Mumbai, Feb 23: Zen Mobile aims to double its market share and revenue by the end of this year on the back of new product launches and customer base expansion.
“We aim to more-than-double our market share and revenue from 3 per cent to 7 per cent and from Rs 45 crore to Rs 100 crore, respectively, by December 2011,” the company Managing Director, Mr Deepesh Gupta, told PTI here.
The Delhi-based firm, a part of the 15-year-old Teleecare Group, has so far sold 4 million handsets and plans to sell another 5 million by March 2012.
“We plan to sell 5 million more handsets by March 2012,” he said.
The company has already launched 18 handsets and more models are on the anvil. “We will continue to launch at least two new models every month,” Mr Gupta said.
Zen Mobile recently launched its Zen X414 model for Rs 1,799. “We have received a good response from customers for our Zen X414 model. This has multimedia features such as an mp3 and mp4 player, FM radio with recording, a powerful torch and a battery back-up of 40 days on stand-by mode,” Mr Gupta said.
At present, the company has a presence in 80 per cent of the markets. It will have a footprint in all districts of the country in the next three months, he said.
Success in my Habit
Tuesday, February 22, 2011
Vodafone Essar, Airtel, Idea Cellular still a hit in MNP regime
Mumbai: It’s been a month since mobile number portability (MNP) kicked in, and as expected, older GSM operators like Vodafone Essar, Airtel and Idea Cellular continue to lure the bulk of subscribers to their network. Latest numbers indicate Vodafone Essar gained as many as 1.7 lakh customers while Idea Cellular ranked second with a net gain of 1.5 lakh. The figures denote the difference between the number of customers porting in and porting out. The country’s largest operator , Bharti Airtel , on the other hand gained 1.35 lakh subscribers of February 20. However, most operators stick by the theory that MNP will not be a game-changer for the industry.
“The revenue impact of new customers who have come on to Vodafone is yet to be ascertained as we need to study a few billing cycles of the post-paid customers to figure how much these new customers are spending,” said Samresh Parida, strategy director- Vodafone Essar. A large proportion of subscriber movement in India is seen in the prepaid segment , which accounts for a monthly churn rate of 4-5 %. “Early analysis also indicates that among MNP portins , we are getting a disproportionate share of highvalue customers from other operators,” said Atul Bindal , president- mobile services , Bharti Airtel. The mobile operator, besides advertising around the MNP, also introduced several freebies such as giving away pizza vouchers and offering discount on monthly bills to retain customers.
Idea Cellular said it had benefitted from its high-decibel advertising campaign . “We had a strong rural footprint but with the launch of MNP, we also wanted to grab the opportunity to strengthen our presence in the big cities and metros and this brand campaign helped us get noticed,” said Himanshu Kapania , deputy MD, Idea Cellular.
On the CDMA front, there has been a large exodus with RCOM being the worst-hit , followed by Tata Teleservices and BSNL. But RCOM said it is looking to gain value and is not worried about the volumes coming in. “Our focus is to get high-spending customers as we are only interested in the value churn,” said Mahesh Prasad , group president, wireless business, RCOM.
The new entrants were also expected to be hit by MNP roll-out . To combat this, these operators lowered tariffs along with doling out freebies. “For us, it’s been the introduction of a unique dynamic pricing product, which gives discounts and it changes from one mobile tower to the next, that is attracting customers to our service,” said a Uninor spokesman. It registered a net gain of 0.3%.
Regional operators have also upped the ante as they feared losing customers. Mumbai-based Loop Mobile said it had an incremental churn of 0.7%, which was one of the lowest among the incumbent operators in the circle as it refurbished its brands identity and launched aggressive
“The revenue impact of new customers who have come on to Vodafone is yet to be ascertained as we need to study a few billing cycles of the post-paid customers to figure how much these new customers are spending,” said Samresh Parida, strategy director- Vodafone Essar. A large proportion of subscriber movement in India is seen in the prepaid segment , which accounts for a monthly churn rate of 4-5 %. “Early analysis also indicates that among MNP portins , we are getting a disproportionate share of highvalue customers from other operators,” said Atul Bindal , president- mobile services , Bharti Airtel. The mobile operator, besides advertising around the MNP, also introduced several freebies such as giving away pizza vouchers and offering discount on monthly bills to retain customers.
Idea Cellular said it had benefitted from its high-decibel advertising campaign . “We had a strong rural footprint but with the launch of MNP, we also wanted to grab the opportunity to strengthen our presence in the big cities and metros and this brand campaign helped us get noticed,” said Himanshu Kapania , deputy MD, Idea Cellular.
On the CDMA front, there has been a large exodus with RCOM being the worst-hit , followed by Tata Teleservices and BSNL. But RCOM said it is looking to gain value and is not worried about the volumes coming in. “Our focus is to get high-spending customers as we are only interested in the value churn,” said Mahesh Prasad , group president, wireless business, RCOM.
The new entrants were also expected to be hit by MNP roll-out . To combat this, these operators lowered tariffs along with doling out freebies. “For us, it’s been the introduction of a unique dynamic pricing product, which gives discounts and it changes from one mobile tower to the next, that is attracting customers to our service,” said a Uninor spokesman. It registered a net gain of 0.3%.
Regional operators have also upped the ante as they feared losing customers. Mumbai-based Loop Mobile said it had an incremental churn of 0.7%, which was one of the lowest among the incumbent operators in the circle as it refurbished its brands identity and launched aggressive
McDonald's India franchisee to open 30 new stores in 2011
MUMBAI: McDonald's Corp's Indian franchisee plans to set up 30 new restaurants in the southern and western parts of the country this year, as part of the restaurant chain's expansion plans in Asia's third-largest economy, a top executive said.
Speaking to Reuters in an interview, Hardcastle Restaurants Private Ltd Vice Chairman Amit Jatia also said the franchisee would invest $111 million in India over the next three to four years.
Hardcastle will have a total of 250 McDonald's restaurants in three to four years in the two regions, up from 106 now, Jatia said.
Hardcastle Restaurants is now a licensee of McDonald's in India, after the world's biggest restaurant chain sold its 50 percent stake in the joint venture to its local partner last year, Jatia said.
Speaking to Reuters in an interview, Hardcastle Restaurants Private Ltd Vice Chairman Amit Jatia also said the franchisee would invest $111 million in India over the next three to four years.
Hardcastle will have a total of 250 McDonald's restaurants in three to four years in the two regions, up from 106 now, Jatia said.
Hardcastle Restaurants is now a licensee of McDonald's in India, after the world's biggest restaurant chain sold its 50 percent stake in the joint venture to its local partner last year, Jatia said.
Canon pegs office imaging solutions rev at Rs 350 cr in 2011
NEW DELHI: Canon India today said it expects 20 per cent growth in its office imaging solutions division's revenues to Rs 350 crore in 2011.
"India continues to build strong consumption, as well as investment momentum. With sustained 9 per cent GDP growth, we should begin to witness higher level of entrepreneurial depth," Canon India Senior Vice-President Alok Bharadwaj said in a statement.
Bharadwaj mentioned that India Inc prints and copies over 60 billion documents a year, translating into a cost of Rs 10,000 crore a year, which is growing at 20 per cent per annum.
Canon India recently announced plans to merge its enterprise solutions division for large enterprises and channel network for the SME segment into one division, called the office imaging solutions ( OIS )) division.
"We expect this division to grow revenues by 20 per cent to touch Rs 350 crore in 2011. This newly formed division will have 162 sales and marketing staff," Bharadwaj said.
The company today announced the appointment of K Bhashkar as the director of the office imaging solution (OIS) division.
This business-to-business division was one of the major contributors to Canon's overall business in 2010, contributing more than 25 per cent to the total revenue.
"India continues to build strong consumption, as well as investment momentum. With sustained 9 per cent GDP growth, we should begin to witness higher level of entrepreneurial depth," Canon India Senior Vice-President Alok Bharadwaj said in a statement.
Bharadwaj mentioned that India Inc prints and copies over 60 billion documents a year, translating into a cost of Rs 10,000 crore a year, which is growing at 20 per cent per annum.
Canon India recently announced plans to merge its enterprise solutions division for large enterprises and channel network for the SME segment into one division, called the office imaging solutions ( OIS )) division.
"We expect this division to grow revenues by 20 per cent to touch Rs 350 crore in 2011. This newly formed division will have 162 sales and marketing staff," Bharadwaj said.
The company today announced the appointment of K Bhashkar as the director of the office imaging solution (OIS) division.
This business-to-business division was one of the major contributors to Canon's overall business in 2010, contributing more than 25 per cent to the total revenue.
Cadbury India reports its highest-ever 27% revenue growth under Kraft
NEW DELHI: Cadbury India has reported its alltime high revenue growth in the first year after Kraft Foods took over Cadbury in a $19.7-billion deal, thanks to decentralised operations and sharp focus on core brands Cadbury Dairy Milk and Perk, a top official said.
Cadbury India has reported a record revenue growth of 27% last year, Kraft Foods Executive Vice-President & President, Developing Markets, Sanjay Khosla said. It ended December 2010 with Rs 2,500 crore in sales.
“I have given a blank cheque to our top performing markets; the idea was to get away from the control system in Chicago where we are headquartered,” he said. This means independent country heads can invest the way they want to—in sales, infrastructure, advertising and promotions. “This has worked well,” said Khosla, who is in charge of $14 billion worth of business in 60 markets including India. He, however, said the company is in no hurry to launch Kraft products such as Oreo biscuits and Toblerone chocolates in India.
Khosla is in India for a two-day workshop along with 90 Cadbury-Kraft sales directors from all over the world. They are here to imbibe learnings from Cadbury India’s diverse retail and distribution strengths. He attributes the record growth in India to three pillars – focus on the core business, adopting a ‘glocal’ strategy (that is, following a global model, but through decentralised operations), and tapping people's potential.
Core business, in Kraft’s world, includes brand development, sales, supply chain, cost efficiencies , right pricing, availability, campaigns , presence on social media, and so on. The country heads third-party manufacturing deal with Ludhiana-based Cremica Foods , Khosla only said that the $50-billion US giant is in no tearing hurry to bring its brands to India.
“I would prefer to do a few things simply; and do them well,” he said. “There is so much to do with brands that exist. The per capita consumption of foods we are in is still so small in India,” he added. The bullishness on India explains why Kraft has absorbed 16 Indian managers in the past eight months to take care of functions in places such as Singapore and Zurich.
Some of these officials are based in India, but are handling projects for other countries. Khosla said Kraft does not intend to phase out smaller brands in Cadbury’s portfolio. “Every brand plays a role. How does a local brand enter the top 10, is the question we are asking,” he said.
The India arm, which has 2,700 employees, is one of Kraft’s top 10 priority markets among the 170 countries it operates across.
Cadbury India has reported a record revenue growth of 27% last year, Kraft Foods Executive Vice-President & President, Developing Markets, Sanjay Khosla said. It ended December 2010 with Rs 2,500 crore in sales.
“I have given a blank cheque to our top performing markets; the idea was to get away from the control system in Chicago where we are headquartered,” he said. This means independent country heads can invest the way they want to—in sales, infrastructure, advertising and promotions. “This has worked well,” said Khosla, who is in charge of $14 billion worth of business in 60 markets including India. He, however, said the company is in no hurry to launch Kraft products such as Oreo biscuits and Toblerone chocolates in India.
Khosla is in India for a two-day workshop along with 90 Cadbury-Kraft sales directors from all over the world. They are here to imbibe learnings from Cadbury India’s diverse retail and distribution strengths. He attributes the record growth in India to three pillars – focus on the core business, adopting a ‘glocal’ strategy (that is, following a global model, but through decentralised operations), and tapping people's potential.
Core business, in Kraft’s world, includes brand development, sales, supply chain, cost efficiencies , right pricing, availability, campaigns , presence on social media, and so on. The country heads third-party manufacturing deal with Ludhiana-based Cremica Foods , Khosla only said that the $50-billion US giant is in no tearing hurry to bring its brands to India.
“I would prefer to do a few things simply; and do them well,” he said. “There is so much to do with brands that exist. The per capita consumption of foods we are in is still so small in India,” he added. The bullishness on India explains why Kraft has absorbed 16 Indian managers in the past eight months to take care of functions in places such as Singapore and Zurich.
Some of these officials are based in India, but are handling projects for other countries. Khosla said Kraft does not intend to phase out smaller brands in Cadbury’s portfolio. “Every brand plays a role. How does a local brand enter the top 10, is the question we are asking,” he said.
The India arm, which has 2,700 employees, is one of Kraft’s top 10 priority markets among the 170 countries it operates across.
Mukesh Ambani PE Fund to join hands with Intel
BANGALORE: The multi-million dollar private equity firm being set up by Mukesh Ambani, chairman of Reliance Industries , will be the first Indian fund to join a global co-investment programme led by US-based Intel Capital, the venture arm of chipmaker Intel Inc. The two funds are in the process of signing an agreement, a person with direct knowledge of the development said.
Intel's Global Syndicate Programme launched in December 2009 is an elite group of over 20 global private equity investors who collaborate on technology-led deals. Globally, Intel Cap has backed firms such as Research In Motion , makers of BlackBerry phones, Actions Semiconductors in China and RedHat in the US. In India, the fund has invested in communications company Sasken, technology education provider NIIT and a range of emerging firms such as mobile services firm, One97 and smart TV company Althea Systems .
Ambani is looking to back innovation across the technology and lifescience space and has built up a fund with a corpus of up to $250 million. An email questionnaire sent to the spokespersons of RIL did not elicit a response.
Intel Capital, which invests out of a dedicated $250-million fund in India, was one of the most active private equity investors in the country in 2010. The fund closed about eight deals investing a total of $45 million in both existing firms such as July Systems as well as new investments in start-ups such as Buzzintown and Omnesys.
The agreement, when it comes through, will help the Ambani-led fund gain access to investment opportunities in a range of new technology start-ups in areas such as IT infrastructure, mobile technology, digital health and the internet - sectors that Intel Capital focuses heavily on.
Also as these emerging firms have already have received initial funding from Intel Cap, they will have undergone a rigorous process of due diligence. Allowing the newly-minted Indian PE firm to invest in start-ups with a dual advantage-disruptive technology and a proven business model.
"The two funds are yet to close a joint deal in India but they are in the process of evaluating an investment," said an industry source.
The PE fund is supported by the Reliance Innovation Council which includes scientist RA Mashelkar, Ambani and other industry experts from science and business who are expected to whet possible investments made by the PE fund.
Intel Capital typically picks syndicate partners for their deep pockets and for additional technology inputs they can provide to portfolio companies. "Syndicate partners such as the Ambani-led fund will provide additional rounds of capital to fast-growing technology firms that do not need to go out into the market in search of more money," said a senior professional with direct knowledge of the development. Last year, some of Intel Capital's top investments included educational gaming company Tabula Digita , Carrier Ethernet solutions provider Overture Networks and advertising technology company BlackArrow. It also co-invested in video technology firm Kaltura where another India-focused fund Nexus Venture Partners also invested.
Intel Cap is also looking to seal a similar partnership with Japanese electronics major, Toshiba Corp , according to a senior professional in the private equity industry. "Such partnerships provide a dedicated pool of follow-on funding for fast growing companies in the Intel Cap portfolio while syndicate partners get access to strategic technology deals," he added.
