BSNL and others to build Rs 20k cr broadband network

The telecom ministry has accepted the finance ministry's stance that state-owned BSNL must not be entrusted with the 20,000-crore project to build a nationalbroadband network to take high-speed internet to the hinterlands. A special purpose vehicle (SPV) with equity participation from state-owned telcos BSNL and MTNL and other public sector units such asRailTel, Gail and PowerGrid, among others, will now undertake this project as demanded by the finance ministry. This initiative involves laying 11 lakh km of optic fibre network connecting over 2.5 lakh panchayats across the country. The Department of Telecom (DoT) in its proposal to the Cabinet has said that private players would be 'inducted' into the SPV by equity expansion at a later date. "This stage could be considered at any point when it is felt that it would add value to the objectives of the programme," the Cabinet note seeking approval for this project added. In July, communications and IT minister Kapil Sibal had said that the telecom commission, the apex decision making body of the department, had approved the project to build this network that would connect all the gram panchayats utilising the Universal Service Obligation Fund (USOF). Sibal said that the initial phase of this project would cost about Rs 20,000 crore and added that a similar amount of investment was likely from the private sector towards this. Telecom companies contribute 5% of their annual revenues towards this fund, which is used to support rural telephony, and the unutilised amount in this kitty is estimated to be about Rs 20,000 crore and this is expected to increase to Rs 36,000 crore within the next 36 months. But the proposal was delayed after the finance ministry raised concerns on the agency that would implement it. The DoT shared the view that an SPV should only be created for managing the fibre network after it is built by BSNL. The finance ministry, on the other hand, had demanded that the SPV be entrusted with both the rollout and managing the network. The DoT in its Cabinet note has also added that it had already formed a high-level committee (HLC) and an advisory body to oversee the project. "The project implementation team consisting of members of BSNL, PowerGrid, RailTel, National Informatics Centre and C-DoT is presently looking after various preparatory activities such as geographic information systems mapping, finalisation of network design etc.

IAF selects Boeing's Apache Longbow combat helicopter for chopper tender

NEW DELHI: The Indian Air Force (IAF) has selected Boeing's Apache Longbow advanced attack helicopter for its combat chopper tender. RIA Novosti news agency reported from Moscow Tuesday that the other competitor, Russia's Mi-28N Night Hunter, had lost the competition. It quoted an unnamed Indian defence ministry source as saying that the US helicopter "showed better performance" while the Russian machine did not meet the tender requirements. There was no confirmation here but well placed sources told India Strategic defence magazine that IAF's assessment report had been accepted. No details were given. IAF has a tender for 22 combat helicopters with no options. But more would be required and should be ordered once the first few machines are delivered. According to Lt Gen (retd) B.S. Pawar, a noted authority on combat helicopters, Apache is far more advanced than other attack helicopter worldwide. It has executed successful missions in Afghanistan. Notably, the US is known to have much better Electronic Warfare capability than perhaps any other nation. The Apache has the capability to detect 256 moving targets in speed, distance and direction and engage them as required. The twin-engine tandem seat Apache is operated by two pilots, and can execute an attack within 30 seconds of an alert. It is equipped with Northrop Grumman's highly sophisticated millimeter wave Longbow fire control radar and Lockheed Martin's Hellfire and Raytheon's Stinger missiles. The Block III is the latest version being delivered to the US Army from this year. Apache has a strong shell made of composite fibres to protect the pilots and sensitive components from bullets.

TRAI imposes 5 paise termination charge on commercial SMSes

NEW DELHI: In a bid to further clamp down pesky SMSes, the Telecom Regulatory Authority of India (TRAI) will impose a termination charge of 5 paise per SMS on operators from whose networks commercial messages originate. Termination charges are paid by an operator from whose network calls or SMS originate to the one on whose network these communications end. These charges impact tariffs. "The promotional SMS charge shall be Re 0.05 (five paisa only). The Originating Access provider may collect the promotional SMS charge from the registered telemarketer," TRAI said in a notification. After much delay, TRAI in September this year came out with recommendations to stop pesky calls and text messages, directing that no operators will permit the transmission of more than 100 SMSes per day per SIM. The limit is, however, not applicable on 'blackout days' (festive occasions) and a customer is free to send as many messages he desires. Subscribers also have the option of choosing to be under the 'Fully Blocked' category, similar to the 'Do Not Call Registry' to not receive any promotional SMS or call. In case a user opts for 'Partially Blocked' category, he or she will receive SMS in only select categories. At present, some operators charge a termination fee of up to 15 paise per SMS. The current directive would make it mandatory for all operators to charge the termination levy for commercial SMSes. CDMA telecom operators have opposed the imposition of a termination charge on SMS, saying the move is anti-consumer, anti-competitive and not based on a scientific technical study. "Some of the incumbent GSM operators always propagate high termination charges for calls as well as on SMS, as it works in their favour. Imposition of any termination charge on SMS will be anti-competitive, anti-consumer and not based on costs," Auspi General Secretary S C Khanna had said in a letter to the Trai Chairman. He added that prices of bulk SMSes are currently 1.5 to 2 paise and if it shoots up to 7 paise per SMS, this important marketing avenue will be eliminated. "It would result in thousands losing their jobs as a result of this change in regulation, which will add to the plight of lower sections of society," Khanna said. TRAI has exempted select service providers --- primarily the dealers of telecom operators, DTH operators, e-ticketing agencies and social networking sites -- from the limit of 100 SMSes per day per SIM. It also includes transactional SMS' from e-commerce agencies, companies registered with SEBI, IRDA, Association of Mutual Funds in India (AMFI), NCDEX, and MCX; and goods delivery confirmation messages.

