India should match rising economies of the East: PM

Prime Minister Manmohan Singh today sought to give a push to the economic reforms saying India could not afford to lag behind the rising economies of the East. "We cannot afford to miss the bus now," he said pointing out that many nations in Asia were marching ahead and the world was experiencing a shift in the dynamics of growth from the West to the East. Addressing members of the Congress Parliamentary Party, he said India stood tall once again as a great democracy. "But the challenges before us are daunting," he said. Noting that the massive mandate came with the challenge of rising expectations of the people, he said, "They will not tolerate 'business as usual'. "They expect us to work with renewed energy. They expect the government to cater to their aspirations. They expect a more responsive government. They expect a more efficient government." The Prime Minister said to maintain a sustained growth, new investments were required. "This requires creating a social and political environment in which new investment can be made. This requires better management of our finances. This requires reform of the economy," he said. Singh said the country need to revitalise agriculture and accelerate industrial development in order to sustain growth. He said there was need to keep savings and investment rates high and become more globally competitive to face the economic challenges from across the world. The Prime Minister said if the country sustain the growth rates of the last five years, it can reduce poverty, create new employment, accelerate rural development and industrialisation, transform the lives of the people. "The period ahead could be decisive. We must grasp the nettle firmly and forge ahead," he said promising to do his best to make the government a "catalyst of change". Singh also extended a hand of friendship to members of all political parties, cutting across political spectrum and invited them to play the role of a "constructive opposition". He said the impressive mandate for UPA was made possible due to the "inspirational leadership" of Sonia Gandhi, "enterprise and ingenuity" of Rahul Gandhi and dedication and hard work of party workers. The people have rubbished the "fashionable theory of anti-incumbency", Singh said, cautioning that party leaders and workers must work harder and better to secure a wholesome mandate entirely in the party's favour.

Asian cos raise $10.5bn loans in 2009; SBI Cap lead arranger

Asian companies' fund-raising through dollar-denominated loan facilities has touched $10.5 billion so far in 2009, with SBI Capital Markets topping the arranger list for finance mobilisation. Asia (excluding Japan) US dollar-denominated facility volume has reached $10.5 billion so far this year, global deal tracking firm Dealogic said, adding that India's SBI Capital Markets has topped the lead arranger for such loans. SBI Capital Markets has topped as the lead arranger for the dollar-denominated loans with 10.8 per cent market share, followed by Singapore-based DBS Bank (8.3 per cent) and Hong Kong-based Fubon Bank (7 per cent), the report said. However, the loan volume of $10.5 billion represents a decline of 73 per cent from the $38.6 billion raised during the same period in 2008. "The largest US dollar-denominated loans from Asia (excluding Japan) so far this year is Sasan Power's $2.9 billion project financing via sole book runner SBI Capital Markets," Dealogic said. Indian firms have raised nearly $2 billion so far in 2009, down 76 per cent from $8.5 billion raised in 2008. Singapore topped the loan-raising chart, with $2 billion loan being mobilised so far in 2009, accounting for 19 per cent of the total such loan volume in Asia. Besides, China has raised $969 million, the report said. Further, the number of dollar-denominated loan facilities has also fallen 63 per cent to 56 deals so far this year, from 152 in 2008 YTD. In terms of industry mobilising the loan, the transportation sector led the ranking, followed by the telecom and finance sectors. Dollar-denominated loans represent 29 per cent of Asia's total loan volume in 2009, down 13 percentage points from the year-ago period, it said.

Demand for goods, services likely to increase in FY'10: CMIE

Domestic demand for goods and services in the country is likely to increase in FY'10 on account of a possible sharp decline in commodity prices globally and reduction in prices of branded goods, an economic think-tank has said. "We expect a sharp fall in commodity prices globally and the reduction in prices of branded goods following the excise cut in India. This will help augment demand in 2009-10," the Centre for Monitoring Indian Economy (CMIE) said in its report on the state of the economy here. Most of the demand-related problems, which the industry faced following the worsening of the global liquidity crisis in September 2008, were temporary in nature, the report said. Besides, the prompt monetary measures taken by the RBI, consequent fall in interest rates and improvement in availability of credit are expected to create a conducive environment for demand to grow, it said. "The global liquidity crisis has affected only a small section of the Indian industry, mainly the export-oriented industry," the CMIE report said, adding, "the rest have not been affected much by the global slowdown."

