MUMBAI: Bharti Airtel is in advanced discussions with US chipmaker Qualcomm to buy its fourth-generation licences for about Rs 6,000 crore, an acquisition that will allow the country’s largest telecom firm to quickly launch 4G services in the key markets of Delhi and Mumbai.
A person familiar with the development said the deal is likely to be closed by June and will be accompanied by technology agreements between Qualcomm and Bharti. Fourth-generation, or 4G, services offer users Internet access at three times the speed of 3G and require broadband airwaves.
Qualcomm, which had won airwaves in four regions – Mumbai, Delhi, Haryana and Kerala – in the broadband wireless auction of 2010 for Rs 4,900 crore, had begun talks to sell its 74% stake in its Indian joint venture to Bharti later that year.
But the talks were put on hold after the telecom department cancelled the US chipmaker’s mobile broadband permits last year on the grounds that it had not applied for licences within three months of the auction.
The telecom department further alleged that Qualcomm applied for permits under the names of four different companies, violating auction guidelines that said winners could ‘nominate only one company for obtaining a licence’.
But last month, the Telecom Disputes Settlement & Appellate Tribunal (TDSAT) ruled in favour of Qualcomm’s India unit and the company is expected to receive spectrum in 10 days, paving the way for discussions to be revived and the transaction to possibly go ahead.
A Bharti Airtel spokesman said the company did not comment on market speculation while emails to the US company went unanswered. “The sale is Qualcomm’s decision, we are not involved at this point,” said HS Bedi, chairman and managing director of Tulip Telecom, one of Qualcomm’s two JV partners in India.
Qualcomm divested 13% each to Tulip Telecom and GTL Infrastructure shortly after winning the 4G licences to ensure it adhered to Indian norms that cap foreign holding in a telecom company at 74%.
On Tuesday, Bharti launched India’s first 4G services in Kolkata. The company plans to follow suit in Bangalore within a month. But the country’s largest telecom company had won permits for only four circles in the broadband wireless auctions and is in danger of being outgunned in this segment by Reliance Industries, which bagged airwaves for the entire country.
Reliance is expected to launch 4G services in the third quarter of the financial year, triggering a price war in the high-speed data services market.
Analysts say if the Qualcomm deal happens, it will help Bharti strengthen its competitive position in the 4G market as it will be able to quickly launch operations in Delhi and Mumbai, the two cities that are expected to account for a third of all 4G customers in the next five years. Bharti currently holds licences in Maharashtra, Karnataka, Kolkata and Punjab.
Bharti is also eyeing the 700 MHz band auctions to consolidate its position in the 4G segment. The 700 MHz band is considered to be thrice as efficient as the 2300 MHz band that was auctioned in 2010. While the government has said it plans to hold the auctions in the current financial year, both Reliance Industries and Reliance Communications have demanded that these be held later.
Qualcomm’s India unit has spent a total of Rs 5,214 crore so far, including spectrum fee and interest charges on borrowing. The equity capital of the company is around Rs 1,100 crore while the rest has been borrowed.
Even as the chipmaker was contesting its licence cancellation in the telecom tribunal, the telecom department said Tulip Telecom had outstanding fee and penalty amounting to Rs 410 crore and the allocation of airwaves would only happen after the dues were cleared.
While Tulip has not accepted the liability, Qualcomm has deposited the amount with the department as the dispute was holding up allocation of its spectrum.
