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    December 30, 2010
    Show AI Summary
    Export contract registration updated: online submission, pro rata allocation, document deposit requirement and debarment for noncompliance.
    DGFT requires online-only submission to a designated email within a specified window, allocates available cotton export quantity on a pro rata basis with per IEC ceiling and floor, reduces future allocations for prior under shippers, and mandates deposit of contracts and prescribed bank evidence within a short time to obtain Registration Certificates; non submission or failure to export within the stipulated period leads to ineligibility, forfeiture of allocation rights, debarment and penal action under the Foreign Trade (Development & Regulation) Act.
    December 27, 2010
    Show AI Summary
    External commercial borrowings access permits corporates to raise foreign loans; RBI reports November issuances via automatic and approval routes.
    Reserve Bank data reports aggregate issuances of External Commercial Borrowings (ECBs) for the month across both the automatic and approval routes. Corporates registered under the Companies Act may access ECBs under the automatic route subject to an annual cap and prescribed end use conditions; transactions not covered by the automatic route are considered under the approval route on a case by case basis. The release itemises borrower-level ECBs by purpose and maturity and notes items for which RBI sought clarifications on end use and eligibility.
    December 22, 2010
    Show AI Summary
    Tax treatment of software: central excise and customs exemptions withdrawn, new service tax conditions prevent overlap.
    Imports of packaged or canned software are no longer exempt from customs duty. Manufacturing, production or development of software is no longer exempt from central excise and is subject to MRP valuation under section 4A. A consolidated service tax notification introduces conditions to prevent overlap between service tax and excise and between service tax and customs, and prior service tax notifications granting overlapping relief have been withdrawn.
    December 20, 2010
    Show AI Summary
    Authorized Economic Operator status offers streamlined customs procedures and reduced inspections to certified supply chain participants.
    The CBEC draft establishes an Authorized Economic Operator programme aligned with the WCO SAFE Framework to certify importers, exporters and other supply chain participants as meeting supply chain security and customs compliance standards; certified entities receive a quality mark and facilitative measures such as favourable treatment in customs proceedings, reduced examination through lower risk scores, and simplified clearance procedures, with stakeholder consultation and pilot implementation planned prior to full roll out.
    December 17, 2010
    Show AI Summary
    Economic outlook and inflation expectations signal recovery with implications for public finances and external trade dynamics.
    The Bulletin presents five analytical pieces: an Industrial Outlook Survey showing manufacturing recovery with higher production, new orders, employment and profit optimism; a Households Inflation Expectations Survey indicating rising near term inflation expectations driven by food prices; a Working Group Report proposing a revised Balance of Payments Manual aligned with international best practices; a Central Government Finances review reporting lower key deficit indicators supported by higher revenues and moderated expenditure; and a merchandise trade review documenting a broad rebound in exports and imports across commodity groups and partners.
    December 16, 2010
    Show AI Summary
    Special Economic Zone policy allows full foreign direct investment through automatic route to promote exports and investment.
    The policy seeks US$200 billion merchandise exports in 2010-11 via fiscal incentives, procedural reform, market diversification and infrastructure improvement; the Foreign Trade Policy 2009-14 supports full refunds of indirect taxes and targeted schemes to diversify markets. The Special Economic Zones regime aims to promote exports, attract investment, create employment and develop infrastructure; statistics record approvals, notified zones, aggregate SEZ exports for the period, total investment to date, and the explicit allowance of full foreign direct investment through the automatic route. India adopts a cautious, selective engagement with RTAs/FTAs to expand export markets.
    December 15, 2010
    Show AI Summary
    Tariff value notification establishes customs benchmark values for edible oils, brass scrap and poppy seeds for import valuation.
    The customs notification publishes authoritative tariff values in US dollars per metric tonne for specified imported commodities to serve as benchmarks for customs valuation. It lists edible oils (crude palm oil, RBD palm oil, palmolein, crude soyabean oil) with values retained as unchanged, and separately specifies values for brass scrap (all grades) and poppy seeds, providing the reference figures to be used by importers and customs officials for assessment and clearance until further notification.
    December 15, 2010
    Show AI Summary
    Indirect tax collections rise significantly, improving achievement against annual revenue targets for the fiscal period.
    Total provisional indirect tax receipts for April-November 2010 rose to Rs.2,07,756 crore, a 42.3% increase over the prior year, representing 66.3% of the annual target of Rs.3,13,471 crore. Customs receipts were Rs.86,844 crore (67% increase, 75.5% of target), central excise Rs.81,984 crore (34.4% increase, 62.8% of target), and service tax Rs.38,927 crore (18.2% increase, 57.2% of target).
    December 14, 2010
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    Minimum public float requirement welcomed by foreign investors as enhancing transparency and attracting investment if reforms follow.
    Low awareness of the consolidated FDI policy and limited government outreach were highlighted, alongside pervasive infrastructure bottlenecks (power, roads, water) and state level procedural delays that impede foreign investors. Respondents noted strong market and manufacturing potential and indicated that shifts in China could redirect FDI to India, provided infrastructure and procedural reforms are implemented. The minimum public float requirement was welcomed as a measure likely to enhance public participation, accountability and transparency, improving the investment climate.
    December 10, 2010
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    International trade growth drives expanded bilateral trade partnerships and rising exports despite narrowing surplus this year.
