FDI in retail and aviation sectors set to become a reality now

September 21, 2012

FDI_Retail

New Delhi, September 21: The government on Thursday evening braved intense political opposition and a nationwide bandh to notify the rules for allowing foreign retailers such as Walmart and Carrefour to set up stores in India.

The government also notified the relaxed conditions for single-brand retail as well as the norms for allowing 49% investment by foreign airlines in Indian carriers and permitting greater foreign investment in some sections of the broadcasting sector, sending out a clear message that it will not be cowed down by protests and effectively severing its relations with Trinamool Congress.

These notifications give effect to the decisions taken by the Cabinet last Friday, which have resulted in a political uproar and possibly threatened the long-term stability of the Manmohan Singh government.

Industry was quick to welcome the government's move. "...the notifications have been issued quite promptly, reflecting the government's strong commitment towards the reforms process. This will put to rest all apprehension on whether there would be any turnaround," said CII Director-General Chandrajit Banerjee.

The policy says foreign retailers can only open stores in states that have agreed to allow FDI in multi-brand retail. "The above policy is an enabling policy only," said the press note issued by the Department of Industrial Policy & Promotion.

Bar on Online Retail Trading

"State governments and Union Territories would be free to take their own decisions in regard to implementation of the policy," said the DIPP press note. The policy prohibits retail trading through e-commerce by companies with FDI engaged in multibrand retailing. This means the ban on FDI in B2C e-commerce continues, preventing Amazon and others from entering India.

The states that have agreed to allow foreign investment in multibrand retail, according to the press note, are Andhra, Assam, Delhi, Haryana, J&K, Maharashtra, Manipur, Rajasthan, Uttarakhand and the UTs like Daman & Diu and Dadra and Nagar Haveli.

The new rules stipulate that foreign retailers will have to invest a minimum of $100 million, and at least 50% of the total FDI brought in will have to be invested in backend infrastructure. They will have to source 30% of products from small industry within five years of operations, and every year subsequently.

Moreover, if a small industry crosses the $1-million investment mark in plant and machinery, purchases from it will not be counted towards the 30% mandatory sourcing requirement. If a state does not have a city with one million population, an exemption can be made.

The DIPP has also notified the relaxed rules for single-brand retail trading, allowing foreign retailers with more than 51% FDI the freedom to locally source 30% of the value of goods sold over a five-year period initially, and every year subsequently.

It also relaxed the condition that the single-brand retailer has to own the brand, allowing any one entity to retail the brand. Even FDI-funded single-brand retailers will not be allowed to sell their goods through e-commerce.

"The guidelines will allow many single-brand retail companies to come to India," said Diljeet Titus, senior partner at Titus & Co, which is working with foreign retailers looking to enter India.


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Agencies
August 4,2020

Ayodhya,  Aug 4: Various religious ceremonies have been conducted for the past 108 days by saints in Ayodhya and Prime Minister Narendra Modi will take part in `muhurat puja' at 12.44 pm on Wednesday as part of 'bhoomi pujan' for construction of a grand Ram temple.

PM Modi will arrive at 12:30 pm at the Ramjanmbhoomi and take part in various prayers including the main "bhoomi pujan".

Govind Giriji Maharaj, treasurer of Shri Ramjanmbhoomi Teerth Kshetra Trust, said that the religious ceremonies will begin from 8:30 am in the morning and will continue till 12:30 pm.

"The Prime Minister will arrive at 12:30 pm and he will offer `puja' for 15 minutes and take 'sankalp'. First Lord Ganesh will be worshipped then he will offer prayers of eight shilas. Some prayers at shilas we have conducted already," Giri told said.

"The muhrat of pooja is at 12: 44 pm. He will say words 'prathisthapayami' and it is crucial to be done in that muhrat," he said.

Elaborating on the rituals to be performed tomorrow by the Prime Minister, the trust member said that most important is `Kurm Shila' .

"The most important is Kurm Shila - this is right beneath the place where Ram Lalla will be seated. It is this ceremony that we are conducting tomorrow. A cone of Bakul tree wood will be kept in ceremony. This isn't an ordinary cone, it is made of various metals including gold and silver. 

A lotus with nine gems too will be part of pujan which will be offered to this cone by the Prime Minister," he said.

"These are intrinsic to main bhumi pujan. The first religious ceremony was of Devi Kali. There are two devi kalis here, `choti' and `badi'. She is kuldevi, family's goddess of Sita. Today we held Ramarchan ceremony," said Giri.

The Vedic pundits who are involved in religious ceremonies have come from Delhi, Mathura and Kashi.

Asked about the absence of Nepal's religious head of Janaki Mandir, he said that there are many, including 20 religious heads, who would not able to come because they can't leave their seat in Chaturmas.

