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Current Economic Statistics and Review For the
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Theme
of the week:
Economic Census -4: Employment *
Economic Census has been conducted periodically by Central Statistical Organization (CSO) to gather information regarding various aspects of enterprises and persons employed by them, the latest being the fifth Census conducted in 2005. The first Census conducted in 1977 was of modest one, which gathered information only on non-agricultural establishment with at least one hired worker, thus leaving out agricultural enterprises (non-crop) as well as own-account enterprises. However, from second Census onwards these lacunae were removed and Census collected information regarding agricultural (non-crop) and non-agricultural enterprises along with own account enterprises as well as establishment with at least one hired worker. Our first three notes dealt with providing background information on the rationale for conducting Censuses, trend growth in the number of enterprises in all Censuses between 1980 and 2005, as also an account of the special characteristics of different enterprises. This note, the fourth in the series of notes prepared from the results disseminated from the Economic Censuses, presents an account of the different facets of employment together with the growth in employment as between different Census periods during the last twenty-five years i.e. from 1980 to 2005. 2. Definitions An institutional unit in its capacity as a producer of goods and services is known as an enterprise. An enterprise is an economic transactor with autonomy in respect of financial and investment decision-making, as well as authority and responsibility for allocating resources for production of goods and services. It may be engaged in one or more economic activities at one or more locations. An enterprise may be a sole legal unit. Establishment The establishment is defined as an enterprise or part of an enterprise that is situated in a single location in which one or predominantly one kind of economic activity is carried out. It is an economic unit under a single legal entity. Own-Account
Enterprises (OAE) An enterprises without any hired worker on a fairly regular basis is termed as an own-account enterprise. It is normally run by members of the household Directory
Establishment (DE) An establishment with hired worker employing six or more persons daily on a fairly regular basis is termed as directory establishment. Non
–Directory Establishment (NDE) An establishment with hired worker employing less than six persons daily on a fairly regular basis is termed as non-directory establishment. Agricultural
Establishment Agricultural Establishment is defined as one engaged in livestock production, agricultural services, hunting, trapping and game propagation, forestry and logging, fishing (corresponding to groups 012,013,014,015,020 and 050 of NIC 2004). Establishments engaged in activities pertaining to crop production and plantation (group 011 of NIC 2004) are excluded from the coverage of Economic Censuses. Non-Agricultural
Establishment Establishments engaged in economic activities other than those carried out by agricultural establishments are termed as non-agricultural establishments. Number
of Persons usually working daily Number of persons working daily in an establishment will include all persons whether hired or not. Workers with age less than 15 are categorized as children. Household members whether paid or not if engaged in any of the activities carried out by the establishment are included. The data of persons is a position in the last year for perennial establishment and last working season for seasonal establishment. This also includes supervisors and primary workers. A worker need not mean the same person is continued but refers to a position. Part time workers are also treated as employees as long as they are engaged on a regular basis. Coverage Scope and CoverageFifth Economic Census covered all states and UTs. All economic activities (agricultural and non-agricultural) except that involved in crop production and plantation related to production and/or distribution of goods and/or services other than for the sole purpose of own consumption was covered. However,
as were done in earlier censuses, the following activities were kept out of
the purview of the fifth economic census. i)
Establishments of
shelter-less and nomadic population, which keep on moving from place to
place and camp either without shelter or with makeshift shelter. ii)
Establishments
engaged in some activities like smuggling, gambling, beggary, prostitution,
etc. iii)
Domestic servants,
whether they work in one household or in a number of households and drivers,
etc who undertake work for others on wages. iv)
All
wage-paid employees of casual nature. v)
Household
members engaged in household chores. vi)
Mazdoors
, masons, carpenters, working independently, etc. vii)
Household members
working for other households and earning some money, which is insignificant. viii)
Households
depending only on remittances, rent, interest, pension, etc. ix)
Owners of tube-wells,
tractors, bullock carts, etc., who utilize their spare capacity to earn
extra money, if the spare capacity utilization is occasional and not on
regular basis. Thus Economic Censuses covers small, medium and large enterprises both in rural and urban areas as well as non-crop agricultural enterprises and non-agricultural enterprises including own-account enterprises and establishment with at least one hired worker 3.
Limitations NIC-1987
was used in the third and fourth Economic Censuses, whereas NIC-2004 was
used in the fifth Economic Census. Census 1980 did not cover
Status and TrendsAll
Enterprises Table 1 presents the number of enterprises as well as size of employment along with their growth and rate of employment, i.e., the average employment per enterprises between different Censuses. According to EC 2005, there were 41.83 million enterprises in the country engaged in different economic activities other than crop production and plantation, employing 100.9 million persons in 2005; as against this, there were 53.7 million persons employed by 18.36 million enterprises in 1980. The compound annual average growth rate in employment between 1980 and 2005 works out to be 2.56 per cent. The CAGR in number of enterprises between 1998 and 2005 has been the fastest at 5.94 per cent but the employment during the period was only 2.78 per cent. Nevertheless some interesting facts have been revealed by the Economic Censuses. Firstly, the growth rate in employment has been the fastest in rural areas as compared to urban areas during the period 1980-2005. Thus there has been a change in the share of employment during the period 1980 and 2005 with rural areas gaining and the urban areas loosing ground to that extent. Secondly, the rate of employment (workers per enterprises) was only 2.41 persons in 2005 and there was a steady decline in the rate of employment between different Censuses during the 25-year period (Table 1). Still the rate of employment was more or less the same in rural areas, hovering around 2 to 2.3 persons per enterprise; as against this in urban area, there has been a marked decline in the employees per enterprises, with the rate of employment falling from 4 in 1980 to 3.8 in 1990, then to 3.4 in 1998 and finally to 3 in 2005.
The
number of hired workers rose from 29.6 million to 54.3 million during the
25-year period ending 2005. However, the share of hired workers to total
employed persons witnessed a decline from 55.1 per cent in 1980 to 53.9 per
cent in 2005. Marked decline in the share of hired worker has witnessed in
1998, thereafter there was a pick up to 53.4 per cent in 2005 (Table 1).
This trend can be attributed the recessionary trend in the early 1990s and
then the pick up of the economy between 1998 and 2005. There was an addition
of 13 million numbers of persons in enterprises situated in rural areas
resulting in total rural work force to 23.1 million in 2005. The increment
in the number of hired workers in urban areas was only 11.8 million; as a
result the total number of hired workers in urban area rose from 19.5
million to 31.3 million during the period 1980-2005. Own-Account
Enterprises Table 2 shows the number of enterprises, employment, their growth and rate of employment, i.e., the average employment per enterprises between different censuses. Persons working in own account enterprises rose from 20.2 millions in 1980 to 35.7 million in 2005 with a CAGR of 2.32 per cent. While there was an increase of 11 million persons working in rural enterprises during the period 1980 to 2005 that in urban areas witnesses only an increase of 3.9 million enterprises.
