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The finance ministry will take over the negotiation of all future investment
pacts, including those part of comprehensive trade deals, it has told the
commerce department, having taken strong exception to the latter
unilaterally finalising the text for the India-Asian Comprehensive Economic
Partnership Agreement .The finance ministry has written saying henceforth
all investment agreements will be negotiated by it. Finance Minister P
Chidambaram had raised concerns at Thursdays Cabinet meeting over the
pacts text, which had been decided without consulting his ministry, after
which the proposal was deferred. The finance ministry, which is the
administrative department for Indias investment policy, was neither
consulted by the commerce department during the talks nor were its views
sought when the draft text of the pact was finalised.
IIT Announces Crore-Plus Salaries Through Oracle
Salary packages exceeding a crore have made an appearance at an Indian
Institute of Technology (IIT) after a gap of three years. On the first day of
final placements at IIT-Madras, two computer science students received
offers of $210,000 (.1.31 crore) each for international roles. While the
institute declined to confirm the name of the company, sources associated
with the placement process said Oracle,the American information
technology company,has made the crore-plus compensation offers, which
include a joining bonus. The highest offer for a domestic role (within India)
at IIT-Madras increased to.48.68 lakh, compared with.28.82 lakh last year.
Recruiters have been more generous this year at IITKharagpur and IIT-
Guwahati as well for jobs outside the country.
Modi Calls for Public Debate on Article 370
Without deviating from the BJPs policy of seeking J&Ks integration with the
rest of the country,Narendra Modi on Sunday cited former Prime Minister
Atal Bihari Vajpayees three-point policy for the state humanity,democracy
and Kashmiriyat.While ruling out a separate state as visualized by the
Congress party,Modi called for a super state,asserting that only the BJP can
help it erase its beggar image to become a better province.On his first visit
to Jammu,the BJPs prime ministerial candidate said the constitution will be
his guidebook and development his prayer.The party will follow Vajpayees
dream for the state,he said,without elaborating.Jammu & Kashmirs image
outside is that of a beggar state,the rulers of which go to Delhi,seek and get
money and then misuse it, Modi said.But the people living here want to live
a life of dignity and Vajpayee has dreamt of making it a super state and not
a separate state. Modi criticised the government,saying that while Nepal
was making most of the money from the Kailash Mansarovar
pilgrimage,this could have gone to Leh as the yatras epicentre.
BJP Leaders Blast UPAs China Policy
Narendra Modi and other BJP leaders blasted the central governments
China policy at a rally in Jammu,accusing Prime Minister Manmohan Singh
of compromising the countrys interests by signing a border agreement with
Beijing and ignoring Chinese telecom operators penetration into the
country.BJP president Rajnath Singh said the recent border defence
cooperation agreement suited the Chinese and not India,while Modi alleged
that Chinese mobile operators are playing a SIM game on Indians living on
the border.Chinese telecom operators have networked our population with
their mobile networks,BJPs prime ministerial candidate told a huge
gathering at its Lalkar Rally.They are offering SIM cards to our people and
gradually integrating them with their networks, Modi said.I do not know
what the telecom ministry is doing in India as it is emerging a security
threat, he added.Rajnath Singh accused the UPA government of being
casual in its approach towards Beijing.
31% of AAP Supporters Want Modi as Next PM
Aam Aadmi Party (AAP) chief ministerial candidate Arvind Kejirwal and
the BJPs nominee for prime minister Narendra Modi appear to have few
similarities. If the former,a political rookie,is seen as a harbinger of cleaner
politics and a socialist leaning heavily on populism,Modi,a veteran with a
hat trick of election wins in Gujarat,wears the image of an authoritarian
figure with strong development goals.Apart from their anticorruption
agenda,the two have had very little in common.Until now.AAPs fourth
internal survey shows that most of Kejriwals supporters 31% are also
rooting for Modi as the next PM of this country.This survey,which surveyed
3,247 people across 35 constituencies in the Capital between November 18
and 21,also showed AAP as the party with the largest vote share of 33%
followed by Congress with 30% and BJP with 25%.According to party
leader Yogendra Yadav,this is the first time that AAP tried to gauge the
preference of its supporters for the general election in 2014.About 10% of
Kejriwal followers would prefer Manmohan Singh,Sonia Gandhi,Rahul
Gandhi or Sheila Dikshit for the PMs job.
AAP Survey Shows Kejriwals Party Hurt by Media Sarkar Sting Operation
The latest pre-poll survey commissioned by the AAP showed that the Media
Sarkar sting operation hurt its prospects in the upcoming polls.The opinion
poll,which was conducted after the sting surfaced,showed that 51% of the
1,643 people surveyed across 17 assembly constituencies in Delhi had
heard of the controversy.Of them,18% believed the content of the video
footage.This,according to AAPs Yogendra Yadav,happened even though the
party showed that Media Sarkar had deliberately shown only selective
portions of the 14 hours of footage it had.This vindicated its candidates,the
party had said.The media had given a lot of air time to the allegations and
not to our clarification, Yadav said.
Badal Jr Shows Hes a Modi Fan as Punjab Hires Apco
Punjab government has taken a leaf out of Gujarat chief minister Narendra
Modis book by hiring American firm Apco that had earlier promoted the
biennial Vibrant Gujarat Summit.Apco,chosen as the communication
partner for the Progressive Punjab Investors Summit on December 9-
10,will promote the state as a global investment destination until the end of
2015.Apco has been hired for a twoyear campaign to promote Punjab as an
investment destination, said Karan A Singh,principal secretary in Punjabs
department of industries and commerce.The campaign for the upcoming
summit will be similar to Apcos campaign for Vibrant Gujarat Summit,said
the communication and business strategy firms senior director Tushar
Panchal.
BJP Plans More Hunkars Against Nitish
BJP plans to intensify its attack on Bihar chief minister Nitish Kumar soon
after assembly election results for five states are announced early next
week,starting with a weeklong campaign against the state governments
appeasement politics.Party MLAs and former ministers in the JD(U)-BJP
coalition government in the state will hold meetings at block headquarters
across the state from December 16 reviving its soft on terror charge against
the JD-U government,based on the bomb blasts at Narendra Modis Patna
rally in October.We had earlier planned it from November end,but now
since everybody has been busy with state elections,we will hold the
campaign in December.
Dabholkar Murder: Mrashtra Gropes in Dark
Supporters of slained rationalist and anti-superstition crusader Narendra
Achyut Dabholkar are planning an agitation this week to press their
demand for a probe by a special task force into the murder,perpetrators of
which remain at large.More than a hundred days after Dabholkars daylight
killing,which triggered nation-wide condemnation,investigators are yet to
identify who was behind the attack.The tardy progress in the investigation
has riled Dabholkars colleagues,admirers and political activists,who want
the Prithviraj Chavan-led state government to bring an anti-superstition
legislation in the upcoming session of the Maharashtra legislature so that
the anti-superstition Ordinancewhich the cabinet was forced to promulgate
within days of Dabholkars murderdoes not lapse.To put pressure on the
Congress-NCP coalition government,the Maharashtra Andhashraddha
Nirmoolan Samiti (MANS)a group founded by Dabholkarhas planned a rally
at Mumbais Azad Maidan on Monday.Dabholkars widow,Dr Shyla,and
son,Hameed Dabholkar,who are associated with MANS,met Congress
president Sonia Gandhi and Union Home Minister Sushil Kumar Shinder in
Delhi last week to protest against the failed investigations as well as to
press their demands.
Privacy Bill in Cold Storage While Modi Snoopgate Rages
At a time when Congress party is targeting the BJP government in Gujarat
over allegedly illegal surveillance of a woman architect,an ambitious
central legislation aimed at providing protection to individuals in case their
privacy is breached through unlawful means remains in cold storage.The
Right to Privacy Bill is in limbo and there is little possibility of it being
introduced in Parliament during the tenure of the current Congressled
coalition at the Centre. The draft legislation is yet to be approved by the law
ministry,explained the officials,who did not wish to be identified.Though
the home ministry and the DoPT had thrashed out their differences over
the provisions of the draft legislation after detailed deliberations,the bill
has since got stuck at the law ministry for several months now over certain
legal points.Meanwhile,the main bureaucrat steering the bill at the DoPT is
also getting transferred out to finance ministry.
Full Cooperation Couldnt Save Tejpal from 6-day Jail
Tarun Tejpal tried his best to avoid the police lock-up which consequently
may lead him to jail,joining the police investigation thrice in two days even
as a Goa court dwelled on his anticipatory bail plea.But this ultimately cut
no ice with the court which ruled that his interrogation while insulated by
the protection from arrest would be a mere ritual. Tejpal,who faces a life
sentence if convicted, would now have to spend the next six days in a police
lock-up and then proceed to jail if he is unable to get bail. The former
Tehelka editor in fact may be behind bars for a long while with the Goa
Police promising to file a charge-sheet within this month and proceed with
a daily trial that may finish by March, making the prospect of bail for Tejpal
even more difficult. This was exactly the scenario his lawyers were trying
to prevent as they pressed before the Goa court that Tejpal was willingly
co-operating with the police probe even without being arrested and would
stay in Goa till the investigation was complete under any condition
imposed by the Goa court. But the Goa court cited the new anti-rape law
and a Bombay High Court judgment to say custodial interrogation was
qualitatively more elicitation oriented way than questioning a suspect who
is well ensconced with a favourable bail order.
Didnt Take Name: Lekhi to NCW
In reply to NCW,BJP spokesperson Meenakshi Lekhi denied having
disclosed the name of the complainant in the Tejpal case and alleged her
Twitter handle was misused and called it a politically motivated campaign.
Scheme for Tribals Coming in January
At a time when Finance Ministry is planning substantial fund cuts for its
flagship programmes,Congress-led UPA is clearing the decks to rollout a
new welfare scheme for tribals,considered a core constituency of
Congress,in January 2014,just four months ahead of parliamentary
elections.The Centre would unveil its ambitious scheme to provide
minimum support price (MSP) for 12 minor forest produce (MFP) next
month with a proposed budget of Rs 163.5 crore for just three months of
the current fiscal.The scheme,which was approved by the Cabinet on
August 1,aims to benefit about 100 million forest dwellers and tribals,a
core constituency of the ruling Congress which has been successfully
wooed by the BJP over the last few years. The scheme would be
implemented in Andhra Pradesh, Chhattisgarh, Gujarat, Madhya Pradesh,
Maharashtra, Odisha, Rajasthan and Jharkhand. The Centre would declare
MSP for 12 MFPs tendu, bamboo, mahuwa seed,sal leaf,sal
seed,lac,chironjee (seed),wild honey,myrobalan (harad),tamarind,gums
and karanj.Though the finance ministry has proposed massive cuts for
high-spending ministries to keep the fiscal deficit within the target,the
Centre is geared up to introduce the scheme with a promise of a whopping
Rs 444.59 crore for 2014-15. The Tribal Affairs ministry has already put in
place a pricing mechanism for the ambitious scheme.
CPM Gives Local Units Power to Take on Didi
West Bengal CPM leadership has agreed in principle to give free hands to
its lower ranking committees to organise issue-based wildcat movements
to mount pressure on Mamata Banerjees government before next years
parliamentary elections.The party has adopted this new strategy during the
two-day state committee meeting which concluded on Sunday.As a
result,district,zonal and local committee units of the party would now be
able to organise movements in their respective areas on the basis of local
issues. These lower units need not obtain prior permission from the state
headquarters in Alimuddin Street before going for any wildcat
agitation.The state leadership also feel that in many occasion, local party
units may have to go for any wildcat movement which in the long run,will
benefit the organisation. It is learnt that CPM state leadership has also
agreed to allow local leaders and party units to take on the spot decision
collectively regarding any issues and political developments concerning
them. All the district, zonal and local committees would now be able to
organise movement independently in their areas.
