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Airport segment lifts GMR Infra's profit growth

Buoyed by superior profits generated by its airport segment, GMR Infrastructure managed to post a 26 per cent growth in its June quarter profits (to Rs 28.4 crore) compared with numbers a year ago.
Write-back of provisions of Rs 30 crore following a favourable order from the Tamil Nadu Electricity Regulatory Commission also boosted the bottom line.
Revenues inched up by 4.6 per cent, as one of its power plant that was being relocated, was not operational during the quarter. A 6 per cent expansion in equity as a result of institutional placement made during the quarter also meant that growth in per-share earnings remained muted. Decline in operational expenses including fuel ensured close to 3 percentage points expansion in operating profit margins to 30 per cent in the first quarter.
With the shifting of its gas-based power plant from Mangalore to Kakinada, close to a third of GMR's operational power capacity (total capacity of three plants being 823 MW) was not contributing to revenues. As a result, segment contribution from power dipped to Rs 54 crore, down 10 per cent compared with June 2009.
However, this was compensated by superior performance by the company's airport segment, which accounted for close to 35 per cent of the June quarter's revenues. Operating profits from this segment jumped 95 per cent; thanks to a 16 per cent growth in passenger traffic as well as cargo traffic , during the quarter in the Delhi airport. The new terminal three, which was flagged off in July, would further increase volumes for the airport from the coming quarter. This, together with the Kakinada plant, which is now operational, is likely to ensure higher growth in top line from the September quarter.
Funding its power and road projects that it has won would be the key medium-term challenge for GMR. The company has an equity commitment of about Rs 7,500 crore (Rs 1,500 crore already met) for its power projects coming up over the next 3-4 years.
On the road front, the company has Rs 650 crore of equity commitment for about three projects. GMR has therefore been using a combination of debt and equity issues to meet its requirements. In the June quarter, the company raised Rs 1,400 crore through institutional placement that expanded it equity by 6 per cent. Long-term debt from LIC and non-convertible debentures totalling to Rs 1,500 crore besides debt incurred for its overseas acquisition of Intergen in 2008, is likely to keep its debt/equity ratio at close to 2; not high considering the value of assets under development.
Cash infusion
If recent reports of a 50 per cent stake sale in the US-based Intergen fructifies , GMR would receive fresh cash infusion; potential deployment of which would be in in existing projects and projects such as the Male Airport. GMR spent a little over $1 billion for its stake in Intergen and may therefore look for at least Rs 4,600 crore to part with its stake.



GMR Infra incurs Rs 6.96-cr loss in Q1

Bangalore, Aug. 9
GMR Infrastructure Ltd posted net loss of Rs 6.96 crore for the April-June quarter compared to a net profit of Rs 3.56 crore for the same quarter of 2009.
Total income increased more than four-fold year-on-year to Rs 76.69 crore (Rs 17.9 crore) On a consolidated basis, the group posted a net profit of Rs 28.44 crore y-o-y (Rs 22.53 crore) after minority interest and share of profit from associates. Income from revenue grew almost five per cent to Rs 1,298.6 crore (Rs 1,189.58 crore). “Capacity costs being interest charge and depreciation/amortisation have increased by Rs 106 crore (36 per cent) over the corresponding quarter and continue to constitute the major elements of costs. This has affected PAT growth adversely,” the company with interests in airports, energy and highways said.
The airports sector grew 32 per cent in net revenue. The energy sector revenues fell 7 per cent due to the movement of the 220-MW barge plant to Kakinada; the highways sector revenue grew 29 per cent.
Mr G.M. Rao, Group Chairman, said, “The current financial year has started on a positive note for us. We have relocated our 220-MW barge-mounted power plant to Kakinada and resumed generation. This will give us significant upside in our revenue this year. We have also completed the new Terminal 3 in Delhi airport, well ahead of the Commonwealth Games. We also won the prestigious Male international airport against global competition.
All-round progress
“The successful financial closure of two highway projects completed the story for all-round progress across all three sectors we operate in. We are looking forward optimistically to the rest of the year on the back of these early successes this year.”
The combined cycle operation of the Kakinada plant is planned for mid-August and would reach full capacity by the end of this month. With the completion of all power projects, the company expects to reach total operational capacity of 4,261 MW in the next three years, providing assured increase in the revenue stream.

