• Indian origin Nishita Shah among Next Gen billionaires
• Chhattisgarh to get Rs.1.7 trillion investment in power
• Indian insurance sector to touch Rs.20 bn mark by 2010
• India's growth pegged lower but pace remains robust

• India Inc's investment plans rise to $244 bn
• India made 75 investments in UK last year'
• Tata Power eyeing $3 bn nuclear power foray
• Kerala announced 'responsible tourism destinations'

Nishita Shah, 28, an Indian origin businesswoman from Thailand, golfer Tiger Woods and Elon Musk, co-founder of online payment processor PayPal figure on Forbes' list of next-generation billionaires. Besides Shah, managing director of Thailand's diversified GP Group, on the list are Hollywood actor Tyler Perry, Kenji Kasahara, creator of Japan's leading portal Mixi, and Michael and Xochi Birch, who started Bebo, a social networking site. "The world's current crop of billionaires has plenty of money but not much youth," the US business magazine said, noting the average age of the 1,125 people on Forbes' list of the world's wealthiest is 61. "The diversity of this group shows you can't predict what industry the next billionaire will come from, but these people also have something in common," Forbes said. "Even though they've accumulated more than enough money to retire in luxury, they aren't packing up for the Hamptons." Glamorous Nishita Shah is one of the richest people in Thailand because of her stake in her family's sprawling business empire with an estimated net worth at $375 million. When the stunning heiress is not poring over financial reports or gracing the pages of Thai magazines, she's planning her upcoming fashion line, Forbes said. "My dad said I could study anything I wanted as long as it was business," Shah who holds a business degree from Boston University was quoted as saying. Shah is largest individual shareholder and director of Precious Shipping, Thailand's biggest dry-bulk shipper boasting a fleet of 44 ships. Her father Kirit founded the group in 1989 and took it public 1993. The 140-year-old family business is booming. Profits more than doubled in past three years. The licensed pilot and youngest member on Forbes' Thailand list also has a clothing company called Burn Baby making "luxury active wear" for "modern urbanite women." Nishita Shah is launching her own fashion label - Nsha - on three continents at the end of this year. The director in over 40 group companies bets her heart on her own luxury fashion label Nsha launched in selected boutiques across the world. After the tsunami of 2004 she helped the fishing village Baan Talay Nok "promising to help it recover and to cover the educational costs through university for children who lost one or both parents, roughly 20 in all", according to Forbes. With her mother Anju Shah, she's a patron and fundraiser for the Queen Sirikit Centre for Breast Cancer. she donated the center $160,000 for education, research and construction costs, says Forbes. Inspired by even richer likes such as Warren Buffet and the Bill & Melinda Gates Foundation? "I hope to be able to leave a considerable portion of my wealth to the GP Foundation," she once said.

Courtesy: www.jansamachar.net, August 20, 2008

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Despite the global economic slowdown, capacity expansion plans of Indian corporates surged to Rs.10.5 trillion ($244 billion) in the first six months of the current fiscal against Rs.5.67 trillion in the same period last year, an industry lobby said. According to the Associated Chamber of Commerce and Industry of India (Assocham), on state-wise investments, Maharashtra, followed by Andhra Pradesh and Orissa, were the most preferred destinations by the private players in the first half of 2008. With industrialisation at a faster pace, Maharashtra topped the chart with investment commitments worth Rs.1.2 trillion in sectors like power, real estate, automobiles, ports and shipping, Assocham president Sajjan Jindal said. The biggest announcement was made by Tata Power at Rs.250 billion to raise generation capacity from 2,368 MW to 12,861 MW for the next five years, followed by Reliance Industries for setting up semi conductors and other micro-technology units at an investment of Rs.216.6 billion for the next 10 years. Andhra Pradesh also attracted huge investments with a share of 10.11 percent totalling Rs.1.06 trillion. Companies like Reliance Industries, Hindujas Group, Videocon Industries and Gas Authority of India Ltd would invest in the state in the next five years. Orissa emerged as the third most preferred destination with investment announcements worth Rs.889.02 billion for the next two to five years. Vedanta Resources announced an investment of Rs.240 billion, while Sterlite Industries pledged to pump some Rs.170 billion into the power generation sector in Orissa. Besides, National Aluminium Corp (NALCO) said it would invest Rs.140 billion in the state for setting up a greenfield aluminium and captive power plant.