The growth rate in rural areas works out 3.6 per cent during the period and that in urban areas 2.2 per cent. As a result the overall rate of employment came down from 1.5 percent in 1980 to 1.3 in 2005. The same trend has been witnessed both in rural and urban area enterprises (Table 2). However, the share of persons working in own account enterprises in rural areas gone up from 65 per cent to 69 per cent, that in urban enterprises declined from 35 per cent to 31 per cent between 1980 and 2005. Establishment
with at least one hired worker Persons engaged by establishment with at least one hired worker rose from 33.5 million in 1980 to 65.2 million in 2005, a massive addition of 31.7 million during the 25-year period, with a CAGR of 2.70 per cent. Still the rate of employment during the period saws a decline from 6.7 to 4.4. Though the addition was more or less evenly distributed between rural and urban enterprises, there was a change in the share of employees among the rural and urban areas in favour of rural enterprises (Table 3). While the share of rural enterprise employees rose from 34 to 42 per cent that of urban employees went down from 66 to 58 per cent during the 25-year period ending 2005.
Another interesting fact is both in rural and urban areas the rate of employment witnessed declines. While rate of rural employment came down to 3.7 in 2005 from 4.6 1980, that among urban enterprises decline to 5.1 in 2005 from 8.9 in 1980. Still, the CAGR in rural during the 25-year period works out to be 3.6 per cent, clearly 1.4 per cent more than that seen among urban enterprise employment. Directory
and Non-Directory Establishment The
employment in non-directory establishment has registered an increase of 11.6
million employees during the 7 year period ending 2005. Both in rural and
urban area the employment increased 6 million each during 1998-2005. The
CAGR worked out to be 7.2 per cent during the period. But rate of employment
however came down from 2.5 in 1998
to 2.3 in 2005 (Table 4).
Persons engaged by Directory Establishment grew from 32.5 million in 1998 to 35.0 million in 2005, a mere 2.5 million with a growth rate of 1.1 per cent during the 7-year period. However rate of employment came down from 19.6 to 18. The employment in non-directory establishment was growing much faster than that in directory establishment as a whole as well as in both in rural and urban areas. Male
and Female Employments Table 5 shows gender wise employments among own account enterprises, establishments with at least one hired workers and all enterprises along with child employments for the years 1990, 1998 and 2005. In 2005, out of 100.9 million workers, 20.2 million workers were females forming 20.0 per cent, as against this in 1990 there were 12.3 million females employees forming 17.1 per cent of 72.0 million total employees. CAGR of female employees works out to be 1.8 per cent during the 15-year period. Female employment in rural enterprises grew from 7.5 million in 1990 to 12.3 million in 2005. In urban enterprises female participation grew from 4.8 million in 1990 to 7.2 million in 2005. Thus, CAGR of female employment in urban areas was slower at 1.2 per cent than that of 2.6 per cent in rural areas. Female participation in own account enterprises rose from 5.2 million in 1990 to 7.4 million in 2005 with a CAGR of 1.9 during the period. But there was not much change in their share during the period. Establishment with hired worker has 7.1 million females in the roaster in 1990 which rose to 12.8 million in 2005 with CAGR of 1.8 per cent. But the share of female workers increased from 15.5 per cent in 1990 to 19.6 per cent in 2005. In
spite of child labour ban etc., there was an increase in the child
employment especially in rural establishments. While there was a fall in
child employment especially among own-account enterprises, there was a
substantial increase in child employment among establishments with at least
one hired workers. This trend is more among rural establishment with at
least one hired worker. However, over all there is no increase in child
employment and there was 2.4 million children working in the enterprises as
per EC-2005 as against 2.3 children working as per EC-1998.
5.
Employment in Agricultural Enterprises All
Agricultural Enterprises (OAE+Estt) Agricultural enterprises employed 10.9 million people in 2005 as against 2.8 million in 1980, a massive increase of 8.1 million people in 25-years with an CAGR of 5.52 per cent (Table 6). The growth rate was fastest between 1998 and 2005 with CAGR of 7.11 per cent during the period. While rural agricultural employment grew from 2.5 million people in 1980 to 10.2 million people in 2005, that in urban area increased from 0.4 million in 1980 to 0.7 million in 2005. In 2005, the share of employment in rural area was 93.2 per cent as against 86.0 per cent in 1980. However, a marginal decline in average worker per enterprises has been witnessed during the period. Hired workers increased from 0.6 million to 2.2 million during the period with rural enterprises employing most of the workers. In 2005, hired workers formed about 20.0 per cent of the total workers in agricultural enterprises, as against 19.5 per cent in 1980.A marginal increase of 2 per cent were witnessed in the share of hired workers in urban areas and a one percent increase in the share of hired workers engaged by rural agricultural enterprises.
Agricultural
Own Account Enterprises (OAE) Table 7 the employment in agricultural own account enterprises. Employment in Agricultural OAE almost quadrupled from 2.0 million in 1980 to 7.8 million in 2005, the increase seen mainly in rural agricultural OAE (1.8 mn in 1980 to 7.4 mn in 2005). The CAGR between 1980 and 2005 works out to 5.53 per cent. Over
all rate of employment fell 1.7 in 1980 to 1.5 in 2005 and that in rural
area also witnessed same kind of fall indication of family members prefer
working outside their household establishments.
Agricultural
Establishment with at least one Hired Workers Persons engaged by agricultural establishment with at least one hired worker rose from 0.8 million in 1980 to 3.1 million in 2005, an addition of 2.3 million during the 25-year period, with a CAGR of 5.49 per cent. Still the rate of employment during the period saws a decline from 3.6 to 3.2. There was a change in the share of employees among the rural and urban areas in favour of rural enterprises (Table 8). While the share of rural enterprise employees rose from 79 to 89 per cent that of urban employees went down from 21 to 11 per cent during the 25-year period ending 2005. Another interesting fact is both in rural and urban areas the rate of employment witnessed declines. While rate of rural employment came down to 3.2 in 2005 from 3.4 1980, that among urban enterprises decline to 3.7 in 2005 from 4.4 in 1980. Still, the CAGR in rural during the 25-year period works out to be 6.0 per cent, clearly 3.3 per cent more than that seen among urban enterprise employment during the entire period.