Intel's Global Syndicate Programme launched in December 2009 is an elite group of over 20 global private equity investors who collaborate on technology-led deals. Globally, Intel Cap has backed firms such as Research In Motion , makers of BlackBerry phones, Actions Semiconductors in China and RedHat in the US. In India, the fund has invested in communications company Sasken, technology education provider NIIT and a range of emerging firms such as mobile services firm, One97 and smart TV company Althea Systems .
Ambani is looking to back innovation across the technology and lifescience space and has built up a fund with a corpus of up to $250 million. An email questionnaire sent to the spokespersons of RIL did not elicit a response.
Intel Capital, which invests out of a dedicated $250-million fund in India, was one of the most active private equity investors in the country in 2010. The fund closed about eight deals investing a total of $45 million in both existing firms such as July Systems as well as new investments in start-ups such as Buzzintown and Omnesys.
The agreement, when it comes through, will help the Ambani-led fund gain access to investment opportunities in a range of new technology start-ups in areas such as IT infrastructure, mobile technology, digital health and the internet - sectors that Intel Capital focuses heavily on.
Also as these emerging firms have already have received initial funding from Intel Cap, they will have undergone a rigorous process of due diligence. Allowing the newly-minted Indian PE firm to invest in start-ups with a dual advantage-disruptive technology and a proven business model.
"The two funds are yet to close a joint deal in India but they are in the process of evaluating an investment," said an industry source.
The PE fund is supported by the Reliance Innovation Council which includes scientist RA Mashelkar, Ambani and other industry experts from science and business who are expected to whet possible investments made by the PE fund.
Intel Capital typically picks syndicate partners for their deep pockets and for additional technology inputs they can provide to portfolio companies. "Syndicate partners such as the Ambani-led fund will provide additional rounds of capital to fast-growing technology firms that do not need to go out into the market in search of more money," said a senior professional with direct knowledge of the development. Last year, some of Intel Capital's top investments included educational gaming company Tabula Digita , Carrier Ethernet solutions provider Overture Networks and advertising technology company BlackArrow. It also co-invested in video technology firm Kaltura where another India-focused fund Nexus Venture Partners also invested.
Intel Cap is also looking to seal a similar partnership with Japanese electronics major, Toshiba Corp , according to a senior professional in the private equity industry. "Such partnerships provide a dedicated pool of follow-on funding for fast growing companies in the Intel Cap portfolio while syndicate partners get access to strategic technology deals," he added.
SBI plans to merge 5 subsidiaries in 12-18 months
NEW DELHI: State Bank of India proposes to merge its five remaining subsidiaries with itself over the next 12-18 months.
In its deposition before the Parliamentary Standing Committee on Finance, the country's largest lender said the consolidation exercise has been systemically planned as part of a logical step to bring in economies of scale, reduce administrative overheads, redeploy and channelise trained manpower to business development and, in the process, also reduce avoidable competition from different arms of the same group.
While the bank has already merged State Bank of Saurashtra and State Bank of Indore with itself, it would require a government go-ahead to merge the remaining five - State Bank of Hyderabad, State Bank of Patiala , State Bank of Bikaner and Jaipur , State Bank of Travancore and State Bank of Mysore .
SBI chairman O P Bhatt told the committee headed by former finance minister Yashwant Sinha that the merger of State Bank of Saurashtra with SBI "went as smooth as silk". As for State Bank of Indore's merger, an online poll of employees showed that over 90% were in favour of the merger, he said.
"A number of corporates are pushing growth opportunities abroad. All these require that SBI and a few other Indian banks grow in size and financial muscle to cater to the growing needs of such corporates, failing which such clientele and their business would be taken over by foreign banks," the government told the standing committee.
A merger of all associate banks has been in the works for several years but SBI is taking it one by one as it wants to build a consensus around it first. A major attraction for SBI subsidiary employees is the offer of getting a pension, in addition to provident fund benefits. SBI is the only public sector player in the country where employees get both the benefits. In addition, employees of the subsidiary banks are being given the same treatment that is available to SBI employees.
To make sure that the merger is not legally challenged, SBI has got the process legally vetted. SBI management is now contemplating getting a blanket approval from the government to merge all the banks and then decide the sequence. The merger will help SBI steal a march over its nearest rival ICICI Bank .
In its deposition before the Parliamentary Standing Committee on Finance, the country's largest lender said the consolidation exercise has been systemically planned as part of a logical step to bring in economies of scale, reduce administrative overheads, redeploy and channelise trained manpower to business development and, in the process, also reduce avoidable competition from different arms of the same group.
While the bank has already merged State Bank of Saurashtra and State Bank of Indore with itself, it would require a government go-ahead to merge the remaining five - State Bank of Hyderabad, State Bank of Patiala , State Bank of Bikaner and Jaipur , State Bank of Travancore and State Bank of Mysore .
SBI chairman O P Bhatt told the committee headed by former finance minister Yashwant Sinha that the merger of State Bank of Saurashtra with SBI "went as smooth as silk". As for State Bank of Indore's merger, an online poll of employees showed that over 90% were in favour of the merger, he said.
"A number of corporates are pushing growth opportunities abroad. All these require that SBI and a few other Indian banks grow in size and financial muscle to cater to the growing needs of such corporates, failing which such clientele and their business would be taken over by foreign banks," the government told the standing committee.
A merger of all associate banks has been in the works for several years but SBI is taking it one by one as it wants to build a consensus around it first. A major attraction for SBI subsidiary employees is the offer of getting a pension, in addition to provident fund benefits. SBI is the only public sector player in the country where employees get both the benefits. In addition, employees of the subsidiary banks are being given the same treatment that is available to SBI employees.
To make sure that the merger is not legally challenged, SBI has got the process legally vetted. SBI management is now contemplating getting a blanket approval from the government to merge all the banks and then decide the sequence. The merger will help SBI steal a march over its nearest rival ICICI Bank .
Maruti Suzuki to supply A-star to Volkswagen
NEW DELHI: India's largest automobile company Maruti Suzuki will supply its latest compact car A-Star to Volkswagen AG . The car, which will undergo some modifications and design changes, will be sold in India and Asian markets under a new brand, according to senior officials in the automobile industry.
The agreement to supply A-Star, Suzuki's fifth global model after Swift, Ritz, SX4 and Grand Vitara will be inked soon. Volkswagen holds 20% stake in Maruti's parent company Suzuki.
Volkswagen's decision to choose A-Star comes after two years of Maruti's success of supplying A-Star to another Japanese carmaker Nissan Motors, which re-badges the same car as Pixo for sales through its own network in Europe. A-Star sold as Alto in overseas markets is exclusively made by Maruti Suzuki at its Manesar plant in Haryana. It's a futuristic product specifically developed by parent Suzuki Motor Corp (SMC) for developed markets meeting all its stringent crash safety tests, emission norms and environment regulations.
Maruti's engineering team would work closely with VW to tweak the car as per its global market needs, said a senior official from the automobile industry. "There could be some changes in the basic design though the overall technical specs won't be altered," the official added.
The agreement to supply A-Star, Suzuki's fifth global model after Swift, Ritz, SX4 and Grand Vitara will be inked soon. Volkswagen holds 20% stake in Maruti's parent company Suzuki.
Volkswagen's decision to choose A-Star comes after two years of Maruti's success of supplying A-Star to another Japanese carmaker Nissan Motors, which re-badges the same car as Pixo for sales through its own network in Europe. A-Star sold as Alto in overseas markets is exclusively made by Maruti Suzuki at its Manesar plant in Haryana. It's a futuristic product specifically developed by parent Suzuki Motor Corp (SMC) for developed markets meeting all its stringent crash safety tests, emission norms and environment regulations.
Maruti's engineering team would work closely with VW to tweak the car as per its global market needs, said a senior official from the automobile industry. "There could be some changes in the basic design though the overall technical specs won't be altered," the official added.
RIL-BP $7.2 bn deal: ONGC’s loss is Reliance’s gain
New Delhi: Much before the highly acclaimed USD 7.2 billion Reliance-BP deal, it was state-run ONGC that had proposed a strategic alliance with Europe's second biggest oil firm but was rejected by the oil ministry.
While BP Plc yesterday agreed to pay USD 7.2 billion for a 30 per cent stake in most of Reliance Industries' oil and gas blocks including the gigantic eastern offshore KG-D6 fields, the UK firm had in 2005-06 proposed to partner ONGC in three of its deep-sea blocks off the east and west coast.
Industry sources said BP had made a formal proposal to take 40-50 per cent stake in Oil and Natural Gas Corp's (ONGC) Krishna Godavari and Gujarat-Kutch basin block but the then Oil Minister Murli Deora and DGH V K Sibal had rejected it.
The oil ministry had also frustrated ONGC's attempt to bring in Norwegian oil major Statoil and Brazil's Petrobras in its gas discovery block KG-DWN-98/2, which sits next to Reliance's giant KG-D6 fields.
ONGC had in August/September 2007, proposed farming out (or in simple terms given out) 15 per cent interest in the block to Petrobras and 10 per cent to Norsk Hydro (now Statoil Hydro). But the ministry did not approve the farmout for almost a year, forcing the two companies to call it quits.
Oil Secretary S Sundareshan says New Exploration Licensing Policy (NELP), under which Reliance had won all the 23 blocks in which it is giving stake to BP, allows assignment of participating interest and his ministry will examine the Reliance-BP deal on merits.
ONGC too had won the KG-DWN-98/2 block in the same round of NELP in which Reliance got the neighbouring KG-DWN-98/3 or KG-D6 in 1999. But the state-owned firm never won approval to assign or farm-out interest to deep sea technology firms.
Sources said in case of BP, the UK firm was particularly interested in partnering ONGC in Kutch basin block GK-DW-1 that shared boundary with its blocks in neighbouring waters of Pakistan.
BP and ONGC had in September 2007 even signed a MoU for carrying out seismic surveys in the Kutch basin of Gujarat.
Sources said the oil ministry had used the ground that petroleum exploration license (PEL) for the three KG deepwater blocks was ending in May 2007 and for the Kutch block in August 2008. It did not deem it fit to extend the license and instead decided to offer the blocks in next bid rounds.
Despite British government pushing for the deal, the oil ministry held its ground and gave its final rejection in 2007.
Just around the same time, BP and Reliance entered into dialogue in what fructified into a deal where the UK firm picked 30 per cent stake in 23 out of Mukesh Ambani firm's 29 exploration blocks.
While BP Plc yesterday agreed to pay USD 7.2 billion for a 30 per cent stake in most of Reliance Industries' oil and gas blocks including the gigantic eastern offshore KG-D6 fields, the UK firm had in 2005-06 proposed to partner ONGC in three of its deep-sea blocks off the east and west coast.
Industry sources said BP had made a formal proposal to take 40-50 per cent stake in Oil and Natural Gas Corp's (ONGC) Krishna Godavari and Gujarat-Kutch basin block but the then Oil Minister Murli Deora and DGH V K Sibal had rejected it.
The oil ministry had also frustrated ONGC's attempt to bring in Norwegian oil major Statoil and Brazil's Petrobras in its gas discovery block KG-DWN-98/2, which sits next to Reliance's giant KG-D6 fields.
ONGC had in August/September 2007, proposed farming out (or in simple terms given out) 15 per cent interest in the block to Petrobras and 10 per cent to Norsk Hydro (now Statoil Hydro). But the ministry did not approve the farmout for almost a year, forcing the two companies to call it quits.
Oil Secretary S Sundareshan says New Exploration Licensing Policy (NELP), under which Reliance had won all the 23 blocks in which it is giving stake to BP, allows assignment of participating interest and his ministry will examine the Reliance-BP deal on merits.
ONGC too had won the KG-DWN-98/2 block in the same round of NELP in which Reliance got the neighbouring KG-DWN-98/3 or KG-D6 in 1999. But the state-owned firm never won approval to assign or farm-out interest to deep sea technology firms.
Sources said in case of BP, the UK firm was particularly interested in partnering ONGC in Kutch basin block GK-DW-1 that shared boundary with its blocks in neighbouring waters of Pakistan.
BP and ONGC had in September 2007 even signed a MoU for carrying out seismic surveys in the Kutch basin of Gujarat.
Sources said the oil ministry had used the ground that petroleum exploration license (PEL) for the three KG deepwater blocks was ending in May 2007 and for the Kutch block in August 2008. It did not deem it fit to extend the license and instead decided to offer the blocks in next bid rounds.
Despite British government pushing for the deal, the oil ministry held its ground and gave its final rejection in 2007.
Just around the same time, BP and Reliance entered into dialogue in what fructified into a deal where the UK firm picked 30 per cent stake in 23 out of Mukesh Ambani firm's 29 exploration blocks.
Monday, February 21, 2011
Mumbai gets its first air-conditioned bus stand
MUMBAI: Maharashtra's first fully air-conditioned bus stand , resembling an airport lounge , was Sunday inaugurated in the Dadar east area here by Chief Minister Prithviraj Chavan .
Chavan, who also holds the transport portfolio, complimented the Maharashtra State Road Transport Corporation (MSRTC) for the project and said that depending on passenger volumes, all bus stands in the state would categorised as A, B, or C groups, and related passenger amenities and facilities will be developed in all the state transport bus stands.
Constructed at a cost of Rs.5 million, the new stand will cater to over 14,000 passengers per day, travelling by 160 air-conditioned and 72 semi-luxury services from here, said MSRTC chairman Sudhakar Paricharak.
The stand has four air-conditioned waiting rooms which can accommodate 100 passengers at a time, with LCD monitors displaying bus timings, arrivals and departures of the buses and 20 CCTV cameras for security.
Comfortable seating, drinking water, rest rooms, newspapers and other facilities have also been provided.
Besides, the bus stand also boasts of an air-conditioned rest room for the drivers, making MSRTC the first state transport undertaking in the country to provide such a facility.
There are separate booking counters for air-conditioned and semi-luxury bus services, computerised booking for the entire state, enquiry and control rooms.
The new bus stand is a far cry from the earlier temporary shed constructed on a pavement on the busy Dr. Babasaheb Ambedkar Road in 1982 when the Mumbai-Pune-Mumbai services were introduced.
Chavan, who also holds the transport portfolio, complimented the Maharashtra State Road Transport Corporation (MSRTC) for the project and said that depending on passenger volumes, all bus stands in the state would categorised as A, B, or C groups, and related passenger amenities and facilities will be developed in all the state transport bus stands.
Constructed at a cost of Rs.5 million, the new stand will cater to over 14,000 passengers per day, travelling by 160 air-conditioned and 72 semi-luxury services from here, said MSRTC chairman Sudhakar Paricharak.
The stand has four air-conditioned waiting rooms which can accommodate 100 passengers at a time, with LCD monitors displaying bus timings, arrivals and departures of the buses and 20 CCTV cameras for security.
Comfortable seating, drinking water, rest rooms, newspapers and other facilities have also been provided.
Besides, the bus stand also boasts of an air-conditioned rest room for the drivers, making MSRTC the first state transport undertaking in the country to provide such a facility.
There are separate booking counters for air-conditioned and semi-luxury bus services, computerised booking for the entire state, enquiry and control rooms.
