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Issue No. 15 18 February 2010

Highlights

· RBI issues third quarterly update on the monetary policy

· Government to relax Foreign Director Investment norms

· Environment Ministry announced specific initiatives

· India to offer 450-500 crores to boost exports

· Government allows duty free sugar imports till December end

· Invest India launched

· India a safe destination for foreign investment

· India to have 6,000 MW solar power by 2017

· India to beat China to become fastest growing economy

· Merger and Acquisition (M&A) volume at highest since 2000

· Consumer electronics firms post double-digit growth

· IMF scales up India growth outlook

· Hiring picks up

· Auto sector to post 10-12 per cent growth in sales

· Indian automakers poised to dominate export market in 5 years

· Andhra Pradesh targets Rs.690 bn IT exports by 2012

· Gujarat, Orissa and Andhra Pradesh top 3 domestic investment destinations of 2009

· Rs. 10 trillion investment in food processing industry by 2015

· WTO shares India’s concerns on protectionism

· India to invest $350 m in Nigerian oil blocks

· India signs loan agreements for three projects with the World Bank

· India, Malaysia signs MoUs

· India, South Korea signs 4 MoUs

· India, Japan to develop solar city

RBI issues third quarterly update on the monetary policy

In a meeting with Chief Executives of commercial banks on 29 January 2010, the Reserve Bank of India Governor D. Subbarao presented the third quarterly (Oct-Dec 2009) update of the monetary policy for the current fiscal (April 2009–March 2010). Following are the highlights of the update:

· Cash reserve ratio hiked by 75 basis points to 5.75 percent in two stages

· Move to suck out excess liquidity worth Rs. 36,000 crore from system

· Bank rate retained at 6.0 percent

· Repo rate retained at 4.75 per cent

· Reverse repo rate retained at 3.25 percent

· India's economic growth projection hiked to 7.5 percent from earlier 6 percent

· Annual inflation rate projection hiked to 8.5 percent from 6.5 percent

· Inflation risk looms larger when viewed in the context of global price movements

· Reserve Bank to monitor price situation closely and take further action as warranted

· Reduction in excess liquidity to help anchor inflationary expectations

· Recovery process to be supported without compromising price stability

· Central bank focus now on managing recovery from managing crisis

· There is still uncertainty about pace and shape of global recovery

· Stronger global recovery could prop oil prices sharply

· Monetary policy for 2010-11 to be announced on April 20

Government to relax Foreign Director Investment norms

The Government of India proposes to ease the norms for Foreign Direct Investment (FDI) approval. Currently, projects worth more than Rs 600 crore (1 crore = 10 million) require the final approval of the Cabinet Committee on Economic Affairs (CCEA). The Department of Industrial Policy and Promotion (DIPP) has proposed that this ceiling be raised to anywhere between Rs 1,000 crore and Rs 1,500 crore. According to the current norms, any FDI infusion, irrespective of its size, into projects worth above Rs 600 crore requires a formal clearance from CCEA after it passes through Foreign Investment Promotion Board (FIPB) under the Ministry of Finance. The ceiling is proposed to be raised to attract greater FDI inflows into the country. Once notified, the move is expected to benefit companies across all verticals from telecom, retail, airlines, banking and financial services that view India as one of the prime investment destinations.

The new norms are likely to be notified after the introduction of a consolidated FDI policy framework on April 1 this year. Projects below the threshold would get their final approval from the Finance Minister after they have been cleared by the FIPB.

FDI inflows increased to $27 billion in 2008-09 from $3.2 billion in 2004-05. During the period April-September 2009-10, FDI inflows reached $15 billion. The government has set a target of achieving $50 billion annual FDI by 2012 and $100 billion by 2017.

Environment Ministry announced specific initiatives

On 4 February, Minister of State for Environment Mr. Jairam Ramesh announced a series of measures to strengthen the scientific base of the Environment Ministry. He introduced five specific initiatives in this direction, namely:

1. A Global Advisory Network Group on Environmental Sciences (GANGES)

2. A National Environmental Sciences Fellows Programme

3. An Expert Committee to Enhance the Scientific Capacity of the Environment Ministry

4. An Action Plan to Enhance Forestry Science

5. An Indian Network for Climate Change Assessment (INCCA), announced in Oct 2009

Mr. Jairam Ramesh said: we need rigorous science-based policy making and enforcement. Over the years, this science-focus has got somewhat diluted. With these initiatives, we aim to ensure that science is brought back into mainstream of our work and decision-making.

India to offer 450-500 crores to boost exports

Commerce Minister Anand Sharma announced on 13 January that his ministry would offer a further stimulus of Rs. 450-500 crore as incentives to exporters till this fiscal end to push exports of 2000 products. This would be done out of Commerce Ministry’s budget for the current fiscal without seeking additional funds from the Finance Ministry. Apex business bodies have welcomed this move as this would benefit critical product groups including labour intensive sectors such as hand tools, plastics, rubber, handicrafts, machinery and engineering goods, chemicals, auto components, woven fabrics of cotton and iron and steel.