Directory
and Non-Directory Establishment
The employment in non-directory establishment has registered an increase of 1.8 million employees during the 7 year period ending 2005. The CAGR worked out to be 38.5 per cent during the period and the rate of employment rose from 0.6 in 1998 to 2.3 in 2005 (Table 9). Persons engaged by Directory Establishment grew from 0.2 million in 1998 to 1.1 million in 2005, with a CAGR of 26.0 per cent during the 7-year period. The rate of employment jumped up from 4.2 to 16.0. The growth in employment in directory establishment though smaller the rate of employment was much higher than in non-directory establishment. Male
and Female Employments Table 10 shows gender wise employments among agricultural own account enterprises, establishments with at least one hired workers and all enterprises along with child employments for the years 1990, 1998 and 2005. In 2005, out of 10.9 million workers, 4.0 million workers were females forming 36.6 per cent of the total employment, as against this in 1990 there were 1.6 million females employees forming 33.9 per cent of 4.8 million total employees. CAGR of female employees works out to 4.86 during the 15-year period. Female employment in rural agricultural enterprises grew from 1.5 million in 1990 to 3.8 million in 2005. In urban enterprises female participation grew from 0.1 million in 1990 to 0.2 million in 2005. The, CAGR of female employment in agricultural enterprises in urban areas was slower at 1.2 per cent than that of 5.3 per cent in rural areas. Female participation in own account enterprises rose from 1.3 million in 1990 to 3.0 million in 2005 with a CAGR of 4.7 per cent during the period. The share rose marginally from 33.9 in 1980 to 36.6 percent in 2005. Agricultural Establishment with hired worker has 1.2 million females in the roaster in 1990 which rose to 3.0 million in 2005 with CAGR of 5.2 per cent. But the share of female workers increased from 29.8 per cent in 1990 to 33.3 per cent in 2005.
In
spite of child employment ban etc., there was an increase in the child
employment especially in rural agricultural establishment. While there was a
fall in child employment especially among own account enterprises, there was
substantial increase in child employment among establishment with at least
one hired workers. This trend is more among rural establishment with at
least one hired worker. Though, there has been a fall in the share of
employment, there was 0.5 million children working in the enterprises as per
EC-2005 as against 0.4 children working as per EC-1998. 6.
Employment in Non-Agricultural Enterprises All
Non-Agricultural Enterprises Enterprises engaged in various economic activities are termed as non-agricultural enterprises which includes own-account enterprises and establishment with at least one- hired worker, have numbered 35.75 million and they have employed 90.0 million workers, according to the EC 2005 with rural area non-agricultural enterprises accounting for 41.9 million persons and urban non-agricultural enterprises accounting for 48.1 million workers. As against this, as per the EC-1980 there were 50.8 million workers employed by 9.86 million non-agricultural enterprises, out of which 22.9 million were employed by rural non-agricultural enterprises and 28.8 million employees were engaged by urban non-agricultural enterprises. At this level, the CARG between 1980 and 2005 works out to be2.31 per cent with the growth in rural non-agricultural employment working out to 2.61 per cent and the urban non-agricultural employment growth registering 2.07 per cent. The rate of employment in 2005 at 2.5 was less than 3.0 in 1980. However, there is a steady decline in the rate of employment in the urban non-agricultural enterprises from 4.09 in 1980 it declined to 3.8 in 1990, then to 3.5 in 1998 and finally to 3.0 in 2005. Contrary to this trend the rate of employment in rural non-agricultural enterprises steadily rose from 2.2 in 1980 to 2.3 by 1998 and thereafter registered a decline to 2.1 in 2005 ( Table 11). The
number of hired workers employed non-agricultural enterprises both in rural
and urban areas rose from 29.0 million to 52.2 million during the 25-year
period ending 2005. However, the share of hired workers to total employed
persons witnessed only a marginal rise from 57.1 percent in 1980 to 58.0 per
cent in 2005 (Table 11). There was an addition of 11.5 million numbers of
persons were hired by enterprises situated in rural areas resulting in
bulging up of the total hired works force to 21.1 million in 2005. The
increment in the number of hired workers in urban areas was
11.7 million; as a result the total number of hired workers in urban
area rose from 19.4 million to 31.3 million during the period 1980-2005.
Own
Account Enterprises Table 12 shows the employment growth in non-agricultural own account enterprises, rate of employment i.e., the average employment per enterprises between different censuses and number of hired workers employed by non-agricultural enterprises.
Persons working in non-agricultural own account enterprises rose from 18.1 millions in 1980 to 27.9 million in 2005 with a CAGR of 1.74 per cent. While there was an increase of 6million persons working in rural enterprises during the period 1980 to 2005 that in urban areas witnessed only an increase of 3.8 million persons.
The growth rate in rural as well in urban non-agricultural enterprises works out 1.7 per cent during the period and as a result the overall rate of employment came down from 1.5 percent in 1980 to 1.3 in 2005. The same trend has been witnessed both in rural and urban area non agricultural own account enterprises (Table 12). However, the share of persons working in non-agricultural own account enterprises in rural areas dipped from 62.3 per cent to 62.0 per cent, that in urban enterprises marginally rose from 37.7 per cent to 38.0 per cent between 1980 and 2005. Establishment
with at least one hired worker Persons engaged by non-agricultural establishment with at least one hired worker rose from 32.7 million in 1980 to 62.1 million in 2005, a huge addition of 29.4 million during the 25-year period, with a CAGR of 2.60 per cent. Still the rate of employment during the period saws a decline from 6.9 to 4.5. While 13.9 million workers were engaged by rural non-agricultural establishment with at least one hired workers and that in urban non-agricultural establishment were more at 15.5 million persons (Table13).
While the share of rural non-agricultural establishment with at least one hired worker rose from 33 to 40 per cent that of urban employees went down from 67 to 60 per cent during the 25-year period ending 2005. Another interesting fact is both in rural and urban areas the rate of employment witnessed declines. While rate of rural employment came down to 3.8 in 2005 from 4.7 1980, that among urban enterprises decline to 5.1 in 2005 from 9.0 in 1980. Still, the CAGR in rural non-agricultural employment during the 25-year period works out to be 3.6 per cent, clearly 1.4 per cent more than that seen among urban enterprise employment. Directory
and Non-Directory Establishment The employment in non-directory establishment has registered an increase of 10.5 million employees during the 7 year period ending 2005. Both in rural and urban area the employment increased about 5 million and 5.5 million persons respectively during 1998-2005. The CAGR worked out to be 6.9 per cent during the period. But rate of employment however came down from 2.5 in 1998 to 2.3 in 2005 (Table14).
