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Billionaire Infosys co-founder and face of "Aadhar" programme Nandan Nilekani formally joined the Congress today, a day after it made him party candidate for Bangalore Lok Sabha constituency where he is up for a tough fight.Amid drumbeats, Nilekani, Chairman of the Unique Identification Authority of India, was welcomed into Congress by KPCC President G Parameshwara who handed over the party flag to him before he filled in the membership form at a function at party office here."Bangalore needs a strong champion in Delhi and I'm set to provide that," said 58-year old Nilekani, known for being part of building Infosys, started in 1981 with an initial capital of $250 by N R Narayana Murthy and others, into a behemoth that is seen as showpiece of Indian IT industry.On his political baptism, Nilekani will take on BJP's Ananth Kumar, who has remained unchallenged in Bangalore South, winning the seat five times.Middle-class dominated Bangalore South has been electorally hostile to Congress since the late 1970s, the sole exception being its victory in 1989 when former Chief Minister R Gundu Rao had won.On facing a strong candidate like Kumar, Nilekani said "In every profession, politics or business there comes a time when somebody has to go, and that time has arrived."Weeks before his formal entry into Congress, Nilekani had begun his campaign, coming to grips with ground realities as he faces a daunting task to reach out to 20 lakh plus voters with the polls in Karnataka slated for April 17."I think the constituency needs a clean, capable local person, somebody who has worked selflessly; ....everywhere I go there is a strong desire for change. I have got tremendous support," he added.Asked if allegations of corruption against Congress-led UPA government would affect his prospects, he said "....it is not that the other party (BJP) has a great clean image either, we know the problems we had for the last five years in the state.""I look forward to working with the party because party is going through change; I have been invited to be part of the change, I would like to do that," Nilekani said. "....I'm confident that I will be an ambassador for Bangalore. I will work with all the MLA's, Chief Minister and Congress President to make sure that Bangalore gets the best deal," Nilekani said.Stating that he is experienced in public sector, private sector and in urban governance, Nilekani said he has gained some political experience too while working for Aadhar, as he had a task of convincing Chief Ministers from various political parties to implement the scheme.He said: "I think I bring some unique experience to the people, three major things I was part of. First from scratch I was co-founder of one of India's largest companies so I know how to create jobs and I have created lakhs of them. Number two from scratch from an idea I was part of a ID programme which gave 60 crore people identity. Third, 1999 to 2004 I was chairman of BATF (Bangalore Agenda Task Force) where I got an opportunity to go into nitty-gritty of local governance....""I know every detail of how a city functions, so the fact that I have diverse experience.. I'm a clean and local candidate. Therefore people should vote for me," he added.Asked about getting the ticket for elections soon after joining Congress, whereas loyal long-time party workers are still waiting for their chance, he said, "I was going to join the party was a well known fact for long time, for the last five years I have worked with this government- they gave the political backing to me to go ahead with the Aadhar project; ....they have chosen me as the candidate to bring change into the system."I'm very greatful to them (Congress), it is a matter of great pride they have given me the ticket. I will serve the party as a loyal party member and will make sure that this party does well," he added.Rules stipulate that ticket seekers should serve in the party for three years but it has apparently been relaxed in the case of Nilekani.After demitting office as Infosys CEO in 2007, Nilekani had taken charge as head of the Unique Identification Authority of India, mandated to give a billion Indians an identity card.(PTI)
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Petronas' plan to build a liquefied natural gas (LNG) terminal on Canada's Pacific coast edged closer to reality on Friday (07 March), as the Malaysian energy giant secured a third equity and offtake partner for the massive gas export project.Petronas said it would sell state-owned refiner Indian Oil Corp (IOC) a 10 per cent stake in its Pacific NorthWest LNG project, along with a 10 per cent stake in the northern British Columbia shale gas assets that will feed the LNG facility.India's largest oil refiner also agreed to an offtake deal for 1.2 million tonnes of LNG each year, or about 10 per cent of the project's annual exports.Petronas' Pacific NorthWest project is just one of about a dozen LNG terminals proposed for British Columbia's rugged Pacific