Reliance Dual Advantage Fixed Tenure Fund II Announces Dividend

Record date for dividend is 04 March 2015

Reliance Mutual Fund has announced 04 March 2015 as the record date for declaration of dividend on the face value of Rs 10 per unit under Dividend Payout Option of Reliance Dual Advantage Fixed Tenure Fund II-Plan A. 

The amount of dividend will be Rs 0.10 per unit as on the record date.

Reliance MF Announces Rollover of Reliance Dual Advantage Fixed Tenure Fund II-Plan A

The scheme shall mature on 29 April 2015 

Reliance Mutual Fund has decided to rollover / extends maturity of Reliance Dual Advantage Fixed Tenure Fund II-Plan A, a close ended hybrid scheme by 56 days. Pursuant to roll over, the scheme shall mature on 29 April 2015. 

Reliance Dual Advantage Fixed Tenure Fund II-Plan A was launched on 15 February 2012. 

The units under the Scheme were allotted on 05 March 2012. The Scheme is scheduled to mature on 04 March 2015.

SBI MF Announces Rollover of SBI Debt Fund Series – 366 Days – 54

The scheme shall mature on 04 April 2018

SBI Mutual Fund has announced rollover of SBI Debt Fund Series – 366 Days – 54. 

The scheme will be rolled over for a period of 1120 days. Accordingly the revised maturity date of the scheme will be 04 April 2018.

Motilal Oswal MOSt Focused Midcap 30 Fund Announces Dividend

Record date for dividend is 04 March 2015

Motilal Oswal Mutual Fund has announced 04 March 2015 as the record date for the declaration of dividend on the face value of Rs 10 per unit under dividend option in regular plan and direct plan of Motilal Oswal MOSt Focused Midcap 30 Fund. 

The quantum of dividend will be Rs 1.00 per unit under each plan.

UTI Fixed Term Income Fund – Series XXI – VIII (1136 Days) Floats On

NFO period is from 27 February to 05 March 2015

UTI Mutual Fund has launched a new fund named as UTI Fixed Term Income Fund – Series XXI – VIII (1136 Days), a close ended income scheme. The duration of the scheme is 1136 days from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 27 February to 05 March 2015.

The investment objective of the scheme is to generate returns by investing in a portfolio of fixed income securities maturing on or before the date of maturity of the scheme. 

The scheme offers growth option, quarterly dividend option with payout and reinvestment facility, flexi dividend option with payout and reinvestment facility, annual dividend option with payout and reinvestment facility and maturity dividend option with payout facility. 

The scheme would allocate 80%-100% of assets in debt instruments with low to medium risk profile and invest upto 20% of assets would be allocated to money market instruments with low risk profile. 

The minimum application amount is Rs 5000 and in multiples of Rs 10 under all the options.

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period. 

Entry and exit load charge will be nil for the scheme. 

Benchmark Index for the scheme is CRISIL Composite Bond Fund Index. 

Sunil Patil is the fund manager for the scheme. 

DSP BlackRock Ultra Short Term Fund Floats On

NFO period is from 27 February to 04 March 2015

DSP BlackRock Mutual Fund has launched a new plan named as DSP BlackRock Ultra Short Term Fund, an open ended income scheme. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 27 February to 04 March 2015. 

The investment objective of the scheme is to seek to generate returns commensurate with risk from a portfolio constituted of money market securities and / or debt securities.
The scheme offers growth option, daily dividend with reinvest option, weekly dividend, monthly dividend and quarterly payout option with payout & reinvest option. 

The scheme would allocate 80%-100% of assets in money market securities and / or debt securities with residual maturity or less than or equal to 1 year and upto 20% of assets in debt securities with residual maturity of greater than 1 year with low to medium risk profile. 

The minimum application amount is Rs 1000 and any amount thereafter. 

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period. 

Entry load: Not applicable. 

Exit load: Nil. 

Benchmark Index for the scheme is 50% of CRISIL Composite CP Index + 50% of CRISIL Composite CD Index. 

The scheme will be managed by Laukik Bagwe. 

Mutual funds continue buying

Net inflow of Rs 98.80 crore on 26 February 2015

Mutual funds bought shares worth a net Rs 98.80 crore during the previous trading session on Thursday, 26 February 2015, compared with net inflow of Rs 180.20 crore on Wednesday, 25 February 2015. 

The net inflow of Rs 98.80 crore on 26 February 2015 was a result of gross purchases of Rs 1596.70 crore and gross sales of Rs 1498 crore. On that day, the S&P BSE Sensex fell 261.34 points or 0.90% to settle at 28,746.65, its lowest closing level since 11 February 2015. 

Mutual funds have bought shares worth Rs 3613.60 crore in this month so far (till 26 February 2015). Mutual funds had bought shares worth Rs 879.50 crore in January 2015. 

Second straight day of gains for bullions

Gold marks its highest settlement in more than a week 

Gold prices rallied for a second straight session on Thursday, 26 February 2015 at Comex to mark their highest settlement in more than a week. Gold prices ended the U.S. day session with modest gains on Thursday, but well down from highs seen early in the session. Traders tried to get cues between forces—a sharply higher U.S. dollar index and sharply lower crude oil prices. Economic data in the U.S. were mixed Thursday. Weekly jobless claims rose more than expected and January consumer prices tumbled, while the rise in durable-goods orders came in higher than was forecast.

Gold for April delivery rose $8.60,or 0.7%, to settle at $1,210.10 an ounce on Comex.
May silver also tacked on 15 cents, or 0.9%, to end at $16.624 an ounce. 

Economic data included Initial Claims, CPI, Durable Orders, and FHFA Housing Price Index. The initial claims level increased to 313,000 from an upwardly revised 282,000 (from 281,000) while the consensus expected an increase to 290,000. The Department of Labor reported that there weren't any special factors impacting the initial claims level. 

The CPI index declined 0.7% in January after declining an upwardly revised 0.3% (from 0.4%) in December while the consensus expected a decline of 0.6%. As expected, a large drop in gasoline prices was the primary catalyst for the decline in consumer prices. Gasoline costs fell 18.7% in January after declining 9.2% in December. The resulting gasoline decline caused overall energy prices to fall 9.7% in January. Excluding food and energy, core CPI increased 0.2% in January after increasing 0.1% in December while the consensus expected an increase of 0.1%. 

Durable goods orders increased 2.8% in January after declining a downwardly revised 3.7% (from 3.3%) in December while the consensus expected an increase of 1.7%.

Crude settles at lowest level in nearly a month

Strong US dollar pushes prices down 

Crude oil futures settled at their lowest level in nearly a month on Thursday, 26 February 2015 at Nymex with strength in the U.S. dollar adding insult to injury to a market that is already suffering from record-high crude supplies in the U.S. Natural-gas prices, meanwhile, dropped by almost 6% after U.S. government data showed that supplies fell less than expected last week despite the bitter cold in the eastern U.S. Industry experts pointed to the dollar's rise against the euro as the main driver for the abrupt plunge in oil. 

April crude dropped $2.82, or 5.5%, to settle at $48.17 a barrel on the New York Mercantile Exchange. That was the lowest close for a most-active contract since late January. 

Wednesday's U.S. weekly crude stockpile data was largely bearish with a larger-than-expected increase of 8.4 million barrels reported by the Energy Information Administration. But gasoline supplies fell by more than the market expected. 

Economic data included Initial Claims, CPI, Durable Orders, and FHFA Housing Price Index. The initial claims level increased to 313,000 from an upwardly revised 282,000 (from 281,000) while the consensus expected an increase to 290,000. The Department of Labor reported that there weren't any special factors impacting the initial claims level. 

