http://www.business-standard.com/articl ... 481_1.html
There are 60 services exempt from service tax, including education, healthcare, religious pilgrimage
There are 60 services exempt from service tax, including education, healthcare, religious pilgrimage
Where are they going to find land for palm oil cultivation? In Malaysia and Indonesia, Palm oil plantations are one of the biggest causes of rainforest destruction.hanumadu wrote:About time. What took so long after first saying to encourage palm oil production in India to curb imports.
They are talking about waste unused land.Kashi wrote:Where are they going to find land for palm oil cultivation? In Malaysia and Indonesia, Palm oil plantations are one of the biggest causes of rainforest destruction.hanumadu wrote:About time. What took so long after first saying to encourage palm oil production in India to curb imports.
Why is that fake ? Fixing infrastructure is an essential component of sustainable urbanization.Singha wrote:Fake analysis. I think chronic power shortages in narth being fixed post 2014 is the real reason
I do not have a business plan. I'm just looking at it an opportunity. There is a demand. I'm trying ascertain the exact type of demand. Grain vs vegetables vs cold storage vs something else.Suraj wrote:I recommend getting a handle on how GST progresses. Due to freer interstate commerce, a lot of big players will invest in sizeable centralized hub and spoke storage and distribution facilities, not just for food but general merchandise. You may incur losses if you can't invest on that scale. But I can't pretend to know the details of your business plan beyond that caution.
Inter-state commerce in India is still in its infancy due to tax/duty barriers at state borders. This leads to a fragmented market and lack of ability to scale, particularly when it comes to food storage and distribution. GST should dramatically change things here, but I think the biggest spoils will go to the deepest pockets.vnms wrote:I do not have a business plan. I'm just looking at it an opportunity. There is a demand. I'm trying ascertain the exact type of demand. Grain vs vegetables vs cold storage vs something else.
People obviously have money in India. Why haven't they invested in this. Is it a cost benefit issue? Is it an ROI issue. Who would actually use these warehouses? So on...
There is material out there, e.g.,vnms wrote: I do not have a business plan. I'm just looking at it an opportunity. There is a demand. I'm trying ascertain the exact type of demand. Grain vs vegetables vs cold storage vs something else.
People obviously have money in India. Why haven't they invested in this. Is it a cost benefit issue? Is it an ROI issue. Who would actually use these warehouses? So on...
Still in info gathering mode.
Annexure II
Assumptions for working out economics of a 5000 MT capacity potato cold storage
Capacity utilization : First year - nil, Second year - 80%, Third year onwards - 100%.
70% of the capacity is rented out and rest 30% capacity is used to store potato owned by the promoter(s).
Rental charges per season per MT of potato are Rs. 700/-.
Marketing margin on own potato considered at Rs. 3000/- per MT.
Pledge loan margin of 2% has been assumed on 20% of total handling, considering per ton price of potato at Rs.2500/ MT.
Electricity and other utilities expenses considered at Rs. 210/- per MT per annum.
Lump sum establishment and office expenses considered as Rs. 2 lakhs per annum.
Expenditure on maintenance and repairs considered as Rs. 20/- per MT per annum.
Expenditure on gas, fuel and lubricants considered as Rs. 10/- per MT per annum.
Labour charges for loading and unloading of potato in the cold store considered as Rs. 15/- per MT.
Insurance charges for the potato considered as Rs. 20/- per MT per season.
Interest on working capital considered at 18% per annum for six months on an average in a year.
Margin money considered at 25% of the financial outlay.
Interest on term loan considered at 15% per annum.
Even though the life of the cold storage will be much more, the life has been considered as 15 years for working out internal rate of return.
Depreciation rate of 5% and 15% has been considered for civil structures and plant & respectively.
Repayment period of nine years with one year grace period has been considered. The interest during first year has been capitalized and repayment of principal has been considered from third year.
Consumption of kerosene dropped by 21% in 2016-17 from a year ago to 5.3 million tonnes, while that of LPG jumped 9.8% to 21.5 million tonnes in the same period
Merchandise exports grow for 7th straight monthHaving seen a “modest setback” due to demonetisation last fiscal, the Indian economy will claw back to 7.2 per cent growth this financial year and rise further to 7.5 per cent in 2018-19, says a World Bank report. In its report on South Asian Economy, the World Bank said that “significant risks” to economic growth could emanate from fallout of demonetisation on small and informal economy, stress in the financial sector and uncertainty in global environment.
Also, a rapid increase in oil and other commodity prices could have a negative implication for the economy, it added. The country’s economic growth is expected to see an uptick at 7.2 per cent this fiscal and further accelerate to 7.5 per cent in 2018-19, the report said.
