A historic moment for India as NSG gives it the nod

In a historic moment that ended more than three decades of nuclear isolation for India, the 45-nation
Nuclear Suppliers Group Saturday rewrote their guidelines to resume global nuclear trade with New Delhi.
The NSG’s decision to grant India a clean waiver from its existing rules, which forbid nuclear trade with a country which has not
signed the Nuclear Non-Proliferation Treaty (NPT), came Saturday afternoon after three days of intense diplomacy by the US
and India in the nuclear cartel that controls the global flow of nuclear fuel and technologies.
The nuclear deal is now headed for the US Congress, which meets September 8 to discuss an approval for the 123 India-US
bilateral agreement which will bring the landmark nuclear deal to its closure over three years after it was first conceptualised.
The two countries are expected to formally sign the bilateral pact, likely when Manmohan Singh goes to Washington towards
the end of September, that will restore nuclear trade with the US after a gap of 34 years.
Economic sanctions were imposed by the US and the rest of the world when India first conducted its nuclear test in 1974.
The NSG’s waiver also frees India to sign bilateral civil nuclear cooperation agreements with France and Russia, leading
advocates of the nuclear deal, who also used their clout to win over sceptics in the nuclear cartel.
Prime Minister Manmohan Singh is set to sign bilateral civil nuclear cooperation with France when he goes to Paris for bilateral
talks Sep 30 after attending the India-EU summit in the coastal resort town of Marseilles.
The bilateral civil nuclear cooperation agreement with Russia, which was finalized last year and iniatialled early this year, will
be signed when Russian President Dmitry Medvedev comes to New Delhi in November this year.
The NSG had extended their two-day meeting in Vienna Friday by another day after marathon negotiations that went well past
midnight failed to bring sceptics around to back the nuclear deal.
Some sceptics in the nuclear club like Austria, Ireland and New Zealand, known for their hardline non-proliferation stance,
resisted till the last minute appeals by the US to accommodate India inside the global non-proliferation tent.
Austria and New Zealand, which were also supported by Norway, Switzerland, the Netherlands and Switzerland, had insisted
that provisions be included in the draft on the proposed waiver that will allow NSG to terminate nuclear business with India if it
conducted another test.
India’s External Affairs Minister Pranab Mukherjee’s statement Thursday re-affirming New Delhi’s commitment to a ‘voluntary
moratorium’ on future testing boosted India’s case in the NSG and was praised as ‘very significant’ by NSG.
‘This is a very significant statement which was discussed by members of the NSG and praised and welcomed by those in
attendance,’ US Assistant Secretary for Arms Control and International Security Affairs John Rood told reporters at the end of
the of Friday’s morning session of the NSG.
He added: ‘On the basis of this a positive momentum has been generated in the discussion and as I said before we remain
committed to achieving the objective and remain optimistic that we can achieve that.’
‘We remain committed to a voluntary, unilateral moratorium on nuclear testing. We do not subscribe to any arms race, including
a nuclear arms race,’ Mukherjee said in his statement issued in New Delhi before the NSG met for the second day in Vienna.
The minister’s statement and the existing guideline in the NSG that provides for termination of commerce with a country that
violates the rules and conducts a test were highlighted during Friday’s discussions among the members to convince the
sceptics who are opposed to a ‘clean waiver’ for India.
However, in the end the US’ arguments about the merits of accommodating India, the world’s most populous democracy and a
rising economy, in the global non-proliferation order prevailed. Washington also managed to convince sceptics about India’s
impeccable record in non-proliferation and how making an exception for India will be a net gain for the global non-proliferation regime.

