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Issue No. 13 09 December 2009

Highlights

· India-Canada reach nuclear cooperation pact

· West should break Doha deadlock: India

· India may 'wind down' fiscal stimulus next year, says PM

· Cabinet approves National Solar Mission

· Government begins process for road map on divestment

· India to achieve 9-10% growth towards start of 12th Plan

· Indian economy grows 7.9 per cent during July-September 2009

· Industrial production up 9 per cent in September

· India's global trade engagement rises to 54% of its GDP

· Telcos surpass 500 million user base target a year in advance

· ‘Incredible India’ Wins World Travel Award

· Foreign exchange earning from tourism rises 3%

· Road projects worth $20 bn to be awarded in next 6 months

· India may get $1 bn IT outsourcing contracts

· Healthcare to become $77-bn sector in India by 2012: Report

· ISRO earns Rs.1 bn by launching foreign satellites

· 17 FDI proposals worth Rs 1,158 crore approved

· 24% fall in indirect tax revenues worries Govt

· India's annual food inflation rises to 14.55 pc

· India, China lead global economic recovery: OECD

· India –EU sign civil nuclear pact

· Toronto to host IIFA Awards in 2011

India-Canada reach nuclear cooperation pact

On 28 November, after a meeting between Prime Minister Dr. Manmohan Singh and Canadian PM Mr. Stephen Harper on the sidelines of the Commonwealth Summit in Port of Spain, Trinidad and Tobago, it was announced that negotiations on a nuclear cooperation agreement between India and Canada have concluded and that both the countries will now take necessary steps to prepare the agreement for final signature and implementation.

PM Dr. Singh noted “Among the things that had been hanging for some time was the desire of both our countries to negotiate an international civil nuclear power agreement. India’s needs for nuclear energy are enormous, just as we need a lot more energy to make a success of our developing presence“. “It speaks extremely well of the development of our relations…. We have had a large community of Indian origin in Canada, so we have all these bonds of friendship, which Prime Minister Stephen Harper and I are committed to further develop in every possible way”, he added.

“This agreement is a testimony to the undeniable potential Canada and India can offer each other and the world. Increased collaboration with India’s civilian nuclear energy market will allow Canadian companies to benefit from greater access to one of the world’s largest and fastest expanding economies,” Canadian Prime Minister Stephen Harper said. This agreement will allow Canadian firms to export and import controlled materials, equipment and technology to and from India, he added.

Over the next 20 years, India’s civilian nuclear energy market is expected to be worth anywhere from $ 25 to $ 50 billion.

West should break Doha deadlock: India

India has asked the developed world to modify their stand on market access to the developing countries to make progress on the Doha Round.

"Progress (on Doha talks) could be achieved rapidly by placing development firmly back on the agenda, tempering the demands for additional market access into the developing countries by the development mandate, rather than the mercantilist expectations of the rich developed countries," Commerce and Industry Minister Anand Sharma said in Geneva on 30 November.

Addressing WTO Ministerial meeting, CIM cautioned that in the process of bridging gaps, the broad understandings of the past eight years should not be reversed. He, however, said the major focus of the engagement on the Doha talks for the last three months had been on just peripheral issues at the cost of main areas of negotiations.

Trade ministers of almost all the 153 WTO member-states met in Geneva during 30 November-2 December, 2009 to discuss reforms of the WTO functioning and review the global economy recovering from recession.

The Doha Round of WTO talks was earlier stalled after difference over subsidies given by developed world to their farmers and their insistence on opening the global farm trade.

India may 'wind down' fiscal stimulus next year, says PM

Speaking on 9 November at the India Economic Summit of the World Economic Forum held in New Delhi, Prime Minister Dr. Manmohan Singh said the measures taken by his government helped India brave the financial crisis better than most countries, but it may "wind down" by next year the fiscal stimulus that was launched last December.  "I am happy to say that India has been able to face the global economic downturn better than most other countries in the world," Prime Minister said.

"Like other countries, we resorted to significant stimulus and we will take appropriate action next year to wind this down. Our medium term objective is to achieve a growth rate of 9 percent per annum," he said.

Prime Minister told the high-profile gathering of top business leaders from across the globe that the worst was behind the global economy while the path to recovery remained long and uncertain.

He predicted a growth of 6.5 percent for the Indian economy during the current fiscal and over 7 percent for the next year, adding a return to high growth required work in many directions, especially in the area of creating jobs and rural uplift.

"Our strategy, therefore, must aim at sustaining a high rate of growth on the strength of strong domestic demand. We seek to achieve this through a large increase in investment in infrastructure."

Later, Planning Commission Deputy Chairperson Dr. Montek Singh Ahluwalia said the impact of the stimulus package would be reviewed early 2010 before a decision is taken on the modalities for its withdrawal.

"We are also thinking at what pace the withdrawal of the stimulus should begin. I definitely feel that at the start of the year we should bring out our perception as to how things have moved," he told reporters, maintaining that both the fiscal and monetary stimulus would be withdrawn.

The government had injected a fiscal stimulus of Rs.2 lakh crore, while the Reserve Bank of India had pushed a monetary stimulus worth Rs.1 lakh crore.

Dr. Ahluwalia said various agencies across the country were in favour of the government initiative on stimulus package. "Right now every authority in India has said that they were quite happy with the policy balance as far as stimulus, both fiscal and monetary action, are concerned for the current year", he added.