Courtesy: www.indiaenews.com, August 17, 2008

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Energy companies will invest Rs.1.7 trillion ($42.5 billion) in Chhattisgarh to set up coal-fired power plants having a total power generation capacity of 42,000 MW, Chief Minister Raman Singh said Friday. 'In a bid to become the power hub of the country, the state has signed separate agreements with a total of 51 companies that will pump in Rs.1.7 trillion to generate 42,000 MW electricity,' Raman Singh said during his Independence Day speech at the Police Parade Ground here. The highlights of the Independence Day function was a dashing cultural programme by students attired in colourful dresses and a show by sniffer dogs deployed in insurgency-hit areas to detect land mines. He said the state had made all round progress in recent years, evident from the rising number of engineering and poly-technique colleges as well as expanding road networking even in the interiors. 'The number of engineering colleges has gone up to 31 from 14 four years back and poly-technique colleges to 13 from 10. They now have a combined enrolment strength of 10,000 engineering students,' Singh said in his 20-minute speech. 'In just the past one year, 7,361 km of roads have been constructed in addition to 300 km of road under projects funded by the Asian Development Bank (ADB),' the chief minister said.

Courtesy: www.indiaenews.com, August 15, 2008

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Here's an ode to our former colonial masters. In 2007-08, India made 75 investments in the UK, which created 19,000 jobs in the country, according to the UK Inward Investment Report 2007-08. The British High Commission in India sees this as an example of the growing ties between India and the UK - a growth that extends well beyond commerce, into education and collaboration in science. Mr Mike Connor, British Deputy High Commissioner in Southern India, points out that the London Stock Exchange hosts 52 Indian companies with a combined market cap of £9 billion. Indian firms have raised a total of £3 billion, he says.

Tata-Corus
While only big ticket investments such as of Tata-Corus come into the limelight, there are a number of small and medium investments that keep happening. For example, in June 2007, Bangalore-based Dynamatic Technologies, Asia's largest producer of hydraulic gear pumps, acquired the assets of Sauer-Danfoss in Swindon. But officials of the High Commission stress that the Indo-UK relations are not just about trade and investment, examples for which abound. Only a couple of days ago, there was one marquee investment by an UK company - Tesco - which has committed to invest Rs 480 crore in the Indian retail sector in two years. The point really is that, quietly behind the scenes, a whole lot of collaborative work is going on, says Ms Jane Owen, Director, UK Trade and Investments, British High Commission, New Delhi. For example, following a visit of the Hull and Humber Chamber to Chandigarh in March 2006, the British Agrifood Consortium signed a contract for technology transfer and marketing assistance with the Punjab Agro Industries Corporation. The assistance is worth £250,000. The Consortium provides recommendations and solutions for the agri-food business worldwide. Following the agreement, Samskip of UK, a cola-chain logistics company, is in the process of setting up shop in India. Satnam Overseas of Amritsar (which owns the 'kohinoor' brand of rice) has set up a plant in the east of England, from where it exports to the rest of Europe.

Education front
Cattle companies Cogent Breeding and Genus Breeding also intend to enter the Indian market, the latter wants to sell its technology and bovine semen. Similar collaborations are also happening in the education front. The UK India Education and Research Initiative (UKERI) is a £23-million initiative aimed at improving educational links with India. "One of the areas of collaboration supported by the UKERI is the development of courses with a strong practical base," says Ms Owen. Within the next four years, the Initiative expects to fund about 40 such courses, serving 2,000 students. "On the research side, there will also be more Indian students completing research degrees in the UK and more UK researchers undertaking work in India, along with joint research projects," Ms Owen says.