The employment in non- agricultural non-directory establishment was much faster than that in directory establishment. Similar trends was seen both in rural and urban areas. Male
and Female Employments Table 15 shows gender wise employments among non-agricultural own account enterprises, establishments with at least one hired workers and all enterprises along with child employments for the years 1990, 1998 and 2005. In 2005, out of 90.0 million persons engaged by non-agricultural enterprises workers, 16.2 million workers were females forming 18.0 per cent, as against this in 1990 there were 10.7 million females employees forming 15.6 per cent of 67.3 million total employees. CAGR of female employees works out to be 1.6 per cent during the 15-year period. Female employment in rural non-agricultural enterprises grew from 6.0 million in 1990 to 9.2 million in 2005. In urban non-agricultural enterprises female participation grew from 4.7 million in 1990 to 7.0 million in 2005. Thus, CAGR of female employment in urban areas was slower at 1.2 per cent than that of 2.1 per cent in rural areas. Female participation in own account enterprises rose from 3.9 million in 1990 to 4.4 million in 2005 with a CAGR of 1.5 during the period. Non-Agricultural Establishment with hired worker has 3.6 million females in the roaster in 1990 which rose to 11.8 million in 2005 with CAGR of 1.8 per cent. But the share of female workers increased from 15.1 per cent in 1990 to 19.0 per cent in 2005. In spite of child employment ban etc., child employment still in 2005 was 1.9 million. However, over all there is no increase in child employment and actually there was a fall in child employment from 19.2 million in 1998 to 18.9 million in 2005. In rural non-agricultural enterprises there were 1.0 million children were in the roaster as against 0.9 million children in urban non-agricultural enterprises. Though there was decline in child employment in non-agricultural enterprises between 1998 and 2005, there was still 0.4 million children working in these enterprises in 2005. Non-agricultural establishment with at least one hired worker hired 1.4 million children in 2005.
Highlights of Current Economic Scene AGRICULTURE The
central government would be releasing 909,000 tonnes of wheat under open
market scheme to 35 states and union territories during September-October
2008, to curb inflationary pressures in food items. Quantities have been
allocated to the states depending upon the population of states. Wheat would
be sold to states at a rate of Rs 1000 per quintal plus the transportation
cost or freight from The
centre has decided to start rice procurement for this year from September
22, 2008 in Haryana as the new crop has started arriving in local mandis.
While in As per the data revealed by Solvent Extractors' Association (SEA), total imports of edible oil has increased by 21 per cent to 41.98 lakh tonnes during November - August 2007-08 of the current oil season from 37.67 lakh tonnes a year ago. Import of non-edible oil during the same period has been reported to be 5.63 lakh tonnes compared to 5.30 lakh tonnes last year. The overall import of vegetable oil (edible and non-edible) during first ten months of the oil year has shown a rise of 11 per cent to 47.61 lakh tonnes from 42.96 lakh tonnes during the corresponding period last year. The import of edible oil, in the month of August 2008, has risen to 5.69 lakh tonnes as compared to 5.32 lakh tonnes in July 2008, while non-edible oil import has gone up to 53,375 tonnes as against 46,738 tonnes during the same period of the previous year. It is estimated that imports of vegetable oil during the ongoing season (November-October) would touch 6 million tonnes, of which 5.1-5.2 million tonnes would be of edible oil, 650,000 tonnes of non-edible oil and 50,000 tonnes of vanaspati. It is observed that due to lean crushing season, import is likely to be around 5.50-6 lakh tonnes per month over the next two months untill new Kharif oilseeds are not available for crushing. According to the ministry of agriculture, out of 3.12 lakh tonnes of contracted orders of edible oil, 2.21 lakh tonnes have already arrived in the country till September 15, 2008. Distribution of this imported edible oil has already been started under ‘government's subsidised oil distribution scheme’, in states such as Andhra Pradesh, Orissa, Chhattisgarh, Himachal Pradesh, Maharashtra, Tamil Nadu and West Bengal and it is likely to commence shortly in Delhi, Rajasthan, Karnataka, Uttar Pradesh and Pondicherry. Out of the 12 million tonnes of edible oil consumption in the country, more than 5.5 million tonnes is reported to be imported. The prices of edible oil have registered a sharp rise in last one-year due to increase in prices of palm oil globally. Market sources have reiterated that even though there is a decline in prices of international crude edible oil, government has distributed only 1-lakh tonnes of imported edible oil as against a target of 1 million tonnes to be sold at subsidised rates to poor families. According
to market sources, production of soyabean might touch an all-time high of 12
million tonnes in 2008, 20 per cent higher than that of previous year, while
its exports are projected to touch 6 million tonnes mark in the year
starting October 2008 supported by factors such as higher acreage, monsoon
rains and increased South-East Asian demands. This would exceed industrial
estimates, which had earlier held that soybean output would touch 10.2
million tonnes and soymeal exports would reach 5 million tonnes this crop
year. In first week of August, According
to Indian Oilseeds & Produce Exporters’ Association, sesame seed
exports from the country is likely to fall to 240,000-250,000 tonnes in
2008-09 (April-March), against 304,000 tonnes a year ago, because of
prospects of higher production in China, the largest importer of Indian
sesame seed. It is expected that china’s total sesame seed imports would
be around 175,000-200,000 tonnes in 2008-09, against last year’s 300,000
tonnes. It is estimated that Domestic
prices of cotton are likely to go up by 5 per cent over and above the
minimum support prices (MSP), as prices in global markets are expected to
shoot up due to drop in global output of the crop. International Cotton
Advisory Committee (ICAC) has projected that global production of cotton
would fall by 6 per cent to 24.7 million tonnes in 2008-09 season due to
increased competition from alternative crops that has dented its acreage.
While in As
per the figures released by Cashew Export Promotion Council, According
to Tea Board, exports of tea is projected to grow by more than 17 per cent
touching 210 million kg in 2008, owing to strengthened trade ties with Iraq
and increase in domestic production. In addition, decline in tea production
in Exports of coir and coir products have dropped by 23.12 per cent in the month of August 2008, while export value has shown a decline of 15.91 per cent, due to the strengthening of the Indian rupee and loss due to the slow down in European and US economies. However, the cumulative exports for the current financial year (April-August) 2008-09 so far displays an increase in volume and value of 6.9 per cent and 7.56 per cent, respectively. Exports of coir mats, pith, yarn and fiber are showing a declining trend while rugs and carpets have recorded an incredible increase of 300 per cent in volume terms during the same period. Exports of coir, in volume terms in 2007-08, have increased by 10.5 per cent as compared to previous year, while its value has dropped by 2.7 per cent. The
Union Cabinet on September 18, 2008 gave its approval to amend the
Agricultural and Processed Food Products Export Development Authority Act (APEDA
Act) to vest it with statutory authority for registration and protection of
intellectual property rights or similar rights (including Geographical
Indications) in the special product names in Industrial
Production The General Index stands at 273.0, which is 7.1% higher as compared to the level in the month of July 2007. The cumulative growth for the period April-July 2008-09 stands at 5.7% over the corresponding period of the pervious year. Mining,
Manufacturing and Electricity sectors for the month of July 2008 stand at
164.9, 293.3, and 225.9 respectively, with the corresponding growth rates of
5.0%, 7.5% and 4.5% as compared to July 2007. The
cumulative growth during April-July, 2008-09 over the corresponding period
of 2007-08 in the three sectors have been 4.5%, 6.1% and 2.6% respectively,
which moved the overall growth in the General Index to 5.7%. Ten out of the seventeen industry groups (as per 2-digit NIC-1987) have shown positive growth during the month of July 2008 as compared to the corresponding month of the previous year. The industry group ‘Beverages, Tobacco and Related Products’ have shown the highest growth of 28.6%, followed by 18.7% in ‘Transport Equipment and Parts’ and 16.0% in ‘Machinery and Equipment other than Transport Equipment’. On the other hand, the industry group ‘Wool, Silk and Man-made Fibre Textiles’ have shown a negative growth of 9.2% followed by 9.1% in ‘Wood and Wood Product: Furniture and Fixtures’ and 4.9% in ‘Leather and Leather & Fur Products‘. Sectoral growth rates in July 2008 over July 2007 are 5.9% in Basic goods, 21.9% in Capital goods and 1.6% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of 11.2% and 6.1% respectively, with the overall growth in Consumer goods being 7.3%. Infrastructure The
Index of Six core-infrastructure industries having a combined weight of 26.7
per cent in the Index of Industrial Production (IIP) with base 1993-94 stood
at 240.1 in July 2008 and registered a growth of 4.3 per cent compared to a
growth of 7.2 per cent in July 2007. During April-July 2008-09, six
core-infrastructure industries registered a growth of 3.7 per cent as
against 6.6 per cent during the corresponding period of the previous year.