Polls in Mind,India & Russia Speed Up Talks on N-liability
India and Russia are keen on breaking the impasse over a stringent law
governing nuclear accidents so that contracts for the Kudankulam nuclear
power plant can be inked before the general polls due in May.Negotiators
from both countries are trying to reach an arrangement over Indias
Nuclear Liability Law,which makes suppliers of nuclear fuel and related
equipment liable in case of a nuclear plant accident.Differences over the
issue prevented the signing of contracts for the third and fourth reactors of
the plant during Prime Minister Manmohan Singhs visit to Moscow in
October.Russia has already set up two 1,000-mw nuclear reactors at
Kudankulam,TN.Despite protests from the US,Russia had also supplied
India with nuclear fuel for its Tarapur plant before Delhi received a clean
waiver from the Nuclear Suppliers Group in 2008.
Asha Gupta First Woman to Head Tupperware Asia-Pac
Tupperware Brands Corporation has elevated its India MD Asha Gupta as
group president of the Asia Pacific region to oversee the American direct
selling multinationals operations in 15 countries, including India, China,
Japan and Australia. Asha will be responsible for driving growth and
expansion of the entire Asia Pacific region. She will move to Singapore to
take up her new responsibility with effect from January 1.Puneet Narula,
deputy MD and CFO at Tupperware India, will succeed her as India MD of
the Florida-based food storage container and beauty products
firm.Gupta,the first woman and first Indian to lead Tupperware in Asia
Pacific, joins a growing league of India-born executives holding plum global
roles in multinationals. Last week, top beverages maker Coca-Cola had
named Atul Singh as group president of Asia overseeing operations of 21
markets, and earlier this year,top liquor firm Diageo had named Ivan
Menezes as its CEO. Gupta joined Tupperware in 1997 to head sales in
south India, when it was still a start-up, and steel, not plastic, was the
sacrosanct storage option in Indian kitchens.
Ad Industry Cries Foul over GSKs Demand for Sign-on Bonus
GlaxoSmithKlines demand for a sign-on bonus or a one-time rebate from
advertising agencies to continue working with the British pharmaceutical
and consumer healthcare major has sent shockwaves through the Indian
advertising industry.The owner of brands such as Horlicks,Crocin and
Aquafresh has requested agencies working on its brands to indicate a sign-
on bonus they will offer the group,and industry insiders say such a rebate
would be a huge blow in a tough market where every agency is facing
revenue pressure.We have reduced our fees to such an extent and another
rebate would be fatal for us, a top executive of an agency said on condition
of anonymity.This is shocking and its extremely unfair.In todays volatile
market condition,every agency is under tremendous revenue pressure, the
person said.
Carmakers to Increase Prices in Jan
Maruti Suzuki, Hyundai, Toyota, General Motors and others look set to raise
car prices in January because of higher overheads, although sales have
declined for most of this year. The unsaid consensus is raising prices could
prompt an uptick in December sales as prospective buyers seek out
bargains before then. Luxury carmakers Audi and BMW have already
announced price increases of 5-10 % next month. We have not decided the
exact quantum but most of our models would be (more) expensive from
January, said Rakesh Srivastava,senior vice-president,sales and
marketing,Hyundai Motor India. There has been tremendous pressure on
account of swelling input costs and a weak rupee has led to component
imports becoming costlier.The countrys largest carmaker Maruti Suzuki
has also indicated it will increase prices because of increasing input costs
and the depreciating rupee. General Motors will announce a price rise of 1-
2 % soon on its cars and multi utility vehicles. Carmakers havent been able
to hold prices this year,although sales have been muted over the past two
years as economic growth slumped to the lowest in a decade.
RIL,3 State Cos Bid for Oil & Gas Blocks in Myanmar
Reliance Industries has bid for three oil and gas blocks and ONGC Videsh
for two in Myanmars maiden offshore licensing round.Besides RIL and
OVL,state-owned explorer Oil India and gas utility GAIL India have bid for
three exploration blocks each in separate joint venture with local
companies,according to the Myanmar Ministry of Energy.Cairn India,which
was among the 61 firms prequalified to bid,however,did not bid.
Gail Loses Tanzanian Gas Block Race to Singapore Co
Gail India,the nations biggest natural gas distributor,has lost out on a bid to
acquire Ophir Energys stake in gas blocks in Tanzania to Singapores
Pavilion Energy.Gail was keen to buy part of Ophir Energy plcs 40% stake
in Blocks 1,3 and 4,which are estimated to hold an estimated 15 trillion
cubic feet of gas reserves.It was,however,outbid by Pavilion which offered
to pay $1.3 billion for a 20% stake in three gas blocks offshore Tanzania in
East Africa.Gail had put a price of about $600 million for a 10 % interest.
Azim Premji May Hike Stake in JM Financial
As JM Financial awaits RBI view on its bank licence plea,market is abuzz
with talk of billionaire Azim Premji buying additional 5% stake in the
company that has also roped in former Citibank chief Vikram Pandit as a
key investor for its banking pursuit.Premji,chairman and founder of leading
IT firm Wipro,currently holds 2.9% stake as part of his individual
investment portfolio in Nimesh Kampani-led JM Financial.
Pay.5k-6 kcr Royalty Dues to Gujarat: HC to ONGC
ujarat High Court has directed ONGC to pay dues worth.5,000 crore
to.6,000 crore to the state government towards differences in royalty of
crude the PSU has extracted since 2008.A division bench headed by Chief
Justice Bhaskar Bhattacharya and Justice J B Pardiwala Saturday directed
ONGC to pay differences in royalty of crude within two months and also pay
royalty,henceforth,to state government at market rate.
Tata Power Plans to Raise up to.5,000 cr in Next 3 yrs
Tata Power is exploring various options to raise around.5,000 crore in the
next three years.For raising funds,Everything is being studied,what is likely
and what is not likely,something which we have not reached the decision as
yet, Tata Power told analysts in November.
Stricter Green Norms to Make Two-wheelers Costlier from 15
The government is set to drive in stricter emission norms for two-wheelers
which will make motorcycles and scooters less polluting but costlier
by.1,500 to.10,000.New emission norms for two-wheelers to be sold in the
country from 2015 have been finalised and will be notified shortly. We
have carefully scrutinised the requirements for the Indian market.The
Indian emission norms for two-wheelers are unique since we dont follow
the European Union as we do in the case of bigger vehicles like cars,trucks
and buses,who did not wish to be named.The new norms are likely to cut
down emissions from two-wheelers by about a quarter and are expected to
make a significant contribution to containing vehicular pollution since
twowheelers account for more than 75% of the countrys automotive
market.
ICICI Venture Infra Fund May Raise up to 1,685 cr
ICICI Venture has secured commitments of up to $270 million (.1,685
crore) for its debut infrastructure fund from potential investors including
Temasek,Life Insurance Corporation and General Insurance
Corporation,signalling the return of investors faith in the growth potential
of the sector at a time when the economic slump has dented the ability of
private equity funds to raise money.Indias largest home-grown private
equity fund has received commitments to the tune of $150 million (.936
crore) from domestic investors and another $120 million (.749 crore) from
international investors,including sovereign and pension funds,according to
two people familiar with the development.Temasek,an investment
company owned by the Singapore government,is understood to have
committed $100 million to the new fund,which aims to raise $500 million
(.3121 crore) as corpus.Final discussions are on with many global
investors.The fund may announce its first closure soon, said one of the
persons quoted above.In private equity parlance,binding commitments are
firm obligations made by investors to provide money for investments.ICICI
Venture managing director Vishakha Mulye did not respond to email
queries on the subject.Temasek,LIC and GIC declined to comment.IDFC
raised $644 million (.4057 crore) for its second infrastructure fund in
September this year from investors in Europe North America and the
United Kingdom,the first sign of renewed interest by global investors in
investment opportunities in Indias infrastructure sector.
Nilons Enterprises Looks to Sell up to 49%,NRI Investor may Get Exit Option
Pune-based packaged food and picklemaker Nilons Enterprises is looking
to sell up to 49% to a strategic investor,three people with direct knowledge
of the plans said.The sale will give its nonresident Indian investor an exit
option,these people said.The company,valued at.450-500 crore,has
appointed investment bank Avendus Capital to scout for investors.Kirit
Pathak,a London-based entrepreneur,had invested.75 crore in the company
in 2008.He holds 26-50 % in various group entities of Nilons
Enterprises.The promoters are looking at a strategic investor who can buy
out the existing investor and can take the company to the next level of
growth, said an investment banker privy to the development.Founded in
1962,Nilon's sells Indian spices, vermicelli, ketchup, sauces, chutney,
instant mixes and macaroni. Apart from India,Nilons Enterprises sells its
products in countries such as France ,Japan, Dubai, Singapore, Malaysia,
South Africa, Australia and New Zealand.
Holidayers Look Beyond Goa to Ring in New Year
Shivangi Bose,a communications executive at a software consultancy in
Mumbai recently dropped plans of celebrating Christmas in Goa,when she
realised that a one-way airfare was going to cost her more than last years
round trip ticket.Sreemoyee and Anindya Banerjee,both copywriters in an
advertising agency in Delhi had been planning a trip to the city to celebrate
their first wedding anniversary on December 27 and bring in the new year
thereafter.They have now decided to spend a week in Meghalaya and
Sikkim instead as the entire trip would cost them just a little over what a
round trip airfare to Goa would.Sulakshana Ray,a marketing executive with
Viacomm 18 doesnt have that option.She had to attend a friend's wedding
in January and has booked train tickets for one way,to save costs.These
aren't isolated examples.
Orbiter Takes Another Big Leap on Journey to Mars
The Mars Orbiter must have taken a long and hard look at planet earth on
Saturday.Exactly 49 minutes into Sunday (IST),ISRO engineers began to
crank up its velocity to levels where the earth can no longer hold it in its
orbit.After 22 minutes of this exercise,it was pushed out of the earths orbit
at a velocity of 11.4 km per second,and on to a parabolic arc around the sun
that would eventually take the orbiter to Mars.On December 4 at 2:16
am,the orbiter will completely leave the earths sphere of influence.By then
it would have travelled enough in its parabolic trajectory for ISRO
engineers to accurately determine deviations from its predicted path,if
any.On December 11,ISRO would carry out a correction if required in the
spacecrafts path.The path of the spacecraft is very close to the expected
trajectory, says ISRO chairman K Radhakrishnan.
Govt Plans to Recast Loans,Waive Fines of Private Power Cos
A big relief is on the cards for power firms such as Tata Power,Adani
Power,Reliance Power and Essar Power whose plants are in trouble,and
their lenders who are worried about loans of.2 lakh crore to the sector.The
government is working out a plan to restructure the loans,extend
repayment deadlines by three years and waive penalties,officials said.The
private sector,that has invested heavily in recent years and accelerated
capacity addition,is struggling with fuel scarcity and distribution
bottlenecks.Large capacities of plants based on coal or gas are stranded
because of fuel scarcity,while many are facing delays in clearances.The
proposal aims to help plants with 65,000-70,000MW capacity that have
suffered in the last four years due to reasons like shortage of fuel,lack of
regulatory clearances and rupee depreciation.
Property Tax Row: Wipro Gets Interim Relief
Wipro said it has won an interim order from the Karnataka High Court
restraining the Bangalore civic body from forcing Indias secondlargest
software exporter to pay a disputed property tax claim until further
notice.The court order comes four days after officials from Bruhat
Bangalore Mahanagara Palike (BBMP) visited Wipro campus in Sarjapur
seeking.16.47 crore in property taxes,which the company has refused to
pay.Against the backdrop of the developments on November 27,Wipro
approached the honorable Karnataka High Court seeking its intervention to
restrain Bruhat Bangalore Mahanagara Palike (BBMP) from resorting to
coercive tactics. HC since passed an interim order directing BBMP to desist
from any coercive action, a Wipro spokesman said in an emailed response.
Wipro has refused to pay the tax as it believes the city officials tax claims
are unjustified.BBMP said it will fight the case until it wins. This is just an
interim stay order.We will employ a lawyer and fight it, said MS
Shivaprasad, chairman of civic bodys standing committee on finance and
taxation.According to city officials, Wipro has refused to pay property tax
since 2008 despite repeated notices from civic authorities.