Reliance Capital net dips 49%

Mumbai, Aug. 9
Reliance Capital reported a 49 per net dip in its consolidated net profit during the quarter ended June 2010 due to lower capital gains and loss incurred in the general insurance business. Its net profit dropped to Rs 76.9 crore in June 2010 quarter from Rs 151 crore during the corresponding year-ago quarter.
The company's total income fell 14.6 per cent to Rs 1,253.8 crore (Rs 1,469 crore).
In a press release, the company said the total income and net profit fell due to a lower capital gains tax and a loss of Rs 39 crore from its general insurance business.
Income from its finance and investments dipped to Rs 254 crore (Rs 346 crore) and its revenue from asset management fell to Rs 509 crore (Rs 622 crore).
Its standalone net profit fell to Rs 50 crore from Rs 104 crore and total income to Rs 214.7 crore (Rs 615 crore).
Reliance Capital closed down 1.7 per cent at Rs 768.45 on BSE on Monday.






Amara Raja group cos join TERI initiative

Hyderabad, Aug. 9

Amara Raja Electronics Ltd (AREL) and Amara Raja Batteries Ltd (ARBL) have joined hands with The Energy Resources Institute (TERI) in its cost-effective off-grid lighting solutions for rural electrification under its ‘Lighting a Billion Lives' (LaBL) campaign.
TERI has developed new models of solar lanterns jointly with its technology partners. The new solar lanterns will provide affordable lighting solutions and ensure high quality illumination.
AREL shall support TERI to develop and customise solar products and help set-up charging stations on a turnkey basis across various locations.
Solar lanterns are recharged at a village solar charging station and rented out to the villagers at a daily nominal cost.






Insurance companies told to prune costs

Hyderabad, Aug. 9

Chairman of the Insurance Regulatory and Development Authority (IRDA) J. Hari Narayan has asked insurance companies to bring down the costs of management and selling products for their long-term sustenance. He also stressed the need to redesign insurance products, particularly health policies.
Speaking to meadipersons after inaugurating the 106 {+t} {+h} testing and assessment centre (TAC) for online testing of insurance agents here on Monday he said: “Cost containment means not just one measure but reducing every possible cost as the IRDA's concern is to keep the insurance industry healthy in a long-term perspective.” He, however, admitted that there would be some amount of pain in it.
Stating that IRDA would announce new guidelines on the administration of health insurance shortly, Mr. Hari Narayan said many aspects such as making health insurance claim formats uniform and simple across companies for the convenience of policyholders were being thought of.
On the stand-off between insurers and major hospitals on the provision of cashless treatment, he said that IRDA would not intervene in the matter. It was a commercial issue between insurers and hospitals and hoped that it would be resolved soon.
Asked about the possible jurisdiction conflict with the proposed Pension Fund Regulatory and Development Authority (PFRDA) Bill, if it was enacted, Mr. Hari Narayan said the IRDA would have inter-regulator relations with the help of high level coordination committee (HLCC).
The IRDA was planning to conduct only online testing of prospective insurance agents from April 2011, Mr. Hari Narayan said. As many as 250 TACs would be set up across the country by the end of current financial year by NSE.IT in association with Insurance Institute of India (III). Managing Director and CEO of NSE.IT Ramesh Padmanabhan was also present.



