sector updates - ibef.org · pdf file... aviva life, birla sun life, ... insurance company...

SECTOR UPDATES June 2011

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Auto and auto components Aviation

Banking

Biotechnology

Electrical equipments

Entertainment

FMCG

Gas

Healthcare

Innovations and patents

Insurance

Contents … (1/2)


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IT & ITeS

Power

Pharmaceuticals

Real estate

Retail

Steel

Textiles & apparels

Telecom

Tourism & hospitality

Contents … (2/2)


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Auto and auto components

Sector Updates June 2011

AUTO AND AUTO COMPONENTS

• Takanobu Ito, president and chief executive officer, Honda Motor Corporation (HMC), has said his company would focus on introducing good products in the two-wheeler segment with speed, affordability and low carbon dioxide emissions to build business in India after termination of the joint-venture, Hero Honda, with the Munjals’ Hero Group.

• Speaking at the inauguration of the Honda Motorcycle and Scooter India’s (HMSI) second plant in Tapukara, Rajasthan, Ito said, ―Our brand new plant is not only important for our operations in India but also for our business globally.‖ The company plans to invest Rs 1,400 crore to expand capacity at Tapukara.

• Luxury carmaker BMW India aims to triple its dealership count by 2015 in an attempt to increase sales from regions other than Mumbai and Delhi. The company currently has 22 dealers in the country.

• Harison Motors, an Indo-overseas techno venture has launched four models of All Terrain Vehicles (ATVs) ranging from 50 cc to 200 cc, in Pune. The sporty vehicles can be used in varied locations such as beaches, hilly tracks and sand dunes and are available under the FUNTY brand.

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Aviation

AVIATION

• Air India has entered into a memorandum of understanding (MoU) with Slovenia’s Adria Airways and Aerodrome Ljubljana which is expected to bring in a new era in the field of civil aviation between India and Slovenia. The MoU will allow Adria Airways to access Air India's network while giving Air India access to the East European market.

• Opening a new route this October is British Midland International (bmi), a group airline of the German carrier Lufthansa which will start its India operations from the city of Amritsar in Punjab to London Heathrow.

• Low-cost carrier, IndiGo, has signed a $16-billion dollar deal with Airbus to acquire 180 single-aisle aircraft. The firming-up of the order for 150 A320neo and 30 A320 planes follows the memorandum of understanding the carrier had signed with the European aircraft manufacturer in January.


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Banking

BANKING

• The country's foreign exchange reserves increased by $1.681 billion to $310.215 billion for the week ended May 27, mainly on account of currency revaluation.

• In the earlier week ended May 20, forex reserves had increased by $1.041 billion to $308.534 billion.

• Meanwhile, foreign currency assets increased by $1.671 billion to $278.873 billion, in the week under consideration

• Spanish bank BBVA has received a Foreign Institutional Investor licence from SEBI to invest in the Indian bond market.

• Government-owned Syndicate Bank has shortlisted 12 insurance companies for a joint venture for its proposed foray into the life insurance business. The list has both players operating in India, as well as prospective foreign entrants. Among Indian insurers, Aviva Life, Birla Sun Life, HDFC Standard Life, Max New York Life and Metlife India Life have evinced interest in a joint venture with the Manipal-based bank. Two Japanese insurers, Mitsui Sumitomo Insurance Company Limited and Sumitomo Life Insurance Company, have also expressed interest in a venture with the bank.


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Biotechnology

BIOTECHNOLOGY

• Biotech firms Serum Institute, Panacea Biotec and Bharat Biotech have independently agreed to supply pentavalent and rotavirus vaccines for infants at discounted rates to global health NGO GAVI Alliance.

• The pentavalent vaccine protects against five potential killers: diphtheria, tetanus, pertussis, hepatitis B, and Haemophilus influenzae type b. Rotavirus is the leading cause of severe diarrhoea — the world’s second-biggest killer of children after pneumonia.

