I
Theme
of the week:
Corporate Investment: Growth in 2004-05 and Prospects for 2005-06*
Introduction:
This
note summarises of RBI study on the private corporate investment during
2005-06**. The study attempts to capture in some detail, growth of fixed
capital investment in the private corporate sector in 2004-05 based on the
projects sanctioned assistance by banks and financial institutions during
2004-05 and the previous years. Capital investment is essential for
modernisation of productive capacity and adding new capacity for current
and future industrial growth.
According
to the study there was a buoyant growth in investment by corporate sector
during 2004-05 over 2003-04. Keeping up with the trend in 2003-04, the
corporate sector had undertaken various expansion, modernisation,
acquisition and upgradation plans requiring a great amount of investment.
Banks and financial institutions have played a crucial role in providing
loans for these companies.
Growth
of Corporate investment 2004-05
The estimated corporate investment in the year 2004-05 has been
worked out by aggregating the data on the time phasing of capital
expenditure over the individual years for the duration of projects. For
this purpose, all the corporate projects, which have been sanctioned
financial assistance by the banks and financial institutions in 2004-05
and in the previous years were considered.
In cases where a company approached more than one institution for
project assistance, care was taken to avoid double counting in the
compilation. Efforts were made to incorporate the revisions in the phasing
of projects sanctioned earlier, to the extent possible. The data
consolidated on these lines, are presented in Table 1. When horizontally
read, it shows the capital expenditure that are expected to be incurred in
various years on the projects for which assistance has been sanctioned in
a given year. Vertically read, it shows the capital expenditure that are
expected to be incurred in a year on the projects which were assisted in
that year and in the previous year.
Capital
expenditure of Rs 32,101 crore are expected to have been incurred during
2004-05 in case of projects sanctioned up to 2003-04 (coloum 12, Table
1).
Thus, the total capital expenditure that might have been incurred during
2004-05 is estimated at Rs
69,140 crore. The capital expenditure planned by the private corporate
sector during 2004-05 is likely to have risen by 40.6 per cent as compared
with the rise of 17.7 per cent in 2003-04.
Industrial
pattern of Projects
Table
2 depicts industry wise classification of projects and cost in 2003-04 and
2004-05.
Table
2: Industry-wise distribution of projects and their cost in
2003-04 and 2004-05
|
|
|
|
2003-04
|
2004-05
|
|
|
Industry
|
Number
of Projects
|
Project
cost Amount
|
Per
cent share
|
Number
of Projects
|
Project
cost Amount
|
Per
cent Share
|
|
|
|
|
(Rs. crore)
|
|
|
(Rs.
crore)
|
|
1.
|
Infrastructure
(I + ii + iii)
|
57
|
41,210
|
56.5
|
76
|
32,586
|
33.5
|
|
i)
|
Power
|
35
|
9,615
|
13.2
|
61
|
13,711
|
14.1
|
|
ii)
|
Telecom
|
4
|
28,688
|
39.3
|
4
|
15,832
|
16.3
|
|
iii)
|
Storage
& Ports
|
18
|
2,907
|
4.0
|
11
|
3,043
|
3.1
|
2.
|
Engineering
(i + ii + iii + iv)
|
134
|
14,257
|
19.5
|
189
|
29,299
|
30.1
|
|
i)
|
Metals
& Metal Products
|
104
|
12,463
|
17.1
|
141
|
27,331
|
28.1
|
|
ii)
|
Automobile
& Auto-ancillaries
|
15
|
936
|
1.3
|
25
|
1,298
|
1.3
|
|
iii)
|
Electrical
equipments
|
8
|
655
|
0.9
|
7
|
263
|
0.3
|
|
iv)
|
Non-electrical
machinery
|
7
|
204
|
0.3
|
16
|
408
|
0.4
|
3.
|
Chemicals
( i + ii )
|
39
|
1,506
|
2.1
|
38
|
2,822
|
2.9
|
|
i)
|
Petrochemicals
& chemicals
|
23
|
1,124
|
1.5
|
16
|
1,814
|
1.9
|
|
ii)
|
Pharmaceuticals
& drugs
|
16
|
382
|
0.5
|
22
|
1,008
|
1.0
|
4.
|
Cement
|
10
|
1,664
|
2.3
|
14
|
3,642
|
3.7
|
5.
|
Ceramics
|
14
|
328
|
0.4
|
10
|
1,161
|
1.2
|
6.
|
Minerals
|
9
|
123
|
0.2
|
20
|
2,235
|
2.3
|
7.
|
Textiles
(other than Jute)
|
103
|
3,676
|
5.0
|
126
|
7,458
|
7.7
|
8.
|
Paper
& paper Products
|
15
|
584
|
0.8
|
17
|
2,330
|
2.4
|
9.
|
Hotels
and restaurants
|
21
|
1,434
|
2.0
|
20
|
2,254
|
2.3
|
10.
|
Services
(Transport, Hospitals
|
|
|
|
|
|
|
|
and
Entertainment)
|
38
|
2,251
|
3.1
|
45
|
4,201
|
4.3
|
11.
|
Food
Products/Processing
|
32
|
558
|
0.8
|
47
|
1,745
|
1.8
|
12.
|
Information
Technology
|
17
|
1,633
|
2.2
|
16
|
979
|
1.0
|
13.
|
Others*
|
102
|
3,716
|
5.1
|
104
|
6,557
|
6.7
|
|
|
Total
|
591
|
72,940
|
100.0
|
722
|
97,270
|
100.0
|
|
Source:
Reserve Bank of
India
Bulletin, August 2005
|
|
|
|
|
|
|
|
|
|
|
|
The
projects are divided into three industries namely, infrastructure,
engineering and chemicals. The share of infrastructure industry among
projects was lower in 2004-05 at 33.5 per cent compared to 56.5 per cent
in 2003-04, though there has been rise in the number of projects in the
sector. In case of infrastructure industry, the share of telecom has
declined drastically to 16.3 per cent in 2004-05 as compared to 39.3 per
cent in 2003-04. However, the share of power sector has shown marginal
improvement to 14.1 per cent in 2004-05 as against 13.2 per cent in
2003-04.
