MUMBAI: Media giant Ananda Bazaar Patrika (ABP) is parting ways with the Rupert Murdoch-controlled STAR Group, after months of discontent over editorial and other strategic issues.
The two have been operating the news television venture Media Content & Communications Services India Pvt Ltd (MCCS) over the past nine years. According to highly placed sources in the know, ABP is set to buy out Murdoch and STAR’s shareholding in the JV.
MCCS, formed in March 2003, is a 74:26 joint venture between ABP TV and STAR News Broadcasting. MCCS broadcasts three 24-hour news channels, STAR News in Hindi, STAR Ananda in Bengali and STAR Majha in Marathi.
“It’s final now. The two legal teams are working out the details and the fine print will be clear very soon,” said an official involved in the negotiations.
Many are expecting a formal announcement — at least internally — tomorrow.
The exact valuation and terms of the buyout are not clear. But, investment bankers say MCCS is a profit-making operation. Many even expect a staggered payout. ABP is likely to insist on a 12-18 month “cool off” or non-compete period for STAR, before it can re-enter the news television space in India.
Sources say while the Bengali and Marathi news channels may be called Ananda and Majha TV respectively, with only the STAR moniker getting dropped, the national Hindi channel may get rechristened as Ananda Bazaar TV, reflecting the corporate branding of the group.
When contacted, Uday Shankar, CEO, STAR India Pvt Ltd (SIPL), said, “This is a closely held joint venture. I am not going to comment on market speculation.”
Dipankar Das Purkayastha, managing director and CEO, ABP, however, denied any such developments, saying, “There is nothing in the horizon and I cannot comment on anything further.” An MCCS spokesperson said issues regarding shareholders could only be answered by ABP and STAR, while a STAR spokesperson declined to comment. STAR, sources say, would have to get another domestic partner with a majority stake once the split is completed.
ABP sources say the group does not have any financial strain currently, so it can sustain 100 per cent shareholding on its own, but for branding, international content and other strategic benefits, a collaboration with a strategic partner can be expected in the near future. Editorial control in the MCCS JV has been a sticky point for a while, but in the past year several other operational and management issues have aggravated the stress. In a board meeting of MCCS in Mumbai in 2011, the differences came out in the open, which many felt, was a clear indication of the fate of the JV.
During that time, both STAR and ABP had even offered to buy the other partner out from the venture. There have been others issues, too. For example, ABP went ahead and independently launched a general entertainment channel (GEC), Sananda TV, to take on the popular STAR Jalsa in the Bangla GEC space. That, apparently, did not go down well with STAR. ABP, too, was not very happy when last March, STAR India entered into an ad sales alliance with rival broadcaster NDTV for its three news channels. Even though STAR has always maintained their NDTV alliance is restricted to sales and has nothing to do with editorial content, many have pointed out a conflict of interest.
STAR has a separate, dedicated team to market NDTV channels, but both MCCS and NDTV have competing Hindi news channels: STAR News and NDTV India. Ever since the NDTV-STAR deal got announced, there has been speculation that this was a case of old partners joining hands again to forge a bigger, strategic association which may even lead to a equity tie-up in future. That would have meant a realignment of the MCCS-STAR JV.
Some even said ABP was not entirely kept in the loop while the negotiations between NDTV and STAR were getting crystallised. During that time, ABP’s Purkayastha had told Business Standard, “STAR has not spoken to us about any sales alliance with NDTV. So, I cannot at this point comment on any conflicts.” Prannoy Roy’s NDTV was earlier supplying the entire news content to Murdoch’s STAR News in India. They split nine years ago in 2003, following which ABP’s Sarkar brothers teamed up with STAR. Reacting to the media sector buzz that it will only be a matter of time before STAR and NDTV again revive the partnership, NDTV officials told Business Standard that “they have a very good working relationship with STAR and nothing else is being contemplated at this moment”.
