Have you ever dreamt of trading on the New York Stock Exchange? Or how about investing in a mutual fund in Australia?
Investing in the global markets is now a reality, ever since the Reserve Bank of India announced last week that resident Indians can now remit up to $25,000 per calender year for any purpose without prior approval.
So how will this help you? Simply put, investing in global markets or international investment tools like mutual funds and fixed deposits will help diversify risks.
"Earlier resident Indians were restricting their asset allocation to largely India-based products. Now risk can be diversified by geography or currency," says Amit Sah, marketing director, retail bank - global consumer group, Citibank India.
First off the block are three banks -- Citibank, ICICI and Bank of Baroda -- which have launched their vanilla deposit products, while HSBC will be announcing its products shortly.
Inevitably, the first schemes are probably aimed at testing the water. And be warned that they are high-risk currency plays.
Interest rates in India are higher than in most developed countries so the only way to make money is if the rupee depreciates against the currency you've invested in.
Citibank's Foreign Currency Deposit product will be held at its Singapore branch and the bank is currently offering deposits in four currencies --the US dollar, Euro, UK pound and the Australian dollar.
The minimum investment is $1,000 (or equivalent) with incremental deposits in units of $1,000 (or equivalent) up to the maximum of $ 25,000.
The scheme is available to any resident Indian. However, corporates, partnership firms, trusts and those under the Hindu Undivided Family cannot invest through this route.
The first step is to open an account with Citibank and order an outward remittance of the amount to be invested.
The tenure offered ranges from one month to five years but Citibank is currently offering a special interest rate for two month deposits made before March 1, 2004 for account holders.
Under this, the bank is offering 6.25 per cent on the Australian dollar, 4.75 per cent on pounds sterling, 3 per cent on Euro deposits and 2 per cent on the US dollar.
If you chose a shorter or a longer deposit period the special offer rates do not apply. The interest rate then, for say a one-month US dollar deposit currently is 0.5 per cent and 2.25 per cent for three years.
ICICI Bank's international deposits are also through its Singapore branch. Besides the US dollar, pound sterling, euro and Australian dollar, ICICI Bank is also offering deposits in Swiss francs.
Says Bhargav Dasgupta, senior general manager & head - international banking group, ICICI Bank, "A customer can hold his money in a currency based on his view on the movement of that currency against the Indian rupee."
While ICICI Bank also offers a tenure ranging from one month to five years, the minimum investible amount is the equivalent of $2,500.
The bank is offering a special rate for three-month deposits which is valid till February 29, and is five basis points higher than the rates offered by Citibank.
For instance, the interest rate on a three-month Australian dollar deposit is 6.3 per cent. However, for a shorter tenure of one month the interest rate will be 5.27 per cent on the Australian dollar.
You don't need to open an ICICI Bank account to send money abroad. All you have to do is instruct your bank to remit the amount and it will be credited to ICICI's Singapore branch by wire transfer.
Bank of Baroda's foreign currency deposit product comes with a minimum investible amount of $10,000.
The special introductory offer is 100 basis points over three months' LIBOR (the London Interbank Offered Rate Index is an average of the interest rates that major international banks charge each other to borrow US dollars in the London money market) for a six months deposit tenure. This offer is valid till March 31.
Since the deposit has to be made in a calender year, after maturity you have the option of either re-investing the money in a deposit or bringing the money back.
In the latter case, your return in Indian rupees will be determined on the value of the foreign currency at the time of maturity. Both Citibank and BOB products have no cover against foreign exchange risks.
However, ICICI is offering a safety net. The bank is offering a hedging facility so that customers can open a forward contract at the time of opening the account. The forward contract allows investors to fix the conversion rate at the time of maturity.
For instance, if the euro-rupee exchange rate is Rs 58.072 today, a depositor could base his view on the belief that the 11 per cent appreciation seen in this currency since November last year will continue.
He could book a forward contract pegged at Rs 59 for his deposit maturing two months hence. If at maturity the conversion rate is Rs 58.5, he would gain as the bank will have to pay him the conversion rate booked at 59.