Among
industries, the share of engineering sector has surged to 30 per cent in
2004-05 as compared to 19.5 in 2003-04, and investment boom has been
witnessed in metals and metal products. The share of automobile and auto
ancillary has remained same though their has been rise in the number of
projects and the cost of projects. The share of chemical industry
exhibited a marginal rise of 2.9 per cent in 2004-05 compared to 2.1 in
2003-04. A marginal rise has been witnessed in the share of cement
industry to 3.7 per cent in 2004-05 as compared to 2.3 per cent in
2003-04. The share of textile industry also has increased to 7.7 per cent
in 2004-05 over 5.0 per cent in 2003-04. In deed, removal of quota
constraint from January 2005 has opened up substantial opportunities for
the textile sector, which is expecting a rise in investment. However, a
decelerating trend has been witnessed in the Information Technology (IT)
industry as the share came down to just 1.0 per cent in 2004-05 from 2.2
per cent in 2003-04.
State-wise
distribution of projects
Table
3 shows the classification of projects based on the location of the
projects in respective states. In 2004-05 the investment has remained
concentrated to only few states. Among all the states, Maharashtra is
leading with 12.3 per cent share, with an amount of Rs 11927 crore
followed by Gujarat (11.3 per cent), Tamil Nadu and Chhattisgarh (10.2 per
cent each) in 2004-05. The share of Orissa in total investment has risen
drastically from just 2.1 in 2003-04 to 9.5 in 2004-05.
The companies are showing great interest in setting up plants in
Orissa because of availability of erstwhile, unexploited coal mines and
iron ore.
Table
3: State-wise distribution of projects and their cost during
2003-04 and 2004-05
|
|
|
2003-04
|
2004-05
|
|
|
Number
of projects
|
Project
cost Amount
|
Per
cent share
|
Number
of Projects
|
Project
cost Amount
|
Per
cent Share
|
|
State
|
|
(Rs.
crore)
|
|
|
(Rs.
crore)
|
|
1.
|
Andhra
Pradesh
|
56
|
7,191
|
9.9
|
38
|
3,330
|
3.4
|
2.
|
Chhattisgarh
|
15
|
5,664
|
7.8
|
41
|
9,912
|
10.2
|
3.
|
Delhi
|
19
|
3,158
|
4.3
|
12
|
1,471
|
1.5
|
4.
|
Gujarat
|
73
|
6,266
|
8.6
|
81
|
10,983
|
11.3
|
5.
|
Haryana
|
17
|
293
|
0.4
|
21
|
1,440
|
1.5
|
6.
|
Himachal
Pradesh
|
13
|
1,218
|
1.7
|
17
|
1,358
|
1.4
|
7.
|
Karnataka
|
35
|
1,572
|
2.2
|
50
|
6,641
|
6.8
|
8.
|
Madhya
Pradesh
|
9
|
1,791
|
2.5
|
19
|
766
|
0.8
|
9.
|
Maharashtra
|
69
|
6,809
|
9.3
|
103
|
11,927
|
12.3
|
10.
|
Orissa
|
19
|
1,512
|
2.1
|
30
|
9,256
|
9.5
|
11.
|
Punjab
|
30
|
933
|
1.3
|
32
|
2,609
|
2.7
|
12.
|
Rajasthan
|
47
|
2,270
|
3.1
|
26
|
1,587
|
1.6
|
13.
|
Tamil
Nadu
|
67
|
2,766
|
3.8
|
110
|
9,929
|
10.2
|
14.
|
Uttar
Pradesh
|
39
|
2,548
|
3.5
|
23
|
1,348
|
1.4
|
15.
|
West
Bengal
|
29
|
1,057
|
1.4
|
40
|
2,324
|
2.4
|
16.
|
Multiple
States
|
14
|
26,775
|
36.7
|
33
|
18,893
|
19.4
|
17.
|
Others*
|
40
|
1,116
|
1.5
|
46
|
3,497
|
3.6
|
|
Total
|
591
|
72,940
|
100.0
|
722
|
97,270
|
100.0
|
Source:
RBI Bulletin, August 2005
|
Thus according to the study, the
overall investment climate that distinctly improved in 2003-04 stayed
favourable during 2004-05. The upward momentum in corporate investment in
2004-05 was reinforced by a variety of factors including
accelerated growth in the industrial sector, infrastructure development in
the form of roads, ports, telecom and power, high credit off-take from the
banking sector, and benign interest and inflation rates.
Table
4 reveals purpose wise distribution of project and projects cost in
2004-05 and 2003-04. The table exhibits that in 2004-05, there has been a
33.4 per cent rise in the cost of projects,
Table
4: Purpose-wise distribution of Projects and their cost during
2003-04 and 2004-05
|
|
2003-04
|
2004-05
|
Purpose
|
No
of Projects
|
Project
cost
|
No
of Projects
|
Project
cost
|
|
|
(Rs
Crore)
|
|
(Rs
Crore)
|
New
|
322
|
47414
|
344
|
40829
|
Expansion
|
206
|
22506
|
285
|
45552
|
Over
run
|
2
|
157
|
6
|
145
|
Diversification
|
4
|
94
|
8
|
2737
|
Modernisation
|
22
|
1150
|
45
|
6327
|
Others
|
35
|
1619
|
34
|
1680
|
Total
|
591
|
72940
|
722
|
97270
|
Source:
RBI Bulletin, August 2005
|
which
have been financed by the banks or financial institutions over 2003-04.
These institutions have provided financial assistance to 722 projects in
2004-05 at a cost of Rs 97,270 crore. The number of new projects was
higher in 2004-05 as compared to the previous year. An enormous rise both
in terms of number of projects and the amount sanctioned has been
witnessed in the expansion and modernisation projects.
A
rising trend has been seen in the bank credit to the corporate sector in
the fiscal year 2004-05 over 2003-04. According RBI Report on ‘Trend and
Progress of Banking in India 2004-05, non-food credit has jumped by 28.8
per cent to Rs 9,31,466 crore. Bank credit to small-scale
industries has also risen by 15.6 per cent to Rs 76,114 crore and large
industries borrowed Rs 2,90,180 crore on March 2005 as compared with Rs
2,47,210 crore in the same period previous year. A buoyant rise in the
capital expenditure to Rs 69,160 crore in 2004-05, a rise of 40.6 per
cent, from Rs 49,157 crore in 2003-04 when rise was at 17.7 per cent over
in 2002-03. The Indian economy had undergone through a prolonged period of
recession during 1998-2001 incurring huge amount of losses. There was a
declining trend in the capital expenditure during 1997-98 to 2001-02.