Crude
Oil production (weight of 4.17 per cent in the IIP) registered a negative
growth of 3.0 per cent in July 2008 compared to a growth rate of 0.9 per
cent in July 2007. The Crude Oil production registered a growth of (-) 0.9
per cent during April-July 2008-09 compared to (–) 0.3 per cent during the
same period of 2007-08. Petroleum
refinery production (weight of 2.00 per cent in the IIP) registered a growth
of 11.8 per cent in July 2008 compared to growth of 4.7 per cent in July
2007. The Petroleum refinery production registered a growth of 5.4 per cent
during April-July 2008-09 compared to 11.0 per cent during the same period
of 2007-08. Coal
production (weight of 3.2 per cent in the IIP) registered a growth of 5.5
per cent in July 2008 compared to growth rate of 1.1 per cent in July 2007.
Coal production grew by 7.7 per cent during April-July 2008-09 compared to
an increase of 0.8 per cent during the same period of 2007-08. Electricity
generation (weight of 10.17 per cent in the IIP) registered a growth of 4.5
per cent in July 2008 compared to a growth rate of 7.5 per cent in July
2007. Electricity generation grew by 2.6 per cent during April-July 2008-09
compared to 8.1 per cent during the same period of 2007-08. Cement
production (weight of 1.99 per cent in the IIP) registered a growth of 8.8
per cent in July 2008 compared to 9.4 per cent in July 2007. Cement
Production grew by 6.5 per cent during April-July 2008-09 compared to an
increase of 7.7 per cent during the same period of 2007-08. Finished
(carbon) Steel production (weight of 5.13 per cent in the IIP) registered a
growth of 1.9 per cent in July 2008 compared to 10.8 per cent (estimated) in
July 2007. Finished (carbon) Steel production grew by 3.8 per cent during
April-July 2008-09 compared to an increase of 6.8 per cent during the same
period of 2007-08. Inflation Wholesale
Price Index for 'All Commodities' (Base: 1993-94 = 100) for the week ended
6th September 2008 rose by 0.1 percent to 241.1 from 240.8 for the previous
week. The
annual rate of inflation, calculated on point-to-point basis, stood at 12.14
percent for the week ended 06/09/2008 (over 08/09/2007) as compared to 12.10
percent for the previous week. The annual rate of inflation stood at 3.46
percent as on 08/09/2007 i.e. a year ago.
The
index of primary articles by 1.0 percent due to of fruits & vegetables
(6%), urad and wheat (3% each) and mutton (1%) groundnut seed, castor seed
and copra (1% each) fire clay (37%), kaolin (china clay) (3%) and chromite
(2%) The
price of index of major group fuel, power, light and lubricants declined by
0.2 percent due to lower prices of aviation turbine fuel (17%) and naphtha
(1%). However, the prices of bitumen (4%) moved up. Manufactured
Products declined by 0.1 percent due to lower prices of rape & mustard
oil,bran (all kinds) (2% each),atta, gur, khandsari (1% each), texturised
yarn (4%), cotton yarn-'hanks (3%), cotton yarn-cones (2%) purified
terephthalic acid (pta) (8%), benzene (5%), p.v.c. resins (4%),calcium
ammonium nitrate n-content (3%),basic pig iron, foundary pig iron (5% each)
and other iron steel (2%). For
the week ended 12/07/2008, the final wholesale price index for 'All
Commodities’ (Base: 1993-94=100) stood at 239.5 as compared to 239.0
(Provisional) and annual rate of inflation based on final index, calculated
on point to point basis, stood at 12.13 percent as compared to 11.89 percent
(Provisional).
Financial MarketsCapital Market Primary
Market According to state-owned PSU Oil India Limited (OIL) chairman and managing director M S Pasrija, the company, which recently announced to float an initial public offering (IPO), would raise debt if market conditions are not conducive for the offer. The apex body of central and state public sector enterprises has cautioned that the government should ensure that there was no "flooding" of the public offers by state-run companies, as this could adversely affect the valuations for those entities. While favouring disinvestments of government's equity in public sector enterprises (PSEs) through IPOs, the Standing Conference of Public Enterprises (SCOPE) Chairman Sarthak Behuria said that the government should also ensure that the basic characters of these companies are not changed. According to Behuria, the government has given green signal to IPOs and follow-on-offers to the disinvestments of its equity in order to boost the domestic equity markets, and sale of partial equity will give exchequer a much needed and a welcome option of raising funds. CARE has assigned 'CARE IPO Grade 2' to the IPO of Gemini Engi-Fab Ltd, which indicates below average fundamentals. Gemini Engi-Fab is planning an IPO of 55,00,000 equity shares of face value of Rs 10 each, at a price to be determined through the book building process. Secondary
Market A
deep financial crisis engulfed the global markets on
September 15 following the Lehman
Brothers, fourth largest investment firm, filed for bankruptcy, after
Barclays pulled out of an 11th-hour rescue, becoming the largest financial
firm to fail in the global credit crisis, after federal officials refused to
help other companies buy the venerable investment bank. Bank of America
meanwhile has purchased Merill Lynch for around $ 50 billion, creating a new
financial giant. the collapse of Lehman would send shockwaves around the
world and spark a global sell-off of shares. Lehman Brothers Holdings Inc,
founded in 1850, was a diversified, global financial-services firm. It is
active in investment banking, equity and fixed-income sales, research and
trading, investment management, private equity, and private banking. It was
a primary dealer in the US Treasury securities market. Its primary
subsidiaries included: Lehman Brothers Inc., Neuberger Berman Inc., Aurora
Loan Services, Inc., SIB Mortgage Corporation, Lehman Brothers Bank, FSB,
and the Crossroads Group. The firm's worldwide headquarters were in A
massive bout of short-covering by foreign institutional investors (FIIs),
mainly hedge funds, on September 19, saw domestic markets surging the most
in two months as regulators in the US, the UK and Australia took steps to
curb bets that stock prices of banks and brokerages will fall, easing
concern that the crisis in the financial markets will worsen. The domestic
market recovered all the losses posted earlier during the week as the global
stocks witnessed a surge on Friday,19 September 2008, after US Treasury
Secretary Henry Paulson proposed to congressional lawmakers a proposal that
would create an entity to deal with the billions of dollars of bad debt
still choking the financial system. A deep financial crisis engulfed the
global markets earlier in the week when the The BSE and the NSE have both clarified that Lehman Brothers Securities (LBSPL) have no outstanding open positions or settlement obligations currently either in the cash market or in the derivatives segment (of NSE). According to a press release issued by exchanges, LBSPL is one of the trading and clearing members in the cash and the F&O segments of NSE. The member will continue to operate only in the cash market segment on pre-funding of its trades. Among the sectoral indices of BSE, Reality index shed 12.6 per cent over the week as investors’ fury amid a liquidity crunch and concerns over demand for residential property. Metal index declined 7.8 per cent with global meltdown in commodity prices. Other major losers were censurable durable with 7.4 per cent, Healthcare with 5.9 per cent. Oil and Gas recorded positive gains over the week with 3.9 per cent. Bankex outperformed the Sensex rising 1.15 per cent to 7,109.88 in the week. The
