interest of the country. "But in the process of ego, in the process of lobbying and in the process of just criticising for stake of criticism or in the process of politicising, don't commit national crime. Don't prevent exploration in the country. Let us move ahead more aggressively, it is in the best interest of the country," he said. Moily added: "We had suggested $6.7. It is for CCEA to reduce it or increase. I am not playing for any lobby. I am playing for national lobby. I will ignore lobby. Anybody has useful suggestion, they can give it to me. The history will speak about it. it is for you to judge."

6.1. TCS forays into US government space Business Standard, May 30, 2013 Bangalore: After tasting fair amount of success in India and a few other emerging countries, Tata Consulting Services (TCS), Indias leading information technology (IT) services company, is foraying into the government vertical in the US. Initially, the company is focusing on states and local governments in the US, as working with the federal government requires it to fulfil stringent conditions. Among US states, TCS has already started working with the Mississippi government and is in the process of bagging a contract from another state, an announcement on which is expected soon. We are mostly focusing on state and local governments and we are finding a l ot of traction in the unemployment insurance and city taxation areas because of our expertise in working on tax automation with a number of states in India, Tanmay Chakrabarty, vice-president & global head (government industry solutions unit, TCS, told Business Standard. He said the company had already made inroads into the city taxation space in the US, through which cities collect taxes on behalf of the federal, state and local governments. The company is implementing tax automation systems in seven cities across the US. TCS has wide experience in automating tax collection in India it automated value-added tax collection in 13 states. Subsequently, it also worked with a few countries in east Africa, including Uganda, Zambia and Kenya, in automating their taxation systems.

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For TCS, the government business unit is one of the fastest growing areas, growing 35-40 per cent a year. Chakrabarty said though the business unit was a single-digit contributor to the companys overall revenues, our target is to m ake it a double-digit revenue contributor in the next three years. For the year ended March, TCS reported revenues of Rs 62,989 crore ($11.6 billion). Industry experts say so far, TCS is the most successful company in the government vertical in India, compared to other Indian or global IT services companies. Despite the belief that government business wasnt substantially profitable, TCS made early investments in developing specific solutions and frameworks to address issues involving governance. Now, the company is trying to replicate its success in this segment in a few emerging countries in the east Africa and Latin America, as well as developed markets such as the US and the UK. Recently, the company had bagged a core system integrator contract from the Department of Posts, tipped as one of the most prestigious e-governance contracts in the country. The contract was valued at about Rs 1,100 crore. It was said this was the second-largest contract for the company in Indian government space, after the Rs 2,000-crore Passport Seva Project of the Ministry of External Affairs. Our philosophy is to build in India, demonstrate the scale and complexity here, and then take it to the rest of the world. That is what we are doing, Chakrabarty said. TCS is also focusing on countries such as Columbia and Mexico, targeting opportunities in their financial and healthcare segments. Passport Seva completes 3 years in Bangalore Passport Seva Project, the mission mode programme of the Ministry of External Affairs, has completed three years of operations in Bangalore. In 2010, a pilot phase of the project was launched in Bangalore. Since the project was implemented, 1.17 million passport applications have been processed in Bangalore. TCS had bagged the project in 2008.

6.2. TCS bags Rs 1,100 cr ($200 million) contract from Department of Posts PTI | May 29, 2013 MUMBAI: Tata Consultancy Services (TCS) on Wednesday said it has bagged a six-year contract from the Department of Posts (DoP) worth over Rs 1,100 crore. The end-to-end IT modernisation programme to be implemented by TCS will equip India Post with modern technologies and systems to enable it to provide services to customers in an effective manner, TCS said in a statement. The scope of the project, dubbed India Post 2012, includes developing and supporting mail, finance and accounts, HR, and customer interaction management solutions for all channels including Rural ICT platform. Under the deal, TCS will also manage data migration, infrastructure, Service Level Agreement (SLA), call centre and centralised 24x7 service desk operation for DoP, it said. The end-to-end security solutions, Enterprise Management System (EMS) and over all integration for entire system is the responsibility of core system integrator (CSI), the statement said. "India Post has a vision of being a technology-enabled self-reliant market leader and is looking to move from a government service provider to a customer-enabled service provider where the customer will be the focus of multifarious service delivery platforms," DoP secretary P Gopinath said.
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Increased urbanisation, demand for financial services, increased funding by the government for the weaker sections and the rural sector have opened up new opportunities for India Post, which has necessitated development of new processes and supporting technology. "The core system integrator project is about service delivery transformation through a technology-led, service- oriented approach to offer world class delivery of postal services to Indian citizens," TCS vice president and global head (Government Industry Solutions Unit) Tanmoy Chakrabarty said.

6.3. Top five Indian IT services firms grew 13 per cent in 2012 Business Standard, May 29, 2013 Bangalore: Last year, the top five Indian information technology (IT) services providers - Tata Consultancy Services (TCS), Infosys, Wipro, HCL and Cognizant- together grew 13.3 per cent, accounting for revenues of $34.3 billion. During the same period, the overall IT services industry grew just two per cent, research and advisory firm Gartner said today. However, the companies' growth was lower than 21.8 per cent, their combined growth in 2011. The Gartner report includes the Nasdaq-listed Cognizant, as the company predominantly has an Indiabased delivery model and its management is largely India-based. According to the report, though the growth of India-based providers had slowed for some years, the trend was more pronounced last year. However, "this growth rate is still quite high compared with IT services worldwide, or the growth of the top 10 global IT services providers", it said. The top five Indian IT services companies improved their market share from 3.5 per cent in 2011 to 3.7 per cent in 2012, the report said. Cognizant, which overtook Infosys in terms of annual revenues in 2012, improved its global ranking from 28 in 2011 to 23 in 2012. The difference between the revenues of TCS and 10th ranked Hitachi was about $1.5 billion, the report said. In 2012, TCS continued to hold on to its global ranking of 16. "The top five Indian service providers have continuously chipped away market share from large multinational corporation providers. In the past five years, they have been winning large outsourcing deals (those with a total contract value of more than $100 million)," said Arup Roy, research director at Gartner. "Most of these firms have a large-deal pursuit sales team, which goes after deals of more than $35 million in contract value," he added.

6.4. Private banks: Game changers in Indian banking Aparna Ramalingam, TNN | May 22, 2013 CHENNAI: The entry of private banks with high efficiency operating models, deployment of integrated technology platforms, new risk paradigms and above all, the emergence of highly demanding customer segments have all contributed to transformation in the banking sphere, according to the recently released ICC-KPMG Banking report. "We believe that for India to achieve the GDP growth rate of 6-7%, the banking sector will have to play a pivotal role. Banks will have to focus on emerging middle India, rural customers and MSME (micro small and medium enterprises) sector especially in the eastern and north eastern states," Ambarish Dasgupta, head, management consulting, KPMG, India said. A major trend highlighted by the report was that raising of capital by public sector banks could be a problem in the future. "Assuming an annual credit growth rate from FY12-FY21 at 20% and the annual risk weighted asset growth rate at 22%, KPMG expects the Tier-I capital requirement for public sector banks for the same period to be in the range of Rs 9,60,000 crore. The government's intent to not dilute
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their stake leaves them with few options," the report said. The report went on to add that the government could consider creating a holding company (Holdco) and transfer its stake in the PSBs (public sector banks) to this company. The Holdco can raise long term debt from domestic and international markets to infuse equity in the PSBs and act as an investment company for the Government of India. Another option for the government could be to consider diluting its stake in PSBs through issuance of differential voting rights (DVR) such that the economic stake dilution is also kept to the minimum. The Government may also consider in the future on having a golden share in each of the PSBs under which while the Government's economic and voting stake may fall below 51%, it will always have the right to control the respective PSBs due to the possession of this golden share.

6.5. IT spending by banking, securities firms to touch Rs 42,200 crore ($7.540 million) The Hindu Business Line, May 24, 2013 Mumbai: Indian banking and securities companies will spend Rs 42,200 crore (Rs.422 billion) on IT products and services in 2013 a 13 per cent rise from Rs 37,300 crore a year ago. IT services is the largest overall spending category at Rs 13,200 crore in 2013. This confirms the strong focus on the financial services sector by IT service providers, according to a study by research and analyst firm Gartner. Software is forecast to achieve the highest growth rate among the top-level IT spending categories at about 18 per cent in 2013. The forecast includes spending by financial institutions on internal IT (largely personnel), hardware, software, external IT services and telecommunications. The expansion strategy of banks is still paramount in India, as well as in other countries of the APAC region. The Reserve Bank of India is making plans to increase the penetration of banks across the country and even opening up the market to new entrants, said Gartner Research Director, Vittorio DOrazio. In these cases, the front office technologies for the branch will be very att ractive. However, to increase their penetration in India, banks will follow the leverage your customer device (LYCD) trend. This will evolve the relationship between the bank and its customers over the mobile channel without remarkably increasing IT costs. In fact, we see the penetration rates of the smartphone devices in the triple digits range, which is far greater than any branch expansion rate, DOrazio said. Copyright 2013, Kasturi & Sons Ltd., Chennai All Rights Reserved.

7.

Teledensity rises from 7.04 pc to 73.07 pc in last nine years average call rates (per minute) drop to 47 paisa (0,007) from Rs 2.89 (0,041) Press Information Bureau, May 29, 2013 New Delhi: The Indian telecom sector has registered a phenomenal growth during the past few years and has become second largest telephone network in the world, only after China. A series of reform measures by the Government, the wireless technology and active participation by private sector played an important role in the exponential growth of telecom sector in the country. National Telecom Policy-2012 (NTP-2012) was announced with the primary objective of maximizing public good by making available affordable, reliable and secure telecommunication and broadband services across the entire country. With the implementation of NTP 2012, the number of telephonic connections rose exponentially. The number of telephone connection was 893.14 million as on January 2013 with the rural telephone connections having increased by nearly 10 million in the last year. The overall teledensity stood at 73.07 per cent as on January 2013 with the rural teledensity crossing 40 per cent. This is in sharp contrast with
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the overall teledensity of 7.04 per cent and rural teledensity of merely 1.7 per cent in March 2004. As far as mobile penetration is concerned, the preference for use of wireless telephony continues. The share of wireless telephones increased from 96.62% as on March 31, 2012 to 96.74% by the end of June 2012 and thereafter slightly declined to 96.56% by the end of December 2012. On the other hand, the share of landline telephones slightly increased from 3.38% to 3.44% during the period from April to December 2012. The wireless subscriber base increased from 33.6 million in March 2004 to 864.72 million as on December 2012. On the other hand, the average tariff for each outgoing call per minute for GSM services dropped from Rs. 2.89 (0,041) in March 2004 to 47 (0,007) paisa in December 201 .