Prospects
for 2005-06
According
to the RBI study, the prospects for the Indian economy remain encouraging,
given the base effect arising from low growth last year and the fact that
rabi crop now is almost as important as kharif and agriculture is expected
to contribute positively to the overall growth in 2005-06. There has been
healthy growth in non-food credit off-take that supports the momentum in
industrial production coupled with buoyancy in export growth. Business
surveys point to high levels of both business confidence and capacity
utilisation. Since business conditions remain conductive to support
corporate investment demand and lending rates remain low while corporate
balance sheets are generally in a sound position, higher amount of
investment on new projects for what assistance has been sanctioned
assistance seems to be very likely. In other words, the year 2005-06 may
witness an increase in corporate investment when compared to 2004-05.
The above estimates are related only to the private corporate
sector based on the proposals submitted to the banks and financial
institutions and aggregate private sector investment in the economy could
be much larger. There are however, no other proximate indicators that
provide information on aggregate investment in the private corporate
sector.
The study does not cover estimates before 1994-95 as they include
previous projects sectioned after it. Even so, the estimates made in the
study by RBI in case of the corporate sector in the past years have
provided useful broad macro-economic trends. For example, the upsurge of
investment activities in 1994-95 (25.5 per cent) and 1995-96 (53.3 per
cent) were well represented in the data and in RBI study. Most of the
industries have experienced an investment crunch continuously during
1996-97 to 2002-03 that had been depicted in the study. The rate of growth
of investment reduced during this period.
Finally,
all the indicators have suggested an upward trend in the investment during
2003-04 and 2004-05, particularly in the, private corporate sector which
is clearly seen from the study. The rate of growth of investment was 17.7
per cent in 2003-04 and zoomed to 40.6 per cent in 2004-05.
**
The approach adopted is based on the methodology developed by Dr. C
Rangarajan in an article captioned ‘Forecasting Capital Expenditure in
the Corporate Sector’ published in the December 13, 1970 issue of the
‘Economic and Political Weekly’.
Highlights of Current Economic Scene
AGRICULTURE
Tobacco
exports during April-October 2005 have touched 97,809 tonne at Rs 774.08
crore against 87,739 tonne, worth Rs 746.65 crore, recorded during
corresponding period of last year. The exports comprised of 85,885 tonne
of unmanufactured tobacco worth Rs 601.02 crore and 11,924 tonne of
tobacco products valued at Rs 173.06 crore. While the export of
unmanufactured tobacco was up by 17 per cent in terms of quantity and 14
per cent in terms of monetary value, exports of tobacco products, however,
declined in 2005-06 by 16 per cent quantity-wise and 12 per cent
value-wise. West Europe continued to the largest importer of
unmanufactured tobacco with its import share of about 33 per cent,
followed by
East Europe
(import share of 27.3 per cent) and South & South East Asia (import
share 24.3 per cent).
Government
wheat stocks on December 05, 205 have stood at 74.3 lakh tonnes compared
with 107 lakh tonnes a year ago and 146 lakh tonnes two years ago. This is
also much lower than the buffer stock norm of keeping 110 lakh tonnes as
on Oct 01, 05 and 82 lakh tonnes on Jan 01, 06. Domestic wheat prices are
rising on account of supply crunch and they are expected to strengthen
further since there is yet time for the new crop to arrive in the market.
The wheat stocks with the government on April 01, 2006 are expected to
fall down to around 10 lakh tonnes, much lower than the minimum buffer
stock level of 40 lakh tonnes. However, driven by the expectations of
excellent wheat crop in 2006, the chances of importing wheat seem to be
meager. The Union Government has planed to sell around 4 lakh tones of
wheat in the open marketing 4 months to March to ensure price stability
and ample supplies to domestic consumers.
According
to Solvent extractors’ Association of India (SEAI), total oilmeals
exports have augmented by 16 per cent during April-November 2005-06 to
stand at 18,22,425 tonnes. Exports of major oilmeals are as follows:
Oilmeals
|
April–
November 2005-06
|
April–
November 2004-05
|
Percentage
change
|
(In
tonnes)
|
Soyabean
meal
|
1148825
|
982575
|
16.9
|
Rapeseed
meal
|
394100
|
428425
|
-8.0
|
Rice
bran meal
|
53950
|
29131
|
85.2
|
Castorseed
meal
|
148350
|
28650
|
417.8
|
Source:
SEAI
|
Exports
were much lower in April and May as compared to last year, mainly due to
lower crushing margin and production. However, with improvement in
crushing margin, production has increased leading to revival of exports.
Fresh demand from
Taiwan
,
South Korea
and
Vietnam
helped increasing the exports.
On
behalf of Agriculture Ministry, National
institute
of
Agricultural Marketing
has invited Expression of Interest fro companies and co-operatives for
setting up 8 agri marketing centres for perishable commodities like
fruits, vegetables, flowers, aromatics, herbs, meat and poultry products
in the country. Each of these marketing complex would act as a wholesale
market, equipped with facilities for electronic auction, grading of farm
produce, washing and packing lines, packaging, processing and banking.
Each of these complex would cost around Rs 60-Rs 120 crore and would be
located at Mumbai, Kolkata,
Patna
,
Bhopal
,
Nagpur
,
Nasik
and Rai in Haryana.
INDUSTRY
INFRASTRUCTURE
Overall
All
infrastructure sectors, except roads, crude oil, refined oil and
fertilisers, have recorded positive growth during April-September 2005.
Cement, railways and ports were the only sectors with higher growth rates
than they achieved in the corresponding period last year while the growth
rates in the sectors of coal, power, steel and civil aviation have fallen
from last year.
Power
The
planning commission has floated an idea of supplying subsidised power to
the population below the poverty line, which would be exempted from paying
for the first few hundred units of power consumed and subsequent units
would be charged at a marginal rate.
The
National Advisory Council (NAC) has observed privatisation of electricity
distribution as being unsuccessful, after a review of the
Delhi
and Orissa examples as well as questioned the efficacy of the Rajiv Gandhi
Grameen Vidyutikaran programme. It has recommended the public sector
undertakings to play a more meaningful role in the energy sector and has
advised against the unbundling of state electricity boards. Additionally,
it has suggested the setting up of an energy policy board and also
recommended scaling down the current goal of 10 per cent share of nuclear
energy by 2010 to about 5-6 per cent.
The
Rajasthan government has decided to set up a Rs 1750 crore, 500 mw thermal
power near
Kota
. The state government will fund 10 per cent of the total project cost and
the remaining amount of Rs 1575 crore will be raised from financial
institutions in the form of loans.
Non-Conventional
Energy
Haryana
has introduced a policy for setting up power projects based on renewable
energy sources targeting a minimum of 10 per cent capacity addition i.e.