The CPI index declined 0.7% in January after declining an upwardly revised 0.3% (from 0.4%) in December while the consensus expected a decline of 0.6%. As expected, a large drop in gasoline prices was the primary catalyst for the decline in consumer prices. Gasoline costs fell 18.7% in January after declining 9.2% in December. The resulting gasoline decline caused overall energy prices to fall 9.7% in January. Excluding food and energy, core CPI increased 0.2% in January after increasing 0.1% in December while the consensus expected an increase of 0.1%. 

Durable goods orders increased 2.8% in January after declining a downwardly revised 3.7% (from 3.3%) in December while the consensus expected an increase of 1.7%. 

Among other energy products, the front-month March gasoline contract down 1.1 cents, or 0.7%, at $1.708 a gallon, pulling back after Wednesday's 6.1% rally. March heating oil ended at $2.136 a gallon, up 3.2 cents, or 1.5%. The March contracts for the products expire at the close of trading on Friday. 

April natural gas fell 16.5 cents, or 5.8%, to end at $2.697 per million British thermal units on its first full trading day as a front-month contract. The EIA reported Thursday that supplies of natural gas declined by 219 billion cubic feet for the week ended Feb. 20. Market had forecast a decline of between 239 billion cubic feet and 243 billion cubic feet. 

Rupee slumps

At 61.83/85 per dollar 

Rupee closed lower at 61.83/85 per dollar on Friday (27 February 2015), versus its previous close of 61.75/76 per dollar. 

 

Bond yield eases by 02 bps

10-year G-sec Paper yield closes at 7.72% 

The yield on 10-year benchmark federal paper, 8.40% GS 2024, eased by 02 basis points to close at 7.72% compared with 7.74% close in the previous trading session. The total trading volume on central bank's gilts trading platform stood Rs 26,250 crore. 

Bond yield eased ahead of Union Budget 2015-16 due on 28 February 2015. Market eye the fiscal deficit and borrowing numbers as also the overall plans from the government. 

The weighted average rate in the overnight call money eased to 7.55% compared with 7.75% in previous session. The call money rate hovered in the range of 6.40% to 7.90% with the volume of Rs 20,442.31 crore. 

FPIs make massive purchases

Net inflow of Rs 2496.56 crore on 26 February 2015 

Foreign portfolio investors (FPIs) bought shares worth a net Rs 2496.56 crore during the previous trading session yesterday, 26 February 2015, much higher than inflow of Rs 290.04 crore on Wednesday, 25 February 2015. 

The net inflow of Rs 2496.56 crore on 26 February 2015 was a result of gross purchases of Rs 8545.19 crore and gross sales of Rs 6048.63 crore. There was a net inflow of Rs 2489.79 crore into the secondary equity market on 26 February 2015, which was a result of gross purchases of Rs 8535.12 crore and gross sales of Rs 6045.33 crore. The S&P BSE Sensex had fallen 261.34 points or 0.90% to settle at 28,746.65 on that day, its lowest closing level since 11 February 2015. 

There was a net inflow of Rs 6.77 crore into the category 'primary market & others' on 26 February 2015, which was a result of gross purchases of Rs 10.07 crore and gross sales of Rs 3.30 crore. 

FPIs have bought shares worth a net Rs 11475.53 crore in this month so far (till 26 February 2015). They have bought shares worth a net Rs 5922.37 crore from the secondary equity markets in this month so far (till 26 February 2015). FPIs bought shares worth a net Rs 12918.97 crore last month. They had bought shares worth a net Rs 12686.51 crore from the secondary markets last month. 

FPIs have bought shares worth a net Rs 24394.70 crore in calendar year 2015 so far (till 26 February 2015). They have bought shares worth a net Rs 18608.90 crore from the secondary equity markets in calendar year 2015 so far (till 26 February 2015). FPIs had bought shares worth a net Rs 97055.90 crore in the calendar year 2014. They had bought shares worth a net Rs 84440.80 crore from the secondary equity markets in calendar year 2014. 

Asia Pacific Market: Stocks mixed on weak offshore cues

Asia Pacific share market ended mixed on Friday, 27 February 2015, on tracking weak lead from Wall Street overnight. The risk sentiments also softened after US data on Thursday which were seen supporting a move for the Federal Reserve to raise interest rates in the second quarter. 

The relative outperformance of the US economy and consequent expectations the Fed will begin raising borrowing costs this summer reducing appetite for risk assets. Investors are now waiting for revised fourth quarter U.S. gross domestic product data due later on Friday for another health check of the world's largest economy. 

Among Asian bourses
 
Australia stocks end 0.34% higher
 
The Australian share market finished the session higher, recouping early losses, on the back of broad-based gains in key bullion, technology, industrial, telecom, financial, realty and mining companies overshadowing losses on the consumer staples front. The benchmark S&P/ASX 200 Index advanced 20.30 points, or 0.34%, to 5928.80, while the broader All Ordinaries Index was up 20.30 points, or 0.35%, to 5898.50. Market turnover was relatively healthy, with 1.97 billion shares changing hands worth of A$6.63 billion. Rising stocks outnumbered declining ones, with total of 768 stocks up, while remaining 597 down.
Newcrest Mining jumped 3.3% to A$14.39 after trimming its stake in rival Evolution Mining (down 9.6% to A$0.85) to just below 15%, selling the shares at a discount to the previous closing price. 

Rio Tinto rose 1.1% to A$64.41 after announcing a restructuring that would shrink its total number of divisions to four, merging its uranium unit with that for diamonds and its coal unit with copper. 

Qantas Airways jumped by 1.4% to A$2.89after J.P. Morgan raised its target price for the shares, and Moody's removed the negative outlook on the airline's credit rating following the latest earnings results. 

Woolworths fell 9.5% to A$30.71 after it reported a modest (3%) drop in first-half profit, but also cutting its full-year guidance at the low end of the expected range. 

GrainCorp tool a 2% loss at A$9.87 as it warned on its full-year result, citing a smaller crop. The company forecast profit before one-time items of between A$45 million and A$60 million in the year through September, a sharp fall from A$95 million the previous year. 

Earnings before interest, tax, depreciation and amortization are expected to be between A$240 million and A$270 million, down from A$293 million in the 2014 financial year. 

Shares of Harvey Norman advanced 1.6% to A$4.42 after the company posted net profit rose to A$142 million in the six months through December, from A$111.4 million a year earlier. Sales for the period were 3.2% higher at A$3.09 billion, and 3.4% higher on a like-for-like same-store basis. Australian electronics, white goods and furniture retailer expects positive trends in its business to continue as consumer sentiment looks set to remain stable, even as the broader Australian economy struggles to transition away from resources investment-led growth. 

Nikkei edges up
 
Japanese share market ended marginally higher in volatile trade, as raft of data painting diverging pictures of Japan's economy. The Nikkei Stock Average ended higher by 12.15 points, or 0.06%, to 18797.94. The broader Topix index grew by 2.17 points, or 0.14%, to 1523.85. 

The Ministry of Economy, Trade and Industry (METI) said on Friday that Japanese industrial production rose 4.0% in January, the second straight on-month increase, an indication that industrial activity is continuing its gradual recovery on the back of strong exports to Asia and the US. Looking ahead, the METI projects output will rise 0.2% in February from the previous month and then decrease 3.2% in March, based on surveys of companies. The ministry maintained its assessment of production activity, saying that output is on a gradual recovery path. 