8.1. Government, bank collaborate to offer Saudi returnees rehabilitation Sushma U N & Rajesh Chandramouli, TNN | May 22, 2013 CHENNAi: With thousands of Keralites returning to India from Saudi Arabia following the promulgation of a labour law which seeks to reserve 10% of jobs for locals there, the department of Non Residents Keralites Affairs (Norka), the government of Kerala and the State Bank of Travancore (SBT) have come together to offer the returnees financial schemes to support their rehabilitation. Over the last few weeks, thousands of labourers have returned to Kerala, after the 'Nitaqat' law in Saudi Arabia made it mandatory for local companies to reserve at least 10% jobs for Saudi nationals, which resulted in a lot of migrant laborers from India- especially Kerala - losing jobs and thus forced to return to India. About 4,000 people have already returned, and over 18,000 more are expected over the next few weeks. The three entities together are working on a package where, in return for a promise to bank with them, the SBT will offer loans to the returnees at soft rates to take up jobs or skill upgradation programmes offered by Norka. More banks are expected to join the programme. "The Nitaqat law is bad news for Indians working out of Saudi Arabia. In the short term is good news for all banks as people who come back to India will bring in all their savings and banks will get increased business. But, we do not want this," P Nanda Kumaran, MD of SBT said. Norka, which focuses on welfare of the state expatriate community, is also calling for more such schemes from other agencies as well. "Norka could work around skill upgration while as a banker we will provide loans with very soft interest rates. Between the three partners, we want to ensure gainful employment of those who come back to India for good," Sajeev Krishnan, chief general manager, SBT said. Norka's secretary Rani George said, "The scheme with SBT is one of the schemes we are exploring. We are working with different government departments like the department of fisheries or agriculture, the state finance agencies and many other banks. A cabinet sub-committee has been set up to work this out, and the schemes will have to be cleared by the cabinet." The clearance from the cabinet is expected by the end of the month, she said. 8.2. Indo-Australia pact to train farm workers The Hindu Business Line, May 24, 2013 Chennai: India and Australia have signed a memorandum of understanding (MoU) to strengthen

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cooperation in training farm workers that could grow to 12-15 million in the coming decades. The training will be an industry-oriented one. The MoU was signed between the Agriculture Skills Council of India and AgriFood Skills, Australia. It also aims to set benchmarks for certification and information. A brainchild of the Prime Ministers of both the countries, the MoU is part of a larger collaboration in other fields such as telecommunication, retail, mining, media and entertainment. Satender Arya, CEO, Agriculture Skill Council of India, and Arthur Belwitt, CEO, Agrifood Skills Australia, signed the partnership pact in the presence of Patrick Suckling and Dilip Chenoy, CEO of the National Skills Development. Copyright 2013, Kasturi & Sons Ltd., Chennai All Rights Reserved.

8.3. Indo-Dutch agri initiative plans 10 centres of excellence The Hindu Business Line, May 27, 2013 New Delhi: The Indo-Dutch joint initiative in agriculture envisages setting up about 10 centres of excellence (CoEs) in Punjab, Gujarat, Kerala, Maharashtra and Karnataka in the next few years, a move that could help raise output and yields. dairy, banana Of this, three CoEs are to come up in the dairy sector in Kerala, Punjab and Gujarat, showcasing the latest processing technologies. Four CoEs are to be set up in horticulture in Maharashtra, Karnataka, Gujarat and Punjab. One centre each for piggery and banana ripening will be set up in Kerala, said Arie Veldhuizen, Counsellor for Agriculture, Embassy of the Netherlands, in New Delhi. Speaking to reporters on the sidelines of a seminar on How to double food production in five years, organised by Confederation of Indian Industry and the Netherlands Embassy, Veldhuizen said the State governments had shown keen interest in setting up these centres. improving yield We will showcase our technology in these centres and see how we can help the Indian farmers in improving the yield, he added. Alphonsus Stoelinga, Ambassador of the Netherlands, said India had to intensify its agriculture to enhance output and at the same time prevent losses in the food supply chain. The joint initiative is all about the Indian and Dutch authorities and the private sector sharing technology know-how and developing skills to double food output here, he added. Copyright 2013, Kasturi & Sons Ltd., Chennai All Rights Reserved.

8.4. Punjab approves four milk plants worth Rs 250 crore each IBEF: May 28, 2013 New Delhi: The Government of Punjab gave its approval to the expansion plan of state-owned Milkfed entailing setting up of four mega milk plants worth Rs 250 crore (US$ 44.83 million) each in the state. The aim is to make Verka as a largest selling brand and that could be realised only by giving a big push to expansion of Milkfed, said Mr Sukhbir Singh Badal, Deputy Chief Minister of Punjab, Government of India. The expansion plan would focus on right from encouraging dairy sector, setting up organised dairy farms,
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reorienting procurement of raw milk, scientific collection and chilling chain, ultra-modern milk processing facilities, value addition of milk products and effective marketing network to exploit the brand image of Verka, added Mr Badal. In order to strengthen dairy sector at the grass root level, a specialised scheme for encouraging women in the sector that would provide subsidised loan to them to set up farms, technical help for setting up of dairy farms and support to such units by providing veterinary care and farm feed to dairy entrepreneurs in order to strengthen dairy sector from grass root level has also been approved. Mr Badal asked Mr S K Sandhu, Principal Secretary Cooperative to put up a proposal for giving dairy sector an equivalent status as of agriculture for the purpose of bank credit. We have to increase the processing capacity four-fold and these plants should be of international standards with ISO 9002 specifications, said Mr Badal. He further highlighted that the new diversification plan has a special incentive for the farmers who would switch over from paddy or wheat farming to complete fodder farming.

8.5. Ruchi Soya partners Japan companies for edible oil Business Standard, Jun. 06, 2013 Mumbai:To introduce a super premium edible oil brand which Indian consumers have never witnessed, Ruchi Soya Industries, Indias leading food and agro-based FMCG player, has inked a joint venture with J-Oil Mills Inc and Toyota Tsusho Corporation (TTC), both from Japan. Under the terms of agreement, a joint venture company would be formed soon by the probable name of Ruchi J-Oil in which Ruchi Soya would have a majority stake of 51%. While J-Oil, the technology partner in the joint venture, would have 26% stake with the remaining 23% proposed to rest with TTC. This alliance is an important step towards our business strategy of expanding our product portfolio by bringing value added and healthier products. We will provide raw materials and necessary marketing and distribution assistance to the JV. J-Oil will provide technical assistance and TTC with its rich global experience will provide management assistance for internal control and access to international markets through its network, said Dinesh Shahra, Founder and Managing Director, Ruchi Soya. In the joint venture, however, Ruchi Soya would look into manufacturing, branding sales and distribution with the companys existing expertise in these areas. For this, however, Ruchi would transfer its existing soya processing business in Shujalpur in Madhya Pradesh to the joint venture to fetch Rs 40 crore. The objective of this joint venture unit would be to introduce new edible oil for Indian market which local consumers have experienced in the past, a Ruchi Soya official said. The JV will be managed by a board consisting of representatives from all the three companies. The JV plans to start supplying products to the institutional customers by the end of 2013 and launch high quality consumer products for the Indian markets in the second half of 2014. Justifying the need of such joint venture, Sumikazu Umeda, President & CEO, J-Oil Mills, said, The main purpose of this investment is to start our first ever business activity overseas in a promising country like India. J-Oil sees India as a vast and fast growing market and has plans to establish as a leading company in high quality value added edible oil segment. "Ruchi J-Oil JV provides us appropriate crossover opportunity to leverage our business networks, product portfolios, and skill sets. We create Global Vision 2020 in which we identified three business areas that we expect sustainable growth. We aim to expand food business in life and community field, said Yoshiki Miura, Managing Director, TTC.

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8.6. Spices exports cross Rs 10,000-cr mark The Hindu Business Line, Jun. 11, 2013 Kochi: Despite the continuance of global recession and economic slump in the overseas markets, Indias spices exports have crossed the Rs 10,000-crore mark. A total of 6,99,170 tonnes of spices and spice products valued at Rs 11,171.16 crore ($2,040.18 million) has been exported in FY13 against 5,75,270 tonnes valued Rs 97,83.42 crore ($2,037.76 million) in FY12. It is for the first time that the growth in volume of exports registered an all time high of 22 per cent and 14 per cent in value. The total exports have exceeded the target in terms of both quantity and value. Compared to the target of 5,66,000 tonnes valued at Rs 8,203.50 crore ($1,650 million) for FY13, the achievement is 124 per cent in terms of quantity and 136 per cent in rupee and 124 per cent in dollar terms of value. As the exports of cumin, mint and chillies show sharp improvements during 2012-13, the pattern of trade is showing perceptible changes. New spices are gaining prominence in the export basket, A. Jayathilak, Chairman of Spices Board said. Mint products, cardamom (large), chilli, coriander, cumin, fennel, fenugreek, celery, other seeds such as mustard, aniseed, ajwain seed, nutmeg and mace, garlic, asafoetida, tamarind, curry powders/pastes, oils and oleoresins, etc. are the star performers recording rise in exports both in terms of volume and value. Traditional spices such as pepper, cardamom (small) and ginger had shown decrease both in terms of volume and value as compared to last year. The export of seed spices witnessed a phenomenal growth both in terms of quantity and value. A total of 1,86,075 tonnes of seed spices valued at Rs 1,672.99 crore was exported in FY 13. Break up In the case of cumin, a total quantity of 79,900 tonnes valued Rs 1,093.17 crore was exported against 45,500 tonnes valued at Rs 644.42 crore. Fennel showed an increase of 80 per cent in terms of quantity and 58 per cent in terms of value whereas fenugreek marked a rise of 43 per cent in quantity and 49 per cent in value terms. In terms of coriander, 37,100 tonnes valued at Rs 210.77 crore have been exported. With high demand for its value-added products, mint continued to mark an increase of 49 per cent in value and 35 per cent in volume. A total of 19,980 tonnes of mint products were exported at a value of Rs 3,321.79 crore. Garlic showed a whopping increase both in terms of quantity and value when 24,000 tonnes (2,200 tonne in FY 12) were exported at a value of Rs 74.49 crore (Rs 14.15 crore). Chilli continued to remain upbeat when a total quantity of 2,81,000 tonnes of chilli valued at Rs 2,261.44 crore have been exported against 2,41,000 tonnes valued at Rs 2,144.08 crore. While the export of small cardamom declined both in terms of volume and value, large cardamom showed a rising trend in the export market with an increase of 18 per cent in quantity and 8 per cent in value. Copyright 2013, Kasturi & Sons Ltd., Chennai All Rights Reserved.

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8.7. Guar gum India's biggest agricultural export item for a second year Business Standard, Jun. 17, 2013 New Delhi: For a second year, guar gum has emerged as Indias largest item of agricultural export. And, responsible for pushing the countrys overall farm exports to Rs 120,000 crore in 2012-13, show data from the Director General of Commercial Intelligence and Statistics (DGCIS). Guar gum has seen rising demand from big Western oil companies on its use as a controlling agent in oil wells for facilitating easy drilling and preventing fluid loss. Between 2010-11 and 2012-13, it has registered 624 per cent rise in exports in value terms. India is the worlds largest producer of the gum. On average, the country produces 1-1.5 million tonnes of guar annually. Almost 40 per cent of guar gum produced in the country is used for industrial purposes. In 2012, guar prices in the world markets rose a massive 800-1,000 per cent, chiefly due to large-scale stocking by multinational oil companies over fears of short supplies, following drought in India. Of Indias total agricultural exports of Rs 120,000 crore in 2012-13, guar gum accounted for 18 per cent, DGCIS figures show. In 2010-11, guar gums total share in Indias overall export of agricultural items was just seven per cent. Basmati and non-basmati rice, traditionally the flag bearers of Indian agricultural exports, have also risen in export value, but have not managed to upstage guar gum as the primary item. Between 2010-11 and 2012-13, export of basmati rice increased 71 per cent in value terms, while that of non-basmati rice rose a massive 6,000 per cent, pushing India to the pole position in this segment globally in 2012. The share of basmati rice in Indias total agricultural exports from 2010-11 to 2012-13 dropped from 26 per cent to 16 per cent. However, the share of non-basmati rice showed a considerable jump from 0.52 per cent in 2010-11 to 12 per cent in 2012-13, primarily because of the governments decision to lift the ban on its export. Another item that logged impressive growth in exports, according to the data, was flowers rising 43 per cent in value terms between 2010-11 and 2012-13, to Rs 423 crore.