IvyCap, Existing Investors Infuse.31 crore into Aujas
IvyCap Ventures is leading a.31 crore-investment in information risk
management service provider Aujas.Existing investor IDG Ventures India
along with new investor Rajasthan Venture Capital Fund also participated
in the round.Aujas will use the funds to hire talent,scale up its technology
platform and strengthen the companys presence in North America,South
Asia and West Asia.This funding will allow us to continue to invest in
technology and global operations, said Srinivas Rao,CEO of Aujas.(Aujas is a
Sanskrit word for the strength and energy of a warrior).We provide
technology to defend and secure data,applications, said Rao whose
company counts large banks and telecom companies as clients.The global
cyber security market is expected to grow from $63.7 billion (.3.9 lakh
crore) in 2011 to $120.1 billion (.7.5 lakh crore) by 2017,at an estimated
CAGR of 11.3% from 2012 to 2017.Aujas was incubated by IDG Ventures
India as part of an entrepreneur-inresidence programme.
Private Firms May Get to Explore Shale Gas in Own Blocks
The oil ministry may soon move a Cabinet note allowing exploration of
shale resources by private firms in blocks held by them,a move that comes
at a time when it is also preparing the ground for launching the fifth round
of bidding for coal bed methane blocks after a gap of more than three
years.The government also plans to extend,albeit with a few stringent
conditions,the recently approved shale exploration policy,which allows
only state-run ONGC and Oil India to explore shale resources in their
existing oil and gas blocks,officials said.The ministry has proposed
automatic extension of lease period in blocks held by private companies if
they are interested in exploring shale oil and gas.But only such blocks will
get extension where the lease will expire after two years,officials
said.Energy explorers have slammed this condition for extension.If two
years,why not two days What is the purpose of the government Is it to
encourage exploration or restrict it India has no proven shale oil and gas
and the restriction will discourage private investments, said a member of
Association of Oil and Gas Operators (AOGO),requesting anonymity.About
two dozen energy firms including Cairn India,ONGC,Reliance Industries,BP
and BG are members of AOGO..
US Buy to Help Meet NAFTA Demand: Mittal
Billionaire NRI Laxmi Mittal said acquisition of ThyssenKrupps 5.3 million
tonne (MT) steel mill in the United States for $1.5 billion will help the firm
to cash in on the growing demand for auto-grade steel in North American
Free Trade Agreement (NAFTA) region.The acquisition expands
ArcelorMittals capability to serve and develop growing NAFTA demand for
high value-added products from a region we are under-represented, Mittal
said at a conference call,a day after announcing the acquisition.PTI
Vodafone Misrepresented Facts in SIM Renting Case,Alleges Matrix
International SIM card provider Matrix Cellular has alleged that telecom
operator Vodafone has misrepresented facts in the SIM renting case of
2007 to the telecom department (DoT) and the Telecom Disputes
Settlement Appellate Tribunal (TDSAT).In 2007,the DoT had alleged
Vodafone,Airtel and Idea rented SIMs to Matrix Cellular in bulk,violating
subscriber verification norms and causing loss to the exchequer by not
showing the revenue gains from the deal in the adjusted gross
revenue,based on which government levies various fees on telecom
operators.Matrix believes that Vodafone has misrepresented facts to the
DoT and TDSAT.The business that Matrix engaged in was at all times legal
and with the express,written consent of Vodafone, Matrix told PTI in
response to a particular query.Vodafone declined to comment on the
matter.The DoT has plans to send fresh show cause notices to
Vodafone,Airtel and Idea which have sold bulk connections to third parties
who in turn were selling those SIMs to retail subscribers.The DoT has
found Vodafone and Matrix Cellular had entered into an agreement,but the
telecom operators contested before tribunal TDSAT,that it had no
knowledge of the purported activities of Matrix so far as giving on rental
the SIM cards issued to it is concerned. Matrix claimed all documentary
evidence in this regard is available with Matrix.
BSNL Ties Up with C-DoT for Building.450-cr Centralised Monitoring System
Bharat Sanchar Nigam (BSNL) has inked a pact with the Centre for
Development of Telematics to build a virtual private network that will be
the backbone of Indias much-awaited automated surveillance
network,popularly known as the Centralised Monitoring System.The
network will use a technology known as multiprotocol label switching
(MPLS) which will enable the centralised monitoring system (CMS) to track
all forms of communication,be it over mobile,landline,satellite,internet
networks to even voice over internet protocol (VoIP) calls,says an internal
telecom department note seen by ET.The Centre for Development of
Telematics (C-DoT ) is the telecom research arm of the government.Under
the terms,staterun Bharat Sanchar Nigam (BSNL) will initially provide
MPLS connectivity across 81 locations on the CMS network in eight
licenced service areas,including
Delhi,Mumbai,Kolkata,Chennai,Haryana,Rajasthan,Punjab and Karnataka,
the note says.The pact comes at a time when the telecom departments
security wing has concluded CMS operations-related training at six law
enforcement agencies (LEAs),including Intelligence Bureau,Central Bureau
of Investigation,Directorate of Revenue Intelligence,Research & Analysis
Wing,National Investigation Agency and Delhi Police.After the Mumbai
terror strikes in 2008,CMS has been among Indias most talked about
national security drives that targets private information of individuals as it
will enable real-time tracking of online activities,phone calls,text messages
and even social media conversations.The proposed system will equip LEAs
to record,store and playback all forms of communications,without
interfering with network operations to ensure the target is unaware of
scanning.The.450-crore CMS project,which will be entirely funded by the
government,is slated for completion by December 2014.
Strong GDP Show,FIIs to Perk Up Mood
Indian markets are likely to edge higher this week on better-thanexpected
second-quarter GDP numbers,according to analysts.Flows from
institutional investors could also set the tone,with some experts saying the
aggressive buying by foreign investors on Friday is likely to keep
stockspecific momentum up.The second-quarter GDP numbers will dictate
market sentiment this week.If Nifty trades above 6,210 levels,then the
index will invite fresh long buying positions,and this may push the markets
higher to ceiling level of 6350, said Shrikant Chouhan,head technical
research at Kotak Securities.Investors should buy PSU banks and IT
stocks,and book profits at higher levels. Data released after market hours
on Friday showed the economy grew 4.8% in the three months to
September 30,beating market expectations,on the back of improvement in
farm and construction sector output.For the week ended Friday,the
broader index,NSE Nifty,rose 180 points,or 3.01%,to 6,176,while the 30-
share BSE Sensex gained 574 points,or 2.84%,to 20,791.
Hero Fast Catching Up with Bajaj in the Race to the Top
Bajaj Auto seems to falling out of favour with analysts and investors,who
are shifting their preference to Hero Moto-Corp in their portfolios in the
near to medium term,given the way in which the Delhi-based two-wheeler
company has clawed its way back into contention.Hero has demonstrated
exceptional customer franchise by growing better than most competitors in
the festive season.We expect stock to re-rate in line with historical
multiples (9.5x EV/Ebitda), said S Arun,auto analyst at DSP Merrill Lynch,in
a recent note.According to Bloomberg consensus estimates,Heros earnings
per share (EPS) will equal that of Bajaj by FY15-end and exceed it in
FY16.For FY14,Heros EPS is expected to be.109 and that of Bajaj to
be.124.Given its strong distribution network and rural reach,Hero clearly
has an edge over rivals in rural India,currently the most attractive market
amid the economic slump,given a good monsoon and consequent rise in
farm-related incomes.Hero appears on a stronger foothold due to its strong
presence in the rural market,demand from which is likely to sustain,while
prospects for Bajaj are relatively not so good,at least for the next two
quarters.
Credit Bureaus Help Micro Lenders Bring Down Defaults
Microfinance institutions (MFIs) have been able to bring down the rate of
loan defaults three years after an Andhra Pradesh crackdown led to a crisis
in the industry.Lenders have become more cautious about disbursals as
they seek out borrowers credit histories before deciding on an
application.The information is sourced from credit bureaus Equifax and
High Mark India,which have access to around 11 crore loan accounts
sourced from different lenders that are their members.In the last two
years,data for about 8 crore MFI borrowers have been added,said Chandra
Shekhar Ghosh,chairman and managing director of Kolkata-based micro-
lender Bandhan,adding that this was a world record.Delinquency,or
defaults by number of loan accounts older than 30 days,nearly halved to
around 0.8% in October from more than 1.5% in the year-ago
period,according to the latest data supplied by Equifax India to
ET.According to High Mark India data,in comparison with
2012,delinquencies seen as a function of portfolios that are 60 days
overdue,have fallen by a good 2% on the whole.The 2010 crackdown in
Andhra Pradesh,which dominated the MFI business at the time,followed
complaints of coercion being used to get borrowers to repay their loans
and reports that some of them committed suicide because of this.
MCX Turnover Hits Five-year Low on CTT,NSEL Fallout
A new tax on non-food items,a crisis in a promoter group firm,increase in
margins and a trading closure of non-farm products on Saturdays have
culminated in trading volumes on MCX,the countrys largest commodity
exchange and the only listed one,having fallen by a whopping 70% over the
past five months.Average daily volumes during November plunged
to.15,369 crore from.48,179 crore in June,a decline of 68.1%.This,in
turn,took MCXs turnover to a five-year low last month.The average daily
volume was.15,974 crore in January 2009.Since MCX normally contributes
around 85% of total commodity futures market volumes,a drop here
influences the trend in the overall market.Indeed,total futures turnover of
six commodity exchanges,including MCX,has fallen by 54% over the same
period.What hit MCX specifically,and the commodity market generally,was
the governments levy of a transaction tax on non-farm commodity futures
at.10 per lakh on the sell side from July this year.
Small Fund Houses Protest Rise in Rating Fee for Debt Plans
Small mutual fund houses are in a dilemma over the fees they will have to
pay to the two credit rating agencies Icra and Crisil with the onset of a new
valuation method for debt schemes from November 30.All asset
management companies (AMCs) have been advised by the Association of
Mutual Funds in India (Amfi),the industry body,to move towards a
scripbased valuation method.Under this,all holdings that mature beyond 60
days will be marked-to-market,which will,therefore,endure daily volatility
and help funds to arrive at a more realistic valuation.Earlier,the fund
houses followed yield-based valuation method where Icra and Crisil
collated trade data of all government securities (G-secs ) and then gave a
suitable mark-up in terms of yields for other rated instruments.This tells
how much the debt fund will get affected if interest rates (on debt security)
were to move up or down by 1%,which became the valuation.The AMCs
availed yield matrix from any of the two rating agencies for a certain
fee,which depended on the fund houses asset under management (AUM).
Jet Fuel Price Increased Marginally by 0.8%
Jet fuel,or ATF,prices were on Sunday hiked by a marginal 0.8% in step
with rise in import cost due to rupee depreciation.The increase follows a
steep 4.5% cut last month,the first reduction in rates in six months.ATF
price in Delhi was hiked by.597.48 per kilolitre (kl),or 0.8%,to.74,204.74,
according to Indian Oil Corp,the nations largest fuel retailer.ATF prices had
touched a life-time high of.77,089.42 per kl in October following five
consecutive increases since June as rupee depreciated against the US
dollar,making oil imports costlier.However, the rupees appreciating
thereafter helped trim imported cost,leading to cut in prices in November.
However,rates have been increased again as rupee value has dipped
marginally.In Mumbai,jet fuel will now cost.76,658.27 per kl.
Govt asks Coal India to Meet Output Target for FY14
Coal minister Sriprakash Jaiswal has asked stateowned CIL to ensure that it
meets production target for the ongoing fiscal.The coal minister has asked
CIL to make sure that it meets its production and offtake targets for the
current fiscal, a coal ministry official said.The ministry has set a production
target of 482 million tonnes (mt) and offtake of 492 mt for CIL for 2013-
14.The message was communicated to the company during the target
review meeting held on November 27 in Kolkata,the official said.The
meeting chaired by Jaiswal was attended by Coal India CMD S Narsing Rao
and other officials of the PSU and its subsidiaries,the official added.CIL
produced 35.03 mt coal in October,missing its target of 40.82 mt.It also
missed the offtake target of 41.55 mt for the month.It registered actual
offtake of 35.51 mt.