Later speaking at a CII seminar, Cabinet Secretary K M Chandrasekhar, allaying the anxiety of business community, told the reporters that the stimulus packages to perk up the economy during the slowdown are not likely to be withdrawn this fiscal and the exit when it happens will be a gradual one. He said certain things in stimulus packages might be retained while certain things might go. He, however, refused to specify which part of stimulus will be withdrawn. "We have not thought what to remove. Stimulus contains many things that might change," he said. Cabinet Secretary added that stimulus packages have been working and there is improvement on all economic parameters.

At the seminar, Finance Minister Pranab Mukherjee, too, said stimulus would be wound up when recovery is on a firm footing.

Cabinet approves National Solar Mission

On 20 November, the Cabinet approved the Jawaharlal Nehru National Solar Mission that aims to generate 20,000 megawatt of power a year by 2022. "The Cabinet has sanctioned Rs.4,337 crore ($900 million) for the initial activities in this regard," Information and Broadcasting Minister Ambika Soni told reporters after the meeting of the Cabinet presided over by Prime Minister Manmohan Singh. "The mission initially aims at generating 200 MW by 2012," she added.

The main bottleneck in spreading solar energy today is cost. While it costs Rs.3-4 to generate one unit of electricity from coal, it costs Rs.14 to do so from solar photovoltaic cells. If various subsidies given to the coal industry now are removed, the cost will go up to Rs.5-6, still well below the cost of solar power.

This does not take into account the other costs of using coal - respiratory diseases caused by pollutants released when coal is mined and then burnt, the destruction of soil associated with the mining, the effects of climate change caused by coal burning in terms of reduced farm output and more frequent and more severe droughts, floods and storms.

While there is no official calculation of these costs, an environmental economist has estimated them to total Rs.4 per unit. That would bring the real cost of producing electricity from coal to Rs.9-10 per unit, still below the cost of tapping solar power.

But solar power technology has been improving rapidly. Till a few years ago, it cost Rs.27 to produce one unit of electricity from solar photovoltaic cells.

While the renewable energy industry is excited about the mission, it is not happy with the planning process. "We are being asked to increase solar energy production hundredfold in the next 13 years, from 200 MW to 20,000 MW by 2022, but we have not been consulted on how it is to be done," a senior executive of a firm making solar photovoltaic cells said.

Government begins process for road map on divestment

On 13 November, the Government of India asked all ministries to compile a list of state-run firms for sale of stake and listing on stock exchanges, even as it expects partial divestment in at least three such firms by the end of this fiscal.

"We have already initiated inter-ministerial discussions for identifying central public sector undertakings," Disinvestment Secretary Sunil Mitra told a press conference, following up on the recent Cabinet decisions. “Each undertaking had different net-worth and different strengths. Each company will be taken up on a case-by-case basis and presented before the government for approval," he added.

There are over 400 public sector undertakings under the administrative control of the central government, out of which nearly 50 are listed on the bourses.

The Secretary said as per statistics available for 2007-08, there were 10 listed state-run firms with less than 10 percent public holding. Some 50 others met the criteria of having made profits in the past three years with a positive net worth.

Thus far, decision has already been taken to sell shares in three companies - NTPC, Sutlej Jal Vidyut Nigam and Rural Electrification Corp - before the end of this fiscal.

Secretary Mitra also clarified on how the proceeds from stake sale will be utilised and said it would be go toward capital expenditure of social projects identified by the Planning Commission and approved by the government, rather than the National Investment Fund.

He also quoted Finance Minister Pranab Mukherjee as having said that in past three months, the market capitalisation of National Hydroelectric Power Corp and OIL had jumped 106 percent and 177 percent respectively, after divestment.

India to achieve 9-10% growth towards start of 12th Plan

Speaking at the India Economic Summit on 11 November 2009, Finance Minister Pranab Mukherjee said the country would achieve a "magic" growth figure of 9 to 10 per cent by the beginning of 2012-13.

"I will be happy if I have 7 per cent plus (GDP) for the next year and 8 per cent the year after. After that ... momentum would gather and it would be possible to have 9 to 10 per cent growth surely during the initial years of Twelfth Plan (2012-2017)," he said.

India had planned to end the Eleventh Plan with a growth rate of 10 per cent but the global financial meltdown derailed it.

Having recorded economic expansion of 9 per cent in three consecutive years, the growth rate during 2008-09 slipped to 6.7 per cent. As regards the current fiscal, the Planning Commission has projected a growth rate of 6.3 per cent, though Prime Minister's Economic Advisory Council (PMEAC) expects the economy to expand by 6.5 per cent.

Indian economy grows 7.9 per cent during July-September 2009

As per data released by the Central Statistical Organisation (CSO), India’s gross domestic product (GDP) grew by 7.9 per cent during July-September 2009, up from 6.16 per cent in the previous quarter. The surge in GDP numbers was led by a 9.2 per cent growth in the manufacturing sector, with the mining and construction activities expanding by 9.5 per cent 6.5 per cent, respectively. Community, social and personal services expanded by double digit at 12.7 per cent, whereas trade, hotels, transport and communication sector grew by 8.5 per cent. Further, financing, insurance, real estate and business services increased by 7.7 per cent against 6.4 per cent a year ago.

Industrial production up 9 per cent in September

India's industrial production grew 9.1 per cent in September, compared to 6 per cent in the corresponding month last year, according to the latest official data released on 12 November.

This is also an indication of continuing recovery, as industrial production had grown 10.4 per cent in August -- the highest in 22 months -- over that registered in the corresponding month last year.

Total growth of industrial production during the first half of this fiscal (April-September) stood at 6.5 per cent, as against 5 per cent during the same period last year, data released by the Central Statistical Organisation showed.