CHANDRA’S IVRCL BID TO TEST NEW M&A CODE
Mumbai: The recent purchase of a minority stake in Hyderabad-based roads-to-township builder IVRCL by two Essel Group companies promoted by media baron Subhash Chandra might be a test case for how the new takeover code will pan out in case of companies where promoter holdings are low. Chandra’s two companies — Asian Satellite Broadcast and Jay Properties — purchased a 10.19% stake in IVRCL through market operations recently. This has made the two Chandra companies’ combined stake in IVRCL only a trifle less than the 11.18% held by its promoters, the Reddy family. Under the new takeover code, Chandra can raise his stake in IVRCL to 24.9% and become the single largest shareholder without triggering an open offer. As per the new code announced by the Securities and Exchange Board of India (Sebi) in July last, acquirers can buy up to 25% in a firm before they are required to make a mandatory open offer to minority shareholders. So if Chandra raises his stake further as he had stated, Sebi will have to give a ruling on who controls IVRCL, and this could be a precedent for such cases, analysts said. “This is a test case for the new takeover code to define control.” said Jayant Thakur, a chartered accountant specialising in securities law. (For details log on to : http://www.financialexpress.com/news/chandras-ivrcl-bid-to-test-new-m&a-code/931467/)
DNA: ZEE CLOSE TO BUYING OUT DAINIK BHASKAR
MUMBAI/NEW DELHI: Seven years after entering into a 50:50 partnership, the Subhash Chandra-promoted Zee group is close to buying out Dainik Bhaskar (DB) Corp from Diligent Media Corporation, which publishes DNA, the daily English language newspaper. When asked whether DB Corp was exiting DNA, Girish Agarwaal, director, DB Corp, said, “We are in the process of evaluating it.” DB Corp, which publishes the country’s second most widely read paper Dainik Bhaskar, has been gradually reducing its stake in DNA and wants to focus on the growth in regional markets. “We now have a minority stake in Diligent Media,” Agarwaal added, without quantifying the stake it still held. A senior executive in the know of the developments said the Zee group was already the majority owner in Diligent Media. An emailed query to the Zee spokesperson did not elicit any response. (For details log on to : http://www.business-standard.com/india/news/dna-zee-close-to-buying-out-dainik-bhaskar/469793/)
ONGC TO DECIDE ON STAKE SALE IN CBM BLOCKS BY MONTH-END
MUMBAI: State-run Oil and Natural Gas Corporation (ONGC) is to shortly sell stake in its four coal-bed methane (CBM) blocks to companies which have bid for this. “We are evaluating the bids we have received. We could give out up to 30 per cent stake and look at joint operatorship of the blocks. This could be on the lines of our Panna-Mukta-Tapti model. Details of revenue share are also being worked out,” Sudhir Vasudeva, chairman and managing director, told Business Standard. He said their board of directors would decide at a meeting towards the end of this month. At its CBM blocks, ONGC has been facing various issues such as not being able to manage land acquisition issues and the the cycle speed of rigs, among others. “We are isolated at these blocks, as these are standalone ones. Clearly, there are issues and we want to bring in a player who could be a joint operator,” said an ONGC board member. (For details log on to : http://www.business-standard.com/india/news/ongc-to-decidestake-sale-in-cbm-blocks-by-month-end/469812/)
ASK PROPERTY GETS 49% STAKE IN GODREJ REDEVELOPMENT UNIT
MUMBAI: Godrej Properties Ltd on Sunday sold 49 per cent stake in its subsidiary Godrej Landmark Redevelopers Private Ltd (GLRPL) to ASK Property Investment Advisors. Godrej Landmark is working on a residential re-development project in Chembur, Mumbai. ASK will pay a Rs 20-crore premium to GLRPL for its 49 per cent stake in the project, ASK and Godrej said in a joint statement. Pirojsha Godrej, who took over as the MD and CEO of Godrej Properties on Sunday, said, “This fits in well with GPL’s strategy of efficient capital management and demonstrates our continued ability to attract equity capital in difficult market conditions.” GLRPL has recently signed a tripartite pact with Kamla Landmarc Property Leasing and Finance Private Limited (Kamla) and 18 societies to undertake a residential redevelopment project in Sahakar Nagar (Chembur). (For details log on to : http://www.business-standard.com/india/news/ask-property-gets-49-stake-in-godrej-redevelopment-unit/469816/)
MIGLANI FAMILY PLANS TO RAISE STAKE IN LLOYDS STEEL
