INDIA Q2 economic growth GOOD...

Q2 economic growth at 4.8% signals recovery

K. R. SRIVATS

Farm output, power boost performance; mining, manufacturing still lag

Farm output, power boost performance; mining, manufacturing still lag
NEW DELHI, NOV. 29:  
Sending the first signs of a recovery, the economy grew at a higher-than-expected 4.8 per cent in the second quarter, mainly on the back of a robust 4.6 per cent increase in farm output and a good showing by the electricity (7.7 per cent), construction (4.3 per cent) and financial services (10 per cent) sectors.
The agriculture sector had recorded modest 1.7 per cent growth in the same quarter of the last fiscal year. However, a poor showing by the manufacturing and mining sectors kept the GDP growth under 5 per cent for the fourth straight quarter. Manufacturing grew just 1 per cent, while mining output shrank 0.4 per cent, according to official data released on Friday. The latest GDP growth is higher than the 4.4 per cent rise recorded in the first quarter this fiscal, but much lower than the 5.2 per cent recorded in July-September last fiscal. For the six-months ended September 30, the economy grew 4.6 per cent, lower than 5.3 per cent growth in same period last fiscal.
The economy has been hit hard by dipping demand, indicated by low private final consumption expenditure, which grew 2.16 per cent this quarter against 2.54 per cent in the corresponding previous period. High interest rates are blamed for the low demand.With persistent inflation, the RBI has not been able to lower key rates. This may, it is feared, stay its hand yet again on December 18 despite the continuing sluggishness in the economy.Economic Affairs Secretary Arvind Mayaram expressed happiness over the second-quarter performance. “There were many people who were predicting that growth will be less (than in the first quarter). I believe in the third and fourth quarters you will see a pick up,” said Mayaram. He expects overall economic growth in the current fiscal to be 5 per cent-plus.
Planning Commission Deputy Chairman Montek Singh Ahluwalia also expressed confidence that growth would pick up in the second half. The economy is now in much better shape, he noted.
But India Inc is worried. Chandrajit Banerjee, Director-General, Confederation of Indian Industry, said GDP growth of below 5 per cent for the fourth consecutive quarter is worrisome. Assocham President Rana Kapoor called for immediate steps to boost the manufacturing and mining sectors.
srivats.kr@thehindu.co.in
(This article was published on November 29, 2013)

http://www.thehindubusinessline.com/economy/q2-economic-growth-at-48-signals-recovery/article5405161.ece?homepage=true

Rs 20,000 crore National Optical Fibre Network project...!!! HUGE OPPORTUNITY!!!!

Just 60 gram panchayats covered under broadband project so far
By PTI | 28 Nov, 2013, 04.19PM IST
NEW DELHI: The government has provided broadband connectivity to only 60 gram panchayats till now under the Rs 20,000 crore NOFN project, which has to cover 2.5 lakh panchayats by September 2015. "It is only 60 gram panchayats out of 2.5 lakh gram panchayats, the percentage is minuscule," Universal Service Obligation Fund (USOF) Administrator N Ravi Shankar said when asked as to how many panchayats have been provided with broadband connectivity .. Read more at:
http://economictimes.indiatimes.com/articleshow/26528512.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

GREEN ENERGY..HOT MONEY..BRIGHT FUTURE!!!

Malini Bhupta  |  Mumbai  

November 28, 2013 Last Updated at 00:45 IST

Foreign investors queue up for road & clean energy assets
This is because not only are valuations attractive, new opportunities have also arisen in sectors such as renewable energyIndia’s infrastructure sector may be burdened by high debt and slowing growth, but this isn’t dampening its attraction for foreign investors. This is because not only are valuations attractive, new opportunities have also arisen in sectors such as renewable energy.Foreign investors, especially long-only funds and large renewable players, are either snapping up assets in this segment or setting up projects in India.Six months ago, this wasn’t the case; promoters weren’t willing to consider an outright sale of their road assets. But with interest costs biting and the rate cycle showing no sign of a turn, infrastructure developers are looking to unlock capital by divesting some of their projects to reduce stress.

FUNDS FLOW

Government of Singapore Investment invested Rs 1,000 crin Greenko, a renewable energy company in Mar 2013 GE Energy Financial Services invested Rs 257 cr in Gati Infrastructure's hydropower plant in Sikkim in July 2013 In October 2013, SBI Macquarie picked 34% stake for Rs 700 cr in a holding company of Ashoka Buildcon, which owns seven road projects SBI Macquarie Infra Fund in February this year acquired 74%in GMR's Farukhnagar-Jadcherla highway in Andhra Pradesh forRs 206 cr Of the 80 operational road projects constructed as public-private partnerships, more than half are looking at raising capital through a part or majority stake sale The government is looking at attracting Rs 90,000 cr in investment through four solar ultra mega power projects