Manufacturing was up 9.3 per cent in September against 6.2 per cent in the same period last year, while mining and electricity generation grew 8.6 per cent and 7.9 per cent during the period under review. Similarly, the consumer durables sector expanded 22.2 per cent in September, the data showed.

India's global trade engagement rises to 54% of its GDP

According to the official data released recently, India's global trade in services and goods has risen phenomenally in the last five years to constitute over 54 per cent of its gross domestic product, reflecting a greater integration with the world economy. In 2003-04, the country's exports and imports in both services and merchandise in relation to its GDP was only 30.9 per cent. These have now crossed well over half the size of the Indian economy.

"India's greater integration with the world economy is reflected in the trade openness indicator," a Finance Ministry paper on the state of the economy said. The merchandise trade as a percentage of India's GDP increased from 23.7 per cent in 2003-04 to 41 per cent in 2008-09. "If the services trade is included, the indicator is higher at 54.2 per cent in 2008-09, reflecting greater degree of openness," the paper said.

Telcos surpass 500 million user base target a year in advance

On 05 November, the Economic Times reported that the Indian telecom industry surpassed the target of 500 million mobile and landline subscribers in September, a year in advance, even as both the segments recorded a drop in monthly additions in September compared with the previous month, as per figures released by telecom regulator TRAI.

Telcos added 14.98 million new users in September as against 15.08 million in August this year. The number of landlines added at the end of September stood at 37.31 million. The total wireless subscriber base now stands at 471.7 million compared with 456.74 million in August.

‘Incredible India’ Wins World Travel Award

The ‘Incredible India’ campaign of the Indian Ministry of Tourism received yet another feather in its cap when it was conferred with the World Travel Award for the best destination marketing campaign. The Minister of Tourism, Kumari Selja received this award at a glittering event organized in London on 9th November, 2009. The promotional video being used for the overseas campaign was broadcast during the event, much to the delight and appreciation of the audience.

On 10th November 2009, the Tourism Minister inaugurated the India Pavilion at the World Travel Mart by lighting of the traditional lamp. Those present were High Commissioner of India to U.K and senior office bearers of travel trade.

Incredible India has an imposing presence in the Mart with a total of 83 participants as co-exhibitors. These include Air India, ITDC/ Organizing Committee (Commonwealth Games 2010), 60 Travel Agents / Tour Operators / Hotels and 21 State Governments / Union Territories.

The theme of the India Pavilion this year is the “Commonwealth Games 2010” to be hosted in Delhi in 2010. The new creatives of the Ministry for promoting the Games as well as images of the mascot “Shera” are being displayed prominently in the Pavilion.

Later in the day, the Union Tourism Minister received the ASIAN GUILD AWARD at the House of Lords, which recognized the contribution made by the Incredible India campaign in spreading awareness about India among the Asians living in the U.K.

Speaking on the occasion, the Minister of Tourism stated that the “Incredible India” initiative was conceived with an objective to brand the country as a unique, vibrant and inclusive identity. The “Incredible India” brand line and campaigns have since grown by leaps and bounds, so much so that the terms “Incredible” and “India” are now almost synonymous - and not only while referring to the immense tourism potential of the country.

There is no doubt that the Incredible India initiative has positioned the country in the mind of the discerning traveller, re-enforced interest in the country and contributed in generating awareness about India among the younger generations. The successful campaigns have also created a sense of pride amongst the Indian communities residing in different parts of the world, including the United Kingdom. The present award is in recognition of these efforts.

The Minister stated that the Indian Government, in close association and collaboration with all stakeholders in the tourism industry, will continue to work towards building of the “Incredible India” brand. Initiatives have been taken to develop tourism infrastructure, improve the quality of services and develop new tourism products such as Medical, Wellness and Rural Tourism, which offer the visiting tourist a rejuvenating and enriching experience.

Foreign exchange earning from tourism rises 3%

The foreign tourist arrivals during September 2009 was 3.17 lakh, which is 4.1% less compared to 3.31 lakh during the same month last year. In spite of foreign tourist inflow adversely hit in aftermath of 26/11 terror attacks and economic slowdown, the foreign exchange earning from the sector has witnessed a 3% increase this year, Union Minister of State for Tourism Sultan Ahmed said. Foreign exchange earning for the period January to September this year was Rs. 37,589 crore as against Rs. 36,464 crore in the previous year during the same period, Mr. Ahmed said. The Centre is concentrating on niche tourism products which included Heliport Tourism aimed at promoting tourism in hilly and remote areas, he added

Road projects worth $20 bn to be awarded in next 6 months

Road Transport Minister Kamal Nath said on 8 November that highway projects worth $20 billion will be up for bids over the next six months and the government's differences with private players over certain clauses in public private partnership projects would be ironed out. "We are looking at 60 percent of the total requirement ($20 billion) for the year to come from private participants," he added.

Referring to the target of constructing 20 km of roads a day, Minister said "We are not doing 20 km as yet, but as of March, we will be doing it," He attributed the delay in meeting the target to the monsoon and changes that needed to be incorporated in contracts for road projects in the public-private partnership model.

The Minister also said contentious clauses in concessional agreements that were keeping private investors at bay would be removed or revised to make investment in road projects more attractive and less risky.

"By the end of this month, we should see some clauses like the termination clause in previous agreements go. We want investors to make money," said Minister Kamal Nath, adding that an empowered group of ministers would start resolving contentious issues speedily.