Chronology of India’s nuclear journey

Following is the chronology of some key developments related to the landmark Indo-US nuclear deal:
1968: India refuses to sign the Nuclear Nonproliferation Treaty (NPT) on the grounds that it is discriminatory.
May 18, 1974: India conducts its first nuclear test.
March 10, 1978: US President Jimmy Carter signs the Nuclear Non-Proliferation Act, following which US
ceases exporting nuclear assistance to India.
May 11-13, 1998: India tests five underground nuclear tests.
July 18, 2005: US President George W Bush and Prime Minister Manmohan Singh first announce their intention
to enter into a nuclear agreement in Washington.
March 1, 2006: Bush visits India for the first time. March 3, 2006: Bush and Singh issue a joint statement on
their growing strategic partnership, emphasising their agreement on civil nuclear cooperation.
July 26, 2006: The US House of Representatives passes the ‘Henry J Hyde United States-India Peaceful
Atomic Energy Cooperation Act of 2006,’ which stipulates that Washington will cooperate with New Delhi on
nuclear issues and exempt it from signing the Nonproliferation Treaty.
July 28, 2006: The Left parties demand threadbare discussion on the issue in Parliament.
November 16, 2006: The US Senate passes the ‘United States-India Peaceful Atomic Energy Cooperation and
US Additional Protocol Implementation Act’ to “exempt from certain requirements of the Atomic Energy Act of
1954 United States exports of nuclear materials, equipment, and technology to India.”
December 18, 2006: President Bush signs into law congressional legislation on Indian atomic energy.
July 27, 2007: Negotiations on a bilateral agreement between the United States and India conclude.
Aug 3, 2007: The text of the ‘Agreement for Cooperation between the Government of the United States of
America and the Government of India concerning peaceful uses of nuclear energy’ (123 Agreement) is released
by both governments.
Aug 13, 2007: Prime Minister Manmohan Singh makes a suo motu statement on the deal in Parliament.
Aug 17, 2007: CPI(M) General Secretary Prakash Karat says the ‘honeymoon (with government) may be over
but the marriage can go on’.
Sept 4, 2007: UPA-Left committee to discuss nuclear deal set up.
Feb 25, 2008: Left parties say the UPA would have to choose between the deal and its government’s stability.
March 3, 2008: Left parties warn of ‘serious consequences’ if the nuclear deal is operationalised.
March 6, 2008: Left parties set a deadline asking the government to make it clear by March 15 whether it
intended to proceed with the nuclear deal or drop it.
March 7, 2008: CPI writes to the Prime Minister, warns of withdrawal of support if government goes ahead
with the deal.
March 14, 2008: CPI(M) says the Left parties will not be responsible if the government falls over the nuclear
deal.
April 23, 2008: Government says it will seek the sense of the House on the 123 Agreement before it is taken up for ratification by the American Congress.
June 17, 2008: External Affairs Minister Pranab Mukherjee meets Prakash Karat, asks the Left to allow the
government to go ahead with IAEA safeguards agreement.
June 30, 2008: Prime Minister says his government prepared to face Parliament before operationalising the
deal.
July 8, 2008: Left parties withdraw support to government.
July 9, 2008: The draft India-specific safeguards accord with the IAEA circulated to IAEA’s Board of Governors
for approval.
July 10, 2008: Prime Minister calls for a vote of confidence in Parliament.
July 14, 2008: The IAEA says it will meet on August 1 to consider the India-specific safeguards agreement.
July 18, 2008: Foreign Secretary Shivshankar Menon briefs the IAEA Board of Governors and some NSG
countries in Vienna on the safeguards agreement.
July 22, 2008: Government is willing to look at “possible amendments” to the Atomic Energy Act to ensure that
the country’s strategic autonomy will never be compromised, says Prime Minister Singh.
July 22, 2008: UPA government wins trust vote in the Lok Sabha.
July 24, 2008: India dismisses warning by Pakistan that the deal will accelerate an atomic arms race in the
sub-continent.
July 24, 2008: India launches full blast lobbying among the 45-nation NSG for an exemption for nuclear
commerce.
July 25, 2008: IAEA secretariat briefs member states on India-specific safeguards agreement.
Aug 1, 2008: IAEA Board of Governors adopts India-specific safeguards agreement unanimously.
Aug 21-22, 2008: The NSG meet to consider an India waiver ends inconclusively amid reservations by some
countries.
Sep 4-6, 2008: The NSG meets for the second time on the issue after the US comes up with a revised draft
and grants waiver to India after marathon parleys.