    China's merchandise trade surged in the first eleven months with strong year-on-year export and import growth; imports rose faster than exports in the latest month, reducing the trade surplus, while the EU, the United States, and Japan remained the principal bilateral partners according to customs data.
    December 10, 2010
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    Export market growth imperative: expanding exports supports jobs and taps global customers for US manufacturers.
    Export market expansion is presented as an essential economic strategy to stimulate employment and sustain manufacturing demand by linking increased export orders to job support and emphasizing that most prospective customers and fastest growing markets lie outside national borders, making export promotion a direct mechanism for job creation and economic growth through coordinated efforts to open new markets for domestically produced goods.
    December 7, 2010
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    Price discovery in commodity futures aids planning and proposed options will protect producers' downside while preserving upside.
    Futures trading in specified essential commodities is permitted to perform price discovery and price risk management, complementing the spot market and aiding policy responses to anticipated shortages or surpluses. Options trading is currently prohibited under the existing forward contract regulatory regime but proposed amendments would permit options, which grant producers the right without obligation to sell at an agreed price by paying a premium, protecting downside while preserving upside, unlike futures which create an obligation to sell at the agreed price.
    December 3, 2010
    Show AI Summary
    External Commercial Borrowings reporting shows route specific inflows and end use classifications affecting compliance and registration requirements.
    Monthly data on External Commercial Borrowings and Foreign Currency Convertible Bonds for October 2010 itemises Automatic Route and Approval Route transactions by borrower, equivalent USD amounts, stated end uses (notably import of capital goods, modernisation, rupee expenditure on local capital goods and new projects) and approximate maturities; the Automatic Route total, Approval Route total and a Grand Total are published, with certain entries subject to clarification on end use conformity, borrower eligibility and reliance on Form 83 for Loan Registration Numbers.
    December 3, 2010
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    Duty Free Tariff Preference expands market access, boosting potential for increased bilateral trade and investment ties.
    The release stresses that India-Ethiopia trade rose substantially with Indian exports predominating, and that the Duty Free Tariff Preference Scheme-providing duty free access on most tariff lines and Margins of Preference on others-creates market access to expand Ethiopian exports. It identifies priority sectors for trade and joint ventures (agriculture and agro processing, floriculture, textiles, leather, IT, pharmaceuticals) and notes significant Indian approved investment focused largely on commercial agriculture, positioning investment alongside tariff preferences as drivers of further bilateral economic engagement.
    December 1, 2010
    Show AI Summary
    External commercial borrowings reporting shows route-wise inflows, borrower purposes and maturities for September 2010 in official release
    External Commercial Borrowings and Foreign Currency Convertible Bonds data for September 2010 are published route-wise (Automatic and Approval), listing borrowers, equivalent USD amounts, stated end-uses (for example import of capital goods, rupee expenditure on local capital goods, modernisation, power, new projects, overseas acquisition), approximate maturities, route totals and a Grand Total. The Automatic Route entries note reliance on Form 83 for Loan Registration Number allotment and identify cases where clarifications were sought on end-use conformity and borrower eligibility.
    December 1, 2010
    Show AI Summary
    Capital requirement of public sector banks: government to boost Tier I capital and adjust stake to enable future market funding.
    The government approved fresh infusion into public sector banks' Tier I Capital to achieve a targeted CRAR, with the exact amount, instruments, and terms to be decided in consultation with banks; the exercise also contemplates raising government shareholdings in specific banks to enable future market based capital raises without sole government reliance.
    December 1, 2010
    Show AI Summary
    Free Trade Agreements provide tariff concessions but do not alter import prohibitions or licensing under the Foreign Trade Policy.
    Free Trade Agreements operate solely to provide tariff concessions and preferential access; they do not modify the statutory import policy. Determinations about whether goods are prohibited, require prior permission, or are freely importable are made under the Foreign Trade Policy, and FTAs cannot override import prohibitions or licensing requirements.
    November 27, 2010
    Show AI Summary
    Market-determined exchange rate: RBI manages volatility without fixed targets, exporters advised to use available hedging tools.
    The authority operates a market-determined exchange rate regime with intervention limited to managing excessive volatility and no fixed targets or pre-announced bands; recent rupee movements are linked to capital flow moderation and a stronger US dollar. Exporter requests for a fixed exchange rate, interest on EEFC balances and concessional rupee export credit were received, but the authority highlighted the availability of OTC and exchange-traded hedging instruments-forwards, options, swaps and futures-to manage foreign exchange risk.
    November 24, 2010
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    Electronic clearance for express cargo pilot launched; access via designated online portal and on-site service centre for users.
    A pilot electronic clearance mechanism for express cargo is operational at the New Courier Terminal (NCT), IGI Airport, New Delhi from 28 October 2010, accessible to bona fide users via a specified online portal or the on-site service centre, with designated customs and vendor contacts available for support.
    November 21, 2010
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    SEZ land contiguity requests paused as tax-evasion concerns delay approval for infrastructure through non-processing areas.
    Requests to relax SEZ land contiguity rules for Vedanta Group and Raheja Developers were placed on hold after Revenue Department representatives raised tax evasion concerns about permitting a railway track through non processing areas to transport coal to an adjacent group power plant, preserving further procedural review of infrastructure exceptions and affiliated energy supply arrangements.