Government allows duty free sugar imports till December end

On 13 January, the Cabinet Committee on Prices (CCP) decided to allow import of refined sugar at zero duty up to 31 December 2010 in the wake of sugar prices nearing Rs. 50 a kilogram in the retail market. Earlier, the import of white sugar was allowed till 31 March 2010. Agriculture Minister Sharad Pawar also announced that two-three million tonnes of wheat would be released in the open market in the next two months to check prices. Food inflation in the country has reached nearly 20 per cent. India has already imported 7 million tonnes of sugar since April 2009 to meet the shortfall in sugar output for two consecutive years and is expected to undertake more imports to contain rising retail price of sugar in the country.

Invest India launched

The Department of Industrial Policy and Promotion under the Ministry of Commerce and Industry, India has set up a joint venture company called ‘Invest India’ in partnership with Federation of Indian Chambers of Commerce and Industry (FICCI) and the Indian State Governments. The company was formally launched by Commerce and Industry Minister Anand Sharma on 23 December 2009. The primary mandate of ‘Invest India’ (website: www.investindia.gov.in) is to promote foreign investment in a focused, comprehensive and structured manner. It is envisaged to play an important role in providing effective support and assistance to investors in a timely and efficient manner.

India a safe destination for foreign investment

Addressing the participants on the concluding day (24 January) of the Partnership Summit hosted by the Confederation of Indian Industry in Chennai, Union Minister of State for Planning V. Narayanasamy said India is a safe destination for foreign investment as it combined prudent macroeconomic management with a stable domestic financial system. Overseas investment in India was “safe, secure and protected by law”, he added. The UPA Government is also committed to liberalising the insurance sector despite the move hitting a bottleneck in Parliament, he said.

India to have 6,000 MW solar power by 2017

On 18 January, Environment and Forests Minister Jairam Ramesh, referring to the Jawaharlal Nehru National Solar Mission launched in the national capital in the first week of January 2010, said that India will have at least 6,000 MW of installed solar power capacity by 2017, bulk of which will be put up by the private sector. India has planned 22,000 MW of solar energy by 2022 and intends to drive down costs through a rapid scale-up of capacity. The bulk of the power will come from private industry.

India to beat China to become fastest growing economy: Montek

Speaking to the media in Davos on the conclusion of the five-day World Economic Forum meeting, Planning Commission Deputy Chairman Montek Singh Ahluwalia expressed confidence that in the years to come India could emerge as the fastest growing economy in the world, beating China as the nation has yet to achieve its full growth potential.

India has not reached the full peak of its growth potential which could easily be 9 to 10 per cent. So, if India accelerates to say 10 per cent and China begins to decelerate there could be a situation where India grows faster than China," he added. He also emphasised that the impression about India has changed among the global investor community.

India has been growing by over nine per cent till the global economic crisis hit the economy and pulled down the country's growth rate to 6.7 per cent during 2008-09. During the current fiscal, the economy is expected to expand by over 7.75 per cent, as indicated by Finance Minister Pranab Mukherjee in his Mid-Year Review of the Economy which was tabled in the Parliament in December 2009.

China clocked a growth of 10.7 per cent during the quarter ending December retaining its position as the fastest growing economy during 2009. India grew by 7.9 per cent during July-September 2009 quarter.

Merger and Acquisition (M&A) volume at highest since 2000

Merger and acquisition (M&A) volumes have touched US$ 74.5 billion till January 13, 2010 —the next highest Year-To-Date (YTD) level in ten years. The year 2000 saw over 1,000 M&A deals at a total value of US$ 171.5 billion. The figure in 2010 is 70 per cent higher than the US$ 41.7 billion figure in 2009. The healthcare sector has been witnessing maximum deal flow and has accounted for 54 per cent of volumes so far in 2010 followed by the food and beverage, oil and gas, finance and mining sectors.

Consumer electronics firms post double-digit growth

According to a study conducted by ORG-GFK market research agency, the consumer electronics industry registered a double-digit growth during the period January-November 2009 firmly putting behind the slowdown of the second half of 2008 and the first quarter of 2009. Though around 70% sales continued to be driven by large cities, consumption soared in the rural and semi-urban markets as public sector employees there were hardly affected by the slowdown. The government’s stimulus packages rolled out early last year and wage revision also boosted consumer demand as prices softened.

IMF scales up India growth outlook

The International Monetary Fund (IMF), in its most recent World Economic Outlook, has projected that the Indian economy would grow at 7.7 per cent in 2010 and at 7.8 per cent in 2011. IMF had projected the growth rate at 5.6 per cent in 2009. This is due to India’s strong domestic economy recovery. India’s gross domestic product grew by 7.9 per cent during July-September 2009, up from 6.1 per cent in the previous quarter.

On the other hand, the global ratings firm Moody has projected the Indian economy to grow at 8.3 per cent in 2010 as the consumer demand would remain strong even if stimulus is withdrawn. Investment is expected to be the main driver of GDP growth in 2010 if RBI doesn’t hike rates aggressively. Business confidence and capacity utilization have picked up in recent quarters, which are reflected in higher industrial output. Public investment is also set to surge in 2010 as the government is planning on ramping up the kilometers of road built per day up to 20 by April, from around nine at present and two a year ago.