The growth slowed down to 6.8 per cent in 2016-17 due to a combination of weak investments and the impact of demonetisation, the World Bank said, adding that timely and smooth implementation of the GST could prove to be a significant “upside risk” to economic activity in 2017-18.
Merchandise exports jumped as high as 27.6% in March from a year before — growing for a seventh straight month even in the aftermath of demonetisation — thanks to a rebound in the outbound shipments of engineering goods, petroleum products and garments, apart from a favourable base. With this, exports in the last fiscal grew 4.7% to $274.64 billion — a much-needed rise after two successive years of decline.
Imports, too, jumped 45.3% in March — aided by a jump in the purchases of petroleum products (101%), gold (329%) and electronic goods (32%) — with merchandise trade deficit touching $10.44 billion. Despite the latest jump, imports in the last fiscal eased 0.2% to $380.36 billion.
The above news of exports growing despite INR versus USD going up by almost 8% shows that there is a lot of efficiency in the system to be exploited before currency movement will significantly impact export growth. The 8% gain in INR value is despite RBI buying hordes of USD to keep INR from rising even more. The currency movement can and should be exploited for competitive advantage only after the system efficiency has been considerably exploited.Suraj wrote: Merchandise exports grow for 7th straight month
Thank you very much Gupta saarA_Gupta wrote:There is material out there, e.g.,vnms wrote: I do not have a business plan. I'm just looking at it an opportunity. There is a demand. I'm trying ascertain the exact type of demand. Grain vs vegetables vs cold storage vs something else.
People obviously have money in India. Why haven't they invested in this. Is it a cost benefit issue? Is it an ROI issue. Who would actually use these warehouses? So on...
Still in info gathering mode.
http://keralaagriculture.gov.in/htmle/b ... torage.htm
Scroll down to Annexure II and beyondAnnexure II
Assumptions for working out economics of a 5000 MT capacity potato cold storage
Capacity utilization : First year - nil, Second year - 80%, Third year onwards - 100%.
70% of the capacity is rented out and rest 30% capacity is used to store potato owned by the promoter(s).
Rental charges per season per MT of potato are Rs. 700/-.
Marketing margin on own potato considered at Rs. 3000/- per MT.
Pledge loan margin of 2% has been assumed on 20% of total handling, considering per ton price of potato at Rs.2500/ MT.
Electricity and other utilities expenses considered at Rs. 210/- per MT per annum.
Lump sum establishment and office expenses considered as Rs. 2 lakhs per annum.
Expenditure on maintenance and repairs considered as Rs. 20/- per MT per annum.
Expenditure on gas, fuel and lubricants considered as Rs. 10/- per MT per annum.
Labour charges for loading and unloading of potato in the cold store considered as Rs. 15/- per MT.
Insurance charges for the potato considered as Rs. 20/- per MT per season.
Interest on working capital considered at 18% per annum for six months on an average in a year.
Margin money considered at 25% of the financial outlay.
Interest on term loan considered at 15% per annum.
Even though the life of the cold storage will be much more, the life has been considered as 15 years for working out internal rate of return.
Depreciation rate of 5% and 15% has been considered for civil structures and plant & respectively.
Repayment period of nine years with one year grace period has been considered. The interest during first year has been capitalized and repayment of principal has been considered from third year.
Thanks Suraj , That tells me FPI can buy short and long term bonds but there is a cap to itSuraj wrote:SEBI reports this data regularly.
Investments by FPIs in Government Securities: April 3 2017
SEBI circulars are here
Summary: foreigners hold Rs.2.6 lakh crore ($40 billion) of Indian government debt. That is the prescribed limit permitted by RBI.
Agreed and India is well placed for any country who wants to earn ~ 6.5 % for a 10 year bond , instead of earning says 2-3 % from other countries for the same period that would barely grow more than 2 % and have debt of 100 % or more of their GDP.Karthik S wrote:Interest is a function of how much risk a security carries. Lower the risk, lower the interest earned.
Yes there's a cap on it, and there's been a lot of demand to raise the cap, and RBI has done so several times. I posted about this in detail quite some time ago (~a year back). Indian GSecs are very attractive to many emerging bond fund managers.Austin wrote:Thanks Suraj , That tells me FPI can buy short and long term bonds but there is a cap to it
Does RBI declare list of countries that hold our bonds just incase if some country does ?
I think our bonds should pay handsome in interest for any country that wants to hold it without any fear of GOI defaulting it
Yes GSec is a good buy safe even for Indian InvestersSuraj wrote:Indian GSecs are very attractive to many emerging bond fund managers.
RBI increases FPI limits in govt bonds by Rs170 billion
From 2 years ago:
India to allow additional $18.2 bln in foreign purchases of govt debt