India may get $1 bn IT outsourcing contracts

A news item appeared in the Economic Times stated that leading outsourcers such as Tata Consultancy, Infosys and Wipro stand to gain contracts worth about $1 billion in the next one or two years as US banks emerge from the troubled asset relief programme,

It further added that JPMorgan, Goldman Sachs and Morgan Stanley that received approval to buy back government stake worth $68 billion earlier this year are among the firms seeking operational efficiencies by outsourcing non-core IT and back-office projects to India. American Express, Bank of New York Mellon and Capital One, which have started repaying government debt, were also considering outsourcing, it said.

Healthcare to become $77-bn sector in India by 2012: Report

A report released on 25 November said that India's healthcare sector is expected to grow at 23 percent annually to become a $77-billion industry by 2012,

According to the report, jointly prepared by the Associated Chambers of Commerce and Industry (ASSOCHAM) and Yes Bank, India's healthcare sector has grown at 9.3 percent annually during 2000-09.

"Driven by various catalysts such as increasing population, rising income levels, changing demographics and illness profile, the healthcare industry is expected to move to levels of $77 billion in the next three years," said ASSOCHAM President Swati Piramal.

Healthcare services sector includes companies that are dependent upon and provide corollary services to hospitals, and is currently estimated at $1 billion.

According to Yes Bank and ASSOCHAM, diagnostics would contribute $2.5 billion to the healthcare industry by 2012.

An increasing number of public and private healthcare facilities are expected to propel demand for the industry, accounting for another $6.7 billion in this period.

With an increasing demand for affordable quality healthcare, the penetration of health insurance is poised to undergo an exponential growth to emerge as a $3 billion industry in the next three years.

"However, the corresponding growth in health infrastructure is yet to match the basic healthcare facilities in many other countries. For instance, the present number of nine beds per 10,000 people in India is far behind the world average of 40 beds per 10,000," the report said.  

ISRO earns Rs.1 bn by launching foreign satellites

The Indian Space Research Organisation (ISRO) has earned over Rs.1 billion in the last three years by launching foreign satellites. And much of this has come from Israel and Italy.

Speaking in the Lok Sabha (Lower House) on 2^nd December, Science and Technology Minister Prithviraj Chavan informed that twelve satellites were launched for other countries during the last three years including six nano-satellites during the current year.

The Minister said Indonesia, Argentina, Italy, Israel, Canada and Germany were the key countries taking the help of ISRO in sending their satellites on a commercial basis.

Israel paid a whopping Rs.548 million for commercial launches. It has also earned Rs.407 million from Italy. While the earning from Indonesia is Rs.13 million, ISRO got Rs.20 million from Canada. 

17 FDI proposals worth Rs 1,158 crore approved

On November 18, the government announced that it has approved 17 foreign direct investment (FDI) proposals worth Rs 1,158.78 crore. Among the major proposals which were approved are the FDI applications of the world's largest steelmaker ArcelorMittal and ductile iron pipe maker Electrosteel Castings. ArcelorMittal, with an FDI of Rs 503.37 crore, plans to infuse foreign equity into a company engaged in manufacturing cold-rolled semi-finished iron and steel products.

The Kolkata-based Electrosteel Castings plans to issue and allot eligible securities including equity shares and/ or non-convertible debt instruments along with warrants on a private placement basis bringing in FDI worth Rs 600 crore.

Meanwhile, the government deferred a decision on 12 FDI proposals and rejected five on the recommendations of the Foreign Investment Promotion Board (FIPB). The proposal to infuse 100 per cent foreign equity by Jaipur IPL Cricket Prviate Ltd (the promoters of the Rajasthan Royals which won the 2008 IPL), has been rejected by the government.

24% fall in indirect tax revenues worries Govt

With revenues from indirect taxes recording a 24 per cent decline in the first-half of the current fiscal, the Government of India is now betting on economic growth in the second-half and the proposed Goods and Services Tax (GST) regime in 2010-11 to bring about a sustained rise in such revenues.

“The fall in indirect tax revenues is a major area of concern. The fiscal correction, which we have to make, will require some time”, Finance Minister Mr Pranab Mukherjee said.

Indirect tax revenues have taken a big hit this fiscal due to lower imports and sharp fall in excise duty revenues. The decline in indirect taxes, on both Customs and excise duty front, has become a source of concern for policymakers in the Finance Ministry. In the first half of the current fiscal, customs duty revenues declined to Rs 37,744 crore (Rs 56,241 crore). On the other hand, excise duty revenues declined to Rs 36,893 crore (Rs 47,870 crore). Service tax collections during April-September 2009 stood at Rs 23,236 crore (Rs 24, 139 crore). The Customs duty revenues have fallen on the back of sharp decline in merchandise imports. India’s cumulative imports recorded a negative growth of 33 per cent in April-September at $ 124.6 billion ($ 185 billion).

Oil imports during the first half was 45 per cent lower at $ 34.8 billion ($ 63.3 billion). The imports during September 2009 stood at $ 21.37 billion, which was about 31 per cent lower than the $ 31.1 billion of imports recorded in the same month last year.

The decline in indirect tax revenues has compelled the Government to rein in expenditure on the non-Plan side. “We are looking quite closely at steps to help curtail non-Plan expenditure, especially subsidies on fertilisers and petroleum products”, Mr Mukherjee said.

India's annual food inflation rises to 14.55 pc

The official data released on 5 November showed that India's annual food inflation, based on wholesale prices, moved up to 14.55 per cent for the week ended on November 7 from 13.68 per cent the week before. Statistics also showed average prices of vegetables had gone up 18 per cent, pulses 17 per cent, rice 16 per cent, wheat five per cent, fruits seven per cent and milk eight per cent.