coast, as top global energy firms scramble to build the facilities to export cheap Canadian gas to hungry Asian markets.The Malaysian state oil firm, which landed on the scene in 2012 with its C$5.2 billion takeover of Canada's Progress Energy Resources, has moved quickly to leapfrog its rivals. It secured an export permit in December and filed its key environmental documents last month.Petronas to build a 12 million tonne per year terminal near Prince Rupert, along the province's north coast, with first exports in late 2018. The liquefaction and export facilities are expected to cost up to $11 billion.Petronas has so far signed on three partners, including Japan Petroleum Exploration Co Ltd (Japex) and state-owned PetroleumBRUNEI, and will hold a 77 per cent stake when the IOC deal closes.IOC and Petronas did not disclose the financial details of their deal, but the Indian cabinet approved the purchase of the stake for C$1 billion in February, a government source told Reuters at the time.Indian companies, like their Asian peers, have been scouting for oil and gas assets abroad to meet rising domestic demand.India's gas demand will rise to 466 million cubic metres per day (mcmd) in 2016/17 ending March 31 from 286 mcmd in 2012/2013, according to government estimates, while its supply will be only half that amount.IOC said the super-cooled gas it takes from the Canadian facility each year will meet some of the requirement of its planned 5 million tonne a year Ennore LNG import terminal in Southern India.Jefferies India Private Ltd acted as sole financial adviser for IOC on the deal, while Stikeman Elliott LLP was its legal adviser.(Reuters)
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Leaders of the BRICS emerging market nations launched a $100 billion development bank and a currency reserve pool on Tuesday (15 July) in their first concrete step toward reshaping the Western-dominated international financial system.The bank aimed at funding infrastructure projects in developing nations will be based in Shanghai, and India will preside over its operations for the first five years, followed by Brazil and then Russia, leaders of the five-country group announced at a summit.They also set up a $100 billion currency reserves pool to help countries forestall short-term liquidity pressures.The long-awaited bank will be called the New Development Bank.It is the first major achievement of the BRICS countries - Brazil, Russia, India, China and South Africa - since they got together in 2009 to press for a bigger say in the global financial order created by Western powers after World War Two and centered on the International Monetary Fund and the World Bank.The BRICS were prompted to seek coordinated action following an exodus of capital from emerging markets last year, triggered by the scaling back of US monetary stimulus.The new bank reflects the growing influence of the BRICS, which account for almost half the world's population and about one-fifth of global economic output.The bank will begin with a subscribed capital of $50 billion divided equally between its five founders, with an initial total of $10 billion in cash put in over seven years and $40 billion in guarantees. It is scheduled to start lending in 2016 and be open to membership by other countries, but the capital share of the BRICS cannot drop below 55 per cent.The contingency currency pool will be held in the reserves of each BRICS country and can be shifted to another member to cushion balance-of-payments difficulties. This initiative gathered momentum after the reverse in the flows of cheap dollars that fueled a boom in emerging markets for a decade.Bid To Contain Volatility"It will help contain the volatility faced by diverse economies as a result of the tapering of the United States' policy of monetary expansion," Brazilian President Dilma Rousseff said."It is a sign of the times, which demand reform of the IMF," she told reporters at the close of the summit.China, holder of the world's largest foreign exchange reserves, will contribute the bulk of the contingency currency pool, or $41 billion. Brazil, India and Russia will chip in $18 billion each and South Africa $5 billion.If a need arises, China will be eligible to ask for half of its contribution, South Africa for double and the remaining countries for the amount they put in.China's official Xinhua news agency, citing unidentified sources at the Chinese Finance Ministry, said the new bank would give developing countries a greater say in the international financial order, a theme President Xi Jinping struck ahead of the summit.The new bank "will promote the global system of economic governance to develop in a just and fair direction," the agency said.Impasse BrokenNegotiations over the headquarters and first presidency lasted until the eleventh hour due to differences between India and China. The impasse reflected the trouble Brazil, Russia, India, China and South Africa have had in reconciling stark economic and political differences that made it hard for the