GMR Infra and JP Associates have conveyed to investors they are considering selling road and power assets to unlock capital and lower their respective debts. GMR has already signed two road deals, while JP Power Ventures is in talks with a couple of sovereign funds to sell controlling stakes in its hydro-electric power plants. Of the 80 operational road projects constructed under the public-private partnership (PPP) mode, more than half are considering raising capital through a part or majority stake sale.In the renewable energy space, large foreign investors, be it sovereign funds, pension funds or large companies, are looking at acquiring operating assets that are relatively stress-free, or setting up new projects. Investment bankers say deals to the tune of $2 billion are in the works and will be announced soon.Gaurav Gupta, managing director of Macquarie Capital, an investment bank, says: “As more assets are developed and operational, there will be greater interest from long-only funds. We see greater interest today than a few months ago. The interest is across sectors — renewables, transportation, etc. I think we will see deals worth a couple of billion in the next 12 months.”In the last six months, six large road deals, together worth about Rs 6,000 crore, have been recorded and many more are in the works. Currently, operating road assets are the least stressed, which is why a lot of deals have already happened in this space. SBI Macquarie Infrastructure Fund has invested $300 million in road assets through the last nine months, which makes it one of the largest investors in the sector.There is heightened interest in the roads and renewables sector from foreign investors. A couple of months ago, Government of Singapore Investment Corporation invested Rs 1,000 crore in Greenko, a Hyderabad-based renewable energy company.The company owns and manages renewable energy assets across several Indian states. SunEdison, an American company that owns solar power assets in India, is looking at joint venture partners to set up solar plants in the country. In July this year, GE Energy Financial Services invested Rs 257 crore in Gati Infrastructure’s hydro power plant in Sikkim.Raja Lahiri, partner for transaction advisory services at Grant Thornton, says, “Clean energy is one of the hottest sectors globally and foreign investors are looking at India because the government is in the process of signing a lot of power purchase agreements in the sector.”As the government eyes power purchase agreements and considers giving sops to investors, a spate of deals is in the pipeline. The government plans to draw Rs 90,000 crore in investments through four solar ultra mega power projects. Investment bankers say solar power companies such as First Solar and SunEdison are considering setting up solar power plants in India.Rahul Gupta, director at Rays Power Experts, which operates and develops solar power plants for its customers, says, “We are in talks with some foreign investors and some investment opportunities are expected to open up in the coming months, as the government is expected to sign power purchase agreements in the renewable energy sector. Foreign investors are interested in renewables because the IRR (internal rate of return) works out to 14-15 per cent and even if they hedge for currency risks, the returns are lucrative.”Also, there are no fuel linkage woes in the renewables space. And, the government is fast-tracking clearances before inviting companies to sign power purchase agreements.

http://www.business-standard.com/article/companies/foreign-investors-queue-up-to-acquire-road-clean-energy-assets-113112700804_1.html

OPTICAL FIBRE ROLL OUT....NEXT BIG OPPORTUNITY!!!!

BSNL, PowerGrid & RailTel to get Rs 2,700 crore for optic fibre rollout
By Kalyan Parbat, ET Bureau | 25 Nov, 2013, 04.07AM IST

KOLKATA: The telecom department will shortly move a Cabinet note for payout of Rs 2,700 crore as administrative charges to Bharat Sanchar Nigam, PowerGrid and RailTel, who have been mandated to handle cable laying and trenching responsibilites of the national broadband venture in the 70:15:15 ratio. 
Cable laying and trenching is the most expensive piece of the communications ministry's ambitious Rs 21,000-crore national broadband rollout, popularly known as the national optic fibre ne .. 
Read more at:
http://economictimes.indiatimes.com/articleshow/26334459.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

India emerges most attractive investment destination..!!!!

India emerges most attractive investment destination: Ernst & YoungPTI | New Delhi | Updated: Nov 24 2013, 14:57 ISTSUMMARYIndia as most attractive investment destination followed by Brazil and China.With relaxation in FDI norms to boost investor sentiments, India has emerged as the most attractive investment destination surpassing neighbouring China and the US, says a report.The global survey of leading consultancy firm EY has ranked India as the most attractive investment destination followed by Brazil and China at second and third positions, respectively.While Canada has cornered fourth spot, the US is placed at fifth position. Other nations in the top ten are South Africa (6), Vietnam (7), Myanmar (8), Mexico (9) and Indonesia (10)."With sharp currency depreciation and opening up of FDI in various sectors, India has become an attractive destination for foreign investors," EY, earlier known as Ernst & Young, said.In August, the government announced relaxation in Foreign Direct Investment (FDI) norms in many sectors, including multi-brand retail and telecom.According to the global consultancy firm, due to the present macro-economic pressures and heavy debt pile, several Indian companies are looking to divest non-core businesses."This has created a large opportunity for foreign players vying for a greater role in the Indian market," it added.When it comes to investments, the US, France and Japan have emerged as "top three investors likely to invest in India".The findings are a part of EY's latest Capital Confidence Barometer report, based on a survey of about 1,600 senior executives from large companies across 70 countries. It aims to gauge corporate confidence in the economic outlook and understand boardroom priorities, among others.With respect to India, sectors with the highest level of anticipated deal-making include automotive, technology, life sciences and consumer products.About 38 per cent of the respondents felt that M&A volumes in India are expected to improve over the next 12 months."Indian companies also reflect a concerted focus on job creation as well as optimising operations to deliver cost reduction," the report said.Amit Khandelwal, who is National Leader & Partner (Transaction Advisory Services) at EY, said the investor outlook for India remains positive, despite the challenges the country's economy has faced in the recent past.On the other hand, the report said that Indian corporate entities have started looking at developed markets for making acquisitions."After two years, European countries (UK and Germany) have made a comeback on the potential investment destinations list for Indian companies," it added.

http://www.financialexpress.com/news/india-emerges-most-attractive-investment-destination-ernst-amp-young/1198981/2