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Projects in Punjab facing delays, cost overruns: Study
High premium on dollar exchange hits common man
RBI eases norms for loans to exporters
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Flipkart to acquire Myntra stake
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Projects in Punjab facing delays, cost overruns: Study
New Delhi, May 21 Many projects have not taken off and as many as 70% of investment projects in Punjab remained non-starters as of financial year 2013-14. According to the report, the main reasons for delays in projects and cost escalation is land acquisition delays, fund constraints, delay in environmental and other clearances along with law and order problems. These factors have resulted in serious cost overruns to the tune of a whopping Rs 57,000 crore, about 47% of the actual cost of over Rs 1.21 lakh crore of investment projects attracted by Punjab from various public and private sources thereby affecting their implementation in the state, the study said. Even the growth of new investments have significantly declined and slipped to a negative average growth rate of over 43% during the course of past three years, further noted the state-specific study titled “Impact of delay in investment implementation in Punjab”, conducted by Assocham. “New investments in Punjab had reached their peak of over Rs 33,000 crore in 2008-09 and the figure has now fallen to a meagre sum of Rs 4,600 crore”, it said. Sector-wise, water-related investment projects have seen massive escalation in cost as the per cent of actual cost of project to the tune of about 98% followed by airports (82%), railways (70%), construction (68.5%), canals (52%), roads (46%), urban development (44%), manufacturing (38%), power and electricity (32%), processing (23%) and others. “Punjab also paints a grim picture in terms of implementation of investment projects as about 70% of projects remained a non-starter as of 2013-14 as against about 58% across India,” said DS Rawat, secretary general, Assocham. Rawat said several departments of the state government play a crucial role in the implementation of investment projects as land acquisition, shifting of utilities and others are taken at the state government’s level, besides geographical features of the state may also affect the project time and costs. |
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High premium on dollar exchange hits common man
Chandigarh, May 21 Ever since the new government, enjoying a complete majority, has been elected, the rupee has been appreciating. Measured against the dollar, it has been gaining ground, valued at Rs 58.74 to the dollar (as per RBI’s reference rate) today, as compared to 60.20 at the beginning of the month and Rs 62.70 at the end of January. The markets have been rejoicing, but the common man is bereft to any benefit. Across the region, inquiries made by The Tribune to various certified money changers revealed that none of them are willing to sell dollars for less than Rs 60.20. In case a person wants to buy more than 2000 dollars, the money changers offer a rate of Rs 60 to a dollar. On the other hand, the best rate they offer to buy dollars is Rs 58.80 to Rs 59 a dollar. When asked about the reasons for such a premium being charged, the money changers say there was a shortage of dollars. Economists, however, debunk these claims and maintain that because most of these money changers had stocked dollars when the rupee was losing against the dollar, they are unwilling to sell them at today’s lower rates. The RBI had taken steps recently to pump in more dollars in the system. Naveen Mathur, associate director, commodities and currencies, Angel Broking, said in the long term, based on the affirmative action on improving the economy by the new government, the rupee could see further correction. “On long-term basis, within six months, we expect the rupee could reach Rs 56 to a dollar,” he said. This is good news for the importers. The exporters are not much affected as they hedge the currency when they get orders. AK Kohli, senior VP, Punjab Chamber of Small Exporters, said the rupee appreciation also decreases shipment costs. Because of currency hedging against volatility, most exporters are saved of losses. |
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RBI eases norms for loans to exporters
Mumbai, May 21 “In view of requests received from exporters, it has been decided to permit banks to allow exporters having a minimum of three years’ satisfactory track record to receive long-term export advance up to a maximum tenor of 10 years to be utilised for execution of long-term supply contracts for export of goods,” the notification issued by RBI said. As of now, banks are allowed to lend to exporters for tenures of up to one year only. The RBI notification said interest rates on the loans be limited to 200 basis points above the London interbank offered rate (Libor). Exporters seeking loans of $100 million or above are required to report the transaction immediately to the RBI. Exporters will also have irrevocable supply orders in place in order to access the loans. Banks will be required to scrutinise the contract with the overseas party or buyer. The contract must clearly specify the nature, amount and delivery timelines of products over the years and the penalty in case of non-performance or contract cancellation, the Reserve Bank of India said. Such export advances can’t be used to liquidate rupee loans, which are classified as non-performing assets as per the Reserve Bank norms, according to the notification. |
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Surface 3 may replace laptops, says Microsoft
Houston, May 21 The launch of the 12-inch Surface Pro 3 in New York city yesterday comes less than a year after Microsoft brought out the Surface Pro 2, which received positive reviews for being a powerful PC inside a tablet form factor but has struggled to gain traction in the market. The company announced the launch at its “small” Surface event, but didn’t launch the Surface Mini rumoured to debut at the presentation. “This is the tablet that can replace your laptop,” said Panos Panay, corporate VP of Microsoft. Microsoft has its eyes set on getting business professionals on board with its new design. “Surface Pro 3 is a tablet and a laptop: multiple processor, RAM and storage options intersect with a sleek design that, with a simple snap or click, transform the device from a perfectly balanced tablet to a full-functioning laptop and back again — all in a beautiful package that is 30% thinner than an 11-inch MacBook Air,” a press statement on the Microsoft website said. The pre-sale starts today with an opening price of $799 for an Intel Core i3 version. Devices with i5 and i7 processors will also be available. “We designed it in thinness around every corner. This is faster than the Surface Pro 2 you’ve loved to date and is much thinner.” The Surface Pro 3 has a 12-inch display, up from 10.6 inches, which Microsoft hopes will increase users’ productivity. It weighs 1.76 pounds without a keyboard and measures in at just 9.1 mm, making it the “thinnest Intel Core product ever made,” according to Microsoft.
— PTI |
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Flipkart to acquire Myntra stake
New Delhi, May 21 The figure could not be independently verified. The transaction is likely to be announced tomorrow. Myntra has sent invitations to the media for a conference in Bangalore tomorrow to announce a “strategic development” but did not divulge further details. The stake acquisition has been in the works for a few months now, with the final details being worked out in the past few weeks. “We will be unable to comment on market speculation at this stage,” a Flipkart spokesperson said.
— PTI |
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