Archive

Archive for May, 2011

India Footwear Industry

Following are highlights of the Indian footwear Industry (as compiled by ET) Read more…

Categories: Uncategorized

Glossary

Hotels

  • Occupancy rate- It is the percentage of all rental units (as in hotels) are occupied or rented at a given time
  • Average Daily Rate -ADR is one of the commonly used financial indicators in hotel industry to measure how well a hotel performs compared to its competitors and itself . Read more…
Categories: Glossary

India’s Telecom Service Indicators

TRAI has released a report on The Indian Telecom Services Performance Indicators for October – December 2010.

Highlights of the report Read more…

Categories: Telecom

Negative Grant

In case of a road construction project on a BOT (toll) basis, if there arises a gap between the investments required for a project and the gains arising out of it, then the Government steps in to increase the viability of the project by bridging the gap. And the assistance takes the form of capital grant. Read more…

Categories: Roads

Road Sector Update

I was reading through an interview of JN Singh, Member Finance of National Highway Authority of India (NHAI). Following are the highlights:

  • NHAI has set a target to award 7,300 km of roads during the financial year 2011-12
  • This is 44% higher than 5,083 kms awarded in FY 2011
  • About 75% of the work is expected to be awarded on Build Operate & Transfer (BOT) basis
  • A ballpark figure of Rs9.5 per km for 4-laning and Rs3.5 crore for developing 2-lane roads is taken into consideration

RFQ – Request For Qualification

NHAI has eliminated the requirement for filling RFQ each time a bidder bids for road construction projects.

NHAI has introduced an annual qualification system whereby the companies/bidders can fill their annual RFQ before 25 April each year. They need not fill the RFQ each time they bid for a project during the year the annual RFQ is filled. This will result in reduced paperwork and improve the process of selection and award of projects.

A brief on the Qualification Criteria for bidders of road construction projects:

  • For project cost less than Rs 2,000 crore — Financial networth of Minimum 25% of the project cost is required
  • For project cost between Rs 2,000 -3,000 crore — Financial networth of Minimum 50% of the incremental project cost over Rs 2,000 crore is required
  • For project cost more than Rs 3,000 crore — Financial networth of Minimum 100% for every incremental cost over Rs 3,000 crore is required

Thus, naturally larger projects will attract bigger companies.

Categories: Roads

Indian Industry News: Holcim’s raises stake over 51%

The Holcim Group has finally acquired more than 50% stake in its Indian subsidiaries–ACC and Ambuja Cement, reported Financial Express on 05 May 2011. Holcim Group on 29 April 2011, has acquired another 3.562% in Ambuja through open market purchase, increasing its stake in the company from 46.44% to 50.002%. It has also increased its stake in ACC by 0.8% and now holds 50.1%.

Power Sector in India: Update for FY 2011

The latest figures released by the Central Electricity Authority (CEA) indicate a 5.5% growth in electricity generation in India during the financial year 2010-11. Power generation recorded a CAGR of 5.17% during the period 2001-02 to 2010-11.

Highlights of power sector developments in 2010-11 Read more…

Categories: Data - Power, Power