L & T gets two EPC orders in UAE, Qatar

Mumbai: Larsen & Toubro has secured two engineering, procurement and construction (EPC) projects worth around Rs.1,100 crore in the hydrocarbon segment in UAE and Qatar. The Indian major has also won the contract for the fuel depot expansion of the Abu Dhabi International Airport.

The depot expansion project aims to upgrade the facility to meet the increased demand for jet fuel over the next 20 years. L&T is to take over the EPC of the Abu Dhabi Oil Refining Company refining, which will raise the storage capacity of aviation fuel depot to 80 million litres.

Viral Shah, analyst at Angel Broking noted, ``The project involves EPC work of a new aviation fuel terminal for developing storage and deliver of Jet A-1 fuel at the Abu Dhabi International Airport. The project is awarded by Takreer, a subsidiary of state owned Abu Dhabi National Oil Company, and is expected to be completed in 30 months. In Qatar, L&T has bagged an EPC contract for third party gas interconnecting facilities in Ras Laffan from Dolphin Energy. The project has a construction period of 20 months.''

L&T is already executing another export gas upgrade facilities project for Dolphin Energy to increase the capacity of the export gas compressors facilities by adding three new compression trains.

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Tata Power to set up coal-fired plant in Myanmar

New Delhi: Tata Power has forayed into Myanmar and has begun feasibility studies to set up a coal-fired power station there. The project is expected to be commissioned in 2019-20. This would be the first project by the Tata Group Company in the South-East Asian nation.

“Yes, Tata Power has executed a memorandum of understanding (MoU) with the Government of Myanmar for setting up an imported coal-based power plant,” a senior company official told Business Line.

The Rs 19,399-crore Tata Power is aggressively looking to expand its portfolio overseas. At present, it is building hydro electric projects in Bhutan, Georgia and Zambia. The firm is also developing two wind power projects in South Africa.

In Myanmar, the power plant is proposed to be located in Ngayok Kaung, Ayeyarwaddy region, and would have captive coal berthing arrangements. The Tata Power official did not divulge the capacity of the power station. “The capacity would be finalised based on the feasibility studies. The power plant is estimated to be commissioned in 2019-20,” the official said.

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JSW Steel acquires Heidelberg Cement's grinding unit at Raigad

Kolkata: JSW SteelBSE 1.61 % has acquired Heidelberg Cement India's 0.6 million tonne per annum (mtpa) cement grinding facility in Raigad, Maharashtra, "as a going concern on slump sale basis." The transaction which was carried out for an undisclosed sum.

The two companies signed the Business Transfer Agreements for the acquisition on October 5, according to filings made by bot Hidelberg and JSW Steel with the BSE on Monday.

"The transaction will be consummated only after obtaining all relevant approvals required under applicable laws," JSW Steel said. However, it did not disclose the value of the deal. The board of the two companies had decided to enter into a deal on May 21, 2013.

JSW Steel had acquired the company through the erstwhile JSW Ispat SteelBSE 0.40 %, which is now its merged associate firm. Announcing the deal, JSW Ispat had then said the acquisition would enable it develop a stable outlet for evacuation of slag.

Heidelberg Cement had termed the deal as part of company's philosophy of "divesting less strategic assets with lower margins", which would enable it to "focus on more strategic and key operations in central India where the company had recently expanded its cement capacity from 2 to 5 million tonne per annum."

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Foreign portfolio investors to get tax benefits similar to FIIs

New Delhi: Foreign Portfolio Investors (FPIs) will get all the tax benefits available to foreign institutional investors (FIIs). They will also not have to fulfil the Know Your Customer norms separately for opening bank accounts, the Finance Ministry said.

On October 5, the Securities and Exchange Board of India had announced a new category of investors, called the FPI, by merging the existing FIIs, sub-accounts and qualified foreign investors. The decision was taken on the basis of recommendations by the K.M. Chandrasekhar Committee, which suggested that the Government could consider bringing more clarity and certainty while prescribing tax provisions for FPIs.

“Taxation benefits available to FIIs would be transferred to FPIs,” a senior Finance Ministry official told Business Line, outlining the Ministry’s effort to bring clarity in the new tax regime.