However, if the conversion rate at maturity shoots up to 60, then he loses since the bank will convert the deposit back into rupees at 59.
The deposits are the first step and eventually banks will be offering capital guaranteed products. Meanwhile, investors are open to the risks that global markets present.
If for instance, you have made a deposit in US dollars and the rupee appreciates in value, you will lose if you convert the money back to rupees at maturity. You will, however, gain if the rupee depreciates.
So if you invest $1,000 (Rs 45,270) for two months in the Citibank account, then the interest rate works out to 0.33 per cent of the annualised two per cent or $3.33. Two months later you will get $1,003.33 or Rs 45,420.7491.
Assuming the rupee depreciates by 50 paise, your return will translate to Rs 45,922.4141. But if the rupee appreciates by 50 paise, your return will be Rs 44,919.0841.
"Your chances depend entirely on the volatility of the markets and the view you take of it," says Dasgupta.
On the whole, it is better to take a shorter term view of the currency you are choosing to invest in, since in the long run it is difficult to predict currency fluctuation.
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Friday, February 1, 2008
IPCL CLOSED VADODARA LAB PLANT: SHORT SIGHTED DECISION
Just a few weeks before the merger of Indian Petrochemicals Corporation (IPCL) with Reliance Industries (RIL), the IPCL management has closed its 43,500 tonnes per annum linear alkyl benzene (LAB) plant at the Vadodara complex, Gujarat, India. The plant is reported to have been closed mainly because of its so called small size relative to world scale LAB plants operating elsewhere.
This is the fourth IPCL plant which has been closed in recent times. All of these were part of the Vadodara complex, which was set up in the early 70s, when IPCL was first constituted. The plants which have been shut include a dry spun acrylic fibre plant of 12,000 tonnes per annum capacity, the wet spun acrylic fibre plant with 12,000 tonnes per annum capacity and the acrylates plant with 10,000 tonnes per annum capacity. Much earlier, the company had shut down the petroleum resins plant (5,000 tonnes per annum) and an old poly propylene plant (30,000 tonnes per annum).
The Vadodara complex of IPCL is built around a 150,000 tonnes per annum ethylene cracker, which receives feed stock from RIL’s Jamnagar refinery.
The plants currently running include for polypropylene (25,000 tonnes per annum), polyvinyl chloride (55,000 tonnes per annum), polybutadiene rubber (20,000 tonnes per annum), ethylene oxide/ethylene glycol (20,000 tonnes per annum) and acrylonitrile (36,000 tonnes per annum).
Anyone who had worked in IPCL particularly in the LAB plant or who knows about the glorious past performance of IPCL would have been deeply disappointed to know about the decision to close the LAB plant.
Such decision would not have been taken, if IPCL would have continued to remain as Government of India undertaking. While the money making is legitimate objective of setting up and operating projects, closing the projects without justifiable reasons would amount to wastage of the national resources setup at the cost of scarce capital.
LAB project of IPCL was not losing money though it may not be earning the type of money that the Reliance Industries would target for itself.
We often come across such situation in developed countries where plants are closed for short or long time due to severe market competitive conditions which would force the units to be operated at less profitable conditions . But there is no reason for the projects in developing countries to adopt such practice. One wonders as to whether the present management of IPCL has cared to think carefully about alternative ways of improving the economics of the LAB project. Certainly, there would be ways to expand the capacity by installing balancing equipment that can contribute to better economics.
One may not be surprised if India would become net importer of LAB in the near future, due to this untimely decision of the present management of IPCL. By importing LAB, the country would lose foreign exchange about which perhaps the IPCL management is not concerned.
There are economic and social objectives of setting up and managing industrial projects.
Government of India should certainly demand an explanation from IPCL management as to why it thought fit to close down the unit . If IPCL would refrain from giving suitable explanation, the government should not hesitate to examine the methodology of forcing the IPCL management to restart the plant or selling the plant to others more interested in the project.
We talk about social responsibility of business and terms such as .responsible care. are becoming popular.
