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India
top FDI Destination on Higher RoI:
KPMG
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India
has emerged as the top foreign direct
investment (FDI) destination on
the basis of higher returns on investment
(RoI) that foreign investors earn
in the country compared to the other
emerging markets like China, Brazil
and Mexico, a survey by the global
consultancy firm, KPMG, has revealed.
The major bottleneck, however, is
the infrastructure, which is hindering
larger FDI inflow into India when
compared to countries like China.
"India may need to make more rapid
improvements in its business infrastructure
if it is to continue to attract
foreign investment in the face of
growing competition from China,
which it outperforms in many areas,
including return on investment,"
KPMG said in its study report, `Manufacturing
in India'. KPMG has noted that India
scores over other Asian nations.
"Every dollar spent in India has
a better return than is the case
with other emerging markets that
have a more favourable environment,"
the report said. According to the
KPMG India Managing Director, Ian
Gomes, the study has noted that
though improvements are being made
in India's infrastructure, they
are not fast enough. The report
is also critical of the combined
fiscal deficit of the Centre and
the States at about ten per cent
of the GDP and has noted that this
severely limits spending on infrastructure
improvement. On the plus side, the
report said that India was going
to gain from its large pool of young
working population as compared to
that in China.On the negative side,
it said there were 17 million households
still classed as "destitutes" and
35 per cent of the population was
still living on less than one dollar
per day. While appreciating the
country's reform process, KPMG said
reform in areas like labour regulation,
business, bureaucracy and taxation
needed to keep pace with the rapid
rate of growth.
Courtesy:
The Hindu, July 29, 2005
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Economy
to Grow at 7%: Reuters Poll
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India's
economy is expected to expand at
a faster clip than previously forecast
in the fiscal year to March 2006,
as companies step up output to meet
robust demand as rural incomes are
boosted by monsoon rains. The median
forecast of a Reuters quarterly
poll of 11 economists, conducted
after China's Yuan revaluation,
showed gross domestic product (GDP)
in Asia's third-largest economy
would expand 7 per cent in 2005/06,
higher than 6.6 per cent forecast
in May. India's farm-dependent economy
grew 6.9 per cent last year, after
a blistering 8.5 per cent expansion
in 2003/04, the fastest in nearly
15 years, as the best rainfall in
a decade boosted harvests and rural
income. India's industrial output,
which accounts for a quarter of
GDP, surged 10.8 per cent in the
year through May as the country
made vehicles, televisions and machinery
at a hot pace. The four-month monsoon,
which got off to a slow start in
June but has since gathered pace,
is vital for India's poorly irrigated
farms as erratic rains can hurt
crops and income in rural areas
where two-thirds of the billion-plus
population live. Many analysts said
the rupee would gain against the
dollar in 2005 after China revalued
its Yuan and on surging foreign
investment in Indian shares, which
has exceeded $6 billion so far this
year. In 2004, the rupee gained
nearly 5 per cent helped by record
overseas portfolio inflows of $8.5
billion. But India's central bank,
concerned about a widening trade
deficit, is expected to curb rupee
strength to ensure exports stay
competitive. The central bank intervened
to pull the rupee back from a six-year
peak last week. The poll forecast
the rupee would rise to a median
43.3 per dollar by December and
43 by the middle of 2006 from 43.45
on Thursday. Costlier oil, the country's
biggest import, and other purchases
to meet robust demand will continue
to boost India's trade deficit.
Courtesy:
www.sify.com, July 29, 2005
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FDI
in 2005-06 Pegged at US$8 Billion
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The
government today said the foreign
direct investment flows into India
will go up by more than 100 per
cent in 2005-06 to cross $ 8 billion.
"The FDI inflows would surpass the
eight billion mark in 2005-06 as
against 3.75 in 2004-05," Commerce
and Industry Minister Kamal Nath
said at a press conference yesterday.