MTNL to invest Rs 1,725-cr in FY'10

Aiming to expand its GSM network, state-owned MTNL on Friday said that it has earmarked Rs 1,725 crore capital expenditure plan for the current fiscal. "In year 2009-10, MTNL will focus on expansion of its GSM network with induction of 3G services. Our capex plan for FY'10 is Rs 1,725 crore," MTNL Chairman and Managing Director R S P Sinha told reporters launching 3G mobiel service in the city. Sinha said that the company would also be aggressive in its broadband roll-out targetting to continue to be a leader in the market. MTNL launched its GSM mobile service in 2002. Its number of GSM connections has touched 3.44 million as on June 30, 2008. MTNL's broadband service under brandname Triband has more than six lakhs customers. It is providing IPTV services on its broadband line where subscriber can view more than 170 channels and other contnet on video-on-demand. The company also offers VoIP service over Triband where customers can make international calls in over 100 countries ar Re 1 per minute. To a question on the possible demerger of the tower business, Sinha said, "We are working on the issue. We will take it to the Board". He, however, did not disclose any further details on the issue.

MTNL, 4 other stocks to be included in Nifty Midcap-50 index

The National Stock Exchange on Friday said five companies, including telecom firm MTNL and Indian Bank, will be included in Nifty Midcap 50 Index with effect from June 5. The NSE said in a circular that MTNL, Indian Bank, Oracle Financial Services Software, Piramal Healthcare and UltraTech Cement would be included stocks in Nifty Midcap 50 Index from June 5. Besides, five others stocks -- Amtek Auto, Birla Corporation Edelweiss Capital, Maharashtra Seamless and Wockhardt would also be excluded from the index. The Futures and Options contracts for new expiry months of excluded stocks would not be made available on expiry of existing contract months, it added.

IDFC PE To Get Less Than 1% Stake in GMR Infra

IDFC Private Equity stands to get around 0.73% stake in Hyderabad-based GMR Infrastructure, the flagship company of GMR Group. The stake is part of the stock swap arrangement between IDFC's India Development Fund and GMR group. IDFC PE is getting the preferential shares in GMR Infra in lieu of its investment in Delhi International Airport Pvt Ltd (DIAL), a subsidiary of GMR Infrastructure. Other shareholders in DIAL are Frankfurt airport operator Fraport AG and Malaysia Airports Holdings Bhd. IDFC PE held a 3.9% stake in DIAL. It also paid DIAL Rs 48.75 crore for the option to subscribe more equity in the company. According to Friday's closing price of Rs 113.6, the stock IDFC PE is getting will be worth Rs 153.36 crore. In another development, GMR Infra is planning to raise Rs 5,000 crore through issue of equity shares/GDRs/ADRs/ FCCBs and any other similar securities through preferential issue to qualified institutional investors or through private placements. The board has approved the issue, and the company will seek a nod from shareholders at EGM on June 9. The funds will be used for implementation of GMR's power plant projects, which require an investment of Rs 18,000 crore. The company has net debt Rs 9,500 crore with a debt to equity ratio of 1:1.2.

Unitech aims to raise Rs 900 cr from asset sale by June

Unitech, the country’s second largest real estate developer, plans to generate Rs 900 crore from the sale of two hotels in Gurgaon and a commercial office complex in Saket, New Delhi, by the end of June, a top company official has said. “We will close the deal by the end of next month,’’ the official said, without disclosing the name of the buyers. The company plans to generate Rs 1,600 crore by selling assets, including plots and residential projects, by the end of the current fiscal. Earlier this year, the company sold its Marriott Courtyard hotel, comprising 199 rooms, in Gurgaon for Rs 231 crore to a high net worth individual based out of Delhi. The Sanjay Chandra-led company also plans to reduce its debt to Rs 4,000-Rs 5,000 crore by the second quarter of the next financial year from the sale of assets, the official said. As on March 2009, Unitech had Rs 8,900 crore worth of debt on its books. “We have charted our strategy and will repay Rs 1,000 crore debt by the end of June,” the official said. The company is also looking to sell its school and hospital plots. “We have around 20 school and hospital plots in the national capital region (NCR) and are negotiating with prospective buyers,” the official added. The company claims to have received bookings for 2,000 residential units in the past 45 days in its Gurgaon and Chennai-based mid-income housing projects. In April 2009, the company raised Rs 1,625 crore from the sale of shares to select investors, as part of a plan to repay debt and invest in affordable housing projects. “The target of generating 1,600 crore by the end of this fiscal should not be a problem. However, bringing the debt level down to Rs 4,000-5,000 crore by the second quarter of FY11 would depend on the company’s ability to market its projects aggressively,” said a Mumbai-based analyst. The promoters of the company have pledged 38 per cent shares with the institutional lenders.