RBI may Allow up to 74% FDI in Credit Info Cos
The RBI may allow up to 74% FDI in credit information companies.The RBI
may consider allowing higher FDI limits to entities which have an
established track record of running a credit information bureau in a
wellregulated environment, RBI said in a notification.The limit can be
increased up to 49% if their ownership is not well diversified,which means
if one or more shareholder each holds more than 10%voting rights in the
company.The limit can be raised to 74% if the ownership is well
diversified,RBI said.A credit information company collects and maintains
records of an individuals payments pertaining to loans and credit
cards.These records are submitted to the CIC by banks on a monthly
basis.According to a CIL official,the PSU suffered production loss in October
due to Cyclone Phailin,which affected the key coal producing states of
Odisha,Jharkhand and West Bengal.
India Pitches for Balanced Accord at WTO Meet
India will pitch for a balanced accord at the World Trade Organization
(WTO) ministerial meeting beginning Tuesday,but said it wont budge from
its position on food security for the poor,which is sacrosanct.Still,the
prospects for a deal at Bali have brightened after the initial stalemate,with
countries showing some flexibility on key issues including trade
facilitation.New Delhi will push hard for a permanent solution to farm
subsidies safeguards during the extensive discussions at the four-day
conference.Commerce and industry minister Anand Sharma has said that
he will not compromise on the governments food security plan at the WTO
meeting.The so-called Bali package includes agriculture,trade
facilitation,the development agenda and packages for least-developed
countries (LDCs).
Flipkart Takes its Biggest Delivery,Offline
Ecommerce major Flipkart has stormed the IITs emerging as the largest
recruiter in the first three-and-half days of this placement season.Dozens of
other,lesser-known startups including Unbxd,Wooqer,Edudigm,ZeMoSo
Labs are also making a significant number of hires,getting the better of
many established companies in the war for talent.Flipkart has made 118
offers so far to the class of 2014 and is turning out to be a huge draw at
IITs,hotspots for the best Indian engineering talent.At IIT-Roorkee,for
example,600 out of 1,600 students applied for jobs at Flipkart,according to
placement sources.It picked up 11 students.The company picked up the
most number of students,36,at IIT-Kanpur.Our USP is clear those who join
us get the opportunity to build a company and its business from the ground
up,grow along with it and learn at a pace and flexibility that is unmatched
in the industry, Sachin Bansal,co-founder,Flipkart told ET.Founded six
years ago by two IITians,Flipkart has raised $360 million in the past six
months.
Watchdog Sinha to Get 2 More Years
The government is likely to approve a second term for UK Sinha,the
chairman of Sebi,three people with knowledge of the matter said.Sinha was
given a three-year term in early 2011 which will run until the second week
of February 2014.He will be offered a fresh term of two years,the people
quoted earlier said.The finance ministry,which handles regulatory
appointments in the financial sector,has sought vigilance approval,a
mandatory part of the re-appointment process,they said.Sinha refused to
comment.All the full-time members appointed to Sebi since 2011 have been
given five-year tenures and the thinking is that the head of Sebi should
have the same tenure.The fact the government chose not to appoint a
search panel to look for a successor is a clear signal the ministry has backed
Sinha.
Design Spoils Apple,Reliance Retail Ties
Reliance Retail will shut 16 of its 20 exclusive Apple iStores as several of
them dont comply with the global store design specified by the maker of
iPhones and iPads,which could disrupt the US companys bid to push sales
in India,where its share of the smartphone market lags way behind leader
Samsung.On the other hand,the move will allow Reliance to step up focus
on its new format,Digital Xpress,with former iStores being converted into
such outlets.
Broom may be AAPs,But BJP to Wield it in 4 States
BJP appears to be on course to make a total 4-0 sweep of the latest round of
elections to the legislative assemblies in the four states of Delhi,Madhya
Pradesh,Rajasthan and Chhattisgarh,if exit poll results released on
Wednesday are to be believed.These polls,which involve interviews with
voters as they emerge from polling booths,show BJP wresting Rajasthan
away from Congress,holding on to MP and Chhattisgarh and emerging as
the single largest party in Delhi.If confirmed by actual results on Sunday,an
emphatic victory on such a scale will give the main Opposition party strong
momentum going into the 2014 general elections and will be a major shot
in the arm for its PM candidate Narendra Modi,who had campaigned
extensively in all four states.For Congress,it could trigger a hard look at its
strategy and increase the pressure on it to resort to course corrections.If
the exit polls are showing 4-0 in favour of BJP,its clearly a victory for
Modi.If Chhattisgarh does not go the BJP way,then Modi will get a jolt.If BJP
loses Delhi,it will be a setback for Modi.For the Modi wave to be real,BJP
needs a higher vote share.It should be at least 4-5 % more, said sociologist
and political analyst Dipankar Gupta.
Delhi Breaks Record with 67% Turnout
Shedding its dubious reputation of being apathetic to elections,the Capital
broke the 61.75% turnout record it set in its very first assembly elections
of 1993 on Wednesday,fuelling speculation that this,in the backdrop of
rising prices and corruption charges,could mean bad news for the ruling
Congress.Voter enthusiasm also led the Election Commission to delay the
closure of some booths by three and a half hours in an unprecedented
step.According to Delhi election officials,a record 66.5% of 1.19 crore
voters had exercised their franchise to decide the fate of the Capitals first
three-cornered contest among the Congress,BJP and AAP.With long queues
at some voting stations even beyond the 5 pm closing time,the Election
Commission said they would remain open until 8:30 pm.Delhi has belied all
expectations and I would like to credit our youth with this achievement,
said Delhi chief electoral officer Vijay Dev.This Delhi election is seen as the
toughest electoral battle of chief minister Sheila Dikshits career as she is
not only fighting to ensure her party returns to power for a fourth time but
is also facing stiff competition in her own constituency with AAP chief
Arvind Kejriwal and BJPs former state president Vijender Gupta as her
opponents.
Many Opt for NOTA in Delhi Elections
Even as large numbers of voters came out to decide the fate of the
Congress,BJP and AAP,there were some who turned up only to register
their disillusionment through the None of The Above option.... At least I can
let the political class know how I have little expectation from it, said
Siddhartha Roy,a resident of Rohini.
EC Drive,Parties,People Make All The Difference
All the five states that went to polls over the past month,and whose results
will be announced on Sunday,have seen an increase in voter turnout.While
Rajasthan has recorded t h e h i g h e s t j u m p o f 9 %,Chhattisgarh and
Madhya Pradesh have posted an increase of 4.5% and 3.5%
respectively.Political parties have attributed this higher turnout variously
to anti-incumbency or enthusiasm for their candidates and policies,but
other factors have also been at work.The first of these is the sterling work
done by the Election Commission to ensure a higher voter turnout. The
second is the wider recognition among voters and candidates that these
polls are more closely fought than previous ones and,therefore,every vote
could indeed count.
Sharif Didnt Talk of War,Pak Clarifies
Pakistan on Wednesday described as incorrect a media report that Prime
Minister Nawaz Sharif had contended the Kashmir issue was a flashpoint
which can trigger a fourth war with India.Prime Minister Muhammad
Nawaz Sharif is of the opinion that any issue of conflict between Pakistan
and India has to be resolved through peaceful means, said a statement
issued by his office.The Dawn had quoted Sharif as saying that Kashmir is a
flashpoint and can trigger a fourth war between the two nuclear powers at
any time..The report said he made the remarks during a brief address to the
Council of Pakistan-occupied Kashmir in Muzaffarabad on Tuesday.
HC Asks State Govt to Spell Out Policy on Road Toll Charges
Hearing a bunch of PILs against toll being charged on incomplete and bad
roads in various parts of the state,the Bombay High Court on Wednesday
asked the Maharashtra government to file an affidavit explaining its policy
in this regard within two weeks.A Bench of Justices SJ Vajifdar and Gautam
Patel also asked the state to spell out its stand whether it would continue to
collect road tax on Pune-Shirur highway and other places despite
incomplete projects and poor condition of roads.The state has also been
asked to explain why the contractors appointed by the government were
collecting toll despite a letter written by Public Works Department (PWD)
to stop levying such amount.One of the PILs was filed by one Shashikant
Changede against toll being charged on roads which are incomplete in Pune
and Ahmednagar.The petitioner informed that on the Pune-Shirur road
there were two toll nakas and government was not monitoring cash flow at
one.The other petition was filed against toll collection at Pune-Shirur
highway despite bad conditions of roads.
All Exit Polls Give the Highest Seats to BJP in Delhi
In Delhi,which was the last of the four states to go to polls and where voting
was extended till 7.15 pm on Wednesday amid unprecedentedly high voter
turnout,the jury was still out with none of the pollsters committing on just
who would form the government.While all polls gave the highest number of
seats to BJP,the debutant Aam Aadmi Party (AAP) led by Arvind Kejriwal
was being credited with winning anywhere between six and 18 seats,an
unusual feat for a new political party.One exit poll the Headlines Today poll
conducted by ORG gave BJP 41 seats in the 70-member assembly while
most others gave it 30-40 seats.But Chief Minister Sheila Dikshit,who put
up an almost lonely battle at times,dismissed the polls.Every time it is the
same thing,you always underestimate Congress and we are voted in by the
people.I will wait till the (December) 8th to comment, said the three-time
chief minister.In the 2004 and 2009 general elections,most pollsters failed
to see the Congress victory.While Congress was dismissive,BJP made little
effort to hide sounding triumphant.This is as per our expectations.We
always said that both our chief ministers would return,and in Rajasthan
and Delhi it will be a homecoming after a gap.
NDA Readies Winter Course,to Oppose Rayal-Telangana
BJP leaders and its National Democratic Alliance partners went into a
huddle on Wednesday to discuss the party strategy for the winter session
of Parliament beginning Thursday.The leaders who met at LK Advanis
residence on Wednesday night decided to insist on crucial legislations on
Telangana,Lokpal and womens reservation to be taken up during the
winter session.Though these bills are on the governments agenda,smooth
passage in the House is unlikely given the opposition to it by some parties
or the others.Lohiaite parties have resisted the womens reservation
bill,while MPs from Seemandhra are likely to do the same on the bill to
bifurcate Andhra Pradesh.The Lokpal Bill has been passed by the Lok Sabha
but has been stuck in the Rajya Sabha.It is unlikely that it will be done in
this session in all the din that is likely to be triggered by different parties.
Cabinet to Take Up Telangana Bill Today
A group of ministers has formally approved the creation of Telangana
state.The Union Cabinet will consider the GoMs report on Thursday,Home
Minister Sushil Kumar Shinde said after the final meeting of the GoM on
Wednesday.The GoM was given the task on October 13 and as per the
directions,the GoM has completed its work today.The Cabinet will consider
GoMs report tomorrow, Shinde told reporters.Though officially no details
of the GoM report have been shared,it is believed that the GoM has
recommended that the Rayalaseema districts of Anantapur and Kurnool be
added to the new state of Telangana,a move which may enhance political
gains for Congress in the 2014 general elections.If approved by the
Cabinet,the new state will have 21 Lok Sabha constituencies and 147
assembly seats,the same as the residual state of Andhra Pradesh.There is
no clarity available yet on who will administer law and order and revenue
functions in Hyderabad,which will be a joint capital for both states for the
next 10 years.
RJD and LJP Seen Drifting Apart
The Rashtriya Janata Dal (RJD),facing its biggest political crisis following
incarceration of its chief,Lalu Prasad,seems to soured its ties with alliance
partner Lok Janshakti Party (LJP) of Ram Vilas Paswan.The first
provocation came from RJD,when its Banka MLA Javed Eqbal Ansari
described LJP as a treacherous party,while alleging Ram Vilas Paswan could
not see beyond his son.RJD leaders,including Vaishali MP Raghuvansh
Prasad Singh,followed this up and suggested that RJD could contest all 40
Lok Sabha seats.LJP termed the statements as affronts.It is significant that
Singhs remarks were made after he visited Prasad in jail.LJPs exploration of
a possible alliance with JD(U)- Congress may have triggered RJDs
outbursts.If things become adverse,we will find contest all 40 Lok Sabha
seats.It was very sad RJD leaders have said things that has agitated our
party cadres and workers, the chairman of the LJP Parliamentary Board
Chirag Paswan told ET on the issue.