India gets NSG waiver

The Nuclear Suppliers Group (NSG) on Saturday granted India a crucial waiver that will enable it to carry out
nuclear commerce, ending 34 years of isolation enforced in the wake of the 1974 Pokharan nuclear tests.
The unprecedented decision of the 45-nation nuclear cartel giving exemption to a country which has not signed the
Nuclear Non-Proliferation Treaty (NPT) and the Comprehensive Test Ban Treaty (CTBT) is a landmark step in the
implementation of the Indo-US nuclear deal that will now go to the US Congress for approval.
“After protracted negotiations, the NSG today adopted an exemption for nuclear exports to India,” the Austrian Foreign
Ministry said in a statement.
“There is a sense of relief. I am particularly happy that the waiver (for India) meets with international nuclear
non-proliferation architecture,” Peter Launsky, Austrian foreign ministry spokesman said after an unscheduled meeting of
the NSG here.
Austria, along with Ireland, New Zealand and Switzerland had expressed strong reservations over the waiver being given
to India that forced the grouping to have an unscheduled meeting on Saturday after two days of deliberations failed to
produce a consensus.

Interst Rate Futures

Sebi set for interest rate futures in Q4
Hedging Tool For Banks To Beat Fluctuations

After successfully commencing currency futures, Sebi now plans to implement interest rate futures in the
fourth quarter of this fiscal. Speaking on the sidelines of a programme organised by Merchants Chamber of
Commerce on Tuesday, Sebi chairman C B Bhave said an RBI-Sebi joint committee is working out the modalities for this and would submit its recommendations soon.
Bhave said it would take lesser time to implement interest rate futures compared to currency futures. “We started working on currency futures in March and finally implemented it on NSE in August-end. But, we have gained experience through this and so interest rate futures will not take that much time,’’ he said. Interest rate futures help banks and FIs to hedge during interest rate fluctuations.
The Sebi chief said the regulator would examine the possibility of introducing more currencies like euro in the futures platform. “Now, it is only rupee and dollar in currency futures. Later, we could see more hard currencies.
NRIs and FIIs too can be allowed on this platform,’’ he added.
Stressing the need for more co-operation between regulators, Bhave said products like interest rate futures
involves two regulators—RBI and Sebi. “In future too, there should be more co-operation for new products.
Otherwise, new product launches will be delayed,’’ he said. Bhave said Sebi would introduce a pilot project for small investors called Applications Supported by Blocked Amount (ASBA) on September 8.
The project would be kicked off with the IPO of 20 Microns. Sebi has roped in five banks for this purpose—ICICI Bank, HDFC Bank, Corporation Bank, Union Bank and SBI.
Under the scheme, small investors don’t have to pay anything along with IPO applications. The bank where an investor has an account will block the amount for the time being. Only if the share is allotted, would the money be transferred from the account.
Commenting on self-regulatory organisations (SROs), Bhave said intermediary organisations are not keen to
become SROs. “We need a change of mindset,’’ he added.

Daughters of Mittal, Ambani and K P Singh top Forbes list

Riding high on their fathers’ richie-rich status, Vanisha Mittal, Isha Ambani and Pia Singh — daughters of Lakshmi Mittal, Mukesh Ambani and K P Singh respectively — have grabbed the top three rankings on a Forbes list of billionaire heiresses.

While many daughters and grand-daughters of the world’s wealthiest would never actually inherit a billion-dollar fortune, Indian-origin steel tycoon Lakshmi Mittal’s daughter Vanisha Mittal Bhatia has emerged as the potentially richest among those standing to inherit a fortune, according to US business magazine Forbes .

Vanisha is followed by Isha Ambani, the richest resident Indian Mukesh Ambani’s only daughter, at the second rank, and another Indian billionaire K P Singh’s daughter Pia Singh at the third position in the Forbes list of the world’s likely- to-be richest heiresses.

Mittal was ranked as the fourth richest person in the world in March when Forbes published its annual rich list, followed by Mukesh Ambani at the fifth rank.

“Perhaps best known for the USD 60 million wedding her father threw for her in 2004, she (Vanisha) now serves as a director on the board of dad’s USD 103 billion steel company, ArcelorMittal,” Forbes said.