group to turn rhetoric into concrete action."We pulled it off 10 minutes before the end of the game. We reached a balanced package that is satisfactory to all," a Brazilian diplomat told Reuters.Negotiations to create the bank dragged on for more than two years as Brazil and India fought China's attempts to get a bigger share in the lender than the others.In the end, Brazil and India prevailed in keeping equal equity at its launch, but fears linger that China, the world's No. 2 economy, could try to assert greater influence over the bank to expand its political clout abroad. China, however, will not preside over the bank for two decades.Facing efforts by leading Western nations to isolate Russia for annexing Crimea and stirring revolt in eastern Ukraine, the BRICS summit provided President Vladimir Putin with a welcome geopolitical platform to show he has friends elsewhere, economic powers seen as shaping the future of the world.The BRICS abstained from criticizing Russia over the crisis in Ukraine and called instead for restraint by all actors so the conflict can be resolved peacefully.(Reuters)
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Asian bullion consumers were cautious about this week's rally in prices, buying only on dips and selling at higher prices to make a profit. Premiums across Asia were either stable or lower from last week's levels as gold prices rallied almost 2 per cent for the week. Gold was trading near a four-month high of $1,354.80 on Friday and looked poised to log its fifth straight week of gains as a weaker dollar and geopolitical tensions in Ukraine boosted its safe-haven status. "It has been a mixed week," said one Singapore-based bullion dealer. "People are selling at $1,350 and above but came back to buy at around $1,330." A retailer in Singapore said buying has dropped off since prices broke through $1,320 and that consumers were selling scrap. In China, the world's biggest gold consumer, domestic prices were at a discount to spot prices on soft demand. Physical demand has fallen off sharply in China since the Lunar New Year holiday in late January. "Consumers had bought more than necessary last year when prices fell sharply so now when prices are higher, they are holding back," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong. "There is a small amount of selling in China as well." Gold prices fell 28 percent last year as funds moved money to higher-yielding stocks and the U.S. Federal Reserve began unwinding its massive stimulus measures. IndiaGold premiums in India, the second biggest consumer, fell further on Friday (7 March) to their lowest level in five months on lack of demand ahead of national elections set to begin next month. Premiums to London prices fell to $60 an ounce, a level last seen in early October, compared with $80 on Thursday. They hit a record of $160 in December because of government efforts to discourage gold demand, including a record high import duty of 10 percent. Dealers said demand was quiet due to fewer weddings ahead of the Holi festival, considered to be an inauspicious period for new beginnings. Also having an impact is the election code of conduct, according to which people are not allowed to carry more than Rs 50,000 in cash without proper documentation. "Cash movement will be less till May due to the election code of conduct, so people will hold on to cash and no unnecessary jewellery purchases will happen," said Bachhraj Bamalwa, director with All India Gems and Jewellery Trade Federation. (AGencies)
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The United States would welcome Bharatiya Janata Party's (BJP) prime ministerial candidate Narendra Modi if he wins the upcoming election, a U.S. official said, in the clearest sign Washington will drop a travel ban on Modi imposed after anti-Muslim riots in 2002. US Assistant Secretary of State Nisha Biswal told a television interviewer that Washington was ready to do business with Modi, the front runner ahead of the April-May general election who is best placed to form a coalition government. "I would just say that the United States has welcomed every leader of this vibrant democracy, and that a democratically elected leader of India will be a welcome partner," Biswal told Headlines Today when asked if Modi, as prime minister, would be granted a U.S. visa. Biswal made her comments in New Delhi on a visit to rebuild trade and political ties shaken by a row over the arrest in New York last December of an Indian diplomat suspected of visa fraud. US Ambassador to India Nancy Powell visited Modi at his home in Gandhinagar in Gujarat last month, ending a long estrangement over riots that erupted in the state governed by the Hindu nationalist leader. At least 1,000 people, most of them Muslims, were killed in 2002 when mobs went on a rampage across Gujarat after a train carrying Hindu pilgrims was torched, killing 59 people. Powell's visit was the highest-profile encounter between US officials and Modi since the State Department revoked his visa in 2005 