500 mw of the total 5000 mw of conventional power to be generated through
renewable energy sources by 2012.
Entrepreneurs
in
Punjab
are increasingly setting up biomass (wheat husk/rice husk) based
independent power generation projects or cogeneration (husk and steam
based) projects.
Petroleum,
Petroleum Products and Natural Gas
Natural
gas shortages have resulted in shutting down of the gas linkage committee.
Almost one-third of the installed gas based power capacity - 39 gas-based
power projects with total installed capacity of 10335.63 mw - is presently
lying idle due to want of gas. Also, more than 2000 mw private power
capacity based on gas, involving investments of about Rs 8000 crore, have
achieved financial closure due to unavailability of gas in the country.
India
and
Russia
have agreed that their oil and gas companies would work together for
exploration and production activities in third world countries through
joint ventures or equity participation in such ventures.
Railways
Indian
Railways and Seimens are jointly exploring the possibility of earning
carbon credits for the railways, by taking up projects expected to cut
rail electricity consumption by 10-30 per cent. The plan involves two
energy regeneration projects for which Seimens will supply special
locomotives that utilise the momentum of trains running on electricity to
regenerate the energy dissipated during breaking that can then be utilised
by another train running on the same overhead cables.
Roads
The
ministry of roads, highways and shipping is at loggerheads with the Prime
Minister’s task force on infrastructure regarding the model concession
agreement (MCA) for the national highways development project on issues
like tariff policy for local traffic and amount of neutralisation of
inflated maintenance costs. As per the MCA, the toll on national highways
would be 57 paise per km for cars and vans, Re 1 per km for light
commercial vehicles and Rs 2 per km for trucks and buses.
Aviation
The
civil aviation sector is set for developments in intra state connectivity
given the plans of Indian Airlines on signing agreements with at least two
states, Karnataka and Jharkhand, for regional services. Indian Airlines is
also in talks with other states among which
Maharashtra
and Uttar Pradesh have evinced some interest in the project.
INFLATION
The
annual point-to-point inflation rate based on wholesale price index has
gone up to 4.54 per cent during the week ended November 26, 2005 from 4.32
per cent registered during the previous week. The inflation rate was at
7.30 per cent in the corresponding week last year.
The
WPI in the week under review has risen marginally by 0.1 per cent to 198.2
from the previous week’s level of 198.1 (Base: 1993-94=100). The index
of primary articles’ group has increased a tad by 0.1 per cent to 198.2
from the previous week’s level of 198.1, mainly due to an increase in
the price indices of food articles by 0.3 per cent to 200.1 from 199.5 in
the last week. The higher prices of food articles are attributed to rise
in the prices of eggs, fruits and vegetables, condiments and spices,
maize, moong, gram, bajra and tea. The index of ‘fuel, power, light and
lubricants’ group has remained unchanged at the previous week’s level
of 312.1. The index of ‘manufactured products’ group constituting the
maximum of 63.7 per cent of total weight, has risen a tad by 0.1 per cent
to 172.8 from the previous week’s level of 172.7. The higher index of
this group is attributed to higher prices of food products, textiles and
machinery.
The
latest final index of WPI for the week ended October 1, 2005 has 0been
revised upwards; as a result both, the absolute index and the implied
inflation rate moved up to 197.6 and 4.61 per cent instead of the
provisional levels of 196.9 and 4.24 per cent, respectively.
Overall,
the rate of inflation has remained reasonably contained in the range of 4
to 4.5 per cent in the month of November. Moreover, the Finance Minister
has also assured over price stability by emphasising on fiscal measures,
if necessary. He added that the current rate of inflation, which is below
5 per cent is not a cause of concern. However, a potential threat to
current moderate inflation may arise from increasing prices of
manufactured products in the last couple of weeks.
BANKING
The
Reserve Bank of India (RBI) has decided to exempt state cooperative banks
(SCBs) and regional rural banks (RRBs) from having cash reserve ratio (CRR)
requirements on collateralised borrowing and bending obligation (CBLO).
However, SCBs have to maintain a statutory CRR of 3 per cent.
The move is aimed at developing CBLO as a money market instrument.
Accordingly, SCBs and RRBs are required to include borrowing under
CBLO under their net demand and time liabilities (NDTL).
ICICI
Bank’s Rs.5000 crore domestic issue of equity shares, received bids
worth over Rs.35,000 crore. However, the retail portion went unsubscribed
by nearly 50 per cent despite a 5 per cent discount being offered to
retail investors on the issue price.
IDBI
Bank has set up a 12,000 square feet data centre in Navi Mumbai, to
function as a centralised back office of the bank. The centre has been
established at a cost of Rs.56 crore. In addition, IDBI Bank is setting up
a specialised dealing room at the IDBI headquarters at Cuffe Parade in
Mumbai. The dealing room will accommodate around 700-100 dealers and will
be connected to the Belapur data centre.
Bank
of India has announced a 25-50 basis points (bps) hike in domestic rupee
term deposits rates. The rates will be effective from December 1, 2005.
For all deposits with maturity above a year, the bank has hiked rates by
50 bps.
PUBLIC
FINANCE
Tax
Collections
Direct
tax collection during April-November 2005 has increased by more than 25
per cent to Rs 71,235 crore, according to estimates of the revenue
department. Advance payment of corporate tax was up 24.2 per cent till the
month-end to Rs 39,437 crore, while personal income tax collections were
up about 27 per cent. About half the growth of personal income tax
collection came from fringe benefit tax, securities transaction tax and
banking cash transaction tax. A buoyant stock market has yielded the
government Rs 1,520 crore as STT so far. Collections of tax on securities
trading was a little more than Rs 200 crore in November. Collections under
FBT and banking cash
transaction tax amounted to Rs 1,740 crore and Rs 155 crore, respectively.
The
share of direct taxes n total tax revenue, which was 28 per cent four
years ago, has increased to 48 per cent in financial year 2004-05 and is
expected to rise up to 52 per cent in the current financial year. The
ratio of direct taxes in total tax revenue ranges between 70 per cent and
80 per cent in the advanced countries.
Stamp
Duty
The
Maharashtra
government has ordered banks and bond houses, to pay stamp duty on all
direct security deals done over the past 10 years. Earlier, the duty was
capped at Rs 1,000 a deal. The
revised rate is Rs 50 for a Rs1-crore deal.