MUMBAI: ArcelorMittal’s steel ambitions in Indiamay have got delayed but its local partner, the Miglani family, is stepping up investments in the sector through strategic stake purchases of stake in small companies across Maharashtraand Karnataka. The Miglani family, which owns Uttam Galva, where ArcelorMittal has a significant stake, plans to increase its stake in Lloyds Steel from 24.5% to help the company fund expansion plans. The development is significant as ArcelorMittal India, the local unit of the world’s largest steelmaker, has a 33% stake in Uttam Galva. The steel giant has not made much headway with its greenfieldplans in Indiaafter setting up an office five years ago to pursue steel making in the world’s second fastest growing steel market after China. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/miglani-family-plans-to-raise-stake-in-lloyds-steel/articleshow/12498767.cms)
ADVENT INTERNATIONAL INVESTS $110 MILLION IN CARE HOSPITALS
MUMBAI: Advent International Corp. has invested $110 million (Rs.560 crore) in the Hyderabad-based hospital chain Care Hospitals Pvt. Ltd, making it the largest private equity (PE) investment in the healthcare sector this year. “We want to increase operational facilities and increase the bed capacity to 2,600 from the current 1,600. We want to get into new specialties, including oncology,” said B. Soma Raju, chairman and managing director, Care Hospitals—the country’s third largest hospital chain after Apollo Hospitals Ltd and Fortis Healthcare Ltd. He added the management will continue to have control of the business. Care, with 12 hospitals and a focus on smaller cities, has a presence in Bhubaneswar, Secunderabad, Nagpur, Suratand Visakhapatnam. The chain, founded in 1997, is estimated to have a revenue of at least Rs.500 crore. (For details log on to : http://www.livemint.com/2012/04/01222752/Advent-International-invests.html?atype=tp)
JINDAL POWER ADVANCES TAMNAR EXPANSION FOR TAX HOLIDAY
MUMBAI: Jindal Steel and Power (JSPL) has advanced the commissioning date of the first unit (600 Mw) of the first phase (1,200 Mw) of its power plant expansion at Tamnar in Chhattisgarh’s Raigarh district to March 2013, to take advantage of the 10-year tax holiday it would then enjoy. JSPL is spending Rs 13,410 crore on the expansion. It already has 1,000 Mw capacity and is adding another 2,400 Mw. It has placed an order with Bharat Heavy Electricals Ltd for supply, erection and commissioning of a 4×600 Mw boiler-turbine-generation package. The tax holiday was to end in March 2012 but the the central government has extended it for another year. This means all power plants coming up by March 2013 will be able to get a tax holiday till March 2023. According to an official who wished not to be named, “Phase-1 of the project is of 1,200 Mw, split into two units of 600 Mw each. We were supposed to commission the first unit by December 2013. However, with the tax holiday getting extended, our aim is now to take advantage of it. Therefore, we are trying to commission the first unit by March 2013.” (For details log on to : http://www.business-standard.com/india/news/jindal-power-advances-tamnar-expansion-for-tax-holiday/469810/)
POST-IPO, NBCC DRAWS UP BIG EXPANSION PLANS
NEW DELHI: The government-owned National Buildings Construction Corporation (NBCC), after a recently concluded Initial Public Offer that was 4.93 times subscribed, is ready to kick off expansion plans for the next two years. The diversified company is looking at project opportunities abroad as well. The company is planning to invest about Rs 500 crore for buying land in financial year 2012-13. With three project management consultancy projects in the Maldives, NBCC is exploring power projects in several other areas around the world. “Discussions are on and we hope to get good power projects in Senegal, Ghanaand west Asia,” said Vishnu P Das, chairman and managing director. The company is not too gung ho with opportunities in the Indian power sector. “The competition is intense in the sector in India, due to the presence of heavyweights. So, we are unable to get high margin projects,” said Das. Director (finance) A K Garg pointed that power makes sense for captive companies which have coal or gas linkage. (For details log on to : http://www.business-standard.com/india/news/post-ipo-nbcc-drawsbig-expansion-plans/469808/)
GODREJ APPLIANCES TO OPEN EXCLUSIVE BRAND OUTLETS
MUMBAI: Godrej Appliances, consumer durables division of Godrej Group, plans to open its exclusive outlets. “We want to get into exclusive brand outlets (EBOs). There is a school of thought that in years to come, exclusive stores will start getting a foothold. Our competitors such as LG and Samsung also have exclusive outlets,” Godrej & Boyce Manufacturing Company’s Chief Operating Officer (Godrej Appliances), George Menezes, told PTI. At present, the company sells its products through retail channels and multi-brand outlets (MBOs). “We will be getting into franchisee model…opening 25 stores in FY13, but will be cautious on this model,” he said. The company is eyeing a growth of over 20 per cent, aiming at a revenue of Rs 2,100 crore for FY13, and expects a turnover of Rs 1,700 crore for FY12. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/durables/godrej-appliances-to-open-exclusive-brand-outlets/articleshow/12489645.cms)
WALMART LOOKS TO SOURCE MORE FARM ITEMS FROM INDIA