Separately, the data released by the Ministry of Economy Trade and Industry showed Japanese retail sales fell 2.0% in January from a year earlier, marking first decline in seven months, as bad weather and a continued decline in real incomes kept workers from spending.
Government data released Friday showed that on-year growth in the core consumer price index--stripping out volatile fresh-food prices and an increase in the sales tax last year--slowed to a 0.2% increase in January from a 0.5% rise in the previous month. 

Shares of Fast Retailing Co added 0.7% to 46330 yen after Chief Financial Officer Takeshi Okazaki said at a Hong Kong news conference Thursday that the broad slowdown in consumer spending in China--one of the firm's fastest growing markets--isn't harming sales.
Sony Corp rose 2% to 3414.50 yen, benefiting from an SMBC Nikko Securities target price increase to Y4,000 from Y3,200. The brokerage cited restructuring benefits, mainly in the firm's electronics businesses, and the emergence of growth-driving products, particularly image sensors and the PlayStation 4 game console. Shares of Sumitomo Mitsui Financial Group Inc added 1.2% to 4759.50 yen, as its banking unit began offering reverse mortgages in Japan's largest cities, while Mizuho Financial Group Inc rose 0.2% to 220.50 yen after confirmation of its purchase of Royal Bank of Scotland's North American loan portfolio. 

Oriental Land Corp., operator of theme parks such as Tokyo Disneyland and Disney Sea, gained 2.0% after Morgan Stanley MUFG Securities raised its target price to Y31,000 from Y22,000, citing the company's transformation in the past few years to a high-margin structure, as well as prospects for increased inbound tourism. 

Shares of bankrupt Skymark Airlines Inc took another dive, plummeting 46.2% to 14 yen as ANA Holdings Inc.'s president told the media that his airline didn't want to take a majority stake in Skymark, even if it's selected to sponsor its ailing rival's rehabilitation. 

Shares of motorcycle maker Yamaha Motor Co rallied 2% to 2972 yen after its president said that the company plans to make and sell small cars in Europe, beginning "around 2019. 

China market rises 0.4% up on easing speculation
 
Mainland China share market finished higher in volatile trade, with investors looking ahead to the annual sessions of China's two key legislative bodies next week, where Communist Party leaders likely to unveil key policies to support the economy. The CSI300 index, the largest listed companies in Shanghai and Shenzhen, rose 0.2% to 3,572.84, gaining 1.4% for the week, while the Shanghai Composite Index gained 0.4% to 3,310.30 points, up 2% for the week. For the month, the CSI300 gained 4.0% and the Shanghai Composite added 3.1%.
Total of seven out of ten SSE industry groups advanced, with telecommunication service issue leading rally, up by 2.8%, followed by information technology (up 0.9%), energy (up 0.7%), consumer staples (up 0.7%), materials (up 0.6%), industrials (up 0.5%), and consumer discretionary (up 0.3%). 

Among the most active stocks- Bank of China was down 0.7% to 4.11 yuan, China Petroleum rose 2.9% to 6.31 yuan and United Network gained 5.6% to 5.65 yuan. TCL Corp gained 7.0% to 5.02 yuan, BOE Technology climbed 2.3% to 3.16 yuan and Shantui Construction added 1.6% to 7.62 yuan. 

Hang Seng falls 0.32%
 
Hong Kong share market ended down in volatile trade on Friday, 27 February 2015, reversing the previous day's gains, amid concerns about possible tightening measures on Hong Kong's housing markets. 

The benchmark index opened unchanged but saw its gains widen by midday after the Shanghai market broke above 3,300 mark. But it pared all its gains in late afternoon on talks of potential measures to curb property market by the government. The Hang Seng Index ended down 78 points or 0.3% to 24,823, off an intra-day high of 25,101 and day low of 24,815. The H-share index fell 41 points or 0.3% to 12,185. Turnover reduced to HK$76.6 billion from HK$82.7 billion on Thursday. 

Shares of property developers bore the brunt of selling afternoon on talks of potential measures to curb property market by the government. The Hong Kong Monetary Authority was scheduled to hold a press meeting later in the day, amid expectations it might unveil policies to cool down real-estate markets. Major local developers mostly declined, as Wharf Holdings tumbled 2.9%, both Sun Hung Kai Properties and Henderson Land Development Co. skidded 1.6%, and Wheelock & Co shed 1.5%. However, Cheung Kong (Holdings), owned by Hong Kong tycoon Li Ka-shing, rose 0.3%, after its 2014 net profit surged 53%. Its sister conglomerate Hutchison Whampoa advanced 0.6%, as its earnings more than doubled in the last year. 

The China's Ministry of Industry and Information Technology was reportedly to issue FDD 4G licenses today. China Unicom (00762) and China Telecom (00728) rose 1.7% and 0.4% to HK$13.06 and HK$5.02 respectively. But China Mobile (00941) softened 1.5% to HK$105.4.
Macau gaming stocks rebounded after government officials said the fine-tuning of the "individual visit scheme" does not mean to set tourist quota. Sands China (01928) and Galaxy Ent (00027) gained 2.3% and 2.2% to HK$35.4 and HK$39.9 respectively. 

Sensex rally before Union Budget 2015-16 
 
Indian stocks surged after the Economic Survey 2014-15 tabled in parliament by Finance Minister Arun Jaitley today, 27 February 2015, stated that the government remains committed to fiscal consolidation and said that there is a scope for Big Bang economic reforms. The Survey stated that the government has undertaken several reforms and more are on the anvil. The rally on the bourses was broad based. The S&P BSE Sensex gained 473.47 points or 1.65% to settle at 29,220.12, while the CNX Nifty gained 160.75 points or 1.85% to settle at 8,844.60. 

The Economic Survey 2014-15 was presented a day before the Finance Minister Arun Jaitley presents Union Budget 2015-16 in the parliament tomorrow, 28 February 2015. Meanwhile, Prime Minister Narendra Modi today, 27 February 2015, said in Lok Sabha that if there is anything against farmers in the Land Acquisition Bill, the government is ready to change it. 

Banking, auto, capital goods, metals and mining and power generation stocks rose. Index heavyweight and cigarette major ITC slipped on high volume after multiple bulk deals were executed on the counter. Realty stocks edged higher amid expectations that there will be clarity with regard to taxation of Real Estate Investment Trust (REIT) structure in Union Budget 2015-16 tomorrow, 28 February 2015. Infrastructure stocks rose on hopes of sops for the sector in the Union Budget 2015-16 tomorrow, 28 February 2015. Jewellery stocks rose after the Economic Survey 2014-15 tabled in Parliament today, 27 February 2015, stated that India's overall trade performance signals an opportune time for withdrawal of restrictions on gold. 

The Indian stock exchanges have decided to keep the stock market open tomorrow, 28 February 2015, just like any other normal trading session when the Finance Minister Arun Jaitley presents the first full-fledged Budget of the Narendra Modi government. Trading will start at 9:15 IST and conclude at 15:30 IST. 

Foreign portfolio investors (FPIs) bought Indian shares worth a net Rs 2489.79 crore from the secondary equity market yesterday, 26 February 2015, as per data from Central Depository Services. Domestic institutional investors (DIIs) bought shares worth a net Rs 340.79 crore yesterday, 26 February 2015, as per provisional data released by the stock exchanges. 

