Category Archives: Investment law
Investment in Asia
Asian countries are serving as a major engine for global growth by way of increasing its exports as well as attracting foreign direct investments. The economic success has translated to social reforms as well, poverty rates have fallen, life expectancy has risen, and the quality of life has improved significantly over the past half century. IMF has estimated developing Asia’s average growth at 7.1% for 2013 and 7.3% for 2014 as compared to world at 3.3% in 2013 and 4% in 2014 and advanced economies at 1.2% in 2013 and 2.2% in 2014. Asia has been the fastest growing region of the world for several decades, comprising more than 60% of the global population and it accounts for almost a quarter of global output (22%). The speed and extent of Asia’s economic and social progress has been inspiring and these emerging economies are now advancing at an impressive pace as a major global economic power. Asian region is emerging with strong demographics and making it lucrative for investment and trade. In the recent years, due to export diversification efforts, the share of developing economies in India’s total exports witnessed a gradual increase. Increased diversification in trade destinations from the advanced economies to the emerging economies might open up fresh avenues for progress in this area, going forward.
Posted in Investment law
Tagged Emerging market asia, investment in Asia, Law Firm Asia, Lawyer Asia
General Electric Retreat In The Face of India’s Tough Liability Laws
India’s tough civil nuclear liability laws have sent at least one private company
running for the exits, while other companies backed by governments are rushing in to fill the void. General Electric became the latest private company to pull up stakes from India, announcing this week that it will not pursue the nuclear energy business in India because it can’t abide by India’s civil nuclear liability laws. GE has stated that it doesn’t want to take the risk of running afoul of India’s tough laws regulating nuclear power. This will likely leave the nuclear power business open to countries like Russia or France which are willing to meet India’s demands concerning nuclear power. “If the liability law stays the way it is, we won’t pursue the business,” said John Flannery, the CEO and president of GE India in an interview with Forbes – India. “We are a private enterprise and we just can’t take that kind of risk profiles,” he added. Strong
objections America, in particular, has voiced strong objections to India’s Civil Liability for Nuclear Damage Act that India’s government passed into law in 2010. American diplomats claim that the law violates international conventions. India has clearly gone its own way concerning the development of nuclear power in the country. After the disastrous tsunami and earthquake in Japan in March, 2011 destroyed a nuclear power plant at Fukushima, other governments have been reassessing their reliance on nuclear power and concerns around commercial property. The subsequent earthquakes that followed the tsunami triggered a meltdown of three reactor cores at the nuclear plant owned by Tokyo Electric Power Co. The plant was designed by GE. Since then, Germany announced that it would shut down 17 of its nuclear power plants within 10 years. Japan, too, pledged that it would pull the switch on all nuclear facilities by 2040 but could reverse itself with the election of the new Liberal Democrat Party. India, though, was largely unfazed by the Fukushima nuclear accident. Nuclear Power Corporation of India plans to add 37,500 megawatts of generation power to its facilities. That means billions of dollars in sales for a company that supplies the generating equipment. India is one of the few countries that has embraced nuclear power as a solution to its growing energy needs. However, the country has little or no capacity to supply fuel and reactor technology, so it must depend upon foreign companies. Major nuclear industry companies have lined up for a piece of the action, including Rosatom, Areva, GE and Westinghouse. Nuclear liability law After GE pulled its stakes from the playing table, America’s deputy assistant secretary of state for South and Central Asian Affairs complained that India’s nuclear liability law is not in sync with international nuclear principles as outlined in the Convention on Supplementary Compensation for Nuclear Damage. “There are a number of different countries on a common regulatory regime if you will. And we do business in those countries,” said Flannery. He added that India’s Nuclear Damage Act is not in line with the convention rules, and because of that, GE is not comfortable with engaging in business with India. This reluctance of conforming to India’s laws has scared away some private companies, but others see it as an opportunity to ingratiate themselves to the Indians. French President Francois Hollande, who visited India recently, embraced the civil nuclear liability law and told the country that France respected Indian law. Hollande, in a recent interview with The Times of India, said that France and India are in a “strategic embrace.” He assured the Indian people that the reactors that France is building for itself are the same reactors that France is selling to India. France is currently constructing India’s largest nuclear power plant near the port of Jaitapur in the Maharashtra State. This is a 9,900 megawatt power project and will be the largest nuclear power generating plant in the world when completed. The plant was designed to give India energy security. France is expected to supply fuel for the plant for 25 years. The estimated cost for the Jaitapur plant is $18.2 billion. The French nuclear giant Areva stands to make billions of dollars in sales as India continues to build power stations to meet the country’s expanding population. GE is saying, no, thanks. This article is written by Jennifer Swanson.
Water, Waste Water & Sanitation India
Delhi Jal Board (DJB) has approved the Delhi Water and Sewer (Tariff and Metering) Regulations, 2012 with the objective to ensure transparency in its functioning and minimize consumer grievances. These regulations will cater to issues related to installation fee and rent of meters and, maintenance and testing of meters. To cater the drinking water needs of the residents of Greater Jammu for the next thirty years (2042), the Jammu and Kashmir (J&K) government is preparing a mega water supply project to be developed in two phases with an investment of Rs 10.08 billion. The Economic Reconstruction Agency, J&K government has been asked to prepare the detailed project report (DPR) for the first phase of the project, which is estimated to cost about Rs 5 billion. The Coimbatore City Municipal Corporation in Tamilnadu is planning to commence work on the project involving setting up of a sewage treatment plant (STP) at Ondipudur. The plant will be based on the sequencing batch reactor technology and entail an investment of Rs. 512 million. The Chennai Metropolitan Water Supply and Sewerage Board in Tamilnadu has decided to implement a centralized online network to monitor the entire water supply system from souring to distribution, to augment accountability in water supply management. The project is estimated to entail an investment of Rs. 20 million. The Punjab government has approved a total revamp plan under the Punjab Urban Development Mission to upgrade civic amenities in all 142 cities of the state with an investment of Rs 87.45 billion. Work under the plan include providing and maintaining water supply and sewerage system, laying new and upgrading existing internal roads, street lighting, maintaining green belts etc.