“Her corporate involvement and small family — she has only one brother — puts her in good stead to inherit a sizable chunk of her father’s fortune,” the magazine noted.

About 16-year-old Isha, it said that Mukesh Ambani’s only daughter is “just a teenager but already has her own stake in the family’s Reliance Industries, worth about USD 80 million.”

About Indian realty baron K P Singh’s daughter Pia Singh, ranked third in the heiresses list, the magazine said she already holds a stake worth USD 400 million in the country’s biggest real estate firm.

The Luxury Quotient

Luxury homes continue to dazzle in the wake of robust demand and keen investor
interest. check out some of the top offerings in the country
EVEN in the midst of low sentiments haunting the real estate sector, there is one segment that is totally unfazed by it all. Luxury homes continue to dazzle in the face of robust demand and keen investor interest in the segment. Royal offerings doled out one after the other by real estate
developers show that at least one buyer category has remained as loyal as before — the luxe home buyer. SundayET commissioned a survey to global real estate consultancy Cushman and Wakefield (C&W) to find out some top-of-the-line luxury offerings coming up in the five major cities of
Delhi, Mumbai, Bangalore, Hyderabad and Chennai.
And here’s what they found. While the new luxury apartments in Delhi-NCR were valued at over Rs 10 crore, in Mumbai it easily crossed the 20 crore mark for a 4 BHK. It also found that among the new constructions around the National Capital Region (NCR), properties in Gurgaon commanded a premium, while sea-facing locations in the financial hub attracted the richie rich. Lavelle Road in Central Bangalore was much sought after as a luxury buy. And while Spanish villas in Hyderabad made an opulent statement, it were the spacious independent houses in Chennai that were the new luxury abode. In the survey, they included both projects which have been announced recently or the ones which though announced earlier, were only getting ready now.
Delhi NCR, in itself has at least seven extremely high-end projects. Top corporate honchos, expatriates and high networth individuals (HNIs) dominate DLF’s Magnolias located in DLF Phase V, Gurgaon. The apartments, which will be ready in 1-2 years can go up to a whopping Rs 10 crore with the average size of an apartment at roughly 5,500-10,000 sq ft. Attractive rental potential and substantial increase in capital values since 2005, the locational advantage of the golf course and improved connectivity via the operational Delhi–Jaipur 8-lane super expressway are some of the USPs of this project. Says Rajeev Talwar, executive group director, “Luxury apartments are taken up by actual users so demand will always remain…. Anyone who is buying such an apartment does so keeping a variety of factors in mind. Moreover, these are bought by those who have a surplus.”
Another project in Gurgaon, Ambience Group’s upscale Caitriona project, located in Ambi City NH-8 Gurgaon, will be coming up in 2-3 years and is priced at a royal 8 crore plus tag. Boasting of sevenstar living, it is located amidst the 150-acre Ambience Island premium integrated township.
Caitriona offers limited condominiums for a select few. A great golf course view, super premium international designing and complete furnishing for a readyto-live-in condominium, Caitriona flaunts snob value all the way.
Vipin Agrawal, executive director of Omaxe, feels that the current market scenario will have little effect on this segment. “Luxury homes are always in demand. Top CEOs and businessmen are the main occupants here. Hence, whatever be the market dynamics, there will always be an active demand for such projects.” The realtor has a luxury project, The Forest, adjoining the Noida-Greater Noida Expressway, which sold for Rs 6,500/sq ft.
Spectacular views of the sea in the financial capital of Mumbai was seen as the sign of exclusivity and beauty. Lodha group’s Lodha Solitaire project offers just that on Napean Sea Road in South Mumbai, wherein each apartment offers a tranquil view. High-end amenities such as a mini theatre and an infinity-edge swimming pool further add to the glam quotient. Another project by the same developer, the 48-storey Lodha Bellissimo project features private pools, gardens, private staircases at a starting price of 8 crore for a 3BHK apartment!
However, it is the villas in Bangalore and Hyderabad that come through as a plush buy. Lavelle Road in Bangalore was found to be a much sought after address. Villas in Purva Grande located on Lavelle Road, Central Bangalore are commanding a premium owing to their strategic location. With prices starting at Rs 10 crore, the villas are replete with all leisurely comforts, including terrace pools and gardens. Occupants in another project on Lavelle Road — Mantri Altius by Mantri Developers were chosen personally by the realtor based on factors such as similar interests and non-competing businesses. The 17-floor super premium apartment occupies a built-up area of 85,000 sq ft in a prime locality in the city. Each apartment boasts of a 360-degree view of the city and security arrangements include biometric sensors, sirens and proximity cards. No wonder that the 5,000-6,000 sq ft apartments are in the range of Rs 10 crore upwards.
It’s a touch of Spain in Hyderabad that makes for some royal living. Spanish luxury villas Casa Estebana, developed by Koncept Ambience, are located in Kompally which is witnessing significant residential development primarily in the villa category. With prices starting at Rs 6.5 crore and
going up to Rs 17 crore, unique facilities such as a personal grooming centre, specialty restaurant, manicured landscaping with tree-lined streets and amphitheatre make it exclusive enough. An artificial lake with marine life and natural habitat for birds connect you with nature.
Chennai is no different. And as if taking the nature theme forward, Vijayshanthi Builders’ Raintree project in Alwarpet area in Central Chennai priced upwards of Rs 3 crore, features well landscaped surroundings with large water bodies. A skating rink, multi-purpose hall, water bodies and a
covered car park are some of the other elaborate amenities on offer here.
Besides luxury apartments, independent houses in Boat Club, Venus Colony, Poes Garden, Kotturpuram are preferred luxury residential areas.
Capital values range between Rs 15,000 per sq ft and Rs 25,000 per sq ft, with sizes above 4000-6000 sq ft. Tucked away from heavy traffic, these areas offer serene living. Spacious gardens, barbecue corners, entertainment areas in the garden and patios are additional features making these
houses much sought after. Majestic and palatial — these luxury residences are a dream buy. Exquisite facilities and charming decor basics makes them absolutely priceless.
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Service sector to give more revenue

