Month: June 2010

Mumbai FSI increase: Government proposes, Court disposes

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An FSI increase of 0.33x in suburban Mumbai was dismissed by the High Court. The negative impact of such an FSI increase on TDR prices would now be reversed.

The two-judge divisional bench of the Bombay High Court ruled in favor of the public interest litigation (PIL) filed, dismissing the increase in the FSI in suburban Mumbai (from 1 to 1.33) passed by the government of Maharashtra in Apr ’08. The reasons stated included the right to amend development plans, procedure followed by the government, no change in the development plan of the

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No Objectivity in Lending And Investment Decisions

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By Guest Author – Sudip Bhattacharyya
An area where professional leadership and decision making can be questioned is lending to Small and Micro enterprises. SBI, Chairman was quoted in Economic Times on 11th May 2009 saying that as SMEs mostly supply to large units, the risk perception is more there and accordingly higher interest rate is applicable to SMEs. The logic for higher risk perception is not quiet understood and in any case, no authentic expert study supporting such assertion was seen. This is despite professed national policy for inclusive growth and support for MSME. In stead, banks prefer lazy banking. (Indian banks now have investment of nearly Rs.85500 crores in Mutual Fund and Rs.82000 crores in Govt. Bonds.).

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Government contemplates a task force for giving boost to animation industry

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For giving a boost to the growing animation sector in India, the Information and Broadcasting Ministry is planning setting up a joint task force with members of industry bodies.

This task force will help face the challenges of high set-up and production costs, talent shortage and lack of intellectual property protection which daunts the animation industry. The job of the task force will be to forward a roadmap for clearance to the Finance Ministry after consulting and finalizing it with all the stakeholders of the animation industry.

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The domestic demand driven Growth

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Domestic demand continues to accelerate as evidenced by a slew of macro and micro indicators from the PMI, credit growth to auto
sales and infrastructure build-out. With demand remaining strong, we think core inflation will likely remain elevated through
FY11, and maintain our above-consensus inflation forecast of 7.5%. This would prompt further action by the Reserve Bank of India to
withdraw accommodation.

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3G Funding – Borrow from RBI as liquidity condition worsens

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Liquidity condition in the system has tightened with banks borrowing heavily from the Reserve Bank of India (RBI) through its repo window. The dry up of liquidity from the system was mainly triggered by the Rs 68,000 crore payments made by telecom companies to government to acquire bandwidth for third generation (3G) mobile telecom licenses. Liquidity conditions are likely to improve as government starts spending money that it has received from the telecom companies.

Banks borrowed slightly over Rs 13,000 crore on Tuesday from the apex bank, more than double the amount borrowed on Monday. Banks borrowed Rs 5,840 crore through the repo window in the morning and Rs 7,325 crore in the second half on Tuesday.

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INDIA INC. – TIME FOR INTROSPECTION

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It started since early 80s and has now reached the Tipping Point. India is now ready with competitive spirit and full motivation for growth and ready to take up the world financially. It has apparently mastered best competitive practices in marketing, customer services and corporate governance in corporate sector, especially in services, media and banking, the three sectors projecting their success even in global recession to the outside world. Mr.Anand Mahindra said in TOI, as early as on 22nd. June, 2009, in renaming Satyam that customer concentricity, high standard of corporate governance, unimpeachable ethics form the cornerstones of the Mahindra Group.

In 2008-9, overseas investment from India was

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