Hiring picks up

With the Indian economy picking up, hiring is back in full swing across sectors. Besides IT, power and infrastructure, BPO and fast moving consumer goods (FMCG) companies are hiring in a big way. More activity has been observed at the senior and medium level management due to a cautious optimism in the job market. It is felt that recovery in hiring across all sectors has begun and this will gain momentum in the months ahead. IT is taking away the largest share followed by energy, power and infrastructure sectors.

Auto sector to post 10-12 per cent growth in sales

According to a report by the global rating firm Fitch, the Indian auto industry is likely to see a growth of 10-12 per cent in sales in 2010. Due to the increasing penetration of global original equipment manufacturers in the country, the competition in the auto sector is likely to increase. The competitive intensity in the auto industry is likely to increase over the medium term due to the number of new players, as well as the higher number of new product launches from existing players.

Indian automakers poised to dominate export market in 5 years

According to a survey by leading consultancy firm KPMG, in terms of global market share in the next five years to join the ranks of established players like Hyundai, Toyota, Honda and Volkswagen would include various Indian and Chinese vehicles. 200 senior executives were asked to predict firms that will have a major chunk of the export market over the next five years. They identified various Indian and Chinese vehicle manufacturers in addition to the existing global players. Among firms that remained on the low rung of market share expectations were GM and Chrysler.

The Auto Expo 2010 held in New Delhi in January 2010 had a line up of global luxury brands such as Audi, BMW, and Mercedes Benz with new models for the Indian market. The Indian market of luxury cars is to grow to 20,000 by 2015. Amongst the domestic players, Tata Motors displayed Jaguar and Land Rover in India. BMW is the largest selling luxury car brand in India with 3,619 cars sold in 2009.

Andhra Pradesh targets Rs.690 bn IT exports by 2012

On 26 January, addressing the Republic Day parade at Secunderabad, Governor Mr. E.S.L. Narasimhan said that the Andhra Pradesh State has set a target of IT exports of Rs.69,000 crore (Rs.690 billion/$15 billion) and 1.2 million jobs in the IT sector by the end of 2012. The IT exports from the State were expected to jump from Rs.32,000 crore in 2008-09 to Rs.36,000 crore in 2009-2010.

The State Government promoted several exclusive IT SEZs and so far created nearly three lakh jobs directly and another five lakh jobs indirectly. Hyderabad had so far attracted 1,300 IT companies.

The Governor said the State achieved impressive 9.14 percent growth which was higher than the national average in 2004-09.

Gujarat, Orissa and Andhra Pradesh top 3 domestic investment destinations of 2009

According to an analysis of ASSOCHAM Investment Meter (AIM) Study on Corporate Investment, the domestic investment announcements of India Inc. registered a growth of 16 per cent during 2009 over 2008. Gujarat, Orissa and Andhra Pradesh emerged as forerunners in attracting the largest share. The analysis further indicated that total investment plans of India Inc. increased significantly from Rs 13,80,099 crore in 2008 to Rs 15,94,203 crore in 2009; out of which Gujarat, Orissa and Andhra Pradesh carved out a majority share of 15.4 per cent, 12.6 per cent and 8.1 per cent respectively. Auto, steel, coal, power, real estate, infrastructure and oil and gas are the major sectors attracting the investment.

Rs. 10 trillion investment in food processing industry by 2015

Union Food Processing Minister Subodh Kan Sahay said that the Central Government plans an investment of Rs. 1 lakh crore (Rs. 10 trillion) including from the private sector in the food processing sector by 2015. In the last five years, food processing industry in India has grown nearly 10 per cent and aims to register a growth of around 20 per cent by 2015. Minister Sahay further said he was hopeful of setting up 30 mega food parks by next year, including one food park in each north-eastern States. The need of the hour is market driven farming to enable an assured income for our farmers and help them grow, he added.

WTO shares India’s concerns on protectionism

On 28 January 2010, the World Trade Organization (WTO) shared the concerns of India and other developing countries on protectionism and expressed confidence that a deal on opening the world trade further is possible this year. "We need to remain vigilant. With unemployment remaining high, protectionist pressures remain a worry," WTO Director General Pascal Lamy told PTI correspondent in Davos. The international trade body will continue to keep a close watch on protectionist measures that impede international free trade. The WTO secretariat will continue monitoring these developments through 2010, he added. India and several emerging economies like Brazil have raised concern over the protectionist measures in the West, especially after the global financial crisis.

India to invest $350 m in Nigerian oil blocks

India has expressed its keenness to expand its investment in Nigeria, particularly in the energy sector.

“India will invest $350 million in developing two oil blocks in the West African nation, besides increasing its engagement in the gas sector as well,” Petroleum and Natural Gas Minister Murli Deora said after meeting his Nigerian counterpart Henry Odein Ajumogobia at Abuja on 25 January.

“India is looking forward to partnering Nigerian National Petroleum Corporation (NNPC) through the Indian oil and gas conglomerate — ONGC Mittal Energy Ltd. — for the establishment of a green field petroleum refining plant,” Mr. Deora said.

India is Nigeria’s second-largest crude oil buyer. Out of the 116 million tonnes of crude oil consumed annually, about 11 to 18 million tonnes, representing 22-25 per cent of its total yearly imports, are sourced from Nigeria, which is Africa’s largest energy producer.