The new bus stand is a far cry from the earlier temporary shed constructed on a pavement on the busy Dr. Babasaheb Ambedkar Road in 1982 when the Mumbai-Pune-Mumbai services were introduced.
Delhi Metro Phase-III launch to be announced in Budget
NEW DELHI: The third phase of Delhi Metro envisaging an investment of Rs 28,000 crore is likely to be announced in the General Budget for 2011-12, says highly placed sources in the government.
"The DMRC is in the process of finalising the funding pattern of the Delhi Metro's third phase which will be launched in the Union Budget on February 28," they said.
There will be a provision for a portion of the Centre's equity investment in Delhi Metro's third phase expansion in 2011-12. The Delhi Metro has already initiated the process of finalising the funding pattern with the Planning Commission.
The third phase is likely to cover 105 km distance taking the total network by Delhi Metro to over 300 km.
The decision on the funding pattern, which has been a contentious issue, is taking time. Earlier this week the Delhi Metro had made detailed presentation on Phase-III project to the Planning Commission.
While the Planning Commission wants the debt equity ratio to be increased to 50:50, sources said the Delhi Metro has expressed its reservations against such high equity investments by the Delhi and central governments.
Sources said the Delhi Metro has proposed a debt equity ratio of 40:60 under which the two governments will contribute 20 per cent each and the rest to be raised by loans from agencies like Japan International Cooperation Agency (JICA).
It is likely that a consensus can be achieved a debt equity ration of 40:60 per cent. The ration for first and second phase of Delhi Metro was 70:30 per cent.
The Delhi Metro has proposed for six corridors under the Phase-III plan to the Commission. However, so far there is a the broad agreement on four corridors proposed by the Delhi Metro in its third phase.
The Delhi government gave its in-principle approval to the project in October and asked the DMRC to rework on three corridors so that ring road and areas like Jamia Nagar be connected through the Metro.
The DPR was prepared by the DMRC last month after which it has been decided to extend the Phase-III network to 105 km.
Lending agency JICA has also given positive indications to extend financial assistance to the project.
JICA has funded the Phase-I and Phase-II of the Delhi Metro and is also funding other Metro projects in the country.
The Phase-III is likely to be implemented at a cost of Rs 28,000 crore.
The Delhi government has been trying to get the Delhi DDA to partly fund Phase-III but the efforts are understood to have failed.
The Planning Commission was also of the view that DDA should partly fund Phase-III so that the debt equity ratio can be reduced to 50:50.
"The DMRC is in the process of finalising the funding pattern of the Delhi Metro's third phase which will be launched in the Union Budget on February 28," they said.
There will be a provision for a portion of the Centre's equity investment in Delhi Metro's third phase expansion in 2011-12. The Delhi Metro has already initiated the process of finalising the funding pattern with the Planning Commission.
The third phase is likely to cover 105 km distance taking the total network by Delhi Metro to over 300 km.
The decision on the funding pattern, which has been a contentious issue, is taking time. Earlier this week the Delhi Metro had made detailed presentation on Phase-III project to the Planning Commission.
While the Planning Commission wants the debt equity ratio to be increased to 50:50, sources said the Delhi Metro has expressed its reservations against such high equity investments by the Delhi and central governments.
Sources said the Delhi Metro has proposed a debt equity ratio of 40:60 under which the two governments will contribute 20 per cent each and the rest to be raised by loans from agencies like Japan International Cooperation Agency (JICA).
It is likely that a consensus can be achieved a debt equity ration of 40:60 per cent. The ration for first and second phase of Delhi Metro was 70:30 per cent.
The Delhi Metro has proposed for six corridors under the Phase-III plan to the Commission. However, so far there is a the broad agreement on four corridors proposed by the Delhi Metro in its third phase.
The Delhi government gave its in-principle approval to the project in October and asked the DMRC to rework on three corridors so that ring road and areas like Jamia Nagar be connected through the Metro.
The DPR was prepared by the DMRC last month after which it has been decided to extend the Phase-III network to 105 km.
Lending agency JICA has also given positive indications to extend financial assistance to the project.
JICA has funded the Phase-I and Phase-II of the Delhi Metro and is also funding other Metro projects in the country.
The Phase-III is likely to be implemented at a cost of Rs 28,000 crore.
The Delhi government has been trying to get the Delhi DDA to partly fund Phase-III but the efforts are understood to have failed.
The Planning Commission was also of the view that DDA should partly fund Phase-III so that the debt equity ratio can be reduced to 50:50.
Railway Budget 2011: Plan to set up Rail Industrial Park
NEW DELHI: In a first-of-its-kind project, the Railways will soon set up their own industrial park to manufacture various components for rail operation.
"Ancillary units will be set up at the Rail Industrial Park which would cater to the needs of Railways," sources in Railway Ministry said, adding, the proposal is likely to be announced in the Rail Budget 2011-12.
Besides, proposals for setting up a green toilet manufacturing unit at Nagpur and expansion of Diesel Loco Works at Varanasi are also likely to find mention in the Rail Budget on February 25.
Railways are carrying out field trials for various types of green toilets, including controlled discharge toilet system, zero discharge toilet system and bio-toilet based on bio-digester technology, in about 90 passenger trains.
"The green toilet in trains, an environment-friendly step, is a priority for Railways as the organisation is committed to providing cleaner environment," a senior official involved with the green toilet project said.
Facing financial crunch due to various reasons including the implementation of the Sixth Pay Commission, hike in diesel price and shortfall in freight loadings, Railways will tread cautiously this time.
Besides the Park, a diesel locomotive shed in Mariani in Assam may also be proposed in the Rail Budget. "The loco shed is being strategically planned keeping the increased rail movement in the North East in mind," the sources said.
Facing complaints about the quality of linen provided in trains, Railways are expected to propose mechanised laundries on "build, operate, own and transfer" mode at every zone.
The Budget may also have a proposal for provision of 'Jan Ahaar' outlets at every station to provide good quality food at reasonable rates to passengers.
"Ancillary units will be set up at the Rail Industrial Park which would cater to the needs of Railways," sources in Railway Ministry said, adding, the proposal is likely to be announced in the Rail Budget 2011-12.
Besides, proposals for setting up a green toilet manufacturing unit at Nagpur and expansion of Diesel Loco Works at Varanasi are also likely to find mention in the Rail Budget on February 25.
Railways are carrying out field trials for various types of green toilets, including controlled discharge toilet system, zero discharge toilet system and bio-toilet based on bio-digester technology, in about 90 passenger trains.
"The green toilet in trains, an environment-friendly step, is a priority for Railways as the organisation is committed to providing cleaner environment," a senior official involved with the green toilet project said.
Facing financial crunch due to various reasons including the implementation of the Sixth Pay Commission, hike in diesel price and shortfall in freight loadings, Railways will tread cautiously this time.
Besides the Park, a diesel locomotive shed in Mariani in Assam may also be proposed in the Rail Budget. "The loco shed is being strategically planned keeping the increased rail movement in the North East in mind," the sources said.
Facing complaints about the quality of linen provided in trains, Railways are expected to propose mechanised laundries on "build, operate, own and transfer" mode at every zone.
The Budget may also have a proposal for provision of 'Jan Ahaar' outlets at every station to provide good quality food at reasonable rates to passengers.
Lanco Infra earmarks Rs 3,000 cr for solar power equipment unit
RAIPUR: Lanco Infratech today said it has earmarked Rs 3,000 crore for manufacturing solar power equipment from its facility here, which would be operational in the next three years.
The company today laid the foundation stone for establishing a solar power equipment manufacturing unit at Rajnandangaon near Raipur in Chhattisgarh.
"We would invest Rs 3,000 crore in two phases in Raipur for solar power equipment manufacturing," Chairman Lanco Infratech L Madhusudan Rao told reporters here adding that the unit would be functional in the next three years.
The company plans to invest about Rs 1,370 crore in the first phase of the project, which is likely to employ around 8,000 people at the time of its completion.
The project is being funded at a debt and equity ratio of 75:25, the company has already tied up the debt portion through a consortium of banks led by Axis Bank . The equity portion would be met through internal accruals.
The company would spend Rs 1,630 crore during the second phase of the unit.
Lanco Solar, a special purpose vehicle has been formed by Lanco Infratech for the purpose. This manufacturing unit is likely to make equipment that can generate 250 MW of solar power by 2014.
Lanco Infratech plans to list Lanco Solar on the capital market in 2-3 years time.
"In 2-3 years we hope that we can list Lanco Power," he said.
Rao said that the Group is restructuring the company to create a separate power holding company which plans to generate 15,000 MW by 2015 through all sources of energy -- coal, gas and hydro.
The current power generation capacity of Lanco Infratech is over 2,092 MW and over 12,800 MW is under construction.
The company today laid the foundation stone for establishing a solar power equipment manufacturing unit at Rajnandangaon near Raipur in Chhattisgarh.
"We would invest Rs 3,000 crore in two phases in Raipur for solar power equipment manufacturing," Chairman Lanco Infratech L Madhusudan Rao told reporters here adding that the unit would be functional in the next three years.
The company plans to invest about Rs 1,370 crore in the first phase of the project, which is likely to employ around 8,000 people at the time of its completion.
The project is being funded at a debt and equity ratio of 75:25, the company has already tied up the debt portion through a consortium of banks led by Axis Bank . The equity portion would be met through internal accruals.
The company would spend Rs 1,630 crore during the second phase of the unit.
Lanco Solar, a special purpose vehicle has been formed by Lanco Infratech for the purpose. This manufacturing unit is likely to make equipment that can generate 250 MW of solar power by 2014.
Lanco Infratech plans to list Lanco Solar on the capital market in 2-3 years time.
"In 2-3 years we hope that we can list Lanco Power," he said.
Rao said that the Group is restructuring the company to create a separate power holding company which plans to generate 15,000 MW by 2015 through all sources of energy -- coal, gas and hydro.
The current power generation capacity of Lanco Infratech is over 2,092 MW and over 12,800 MW is under construction.
Ramky Infra JV ties up 1,400 crore for J&K road project
MUMBAI: Hyderabad-based infrastructure firm Ramky Infrastructure has tied up debt worth 1,400 crore with ICICI Bank for financing its Srinagar-Banihal road project in Jammu and Kashmir, group Chief Financial Officer Sanjiv Iyer told ET.
Ramky Infrastructure, in a joint venture with China's Jiangshu Provincial Transportation Engineering Group Company is executing the Srinagar-Banihal road project in Jammu and Kashmir at a total cost of 1,625 crore. Ramky Infrastructure holds 74% in the joint venture which will design, build, finance, operate and transfer the project for National Highway Authority of India (NHAI).
"We will announce financial closure for the project before March-end and hope to start construction of the project around the same time," Iyer said.
The annuity based road project has a concession period of 20 years, including the construction period of three years.
Ramky Infrastructure has five road development projects in its portfolio, of which one is operational currently. With the financial closure of the Srinagar-Banihal road project, the company would have the entire road portfolio financially tied up. "We hope to commission our Gwalior bypass road project by March. We have already started construction on two other projects," Iyer said. Ramky has executed NHAI's Gwalior bypass at a total cost of 332.11 crore.
Ramky Infrastructure, in a joint venture with China's Jiangshu Provincial Transportation Engineering Group Company is executing the Srinagar-Banihal road project in Jammu and Kashmir at a total cost of 1,625 crore. Ramky Infrastructure holds 74% in the joint venture which will design, build, finance, operate and transfer the project for National Highway Authority of India (NHAI).
"We will announce financial closure for the project before March-end and hope to start construction of the project around the same time," Iyer said.
The annuity based road project has a concession period of 20 years, including the construction period of three years.
Ramky Infrastructure has five road development projects in its portfolio, of which one is operational currently. With the financial closure of the Srinagar-Banihal road project, the company would have the entire road portfolio financially tied up. "We hope to commission our Gwalior bypass road project by March. We have already started construction on two other projects," Iyer said. Ramky has executed NHAI's Gwalior bypass at a total cost of 332.11 crore.
Punj Lloyd bags Rs 735-crore project from NHAI
NEW DELHI: Punj Lloyd today said its subsidiary, Punj Lloyd Infrastructure Limited , has bagged an order worth Rs 735 crore from the National Highways Authority of India (NHAI).
The subsidiary, which has been set up for implementing infrastructure development projects, will upgrade the national highway from Khagaria to Purnea in Bihar to a two-lane, undivided carriage way with paved shoulders under the National Highways Development Programme (NHDP), Punj said in a statement.
The project will work in a build-operate-transfer (BOT) annuity basis, the statement added.
The scope of work will involve the design, building, finance, operation and transfer of the 140 km section of the national highway, it said.
"This is a significant BOT project... Through Punj Lloyd Infrastructure Limited, the Group will continue rational bidding with an aim to create a portfolio of Infrastructure Development projects. This project complements our existing portfolio of highways construction portfolio in India," Punj Lloyd Chairman Atul Punj said.
Upon signing a concession agreement with NHAI , Punj Lloyd will be entitled to semi-annual annuities of Rs 56 crore for 17 years, it said.
Punj Lloyd has built over 1200 km of highways under NHDP falling under the Golden Quadrilateral and East West Corridors for NHAI. The Group has also executed BOT Projects in the past along with partners.
The subsidiary, which has been set up for implementing infrastructure development projects, will upgrade the national highway from Khagaria to Purnea in Bihar to a two-lane, undivided carriage way with paved shoulders under the National Highways Development Programme (NHDP), Punj said in a statement.
The project will work in a build-operate-transfer (BOT) annuity basis, the statement added.
The scope of work will involve the design, building, finance, operation and transfer of the 140 km section of the national highway, it said.
"This is a significant BOT project... Through Punj Lloyd Infrastructure Limited, the Group will continue rational bidding with an aim to create a portfolio of Infrastructure Development projects. This project complements our existing portfolio of highways construction portfolio in India," Punj Lloyd Chairman Atul Punj said.
Upon signing a concession agreement with NHAI , Punj Lloyd will be entitled to semi-annual annuities of Rs 56 crore for 17 years, it said.
Punj Lloyd has built over 1200 km of highways under NHDP falling under the Golden Quadrilateral and East West Corridors for NHAI. The Group has also executed BOT Projects in the past along with partners.
Shell to sell stake in Mauritius unit for $1 bn
PORT LOUIS: Petroleum distributor Shell Mauritius Ltd said on Monday that parent Royal Dutch Shell planned to sell three quarters of its stake in the company to two joint venture partners for $1 bn.
Shell Mauritius said Vitol Group and Helios Investment Partners would ensure continued availability of Shell fuels and lubricants in the country.
"The divestment includes the potential sale of the 75 percent of the share capital of SML held by Shell Overseas Holdings Limited (SOH)," Shell Mauritius said in a statement.
Trading in the shares of Shell on the Mauritius bourse resumed on Monday after being suspended on Friday following media reports that an agreement between Shell and Vitol-Helios Investment was in the pipeline.
The shares rose by 1.25 percent to 162 rupees from their last trading session on Thursday.
Shell Mauritius said Vitol Group and Helios Investment Partners would ensure continued availability of Shell fuels and lubricants in the country.
"The divestment includes the potential sale of the 75 percent of the share capital of SML held by Shell Overseas Holdings Limited (SOH)," Shell Mauritius said in a statement.