Charge
on 3G Spectrum
Trai
had offered to pay a one-time entry fee of Rs 1,500 crore because it was a
scarce resource. The ministry, in its proposal, says the entry fee should
not be so high that compensation is throttled and the price of services
becomes high. The fee should not also be so low that non-serious players
accumulate the frequency. Ratan Tata’s offer to pay Rs 1,500 crore a
entry fee for 3G spectrum would have made the exchequer richer by Rs 9,000
crore, assuming the five big operators apart from Tata teleservices paid
the same licence fee. The Tatas believe that the market must place a value
to scarce resource like spectrum. Besides, it is only a one-time fee which
will get amortised over 15-20 years.
Income
Tax
Income
Tax (IT) department, has disallowed the depreciation benefit on membership
cards to cover 300 corporatised brokers. These brokers have been claiming
this benefit since 1998. The brokers have filed an appeal before the
Income Tax Appellate Tribunal (ITAT) against the department’s move. IT
authorities contest that a membership card is not an asset and is a
personal privilege. Brokers, however, feel that the card should be treated
as a capital asset as it is used for carrying out trading activity.
Tax
Evasion
The
income tax department has sought details of high value transactions
entered into by individuals over the financial year 2004-05. This
information is being used to cross check whether the persons listed have
paid their share of tax and filed returns. Action could be taken against
those who have not paid or unpaid taxes. These letters will also enable
the I-T department to track down people who have declared wrong PAN in
tiers transactions. Third-party reporting is one of the tools being used
by the I-T department to ensure greater compliance
on the payment of taxes and filing of returns. The message has gone
out that the tax department has more information than people expected
through the AIR filed by specified entities and the banking tax
transaction tax. The FM felt this has helped improve collections in last
two months. He said that the information culled from the AIR is being
“used selectively, carefully and on a need-to-know basis” to crack
down tax evaders.
Introduction
of special schemes to unearth black money remains important to the
government. Revenue authorities
of major zone contributing a substantial chunk of revenues to the
government’s kitty have proposed an institutional mechanism that will
allow evaders to come clean by declaring their “income from undisclosed
sources” as “income from
other sources”. Tax has to be paid on this income under section 56 of
the Income-Tax Act 1961. Interest will be charged for not paying advance
tax on this amount. No questions will be asked on the source of funds and
money declared from undisclosed sources will be brought into the books of
account of the assessee.
Allocation
of revenue resources
Even
as the finance ministry has agreed to increase the gross budgetary support
(GBS) for 2006-07 from the proposed 15 per cent to 23 per cent in the
financial year 2005-06, the planning commission wants a further 35 per
cent increase in GBS to meet the government’s social sector commitments.
The planning commission’s demand would translate into an additional
funding requirement Rs 50,224 crore for the finance ministry for 2006-07.
The total GBS for the current financial year is Rs 1,43,497 crore
(budgetary estimates). It is argued thathuge resources are required
to fulfill the government’s social commitments.
Just
the eighth flagship programmes of the UPA government would require about
Rs 92,000 crore in 2006-07, up over 53 per cent from Rs 60,000 crore in
2005-06. These are the Sarva Shiksha Abiyyan, Mid-day Meal Scheme,
National Rural Health Mission, Bharat Nirman, agriculture development,
road transport, the National Employment Guarantee Scheme and those for the
railways. In other schemes, such as the National Urban Renewal Mission and
programmes related to education and labour security are added, the
resource requirements would be given even more. Besides priority
programmes, huge funds would be required for centrally sponsored
programmes and central sector schemes.
Though
the finance ministry has proposed undertaking a zero-base budgeting
exercise to cut flab in the existing schemes and weeding out the
irrelevant ones, the planning commission has said that effective weeding
out of ongoing developmental programmes can be achieved only in the
Eleventh Plan. At that time, the commission would be in a position to drop
some programmes. The government would not like to weed out schemes now as
it could lead to severe protests from the political parties.
VAT
Chief
Ministers of the BJP-ruled states are expected to meet during the midst of
this month to decide upon implementing the value added tax (VAT) regime to
replace local sales tax. Of the 5 BJP ruled states, only Jharkhand has, so
far announced intention to implement VAT on January 1. Rajasthan, Madhya
Pradesh, Chattisgrah and
Gujarat
are yet to announce date. State
governments may seek to bring imports and three items – sugar, tobacco
and textiles-covered by additional excise duty (AED) into the value added
tax (VAT) net as a package of
measures to offset losses that will arise from halving central sales tax
(CST) rate to 2 per cent. They will also seek “adequate devolution” of
service tax revenues of the Centre, if not the power to tax services.
The finance ministry may have to set aside a minimum of Rs 2,000
crore in the budget for cash compensation. States get 30.5 per cent share
of net proceeds of divisible pool of central taxes under the
recommendation of the Twelfth Finance Commission. Once the power to levy
VAT or sales tax on the three items revert
to states, their share in the divisible pool will stand reduced to 29.5
per cent. The white paper on VAT has recommended that AED on the three
items –sugar, tobacco and textiles-should be reviewed at the end of
first year of VAT. Also, the white paper has stated that imports should be
brought into the VAT chain. This was to ensure a level playing field
for domestic manufacturers. The levy of VAT on imports is unlikely
to generate much incremental revenues the tax paid would be set off later
in the chain. The empowered committee wants the CST rate to be cut from
the existing 4 per cent rate
to 2 per cent on April 1, 2006. The rate cut is incumbent of states and
the finance ministry agreeing to a compensation package for CST revenue
losses.
Customs
procedure eased
The
government has eased customs procedures to ensure faster clearance of
cargo and reduce congestion at ports as part of its efforts to boost trade
and industry. The measures relate to risk assessment based speedier
customs clearance of goods and accredited clients programme for faster
delivery with reduced dwell time. The entire exercise is the result of the
ongoing business process reengineering project of the Central Board of
Excise and Customs.
Stable
cost of advertisement
The
cost of inserting an advertisement in newspapers will not go up as the
finance ministry formally dropped a proposal to bring print media
indirectly into the service tax net. A draft circular issued by the
Central Board of Excise and Customs early October proposing inclusion of
the cost of media in the gross billings of an advertising agency to its
client for the purpose of calculating service tax liability will not be
pursued.
FINANCIAL
MARKET
Capital
Markets
Primary
Market
Punj
Llyod has tapped the market to partly expand its investment in capital
equipments, investments in projects, joint ventures and to retire its high
cost debt. A total 91.72 lakh shares are on offer including a fresh issue
of 83.55 lakh shares and offer for sale from management of 8.17 lakh
shares.