Retailers like Future Group, Lifestyle, Godrej, MegaMart, Fabindia offering 0% EMI to attract customers

KOLKATA/NEW DELHI: Retailers are countering the economic slowdown by offering interest-free equated monthly instalment (EMI) schemes, which they say are not only helping them pull customers into stores but also encouraging shoppers to buy higher value products. Such EMI-based sales promotions have staged a big comeback at a time near double-digit inflation has put a heavy strain on household budgets, making people defer non-urgent and big-ticket purchases even on credit because of hardening interest rates. But transactions carrying zero percent financing have grown more than 50% over the past year, say retailers and bankers. From apparel sellers such as Arvind Brand's MegaMart and Fabindia to multi-product retailers such as Future Group, Lifestyle and Godrej, firms reckon that zero-interest EMI options are the most effective discounts they can offer. While retailers end up bearing the interest for the duration of the credit extended, they see it as an acceptable cost of keeping the sales register ticking during the downturn. "EMI schemes are removing inhibitions and inducing consumers to splurge on big-ticket items," says Himanshu Chakrawarti, chief executive of Essar Group's Mobile Store, the country's largest mobile phone retailer. He says consumers going for six-month EMIs are buying handsets priced twice than they had initially planned and those going for nine-month to 12-month schemes are tripling their size of transaction. Almost a third of the high-end mobile phones, such as the iPhone and the latest models of Blackberry and Android-based phones, sold at the Mobile Store are paid for through instalments. The company, which rolled out EMI schemes at its 1,200 stores across the country over the past couple of months, recently became India's largest seller of BlackBerry smartphones. Instant approval of loans and minimal documentation help speed up EMI-based transactions, says Parag Rao, senior executive VP, HDFC Bank. He says the bank has seen a more than 100% spurt in this loan category over the past year with an average transaction of 30,000. "Since the amounts are much smaller compared to home or car loan, the EMIs don't pinch much," he says.

Gitanjali inaugurates gold coin and medallions vending machine to cash in on robust investment demand

MUMBAI: Gitanjali Export Corp. said it has launched a gold coins and medallions vending machine to cash in on robust investment demand that is rivalling the thirst for jewellery in India, the world's biggest consumer. "It has a particular significance in India, where usually such items are purchased as tokens to observe traditions on auspicious days," said Sanjeev Agarwal, CEO, Gitanjali Export Corporation. The machine will give stock upto 36 different sizes, price points and designs ranging from 1,000 rupees to 30,000 rupees. India is in a high demand festival and weddings quarter, including Diwali. Gitanjali said it plans to expand the network of these machines in places with high consumer footfalls such as malls, airports and temples to provide visitors with a range of last minute purchase choices for gifting and other needs.

Moser Baer resolves bonus, wage issues with workers

NEW DELHI: Optical storage media maker Moser Baer India today said all issues related to revision in bonus and wages have been resolved amicably between a section of its associates and the management at its Noida plant. "We have successfully resolved all issues concerning a very small group of our associates at the Greater Noida plant. All 150 dissatisfied associates have come back and joined their respective duties. Our plant operations are running as normal," Blank Optical Media and Consumer Electronics CEO Bhaskar Sharma said. Earlier, this week it was reported that some associates from the packaging section of one of the company's optical disc plants were at loggerheads with the management demanding revision in bonus and wages. "This was a stray aberration in the history of Moser Baer India and that the tradition of maintaining high engagement levels with all associates has been further strengthened," Sharma added. The company's revenues for the year ended March 31, 2011 stood at Rs 2,682.93 crore, of which the storage media products business contributed Rs 1,633.10 crore. The company claims to be the world's second largest manufacturer of optical media solutions commanding 16 per cent development, manufacture and supply of optical media across the globe. In the Indian market, Moser Baer forayed into the burgeoning domestic optical storage market with the launch of the Moser Baer label in 2003. The company manufactures the entire spectrum of optical storage media products including Recordable Compact Discs (CD-R), Rewritable Compact Discs (CD-RW), Recordable Digital Versatile Discs (DVD-R), Rewritable Digital Versatile Discs (DVD-RW) and blue laser discs (HD-DVD and Blu-ray) and has an annual production capacity of over 3 billion units