Nigeria, a member of 12-nation Organization of the Petroleum Exporting Countries (OPEC), is India’s largest trading partner in Africa in the area of oil and gas sector.

India signs loan agreements for three projects with the World Bank

The Loan and Project Agreements for World Bank assistance to the State of Andhra Pradesh for three projects were signed in the presence of Hon’ble Chief Minister of Andhra Pradesh, Dr. K. Rosaiah between the Government of India/Andhra Pradesh and the World Bank in Hyderabad on 23 January 2010.

The three projects are (i) Andhra Pradesh Road Sector Project (APRSP) for International Bank for Reconstruction and Development (IBRD), World Bank assistance of US$ 320 million (ii) Andhra Pradesh Rural Water Supply & Sanitation Project (APRWSSP) for International Development Association (IDA), World Bank assistance of US$ 150 million and (iii) Andhra Pradesh Municipal Development Project (APMDP) for IBRD, World Bank assistance of US$ 300 million.

After signing these agreements the total ongoing commitment of the World Bank projects in India has reached to US$ 19.38 billion. In the current financial year 2009-2010, the World Bank commitment to India has been US$ 5.5 billion. India is the single largest borrower of the World Bank loan. Following the discussion with the World Bank President during his last visit to India on December 2-5, 2009, India is striving to become more efficient borrower. The signing of new loans at Hyderabad is a step in that direction.

India, Malaysia signs MoUs

H.E. Date Sri Mohd Najib Tun Abul Razak, Prime Minister of Malaysia paid an official visit to India from 19 to 23 January 2010. During the visit, following agreements/MoUs were signed between the two countries:

1. Extradition Treaty

2. Memorandum of Understanding on Higher Education

3. Malaysia-India Capital Market Collaborative Agreement between the Securities and Exchange Board of India (SEBI) and Securities Commission (SC) of Malaysia.

The Malaysian PM was accompanied by a large delegation comprising several Cabinet Minister, Deputy Ministers, Chief Ministers, Members of Parliament, senior officials as well as media and business delegation.

India, South Korea signs 4 MoUs

During the state visit of South Korean President H.E. Mr. Lee Myung-bak to India (24-27 January 2010), following agreement and MoUs were signed:

1. Agreement on the Transfer of Sentenced Persons

2. MoU on Cooperation in Information Technology and Services

3. Programme of Cooperation in the Fields of Science & Technology for the period 2010-2012

4. MoU for Cooperation in the Peaceful Uses of Outer Space

President Lee was the Chief Guest at the celebrations to mark 60^th Anniversary of the Republic Day of India.

India, Japan to develop solar city

In a meeting between the visiting Japanese delegation led by Japanese Minister for International Affairs and Communications, Kazuhiro Haraguchi, and Union Minister for New and Renewable Energy, Farooq Abdullah, both sides decided to jointly develop a solar city in India. Both sides also discussed various aspects of cooperation between the two countries in the field of renewable energy including strengthening cooperation in research and development. The solar city project aims to reduce a minimum of 10 per cent of its projected demand of conventional energy at the end of five years through energy efficiency measures and generation from renewable energy installations.

The Union Government has so far given in-principle approval to 34 cities to be developed as solar cities.

Roads and Highways - an important sector for Foreign Direct Investment

Roads and highways play an important role in the economic development of a country. In fact, roads and highways are like the arteries linking the economic, social and cultural life of a country. India has the world’s second largest road network, aggregating over 3.34 million kilometres consisting of expressways, national highways, state highways, major district roads, etc. Nearly 65 per cent of the freight and 86.7 per cent of the passenger traffic is carried by roads. National highways having length of 66590 kilometres in India constitute 2 per cent of the road network and carry 40 per cent of the total road traffic.

Growth Potential

The Government of India has launched major initiatives to upgrade and strengthen national highways through various phases under its ambitious National Highway Development Program (NHDP). The Ministry of Road Transport and Highways has laid down some comprehensive policy guidelines for private-public participation in the highways sector on the basis of Build, Operate and Transfer (BOT) mode. For the road and bridges sector, the Eleventh Five Year Plan envisages a total investment of approximately US$ 78.5 billion over the five-year period starting from 2007-08. The Government has undertaken an ambitious project of constructing 20 kms. of road every day in the country.

According to the Planning Commission, the road freight industry will grow at a compound annual growth rate of 9.9 per cent from 2007-08 to 2007-12. A KPMG report states that investments of the order of US$ 500 billion are expected to take place in the coming years for developing roads and infrastructure in India. According to industry sources, in the next 3-4 years only the country would need an investment of US$ 80 billion of which 45 billion is anticipated from the private sector. As part of a larger plan to improve the infrastructure in the country, the Government has given its nod to 10 road projects which will be built in public-private partnership at an estimated cost of US$ 2.48 billion. The projects are aimed converting the existing highways into four-lane national highways in eight States.