PVR
limited,
India
’s largest multiplex operator, is raising funds through an IPO in the
price band of Rs 200-240 per share. The company is raising the funds to
finance new cinema and multiplex projects, expand its distribution
business and upgrade its existing multiplexes. The issue will constitute
33.66 per cent of the fully diluted post-issue capital of the company.
IT
infrastructure and connectivity provider Tulip It Services’ IPO consists
of a issue of 90 lakh shares offered in a price band of Rs 100-120 per
share.
Between
April-October 2005, the Indian companies have mobilised Rs 51,459 crore
through public offers, rights issues and private placements. In contrast,
over the same period, banks have lent Rs 42,976 crore to medium and large
industries as a whole.
Secondary
Market
Despite
the FIIs turning net sellers for the first three session of the week, the
BSE sensex closed above the 9000 mark for the first time in history by
recording gains of 105.67 points over the week, similarly, NSE nifty
gained 58.5 points to touch its peak level of 2756.45. The buoyant
sentiments have been due to the Bombay High Court’s approval of the
demerger of the Reliance Industries. The market breadth was positive with
18 out of 30 BSE sensex stocks ended in the positive territory. The
sectoral indices of BSE also reflected the positive sentiments with most
of them registering gains during the week; BSE consumer durables index
outperformed all of them by registering a 12 per cent gains.
In
the first seven sessions of December, FIIs have been net buyers of
equities to the extent of Rs 1118 crore with purchases of Rs 8486 crore
and sales of Rs 7368 crore. However, the mutual funds have been net
sellers during the period to the extent of Rs 483 crore with sales of Rs
2810 crore and purchases of Rs 2327 crore.
The
report of expert group on “Encouraging FII inflows and checking
vulnerability of capital markets to speculative flow’s prepared for
finance ministry has recommended that
§
FII
should be allowed to switch between equity and debt investments.
§
The
government must fix an annual cap on overall FII flows rather restricting
FII flows in debt alone.
§
FII
investment ceilings should be over and above the sectoral FDI caps.
§
Restrict
an individual FIIs holding together with all its sub-accounts in a company
at 20 per cent by December 2005.
Bombay
Rayon Fashions debuted at the bourses at a premium over its issue price of
Rs 70 as the stock closed at Rs 83.50.
NSE
has warned the members against entering into financing arrangements other
than permitted by margin trading norms, as the exchange discovered certain
financing arrangements through which, under a general authorization,
brokers receive and transfer the securities and funds of clients routinely
to and from joint accounts of financiers and clients. The exchange has
also found out that some brokers operated clients bank and depository
accounts under a financing arrangement. Further, the exchange has asked
brokers to wind up such arrangements and end the practice before February
10, 2006.
Derivatives
Given
the bullishness in the cash market, the derivatives market also turned
buoyant with average daily volume ranging around Rs 20,000 crore. The
discount of nifty futures to nifty has
narrowed from 12 basis points to 4 basis points due to a combination of
short covering and fresh long positions.
Government
Securities Market
Primary
Market
The
RBI auctioned 8.07 per cent 2017 and 7.40 per cent 2035 for notified
amounts of Rs 5,000 crore and Rs 3,000 crore, respectively; the cut-off
yields have been set at 7.24 per cent for the former and 7.56 per cent for
the latter paper.
Secondary
Market
The
market sentiments remained cautious due to the forthcoming advance tax
payments and India Millennium Bonds (IMD) redemptions could put pressure
on liquidity in the coming weeks. However, during the week under, the call
rates ruled around 5.25-5.35 per cent and also the daily subscriptions to
the reverse repo bids under LAF increased from around Rs 7,500 crore to Rs
17,500 crore. Also, weighted average YTM on 8.07 per cent 2017 has
remained steady around 7.22 per cent for the two weeks of December 2 and 9
each. Nevertheless, the bounce back in the global oil prices due to higher
US
demand revived concerns over inflation here and cautioned the buoyant
sentiments.
Bond
Market
Food
Corporation of
India
is tapping the market to mobilize an amount of Rs 1,000 crore by offering
a coupon rate of 7.28 per cent and 7.58 per cent for 5 and 10 years,
respectively.
Foreign
Exchange Market
The
rupee-dollar exchange rate depreciated from Rs 46.12 on December 2 to Rs
46.33 on December 8, however, it appreciated to Rs 46.22 on December 9, as
the expectations of higher inflows were fuelled due to slight retreat in
dollar against the yen and euro.
The
six-month forward premia remained steady around 0.80 per cent as in the
previous week.
Due
to appreciation of the rupee against the dollar, the SBI may end up paying
less as the IMD is due for redemption on December 29 as the rupee was at
Rs 46.65 in 2000 when the bonds were issued.
Commodities
Futures derivatives
National
Commodity and Derivatives Exchange (NCDEX) is now taking up the challenge
of launching futures contracts for perishable commodities, beginning with
potatoes and onions.
World
pepper production is projected to decrease by 33,200 tonnes next year and
it seems to reflect in domestic prices, which have shot up by Rs 600 a
quintal in less than a fortnight.
The
production in the International Pepper Community (IPC) countries next year
is estimated at 2.11 lakh tonnes as against 2.45 lakh tonnes in 2005, less
33,200 tonnes. However, in non-IPC countries it will be 17,400 tonnes
compared with 17,270 tonnes this year, a marginal increase of 130 tonnes,
according to IPC sources. As reported earlier, production in
India
will be lower by 25,000 tonnes. As against 70,000 tonnes in 2005,
production next year is estimated at 45,000 tonnes, the sources said.
There has been international demand for Indian pepper during the past few
weeks but the increase in domestic prices during the week has weakened it.
In less than a fortnight, spot prices shot up by Rs 600 a quintal, while
the futures soared by Rs 692 to Rs 744 a quintal on Thursday.
The
NCDEX’s Agricultural index NCDEXAGRI
has fallen from 1308.96 on December 3 to 1294.99 on December 10.
MCX
has along with BSNL and MTNL have launched the SMS services for
disseminating information on commodities through mobile phones; this
initiative is considered to be an effort to bring forth the benefits of
futures prices to participants in the commodities markets at large.
Farmers, traders, exporters, importers and processors will derive
unparalleled benefits from this facility. The extensive reach and
subscriber base of BSNL and MTNL, cellular users provides a readymade
platform to launch this service. This information initiative will empower
market participants with prices of commodity prices on a real-time basis.
