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.
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