India To Get $1.5 B Loan From World Bank : In view of the anticipated weakness in private capital flows, India has been obliged to go back to its old benefactor, the World Bank. It expects to get $1.5 billion out of the proposed additional $3 billion loan assistance from the World Bank by March 2009. The other half will come by June next year, the outgoing Finance Minister, Mr P. Chidambaram, said here today.
DB Hospitality To Invest $1B In Hotel Projects : DB Hospitality, part of the Mumbai-based real estate developer DB Group, would be adding 1,000 rooms by 2011 through its three ‘under construction’ properties in Goa, Pune and Mumbai. DB Hospitality would be investing $1 billion over the next four years for its hotel projects. The company is planning projects in Mumbai, Pune, Delhi, Gurgaon, Noida, Chennai, Kolkata, Bangalore and Hyderabad
Foreign Partners Eyeing BHEL-NPCIL Joint Venture : Alstom of France, Skoda JS of the Czech Republic, OJSC Turboatom of Ukraine and Siemens of Germany are in the fray for partnering with the proposed BHEL-NPCIL joint venture for the supply of turbine-generator (TG) sets. Bharat Heavy Electricals Ltd (BHEL) and NPCIL (Nuclear Power Corporation of India Ltd) are currently in the process of forming a joint venture firm to carry out the engineering, procurement and construction of conventional islands for the new generation of nuclear power plants being planned for the future.
Automobile Sales In November See Record Drop: Car, two-wheeler and multi-utility vehicle manufacturers felt the impact of a slowing economy with domestic sales registering one of its steepest falls this November. Leading the pack in passenger cars is Maruti Suzuki which saw sales crash almost 27 per cent, its worst monthly performance in almost 24 months. The company has a 40 per cent market share. Sales in the A2 or the hatchback segment — which accounts for almost three-fourths of Maruti’s sales and includes the WagonR, Zen and Swift — declined more than 26 per cent. This fall occurred despite the introduction of the A Star mid-November. The drop was a sharper 60 per cent in the A1 segment (Maruti 800) to only 2,307 cars.
India Will See Slowdown In Growth : Chidambaram
Home minister P Chidambaram today said, “India will see a slowdown in growth”. FY09 GDP growth rate will be between 7 and 8 per cent, he added. He said inflation to moderate, growth will be satisfactory. He also stressed on the need for close co-ordination between Finance Minister and the Reserve Bank of India. The new union home minister P Chidambaram today defended the Prime Minister Manmohan Singh’s decision to keep the finance portfolio with himself saying that “Prime Minister would be the best person to guide economy in this difficult year.”
World Economic Growth Expected At 1 percent : World economic growth will slow to 1 per cent in 2009 from 2.5 per cent this year as the financial crisis bites and the global economy may even contract if stimulus packages prove too little too late,a UN report said. The report on World Economic Situation and Prospects 2009, an advance copy of which was issued at a development conference in Doha on Monday, urged coordinated international stimulus packages to limit the impact of a downturn in Western economies on poorer countries.
Religare Enterprises Gets SEBI Nod For LOTUS Acquisition: The Securities and Exchange Board of India (SEBI) has approved the plea of Religare Enterprises Ltd to acquire the asset management joint venture, Lotus India AMC. Indian financial services firm announced that its wholly owned unit Religare Securities Ltd has been allowed to take hold of the entire stake of Lotus India AMC. Under the new acquisition, Lotus India AMC will be renamed as Religare AMC. A joint venture between Temasek Holdings unit and London-based Sabre Capital Worldwide, Lotus India AMC has more than Rs 50 billion rupees of funds under management
India’s Exports Fell 12 percent In October : India’s exports fell an annual 12.1 per cent in October to $12.82 billion, the first year on year fall in nearly three years, as slowing output at home and tumbling economies in key overseas markets slashed demand. The trade deficit narrowed slightly to $10.54 billion in October compared with $10.63 billion in September, data showed on Monday. Imports were up an annual 10.6 per cent at $23.36 billion in October, while oil imports rose 22 per cent during the month from a year earlier to $7.96 billion.
Infosys New Saving Mantra, Save $10 Per Day Per Employee : Infosys Technologies is now asking its employees to cut cost by at least $10 individually. Infy CEO Kris Gopalakrishnan, in an internal mail circulated to all the employees, says: “If each one of us is able to identify a savings of even $10–not just per day or per month–but $10 as a one-time effort from each one of us, that would translate to a saving of close to $1,000,000—which is a substantial amount.”
Rupee Hits A Record Low, RBI Averts Further Fall: The rupee hit a record low on Tuesday afternoon as a slide in the local share market raised concerns of more foreign fund outflows, but the central bank likely stepped in helping halt the fall. In the afternoon, the partially convertible rupee was at 50.54/55 per dollar, off a record low of 50.65, and weaker than Monday’s close of 50.30/32.Dealers said the Reserve Bank was likely selling dollars around 50.60 levels through state-run banks to halt a further slide in the rupee.Losses in the domestic equity market were also weighing on the the currency. India’s main share index was more than 2 percent lower, caught in a global sell-off as the economic outlook deteriorated.Foreign funds have so far sold a net $13.7 billion worth of Indian shares in 2008, after buying a record $17.4 billion last year.