This is another stride of MCX towards harnessing technological advancement
for the benefit of markets at large.”
CREDIT
RATING
Icra
has assigned an’ A1+’ rating to the Rs. 8 billion short -term debt
programme of ABN Amro Securities (India) Private Limited (ABN Amro
Securities). The rating draws strength from the adequate capitalisation
and the risk management systems that follow ABN Amro’s global risk
management policies.
Icra
has assigned an ‘A1+’ rating to the proposed Rs 10 billion certificate
of deposit (CD) programme and an ‘LAAA’ rating to the proposed Rs 2.5
billion Tier II bond programme of State Bank of Mysore (SBM). The agency
has also reaffirmed the ‘LAAA’ rating assigned to the Rs 1.75 billion
and Rs 600 million Tier II bond programme of SBM. The ratings take into
account SBM’s strong presence in the corporate assets, its growing
retail asset portfolio, improving asset quality, lower cost of funds and
comfortable liquidity lent by its steady deposit accretion as well as
excess liquid gilt investments.
Icra
has retained the ‘A1+’ rating assigned to the Rs. 500 million
commercial paper (CP) programme of Wheels India ltd. (WIL). The ratings
takes into account WIL’s status as dominant wheel rim manufacturer in
the country, its diversified and established OEM customer and product
profile, its leading market shares across automotive segments and its
improving product mix.
Icra
has retained the ‘MA’ rating assigned to the fixed deposit programme
of Pyramid Finance Limited (PFL). The rating takes into consideration
PFL’s stable market position in financing small and medium sized
companies in
Goa
, its ability to maintain asset quality, and its favourable funding
profile.
Icra
has reaffirmed the ‘A1+’ rating to the Rs. 5,000 million short-term
debt (including commercial paper) programme of SBI Capital Markets Limited
(SBICAPS). The highest safety ratings take into account SBICAPS strong
parentage, its sound capitalisation, and its position as one of the
leading investment banking companies in the country.
Crisil
has assigned ‘P1+’ rating to the State Bank of Travancore’s Rs. 20
billion certificate of deposit programme (enhanced from Rs. 10 billion).
The assigned rating reflects the benefits that the bank derives from its
high levels of operational and financial integration with
India
's largest bank, the State Bank of India (SBI).
Crisil
has reaffirmed the ‘AA +’ rating assigned to the BoB Housing Finance
Limited’s (BoB Housing) Rs. 200 Million subordinated bond issue.
The rating continues to reflect the company’s majority ownership
(67.1 per cent stake) by the Bank of Baroda (BoB), and the strength
derived from its impending merger with its parent.
Crisil
has also reaffirmed the ‘P1+’ rating assigned to BHW Birla Home
Finance Limited’s Rs. 3.5 Billion Short Term Debt Programme The rating
on BHW Birla Home Finance Limited centrally reflects the benefits of 100
per cent ownership by BHW Holding AG (BHW AG). It is also based on BHW
Birla's healthy capital adequacy, adequate resource profile and
expectation of improvement in inherent asset quality.
CORPORATE
SECTOR
Automobile
major Mahindra & Mahindra has opened a new plant at Haridwar
Industrial Estate. The plant has been set up primarily to manufacture
three-wheelers of different load capacities and range.
Adlabs
Films, entertainment company of Anil Ambani group, has raised nearly $100
million (approximately Rs 460 crore) through foreign currency convertible
bonds.
Bharat
Forge, the world’s second largest forgings, has entered into a joint
venture with the Chinese automotive major FAW Corporation. Bharat Forge
will own 52 per cent in FAW Forge, which will manufacture a wide range of
highly engineered forged auto components for the commercial vehicles,
passenger cars and light truck markets for
China
and across the globe. The joint venture will add 1,00,000 tonne capacity
to
India
’s largest manufacturer of forgings.
Hitachi
Construction Machinery Company (HCM) has acquired another 20 per cent
shares in the Telco Construction Equipment Company
(Telcon) from its joint venture partner Tata motors to scale up its
holding to 40 per cent.
GHCL
has acquired a majority shares in Romanian based company S C Bega Upsom
for US $ 20 million.
The
Mumbai-based Asian Electronics has signed a Memorandum of Understanding (MoU)
to buy 50 per cent equity of the US based Westinghouse Lighting
Corporation (WLC) for Rs 100 crore. A partnership with WLC would help
Asian Electronics to penetrate the global market especially the
US
and the EU and it would help WLC to make
India
as a global hub of its outsourcing operations, replacing
China
.
Dollex
Industries has received an order worth Rs 10 crore from Penguin
Distilleries, a bottling major in
Goa
, for supplying extra neutral alcohol (ENA) for their premium product, Old
Monk Whisky. The supply programme would start in January 2006 and would
spread over the first 9 months of the year, entailing a total supply of 3
million litres of ENA.
Coca-Cola
has signed a cooperation agreement with
Eastday
,
China
’s largest internet bar company. The online game world of Warcraft,
previously promoted by Coca-Cola, would be promoted by Eastday in its
shops and bars ad Coca-Cola products will be sold in 300 internet bars in
Shanghai
in next 3 years.
Indian
Infrastructure Equipment Ltd (IIEL) and Oil Technologies Overseas (OTO),
Moscow
, have signed a MoU to develop projects jointly in drilling and related
services for Russian and Indian Oil and Gas sector.
Larsen
& Toubro (L&T) has been selected by Reliance for the supply of
equipments valued at Rs 303 crore for
Jamnagar
export refinery project. L&T will supply a wide range of equipments
like fluidized catalytic cracker (FCC) regenerator and FCC reactor, large
size vacuum and crude columns and thick walled stainless steel clad alloy
steel reactor etc.
Oriental
Structural Engineers has received three projects worth Rs 952 crore from
National Highway Authority of India to construct highways.
Ashok
Leyland has received order for 400 vehicles from Vijayanand Roadways
Limited. The order includes 200 Ecomet vehicles, 150 trucks chassis and 50
‘12M’-bus chassis.
LABOUR
After
having number of negotiating meetings in the Labour Ministry, the
Employees’ Provident Fund Organisation (EPFO) has finally decided to cut
the interest rate payable to its 40 million subscribers, by 1 percentage
point to 8.5 per cent from 9.5 per cent for the current financial year.
The trade unions demanding 9.5 per cent interest rate, have obviously
shown their discontent on the decision. At 8.5 per cent, the EPFO faces a
shortfall of around Rs 370 crore during the year as its income is
estimated at Rs 6,523 crore while the liability is pegged at Rs 6,889
crore. The EPFO’s Finance and Investment Committee had recommended an 8
per cent interest rate, which would have left a surplus of Rs 39.35 crore.