NEW DELHI: The world’s largest retailer Walmart is looking to source more farm produce from Indiafor international operations through its Indian joint venture apart from expanding product basket. The company’s 50:50 joint venture with Bharti Enterprises — Bharti Walmart Pvt Ltd is looking to engage 25,000 farmers in Indiaby 2015 up from the present 4,000. “We are leveraging our association with ASDA Walmart UKand providing export market access to Indian farmers,” a Bharti Walmart spokesperson said. ASDA Walmart is a chain of 500 stores that sell food, grocery and other essential items across UK. He said there are opportunities to export a range of items from Indialike musk melon, pomegranate and rice. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/walmart-looks-to-source-more-farm-items-from-india/articleshow/12490829.cms)
FOREIGN RETAILERS TO GET RELIEF ON LOCAL BUYS
NEW DELHI: The government is readying to address the concerns of foreign brands owning stores in Indiaover the requirement of mandatory procurement of 30% inputs from local small and medium enterprises. A senior official told ET that the industry ministry is open to review, revise and even waive the requirement after investors gave the thumbs down to the policy change by its Department of Policy and Promotion involving more than 51% foreign direct investment in single-brand retail. “We are soon going to invite for consultations representatives of global retailers who are interested in investing in Indiabut are keeping away due to some issues with the sourcing clause,” the official said. “Only after the discussions we can take a call on the limit. It may be revised down or waived off or some additional conditions may be put in.” Prospective foreign investors, such as LVMH and Ikea, are expected to be invited for discussions which are expected to be wrapped up before the Parliament resumes the budget session on April 24. (For details log on to: http://economictimes.indiatimes.com/news/economy/foreign-trade/foreign-retailers-to-get-relief-on-local-buys/articleshow/12498201.cms)
BRITISH FOOTWEAR CO PAVERS TO INVEST $20 MN TO SET UP LOCAL CHAIN
NEW DELHI: UK-based footwear company Pavers Ltd, which sells premium leather footwear under the Pavers England brand, has become the first foreign retailer to seek government approval to operate without a local partner after 100% foreign investment was allowed in single-brand retail. Pavers has approached the Foreign Investment Promotion Board (FIPB), the nodal agency that clears investments entering India, with a proposal to invest $20 million through its joint venture with London-based Foresight Group, a person with direct knowledge of the development said. Pavers had formed a joint venture with the Foresight Group, a $500-million diversified conglomerate, in 2008 to explore growth opportunities in India. The venture launched wholesale operations in the country and appointed Triton Retail as the master franchisee to sell its range of men’s and women’s shoes and accessories. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/british-footwear-co-pavers-to-invest-20-mn-to-set-up-local-chain-first-foreign-retailer-to-plan-100-owned-ops/articleshow/12497410.cms)
GAS PRICE MEETING: GOVT SEEKS TO CORRECT DISCREPANCY
NEW DELHI: Even as the government hardens its stand against Reliance Industries Ltd (RIL) over allocation of costs and sharing of profit from the D6 fields of the Krishna-Godavari (KG) basin that the company operates, the petroleum ministry has sought to correct an error in the minutes of a ministerial meeting that could have indirectly cost the government around $8 billion (around Rs.40,900 crore today) over two years and benefited the company to the same extent. In a letter dated 7 March to cabinet secretary Ajit Seth, and referring to a meeting of the ministerial panel held on 24 February, petroleum secretary G.C. Chaturvedi wrote about what he termed a “major discrepancy” between the minutes and what had actually transpired at the meeting. The ministerial group was considering RIL’s request to increase prices that had been fixed in 2009 for a period of five years, from a basic cost of $4.2 per million British thermal units (mmBtu) to $14.2 per mmBtu. (For details log on to : http://www.livemint.com/2012/04/01234140/Govt-seeks-to-correct-discrepa.html)
PRESIDENTIAL DIRECTIVE TO CIL ON FUEL PACTS LIKELY THIS WEEK
NEW DELHI: The government may issue a Presidential directive to Coal India (CIL) this week to enter into fuel pacts with power producers with 80% supply commitment, after taking stock of the PSU’s production plan. The development comes in the wake of CIL failing to meet the PMO directive to sign fuel supply agreements with power producers by March 31, with 80% delivery commitment. “The coal ministry will hold a meeting with the chairman and managing director of Coal Indiaand heads of its subsidiaries this week to take a stock of their production plans. After the meeting, a Presidential Directive is likely to be issued,” a top official in the coal ministry told PTI. The coal ministry has already conveyed to CIL that it must sign the FSAs (Fuel Supply Agreements) with the power firms, notwithstanding opposition from several independent directors on Coal Indiaboard. (For details log on to : http://www.financialexpress.com/news/presidential-directive-to-cil-on-fuel-pacts-likely-this-week/931307/)
