Mumbai, December 27
The RBI today lifted curbs imposed on purchase of Axis Bank shares by foreign institutional investors (FIIs), post government approval to increase foreign shareholding in the domestic lender.

"...consequent upon approval from Government of India for increase in foreign investment from 49% to 62% of the paid-up equity share capital of Axis Bank, the aggregate share holdings through FII/NRI/PIO/FDI in Axis Bank Ltd have gone below the prescribed threshold caution limit stipulated under the extant FDI Policy," RBI said.

Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect, RBI said.

The government yesterday had approved increasing foreign shareholding in Axis Bank to 62% that would bring in an inflow of about Rs 7,250 crore.

After the hike in stake by foreign investors the bank will become foreign-owned, thus all investment in the future in bank's subsidiaries will be governed under foreign direct investment (FDI) policy.

The bank has seven subsidiaries — Axis Capitals, Axis Finance Pvt Ltd, Axis Private Equity Ltd, Axis Trustee Services Ltd, Axis Asset Management Company, Axis Mutual Fund Trustee Ltd and Axis UK Ltd.

Life Insurance Corporation, General Insurance Corporation, New India Assurance, National Insurance Company and Administrator of Specialised Undertaking of the Unit Trust of India are the promoters of Axis Bank.

Axis Bank shares ended at Rs 1,290.55 apiece on BSE today, 0.59% lower than previous close. — PTI

New Delhi, December 27
Some of the private power producing companies have heaved a sigh of relief as the government yesterday approved coal supplies by Coal India Ltd to nine power plants built on tapering fuel linkages.

The projects had been stranded as a result of the Environment Ministry’s No-Go policy of 2010 that barred mining in critically polluted areas.

“The CCEA has approved supply of coal to nine of such 24 units in which the development of coal block was delayed due to the ‘Go-No-Go’ Policy of the Ministry of Environment and Forests on FSA basis subject to review,” the Coal Ministry said, without giving further details.

"It has been proposed to provide additional coal supplies to these nine units for a period of three years or for the period that they were affected by the said policy or till such time the production actually starts from the blocks, whichever is earlier,” said an official release.

The release also said requests were received from developers and it was recommended by the Power Ministry that some of the projects with tapering linkages could not develop their linked coal blocks as per the prescribed schedule for reasons beyond their control and therefore, coal supplies for such plants should continue.

Some of the power companies that would benefit from the decision include Adani, Vedanta group, GMR and Hyderabad-based KSK Power Ventures.

Tapering linkages are an interim supply arrangement made for power projects where production from linked captive coal blocks is delayed. The Cabinet had earlier this year approved coal supply for 78,000 MW capacity projects, including 24 plants based on tapering linkages.

Coal Ministry officials said additional coal will also be supplied to these 9 units for a period of three years through September 2016 or for a period equal to the time for which they were affected by the policy.

Under the revised FSAs for 78,000 MW capacity, coal supplies were pegged at 65% for the first two years followed by 67% and 75% in the next two years by March 2017.

To meet the balance obligations, CIL will import coal and supply to companies. The government had issued a Presidential directive to CIL forcing it to sign FSAs. The miner has already signed 157 pacts.

New Delhi, December 27
PowerGrid Corporation of India has received shareholder approval to increase the limit of holdings by foreign institutional investors to 30% from 24% currently.

Foreign Institutional Investors (FIIs) can acquire and hold, on their own account and on behalf of each of their Sebi-approved sub-accounts, shares of the company up to an aggregate limit of 30% of the paid up capital, the state-owned company said in a filing to the BSE today.

Shareholders also approved a proposal to increase the company's borrowing limit to Rs 1,30,000 crore from the current cap of Rs 1,00,000 crore.

Both proposals were cleared through postal ballots. The plans had been approved by PowerGrid's board of directors at a meeting on October 23. — PTI

New Delhi, December 27
While investments in the real estate sector were 6% lower in 2013, the vertical is expected to have a bumpy ride at least till the first half of next year.

Outstanding investments in the country's real estate sector were 6% lower at Rs 14.51 lakh crore in September 2013 as against the same month previous year, according to a study by industry body Assocham.

The study also revealed there is likely to be no respite for the realty sector at least till the first half of 2014.