Trading in the shares of Shell on the Mauritius bourse resumed on Monday after being suspended on Friday following media reports that an agreement between Shell and Vitol-Helios Investment was in the pipeline.
The shares rose by 1.25 percent to 162 rupees from their last trading session on Thursday.
Axis Bank launches zero balance salary account for Indian Army
MUMBAI: After SBI and ICICI Bank, private sector lender Axis Bank today launched a zero balance salary account exclusively for Indian Army personnel.
The announcement from Axis, the third-largest lender, comes close on the heels of similar tie-up forged by the two largest lenders eyeing the benefits of upping the share of the cheaper CASA (Current and Savings Account) deposits in total pie.
A memorandum of understanding was signed between the two entities today for starting the special account christened "Power Salute" salary account, a release issued here by the bank said.
An account-holder can avail a loan without paying any processing fees and will also be given an unique life-time account number which can be used at all branches of the bank.
Apart from that, the account-holder can also withdraw cash at other banks' Automated Teller Machines (ATMs) for free as many time as he wants, it added.
Axis Bank already has an ATM in Thegu near the strategic Nathu La pass situated at 13,200 feet which "till date is one of the highest ATMs in the world" installed for serving the army men, the release said.
The announcement from Axis, the third-largest lender, comes close on the heels of similar tie-up forged by the two largest lenders eyeing the benefits of upping the share of the cheaper CASA (Current and Savings Account) deposits in total pie.
A memorandum of understanding was signed between the two entities today for starting the special account christened "Power Salute" salary account, a release issued here by the bank said.
An account-holder can avail a loan without paying any processing fees and will also be given an unique life-time account number which can be used at all branches of the bank.
Apart from that, the account-holder can also withdraw cash at other banks' Automated Teller Machines (ATMs) for free as many time as he wants, it added.
Axis Bank already has an ATM in Thegu near the strategic Nathu La pass situated at 13,200 feet which "till date is one of the highest ATMs in the world" installed for serving the army men, the release said.
Ruia Group acquires Germany-based Acument GmbH
KOLKATA: Extending its global footprint in the auto ancillary segment , the Rs.5,000-crore Ruia Group Monday announced the acquisition of Germany-based Acument GmbH & Co KG , one of the leading manufacturers of automotive fasteners .
This is the third acquisition for the Ruia Group, the owner of Dunlop India and Falcon Tyres , in Germany and fourth in Europe within a span of three years.
In October-November last year, four bidders tried to acquire Acument whose board of directors filed for insolvency in 2009 as the company incurred a loss of 40 million Euro in 2008 following global economic meltdown, an official said.
Acument produces a wide rage of high precision fasteners like long shafted bolts, hexagonal screws, nuts and forged parts.
The Ruia Group came out as the best bidder and signed the contract for the acquisition of Acument, which has 15 percent of market share in fastener segment in Europe and had posted a turnover of 800 million Euro before insolvency.
The group has acquired four plants of Acument in Neuss, Beckingen, Neuwied and Schorzberg as well as its logistic centre in Koln in Germany.
"Our investment will be 4 million Euro in the company and we expect that the company's turnover would be 200 million Euro this year," Pawan K. Ruia, chairman of the Group, told reporters.
This is the third acquisition for the Ruia Group, the owner of Dunlop India and Falcon Tyres , in Germany and fourth in Europe within a span of three years.
In October-November last year, four bidders tried to acquire Acument whose board of directors filed for insolvency in 2009 as the company incurred a loss of 40 million Euro in 2008 following global economic meltdown, an official said.
Acument produces a wide rage of high precision fasteners like long shafted bolts, hexagonal screws, nuts and forged parts.
The Ruia Group came out as the best bidder and signed the contract for the acquisition of Acument, which has 15 percent of market share in fastener segment in Europe and had posted a turnover of 800 million Euro before insolvency.
The group has acquired four plants of Acument in Neuss, Beckingen, Neuwied and Schorzberg as well as its logistic centre in Koln in Germany.
"Our investment will be 4 million Euro in the company and we expect that the company's turnover would be 200 million Euro this year," Pawan K. Ruia, chairman of the Group, told reporters.
2G spectrum probe: CBI questions Videocon's Dhoot, his brother
NEW DELHI: The CBI today questioned Videocon group Chairman Venugopal Dhoot , and his brother and Rajya Sabha MP Rajkumar Dhoot in connection with the probe into allocation of spectrum in 2008.
The duo were called to the CBI headquarters this afternoon and questioned for over seven hours and confronted with the documents of changing their share capital from Rs 1 lakh to Rs 150 crore, official sources said here today.
The sources said that statement of their Company Secretary, submitted to the Department of Telecom, claiming change in the share capital, was also shown to them and asked to explain the minutes of the meeting of an extra-ordinary general body of the company held on August 27, 2007.
The questioning of the duo was part of the CBI questioning all the heads of nine companies which were allocated spectrum in 2008. Videocon was allocated a start-up spectrum of 4.4 MHz in all circles except Delhi.
The company could not be contacted for comments. The agency so far has questioned top brass of various telecom companies, including Reliance Infocomm Chairman Anil Ambani , Essar CEO Prashant Ruia and Unitech MD Sanjay Chandra.
The Comptroller and Auditor General in its report had alleged that Datacom Solutions, which later changed to Videocon Telecommunications, while submitting its application for 22 licences on August 28, 2007, had "made a false claim of the paid-up capital of Rs 150 crore through company secretary although documents attached with indicated that the authorised share capital of the company as Rs 1.00 lakh only".
Since the requirement of the requisite amount of the paid -up capital was an important eligibility criterion, their applications ought to have been rejected forthwith.
However, on November 27, 2007, the company suo-motto submitted a so-called "correct" version of documents as on August 28, 2007, stating that they had submitted an old version of documents inadvertently along with the application.
"The new version of Memorandum Of Association and Article of Association claimed to have increased the authorised share capital from Rs 1.00 lakh to Rs 150 crore through an ordinary resolution passed in the extra-ordinary general meeting on August 27, 2007, a day preceding the date of submission of applications by the Company.
"Since there is a procedure prescribed in the Companies Act for effecting increase in the authorised share capital of a company, the company could under no circumstances have a paid-up capital of Rs 150 crore on August 28, 2007 and hence the certificate furnished by the Company Secretary of the company appeared to be false," the CAG report had claimed.
It alleged that DoT "failed miserably" to do any due diligence in the examination of claims of the company even when company claimed to have passed the resolution enhancing the authorised share capital on the preceding day of the date of application of the applicant company.
The duo were called to the CBI headquarters this afternoon and questioned for over seven hours and confronted with the documents of changing their share capital from Rs 1 lakh to Rs 150 crore, official sources said here today.
The sources said that statement of their Company Secretary, submitted to the Department of Telecom, claiming change in the share capital, was also shown to them and asked to explain the minutes of the meeting of an extra-ordinary general body of the company held on August 27, 2007.
The questioning of the duo was part of the CBI questioning all the heads of nine companies which were allocated spectrum in 2008. Videocon was allocated a start-up spectrum of 4.4 MHz in all circles except Delhi.
The company could not be contacted for comments. The agency so far has questioned top brass of various telecom companies, including Reliance Infocomm Chairman Anil Ambani , Essar CEO Prashant Ruia and Unitech MD Sanjay Chandra.
The Comptroller and Auditor General in its report had alleged that Datacom Solutions, which later changed to Videocon Telecommunications, while submitting its application for 22 licences on August 28, 2007, had "made a false claim of the paid-up capital of Rs 150 crore through company secretary although documents attached with indicated that the authorised share capital of the company as Rs 1.00 lakh only".
Since the requirement of the requisite amount of the paid -up capital was an important eligibility criterion, their applications ought to have been rejected forthwith.
However, on November 27, 2007, the company suo-motto submitted a so-called "correct" version of documents as on August 28, 2007, stating that they had submitted an old version of documents inadvertently along with the application.
"The new version of Memorandum Of Association and Article of Association claimed to have increased the authorised share capital from Rs 1.00 lakh to Rs 150 crore through an ordinary resolution passed in the extra-ordinary general meeting on August 27, 2007, a day preceding the date of submission of applications by the Company.
"Since there is a procedure prescribed in the Companies Act for effecting increase in the authorised share capital of a company, the company could under no circumstances have a paid-up capital of Rs 150 crore on August 28, 2007 and hence the certificate furnished by the Company Secretary of the company appeared to be false," the CAG report had claimed.
It alleged that DoT "failed miserably" to do any due diligence in the examination of claims of the company even when company claimed to have passed the resolution enhancing the authorised share capital on the preceding day of the date of application of the applicant company.
Reliance Industries, BP signs $7.2 bn oil & gas deal
NEW DELHI: UK's BP Plc will buy 30 per cent stake in Reliance Industries' 23 oil and gas blocks including the giant KG-D6 gas fields off the east coast for USD 7.2 billion.
BP could further pay USD 1.8 billion "on exploration success that results in development of commercial discoveries," RIL said in a press statement.
The two firms will also enter into a 50:50 joint venture for sourcing and marketing of gas.
BP CEO Bob Dudley and RIL Chairman and Managing Director Mukesh Ambani will make a joint announcement later in the evening.
BP's combined investment including payments to Reliance could amount to USD 20 billion. Ambani and Dudle "signed the relationship framework and transactional agreements in London," the statement said.
"The partnership across the full value chain comprises BP taking a 30 per cent stake in 23 oil and gas production sharing contracts that Reliance operates in India.
This includes producing KG D6 block, and the formation of a 50:50 joint venture between the two companies for the sourcing and marketing of gas in India," it said.
The joint venture will also endeavour to accelerate the creation of infrastructure for receiving, transporting and marketing of natural gas in India.
Reliance said the partnership will combine BP's world class deepwater exploration and development capabilities with Reliance's project management and operations expertise.
"This partnership meets BP's strategy of forming alliances with strong national partners, taking material positions in significant hydrocarbon basins and increasing our exposure to growing energy markets," said Carl-Henric Svanberg, Chairman of BP.
The 23 oil and gas blocks together cover approximately 270,000 square kilometres. Reliance will continue to be operator of the blocks.
BP could further pay USD 1.8 billion "on exploration success that results in development of commercial discoveries," RIL said in a press statement.
The two firms will also enter into a 50:50 joint venture for sourcing and marketing of gas.
BP CEO Bob Dudley and RIL Chairman and Managing Director Mukesh Ambani will make a joint announcement later in the evening.
BP's combined investment including payments to Reliance could amount to USD 20 billion. Ambani and Dudle "signed the relationship framework and transactional agreements in London," the statement said.
"The partnership across the full value chain comprises BP taking a 30 per cent stake in 23 oil and gas production sharing contracts that Reliance operates in India.
This includes producing KG D6 block, and the formation of a 50:50 joint venture between the two companies for the sourcing and marketing of gas in India," it said.
The joint venture will also endeavour to accelerate the creation of infrastructure for receiving, transporting and marketing of natural gas in India.
Reliance said the partnership will combine BP's world class deepwater exploration and development capabilities with Reliance's project management and operations expertise.
"This partnership meets BP's strategy of forming alliances with strong national partners, taking material positions in significant hydrocarbon basins and increasing our exposure to growing energy markets," said Carl-Henric Svanberg, Chairman of BP.
The 23 oil and gas blocks together cover approximately 270,000 square kilometres. Reliance will continue to be operator of the blocks.
Apparel exports on course to hit $11 billion
Coimbatore: With apparel shipments hitting the $1-billion a month mark in December for the first time in nine months, garment makers are confident of achieving $11 billion in exports during the current financial year. That would 6% higher than the previous year.
"We are seeing signs of revival. The industry is poised for growth. China is having a lot of problems and wants to exit the mid and low-priced segments. So, buyers are taking a fresh look at India," said Premal Udani, chairman, Apparel Export Promotion Council (AEPC). Exports had shown growth only in four months during 2010 and declined 3.1% in April-December.
India is one of the few countries having capabilities across the textile value chain and "all these factors are working considerably in our favour now". China has a lion's share of the global textile trade with exports worth about $110 billion and even a 5% shift in favour of India would throw up huge opportunities, the AEPC chairman said.
Apparel would be one of the biggest beneficiaries of the free trade pact between India and Japan, he said. With the pact in place, India would be able to export garments at zero duty to Japan. Garment makers pay around 11% in duties now.
Exports to Japan is estimated to touch $125 million in the current fiscal and this could easily go up by another $50 million in the next fiscal, Udani said. Japan could easily become the third biggest importer of garments from India, he said. Growth in the domestic market has also risen sharply. The emergence of the domestic market, which is growing at double digit rates, has changed the situation for the better, he said.
Despite the revival, the industry is still facing challenges that include high cotton and yarn prices, low productivity and high taxes, Udani said. "If these issues are addressed we can grow by 30%."
Apparel industry keen on tapping NREGS
M Allirajan | tnn
AEPC is keen on tapping the National Rural Employment Guarantee Scheme. "We have written to the planning commission and the proposal is also with the textiles ministry," AEPC chairman Premal Udani said. Training in apparel making could be made part of NREGS for which the industry could contribute Rs 50 per worker per day, initially.
Once the worker is employed the industry would give an amount equivalent to the government's contribution to the scheme, he said. The government can take a base year for ascertaining the regular workforce in the apparel segment and for incremental jobs created by the industry NREGS funds can be provided, AEPC suggested. Though the industry is not facing labour shortage now, it would face problems once the domestic and export markets start growing at a faster pace, Udani said.
"We are seeing signs of revival. The industry is poised for growth. China is having a lot of problems and wants to exit the mid and low-priced segments. So, buyers are taking a fresh look at India," said Premal Udani, chairman, Apparel Export Promotion Council (AEPC). Exports had shown growth only in four months during 2010 and declined 3.1% in April-December.
India is one of the few countries having capabilities across the textile value chain and "all these factors are working considerably in our favour now". China has a lion's share of the global textile trade with exports worth about $110 billion and even a 5% shift in favour of India would throw up huge opportunities, the AEPC chairman said.
Apparel would be one of the biggest beneficiaries of the free trade pact between India and Japan, he said. With the pact in place, India would be able to export garments at zero duty to Japan. Garment makers pay around 11% in duties now.
Exports to Japan is estimated to touch $125 million in the current fiscal and this could easily go up by another $50 million in the next fiscal, Udani said. Japan could easily become the third biggest importer of garments from India, he said. Growth in the domestic market has also risen sharply. The emergence of the domestic market, which is growing at double digit rates, has changed the situation for the better, he said.
Despite the revival, the industry is still facing challenges that include high cotton and yarn prices, low productivity and high taxes, Udani said. "If these issues are addressed we can grow by 30%."
Apparel industry keen on tapping NREGS
M Allirajan | tnn
AEPC is keen on tapping the National Rural Employment Guarantee Scheme. "We have written to the planning commission and the proposal is also with the textiles ministry," AEPC chairman Premal Udani said. Training in apparel making could be made part of NREGS for which the industry could contribute Rs 50 per worker per day, initially.
Once the worker is employed the industry would give an amount equivalent to the government's contribution to the scheme, he said. The government can take a base year for ascertaining the regular workforce in the apparel segment and for incremental jobs created by the industry NREGS funds can be provided, AEPC suggested. Though the industry is not facing labour shortage now, it would face problems once the domestic and export markets start growing at a faster pace, Udani said.