over the bloodshed to which rights activists say he turned a blind eye. He denies the allegation. Biswal said the United States hoped India would continue to build a tolerant, moderate and secular society when asked if Washington had put its human rights concerns on the back burner because of Modi's political rise. "Visa issues are handled on a case by case basis. And determinations are made based on the facts of the day and are reviewed at the time that a request is made," she said according to a transcript released by the US embassy. The U.S. administration, which does not want to be seen as taking sides in the Indian election campaign, has stopped short of stating publicly that Modi would be able to travel to the United States should he win the lower house election, leading to speculation that he would not be welcome in Washington. But diplomats say the until the election results are known, the question of whether Modi would be given a visa is hypothetical. Should he become the country's next leader, he would automatically receive a US visa, they say. Modi himself has not commented on the travel ban, but for his supporters in the Bharatiya Janata Party and outside the US decision has been a sore point. Senior party leader Arun Jaitley said last month that the US boycott had not been based on any evidence or court verdict but on "excessive propaganda". Britain was the first European country to end its boycott on meeting Modi followed by other European countries last year.(Reuters)
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In two years of tough negotiations to create the new BRICS development bank, the main stumbling block was not a lack of resources or commitment, but fellow partner China.The Chinese initially wanted a bigger share of the bank that was formally launched on Tuesday by the leaders of the five BRICS countries in a direct challenge to the West's tightly-held grip over global finances, officials involved in talks said.In the end, Brazil and India prevailed in keeping capital participation equal among members, but fears linger that China, the world's No. 2 economy, could try to assert greater influence over the $100 billion bank to expand its political clout abroad."It is inevitable that the Chinese will dominate the new bank," said Riordan Roett, a political scientist at Johns Hopkins University. "The Chinese don't get involved in these ventures unless they are going to have, not total control, but a significant amount of influence."Known for their striking differences in economics and politics, the BRICS face the challenge of containing China's drive to control institutions that were supposed to give each partner an equal voice.Internal discord became evident on Tuesday when the group struggled to overcome a last-minute stalemate in negotiations as China and India vied for the headquarters of the bank. To overcome the snag, Brazil withdrew its request for the bank's first presidency in favor of India, a senior official involved in the discussions said.The bank will be based in Shanghai, China's business hub.The objective of the bank is to break away from a model that gives little voting rights to emerging economies and perpetuates the dominance of the United States and Europe over the International Monetary Fund and World Bank."This is a big challenge for the BRICS. Sometimes when you get down to the actual negotiations and countries want more say, they forget about some of their lofty aspirations when they were criticizing the IMF and World Bank," said Kevin Gallagher, professor of international relations at Boston University.China already has the largest share of the new reserve fund, also launched on Tuesday and known as the Contingent Reserves Arrangement. It pledged $41 billion while Brazil, Russia and India promised $18 billion each and South Africa $5 billion.Chinese CloutAlthough China's economy has slowed in recent years, it remains the world's main engine of growth. Brazil, India and Russia have slowed even more sharply since the group's first adopted the BRIC acronym in the past decade. Much-smaller South Africa joined the group in 2010.China's economy is bigger than that of all the other BRICS combined and represents the bulk of the group's foreign trade."It is only natural for China to have more influence at the bank because of the importance of its economy," said Paulo Wrobel, professor at the Pontifical Catholic University of Rio de Janeiro's BRICS Policy Center.China's economic might has at times put it at odds with some of its own BRICS partners.An avalanche of Chinese manufactured imports into Brazil over the last three years prompted the South American country to raise trade barriers to keep its manufacturers from going under.In private, other members have frowned at China's slow-moving liberalization of its currency, the yuan, which makes its exports much cheaper.So officials from the other smaller economies have tried to prevent China from growing too powerful in the new institutions. The bank's internal rules seek to prevent any single