On the design of temple, Giri said, the old design will remain as it is except a rise in height.

"The structure has become popular and we will keep it. Keeping in mind the modernisation of architecture, we have raised height from 128 feet to 161 feet and instead of three peaks we will have five peaks," he said.

Kanchi Pithadhishvar Maharaj has sent silver coins as souvenirs for every sadhu participating in it, Giri said.

Invitations have been sent to 175 people, including 135 saints of 35 religious organisations to attend the foundation stone-laying ceremony of Ram temple.

The construction of Ram temple will begin in Ayodhya after the ceremony to lay the foundation stone.

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News Network
May 13,2020

May 13: Senior Congress leader P Chidambaram on Wednesday mocked the prime minister's announcement of a Rs 20 lakh crore financial package as a "headline and blank page", and said he was looking forward to the finance minister filling the blank page.

Prime Minister Narendra Modi on Tuesday announced massive new financial incentives on top of the previously announced packages for a combined stimulus of Rs 20 lakh crore.

Chidambaram said he would count every additional rupee the government infuses into the economy and examine what the poor, hungry and devastated migrant workers get after walking hundreds of kilometres to their home states.

"Yesterday, PM gave us a headline and a blank page. Naturally, my reaction was a blank!

"Today, we look forward to the FM filling the blank page. We will carefully count every ADDITIONAL rupee that the government will actually infuse into the economy," he said on Twitter.

The former finance minister said "We will also carefully examine who gets what?".

"And the first thing we will look for is what the poor, hungry and devastated migrant workers can expect after they have walked hundreds of kilometres to their home states.

"We will also examine what the bottom half of the population (13 crore families) will get in terms of REAL MONEY," he said in a series of tweets.

Congress leader Jairam Ramesh also slammed the prime minister's announcement.

"Last night the Prime Minister did what comes to him best. Maximum packaging, Minimum meaning.It was a case of classic NAMO. No Action Message Only," he said on Twitter.

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News Network
June 19,2020

Jun 19: Billionaire Mukesh Ambani on Friday announced that his oil-to-telecom conglomerate Reliance Industries is now net debt-free after raising a record Rs 1.69 lakh crore from global investors and a rights issue in under two months.

Reliance raised Rs 1.15 lakh crore from global tech investors by selling a little less than a quarter of the firm's digital arm, Jio Platforms Ltd, and another Rs 53,124.20 crore through a rights issue in the past 58 days.

Taken together with last year's sale of 49 per cent stake in fuel retailing venture to BP Plc of UK for Rs 7,000 crore, the total fund raised is in excess of Rs 1.75 lakh crore, the company said in a statement.

Reliance had a net debt of Rs 1,61,035 crore as on March 31, 2020. "With these investments, RIL has become net debt-free," it said.

"I have fulfilled my promise to the shareholders by making Reliance net debt-free much before our original schedule of March 31, 2021," Ambani said.

Jio Platforms - which houses the country's youngest but largest telecom firm Reliance Jio, raised Rs 1,15,693.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and PIF since April 22, 2020.

Saudi Arabian sovereign wealth fund PIF buying 2.32 per cent stake in the unit for Rs 11,367 crore on June 18 "marks the end of Jio Platforms' current phase of induction of financial partners," the statement said.

Alongside, Reliance launched India's biggest right issue, which was subscribed to 1.59 times.

Though the rights issue size was Rs 53,124 crore, the company has got only 25 per cent of the money as the remaining is to be paid only next fiscal.

Ambani had at the company's annual general meeting on August 12, 2019, announced a roadmap for Reliance to become a net debt-free company before March 31, 2021.

"We have a very clear roadmap to becoming a zero net-debt company within the next 18 months that is by March 31, 202," he had said last year highlighting strong interest from strategic and financial investors in consumer businesses, Jio and Reliance Retail.

In the statement on Friday, he said he was both delighted and humbled to announce the fulfillment of the promise.

"Exceeding the expectations of our shareholders and all other stakeholders, again and yet again, is in the very DNA of Reliance," he said.

"Therefore, on the proud occasion of becoming a net debt-free company, I wish to assure them that Reliance in its Golden Decade will set even more ambitious growth goals, and achieve them," he added.

He said over the past few weeks, phenomenal interest was received from the global financial investor community in partnering with Jio.

"As our fundraising milestone from financial investors is achieved, we sincerely thank the marquee group of financial partners and warmly welcome them into Jio Platforms," he said.

"I also express my heartfelt gratitude to all the retail and institutional investors, both domestic and foreign, for their overwhelming participation in our record-setting Rights Issue," he added.

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