Securities and Exchange Board of India (SEBI) is watching trends in the
domestic stock market, after the capital market regulators in the According to a finance ministry official, the government may liberalize external commercial borrowing (ECB) rules soon, especially for the infrastructure sector including capital-intensive ones like telecom. The finance ministry has already sought the Reserve Bank of India (RBI)’s comments on a demand from mobile operators for a one-time waiver on raising funds via the ECB route to pay for auctions of spectrum for third generation (3G) mobile services. Fighting
a desperate battle against the rupee slide and the flight of capital, the
government is planning a number of measures to attract overseas funds into
debt and equities market as well as NRI remittances into FIIs invested a massive $2.2 billion in domestic debt papers on September 16, even as equity markets bled with the exit of overseas investors. This is the highest ever single-day investment in debt paper in the country through stock markets. The annual limit for investment in government paper was raised to $5 billion in May. Derivatives The derivative markets have been volatile during the week, as the market swung between extreme ends the whole of the week. Nifty September future finished at 4283.10, just above the previous week’s close of 4245.8, due to the smart rally on September 19. Two high-volume sessions where the market swung more than 10 per cent set up the stage for a very volatile settlement. Volumes and open interest (OI) have jumped in the September and October Nifty contracts. The Nifty, Bank Nifty and CNXIT have settled at significant premiums to underlyings. The Nifty futures OI is average (just below 25 per cent) and the option carryover has also been average (about 38 per cent). Turnover spurted sharply on the NSE to Rs 74,094.75 crore against previous two days volume of Rs 58,546.48 crore in the future and option (F&O) segment. The volume of contracts traded for index futures at 12.94 lakh has been the highest since August 17, 2007, which saw 14.25 lakh contracts changing hands. The surge in volume mainly on account of short covering; traders who went short on Nifty future at 4300 and 4200 levels have wound up their position. The Nifty September future ended 4044 against the spot close of 4038.15. It added about 32.46 lakh shares in OI. Among the options, Nifty 4000 and 4100 calls and 3800 put were the most active. The 4100 call saw an accumulation of 3.43 lakh shares in OI and the put 8.9 lakh shares. The NSE Volatility Index, which measures the immediate expected volatility of market, jumped to 39.56 from Wednesday’s 33.99 points. The cumulative FII positions as percentage of the total gross market position on the derivative segment as on September 15 was 35.58 per cent. FIIs resorted to heavy buying on September 19. They hold index futures worth Rs 15,191.58 crore (Rs 13,378.69 crore) and stock futures worth Rs 21,852.1 crore (Rs 20,478.61 crore). Their holding on index options stood higher at Rs 24,576.07 crore (Rs 22,544.75 crore). 2.Government
Securities Market Primary
Market On September 17, 2008, RBI auctioned 91-day and 182-day Treasury -bills (T-bills) for the notified amounts of Rs.5,000 crore and Rs.2,000 crore, respectively. The cut-off yields for 91-day and 182-day T-bills were 8.65 per cent and 8.77 per cent, respectively. Secondary
Market The inter bank call rates ruled in a range of 9.58-13.61 per cent during the week. On September 17, the call money market rates hardened tracking as a result of a further tightening of liquidity in the system. The call rates ranged between 10-16 per cent. The overnight rates continued to rise and closed at a high of 16 per cent as banks stepped up borrowings to meet huge outflows towards advance tax payments, which are estimated to be around Rs 35,000 crore. The overnight collateralised borrowing and lending obligation (CBLO) rate lined in the range of 5 -12 per cent. Bonds paused their upward momentum with the massive exit of FIIs as the weak oil prices failed to improve flagging trade sentiments. The immediate tight liquidity has been evident from the recourse to the RBI’ repo window. Recourse to the repo window amounted to Rs 83,510 crore on September 19, making it the highest weekend repo intervention. Daily average trade volumes thinned down during the week to Rs 5,700 crore. According to traders, the thin volumes were largely in view of the tight liquidity and limited sellers for Government securities (G-secs). In fact, there were more buyers for G-secs in view of the SLR demand. However, the outlook remained uncertain. The uncertainty was evident from the inverted yield curve. One-year yield at 8.88 per cent was more than the 27-year yield at 8.71 per cent. The inversion, also largely due to the presence of the Life Insurance Corporation. LIC was a buyer for long dated paper and seller for short dated securities. The RBI was also a buyer of G-secs. According to data from the RBI’s weekly statistical supplement, G-Sec purchase was Rs 515 crore for the week ended September 12. After
a week marked with tight liquidity and volatility in the financial markets,
the RBI is watching how banks are deploying the funds raised through the
repo window. As per sources close to the development said that the central
bank was checking if banks used the liquidity adjustment facility (LAF) for
raising resources to meet short-term lending needs or pay off high-cost bulk
deposits. 3.Bond
Market The Credit Rating Information Services of India Limited (Crisil) has awarded corporate credit rating of 'CCR A' to the Nagpur Municipal Corporation (NMC). During the week under review, Rural Electrification Corporation (REC) Limited tapped the market through issuance of bonds to mobilise Rs 500 crore by offering 10.9 per cent for 5 years and 10.85 per cent for 10 years. The bond has been rated AAA by Crisil and Fitch. PNB Housing Finance Limited tapped the market through issuance of bonds to mobilise Rs 150 crore by offering 10.79 per cent for 5 years. The bond has been rated AA+ by Crisil and Care. 4.Foreign
Exchange Market Despite the exchange rate volatility, the RBI’s intervention in the exchange markets has been restricted. With the rupee’s depreciation, exporters took forward cover. As a result, forward premia slumped. Premia, for one, three, six and twelve months ended the week at 0.78 per cent (4.19 per cent), 0.69 per cent (3.32 per cent), 0.6 per cent (2.53 per cent) and 0.63 per cent (2.53 per cent) respectively. Even the weekend overnight forward premia crashed despite call rates at 15 per cent. The
rupee hit a two-year low of 46 in early morning trade on September 16, while
