Newsviewer Exclusive
Prime Minister sets up mechanism to fast track project implementation

While implementation of public sector projects of over Rs1,000 crore will be tracked by the National Manufacturing Competitiveness Council, those in the private sector would be monitored by the Department of Financial Services

New Delhi: Amid declining growth rate and the need to arrest economic slowdown, Prime Minister Manmohan Singh on Friday approved setting up of an Investment Tracking System to ensure speedy implementation of mega projects envisaging outlay of over Rs1,000 crore, reports PTI.

The proposed mechanism is aimed at addressing delays in implementation of projects, said a statement from Prime Minister's Office (PMO).

While implementation of public sector projects of over Rs1,000 crore will be tracked by the National Manufacturing Competitiveness Council, those in the private sector would be monitored by the Department of Financial Services in the Ministry of Finance.

The decision to fast track investments would provide fresh impetus to the economy, which is grappling with slowdown. The economic growth rate during 2011-12 slipped to a nine-year low of 6.5% mainly because of slowdown in manufacturing and poor investment.

Several mega projects, including Posco's proposed $12-billion steel plant in Orissa, has been hanging fire because of regulatory clearances and land acquisition issues.

The decision to set up Investment Tracking System, the statement said, is in "the context of delays faced by projects on multiple fronts - security clearances, environmental clearances, other clearances and land related matters."

Issues concerning delay in implementation of projects was raised by India Inc at the last meeting of Prime Minister's Council on Trade and Industry in December.

The National Manufacturing Competitiveness Council and the Department of Financial Services would have to submit a quarterly report to the PMO of all projects monitored and issues that need to be resolved.

Through this tracking mechanism, projects would be periodically reviewed for any delays and specific or systemic issues will be identified for resolution, the statement said.

"While existing rules and laws have to be followed, it was widely felt that a lot of the delay is avoidable if only there is a will to resolve matters," it added.

The investment rate during 2011-12 declined to 29.5%, from over 30% a year ago.

Even Finance Minister Pranab Mukherjee had attributed the slowdown in economic growth to environmental issues and expressed hope that the situation would improve going forward.

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Economy & Nation Exclusive
Vote against Shriram Transport's share-swap, says advisory firm

According to a proxy advisory firm, the proposed share-swap between Shriram Transport Finance and Shriram Holdings is tilted in favour of shareholders of the latter and would lead in increasing promoter shareholding

Shriram Transport Finance Company (STFC) is proposing to approve a scheme of arrangement with Shriram Holdings (Madras) Pvt Ltd (SHMPL) with itself through a court-convened meeting of shareholders on 14 June 2012. However, a Bengaluru-based proxy advisory firm has recommended institutional investors to vote against the scheme, as it feels the share-swap is tilted in favour of SHMPL shareholders and would lead to an increase in promoter shareholding.

“As SHMPL’s sole business is its holding of STFC’s equity shares, the rationale of allotting over five lakh shares (STFC will allot 9.39 crore shares in place of 9.34 crore shares held by it SHMPL in STFC) is not disclosed by the company. At a closing price of Rs490.10 per share of STFC on 23rd May, the shares allotted in excess, have a market value of Rs24.54 crore,” the advisory firm said.

Genesis Indian Investment Company, ICICI Prudential Life Insurance Company, Ontario Teachers’ Pension Plan Board, Stichting Pensioenfonds ABP, Merrill Lynch Capital Markets Espana SASV, Equinox Partners LP and Fidelity Investment Trust are leading institutional investors in Shriram Transport Finance.

“Without any stated reason, the proposed share-swap is titled in favour of the shareholders of SHMPL.

We recommend shareholders vote against the amalgamation, as there is no rationale for allotting additional shares to the shareholders of SHMPL. While the amount itself may seem insignificant, it is the principle that is incorrectly applied and consequently leads to an increase in promoter holding without any basis,” the proxy advisory firm said.

On 27 April 2012, the Madras High Court had directed the company to call a meeting of its shareholders and creditors for considering and approving the scheme of arrangement between SHMPL and Shriram Transport Finance.

At 12.26pm on Friday, Shriram Transport shares were trading 3.5% down at Rs509 on the BSE, while the benchmark Sensex was marginally down at 16,082.

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COMMENTS

Nagesh Kini

5 years ago

The shareholding pattern being so skewed in favour of the promoters no shareholders esp. the minority can put up any opposition.
Even postal ballot won't do.
Strong shareholder awareness and stiff well oiled organized voting is the remedy.

CRISIL buys UK-based analytics firm Coalition for Rs250 crore

Coalition, which provides high-end analytics, mainly to leading global investment banks, reported revenues of 8 million pounds in 2011

Ratings agency CRISIL said it bought UK-based analytics firm Coalition Development Ltd in an all cash deal with a maximum payout of 29 million pounds or about Rs250 crore.

"The all-cash transaction has a maximum payout of 29 million pounds (around Rs.250 crore) with earn outs over two years, linked to achievement of specified milestones for the company's future revenues and profits. The acquisition will add to the earnings per share of CRISIL from the first year. The transaction is subject to regulatory approvals," CRISIL said in a release.

Coalition, which provides high-end analytics, mainly to leading global investment banks, reported revenues of 8 million pounds in 2011.

“Coalition’s cutting-edge analytical capabilities, in-depth understanding of the workings of financial markets and strong relationships with its clients will enable CRISIL Global Research & Analytics to widen service offerings, diversify its client base and deepen client relationships," said Roopa Kudva, managing director and CEO of CRISIL.

Coalition deploys unique proprietary analytics and algorithms to provide deep analytics on market size and dynamics, revenue opportunities and human capital. Coalition’s analytics provide a clear, actionable picture of the markets and are used by boards, strategy teams and top management at leading financial services institutions, CRISIL said in the release.

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