9.1. MSMEs share in exports to grow to 50 per cent by 2017 IBEF, May 24, 2013 New Delhi: The contribution of micro, small and medium enterprises (MSME) in Indias total exports in the 12th Five Year Plan (2012-17) is expected to grow to 50 per cent from 36 per cent, according to Mr K H Muniyappa, Minister of State (Independent Charge) for MSME, Government of India. The growth is expected on back of increasing demand from the western and emerging markets. MSMEs contribute 8 per cent to Indias gross domestic product (GDP) and 45 per cent to its manufactured output. It provides employment to over 80 million people engaged in over 36 million units, producing more than 6,000 products. Adequate credit is paramount to the success of micro and small units, said Mr Muniyappa. To ensure better flow of credit to MSMEs by minimising risk perception of banks/ financial institutions in lending

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without collateral security, the Government is implementing the Credit Guarantee Scheme, further added Mr Muniyappa. The scheme provides guarantee cover of up to 85 per cent on collateral free credit facility and is extended by lending institutions to new and existing units for loans up to Rs 10 million (US$ 179,663). Till April 2013, more than 1.1 million proposals have been approved under the scheme providing guarantee cover for total sanctioned amount of Rs 54,322 crore (US$ 9.76 billion), said Mr Muniyappa.

9.2. MSME share in exports was 43% in 2011-12 Business Standard, Jun. 04, 2013 Chennai: The share of exports by micro, small and medium enterprises (MSME) in India's total exports has been provisionally estimated at 43 per cent in 2011-12, according to the ministry of MSME. Besides, the ministry estimates total fixed assets of MSMEs in India at Rs 689,000 crore and the number of people employed by the sector at around 80 million. Minister of State (Independent Charge) for MSMEs K H Muniyappa said in the Rajya Sabha recently that "under a revised method of estimation, the share of MSME product exports in total exports of India has been provisionally estimated at 43 per cent in 2011-12". According to Directorate General of Commercial Intelligence and Statistics (DGCI&S) data, in the last three years, MSME exports increased by almost 60 per cent - from $82,494 million in 2009-10 to $131,483 million in 2011-12. The main markets for the 20 most-exported MSME product groups, which accounted for more than 90 per cent of MSME exports from 2009 to 2012, include the USA, European Union (EU), UAE, Turkey, Singapore, Hong Kong, Israel and Saudi Arabia. (TOP-10 STATES BY MSME FIXED ASSETS) The product groups include pearls, precious stones and metals; electrical and electronic equipment; textiles, apparel and accessories; pharmaceutical products; machinery and mechanical appliances; items made of iron or steel; organic chemicals; vehicles other than railways and tramways; plastics, rubber and articles made from them; footwear, leather and leather products; travel goods; tools, implements and cutlery; tanning and dyeing extracts, tannins, derivatives and pigments; essential oils, perfumes, cosmetics and toiletries; stone, plaster, cement, asbestos and mica; carpets and other textile floor coverings; furniture, lighting, signs and prefabricated buildings. "The MSME sector of India has been repeatedly mentioned as the growth engine of the Indian economy, but the depth of its achievements is often not fully appreciated," Muniyappa said on another recent occasion. The MSME sector, with 36 million enterprises having fixed assets of Rs 689,000 crore and 80.5 million employees, contributes around nine per cent of India's GDP and accounts for around 45 per cent of manufacturing output. It has been continuously growing at a rate far above the large sector.

9.3. DHL Express to hold clinics for SMEs Business Standard, Jun. 04, 2013 Chandigarh: In order to empower India's SMEs, logistics service provider DHL Express India (P) Ltd plans to organise 30 SME clinics, especially in Tier-II and -III cities, by next year. The clinics will act as a knowledge forum that would help address SME clusters' logistics needs as well as other requirements in the areas of human resources, marketing, finance and technology. The SME sector contributes more than half of DHL Express' revenues and this year it is expecting a 3040 per cent growth in business from the sector. Across India, the logistics service provider has 37,000
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SME clients. Sandeep Juneja, DHL Express' senior director, national sales, told Business Standard: "SMEs are our prime focus area and we are using different initiatives to help them. One such initiative is SME clinics, which will enable SMEs to get a first-hand glimpse of how to reduce cost and time by sending goods directly to stores instead of routing them via a warehouse, using our network. Our experts at these clinics will address issues related to supply chains, finance and exports." He added that exports created tremendous opportunities for SMEs, opening up new markets for their products and services, and give them access to international best practices and innovations. "There are clearly still some hurdles that remain for small businesses with global aspirations. As a global logistics company we make this process more efficient, and we will continue to tailor our services and solutions to help SMEs grow and compete globally."

10.1. Zydus to launch 1st new chemical entity by Indian Company TNN | Jun. 6, 2013 AHMEDABAD: Drug maker Cadila Healthcare on Wednesday said that its new chemical entity (NCE), Lipaglyn, has been approved by the Drug Controller General of India (DCGI). Lipaglyn is the world's first drug for treating diabetic dyslipidemia and combines lipid- and glucoselowering effects in a single molecule. The drug, which is the first glitazar to be approved anywhere in the world and the first Indian NCE, is expected to be launched in India by 2014. Diabetic dyslipidemia is a condition where a person is diabetic and has elevated levels of the total cholesterol. "Lipaglyn provides patients suffering from diabetic dyslipidemia the option of a once-daily oral therapy that has a beneficial effect on both lipid parameters as well as glycemic control," said Pankaj Patel, chairman and managing director, Zydus Cadila. Patel dedicated the breakthrough to all the Indian research scientists in the field of drug discovery. "Zydus has indicated that it needs to spend another $150 million to $200 million to launch the drug outside India. The company expects this to be a blockbuster drug, which means over $1 billion sales a year globally. In India, the company expects to achieve sales of around Rs 100 crore in the next three years. We expect the full impact of the drug to be visible in FY2015. On a conservative basis, the company can add Rs 30-50 crore in FY2015 on the sales front," said Sarabjit Kour Nangra, a pharma analyst. Research has shown that diabetes is one of the major risk factors of cardiovascular diseases. India has a population of nearly 65 million diabetics and 77 million pre-diabetics, where 85-97% of the diabetes patients suffer from dyslipidemia or lipid abnormalities. Zydus Research Centre initiated the study in 2000. The company said that it will offer a dedicated Lipaglyn support programme to patients and caregivers to start and appropriately manage their disease and therapy over time.

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10.2. Aurobindo Pharma to launch 20 drugs in US this year The Hindu Business Line, Jun. 10, 2013 Hyderabad: Aurobindo Pharma Ltd has lined up about 20 product launches in the US market in the current financial year which may improve its margins. This was disclosed by Robert Cunard, Chief Executive Officer, Aurobindo Pharma, US, in the recent earnings call. A big question is what the Food and Drug Administration (FDA) does as far as the review time is concerned. But for FY 14, we expect 16 to 20 oral solid launches in the US market, he said. Of these, three products were expected from the Hyderabad-based companys Aurolife facilities in the controlled substance area and one in the over the counter segment, he added. We do expect that some the molecules/key launches will be of little higher margins and continue to drive our growth, he said. The revenue to be generated on the new product side should be similar to what was witnessed last year which was about 14 per cent of the companys total revenue in the US. LOSSES IN EUROPE On the improvement in the performance of European subsidiaries which were incurring losses in the last two years, N. Govindarajan, Managing Director, said there could be some improvement. The subsidiaries in the UK and the Netherlands became profitable last year and Spain and Germany would become positive during the current financial year. The performance in Italy and Portugal might take some more time. Over all, all European subsidiaries put together, we will be making a profit in the next year, he said. Aurobindo Pharma posted consolidated net profit of Rs 108.6 crore for the fourth quarter ended March 31, 2013, almost same as in the year-ago period. Its scrip dropped 0.83 per cent on the BSE on Friday to close at Rs 184.15. Copyright 2013, Kasturi & Sons Ltd., Chennai All Rights Reserved.

11.1. Hero Cycles ties up with German firm for Euro invasion Nandini Sen Gupta, TNN | May 22, 2013 CHENNAI: Hero Cycles is all set to aggressively target the lifestyle/recreational cycle market in India as well as foray into the European market for a volume leadership position riding on a "strategic alliance" with a German partner. As part of the alliance, which will involve an equity stake, the company is setting up a new factory in Mangli in Ludhiana with an annual capacity of one million bicycles. Along with its second new plant in Bihar - also with one million capacity - the company will spend around Rs 170 crore on its capacity expansion. Speaking to TOI, Pankaj Munjal, co-chairman & MD, Hero Cycles said: "The Mangli plant is primarily for our German strategic alliance catering to the premium high-end segment in India and entry level segment in Europe.With our technology and cost leadership we hope to crack this market which is worth $37 billion globally."
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Hero's premium foray is understandable. India's 15.5 million units strong cycle market shrank by 7.5% last year but the "recreational/lifestyle segment" grew "30% though on a small base," said Munjal. Traditionally, the black commuter usage cycles comprise 60% of India's bicycle market. The remaining 40% is dominated by the kids' segment with the recreational segment comprising a small, but growing, niche. Premium recreational bikes can cost anywhere from Rs 30,000 to Rs 1.5 lakh but their numbers are still small. "The profile of this customer is changing rapidly," said Munjal. "This segment is also quite price inelastic." The push towards a value-added premium segment makes sense given the big number of Chinese imports in the cycle market. Besides, the lifestyle-recreational segment also has the added opportunity of biking accessories. "For every Rs 10,000 spent on a bike in this segment, another 5-7% are spent on accessories," said Munjal. "We sell accessories too and are developing them and this segment is also seeing a lot of technology go into the cycle including, for instance, a GPS tracking system on the Rs 1 lakh bike," he added. Hero expects its new plants to not only give it a strong foothold in India but also offer it access to Europe through its German alliance. "We already enjoy leadership in India and the target is to achieve leadership in Europe," he added. Hero currently sells around 5.5 million units in India and with the two new plants, the capacity will go up to 8 million units. "The plant in Bihar is meant to cater to Bihar and Jharkhand markets and we are already doing 3000 units a day there to cater to the government scheme of giving cycles to below poverty line families," said Munjal.