The Public-Private Partnership Appraisal Committee (PPPAC) has approved 15 highway projects worth US$ 3.23 billion. Since its constitution in January 2006, the panel has approved 116 projects costing US$ 23.9 billion. National Highways Authority of India (NHAI), the apex road development agency, has planned to six-lane 6,500 kms. of the Golden Quadrilateral and other high density corridors by 2012 under NHDP-V. It has already awarded five projects with a length of about 900 km to private developers.

In January 2010 alone, the Government approved road projects worth US$ 1.33 billion in five states for upgrading nearly 560 km of four-lane highways into six lanes.

The World Bank has agreed to provide a US$ 3 billion loan for developing national highways which will be utilised to convert 6,372 km of one-lane highways to two-lane, out of the total of 19,702 km of single lane highways in the country. The Asian Development Bank is extending a US$ 420 million loan to the Indian State of Bihar for the upgradation and expansion of the state highway network over a period of 25 years.

Government initiatives

The Government has taken a number of initiatives in the roads and highways sector, namely,

• Allowing 100 per cent foreign direct investment (FDI) under the automatic route in all road development projects.
• With incentives like 100 per cent income tax exemption for a period of 10 years, the NHAI provides grants/viability gap funding for marginal projects, and formulation of model concession agreements among others.
• Investors in identified highway projects permitted to recover investment by way of collection of tolls for specified sections and periods.
• The Government has also announced an increase in the overseas borrowing amount for infrastructure sectors, to US$ 500 million from US$ 100 million.
• In order to tide over the shortage of funds, the Government has proposed priority sector status for road development, allowing private highway developers more funds from banks.

Useful link: Ministry of Road Transport and Highways (Website: http://morth.nic.in)

India-Canada bilateral trade

Bilateral trade figures for the period January-November 2009 are as under:

[Figures in thousand US dollars at the current rate]

Description	Jan-Nov 2008	Jan-Nov 2009	Percentage change
India’s Total Exports	1,907	1,619	(-) 15.1
India’s Total Imports	2,055	1,759	(-) 14.4
Total Trade	3,962	3,378	(-) 14.7

[Source: Statistics Canada]

Global economic recession continues to take its toll on India-Canada bilateral trade. Overall bilateral trade in the first eleven months of 2009 registered a 14.74 per cent decline over the same period last year. India’s exports to Canada during the period January- November in current fiscal were down 15.1 per cent over the same period last year whereas India’s imports from Canada during the same period registered a 14.4 per cent decline.

Two-way investments

India’s Zylong Systems acquired Canadian company Brainhunter Inc. in an auction submitting the highest bid for $ 35 million. Under the terms of auction, Zylog has said it will hire substantially all of the Brainhunter workforce. It, however, told investors that it will outsource some work to India for nongovernmental business if such a move results in savings and also reduce some staff not generating revenues. Brainhunter has more than 1,400 contractors and a core management and support staff of 160 people. While the Canadian company is officially based in Toronto, it traces its roots back to several companies bought by the former Treklogic, including In-business Solutions and Sirius Consulting of Ottawa.

BC-based Cantronic Systems, which manufactures and distributes active and passive CCTV infrared imaging and night vision cameras, announced that that it has received orders for 30 sets of its thermal imaging camera systems from India and Indonesia. The orders are valued at US$1.3 million. The company’s camera systems are used for monitoring, protecting and managing facilities and people. Cantronic has supplied systems for use in military, homeland security, medical and industrial applications.

Minaean International Corp., a Vancouver-based developer of quick-build light gauge steel technologies, announced that its wholly-owned subsidiary, Minaean Habitat (India) Pvt. Ltd. (MHI), was awarded a purchase order for the prefabrication and installation of 75 units of its steel bus queue shelters in Bangalore, India. This purchase order will be prefabricated in Minaean’s Mumbai plant and then shipped to and installed at site. To date, MHI has produced and installed over 400 bus queue shelters in a number of cities throughout India including Mumbai, Bangalore and Hyderabad.

Montreal-based Dialogic Corporation announced that Mahanagar Telephone Nigam Ltd. (MTNL) of India has selected the 3G mobile video (Value Added Services) solutions of Dialogic partners, Spice Digital and Bay Talkitec, to provide enhanced video services to their 3G subscribers. These VAS solutions are built on the Dialogic VisionTM CX Video Gateway and Dialogic Host Media Processing (HMP) Software Release 4.1LIN. Mahanagar is a large mobile telecommunications operator in India. Dialogic provides technologies based on open standards that enable innovative mobile, video, IP, and TDM solutions for network service providers and enterprise communication networks.

Quebec City-based H2O Innovation Inc., a water treatment solutions company providing custom designed systems for municipal, commercial and industrial applications, and Chembond Chemicals of Mumbai, India, a manufacturer and supplier of specialty performance chemicals to industries across India and a provider of technical and operation & maintenance services, signed a joint venture agreement to create H2O Innovation India Limited. The new company will operate out of facilities located in Chembond’s centre in Mumbai, and be dedicated to providing water treatment systems and maintenance services to the Indian industrial and commercial markets for the production of boiler feed and process water, for industrial wastewater reclamation and reuse, as well as for wastewater treatment. Chembond will own 51% of the shares of the joint venture and H2O Innovation will own the remaining 49%.