MakeMyTrip acquires S'pore-based travel firm
New Delhi: MakeMyTrip.com (MMT) has acquired a 79 per cent stake in Singapore-based travel agency Luxury Tours & Travels Pte Ltd (LTT) for $3 million.
MMT will invest another $0.75 mn in the company, in one or more tranches until June 2012, for the subscription of new equity shares to be issued by LTT.
Further, MakeMyTrip will acquire from the existing shareholders their remaining shares in LTT, in three tranches over a three-year period ending June 2014. The payment under each such tranche will be made in cash, based on valuations linked to LTT’s profitability.
This deal will enable MakeMyTrip to strengthen its presence in Hong Kong, Thailand and Malaysia.
Luxury Tours & Travel Pte Ltd is engaged in the business of providing hotel reservations, excursion tours and other related services to inbound and outbound travelers in Singapore. It has tie-ups with over 100 hotels in Singapore, and around 25 in Southeast Asia.
Founded in 2000 by Deep Kalra, MakeMyTrip has 24x7 customer support and offices in 20 cities across India and two international offices, in New York and San Francisco. The company has private equity investors such as SAIF Partners, Helion Venture Partners and Sierra Ventures
Last year, in February, MMT acquired bus ticketing company Ticketvala.com and also raised $70-mn through an Initial Public Offer in the US.
MMT will invest another $0.75 mn in the company, in one or more tranches until June 2012, for the subscription of new equity shares to be issued by LTT.
Further, MakeMyTrip will acquire from the existing shareholders their remaining shares in LTT, in three tranches over a three-year period ending June 2014. The payment under each such tranche will be made in cash, based on valuations linked to LTT’s profitability.
This deal will enable MakeMyTrip to strengthen its presence in Hong Kong, Thailand and Malaysia.
Luxury Tours & Travel Pte Ltd is engaged in the business of providing hotel reservations, excursion tours and other related services to inbound and outbound travelers in Singapore. It has tie-ups with over 100 hotels in Singapore, and around 25 in Southeast Asia.
Founded in 2000 by Deep Kalra, MakeMyTrip has 24x7 customer support and offices in 20 cities across India and two international offices, in New York and San Francisco. The company has private equity investors such as SAIF Partners, Helion Venture Partners and Sierra Ventures
Last year, in February, MMT acquired bus ticketing company Ticketvala.com and also raised $70-mn through an Initial Public Offer in the US.
Cluster Pulse develops ICT cluster in Switzerland
Ahmedabad: Ahmedabad-based Cluster Pulse has successfully developed an information and communication technology (ICT) cluster of 23 IT start-ups in Switzerland. Known for its cluster development expertise, Cluster Pulse – an international trade consulting firm which is a group company of the city-based Global Network – had been working with start-ups for a year to set up an ICT cluster in Switzerland.
“We were contacted by Switzerland’s IT industry representatives to help them in developing an ICT cluster. We recently completed the cluster development project, which we believe will help these start-ups generate better business,” said Jagat Shah, chief executive officer of Global Network and Cluster Pulse.
The company has been working on similar projects in China, Uganda, Ghana and Canada. Under an agreement signed with these countries, Cluster Pulse will assist small and medium enterprises (SMEs) in these countries to develop fan, ICT, telecom and agricultural clusters, respectively. Representatives from these countries approached it after observing the company’s cluster development work.
Meanwhile, Cluster Pulse is also part of a $120 million (over Rs 500 crore) World Bank-led multi-agency project for financing and developing SMEs in India. Under the project, Cluster Pulse is in the process of offering business development services (BDS) by developing clusters of the engineering and machine tools industries of Rajkot in Gujarat.
“We were contacted by Switzerland’s IT industry representatives to help them in developing an ICT cluster. We recently completed the cluster development project, which we believe will help these start-ups generate better business,” said Jagat Shah, chief executive officer of Global Network and Cluster Pulse.
The company has been working on similar projects in China, Uganda, Ghana and Canada. Under an agreement signed with these countries, Cluster Pulse will assist small and medium enterprises (SMEs) in these countries to develop fan, ICT, telecom and agricultural clusters, respectively. Representatives from these countries approached it after observing the company’s cluster development work.
Meanwhile, Cluster Pulse is also part of a $120 million (over Rs 500 crore) World Bank-led multi-agency project for financing and developing SMEs in India. Under the project, Cluster Pulse is in the process of offering business development services (BDS) by developing clusters of the engineering and machine tools industries of Rajkot in Gujarat.
Indian IT firms go to US campuses to hire local US talent
Bangalore: After years of hiring experienced professionals to serve top customers in the US, Indian tech firms are now seeking to hire fresh engineering graduates from American universities, as stricter immigration norms and high unemployment rate make local hiring attractive in the country.
In a year when India’s top outsourcing firms are under pressure to position themselves as more global companies not necessarily responsible for America’s ‘jobless economic recovery’, experts and company officials say a war for local US talent is set to become a priority.
Apart from stricter and costlier visa permits in the US, outsourcing customers such as GE are also asking Indian vendors to play a role in addressing high unemployment rates.
India-based tech firms including Wipro, Tata Consultancy Services , Infosys and Cognizant are now battling it out to hire hundreds of fresh engineering graduates from campuses of Pennsylvania State University , Rutgers, University of Massachusetts , University of Connecticut , North Carolina State University and University of Michigan , among many others.
Companies such as Infosys, which counts JP Morgan among its top customers, say they have started hiring from US campuses.
“We have a target of hiring 250 local employees every quarter in the US for the next four quarters,” said S Gopalakrishnan,
CEO of Infosys. “As we develop our consulting and systems integration services, we need to hire more at all levels in the United States. Brand recall for companies like ours is improving every year, we are slowly getting there,” he said.
US talent pool much smaller
“There is no big cost difference because we have to pay American salaries even to our Indian employees going there,” he added.
However, unlike India, which produces nearly 600,000 engineering graduates every year, the US pool is much smaller, ensuring a much more intense fight for whatever talent is available.
“Though IT is a popular choice, compared to Indian colleges, the pool of students looking out for a career in IT is smaller and all tech firms are tapping into this pool; so definitely, the war for talent is there,” said Priti Rajora , global head, talent acquisition, Wipro Technologies .
On their part, India’s top outsourcing companies TCS, Infosys, Wipro and HCL have already started setting up development centres in locations such as Atlanta and Michigan. While TCS aims to double its foreign workforce from 10,000 currently to 20,000 over the next five years, Infosys and Wipro could see non-Indians account for 10-15% of their total employee base in next 3-5 years, from around 5% currently.
In a year when India’s top outsourcing firms are under pressure to position themselves as more global companies not necessarily responsible for America’s ‘jobless economic recovery’, experts and company officials say a war for local US talent is set to become a priority.
Apart from stricter and costlier visa permits in the US, outsourcing customers such as GE are also asking Indian vendors to play a role in addressing high unemployment rates.
India-based tech firms including Wipro, Tata Consultancy Services , Infosys and Cognizant are now battling it out to hire hundreds of fresh engineering graduates from campuses of Pennsylvania State University , Rutgers, University of Massachusetts , University of Connecticut , North Carolina State University and University of Michigan , among many others.
Companies such as Infosys, which counts JP Morgan among its top customers, say they have started hiring from US campuses.
“We have a target of hiring 250 local employees every quarter in the US for the next four quarters,” said S Gopalakrishnan,
CEO of Infosys. “As we develop our consulting and systems integration services, we need to hire more at all levels in the United States. Brand recall for companies like ours is improving every year, we are slowly getting there,” he said.
US talent pool much smaller
“There is no big cost difference because we have to pay American salaries even to our Indian employees going there,” he added.
However, unlike India, which produces nearly 600,000 engineering graduates every year, the US pool is much smaller, ensuring a much more intense fight for whatever talent is available.
“Though IT is a popular choice, compared to Indian colleges, the pool of students looking out for a career in IT is smaller and all tech firms are tapping into this pool; so definitely, the war for talent is there,” said Priti Rajora , global head, talent acquisition, Wipro Technologies .
On their part, India’s top outsourcing companies TCS, Infosys, Wipro and HCL have already started setting up development centres in locations such as Atlanta and Michigan. While TCS aims to double its foreign workforce from 10,000 currently to 20,000 over the next five years, Infosys and Wipro could see non-Indians account for 10-15% of their total employee base in next 3-5 years, from around 5% currently.
Domestic car sales grow by 26% in January 2011
New Delhi: The domestic passenger car sales witnessed an increase of 26.28 per cent to 184,332 units in January 2011 from 145,971 units in January 2010, according to data released by the Society of Indian Automobile Manufacturers (SIAM).
The motorcycle sales registered a growth of 14.94 per cent during the month, increasing from 650,633 units in January 2010 to 747,818 units in the first month of 2011. The total two-wheeler sales in January increased by 17.55 per cent to 980,752 units from 834,343 units in January 2010.
Sales of commercial vehicles also saw an upsurge by 12.58 per cent to 60,753 units in January 2011 from 53,963 units in the same month last year.
Total sales of vehicles across categories registered a growth of 18.69 per cent to 13,22,979 units in January as against 11,14,692 units in the year-ago period.
The motorcycle sales registered a growth of 14.94 per cent during the month, increasing from 650,633 units in January 2010 to 747,818 units in the first month of 2011. The total two-wheeler sales in January increased by 17.55 per cent to 980,752 units from 834,343 units in January 2010.
Sales of commercial vehicles also saw an upsurge by 12.58 per cent to 60,753 units in January 2011 from 53,963 units in the same month last year.
Total sales of vehicles across categories registered a growth of 18.69 per cent to 13,22,979 units in January as against 11,14,692 units in the year-ago period.
'Computer market grew 30% in 2010'
New Delhi: India's personal computer market grew 30% in 2010 — the highest since 2007, research firm IDC revealed. Hewlett Packard emerged the top company in India, leading in both notebook and desktop categories. HP regained market leadership after two quarters with a 17.3% market share, taking the pole position from Dell Inc that got 14.2% of the market.
Taiwan’s Acer followed the two with 11.5% market share. Notebooks were the hottest selling category with sales growing by 49% between October and December 2010 compared to the previous year. More than 10 lakh notebooks were sold in the 2010 fourth quarter. HP grabbed the largest market share of 26.2% while Dell and Acer secured second and third places.
Nearly 25 lakh personal computers were shipped to Indian consumers, pushing up the overall sales by 26%. IDC India’s lead PC analyst Sumanta Mukherjee noted sales in 2010 to be far better than ‘dismal’ 2009. “Consumers are the main architects of this recovery, supported by renewed buying sentiments displayed by the SMB and government segments,” he said. But warned that sales of Atom processor-based mini notebooks could come under increasing pressure, as competitive offerings of rivals start becoming available in March 2011.
“Emergence of media tablets will also impact this category in the long run,” he said. Around 14.5 lakh desktop PC units were sold in the fourth quarter last calender year, a 14% increase over 2009. HP held the lead in desktop PC sales with 10.86% of the market, followed by HCL with 10.78% and Acer at the third spot.
Taiwan’s Acer followed the two with 11.5% market share. Notebooks were the hottest selling category with sales growing by 49% between October and December 2010 compared to the previous year. More than 10 lakh notebooks were sold in the 2010 fourth quarter. HP grabbed the largest market share of 26.2% while Dell and Acer secured second and third places.
Nearly 25 lakh personal computers were shipped to Indian consumers, pushing up the overall sales by 26%. IDC India’s lead PC analyst Sumanta Mukherjee noted sales in 2010 to be far better than ‘dismal’ 2009. “Consumers are the main architects of this recovery, supported by renewed buying sentiments displayed by the SMB and government segments,” he said. But warned that sales of Atom processor-based mini notebooks could come under increasing pressure, as competitive offerings of rivals start becoming available in March 2011.
“Emergence of media tablets will also impact this category in the long run,” he said. Around 14.5 lakh desktop PC units were sold in the fourth quarter last calender year, a 14% increase over 2009. HP held the lead in desktop PC sales with 10.86% of the market, followed by HCL with 10.78% and Acer at the third spot.
London partners with Indian banks for rural development
New Delhi/ Chandigarh: With the focus on enterprise development activities and to make the rural masses self-sustainable, the Commonwealth Secretariat, London, has partnered with public sector banks Corporation Bank and Central Bank of India to provide credit to young people, women and differently-abled youth living in rural areas of India.
While the Commonwealth Secretariat will provide mentoring, capacity building, monitoring and evaluation to the rural young entrepreneurs, the Banks will fund the projects. The Commonwealth-Central Bank of India-Corporation Bank-Youth Enterprise financing programme will create 1,500 jobs in the first phase.
Speaking to Business Standard, Commonwealth Secretariat (London) Advisor Ram Venuprasad said, “We partnered with Central Bank of India and Corporation Bank aimed at helping young people establish and develop their small businesses. The Bank would offer concessional loan rates to youth for enterprise development activities. We will support the bank’s funding through providing technical assistance to ensure entrepreneurs develop sufficient capacity in running sustainable businesses”.
He added, “This programme will act as a model for other Commonwealth countries in demonstrating a sustainable method of ensuring young people have access to finance. Under this programme, Corporation Bank has sanctioned Rs 14 crore and Central Bank of India has offered Rs 5 crore for the first project”.
He added, “Our focus is youth and converting them from job seekers to job creators. Basically, we would be imparting training to rural youth and women in agro-processing, tourism, services sector and others”. He was in the city along with 75 delegates representing 35 nations to attend ‘Eleventh Commonwealth-India Small Business Competitiveness Development Program. We are going to work with Corporation Bank in six districts namely Uddipi and Chickmagalur in Karnataka, Madurai (Tamil Nadu), Hyderabad, Sirmour (Himachal Pradesh) and Sahu ji Maharaj Nagar in Uttar Pradesh. Further, Central Bank is working in four districts with Commonwealth Secretariat namely Sawai Madhopur in Rajasthan, Ernakulum in Kerala, Musheerdabad in West Bengal and Shahu ji Maharaj Nagar in Uttar Pradesh.
Earlier, Central Bank of India CMD S Sridhar told Business Standard, “For the developing countries, I think micro, small and medium enterprise (MSME) development is the most important sector. For one, it provides employment and is also very important for inclusive socio-economic growth. Under the programme (youth enterprise development programme). we would sanction 80 projects”.
While the Commonwealth Secretariat will provide mentoring, capacity building, monitoring and evaluation to the rural young entrepreneurs, the Banks will fund the projects. The Commonwealth-Central Bank of India-Corporation Bank-Youth Enterprise financing programme will create 1,500 jobs in the first phase.
Speaking to Business Standard, Commonwealth Secretariat (London) Advisor Ram Venuprasad said, “We partnered with Central Bank of India and Corporation Bank aimed at helping young people establish and develop their small businesses. The Bank would offer concessional loan rates to youth for enterprise development activities. We will support the bank’s funding through providing technical assistance to ensure entrepreneurs develop sufficient capacity in running sustainable businesses”.
He added, “This programme will act as a model for other Commonwealth countries in demonstrating a sustainable method of ensuring young people have access to finance. Under this programme, Corporation Bank has sanctioned Rs 14 crore and Central Bank of India has offered Rs 5 crore for the first project”.
