[NRI News]
Latest Information, News, Updates for Non Resident Indians Living AbroadDestination Bangalore for foreigners
2007-10-24
Namma Bengaluru is the preferred Indian city for international travellers. The city's phenomenal growth in international air traffic corroborates this. Going by these trends, industry observers say that Bangalore could before long become the gateway to India.
As per the air traffic figures provided by Airports Authority of India (AAI), Bangalore reported a 40% growth in international passenger traffic in the one year between September 2006 and August 2007. That's the highest in the country and more than double the all India average growth of 16%. Hyderabad was the next highest at 19%.
Bangalore's overall growth (including domestic and international air traffic) was 38%, the highest among all the major metros and well above the country's average of 28%.
"Bangalore is the most exciting aviation market at the moment and in the days ahead the city will continue to see very high growth figures, of about 40%, as both domestic and international airlines look to make the city their hub," says Kapil Kaul, CEO (India) of Centre for Asia Pacific Aviation (CAPA).
TOI had reported earlier that the country's full service carriers Air-India, Jet Airways and Kingfisher are looking to make Bangalore as the gateway city to the US.
CAPA estimates that once the new Greenfield BIAL airport becomes operational next March, Bangalore would witness phenomenal passenger growth ranging between 40% and 50%.
While the new airport would double the capacity of passenger traffic to 12 million per annum, 20 new international carriers are expected to fly into the city from the current six to seven.
In the last eighteen months, carriers such as Singapore Airlines, Thai Airways, Malaysian Airlines, Lufthansa and Air France have increased their total seat capacity to the city. Singapore Airlines now operates 2,104 seats in a week between Bangalore and Singapore, up 576 seats from March this year.
RBI suggests more curbs on VC funds
2007-10-18
| The Reserve Bank of India (RBI) has recommended to the finance ministry a series of measures to curb investment flows from venture funds and into real estate india . |
| These measures are expected to help check part of the huge inflows of foreign capital, particularly since the last week of July, and plug loopholes in foreign investment norms. |
| Among the recommendations, RBI has suggested restrictions on investments by venture capital funds in sectors that are already developed and booming. |
| The central bank has also suggested that FDI in real estate be brought under the approval route — such investment is currently under the automatic route. |
| The RBI has suggested that there should be end-use restrictions for investments by foreign venture capital funds. It has said that venture funds by definition should be investing in high-risk ventures in which entrepreneurs are unable to access capital and not in mature sectors like real estate. |
| It has also sought a time-frame within which companies have to allot shares to foreign entities after receiving advance payments. This is designed to curb a practice by Indian companies of using advance payments from foreign sources as loans and then returning the money. |
| Such transactions amount to overseas borrowings without restrictions. Overseas borrowings are currently locked in for a minimum of three years and the interest paid is capped at 150 basis points above the benchmark London Interbank Offered Rate (Libor) for borrowings of three years and above; and 250 basis points above Libor for borrowings of five years and more. |
| The RBI has also suggested a clear policy for investments by non-resident Indians (NRIs) in commercial real estate in India. |
| At present, NRIs are permitted to invest in two residential flats/apartments in India but there is no policy on their investment in commercial real estate. |
| Surging foreign investments have seen the country’s foreign exchange reserves swell over $50 billion to $251.33 billion in the first six months of 2007-08. |
| The purchase of foreign currency by the RBI to check rupee appreciation, which impacts exporter earnings, is leading to an infusion of rupee liquidity and has a high potential to fuel inflation. |
| The RBI has already taken several steps to absorb the excess liquidity, raising the cash reserve ratio (CRR) — the proportion of deposits banks must keep with the central bank — one percentage point this financial year. |
It also recently raised the ceiling on government bond issues under its market stabilisation scheme (MSS) to Rs 2,00,000 crore from Rs 1,10,000 crore at the beginning of the year. Source:business-standard.com |
NRI plan to invest in Haryana industries
2007-10-12
US-based Spectrum International LLC, a company owned by an NRI , has announced plans to invest Rs. 2,000 crore in Haryana in the food preservation and processing industries.An official spokesperson of the Haryana Government said here on Wednesday that this was announced at a reception organised in honour of visiting Haryana Chief Minister Bhupinder Singh Hooda at Royal Albert Palace, New Jersey, in the United States. The reception was organised by the people of Haryana and prominent local associations and attended by over 200 NRIs. Mr. Hooda announced that the State Government would appoint a nodal officer to deal and coordinate with the NRIs. While welcoming their investment in Haryana, Mr. Hooda assured them that they would not face any difficulties and find a congenial atmosphere in the State.