11.2. Honda opens third 2-wheeler plant in India Business Standard, May 29, 2013 Narasapur: Honda Motorcycle and Scooter India (HMSI), Indias second-largest two-wheeler company, plans to expand its installed annual capacity 15 per cent to 4.6 million units by March 2014. On Tuesday, the company inaugurated a plant at the industrial area here, 58 km from Bangalore, its third plant in the country, after those in Manesar in Haryana and Tapukara in Rajasthan. The three plants have a combined capacity of four million units a year. The Narasapura plant would initially produce 1.2 million units a year. By March 2014, additional capacity of 600,000 units would be added, through a third assembly line, said Keira Muramatsu, president & chief executive. The Narasapura plant would see a total investment of Rs 1,350 crore, including the funds for expansion. The company has acquired 23 acres from the Karnataka government for creating additional facilities such as a safety riding track. By the end of this financial year, the plant, spread over 96 acres, would provide employment to 4,500 people, said Yadvinder Singh Guleria, vice-president (sales and marketing). The company would produce the Dream Yuga motorcycle at the plant from June. Two months later, it would start manufacturing Activa scooters on the second assembly line, he added. Accordingly, the company would reduce the Activas waiting period from the current 15 days. At present, 100,000 customers are waiting for delivery of the Activa in cities such as Bangalore, Kochi, Trivandrum, Chennai, Hyderabad and Vizag, he said.Seeing the current trend of demand for scooters and motorcycles, we have decided to expand the capacity by 6,00,000 vehicles by the end of this financial year to raise the total capacity to 1.8 million units in Narasapura.

12. Network Rail (UK) selects Cognizant as key systems integration framework partner Dileep Athavale, TNN | Jun. 5, 2013

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PUNE: Network Rail, leading rail infrastructure provider in the UK, has selected IT services company Cognizant as a key IT solutions and systems integration (SI) framework partner to provide a wide range of SI services. Through the SI framework, Cognizant will support Network Rail in implementing improvements in the way the company operates a number of its core information management functions and processes, including reliability of the infrastructure and performance. Through this partnership, Network Rail will exploit the right tools, technology and information to better align with wider external industry stakeholders in transforming the rail industry through a period of unprecedented growth in demand and investment in the nation's railway infrastructure. Network Rail anticipates investing in more than 500 initiatives, driving greater business value from technology during the four years of the SI framework partnership. The scope of the partnership ranges from infrastructure to enterprise IT functions. Cognizant will be integral to the management of the entire supply chain, collaborating within Network Rail's internal organization to ensure knowledge sharing, smooth transition and innovation. In addition, Cognizant will be required to efficiently and effectively implement IT solutions as a lead supplier, priming, where appropriate, other market suppliers and solution providers. Rohit Gupta, head of Cognizant's manufacturing, energy and transportation practice in the UK said. "Over the next 30 years, passenger demand for rail will more than double and freight demand is expected to go up by 140%. To meet this ever-growing need, we will closely collaborate with Network Rail and ensure that their IT systems are future-ready.

13. Indian companies' overseas investment trebles to $7.64 billion in April PTI | Jun 13, 2013 MUMBAI: Overseas direct investment by Indian companies more than trebled to USD 7.64 billion in April, from USD 1.89 billion in March, data from the Reserve Bank showed on Thursday. As many as 499 deals were carried out by the Indian companies during the first month of the current fiscal to carry out the outward foreign direct investment, it said. Bharti Airtel, ONGC Videsh, Suzlon Energy, GMR Infrastructure, Amtek Auto and Tractors and Farm Equipment were among the major companies that invested in their overseas arms during the month. Bharti Airtel committed USD 3.35 billion in its joint venture in the Netherlands that is into the business of transport, storage and communication services. ONGC Videsh Limited invested USD 813.52 million in its joint venture in Azerbaijan and USD 70.08 million in its wholly-owned unit in Cayman Island. Suzlon Energy made an investment of USD 674.79 million in its wholly owned subsidiary in The Netherlands. GMR Infrastructure invested USD 306.93 million in its wholly-owned unit in Mauritius and Amtek Auto made an investment of USD 286.72 million in two separate projects in Germany and Singapore. Tractors and Farm Equipment made an investment of USD 89.8 million in two separate entities in China and the US.

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14.1. India to be a big market for Tetra in 10 years The Economic Times, May 30, 2013 New Delhi: Tetra Pak, the world's biggest packaging company, has stepped up investment in India by building its largest plant outside home market Sweden with an investment of Rs 700 crore. The new facility at Chakan near Pune can make over 8.5 billion packages a year. But despite India being the world's largest dairy market, such packaging is still considered fancy and expensive by companies that rely on selling their products through pouches. In an interview with Sagar Malviya, Tetra Pak's global president and CEO Dennis Jonsson talks about how India was on the company's mindspace as the next big market even 31 years ago when he joined the company but could now finally gain some space on the balance sheet as well. Edited excerpts: How difficult is it to convince companies to shed pouches and adopt Tetra Pak? It's a very difficult comparison but most of the international companies such as Nestle and Danone are customers of ours in other places and in India as well. In the last 3-5 years, we have seen a very rapid growth in India of over 20% and expect even local companies to drive growth. The total dairy market in India is the largest in the world but if you look at how much of this is packaged, it is a very small portion. The big opportunity is having more of the non-processed packs use our product as we bring benefits like meeting demand at a good cost and supplying it rapidly. In most cases, the companies don't have the critical mass and it is very difficult to motivate that type of investment. So we try to access bigger companies, co-operatives that can invite many small farmers, and that is the way we have done it in many other countries to scale up. In a highly price-sensitive market like India, why should companies pay for expensive packaging such as yours? When we say it's more expensive, we have to be conscious of what we are comparing. You can't compare package to package but also should include systems. If you have to build up the chilled chain to actually distribute perishable products safely, it costs you a lot of money. The company will have to spend on vehicles, refrigeration and that is why we are being so successful in so many markets. India's sales are still less than. 1,000 crore. Will it ever be one of the top five markets for you? I don't know if it's going to happen in the next five years, but I am sure it has a good chance of doing it in the next ten years. The one thing that I can tell you is that when I went to Brazil 20 years back, the market was very similar to India. Today it's a market where carton packages are close to 80%. The economy has changed, purchasing power has increased and so the demands have also changed. People then are willing to pay more for convenience. We don't know whether a similar situation will play out in India in the next three years or five years, but we know that it will definitely happen. How different or challenging is India versus other emerging markets? I don't think they are different. I think the point is that you know the system today is broken down into many different forms. For instance, Amul has three million co-operative members, which is unheard anywhere else. Larger cooperatives elsewhere have less than 10,000, so that makes it a little difficult, That is why it's important to work closely with co-operatives and companies to understand their business needs. Copyright 2013, Bennett, Coleman & Co. Ltd. All Rights Reserved.

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14.2. New CEO reiterates P&Gs $1bn India investment plan Namrata Singh, TNN | Jun. 8, 2013 MUMBAI: After taking over as CEO of Procter & Gamble Company (P&G) for the second time, A G Lafley has reconfirmed the organization's commitment to India, an emerging market where the consumer products giant has chalked out a $1-billion investment plan. Given the circumstances in which Lafley returned to P&G as CEO, speculation was rife as to whether the company would go for a change in strategy with regard to developing and emerging markets. According to a P&G spokesperson, however, P&G CEO AG Lafley has confirmed "maintaining strong developing market momentum" among his key focus areas for P&G's global business. "India continues to be among P&G's fastest growing developing markets globally, and is a key priority for the company," the spokesperson said. Lafley, who had retired in 2009, returned to replace Robert 'Bob' McDonald at the helm of the $84billion company, after a section of activist shareholders forced the change. With the company facing certain growth challenges in a tough market, McDonald had to face many detractors. Some say the downturn caught the company unawares. It appears the heavy slant P&G's product portfolio had towards the premium end did not appeal to frugal spenders. Globally, as the company came back on the growth track, McDonald announced an investment plan of over $1 billion in India over the next five years. "P&G remains committed to invest over $1 billion in India in the next 5 years, spread across capital and marketing investments. P&G India is on a long term sustainable growth track, evidenced by the company's high double digit growth for over a decade," the company spokesperson said.

15. Daimler to develop India operations as export hub The Times of India, May 24, 2013 Chennai: As part of an integrated Asia strategy, German automobile giant Daimler is developing its Indian commercial vehicle operation as an export hub. Daimler India Commercial Vehicles (DICV), its truck and bus making Indian subsidiary, will export locally assembled trucks from the conglomerate's Mitsubishi Fuso range in 15 markets in Asia and Africa like Indonesia, Thailand, Malaysia, Tanzania, Malawi, Uganda, Zimbabwe, Mozambique, Mauritius and the Seychelles. The first export market will be Sri Lanka in June 2013, followed by Bangladesh, Zambia, Kenya and Brunei later this year. DICV launched the local production of its new product range under the Fuso brand on Thursday at its Oragadam plant, near Chennai. Said Albert Kirchmann, head, Daimler Trucks Asia and president & CEO, Mitsubishi Fuso Truck and Bus Corporation (MFTBC): "We are developing India as an export hub under our Asia strategy. Currently 19 plants across the world produce 175,000 Fuso trucks sold in 150 countries. The Oragadam plant along with the Kawasaki plant in Japan will be our two global competence centers." Although the new lineup will be branded Mitsubishi Fuso in export markets, in India they will be badged Bharat Benz, Daimler's Indian brand. "There will be some product differences too - though they will be from the same platforms, the products will be market specific," said Kirchmann . India's status as an export hub will also offer the opportunity for global sourcing of components. "We are working on it and India will become more important for parts supply globally as the first and second phase of localization kicks in," said Kirchmann. Daimler has a range of global brands including Mitsubishi Fuso in its truck and bus stable. However, said Kirchmann, there are no plans to introduce any of those brands in India. But, he said, the Actros truck will continue to be branded Mercedes Benz. "It's a high horsepower , high payload, low volume , low localization niche product whereas our Bharat Benz range has 80-90 % local content and targets big volumes so that it can be badged differently," said Marc Llistosella, MD and CEO, DICV. The Fuso
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range to be manufactured at DICV's Oragadam plant will comprise five models spanning medium/heavy duty (25-49 tonne referred to as 'FJ', 'FO' & 'FZ' ) and light/ medium-duty (9-16 tonne referred to as 'FA' & 'FI' ). DICV's truck focus means it's not thinking buses right now. Nor will it even consider the newly introduced category of quadricycle. "Buses for now are not a part of our strategy as we are focussed on truck launches," said Llistosella . "As for quadricycles, that's not even something we're thinking about." Copyright 2013, Bennett, Coleman & Co. Ltd. All Rights Reserved.