One wonders as to how the decision of Reliance Industries to close down the LAB plant of IPCL would fall under the concept of responsible corporate management .
This is the fourth IPCL plant which has been closed in recent times. All of these were part of the Vadodara complex, which was set up in the early 70s, when IPCL was first constituted. The plants which have been shut include a dry spun acrylic fibre plant of 12,000 tonnes per annum capacity, the wet spun acrylic fibre plant with 12,000 tonnes per annum capacity and the acrylates plant with 10,000 tonnes per annum capacity. Much earlier, the company had shut down the petroleum resins plant (5,000 tonnes per annum) and an old poly propylene plant (30,000 tonnes per annum).
The Vadodara complex of IPCL is built around a 150,000 tonnes per annum ethylene cracker, which receives feed stock from RIL’s Jamnagar refinery.
The plants currently running include for polypropylene (25,000 tonnes per annum), polyvinyl chloride (55,000 tonnes per annum), polybutadiene rubber (20,000 tonnes per annum), ethylene oxide/ethylene glycol (20,000 tonnes per annum) and acrylonitrile (36,000 tonnes per annum).
Anyone who had worked in IPCL particularly in the LAB plant or who knows about the glorious past performance of IPCL would have been deeply disappointed to know about the decision to close the LAB plant.
Such decision would not have been taken, if IPCL would have continued to remain as Government of India undertaking. While the money making is legitimate objective of setting up and operating projects, closing the projects without justifiable reasons would amount to wastage of the national resources setup at the cost of scarce capital.
LAB project of IPCL was not losing money though it may not be earning the type of money that the Reliance Industries would target for itself.
We often come across such situation in developed countries where plants are closed for short or long time due to severe market competitive conditions which would force the units to be operated at less profitable conditions . But there is no reason for the projects in developing countries to adopt such practice. One wonders as to whether the present management of IPCL has cared to think carefully about alternative ways of improving the economics of the LAB project. Certainly, there would be ways to expand the capacity by installing balancing equipment that can contribute to better economics.
One may not be surprised if India would become net importer of LAB in the near future, due to this untimely decision of the present management of IPCL. By importing LAB, the country would lose foreign exchange about which perhaps the IPCL management is not concerned.
There are economic and social objectives of setting up and managing industrial projects.
Government of India should certainly demand an explanation from IPCL management as to why it thought fit to close down the unit . If IPCL would refrain from giving suitable explanation, the government should not hesitate to examine the methodology of forcing the IPCL management to restart the plant or selling the plant to others more interested in the project.
We talk about social responsibility of business and terms such as .responsible care. are becoming popular.
One wonders as to how the decision of Reliance Industries to close down the LAB plant of IPCL would fall under the concept of responsible corporate management .
IMPORTANT PROVISIONS FROM FEMA
RELEVANT PROVISIONS OF EXCHANGE CONTROL MANUAL FOR THE PURPOSE OF FEMA
Some of the relevant provisions of Exchange Control Manual under FEMA, which are still existing are:
1. REFUND OF INWARD REMITTANCES
If a request is made from the overseas for cancellation of Inward Remittances, Authorised Dealers may do so without referring to Reserve Bank, if refunds is not to compensate for a loss.
2. APPLICATION FOR REMITTANCES IN FOREIGN CURRENCY
A person firm or bank may apply to an Authorised Dealer for remittances in any foreign currency to a beneficiary abroad.
Application should be made in FORM -A1, if the purpose of remittance is import of goods into India.
For any other purpose in Form -A2
The Authorised Dealer may sell the foreign Exchange applied for if he think fit provided it is within his powers, and the purpose of remittance is an approved one.
3. MODE OF PAYMENT OF RUPEES AGAINST SALE OF FOREIGN EXCHANGE
In case of sale of foreign Exchange or remittance foreign Exchange amounting to Rs. 20,000 or more the payment received by the Authorised Dealer, from the applicant should be through a crossed cheque drawn on the applicant bank account or on the bank account of the Firm/ Company. Payment can also be accepted in the form of a Banker's cheque / Pay Order / Demand Draft.