member from holding too much sway."The idea is to have a professional institution ruled by the best banking practices and shared governance that will keep that risk at bay," Luciano Coutinho, head of Brazil's own development bank BNDES, told Reuters on the sidelines of the summit.The BRICS will hold a minimum stake of 55 percent at the lender, but some analysts say China could increase its hold by bringing in new member countries from its sphere of influence.However, others argue that is in China's best interest to be a team player - at least for now."For China there is interest in making it look like this is not a Chinese dominated bank because that will allow it to finance projects that otherwise it couldn't," said Oliver Stuenkel, a professor at the Getulio Vargas Foundation in Sao Paulo. "The bank is a way to depoliticize Chinese credit."(Reuters)
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Chinese President Xi Jinping invited India on Tuesday (15 July) to attend a summit of the APEC trade group in November, sending a message of cooperation during the first meeting between the new leaders of the world's most populous countries.But behind the smiles at Xi's 80-minute meeting with Prime Minister Narendra Modi in Brazil, India's rivalry with its powerful neighbour bubbled up as the two nations argued over who would host the headquarters of a proposed BRICS joint development bank.Xi and Modi met soon after their arrival at a summit of the BRICS group of emerging powers. Xi said the two countries should join hands in setting global rules and suggested he attend the November meeting of the 21-nation APEC in Beijing, as well as take part in Chinese-led regional initiatives.India has never attended an APEC summit, and has long sought to become a member to help boost its economy.The bonhomie was partially overshadowed by news that the BRICS groups - Brazil, Russia, India, China and South Africa - had not yet decided on where to locate the headquarters of the development bank they were expected to launch on Tuesday.The frontrunners to host the bank have been China and India."It will be every country's desire, and so will it be India's, to have it in India, because Delhi or any city in India has its natural advantages, English-speaking, very skilled manpower, and if you look at the geographical position of all the BRICS countries, the five of them, India is very centrally located," Nirmala Sitharaman, India's trade minister, and part of Modi's entourage in Brazil, told TV network Times Now.Leaders of the five countries were expected to a sign a deal on Tuesday to establish a $100 billion bank and a reserves fund of the same size to challenge Western dominance over development lending.Disputed Himalayan BorderXi also called for speedy negotiations to settle disputes over the 4,000-km (2,500-mile) Himalayan border over which India and China went to war in 1962 and which have flared in recent years over allegations of cross-border incursions."Xi suggested the two sides manage, control and handle differences with a positive and forward-looking attitude and find fair, reasonable and mutually acceptable solutions to their border issues at an early date," Xinhua quoted him as saying.China claims more than 90,000 sq km (35,000 sq miles) in the eastern sector of the Himalayas. India says China occupies 38,000 sq km of its territory on the Aksai Chin plateau in the west.Modi called for strengthening "mutual trust" and maintaining peace on the border, the government said in a statement.His Bharatiya Janata Party has campaigned for a strong national security posture, saying previous governments have been weak-kneed in their dealings with both China and Pakistan.But Modi has sought to build on a booming trade relationship with China while trying to balance India's security interests.He sought Chinese investment in Indian infrastructure projects which he suggested to Xi would help address the trade imbalance currently in Beijing's favour.APEC includes Canada, Mexico, Russia and the United States and accounts for about 40 percent of the world's population, 55 percent of global gross domestic product and 44 percent of world trade.New Delhi's bid to become an APEC member has been stymied for two decades because its economy wasn't integrated into the global system and in later years because of a membership freeze.The United States, the group's dominant nation, in recent months has faced calls to promote India's candidature to help balance the group on grounds that the world's 10th largest economy in nominal terms cannot be kept out.Alyssa Ayres, a former U.S. State Department official and now a senior fellow at the Council on Foreign Relations, said in a memorandum that Washington should champion India's request to revitalise India-U.S. economic ties that have soured recently.BRICS Aims To Set Up Infra FundThe Russian Direct Investment Fund together with sovereign wealth funds from its peers among the BRICS developing nations aim to form a joint fund to invest in infrastructure projects, the