• Wipro Technologies has launched Wipro Clinical Collaboration Portal, a secure cloud-based productized solution to help drug development owners (DDOs), clinical research organisations (CROs) and regulators to improve collaboration for multi-region clinical trials.


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Electrical equipments

ELECTRICAL EQUIPMENTS

• Moser Baer Solar Limited (MBSL) has signed an agreement with Munro Solar for the distribution of its solar photovoltaic modules in the United States. Munro Distributing Company Inc has its presence in 11 locations across four states in the East and West coasts and will offer MBSL's multi-crystalline silicon solar modules and utilize them to design commercial turnkey solar PV systems for its customers.

• French electrical-engineering and power-management company Schneider Electric is slated to acquire 74 percent of Delhi-based Luminous Power Technologies for around 215 million Euros.


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Entertainment

ENTERTAINMENT

• India has struck Gold at Cannes Lions. In the Media Lions category, Lodestar UM won a Gold Lion for Garnier. Maxus India won a Silver Lion for Tata Sky in the same category. In the Outdoor Lions category, India picked up 3 metals—one silver and 2 bronze. Taproot India picked up the Silver for Audio Book India and the Bronze Lions were picked by Sorento Healthcare for its work on osteoporosis for Wockhardt and BBDO India for the travel company White Collar Hippies.

• HSBC Principal Investments, the private equity arm of the HSBC Group, has invested $60 million for a minority equity interest in Avitel Post Studioz Limited, a Mumbai-based post-production and media entertainment technology company.

• Atalanta, the infrastructure and real estate company, is looking for a partner ready to buy a 26 per cent stake in a mega entertainment township project it is developing at Suvali near Surat in Gujarat. The cost of the project, run under a special purpose vehicle, Atlanta Tourism Ventures, is Rs 9,500 crore.

• Big Cinemas is planning to double the number of its 3D screens in next 6-8 months. Similarly, Cinemax plans to come up with 30 new 3D screens this year while PVR has a total digital screens count of around 90 as on date, 30 of which are 3D.

• Percept Media, the media planning and buying arm of entertainment marketing firm Percept Ltd has inked a strategic alliance with Pointlogic - an integrated marketing communications firm. Under the alliance, Percept and Pointlogic will launch integrated services to deliver better returns-on-investments for marketers across traditional advertising and social media, according to Percept.


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FMCG

FMCG

• McCormick & Co, Inc, of the US, a leading spice maker, will invest close to Rs 520 crore (about $ 115 million) in a joint venture it will form with Kohinoor Foods Ltd, a leading marketer of branded Basmati rice and other food products.

• Mumbai-based Godrej Consumer Products Ltd (GCPL) has entered into an agreement with African hair care company Darling Group Holdings to acquire 51 per cent stake in the firm. Darling operates in 14 countries in sub-Saharan Africa. Its flagship brand shares the name of the firm, with a second brand, Amigos, which operates in a few African markets.

• Tiger Global has invested $6 million in the online jewellery portal, CaratLane, in its second e-commerce investment this month. Earlier this month, the global PE major had invested $20 million in books-to electronics e-retail venture, Flipkart. CaratLane, which supplies to 50 cities, will use the funding to expand its national footprint.


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Gas

GAS

• GAIL (India), the country’s biggest gas marketing company, is looking to expand rapidly in areas of city gas distribution (CGD) and related pipeline infrastructure through tie-up with various state government entities. Having tied up with state entities in Karnataka and Kerala, the company is now looking to forge partnerships with state government entities in Rajasthan, Maharashtra, Andhra Pradesh, West Bengal, Orissa, and Tamil Nadu among others.

• Oil and Natural Gas Corporation (ONGC) plans to invest $7.7 billion to develop its gas field in the KG Basin, adjoining Reliance's prolific D-6 block, and produce up to 30 million cubic meters a day in five years.