He said in the first two months
of this fiscal FDI has gone up by
a whopping 117 per cent year-on-year
to $ 912 million from $ 421 million
in April-May 2004.In 2004-05, FDI
had grown by 42 per cent to $ 3.75
billion.Since August 1991 the cumulative
FDI approvals stand at $ 67.77 billion
while the inflows stand at $ 34.26
billion.Most of the FDI in to India
has been routed through Mauritius
followed by US, Netherlands, Japan
and UK. While $ 9.7 billion in FDI
came from Mauritius,$ 4.7 billion
came from the US, $ 1.9 billion
from the Netherlands, $ 1.9 billion
from Japan and $ 1,7 billion from
the UK. Mauritius accounted for
36 per cent of the FDI since 1991
US for 17 per cent, Netherlands
and Japan for 7.0 per cent each
and the UK six per cent. As much
as 15 per cent of FDI has flowed
into electrical and electronics
($ 4.1 billion) followed by transportation
(11 per cent or $ 3.0 billion),
telecom (10 per cent or $ 2.7 billion),
services (9.3 per cent or $ 2.6
billion) and fuels and power (9.0
per cent or $ 2.5 billion).
Courtesy:
Business Standard: July 28, 2005
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Xerox
India Bags International Safety
Award
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Xerox
India on Wednesday announced that
it has received the International
Safety Award for its Rampur plant
from the British Safety Council
for the sixth year in a row. The
award was received by Roland Hoogendam,
Customer Service Director, Xerox
International Group on behalf of
Xerox India, at a recently held
ceremony in London, says a release.
Courtesy:
The Hindu, July 28, 2005
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India
Will Dominate World Pharma Market
Soon: PwC
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India
is all set to become one of the
top ten global pharmaceutical markets.
With a rapidly growing population
and tax concessions for overseas
investors, India will dominate the
world pharma market in the coming
years, according to a latest report
by Pricewaterhouse Coopers. A slump
in the traditional pharmaceutical
markets of North America, European
Union and Japan will also aid growth
in India. Already a growing number
of foreign multinationals have been
attracted to India. Tax holidays
for companies based in underdeveloped
areas and a great potential for
sourcing of pharma ingredients have
also been a big lure. Relaxing of
pricing controls in India within
the last ten years coupled with
strong manufacturing expertise provide
an attractive proposition for big
pharma companies. The US Food and
Drug Administration has already
approved 60 manufacturing sites
in India. It is more than any other
country outside the US, said Thomas
Mathew, pharmaceutical leader, Pricewaterhouse
Coopers. "India's native manufacturers
pose a great threat to western generic
companies. It currently produces
20% of the world's generics,"he
added.
Courtesy:
The Financial Express: July 27,
2005
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'India
on its Way to Becoming IT, Manufacturing
Kingdom of The World'
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INDIA
is well on its way to become the
IT and manufacturing kingdom of
the world, said the Japanese Ambassador
to India, Mr Yasukuni Enoki, while
inaugurating the `Succeeding in
Japan' manufacturing workshop, organised
jointly by the Confederation of
Indian Industry and India Japan
Initiative here on Tuesday. Mr Enoki
said that India and Japan could
complement each other, as both the
countries have lot in common. He
said that India was once regarded
as a manufacturing powerhouse, but
closed economic policies of the
past had led to the sector under-performing.
However, the economic liberalisation
of the 1990s had led to a resurgent
manufacturing sector and the economy
as a whole. The workshop was attended
by Mr Vikram Kirloskar, Chairman
of Kirloskar Systems Ltd; Mr Munakata,
Managing Director of Mitsubishi
Corporation India Pvt Ltd; Mr Kiomichi
Ito of Toyota Kirloskar Auto Parts;
Mr Katumi Nomoto Adviser to Anest
Iwata Corporation, Japan, and representatives
from Hero Honda and Maruti Suzuki.
Mr Vikram Kirloskar said on the
occasion that "The Indian manufacturing
industry, which had a slow start
in 2002, is now witnessing a substantial
boost in manufacturing exports,
outsourcing contracts and new investments.
India's manufacturing sector is
reviving with soaring profits. "Today,
manufacturing perhaps is one of
the fastest growing sectors in India
with a bulk of the inflow coming
from a large number of Japanese
companies setting base in India."
He further added, "We feel that
the India Japan Initiative would
leverage the vast knowledge, experience,
relationships and affinities accumulated
through past interaction, to pave
the way for a sustainable, long
term and fundamentally sound relationship
for a common future in the globalised
world." The workshop sought to identify
and understand world-class manufacturing
excellence by providing an insight
into Japanese production principles
and processes, the cultural context
to adapting technology processes
and practices and the key tenets
for successful partnerships.
