Domestic auto sales to touch 5.6 million units by 2017: SIAM

SIAM president Pawan Goenka said that due to the slowdown in recent months, the industry may have to revise the growth projection for passenger vehicles and commercial vehicles further
    
New Delhi: The Society of Indian Automobile Manufacturers (SIAM) today said the size of the domestic passenger vehicles market is likely to touch 5.6 million units by 2017, despite the market witnessing a slowdown in recent months, reports PTI.

"The growth figure that we are now working out for the 12th Five Year plan indicates that we may see domestic passenger vehicle sales of 5.6 million units and the export of 1.3 million units by the end of 2017," SIAM president Pawan Goenka said at the industry body's annual summit here.

Vehicle manufacturers as well as component players need to plan their investment and capacity expansion strategy to meet this demand, he added.

He, however, said due to the slowdown in recent months, the industry "may have to revise the growth projection for passenger vehicles and commercial vehicles further."

SIAM said it may further lower its growth projection for vehicle sales in the country from the earlier estimate of 11%-13% announced two months back.

In July, SIAM had lowered its vehicle sales growth forecast for FY11-12 to 11%-13% from the earlier estimate of 12%-15% made in April, mainly due to higher interest rates and rising fuel prices.

"As money and fuel became expensive, the market sentiment was gravely affected and the passenger vehicle segment de-grew 8.9% in July and again by 5.7% in August," Mr Goenka said, adding that the industry is hoping that the forthcoming festive season will see a recovery in the passenger car sales.

Talking about diesel prices, Mr Goenka said the government should come out with a national plan and strategy for utilisation of the fuel in the transport sector, rather than discourage its usage.

Similarly, a renewed focus needs to be put on strengthening of infrastructure for gaseous fuels such as CNG and LPG, Mr Goenka added.

He also urged the government to extend the Duty Entitlement Passbook Scheme, which incentivises exporters with tax benefits, beyond 30th September, as no alternate scheme has been offered so far.

In addition, he said: "The auto industry is awaiting the implementation of GST, which will eliminate many of the embedded taxes that make the industry globally non-competitive and create distortions."

Mr Goenka further said the Indian auto industry can play a very critical role in achieving the manufacturing sector's target of contributing 25% of the GDP by 2025.

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9 killed, many injured in blast outside Delhi High Court

According to TV reports as many as 50 people may have been injured in the explosion which happened at around 10.15am

New Delhi: Several people were injured in a blast this morning outside one of the entry gates to the Delhi High Court complex crowded with visitors seeking entry into the premises.

The explosion occurred outside gate No 5 where 100 to 200 people were waiting in queue to get passes for entry into the court complex. The nature and magnitude of the blast was immediately not known.

According to TV reports, nine people are reported dead and as many as 50 people may have been injured in the explosion which occurred at around 10.15am. There was no official information yet on the incident.

Some of the injured were being treated at a dispensary in the court itself while others were rushed to nearby hospitals.

Court business is usually heavy on Wednesday which is listed as a public interest litigation (PIL) day when the visitors come to the court in large numbers.

Ambulances and fire tenders were rushed to the spot.

The blast area has been cordoned off and police have asked people to clear the area.

Top officials of Delhi police including special commissioner (law and order) Dharmendra Kumar and joint commissioner of special cell RS Krishnaiah have rushed to the spot.

Joint commissioner (crime) Sandip Goyal and special commissioner PN Aggarwal also joined them.

Mr Kumar said it was too early to ascertain the exact nature of the blast.

He declined to speculate whether the blast was of low intensity or high intensity.

It is in the second time in four months that a blast occurred outside the Delhi High Court complex.

An explosion on 25th May triggered panic prompting the authorities to sound a high alert in the capital and tighten security at public places. No one was injured.

Low-intensity explosives, wrapped in a polythene bag and kept close to the car parked near Gate No 7 went off around 1.30p.m. Ammonium nitrate, a battery-like object, wires and some nails were found at the site by forensic experts.

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SEBI notifies guidelines on infra debt fund

As per the government norms an IDF may be set up either as a trust or company. While the trust based IDF (Mutual Fund) would be regulated by SEBI, an IDF set up as a company (NBFC) would be regulated by RBI

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) on Tuesday notified guidelines for launching infrastructure debt fund (IDF) which would invest 90% of its assets in debt securities of the sector companies, reports PTI.

“An infrastructure debt fund scheme shall be launched as close-ended scheme maturing after more than five years or interval scheme with lock-in of five years...,” SEBI said in a circular.

An IDF scheme, which can be set up by any existing mutual fund, would invest a minimum 90% of scheme assets in the debt securities and should have a minimum of five investors.

The minimum investment into IDF would be Rs1 crore and the minimum size of the unit would be 10 lakh, SEBI said.

The IDF, which was proposed by finance minister Pranab Mukherjee in the Union Budget for FY11-12, is aimed at accelerating and enhancing flow of long-term debt for funding the ambitious programme of infrastructure development in the country.

SEBI said the strategic investor would have to make a firm commitment of Rs25 crore. The units of infrastructure debt fund schemes shall be listed on the stock exchange.

“An infrastructure debt fund shall have minimum five investors and no single investor shall hold more than 50% of net assets of the scheme,” SEBI added.

The requirement of infrastructure in the 12th Plan has been pegged at $1 trillion.

As per the government norms an IDF may be set up either as a trust or company. While the trust based IDF (Mutual Fund) would be regulated by SEBI, an IDF set up as a company (NBFC) would be regulated by RBI.

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