Finance Minister Pranab Mukherjee said on 4 November that the Government may have to import rice if the kharif crop output was inadequate. Floods and the worst dry spell in nearly four decades in the country have hurt farm output causing rise in food prices.

The Reserve Bank of India and the government have warned India's annual inflation rate based on wholesale price index for all commodities will rise to 6-6.5 per cent by March, while the Prime Minister's Economic Advisory Council has pegged the rate at six per cent.

India, China lead global economic recovery: OECD

According to Organisation of Economic Cooperation and Development’s (OECD) latest economic outlook released on 5 November, India, China and the United States are leading the world economy’s recovery but recovery is “still too timid” to halt the continuing rise in unemployment.

China, which is set to grow by 8.3 per cent in 2009 and 10.2 per cent next year, is leading the global recovery, helped by its limited direct exposure to the financial crisis and by a massive stimulus package.

The Indian economy, projected to grow by 6.1 per cent in 2009-10 and 7.1 per cent next year, has weathered the global downturn relatively well, it said.

India –EU sign civil nuclear pact

On November 6, India and the European Union (EU) signed an agreement in the civil nuclear field to give boost to collaborative research.    The agreement in fusion research was signed here by Atomic Energy Commission Chairman Anil Kakodkar from the Indian side and the European Commissioner for External Relations Benita Ferrero-Waldner from the EU side.    The agreement aims at intensifying cooperation to develop scientific understanding and technological capability underlying the fusion system in the long term.  It will develop a specific agenda for fusion research cooperation that goes beyond the ambitious multi-nation International Thermonuclear Experimental Research (ITER) project.     

The crucial pact was signed after the India-EU Summit talks between Prime Minister Manmohan Singh and his Swedish counterpart Fredrik Reinfeldt along with European Commission President Jose Manuel Borosso.  

Describing the agreement as an "important outcome" of the 10th Summit, PM Dr. Singh said at a joint press conference later that it "underscores the growing importance of energy security and clean energy in our cooperation".

Toronto to host IIFA Awards 2011

The Indian International Film Awards (IIFA) event organisers Wizcraft announced on 9 December 2009 that the 12^th IIFA will be held in Toronto, Canada in 2011. Toronto would be the first North American city to host the IIFA. IIFA has previously been held in the UK, South Africa, Malaysia, Singapore, Dubai and Thailand.

Ports – an import sector for Foreign Direct Investment in India

India has a long coastline of about 7517 kms. The coastline is spread on the western and eastern shelves of the mainland and also along the islands. The Indian coastline is dotted with 12 major ports and 187 minor ports. Ports play an important role in facilitating international trade. It is estimated that approximately 95 per cent of India’s trade by volume and 70 per cent by value is carried out through maritime transport. The maritime transport sector in India consists of ports, shipping, shipbuilding, ship repair and inland water transport systems.

The major ports in India alone handled a total of 519.24 million tonnes of cargo in 2007-08 which increased to 530.4MT in 2008-09, a jump of 2.15 per cent. At the same time, the share of non-major ports in cargo traffic has increased from less than 10 per cent in 1990 to the current level of 26 per cent.

Traffic at the ports has been growing at a brisk pace and therefore, increasing cargo handling capacities of the ports is crucial to India. To meet this demand, India's ports are likely to increase cargo handling capacity to 1,855 MT by 2012 from the present 758 MT, with an investment of about US$ 20.61 billion, as foreign trade expands. Private firms are likely to invest about 65 per cent of this amount.

To achieve the projected traffic target of 615.70 MT to be handled at major ports by 2011-12, it is estimated that capacity of about 800.41 MT would be needed. Therefore, an additional capacity of around 403 MT has to be built up by 2011-12, against the current capacity of 397 MT.

The Indian shipbuilding industry comprising 27 shipyards—including eight public sector and 19 private sector shipyards—is on a roll driven by the booming maritime trade. According to an industry report, the shipbuilding sector has witnessed a 359 per cent increase in the turnover of shipyards from US$ 216.60 million to US$ 778.90 million in the last five years. By 2012, it is likely to corner around 3 per cent of the global share with an annual turnover of US$ 3.72 billion.

Minor ports are expected to add 610.85 MTPA capacity during the Eleventh Plan. A section of experts feels that new capacity could add up to one billion tonnes by 2011-12. Gujarat, Maharashtra and Andhra Pradesh are likely to drive the port capacity expansion of the country over the next five years.

Government Initiatives

· The Indian Government has set up the National Maritime Development Plan (NMDP) with a view to improving facilities at India’s 12 major ports with a plan to spend around US$ 12.4 billion.

· A further investment of over US$ 9.07 billion will be made for 111shipping sector projects by 2015.

· The Ministry of Shipping has planned 10 major expansion projects in 2008-09 at an estimated investment of US$ 1.06 billion with 60 per cent of investments allocated for the Chennai mega container terminal.

· Government has opened up all the areas of port operation for private sector participation.

· The Indian government is considering a US$ 2 billion package to help local shipping firms finance new vessel acquisitions as global lenders tighten up their purse strings.

Investments

According to the Planning Commission, there exists an investment opportunity to the tune of of US$ 25 billion by 2011-12 in India's shipping and ports sectors, as India seeks to double its ports capacity to over 1,500 MT. While ports sector would provide a US$ 13.75 billion investment opportunity, shipping and inland waterways are likely to present a US$ 11.25 billion-investment opportunity.