Courtesy: www.thehindubusinessline.com, August 16, 2008

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India's insurance business will reach a level of Rs.20 billion in the next two years from the current level of Rs.500 billion, according to an industry lobby. 'A growth of over 200 percent is likely to be seen in Indian insurance business by 2009-10 in which private insurance business would grow at 140 percent in view of aggressive marketing techniques,' said a report by the Associated Chambers of Commerce and Industry of India (Assocham). 'The state-owned insurance companies' growth rate will be 35-40 percent,' the study said. According to Assocham, in the last couple of years, the insurance sector had grown by 175 percent and the trend will emerge still better because of huge potential. 'On account of intense marketing strategies adopted by private insurance players, the market share of state-owned insurance companies like GIC (General Insurance Corp), LIC (Life Insurance Corp) and others have already come down to 70 percent in last four-five years from over 97 percent, and more intense competition is likely to be witnessed in the near future,' Assocham president Sajjan Jindal said. 'The private insurance players' entry into insurance sector is still restricted since India has yet to open it up liberally. But even then, their rate of return to their subscribers and policy holders is estimated at about 35 percent against 20 percent of domestic insurance companies,' Jindal added. Moreover, the state-run companies have limited number of policies to offer to their subscribers while the private players offer many more policies with premium amount and maturity period, he added. Interestingly, the private sector insurance players have started exploring the rural markets in which until recently the state-run companies had the monopoly. The chamber has projected that in rural markets, the share of private insurance players would increase substantially. At present, India's life insurance premium, as a percentage of GDP, was 1.8 percent against 5.2 percent in the US, 6.5 percent in Britain and eight percent in South Korea.

Courtesy: www.indiaenews.com, August 15, 2008

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With India's nuclear isolation likely to end soon, energy major Tata Power is busy planning and studying a minimum $3 billion (Rs.120 billion) foray into nuclear power. 'Tata Power will initially venture into nuclear power either on its own or through a joint venture once the sector is opened up to private utilities,' said Sharaf Ali Bohra, advisor for Tata Power. 'In the long-term, Tata Power would also like to go into the business of front-end and back-end fuel cycle technology business,' Bohra told IANS in an interview. 'It is too early to discuss actual figures. We are studying not only various technologies, regulatory and policy scenarios but business models as well,' he said, adding the actual investment will depend on several issues - technology, fuel policy and the question of nuclear liability. At present, four major technologies are available for nuclear power using enriched uranium. India also has an indigenous technology using natural uranium, as it does not have the sanction to import enriched uranium. The India-US nuclear deal is necessary to allow the inflow of technologies and fuel. This apart, the Atomic Energy Act, 1962, also has to be amended so that joint ventures can be formed with the state-run Nuclear Power Corp.

Industry lobbies like the Associated Chamber of Commerce and Industry of India(Assocham) feel that the amendment can result in India generating some 20,000 MW of nuclear power by 2020, even if the nuclear deal fails to go through. Bohra said General Electric of the US has developed an economical simplified boiling water reactor with a capacity of 1,500 MW per unit. Two such units will cost anywhere between $2.75 and 3.25 billion. Mitsubishi of Japan also has an advanced pressurised water reactor technology with a capacity of 1,700 MW per unit, while Areva of France has developed what is called the European pressurised reactor technology, also of similar capacity. The capital cost of both these technologies of 3,400 MW will be the same as that of the GE technology, Bohra said. Westinghouse of the US also has its advanced pressurised water reactor technology of 1,100 MW per unit capacity, costing $3.5-4 billion for two units. 'So the minimum investment for us will be at least $3 billion. We will go in for at least two units having a total capacity of 2,200-3,400 MW.' The cost of generation too will be competitive vis-a-vis thermal power, Bohra said. He expected the cost to be around Rs.2.5-3 kilo-watt-hour, which would be competitive when compared with thermal power plants using imported coal. 'Nuclear Power Corp is making money and we will also do so since there are other factors that will ensure profitability. For one, India will continue to see a huge demand for energy,' he said. 'We can always sell part of the nuclear power at as much as Rs.8 per kilo-watt-hour since the power purchase pacts with the government always allows some part of the generation to be sold privately outside the agreed price framework.' The $62.5 billion Tata group, which has interests in sectors spanning consumer durables and software to energy, steel and automobiles, has 27 listed companies in its fold, employing some 350,000 people worldwide.