Elsewhere in the Asia Pacific region: South Korea KOSPI fell 0.37% to 1985.80. New Zealand NZX50 added 0.29% to 5878.47. Indonesia's Jakarta Composite index edged down 0.02% to 5450.29. Singapore's Straits Times index declined 0.68% at 3402.86. Malaysia's KLCI was up 0.02% to 1821.21. 

HDFC FMP 371D February 2014 (2) Announces Dividend

Record date for dividend is 03 March 2015 

HDFC Mutual Fund has announced 02 March 2015 as the record date for declaration of dividend on the face value of Rs 10 per unit under regular option – normal dividend option and direct option – quarterly dividend option of HDFC FMP 371D February 2014 (2). 

The amount of dividend will be distributable surplus, as reduced by applicable statutory levy.

Birla Sun Life Fixed Term Plan – Series MI (1099 days) floats On

NFO period is from 26 February to 11 March 2015

Birla Sun Life Mutual Fund has launched a new fund named as Birla Sun Life Fixed Term Plan – Series MI (1099 days), a close ended income scheme. The tenure of the scheme is 1099 days from the date of allotment of units. The new fund offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 26 February and close on 11 March 2015. 

The investment objective of the scheme is to seek to generate income by investing in a portfolio of fixed income securities maturing on or before the duration of the scheme.
The scheme offers two options viz. growth and dividend option with Normal Dividend sub-option (Payout Facility) and Quarterly Dividend sub-option (Payout Facility). 

The scheme would invest 80%-100% of assets in debt securities (excluding money market instruments), invest upto 20% of assets in money market instruments with low to medium risk profile and invest upto 20% of assets in government securities with low risk profile. 

The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter. 

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period. 

Entry and exit load charge will be nil. 

Benchmark Index for the scheme is CRISIL Composite Bond Fund Index. 

The fund manager of the scheme will be Kaustubh Gupta. 

Mutual funds continue buying

Net inflow of Rs 13.50 crore on 24 February 2015

Mutual funds bought shares worth a net Rs 13.50 crore during the previous trading session on Tuesday, 24 February 2015, compared with net inflow of Rs 156.80 crore on Monday, 23 February 2015. 

The net inflow of Rs 13.50 crore on 24 February 2015 was a result of gross purchases of Rs 736.40 crore and gross sales of Rs 722.80 crore. On that day, the S&P BSE Sensex rose 29.55 points or 0.10% to settle at 29,004.66, its highest closing level since 20 February 2015. 

Mutual funds have bought shares worth Rs 3334.60 crore in this month so far (till 24 February 2015). Mutual funds had bought shares worth Rs 879.50 crore in January 2015. 

SBI MF Announces carving out of SBI Magnum Income Fund

With effect from 26 February 2015

SBI Mutual Fund has approved the carving out of SBI Magnum Income Fund - Floating Rate Plan - Savings Plus Bond Plan, a plan (having different portfolio) under SBI Magnum Income Fund into a seperate scheme known as SBI Saving Fund, with effect from 26 February 2015.

Kotak MF Announces Change In Maturity Under Kotak FMP Series 139, 143, 144 & 152

Kotak Mutual Fund has announced change in date of maturity under the following schemes: 

Kotak FMP Series 139: 28 February 2017. 

Kotak FMP Series 143: 09 March 2017. 

Kotak FMP Series 144: 14 March 2017. 

Kotak FMP Series 152: 31 March 2017. 

Tata Balanced Fund Announces Dividend

Record date for dividend is 03 March 2015

Tata Mutual Fund has announced 03 March 2015 as the record date for declaration of dividend under the monthly dividend option of Plan A and Direct Plan of Tata Balanced Fund. 

The amount of dividend will be Re 0.47 per unit under each plan on the face value of Rs 10 per unit.

IIFL Mutual Fund Announces Merger of Two Schemes

With effect from 30 March 2015 

IIFL Mutual Fund Mutual Fund has approved the merger of IIFL Dividend Opportunities Index Fund with IIFL India Growth Fund, with effect from 30 March 2015. 

The period of this exit offer is valid from 27 February 2015 to 30 March 2015.

ICICI Prudential Interval Fund II- Quarterly Interval Plan B Announces Dividend

Record date for dividend is 03 March 2015

ICICI Prudential Mutual Fund has announced 03 March 2015 as the record date for declaration of dividend under the dividend option of ICICI Prudential Interval Fund II- Quarterly Interval Plan B. The amount of dividend (Rs per unit) on the face value of Rs 10 per unit will be: 

Retail Dividend: 0.1892 

Direct Plan – Dividend: 0.1915 

Regular Plan – Dividend: 0.1902 

Regular Plan – Quarterly Dividend Payout: 0.1902

ICICI Prudential MF Announces Dividend Under ICICI Prudential FMP Series

Record date for dividend is 03 March 2015

ICICI Prudential Mutual Fund has announced 03 March 2015 as the record date for the declaration of dividend on the face value of Rs 10 per unit under the following schemes. The recommended rate of dividend (Rs per unit) will be: 

ICICI Prudential Fixed Maturity Plan – Series 64 – 3 Years Plan I – Dividend: 0.05 

ICICI Prudential Fixed Maturity Plan – Series 73 – 366 Days Plan A – Direct Plan – Dividend & Regular Plan - Dividend: 0.05 each. 

ICICI Prudential Fixed Maturity Plan – Series 61 – 3 Years Plan F - Dividend: 0.05. 

L&T Cash Fund Announces Change In Exit Load Structure

With effect from 27 February 2015

L&T Mutual Fund has announced change in exit load structure under L&T Cash Fund, with effect from 27 February 2015. 

Accordingly the revised exit load will be: 

If units are redeemed within 1 month from the date of allotment or purchase applying first in first out basis, the exit load will be 0.50% 

No exit load is payable if units are redeemed after 1 month from the date of allotment or purchase applying first in first out basis.

SBI MF Announces Rollover of SBI Debt Fund Series – 366 Days – 53

The scheme shall mature on 10 April 2017

SBI Mutual Fund has announced rollover of SBI Debt Fund Series – 366 Days – 53. 

The scheme will be rolled over for a period of 770 days. Accordingly the revised maturity date of the scheme will be 10 April 2017.

DSP BlackRock Dual Advantage Fund - Series 36 – 36M Floats On

NFO period is from 26 February to 12 March 2015

DSP BlackRock Mutual Fund has launched a new fund named as DSP BlackRock Dual Advantage Fund - Series 36 – 36M, a closed ended income scheme. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription from 26 February to 12 March 2015. 

The primary investment objective of the schemes is to generate returns and seek capital appreciation by investing in a portfolio of debt and money market securities. The schemes also seek to invest a portion of the portfolio in equity & equity related securities to achieve capital appreciation. As far as investments in debt and money market securities are concerned, the schemes will invest only in securities which mature on or before the date of maturity of the schemes. 

The scheme offers growth (option A) and dividend payout (option B) options under both regular plan and direct plan. 

The scheme shall invest 50-95% in debt securities, up to 15% in money market securities with low to medium risk profile and 5-35% in equity & equity related securities with high risk profile. 

The minimum application amount is Rs.5000 and any amount thereafter. 

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 20 crore under the scheme during the NFO period. 

Entry Load: Nil 

Exit Load: Not Applicable. 

Benchmark Index for the scheme will be CRISIL MIP Blended Index 

The scheme will be managed by Dhawal Dalal and Vinit Sambre. 

DSP BlackRock FMP – Series 187 – 3M Floats On

NFO will open for subscription only on 26 February 2015

DSP BlackRock Mutual Fund has launched a new fixed maturity plan named as DSP BlackRock FMP – Series 187 – 3M, a close-ended income scheme with the duration of 3 months from the date of allotment. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will be open for subscription only on 26 February 2015. 