MRF turnover crosses Rs 10,000 cr; eyes acquisitions abroad

CHENNAI: MRF today said its turnover for the first time has crossed Rs 10,000 crore in one year, becoming the first Indian tyre maker to achieve this mark, and announced plans to acquire plantations or companies abroad to neutralise the impact of high import duty on rubber. "MRF is the first Indian tyre company to have crossed the turnover of Rs 10,000 crore in one year. It registered growth in excess of 30 per cent over the previous year," MRF Chairman K M Mammen told reporters here. "In 2007, we reported Rs 5,000 crore. Rs 10,000 crore is something we are proud of, because we are the first Indian (tyre) company to achieve this," Mammen said. Talking about future plans, he said MRF was seriously thinking of going out of the country or acquire companies. "We are reviewing a lot of these wonderful ideas," he said. He also expressed hope that the company would double the revenues in future. Stating that the high import duty was having an impact on its bottom line, he said they were looking to acquire plantations in any region or acquire companies. When asked whether the company has zeroed in on any company or any plantations, he only said, "We are looking at the whole world." MRF exports tyres to 65 nations. It has seven facilities in the country. To another question whether putting up a factory outside India would be a feasible option for the company, Mammen said it was not a right option. "But taking over (of overseas companies) is fine. We are looking at all over the world. I would say, there are lot of opportunities in Europe, South east Asia, China," he said.

TVS, GMR joint venture to go pan-India

CHENNAI/HYDERABAD: TVS and GMR, two of South India's most prominent family businesses, have been in a very silent joint venture in the aviation logistics space for more than a year-and-a-half now. Starting with the Hyderabad airport, where the JV is already operational, the plan is to go pan-national. Such a coming together of these two groups has never been discussed in the media until now. The tie-up is between TVS Logistics, whose MD is R Dinesh, and GMR Hyderabad Airport Resource Management. GMR Group head GM Rao's son Kiran Kumar Grandhi is one of the directors of the JV. The TVS company, which has a 51% stake, didn't share details. However, Hemanth DP, COO of the GMR group company, said the idea behind the alliance with TVS Logistics was mainly to tap road feeder services from and to the airport. "TVS is a very established player in the trucking business. We are developing the feeder services as more and more airlines are in need of an extension of their network," he said. "If you come in Lufthansa from Frankfurt to Hyderabad and go in a Jet Airways to Tirupati, technically you book one seat only but it is in two different airlines. Similarly, in the cargo business, we want to establish the road feeder network to connect the last leg. In some cases, it will be by road." The JV is currently operating Aero Express, the bus service that connects the airport to major locations in the city. This is a service that has been scaled up in recent times with more frequency and routes. Vikram R Jaisinghani, the GMR group company's CEO, said, "There is an opportunity for TVS to offer road feeder services and they may be one of the players in the logistics space at the airport." Then there are warehousing services, where GMR believes players like TVS can work with it. Jaisinghani was bullish about his company's plan to develop a cargo hub. The JV has its origins in a company called Radi Logistics, where some TVS members had minor stakes and an associate of Dinesh owned the biggest stake.

India to overtake China in 2014: Ernst & Young report

New Delhi: India will overtake China in 2014, according to a forecast by the Ernst & Young's report on Rapid Growth Markets (RGMs). In 2014, India is expected to grow at 9 per cent while China is expected to grow at 8.6 per cent. India and China would probably be less impacted among the 25 Rapid Growth Markets (RGMs) in case of a deterioration of the Eurozone debt crisis. The overall outlook for India remains positive and economic growth will steadily accelerate during 2012. "India's consumption-led economy continues to make the country a highly attractive investment destination in the short to medium term. Its domestic demand-driven growth model has helped the country weather the volatility in the global markets, providing significant growth opportunities to businesses," according to Farokh Balsara, Partner & India Markets Leader, Ernst & Young India.

India to attract $80 billion FDI over 12-24 months, says a Morgan Stanley survey

New Delhi: Over the next 12-24 months India could attract a massive $80 billion in foreign direct investment (FDI), according to a research report by Morgan Stanley. India received $48-billion FDI in the last two years. "The findings show that global companies see real opportunity in India and that their investment appetite is increasing, notwithstanding continuing negative perceptions around infrastructure bottlenecks," said Ridham Desai, head of India Research at Morgan Stanley. The startling number came out of a survey of 176 of the firm's internationally-based research analyst teams that cover 1,766 global companies. These teams determined the likely India investment opportunity recognised by the companies they covered. The survey did not involve direct interaction with the companies. "Conducting a survey among large companies worldwide was not feasible due to very high costs and time taken," the detailed note says explaining the survey. The 20% of the companies covered in the survey have already invested nearly $80 billion into India, almost 53% of the total FDI into the country. "As per our global analysts, 59 new companies are likely to invest in India while 67 of the currently invested global companies are unlikely to make further investments," the report says. However, according to the survey, despite the intentions to pump in such large amounts India is still not a high priority destination