Builders move CCI, accuse cement firms of cartelisation

New Delhi Aug 9

Builders have moved the Competition Commission of India (CCI) alleging that cement firms, including A V Birla group firm Grasim, ACC, Gujarat Ambuja and others, have formed a price cartel and it is costing them dearly.
Through their apex association, builders have formed a united front against major cement manufacturers, accusing them of forming a cartel and raising rates of the building material artificially.
The Builders Association of India (BAI) has alleged the Cement Manufacturers Association and 11 of its members have indulged in forming arrangements, directly or indirectly, to fix the selling price of cement.
“Besides indulging in an act of cartelisation, a few of the above mentioned respondents have acquired a dominant position as defined under Section 4 of the Competition Act,” the BAI said in its complaint.
According to the complaint, the cement price of around Rs 231 per bag during the January-March period in Delhi increased to Rs 238 per bag between April and June. In Mumbai, the price rose from Rs 267 to Rs 273, while in Kolkata, cement prices rose from Rs 216 to Rs 233 per bag.
However, when contacted, Grasim Wholetime Director Adesh Gupta said, “There is no cartelisation, otherwise prices would have not fallen down like this.” The Cement Manufacturers’ Association also rubbished the allegations.
“Prices are coming down everyday for the last three-four months. So, how does the question of cartelisation arise? There is absolutely no truth in this. Prices are below the cost of production now,” said H M Bangur, a former president of the cement lobby. ACC and Gujarat Ambuja could not be reached for comment.

Crisil launches real estate ratings

Mumbai: Leading credit ratings agency Crisil on Thursday launched real estate ratings, a first by any organisation in India, which would help common buyers make informed purchases in the sector in need of greater transparency.
The Crisil Real Estate Star Ratings (CREST) will work on a project-specific basis and rate it on a on a scale of one to seven stars after comparing with other alternatives available in the same city, Crisil's Managing Director and Chief Executive Director, Roopa Kudva told reporters here.
The agency also made public its assessments of 21 projects spread across nine tier-I and II cities in India.
Kudva said: “A developer commissions Crisil and gives us access to
various details needed for assessment. We take into account our parameters and rate the project. Once the developer accepts the rating, we go public with the rating and project analysis which will be given to common buyers for free.”
Crisil's parameters include the past record of the developer, the infrastructure he is erecting, finishing, timely completion, cost overruns, after-sales service, legal issues like title and project innovations such as green buildings.
The rating will be given mid-way through the project and will be under surveillance till project completion, during which it can be revised, she said.
There is a growing need in the market for objective, independent and credible assessment of real estate projects which led Crisil to launch the new product.
Kudva said: “As disposal incomes rise, real estate is the biggest non-finance investment and there are inherent issues of the sector.” She said the agency will soon complete 50 project ratings.

ZAK Group to host country’s first IBS expo

Mumbai: ZAK Group in association with Saint-Gobain Gyproc India will host the nation’s first integrated building solutions expo on Innovative, Lightweight, Faster and Sustainable Building Construction Technologies between the 30th Sep to the 3rd Oct 2010, at the Bandra – Kurla Complex, Mumbai.
The expo will comprise of an elaborate exhibition with live demonstrations for visitors and mock up scale models intended to provide a unique look at the next generation of realty construction and design.
In addition, a 2 day seminar cum workshop will be hosted parallel to the expo with key speakers and panelists highlighting the issues being faced by the Indian realty market and infrastructure space, new technologies available and best global practices and solutions.
“With the revival of the realty market and the urgent need to find effective solutions to meet the growing demand of new and sustainable infrastructure in the country the expo will serve as an ideal platform for firms across a wide spectrum to showcase their innovative, relevant and sustainable construction products and solutions to key influencers and decision makers in the country” said Syed Ahad Ahmed, Director, ZAK Group.
As the presenting sponsor, Saint Gobain Gyproc is a market leader in the interior constructions space and has grown significantly across the country, displaying its commitment to offer the Indian market internationally renowned and sustainable building solutions.
ZAK Group has also partnered with other key players that include Dorma - a globally active supplier of door technology products and systems, Shera - one of the largest manufacturers of fibre cement boards, siding, roofing and concrete roof tiles in Thailand, McCoy Soudal - is India’s leading independent manufacturer of sealants and MGI India - one of the pioneers in light steel framing construction in India.