MALLYA SET TO FAST-TRACK STAKE SALE OF WHYTE & MACKAY
BANGALORE: Vijay Mallya appears to have chosen Whyte & Mackay (W&M), one of his most cherished acquisitions, for reducing the gearing of his flagship company, United Spirits Ltd (USL). Mallya had bought the pedigree scotch major, based in Scotland, for $1.2 billion in 2007. According to senior management officials of his UB Group, USL is working aggressively on reducing its stake in W&M, as its planned Foreign Currency Convertible Bond (FCCB) issue of $225 million would hardly suffice to reduce the company’s leverage of 1.7 times. A group official said: “While the FCCB will give us only minor elbow room, a stake sale in W&M will give us resources to reduce the debt burden to a large extent. The group is making serious efforts towards this.” The management of USL did not respond to questions on this move. (For details log on to : http://www.business-standard.com/india/news/mallya-set-to-fast-track-stake-salewhytemackay/470888/)
ODISHA, GAIL TO SIGN PACT FOR RS 5,000-CRORE PIPELINE SOON
KOLKATA/BHUBANESWAR: The joint venture (JV) agreement to be signed between the Odisha government and GAIL India Ltd for a Rs 5,000-crore natural gas pipeline is set to be finalized soon. The pipeline that will stretch from Surat(Gujarat) to Paradip will pass through two other non-major ports-Dhamara and Gopalpur and also some major towns like Angul and Sambalpur. “We have sought the views of relevant departments and state agencies like Industrial Infrastructure Development Corporation of Orissa (Idco) and Industrial Promotion and Investment Corporation of Orissa Ltd (Ipicol) on the draft JV agreement submitted by GAIL. The state government has requested GAIL to make some changes in alignment to ensure that the pipeline passes through the KBK (Kalahandi, Bolangir and Koraput) region,” said an industry department source. (For details log on to : http://www.business-standard.com/india/news/odisha-gail-to-sign-pact-for-rs-5000-cr-pipeline-soon/470824/)
NALCO PLANS ANOTHER NUCLEAR POWER PLANT WITH NPCIL
NEW DELHI: After Kakarapar Atomic Power Station (KAPS) in Gujarat, state-owned aluminium major Nalco is looking to set up another nuclear power plant in collaboration with Nuclear Power Corporation of India Ltd (NPCIL). An NPCIL-Nalco joint venture is already executing unit 3 and 4 of Kakarapar Atomic Power Station (KAPS) in Gujarat of 700 MW capacity each, which requires a total investment of about Rs 12,000 crore. “We are in talks with NPCIL for the second project. There are three options to set up the plant at West Bengal, Odisha and Rajasthan. We are looking at 1,500 MW atomic power project with 49 per cent stake,” National Aluminium Company Ltd (Nalco) Chairman B L Bagra told PTI in an interview. NPCIL would be the operator of the project with 51 per cent stake. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/nalco-plans-another-nuclear-power-plant-with-npcil/articleshow/12608797.cms)
DELLA TECNICA TO INVEST RS 1,500 CRORE IN 5 VILLA PROJECTS
MUMBAI: Architectural and interior design consultancy firm Della Tecnica is planning to set up villa projects in five cities in next three years with an investment of around Rs 1,500 crore, a top company official said. “After receiving an encouraging response to our villa project in Lonavala in Pune, we now plan to set up five more in major cities like Bangalore, National Capital Region (NCR), Kolkata, Indore and Ahmedabad in next three years,” Della Tecnica Chairman and Managing Director Jimmy R Mistry said, adding that the company will invest around Rs 1,500 crore for these launches. The Mumbai-headquartered firm, which has launched a villa project along with an adventure park and resort in Lonavala, will fund these projects with a mix of debt and equity. “While 30 per cent of the fund will be through equity, rest 70 per cent of the money will be raised through debt,” he said. (For details log on to : http://www.business-standard.com/india/news/della-tecnica-to-invest-rs1500-cr-in-5-villa-projects/470816/)
OMKAR CHEMICALS TO INVEST RS 100 CR AT CHIPLUN FACILITY
MUMBAI: Omkar Speciality Chemicals (OSCL) will set up a new facility for speciality chemicals with an estimated investment of Rs 100 crore at Chiplun in Maharashtra’s Ratnagiri district, a top official said on Tuesday. “We have decided to expand our speciality chemical business by setting up a new facility at Chiplun in Maharashtraat an estimated cost of Rs 100 crore, which will be financed through loans and internal accruals,” Omkar Speciality CMD Pravin Herlekar said. The upcoming unit for speciality chemicals will be ready by September this year. Omkar Speciality manufactures speciality chemicals like derivatives of selenium, iodine, molybdenum, cobalt, bismuth and pharma intermediates for life-saving drugs has recently forayed into pharmaceutical business with recent acquisition of LASA Laboratory, Herlekar said. The company has already spent Rs 27 crore and hopes to invest a total Rs 60 crore in the next two years to upgrade its lab facilities, he said. (For details log on to : http://www.business-standard.com/india/news/omkar-chemicals-to-invest-rs-100-cr-at-chiplun-facility/470819/)