RDIF said on Tuesday.Leaders of Brazil, Russia, India, China and South Africa are holding an annual summit in Brazil this week where they are expected to sign a deal creating a $100 billion development bank and a currency reserve fund of the same amount.The RDIF, a state-backed private equity fund worth $10 billion, invests alongside foreign partners and has previously attracted money from the Middle East and Asia."Representatives of leading financial institutions, BRICS sovereign wealth funds and RDIF’s international partners have given their complete support to the initiative," RDIF said in a statement.If the negotiations are successful, the joint fund will become operational by the next BRICS summit which is scheduled to take place in Russia's city of Ufa in 2015, the Fund said.No details on the potential capital of the new found have been given."The establishment of such a fund would do much to address the challenge of insufficient financing for infrastructure projects in BRICS countries, which each present a huge opportunity and experience similar issues in the delivery of infrastructure projects," Kirill Dmitriev, chief executive officer of the RDIF, said in a statement.The money is to be invested in projects within the BRICS countries ranging from construction of roads, bridges and airports to municipal infrastructure.(Reuters)
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As the heads of state of the most populous nations meet in Fortaleza, they should reflect on the name of the city where they have gathered. In Portuguese, Fortaleza means fortress. And that’s how the markets look to each of the member countries of BRICS. While the BRICS have been meeting as a formal group for a while now, there isn’t much for the members to crow about. The member countries have been talking to each other rather than with each other. Unlike trade blocs that are built on regional proximity, BRICS are spread across four continents. What they have in common is a young population, rising growth rates and aspirational market. Traditionally trade and investment have been focused around the developed countries. The emerging markets are still too dependent on western markets and have not adequately explored peer countries. While in recent years, countries like China and India have moved to African markets, there aren’t enough trade and investment links between emerging markets. As the leaders meet in Fortaleza, they should avoid quibbling over the headquarters of the BRICS Bank. This is not a matter for muscle flexing. The bank can be headquartered anywhere as long as it has equal representation by all member countries. It should avoid becoming institutions like World Bank and International Monetary Fund that are seen as fiefdoms of the US and EU respectively. For BRICS it is important to offer greater market access to each other. This is partly about reduced tariffs and other barriers. The last few years have seen a general decline in trade and non-trade barriers but the BRICS need to thrash out specific points of conflict. Most importantly, the logistic and travel connections between the countries must be greatly enhanced. Unless people can travel freely and easily across these five countries, improved trade and investment linkages can’t be expected. All of them are well connected with Europe and the US thanks for historic relations. But now the focus must be on improving connections within. That would be the best way to break down the walls around the countries and create a larger, more accessible fortress called BRICS.
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The rupee was at 61.39/40, its highest level since 17 January and above its closed of 61.75/76 on Wednesday (05 March), a day after data showed the country's current account deficit narrowed in the December quarter.Data post-market hours showed India's balance of payments swung back into surplus during the October-December quarter, helped by government curbs on gold imports, after two quarters in deficit.The rupee has seen moving in a 61.25 to 61.65 range.Almost all Asian currencies also gain on easing worries about the standoff in Ukraine.Traders will continue to monitor domestic shares, trading up 0.5 per cent, for clues on foreign fund flows.(Reuters)
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The rupee is trading lower at 60.23/60.24 compared with Monday's close of 60.07/08 as the dollar trades stronger against the Indian unit's Asian peers.Dealers say state-run banks have been mopping up dollars for oil- and defence-related payments, aiding the greenback.The Nifty is up 0.8 per cent. The local share market will provide cues on the direction of foreign fund flows.Overseas investors sold Indian shares worth $93.04 million on Monday (14 July), provisional exchange data shows.The rupee is seen moving in a 59.85 to 60.35 range during the session.Investors await Federal Reserve Chair Janet Yellen's testimony before the congress due later in the day.(Reuters)
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