He added, “Our focus is youth and converting them from job seekers to job creators. Basically, we would be imparting training to rural youth and women in agro-processing, tourism, services sector and others”. He was in the city along with 75 delegates representing 35 nations to attend ‘Eleventh Commonwealth-India Small Business Competitiveness Development Program. We are going to work with Corporation Bank in six districts namely Uddipi and Chickmagalur in Karnataka, Madurai (Tamil Nadu), Hyderabad, Sirmour (Himachal Pradesh) and Sahu ji Maharaj Nagar in Uttar Pradesh. Further, Central Bank is working in four districts with Commonwealth Secretariat namely Sawai Madhopur in Rajasthan, Ernakulum in Kerala, Musheerdabad in West Bengal and Shahu ji Maharaj Nagar in Uttar Pradesh.
Earlier, Central Bank of India CMD S Sridhar told Business Standard, “For the developing countries, I think micro, small and medium enterprise (MSME) development is the most important sector. For one, it provides employment and is also very important for inclusive socio-economic growth. Under the programme (youth enterprise development programme). we would sanction 80 projects”.
India, Malaysia ink trade pact
New Delhi: India and Malaysia signed a Comprehensive Economic Cooperation Agreement (CECA) today, aiming in the short term to boost bilateral trade to $15 billion by 2015 from $9 billion now. The trade agreement would result in tariff reduction for goods ranging from bananas to basmati rice and easier movement of software engineers and doctors.
The agreement, to take effect from July 1, was signed in Putrajaya city adjoining Kuala Lumpur between commerce and industry minister Anand Sharma and Malaysia’s minister for international trade & industry, Mustapa Mohamed. Malaysian prime minister Mohd Najib Razak was present during the event.
“The India-Malaysia CECA is a comprehensive and ambitious agreement that envisages liberal trade in goods and services and a stable and competitive investment regime to promote foreign investment between the two countries. The goods package under the CECA takes the tariff liberalisation beyond the India-Asean FTA commitments on items of mutual interest for both the countries,” stated an official statement by the ministry of commerce and industry.
This agreement covers trade in goods, services, investment and economic cooperation. Malaysia is a key member in the Association of South East Asian Nations (Asean) grouping, with which India signed a goods agreement in August 2009. A negotiation to have a deal in services with Asean is currently underway.
Asean comprises Malaysia, Indonesia, Singapore, Philippines, Thailand, Brunei, Vietnam, Laos, Myanmar and Cambodia.
“We expect the CECA with Malaysia will particularly benefit India’s services sector. As we have not seen much progress in services under the umbrella agreement with Asean, having bilateral deals with member-countries covering trade in services and investment simultaneously with trade in goods is a smart strategy,” said Amit Mitra, secretary general, Ficci.
India is to obtain greater access to Malaysian markets for mangoes, bananas guavas, basmati rice, two-wheelers and cotton garments. In services, professionals can look forward to easier visa norms from several sectors such as accounting and auditing, architecture, urban planning, engineering services, medical and dental, information technology and enabled services, and management consulting services.
Malaysia has also allowed 50 per cent foreign direct investment in construction companies in the deal, benefiting Indian real estate firms looking to venture there, besides enabling greater job opportunities for Indian architects and interior designers.
This is a significant achievement for India as Malaysia has a policy – Bumiputra - which mandates 30 per cent equity participation by local firms.
“Malaysia is one of the major investors in India. It can be a major source for tapping our investment need in infrastructure development projects,” said Ramu S. Deora, president, Federation of Indian Export Organisations.
The agreement, to take effect from July 1, was signed in Putrajaya city adjoining Kuala Lumpur between commerce and industry minister Anand Sharma and Malaysia’s minister for international trade & industry, Mustapa Mohamed. Malaysian prime minister Mohd Najib Razak was present during the event.
“The India-Malaysia CECA is a comprehensive and ambitious agreement that envisages liberal trade in goods and services and a stable and competitive investment regime to promote foreign investment between the two countries. The goods package under the CECA takes the tariff liberalisation beyond the India-Asean FTA commitments on items of mutual interest for both the countries,” stated an official statement by the ministry of commerce and industry.
This agreement covers trade in goods, services, investment and economic cooperation. Malaysia is a key member in the Association of South East Asian Nations (Asean) grouping, with which India signed a goods agreement in August 2009. A negotiation to have a deal in services with Asean is currently underway.
Asean comprises Malaysia, Indonesia, Singapore, Philippines, Thailand, Brunei, Vietnam, Laos, Myanmar and Cambodia.
“We expect the CECA with Malaysia will particularly benefit India’s services sector. As we have not seen much progress in services under the umbrella agreement with Asean, having bilateral deals with member-countries covering trade in services and investment simultaneously with trade in goods is a smart strategy,” said Amit Mitra, secretary general, Ficci.
India is to obtain greater access to Malaysian markets for mangoes, bananas guavas, basmati rice, two-wheelers and cotton garments. In services, professionals can look forward to easier visa norms from several sectors such as accounting and auditing, architecture, urban planning, engineering services, medical and dental, information technology and enabled services, and management consulting services.
Malaysia has also allowed 50 per cent foreign direct investment in construction companies in the deal, benefiting Indian real estate firms looking to venture there, besides enabling greater job opportunities for Indian architects and interior designers.
This is a significant achievement for India as Malaysia has a policy – Bumiputra - which mandates 30 per cent equity participation by local firms.
“Malaysia is one of the major investors in India. It can be a major source for tapping our investment need in infrastructure development projects,” said Ramu S. Deora, president, Federation of Indian Export Organisations.
Bigger opportunity in India's smaller cities
Mumbai: Smaller cities are scoring over metros in terms of growing urbanisation, and cities such as Jalandhar, Aurangabad, Bhubhaneshwar, Agra and Raipur are believed to be the next ‘cities of opportunities’.
According to the latest Morgan Stanley research report, ‘AlphaWise City Vibrancy Index: A Guide to India’s Urbanization’, households in these cities earn more than India’s average urban household.
Centre for Monitoring Indian Economy (CMIE) pegs the quarterly average household income at about Rs 45,000 per urban household, whereas in cities such as Jalandhar, Bhubaneswar, Guwahati and Aurangabad have a quarterly average household income of above Rs 65,000.
The report measures the key drivers of urbanisation such as physical infrastructure, financial penetration, consumer services and job listings in the top 200 cities (by population) in India. The vibrancy index is aimed at helping investors evaluate companies’ strategic positioning in urban centers and monitor sector trends.
Urbanisation is important to the process of city formation and building India’s competitive strength in the global markets, feels Ridham Desai, head of India research and India strategist at Morgan Stanley. “The relative performance of components of the vibrancy index could give us insight into potential for urbanisation. For example, a city’s rate of urbanisation may be low but it may be (that) financial penetration may be high. This gives us potential for consumer services or job creation in that city,” says Desai.
According to the latest Morgan Stanley research report, ‘AlphaWise City Vibrancy Index: A Guide to India’s Urbanization’, households in these cities earn more than India’s average urban household.
Centre for Monitoring Indian Economy (CMIE) pegs the quarterly average household income at about Rs 45,000 per urban household, whereas in cities such as Jalandhar, Bhubaneswar, Guwahati and Aurangabad have a quarterly average household income of above Rs 65,000.
The report measures the key drivers of urbanisation such as physical infrastructure, financial penetration, consumer services and job listings in the top 200 cities (by population) in India. The vibrancy index is aimed at helping investors evaluate companies’ strategic positioning in urban centers and monitor sector trends.
Urbanisation is important to the process of city formation and building India’s competitive strength in the global markets, feels Ridham Desai, head of India research and India strategist at Morgan Stanley. “The relative performance of components of the vibrancy index could give us insight into potential for urbanisation. For example, a city’s rate of urbanisation may be low but it may be (that) financial penetration may be high. This gives us potential for consumer services or job creation in that city,” says Desai.
India, Japan target $25-bn trade by '14
New Delhi: India and Japan have set a target of achieving $25 billion worth of bilateral trade by 2014 from the present $10.3 billion even as both countries have signed the much-awaited Comprehensive Economic Partnership Agreement (Cepa) that will see about 94 per cent tariff reduction in goods ranging from cars to shrimps and easier movement of nurses and chefs.
The deal was signed between Commerce and Industry Minister Anand Sharma and Japanese Foreign Minister Seiji Maehara in Tokyo. It was formally agreed upon by Prime Minister Manmohan Singh and his Japanese counterpart Naoto Kan last year in October.
“India stands to gain significantly through this agreement and 90 per cent of tariff lines are covered while Japan has covered 5 per cent more lines than India. The agreement has ensured that the sensitive sectors for India are fully protected. These include agriculture, fruits, spices, wheat, basmati rice, edible oils, wines and spirits and also certain categories of industrial products such as auto and auto parts,” said an official statement by the ministry of commerce and industry.
On a trade value basis, while Japan has agreed to 97 per cent tariff reduction in trade in goods, India has consented for 90 per cent duty abolition, according to the Embassy of Japan’s communiqué. The number of Japanese firms in India has doubled in last three years taking the total investments from Japan to India to more than 800 billion Yen, according to Japanese official data.
However, as a result of this deal companies from both countries such as Mitsubishi Religare Enterprises Ltd, Heavy Industries, Toshiba, Dai-Ichi, JSW, Hitachi, L&T, NTPC, Panasonic, Sony and Marubeni India Pvt would stand to gain.
Besides getting a liberal access to Japan’s $5 trillion economy, India would also now be able to access the Japanese pharmaceutical sector while imports of petrochemicals, chemicals, textile, readymade garments, cement and jewellery would be cheaper.
Japan has also agreed to give same treatment to the Indian generics in line with its domestic pharmaceutical industry.
On several farm products, forest items and marine products such as lumbers, shrimps and prawns, durian and asparagus, there would 3-6 per cent tariff reduction immediately after the agreement comes into force by April 1.
In other agriculture and marine commodities such as black tea, frozen octopus, capsicum, curry and sweet corn, Chinese yam, peach and strawberries, tariffs would be gradually reduced in the next 7-10 years.
In industrial goods, elimination of duties in auto parts such as diesel engines and gear boxes would be done over a period of 10 years. Similarly, duties would be reduced by about 94 per cent in DVD players, video cameras and steel sheets, plates and alloys within the next 5-10 years.
“As the majority of Japan’s non-agricultural tariff lines will see immediate duty elimination for exports from India, with a strategic approach, India can significantly improve its share in Japan’s total imports from the existing low level of 0.7 per cent. India also stands to benefit in services,” highlighted Secretary General, Federation of Indian Chambers of Commerce and Industry (FICCI), Amit Mitra. As part of the trade in services, both countries would soon be establishing a social-security agreement, specifically for Indian qualified nurses and Japanese certified care-workers. This agreement is expected to be signed by 2014, the consultations for which have already begun this year in January.
Under Cepa, Japan has also agreed to provide liberalised access for Indian professionals and service providers such as chefs, nurses, English language teachers, accountants, advertisers and tourist guides.
“The trade relationship between our two countries has been far below its true potential. We are certain that Cepa will lead to a quantum increase in bilateral trade and investment flows, by relaxing barriers to trade in goods, services and movement of natural persons, besides enhanced cooperation on protection of intellectual property,” said President, Confederation of Indian Industry (CII), Hari S Bhartia from Tokyo.
Both countries would be creating a sub-committee that would explore the feasibility of a Mutual Recognition Arrangement (MRAs) for certain specific sectors such as electrical products, telecommunications and radio equipment among others. The sub-committee would be meeting within three months from the implementation of Cepa.
India and Japan have also agreed to the creation of a joint revolving fund of $9 billion for kick-starting the ambitious 1483-km-long Delhi-Mumbai Industrial Corridor Project running through six states of Delhi, Uttar Pradesh, Haryana, Rajasthan, Gujarat and Maharashtra.
The India-Japan global partnership summit would also take place in Tokyo from September 5-7 to promote collaboration and increase investments between both the countries.
The deal was signed between Commerce and Industry Minister Anand Sharma and Japanese Foreign Minister Seiji Maehara in Tokyo. It was formally agreed upon by Prime Minister Manmohan Singh and his Japanese counterpart Naoto Kan last year in October.
“India stands to gain significantly through this agreement and 90 per cent of tariff lines are covered while Japan has covered 5 per cent more lines than India. The agreement has ensured that the sensitive sectors for India are fully protected. These include agriculture, fruits, spices, wheat, basmati rice, edible oils, wines and spirits and also certain categories of industrial products such as auto and auto parts,” said an official statement by the ministry of commerce and industry.
On a trade value basis, while Japan has agreed to 97 per cent tariff reduction in trade in goods, India has consented for 90 per cent duty abolition, according to the Embassy of Japan’s communiqué. The number of Japanese firms in India has doubled in last three years taking the total investments from Japan to India to more than 800 billion Yen, according to Japanese official data.
However, as a result of this deal companies from both countries such as Mitsubishi Religare Enterprises Ltd, Heavy Industries, Toshiba, Dai-Ichi, JSW, Hitachi, L&T, NTPC, Panasonic, Sony and Marubeni India Pvt would stand to gain.
Besides getting a liberal access to Japan’s $5 trillion economy, India would also now be able to access the Japanese pharmaceutical sector while imports of petrochemicals, chemicals, textile, readymade garments, cement and jewellery would be cheaper.
Japan has also agreed to give same treatment to the Indian generics in line with its domestic pharmaceutical industry.
On several farm products, forest items and marine products such as lumbers, shrimps and prawns, durian and asparagus, there would 3-6 per cent tariff reduction immediately after the agreement comes into force by April 1.
In other agriculture and marine commodities such as black tea, frozen octopus, capsicum, curry and sweet corn, Chinese yam, peach and strawberries, tariffs would be gradually reduced in the next 7-10 years.
In industrial goods, elimination of duties in auto parts such as diesel engines and gear boxes would be done over a period of 10 years. Similarly, duties would be reduced by about 94 per cent in DVD players, video cameras and steel sheets, plates and alloys within the next 5-10 years.
“As the majority of Japan’s non-agricultural tariff lines will see immediate duty elimination for exports from India, with a strategic approach, India can significantly improve its share in Japan’s total imports from the existing low level of 0.7 per cent. India also stands to benefit in services,” highlighted Secretary General, Federation of Indian Chambers of Commerce and Industry (FICCI), Amit Mitra. As part of the trade in services, both countries would soon be establishing a social-security agreement, specifically for Indian qualified nurses and Japanese certified care-workers. This agreement is expected to be signed by 2014, the consultations for which have already begun this year in January.
Under Cepa, Japan has also agreed to provide liberalised access for Indian professionals and service providers such as chefs, nurses, English language teachers, accountants, advertisers and tourist guides.
“The trade relationship between our two countries has been far below its true potential. We are certain that Cepa will lead to a quantum increase in bilateral trade and investment flows, by relaxing barriers to trade in goods, services and movement of natural persons, besides enhanced cooperation on protection of intellectual property,” said President, Confederation of Indian Industry (CII), Hari S Bhartia from Tokyo.
Both countries would be creating a sub-committee that would explore the feasibility of a Mutual Recognition Arrangement (MRAs) for certain specific sectors such as electrical products, telecommunications and radio equipment among others. The sub-committee would be meeting within three months from the implementation of Cepa.
