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Krishnapatnam deep-water port announces financial closure for phase II

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Source : The Business Line Date : 19.03.2009

Krishnapatnam deep-water port announces financial closure for phase II

Our Bureau

Hyderabad, March 18

Krishnapatnam deep-water port in Nellore district has announced completion of financial closure for the Rs 4,000-crore second phase. Of this, a consortium of 16 banks, with State Bank of India as lead bank, contributed Rs 3,500 crore.

Addressing a press conference here on Wednesday, Mr C.V. Rao, Chairman and Managing Director of the Navayuga group, said the phase-II would be commissioned by January 2012.

While the promoters invested Rs 1,400 crore in the company, 3i invested Rs 800 crore to pick an undisclosed equity stake.

The company had won the mandate to build, operate, share and transfer (BOST) the port for a concessional period of 30 years.

Stating that there would be no further dilution of equity, Mr Rao said the funds raised and invested would do for taking up the phase-III as well. “All the further expansion could be taken care by internal accruals,” he said.

Revenue growth

The port, which started off with a capacity of 25 million tonnes a year from five berths, registered revenues of Rs 350 crore in the first year of operations. “We are looking at Rs 600 crore in the next financial year. We hope to reach a turnover of Rs 2,500 crore by 2013,” he said.

Mr Rao said the port would have a captive coal import potential of 37 mt by 2013, with several power plants with a total capacity of 10,000 MW coming up around the port area. This included a 1,300 MW plant by the group itself.

Mr Rao said the port would have a capacity of 50 mt by 2012 and 100 mt by 2025 when all the phases were completed. He said that the port company would break even after four years.

Slowdown impact

Asked whether the slowdown would have any impact on the capacity targets, he said this, in fact, would make the port an attractive proposition for exporters and importers as it offered lesser turnaround time for loading and unloading

Last Updated on Wednesday, 10 June 2009 04:26
 

Mangalore tops in urban malaria cases

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Source : The Business Line Date : 05.05.2009

Mangalore tops in urban malaria cases

Our Bureau

Mangalore, March 4

The share of Mangalore in the reported cases of urban malaria in Karnataka stood at 64 per cent in 2008, according to Mr M. Madan Gopal, Secretary of Department of Health and Family Welfare, Karnataka.

Addressing presspersons here on Wednesday, he said that this was followed by Gulbarga at 25 per cent, Bellary at 4 per cent, Udupi and Hubli-Dharwad at 3 per cent each, and Hospet at 1 per cent.

He said that 94 per cent of cases of malaria in Mangalore were reported from the core Mangalore town itself. As many as 11 areas in the town have been classified as high-risk areas.

Last year, nearly 50 per cent of the budget allocated to control urban malaria was spent on Mangalore itself.

Construction sites, abandoned open wells and overhead tanks in buildings are some of the breeding grounds for mosquitoes leading to the spread of malaria in the region.

Construction activities in the town have led to the increase in the number of migrant workers coming to the city.

In some of the cases, these workers reside at the construction sites. Some of these sites lack basic facilities leading to the increase in the cases of malaria.

Last year, 50 building contractors were penalised for not taking steps to control the breeding of mosquitoes.

Last Updated on Wednesday, 10 June 2009 04:19
 

Karnataka to improve revenue collections

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Source : The Business Line Date : 09.06.2009

Karnataka to improve revenue collections

Central transfers to be lower this year due to stimulus package.

Vishwanath Kulkarni
C.Shivkumar

Bangalore, June 9 To offset shortfalls in Central tax transfers, the Karnataka Government has stepped up efforts to enhance tax collections from the northern regions.

State Government officials said here that more officers would be appointed in the regions for improving commercial tax collections and eliminating leakages.

Karnataka has a tax to GSDP (Gross State Domestic Product) ratio of 11 per cent, among the highest in the country.

The State Government, the officials said, intended to achieve fiscal consolidation through improved revenue mobilisation.

This year, Karnataka’s own tax receipts are targeted at Rs 33,000 crore or about 12 per cent of GSDP.

The officials said that stepping up the tax to GSDP ratio would help them to improve tax collections and continue with the target of achieving a fiscal surplus.

Eyes fiscal surplus

The officials said that if the tax to GSDP ratio was raised to about 15-16 per cent, the State would easily achieve a fiscal surplus. This was without resorting to extraordinary steps, such as selling assets and stakes in the public sector undertakings.

Stepping up the tax to GSDP ratio to the targeted levels will take the tax collections in the State to Rs 44,000 crore.

This would translate into a fiscal surplus by at least Rs 3,000 crore, the officials said.

However, stepping up the tax to GSDP ratio was daunting.

A committee headed by the current Union Minister of Law and Parliamentary Affairs in 2003 had recommended raising the tax-to-GSDP ratios, through improved tax collections, in the State.

However, these recommendations were put on the backburner in view of the political instability.

higher oil prices

Besides, the State Government also had the cushion of high petroleum prices that allowed it to realise high taxes. Taxes from petroleum products generate at least 35-40 per cent of the State’s tax receipts.

Since petroleum continues to be taxed on ad valorem basis, Karnataka like other States was able to meet or exceed its tax receipt targets, when oil prices were high.

This year though, the situation was different, especially with the Centre reducing excise duties as part of the fiscal stimulus package. Besides, the Centre’s indirect tax collections were also expected to take a knock, translating into the resource transfer slippages to the States.

The officials said among the sectors targeted for improving the tax to GSDP ratio were the State excise and stamp duties.

Both these sectors have seen high level of leakages, resulting in revenue shortfalls to the State.

In addition, the officials said there were shortfalls in value-added tax collections in the northern industrial regions, through understatement of the actual value additions.

The State Government officials said that efforts were under way to plug the leakages.

Last Updated on Wednesday, 10 June 2009 03:51
 


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