Courtesy:
www.thehindubusinessline.com, July
27, 2005
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India
Inc is on a Dream Run
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New
Delhi: India Inc's dream run continued
with a clutch of blue chip companies
reporting strong results for the
April-June 2005 quarter. Bharti
Tele-Ventures reported a 70 per
cent jump in net profit on a consolidated
basis at Rs 510 crore (Rs 5.1 billion)
for the quarter ended June 2005,
compared with Rs 296 crore (Rs 2.96
billion) during the corresponding
period last year, as per the International
Financial Reporting Standards. This
is the first time the company reported
a net profit of over Rs 500 crore.
The Mukesh Ambani-controlled Indian
Petrochemicals Corporation Ltd reported
a rise of 83 per cent in net profit
for the quarter to Rs 225 crore
(Rs 2.25 billion). The company registered
a turnover of Rs 2,266 crore (Rs
22.66 billion) for the quarter ended
June 2005, up nine per cent from
Rs 2,086 crore (Rs 20.86 billion)
for the same quarter of the previous
financial year. The company said
the quarter saw a decline in international
prices of olefins, polymer as well
as fibre-intermediate on the back
of weaker crude oil prices compared
with the trailing quarter. Hyderabad-based
Dr Reddy's Laboratories Ltd posted
a net profit of Rs 63.34 crore (Rs
633.4 million) for the quarter ended
June 30, 2005, which was 104.7 per
cent higher than the net profit
of Rs 30.94 crore (Rs 309.4 million)
reported during the same quarter
of the previous year. Truck manufacturer
Ashok Leyland reported a 101.5 per
cent rise in net profit from Rs
31.94 crore (RS 319.4 million) in
April-June 2004 to Rs 64.35 crore
(Rs 643.5 million) for April-June
2005. The company's net sales improved
29.5 per cent from Rs 821.19 crore
(Rs 8.21 billion) to Rs 1063.23
crore (Rs 10.63 billion) during
the period.
Courtesy:
Rediff.com: July 27, 2005
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VSNL
Acquires Teleglobe For $239m
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Videsh
Sanchar Nigam (VSNL) is acquiring
Teleglobe International Holdings,
a provider of wholesale voice, data,
internet protocal and mobile signalling
services in a $239m deal. The acquisition
value includes the price of $4.5
per share payable to shareholders
of Teleglobe and the assumed debt.
The acquisition will be carried
out through the amalgamation of
Teleglobe with the company's subsidiary
in Bermuda. It is subject to the
approval of Teleglobe's shareholders
and government approvals in various
countries. The deal is expected
to be completed within two months.
Teleglobe has more than 1,400 wholesale
customers and carries over 13bn
minutes of voice traffic globally.
The acquisition will give VSNL access
to a network that reaches more than
240 countries and territories with
voice, data and signalling capabilities
and ownership interests or capacity
in more than 80 sub-sea and terrestrial
cables. VSNL will also have access
to more than 200 direct and bilateral
agreements with leading voice carriers,
many of which are the incumbent
carriers in their countries or large
international wireless service providers.
Teleglobe has its headquarters in
Hamilton, Bermuda, with a large
operating centre in Montreal, Canada.
Standard Chartered Bank acted as
the exclusive financial advisor
to VSNL for the transaction. Kelley
Drye and Warren served as counsel
to the company. Morgan Stanley advised
Teleglobe. The VSNL scrip closed
at Rs 388.80 on the BSE today after
a high of Rs 397.50 and a low of
Rs 366.25. The share price was Rs
157.10 on August 16, '04. Teleglobe
had filed for bankruptcy in May
'02. It became a public company
trading on the Nasdaq under the
symbol TLGB with the acquisition
of voice-over IP network leader
ITXC Corp on June 1, '04. It is
currently owned by Cerebus Capital.
