Himachal cancels contract with Chinese company due to delay in execution

The state government on 11th August, cancelled a contract for widening of Theog-Hatkoti-Rohru road, awarded to a Chinese company for delay in execution of the project

Shimla: Himachal Pradesh government has cancelled the contract with a Chinese company for delay in executing a World Bank-funded road widening project in Shimla district, Public Works Department Minister, Gulab Singh said, reports PTI.


"The contract for widening of Theog-Hatkoti-Rohru road, awarded to a Chinese company was terminated on 11th August", the minister said in reply to a question.


Citing reasons for termination of the contract, he said inadequate funding and non-mobilisation of resources by Longjian Road and Bridge Company led to delay.


Singh said the Rs228-crore contract for construction of the 81km-long road was awarded to the company through global bidding.


As per the agreements, the construction work that began on 5 June 2008 was scheduled for completion in three years, he added.


The minister said that in the initial stage there was delay in transfer of land and getting clearances and work came to a standstill in 2009 when the Indian government cancelled the visas of employees of the Chinese company and most of the employees had to return to China.


The government had served three notices before terminating the contract through a consultant appointed by the World Bank, he said.


"To make the road motorable, the PWD spent Rs2.5 crore during the past three-four months, Singh added.


Bajaj Finserv to raise Rs941 crore through rights issue

The Pune-based company has priced the proposed issue at Rs650 per share and would use the money to fund its non-banking unit


New Delhi: Diversified financcial services company Bajaj Finserv said it plans to raise Rs941 crore through a rights issue to fund its business growth, reports PTI.


Issue of equity shares on a rights basis to its existing equity shareholders would aggregate to Rs941 crore approximately, Bajaj Finserv said in a filing on the BSE.


The Pune-based company has priced the proposed issue at Rs650 per share. The rights issue entitlement ratio is one equity share for every 10 shares held as on the record date.


The holding company, which is present in segments like lending to finance consumer durables, equipment and both life and general insurance, plans to plough the money to fund its share in its non-banking subsidiary.


The company has fixed 8 September 2012, as the record date for the purpose of proposed rights issue of equity shares.


The special committee constituted by the board also took note of the approval received from the Foreign Investment Promotion Board (FIPB) on 2 August 2012, it said.


FIPB's approval is for the issuance and allotment of equity shares up to 10.4% of the equity of the company to persons resident outside of India including FIIs, NRIs and holders of Global Depository Receipts pursuant to the rights issue, it added.


Growing trend of governments adopting e-payments: MasterCard

According to MasterCard, several governments across the globe are using e-payments as an alternative to cash and cheque-based benefit programme

New Delhi: Governments world over are increasingly adopting electronic payment (e-payment) methods as an alternative to cash and cheque-based benefit programme, as a measure to save money and improve financial inclusion, reports PTI.
The United States, Italy, Canada, United Arab Emirates and Romania are some of the latest examples of governments going paperless as a cost-savings opportunity and a method of addressing financial inclusion, MasterCard Worldwide said in a statement.
Most recently, the South African Social Security Agency distributed more than 2.5 million debit cards to social grant recipients across the country with a target of 10 million cards by March 2013, the statement added.
"By supporting governments around the world with electronic payment programmes we are helping save money and improve efficiencies. But more importantly, together we are opening up a world of inclusion for those who have previously not had access to traditional financial services," MasterCard Worldwide Chief Products Officer Tim Murphy said.
According to Mastercard, the United States Department of the Treasury is also moving towards all electronic payments, including the Direct Express debit card, which is used to deliver social security and other federal benefits.
The programme is expected to save the US government $1 billion over the first ten years, the statement said.
Some of the other examples include the Italian central government's launch of the "Carta Acquisti" social card programme to assist citizens in need. In Romania, the Poste Romania also began distributing prepaid cards across the country to social benefit recipients.
Meanwhile, the Toronto Employment and Social Services (TESS) recently launched prepaid benefits cards for the delivery of social assistance disbursements. In Mexico, a pilot is underway for the residents of Oaxaca to access a variety of financial instruments through their mobile phones SMS functions.


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