Consortium is a Latin word, meaning 'partnership, association or society¶. € A consortium is an association of two or more individuals, companies, organizations or governments (or any combination of these entities) with the objective of participating in a common activity or pooling their resources for achieving a common goal.


2/26/2011 3 . joint supervision and follow-up exercises. several banks (or financial institutions) finance a single borrower with common appraisal. these banks have a common agreement between them. common documentation. the process is somewhat similar to loan syndication.€ Under consortium financing.

several banks (or financial institutions) finance a single borrower with common appraisal. particularly the big ones.The borrowers. but in multiple banking. This is due to the increasing competition and the bankers desire to grow in a short span of time. The practice of multiple banking has increased tremendously during the last years . Under consortium financing. joint supervision and follow-up exercises. are nowadays a very happy lot as the bankers run after them offering cheap finance. common documentation. This has given birth to the practice of MULTIPLE BANKING³a situation when one borrower is banking with many banks. different banks provide finance and different banking facilities to a single borrower without having a common arrangement and understanding between the lenders. 2/26/2011 4 .

€ It is like a establishing a temporary business without the formal structure or tax liabilities.The Consortium approach to project delivery is chosen because of the desire to share as evenly as possible the risk inherent in that project. a business that is governed by the rules laid down in a consortium agreement. € 2/26/2011 5 .

IITs. 2/26/2011 6 . IIMs and a few central universities who were subscribing to a few bibliographic databases on CD ROM. Prior to setting up of these consortia. a few e-journals accessible free with subscription to their print versions and a negligible fraction of journals on subscription. the access to e-journals was restricted to a premier institutions like IISc.The accessibility to international journals in Indian universities and technical institutions has improved many fold with setting-up of a few Governmentfunded library consortia.

Some of the important consortia and their activities will be discussed now: 2/26/2011 7 . A number of library consortia have emerged in India in past five to six years.After launch of the ´Indian National Digital Library in Engineering Sciences and Technology (INDEST) Consortiumµ in 2003 and ´UGC-INFONET Digital Library Consortiumµ in 2004. availability and accessibility of eresources increased phenomenally in setting in a new culture of electronic access and browsing in educational institutions.

IITs. 2/26/2011 8 . NITs. IIMs. new NITs and IITs. the Ministry provides funds required for subscription to resources for 42 centrally-funded institutions including IISERs. etc.INDEST-AICTE Consortium was set-up by the Ministry of Human Resource Development (MHRD) in year 2003 to provide access to selected electronic journals and databases to 38 centrally-funded technical institutions including IISc. ISM. SLIT. Currently. IIITs.

the Consortium also welcomes other institutions to join it under its self-supported category.Besides. The total number of members in the Consortium has now gone up to 788. 2/26/2011 9 . 60 Government or Government-aided engineering colleges and technical institutions have joined the Consortium with financial support from the AICTE. Moreover. 690 engineering colleges and other educational institutions have joined the Consortium under its self-supported category.

Ease of termination. 2/26/2011 € € 10 . Also no capital is required to create the consortium.No formal procedure must be followed.€ Ease of Formation.Consortia can be set to expire on a given date or on the occurrence of certain events without the formal requirements needed in the case of dissolution of the corporation.Members of consortium can change their contractual agreement at any time to suit changed circumstances. Flexibility.

Confidentiality. 2/26/2011 € € 11 .Some of the members may choose to be ´undisclosedµ parties in dealings with third parties.The cost of running a contractual joint venture is generally lower than running a joint venture company. Costs.The consortium is not directly subject to taxation however the individuals are.€ Tax transparency.

Members may even become liable to third parties for the non performance of other members of the consortium or debts of such members incurred in undertaking the common project. External Relationships and Funding. 2/26/2011 12 .Third parties often find it difficult to enter into a contract with a non legal entity like consortium. Because it is non legal entity the funding is also normally available to the individual members and not the consortium itself.It is difficult for a consortium member to restrict or limit its liability.€ € Liability.

The lack of permanent structure makes it difficult for a consortium to establish a long term business relationship with third parties.€ Lack of permanent structure. 2/26/2011 13 .