• The Cabinet has approved the merger of ONGC's Russian assets with Sistema-promoted Bashneft and RussNeft in a deal that will give the Indian company access to Trebs & Titov oilfields, boost profitability of its Imperial Energy and ownership of 25 per cent stake in the merged entity with a management say.


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Healthcare

HEALTHCARE

• Indian firms in the pharmaceuticals ingredients space are thronging the Japanese market — an outcome of the Japanese government’s decision to entertain the use of copycat drugs in the country. Active Pharmaceutical Ingredient (API) manufacturers such as Ind-Swift Labs, Suven Life Sciences and Dishman Pharma are set to join hands with Japanese generics producers to supply APIs and intermediates in the world’s second biggest pharmaceutical market after the US. The Japanese pharma market is estimated at around $75 billion.

• Manappuram Health Care Ltd, a venture of the Manappuram Group of companies, has forayed into the healthcare sector and plans to invest Rs 1,000 crore over the next five years to set up a chain of medical, dental clinics and diagnostics centres across South India.

• Drug maker Dr Reddy's Laboratories launched Levofloxacin tablets, used to treat bacterial infections after getting an approval from the US drug regulator.

• The tablets, available in the 250mg, 500mg and 750mg strengths, would be sold in the US market alone. The infections that can be treated include respiratory tract infections, cellulitis, urinary tract infections, prostatitis, anthrax, endocarditis, meningitis, pelvic inflammatory disease and diarrhoea.


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Innovations and patents

INNOVATIONS AND PATENTS

• A memorandum of understanding (MoU) would be signed between The National Innovation Foundation (NIF) and Malaysian Department of Science, Technology and Innovation in July, 2011 to help the department in Malaysia for scouting, documenting, dissemination, insulation and capacity building of innovations.


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Insurance

INSURANCE

• As per the regulatory guidelines released by The Insurance Regulatory and Development Authority (Irda), insurance companies interested in mergers would now have to take the approval of the relevant high court or tribunal before securing the final nod from the insurance regulator. The solvency margin of the merged entity would also have to meet regulatory requirements.

• For its proposed entry into the life insurance business, Syndicate Bank has shortlisted 12 insurance companies for a joint venture The list includes both prospective foreign entrants and players operating in India.


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IT & ITeS … (1/3)

IT & ITeS

• Indian BPO company Intelenet has been acquired by UK-based international services firm Serco for Rs 2,772 crore. It is the largest acquisition in the Indian BPO space. Intelenet is the market leader in the domestic BPO space and the combination of Serco BPO’s business with Intelenet's domestic business will help in further strengthening its position.

• Intel, has announced that it would be focusing on tier-II and tier-III towns of Gujarat for technology adoption.

• The public cloud computing market in India is estimated to reach Rs 2,434 crore by 2014 and would be growing at a Compound Annual Growth Rate (CAGR) of 53% between 2010-2014 as per market intelligence and advisory firm CyberMedia Research's India Cloud Computing Market Review 2011.

• Mahindra Satyam, in collaboration with Schneider Electric India, has opened a smart grid customer demonstration centre at its 120-acre premises in Hyderabad. The facility would simulate micro-grid technologies for the future.

• Private equity funds made investments to the tune of Rs 1,040 crore ($230 million) in 33 online ventures while Rs 420 crore ($93 million) was invested in 20 online entities in 2009-10 according to a report by Venture Intelligence, a research service focused on private equity and merges and acquisitions.

• Japan-based Ylem Infotech Pvt, involved in web/software services of flash animations, gaming softwares and mobile applications, has started its Indian operations from Technopark in Thiruvananthapuram.


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IT & ITeS … (2/3)

IT & ITeS

• Infosys Technologies has acquired Gen-i's software solutions practice, an arm of New Zealand-based Telecom Corp for NZD5 million.The partnership is expected to add revenue to the tune of of NZD12 million for the current financial year.