INFINITY GROUP TO EXPAND FOOTPRINTS IN ASSAM REAL ESTATE MARKET
KOLKATA/GUWAHATI: Having ventured into the Guwahati real estate market in 2010 and commissioned one of its “elite” residential projects within a span of just two years, the Kolkata based Infinity Infotech Parks Limited (IIPL) is now looking at further expanding its footprints across North-East. The company will soon take up two mega-residential projects near Guwahati, one for mid-income segment and the other for economically weaker section. Besides, work on the ambitious Rs 400 crore IT Park project too is expected to begin later this year. As a whole, the company will be investing to the tune of Rs 1,000 crore in Assamin next 3 to 4 years and would also look at opportunities to venture into other states in the region. “We have lined up Rs 1,000 crore investment; to be made in Assamin next 3 to 4 years. This would include the IT Park and two residential complexes in and around Guwahati,” said Ravindra Chamaria, chairman and managing director of IIPL. (For details log on to : http://www.business-standard.com/india/news/infinity-group-to-expand-footprints-in-assam-real-estate-market/470830/)
ADITYA ALUMINIUM LINES UP RS 10,000 CRORE EXPANSION PLAN
KOLKATA/BHUBANESWAR: Aditya Aluminium Ltd, a unit of AV Birla group company Hindalco Industries, has lined up Rs 10,000-cr expansion plan to ramp up capacity of its aluminium smelter and captive power plant (CPP) proposed at Jharsuguda in western Odisha. The aluminium company intends to double smelter capacity from 0.36 million tonne per annum (mtpa) to 0.72 mtpa and scale up CPP capacity from 900 MW to 1650 MW. “Aditya Aluminium has presented a capacity expansion plan to the state government. But the expansion has not been referred to the High Level Clearance Authority (HLCA) yet. The Single Window committee has asked the company to abide by certain conditions recommended by the state task force on aluminium at its last meeting held in January this year,” a top official source told Business Standard. (For details log on to : http://www.business-standard.com/india/news/aditya-aluminium-linesrs-10000-cr-expansion-plan/470826/)
CAPARO SPINK WADE TO INVEST RS 1,000 CRORE IN 5 YEARS
NEW DELHI: Caparo Spink Wade International today said it will invest over Rs 1,000 crore in the next five years to set up high-end mattress manufacturing plants and spread operations in India. The firm is a newly formed joint venture between Caparo India, Harrison Spinks and Wade Group of UKwith Caparo holding 51 per cent stake while Harrison Spinks and Wade Group having 24.5 per cent each. Angad Paul, who is the Chairman of Caparo India, will be Chairman of the joint venture. “Initially we will set up a plant at Bawal in Haryana. We believe the market (in India) will sustain a big growth. We have earmarked Rs 1,000 crore to set up this plant and for our future expansion in the next five years,” Pauld told reporters here. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/durables/caparo-spink-wade-to-invest-rs-1000-crore-in-5-years/articleshow/12610576.cms)
QATAR INVESTMENT AUTHORITY LOOKS TO INVEST $10 BILLION IN INDIA
NEW DELHI: QatarInvestment Authority, the Gulf state’s sovereign wealth fund, is looking to invest up to $10 billion in Indiaevery year, according to its executive director Hussain Al Abdulla. The authority, whose investment portfolio includes iconic brands like Harrods, Sainsbury, Volkswagen, LVMH and Porsche, had invested $29 billion globally last year. “I am interested in anything that is consumer focus and that yields profits,” said Abdulla, who is in Indiaas part of the delegation accompanying Qatar’s Emir, Sheikh Hamad bin Khalifa al-Thani. Outside Qatar, the authority has opened offices only in Paris, Chinaand India. This Abdulla said reflected the weightage his company gave to Indiaas an investment destination. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/qatar-investment-authority-looks-to-invest-10-b-in-india/articleshow/12616493.cms)
GOVT MAY ALLOW 49% FDI BY FOREIGN AIRLINES THIS WEEK
NEW DELHI: After 16 years, the government is set to again allow foreign airlines to take stakes in Indian carriers later this week. The move is expected to help ailing Indian operators like Kingfisher raise funds. More importantly, it could pave the way for joint ventures – like Tata-Singapore Airlines that was ironically nixed years ago by disallowing FDI by foreign airlines – for start-ups too. The commerce & industry ministry on Tuesday circulated a Cabinet note seeking comments from other ministries to permit 49% FDI, and is hoping that the proposal will go through in its present form as the finance and civil aviation ministries had agreed to it earlier. But there is a great urgency in the government with the industry ministry rushing through the second round of consultations. It is planning to send the final note to the cabinet secretariat by Wednesday, a senior government official told TOI. (For details log on to : http://timesofindia.indiatimes.com/business/india-business/Govt-may-allow-49-FDI-by-foreign-airlines-this-week/articleshow/12615911.cms)