According to the Teleglobe website,
the first quarter '05 revenue was
$255.3m against $280.2m in Q4 of
'04 and $214.5m in the first quarter
of '04. The net loss for Q1 was
$8.4m versus $9.2m in Q4 of '04
and net income of $2.5m in the first
quarter of '04. Indian companies
have been acquiring assets of foreign
telecom companies that had been
in distress. Earlier, VSNL had purchased
Tyco for Rs 585 crore (or $130m)
in an all-cash deal. Reliance Industries
had bought the US-based FLAG Telecom
in January for $211m.
Courtesy:
The Economic Times, July 26, 2005
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India
Begins Road Exports to Pak
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India
on Monday began direct exports by
the road route to Pakistan for the
first time in more than half a century.
The very first Indian consignment,
two trucks laden with fresh garlic,
crossed the international border
at Wagah, near Amritsar, on Monday
evening. Exports of fresh vegetables
and livestock have been opened following
a decision by Pakistan's federal
government on May 9. As part of
this, private traders were allowed
import of fresh garlic, onions,
potatoes, tomatoes and livestock
as a measure to meet local demand
and control rising prices. The move
has been greeted with considerable
enthusiasm by Indian exporters,
who have for long been demanding
the opening of the India-Pakistan
border for trade. Amritsar-based
exporter Rajdip Uppal said, "There
is huge potential for mutual trade
between the two nuclear neighbours."
Mr Uppal's company, Narayan Exporters,
already has firm orders for Pakistan
for five hundred tonnes of potatoes,
three hundred tonnes of fresh garlic
and 20,000 buffaloes and goats.
According to Mr Uppal, "This is
the first time since the Partition
of India in 1947 that direct trade
has been allowed." He described
Monday's first crossing of Indian
goods into Pakistan by road as "historic".
The Amritsar exporter, however,
pointed out that Pakistan had yet
not accorded India most-favoured
nation status. He said this would
be essential to fully exploit the
potential for trade. Exporters said
the present list of fresh vegetables
and livestock must be enlarged for
the mutual benefit of producers,
manufacturers and traders in both
nations.
Courtesy:
The Asian Age, July 26, 2005
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India
Inc Bullish: McKinsey
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Indian
business executives are the most
positive in the world about future
prospects in the next six months
even though confidence has dipped
compared to last quarter, reports
the latest McKinsey survey on global
business confidence. In a tough
global economy, with increasing
oil prices and rising protectionist
sentiment in the US and Europe that
could lead to lost exports, confidence
of top level managers around the
world has fallen dramatically since
March, the report says. Among individual
industries, the IT and telecom sector
remains the most bullish, though
they were less confident a quarter
ago due to consolidation and increasing
competition. Around 42% of the respondents
said that hiring would increase
in the next six months, compared
to 29% in banking and financial
services and 24% heavy industry.
Europeans were the most pessimistic,
with 50% expecting the economic
situation to worsen in the next
six months due to political turmoil
in the European Union. The McKinsey
business confidence survey is conducted
every quarter and this edition polled
7,800 executives from 132 countries.
Courtesy:
The Financial Express, July 25,
2005
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LN
Mittal Teams up With ONGC to Make
Big Global Acquisitions
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This
could well turn out to be India's
energy blockbuster. Global steel
tycoon LN Mittal is joining hands
with petro biggie ONGC to float
an energy consortium for overseas
acquisitions. The final agreement
on the consortium is expected to
be signed shortly. While this signals
the beginning of India's highest
profit-making company, the $14bn
ONGC group, moving into the big
league, for the world's largest
steelmaker - the $22bn LNM group
- it's a move from steel to a whole
new world of oil and gas. The joint
consortium will seek to acquire
overseas equity in oil and energy-related
businesses like energy trading and
shipping. The details of the deal,
which is currently a hush-hush matter,
are currently being worked out between
the two companies before the final
deal is signed. The joint venture
consortium, expected to be registered
in a EU country, will seek to concentrate
primarily in countries where the
LNM group has established its presence.
Mittal Steel, the flagship company
of the LNM group, has steel-making
facilities in 14 countries and sales
and marketing offices in 11 more.