• The country's domestic IT-ITeS services and tech products markets are expected to increase to Rs 1,71,697 crore in 2012 – about 17.4 per cent higher than 2011. The aggregate market size of domestic IT services and IT products sector is likely to touch Rs 2,33,930 crore by 2014, growing 17.3 per cent between 2010 and 2014 as per projections by research and advisory firm CyberMedia Research.

• The IT department of Kerala and the Finnish government are looking at developing a strong partnership and collaboration to foster innovation and entrepreneurship. Technopark CFO KC Chandrasekharan Nair represented the state in the 4th Global Forum on Innovation & Technology Entrepreneurship organised by the government of Finland and InfoDev (World Bank) at Helsinki.

• Wipro Technologies has come up with Wipro Clinical Collaboration Portal, a secure cloud-based productized solution. The service aims at helping drug development owners (DDOs), clinical research organisations (CROs) and regulators to improve collaboration for multi-region clinical trials.

• Motorola Mobility has launched the Xoom tablet in 3G and Wi-Fi in India, priced at Rs 32,990 and 39,990.

• SAP’s Indian subsidiary reported revenue of euro 395 million (Rs 2,539.8 crore), a growth of 35 per cent from euro 291.6 million (Rs 1,874.9 crore) in 2009, representing about three per cent of the company’s global revenue of euro 12.46 billion. The revenue includes SAP Labs India and SAP India Ltd.


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IT & ITeS … (3/3)

IT & ITeS

• IBM India is the leader in the domestic Indian software market in 2010 with a 31.4 per cent share in the industry's revenues last year, as per the research firm Gartner Inc.

• Software services provider HCL Technologies has entered into an agreement with Finzsoft, a New Zealand-based banking and finance software solutions company to distribute and deliver a unified product solution.


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Power … (1/2)

POWER

• Wipro Eco Energy, a unit of the company's flagship Wipro Technologies, plans to build solar plants with a generation capacity of up to 100 MW of power by the end of current financial year.

• The 3-MW grid connected solar power plant which has been set up by Tata Power at Mulshi, near Pune, has generated around 0.76 million units of electric energy in the two months since it has become operational, and is expected to contribute a total of 4.5 million units a year to the grid.

• IL&FS Energy Development Company (IEDCL) — the power arm of IL&FS — is working on setting up as much as 15,000 megawatt (Mw) of capacity in the next five to six years.

• Lanco Infratech Ltd would be adding 1,600 MW of power generation capacity during 2011-2012 with a capital expenditure of Rs. 9,000 crore.

• National Aluminium Company Limited (NALCO) has decided to start a 50.4 MW Wind Power Project at Gandikota in Kadapa district of Andhra Pradesh. The Navratna PSU has been keen to enter into other metals and energy sectors.

• Astonfield Renewable Resources has formed a strategic partnership with Spain-based solar power producer Grupo T-Solar Global with the initiation of a five megawatt solar photovoltaic project at Osiyan in Rajasthan.

• Azure Power has announced the commissioning of Phase I of its 10 MW solar photovoltaic plant at Khadoda village, Sabarkantha district in North Gujarat. The plant is India's largest solar power project.


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Power … (2/2)

POWER

• Tata Motors and the New Energy and Industrial Technology Development Organisation (NEDO) of Japan has come up with an environment-friendly dual-fuel based power generation facility at the company's Pune plant.

• The International Finance Corporation (IFC) has invested $4 million in Sapphire Industrial Infrastructures Private Limited to implement the country's first large-scale grid-connected thin-film solar plant.

• Jindal Steel and Power Ltd (JSPL) plans to increase its power generation capacity by 1000 MW to 2,700 MW by the end of the current financial year.

• Suryachakra Green Power Private Limited (SGPPL), a group company of Hyderabad-based independent power producer Suryachakra Power Corporation Limited, has signed an MoU (memorandum of understanding) with WinWind Power Energy Private Limited (WPEPL) for a wind energy project with 250MW capacity at Dharapuram in Tamil Nadu.