latest data shows that the RBI had pumped in $7 billion, on a net basis, in
the forex markets during April-July 2008 to stem the slide in the value of
the rupee. While RBI has been active in the forex market during the week
also, when the rupee fell to 45.73 against the dollar on September 19, the
data points to the fact that the central bank’s intervention has had
little impact so far this year. Since April, the rupee has depreciated 14.38
per cent against the The
cost of borrowing in dollars for three months jumped the most since 1999 as
banks hoarded cash amid concern more financial institutions will fail. As
per British Bankers’ Association the Domestic foreign exchange reserves went up by $650 million to $289.4 billion in the week ended September 12, 2008, mainly due to revaluation of other currencies in the reserve. The reserve rose despite the rupee breaching the two-year low mark. Gold and SDRs in the reserve remained unchanged over the period. While reserve position in the IMF declined $26 million to $463 million. Currency
Futures Currency futures trade on NSE saw a trading volume of Rs 456.88 crore arising out of 97,642 contracts, the highest since its launch previous month. Total number of contracts and the turnover doubled as the number of contracts traded touched nearly one lakh mark as compared to 50,386 contracts valued at Rs 232.06 crore traded on September 15. The Kochi-based Hedge Equities, has forayed into currency futures. This facility will serve as a hedging tool to export import agencies when they are faced with volatility of the dollar. Futures trading through the method of hedging can be utilised to tide over the loss due to currency fluctuations. Company officials said that this can be made use of by the laymen as well as those employed abroad. The facility to trade in currency futures is available at all branches of future trading. 5.Commodities
Futures derivatives According to Forward Markets Commission (FMC) chairman BC Khatua, the domestic futures market may have lost business worth Rs 8,00,000 crore due to a ban in forward trading of eight commodities such as wheat, rice and pulses. The average loss in four commodities - chana, soyaoil, potato and rubber - in which trading was banned earlier in May has been around Rs 1,000 crore per day and, the loss in the case of four other commodities - rice, wheat, urad and tur - in which trading has been banned in early 2007 could be around Rs 1,500 crore per day. This translated into a cumulative loss of around Rs 1,20,000 crore in the four commodities banned in 2008 and an additional loss of over Rs 6,60,000 crore from the futures contracts banned in 2007, resulting in an estimated loss of Rs 8,00,000 crore. The estimated loss figures are based on an average daily turnover of these commodities before trading was banned in them. Uncertainty
prevails in the global precious metal market following the unpredictable
moves of hedge funds in equity and commodity markets. The mood is buoyant in
the commodity market, especially after the collapse of Crude
oil futures prices on the MCX platform traded mixed during the week but gold
prices witnessed one of the most volatile trading weeks in the history of
gold trading. Gold prices posted its unprecedented one day gain in absolute
dollar terms since 1980 on September 17, hitting a near five-week high, as
anxiety highlighted by the On September 19, 2008, the leading commodity exchange MCX said that, it has got nod from market regulator SEBI for launching currency features trade. MCX had earlier applied to SEBI for necessary clearance along with the NSE for launching currency futures. While SEBI has approved NSE’s proposal to launch currency futures, the regulator asked MCX to set up a separate entity prior to the launch. MCX has set up a separate company ‘MCX stock exchange’ for the purpose of complying with SEBI directives. A sharp reversal in commodities and resource stocks on account of a stronger dollar has left some of the commodity-focused mutual funds bleeding. Mutual funds, which took positions in commodity-related stocks, have posted negative returns in the range of 3-15 per cent in the one month since August 2008. The DSP Merrill Lynch World Gold Fund, which was one of the best performers a few months ago, has seen its net asset value (NAV) erode by almost 42 per cent from its 52-week high in March this year. The downturn in the commodity market has brought the fund’s NAV down to Rs 9.38 from Rs 16.3. The fund primarily invests in the stocks of gold mining companies. Gold exchange-traded funds (ETFs) too have not been spared as prices of the yellow metal witnessed a severe correction in the last few months. All gold ETFs, including Reliance and Quantum, have posted negative returns in the range of 4.25 per cent in the past one month. UTI Gold ETF has dropped 17 per cent from its 52-week high. Banking State
Bank of The
state-run Nabard in a serious bid to give a much needed push for solar power
projects, proposes to share 50 per cent of the cost of installation upto a
maximum of 20 demonstration solar power project units at important places.
Nabard in its recent circular has asked RRBs and co-operative banks to
replicate what the Aryavart Gramin Bank, Corporate Hindalco
Industries Ltd., an Aditya Birla Group flagship announced that the company
plans to spend Rs 19,800 crore in capacity expansion in the next three
years. Reliance
Industries has started oil production from the country’s first deep sea
oilfield (D-6 block) in the Krishna Godavari basin. As per the production
profile, the peak rate of oil production from the block will be 34,000
barrels of oil per day or 1.7 mtpa. When compared with the country’s crude
oil production of 32.4 mt, the share of RIL’s oil productions from this
block will be close to 5 per cent. The D6 block in the KG basin is being
operated by the consortium of RIL and Niko Resources of Canada. Reliance is
the operator of the block with 90 per cent stake, while Niko holds the
remaining 10 per cent. Videocon
Industries, which is part of consortium with state-run oil refiner Bharat
Petroleum Corp Ltd (BPCL), has announced the acquisition of Brazilian Oil
exploration firm EnCana Brasil Petroleo Lmitada (EBPL) for $283 million
(over Rs 1,309 crore). The 50:50 joint venture of Bharat Petro Resources Ltd
(a BPCL subsidiary) and Videocon Industries has completed the acquisition of
the entire stake of EBPL, from Canadian gas producers EnCana Corp and
Alberta Ltd. EBPL’s assets include ten deep water offshore petroleum
exploration blocks. The
state-run Rashtriya Chemicals & Fertilisers (RCF) is planning to invest
over Rs 6,000 crore ($1.3 billion) in Essar
Steel Holdings, a part of Essar Global Ltd is investing $4 billion in Buoyed
by a strong demand for stainless steel and 10-12 per cent growth on volumes,
JSL is planning to invest around Rs 10,000 crore in the next five years to
diversify into the field of energy, minerals and mines, public
infrastructure and lifestyle. Information
Technology In
one of its largest deals, banking software major i-flex has bagged a
five-year contract from National Australia Bank, estimated at $90 million.