Receipt of Payment in cash in case of such sale of foreign Exchange or remittance in foreign Exchange is strictly prohibited.
EXCEPTION:
However where purpose of sale of foreign exchange is for travel abroad for business etc, cash may be received by Authorised Dealer from Applicant upto Rs. 50,000/-
Where the rupee equivalent for drawing foreign exchange exceeds Rs. 50,000 either for any single installment or for more than one installment recokned--- together for a single journey / visit it should be paid by the traveler by means of a gross cheque / demand draft/ pay order as stated above.
4. TRAVELLERS CHEQUE NEGOTIABLE ONLY IN INDIA
Rupee Travellers cheque cannot be encashed outside India, if they are issued solely for use within India. In such a case they cannot be taken or sent out of India.
Reimbursements should be strictly refused where such travellers cheques have been encashed outside India.
5. REIMBURSEMENT OUTSIDE INDIA
Rupee Travellers cheque, which are issued by authorised dealers, encashable outside India, may be reimbursed by Authorised Dealers or by their selling Agent.
6. IMPORT OF FOREIGN CURRENCY NOTES
When the stock of foreign currency notes with Authorised Dealer is not adequate for meeting their normal business requirement they could import foreign currency notes from their overseas branches or correspondents.
7. RECONVERSION OF INDIAN CURRENCY
Foreign currency may be sold against Indian Rupees held by persons who are not resident of India but are passing through or leaving India after a visit, at the time of their departure from India.
For this purpose, a Bank or Encashment certificate issued by Authorised Dealer, exchange bureau or Authorised Money changer in form BCI, ECF OR ECR, is required to show that the rupee had been acquired by sale of foreign Exchange to an Authorised Dealer or money changer in India.
Such a certificate is valid for such reconversion i.e. a period of three months is not over from the date of sale of the foreign currency by the traveller.
8. RATES OF EXCHANGE
Authorised dealers and their Exchange bureau may buy from and sell to public foreign currency notes and coins at rates of exchange determined by market conditions. Dealings in foreign currency notes and coins between authorised dealers and between authorised dealers and money changers would also be at rates determined by market conditions
Some of the relevant provisions of Exchange Control Manual under FEMA, which are still existing are:
1. REFUND OF INWARD REMITTANCES
If a request is made from the overseas for cancellation of Inward Remittances, Authorised Dealers may do so without referring to Reserve Bank, if refunds is not to compensate for a loss.
2. APPLICATION FOR REMITTANCES IN FOREIGN CURRENCY
A person firm or bank may apply to an Authorised Dealer for remittances in any foreign currency to a beneficiary abroad.
Application should be made in FORM -A1, if the purpose of remittance is import of goods into India.
For any other purpose in Form -A2
The Authorised Dealer may sell the foreign Exchange applied for if he think fit provided it is within his powers, and the purpose of remittance is an approved one.
3. MODE OF PAYMENT OF RUPEES AGAINST SALE OF FOREIGN EXCHANGE
In case of sale of foreign Exchange or remittance foreign Exchange amounting to Rs. 20,000 or more the payment received by the Authorised Dealer, from the applicant should be through a crossed cheque drawn on the applicant bank account or on the bank account of the Firm/ Company. Payment can also be accepted in the form of a Banker's cheque / Pay Order / Demand Draft.
Receipt of Payment in cash in case of such sale of foreign Exchange or remittance in foreign Exchange is strictly prohibited.
EXCEPTION:
However where purpose of sale of foreign exchange is for travel abroad for business etc, cash may be received by Authorised Dealer from Applicant upto Rs. 50,000/-
Where the rupee equivalent for drawing foreign exchange exceeds Rs. 50,000 either for any single installment or for more than one installment recokned--- together for a single journey / visit it should be paid by the traveler by means of a gross cheque / demand draft/ pay order as stated above.