Mittal Steel has operations in Kazakhstan,
South Africa and Algeria, apart
from the US and Europe. It has also
agreed to acquire a 37% holding
in Hunan Valin Steel Tube and Wire
Co in China. For instance, the presence
of the LNM group in oil and gas-rich
countries like Kazakhstan could
help ONGC to expand its oil and
gas interests in central Asia. According
to sources, "The idea is to build
on each other's strengths. The LNM
group is a dominant player in many
markets where ONGC is seeking to
acquire equity in oil. Partnering
an established company like Mittal
Steel in these markets could give
ONGC the added advantage." For the
Mittal group, which has capitalised
on the steel boom, it is now time
to move on to yet another boom commodity.
Most analysts believe that the spike
in oil prices in recent times only
reinforces the trend of high crude
prices in the coming years. Most
oil-producing companies worldwide
have raked in whopping profits,
thanks to the sustained rise in
crude oil prices. Back home, ONGC
recorded its highest profit in '04-05,
crossing the Rs 12,000-crore mark.
The new consortium will need necessary
clearances from various government
departments before it can become
fully operational, sources said.
Courtesy:
The Economic Times, July 22, 2005
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India
to be a Tech Hot Spot by '15
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India
may be the next powerhouse in science
and technology, in the not too distant
future, about 10 years from now.
Science and technology will regain
its ancient glory in the country
which invented the concept of zero,
according to a study conducted by
brokerage CLSA. The first visible
sign of India regaining its past
glory is the over 100 R&D facilities
already set up by the multi-national
companies operating in India. This
in fact is symptomatic of a reversal
of the "brain drain" syndrome, to
a situation in which the best brains
want to remain or return to India.
In this situation India gains the
brains rather than losing them to
countries with better facilities
to offer. This is because the opportunities
which lured these talents abroad,
are now available in India, in both
the public and private sector. We
have now over 200 national laboratories,
while the manufacturing sector boasts
of another 1,300 R&D units. By '15,
India will have about 20m students
enrolled in higher learning, with
1.4m engineering students, 60,000
doctors and 50,000 PhDs.
Courtesy:
The Economic Times, July 22, 2005
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'Average
Salary Rise in India The Highest
in Asia'
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INDIA
had the maximum average salary increase
of around 10 per cent in Asia-Pacific
in 2005, according to a study done
by Watson Wyatt Asia Pacific, which
provides services in the areas of
human capital. The Indian business
process industry had the maximum
average salary increase of around
15 per cent, followed by high-tech,
engineering and logistics and shipping,
Mr Greg Sargeaunt, Managing Consultant,
Data Management Centre, Hong Kong,
Watson Wyatt, said. Drawing a parallel
between India and China, two of
the fastest growing markets in Asia-Pacific,
Mr Sargeaunt said compensation levels
in China were lower than India.
The Chinese had an average increase
of 6-8 per cent, he said at Summit
HR 2005, a two-day conference organised
by the National Association of Software
and Service Companies. Soon the
operational cost in Beijing and
Shanghai in China will be as much
as in Hong Kong. Every week around
1,000 new companies come up in Shanghai
and an equal number of them close
down in a week. This is because
of labour movement, he said. According
to Mr Sargeaunt, in India, the compensation
level has been cited as the number
one reason for employees leaving
their jobs. Globally, companies
are putting a strong emphasis on
profitability and demand on employees
to perform at higher levels would
continue to grow, he said. Prof
Bala V. Balachandran, J.L. Kellogg
Distinguished Professor of Accounting
Information and Management, Kellogg
Graduate School of Management, advised
companies to adopt his 4-Ms - Measure
(both revenue and cost correctly),
Monitor (movement of both revenue
and cost), Manage (for action plans,
yield management, thru-put management
and activity-based management) and
Maximise profitability using the
three. In his keynote address at
the summit, Prof Balachandran said
companies should focus on product
innovation and excellence, operational
excellence and customer intimacy
to achieve and sustain leadership
position.
Courtesy:
www.thehindubusinessline.com, July
21, 2005
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India,
Inc. Plays God To Global Losers
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India,
Inc. is on a global turnaround spree.