When You See Something, Say Something: US Police to India
India should prepare itself for mass casualty events and involve citizens in
reporting early warning signals,police officials from the US have advised
their Indian counterparts in a presentation on the Colorado shooting
incident inside a movie hall in 2012 that left 12 dead.The US officials said
they had already incorporated learning from the Nov 26,2008 terror
attacks in Mumbai in dealing with such crises.At the first US-India Police
Chiefs conference in Delhi on Wednesday,Stu Frome,the deputy chief of
staff of US Federal Law Enforcement Training Centre,said while opening
the session.
To Push China Network,InMobi Joins Hands with CocoaChina
Mobile advertising network InMobi is partnering with CocoaChina,owned
by mobile game publisher Chukong Technologies,in a deal expected to
create new streams of revenue for the Chinese gaming company.The
partnership brings gaming franchise,Fishing Joy owned by CocoaChina,into
InMobis advertising network.We aim to attract more developers to our
platform as a result of this partnership, said Li Jian,director of inventory at
CocoaChina who expects the partnership will help better monetise his
companys user base of over 100 million game consumers.For Bangalore-
based InMobi,this is the third global partnership to be firmed up in the last
one month.Japans instant messaging network Line Corporation is
partnering with InMobi to promote its virtual currency to global app
developers.
HTC One Mini Faces UK Ban After Court Ruling on Patent Infringement
HTC Corp will have to stop selling its One Mini smartphone in Britain from
December 6 after a British court ruled the Taiwanese company had
infringed patents owned by Finnish rival Nokia.Justice Richard Arnold of
the England and Wales High Court on Tuesday granted Nokia a final
injunction to stop HTC from continuing to infringe upon a European Patent
held by Nokia related to mobile phone microchips.The judge had ruled in
October that HTCs One phone contained the microchips. HTC,responding to
the lawsuit,said on Wednesday it would appeal the ruling.We have filed
urgent application to appeal.In the meantime,we are working with our chip
suppliers to explore alternative solutions, it said in a statement.Analysts
said the ban would have limited impact on HTC's sales as the One Mini is
also not its flagship model.
Facebook Phases in Unfollow Button
Facebook has replaced Hide All button with the more succinct
Unfollow,which gives users the option to block content from certain people
without offending them.This means you are still friends,but updates from
that person won't appear in your newsfeed, Facebook said.
Large Smartphones Eroding Tablet Market
As an increasing number of consumers opt for smartphones with large
screens,research firm IDC has revised its global tablet shipments
downwards by over 6-million units to 221.3-million this year.Earlier,it had
projected worldwide tablet shipments to touch 227.4 million units in 2013.
Honda to Increase Prices of All its Cars
Honda Cars India is looking to hike prices of its entire product range in the
country from the first week of January as it aims to partially offset the
effects of adverse exchange rate and inflation.Hondas range comprises
Amaze,Brio,CR-V and Accord.
Ranbir New Brand Ambassador for Oreo
Cadbury India,a part of Mondelez International,has roped in actors Ranbir
Kapoor and Karthi as brand ambassadors for its biscuit brand 'O reo' in the
country.The two brand ambassadors will be introduced through a new
campaign 'Connect Playfully',
SIM Renting Case: Voda Contests Allegations
Telecom operator Vodafone has contested allegation levelled on it by
international SIM card provider Matrix Cellular that the telecom major
misrepresented facts in SIM renting case of 2007 in which the department
of telecom and the Intelligence Bureau found various irregularities.The
allegations made by Matrix are without merit and will be strongly
contested,as appropriate, Vodafone India's Spokesperson said in response
to e-mail query.In 2007,DoT had found involvement of Vodafone,Airtel and
Idea in a case where the three had sold bulk connections to third parties
who in turn were selling those SIM to retail subscribers and in the process
flouted certain rules.
Ashok Leyland Offers VRS to 500 Senior Officials
Hinduja Group flagship company Ashok Leyland has offered voluntary
retirement service for 500 senior officials as on November 30,a top official
said on Wednesday.Roughly 500 executives were offered the VRS
(voluntary retirement scheme) on November 30,representing about 10%
of the executives ..., Ashok Leyland MD Vinod K Dasari said,at the sidelines
of the conference SIMCOMVEC the eighth edition of SAEIndia International
Mobility Conference and first Commercial Vehicle Engineering
Congress.The commercial vehicle major,last month announced the VRS
scheme for its employees as part of the plans to cut manpower costs in the
wake of continued slowdown.
Sebi Seeks Clarifications on Great Easterns IPO
Market regulator Sebi has sought clarifications from the merchant banker
of Great Eastern Energy,a coal-bed methane explorer,regarding the
companys proposed initial public offering (IPO).Without disclosing the
details of the clarifications sought,the Securities and Exchange Board of
India (Sebi) has said that clarifications (are) awaited from Lead Manager
for the proposed public offer.As per the latest weekly update to the
processing status of draft offer documents filed with Sebi,the regulator has
said clarifications were awaited on the IPO of Great Eastern Energy as on
November 29,2013.
Jyothy Labs Raises.263 cr via Preferential Allotment
Home-grown consumer goods company Jyothy Laboratories (JLL) on
Wednesday said it has raised.263 crore via preferential allotment of shares
to a promoter group firm.The city-based company has allotted 1.5 crore
equity shares of Re 1 each at a price of.175.15 per equity share to Sahayadri
Agencies.Post allotment,the paid up equity share capital of Jyothy Labs has
increased to.18.10 crore from.16.60 crore.With this the promoter holding
in JLL has gone up from 63.69% to 66.7%,a company release said.Post
successful integration with Henkel India it was the right time to invest in
existing brands and also expand JLL's portfolio.The preferential allotment
of shares along with NCDs to a clutch of investors will help JLL to save the
yearly interest burden of about.60 crore, Jyothy Labs joint MD Ullas
Kamath said.
IBM to Contest Revenue Departments Tax Claim
US-based technology major IBM is contesting a claim of the revenue
department which has increased the company's taxable income
substantially to around.11,000 crore.IBM does not agree with the tax
department's claims and will aggressively defend itself through the
appropriate judicial process, a company spokesperson said.The
company,according to sources,has approached the Dispute Resolution
Panel (DRP) against the order of the assessing officer who had alleged
under-stating of revenues by the US technology group.
Bollywood Movies a Hit in App World,Too
Even as Bollywood film Krrish 3 continues to break several box-office
records,the superhero is battling villain Kaya and his mutants not just on
the big screen but on thousands of smartphones as well.The Krrish 3
game,launched just a few months ago,rose up the charts at Android and
Apple app stores recently with more than two million downloads
globally,in line with Bollywood blockbusters increasing influence in the
rapidly growing world of mobile phone gaming.Krrish 3,Dhoom 3,Chennai
Express and Race 2 are among the most popular Indian smartphone games
this year,generating downloads in the millions on the Google Play and
Apple Store.And they are generating revenues through the 'freemium'
model,where the game is free but in-app purchases are charged.One of the
most attractive factors of such games is that these are characters Indians
can identify with, said Vineet Durani,director of Windows phone business
group at Microsoft,which has backed games such as Dhoom 3 and Krrish
3.Most games from abroad dont have story lines that are relevant to
India,he said.India is estimated to have nearly 40 million Android phones
and three million iPhones,and users spend an average 15 minutes a day on
gaming.With Bollywood being pretty much the only source of heroes and
villains,it accounts for nearly 15% of the.1,500-crore gaming business in
the country, according to a recent KPMG-FICCI report.
Regional Air Connectivity Policy May Not Be Ready Before Polls
The wait for a new regional air connectivity policy has gotten longer,with
doubts arising on whether it will be ready by the next elections.A new
policy was expected to heed to the long-standing demands of private
airlines to do away with the Route Disbursal Guidelines (RDG).However,as
per the latest quarterly meeting of the aviation ministry with the airlines,it
emerges that the policy has gone back to the drawing board with just
months to go before the next Lok Sabha elections.The ministry is in the
process of formulating a policy on regional connectivity, civil aviation
ministrys secretary KN Srivastava said in the meeting with airlines held in
September.The minutes of the meeting were reviewed by ET.The airlines
should submit their views and plans to the ministry so that the same could
be suitably incorporated in the policy. The next quarterly meeting of the
ministry and the airlines is expected to be held in the second week of
December.
10 Indian Varsities in Top 100 BRICS Rankings List
India has claimed 10 of the top 100 places in Times Higher Educations
BRICS & Emerging Economies Rankings 2014 the worlds first ranking of
universities in Brazil,Russia,India,China and South Africa,as well as 17
other emerging economies.In this much smaller,more level-playing
field,with only 22 countries surveyed,India has predictably fared much
better,with its highest-ranked institution Panjab University coming in at
joint 13place.In sharp contrast,India had absolutely no representation in
the top 200 of the Times Higher Education 2013-14 World University
Rankings.Only five universities made it to the top 400,with Panjab
University only making it to the group of universities ranked between
226and 250places.In Times Higher Educations BRICS & Emerging
Economies Rankings 2014,Indian institutions make up 10% of the list,
including nine in the top 50 places.Panjab University,the alma mater of
Prime Minister Manmohan Singh leads the way,followed by the Indian
Institutes of Technology (IITs) at Kharagpur (30th),Kanpur (34),Delhi
(37),Roorkee (37),Guwahati (46) and Madras (47).Jadavpur
University,Aligarh Muslim University and Jawaharlal Nehru University are
in the 47,50and 57spots,respectively.Chinas Peking University and
Tsinghua University take the top two spots in the overall
rankings.University of Cape Town,South Africa comes in at third
place,followed by Taiwans National Taiwan University and Turkeys Boazii
University in fourth and fifth places,respectively.China emerges as the
front-runner in the rankings with 23 institutions in the table.Taiwan comes
next in terms of maximum representatives on the list (21),followed by
India with 10.This is a strong showing for India : only China and Taiwan
have more universities in the top 100.
Private Operators at 6 Airports may Have to Share Revenues with AAI
The civil aviation ministry is toeing a thin line to make the six airports,up
for privatisation,attractive for private investment even as it tries protect
the interest of state-run airport operator Airports Authority of India
(AAI).The government plans to hand over operations and management of
the six airports Chennai,Kolkata,Ahmedabad,Guwahati,Jaipur and Lucknow
to private parties.However,attempts to ensure that AAI does not lose out on
revenue could end up squeezing the potential margins for private airport
operators who will ultimately manage these airports.We will ensure that
AAI does not lose out on revenue, said a senior civil aviation ministry
official,preferring anonymity.The private entity which ultimately takes
charge of these airports will have to share both aeronautical and non-
aeronautical revenues from these airports with the AAI.We are also trying
to put in the clause for lease rentals to be paid to the AAI.So,this should
ensure that AAI doesnt lose out on revenue after privatisation.
McDonalds Venture Very Much Alive: Bakshis Co
Vikram Bakshi-promoted Connaught Plaza Restaurants (CPRL) said its
joint venture agreement with McDonalds has not been terminated,in the
ongoing legal dispute between the two.The joint venture continues to
function as it did with the four members on the board.None of the
employees have been asked to leave.The right to arbitrate and the issues at
hand are all being considered by the Company Law Board (CLB).This is
why the Delhi High Court did not issue a receiver as the JV is very much
alive, a person close to CPRL said.On Tuesday,McDonalds moved the
London Court of International Arbitration seeking termination of the joint
venture and ending the bitter legal dispute with Connaught Plaza.CPRL,the
50:50 joint venture formed in 1995,runs 150 outlets in northern and
eastern India.But the CLB has not yet given its verdict on whether the
dispute between Bakshi and the US company can be referred for
arbitration.