Vancouver-based Minaean International Corp., a developer of alternative building technologies using light-gauge steel, announced that its wholly owned subsidiary, Minaean Habitat India Pvt. Ltd. (MHI), has secured a contract for the turnkey design and construction of the hostel and library covering a total area of 24,000 sq. feet for a new medical college campus in Valsad, Gujarat, India. The new college has been sanctioned by Gujarat’s Health & Family Welfare Department. The contract represents revenue of over C$1.04 million for MHI.

Tata Teleservices Limited, a dual-technology telecom service provider in India, and Toronto-based Iseemedia Inc. have launched a new service, ‘Push 4 All Mail’, for all its Tata Indicom and Tata DOCOMO customers in India. Push 4 All Mail is a service engineered by Iseemedia, a Canadian software development company focused on the commercialization of its email service delivery platform to the mass market. The Push 4 All Mail platform is designed to leverage an operators’ existing infrastructure and provide a very cost-effective, yet fully-featured mobile email solution even on low-end mobile devices with the basic SMS interface. ‘Push 4 All Mail’ will enable Tata Indicom and Tata DOCOMO customers to access their Gmail, Hotmail or Yahoo emails via SMS.

Visits

From India

Dr. S. Natesh, Senior Advisor & Head, International Collaboration, Department of Biotechnology, India visited Canada for the Canada-India B2B Partnership Summit on Life Sciences held in Vancouver during 21-24 January 2010. He was accompanied by Dr. A. Surolia, Director, National Institute of Immunology, New Delhi, Dr. Dinkar M. Salunke, Director, National Institute of Immunology, Faridabad, Dr. Rakesh tuli, Director, National Botanical Research Institute, Lucknow, Dr. D Sengupta, Senior Advisor from Confederation of Indian Industry and representatives of reputed Indian biotech companies. In his speech at the opening ceremony of the event, Dr. Natesh gave an overview of Indian biotech sector highlighting the significant achievements made in the growth and application of biotechnology in the broad areas of agriculture, healthcare, animal sciences, environment and industry. A roundtable discussion on business-to-business was also held between experts from India and the British Columbia.

Mr. Vijay Madan, Joint Secretary, Ministry of Culture, India visited Canada during 25-29 January 2010 to hold discussions with Canadian officials regarding the Canadian Art Exhibition to be held in New Delhi during the Commonwealth Games 2010. He also held discussions with concerned Canadian officials on the draft MoU for Cultural Cooperation between India and Canada. He was accompanied by Dr. Anupa Pande, Professor, and Mr. K K S Deori, Curator of the National Museum, India.

From Canada

Hon. Mr. Jean Charest, Premier of Quebec Province, led a high powered delegation to India (New Mumbai, Bangalore, Delhi) from 31 January to 06 February 2010 consisting of more than 150 members largely drawn from the business circles and Presidents of Quebec based universities and senior officials of the Province. Mr. Pierre Arcand, Provincial Minister of International Relations also accompanied the Premier. The focus of the visit was to forge cooperation in hydro-power, energy, life sciences, aerospace, education, environment, infrastructure, multimedia, R&D, biotech, pharmaceutical and ICT. In New Delhi, Premier Charest attended the Delhi Sustainable Summit 2010 during 5-7 January and addressed the Summit as one of the Speakers.

During Premier Charest’s stay in Bangalore, altogether nine agreements were signed. Several of the agreements are between universities and other educational institutions. They include agreements by Concordia University, National Institute of Aeronautics and McGill University with Indian partners and focus on training in areas such as aerospace, management and agriculture. An agreement worth approximately C$7 million was also signed by Dorval-based SDP Components and Nokia Siemens Network for the supply of hyperfrequency multiplexers. SDP is currently building a plant in Chennai, slated for completion in April.

The Government of Quebec also signed an agreement with the Shastri Indo-Canadian Institute concerning exemptions from additional tuition fees for Indian students who study in Quebec. In Mumbai, Premier Charest made an announcement at the Mumbai University that effective from February 14, any student who obtains a bachelor, asters or PhD degree from a Quebec institute will automatically receive a certification of selection to become a citizen of Canada.

The Government of Quebec signed an agreement with the Shastri Indo-Canadian Institute concerning exemptions from additional tuition fees for Indian students who study in Quebec. 29 students from India will study in Quebec paying only the resident tuition fee and scholarships will be extended to four deserving Ph. D students from India.

In Mumbai, the first meeting of the Quebec-Maharashtra Steering Committee was held on 1 February 2010 in terms of the Joint Declaration on Cooperation between the Government of Quebec and the Government of Maharashtra signed in January 2006. During the meeting, both sides agreed to encourage partnerships and trade between companies of the two sides and exchanged details of trade missions that are being planned on either side over the next two years which include participation in trade fairs in ICT, entertainment, energy and innovation sectors.

In Delhi, Premier Charest had a meeting with Commerce and Industry Minister Anand Sharma and a quiet dinner with Union Minister for Transport and Infrastructure Mr. Kamal Nath. The Premier and his delegation also held business-to-business meetings with well-known Indian business houses in Mumbai, Bangalore and New Delhi.