4. TRAVELLERS CHEQUE NEGOTIABLE ONLY IN INDIA
Rupee Travellers cheque cannot be encashed outside India, if they are issued solely for use within India. In such a case they cannot be taken or sent out of India.
Reimbursements should be strictly refused where such travellers cheques have been encashed outside India.
5. REIMBURSEMENT OUTSIDE INDIA
Rupee Travellers cheque, which are issued by authorised dealers, encashable outside India, may be reimbursed by Authorised Dealers or by their selling Agent.
6. IMPORT OF FOREIGN CURRENCY NOTES
When the stock of foreign currency notes with Authorised Dealer is not adequate for meeting their normal business requirement they could import foreign currency notes from their overseas branches or correspondents.
7. RECONVERSION OF INDIAN CURRENCY
Foreign currency may be sold against Indian Rupees held by persons who are not resident of India but are passing through or leaving India after a visit, at the time of their departure from India.
For this purpose, a Bank or Encashment certificate issued by Authorised Dealer, exchange bureau or Authorised Money changer in form BCI, ECF OR ECR, is required to show that the rupee had been acquired by sale of foreign Exchange to an Authorised Dealer or money changer in India.
Such a certificate is valid for such reconversion i.e. a period of three months is not over from the date of sale of the foreign currency by the traveller.
8. RATES OF EXCHANGE
Authorised dealers and their Exchange bureau may buy from and sell to public foreign currency notes and coins at rates of exchange determined by market conditions. Dealings in foreign currency notes and coins between authorised dealers and between authorised dealers and money changers would also be at rates determined by market conditions
Welcome to Baroda Central
Vadodara (Gujarati: વડોદરા,Marathi:बडोदा) pronunciation (help·info)), also known as 'Baroda', is the third most-populated town in the Indian state of Gujarat after Ahmedabad and Surat. It is one of four towns in the state with a population of over 1 million[7], the other being Rajkot and the two cities listed above. It is also known as the Sayaji Nagari or Sanskari Nagari (Cultural Capital of Gujarat). Vadodara or Baroda, formerly the capital city of Gaekwar State, is situated on the banks of Vishwamitri, a river whose name derived from the great saint Rishi Vishvamitra. It is located southeast of Ahmedabad. It is the administrative headquarters of Vadodara District.
Vadodara is home to almost 1.6 million people [8] (as of 2005), the beautiful Lakshmi Vilas Palace and the Maharaja Sayajirao University of Baroda (M.S.U.) which is famous for various departments, including the fine arts, performing arts, technology, management and medicine streams. It has a high literacy rate by Indian standards of 78% (2001). Major industries include petrochemicals, engineering, pharmaceuticals, and plastics
Vadodara is home to almost 1.6 million people [8] (as of 2005), the beautiful Lakshmi Vilas Palace and the Maharaja Sayajirao University of Baroda (M.S.U.) which is famous for various departments, including the fine arts, performing arts, technology, management and medicine streams. It has a high literacy rate by Indian standards of 78% (2001). Major industries include petrochemicals, engineering, pharmaceuticals, and plastics
Local business results for foreign exchange near Vadodara, Vadodara, Gujarat
Lkp Forex Limited - Write a review
121,Dwarkesh Complex,R C Datt Road, Alkapuri, Vadodara, 390005 - 0265 2327097
Indian Exporters Guide - Write a review
52/B,Kunj Society, Alkapuri, Vadodara, 390007 - 0265 2322000
Website
Thomas Cook (India) Ltd - Write a review
Shriram Chamber, Opp Circuit House, Alkapuri, Vadodara, Gujarat 390007 - 0265 2350469
Website
Tata Finance Amex Limited - Write a review