India and Japan have also agreed to the creation of a joint revolving fund of $9 billion for kick-starting the ambitious 1483-km-long Delhi-Mumbai Industrial Corridor Project running through six states of Delhi, Uttar Pradesh, Haryana, Rajasthan, Gujarat and Maharashtra.
The India-Japan global partnership summit would also take place in Tokyo from September 5-7 to promote collaboration and increase investments between both the countries.
Indian-origin doctor Srinivasan Madhusudan given UK honour
New Delhi: Srinivasan Madhusudan, a doctor of Indian-origin, has received the Goulstonian lectureship for 2011 by the Royal College of Physicians, London. The lecturership, which dates back to 1635, is one of the most prestigious ones, and considered as the highest honour that can be awarded for academic excellence.
Dr Madhusudan received his Bachelor of Medicine and Bachelor of Surgery (MBBS) from Dr MGR Medical University, Tamil Nadu, in 1994. He currently serves as the Clinical Associate Professor in Medical Oncology at the School of Molecular Medical Sciences and is a Consultant Medical Oncologist at Nottingham Cancer Centre .
Dr Madhusudan will deliver the lecture later in 2011. The lecture will be on his translational research targeting DNA base excision repair, an innovative approach for personalised cancer therapy.
Dr Madhusudan received his Bachelor of Medicine and Bachelor of Surgery (MBBS) from Dr MGR Medical University, Tamil Nadu, in 1994. He currently serves as the Clinical Associate Professor in Medical Oncology at the School of Molecular Medical Sciences and is a Consultant Medical Oncologist at Nottingham Cancer Centre .
Dr Madhusudan will deliver the lecture later in 2011. The lecture will be on his translational research targeting DNA base excision repair, an innovative approach for personalised cancer therapy.
Indian doctor awarded for community service
New York: Dr Shuvendu Sen, MD has recently received the 2011 Oscar Edwards E. Award from American College of Physicians (ACP) in North Carolina for outstanding contributions to Community. Presently, attending Physician of Internal Medicine at Betsy Johnson Hospital, North Carolina, Dr Sen has been instrumental in the implementation of a voluntary organization called Project Access in his County for the treatment of uninsured and low income population.
Sen was awarded at the Washington Inn, Duke University, North Carolina by the ACP Governor Byron Hoffman Jr, MD on Jan 28th,2011. He is currently serving as the Chief Editor of a medical text book titled Principles of Clinical Medicine, to be published in 2012.
Sen was awarded at the Washington Inn, Duke University, North Carolina by the ACP Governor Byron Hoffman Jr, MD on Jan 28th,2011. He is currently serving as the Chief Editor of a medical text book titled Principles of Clinical Medicine, to be published in 2012.
Asba now mandatory for institutions, HNIs
Mumbai: In his last press conference as chairman of the Securities & Exchange Board of India, C B Bhave extended the scope of some market reforms he initiated when entering office three years ago.
Asba, or applications supported by blocked amount, has been made mandatory for qualified institutional buyers and high net-worth investors when applying for public or rights issues. Bhave had introduced Asba in the second board meet that he chaired in May 2008 after assuming office in February that year.
“After taking into account the feedback received from market participants, it has been decided that Asba will be mandatory for the non-retail segment from May 1 onwards,” said Bhave while addressing the media here on Monday.
Under Asba, an applicant can submit a bid, even as the money remains in the bank account. The money is debited only at the time shares are allotted. This eliminates delays related to refunds, speeding up the whole process. While the facility was initially available only for retail applicants, it was extended to institutional investors in April 2010.
When asked if Asba would be made mandatory for retail investors, too, Bhave said, “A decision would be taken based on a review of the current change.”
Expectedly, the media interaction after the Sebi board meeting on Mon day started off on a nostalgic note. “All of us must remember that Sebi is an institution. Chairmen come and chairmen go. Sebi as an institution has only progressed since 1992, when it was first formed. This is a journey of the institution,” said the seventh chairman of the market regulator. Bhave is due to retire on February 17.
Sebi does not want interested shareholders, including promoters, to vote on special resolutions and will forward this recommendation to the ministry of company affairs. The recommendation, which has its roots in the Satyam fraud, calls for amending Clause 166 of the Companies Bill, 2009.
“You may recall, during the talks of amalgamation of Maytas and Satyam, questions were raised on whether Satyam shareholders, who are interested in this transaction, should be allowed to vote or not. That amalgamation never took place, but this point was definitely raised,” explained Bhave.
“This will protect small and diversified shareholders in listed companies from abusive related-party transactions. This view was taken based on the learning from the investigation into the matter of Satyam,” said a Sebi release.
Sebi has also decided to bring in uniformity in the period of initial registration granted to market participants. The initial registration will be for a period of five years.
Thereafter, based on a performance assessment, permanent registration will be granted. “(Intermediaries) should not be required to come time and again,” said Bhave, while explaining the rationale.
Sebi has also decided the currency derivatives segment would have self-clearing members that have a net worth of Rs 5 crore.
The Sebi board decided to defer a final decision on the proposed Takeover Code, as the government is still in the process of talking to industry participants on some recommendations. The Takeover Code was sent to Sebi in July 2010.
The board also did not take up the pending issue of the Bimal Jalan report, as Sebi is still not through analysing feedback from market participants. “Comments have come to us. These comments are being collated by the department. That issue was not taken at this meeting at all,” he said.
Asba, or applications supported by blocked amount, has been made mandatory for qualified institutional buyers and high net-worth investors when applying for public or rights issues. Bhave had introduced Asba in the second board meet that he chaired in May 2008 after assuming office in February that year.
“After taking into account the feedback received from market participants, it has been decided that Asba will be mandatory for the non-retail segment from May 1 onwards,” said Bhave while addressing the media here on Monday.
Under Asba, an applicant can submit a bid, even as the money remains in the bank account. The money is debited only at the time shares are allotted. This eliminates delays related to refunds, speeding up the whole process. While the facility was initially available only for retail applicants, it was extended to institutional investors in April 2010.
When asked if Asba would be made mandatory for retail investors, too, Bhave said, “A decision would be taken based on a review of the current change.”
Expectedly, the media interaction after the Sebi board meeting on Mon day started off on a nostalgic note. “All of us must remember that Sebi is an institution. Chairmen come and chairmen go. Sebi as an institution has only progressed since 1992, when it was first formed. This is a journey of the institution,” said the seventh chairman of the market regulator. Bhave is due to retire on February 17.
Sebi does not want interested shareholders, including promoters, to vote on special resolutions and will forward this recommendation to the ministry of company affairs. The recommendation, which has its roots in the Satyam fraud, calls for amending Clause 166 of the Companies Bill, 2009.
“You may recall, during the talks of amalgamation of Maytas and Satyam, questions were raised on whether Satyam shareholders, who are interested in this transaction, should be allowed to vote or not. That amalgamation never took place, but this point was definitely raised,” explained Bhave.
“This will protect small and diversified shareholders in listed companies from abusive related-party transactions. This view was taken based on the learning from the investigation into the matter of Satyam,” said a Sebi release.
Sebi has also decided to bring in uniformity in the period of initial registration granted to market participants. The initial registration will be for a period of five years.
Thereafter, based on a performance assessment, permanent registration will be granted. “(Intermediaries) should not be required to come time and again,” said Bhave, while explaining the rationale.
Sebi has also decided the currency derivatives segment would have self-clearing members that have a net worth of Rs 5 crore.
The Sebi board decided to defer a final decision on the proposed Takeover Code, as the government is still in the process of talking to industry participants on some recommendations. The Takeover Code was sent to Sebi in July 2010.
The board also did not take up the pending issue of the Bimal Jalan report, as Sebi is still not through analysing feedback from market participants. “Comments have come to us. These comments are being collated by the department. That issue was not taken at this meeting at all,” he said.
India ratifies double taxation avoidance pacts with SAARC
NEW DELHI: India has ratified the new Double Taxation Avoidance Agreements with SAARC nations taking forward its efforts to track and unearth black money. The revised treaties will come into effect from next fiscal, according to a government notification.
"The central government hereby directs that all the provisions of the said agreement shall be given effect to in the Union of India with effect from 1st day of April, 2011," the official government Gazette notification said. According to the notification, the new agreement will apply to persons who are residents of one or more member states.
However, the notification said SAARC limited multilateral agreement on avoidance of double taxation and mutual administrative assistance in tax matters shall be applicable only in the member states where an adequate direct tax structure is in place. "In case of a member state where such a structure is not in place, this agreement shall become effective from the date on which such a member state introduces a proper direct tax structure and notifies the SAARC secretariat to this effect," the gazette notification said.
India is in the process of negotiating DTAA with 65 countries. This is to broaden the scope of article concerning exchange of information, specifically regarding banking and taxpayers not covered earlier.
Finance minister Pranab Mukherjee had recently unveiled a five pronged strategy to check and curb black money in the country. He said DTAA and Exchange of Taxation Information Agreement are two instruments under which information can be obtained and that the government has already amended pacts with 23 countries to get information from various banks.
"The central government hereby directs that all the provisions of the said agreement shall be given effect to in the Union of India with effect from 1st day of April, 2011," the official government Gazette notification said. According to the notification, the new agreement will apply to persons who are residents of one or more member states.
However, the notification said SAARC limited multilateral agreement on avoidance of double taxation and mutual administrative assistance in tax matters shall be applicable only in the member states where an adequate direct tax structure is in place. "In case of a member state where such a structure is not in place, this agreement shall become effective from the date on which such a member state introduces a proper direct tax structure and notifies the SAARC secretariat to this effect," the gazette notification said.
India is in the process of negotiating DTAA with 65 countries. This is to broaden the scope of article concerning exchange of information, specifically regarding banking and taxpayers not covered earlier.
Finance minister Pranab Mukherjee had recently unveiled a five pronged strategy to check and curb black money in the country. He said DTAA and Exchange of Taxation Information Agreement are two instruments under which information can be obtained and that the government has already amended pacts with 23 countries to get information from various banks.
Ministry releases new guidelines for eco-zones around national parks
New Delhi: The environment ministry has come out with new guidelines to create eco-sensitive zones (ESZs) around the protected areas to prevent ecological damages caused due to developmental activities around national parks and wildlife sanctuaries.
The new ESZ guidelines, declared by the ministry on February 9, would also ensure that these areas act as “shock absorbers” to the protected areas by regulating and managing the activities around such areas. The guidelines were updated on the ministry website today. “It is prerequisite that an inventory of different land-use patterns and the different types of activities, types and number of industries operating around each of the protected areas be made,” the ministry said.
For this purpose, the ministry has asked all states to constitute a committee comprising the wildlife warden, an ecologist and a revenue department official of the area concerned to suggest the requirement of an eco-sensitive zone and its extent.
The panel could also suggest the best methods to manage such zones and broad-based thematic activities to be included in the master plan for the areas, which have been classified as prohibited, restricted with safeguards and permissible. The guidelines said activities, including commercial mining, setting of saw mills and industries causing pollution, commercial use of firewood and major hydropower projects, are prohibited in such areas.
It also prohibits tourism activities like flying over protected areas in an aircraft or hot air balloon, and discharge of effluents and solid waste in natural water bodies or terrestrial areas.
Felling of trees, drastic change in agriculture systems and commercial use of natural water resources, including groundwater harvesting and setting up of hotels and resorts, are the activities regulated in the areas.
Activities permitted in the areas include ongoing agriculture and horticulture practices by local communities, rainwater harvesting, organic farming, adoption of green technology and use of renewable energy sources.
The width of the ESZ and type of regulation may vary from protected area to area. However, as a general principle, the width of the ESZ could go up to 10 kms around the protected area. The ministry said all states and union territories were asked to forward site-specific proposals to set up ESZs. But only few states have forwarded the proposals. “This ministry after careful consideration, has therefore, decided to frame guidelines to facilitate the state/union territory for declaration of eco-sensitive zones around national parks and wild life sanctuaries.”
The new ESZ guidelines, declared by the ministry on February 9, would also ensure that these areas act as “shock absorbers” to the protected areas by regulating and managing the activities around such areas. The guidelines were updated on the ministry website today. “It is prerequisite that an inventory of different land-use patterns and the different types of activities, types and number of industries operating around each of the protected areas be made,” the ministry said.
For this purpose, the ministry has asked all states to constitute a committee comprising the wildlife warden, an ecologist and a revenue department official of the area concerned to suggest the requirement of an eco-sensitive zone and its extent.
The panel could also suggest the best methods to manage such zones and broad-based thematic activities to be included in the master plan for the areas, which have been classified as prohibited, restricted with safeguards and permissible. The guidelines said activities, including commercial mining, setting of saw mills and industries causing pollution, commercial use of firewood and major hydropower projects, are prohibited in such areas.
It also prohibits tourism activities like flying over protected areas in an aircraft or hot air balloon, and discharge of effluents and solid waste in natural water bodies or terrestrial areas.
Felling of trees, drastic change in agriculture systems and commercial use of natural water resources, including groundwater harvesting and setting up of hotels and resorts, are the activities regulated in the areas.
Activities permitted in the areas include ongoing agriculture and horticulture practices by local communities, rainwater harvesting, organic farming, adoption of green technology and use of renewable energy sources.
The width of the ESZ and type of regulation may vary from protected area to area. However, as a general principle, the width of the ESZ could go up to 10 kms around the protected area. The ministry said all states and union territories were asked to forward site-specific proposals to set up ESZs. But only few states have forwarded the proposals. “This ministry after careful consideration, has therefore, decided to frame guidelines to facilitate the state/union territory for declaration of eco-sensitive zones around national parks and wild life sanctuaries.”
Saturday, February 19, 2011
Etisalat keeps option to leave DB venture open
Etisalat, the $8.7 billion telecom major based in the UAE, may exit the joint venture it has with Dynamix Balawas (DB) group depending on the outcome of the investigation into the Rs 1,76,000 crore 2G spectrum scam. Etisalat is simultaneously in negotiations with telecom operators like Idea Cellular of Aditya Birla group and Reliance Communications (RCom) to pick up equity stake in either of them. Both of them have 3G spectrum. One thing that Etisalat has signalled is that it will continue to stay put in the Indian telecom market that offers opportunities as well as challenges.
Nokia Siemens Networks leads Indian 3G market
Nokia Siemens Networks has emerged as the leading 3G mobile infrastructure and services vendor in India with 30% market share. The company has won deals from Aircel, Bharti Airtel, Idea Cellular, Tata Teleservices and Vodafone for the deployment of 3G networks in twenty of the country's telecom circles. With the rapid growth of smart mobile devices in India, a strong 3G infrastructure will boost the country's broadband penetration. Nokia Siemens Networks recently demonstrated the world's first TD-LTE video call on 2.3GHz using commercial hardware in its Bengaluru R&D centre.
Thursday, February 10, 2011
Suzlon gets $1.28b order from Caparo
Mumbai: Suzlon Energy has received an order worth $1.28 billion for supply of wind turbines aggregating to 1,000 MW to Caparo Energy (India), the Pune-headquartered company said in a statement on Friday.
Caparo Energy, an independent power producer, plans to commission 500 MW by March 2012, and another 500 MW by March 2013 in India.
"Price of the turbines for the first 500 MW is fixed, while the next 500 MW would have index-based price so that cost rise can be absorbed," Chief Financial Officer Robin Banerjee told ET.
