India offloading stake in Asian Development Bank

India is offloading its equity in the Manila-based Asian Development Bank (ADB), Indonesian news agency Antara said on Tuesday, quoting officials. Indonesia is ready to acquire 1.5 per cent of India's stake to increase its equity in the bank from current 5.5 per cent, the agency said. India owns a 6.3 per cent stake in the ADB, while China has a 6.4 per cent. The largest shares in the bank are held by the US and Japan, each holding 15.57 per cent. India has been wanting to increase its shareholding in the other multilateral organisations like the International Monetary Fund and the World Bank.

Source: Antara

Government sets aside Rs10,000 crores for local shipping companies to acquire news ships

The government is considering a 100-billion-rupee package to help local shipping firms finance new vessel acquisitions as global lenders tighten up their purse strings, a junior minister said on Tuesday.

"We have requested the finance ministry to consider a 10,000 crore (rupees) package (for shipping firms)," APVN Sarma, secretary, ministry of shipping, said on the sidelines of a maritime conference.

"Foreign banks are not lending now. Traditionally they've been the lenders for shipping acquisitions. This is some sort of financing for acquisition of new ships by Shipping Corp of India and also by other Indian private shipping companies," he added.
State-run Shipping Corp has planned capital expenditure to the tune of 150 billion rupees in the Eleventh five year plan period and curently has an order pipeline for 29 new ships.
The government will disburse loans of up to 100 billion rupees to shipping firms, Sarma said, but did not elaborate on interest rates and other details.

FM's statement to accelerate India's global quest

Finance Minister P Chidambaram on Friday asked Indian industry to go global and assured that the government will help them in raising capital for acquiring businesses abroad.

"We must look beyond 9 per cent growth, which is possible only through inorganic way," he told captains of the Indian industry at the NDTV Profit business leadership awards here.

International Monetary Fund has revised upward its forecast for the growth of Indian economy to nine per cent and various other agencies were also estimating between 8.5-9.0 per cent GDP expansion, he added.

Chidambaram said while companies must grow organically in the domestic market, they would have to go out and buy businesses abroad for expanding.

"We all felt delighted when Tatas acquired Corus and all the major Indian companies should make efforts to become among the top five global brands," he said.

"If you (companies) want money or capital, the government will support in raising the required funds," he added.

The finance minister said Indians were already working with top global companies in advertising, public relations and many other sectors and it was time to realise that Indian industry will have to become globally competitive.

(Source: Economic Times)