Withholding tax
Earlier on May 21, the Finance Ministry had said that foreign investors would have to pay only 5 per cent withholding tax (against 20 per cent earlier) on interest earned through investment made in rupee-denominated long-term infrastructure bonds issued by Indian companies and Government securities.

Withholding tax is similar to tax deducted at source, but is meant for non-resident investors.

Foreign investors are also not required to have permanent account numbers to claim lower withholding tax.

Similarly, foreigners investing in the equity market get tax benefits on long-term (investments of more than a year) profit earned, as prescribed by the Double Taxation Avoidance Agreements with various countries.

For example, like India, Mauritius, too, prescribes zero duty on profit earned on selling equities after one year. FIIs using the Mauritius route will not have to pay any tax on long-term profits here.

Vasudha Sundararaman, MD and CEO of SBISG Custodial Services, feel that the Revenue Department needs to give a go-ahead to legislative changes proposed by the Chandrasekhar Committee to give FPIs at par treatment with FIIs. She said, for the successful execution of the regime, it would be vital that KYC requirements of SEBI and the RBI to be on the same page.

According to the Finance Ministry official, RBI’s KYC norms were for opening bank accounts and were, therefore, simpler. “If the two are aligned, it would cause inconvenience to millions of new bank account holders, but not vice versa. In other words, KYC done by SEBI should be adequate for opening bank accounts,” he added.

On the overall structure of FPIs, Sundararaman said, the guidelines by SEBI were clear and had covered all the aspects of FII entry into India. “Approval in flat 10 days is a remarkable step for the success of the FPI regime,” she said. The SBI SG was a member of the committee.

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H&M’s Rs 700-cr FDI proposal gets DIPP green signal

New Delhi: The Department of Industrial Policy and Promotion (DIPP) is learnt to have given its approval to Hennes & Mauritz AB’s Rs 700-crore investment proposal, almost six months after the Swedish clothing giant made an application to foray into the Indian single-brand retail market.

The Stockholm-headquartered iconic fashion company’s top brass, including chief executive Karl Johan Persson, is believed to have met DIPP officials last week. After that, they might have sent their responses to the department, which had earlier raised certain questions on the application, submitted in April, according to officials in the ministry of commerce and industry.

“All issues sorted. Now it is for FIPB (Foreign Investment Promotion Board) to take it up in its next meeting,” a senior DIPP official told Business Standard.

FIPB, under the chairmanship of Economic Affairs Secretary Arvind Mayaram, is likely to consider the proposal at its meeting on October 18. Once FIPB gives its final approval, H&M will be allowed to open in the country the 50 stores it had proposed to set up.

H&M, famous for its bold prints and fast-fashion clothing, had sent ist application to DIPP in April, after which the latter had raised several questions on whether the company would be able to strictly adhere to the sourcing norms, in line with the FDI policy for single-brand retail.

According to the extant policy, foreign retailers investing more than 51 per cent can open outlets across the country on the condition that 30 per cent of their sourced sales would come from small- to medium-sized domestic enterprises.

DIPP also had concerns on the brand’s licensing agreement between the parent company and its investors. That has now been resolved.

Endorsed by the likes of super-model Gisele Bundchen and footballer David Beckham in international ad campaigns, H&M will invest euro 100 million in the first phase through its wholly-owned subsidiary.

This is second such proposal from Sweden and also the second largest. Earlier this year the Cabinet Committee on Economic Affairs had cleared furniture-maker Ikea’s Rs.10,500 crore proposal again a leading brand from Sweden but registered in Netherlands.

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Indians most committed to their employers: Survey

Mumbai: Indian employees are the most committed to their employers compared to their counterparts in other countries, according to a new survey. The Kelly Global Workforce Index survey “Employee Engagement and Retention” says as much as 50 per cent of Indian employees are totally committed. The survey added that India has, at 33 per cent, one of the lowest rates of job-change in the world.

Apart from India, the highest levels of employee commitment were found in Indonesia (43 per cent) and Malaysia (34 per cent). The lowest are in Hong Kong (15 per cent), Thailand (20 per cent) and Singapore (22 per cent).