• Greenko Group, has received permissions to develop wind farms in Maharashtra, Karnataka and Rajasthan with a total installed capacity of 650 MW in phases.

• Adani Power Ltd (APL) is all set to commission its 40-megawatt (Mw) photovoltaic solar project at Bitta village, near Abdasa, in Kutch district of Gujarat by the end of this financial year.

• NTPC has formed a joint venture company, National Power Exchange Ltd (NPEX), to develop a power exchange. It will be the third exchange in the country and is expected to be operational within a year.


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Pharmaceuticals … (1/2)

PHARMACEUTICALS

• Dr Reddy's Laboratories has launched three generic drugs in the US market. The drugs are used for the treatment of central nervous system disorders and have been approved by the US drug regulator.

• Elder Pharma would be investing about Rs 130 crore in its research facility.In 2010, the research facility was upgraded to focus on developing new drug delivery systems.

• Indian firms in the pharmaceuticals ingredients space are targeting the Japanese market. Active Pharmaceutical Ingredient (API) manufacturers including Ind-Swift Labs, Suven Life Sciences and Dishman Pharma are set to partner with Japanese generics producers to supply APIs and intermediates.

• Pharma companies have doubled their rural market sales on the back of aggressive marketing initiatives. Improved access to healthcare and rising incomes have been drivers in the underserved rural market over the past year.

• Zydus Cadila has signed an asset purchase agreement with a US-based pharma company for a cash deal of $60 million. The deal also includes purchase of two generic drugs – Micro-K and Potassium Chlroide ER capsule products.


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Pharmaceuticals … (2/2)

PHARMACEUTICALS

• Dr Reddy's Laboratories has launched Levofloxacin tablets, after getting an approval from the US drug regulator. The tablets used to treat bacterial infections are available in the 250mg, 500mg and 750mg strengths and would be sold in the US market alone.

• Jubilant Discovery Services Inc, a US based subsidiary of Jubilant Life Sciences Company, has formed a drug discovery alliance with Janssen Pharmaceutica N.V. to deliver preclinical candidates to Janssen. The alliance would be for an initial period of 3 years and will focus on multiple targets in the area of neuroscience.


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Real estate

REAL ESTATE

• Atalanta, the infrastructure and real estate company based in Mumbai, is on the lookout for a partner ready to buy a 26 per cent stake in a mega entertainment township project it is developing at Suvali near Surat in Gujarat. The cost of the project, run under a special purpose vehicle, Atlanta Tourism Ventures, totals Rs 9,500 crore.

• Italian furniture maker Natuzzi Group is planning to partner with real-estate developers in India. The company is banking on the demand for pre-furnished mid- and premium-segment apartments or condo-villas worth over Rs 60 lakh to increase its sales in the country.

• Infrastructure company Phoenix Group will invest Rs 2,000 crore in six real estate ventures in Hyderabad, including Rs 350 crore in Golf Edge, a mixed use project, which will have a five-star hotel and high-end residential apartments.


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Retail

RETAIL

• Reliance Retail will make its entry into the cash and carry market with "Reliance Market" in Ahmedabad. The first Reliance Market will open in Ahmedabad in August 2011.

• Marks and Spencer Reliance India (M&S India) has announced that it will increase its sourcing of local merchandise to 70 per cent in the next two years for its Indian operations. It is also extending its business to Tier 2 cities to meet rising demand.

• Singapore-based CapitaMalls Asia, which develops, owns and manages malls across Asia, has plans to invest Rs 1,800 crore in India for the next three years.

• Schneider Electric India has come with a retail rollout for its switches, sockets and distribution systems for the home and SMB (small and medium business) markets.


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Steel

STEEL

• Steel Authority of India Ltd (SAIL) will invest Rs 70,000 crore in the next two to three years to expand its hot metal capacity to 23.46 million tonnes per annum (mtpa) from 13.8 mtpa presently, to meet increasing demand from the infrastructure sector.