Tata Realty eyes Rs 30,000 cr projects

Chennai: Tata Realty and Infrastructure Ltd (TRIL), a wholly-owned subsidiary of Tata Sons, would execute projects worth Rs 30,000 crore in the country over the next five years, a top company official said here today.
In the real estate segment, the company, established in March 2007, has projects worth Rs 8,000 crore for setting up residential apartments and special economic zones in cities such as Chennai and Nagpur, TRIL Managing Director and CEO Sanjay G Ubale told reporters here.
The company was developing its Ramanujan IT SEZ in Chennai at an investment of Rs 3,500 crore. The total size of the SEZ would be 4.5 million square feet. Of the total 35 lakh square feet is allocated to commercial space. Besides, the company would have 100 units of serviced apartments and 100 units of residential apartments, he said.
TRIL was also mulling developing a 7 lakh-square feet commercial area in Amritsar at an investment of Rs 400 crore, said Ulabe, who was here to participate in a panel discussion on "Srinivasa Ramanujan Nurturing Genuis" being organised by the company.
"We are also developing a large project in Nagpur, including commercial and residential development on an area of 12 lakh square feet with an investment of Rs 600 crore...also looking for a similar project (12 lakh square feet) in Kochi at an investment of Rs 800 crore," he said.
The company was also involved in three SEZ projects for Tata Consultancy Services (TCS) -- in Pune at an investment of Rs 12,000 crore, in Gujarat at a cost of Rs 800 crore and a 22 lakh square feet SEZ in Kolkata, he said.
On infrastructure business, the company currently has an order book of Rs 1,500 crore, which Ubale said would reach USD two billion (approx Rs 9,400 crore) portfolio in four years.
"We are also building a four-lane National Highway project between Pune and Sholapur worth Rs 1,500 crore," he said, adding the company had recently signed a MoU with Actis on road projects.
Commenting on their logistics business, Ulabe said they would set up the country's first Logistics Park in Chennai at an investment of Rs 200 crore.
"We are planning to set up a Logistics Park in 14 locations. Initially, they would be coming up in Chennai, Delhi and Kolkata," he said.
Asked on the size of the Park, he said they would have an average size of 25 acres.
In Logistics business alone the company has planned...

Realty focused PE funds slump 29% in Q2

New Delhi: Money raised by realty focused private equity funds tanked to a six year low of USD 7.3 billion across the globe in April-June period of this year as institutional investors remained hesitant about committing capital.
According to a report by global research firm Preqin, "this was the lowest quarterly fundraising total since Q3 2004, when 30 funds raised an aggregate USD 6.1 billion," The report noted that private equity real estate funds are still struggling to raise capital in the current economic environment.
In the April-June quarter, 20 real estate funds made aggregate commitments of USD 7.3 billion, down 29.12 per cent from USD 10.3 billion in the year-ago period.
Besides, the aggregate set target of raising funds has also steadily fallen in recent quarters, as fund managers have started setting more modest targets.
"The number of funds currently in market has fallen in Q2 2010; this is due to a number of fund managers abandoning their fundraising efforts because of difficulty in garnering investor commitments," the report added.
It is clear that the fundraising environment remains extremely competitive and that the recovery, which many predicted, is yet to occur.
"There has been a severe decline in the performance of real estate funds, and consequently the performance of many institutions' real estate portfolios, since the onset of the economic downturn. This has led to a large number of investors re-evaluating their real estate strategy, with a number increasingly looking towards core investments," Preqin said. During 2009, 93 funds committed USD 40.50 billion, while in 2008, 228 funds raised an aggregate USD 134.30 billion.
North America focused funds raised USD 5.4 billion, accounting 74 per cent of capital during the quarter under review, four Asian and rest of the global funds stood at USD 1.2 billion while five European funds garnered USD 70 million, it said.
Nevertheless, there have been some encouraging signs for firms raising private equity real estate funds. Of all the funds that have closed during 2010, around 20 per cent have exceeded their fundraising targets. While in the corresponding period in 2009, the figure was six per cent.