The survey noted the key factor influencing job choice across all generations is personal fulfilment (work-life balance), nominated by 38 per cent globally. Another key factor is personal growth, at 29 per cent globally, but the data suggested this factor might be less important as people progress through their careers.

Compensation, which is often perceived as the single-most important reason for choosing an employer, ranks the third-most important at 26 per cent globally.

Across Asia-Pacific (APAC), an average 64 per cent of those who changed jobs in the past 12 months were happy in their new positions. In India, 75 per cent of the employees were happy with their new job and position, the survey noted.

Further, approximately half of the global respondents (52 per cent) said they are either happy or very happy in their jobs. The result in 2013 is a little changed from the figure in 2012. Those in APAC are consistently more content in their positions, with 63 per cent either happy or very happy, significantly higher than in the Americas (53 per cent) and EMEA (Europe and the Middle East and Africa) at 46 per cent. (EMPLOYEE CONTENTMENT: 2013)

“The way people feel about their work, view their work, and the manner in which they select certain jobs play an important part in the way workforce are developed and managed. There is a big challenge for employers in managing the on-boarding of new recruits so that they are productive and integrated well into the organisation. Simply changing jobs does not make for contented employees, and a big factor is the way managers and supervisors handle the transition,” said Kamal Karanth, managing director of Kelly Services India.

In order to gain some experience in a particular field, staying at a position within a company is vital. The survey observed that the lowest rates of job-change were in India (33 per cent), South Africa (21 per cent), Puerto Rico (30 per cent) and Indonesia (31 per cent). A key indicator of employee satisfaction is the willingness of an employee to recommend their employer as a preferred place to work. Twenty-eight per cent of those in APAC would be willing to recommend their employer to colleagues.

Employees consider many factors before deciding on the right job. The survey said that the prime consideration is location, cited by 54 per cent globally. A close second is ‘corporate brand and reputation’, nominated by 53 per cent. Other elements include employers’ business performance, culture, and benefits.

Individuals who are constantly looking for a job-switch are required to keep a constant eye on the job market. Globally, more than one-quarter (29 per cent) of job seekers look once or twice a week, and over one-third (34 per cent) look for a new opportunity on a daily basis. The most active job-scanners are in EMEA (59 per cent) followed by APAC (57 per cent).

Karanth explained that many workers have experienced a significant shift in their attachment and tenure of service with employers in the wake of the global financial crisis, and this phenomenon is still shaping the employment relationship. “It is imperative to look back and understand the root cause and work toward better employee retention strategies that help in employee work stability,” he said. The Kelly Global Workforce Index (KGWI) is an annual global survey revealing opinions about work and the workplace.

Approximately, 122,000 people across the Americas, EMEA and APAC regions responded to the survey.

This survey was conducted online by RDA Group on behalf of Kelly Services.

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Godrej Properties to invest Rs 9,000 crore over 10 years

Ahmedabad: Godrej Properties Ltd (GPL) on Saturday said it will invest $1.5 billion (Rs 9,000 crore) in 15 new projects in the next 10 years in the country.

Five of these projects have been launched this year.

The company has already invested nearly Rs 1,000 crore on its biggest-ever project in the country Godrej Garden City (GGC) in Ahmedabad, said Phirojsha Godrej, Managing Director and CEO. Overall, GGC and its local joint venture partner Sri Siddhi Developers, have invested $1 billion (Rs 6,000 crore) in GGC.

GPL also announced to deliver this month 624 apartments in 13 towers in GGC, launched in 2010.

GGC, a world-class integrated township master planned by the US-based Skidmore, Owings and Merrill (SOM), designers of numerous global landmarks including the Burj Khalifa of Dubai, has been supervised by Larsen and Toubro (L&T) in construction, he said.

“Despite the challenging economic conditions, we sold in Ahmedabad much more than elsewhere due to relative price stability here. We sold almost 85 per cent in phase-I of GGC, 20 per cent of which (one million sq ft) is now being delivered,” he said.

However, GPL has no immediate plans for a second project in Gujarat.

The weakening of the rupee and other reasons have encouraged NRIs to buy properties in Ahmedabad. While 10 per cent of apartments at GGC were bought by them in phase-I, 15 per cent have been bought subsequently, Godrej said.

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