• Steel pipe maker PSL, is looking at options of entering the port construction business.The company is set to invest up to Rs 500 crore in building a jetty at Kandla Port in Gujarat, through the public-private participation route.


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Textiles & apparels

TEXTILES & APPARELS

• Ahmedabad-based textile major Arvind Ltd has partnered with Geoffrey Beene, LLC for apparel and non-apparel products. As per an agreement, Arvind Retail Ltd, a vertically integrated arm of Arvind Ltd will have the rights to produce and market Geoffrey Beene products for its own retail format, Megamart stores, including franchisee operated stores.

• Indian Institute of Entrepreneurship (IIE), a Central government organisation under the ministry of MSME, would be developing a handloom cluster in the Mangalore area of Haridwar district under an integrated handloom development scheme in Uttarakhand. The cluster would benefit over 400 weavers, mostly Muslims.


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Telecom

TELECOM

• Techzone would be investing around Rs 30 crore in product expansion, including its entry into mobile gaming service business, in the current fiscal.

• Sam Pitroda has been asked to oversee the communication ministry's Rs 20,000-crore project, its largest ever, to roll-out a national optic fibre network, which will take high-speed internet to the hinterlands.

• Chinese telecom equipment maker Huawei Technologies will invest $120-$150 million to develop its own R&D campus in Whitefield, Bangalore — the first company-owned research facility outside China. The company is also planning to start operations at its manufacturing facility in Sriperumbudur, near Chennai in the next two years to cater to the domestic needs of the telecommunications market. The plant is expected to attract an investment of around $500 million.

• Indian GSM telecom operators added 9.53 million subscribers in May 2011, taking the all-India GSM cellular subscriber base to 590.19 million according to Cellular Operators' Association of India (COAI).

• Revenues of the Indian mobile handset market rose by 15 per cent to reach Rs 33,171 crore in 2010-11 from Rs 28,897 crore a year back, as per an annual survey by the telecom industry journal Voice&Data.

• Nokia has come up with the Mobile Money client service in all its devices in India. The service is available not only on high-end Symbian smartphone devices, but also on Nokia’s Series 40 feature phones and Series 30 entry level devices. The service is supported by keyboard devices, touch devices and a combination of the two.


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Tourism & hospitality … (1/2)

TOURISM & HOSPITALITY

• Visa processing firm VFS Global, has started a Thailand visa application centre in Hyderabad. The centre would be responsible for activities from accepting applications to processing visas from Andhra Pradesh.

• The Environment Ministry has come up with a set of guidelines to regulate tourism in ecologically fragile areas. The draft guidelines on eco-tourism aims at stemming the tide of "eco-tourism" which has been to the detriment of the ecosystem and has resulted in further alienation of the local people and communities.

• Mumbai-based Berggruen Hotels, has plans for investing around Rs 700 crore for business expansion targeting completion of 40 hotels in the next five years.

• The Mayfair Hotels & Resorts Group is all set to open its first hotel in Kolkata. The company has carved a niche for itself in the hospitality space with five-star properties in locations like Bhubaneswar, Goa, Darjeeling, Puri and Gangtok.

• European hospitality major Swissotel would be coming up with three more five-star hotels in India by 2013. Two hotels would be in Bengaluru and one at Gurgaon.

• Intercontinental Hotels Group (IHG), would be hiring 25,000 people by 2015. From the current number of 14, the group is expected to expand to 46 hotels in the country in the next four to five years across Tier I and II cities.


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Tourism & hospitality … (2/2)

TOURISM & HOSPITALITY

• The Industrial Infrastructure Development Corporation of Orissa (Idco) has granted over 972 acres of land to the Orissa Tourism Development Corporation (OTDC) for the Rs 3,500-crore Shamuka tourism project.

• Foreign tourist arrivals (FTAs) during the period January-May 2011 stood at 25.23 lakh compared with 22.63 lakh during January-May 2010, a rise of 11.5 per cent according to data from the Union Tourism Ministry.


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