16.1. Delhi Airport: Adding to Indias pride IBEF, May 27, 2013 New Delhi: Delhi's Indira Gandhi International (IGI) airport is the second best in the world in the category of airports handling 25-40 million passengers per annum (MPPA) for their service quality for the year 2012. In the report from Airports Council International (ACI), a global body of airports, Delhi airport was ranked fourth in the 'Best Airports by Region' across all categories in the Asia Pacific region. In fact, Delhi Airport is one of the busiest and amongst the fastest growing airports in the Asia Pacific region. Terminal III at the Indira Gandhi Airport, opened in 2010, is the eighth largest passenger terminal in the world. Some of the other salient features of the Delhi Airport are as follows: One of the largest Green Buildings in the world. LEED India Gold Rating from IGBC in 2011. Integrated Terminal T3 with 553,887 sqm area that can handle 34 mppa. Eight level Passenger Terminal Building (PTB) with 2 piers each 1.2 km long either side. Fully operational three runways with a peak hour handling capacity 75 ATM. Delhi Airports operations contributed Rs 294.7 billion to the national GDP & 13.53 per cent to Delhis GSDP in 2009-10. In-line Baggage Handling System with 10,800 bags/hour handling capacity 12 Baggage Reclaim belt and 168 Check-in counters Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

16.2. Bangalore International Airport Ltd has the highest per passenger spends: MD TNN | May 30, 2013 BANGALORE: After much delay and amidst a chorus for the city's old HAL Airport to continue operations, Bengaluru International Airport (BIA) took-off on the mid-night of May 21, 2008. In the five years since, it has handled 500,000 air traffic movements and 50 million passengers and the airport has come to be regarded as one of the best greenfield airports in India, with even its critics admitting so. In an exclusive interview to TOI, G V Sanjay Reddy, MD of Bangalore International Airport Ltd (BIAL) and vice-chairman of the airport's largest stakeholder, GVK Power and Infrastructure, talks about the airport's roadmap for the next five years. How has the journey been since you took over control of the airport? When we took over three years ago, we were confident about the team's talent and were aware of the high efficiency this airport had achieved. It was an exciting project to add to the GVK portfolio as
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Bangalore has the third highest domestic traffic in the country after Mumbai and Delhi. No national airline network can be completed without including Bangalore. We concentrated on the very specific areas of infrastructure and brought in our expertise there. Facilities were enhanced significantly and the expansion of the terminal was given priority. What's the update on the Terminal 1 expansion? The project has already started seeing the commissioning of new infrastructure in the last three months that include a brand new VIP terminal of 80,000 sqft, a new energy plant, a new chiller plant, and landscaping of over 100 acres. Work relating to expanding passenger terminal areas is progressing smoothly. Initially BIA pegged its hopes on Vijay Mallya making Bangalore a hub for Kingfisher Airlines. Now that the airline is grounded, what are your plans? Kingfisher Airlines' flights have been compensated with the growth in market share of Indigo Airlines, Jet Airways-Jet Lite and Spice Jet. In the recent past, the airport has successfully attracted new airlines and that in turn has resulted in higher passenger numbers. In 2012-13 the airport reported a 5.5% degrowth in passenger traffic. Has this and the overall economic environment altered plans for a second runway and terminal? With the T1 expansion, we'll be able to handle 20 million passengers each year. This facility should be able to cater to the need till about 2017. We foresee the need for a new terminal and runway around that time. We have already embarked on the plan for Terminal II and the second runway. Terminal II will raise the capacity to around 45 million passengers per annum. How do you see the passenger and cargo traffic trends in the coming years? In April we clocked 19,561 tonnes of cargo, a growth of 5.3% compared to the same period a year ago. We clocked 1,075,342 passengers, a growth of 3.98%. Recently, on May 13, we recorded 42,505 passengers in one day, the highest ever in Bangalore. Going by these trends, the traffic figures seem to be on the rise. Airports around the world are working towards a model of having a majority of their revenues flowing in from non-aeronautical businesses. Does BIA have similar plans? Five years ago, commercial offerings at the airport were relatively new to the passenger and the entire concept of duty free was new. We started with a revenue split of 80:20, aero to non-aero . But with the evolving passenger and change in mindset this split has gradually changed to 60:40. Bangalore currently enjoys the highest per passenger spend due to the offerings in retail and food & beverage. 16.3. IndiGo a dark horse for Star Alliance which continues to woo Jet Airways Anindya Upadhyay, ET Bureau | Jun. 4, 2013 CAPE TOWN: Budget carrier IndiGo has emerged as a dark horse for Star Alliance, a 27-airline grouping, which continues to woo Jet Airways to join it, but remains silent on its five-year old deliberations to induct Air India into its fold. Airline groupings such as Star Alliance usually give a wide berth to budget carriers, but IndiGo, being the market leader in the Indian market, makes it difficult for any alliance to ignore it. Star Alliance is still keen on Jet Airways in spite of the airline's recent equity deal with Gulf carrier Etihad, while it opened talks with IndiGo, alliance's CEO Mark Schwab told ET. "We still believe that India is a big enough market and that two members of Star Alliance in India would make a lot of sense. We have more than one partner-carrier in many regions or countries in the
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world...We continue to dialogue with Jet. Conversation has been going on for some time and we continue to have them," Schwab said. Meanwhile, Star Alliance has also kept other Indian options open. "Indigo is a possible candidate. Leadership of IndiGo is probably not thinking about alliancemembership at this stage. It is a question better asked of them... We are holding on to our two-carrier desire in India. So, you have to talk to anybody who is a possible candidate, absolutely. Name a carrier in India and it is a possible candidate," Schwab said. However, Air India, which had started the process to get alliance membership in 2008 and was put on hold in 2011 due to the airline's financial and labour problems, has still not found headway to its dreams. The airline has already paid 10 million ( 63 crore approximately) as joining fee to Star Alliance, whose membership was expected to boost Air India's revenues by giving it access to more traffic and destinations. "We are still on the path of having suspended integration with Air India some time ago and we are talking to them regularly, but there is no specific time-frame that we are working for...We are continuing to dialogue with the management teams there...we are talking to them about continuing improvement of operations of the company," he said. Even five years down the line and in spite of repeated entreaties by Air India, Schwab did not commit a time-frame for the induction of the national carrier, for which alliance membership was touted as part of its turnaround plan. While Star Alliance has maintained that Air India's induction was suspended, as it did not meet the contractually-agreed minimum joining requirements, the airline has been continuously denying any unpreparedness on its part. At the time of suspension of Air India's membership in 2011, the government's version was that Star Alliance tried to arm-twist Indian officials at the last moment making Air India's membership subject to allowing rival Jet Airways to be part of the grouping first. The civil aviation ministry under Ajit Singh also feels that a lot of benefits were given to German carrier Lufthansa, the founder member of Star Alliance, as it promised to mentor AI for partnership. (The author is in Cape Town at the invitation of IATA)

17. French Accor Group becomes fastest growing hospitality chain in India Saurabh Sinha, TNN | Jun. 10, 2013 NEW DELHI: There's good news for the Indian domestic traveller. Indian hotels, which till recently had among the highest tariffs globally, are now going to get increasingly affordable. While demand for branded hotels rooms has grown by 69 per cent here from 2007 to date, the supply has risen by 112 per cent, says Accor, a global hospitality giant and French hotel group. "Occupancy for hotels has dropped and average rates are dropping. We have not reached the pre2008 levels (of occupancy and tariffs) because of the economic problems globally," Accor senior VP (India operations) Jean-Michel Casse told TOI. However, the current slowdown has not stopped Accor from being the fastest growing hospitality chain in the country. The group currently has 20 hotels operational (one is going to start shortly), apart from two convention centres, and 27 are in advanced stages of construction along with 23 in design stage. "We will open about eight hotels a year. In a majority of them, we have a minority stake through investment vehicles. We have a JV with the InterGlobe Group (with whom it tied up in 2004, before IndiGo was launched) for the popular economy brand Ibis in which they have 60 per cent stake and we have 40per cent," said Casse.

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Accor recently expanded the scope of its JV with InterGlobe by forming another financial fund in which it roped in a Singapore-based fund and all three holding one-third stake to increase the presence of other brands like Novotel and Pullman in India. Thanks to the special purpose financial vehicle JVs, the group is managing the fastest growth with an investment of $250 million. Michel said that the India properties are being given the Indian flavour to suit the desi travellers's palate. "Eighty per cent of customers for Ibis here are Indians. Food is very important in India and we focus on that a lot. Unlike the west, the Ibis here have an elaborate breakfast menu. Our budget F1 brand abroad does not have food and beverage facilities. But the F1 properties in Greater Noida and Ahmedabad have in-house breakfast till 10 am after which customers can go to outsourced cafeterias. The luxury Sofitel in Mumbai has an Indian restaurant with a Jain menu," said Casse. The group's visibility could increase manifold next year when as many as three of its brands open at the Delhi airport's Aerocity hospitality district. An Ibis, Pullman and Novotel will open there with a combined capacity of almost 1,000 rooms. Accor's timing may be just right as the Aerocity has so far not seen any of the hotels that are ready - Red Fox, Lemon tree and J W Marriott - open due to fears expressed by security agencies because of them being in direct line of sight of the runway. "Our hotels are slated to open next year. We hope all issues there are resolved fast and the hotels start opening," said Casse. 18. Apollo Tyres to buy US-based Cooper Tire for Rs 14,500 crore ($2,5 bn) Business Standard, Jun. 13, 2013 In what is expected to be the largest outbound deal in the Indian automobile industry, Apollo Tyres today said it would acquire US-based Cooper Tire & Rubber Company, maker of car and light truck tyres, in an all-cash transaction of around Rs 14,500 crore ($2.5 billion). A wholly-owned subsidiary of Apollo Mauritius Holdings will pay Cooper stockholders $35 a share in cash a 40 per cent premium over the stocks 30-day volume-weighted average price. The shares of Apollo Tyres today closed at Rs 92 apiece, up 3.02 per cent from their previous close, on BSE. The two companies, the combined sales of which stood at $6.6 billion in 2012, would together form the seventh-largest tyre company in the world after the acquisition is completed. This is Apollos third major foreign acquisition after those of Dunlop South Africa for Rs 290 crore in 2006 (sold to Japans Sumitomo Rubber Industries for Rs 340 crore last month) and Netherlands-based Vredestein Banden BV for an undisclosed sum in 2009. (A GIANT IN THE MAKING) A consortium of four banks Morgan Stanley, Deutsche Bank, Goldman Sachs and Standard Chartered will raise $ 2.5 billion of new debt for Apollo to fund the acquisition. Of this, while $1.8 billion will be raised through issue of bonds, another $300 million will be brought in via asset-based lending. An additional debt of $400 million on books of Cooper Tire will also get rolled over to Apollo. The Indian company will, however, service new debt of $450 million after the acquisition the remaining debt would have exposure to Coopers cash flows. Yaresh Kothari, auto analyst, Angel Broking, said Apollo Tyres debt-to-equity ratio would increase to 3.8 from the present 0.8 after the acquisition. This strategic combination will bring together two companies with highly complementary brands, geographic presence, and technological expertise to create a global leader in tyre manufacturing and distribution, said Apollo Tyres Vice-Chairman & MD Neeraj Kanwar. Apollo Tyres, which currently does not operate in the US, gets two-thirds of its revenue from India, where a weak economy has hurt demand for cars and commercial vehicles. The acquisition of Cooper, the worlds 11th-largest tyre company by revenue, would give it access to the US market for replacement tyres for cars and light and medium trucks. The deal would also give Apollo brands
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access to the market in China, the largest in the world for commercial vehicles. The combined company will be uniquely positioned to address large, established markets, such as the US and the European Union, as well as the fast-growing markets of India, China, Africa, and Latin America, where there is significant potential for further growth, said Apollo Tyres Chairman Onkar S Kanwar. These ongoing benefits of the acquisition are expected to be fully realised after three years and derived from operating scale, sourcing benefits, technology, product optimisation and manufacturing improvements. The transaction is expected to be immediately accretive to Apollos earnings. The combination is expected to deliver value-creation benefits of Rs 465-700 crore ($80-120 million) a year at the Ebitda level, according to Apollo. Before this one, the largest deal involving an Indian automotive company was Mumbai-based Tata Motors $2.3-billion acquisition of Jaguar Land Rover from Ford Motor Company in 2008. In the domestic tyre space, private equity firm KKR recently acquired 90 per cent stake in Alliance Tire Group for around $500 million. Earlier in 2008, JK Tyre & Industries, promoted by the Singhanias, had acquired Mexican tyre company Tornell for Rs 270 crore. Morgan Stanley & Co and Deutsche Bank Securities served as financial advisors to Apollo, while investment firm Greater Pacific Capital acted as strategic & financial advisor. The close of the transaction assuming timely regulatory approvals and other customary closing conditions, as well as approval by Coopers stockholders was expected to take place within the second half of 2013, said Apollo Tyres CFO Suman Sarkar. Cooper will become a privately-held company and its common stock will no longer be traded on NYSE. Cooper will continue to be led by members of its current management team and operate out of its facilities around the world. Also, Cooper will continue to recognise the labour unions and honour the terms of collective bargaining agreements currently in effect, while generally maintaining compensation and benefit levels for nonunion employees. Founded in 1914, Cooper supplies premium and mid-tier tires worldwide through brands such as Cooper, Mastercraft, Starfire, Chengshan, Roadmaster and Avon. 19.1. Andhra Pradesh registers growth in microfinance portfolio in FY13 Swati Rathor, TNN | May 28, 2013 HYDERABAD: Premier microfinance industry body Microfinance Institutions Network (MFIN) on Tuesday indicated that the microfinance industry was getting back in shape but the business growth was witnessed mainly outside Andhra Pradesh in states such as West Bengal, Tamil Nadu, Kerala, Bihar, Assam and Uttar Pradesh in 2012-13 fiscal. In its fifth issue of the 'MicroMeter,' the industry body said that microfinance business grew by 23% in 2012-13 compared to a de-growth of 14% in the previous fiscal. "At a pan India level, MFIs witnessed a growth of 23% during FY12-13, a strong bounce back from last year when growth had slumped to a negative 14%. This shows the inherent strength of the MFI business model and the need for micro-credit by bottom of the pyramid (BoP) segment borrowers," MFIN chief executive officer Alok Prasad said. Despite a charged up environment for the microfinance industry, AP posted a growth of mere 7% in 2012-13 compared to non-AP MFIs that grew by 39%. "During FY 12-13, AP MFIs were able to increase their gross loan portfolio (GLP) by 7% given growth of their operations outside Andhra Pradesh. This is an important trend as in 2011-12, their GLP had come down by around 33%," the study said.