DLF abuse of dominance case in CCI

New Delhi: Competition watchdog CCI has received complaint against realty major DLF for allegedly misusing its position as a market leader, Parliament was informed today.
"The Competition Commission of India has received information alleging abuse of dominance by four developers-- DLF New Gurgaon Homes Developers, DLF Home Developers Ltd and Others, DLF Limited and others, and DLF New Gurgaon," Corporate Affairs Minister Salman Khurshid said in a written reply to the Lok Sabha.
Khurshid was responding to a query whether government was aware of the various kinds of fraud and malpractices being adopted in the realty sector.
"Ministry of Corporate Affairs is concerned with taking action against the developers in the realty sector which are registered as companies ... for offences/violation of the provisions of the Companies Act 1956, as and when noticed," he said.
He added that based on the investigations carried out by the Serious Fraud Investigation Office (SFIO) into Manmandir Estate Development, prosecutions have been filed for violations of certain sections of the company law and the Indian Penal Code.

Haryana threatens to scrap Sabeer Bhatia’s Nano City

Panchkula: Four years after Hotmail co-founder Sabeer Bhatia announced his plans to set up a Nano City near Chandigarh, replicating the best of Silicon Valley, the project is in danger of being scrapped.
Last week, the Haryana government gave final notice to Naval Bhatia — he is Sabeer’s brother and the person appointed by him as project representative — that Nano City should acquire a minimum of 500 acres for the project within the next three months, failing which it would be cancelled.
Haryana government’s industrial body HSIIDC (Haryana State Industrial and Infrastructure Development Corporation) had formed a joint venture with Bhatia for the project.
The state warning follows a meeting it had with Naval Bhatia and Parsvnath Developers (which too is involved with the project) last month, seeking an explanation for the inordinate delay in the project. No land has been acquired yet, though the project was to be spread over 11,000 acres in district Panchkula near Chandigarh.
Sources told The Indian Express that the size of the project has already been curtailed by the government to 2,000 acres.
While refusing to confirm if the land area was down to one-fifth of the original plan, HSIIDC Managing Director Rajiv Arora said: “Yes, we did call upon Nano City representatives to explain the delay. The government cannot keep on waiting forever for a project. It has to show some progress. If they can’t do it, then they should own up and we can look for a different developer, or perhaps the state government can initiate development on its own.”
Naval Bhatia, who is based in Delhi, blamed the delay on land acquisition problems. He said they were battling “small undivided landholdings in the area, huge pockets of panchayat land, affecting continuity, and higher asking price by farmers”.
But as per minutes of the meeting accessed by The Indian Express, the government found these reasons “untenable”. A senior official said: “This is not the first time notices to expedite action have been issued to Sabeer Bhatia. Starting February 15, 2008, we have written to him on eight occasions asking him to show some progress.”
In fact, after the last meeting, HSIIDC proposed that the project be scrapped, also pointing out the liquidity crunch being faced by Parsvnath. However, both Naval Bhatia and Parsvnath, promising their commitment to the project, managed to get one more deadline.

Circle rates hiked in Ghaziabad

Ghaziabad: Now, property owners in Ghaziabad will have to shell out more money to get their houses registered. In a late night meeting on Saturday, the Ghaziabad Development Authority revised the circle rates, increasing it by 10-20 per cent.
In Kaushambi, the present rate of Rs 40,000 per sq m has been revised to 45,000 per sq m. In Indirapuram, Ramprastha and Chandra Nagar the new rate is Rs 40,000 sq m; up from the earlier 35,000 per sq m. In Vasundhara, the present rate of Rs 26-28,000 per sq m has been hiked to Rs 28-30,000 per sq m. In Raj Nagar, the present rate of Rs 18-25,000 per sq m has been revised to Rs 24-30,000 per sq m. In Lohia Nagar rates went up from Rs 20,000 to Rs 24,000. In Vijay Nagar, the existing rate of Rs 16-25,000 per sq m will be revised to Rs 16-26,000 per sq m. In Kavi Nagar, 23-30,000 will go up to 24-32,000. In Nehru Nagar, the rate of Rs 22-28,000 per sq m will go up to Rs 24-28,000 per sq m. In Gobindpuram, 18,000 will go up to 20,000. Brij Vihar will be Rs 24,000 from Rs 20,000.