On 4 February, an MoU was signed between TERI University of India and McGill University in Quebec focussing on promoting cutting-edge research concerning climate change adaptation and mitigation, urban transportation and governance, and biofuels and bio-resources. The agreement was signed in the presence of Dr. R K Pachauri, Chancellor of TERI University, Premier of Quebec Jean Charest and Quebec Minister for International Relations Pierre Arcand. McGill University also signed memorandums with the University of Agricultural Sciences, Dharwad, the University of Agricultural Sciences, Bangalore, the National Institute of Mental and Neurosciences, and the National Centre for Biological Sciences. In addition to joint research collaborations, the five agreements also provide for regular student exchanges and workshops.

Concordia University in Montreal signed partnership agreements with eight educational institutions in India, including TERI (The Resource and Energy Institute) University, the National Institute of Design, Indian Institute of Management, Bangalore, and VIT (formerly the Vellore Institute of Technology) University. The educational and research and development collaborations are in several areas of expertise including: aerospace engineering, information and communication technologies, life sciences, sustainability, and energy and the environment.

Senator Donald Oliver from Nova Scotia Province led an official Atlantic Mission to India (New Delhi, Mumbai) from 15-23 January 2010 to attend the Global Economic Summit planned in Mumbai. The delegation included Minister McKinley, Minister of Transportation and Infrastructure Renewal of Prince Edward Island, Monica Arab from the Department of Economic and Rural Development of Nova Scotia, Mr. Michel Tetu, Director General and other senior officials of the Atlantic Canada Opportunities Agency (ACOA), and businessmen representing biosciences, alternate energy, food processing, education, seafood, life sciences and digital media sectors.

In New Delhi, the delegation held meetings with the Union Minister of Food Processing Industries Mr. Subodh Sahay and senior officials in the Shipping and Transport Ministries. Senator Oliver also hosted an education roundtable in New Delhi with a view to look at India’s needs for education and Canada’s potential to provide the services required. In Mumbai, in addition to participating at the Global Economic Summit, the delegation had a meeting with Maharashtra Minister of Industries.

Forthcoming Visits

From India

Dr. Vjay Kelkar, formerly Chairman, Thirteenth Finance Commission, India will visit Ottawa on March 1-2, 2010. Dr, Kelkar has been appointed as the Chairman of the Forum of Federations with effect from 1 January 2010 for a period of three years. This will be his first official visit to the Forum’s headquarters in Ottawa. He will also give a lecture on ‘Recent Trends in Federalism in India’ at the IDRC, Ottawa on 1 March 2010. Dr. Kelkar has been elected as Chairman of the National Stock Exchange in India.

Mr. Ratan Tata, Chairman of the Tata Group will visit Canada (Toronto) on 19 February 2010 to inaugurate the Thomas J Bata Lecture Series on Responsible Capitalism. The Canada-India Business Council (CIBC) will also host a cocktail reception in honour of Mr. Tata on that day.

From Canada

Mr. Mark Carney, Governor, Bank of India will visit India (Mumbai, New Delhi) from 12-17 February 2010. He will attend the Reserve Bank of India’s first International Research Conference to be held in Mumbai. In Delhi, he is expected to call on Minister(s) and meet senior officials in the Ministry of Finance, etc.

Rt. Hon. Beverly McLachlin, Chief Justice of Canada, Chief Justice of Canada accompanied by Justice Morris J Fish, Justice Marshall Rothstein and Legal Officer Witold Tymowski, all from the Supreme Court of Canada will visit India from February 22 to 26, 2010 as part of an ongoing India-Canada legal exchange mechanism. The focus of the visit will be on defences in the law of defamation and extra-territorial boundaries of domestic legal protection.

For “India Aviation 2010”, the second International Exhibition and Conference on Civil Aviation Sector which is being organised by the Ministry of Civil Aviation, India in collaboration with the Federation of Indian Chambers of Commerce and Industry from March 3 – 7, 2010 in Hyderabad, the Indian Civil Aviation Ministry has proposed to invite Hon’ble Mr. John Baird, Minister of Transport, Infrastructure and Communities, Canada to attend the event.

Trade Fairs/Events/Exhibitions

“16^th India Carpet Expo” from 23-26 February, 2010 at Pragati Maidan, New Delhi and an “Exhibition-cum-Buyer Meet” from 27-28 February, 2010 at Jaipur, India.

India Carpet Expo has become a world fame international fair for the buyers of handmade carpets, rugs and other floor coverings. The event is all set to receive overseas carpet buyers from all corners of the world to witness the heartening, catchy, cozy bizarre of antique, modern, contemporary and trend-setting display of handmade carpets from every corner of the country. The India Carpet Expo also provides unique pick and choose opportunity to all kinds of overseas buyers, wholesalers or retailers under one roof.

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

“International Handloom & Handicraft Fair” from 24-26 February, 2010 at Bhaubaneswar, Orissa India.

The IHHF will showcase craft and loom based lifestyle products of contemporary international standard mainly for direct sourcing by international buyers. The products are made by the artisans and weavers mainly residing in rural Orissa. About 100 exhibitors will participate to showcase their products. A special display of products of master craft persons and weavers has been arranged so that the International buyers will have the opportunity to see the products of artistic excellence.