United Spirits to Soon Appoint I-Bankers for Whyte & Mackay Sale
United Spirits,in which the worlds largest distiller Diageo has a controlling
stake,has started the process of appointing investment bankers for the sale
of Whyte & Mackay brands.The move comes soon after Britains anti-trust
authority expressed competition concerns in the blended whiskey market
in that country.Investment bankers such as the Citigroup,Bank of America
Merrill Lynch,JP Morgan and UBS have made their initial pitches to the
company to win the sell-side mandate.The board of USL,controlled by
Diageo,is expected to meet shortly to finalise the investment bankers.The
USL board will meet to discuss the OFT (The Office of Fair Trading) order.It
is premature to speculate on the next steps, said an UB group
spokesperson.Diageo,which bought 25.2% stake in USL,offered to sell most
of the Whyte & Mackay (W&M) brands in a proposal last week to the
British regulator The Office of Fair Trading.Diageo had said in a statement
that the offer covers Whyte & Mackays Invergordon,Jura and Fetteracaim
distilleries in Scotland.
Wipro Scales Down PC Business
Wipro is ramping down production at its PC manufacturing and assembly
factories in Uttarakhand and Puducherry.The company is also shifting
some of the employees in manufacturing division to other roles,said people
familiar with the matter.The management has not conveyed specific
announcement on manufacturing business,but the factory is at a standstill
and fresh production is stopped, said one person with direct
knowledge.This is expected to impact several hundred employees,some of
whom are contract staff.The development comes weeks after HCL
Infosystems announcement that it would move away from PC
manufacturing.Wipro entered the hardware business in 1982,but later
expanded into IT services,which has now become the mainstay for Indias
third-ranked technology services company with sales of nearly $7 billion
(.43,500 crore).Wipros hardware division,which makes laptops,desktops
and servers,has seen falling profitability over the past several
quarters.There has been a slowdown in the factory production and the
company (Wipro) seems to be scaling down this facility, said a local
government official in Kotdwar.
Hexaware Techs New Owner Pledges All Shares with StanC
MENDONCA & MAULIK VYAS MUMBAI
An affiliate of Barings Asia Private Equity has pledged its entire stake in
Hexaware Technologies,barely a month after acquiring majority control of
the mid-sized technology company,to help pay for the acquisition.HT Global
IT Solutions Holdings owns more than 185 million Hexaware shares,giving
it a 62% stake in the company.As of December 3,all those shares had been
pledged,the fund said in a filing with the Bombay Stock Exchange.More
than 60 million shares are now held in pledge by Standard Chartered Bank
Hong Kong.It could not be immediately established who held the remaining
shares.Barings Asia has done a leveraged buyout of Hexaware,where the PE
fund invested a part of the total acquisition cost from their equity fund and
part by pledging the shares they bought with a foreign lender.Barings Asia
did not respond to an email seeking comment.Hexaware did not respond to
a request for comment.In India,such leveraged buyouts by PE funds are
rare,but they are very common globally, PR Srinivasan,a managing partner
at private equity fund Exponentia Capital Partners,said.He added that RBI
does not allow Indian banks to do acquisition financing.Barings acquired a
41.8% stake from Hexaware promoters Atul Nishar and private equity firm
General Atlantic for more than.1,600 crore and then reached a majority
stake through a mandatory open market offer.
Godrej Prop Buys Back Red Forts 49% in IT Park Project
Realty firm Godrej Properties on Wednesday said the company has bought
back private equity firm Red Fort Capitals 49% stake in a subsidiary that is
developing an IT Park in Kolkata,for an undisclosed amount.In 2008,Red
Fort had picked up 49% stake in the IT Park project Godrej Genesis.In
terms of the agreement with Red Fort India Real Estate Babur (Red Fort)
for Project Godrej Genesis at Kolkata,the company has given exit to Red
Fort by purchasing its 49% stake in the equity share capital of its
subsidiary Godrej Developers (GDPL), Godrej Properties said in a
filing.GDPL has become wholly-owned subsidiary of the company with
effect from December 4,2013,it said,but did not disclose the amount it paid
to Red Fort for the stake.In July,Godrej had bought back HDFC Asset
Managements nearly 50% stake each in the realty firm's two projects at
Chennai and Chandigarh.HDFC PMS had invested about.100 crore to pick
up stakes in Godrej Properties two subsidiaries.
US FDA Raises Concerns Over Data Generated by Wockhardt
The US drug regulator has warned Mumbaibased Wockhardt that the lack
of accuracy and reliability of the data it has reported is a serious violation
of good manufacturing practices and raises concerns over all the data
generated by the company.In a 3,000-word letter,the US Food and Drug
Administration has asked Wockhardt to hire a third-party consultant to
address the issues it has raised.We are particularly concerned about your
inability to implement a robust and sustainable quality system.The findings
from our current inspections include repeat citations from FDAs inspection
of the Wockhardt Waluj,Aurangabad,India facility conducted in March
2013, said Steven Lynn,director - office of manufacturing and product
quality,FDA in the warning letter.These repeated observations and
citations indicate that your quality unit is not exercising its responsibilities
and may not have the appropriate authority or ability to carry out its
responsibilities, the letter added.The USFDA had last week issued an
import ban on Wockhardts Chikalthana facility,halting the sale of the
companys top revenue generating drug Toprol and thereby putting breaks
on the companys US business.Toprol is used in the treatment of
hypertension and contributed $120 million (about.720 crore) to the
companys overall revenues.
RIL may Get to Charge New Gas Price from KG-D 6 Fields
Some government departments have supported the oil ministrys move to
allow Reliance Industries to charge the new gas price for all its fields in
return of a bank guarantee in view of the ongoing dispute over the fall in
production from the KG-D 6 block.Officials said this would expedite the
move to notify the new gas price that will be applicable from April next
year.Planning Commission has favoured taking bank guarantees from
Reliance and notify the Cabinets approved formula without any change, an
official with direct knowledge of the matter told ET.The law ministry has
also supported the proposal,the official said requesting anonymity.All eyes
are now fixed on the formal comments of the finance ministry.In fact,one
company should not hold the entire sector to ransom.Besides,the sentiment
was also expressed by PM yesterday.
Significant Consolidation Unlikely in Telecom Market for another Year
Sistema Shyam Teleservices,Russian conglomerate Sistemas Indian
arm,doesnt see any significant consolidation of the Indian telecom market
for at least next one year despite rules being relaxed,owing to complexities
of business operations in the market.Consolidation will not be very easy
given the various permutations,which are now emerging, chief financial
officer Vsevolod Rozanov told ET,adding that the company itself isnt
looking at any M&A deal till it becomes EBIDTA-positive,the internal
deadline for which is the end of 2014.
Smartphones Boost Internet Subscriber Base
Driven by the growth in internet usage through mobile phones,total
internet subscriber base in the country increased by 20.4% to reach 198.4
million during the April-June quarter.Total number of internet subscribers
including internet access by mobile device subscribers increased from
164.8 million at the end of March 2013 to 198.4 million at the end of June
2013, Trai said in its latest report.The total telecom subscriber base at the
end of the quarter was 903.1 million,out of which 873.4 million were
mobile subscribers.Internet usage through mobile phones dominated the
total subscriber base with about 89% share. PTI
Trai to Fast-track Priority Call Routing System
It gets really frustrating and adds to the panic when one cant reach an
emergency hotline during natural disasters or bomb blasts.When people
collectively panic,telephone networks invariably get jammed,that too at a
time when one needs them the most.Sector regulator Telecom Regulatory
Authority of India (Trai) is trying to expedite the setting up of a pan-India
priority call routing or PCR system that would help distressed folks access
emergency helplines swiftly during disasters.It has now sought views of the
home ministry and National Disaster Management Authority (NDMA) on
implementing priority call routing across mobile phone networks in India
after recent consultations with the telecom industry and network gear
makers.
Bhartis 750-M Euro Bond Issue Oversubscribed
Bharti Airtel said its 750 million (around $1 billion) corporate bond issue
elicited enthusiastic response and was oversubscribed more than five times
with participation from 370 high-quality accounts.The notes have been
priced 300 basis points over the 5-year EUR Mid Swap with a fixed coupon
of 4% per annum to yield 4.055%.Bharti will apply the net proceeds to
refinance existing debt, the company said in a media statement on
Wednesday.The notes were distributed across a mix of high-quality fixed
income accounts,including fund managers (77%),SSA/insurance
(9%),private banks (9%) and banks (5%).Bharti Airtels wholly-owned
arm,Bharti Airtel International (Netherlands ),has issued the 750 million
4% guaranteed senior notes due in 2018,will be fully and unconditionally
guaranteed by the parent company.The worlds fourth-largest mobile phone
carrier is readying a cash war chest for the upcoming airwave auctions
scheduled from January 21 next year.It requires $3-4 billion before the
auctions begin in which the government will put up for sale spectrum in the
900 MHz band in Delhi,Kolkata and Mumbai,where validity of mobile
permits expires in November 2014.This is the third bond sale by the
company this year after the Fed Reserve announced on May 24 that it
would start tapering.Its heartening to be the first Indian corporate to
access the European Investment Grade (IG) credit market.The
overwhelming response from European investors for this inaugural issue
highlights the strength of our credit, said Harjeet Kohli,group
treasurer,Bharti Airtel.He added that this transaction would help Bharti to
continue to diversify sources of funding and the euro financing would also
act as a natural hedge for many of its African businesses.
Tech Cos Gain from Regional Airports Modernisation Drive
Technology services companies are seeing increased demand from regional
airports as more passengers fly in and out of smaller cities and the
government looks to modernise those airports as well as privatise others.In
September,the government announced plans to privatise six airports
Kolkata,Chennai,Lucknow,Guwahati,Jaipur and Ahmedabad.Also afoot are
plans to build 34 nonmetro airports with new terminals at
Bhubaneshwar,Ranchi,Puducherry and Kadappa nearing completion.There
is an increased interest in upgrading IT.The government has seen the
difference between the privatised and public airports and now has the
money to upgrade the airports.Its a focus on security and customer
satisfaction, said Amrit Pandurangi,senior director at consultancy
Deloitte.SITA,a technology company that specialises offering services to the
air transport industry estimates that airport IT spending will touch $6
billion (.37,000 crore) this year,globally.There are no India-specific
estimates.It is being driven by a need to improve services to
customers.Whether airports are privatised or not,providing improved
services is a top priority, said John Kendall,program director,Unisys Asia
Pacific,which provided system integration services for Terminal 3 at the
Delhi International Airport.The Airports Authority of India is also working
on several technology initiatives,including an Airports Operations Control
Centre which will automate airport operations to improve efficiency and
the Airports Information Management System to streamline aspects such
as revenue and billing.Earlier this year,New Delhi-based NIIT Technologies
won a.344 crore contract to create airport automation control centres for
10 airports in India.Industry players expect the tenders for at least 10 more
airports to be issued after the first implementation is completed.The
Airports Authority of India did not respond to requests for comment.Pune-
based KPIT Technologies,which is rolling out an enterprise resource
planning system across 125 airports,sees further opportunities in the other
IT initiatives from airports.We do see regional airports wanting to
automate their systems.While they work with the AAI,they also have some
authority and budget to handle some IT requirements on their own.
Low Valuations May Work in Favour of Cadila Health
The recent run-up in the stock of Cadila Healthcare is likely to be sustained
due to indications of imminent improvement in the companys
performance.The Ahmedabadbased drugs manufacturer reported a
revenue growth of 12% in the quarter to September that was largely driven
by its performance in the United States and Brazil.Its revenues from the
domestic market,which accounts for nearly 40% of its consolidated
sales,grew just 5% during the three-month period because of the standoff
between the distributors and manufacturers over implementation of the
new drug pricing policy.This also adversely impacted its operating
margin,which,at a little over 15%,remained almost the same as the year-
ago level.Cadila has 20 abbreviated new drug application (ANDA)
approvals lined up in the US over the next 12-15 months.It is set to launch
products in niche segments that will boost its top line growth as well as
margins.