122,Dwarkesh,R C Datt Road, Alkapuri, Vadodara, 390005 - 0265 2311695
Weiz Mann Forex Ltd - Write a review
Shop 102,Dwarkesh Complex,R C Datt Road,Alkapuri,Opposite Kotak Mahindra Bank, Alkapuri, Vadodara, 390005 - 0265 2352514
Website
National Money Changer - Write a review
9,Ushakiran Building,Raopura,Opposite Duliram Pendawala, Raopura, Vadodara, 390001 - 0265 2411254
Baroda Money Changer - Write a review
1st Floor Vaijana Purkar Building Near Shiv Pura Police Chowki, Raopura, Vadodara, 390001 - 0265 2424786
Kuehne Nagel Pvt Ltd - Write a review
301; Opal II,B P C Road, Akota, Vadodara, 390020 - 0265 2353145
Website
Centurion Bank Of Punjab - Write a review
Ground Floor,Productivity House,Baroda Productivity Council Road,Alkapuri,Gujrat, Alkapuri, Vadodara, 390007 - 0265 3080128
Website
Rath Travel Shoppe - Write a review
B/2,Yogiashish,Old Padra Road,Opposite Welcome Shoper, Old Padra Road, Vadodara, 390007 - 0265 2314082
121,Dwarkesh Complex,R C Datt Road, Alkapuri, Vadodara, 390005 - 0265 2327097
Indian Exporters Guide - Write a review
52/B,Kunj Society, Alkapuri, Vadodara, 390007 - 0265 2322000
Website
Thomas Cook (India) Ltd - Write a review
Shriram Chamber, Opp Circuit House, Alkapuri, Vadodara, Gujarat 390007 - 0265 2350469
Website
Tata Finance Amex Limited - Write a review
122,Dwarkesh,R C Datt Road, Alkapuri, Vadodara, 390005 - 0265 2311695
Weiz Mann Forex Ltd - Write a review
Shop 102,Dwarkesh Complex,R C Datt Road,Alkapuri,Opposite Kotak Mahindra Bank, Alkapuri, Vadodara, 390005 - 0265 2352514
Website
National Money Changer - Write a review
9,Ushakiran Building,Raopura,Opposite Duliram Pendawala, Raopura, Vadodara, 390001 - 0265 2411254
Baroda Money Changer - Write a review
1st Floor Vaijana Purkar Building Near Shiv Pura Police Chowki, Raopura, Vadodara, 390001 - 0265 2424786
Kuehne Nagel Pvt Ltd - Write a review
301; Opal II,B P C Road, Akota, Vadodara, 390020 - 0265 2353145
Website
Centurion Bank Of Punjab - Write a review
Ground Floor,Productivity House,Baroda Productivity Council Road,Alkapuri,Gujrat, Alkapuri, Vadodara, 390007 - 0265 3080128
Website
Rath Travel Shoppe - Write a review
B/2,Yogiashish,Old Padra Road,Opposite Welcome Shoper, Old Padra Road, Vadodara, 390007 - 0265 2314082
With the aim of making hefty gains from the current bull run in stock market, the Vadodara Stock Exchange Ltd (VSE) has undertaken an exercise to sell 50% of its shareholding in country’s oldest exchange, the Bombay Stock Exchange Ltd (BSE).
VSE is providing a trading platform for the execution of deals on the Bombay Online Trading (Bolt) system to its member brokers through its wholly-owned subsidiary, Vadodara Stock Services Limited (VSSL). Being a member, VSSL has received the 10,000 shares of BSE at token price of Rs. 1 each.
In a recently convened informal meeting of all the member brokers of VSE, an unanimous decision was taken to offload 50% of BSE held by them. “Vishnu Patel, the elected director of VSE, Pankaj Bhargav, director and Jagdish Thakkar, former president, also attended the meeting,” said a broker who was present at the meeting. Sources also said that BSE had fixed the floor prices at Rs 5,200 crore. Taking the floor prices into consideration, VSE is expected to earn Rs 2.60 crore by selling 50% of the total number of BSE shares held by it. “However, the prices of shares are likely to surge to Rs 7,000 each, as compared to the floor price of Rs 5,200,” said sources, hoping that, “The VSE may get even higher amount by selling its holdings.”
VSE is providing a trading platform for the execution of deals on the Bombay Online Trading (Bolt) system to its member brokers through its wholly-owned subsidiary, Vadodara Stock Services Limited (VSSL). Being a member, VSSL has received the 10,000 shares of BSE at token price of Rs. 1 each.