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The AP MFIs were also able to increase their disbursals by 3% in 2012-13 as compared to a drop of 63% in the previous fiscal, it said. According to the study, the branch network and staff strength of MFIs continued to drop in AP in FY 1213, however, non-AP MFIs increased their branch network by 4% and employee base by 9%. As of March 31, 2013, the total number of MFIs branches stood at 9,086 employing 60,721 people. AP's MFIs branches decreased by 18% in 2012-13 and stood at 4282. The shrinkage in branch network was mainly due to AP MFIs reducing their branches and smaller MFIs downing shutters due to operational challenges. While the states of Andhra Pradesh, West Bengal, Tamil Nadu, Karnataka and Maharashtra accounted for 64% of the gross loan portfolio, Tamil Nadu topped in terms of loans disbursed, followed by West Bengal, Karnataka, Maharashtra, Uttar Pradesh and Madhya Pradesh, the study said. The study also pointed out that there was a return of investor confidence in the last quarter of 2012-13 fiscal with a 79% increase in debt funding to MFIs. Prasad pointed out that the role played by NBFC-MFIs in promoting financial inclusion can be strengthened if the Microfinance Bill gets enacted as it will then provide an overarching regulatory framework for the sector. The study was based on data collected from 41 non-banking finance companies - microfinance institutions (NBFC-MFI), who are members of MFIN and represent 85% of the microfinance business in the country (excluding self-help groups).

19.2. World Bank ropes in ESAF Micro for marketplace initiative The Hindu Business Line, Jun. 13, 2013 Thiruvananthapuram: The World Bank Group has chosen Thrissur-based ESAF Microfinance as one of the 20 beneficiaries for executing its India Development Marketplace initiative. The initiative is aimed at scaling up innovative business models in the target States of Madhya Pradesh, Chhattisgarh and Jharkhand. CAPACITY BUILDING ESAF Microfinance was among the 200 organisations which had submitted proposals called for in the month of January, a company spokesman said. ESAF and other peer beneficiaries will get capacity building support services from the World Bank Group over the next 18 months. They will also receive business mentoring and support services in areas such as business development, financial management and strategic planning. The World Bank Group will help them with identifying local partners to expand reach and sustainability, the spokesman added. It will evaluate services and delivery models by assessing successes and challenges in reaching out to the underserved. International Finance Corporation, a World Bank affiliate, is an important strategic partner in this project as it works with the private sector to support financially viable business models.
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Omno Ruhl, Country Director, World Bank, and Drew Von Glahn, development marketplace team lead, had visited the stall that ESAF had put up at Bhopal. Copyright 2013, Kasturi & Sons Ltd., Chennai All Rights Reserved.

20. Essar Oil to double refining capacity of Vadinar plant ($6,4 bn+ $7,3 bn of investment) Business Standard, Jun. 03, 2013 Mumbai: Essar Oil plans to increase the capacity of its Vadinar refinery in Gujarat from the present 20 million tonnes to 40 million tonnes per annum (mtpa) in the next five years. This would involve an investment of about Rs 35,000 crore ($ 6,4 bn). Another investment of about Rs 40,000 crore ($7,3 bn) would be made to set up an integrated petrochemical project. We have the land and environment clearance is available with us. But we would put the expansion plans in place sometime down the line, only after we have achieved a reasonable certainty on our leverages and have certain cash flows. We have to show to the world for the next year that we are on a comfortable footing, Lalit Kumar Gupta, managing di rector and chief executive, told Business Standard. Gupta had written to the oil ministry last month, seeking tax exemptions for the expansion plan. He did not divulge the contents of the letter but sources said the letter sought extension of the investment allowance in Section 32AC of the Finance Act 2013-14. The new section was inserted to provide additional deduction to an assessee (company) engaged in the business of manufacture of an article or thing and investing a sum of more than Rs 100 crore in new assets during the period beginning April 1, 2013, and ending on March 31, 2015. Gupta is said to have sought extension of this provision till March 31, 2018. The assessee would be for assessment year 2014-15, allowed a deduction of 15 per cent of aggregate amount of actual cost of new assets acquired and installed during the financial year 2013-14, if the cost of such assets exceeds Rs 100 crore. Right now, we want to optimise the refinery operations further. We have to run it for nine months and we are performing well. Our focus is to sweat the asset now, added Gupta. Though we have a good certainty on our Ebitda, whatever we earn is spent on interest and depreciation. So our major focus this year is to convert our rupee borrowing into dollar and reduce overall cost of debt to 6.5 per cent from 12 per cent, said Gupta. As on March 31, Essar Oils debt stood at Rs 22,380 crore, with a market capitalisation of Rs 1,758 crore. During the January-March quarter of FY13, Essar Oil posted a net profit of Rs 200 crore, against a loss of Rs 515 crore in the same quarter last year. However, it paid Rs 920 crore towards finance costs during the quarter. For 2012-13, finance costs were Rs 3,424 crore, from Rs 1,387 crore in 201112. The company commissioned its Vadinar refinery in 2008, increasing its capacity from 10.5 mtpa to 18 mtpa and then to 20 mtpa last year, at a total investment of Rs 24,000 crore. The refinery accounts for about 10 per cent of the countrys refining capacity. It produces liquefied petroleum gas, naphtha, light diesel oil, aviation turbine fuel and kerosene. It can handle a diverse range of crude from sweet to sour and light to heavy.

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INDIA & THE WORLD


21.1. India, China set $100-bn target for FY15 Business Standard, May 21, 2013 New Delhi: The Indian and Chinese governments agreed today to scale up two-way trade to $100 billion by 2015 from $67.8 bn in 2012-13. Bilateral trade went from $2.1 bn in 2001-02 to $75.6 bn in 2011-12; it then came down to $67.8 bn during 2012-13. Simultaneously, Indias trade deficit increased from $1.1 bn in 2001-02 to $40.8 bn in 2012-13. In 2012-13, China became Indias fourth largest trading partner from third largest in 2011-2012. Our exports fell from $18.1 bn in 2011-12 to $13.5 bn in 2012-13. The surging deficit is a big cause of concern and Commerce and Industry Minister Anand Sharma took up the matter with Chinese counterpart Gao Hucheng. Sharma today urged greater work on some of the steps suggested in the earlier communiqu issued by the Premiers of the two governments, to allow our exports to increase. In 2010, both sides had set a trade turnover target of $60 bn, which was achieved. However, India was not able increase its exports to China, while imports from there kept rising. The only exception was in 2012-13, when imports from China fell to $54.3 bn from $57.5 bn in FY2012. The joint communiqu issued then had suggested measures for India to increase its exports, including enhancing exchange and cooperation in pharmaceutical products, stronger relationships between information technology (IT) companies, and speedier completion of phyto-sanitary negotiations on agro products. Targets do get achieved but that always happens in their (Chinas) favour, said Biswajit Dhar of Delhi based think tank RIS. This is now an opportunity for us to pull up our socks and look at the Chinese market seriously, and understand areas where they need us. We must realise that China is gradually becoming a high-cost economy, and there are labour and wage issues that are affecting their market. Indian industry has to stop being defensive and work out a well-thought strategy. According to exporters, increasing of market access to China is vital for a jump in Indias exports as the country endeavours to change its export profile from raw materials to finished and value-added products. While bilateral trade of $100 bn by 2015 is within the realm of reality, I would like Indias exports to touch $40 bn by 2015, so as to bring the trade deficit within a narrow zone, said M Rafeeque Ahmed, president, Federation of Indian Export Organisations. An India-China CEOs Forum has been constituted to deliberate on business issues and make recommendations on expansion of trade and investment cooperation. The India side would be chaired by Anil Ambani, chairman, Reliance ADAG Group. Chen Yuan, chairman of the China Development Bank will head the other side. For five years, India had been making efforts to enter the Chinese IT and pharmaceuticals sectors. However, Indian IT faces problems in work permits and business tax regulations. In pharma, too, Indian industry faces several barriers in the form of delay in approvals and a complex registration process. To address the trade deficit issue, both sides today signed three agreements, on buffalo meat, fisheries and pharmaceuticals, and one agreement on feed and feed ingredients. The export of buffalo meat had not been allowed from India to China and this has been a long-pending issue. With the resumption, India hopes a big merchandise flow would be helpful in reducing trade imbalance.
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21.2. ZTE in pact with Calyx to sell smartphones The Hindu Business Line, May 20, 2013 Pune: Chinese telecom player ZTE Corporation, hitherto a supplier of handsets to mobile operators in India, is entering the Indian open market with smartphones and tablets. ZTE has entered into an exclusive agreement with Pune-based Calyx Group to market and distribute its products across the country. Xu Dejun, CEO, ZTE India, said India contributed 10 per cent to the Chinese companys rev enues and was a key growth propeller. We are now changing our business area, he said, adding that ZTE was targeting a place amongst the top three players in the Indian smartphones segment in the next three years. Distribution With a turnover of Rs 450 crore, the Calyx Group, which has interests in real estate and textiles, said it will invest Rs 500-600 crore in setting up a distribution network to sell mobiles and build the ZTE brand identity. We expect to sell a million units during this fiscal, Gaurav Somani, Executive Director, Calyx Telecommunications, said. The initial plan is to launch five smartphone models priced Rs 5,000 to Rs 15,000, to be followed with high-end tablets around Diwali, Xu said. Copyright 2013, Kasturi & Sons Ltd., Chennai All Rights Reserved.