FINMIN, DIPP NOT IN FAVOUR OF ROLLING BACK 100% FDI IN TELECOM TOWERS
NEW DELHI: Both finance ministry and the department of industrial policy and promotion (DIPP) are not inclined towards rolling back the current 100% FDI in telecom tower category to 74%, as suggested by the Telecom Regulatory Authority of India (Trai). Sources said DIPP and finance ministry see the Trai suggestion as a retrogade step whose acceptance may send negative signal to the overseas investors. “Capping FDI at 74% could dissuade buyouts by overseas companies,” a government official said. Capping the foreign direct investments in telecom tower is part of the draft rules framed by Trai. The regulator has asked the industry to specify the maximum time frame that should be given to comply with the new foreign investment cap. Trai wants the new cap to be part of the revised rules for the sector —the National Telecom Policy 2012 —which will replace the existing framework that has been in place for more than a decade. But any change in foreign investment norms will require Cabinet approval. (For details log on to : http://www.financialexpress.com/news/finmin-dipp-not-in-favour-of-rolling-back-100-fdi-in-telecom-towers/935307/)
FDI IN RETAIL: ‘APPLE KEEN TO SET UP STORES IN INDIA’
NEW DELHI: The government officials said that Apple too is keen on setting up its own stores and getting some manufacturing done in India, but the small scale investment cap is proving to be a deal-breaker. Within weeks of the government notifying the norms on January 10, IKEA had said that it would be difficult for it to “live up to” some of the terms of the policy unveiled by the government. “IKEA management is continuously in dialogue with authorities and other relevant stakeholders. This is true also for Indiaas we are very positive to the decision to allow FDI for single brand retailers and remain optimistic that we will shortly be able to present more information about our possibilities to establish retail operations in India,” an IKEA spokesperson said in response to a questionnaire from TOI sent last week. (For details log on to : http://economictimes.indiatimes.com/news/economy/policy/fdi-in-retail-apple-keen-to-set-up-stores-in-india/articleshow/12607165.cms)
CABINET DECIDES TO GO FOR PRESIDENTIAL REFERENCE ON SPECTRUM AUCTION ORDER
NEW DELHI: The Cabinet on Tuesday approved a proposal of the department of telecommunications (DoT) to seek a presidential reference on certain issues pertaining to the Supreme Court judgment in the 2G telecom spectrum case. The issues include whether all telecom licences given on first-come-first-served (FCFS) basis before 2008 should be declared illegal and cancelled. The reference will also seek the court’s view on a more fundamental issue: whether the judgement lays down auction as mandatory for allocation of all natural resources across all sectors and in all circumstances. A view on this could have an impact on mining leases, land allocation, allotment of coal blocks, oil blocks, etc. The Supreme Court judgement of February 2 ordered the cancellation of 122 2G licences issued in January 2008, as the FCFS process was not transparent. (For details log on to : http://www.business-standard.com/india/news/cabinet-decides-to-go-for-presidential-referencespectrum-auction-order-/470886/)
INDUSTRIAL RECOVERY UNLIKELY SOON: ECONOMISTS
NEW DELHI: Economists are not upbeat on the prospects of a revival in industrial growth anytime soon, due to the dismal pace of reforms and certain Budget provisions. This is despite a Federation of Indian Chambers of Commerce and Industry (Ficci) survey showing more players were optimistic on a recovery in manufacturing in the last quarter of 2011-12. If industrial growth did not recover significantly this financial year, the expected 7.6 per cent growth in gross domestic product might be hard to achieve, said economists. In fact, despite the low base, many economists are also not upbeat about the industrial production data for February, the data for which would be released on Thursday. Manufacturing accounts for the major part of the index of industrial production (IIP). (For details log on to : http://www.business-standard.com/india/news/industrial-recovery-unlikely-soon-economists/470859/)
PSUs WORSE THAN PVT FIRMS EXPECT EMPLOYEES TO BE AVAILABLE 24X7, SHOWS SURVEY