REALTORS GET BY ON CASH FROM MONEYLENDERS
MUMBAI: Hit by an acute cash crunch, some of the top property developers in Mumbai are borrowing funds at four per cent interest a month from private moneylenders and investors to meet their yearly debt repayment and tax obligations, say industry players and property consultants. Although developers used to borrow funds at 2-2.5 per cent a month at the fag end of the year, the rate has touched a new peak of four per cent a month — cumulatively, 48 per cent per annum. Moneylenders and investors are demanding higher rates from developers, given the strong demand for short-term funds and tight liquidity conditions. According to property market sources, funds to the tune of Rs 500-600 crore have flown from these informal channels to builders in the past two-three months in Mumbai. A developer, who operates in South Mumbaiand is into redevelopment of projects, borrowed around Rs 70 crore in January to meet debt repayment obligations. Another in the western suburbs of Mumbai and a pan-Maharashtra developer have borrowed funds in large chunks, according to sources. (For details log on to : http://www.business-standard.com/india/news/realtors-get-bycashmoneylenders/469791/)
RATAN TATA’S VISION 2020: A $500-BN GLOBAL EMPIRE
NEW DELHI: Eight months before handing over the reins of the Tata Group empire to his successor, Ratan Tata has detailed a vision under which the group’s turnover will hit $500 billion (Rs 25 lakh crore) by 2020-21. That’s a fivefold increase over the expected turnover of $100 billion (Rs 5 lakh crore) in the financial year that ended on Saturday. Tata unveiled his vision in an annual group management meet held a few weeks ago in Mumbai’s Taj Mahal hotel and attended by about 500 top executives of various group companies. The meeting was also webcast to other senior employees across the country and abroad. Tata’s speech was followed by a question and answer session. The group chairman, who would step down in December this year, was accompanied in the meeting by Cyrus Mistry, who would take over the baton of the diversified group. Tata told his top executives that despite scepticism, his push to internationalise the group through acquisitions had been a key factor in its growth. Without those acquisitions, the group would have reached a turnover of only $65 billion, he said. (For details log on to : http://www.business-standard.com/india/news/ratan-tatas-vision-2020500-bn-global-empire/469790/)
TCI TO TAKE COAL INDIA, DIRECTORS TO COURT
MUMBAI: The Children’s Investment Fund (TCI) today said it had instructed its Indian lawyers, Luthra & Luthra, to begin the process of bringing legal action against Coal India Limited (CIL) and its directors. “TCI has received advice that the conduct of CIL and its management over the past months constitutes serious breaches of key provisions of Indian corporate law, namely, breach of fiduciary duties and CIL’s affairs being run in a manner that is both prejudicial to the public interest and oppressive to shareholders,” the fund said in a statement on Sunday. The move comes a day after the government took a tough stand that it may invoke a Presidential directive to force the Coal India board to sign fuel supply agreements (FSAs) with power companies. TCI said it believes “that a number of government directives are not in the public benefit and should not be followed by CIL, because they destroy the profitability and value of the people of India’s stake in CIL”. (For details log on to : http://www.business-standard.com/india/news/tci-to-take-coal-india-directors-to-court/469807/)
LEELA KOVALAM, NOIDA AMONG TOP HIGH-VALUE SELLERS IN ASIA
NEW DELHI: The sale of Leela Kempinski Kovalam was among the top 10 hotel deals in Asiaduring the past one year, shows data from the US-based research firm Real Capital Analytics. Real Capital, which tracks and analyses real estate deals worth over $10 million across apartments, hotels, retail, industrial, office and development projects over the world, has also named Noida as a top site for sales in the development site category for a deal with the Wave Group for a mega mixed-use project. Mumbai and Bangalorealso figure among the active office markets in Asia. In apartments, Delhiand Mumbai are part of the top league in the year ended March 31, 2012. The Leela Kovalam deal, pegged at about Rs 500 crore, was the 10th in the Asia-list of largest hotel sellers during the one-year period. The Kovalam beach property was sold to Saudi Arabia-based industrialist Ravi Pillai last August. (For details log on to : http://www.business-standard.com/india/news/leela-kovalam-noida-among-top-high-value-sellers-in-asia/469806/)