As per the study, the real estate sector suffered grave turbulence in 2013 due to a plethora of reasons like rampant economic slowdown both globally and domestically, liquidity crunch, unstable currency, high input costs, labour shortage, high interest rates and growing inflation.

On the outlook for 2014, the report said there will be no respite for India's real estate sector at least during the first half of the calendar year 2014.

"The situation on real estate front is not likely to improve much owing to an uncertain political scenario at least during the first six months next year due to forthcoming general elections and poor investor, end-user confidence due to sluggish economic growth coupled with continued high property prices," Assocham said, adding these reflected views of 60% of respondents.

CBRE in a recent report said the larger global and domestic economic downturn has subdued India’s real estate market, resulting in a sales slowdown as well as pressurised capital values across leading cities.

Anshuman Magazine, chairman & managing director, CBRE South Asia, said, “High inflation, tight monetary policy, and weak industrial growth are some of the key factors that have slowed down economic development and potentially put foreign investor focus at risk of shifting to other emerging markets. Apart from a sales reduction in the commercial office and retail real estate spaces, buyer sentiment in housing markets too have largely remained cautious on the back of relatively high price points and sticky borrowing costs. As a result, investment has slowed across segments, resulting in stagnant construction activity”.

The NCR Chapter of Confederation of Real Estate Developers Association of India, CREDAI-NCR, has mooted a proposal to intensify its efforts for a single-window clearance for projects.

Anil Kumar Sharma, president, CREDAI-NCR & CMD, Amrapali Group and the members of the body were of the view that unnecessary and sometimes motivated delays in clearances of projects and subsequently in issuing the NOC for possession purposes are not only affecting the buyers but also negatively impacting the developers.

New Delhi, December 27
IT industry veteran Vineet Nayar today stepped down from the Board of country's fourth largest software services firm, HCL Technologies, to devote more time to his foundation.

Nayar, who has been a Director of the company since 2008, will continue to engage with HCL Technologies and HCL Corporation as a senior adviser, HCL Technologies said.

He will advise HCL Corporation on key strategic issues and work with the Board of HCL Technologies on initiatives like driving a high performance culture among senior managers and new strategies for growth.

"Vineet has been a friend and a colleague for over two decades now. His bold ideas and passion for the organisation, has inspired many others to think and dream big. "His contribution to HCL and the Board has been a benchmark for others to follow and we all are very proud of him," HCL Technologies chief Shiv Nadar said. — PTI

BRIEFLY

MCX, FTIL shares fall up to 4.3%
Mumbai: Trimming initial losses, shares of Multi Commodity Exchange and Financial Technologies India Ltd on Friday settled as much as 4.4% lower after the Board of MCX asked promoter FTIL to reduce its stake to 2% in accordance with the regulator's order. After plunging 8.8% to Rs 431 on the BSE in intra-day trade, the MCX scrip finally ended at Rs 451.95, down 4.37%. FTIL settled with a loss of 1.01% at Rs 171.30. — PTI

Intex launches Aqua i4+ smartphone for Rs 7,600
New Delhi: Intex Technologies on Friday launched 'Aqua i4+' in its range of smartphones, priced at Rs 7,600. The 3G-enabled handset features a five-inch display and is powered by a 1.2 GHz dual core processor. The dual-SIM device has a 512 MB RAM, 4 GB internal memory and 2,000 mAh battery. The Android 4.2.2 Jelly Bean phone also has a 8 megapixel rear camera and a 1.3 MP front camera. — PTI

Hershey to launch 'Jolly Rancher' brand in India
Kochi: Aiming to tap the growing Indian confectionery market, Hershey India, a wholly owned subsidiary of The Hershey Company, will bring the iconic North American sweets brand 'Jolly Rancher' to the country. India is the first international market for the Jolly Rancher brand outside of North America in the brand's 65-year history. — PTI

Mukul is Indian Oil Officers’ Association president
New Delhi: Mukul Kumar has been elected all India president of Indian Oil Officers’ Association (IOOA) for the third consecutive term in the recently concluded election of the office-bearers for the period 2013-16. He along with his new team assumed office after a General Body Meeting held at Mumbai. IOOA is registered under the Trade Unions Act- 1926 and represents 15,000 strong officers community of Indian Oil. — TNS