Govt panel suggests PPP model for buying fertiliser assets abroad

“The country is deficient in all fertiliser minerals. Hence, concentrated efforts should be made by making consortium of public and private companies to acquire assets abroad,” says a report of the Working Group on ‘Mineral Exploration and Development (other than coal and lignite) for 12th Plan’

New Delhi: A government panel has called for a public-private partnership for acquiring fertiliser mineral assets abroad during the 12th Five Year Plan period (2012-17), reports PTI.

A 42-member panel, headed by the secretary of the mines ministry, has also emphasised on the creation of a sovereign wealth fund of Rs1,000 crore for acquisition of overseas mineral assets including fertiliser components.

“The country is deficient in all fertiliser minerals.

Hence, concentrated efforts should be made by making consortium of public and private companies to acquire assets abroad,” says a report of the Working Group on ‘Mineral Exploration and Development (other than coal and lignite) for 12th Plan’.

India, which is dependent on imports for key fertiliser raw materials, should specifically focus on acquiring assets in countries like Uzbekistan and Jordan, it said.

The working group has also stressed on strengthening relationship with mineral-rich countries and provinces with specific agreements, the panel said.

The government should also play a facilitating role by providing diplomatic support to private players in acquiring mineral assets abroad, it added.

“As the major developed and developing countries are trying to acquire overseas mines by way of purchasing assets abroad or diplomatic support, the Indian government needs to play a facilitative role to help by involving diplomatic support,” the panel advised.

It also said the concerned ministries—mines, fertilisers, atomic energy, commerce and external affairs—should focus on this issue on an urgent basis.

India has been planning to set up its own fund in order to acquire strategic overseas assets in mining and energy segments to meet its future needs.

Recently, the Planning Commission also suggested setting up a sovereign wealth fund with an initial corpus of $10 billion, mainly to invest in energy and mining assets abroad.

The sovereign wealth fund is a government-owned corpus where money is pooled in from state resources to invest in overseas assets.

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Govt should provide PPP detail in budget: Plan panel

“There should be supplements to the budgets providing project-wise, ministry-wise and sector-wise information on PPPs projects,” the Planning Commission said in a presentation, which is based on the Rangarajan Committee report on efficient management of public expenditure

New Delhi: With a view to improve transparency in public private partnership (PPP) projects, the Planning Commission wants the finance minister to disclose all the information about such ventures in the budget proposals, reports PTI.

“There should be supplements to the budgets providing project-wise, ministry-wise and sector-wise information on PPPs projects,” the Commission said in a presentation, which is based on the Rangarajan Committee report on efficient management of public expenditure.

The government is trying to promote infrastructure development through PPP projects and has suggested the state should pick projects under this mode in a big way.

PPP is a private business investment where two parties comprising government as well as a private player form a partnership to set up projects for providing public service.

The government is eyeing an investment of around $1 trillion in the 12th Five Year Plan (2012-17), with half of it coming from the private sector in infrastructure projects like railways, telecommunication, road and power.

At present, the government does not provide such consolidated information about the PPP projects being implemented by the various government departments along with the budget.

The commission also suggests that annuity commitments (by private player) under PPP projects may form part of the committed expenditure of the budget of the concerned ministry or department.

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M&A deals dip 21% to $33.6 billion in Jan-Oct

According to Grant Thornton’s latest Dealtracker report, India Inc announced M&A deals worth $992 million in October, taking the year-to-date tally to $33.6 billion. The transactions were worth $42.9 billion in the same period last year

New Delhi: Merger and acquisition (M&A) deals in the first 10 months of this year amounted to $33.6 billion, a fall of more than 21% from the year-ago period, reports PTI quoting global consultancy firm Grant Thornton.

According to Grant Thornton’s latest Dealtracker report, India Inc announced M&A deals worth $992 million in October, taking the year-to-date tally to $33.6 billion.

The transactions were worth $42.9 billion in the same period last year.

Grant Thornton India partner and practice leader Srividya CG said, “For the first 10 months of the year, the values are significantly higher than 2009 and 2008, but lower than 2010.”

For October India Inc’s M&A activity has been ‘stable’, Ms Srividya said, adding “very few large deals have been announced during this month. There has been no deal with value over half a billion and only four deals valued at $100 million plus.”

There were 57 M&A transactions worth $992 million in October. There were 45 deals worth $521 million in the year-ago period, Grant Thornton said.

Inbound deals wherein foreign entities merged with or acquired Indian businesses were the flavour of the month.

There were 13 deals worth $691 million in this category against seven transactions valued at $103 million in 2010.

There were five outbound deals worth $109 million against 18 transactions valued at $377 million in 2010.

The total value of domestic deals in October was $192 million (39 deals), compared to $40 million (20 deals) in the corresponding month of 2010.

A sector-wise analysis showed that manufacturing was the sector that accounted for the maximum deal value, followed by pharma & healthcare, IT & ITeS and media and entertainment in October.

The top five deals accounted for 79% of the total M&A deal values.

Meanwhile, private equity has shown a trend of slowing down for the month of October, but has grown significantly over the previous two years.

PE deal values amounted to $0.29 billion through 20 deals in October as compared to $0.31 billion by way of 26 transactions in the period under consideration last year.

However, the total PE deal summary over the last two years has increased significantly. From $2.7 billion in the first 10 months of 2009, it increased to $4.9 billion in 2010 to $7.2 billion so far this year.

“Private equity has shown a trend of slowing down for the month of October, but has grown significantly over the previous two years. The number of investments for the year so far, has surpassed the last three years, showing that the activity has improved considerably,” Ms Srividya said.

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