The contribution of service tax to the country’s GDP is quite low at 1.1 per cent and the government expects to get more
revenue from this sector in future, a top official said.
Contribution of the service sector in the GDP is 56 per cent but the share of the service tax in the GDP is just 1.1 per cent,
Chairman of Central Board of Excise and Customs (CBEC), P C Jha, said here last night.
Jha said the service tax revenue is growing at a rapid pace, in 1994, service tax was imposed on three services and the rate of
duty then was five per cent, with service tax revenue at Rs 410 crore with 3900 service tax payers. Now, 106 services come
under tax and the rate of tax has gone up to 12.36 per cent.
The number of service tax players in the country now has gone up to 5.5 lakh and the service tax collection in 2007-08 was
51,113 crore. In spite of this rapid growth, the contribution of service tax to the GDP is only 1.1 per cent.
For the current year, the target for collection of service tax is Rs 64,460 crore, he said, adding, the department’s expectation is
that it would be exceeded.

Brand Value In Luxury Market

Emporio, home to 90 top-of-the-line brands, comes as a delight for the uber rich craving for luxury products .
LUXURY has a new address. DLF’s luxury mall, Emporio, in the capital has created a 3.38 lakh square-feet home for luxury brands in the country. For years, luxury brands in India have been limited to small confines within the five-star hotels. Less traffic in hotels and a limited scale of operation has always posed a problem for these brands. But Emporio, set to be open soon to public, comes as a delight for the uber rich who craved luxury watches, handbags, shoes and other lifestyle products,
but had a limited choice in the past.
What attracts you even before stepping inside the mall is the building itself. The huge display of brand names such as Louis Vuitton, Dior and Burberry on the glass panels add to the pull factor.
Inside, it is 90 top-of-the-line brands, four levels and plenty of visual delights that Emporio brings for the luxury-starved consumer. As you enter the mall on a dry August day, the Mughal fountain teamed with an artistic display of plants gives a soothing and cool effect. The champagne coloured Italian marble and mosaic floor sparkle, lends an opulent yet elegant look to the mall. Nothing is over the top. Designed by architect Mohit Gujral, the mall has four floors that include spa, wine bar,atrium lounge and restaurants along with the shops. The interiors have been done in burnished wood with brass detailing.
Even the washrooms reflect the rich ‘n’ royal look and are spacious in themselves. Undoubtedly, every detail has been treated with careful attention in the mall.
Rentals, not surprisingly, are steep here. Retail rentals here can be between Rs 1,200-Rs 2,000/ sq ft, say sources. And while not all of these are open yet, some of the stores on the upper ground and first floor are ready for business.
Emporio has brought almost all the world’s luxury brands together under one roof. There are brands such as Cartier,Tod’s, Dolce & Gabbana, Louis Vuitton, Dior, Tiffany’s, Zegna, Paul Smith, Versace, Jimmy Choo, Burberry, La Perla, Hugo Boss and Escada apart from the famous Indian fashion designers such as Rohit Bal, Rina Dhaka, Tarun Tahliani, Abu and Sandeep Khosla, Ranna Gill et al. Several product categories jostle for a dekko, including apparel and fashion, accessories,watches, perfume, jewellery and lifestyle.