The primary investment objective of the scheme is to seek to generate returns and capital appreciation by investing in a portfolio of debt and money market securities. The scheme will invest only in such securities which mature on or before the date of maturity of the scheme. 

The scheme offers a choice of two options, growth option and dividend payout with regular payout and Quarterly payout option. 

The scheme would allocate upto 100% of assets in debt securities and money market securities with low to medium risk profile. 

The minimum application amount is Rs 5000 and in multiples of Rs 1 thereafter.
Entry and exit load charge will be nil for the scheme. 

Benchmark Index for the scheme is Crisil Liquid Fund Index. 

The scheme will be managed by Dhawal Dalal. 

Mutual funds step up buying

Net inflow of Rs 180.20 crore on 25 February 2015

Mutual funds bought shares worth a net Rs 180.20 crore during the previous trading session on Wednesday, 25 February 2015, compared with net inflow of Rs 13.50 crore on Tuesday, 24 February 2015. 

The net inflow of Rs 180.20 crore on 25 February 2015 was a result of gross purchases of Rs 1007.40 crore and gross sales of Rs 827.30 crore. On that day, the S&P BSE Sensex rose 3.33 points or 0.01% to settle at 29,007.99, its highest closing level since 20 February 2015. 

Mutual funds have bought shares worth Rs 3514.80 crore in this month so far (till 25 February 2015). Mutual funds had bought shares worth Rs 879.50 crore in January 2015. 

DSP BlackRock Dual Advantage Fund – Series 1 – 36M Announces Dividend

Record date for dividend is 02 March 2015

DSP BlackRock Mutual Fund has announced 02 March 2015 as the record date for declaration of dividend on the face value of Rs 10 per unit under dividend payout option of DSP BlackRock Dual Advantage Fund – Series 1 – 36M, a close ended income scheme. The quantum of dividend will be upto 100% of distributable surplus as on the record date. 

Creation of two additional benches of the Authority for Advance Rulings (Income Tax)

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, gave its approval to the following:- 

i. Creation of two additional benches of the Authority for Advance Rulings (Income Tax), one in New Delhi and one new bench in Mumbai; 

ii. creation of two posts of Vice-Chairmen in the Apex scale and four posts of Members (two posts of Revenue Members and two posts of Law Members) in the Higher Administrative Grade (HAG+) and two posts of Secretary at the level of Commissioner of Income Tax/Joint Secretary; and 

iii. one time expenditure of Rs.7.48 crores for establishment of the two additional benches and additional annual recurring expenditure of Rs. 6.61 crores for running these two additional benches. 

The creation of two additional benches of the Authority would dispose of increased number of cases and pendency of cases would be reduced benefitting the tax payer and the Government. Besides, this will operationalise the facility of advance ruling for resident tax payers. The proposed additional Benches of Authority for Advance Rulings (Income Tax) will facilitate the cause of the resident tax payers in obtaining tax clarity in certain situations. 

Background 

In order to provide the facility of ascertaining the Income-tax liability of a non¬resident/ to plan their Income-tax affairs well in advance and to avoid long drawn and expensive litigation, a scheme of Advance Rulings was introduced under the Income-Tax Act, 1961 and the Authority for Advance Rulings was constituted. A non-resident or certain categories of resident can obtain binding rulings from the Authority on question of law or fact arising out of any transaction/proposed transactions which are relevant for the determination of his tax liability. 

In order to enable resident taxpayers to obtain an advance ruling in respect of their income tax liability above a defined threshold, it has been decided to strengthen the Authority for Advance Rulings by constituting additional benches.

Implementation of Project for setting up of 15,000 MW of Grid-connected Solar PV Power plants through NTPC/ NTPC Vidyut Vyapar Nigam under NSM

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi gave its approval for the implementation of the scheme for setting up of 15,000 MW of Grid-connected Solar PV Power projects under the National Solar Mission (NSM) through NTPC/ NTPC Vidyut Vyapar Nigam (NVVN) in three tranches namely, 3000 MW under Tranche-l under mechanism of Bundling with Unallocated Coal based Thermal Power and fixed levellised tariffs, 5,000 MW under Tranche-ll with some support from Government to be decided after getting some experience while implementing Tranche-l and balance 7,000 MW under Tranche-Ill without any financial support from the Government. 

Successful completion of additional 15,000 MW capacity of Grid-connected solar PV power generation projects, mainly in the private sector, with largely private investment, under the National Solar Mission would accelerate the process of achieving grid tariff parity for solar power and also help reduce consumption of kerosene and diesel, which is presently in use to meet the unmet demand. 

In Tranche-l, which will be Batch-II of Phase-II of the National Solar Mission, 3000 MW capacity of solar PV power plants will be based on bundling of solar power (3000 MW) with unallocated thermal power (1500 MW) in the ratio of 2:1 (in MW terms), for which the required 1500 MW unallocated thermal power has been made available by the Ministry of Power. The bundled power will be allotted to various States that come forward to (i) provide land for setting up the solar power projects and (ii) purchase a major portion of the bundled solar power for consumption within the State (iii) ensure connectivity to the solar power project. The capacity allotted to each such State will be set up through developers, to be selected through international competitive bidding by NTPC /NVVN. Both private and government companies would be free to bid for projects. 

1000 MW capacity out of the 3000 MW under the bundling scheme will be set up on land already identified in Andhra Pradesh. The balance 2000 MW capacity under the Bundling Scheme will be allotted in other interested States that come forward. 

It is estimated that implementation of Tranche-l of the scheme will entail total investment of over Rs.18,000 crore, all of which will be met by project developers, mainly private. 

A Payment Security Mechanism / Working Capital Fund with an estimated corpus of Rs. 2300 crore to cover 3 months payment for bundled capacity of 3000 MW of Solar Capacity with 1500 MW NTPC Coal Power, will be set up to ensure bankability of PPAs and timely payment to developers. This will be evolved through collaborative efforts of Government of India and Solar Project Developers. The modalities for setting up of Payment Security Mechanism / Working Capital Fund will be finalized subsequently. Accruals from encashment of Bank Guarantees, penalties on developers, etc. will also go into this fund. 

Some capacity will be earmarked out of the total procurement under this scheme with provisions of domestically manufactured solar cells as well as modules. The quantity to be fixed with Domestic Content Requirement (DCR) in each tender will be prescribed by Ministry of New and Renewable Energy (MNRE) based on the prevailing market conditions from time to time. Bids received under both the categories (one with DCR requirement and the other without any such requirement) will be evaluated and successful bidders selected independently. Further, this DCR will also be technology agnostic that is applied on both the crystalline silicon and thin film SPV cells and modules. 

Background 

The first Phase of the National Solar Mission (2010-2013) had a target of 1100 MW for Grid-connected solar power generation capacity, against which 1685 MW was set up in the country under various schemes. Further capacity addition of 9,000 MW comprising 3,000 MW under Central schemes and 6,000 MW under State initiatives/ other mechanisms was envisaged In the 2nd phase of the Mission (April 2013-March 2017). 

Now that sufficient experience is available in India in this field and the Government is keen to expeditiously promote solar power in the country, it is proposed to give a quantum jump to development of solar power in India through market driven approach, wherein the role of subsidies and direct Government support is gradually phased out. Specifically, it is proposed to significantly enhance capacity addition in the 2nd phase itself under Central schemes through various mechanisms.