The
Finance Ministry has decided to set up a high level committee to monitor
the progress of state-level pension reforms. The committee would help in
bringing uniformity among states in their reform process. Fifteen states
have already showed interest in joining the New Pension Scheme (NPS).
However, according to official sources, the states are not yet fully
prepared to shift from the defined benefit to defined contribution system.
The purpose of the said committee is to direct the states to shift to the
new system.
EXTERNAL
SECTOR
Procedural
hassles and high transaction costs may soon become a thing of the past for
exporters and importers in
India
. The Prime Minister’s office (PMO) is considering a host of suggestions
made by a high-level study group constituted by the commerce ministry
including establishment of one-stop documentation centres and simplified
trans-shipment procedures.
Commerce
and industry minister indicated that
India
and Asean were likely to finalise a Free Trade Agreement soon.
According
to AT Kearney’s confidence index
India
has displaced the
US
as the second-most favoured destination for foreign direct investment in
the world after
China
. The
US
has slipped to third place, which was occupied by
India
last year. AT
Kearney
’s confidence index is an annual survey of executives of the world’s
largest companies. However,
India
should maintain its reform process to continue attracting more FDI. Last
year FDI in
India
reached $5.3 billion compared with
China
’s $60.6 billion.
India
and
China
have reached an advance stage for finalising a Regional Trade Agreement.
In
the NAMA negotiations at WTO,
India
and
Brazil
have taken the lead by proposing to cut their bound tariffs on industrial
products 50 per cent on condition that developed countries agree to take
on matching commitments.
India
’s bound tariff is about 34 per cent at present. A 50 per cent cut would
lower the bound tariff to 17 per cent. The deal suits Indian industry if
implementation period is long and back loaded.
INFORMATION
TECHNOLOGY
TCS
will set up a global delivery centre in
Brazil
by March 2006.
Intel
Corporation will spend around $800 million on expanding its business
operations in
India
over the next five years. The company has earmarked $250 million for
setting up a venture capital fund – Intel Capital India Technology –
to invest in start-ups. The fund will focus on Indian hardware and
software companies, aiming at developing technology for local use.
Microsoft
Corporation has announced its plan to invest around $1.7 billion in
India
over next 4 years. As part of the expansion plan the company will be
setting up its first innovation centre in
Bangalore
. Microsoft has also intended to spend $850 million on research and
development at its 5 centres in
India
. The company will also increase its staff strength in
India
from 4,000 employees to 7,000 over the next 4 years. The $40 billion
software major also announced that it would set up 700 retail outlets
across in the country and open offices in 33 cities to provide support
services to its channel partners. In addition, Microsoft has also
announced the launch of low-cost operating system Starter Edition in
TCS
has signed a global partnership with SAP AG to deliver adaptive
manufacturing solutions to enterprise customers spread globally.
TELECOM
In
yet another move to increase the rural tele-density, the Telecom
Regulatory Authority of India (Trai) has recommended that the government
create a national rural telecom licence, which would allow companies to
operate all kinds of telecom services, exclusively in rural areas. The
regulator has proposed that companies which offer services under the new
licence be charged only a nominal entry fee and be exempted from all other
charges, including licence fee, spectrum fee and revenue share.
Trai had earlier recommended that niche operators be permitted in
rural areas without any licence and spectrum fee. For existing telecom
operators, the regulator has reiterated that the government abolish
spectrum charges for rural operations. But it has added that semi-urban
and semi-rural areas in the periphery of large towns be excluded from the
definition of ‘rural’. The
regulator also favours eliminating licence fee for existing operators
“in areas that are genuinely rural” but at the same time has raised
concern regarding the elimination which need to be worked out carefully in
the case of licence fees that are based on revenues. It said that the
possibility of mis-specification of revenues from semi-urban as rural by
operators must be guarded against.
Reliance
Infocomm has tied up with China Telecom to provide direct telecom
connectivity between
India
and
China
.
Table
1 : Index Numbers of Industrial Production (1993-94 =100)
|
Table
2 : Production in Infrastructure Industries (Physical Output Series)
|
Table
3: Procurment, Offtake and Stock of foodgrains
|
Table
4: Index Numbers of Wholesale Prices (1993-94 = 100)
|
Table
5 : Cost of Living Indices
|
Table
6 : Budgetary Position of Government of India
|
Table
7 : Government Borrowing Programmes and Performance
|
Table
8 : Scheduled Commercial Banks -
Business
in India
|
Table
9 : Money Stock : components and Sources
|
Table
10 : Reserve Money : Components and Sources
|
Table
11 : Average Daily Turnover in Call Money Market
|
Table
12 : Assistance Sanctioned and Disbursed by All-India Financial
Institutions
|
Table
13 : Capital Market
|
Table
14 : Foreign Trade
|
Table
15 : India's Overall Balance of Payments
|
Table
16 : Foreign Investment Inflows
|
Table
17 : Foreign Collaboration Approvals (Route-Wise)
|
Table
18 : Year-Wise (Route-Wise) Actual Inflows of Foreign Direct Investment
(FDI/NRI)
|
Table
19 : NRI Deposits - Outstandings
|
Table
20 : Foreign Exchange Reserves
|
Table
21 : Indices REER and NEER of the Indian Rupee
|
Table
22 : Turnover in Foreign Exchange Market
|
Table
23 : India's Template on International Reserves and Foreign Currency Liquidity [As reported under the IMFs special data dissemination standards
(SDDS)
|
Table
24 : Settlement Volume and Netting Factor for Government
Securities Transactions Settled at CCIL - Monthly, Quarterly and
Annual Basis.
|
Table
25 : Inter-Catasegory Distribution of All Types of Trade in
Government Securities Settled at CCIL (With Market Share in
Respective Trade Types)
|
Table
26 : Category-wise Market Share in Settlement Volume of
Government Securities Transactions (in Per Cent)
|
Table
27 : Settlement Volume and Netting Factor for Total Forex
Transactions Settled at CCIL - Monthly, Quarterly and Annual
Basis.
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Table
28 : Inter-Category Distribution of Total Foreign Exchange
Transactions Settled at CCIL (With Market Share in Respective Trade
Types)
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*These statistics and the
accompanying review are a product arising from the work undertaken under
the joint ICICI research centre.org-EPWRF Data Base Project.
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