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      Customs, DGFT & SEZ

      Data on ECB/FCCB for September 2010

      December 1, 2010

      Contents
      Summary
      Note

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      The Reserve Bank of India has released the data on External Commercial Borrowings (ECB) and Foreign Currency Convertible Bonds (FCCB), both through Automatic Route and Approval Route, for the month of September 2010.

      Data on ECB/FCCB for the month of September 2010

      * I AUTOMATIC ROUTE

       

      ECB/ FCCB

      Borrower

      Equivalent Amount in USD

      Purpose

      Maturity Period (Appx)

      1

      ECB

      Acclaris Business Solutions Pvt. Ltd.   #

      538,726

      Modernisation

      6 Years 10 Months

      2

      ECB

      Dozco (India) Pvt. Ltd.    #

      1,000,000

      General Corporate Purpose

      3 Years

      3

      ECB

      Dozco (India) Pvt. Ltd.    #

      500,000

      General Corporate Purpose

      3 Years 10 Months

      4

      ECB

      Dozco (India) Pvt. Ltd.    #

      1,150,000

      General Corporate Purpose

      3 Years 1 Month

      5

      ECB

      Dozco (India) Pvt. Ltd.    #

      1,200,000

      General Corporate Purpose

      3 Years 6 Months

      6

      ECB

      Rosti Technical Plastics (India) Pvt. Ltd

      5,000,000

      Import of Capital Goods

      4 Years 9 Months

      7

      ECB

      Divekar Wallstabe & Schneider Precision Seals  Pvt. Ltd.