SAHARA, ICICI BANK EYE PARSVNATH’S PRIME LAND IN DELHI
MUMBAI: Real estate major Parsvnath Developers may soon be able to reduce a significant chunk of its debt, thanks to certain corporate giants showing interest in buying a prime piece of property it owns in the national capital. The Sahara Group is engaged in discussions with Parsvnath to buy its commercial land near Connaught Placein New Delhi, according to sources. ICICI Bank is also among the contenders for the piece of land, it is learnt. The 1.18-acre plot at Kasturba Gandhi Marg was bought by Parsvnath in 2008 for about Rs 200 crore, with the aim of constructing a retail-cum-office complex. But the realtor is now looking to sell it to cut mounting debt, currently at Rs 1,300 crore. Although the Parsvnath management is looking for a price of Rs 700 crore, the interested parties are ready to sign a deal at Rs 600 crore, sources said. Property consultant Jones Lang LaSalle is advising Parsvnath on the deal. (For details log on to : http://www.business-standard.com/india/news/sahara-icici-bank-eye-parsvnaths-prime-land-in-delhi/469809/)
IOC, NAGARJUNA MISS TAX HOLIDAY CUT-OFF
NEW DELHI: The last week of March saw a series of new refining capacity going on stream. HPCL-Mittal Energy, Essar Oil and Mangalore Refinery & Petrochemicals (MRPL) were able to announce completion of capacity additions a couple of days before the seven-year tax holiday in this regard came to an end, on March 31. However, Indian Oil’s Paradip refinery and Nagarjuna’s Cuddalore refinery, both incomplete, missed the bus. The loss to IOC is around Rs 330 crore per annum while the impact on Nagarjuna is Rs 150 crore per annum for a seven-year period. Much earlier, to promote investment in petroleum refining, the Union government had announced a seven-year tax holiday for any new or expansion projects completed by March 31, 2012. The petroleum ministry had sought a two-year extension to this but the finance ministry declined. (For details log on to : http://www.business-standard.com/india/news/ioc-nagarjuna-miss-tax-holiday-cut-off/469804/)
PRICE CONTROL NOT WORKING FOR CANCER DRUGS
NEW DELHI: The medicine price regulator, the National Pharmaceutical Pricing Authority (NPPA), has found a price fixing mechanism suggested by its parent ministry, chemicals and fertilisers, has failed to meaningfully lower the prices of key cancer medicines. A group of ministers (GoM) headed by agriculture minister Sharad Pawar is expected to meet soon to finalise a pricing policy on drugs. The NPPA study findings may compel the ministry to seek other effective ways of controlling prices of essential cancer medicines, manufactured by nearly 20 domestic and multinational drug makers such as Ranbaxy, Cipla, GlaxoSmithKline, Fresenius Kabi, Eli Lilly, Novartis, etc. Invoking a public interest clause in the current Drug Price Control Order to empower NPPA to fix the price of these drugs is one option, officials said. (For details log on to : http://www.business-standard.com/india/news/price-control-not-working-for-cancer-drugs/469819/)
CEA MOOTS MEGA-PROJECT STATUS FOR COAL SECTOR
MUMBAI: Amid an ongoing controversy over the Comptroller and Auditor General’s draft report on coal allocation, the Central Electricity Authority (CEA) has strongly recommended giving the coal sector “infrastructure status” with tax holiday and duty exemptions. Alternatively, the CEA has, in the draft National Electricity Plan for the 12th and 13th Five Year Plans (FYPs), made a strong pitch for the introduction of the concept of mega project in the coal sector. This, the statutory body suggests, must be on the line of the power sector, where a mega status would be accorded to coal mines of production level of 5 MTPA (million tonnes per annum) or above and providing benefits of tax/duty concessions. Further, the CEA has called for the use of state-of-the-art technology to improve the efficiency and productivity in coal mines. Prescribing related policy changes, it has emphasised the need for further liberalisation of the government’s import policies to facilitate the adoption of cutting-edge international coal-mining technology that guarantees high output, better efficiency and improved safety. On its website, where the CEA has uploaded the Plan, has sought views, suggestions and objections from all stakeholders. (For details log on to : http://www.business-standard.com/india/news/cea-moots-mega-project-status-for-coal-sector/469822/)
NEW FIVE-YEAR PLAN COMMENCES WITHOUT FINAL SHAPE, APPROVAL
NEW DELHI: Like the previous two plans, the 12th five-year Plan (2012-17) also officially began today without a final document in place. Officials said this would be ready by November and then sent to the National Development Council (NPC) for approval. The process of receiving reports from the working groups and steering committees is not complete, a delay quite routine in the formulation of five-year Plans. Documents for the 10th and 11th Plans were also finalised much after the formal beginning. The 11th Plan began in April 2007 and was approved by the NDC in December that year. The 10th Plan began in April 2002 and was cleared for implementation by the NDC in December. (For details log on to : http://www.business-standard.com/india/news/new-five-year-plan-commences-without-final-shape-approval/469785/)