CHENNAI/BANGALORE: A large number of public sector employees surveyed in Indiafeel their employers expect them to be available at all times, according to the Randstad Workmonitor Survey 2012 – Wave 1. The survey found that a majority of employees (72 per cent) working in the government sector felt that their employers expect them to be available at all hours. This is far higher than the sentiment felt by those who work in private organisations (59 per cent). The survey also shows that work life and private life are intertwined for a vast majority of the Indian workforce. Around 80 per cent of employees surveyed said they received work-related phone calls and e-mails beyond office hours. Also, a majority of workers (74 per cent) feel they receive more information than they can process. While the above finding is true among the age group of 18 – 54 (75 per cent), a lesser proportion of employees in the age group of 55 – 64 (59 per cent) feel that they receive more information than they can process. (For details log on to : http://www.business-standard.com/india/news/psus-worse-than-pvt-firms-expect-employees-to-be-available-24×7-shows-survey/470835/)
CIL INFLATED PRODUCTIVITY, SAYS DRAFT CAG REPORT
NEW DELHI: The world’s largest coal producer, Coal India Ltd (CIL), overstated its manpower productivity for five years between April 2006 and March 2011, according to the leaked draft report of the Comptroller and Auditor General of India (CAG) on the allocation of blocks and augmentation of production by the company. This assumes importance as over half of the commercial energy supply of India, Asia’s third largest economy, hinges on CIL’s productivity. The draft report notes that CIL calculates Output Per Man-shift (OMS), a measure of worker productivity, of departmental workers by including the contribution through outsourcing of production. This allowed the company to overstate productivity. “While the OMS (departmental plus outsourcing) in respect of opencast mines ranged 8-10 tonnes, the overall OMS ranged 3.48-4.73 tonnes. Thus, the methodology adopted by CIL for calculating OMS inflated the productivity of departmental personnel,” says the report. A Coal India spokesperson declined to comment on the matter, saying he was not aware of the content of the draft report and would have to consult the department concerned. CIL chairman Zohra Chatterji was also not available for comments. An email sent to CIL, requesting comments, remained unanswered. (For details log on to : http://www.business-standard.com/india/news/cil-inflated-productivity-says-draft-cag-report/470885/)
GLOBAL VC FUNDING IN SOLAR SECTOR AT $329 MILLION IN JANUARY-MARCH
The global venture capital (VC) funding in the solar sector was off to a slow start in 2012 calender year as deals worth USD 329 million were announced in January-March — the lowest since the fourth quarter of 2010. According to a report by Mercom Capital Group, a global clean energy communications and consulting firm, VC funding for the January-March quarter came to USD 329 million, the lowest dollar amount recorded since Q4 2010. However, in terms of number of deals the sector witnessed a record 34 VC backed deals, the highest ever recorded in the solar industry. “While VC’s interest in the solar sector remains strong, their appetite for risk appears to be lower as the average VC funding round amount in Q1 was USD 10 million, compared to USD 18 million in 2011,” Mercom Capital Group Managing Partner Raj Prabhu said. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/global-vc-funding-in-solar-sector-at-329-million-in-jan-mar/articleshow/12609809.cms)
COAL INDIA URGES GOVT TO CLEAR ITS PROJECTS QUICKLY
KOLKATA: At a time when Coal India Ltd (CIL) is being pushed to sign fuel supply agreements (FSAs) with power companies, the state-run firm has said it needs at least 70 project proposals to be cleared in the 12th Five-Year Plan period (2012-17) to meet the demands of customers. “During the 12th Plan, we have set a target of 615 million tonne (mt) in production. If it needs to be achieved and if we have to meet the demands of all these customers, at least 70 projects with a capacity of about 180 mt need to be cleared. Action has been initiated for this, but it needs to be fast-tracked. We are writing to the government to give clearances to these projects as soon as possible. Currently, our hands are tied,” said N Kumar, director, technical. While in 2008 its production was 379.5 mt, it zoomed to 403.7 mt in 2009 and 431.3 mt in 2010. It saw flat growth of 431 mt in 2010 and 2011; 2012 saw 435.8 mt. “To achieve the target of 464.1 mt this fiscal (2012-13), the clearances of these projects are vital,” he said. (For details log on to : http://www.business-standard.com/india/news/coal-india-urges-govt-to-clear-its-projects-quickly/470889/)
PLACE ALL COMMISSION REPORTS ON WEBSITE: CIC TO GREEN MINISTRY