      1,534,624

      Rupee Expenditure Local Capital Goods

      5 Years 7 Months

      8

      ECB

      Johnson Matthey India Pvt. Ltd.

      7,304,816

      Import of Capital Goods

      3 Years 4 Months

      9

      ECB

      Jhajjar Power Ltd.

      100,000,000

      Power

      13 Years 2 Months

      10

      ECB

      IPCA Laboratories Ltd. 

      10,000,000

      Rupee Expenditure Local Capital Goods

      4 Years

      11

      ECB

      Tag Offshore Ltd.

      5,200,000

      Import of Capital Goods

      8 Years 4 Months

      12

      ECB

      Johnson Matthey Chemicals (India) Pvt.Ltd

      6,261,271

      Modernisation

      3 Years 3 Months

      13

      ECB

      Coromandel International Ltd.

      10,000,000

      Rupee Expenditure Local Capital Goods

      5 Years 4 Months

      14

      ECB

      Inox Air Products Ltd.

      8,000,000

      Rupee Expenditure Local Capital Goods

      6 Years 1 Month

      15

      ECB

      Krishna Ishizaki Auto Ltd.

      2,959,922

      Import of Capital Goods 

      8 Years 8 Months

      16

      ECB

      Westfalia Metal Components India Pvt. Ltd.

      260,886

      New Project

      4 Years 2 Months

      17

      ECB

      Torrecid India Pvt. Ltd.

      500,000

      Rupee Expenditure Local Capital Goods

      3 Years 1 Month

      18

      ECB

      Posco Maharashtra Steel Pvt. Ltd.

      143,000,000

      Import of Capital Goods

      8 Years 1 Month

      19

      ECB

      Jhajjar Power Ltd.

      188,000,000

      Power

      13 Years 1 Month

      20

      ECB

      Advik Hitech Pvt. Ltd.

      2,500,000

      Rupee Expenditure Local Capital Goods

      5 Years

      21

      ECB

      Nagata India Pvt.Ltd. 

      1,101,979

      Import of Capital Goods

      5 Years

      22

      ECB

      HPCL Mittal Energy Ltd.

      43,639,494

      New Project

      10 Years 1 Month

      23

      ECB

      Supreme Industries Ltd 

      10,000,000

      Import of Capital Goods

      4 Years

      24

      ECB

      TVS Energy Ltd.

      10,763,461

      New Project

      11 Years

      25

      ECB

      Alkem Laboratories Ltd.

      15,000,000

      Rupee Expenditure Local Capital Goods 

      4 Years

      26

      ECB

      Ampacet Speciality Products Pvt. Ltd.

      6,522,157

      Import of Capital Goods

      5 Years 7 Months

      27

      ECB

      Triton Valves Ltd.

      3,200,000

      Rupee Expenditure Local Capital Goods

      5 Years

      28

      ECB

      Dhunseri Petrochem & Tea Ltd.

      36,000,000

      Modernisation

      9 Years 1 Month

      29

      ECB

      Power Finance Corporation Ltd.

      240,000,000

      Power

      6 Years 1 Month

      30

      ECB

      Mapal India Pvt.Ltd.

      652,216

      New Project

      4 Years 4 Months

      31

      ECB

      Honda Siel Cars India Ltd.

      20,000,000

      Rupee Expenditure Local Capital Goods

      3 Years 4 Months

      32

      ECB

      Aurobindo Pharma Ltd.

      40,000,000

      Modernisation

      5 Years 3 Months

      33

      ECB

      Powerica Ltd.

      10,000,000

      Power

      3 Years

      34

      ECB

      Rane Brake Lining Ltd 

      4,200,000

      Modernisation

      5 Years

      35

      ECB

      Ensto India Pvt. Ltd.

      456,551

      New Project

      5 Years

      36

      ECB

      Jay Shree Tea & Industries Ltd.