TRAI issued the Telecommunication Mobile Number Portability

The Telecom Regulatory Authority of India (TRAI) has today issued 6th Amendment to the Telecommunication Mobile Number Portability Regulation, 2009 which will facilitate Full MNP (PAN India Portability) in the country w.e.f. 3rd May, 2015. 

Earlier TRAI made recommendations to the Department of Telecommunications (DoT) for implementation of Full MNP/National MNP and suggested amendments in the licenses of MNP service providers and mobile service providers. 

Accordingly, on 3rd November, 2014, the DoT had issued amendment(s) to the MNP License Agreement. As per the DoT, the Full MNP is to be implemented in the country within a period of 6 months from the date of amendment to the Licenses, i.e. 3rd May, 2015.

In view of the implementation of Full Mobile Number Portability, some changes were required in the MNP Regulations, 2009 (as amended). Accordingly, a draft Amendment to the Telecommunication Mobile Number Portability Regulation, 2009 was prepared and uploaded on TRAI website (www.trai.gov.in) for consultation with the stakeholders. Based on stakeholder's comments & in house analysis, necessary amendments have been made in the MNP Regulations. 

Accordingly, in this Amendment, apart from facilitating Pan-India Portability, a few changes have also been made in the porting process as well, which include: 

a) In case a post-paid subscriber who has ported his number defaults in the payment of his previous bill which was due to the Donor Operator(previous service provider from whom the subscriber has ported out), the Donor Operator has to give a notice within a period of 30 days of due date of payment of its outstanding bill. After a lapse of 60 days from the due date of payment of the outstanding bill, the Donor Operator will not be entitled to raise non-payment disconnection requests with the Recipient Operator. 

b) For a post paid subscriber who has defaulted payment to the Donor Operator, the Donor operator will request the Recipient operator to disconnect the ported number. The Recipient Operator in turn will give a notice of 15 days for making such payment, failing which the outgoing services of such subscriber will be debarred for a period of 15 days. In case the subscriber fails to make payment within these 15 days, his mobile number will be disconnected permanently by the Recipient Operator. 

In order to effectively utilize the numbering resources, provision has been made to reduce the time period for a ported mobile number, which has been disconnected due to any reasons, to return to the original service provider (to whom the number belongs) in 60 days time instead of 90 days prescribed earlier.

TRAI issues Regulations on Termination Charges

The Telecom Regulatory Authority of India (TRAI) has issued the “Telecommunication Interconnection Usage Charges (Eleventh Amendment) Regulations” which prescribe revised domestic termination charge (Mobile Termination Charges and Fixed Termination Charges) and International Termination Charges. 

Domestic termination charges are the charges payable by a Telecom Service Provider (TSP) whose subscriber originates the call, to the TSP in whose network the call terminates. In the prevailing Calling Party Pays (CPP) regime, the calling party subscriber pays for the call to his TSP who, in turn, pays termination charges to the called party's TSP to cover the interconnection/network usage costs. International Termination Charges (ITC) are the charges payable by an International Long Distance Operator (ILDO), which is carrying calls from outside the country to a TSP in the country in whose network the call terminates. 

Key features of the Regulations are as follows: 

· Mobile Termination Charge (MTC) for all calls originating from wireless network has been reduced from 20 paise per minute to 14 paisa per minute; 

· To promote investment and adoption of wireline network (so that they become an effective vehicle for delivery of high speed internet in the country) the Authority has decided to prescribe Fixed Termination Charges (FTC) as well as MTC for wireline to wireless calls as zero. Accordingly, 

· MTC for all calls originating from wireline has been set to zero; 

· FTC for all calls originating either from wireline network or from wireless network has been set to zero; 

· Termination charge for international incoming calls has been increased to 53 paisa per minute from existing 40 paisa per minute; 

The prevailing Interconnection Usage Charge (IUC) Regulation was notified on 9th March, 2009 and came into effect from 1st April, 2009. In the past, revision in the IUC regime has been undertaken on a regular basis with an interval of 2-3 years. However, as the matter was pending before the Hon'ble Supreme Court since 2010, the IUC review could not be conducted though it was due. As a significant amount of time (five years) has elapsed since the last review, the Authority initiated this review of the IUC regime in November, 2014. 

As a precursor to the exercise, the Authority asked TSPs to submit information related to network usage and costs. Subsequently the Authority issued a consultation paper on 19.11.2014 to seek the views of the stakeholders on various aspects of the IUC. Stakeholders were asked to submit written comments by 11.12.2014 and counter-comments by 18.12.2014.

On the request of some stakeholders, the dates for submission of comments and counter-comments were extended up-to 22.12.2014 and 29.12.2014 respectively. Written comments were received from two industry associations, 15 TSPs and 47 other stakeholders, including companies, organizations, firms and individuals. Counter-comments were received from six TSPs and one individual. An Open House Discussion was held on 09.01.2015 in Delhi with stakeholders. 

On the basis of comments received from stakeholders either in writing or during the Open House Discussion, the Authority has prescribed revised domestic and international termination charges through these Regualtions. 

Unit 3 and 4 of Kudankulam Nuclear Power Project under preparation for launch in 2015-16

The Unit 3 and 4 of the Kudankulam Nuclear Power Project (KKNPP 3&4) with 2x1000 MW capacity is being prepared for launch in 2015-16. The Kudankulam Nuclear Power Project Unit-1 (KKNPP 1) with 1,000 MW capacity has been commissioned recently while the Kudankulam Nuclear Power Project Unit-2 (KKNPP-2) with 1,000 MW capacity is under commissioning. 

The Government in July 2014 had set a target of tripling the then existing nuclear power capacity of 4780 MW in the next ten years viz. 2024. Various sites have been given “In-principle” approval for additional reactors to be set up in future. Currently these sites are under pre-project activities which include land acquisition, obtaining Environmental clearances, evaluation of techno commercial offers in respect of Light Water Reactors (LWRs) to be set up with foreign technical cooperation. Some of these projects include Jaitapur Nuclear Power Project (JNPP 1&2), Kaiga (5&6) and Mahi Banswara (1&2) among others. 

The safety being an ongoing process, constant review of safety aspects effecting necessary upgrades thereof in line with the evolving safety standards at par with the best international standards is a regular practice in Nuclear Power Corporation of India (NPCIL). 

Moody's: Slowing Chinese demand will increase operating challenges for Asian steel companies

Moody's Investors Service says that Asian steel companies face increasing operating challenges in 2015, as Chinese steel demand slows. Moody's could change its outlook on the Asian steel sector to negative from stable if this weakness persists. 

Moody's last changed its outlook to stable from negative in August 2014. 

"The weakness in the recent indicators, such as China's Purchasing Managers' Index (PMI) and steel prices, imply a contraction in steel margins from a strong H2 2014," says Zou. 

"Steel demand growth in China will be negatively affected by the slowing domestic economy and weakness in the property market, which is one of the primary end-markets for steel."
The sluggish steel demand will impact steelmakers in Asia because China accounts for approximately 70% of the region's steel demand. 

Moody's maintains a stable outlook for the Asian steel industry for now, given its expectation that steelmaker profitability will remain better in the first half of 2015, compared to the weak margins seen in the first half of 2014. 

But Moody's could change its outlook on the Asian steel sector to negative if steel demand continues to decline over the next few months. Still, sluggish domestic demand won't greatly affect supply levels, says Moody's, as Chinese steel companies will keep 2015 production close to 2014 levels by boosting higher-price exports, although this will pressure regional steel prices. 