The owner of the Kochi IPL team is Vivek Venugopal.Anchor Earth .a business man based in and out of kerala. Companies in the Consortium are: .€ € Rendezvous sports ltd wins Kochi·s IPL team. Shailendra Gaekwad is also believed to be one of the owners.Anand Shah developers ² Film Waves (proper list to follow soon) Shashi Tharoor has played a major role in Kerala getting an IPL team. Vivek Venugopal along with other 5 companies has formed a group called kerala consortium and has won the bid for 1533 Crore rupees.Parani Development Pvt Ltd . 2/26/2011 14 .

BAE would later sell its share to EADS.€ € Airbus Industrie was formed in 1970 as a consortium of aerospace manufacturers. In 2001 EADS (created by the merger of French. but guarded the financial details of their own production activities and sought to maximise the transfer prices of their sub-assemblies. 15 2/26/2011 . This arrangement led to inefficiencies due to the inherent conflicts of interest that the four partner companies faced. and subcontractors to. Airbus SAS. The companies collaborated on development of the Airbus range. they were both shareholders of. the consortium. The retention of production and engineering assets by the partner companies in effect made Airbus Industrie a sales and marketing company. German and Spanish Airbus partner companies) and BAE Systems (the British partner company) transferred their Airbus production assets to a new company. In return they got 80% and 20% shares respectively.

€ An example of a for-profit consortium is a group of banks that collaborate to make a loan³also known as a syndicate. 2/26/2011 16 . In England it is common for a consortium to buy out financially struggling football clubs in order to keep them out of liquidation. This type of loan is more commonly known as a syndicated loan.

€ € SBI-led consortium approves Rs1230cr debt financing: Jai Balaji. "Jai Balaji has achieved financial closure for Rs 1. the company said. Purulia. (ECONOMIC TIMES) KOLKATA: Jai Balaji Industries today said that a State Bank of Indialed consortium has approved Rs 1." a Jai Balaji statement said here today.West Bengal. 2/26/2011 17 . The statement said the project of 35.870 crore phase 1A of the five million tonne steel plant and 1215 MW power plant at Ragunathpur.000 tonnes coke oven plant at Durgapur plant is expected to be completed in November 2011. The company said it would arrange Rs 640 crore as equity and internal accruals toward the project and the rest by SBI-led consortium .230 crore debt financing for its greenfield five million tonnes steel project and a power plant at Purulia. The project will be completed in a period of 30 months.

India·s leading Technology.(Courtesy : Topnews.in) Larsen & Toubro. 2/26/2011 € 18 . Engineering & Construction Company along with its Malaysian partner Scomi Engineering Bhd has secured an order worth Rs 2460 crore from the Mumbai Metropolitan Region Development Authority (MMRDA) to implement the country·s first Monorail System in Mumbai.€ L&T Consortium bags India·s first Monorail System from Mumbai Metropolitan. The consortium bagged the said contract by beating Reliance-Hitachi Consortium·s bid.

€ € HCL Infosystems led consortium bags India's largest PDS order. for over 10million expected transactions per month at Rs. the APL families (8milliion approx.) would get access to the scheme for free. While the BPL & AAY families (10 million approx.) will be paying a one-time subsidised registration fee of Rs. HCL Infosystems led consortium bagged this order which would involve setting up an efficient model of food & civil supplies distribution in the state based on the UIDAI guidelines. services and ICT systems integration and distribution company today announced the awarding of the contract from the Government of Madhya Pradesh for the implementing of India·s largest food-coupon based Targeted Public Distribution Systems (TPDS) in the state. 2/26/2011 19 . (Courtesy: The Financial Express) HCL Infosystems India·s premier hardware.98 (per transaction per family) spread over 78 months. 10. 250 only.

GSPC holds 55% interest in the Cambay field. However. while Australia's Oilex Ltd holds 45%.5 tcf of recoverable reserves. Oilex Ltd on Monday said the natural gas discovery in Gujarat may hold over 1. AHMEDABAD: State-owned Gujarat State Petroleum Corporation (GSPC)-led consortium has made a huge natural gas discovery in the Cambay basin. almost equivalent to that of Reliance Industries' fields in KG-D6.€ € GSPC-led consortium strikes gas in Cambay. The field was awarded to GSPC and Canada's Niko Resources in the pre-new exploration licensing policy ( NELP) rounds in the 1990s and Oilex stepped in after Nikos exit. recoverable reserves may be much lower as the reservoir is tight with low permeability. 2/26/2011 20 . Industry estimates suggest the total resource base in the basin may be in the region of 20-30 trillion cubic feet (tcf).(Courtesy: TOI).

THANK YOU 2/26/2011 21 .

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