      10,000,000

      Rupee Expenditure Local Capital Goods

      3 Years 3 Months

      37

      ECB

      NTN NEI Manufacturing India Pvt.Ltd

      2,723,128

      Import of Capital Goods

      6 Years 1 Month

      38

      ECB

      Positive Packaging Industries Ltd

      3,000,000

      Modernisation

      5 Years

      39

      ECB

      Sterling Agro Industries Ltd.

      17,167,548

      Power

      5 Years 11 Months

      40

      ECB

      Citrix R&D India Pvt Ltd.

      2,400,000

      Modernisation

      6 Years 11 Months

      41

      ECB

      Foods Fats & Fertilizers Ltd.

      3,300,000

      Rupee Expenditure Local Capital Goods

      5 Years

      42

      ECB

      Baxter (India) Private Limited.

      25,720,000

      Rupee Expenditure Local Capital Goods

      12 Years 2 Months

      43

      ECB

      Nagarjuna Fertilisers & Chemicals Ltd.

      12,431,673

      Power

      8 Years 6 Months

      44

      ECB

      Star Panel Boards Ltd.

      1,434,875

      Import of Capital Goods

      4 Years 1 Month

      45

      ECB

      Ceekay Daikin Ltd.

      4,200,000

      Rupee Expenditure Local Capital Goods

      4 Years 9 Months

      46

      ECB

      Asian Hotels (North) Ltd.

      53,000,000

      Overseas Acquisition

      8 Years 1 Month

      47

      ECB

      Himadri Chemicals & Industries Ltd.

      9,175,759

      Power

      9 Years 11 Months

      48

      ECB

      Adani Power Ltd.

      25,000,000

      Power

      6 Years 4 Months

      49

      ECB

      Inox Air Products Ltd.

      12,000,000

      Rupee Expenditure Local Capital Goods

      6 Years 1 Month

      50

      ECB

      Bajajsons Limited

      2,750,000

      Rupee Expenditure Local Capital Goods

      5 Years 3 Months

      51

      ECB

      Riddhi Siddhi Gluco Biols Ltd.

      10,112,278

      Rupee Expenditure Local Capital Goods

      9 Years 7 Months

      52

      ECB

      Sangsin Brake India Pvt. Ltd.

      2,500,000

      Import of Capital Goods

      4 Years

      53

      ECB

      BMW India Pvt. Ltd.

      19,566,472

      Modernisation

      4 Years

      54

      ECB

      Mobis India Limited

      20,000,000

      Rupee Expenditure Local Capital Goods

      3 Years 1 Month

       

       

      Automatic Route Total

      1,172,927,837

       

       

      * Based on Form 83 submitted for allotment of Loan Registration Number

      # clarifications sought from the company in regard to conformity with end-use requirement, eligibility of the borrower and other parameters of ECB

       

      II APPROVAL ROUTE

      1

      ECB

      LCP Building Products Pvt.Ltd.

      449,256

      Construction of Factory Building

      9 Years 1 Month

      2

      ECB

      Agilent Technologies (International) Pvt.Ltd.

      2,000,000

      Rupee Expenditure Local Capital Goods

      4 Years

      3

      ECB

      Rural Electrification Corporation Ltd.

      400,000,000

      Power

      5 Years

      4

      ECB

      IDEA Cellular Ltd.

      150,000,000

      Refinance of INR loan 3-G Spectrum Fee

      5 Years 1 Month

      5

      ECB

      Reliance Industries Ltd.

      1,000,000,000

      Import of Capital Goods and Services

      7 Years 1 Month

      6

      ECB

      Indian Railway Finance Corporation Ltd.

      350,000,000

      Rupee Expenditure Local Capital Goods

      5 Years

      7

      ECB

      Cashpor Micro Credit

      652,216

      Onward/Sub-lending.

      8 Years 1 Month

      8

      ECB

      Ocean Sparkle Ltd

      15,000,000

      Import of Capital Goods

      7 Years 2 Month

       

       

      Approval Route Total

      1,918,101,472

       

       

       

       

      Grand Total

      3,091,029,309

       

       

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