In a major thrust to expand capacity at important ports in the country, the Ministry of Shipping has awarded seven projects worth over US$ 387 million, to be developed through the public-private partnership (PPP) route.

Another 19 projects, estimated to cost around US$ 3.9 billion, are expected to be awarded on similar PPP basis by early 2010.

These 26 projects together will expand capacity at the major ports in the country by 42 per cent, or 245.97 MT.

Moreover, according to shipping industry players, India is likely to invest US$ 18 billion in ports and over US$ 4 billion in its shipbuilding industry in the next five-to-seven years.

Foreign Direct Investment

- Up to 100 per cent foreign direct investment under the automatic route is permitted for construction and maintenance of ports and harbours.

- 100 per cent income tax exemption is provided for a period of 10 years for port development projects.

Useful Links

Department of Shipping: http://shipping.nic.in

Indian Ports Association: http://www.ipa.nic.in

India-Canada bilateral trade

Bilateral trade figures for the quarter January-September 2009 are as under:

[Figures in thousand US dollars at the current rate]

Description	Jan-Sept 2008	Jan-Sept 2009	Percentage change
India’s Total Exports	1,513	1,265	(-) 16.39
India’s Total Imports	1,564	1,341	(-) 14.25
Total Trade	3,077	2,606	(-) 15.30

[Source: Statistics Canada]

Ongoing global economic recession has taken its toll on India-Canada bilateral trade. India’s exports to Canada during the period January- August in current fiscal were down 16.39 per cent over the same period last year whereas India’s imports from Canada during the same period registered a 14.25 per cent decline. However, overall bilateral trade in the first nine months of 2009 registered a 15.30 per cent decline over the same period last year.

Events

The first meeting of India-Canada Joint Study Group to explore the possibility of a Comprehensive Economic Partnership Agreement (CEPA) was held in New Delhi on December 7-8, 2009. A Memorandum of Understanding was signed for establishing the Joint Study Group during Canadian Prime Minister’s official visit to India in November 2009. The Indian side was led by Mr. Anil K. Mukim, Joint Secretary, Department of Commerce and the Canadian side by Mr. David Plunkett, Associate Deputy Minister and the Chief Negotiator, Canada.

A Memorandum of Understanding between the Ministry of Science and Technology, India and the Department of Natural Resources of Canada concerning Cooperation in Science and Technology related to Geospatial Information was signed in New Delhi on 4 November 2009.

The Richard Ivey School of Business at the University of Western Ontario signed a memorandum of understanding to collaborate with the Indian School of Business (ISB) in Hyderabad, India on a Case Development Centre. The Centre, which has just been launched, will support and mentor faculty and research scholars not only from the ISB, but from business schools across India, through the complete process of case development - from generating ideas to publishing case studies globally. The MOU was signed in India during the visit of leaders from the Ivey Business School to India in October 2009 to explore partnerships, engage with the academic and business community and to advance Ivey Business School's presence in India.

Edmonton-based Matrikon Inc. announced that it purchased the remaining 51% of Matrikon-SoftDEL India Private Limited from joint venture partner SoftDEL Systems Pvt. Ltd. for C$575,000. The company, with approximately 30 full-time staff, will be operated as Matrikon India. Matrikon is an international provider of industrial intelligence technology and solutions. The company provides plant level IT consulting services and software solutions to industrial clients across a number of industries, including oil and gas, petrochemicals and refining, power and utilities, and mining and minerals.

Seven Indo-Canadians were honoured with the Voice Achievers Award for 2009 in recognition of their contributions in the fields of literature, medicine, sports, trade and film. Among those honoured include actress Lisa Ray who was awarded for her performance in the Deepa Mehta-directed film "Water”. The Voice Achievers Award for 2009 was presented at a function organised by the ethnic weekly, Voice, at its annual gala dinner held in Toronto. Other winners honoured with the award include Kuldip Rai Sahi in the field of business, Meenu Sikand in the field of social work and Dr Gopal Bhatnagar in the field of cardiac surgery. Canada’s Parliamentary Secretary to the Minister for Foreign Affairs, Deepak Obhrai, and other Members of Parliament, also spoke on the occasion and lauded the contributions of ethnic media in the promotion of Indian culture and heritage.

Visits

From India

Indian Medical Tourism Destination 2009 – Healthcare without Borders was held at Metro Toronto Convention Centre from Nov 20-22, 2009 to showcase India’s capabilities in the healthcare sector. Dr Narottam Puri, President, Fortis; Dr Venkatachalam, Orthopedic Surgeon, Dr Ganapathy, Nuero Surgeon, Apollo Hospitals participated.  Dr Ganapathy spoke about the strides India has made in the telemedicine project.   Representatives from reputed Indian hospitals such as Fortis Healthcare, Apollo Hospitals, Max Healthcare, Sri Ramachandra Medical Centre, Kerala Institute of Medical Sciences, Jerela Ayurveda, Madras Joint Replacement Centre, Soukya Holistic Centre, Mann Mediciti, Thind Eye Hospital, India and Holiday Private Limited participated in the event. Also, Progressive Rehab, Toronto and Surgical Tourism Canada Inc., Vancouver attended the event.