NEW NATIONAL HEALTH INITIATIVE ON ANVIL
NEW DELHI: The Planning Commission will give a big thrust on health through a much wider programme than the existing National Rural Health Mission (NRHM), in the 12th five-year Plan that begins from today. It would be a pan-India programme, meant to incentivise states to increase their annual spending on health. To be called the Rashtriya Swasthya Vikas Yojana and funded by the Centre, it is to be aimed at boosting public spending in those states whose health parameters lag the national average, but will not be limited to these areas. The Commission is believed to have shared its idea with the Sonia Gandhi-led National Advisory Council last week. “There have been several faults in NRHM, the biggest being the limited flexibility given to states to devise their own strategies and policies. The new programme will seek to change that, by giving states all the freedom,” a senior official said. (For details log on to : http://www.business-standard.com/india/news/new-national-health-initiativeanvil/469787/)
LONDON DAIRY GOES ALL OUT FOR BIGGER FOOTPRINT
MUMBAI: Rising mercury levels is hardly a welcome change for anyone. Except for ice cream manufacturers that is. In that sense the timing of premium ice cream maker, London Dairy ice creams’ first ever media campaign in Indiais perfect. The campaign, which broke across channels on Friday, is based on the global creative designed by O&M for the brand, tweaked slightly for Indian television. The TVC takes you from the fields of Europe where the ‘freshest strawberries’ are picked to those of Africa, from where the ‘finest cocoa’ is sourced for London Dairy’s ice creams. But the claim is not to use the ‘best ingredients’ to make ice creams but a more personal one – “It’s about taking the time out for making something special, just for you,” as the voiceover goes. In keeping with the brand’s premium imagery and target audience, the campaign will run mostly across English general entertainment, music and movie channels like Star World, Zee Cafe, HBO, VH1 and so on. (For details log on to : http://www.business-standard.com/india/news/london-dairy-goes-all-out-for-bigger-footprint/469753/)
DESTINATION SMALLER TOWNS FOR BPOs
NEW DELHI: When Aegis, the Essar group’s business process outsourcing (BPO) arm, announced a 250-seater centre in Srinagarin 2010, it raised the eyebrows of many peers. Two years after, the centre has added another 500 employees and been able to attract clients looking for capabilities and expertise in the local languages. Aegis is not the only BPO firm in Indiasetting shop in smaller towns. Genpact, WNS, Hinduja Global Services (HGS), Firstsource, Aditya Birla Mincas and others have done the same. With an expanding domestic market, increasing cost and higher attrition rate, outsourcing action is shifting to tier-III and IV cities. According to a report by research firm KPMG, “a number of information technology and BPO companies are opening centres in these places to reduce operational expenditures. These smaller cities offer advantages such as availability of talent at a lower cost, low attrition rate, affordable real estate, local government support, and a better quality of life. (For details log on to : http://www.business-standard.com/india/news/destination-smaller-towns-for-bpos/469789/)
MOBILE WALLET TAKES AIM: BUCK GETS A BANG
Cash is the prime target, and credit card could take the next hit. Clearly, telecom operators are on a war footing — doubling their efforts to promote mobile wallet services, that allow subscribers to load money onto their mobile accounts, and spend at will. Bharti Airtel has been the first to offer this service, with a good deal of advertising. Loop Mobile, too, introduced the service in collaboration with ZipCash, although with much less fanfare. Mobile wallets allow subscribers to convert their cell phones into virtual wallets, for utility services such as electricity bill payments, prepaid recharges, digital TV recharge, online shopping, buying movie tickets, etc. Consumers hope — for transactions’ sake — that mobile money will erect yet another wall of security. “A credit card could be swiped twice or for the wrong amount. The mobile wallet service can perhaps avoid this,” says Hemant Oza, a student from Mumbai. Airtel has already tied-up with around 18,000 merchants across the country, to allow for mobile payments. Providers tout an added advantage of the service: Its ability to transfer money (via an SMS) to a receiver, however remote. “But these transactions are very few,” says Oza. (For details log on to : http://www.business-standard.com/india/news/mobile-wallet-takes-aim-buck-getsbang/469754/)