After Indian corporate execs proving
their managerial mettle on the global
platform its the turn of Indian
companies to do the same. With few
successful cases of turning around
loss-making operations around the
world now a whole host of Indian
companies are going ahead buying
global losers, confident of making
them a winning proposition. Some
of the prominent deals where Indian
companies have picked up loss-making
entities in the first half of 2005
include: Crompton Greaves acquiring
Pauwels of Belgium, AV Birla Group
snapping up a Canadian pulp mill,
Bharat Forge buying out US-based
Federal Forge, Tatas have bought
out Four Season's Pierre hotel,
New York and Dhoots have bought
out Thomson's picture tube business
as well as the loss making Indian
operations of Electrolux. With bigger
industrial assets coming under Indian
hands it is now to be seen how India
Inc manages the high labour and
manufacturing costs abroad, which
has been troubling companies abroad.
In the past some Indian entities
have had a successful track record
of turning around sick companies
in the west. While L N Mittal is
the most obvious example, there
are others like Mumbai based pharma
major Wockhardt who acquired UK
based Wallis Laboratory in 1998
and turned it around the following
year. Wockhardt also turned around
German company Esparma within months
of acquiring it. The growing confidence
of Indian companies is visible in
the fact that now Wockhardt is now
believed to be eyeing its fourth
acquisition in Europe.
Courtesy:
The Economic Times, July 21, 2005
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Oberoi
Rajvilas is World's 3rd Best Hotel
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The
Oberoi Rajvilas, Jaipur has been
adjudged as the 3 rd best hotel
in the world by readers of travel
magazine 'Travel & Leisure', next
only to the Four Seasons Resort,
Bali and Singita Private Game Reserve,
South Africa. The Oberoi Amarvilas,
Agra, has ranked amongst the top
ten hotels in Asia (ranked 8 th
Best in Asia and ranked 22 nd amongst
the world's best). The two 'Oberoi'
resorts are the only hotels from
India to be listed in the survey
that ranks the Top 100 hotels in
the world. The Oberoi Rajvilas achieved
a score of 94.00 out of 100 and
was rated on several criteria including
rooms/facilities, location, service,
restaurants/food and value. The
Oberoi Amarvilas achieved a score
of 90.11. "I am very pleased with
the recognition that this ranking
has accorded Oberoi Hotels and Resorts,"
P R S Oberoi, Chairman, The Oberoi
Group, said on the occasion.
Courtesy:
The Economic Times, July 20, 2005
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FMCG
to See 50% Growth by '10
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Due
to an expected excessive penetration
in to the rural and semi-urban the
Fast Moving Consumer Goods is expected
to grow by almost 50 per cent by
2010. According to industry chamber
Assocham's report, FMCG's market
size is likely to double from the
present level of Rs 48,000 crores
to Rs 100,000 crores. However, the
study cautions manufacturers about
the pressure on their margins due
to cut-throat competition to cater
to the growing demand. According
to the study, "FMCG will be witnessing
more than 50 per cent of its growth
in rural and semi-urban segments
by 2010 which in totality is projected
to grow at an annual compound growth
of 10 per cent to carry forward
its market size to Rs 100,000 crores
from the present level of Rs 48,000
crores." The growing penchant and
insatiable appetite of rural and
semi-urban folds for FMCG products
would mainly be responsible for
this development and manufacturers
would have to deepen their concentration
for higher sales volumes in such
niche areas, says the report. In
rural and semi-urban areas, FMCG
market penetration was currently
less than one per cent, it said,
noting that with 128 million households,
the rural population was nearly
three times the size of urban market.
However, it said the rural market
may be alluring but was not free
of problems like low per capita
disposable income (which is half
the urban level), large number of
daily wage earners, acute dependence
on weather, seasonal consumption
linked to harvests and festivals,
poor infrastructure like roads and
power, and inaccessibility to conventional
advertising media.
Courtesy:
The Asian Age, July 20, 2005
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Billion
Cell Sales a yr by 2009
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Mobile
phone sales will exceed one billion
handsets a year by 2009 as they
become the most common consumer
electronics device with 2.6 billion
people using one by then, according
to a survey published on Wednesday.
Around 1.04 billion cell phones
will be sold in 2009, up from an
upwardly revised estimate of 779
million this year and 674 million
handsets in 2004, research group
Gartner said. "The mobile phone
is the most prolific consumer device
on the planet," said Gartner analyst
Ben Wood. By comparison, every year
around 200 million PCs and 200 million
TVs are being sold. The Asia Pacific
region is seen as becoming even
more important, with one out of
every three mobile phones sold in
the area in 2009, up from one in
three this year. "China and India
alone will account for nearly 200
million units in 2007, with the
Indian market surpassing China in
2009 to reach 139 million units,"
Asia Pacific analyst Ann Liang.