CIL Misses April-Nov Output Target by 15 MT
Coal India has missed its production target for April-November by nearly
15 million tonne (MT) and its sales target for the period by nearly 12
MT,contributing to near halving of coal stocks in thermal power plants over
the past two months.According to figures released by the Central Electricity
Authority (CEA),21 plants have stocks that will barely last four days while
10 plants have stocks that will suffice for fiveseven days.Average coal
stocks have declined to 11 days from 18-20 days two months ago.Total coal
stocks have declined to 15 MT from about 19 MT a few months ago.As a
result,power supply shortage during the last few days of November
touched 7,000 MW across the country.The decline in stocks comes at a time
when demand for power is expected to rise.Power prices are inching up at
the Indian Energy exchange a large trading platform for power trading
from about.2 per unit a month ago to.3-4 per unit.Senior Coal India officials
attributed the decline in coal stocks to a number of factors,including fewer
imports by power plants,shutdown due to renovation and maintenance and
railway logistics issues,besides the decline in supplies by the company to a
few plants.
M&M to Develop Hybrid Tech to Boost Vehicles Fuel Efficiency
Mahindra & Mahindra,the countrys largest utility vehicle maker,is
developing the worlds first hybrid technology that can be deployed in
vehicles with manual transmission and enhance fuel efficiency by almost
20%.The company,which may debut its hybrids at Februarys Indian Motor
Show,has established a place for itself in green technologies with close to 4
lakh so-called micro-hybrid vehicles on Indian roads.It also owns the
worlds largest electric car company,by production capacity,Mahindra
Reva,which sells the E2O hatchback,the worlds most affordable four-seater
car that only uses battery power to run.The company is now moving to the
next level of sustainable green mobility by focusing on full-scale hybrids
and has roped in technology partners that have the expertise.We have
signed up with Samsung SDI,which is the global leader in lithium ion
batteries for development and supply of these batteries for our hybrid
range of vehicles, Rajan Wadhera,chief executive - technology and product
development,told ET from Cape Town in South Africa where he was
attending a company meeting.We are perfecting the hybrid technology to
deploy it in various platforms and vehicles across the Mahindra range.
Hybrids generally pair electric motors and regular engines and use
batteries to store energy from motion and braking.
Market may Hit a High Note as Exit Polls Show BJP Sweep
Indian stocks could jump on Thursday as a row of exit polls showed the
Narendra Modi-led Bharatiya Janata Party (BJP) sweeping three out of the
four major states that went to polls in the past few weeks.The BJP is
expected to retain Madhya Pradesh,the biggest of the four states and
comfortably trounce the Congress government in Rajasthan,the second
biggest state.In Chattisgarh,BJP is locked in a neck-and-neck race with the
Congress but is expected to pull ahead and form the government.The status
of Delhi,which went to polls on Wednesday,was still unclear as voting was
extended till late in the evening but some exit polls indicated that the BJP
will be able to cross the half-way mark.One poll said that the Aam Aadmi
Party of Arvind Kejriwal will emerge as the single largest party while a
second one said that the BJP will fall short of a majority but emerge as the
single largest party.Stock markets,which had been rising partly in
anticipation of a strong BJP performance in the assembly polls,are likely to
rise on Thursday,brokers said.If BJP wins elections in all four states,Nifty
will hopefully hit 6,400 by next week.The index will hit 6,300 if they win in
three states.The stock markets will factor BJP victory in all the four states
from Thursday itself, said Deven Choksey,MD and CEO,KR Choksey Shares
and Securities.The fact that voting time had to be extended in Delhi due to a
large turnout shows peoples anger towards the Congress government, he
added.General elections to the Lok Sabha will have to be held before May
2014 and the assembly elections to four out of the five states have long
been considered a crucial stepping stone to parties hoping to win the grand
prize.Madhya Pradesh,Chattisgarh and Rajasthan went to polls in
November and on December 1 while Delhi went to polls on Wednesday.
Foreign Fund Flows may Get All-Clear to Take Cyprus Route
]The shadow over Cyprus is about to be lifted.Indications are that foreign
investors routing their funds through the Mediterranean island will not run
into hurdles in claiming tax benefits from investments in India.Foreign
funds and private equity investors,putting money in debt as well as equity
in India,were taken aback when India last month notified Cyprus as a
notified jurisdictional area under the Indian income-tax law.This meant
higher walls of compliance that made Cyprus come across as a less
attractive tax haven.Its unclear what provoked Indias stand on
Cyprus.Industry circles perceive that this was a fallout of the offshore
jurisdictions response to certain enquiries by the Indian tax
department.But within a few weeks of the notification by India,the Cyprus
Government initiated discussions with Indian authorities in India to sort
out the matter.A Cyprus finance ministry press release issued Tuesday
December 3 hinted that the two countries could be close to finding a
solution.
Unitech Defaults on.200-cr LIC loan
Unitech,Indias fourth largest real estate developer,defaulted on the
payment of interest on a.200-crore loan it had taken from Life Insurance
Corporation of India (LIC) way back in 2007,joining the list of companies
grappling with liquidity issues.Later in the day,a Unitech spokesperson
claimed that the company has agreed to repay.70-80 crore to LIC and will
pay a bulk of the amount in the next two weeks.Unitech also claimed that it
had already paid.100 crore to the corporation.However,a confirmation
could not be obtained from LIC about the builders assertions.Unitech had
taken loans from both LIC and LIC Housing Finance in 2007 to develop
properties in areas including Noidas Sector 96 on the outskirts of
Delhi,which was pledged as collateral against the loan.In a late night press
release,Unitech said,Due to our confidentiality agreement with the
lender,we cannot comment on the specifics of these media
reports.However,our financial results for the current quarter will reflect no
pendency with the said lender. A senior LIC executive,preferring
anonymity,said that the realty firm defaulted on loans given by LIC.We
have sent notice to Unitech.Loans given by the housing finance company
have been repaid.However,as indicated by media reports,there was no
transfer of loans from LIC HFL to LIC, the executive said.In August,LIC
Housing Finance had sent a legal notice to Mumbai-based real estate
developer Orbit Corporation,which had defaulted on liabilities worth.96
crore,including repayment of loan and interest.Unitech shares crashed
9.54% to end the day at.15.65 on the BSE.
PowerGrid Follow-on Issue Fully Subscribed
The follow-on-public offer (FPO) of Power Grid Corporation was fully
subscribed on the second day on Wednesday.Of the 78.70 crore shares
offered for sale,the total number of bids received was 78.61 crore till 1600
hrs.The number of bids at cut off price was 2.5 crore.According to data on
bourses,the issue is subscribed fully.The shares are being offered at a price
band of.85-90 apiece.The issue is open till December 5 for institutional
buyers and for retail investors it will close a day later on December 6.PGCIL
shares closed at.95.55,up 1.92%.The sale of 78.70 crore shares,or 17 %
stake,could fetch around.7,083 crore at the upper end of the price band.
Essar Oil Promoter Wants to Convert FCCBs into Shares
Essar Oil said on Wednesday that its promoter is seeking to convert FCCBs
aggregating $262 million into equity shares.The company said it has
received a notice from promoter company,Essar Energy Holdings seeking
conversion of FCCBs aggregating $262 million into equity shares.Essar Oil
said it will allot 3.88 crore equity shares at.138 per share on conversion of
1,150 foreign currency convertible bonds (FCCBs) of $100,000 each
aggregating to $115 million which were issued on June 15,2010 to Essar
Energy Holdings.
Sebi Revokes Market Ban on International Hometex
Sebi revoked the ban it had imposed on International Hometex and its
three directors from the capital markets,in case related to failure by the
firm to resolve pending investor grievances against it.Sebi has revoked the
curbs as the company has redressed all investor complaints pending
against it as on November 25,2013.In August,last year,Sebi had barred
International Hometex and its directors V ineet Kumar Agarwal,Vinod
Kumar Agarwal and Vishwinder Nath Gupta from accessing the securities
market till it resolved the complaints.
Europe Revival,US Buy Put Allcargo in the Fast Lane
After a dull FY13,Allcargo,one of the leading logistic service providers,is
getting its act together,a fact thats reflected in its financial performance in
the first half of FY14.The company has also acquired US-based Econocaribe
Consolidators,which will give it a strong presence in the US
market.Earlier,we noticed that some of the major customers were hesitant
to tie up with Indian service providers.With this acquisition,we expect this
door to open for us, Shashikiran Shetty,CMD of Allcargo,told ET.Allcargos
earnings have historically depended on exim trade.Its margins and volumes
were under pressure in FY13 because of subdued exim trade and greater
competition.The companys profits fell by 40% in FY13,and its stock
crashed to a five-year low of.60 in August this year.However,with economic
activity picking up in Europe,Allcargo is trying to fight its way out of
trouble : in the first half of FY14,it was able to check the slide in domestic
volumes by posting growth in its global operations.
Multiplexes See Cash Registers Ringing Post Consolidation
Multiplex companies present a picture of healthy consolidation as they
have recorded a significant improvement in their revenues per screen per
quarter and operating margins after expanding inorganically over the past
three years.PVR and Inox Leisure have reported a growth of 28-58 % in
revenues per screen per quarter since their respective acquisitions.The
growth has come from a combination of factors,including consistent
increase in average ticket prices,increasing contribution of revenues from
food & beverages as well as advertising segments,expansion in non-metro
cities and,perhaps most important,their bargaining power with producer-
distributor groupings that share part of the revenues from sale of
tickets.There have been two major acquisitions in the multiplex industry
over the past three years.Inox Leisure acquired Fame India in 2010,a move
that strengthened its presence in western,southern and eastern
regions.PVR acquired Cinemax India in November last year,thereby
consolidating its presence in the western region considerably after having
established itself in the North.
PSBs Not to Follow HDFC on Rate Hike
The countrys largest mortgage lender,Housing Development & Finance
Corporation (HDFC),has raised home loan rates by 10 basis points from
December 1 even as government-owned banks refrained from doing
so.HDFC will now charge an interest rate of 10.5% for loans up to.30
lakh,and 10.75% for loans between.30 lakh and.75 lakh.Reacting to the
development,RK Dubey,chairman and managing director of Canara
Bank,said,We do not plan any upward revision in home loan rates
immediately.We prefer to offer best rates to customers and retain our USP
(unique selling point) to be the lender with the lowest rate. The bank has
pegged its base rate at 9.95%,which is the lowest in the industry.Its home
loan rate is also the lowest at 9.95% for loans up to.30 lakh and 10% for
loans between.30 lakh and.75 lakh.Officials from the State Bank of India
and Bank of India said that they do not intend to raise rates soon since
liquidity conditions have eased considerably.As of now,it is status quo.We
will wait for the mid-quarterly policy before taking any decision on rates,
said VR Iyer,CMD of Bank of India.RBI is due to announce its mid-quarterly
policy on December 18.This is the second time HDFC has raised lending
rates in the last six months.The company had increased rates by 10 bps in
the last week of August.But state-owned banks didnt do so after the finance
ministry prodded them to maintain a soft rate regime.The ministry also
promised to provide additional capital to banks to enable them to provide
consumer durable loans.
A Pencil-Mad Count in His Faber-Castell Tower
Count Anton-Wolfgang von Faber-Castell has been known to hurl wooden
pencils from the tower of his castle to the stone courtyard below.It is not a
petty fit of pique by a mad Bavarian aristocrat.The 72-year-old,the eighth in
a long line of pencil makers,just wants to prove how durable the pencils
that carry his family name are.The Faber-Castell family has been making
wooden pencils by the hundreds of millions in Stein,Germany.A torrent of
brightly coloured pencils flows from machines in a century-old factory with
a tile roof and windows framed in pastel hues.
US-China Ties Depend on Trust: Biden
After a meeting with Chinese President Xi Jinping,US Vice President Joe
Biden said US-China relations depend on trust.Neither leader made public
mention of a major clash over Chinas air defence zone.Biden said the US-
China ties will affect the course of the 21st century.This new model of
major country cooperation ultimately has to be based on trust and a
positive notion about the motive of one another, he said.