Regionally, Moody's expects flat demand in Korea and Japan, while India will post single-digit demand growth as the new government invigorates infrastructure spending. 

Indian steel companies—because of import duty and/or captive iron ore supplies—will enjoy the highest profitability among the cohort, notes Moody's. 

Elsewhere in the region, Moody's expects Japanese steel companies to benefit from the weak yen, which boosts their competitive cost structures. 

Moody's would change its stable outlook to negative if manufacturing activity in China continues to decline, as indicated by China's PMI remaining below 50 in the next two to three months, and if Moody's expects that—for the major steelmakers over the next 12 months—EBITDA per tonne declines more than 15% on a year-on-year basis. The PMI fell to 49.8 in January, indicating a contraction in manufacturing activities. 

Railway Budget 2015-16

The Union Minister for Railways, Shri Suresh Prabhakar Prabhu is presenting the Railway Budget 2015-16. Few highlights are: 

Rs 8.5 lakh crore will be invested in Railways in next 5 years 

No hike in passenger fares 

Plans to building partnerships to gain long term financing and improve connectivity 

Wi-Fi facility to be given to A1 category stations 

High density networks to improve capacity is priority 

Mobile application to address complaints of people is being developed 

Passengers to be informed about arrival and departure through SMS alert service initiative. 

Automatic Freight Rebate System Launched And To Be Expanded

Nine Major Thrust Areas in the Railway Budget 2015-16-Suresh Prabhakar Prabhu

The Minister of Railways Shri Suresh Prabhakar Prabhu while presenting the Railway Budget 2015-16 in Parliament today has said that there are nine thrust areas in this Budget which are as follows: 

1. Indian Railways to become prime mover of economy once again 

2. Resource Mobilization for higher Investments 

3. Decongestion of heavy haul routes and speeding up of trains: emphasis on gauge conversion, doubling, tripling and electrification 

4. Project delivery 

5. Passenger Amenities. 

6. Safety 

7. Transparency & System Improvement. 

8. Railways to continue to be the preferred mode of transport for the masses. 

9. Sustainability.

Seventy Seven New Railway Projects Worth Rs. 96,182 Crore Sanctioned

While last mile connectivity projects continue to be accorded the highest priority, the Railways intend to fast track the sanctioned works on 7,000 kms of double/third/fourth lines and commission 1200 km in 2015-16 at an investment of Rs. 8686 crore. Presenting the Railway Budget 2015-16 in Parliament today Railway Minister Shri Suresh Prabhakar Prabhu said this budgetary allotment under Capital is 84% higher than 2014-15. He said, “We also intend commissioning 800 km of gauge conversion. Additionally, we have sanctioned 77 projects covering 9,400 km of doubling/tripling/quadrupling works along with their electrification at a total cost of Rs. 96,182 crore which is over 2700% higher in terms of amount sanctioned in 2013-14, 2014-15 being a Plan holiday”. 

The Minister said the priority for undertaking projects has been determined by a designated committee for capacity enhancement, revenue generation and decongestion. He said negotiations are on with financial institutions for funding of these projects through extra budgetary resources. These projects cover almost all States, the Minister added. 

Foreign Rail Technology Co-Operation Scheme Proposed to be Launched

The Union Railway Minister Shri Suresh Prabhakar Prabhu has announced the proposal to launch “Foreign Rail Technology Cooperation Scheme” in order to achieve the higher quality service for our nation. Presenting the Railway Budget for 2015-16 in Parliament today he said that Technology intensive and complex projects like speed raising and station redevelopment require lot of handholding by a specialized agency in terms of preparatory work, exploring technology options and managing bid processes. Indian Railways have signed in the past MOUs for technical cooperation with number of foreign railways or their entities. 

Finance Ministry to Provide Budgetary Support of Rs 40,000 Crore for the Railway's Annual Plan

The Railway Minister has said that the Ministry of Finance has communicated a Gross Budgetary Support of Rs. 40,000 crore for the Railway's annual Plan. Presenting the Railway Budget 2015-16 in Parliament today Railway Minister Shri Suresh Prabhakar Prabhu said Rs. 1,645.60 crore has also been provided as Railway's share of diesel cess from the Central Road Fund. He said Market borrowing under EBR is projected at Rs. 17,655 crore, an increase of about 46.5% (Rs 5,609 crore) over RE 2014-15. Balance Plan outlay includes Rs. 17,793 crore from Internal Resources and Rs.5781 crore from PPP. The Minister informed the Parliament that large amounts have been allocated towards Doubling, Traffic Facilities, Electrification and Passenger Amenities. 

The Minister said Railways has proposed a Plan outlay of Rs. 1,00,011 crore, an increase of 52% over RE 2014-15. Shri Prabhu said it is anticipated that the Plan size will get higher once resources from institutional bodies are formalized during the course of the ensuing financial year. 

He said given the huge shelf of project and ensuring proper funds flow for the same with a view to completing them on target, a new financing approach to expand EBR has been projected. This EBR, presently named EBR (Institutional Finance) would be based on institutional investments in railway projects through Railway/ PSUs. This element is projected at Rs. 17,136 crore and is aimed at accelerating completion of capacity augmentation projects. This new vista being tapped has promising potential. 

Shri Prabhu said while the budgetary support has been increased progressively over the years, it has not been adequate to realistically fund the large shelf of projects that are in the pipeline. He said many of the projects relate to decongestion in heavy traffic sections and are, therefore, remunerative. Such projects can be taken to accelerate completion by tapping market funding from institutional finance agencies, multilateral lending, etc. In this background, more than a hundred projects valuing more than one lakh crore have been identified through extra budgetary resource subject to due process being followed, the Minister added. 

No hike in Railway Passenger Fares; Plan Outlay proposed Rs. 1,00,011 crore, increased by 52%

Allocation for passenger amenities up by 67%; Rail Budget seeks resource mobilization for higher investment 

Railway Budget presented today in Parliament proposed measures to make Indian Railways prime mover of Indian Economy once again. It seeks resource mobilization for higher investment, decongestion of heavy haul routes and speeding of trains and project delivery, better passenger amenities and safety, and to make railways a preferred mode of transport for masses. Presenting the Budget in Parliament, Railway Minister, Shri Suresh Prabhakar Prabhu said that all critical initiatives proposed will be pursued in mission mode. 

The Budget proposals have set four goals to transform Indian Railways over next five years which are- a sustainable and measurable improvement in customer experience, make rail a safer means of travel, expansion of capacity substantially , modernization of infrastructure and finally to make railways financially self-sustainable. To achieve these goals the budget proposes five drivers which include adopting a medium-term perspective plan consisting of White Paper, a Vision-2030 document and a five year action plan. Building Partnerships with key stakeholders for long term financing and overseas technology, improving last mile connectivity, expanding fleet of rolling stock and modernization of station infrastructure are included in these drivers. Railways will also leverage additional resources; envisages investment of Rs. 8.5 lakh crore in next five years. 

Revamping management practices, systems, processes, and re-tooling of human resources will be taken up by the Railways to achieve targeted operating ratio for 2015-16 at 88.5%. Fast decision making, tight accountability, improved management information systems and better training and development of human resource will also be part of the action plan to achieve the goals. 

In order to make travel on Indian Railways a happy experience, the Budget has given thrust on Cleanliness and proposes a new department for keeping stations and trains clean under Swachh Rail Swachh Bharat Abhiyan. New toilets will be built at 650 additional stations; online booking of disposable bed rolls will be made available. 24X7 helpline number 138;toll-free number 182 for security related complaints have also been proposed in the budget. 