21.3. Indian, Chinese companies can create new business miracle: Li Keqiang TNN | May 22, 2013 MUMBAI: China premier Li Keqiang on Tuesday called on business leaders from both India and China to join hands to create a "new miracle". With the political leadership reaching a consensus on cooperation at various levels, it was now up to the business leaders to act, he said. Addressing a packed gathering of CEOs at the India-China Business Cooperation Summit, organized by industry bodies CII, FICCI and Assocham, here, Li said he was convinced that Indian companies, with their competitive advantage in software, pharmaceuticals and agro sectors over China, are in a strong position to invest in his country profitably. "As long as we work ahead together, we can create new miracles," Li said. Earlier in the day, Li met employees of Tata Consultancy Services (TCS), including Tata group chairman, Cyrus Mistry and other top officials at its facility in Mumbai. Li is also said to have had a private meeting with select business leaders, including Kumar Mangalam Birla, chairman, Aditya Birla Group, and the Ruias of Essar Group. Of about $66 billion bilateral trade between the two emerging market giants in 2012, China's exports to India was worth about 80%, or about $54 billion. And both the countries agree that this needs to be more balanced than tilted in favour of the Chinese. Li said he was surprised why the two countries, the only ones in the world to have over billion-plus population, had their bilateral trade at such a low level. If things change, that would be beneficial to everyone. "With mutual political trust in place, we can make the PCIM (Pakistan, China, India & Mayanmar) economic corridor as a new engine for growth in south Asia, Asia and world," he said. Li also entrusted the task of correcting the trade imbalance between the two countries to his junior colleague Gao Hucheng, the minister for commerce, China. Li said China was increasing its efforts for Chinese companies to invest abroad and grow as also encouraging foreign companies to invest in China. He said Indian and Chinese companies can create a level playing field and establish joint ventures to

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achieve a rapid increase in trade.

21.4. Taj to set up two hotels in China The Hindu Business Line, May 30, 2013 Mumbai: Kunming, the capital and largest city of the Yunnan province in South-West China, holds particular interest for the Indian Hotel Companys (IHC) expansion plans. The entry of the Taj Group's two brands, Taj and Vivanta by Taj in Kunming, are to enable the hospitality major gain more than a toehold in the Chinese market. Early 2014, Hotel Taj Temple of Heaven is to open its doors in Beijing, while a 300-room property in the Hainan island is being developed as a premium holiday resort. IHC, which runs the Taj Group of hotels, is also to invest in a Taj Hotel, with approximately 200 rooms, and a Vivanta by Taj Hotel, with approximately 300 rooms, in the Kunming Expo Garden in the Yunnan province. In January 2012, IHC had signed an agreement with the Yunnan Tourism Company to construct, develop, operate and manage two hotels in the Kunming Expo Garden. Copyright 2013, Kasturi & Sons Ltd., Chennai All Rights Reserved. 22. Airtel launches 3G services in Africa's Burkina Faso PTI | May 27, 2013 NEW DELHI: Bharti Airtel on Monday announced the launch of third generation (3G) services in Africa's Burkina Faso. "3G technology will give our customers the opportunity to interact with cellular technology in a different way," Airtel Africa Francophone Region CEO Tiemoko Coulibaly said in a statement. He added the company's goal is to build the largest 3G network on the continent. The launch follows the award of a 3G license to Airtel by the Burkina Faso Government. "Reaching speeds of up to 21 mbps, Airtels 3G network is one of the fastest available globally and it will be immensely beneficial to multinationals, SMEs and the youth," the statement said. European equipment maker Ericsson is providing the infrastructure and high level solutions to Airtel for the 3G services. "We are grateful towards the political and administrative authorities of Burkina Faso for the granting of the license through the regulatory authority for electronic communications and post," Airtel Burkina Faso MD Herve-Njapoum Olivier said.

23. Freight corridor to get Japanese boost with Larsen &Toubro-Sojitz contract Business Standard, May 31, 2013 New Delhi: With the award of a Rs 6,700-crore contract for the western arm of the Dedicated Freight Corridor (DFC) to a consortium of Larsen & Toubro and Japan's Sojitz scheduled in a week, India's railway infrastructure would see another major Japanese imprint. India has received the highest Japanese official development assistance. Also, Indian companies have received the second-highest assistance from Japan Bank for International Cooperation (JBIC), after Chinese companies. Delhi Metro Rail Corporation (DMRC) was the first major Indian project that saw Japanese funding. Now, the Indian Railway-owned Dedicated Freight Corridor Corporation (DFCC) is set for a long-term engagement with Japan. DFCC was awaiting a clearance for the award of the 640-km Rewari-Palanpur civil contract to the consortium after a two-way contest with Ircon-Mitsui, said a government official. "Right
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now, DFC is one of the biggest projects Japan is focusing on. Once this is completed, everything else will take off," Tamaki Tsukada, minister (economic), Embassy of Japan, told Business Standard. The 677-billion funding for the western corridor is the first loan to an Indian project under the special terms of economic partnership (STEP), which requires 30 per cent sourcing from Japan and the lead partner in all contracts to be Japanese, said R K Gupta, managing director, DFCC. In return, Japan has extended the loan at a concessional rate of 0.2 per cent to DFCC for 40 years, which includes a 10-yearmonatorium on the loan repayment. (JAPANESE AID TO INDIA) To meet the 30 per cent sourcing norm, DFCC had to purchase 200 locomotives and head-hardened rails from Japan, along with signaling and electrical equipment. This led to fears the STEP model would raise the project cost for the western corridor. "We struggled to resolve the issue and got more competition among Japanese companies through two road shows there," said Gupta. He added finally, the bids for the World Bank-funded eastern corridor became the benchmark for the western corridor. Japan International Cooperation Agency (JICA), the Japanese government arm for providing technical and financial aid to developing countries, is also DMRC's lending agency. Loans to DMRC fall under official development assistance and have been given at interest rates of 1.2-2.4 per cent; these have a repayment period of 30 years. As much as 60 per cent of the funding for phase-I and 50 per cent for phase-II came from JICA. For the three phases of the Delhi Metro, JICA provided soft loans of 502.6 million. Tsukada said Japan was also focusing on three other projects-- the seawater desalination project at Dahej, Gujarat, the model solar project in Neemrana, Rajasthan, and a gas-fired independent power producer project in Maharashtra. Though the Delhi-Mumbai Industrial Corridor, in which Japan is a partner, faced hurdles related to land acquisition, regulatory issues and restrictions on captive power generation, Hiroshi Watanabe, president and chief executive of JBIC, said India ranked second, in terms of countries in which Japanese investors were interested, after China. "This is a very good indication. The government is committed to promoting industrial corridors in India, while Japanese companies are looking at another corridor between Chennai and Bangalore," he said. JBIC's loans to India stand at $1.6 billion. So far, it has lent towards the creation of manufacturing capacity in the country. The power, steel, electricity and automobile sectors have received loans from JBIC. 24.1. UK business delegation to tour Kolkata, Kochi Business Standard, Jun. 03, 2013 New Delhi: A high-powered business delegation from the UK, led by the British cabinet minister, Eric Pickles, is arriving in India tomorrow to explore opportunities in infrastructure and water management in Kolkata and Kochi. Pickles, UK secretary of state for communities and local government, is leading a 20-member delegation comprising some top companies in infrastructure, electrical design, manufacturing, property management and wastewater treatment, among others. The tour is starting tomorrow from Kolkata. This is the largest UK business delegation to visit Kolkata in the last decade. The UK and West Bengal governments have been working on urban regeneration and waterfront development initiatives for some time. Leading the mission will be John Nutt, assigned to the Kolkata Urban Regeneration and the DelhiMumbai Industrial Corridor projects. Pickles, visiting from June 2 June 7, is expected to meet West Bengal Finance Minister Amit Mitra and Urban Development Minister Firhad Hakim. Last year, the UK government supported two UK experts on urban development to come and work in West Bengal for three months.

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During his meeting with the UK minister, Mitra is also expected to discuss the draft investment and industrial policy. Some of the top UK firms coming are Leicester & Leicestershire, Mayfair Homes, Northampton LP, Andritz and Gensler, among others. Pickles will also address the inaugural session of the seminar on UK Built Environment Expertise. The companies I will be introducing represent the best of British. They not only have world-class expertise in big construction projects and urban renewal, but they know how to bring economic growth to different parts of a country," Pickles said, according to a statement issued by the British High Commission. In Kochi, Pickles is expected to meet Kerala Chief Minister Oommen Chandy and senior representatives from the state. He will deliver a speech at a business seminar hosted by the Indian Green Building Congress and the Confederation of Indian Industry to foster stronger Indo-UK ties in infrastructure. He will attend events to support the low-carbon development pathway at municipal and local government levels.

24.2. UK eyeing doubling bilateral trade with India by 2015 PTI | Jun. 5, 2013 KOCHI: The UK is aiming at doubling its bilateral trade with India by 2015 and very keen to take the relationship to the next level, British Cabinet minister for communities and local government Eric Pickles said today. "Close relationships are already paying off. On the national level we collaborate closely on everything from energy security to climate change and healthcare. We are looking at doubling our trade by 2015," he said. The bilateral trade between the two countries was 12 billion pounds in 2012. About 40,000 Indian students are studying in the UK and the British Council had trained nearly one million English language teachers covering over 17 million aspirational Indians, he said. Pointing that this was a relationship with "room to grow" and was of "mutual benefit", he said it was time the two countries further boost the bilateral ties. Britain was in the midst of an infrastructure boom, rolling out surefast broadband and laying down a national high-speed rail network to give the country the "backbone to compete on the global stage", the Minister said. Pickles, who is leading a 20-member delegation from diverse fields, was speaking at a seminar titled 'UK built Environment Expertise' here. The UK would also make use of opportunities in India, which was one of the largest markets, he said. Promising a fair trading and one of the most friendly business environments in the world, the lowest level of Corporation Tax in the G7, the visiting Minister said he was delighted to be here 'cementing our bonds', drawing on British experience to help revitalize and regenerate Indian cities and help galvanize big transport projects.

