A load of crap from an idle brain

The next 7 years (2010 – 2017) of infrastructure investments in India would see an investment of almost a trillion dollars (approx 50 lakh crore rupees). Lots of money to be made for all the corrupt fellas as well as for the ones who want to earn legally.

And the infrastructure push just for the next one year is $140 billion (approx 7 lakh crores). Once in the lifetime of the growth of a country you can see such an explosive growth.  If you can identify the correct companies and make investments, it will give you the kind of returns which you would have never imagined.

India is roaring towards an infrastructure boom and plenty of jobs will be created like never before as capital expenditure in the next financial year is expected to surge up to a whopping Rs 700,000 crore or about 10 per cent of the expected gross domestic product of about Rs 70,00,000 crore. Companies in auto, power, railways, irrigation, airports and ports sectors are on a major expansion spree and Indian banks and financial institutions are pooling in massive resources.

But this may not be enough and some bankers expect companies to access other financing avenues such as capital market and overseas borrowing. Yet others feel that financial closure of many projects might have already been achieved and the implementation might not lead to fresh sanctions.

There is an overall economic recovery, thanks to improving operating profits and favourable equity market conditions this year. Almost every infrastructure sector is witnessing investments driven largely due to government support.

Both Crisil and the Centre for Monitoring Indian Economy (CMIE) have nearly doubled their capital expenditure (capex) estimates for the next fiscal year to a whopping Rs 6,60,000 crore and Rs 7,00,000 crore, respectively.

“Every capacity addition activity leads to job creation, it cannot be a jobless growth. I cannot put a number on how many jobs would be created from the projected Rs 7,00,000 crore capex spending during 2010-11, but for every industrial job created, the multiplier effect in form of other jobs like contracts, etc, is 1:4,” says Ajit Ranade, chief economist of Aditya Birla group.

Some of these investments include

NTPC – 16,400 crore investment to expand coal based electricity production by 4100 MW
Mahindra & Mahindra – 2500 crores at Chakan near Pune to make 3 lakh vehicles annually
Tata Motors – 1500 crores at Sanand in Gujarat to make the Nano car
Renault Nissan – $990 million (approx 4500 crores) in Chennai to make 4 lakh cars annually
Maruti Suzuki – 2500 crores investment in Rohtak, Haryana
JSW Energy – 4200 crores
GVK Power – 3200 crores
Tata realty – 1370 for highways
IRB – 1824 crores for highways
Jindal – 47,000 crores for coal to liquid fuel plant & thermal power plant in Orissa
Tata -  21,000 crores project in Kalinganagar, Orissa

“There would be huge money coming as foreign direct investment in the next fiscal while the external commercial borrowing norms are expected to be relaxed further. Besides, India’s savings rate is 34-35 per cent of GDP, which translates into huge savings at the projected Rs 70,00,000 crore GDP for fiscal 2010-11. Hence I think, despite having high borrowing plans from the India Inc, capex spending by private and public sectors could be easily absorbed,” says Ranade of Aditya Birla.

Read the full articles here and here

Above picture courtesy: Abhijitkar

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Singapore on Friday conferred its honorary citizenship on Ratan Tata, chairman of the Tata Group, in recognition of his abiding business relationship with the island nation and his contribution to the growth of high-tech sectors in Singapore.

Tata is the first Indian to receive the honorary citizenship of Singapore. Singapore President S.R. Nathan presented the award to Tata at a solemn ceremony at the presidential palace, Istana. The ceremony was attended by Singaporean government ministers, prominent citizens and top executives of Tata Sons.

“Singapore welcomes global talent who can add value to Singapore,” said Deputy Prime Minister Wong Kan Seng.   He described Tata as an “exemplary business leader” who had helped propel Singapore’s economy by making extensive contributions to the city state’s development. “The award is a reflection of Singapore’s gratitude,” he said.

Tata said he was “deeply honoured” to receive the award. “I am pleased to have been able to play a small role in the development of Singapore’s economy.”  He described the award as a privilege for the Tata Group, adding that he hoped “future collaborations would bring forth greater synergies”.

Tata has had a decades-long association with Singapore. As a young man he had worked at one of the Tata companies in Singapore way back in the 1960′s, long before he returned to India to rise up the corporate ladder at Tata Sons.

In the decades since then he had retained his links with Singapore, strengthening business ties in the information technology, auto components and precision engineering sectors.  The citation for the award said, “Over the years, Mr Tata’s business acumen has helped Singapore tap into higher value-added growth sectors.”

The honorary citizenship is among a host of honours that Tata has received in recent months. In November 2007 he was listed among the 25 most powerful people in business by Fortune magazine. In May this year, Tata figured in Time magazine’s 2008 “List of the World’s 100 Most Influential People.”

Singapore instituted the honorary citizenship award in 2003 to recognise foreigners who have made extensive services to Singapore or who have made a significant impact in the areas of business, science and technology, information communications among other sectors. The life term award is the country’s highest recognition for a non-Singaporean.

News courtesy: NDTV Profit

PS: This is the first post composed and posted via Google Chrome

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