NEW DELHI: The Central Information Commission has directed the environment ministry to publish reports of all commissions, special committees or panels on its website within a month of receiving them unless they are exempt under the clauses of the Right to Information Act. The commission issued these directives to the secretary, ministry of environment and forests while hearing the plea of Kerala-based G Krishnan who had sought copies of summary of the report ‘‘the western ghats ecology expert panel (WGEEP)’’ under the chairmanship of Professor Madhav Gadgil and their report on the Athirappilly HEP, Kerala. Information commissioner Shailesh Gandhi said the public money is spent on such commissions and hence the reports must be made public in accordance with the mandatory suo motu disclosure clause of the transparency. (For details log on to : http://www.financialexpress.com/news/place-all-commission-reports-on-website-cic-to-green-ministry/935060/)
AIRTEL 4G 10 TIMES FASTER THAN 3G
NEW DELHI/MUMBAI: Bharti Airtel, the country’s largest telecom service provider, on Tuesday launched the country’s first 4G service in Kolkata. It will offer data speeds more than 10 times faster than 3G but at nearly the same tariff. Airtel is offering three packs: the Breakfree plan for Rs 999 for free data usage quota of six GB (giga bytes), the Breakfree Max plan worth Rs 1,399 with free data usage of nine GB, and the Breakfree Ultra plan worth Rs 1,999 allowing free data usage of up to 18 GB. In contrast, it has only one postpaid data plan on the data card in 3G, which is at Rs 950 per month for six GB. Vodafone’s data pack is for Rs 3,250 for six GB but with a six-month validity. A normal movie requires about 300-500 MB (mega bytes) of space and a DVD quality movie about 1.5-2 GB. With 4G services, one would not have to spend hours in downloading a movie from the internet. (For details log on to : http://www.business-standard.com/india/news/airtel-4g-10-times-faster-than-3g/470884/)
GMR INFRA IN PACT WITH IDBI FOR RS 5,400-CRORE LOAN
GMR Infrastructure has finalised plans to raise debt of Rs 5,400 crore to finance its recently won highway project between Rajasthan and Gujarat. Six months earlier, the publicly-held company, based in this city, had in the face of global competition won the bid for six-laning of the 555-km Kishangarh-Udaipur-Ahmedabad stretch, the country’s first expansion of a mega highway. The company has signed an agreement with IDBI to be the lead consortium for debt syndication. IDBI will underwrite half the debt and syndicate the rest. Senior GMR Infra officials said they’d been able to strike the deal at a competitive interest rate of around 11.5 per cent (though a company spokesperson said the interest rate was still being finalised), with the entire amount to be disbursed in 15 years. (For details log on to : http://www.business-standard.com/india/news/gmr-infra-in-pactidbi-for-rs-5400-cr-loan/470891/)
RIL MAY IGNORE OIL MINISTRY ADVICE ON ARBITRATION
NEW DELHI: Reliance Industries Ltd (RIL) is evaluating provisions of the Arbitration Act to take forward its claim, though the government has declined to join the arbitration proposed by it to resolve the cost-recovery issue in the Krishna-Godavari (KG)-D6 block. In a pre-emptive move, RIL had sent an arbitration notice to the petroleum ministry in November 2011. It did not withdraw it even after being asked by the ministry. A top company executive said though there was no “actual move” from the government to restrict cost recovery, the recent turn of events pointed to its intent of doing so. “The delays in permits and approvals on various key issues related to the block show there is a move to restrict cost recovery,” he said. (For details log on to : http://www.business-standard.com/india/news/ril-may-ignore-oilmin-advicearbitration/470878/)
CAR SALES GROWTH SLUMPED IN FY12
NEW DELHI: Passenger car sales in the domestic market during 2011-12 had their slowest growth in two years, of only 2.2 per cent to 2,016,115 units, on the back of high interest rates and rising fuel prices. Car sales’ earlier marked slowing was during the global economic slowdown of 2008-09, when volumes had grown 1.4 per cent. It had bounced back to 29 per cent growth in 2010-11. The Society of Indian Automobile Manufacturers (Siam) on Tuesday projected passenger car sales growth at 10-12 per cent in 2012-13, on better macro economic prospects. For the overall industry, it has projected growth of 10-12 per cent for 2012-13, as against 12.2 per cent in 2011-12. (For details log on to : http://www.business-standard.com/india/news/car-sales-growth-slumped-in-fy12/470879/)
VENDOR OF FRUITS ACHIEVES THE IMPROBABLE