HDIL PAT margins up by 118.02%

New Delhi: Housing Development and Infrastructure Limited (HDIL), a leading real estate developer has announced its results for Q1 ended 30th June 2010. The Turnover stands at Rs. 450.92 crores and PAT available for appropriation is Rs. 234.31 crores.
Commenting on the results, Sarang Wadhawan, Managing Director of HDIL said “We are very pleased to report strong financial results including a significant percentage rise in revenues by 52.26% compared to the same quarter of the previous financial year.”
Wadhawan further added, “The Indian economy and realty market are projected to grow favorably, thereby providing us with the opportunity to further expand and consolidate our presence in the real estate market.”
Business Highlights.
* HDIL plans to launch four to six million square feet of residential projects in the current financial year.
* Phase 1 of Mumbai International Airport Slum Rehabilitation project, a Vital Public Project, is on schedule.
* HDIL launches ‘The Meadows’ at Goregaon, 75% of the project sold off in the first week.
HDIL Entertainment (100% subsidiary of HDIL) currently operates 13 screens and plans to add 10 screens within a year in Mumbai. The company will also expand on a PAN India basis with flagship multiplex projects in cities like Kolkata.

HCC to file for Rs 2,000-cr Lavasa IPO

Mumbai: Hindustan Construction Company (HCC), which posted a 55 per cent jump in its PAT in the quarter ended June 30, today said it soon plans to file its DRHP with market regulator, Sebi, for raising upto Rs 2,000-crore through an initial public offering (IPO) to part-finance its ambitious Lavasa township project.
"HCC has obtained Board approval. We are going to file our Draft Red Herring Prospects (DRHP) as early as possible," HCC Chairman and Managing Director, Ajit Gulabchand, told reporters here today.
Lavasa Corporation is a subsidiary of HCC.
HCC Board has given its approval for an IPO of up to Rs 2,000-crore of fresh equity shares, he said, adding, Lavasa will sell a 10 per cent stake in its initial offering.
Earlier, the company posted a 55 per cent growth in its Profit After Tax (PAT) at Rs 28.31-crore in the quarter ended June 30, as against Rs 18.19-crore in the year-ago period.
Besides, the company also declared a 1:1 bonus shares to the share holders.
Its' turnover rose five per cent at Rs 1,008.22-crore in Q1 FY 11 as against Rs 964.09-crore in the corresponding quarter of the last fiscal.
The company's order-book presently stands at Rs 19,346-crore.

Politicos sell flats obtained under quota

Mumbai: Instances of politicians cutting across the spectrum using an apparent loophole in rules to sell flats under the chief minister's discretionary quota, to make a killing, have surfaced in Maharashtra.
Existing norms permit sale of flats allotted under the Chief Minister's discretionary quota after five years.
The beneficiaries, most of whom sold the flats, include sons of BJP spokesperson Prakash Javadekar, Shiv Sena MLC Ramdas Kadam, Congress MP Sanjay Nirupam's wife Geeta, state ministers Vijay Wadettiwar and Padmakar Walvi, Subodh, son of senior Sena leader Subhash Desai, MNS MLA Shishir Shinde and Shiv Sena MP Bhawna Gawli.
Chief Minister Ashok Chavan's close aide from Nanded, Omprakash Pokarna and wife were allotted a flat in 1995, which they sold in 2004.
Union Minister of State in the PMO, Prithviraj Chavan, a beneficiary of the quota, however, did not sell his flat, according to information obtained by social activist Anil Galgali through Right to Information law.
Following are some of the prominent names of flat recipients, dates of allotment and sale of the flats: Ramdas Kadam 3/8/1993 and 7/2/2005, Geeta Sanjay Nirupam 9/9/1998 and 17/12/2004, Vijay Wadettiwar 1/8/2000 and 13/10/2005, Subhash Desai 2/1/1996 and 21/2/2003, Padmakar Walvi 15/01/2003 and 16/06/2009, Shishir Shinde 29/03/1996 and 29/052006, Bhawana Gawali 4/12/2001 and 21/012009. Former ministers Rajendra Shingane and Sidhram Mhetre also sold their flats. NCP chief Sharad Pawar's aide G N Dhuwali, who was allotted a flat in 1995, sold it in 2000.
Ashutosh Prakash Jawadekar, son of BJP leader Prakash Jawadekar, was allotted a flat in Powai on 19/01/2001. He sold it on 4/06/2003, before the mandatory five-year lock in period. Another flat was allotted to Apurva Jawadekar, younger son of Prakash Jawadekar, on 22/08/2008.
Prominent film personalities who sold the flats under CM's quota include actress Varsha Usgaonkar, Nishigandha Wad, playback singer Anuradha Paudwal, actors Milind Gunaji, Ashok Saraf, Bharat Jadhav and director Kedar Shinde.
Reacting to reports that politicians misused the scheme, Chief Minister Ashok Chavan said, "There are complaints of people making profit (by using existing norms to sell flats after five years). We will see what changes can be made."
Minister of State for Housing Sachin Ahir said government will try to make the allotment process more transparent by bringing it online.
In 1976, the state government initiated the Chief Minister's discretionary quota which allowed citizens from the economically weaker sections to apply for flats surrendered by developers in residential complexes constructed on government land. The idea was to...