From Canada

Mr. Kenneth Ko, Director, ESS, Department of Natural Resources Canada, accompanied by Dr. Vern Singhroy, Senior Scientist, Canada Center for Remote Sensing visited India (New Delhi, Hyderabad) to sign an MoU with the Ministry of Science and Technology, India concerning Cooperation in Science and Technology related to Geospatial Information. They also held discussions with the Ministry of Mines, New Delhi on the proposed MoU on Mining between India and Canada. In Hyderabad, they had meetings in the ESS sector with the Government of Andhra Pradesh.

Trade Fairs/Events

“MP Exportech 2010” from 16-18 January, 2010 at Export Facilitation Centre, Gwalior, Madhya Pradesh, India

The Confederation of Indian Industry, in association with Madhya Pradesh Laghu Udyog Nigam Ltd. (MPLUN) is co-organising “MP Exportech 2010” from 16-18 January, 2010 at Export Facilitation Centre, Gwalior, Madhya Pradesh, India. This event is co-sponsored by Ministry of Commerce & Industry, Government of India and Government of Madhya Pradesh.

MP Exportech 2010 is a reverse buyer-seller meet and shall focus on the following categories:

· Handicrafts, Handloom & textiles

· Ayurvedic, Herbal & Pharma products

· Small Machine Tools & Spares

· Processed Food

· Stone Craft/Building Materials.

The prime objective of MP Exportech 2010 is to establish firm linkages between international markets and export industries of Madhya Pradesh. It will bring together manufacturers, sellers, exporters and international buyers on a single platform. MP Exportech 2010 will provide international trade and marketing exposure to export-oriented products of Madhya Pradesh.

[For complete details, please visit website: www.mpexporters.in]

“Silk Paradise Show” from 20th to 22^nd January' 2010 at Pragati Maidan, New Delhi, India.

The Indian Silk Export Promotion Council sponsored by the Ministry of Textiles, India is organising the “Silk Paradise Show” from 20th to 22^nd January' 2010 at Pragati Maidan, New Delhi, India.

The show is a creatively conceptualized re-introducing to all that is widely known about silk and more, showcasing India’s rich culture, lifestyles, resources and abundant potential. Silk Paradise will bring exporters and importers under one roof, where global buyers can meet over 100 best Indian suppliers of silk products at one location with their exquisite collections.

[For complete details, please contact Mr. Subash Mittal, Chairman, The Indian Silk Export Promotion Council, 62, Mittal Chambers, Nariman Point, Mumbai-400021, India at (Tel: 91-22-22025866/22027662; Fax: 91-22-22874606; Email: isepc@bom2.vsnl.net.in)]

44^th India International Garment Fair (IIGF)

The India Trade Promotion Organisation is organizing “44^th India International Garment Fair (IIGF)” from 20-22 January, 2010 at Pragati Maidan, New Delhi, India. The fair will feature the following products:

· Casual Wear and City Wear

· High Fashion and Occasional Wear

· Lingerie

· Speciality

· Sportswear

· Accessories and Fashion Jewellery

[For further details, please access website: www.indiaapparelfair.com]

3^rd edition of International Jewellery Show (IIJS 2010)

The Gem & Jewellery Export Promotion Council is organizing 3^rd edition of International Jewellery Show (IIJS 2010), which is a buyer-to-buyer Jewellery Show, from 19^th – 22^nd February, 2010 at Goa, India.

India is the largest manufacturer of gems and jewellery ranging from exquisitely crafted jewellery to diamonds and coloured stone. The upcoming edition features a special section for loose diamonds and color stone manufacturers. The IIJS Signature will be limited to only 120 of India’s top selected companies displaying jewellery and loose stones representing the cream of the Indian gem and jewellery industry. This uniquely positioned trade show has all the unique features with select exhibitors, compact size, modern exhibition concepts, great hospitality, networking opportunities, unbeatable beachside venue, and much more to experience. The show is positioned as a niche jewellery event with high experiential quotient, emphasizing on design and innovation which presents the new India to the visitor.

[For more details, please access website: www.iijs-signature.org]

Indian Furniture and Accessories Show (IFAS)

The Export Promotion Council for Handicrafts is organizing an exclusive product specific fair called “Indian Furniture and Accessories Show (IFAS)” from 13-15 March, 2010 at Jodhpur, Rajasthan, India.

The fair is a very effective medium for marketing Indian exporters and is also considered ‘One Stop Sourcing Event’ by the overseas buying community. Indian furniture and accessories industry has come of age now as it has exquisite designs, styles, and craftsmanship besides a very diverse range to suite the requirements for living room, bedroom, dining room, hotels, restaurants, clubs, entertainment centers, beaches, garden and other outdoor activities. The range of accessories includes all sorts of home decor items which are not only fabulous in designs but in texture and quality also. More than 300 leading Indian companies are exhibiting their product range at the show.

[For further details, please access website: www.epch.com]

Tenders

The OPTO Electronic Factory, Dehradun, Ministry of Defence, India invites sealed tenders under two bid system (technical and commercial bids in separate sealed covers) from reputed suppliers of Sight Systems/sub-assemblies of Battle Tanks and Armoured Personnel Carriers for the supply of following items:

S. No	Tender No.	Description	Quantity
01	OLF/MM-II/T-0906040411	1) Sight Assembly of 9SH119M1 to DRG. No. AF5.811.038. 2) Position Indicator of 9SH119M1 to DRG. No. AF5.137.005	105 Nos. 105 Nos
02	OLF/MM-II/T-0906040412	1) Unit for Horizontal Adjustment Assembly of BPK-2-42 to DRG. No. 14545137006 2) Vertical Adjustment Mechanism Assembly of BPK-2-42 to DRG. No. 14546063178 3) Collimator Assembly of BPK-2-42 to DRG No. BSH5.176.033 4) Day Eye Piece Assembly of BPK-2-42 to DRG. No. 15732600000	105 Nos. 105 Nos. 105 Nos. 105 Nos.
03	OLF/MM-II/T-0906040412	1) Objective Assembly of IP3-3 to Drawing No. Y4479305. 2) Body Assembly of IP3-3 to Drawing No. Y4521835. 3) Bracket with Light Filter Assembly of IP3-3 to Drawing No. Y4478962. Telescopic Ocular System of IP3-3 Drawing of Y4479883.	105 Nos. 105 Nos. 105 Nos. 105 Nos.