Courtesy:
www.financialexpress.com, July 20,
2005
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Over
2.5 bbl of Oil Reserves in Rajasthan:
Cairn
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The
Edinburgh-based Cairn Energy Plc
has announced that its oilfield
in Rajasthan contains over 2.5 billion
barrels of oil reserves. In a statement
issued today, Cairn said: "We currently
estimate the total oil in place,
in all 12 existing discoveries to
date in the Rajasthan basin, excluding
gas, to be in excess of 2.5 billion
barrels (bbls)." The company said
it was making good progress in its
efforts to fast track development
of the three largest discoveries
to date in the north - Mangala,
Bhagyam and Aishwariya. The combined
2P (proved plus probable) oil in
place for the Fatehgarh reservoir
in these three fields has been independently
certified to be 1.64 bbls, the company
stated. Cairn estimates the associated
reserves based on secondary recovery
are at least 500 million barrels.
Additional recovery from Mangala
and Bhagyam using enhanced oil recovery
(EOR) techniques has the potential
to add up to a further 150 mmbbls
(million barrels) of oil reserves.
The combined production target for
these three northern fields is currently
planned to be between 120,000 and
150,000 barrels of oil a day (bopd),
Cairn added. First oil production
from Mangala is scheduled for the
end of 2007. Mr Bill Gammell, Chief
Executive of Cairn, said: "Cairn
is now moving rapidly from discovery
to production in Rajasthan. As we
continue exploration and appraisal,
it is very clear that this basin
will not only provide substantial
oil production and cash flow from
the large northern fields but will
also provide future growth and re-investment
potential for Cairn from other reservoirs
and smaller fields, both discovered
and yet to be discovered." Regarding
the final draft of the field development
plans for the Mangala, Aishwariya,
Saraswati and Raageshwari fields,
the company said it is scheduled
for submission in August to its
joint venture partner ONGC for a
final review, after which they will
be submitted to the Government of
India for approval. Besides, the
front-end engineering design (FEED)
for the Mangala field development
is largely complete and the selection
process for the detailed engineering
design contractor is underway. The
company added that the declaration
of commerciality for the Bhagyam
and Shakti discoveries which is
the first step before the preparation
and submission of the field development
plan has been submitted to ONGC
for review. "It is planned that
the development of these discoveries
will be integrated with the development
of the Mangala and Aishwariya discoveries,''
the company said. The Government
was in the process of appointing
its nominee to take delivery of
the oil produced from these discoveries.
Courtesy:
The Hindu Business Line: July 19,
2005
Back
to Index
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After
BPO, India Moving Towards KPO Regime
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After
business process outsourcing (BPO),
India is now poised to shift to
a knowledge process outsourcing
(KPO) regime. The research and development
(R&D) investment in the country
has seen 45% growth during 2002-04
at about $6.8 billion, positioning
it as the third most favourable
destination for R&D investment,
according to a recent study. In
addition to 85% of the R&D carried
out by the government through its
research labs and PSUs, several
MNCs have put up R&D centres in
India. The Council of Scientific
& Industrial Research (CSIR) with
38 labs and 80 polytechnology transfer
centres has the largest R&D network
in India. There are about 2000 recognised
R&D institutes in India. Every year
6000 PhD's come out from the 380
universities. There are 2.5 million
graduates which constitute only
2% of the population. All these
make it a favourable cost-effective
location for research and development.
The huge talent pool,low cost and
strong research infrastructure attract
many MNC to set up R&D centres in
India. These R&D drivers in India
is beneficial to both developing
and developed countries. At present
India has favourable government
regulations that supports the R&D
as India is scheduled to adopt the
IP regime formulated by the WTO
in 2005. The government is also
offering other financial incentives
for R&D. The custom duties on clinical
trial has been waived. Also, good
clinical practice (GCP) guidelines
were made mandatory. The government
has also amended the Schedule Y
of the Drugs & Cosmetics Act allowing
parallel phase I clinical trials
of candi | |