In order to make ticketing more passenger friendly the Budget proposes “operation five minutes” for issuing unreserved tickets, hot buttons, coin vending machines, concessional e-tickets for differently abled travelers, for booking tickets a multi-lingual e-portal will be developed. Crediting of refunds through banks and unreserved tickets on Smart phones will be available. Proliferation of automatic ticket vending machines with smart cards and currency options, integrated ticketing system on the lines of rail-cum-road tickets, Defence Travel System developed for elimination of Warrants have also been proposed in the Budget. 

The Budget has proposed e-catering to select meals from an array of choices. Ordering food through IRCTC website at the time of booking of tickets; integrating best food chains into this project; setting up of Base Kitchens in specified divisions to be run by reputed agencies for serving quality food and expansion of water vending machines will be taken up. 

Hand-held terminals to Travelling Ticket Examiners (TTEs) for verification of passengers will now be provided for verification of passengers, possibility of extending facility of SMS on mobiles as a valid proof of travel for PRS tickets will be explored. A centrally managed Railway Display Network in over 2000 stations in next two years will be included besides “SMS Alert” service to inform passengers in advance of the updated arrival/departure time of trains at starting or destination stations. 

For the safety of women passengers surveillance cameras will be provided on a pilot basis in selected mainline coaches and ladies' compartments of suburban coaches. 

The Railways will also take up a project for introducing on-board entertainment on select Shatabdi trains; Mobile phone charging facilities will be provided in general class coaches & will be increased in sleeper class coaches. 

Now, 200 more stations to come under Adarsh Station scheme; Wi - Fi to be provided at B category stations; facility of self-operated lockers will be available at stations. Passenger capacity in identified trains will be augmented; more General class coaches will be added in identified trains. The Railways has also approached NID to design user friendly ladders for climbing upper berths. It has also proposed more quota of lower berths for senior citizens. TTEs will now be instructed to help senior citizens, pregnant women and differently-abled persons in obtaining lower berths; middle bay of coaches to be reserved for women and senior citizen. Provision of Rs. 120 crore has been made for Lifts and escalator; newly manufactured coaches will now be Braille enabled; building wider entrances for the ease of differently-abled passengers; allocation for passenger amenities up by 67%. 

The Railways has proposed to revamp its station development policy completely and simplifies process for faster development by inviting open bids. It has proposed to develop 10 Satellite Railway terminals in major cities with twin purpose of decongesting the city and providing services to suburban passengers. 

Seventy seven projects covering 9,400 km of doubling/tripling/quadrupling works along with electrification, covering almost all States, at a cost of Rs. 96,182 crore will be taken up. Traffic facility works a top priority with outlay of Rs. 2374 crore have been proposed. In order to accelerate the pace of Railway electrification, 6,608 route kilometres will be sanctioned for 2015-16, an increase of 1330% over the previous year. 

As per the Budget proposal, the speed of 9 railway corridors will be increased from existing 110 and 130 kmph to 160 and 200 kmph respectively so that inter-metro journeys like Delhi-Kolkata and Delhi-Mumbai can be completed overnight. Average speed of freight trains in empty and loaded conditions, will be enhanced to 100 kmph for empty freight trains and 75 kmph for loaded trains. 

Declaring safety of paramount importance for Railways, an action plan has been proposed for accident prone areas. The Budget also proposes 970 ROB/RUBs and other safety-related works to eliminate 3438 level crossings at a total expense of Rs. 6,581 crore, 2600% higher than the previous year. Train Protection Warning System and Train Collision Avoidance System will be installed on select routes at the earliest. 

The Budget proposes constituting an innovation council called “Kayakalp” for business re-engineering and introducing a spirit of innovation in Railways besides setting up of Technology portal to invite innovative technological solutions. Four Railway Research Centers in select universities for fundamental research have also been proposed besides ‘Malaviya Chair' for Railway Technology at IIT (BHU), Varanasi. 

PPP cell of Railways will be revamped to make it result oriented, “Foreign Rail Technology Cooperation scheme” will be launched. Joint ventures will be set up with States for focused project development, resource mobilization, land acquisition, project implementation and monitoring of critical rail projects. In order to meet the requirements of new lines JVs will also be set up with major public sector customers. 

Rail Budget has also proposed Coastal Connectivity Program in partnership with ports for Nargol, Chharra, Dighi, Rewas and Tuna. Besides this, projects worth Rs 2500 crore will be taken up through BOT/ Annuity route. These include Wardha- Nagpur 3rd line, Kazipet-Vijaywada 3rd line, Bhadrak –Nargundi 3rd line and Bhuj- Nalia Gauge Conversion. 

In order to make Indian Railways more environment friendly, 100 DEMUs will be enabled for dual fuel – CNG and diesel. Locomotives running on LNG are also currently under development. Noise levels of locos to be at par with international norms; concerns related to wildlife to be addressed. 

As a part of its social initiatives, now Rail stations and training centers will be made available for skill development. Incredible Rail for Incredible India will be launched and training of auto-rickshaw and taxi-operators as tourist-guides on the model of Konkan Railway will be taken up for tourism promotion. IRCTC will work on promoting the Gandhi circuit to attract tourists to mark the occasion of 100 years of the return of Mahatma Gandhi to India from South Africa. Kisan Yatra, a special travel scheme for farmers for farming & marketing technique centres has also been proposed. 

According to Budget Estimates, Plan Outlay for 2015-16 has been proposed to Rs 1,00,011 crore, an increase of 52% over RE 2014-15 plan size. Out of this 41.6% resources will come from Central Government support while 17.8 % will be generated from internal resources. 

Railway Minister Spells Out Five Point Execution Strategy for Transforming Indian Railways

The Minister of Railways Shri Suresh Prabhakar Prabhu while presenting the Railway Budget 2015-16 in Parliament today has said that the goals of transforming Indian Railways will be achieved with a five point execution strategy. These are: 

a) Adopting a medium-term perspective:

Budget proposals to mark beginning of a Five Year Action Plan to transform the Railways.

PROPOSED INVESTMENT PLAN (2015-2019)
Item	Amount (Rs in crore)
Network Decongestion (including DFC, Electrification, Doubling including electrification and traffic facilities)	199320
Network Expansion (including electrification)	193000
National Projects (North Eastern & Kashmir connectivity projects)	39000
Safety (Track renewal, bridge works, ROB, RUB and Signalling & Telecom)	127000
Information Technology / Research	5000
Rolling Stock (Locomotives, coaches, wagons – production & maintenance)	102000
Passenger Amenities	12500
High Speed Rail & Elevated corridor	65000
Station redevelopment and logistic parks	100000
Others	13200
TOTAL	8,56,020

b) Building Partnerships:

This will require partnering with key stakeholders: States, PSU's, partner with multilateral and bi-lateral organizations & other governments to gain access to long term financing and technology from overseas, the private sector to improve last mile connectivity, expand fleet of rolling stock and modernize our station infrastructure.

c) Leveraging additional resources:

Indian Railways envisages investment of Rs. 8.5 lakh crore in next five years to be mobilized from multiple sources to cater to funding i.e multilateral development banks, pension funds.

d) Revamping management practices, systems, processes, and re-tooling of human resources:

· Targeted operating ratio for 2015-16 at 88.5% against 91.8%in 2014-15: best in the last 9 years.

· Indian Railways to speed up decision making, tighten accountability, improve management information systems: training and development of human resource.

e) To set standards for Governance and Transparency.