Govt releases revised consolidated FDI policy
The government released the revised consolidated FDI policy paper, a ready reckoner on foreign investment related regulations, in New Delhi on Thursday. The third edition of the Consolidated FDI Policy Circular will contain guidelines on domestic companies issuing shares to foreign entities for considerations other than cash with a view to check possible FDI policy violation and money laundering.
Mumbai real estate sector can witness oversupply in 2012-13
Mumbai’s residential market is predicted to witness a glut in 2012-13 owing to steady new launches at a time when sales are extremely slow, according to real estate consultancy Jones Lang LaSalle.
Want to go global? Focus on creating brand Gurgaon
The Times of India
Over the years, Gurgaon has evolved from a suburb into a modern city and has established itself as a global ITeS hub. Today, it is one of the most sought after addresses for multinational companies and corporate houses. The city offers high-quality services, loads of job opportunities, B2C brands and entertainment options. Gurgaon prides itself for having formed a large cluster of many high-tech companies and has emerged as an outsourcing centre and a place where most corporations have set shops to manage their operations in India.
To accelerate and maintain this development, the state administration should focus on the improvement of infrastructure and civic amenities. Also, the government needs to focus on appropriate planning and allow IT-enabled social and economic development, digital democracy, and use IT as an instrument to strengthen safety around the city. The administration should also focus on talent development, better infrastructure planning, collaborations with industry bodies like NASSCOM to focus on improving connectivity and creating a Brand Gurgaon campaign globally.
The Economic Times (Mumbai edition)
An apartment set in South Central Delhi, measuring approximately 3,000 sq ft was sold for Rs 6.4 crore at a capital value of Rs 21,300 (approximately). The average capital value in this location ranges from Rs 20,000-23,500 per sq ft and the apartment is well within the range.
A leading corporate leased out a 2,400-sq ft apartment for Rs 45,000. The average rental value of a high-end residential project ranges from Rs 25,000-35,000 and this property has commanded a higher value as it is a fully furnished apartment.
A fully furnished residential unit, measuring approximately 1,350 sq ft, was leased for a monthly rental of Rs 28,000 in Anna Nagar. The apartment situated a well established residential location enjoys easy access to the CBD of the city and other areas.
Source: Cushman & Wakefield
Commercial Real Estate
Bank credit to real estate grows 17.8 percent
Manju AB, Mumbai
Banks are aggressively rolling over their existing loans to commercial real estate (CRE) sector. Bank credit to CRE grew by 17.8 percent to Rs 1,07,889 crore year-on-year up to February 25, 2011 as against a decline of 0.9 percent during the same period last year, when the outstanding loans where only Rs 91,610 crore, according to the latest available figures from Reserve Bank of India. Bankers attribute the growth to large rollovers and also some fresh lines of credit to the industry.
A senior public sector banker said that many large companies are rolling over the credit and that at times, banks are forced to provide additional lines of credit so that certain projects do not suffer. “Only about 25 percent of the exposure is to large listed players, the remaining to unlisted or small players. And 60 percent of the debt of large companies are bank loans.” Santosh Roongta, president, Confederation of Real Estate Developers’ Association of India (Credai), said the rollovers are only for select builders.
Literacy rises by 9.2 percent, now 74.04 percent
India Edu News
New Delhi: India’s effective literacy rate has recorded a 9.2 percent rise to reach 74.04 percent, according to provisional data of the 2011 census released on Thursday.
Effective literacy rate in the 2001 census was 64.83, which improved to 74.04, said Registrar General of India and Census Commissioner C. Chandramauli.
Economy and Government Policy
Indian firms spawn jobs in the US
While the US was struggling with the worst recession since the Great Depression of the 1930s, Indian companies saved thousands of jobs here through mergers and acquisitions (M&As), a study of 35 companies by the Confederation of Indian Industry (CII) and India Business Forum has shown.
“US operations of India-based companies are playing a key role in generating employment in the US while also investing significantly in research and development,” the study titled Indian roots, American Soil: A look at Indian Companies in the US economy has said.
The study also addressed a popular myth in the US that India is taking away jobs through outsourcing, without giving anything back. India is the second-fastest growing investor in the US, it said.
New FDI policy spells relief for private equity industry
In what comes as relief for the private equity industry, the foreign direct investment (FDI) policy unveiled by the Department of Industrial Policy and Promotion (DIPP) on Thursday brought out a clear picture on convertible instrument prices.
DIPP said companies would now have the option of prescribing a conversion formula, instead of specifying the price of convertible instruments. Last year’s policy, which said the conversion ratio should be specified upfront, led to a delay in the flow of private equity deals, in which most of the prices of convertible instruments were decided during conversion, not upfront.
Gurgaon Rapid Metro has 2013 deadline
The Rapid Metro Rail Gurgaon Limited (RMGL), the first privately owned public transport system being constructed by Infrastructure Leasing and Financial Services, has adopted environmentally safe practices for construction and operation of the line. The Rs 1,088-crore project has the year 2013 as deadline, and is likely to bring down vehicular pollution in Gurgaon city, according to official sources.