Cost of Bid Documents: USD 20.00

Earnest Money Deposit: USD 4000.00

The closing of tender is on 31^st December, 2009 upto 1700 Hrs (IST) and the tender will be opened on 15^th February, 2009.

[For any further information, please contact Mr. Yogendra Kumar, Deputy General Manager, Government of India, Ministry of Defence, Opto Electronics Factory, Indian Ordnance Factories, Raipur, Dehradun-248008, Uttrakhand, India at (Tel: 91-135-2783035; Fax: 91-135-2787181; Email: olf.ofb@nic.in )]

Global Tender Notice

The Bharat Heavy Electricals Limited, Electricals Equipment Plant (HEEP), Haridwar, India has invited open tender for “Various Types of Rotor Forgings for Turbo Generator of Various Ratings” as per the details below:

S.No.	Tender No.	Description
1.	EE203/2009/1409N	Rotor Shaft Forging As per Spec.HW19476 THW210MW Mat.Gr.26NiCrMoV14 5, Weight 43.73 MT
2.	EE211/2009/1480N	Rotor Forging As per Spec.HW19476 660/600MW Mat.Gr.26NiCrMoV14 5, Weight 71.08 MT
3.	EE211/2009/1484N	Forging for Rotor Shaft As per Spec.HW19476 800MW Mat.Gr.26NiCrMoV14 5, Weight 85.15 MT
4.	EE211/2009/1997N	Rotor Forging As per Spec. HW19476 500MW Mat.Gr.26NiCrMoV14 5, Weight 63.43 MT
5.	EE211/2009/3847N	Rotor Shaft M/C As per TDC F 91360101000 500MW Mat.Gr.26NiCrMoV14 5, Weight 49.78 MT
6.	EE211/2009/5661N	Forging for Rotor Shaft As per Spec.HW19476 250MW Gr.26NiCrMoV14 5, Weight 41.61 MT

Cost of Tender Document: Rs. 2000/-

Earnest Money Deposit: Rs. 100000/-

The closing of tender is on 21st December, 2009 upto 1345 Hrs (IST) and the tender will be opened on 21^st December, 2009 at 1400 Hrs (IST).

[Complete details of the tender and tender documents are available on website: www.bhelhwr.co.in, www.tenders.gov.in, www.bhel.com or www.bheledn.com ]

Global Tender Notice No. P46JC09011

The Oil and Natural Gas Corporation Limited invites sealed e-tenders under International Competitive Bidding under “Two Bid” System from capable and experienced offshore drilling companies/contractors for “Charter Hire of 300 ft. Independent Leg Cantilver Type offshore jack up rigs for deployment in PEL/ML areas” as per details below:

Cost of Tender Document: $1000.00

Earnest Money Deposit: $ 5, 00,000.00

Quantity: 07 Rigs.

The closing of tender is on 30 December, 2009 up to 1400 hrs (IST) and the tender will be opened on the same day at 1500 hrs (IST).

[For complete details of the tender and tender documents please access ONGC’s website: https://etender.ongc.co.in and http://tenders.ongc.co.in]

Global Tender Notice No. B28BC09002

The Oil and Natural Gas Corporation Limited invites sealed tenders under International Competitive Bidding under “Two Bid” System for the “Supply of Bridge Plug, Cement Retainer & Associated Tools” as per details below:

Cost of Tender Document: $100.00

Earnest Money Deposit: $ 2900.00

The closing of tender is on 11 January, 2010 up to 1400 hrs (IST) and the tender will be opened on the same day at 1500 hrs (IST).

[For complete details of the tender and tender documents, please access ONGC’s website: http://tenders.ongc.co.in]

Global Tender Notice No. Y18AC09002

The Oil and Natural Gas Corporation Limited, Mumbai Region, India invites E-tender to procure “Various Types of Valves for MH & B&S Asset” as per the details below:

Tender Fee: Rs. 45000/- (INR)

The closing of tender is on 01 February, 2010 up to 1400 hrs (IST) and the tender will be opened on the same day at 1500 hrs (IST).

[Complete details of the tender and tender documents are available on ONGC’s website: https://etender.ongc.co.in]

Global Tender Notice No. P4CEC09003

The Oil and Natural Gas Corporation Limited, Mumbai Region, India invites E-tender for the purchase of “Compact Single Plug Cementing Head With Quick Latch Coupling” as per the details below:

Cost of Tender Document: Rs. 22,500/- (INR)

Earnest Money Deposit: Rs. 4,40,770/- (INR)

Quantity: 04 Nos.

The closing of tender is on 26 February, 2010 up to 1400 hrs (IST) and the tender will be opened on the same day at 1500 hrs (IST).

[Complete details of the tender and tender documents are available on ONGC’s website: https://etender.ongc.co.in]

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Published by : High Commission of India, Ottawa, Canada

Editor : Deputy High Commissioner

Sub-Editor : Second Secretary (Com)