The contract is part of a large deal awarded to Oracle, which owns a
majority stake in i-flex. Telecom
MTNL
proposes to invite sealed bids from eligible Indian ILD operators for
routing its international traffic of MTNL Delhi and Mumbai to various
destinations around the world through an open tender. State-run BSNL has
decided to bid for the outgoing international call routing tender of MTNL Insurance Insurance
companies across the board are exploring options to branch out into rural
areas and enhance their presence in the micro-insurance sector in the
country. Among the major players, LIC, ICICI Lombard, Agriculture Insurance
Corporation, IFFCO-Tokio and Tata AIG are seeking ways to consolidate their
presence in the sector. Recently, MaxLife has launched Max Vijay to tap the
micro-insurance potential. The
American International Group (AIG) set-up in Banking State
Bank of The
state-run Nabard in a serious bid to give a much needed push for solar power
projects, proposes to share 50 per cent of the cost of installation upto a
maximum of 20 demonstration solar power project units at important places.
Nabard in its recent circular has asked RRBs and co-operative banks to
replicate what the Aryavart Gramin Bank, Corporate Hindalco
Industries Ltd., an Aditya Birla Group flagship announced that the company
plans to spend Rs 19,800 crore in capacity expansion in the next three
years. Reliance
Industries has started oil production from the country’s first deep sea
oilfield (D-6 block) in the Krishna Godavari basin. As per the production
profile, the peak rate of oil production from the block will be 34,000
barrels of oil per day or 1.7 mtpa. When compared with the country’s crude
oil production of 32.4 mt, the share of RIL’s oil productions from this
block will be close to 5 per cent. The D6 block in the KG basin is being
operated by the consortium of RIL and Niko Resources of Canada. Reliance is
the operator of the block with 90 per cent stake, while Niko holds the
remaining 10 per cent. Videocon
Industries, which is part of consortium with state-run oil refiner Bharat
Petroleum Corp Ltd (BPCL), has announced the acquisition of Brazilian Oil
exploration firm EnCana Brasil Petroleo Lmitada (EBPL) for $283 million
(over Rs 1,309 crore). The 50:50 joint venture of Bharat Petro Resources Ltd
(a BPCL subsidiary) and Videocon Industries has completed the acquisition of
the entire stake of EBPL, from Canadian gas producers EnCana Corp and
Alberta Ltd. EBPL’s assets include ten deep water offshore petroleum
exploration blocks. The
state-run Rashtriya Chemicals & Fertilisers (RCF) is planning to invest
over Rs 6,000 crore ($1.3 billion) in Essar
Steel Holdings, a part of Essar Global Ltd is investing $4 billion in Buoyed
by a strong demand for stainless steel and 10-12 per cent growth on volumes,
JSL is planning to invest around Rs 10,000 crore in the next five years to
diversify into the field of energy, minerals and mines, public
infrastructure and lifestyle. Information
Technology In
one of its largest deals, banking software major i-flex has bagged a
five-year contract from National Australia Bank, estimated at $90 million.
The contract is part of a large deal awarded to Oracle, which owns a
majority stake in i-flex. Telecom
MTNL
proposes to invite sealed bids from eligible Indian ILD operators for
routing its international traffic of MTNL Delhi and Mumbai to various
destinations around the world through an open tender. State-run BSNL has
decided to bid for the outgoing international call routing tender of MTNL Insurance Insurance
companies across the board are exploring options to branch out into rural
areas and enhance their presence in the micro-insurance sector in the
country. Among the major players, LIC, ICICI Lombard, Agriculture Insurance
Corporation, IFFCO-Tokio and Tata AIG are seeking ways to consolidate their
presence in the sector. Recently, MaxLife has launched Max Vijay to tap the
micro-insurance potential. The
American International Group (AIG) set-up in BankingState
Bank of The
state-run Nabard in a serious bid to give a much needed push for solar power
projects, proposes to share 50 per cent of the cost of installation upto a
maximum of 20 demonstration solar power project units at important places.
Nabard in its recent circular has asked RRBs and co-operative banks to
replicate what the Aryavart Gramin Bank, Insurance Insurance
companies across the board are exploring options to branch out into rural
areas and enhance their presence in the micro-insurance sector in the
country. Among the major players, LIC, ICICI Lombard, Agriculture Insurance
Corporation, IFFCO-Tokio and Tata AIG are seeking ways to consolidate their
presence in the sector. Recently, MaxLife has launched Max Vijay to tap the
micro-insurance potential. The
American International Group (AIG) set-up in CorporateHindalco
Industries Ltd., an Aditya Birla Group flagship announced that the company
plans to spend Rs 19,800 crore in capacity expansion in the next three
years. Reliance
Industries has started oil production from the country’s first deep sea
oilfield (D-6 block) in the Krishna Godavari basin. As per the production
profile, the peak rate of oil production from the block will be 34,000
barrels of oil per day or 1.7 mtpa. When compared with the country’s crude
oil production of 32.4 mt, the share of RIL’s oil productions from this
block will be close to 5 per cent. The D6 block in the KG basin is being
operated by the consortium of RIL and Niko Resources of Canada. Reliance is
the operator of the block with 90 per cent stake, while Niko holds the
remaining 10 per cent. Videocon
Industries, which is part of consortium with state-run oil refiner Bharat
Petroleum Corp Ltd (BPCL), has announced the acquisition of Brazilian Oil
exploration firm EnCana Brasil Petroleo Lmitada (EBPL) for $283 million
(over Rs 1,309 crore). The 50:50 joint venture of Bharat Petro Resources Ltd
(a BPCL subsidiary) and Videocon Industries has completed the acquisition of
the entire stake of EBPL, from Canadian gas producers EnCana Corp and
Alberta Ltd. EBPL’s assets include ten deep water offshore petroleum
exploration blocks. The
state-run Rashtriya Chemicals & Fertilisers (RCF) is planning to invest
over Rs 6,000 crore ($1.3 billion) in Essar
Steel Holdings, a part of Essar Global Ltd is investing $4 billion in Buoyed
by a strong demand for stainless steel and 10-12 per cent growth on volumes,
JSL is planning to invest around Rs 10,000 crore in the next five years to
diversify into the field of energy, minerals and mines, public
infrastructure and lifestyle. Information TechnologyIn
one of its largest deals, banking software major i-flex has bagged a
five-year contract from National Australia Bank, estimated at $90 million.
The contract is part of a large deal awarded to Oracle, which owns a
majority stake in i-flex. Telecom
MTNL
proposes to invite sealed bids from eligible Indian ILD operators for
routing its international traffic of MTNL Delhi and Mumbai to various
destinations around the world through an open tender. State-run BSNL has
decided to bid for the outgoing international call routing tender of MTNL
*These statistics and the accompanying review are a product arising from the work undertaken under the joint ICICI research centre.org-EPWRF Data Base Project. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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