The fair will display the following products: Tribal Jewellery, Metal Art Ware, Wood & Stone Carving, Handloom Specialities, Ikat, Yarn Tie & Dye, Natural Silk, Natural Fibres, Home Furnishing, Cane & Bamboo and Table Ware.

[For further information, please access website: www.ihhfbhubaneswar.com]

“World Dental Show 2010” from 29-31 October, 2010 at Bandra-Kurla Complex, Mumbai, India.

The Indian Dental Association (IDA) is organising the World Dental Show 2010 which is specifically designed to showcase a comprehensive range of state-of-the-art products, services and innovative technologies that cater to the dental profession around the globe. During the event, oral health experts from India and abroad will gather to share information and insights on the latest developments in dentistry and treatment, making it one of its kind opportunity to analyze and leverage dental care in India.

[For further details, please access website: www.wds.org.in or send an email at tejal@ida.org.in]

Global Tender Notices

Tender Notice

The Council of Scientific & Industrial Research, Chennai, India invites sealed tenders under two bid system from reputed manufacturers or their accredited/sole-selling agents/dealers for following items

S.No	Description of Item	EMD	Critical Dates
1.	A. Supply, installation of equipments and realization of temperature of fixed point cells for temperature primary calibration and integration of complete system as per the enclosed specifications in Annexure – I B. Supply of precision thermometry AC bridge, as per the enclosed specification in Annexure II	US$ 3830	Last Date for Submission of Tender: 09.02.2010
2.	Supply, Installation and Commissioning of IP based Surveillance System.	Rs. 40, 000	Last Date for Submission of tender: 18.02.2010 Technical Bid Opening on: 19.02.2010

[For complete details of the tender and tender documents please access ONGC’s website: www.csirmadrascomplex.gov.in]

Tender Notice No. T/T206/2009/7255/W

The Heavy Electricals Equipment Plant (HEEP) located in Haridwar, India invites tender for “Fabrication and Finish Machining of LP Inner Outer and Inner Inner Casing” as per details given below:

Quantity: 16

Cost of Tender Document: Rs. 2000/-

Earnest Money Deposit: Rs. 1,00,000

The closing of tender is on 25 February, 2010 up to 1345 hrs (IST) and the tender will be opened on the same day at 1400 hrs (IST).

[For complete details of the tender and tender documents please access website: www.bhelhwr.co.in or www.bhel.com]

Global Tender Notice No. Q18KC10002

The Oil and Natural Gas Corporation Limited invites open ICB e-tender, under two bid system, for the “Procurement of 01 No. High Pressure Flexible Hose” as per details below:

Earnest Money Deposit: $ 9386.00

The closing of tender is on 19 March, 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 www.ongctenders.net]

Global Tender Notice

The Mineral Exploration Corporation Limited invites sealed tenders in two parts from the manufacturers or their accredited agents for the “Supply of Multishot Bore Hole deviation survey equipment capable of directly indicating the angle and magnetic bearing of bore hole path, detecting any angular values i.e. 0° to 90° and entire range of magnetic bearing of teh hole, carrying out deviation survey of bore hole ranging from 0 to 1500 meters depth in one stretch of lowering trip etc” as per details below:

Quantity: 01 Set

Tender Fee: Rs. 2000/-

Earnest Money Deposit: 20000/-

The closing of tender is on 18 February, 2010 up to 1430 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 website www.mecl.gov.in]

Tender Notice

The Bharat Heavy Electricals Limited invites open tenders for procurement of following capital equipment and system:

Name of Equipment	Qty	Reference	Tender Closing Date	Tender Opening Date
1.5 TR Split Air Conditioner	34	MSSM900022	22.02.2010 1300 Hrs	22.02.2010 1330 Hrs
1250 KVA Dry Type Cast Resin OLTC Transformer with RTCC	2	MSSM900023	22.02.2010 1300 Hrs.	22.02.2010 1330 Hrs.
Bus Bar Processing Center as per Specification EDN/CEFAB/BPC/03 REV 01	2	MANM900001	26.02.2010 1300 Hrs.	26.02.2010 1330 Hrs.
Resistance Spot Welding Machine as per Specification EDN/CEFAB/SPW/01 REV 00	1	MANM900002	24.02.2010 1300 Hrs.	24.02.2010 1330 Hrs.
Double Column Band Saw as per Specifications EDN/CEFAB/BNDSW/01 REV 00	1	MANM900003	24.02.2010 1300 Hrs.	24.02.2010 1330 Hrs.
Flexible Bus Bar Processing Center as per Specification EDN/CEFAB/BPC/01/IT01 REV 01	2	MANM900004	26.02.2010 1300 Hrs.	26.02.2010 1330 Hrs.
Flexibar Insulation Stripping Tool as per Specification EDN/CEFAB/BPC/01/IT02 REV 01	2	MANM900005	26.02.2010 1300 Hrs.	26.02.2010 1330 Hrs.

[For complete details of the tender and tender documents please access website www.bhel.com or www.bheledn.com or www.tenders.gov.in

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Published by : High Commission of India, Ottawa, Canada

Editor : Deputy High Commissioner

Sub-Editor : Second Secretary (Com)