ADITYA BIRLA RETAIL PLANS TO SHUT DOWN MORE THAN 3 DOZEN STORES
MUMBAI: The AV Birla group’s retail venture plans to shut more than three dozen stores and lay off more than 150 staff as newly appointed chief executive Pranab Barua attempts to increase the firm’s productivity and pull it out of red. Aditya Birla Retail has shut more than a dozen ‘More’ branded stores in recent days and is now busy identifying additional loss-making stores to be closed in the next few months. “What we are essentially trying to see across the network are stores which are making losses due to either wrong location or high rentals,” Barua said. “So in a way, around 10%-15% of your network will always be in question,” he added. This could lead to shutting down of many more stores out of the group’s network of about 500 supermarkets and hypermarkets in the coming weeks, particularly in top metros where the rentals are high and competition stiff, an industry official aware of the company’s plans said. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/services/retailing/aditya-birla-retail-plans-to-shut-down-more-than-3-dozen-stores-and-lay-off-more-than-150-staff/articleshow/12499026.cms)
TRAI & TDSAT MAY GET TO MONITOR PRINT MEDIA FOR CROSS-OWNERSHIP
NEW DELHI: To check the growing instance of cross-media ownership and resultant accumulation of interests in the hands of a few in the media, a government panel has proposed bringing the print media also under the relevant regulation. If the proposal is implemented, both the Telecom Regulatory Authority of India (Trai) and the Telecom Disputes Settlement & Appellate Tribunal (TDSAT), which currently have jurisdiction over broadcasting and cable television, will look at the ownership of print media also from this perspective. The idea is to minimise the likely adverse impact of concentration of ownership on the consumers in terms of price and content. The panel commissioned by the information and broadcasting (I&B) ministry has also rooted for changes in the legal framework to allow Trai and the Competition Commission of India (CCI) to work together in close coordination in order to deal with all instances of violation of cross-media ownership norms. (For details log on to : http://www.financialexpress.com/news/trai-&-tdsat-may-get-to-monitor-print-media-for-crossownership/931470/)
BOLLYWOOD SEES BIG MONEY IN E-COMMERCE
BANGALORE: The e-commerce craze has now caught up with Bollywood, with the who’s who of tinsel town pumping money into this rapidly evolving space. From superstars like Salman Khan, Sanjay Dutt, Ajay Devgn, Karisma Kapoor and Shilpa Shetty to lesser-known actors like Vatsal Seth, all are making a beeline to cash in on the near $10-billion opportunity. Last week online travel portal Yatra.com announced that Khan had become a stakeholder and brand ambassador for the Gurgaon-based firm, which is reported to have plans for a public listing next year. In December, Kapoor had picked up a majority stake in BabyOye.com, an online babycare products store, for an undisclosed amount. The highly enterprising B-town diva Shetty had launched GroupHomeBuyers.com — a group real estate buying site — through a 50:50 joint venture with Mumbai-based first-generation entrepreneur Hem Tejuja, just a few months ago. Devgn and Dutt have invested in ticketing service Ticketplease.com, whereas, Seth and Sohail Khan founded celebwears.com — a customised apparel store. (For details log on to : http://www.financialexpress.com/news/bollywood-sees-big-money-in-ecommerce/931473/)
LUTHRA & LUTHRA TO FIGHT TCI’S CASE AGAINST COAL INDIA
MUMBAI | NEW DELHI: The Children’s Investment Fund (TCI) has appointed law firm Luthra & Luthra to fight its case against state-owned coal monopoly Coal India and its directors for alleged breach of corporate governance practices. The UK-based hedge fund said government’s decision to ask Coal Indiato sign long-term fuel supply agreements with private power producers is ‘prejudicial to the public interest and oppressive to shareholders. Legal action by TCI comes amid growing expectations that the government will issue a presidential directive asking Coal Indiato sign the agreements with power producers. Industry leaders associated with the power sector said the directive was likely in a day or two, while government officials said they would take some decision on the matter this week. The government had signalled its intention to force the issue when the coal ministry wrote to TCI last week saying that the IPO documents of Coal India had clearly listed risk factors such as conflict of interest between the majority and minority shareholders and that the company sold coal at prices below international rates. Therefore, TCI’s arguments do not merit consideration, the ministry said in the letter. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/services/consultancy-/-audit/luthra-luthra-to-fight-tcis-case-against-coal-india/articleshow/12499185.cms)