In a recently convened informal meeting of all the member brokers of VSE, an unanimous decision was taken to offload 50% of BSE held by them. “Vishnu Patel, the elected director of VSE, Pankaj Bhargav, director and Jagdish Thakkar, former president, also attended the meeting,” said a broker who was present at the meeting. Sources also said that BSE had fixed the floor prices at Rs 5,200 crore. Taking the floor prices into consideration, VSE is expected to earn Rs 2.60 crore by selling 50% of the total number of BSE shares held by it. “However, the prices of shares are likely to surge to Rs 7,000 each, as compared to the floor price of Rs 5,200,” said sources, hoping that, “The VSE may get even higher amount by selling its holdings.”
Saturday, January 12, 2008
HISTORY
Modern Baroda is a great and fitting memorial to its late ruler, Sayaji Rao Gaekwad III (1875-1939 AD). It was the dream of this able administrator to make Baroda an educational, industrial and commercial centre and he ensured that his dream would come true.
Baroda is situated on the banks of the river Vishwamitri (whose name is derived from the great saint Rishi Vishwamitra). The city was once called Chandravati, after its ruler Raja Chandan, then Viravati, the abode of the brave, and then Vadpatra because of the abundance of banyan trees on the banks of the Vishwamitri. From Vadpatra it derived its present name Baroda or Vadodara.
Baroda has a rich historical background. The ardent historian can trace Baroda’s history over 2000 years and more. However, the recent threads can be picked up when the Moghul rule over the city came to an end in 1732, when Pilaji brought the Maratha activities in Southern Gujarat to a head and captured it. Except for a short break, Baroda continued to be in the hands of the Gaekwads from 1734 to 1949.
The greatest period in the Maratha rule of Baroda started with the accession of Maharaja Sayajirao III in 1875. It was an era of great progress and constructive achievements in all fields.
Maharaja Sayajirao was one of the foremost administrators and reformers of his times. He initiated a series of bold socio-economic reforms. He attached great importance to economic development and started a number of model industries to encourage initiative, and then handed back the working industries to private enterprise. He started model textile and tile factories. It is as a result of his policy of industrial development that Baroda is today one of the most important centres for textile, chemical and oil industries today. He introduced a number of social reforms. In no department of administration has the far-sighted policy of this wise ruler been more conspicuous than in education, and in none have the results been more real and tangible. He boldly introduced compulsory primary education and a library movement (the first of its kind in India) to augment his adult education scheme
Baroda is situated on the banks of the river Vishwamitri (whose name is derived from the great saint Rishi Vishwamitra). The city was once called Chandravati, after its ruler Raja Chandan, then Viravati, the abode of the brave, and then Vadpatra because of the abundance of banyan trees on the banks of the Vishwamitri. From Vadpatra it derived its present name Baroda or Vadodara.
Baroda has a rich historical background. The ardent historian can trace Baroda’s history over 2000 years and more. However, the recent threads can be picked up when the Moghul rule over the city came to an end in 1732, when Pilaji brought the Maratha activities in Southern Gujarat to a head and captured it. Except for a short break, Baroda continued to be in the hands of the Gaekwads from 1734 to 1949.
The greatest period in the Maratha rule of Baroda started with the accession of Maharaja Sayajirao III in 1875. It was an era of great progress and constructive achievements in all fields.
Maharaja Sayajirao was one of the foremost administrators and reformers of his times. He initiated a series of bold socio-economic reforms. He attached great importance to economic development and started a number of model industries to encourage initiative, and then handed back the working industries to private enterprise. He started model textile and tile factories. It is as a result of his policy of industrial development that Baroda is today one of the most important centres for textile, chemical and oil industries today. He introduced a number of social reforms. In no department of administration has the far-sighted policy of this wise ruler been more conspicuous than in education, and in none have the results been more real and tangible. He boldly introduced compulsory primary education and a library movement (the first of its kind in India) to augment his adult education scheme
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