AWAMI LEAGUE TO GO AHEAD WITH POLLS
Unfazed by a boycott by the opposition BNP,the Awami League-led alliance
said it will go ahead with the January 5 polls in Bangladesh.PM Sheikh
Hasina asked the armed forces to be ready for any eventuality amid a BNP
threat of tougher protests.Her comments came after the BNP refused to
field candidates even as the deadline for filing nominations got over on
Monday.
DETROIT RULING: PENSIONS CAN BE CUT
In a ruling that could reverberate beyond Detroit,a federal judge held that
the city could enter bankruptcy and asserted that Detroits obligation to pay
pensions in full was not untouchable.It dealt a major blow to the belief that
state laws preserve public pensions.It is likely to resonate in cities where
the rising cost of pensions is crowding out spending for public
schools,police departments and other services.
Gems,Jewellery Exports Glitter in October,up 21.8%
After falling for five months in a row,Indias gems and jewellery exports
rose by 21.8% year-on-year in October to $3.37 billion boosted by rising
demand from western markets ahead of Christmas.In October 2012,these
exports stood at $2.7 billion,according to the data provided by the Gems
and Jewellery Export Promotion Council (GJEPC).Ahead of the Christmas
season,exporters are getting a good number of orders not only from
traditional markets like the US,Europe and Middle East but also from
emerging ones including Latin America and Africa, a GJEPC official said.The
major markets for the countrys gems and jewellery exports are the
US,Europe,Middle East,Hong Kong and Japan.Among the categories which
registered growth in October are coloured gemstones followed by cut and
polished diamonds and silver jewellery.However,segments like gold
medallions & coins and gold jewellery exports witnessed declines.India is
the largest importer of gold which is mainly utilised to meet demand of the
jewellery industry.The country imported around 830 tonnes of gold last
fiscal.
Iron Ore,Coking Coal may Firm Up Next Yr: PwC
Indian steelmakers may do well to prepare for costlier inputs with global
consultancy firm PwC saying that prices of both iron ore and coking coal
may go up again next year.My view is,you may see next year fairly stable
pricing for iron ore and,if anything,it may go up, Tim Goldsmith,global
leader mining,PwC,told PTI in an interview.Iron ore prices are hovering
around $137 per tonnes in the global market.Indias largest iron ore
producer NMDC often benchmarks the price of the key steelmaking input in
line with international prices.Internationally,the market for iron ore
currently stands at around 1.5 billion tonnes and almost half of it comes
from Australia and Brazil.The demand for iron ore generally goes up by 5-6
% a year.According to the steel ministrys estimates,India,which has been a
prominent exporter of the raw material in not so distant past,may have to
resort to importing iron ore to keep pace with demand from ongoing steel
capacity expansions,both brownfield and greenfield.
Govt Mulls Policy on Using Rejects from Coal Washeries
The government is mulling framing a policy to utilise coal rejects generated
from washeries,amid the country reeling under acute fuel shortage.Coal
quality is enhanced by coal washing and the plant where coal washing is
carried out is called coal washery.In accordance with the decision taken in
the meeting of the standing linkage committee (long term) for power... it
has been decided to formulate a policy for allocation of coal/ washery
rejects generation by CIL for washery rejects-based power plants,
according to a coal ministry document.An inter-ministerial
committee,under the chairmanship of additional secretary coal,is meeting
this week for the first time to deliberate on the same.The committee,which
has representation from the ministries,including power,will assess the
actual rejects generated from Coal India (CIL) washeries and formulate
suitable guidelines for supply of rejects on a long-term basis from CIL
washeries. State-run CIL contributed 452.5 mt of coal in the previous
financial year compared with the target of 464 mt.
Gems,Jewellery Exports Glitter in October,up 21.8%
After falling for five months in a row,Indias gems and jewellery exports
rose by 21.8% year-on-year in October to $3.37 billion boosted by rising
demand from western markets ahead of Christmas.In October 2012,these
exports stood at $2.7 billion,according to the data provided by the Gems
and Jewellery Export Promotion Council (GJEPC).Ahead of the Christmas
season,exporters are getting a good number of orders not only from
traditional markets like the US,Europe and Middle East but also from
emerging ones including Latin America and Africa, a GJEPC official said.The
major markets for the countrys gems and jewellery exports are the
US,Europe,Middle East,Hong Kong and Japan.Among the categories which
registered growth in October are coloured gemstones followed by cut and
polished diamonds and silver jewellery.However,segments like gold
medallions & coins and gold jewellery exports witnessed declines.India is
the largest importer of gold which is mainly utilised to meet demand of the
jewellery industry.The country imported around 830 tonnes of gold last
fiscal.
Iron Ore, Coking Coal may Firm Up Next Yr: PwC
Indian steelmakers may do well to prepare for costlier inputs with global
consultancy firm PwC saying that prices of both iron ore and coking coal
may go up again next year.My view is,you may see next year fairly stable
pricing for iron ore and,if anything,it may go up, Tim Goldsmith,global
leader mining,PwC,told PTI in an interview.Iron ore prices are hovering
around $137 per tonnes in the global market.Indias largest iron ore
producer NMDC often benchmarks the price of the key steelmaking input in
line with international prices.Internationally,the market for iron ore
currently stands at around 1.5 billion tonnes and almost half of it comes
from Australia and Brazil.The demand for iron ore generally goes up by 5-6
% a year.According to the steel ministrys estimates,India,which has been a
prominent exporter of the raw material in not so distant past,may have to
resort to importing iron ore to keep pace with demand from ongoing steel
capacity expansions,both brownfield and greenfield.
\WTO: Deadlock at Bali
India has made it clear that it will not budge from its stand on the issue of
food security,refusing to buckle under pressure from developed nations
keen on securing a global trade deal at the ninth WTO Ministerial
meeting.The sharp differences with the developed world have reduced the
prospects for an agreement.India said its stand was a consistently
principled one and rejected the view that it was acting as a stumbling block
to a global accord.Bali package must be substantive and historical
imbalances in trade rules must be corrected in order to ensure a fair and
equitable order, commerce and industry minister Anand Sharma said at the
plenary session of the conference in the Indonesian island on Wednesday.
VCES is a Rare Opportunity,Seize the Offer: PC to Industry
Calling Service Tax Voluntary Compliance Encouragement Scheme (VCES) a
rare opportunity to make a fresh start,finance minister P Chidambaram on
Wednesday asked those in trade and industry to seize the offer,even as he
made it clear that tax evaders would eventually be reached.Countdown has
begun and the last date is December 31.Government has made a fair and
generous offer,a one-time offer that is not likely to come your way for at
least a couple of decades.Therefore,it is in the best interest of everyone to
take advantage of the offer, he said.Just recall when the last amnesty
scheme was announced.The last amnesty scheme was announced in 1997
called VDIS,it is now 16 years later that we have launched such a scheme
for service tax, he said at a meeting here on VCES with representatives of
trade,industries and their associates.If anyone feels another scheme will
come next year,Im afraid they have mistaken.These schemes cannot be
announced every year.There should be a good reason why we have to do
so.
EU does not See Trade Pact Soon
The European Union has all but given up on a trade pact with India in the
near future,as it does not expect the poll-bound UPA government to make
concessions on the issues the 27-member union expects for a deal to be
clinched in the next few months.The EU wants lower duties on automobiles
and wines and spirits while India is seeking greater access for its
professionals in the member countries,differences that EU officials and
parliamentarians feel are difficult to bridge.Ignacio Garcia Bercero,the EU
chief negotiator with India on the accord,has moved on to handle trade
talks with the US,sending a clear signal about where its priorities are at the
moment.The EU region is Indias third-biggest trading partner,after
Northeast Asia and West Asia with total trade in excess of $100
billion,nearly 13% of Indias total trade.I dont see this agreement now.We
need more time, said a European Parliament member who is also part of
the committee on international trade.We have gone further from the
situation of win-win.
Faith Helps Travel Firms Beat Slump
Travel has been among the sectors hit by the economic slump but some
companies are looking to the faithful for a reprieve.Its still a small
proportion of the overall organised business since most of it is handled by
the informal sector but religious travel is one sector thats on the rise,in
contrast with the industry trend.We have seen a significant growth of 30%
in the religious tourism segment, said Karan Anand,head of relationships at
Cox & Kings.Executives at travel portals MakeMyTrip and Expedia said
their business in this segment has been growing in excess of 25%.Make-
MyTrip expects the share of religious travel to more than double to 5% of
domestic leisure revenue from 2% last year.None of the companies gave
details on revenue from the segment.As a country that has people of many
faiths,religious travel has always been a big business in India but most of it
goes to small,local companies.Radheshyam Travels based in Ahmedabad is
one such company.Out of a turnover of.20 crore last year,70% came from
religious travel,said owner Bhaskar Rao.
PFs may Take a Hit on Bank-bond Portfolio
DAS MUMBAI
Many brokers and intermediaries are hard-selling bank bonds to provident
funds,stoking concern about the credit risk of these securities following the
rating downgrades of mid-size public sector banks in the last two
months.There are a minimum of 500 exempted provident funds in
India.Under the exempted provident fund scheme,employers run their own
trust of managing employee corpus.On an average,PFs invest between.10
lakh and.1 crore a month in these bonds.Downgrades were the result of
weakening asset quality and profitability, said Pawan Agrawal,senior
director,Crisil Ratings.For a bank,raising Tier-I bonds in India as per Basel
III,is fraught with challenges of lower rating and higher interest
rate.Investor appetite needs to build up. Earlier,credit rating companies
had downgraded (mostly to AA- from AA+) a slew of public sector
lenders,including Central Bank of India,Indian Overseas Bank,Allahabad
Bank,United Bank of India,Punjab & Sind Bank,BoI and others,for tenyear
(normally) bond issues under Basel II norms,an international standard for
the banking industry.The latest yardstick is Basel III.
Gold Near Lowest in 5 Months on Fed Taper Bets
Gold traded near the lowest in almost five months in New York as signs of
improving US economic growth added to the case that the Federal Reserve
will reduce stimulus.Silver rose from the lowest price since July.Bullion for
February delivery was little changed at $1,221.10 an ounce by 8 am on the
Comex in New York.Prices reached $1,210.80,the lowest since July
5.Futures trading volume was 6% below the average for the past 100 days
for this time of day.Gold for immediate delivery fell 0.1% to $1,222.49 in
London.
WTI Rises on US Supply Dip as Discount to Brent Shrinks
West Texas Intermediate advanced for a fourth day,the longest rising
streak since August,as TransCanada Corp will start part of its Keystone XL
pipeline next month and US crude inventories fell.The spread between WTI
and Brent shrank to a nine-day low.Futures climbed as much as 1.6% in
New York after the American Petroleum Institute said crude stockpiles
shrank by 12.4 million barrels last week.Prices gained the most since
September on Thursday after TransCanada said it will begin the southern
portion of the pipeline to the Gulf Coast that could relieve a supply
bottleneck.
Copper Climbs on Reports Showing More Hiring in US
Copper rose in New York before reports projected to show employers in
the US hired more workers,signaling an improving economy in the worlds
second-largest consumer of the metal.Copper for delivery in March added
0.3% to $3.177 a pound by 7:36 am on the Comex in New York.Prices slid
13% this year.Copper for delivery in three months rose 0.2% to $6,976 a
tonne on the London Metal Exchange after touching a two-week low on
Tuesday.
Wheat Up on Demand,US Weather-damage Concern
Wheat advanced for a second day in Chicago on demand from importing
nations and amid speculation that freezing weather in the US may hurt
crops in the worlds leading exporter of the grain.Iraq is seeking to purchase
50,000 tonne of wheat from the US,Canada or Australia,the Middle East
countrys Trade Ministry said on Wednesday.Egypt,the worlds biggest
importer of the grain,bought a 60,000-tonne cargo from Romania on
Tuesday.Wheat for delivery in March rose 0.6% to $6.7225 a bushel by
6:17 am on the Chicago Board of Trade after climbing 1% on
Tuesday.Milling wheat for the same delivery month traded on NYSE Liffe in
Paris added 0.7% to 210.50 euros ($286.02) a tonne.