And it’s not just fashion or luxury that Emporio limits itself to. The dining arrangements, too, are classy. Terrace cafes,restaurants or confectionaries — the options are aplenty here. It’s like stepping into another realm — magnificent and majestic. The luxury customer need look no further. She can experience luxury’s one-stop-destination on her home turf

India set to export record quantity of basmati rice

india-emerging-market

India looks set to export a record quantity of basmati rice in the current fiscal. Last month, the official agency monitoring the export of basmati rice issued 658 registration-cum-allocation certificates (RCAC) to traders, enabling them to export 165,148 tonnes of basmati rice worth $252 million (Rs.10.08 billion). In July last year, by contrast, the Agricultural and Processed Food Products Export Development Authority (APEDA) had issued only 412 RCACs for exporting 84,926 tonnes of basmati rice. RCAC is a mandatory official approval traders have to acquire for exporting basmati rice. “There is an ever increasing demand for Indian basmati rice, known for superior quality,” Asit Tripathy, chairman and managing director of APEDA, told. “In terms of quality, Indian basmati is matchless. Our quality monitoring and delivery mechanism are good, giving us an edge in the world market,” he said. Some of the major importers of Indian basmati are Saudi Arabia, Kuwait, the UAE, Britain, the US, Yemen, Canada, Iran, Germany, Oman, South Africa, France, Syria, Belgium, Australia and Germany. APEDA data shows Saudi Arabia imported 499,584 tonnes, Kuwait 109,067 tonnes and the UAE 104,998 tonnes of Indian basmati in 2006-07. Though in smaller quantities, Indian basmati has also found takers in Uganda, Angola, Congo, Botswana, Fiji, Ghana, Cameroon, Zambia, Romania, Chile and Suriname. India has around 53 per cent share in the global basmati market, and efforts such as buyer-seller meets, and increasing number of trade delegations abroad are being taken to expand the consumer base. Tripathy said between April and July this year, 3,242 RCACs for the export of 904,317 tonnes of basmati were issued, against 1,666 RCACs for 412,103 tonnes in the last corresponding period. It seems the government’s March 31 decision to increase minimum export price (MEP) for basmati to $1,200 per tonne has not impacted global demand for the commodity. “Almost 90 per cent RACs are honoured. As of now, we do not see any reason for a slowdown in the export of basmati rice,” said Navneesh Sharma, deputy general manager, APEDA. At present, basmati is exported to over 130 countries, and the government hopes to tap the huge markets of China and Mexico in a couple of years. “Efforts are on to enter the market of China and Mexico as well,” said Tripathy. As a trial, India had exported 54 tonnes of basmati to China in 2006-07. APEDA’s assessment says India’s export of basmati is increasing 20-30 percent every year. Exports jumped from 848,919 tonnes to 1.05 million tonnes in 2006-07. India had exported 597,793 tonnes in 1998-99. The government has set a production target of 129 million tonnes of basmati and non-basmati rice by 2011-12 on a growth rate of 3.7 percent along with other food grains.