Courtesy: www.indiaenews.com, August 15, 2008

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India's economic growth forecast for this fiscal was pegged at a lower range of 7.7 percent to 8 percent by various official estimates Wednesday, but all agreed that even at that level, the pace would remain robust. The first set of forecasts came from the high-powered Prime Minister's Economic Advisory Council, headed by former Reserve Bank of India (RBI) governor C. Rangarajan, which estimated the growth at 7.7 percent. 'Optimists are projecting even 9 percent growth rate,' he told reporters here, after presenting the panel's take on India's economic outlook for 2008-09 to Prime Minister Manmohan Singh. 'The downside risk to our growth expectations in 2008-09 is primarily from a further deterioration in global conditions with attendant impact on India - be it in the sphere of oil prices or capital markets,' the panel's report said. Soon after, Finance Minister P. Chidambaram, who met the chief executives of commercial banks here, said the fundamentals of the Indian economy continued to be strong, with no signs of any slowdown. 'The growth will remain around 8 percent,' he said. 'There is no slowdown in the economy. There is no slowdown in any other sector. There is no slowdown in infrastructure and new projects,' he added. Planning Commission deputy chairman Montek Singh Ahluwalia Tuesday had said there was need to improve the industrial growth rate if the economy had to register around 8 percent growth rate. 'I do agree that the growth in the industrial sector is rather slow. We need to improve it to maintain the growth momentum of eight percent or above,' Ahluwalia had told IANS. In a similar vein, the central bank had also pruned its growth projection to 8 percent from 8.5 percent because of global and domestic developments when it reviewed its monetary policy for the current fiscal late last month. The Rangarajan panel also predicted a dip in the manufacturing sector growth to 7.2 percent from 8.8 percent last fiscal. In June this year, this sector clocked 5.9 percent growth, against 9.7 percent in the previous corresponding period.

The panel said the index for industrial production was expected to rise by 7.5 percent this fiscal compared to 8.5 percent last fiscal, while agriculture would grow at 2 percent, worse than the poor 4.5 percent growth recorded last fiscal. 'External environment is not conducive for the economy. The commodity prices are rising. There are certain supply side constraints. Infrastructure is not growing so fast,' the panel chief said. Chidambaram, nevertheless, sought to assuage the feelings of India Inc, both on credit off take and delivery. 'We are confident that credit delivery will still be brisk. Productive sectors will not be starved of credit.' On the issue prices, Rangarajan did not rule out the possibility of inflation rate scaling a new high from the current level of 12.01 percent for the week ended July 26. 'Inflation may touch the 13 percent-mark,' he said, even as the panel projected inflationary trends to moderate to 8-9 percent by March 2009. 'The trends of moderation in inflation should begin in December,' Rangarajan, now nominated to the Rajya Sabha, said, adding: 'Monetary tightening is needed to contain inflation.'

Some of the key projections of the panel for this fiscal include:

• Economy to grow at 7.7 percent
• Agriculture, industry and services to log 2, 7.5, 9.6 percent growth
• Investment rate at 37.5 percent and savings 34.5 percent of GDP
• Current account fiscal deficit at 3.2 percent
• Merchandise trade deficit $134.1 billion
• Merchandise export to grow at 31.4 percent against 23 percent in 2007-08
• Capital inflows of $70.9 billion against $108.03 billion last year
• Foreign investment $23.8 billion against $44.8 billion last fiscal
• Capital account balance 5.5 percent against 9.2 percent in last fiscal
• Accretion to reserves 2.3 percent against 7.9 percent in 2007-08

Courtesy: www.indiaenews.com, August 13, 2008

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Kerala Home and Tourism Minister Kodiyeri Balakrishnan Monday said that the government would spend Rs.2.5 billion for tourism development this year. He was addressing a meeting after inaugurating the State Institute of Hospitality Management. The minister said that in the last financial year, tourist arrival in Kerala went up by 20 percent compared to the previous year, while the revenue from the sector increased by 25 percent. "The revenue from the tourism last year was Rs.11,500 crore (Rs.115 billion) and the sector now provides direct and indirect employment to around 1.2 million people in the state," Kodiyeri said. The minister said the government is promoting 'responsible tourism' in the state, which aims at bringing the benefit of tourism development to people living near tourism spots, making them stakeholders in tourism projects. "We have already announced Kovalam and Kumarakom (two famous tourism spots in Kerala) as responsible tourism destinations. Wayanad and Kumali (two other destinations) will be the next," the minister said. At Kumarakom, the initiative helped to provide jobs to around 1,000 women, with hotels and resorts locally procuring vegetables and milk. "Earlier, resorts used to bring vegetables and milk from Tamil Nadu. Now, people in the locality have started benefiting from tourism. We are now planning to develop eco-tourism projects in the similar way that tribal people get benefit from tourism development," the minister said.

Courtesy: www.jansamachar.net, August 12, 2008

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