25.1. India committed to be a steadfast partner of Myanmar: Anand Sharma Press Information Bureau, Jun. 07, 2013 New Delhi: The Union Minister of Commerce, Industry & Textiles Shri Anand Sharma today asserted that with democracy tightening its grip in Myanmar, which has provided a right enabling environment to inspire investors confidence, India remains committed "to be a steadfast partner of Myanmar as it charters its path to growth and progress." Speaking during a session entitled "The Long-Term View" at the World Economic Forum on East Asia 2013 in Nay Pyi Taw, Myanmar today, Shri Sharma highlighted that Indias engagement with Myanmar is premised on a strong development partnership and that India would like to align its cooperation with the economic priorities of Myanmar. With India concluding a Comprehensive Economic Partnership Agreement with ASEAN, Shri Sharma stressed that this over-arching framework will act as a catalyst to boost trade and investment ties with
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countries of the region including Myanmar. India is working closely with Myanmar and Thailand to develop the tri-lateral highway as we call it we are half -way there and am sure that by 2015-2016, this should be fully operational, announced Shri Sharma. Shri Sharma also spoke on the importance of investment in human resource, by adding that India has always believed that it will reap dividends in the long run. "We have already established Centre of Excellence in IT sector in Yangon. We are going to establish now Information Technology institute like a university in Mandalay. In addition to that we have also established an Industrial Training Centre in Pakokku to develop skilled labour for Myanmar industry," said Shri Sharma. During the visit of Indian Prime Minister Dr. Manmohan Singh in 2012, India announced doubling the number of training slot to Myanmar from 250 to 500. Shri Sharma also added that India would also like to share her experiences with Myanmar in the enhancement of agricultural productivity and agricultural extension. With this end in view, we are establishing an Advance Centre for Agricultural Research and Education at Yezin and a Rice Bio Park is also being established in Myanmar through grant assistance by India, said Shri Sharma. Speaking during the session, Shri Sharma also highlighted the importance of developing high-quality infrastructure. Putting stress on the fact that sound infrastructure will help in the creation of a robust economic linkage between India, Myanmar and beyond, Shri Sharma said that India is developing Kaladan Multimodal Transit-Transport Project which will connect Mizoram to Sittwe port in Myanmar.

25.2. We may spend $1bn on Myanmar rollout: Sunil Bharti Mittal Sidhartha, TNN | Jun. 8, 2013 NAY PYI TAW: Bharti Group chairman Sunil Bharti Mittal has been in the middle of controversies and his flagship company, Bharti Airtel, has reported three straight years of lower profit. The telecom billionaire has kept away from the media in recent months. In Myanmar, where he has bid for a telecom licence, Mittal spoke to TOI on the sidelines of the World Economic Forum conference. Excerpts: What's the feedback on your Myanmar bid? There are 82 players who had applied for two licences and now there are 11. It is very much the toss of a coin that will decide the winners. The good news is that they will decide very soon and we have to roll out in nine months. Myanmar is only one of the two countries, the other being Ethiopia, where private players are not allowed. For us it makes a lot of sense since it is a large country next to India. It is very much a natural fit and we know what needs to be done, something that a European player may find difficult. We are hoping that in three years, the whole country will be covered but probably we will be ahead of our commitment. Unlike India, it has a very large rural population and we will have to rely on solar power or diesel to connect some of the areas given that electricity is in short supply. We may spend around $1 billion on rollout. How will you fund it? That is not difficult for us given that we have large revenue flows. We can access debt. We have $4.5 billion of debt and we have good revenues coming. On the Indian side, we don't have too much debt. We have $2 billion debt and $4 billion EBIDTA (earnings before interest, depreciation, taxes and amortisation). From our point of view we are 2.5-3.6 debt to EBIDTA ratio. The desirable level may be around 2 but there are many companies, which have a much higher ratio, which is 3-3.5. Markets feel more pressure than we do. Qatar Foundation has invested so that money will come in, the cash flow will help. A little bit increase in EBIDTA and little bit decrease in debt will take us to a lower ratio. One of the concerns in the market is that the results from the African acquisition have been slower than what you expected. Is it a big worry?

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It's going to be three years and the good news is that operations are stable and it's generating great revenue. I think last quarter it was $1.1 billion revenue, which means we are generating around $4 billion in the full year. The EBIDTA was in the region of $300 million. It may have been $5 billion, we will get there in a year, year and half. May be we are one year late but in a large acquisition these things happen. But fundamentally the operations have stabilized. There are concerns over the regulatory structure in India, which started with 2G controversy and now there are problems on 3G roaming and other things. How do you view them? The government is resolving a lot of pending issues. At the end of the day, we are in a regulated industry so we have to deal with them. Is there a decision on a partnership with Walmart on multi-brand retail? As and when Walmart is ready we will go with them. We are watching the developments.

25.3. India offers US$ 150 million for SEZ in Sittwe Press Information Bureau, Jun. 10, 2013 Indian Banks Make Inroads in Myanmar Indias Oil Companies Get Big Projects in the Oil Rich Myanmar Road Projects in Myanmar to Help Indias Land Locked Northeast Anand Sharma Meets President U Thein Sein of Myanmar India has offered US$ 150 million of credit for project exports for establishing a SEZ at Sittwe in Myanmar Buyers Credit Scheme under National Export Insurance Account (NEIA). The offer assumes that Myanmar Government will give a suitable land for the purpose. During his meeting with the Myanmar President U Thein Sein last Friday, in Nay Pyi Taw, The Union Minister of Commerce Industry and Textiles, Shri Anand Sharma covered a whole gamut of issue for deepening the economic ties between India and Myanmar. Substantive decisions were taken in the meeting which was also attended by Foreign Minister, Industry Minister and Planning Minister from the Myanmar side, on SME sector, economic cooperation, trade, energy, agriculture and telecommunication. President U Thein Sein conveyed Myanmars appreciation of Indias contribution to the countrys development. Path breaking reform measures taken by the Government of Myanmar in economic, political and social field is a positive message that has resonated globally and India is committed to be a steadfast partner of Myanmar in this journey, Shri Sharma told the President. Talking about cooperation in banking sector Shri Sharma conveyes Indias appreciation for the Myanmar Governments approval to allow Indian Banks like United Bank of India to set a representative office in Myanmar. He expressed the hope that the two public sector banks viz., Bank of India and State Bank of India, who have also expressed interest, would also be permitted to operate in Myanmar. Shri Sharma stressed the need for permission to open full-fledged banking services. Even setting up a joint venture state-owned bank with India and Myanmar sharing equity would further enable to strengthen our ties in banking and commerce, said Shri Sharma. The two leaders also discussed cooperation in Energy sector. Shri Sharma expressed satisfaction on the progress of cooperation in this field as the renovation of the Thanlyin Refinery and the ongoing upgradation of the Thanbayakan Petrochemical Complex proceeded smoothly. The renovation of the Thanlyin Refinery was financed by US$ 20 million LoC, signed in 2005-06. The upgradation of Thanbayakan Petrochemical Complex is being financed by another US$20 million LoC signed in 2008-09. Shri Sharma later told mediapersons that many of the Indian companies undertaking exploratory activities in North East region India which shares common geological traits with neighbouring Myanmar are well placed to also take up such activities there. Myanmar Government has shortlisted 59 companies for submission of final bids for 18 onshore gas blocks on offer. Seven Indian companies are part of those shortlisted. Shri Sharma conveyed the robust track record of Indian companies to the President.
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Indian companies are very active in oil and gas field in Myanmar. OVL and GAIL have announced US$ 1.33 billion investment in China-Myanmar gas pipeline project. Phase I of 200 km Kyaukphyu-Kunming Oil & Gas pipeline worth US$ 475 million for construction of two parallel pipelines for gas and oil has been awarded to Punj Lloyd. PSC-1 onshore block in Central Myanmar worth US$ 73 million has been awarded to Jubilant Energy India on the basis of a global tender in 2011. The two leaders also discussed revival of the discussions on the gas pipeline connection between India and Myanmar through Bangladesh. India is involved in improving road connectivity with ASEAN country which will create new opportunities for Indias north eastern region. Shri Sharm a informed of the significant progress in the area. India has extended assistance for road development projects which include upgradation of the Tamu-KalewaKalemyo (TKK) road (about 160 kms); Kaladan Multi-Modal Transit Transport Project which envisages development of road and inland waterways from Sittwe port in Myanmar to Mizoram; and some segments of Trilateral Highway Project (about 1360 kms) connecting Moreh (Manipur, India) to Mae Sot (Thailand) through Myanmar. These will prove of great benefit to Indias land locked North East. BRO has completed the resurfacing and maintenance work of 132 kms Tamu-Kyigone-Kalemyo stretch of the road and handed over to Myanmar. The remaining 11 kms of the 28 km section on the KyigoneKalewa stretch is also to be handed over to Myanmar after completion. Indian assistance towards repair/upgradation of the 71 bridges on the Tamu-Kalewa road and the upgradation of the Kalewa-Yargyi road section of the Trilateral Highway was announced during the visit of the Prime Minister to Myanmar in May 2012. The work on the Sittwe Port of the Kaladan Project, which began in December 2010 is expected to be completed by mid 2013. The Detailed Engineering Report (DER) for the road component is expected to be finalised in 2013. A new Air Service agreement to facilitate direct air connectivity was signed during the visit of the Prime Minister in May 2012. Currently Air India is operating 3 services per week on the Kolkata Yangon Sector. Prime Minister of India Dr. Manmohan Singh paid a state visit to Myanmar from May 27-29 2012. During the Visit Prime Minister several new initiatives were announced and signed including extension of a new line of credit (LOC) for US$500 million to Myanmar, support for setting up an Advance Centre for Agriculture Research and Education in Yezin, a Rice Bio-park in the integrated Demonstration Park in Nay Pyi Taw, and an Information Technology Institute in Mandalay, Air Service Agreement, Establishment of Joint Trade and Investment Forum, MoU on Border Areas Development, and establishment of Border Haats and Cultural Exchange Programme. Shri Sharma addressed the first meeting of Joint Trade and Investment Forum which was co chaired from Indian side by Shri Sunil Bharti Mittal at Yangon on Friday. * * * IdEA stands for Instituto de Estudos Asiticos or Institute of Asian Studies, a Department of AESEBusiness School, Lisbon, Portugal, dedicated to this important and high growth world region. Further information on www.aese.org AAPI Associao de Amizade Portugal ndia or Friendship Association Portugal India, encourages friendly relations between Portugal and India, favoring the strengthening of cultural and economic cooperation. Further information on www.AAPUI.org Body of Collaborators: Eugnio Viassa Monteiro, India; Joo Santos Lucas, Singapore; Jorge Costa Silva, IdEA; Jos Miguel Pinto dos Santos, Japan Lus Filipe Carvalho, South Korea Rafael S. Franco, AAPI.

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