RBI worried over rising housing prices

Mumbai: The rapid rise in housing prices could spike general price levels and pose a danger to financial stability, the Reserve Bank said today, ahead of its quarterly review tomorrow.
"A sustained and rapid rise in housing prices over successive quarters remains an area of concern from the standpoint of their possible spillover to demand pressures and the general price level as well as financial stability," RBI said in its macroeconomic review.
However, the prices in the housing sector remained flat during the last quarter of 2009-10, the central bank said, adding that housing prices displayed subdued momentum in several cities, mostly due to concerns of high valuations and the volatile stock market during the period.
Among major cities, prices of real estate (housing) increased by 27 per cent in the fourth quarter of 2009-10, while the rate of growth in Mumbai was a mere 1 per cent.
As far as credit off-take in the housing sector was concerned, advances in the sector registered a growth of 9.6 per cent on a year-on-year basis.
The outstanding housing loan at the end of May 21, 2010, stood at Rs 3,05,325 crore, 52 per cent of total retail credit.

Google acquires Slide for $182 mln

HOUSTON: Internet giant Google has acquired Slide, maker of applications for social networking websites that allow users to create and share virtual activities and goods.

According to reports, Google has bought the social games developer in a USD 182 million deal.
Google announced the acquisition on Friday, but did not release financial details. The company was also mum on product plans.
San Francisco-based Slide Inc. has developed Facebook applications such as SuperPoke and FunSpace.
This move will help Google in its plans to create an online social platform to compete with Facebook.
"This is an extremely exciting day for me and my team, but this also marks an exciting development for the social web," Slide founder Max Levchin said.
"This is a great opportunity for both companies to meet and change how people treat the Internet...By merging Slide with Google, we will invest more to Google services and extend social networks," he said.
David Glazer, engineering director at Google, pointed out on the Company's blog that Google has already built some social elements in its products like Gmail, Docs, Blogger, Picasa and YouTube.
"As the Slide team joins Google, we'll be investing even more to make Google services socially aware and expand these capabilities for our users across the Web," Glazer said.

Rupee falls by 13 paise against dollar

MUMBAI: The rupee on Tuesday lost 13 paise to trade at 46.25 against the US currency due to increased dollar demand from importers amid weak equity markets.

Dealers said dollar strengthened against major world currencies in global markets, which also weighed on the rupee.

Increased demand for dollar from importers and weak equity markets dampened the rupee sentiment.

The Bombay Stock Exchange benchmark index, Sensex, fell 56.60 points, or 0.31%, to 18,230.90 points in opening trade.

The rupee had ended higher by 3 paise at 46.12/13 a dollar on Monday.