Caparo's order comes at a time when Suzlon is struggling with order inflow as global demand for wind energy continues to be muted.
Caparo Energy, an independent power producer, plans to commission 500 MW by March 2012, and another 500 MW by March 2013 in India.
"Price of the turbines for the first 500 MW is fixed, while the next 500 MW would have index-based price so that cost rise can be absorbed," Chief Financial Officer Robin Banerjee told ET.
Caparo's order comes at a time when Suzlon is struggling with order inflow as global demand for wind energy continues to be muted.
The Switch enters India's booming wind and solar market
The Switch, a Finland-based new energy technology company, announced the expansion of its international presence by establishing a wholly-owned The Switch India office in Chennai. The new home base serves as the company’s beachhead to strengthen its business network and to lead business development efforts in the fast-growing wind and solar power market in India.
Pertti Kurttila, VP, Supply at The Switch: “India’s growing wind and solar power market is highly attractive for us. The government’s wind and solar power program has been the fastest growing sector of the country’s energy planning process. India’s wind power potential exceeds 45,000MW and the country also possesses a large and high-potential solar energy resource. By 2022, India’s target is to have 38,500MW of installed wind power capacity and 20,000MW of solar power respectively, part of which is based on grid connected solar photovoltaic (PV) systems.”
The Switch has more than 5,000MW of installed wind power capacity in the global market and in solar solutions the company’s focus is on high-power level applications starting at 500kW. “Our strategy is to provide efficient and reliable technology to help India achieve the government’s energy goals and to meet the country’s growing energy needs also in the future,” Kurttila explains.
Permanent magnet technology gains momentum in the Indian wind power market
By focusing on permanent magnet technology, The Switch has helped the world’s top turbine manufacturers, such as Goldwind, Doosan and Powerwind generate more high-quality electricity.The Switch products are already also gaining momentum in the Indian market. Through the recent wind turbine purchase agreement signed by Chinese Dongfang Electric and Indian KSK Energy, The Switch will be contributing to the export of 166 1.5MW wind turbines to India. The Switch is a technology provider and key component supplier of permanent magnet generator and full-power converter packages for Dongfang Electric.
“For us, the Dongfang Electric and KSK Energy deal is a step in the right direction, and we look forward to participating in many more businesses in the Indian wind and solar power market,” said C.Sundar, who is responsible for the sales and marketing activities for the Switch in India. “Of the total 18,000MW of installed Indian renewable energy capacity, some 13,000MW come from wind energy alone and the number is expected to grow. Our intent is to be the partner of choice for our Indian customers for multi-megawatt power generation and to help them develop the country’s vast potential for clean energy.
About The Switch
The Switch is a leading supplier of megawatt-class permanent magnet generator and full-power converter packages that effectively capture power from highly variable new energy sources like wind and solar. The technology ensures reliable, future-proof grid compliance and maximized energy yields. Since starting operations in July 2006, The Switch has reached net sales of EUR 125 million, with 5,000MW of installed wind power capacity. The Switch is headquartered in Vantaa, Finland with production facilities in Finland, China and the US, and offices in Denmark, India, Germany, Korea and Spain.
Pertti Kurttila, VP, Supply at The Switch: “India’s growing wind and solar power market is highly attractive for us. The government’s wind and solar power program has been the fastest growing sector of the country’s energy planning process. India’s wind power potential exceeds 45,000MW and the country also possesses a large and high-potential solar energy resource. By 2022, India’s target is to have 38,500MW of installed wind power capacity and 20,000MW of solar power respectively, part of which is based on grid connected solar photovoltaic (PV) systems.”
The Switch has more than 5,000MW of installed wind power capacity in the global market and in solar solutions the company’s focus is on high-power level applications starting at 500kW. “Our strategy is to provide efficient and reliable technology to help India achieve the government’s energy goals and to meet the country’s growing energy needs also in the future,” Kurttila explains.
Permanent magnet technology gains momentum in the Indian wind power market
By focusing on permanent magnet technology, The Switch has helped the world’s top turbine manufacturers, such as Goldwind, Doosan and Powerwind generate more high-quality electricity.The Switch products are already also gaining momentum in the Indian market. Through the recent wind turbine purchase agreement signed by Chinese Dongfang Electric and Indian KSK Energy, The Switch will be contributing to the export of 166 1.5MW wind turbines to India. The Switch is a technology provider and key component supplier of permanent magnet generator and full-power converter packages for Dongfang Electric.
“For us, the Dongfang Electric and KSK Energy deal is a step in the right direction, and we look forward to participating in many more businesses in the Indian wind and solar power market,” said C.Sundar, who is responsible for the sales and marketing activities for the Switch in India. “Of the total 18,000MW of installed Indian renewable energy capacity, some 13,000MW come from wind energy alone and the number is expected to grow. Our intent is to be the partner of choice for our Indian customers for multi-megawatt power generation and to help them develop the country’s vast potential for clean energy.
About The Switch
The Switch is a leading supplier of megawatt-class permanent magnet generator and full-power converter packages that effectively capture power from highly variable new energy sources like wind and solar. The technology ensures reliable, future-proof grid compliance and maximized energy yields. Since starting operations in July 2006, The Switch has reached net sales of EUR 125 million, with 5,000MW of installed wind power capacity. The Switch is headquartered in Vantaa, Finland with production facilities in Finland, China and the US, and offices in Denmark, India, Germany, Korea and Spain.
Non-life insurers clock 22% growth in April-December
Non-life insurance companies registered 22.41 per cent growth in premium collections during the first nine months of the financial year.
Mumbai: According to data released by the Insurance Regulatory Development Authority (Irda), non-life insurers collected a total gross premium of Rs 30,813 crore during April-December, as compared to Rs 25,172 crore in the corresponding period last year.
“The overall economic scenario is good. Health segment is growing at 35-40 per cent while motor at 20 per cent,” said ICICI Lombard Chief Financial Officer Rakesh Jain.
Auto sales increased by 28.62 per cent in the first nine months. It has helped to increase motor insurance, which accounts for their 50 per cent business.
“Insurer’s see surge in premium income when auto sales go up,” said a senior executive of a non-life insurance company.
At present, health comprises 25 per cent of the business for the industry, whereas motor generates 40 per cent. Private players grew by 24.35 per cent while four public sector insurers saw a growth of 21 per cent.
Mumbai: According to data released by the Insurance Regulatory Development Authority (Irda), non-life insurers collected a total gross premium of Rs 30,813 crore during April-December, as compared to Rs 25,172 crore in the corresponding period last year.
“The overall economic scenario is good. Health segment is growing at 35-40 per cent while motor at 20 per cent,” said ICICI Lombard Chief Financial Officer Rakesh Jain.
Auto sales increased by 28.62 per cent in the first nine months. It has helped to increase motor insurance, which accounts for their 50 per cent business.
“Insurer’s see surge in premium income when auto sales go up,” said a senior executive of a non-life insurance company.
At present, health comprises 25 per cent of the business for the industry, whereas motor generates 40 per cent. Private players grew by 24.35 per cent while four public sector insurers saw a growth of 21 per cent.
Online marketing industry size to touch Rs 2k crore by 2013
Mumbai/ Ahmedabad: As rules of the advertising game change rapidly, online or digital marketing market size in India is estimated to touch close to Rs 2,000 crore in the next two years from a Rs 1,400 crore now, say management experts.
At the Confederation of Indian Industry (CII) conference on 'Best Marketing Practices', experts felt that no company could now possibly ignore the power of social networking sites in creating today's brands.
"Apart from search engines like google.com and yahoo.com, the next top sites in India are social networking sites like Facebook, Orkut, Twitter and Linkedin. Facebook users have increased nearly nine folds during last year, and now companies are sitting up and taking notice of the importance of advertising through such websites, especially when it is possible now to do hyper local marketing targeted at specific customer," said Mahesh Murthy, founder Pinstorm, a leading digital marketing firm.
He added that with revenues worth Rs 800 crore, Google India is bigger than any television channel in the country.
It gets 100 million unique users every year in India, of which 70 million are on desktop, while the rest access it through mobile phones.
As online marketing opens up newer avenues and prospects of acquiring new clients, even major banks like HDFC have jumped on to the bandwagon. Soma Sharma, head, liability campaigns, HDFC Bank said that they launch 100 to 200 new online and digital campaigns every month.
"Nearly, 20-25 per cent of our new customers come in through online sources, either they visit our website or through any banner advertisements that we have put up at relevant websites. And if we talk about the quality of these new customers, they are almost two times better compared to those we acquire through offline modes like branches and agents," she added.
The business of buying online railway tickets is worth Rs 5,500 crore in India, while that of airline tickets is close to Rs 12,500 crore.
Experts felt that companies would have to increasingly come up with ways to manage the perception of brands more efficiently, and one has to do that continuously as perceptions and brands today change much faster than they used to.
"Earlier, we had time to test a creative for a soap commercial or campaign for three months, now three months can be the entire product lifecycle," Murthy said. He recalled one mobile handset company's demand of coming up with a creative within a week.
"When we asked for more time, they said they had to go live with the campaign in three weeks and that they would come up with their another handset within eight weeks. So that is all the time they had to sell this particular product," Murthy explains.
At the Confederation of Indian Industry (CII) conference on 'Best Marketing Practices', experts felt that no company could now possibly ignore the power of social networking sites in creating today's brands.
"Apart from search engines like google.com and yahoo.com, the next top sites in India are social networking sites like Facebook, Orkut, Twitter and Linkedin. Facebook users have increased nearly nine folds during last year, and now companies are sitting up and taking notice of the importance of advertising through such websites, especially when it is possible now to do hyper local marketing targeted at specific customer," said Mahesh Murthy, founder Pinstorm, a leading digital marketing firm.
He added that with revenues worth Rs 800 crore, Google India is bigger than any television channel in the country.
It gets 100 million unique users every year in India, of which 70 million are on desktop, while the rest access it through mobile phones.
As online marketing opens up newer avenues and prospects of acquiring new clients, even major banks like HDFC have jumped on to the bandwagon. Soma Sharma, head, liability campaigns, HDFC Bank said that they launch 100 to 200 new online and digital campaigns every month.
"Nearly, 20-25 per cent of our new customers come in through online sources, either they visit our website or through any banner advertisements that we have put up at relevant websites. And if we talk about the quality of these new customers, they are almost two times better compared to those we acquire through offline modes like branches and agents," she added.
The business of buying online railway tickets is worth Rs 5,500 crore in India, while that of airline tickets is close to Rs 12,500 crore.
Experts felt that companies would have to increasingly come up with ways to manage the perception of brands more efficiently, and one has to do that continuously as perceptions and brands today change much faster than they used to.
"Earlier, we had time to test a creative for a soap commercial or campaign for three months, now three months can be the entire product lifecycle," Murthy said. He recalled one mobile handset company's demand of coming up with a creative within a week.
"When we asked for more time, they said they had to go live with the campaign in three weeks and that they would come up with their another handset within eight weeks. So that is all the time they had to sell this particular product," Murthy explains.
GDP growth revised to 8% for FY10
GDP growth revised to 8% for FY10
New Delhi: The Central Statistical Organisation on Monday revised growth in the gross domestic product (GDP) for 2009-10 to 8% from the previous 7.4% due to robust growth in manufacturing and services sectors. The government also revised the GDP growth for 2008-09 marginally to 6.8% from the previously announced 6.7%.
The per capita income at 2004-05 prices is estimated at Rs 33,731 for 2009-10, up from Rs 31,801 in 2008-09, showing an increase of 6.1%. Per capita income at current prices rose 14.5% to Rs 46,492 in 2009-10 compared to Rs 40,605 crore in the previous fiscal. Per capita income refers to the earnings of each citizen in the country if the national income is equally divided among the population. National income or the size of the economy rose 16.1% at current prices to Rs 60,95,230 crore compared to Rs 52,49,163 crore in 2008-09.
"The growth rate of 8% in the GDP during 2009-10 has been achieved due to high growth in transport, storage and communication (15%), community, social and personal services (11.8%), financing, insurance, real estate and business services (9.2%) and manufacturing (8.8%)," CSO said. Farm sector growth in 2009-10 stood at 0.4%, up from the 1% decline in 2008-09. It said the GDP estimates and other aggregates for the previous years have been revised due to the new wholesale price index with 2004-05 as the base as well as the revision in the index of industrial production.
GDP for 2009-10 at 2004-05 prices is estimated at Rs 44,93,743 crore compared to Rs 41,37,125 crore. Gross domestic saving (GDS) at current prices in 2009-10 is estimated at Rs 22,07,423 crore compared to Rs 17,98,347 crore in 2008-09. In absolute terms, the household sector savings increased from Rs 13,31,033 crore in 2008-09 to Rs 15,36,071 crore in 2009-10, the savings of private sector rose from Rs 4,38,376 crore in 2008-09 to Rs 5,31,403 crore in 2009-10 and that of public sector increased from Rs 28,938 crore in 2008-09 to Rs 1,39,949 crore in 2009-10, data showed.
The economy is expected to grow 8.5% in the current fiscal but some policymakers say it could reach 9%. It has grown 8.9% in the past two quarters of the current fiscal year.
New Delhi: The Central Statistical Organisation on Monday revised growth in the gross domestic product (GDP) for 2009-10 to 8% from the previous 7.4% due to robust growth in manufacturing and services sectors. The government also revised the GDP growth for 2008-09 marginally to 6.8% from the previously announced 6.7%.
The per capita income at 2004-05 prices is estimated at Rs 33,731 for 2009-10, up from Rs 31,801 in 2008-09, showing an increase of 6.1%. Per capita income at current prices rose 14.5% to Rs 46,492 in 2009-10 compared to Rs 40,605 crore in the previous fiscal. Per capita income refers to the earnings of each citizen in the country if the national income is equally divided among the population. National income or the size of the economy rose 16.1% at current prices to Rs 60,95,230 crore compared to Rs 52,49,163 crore in 2008-09.
"The growth rate of 8% in the GDP during 2009-10 has been achieved due to high growth in transport, storage and communication (15%), community, social and personal services (11.8%), financing, insurance, real estate and business services (9.2%) and manufacturing (8.8%)," CSO said. Farm sector growth in 2009-10 stood at 0.4%, up from the 1% decline in 2008-09. It said the GDP estimates and other aggregates for the previous years have been revised due to the new wholesale price index with 2004-05 as the base as well as the revision in the index of industrial production.
GDP for 2009-10 at 2004-05 prices is estimated at Rs 44,93,743 crore compared to Rs 41,37,125 crore. Gross domestic saving (GDS) at current prices in 2009-10 is estimated at Rs 22,07,423 crore compared to Rs 17,98,347 crore in 2008-09. In absolute terms, the household sector savings increased from Rs 13,31,033 crore in 2008-09 to Rs 15,36,071 crore in 2009-10, the savings of private sector rose from Rs 4,38,376 crore in 2008-09 to Rs 5,31,403 crore in 2009-10 and that of public sector increased from Rs 28,938 crore in 2008-09 to Rs 1,39,949 crore in 2009-10, data showed.
The economy is expected to grow 8.5% in the current fiscal but some policymakers say it could reach 9%. It has grown 8.9% in the past two quarters of the current fiscal year.
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