Mr. Hooda, who is leading a high-powered delegation of the Haryana Government and the CII, reached New York on Tuesday to project Haryana as the most preferred investment destination. The other members include Ajay Singh Yadav, Irrigation Minister, Phool Chand Mullana, Deputy Chairman, Twenty Point Programme, and Shadi Lal Batra, Chairman, Haryana State Agricultural Marketing Board, besides senior officers of the Haryana Government. Leading industrialists of the State are also part of the delegation.
Govt clears 13 FDI proposals
2007-10-05
The government has cleared 13 foreign direct investment (FDI) proposals worth Rs 393.36 crore, including Maruti Udyog’s proposed joint venture (JV) with Japanese Futaba Industrial and Rural Electrification Corp’s proposed public offer.
MUL’s proposal to set JV with Futaba Industrial has been approved with foreign equity of up to 51% amounting to Rs 45.9 crore, an official statement said on Thursday.
International newswire Bloomberg’s proposal to down-link its TV programmes into India and to increase paid up capital involving infusion of Rs 85 lakh was cleared by the Foreign Investment Promotion Board (FIPB).
Other important proposals include induction of foreign equity of Rs 232.58 crore (72.5%) by Secunderabad-based Aster Infrastructure offering telecom services and Hyderabad-based KVK Energy’s proposal to bring in 70% foreign equity of Rs 97 crore to invest in downstream operating companies.
The FIPB cleared a proposal by a BPO arm of Citigroup to form a subsidiary to make investment in SEZ units.
Japan’s Metal One Corp’s proposal to infuse foreign equity of up to 5% in a JV company with Tata Metalliks (51%) and Kubota, Japan (44%) engaged in the manufacture and sale of ductile iron pipes, fittings and accessories were approved by the board.
The board also cleared South Asia Breweries’ proposal to pick up 60% stake in Parag Breweries. The FIPB approved Rural Electrification Corp’s (REC) proposal for disinvestment of 10% of the shareholding by way of transfer and also to make public issue of fresh equity capital of 10%.
Generally, companies do not need clearance from the FIPB for initial public offers. However, the Reserve Bank had asked REC, a non-banking finance company, to take FIPB’s nod for the portion which would come from non-residents. The board rejected a proposal of Ford Automotive Finance Company India. US-based financial services firm Bear Stearns had proposed for extension of timelines.
NRIs backing off from real estate deals
2007-09-28
When Shivram Iyer returned from the US, he was shocked to find that his money couldn’t buy him the flat he wanted. Reason: not only had property prices shot up, but every dollar he had come back with was giving him less rupees.
“I was planning to invest in some property in Navi Mumbai but I realised that I did not have enough money. I have now invested my money in shares,” says Iyer.
Like Iyer (name changed), many recently-returned NRIs are finding the combined effect of high property prices and declining dollar values tough to stomach.
They are, therefore, putting off purchase decisions. And this has begun to affect prices in areas traditionally being marketed to NRIs.
But Manju Yagnik, vice-chairperson for the Nahar Group, feels the rising rupee is not really a deterrent for NRIs. Yagnik said they know the real estate sector in the country is growing. In some cases, prices have gone up by over 100 per cent in just one year whereas in the current year the rupee has risen by about 10.5 per cent against the dollar.
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