CHENNAI: Kovai Pazhamudir Nilayam maybe a mouthful for anyone outside Tamil Nadu but after you read about this company’s trajectory from roadside vendor of fruits to regional retail king, the name just may stick around in your imagination. The name means ‘Orchard of Fruits’ and is the first branded retail chain purely for fresh fruits and vegetables in the country. While other chains such as Reliance and More have posted large losses (Rs 44 crore for Reliance, Rs 423 crore for Aditya Birla’s More), Kovai says that it posted Rs 3 crore profit on revenues of Rs 150 crore in 2011-2012. This is a world away from the 25 paise per day that founder Natarajan decided to save, along with his three brothers, for a rosier future in 1953. Natarajan was ten at the time, his father had died, and education was jettisoned so they could scrape together a living and survive. Natarajan and his elder brother Chinnaswamy had recently joined a road side fruit shop, while his younger brother Kandaswamy worked at a petrol station. “Those were really tough days, without any proper food and shelter,” recalls Natarajan, who started his career as a cleaner in the fruit shop. (For details log on to : http://www.business-standard.com/india/news/vendorfruits-achievesimprobable/470851/)
BEWARE OF 2014 CRISIS: BASU
PUNE: Chief economic advisor Kaushik Basu on Tuesday indicated that there could be a third global crisis coming in 2014 in quick succession to the financial crises of 2008 and 2011. This could have an impact on the Indian economy as well, he said. “The year 2011 has been an echo of 2008 when sovereign governments in US and Europestepped in to rescue banks that were doing badly, which put all the money generated by the government to rescue corporates. So, the fiscal profile of US, Europe and Japanbegan to go down. Public debt to GDP ratios went up to 100% for Europe and 200% for Japanwhile it remained 45% for India,” he explained. (For details log on to : http://www.financialexpress.com/news/beware-of-2014-crisis-basu/935308/)
PREPAID MODEL FOR CABLE TV SUBSCRIBERS SOON
NEW DELHI: A prepaid model for cable TV subscriptions, itemised computer-generated billing for consumers, a choice of 50-100 free-to-air channels in the basic pack, mandatory helpline numbers and transparent revenue-sharing formula between multi-service operators and local cable firms are among a host of revolutionary changes that are set to be announced by the Telecom Regulatory Authority of India (Trai) this week. These measures will form a part of the much-awaited recommendations from Trai on the implementation of the Digital Addressable Systems (DAS) for cable television as mandated by the government in November 2011. Delhi, Mumbai, Kolkata and Chennai are set to roll out DAS in next 80 days. Most stakeholders have supported aping the telecom model for the payment of monthly cable subscriptions, i.e., allowing prepaid scratch cards, secure online payment gateways and mobile banking services for consumers under DAS, which kicks-off in the metros from July 1. (For details log on to : http://www.financialexpress.com/news/prepaid-model-for-cable-tv-subscribers-soon/935288/)
INDIA TO BAR CARRIERS FROM PAYING GREEN TAX TO EU
NEW DELHI: Making its opposition to the European Union’s move to tax airlines for emission clear, the aviation ministry has decided to pass an order banning Indian carriers from making any such payment. “We have been against such a levy from the beginning itself. We will soon issue an order banning airlines from paying any tax on carbon emission to EU,” said a senior civil aviation ministry official. The order could escalate the conflict over EU norm that makes it mandatory for airlines across the world flying in and out of Europeto pay for emission. While countries across the world have been opposing such a levy, Indiaand Chinahave completely ruled out the possibility of paying any tax. (For details log on to : http://www.financialexpress.com/news/india-to-bar-carriers-from-paying-green-tax-to-eu/935284/)
PM STRESSES ON PARTICIPATORY MECHANISM FOR WATER PRICING
NEW DELHI: Noting that inadequate and sub-optimal pricing of power and water was promoting misuse of groundwater, Prime Minister Manmohan Singh on Tuesday stressed on the need to move towards participatory mechanisms of water pricing by the primary stakeholders themselves. He also said keeping in mind the limitations on increasing water supply, a large part of effort to plug the demand-supply gap must focus on increasing water use efficiently. “There is no regulation of groundwater extraction and no coordination among competing uses. Inadequate and sub-optimal pricing of both power and water is promoting the misuse of groundwater. We need to move to a situation where groundwater can be treated as a common property resource,” the prime minister said inaugurating the first National Water Week. Singh said one of the problems in achieving better management was that the current institutional and legal structures dealing with water in Indiawere inadequate, fragmented and “need urgent reforms”. (For details log on to : http://www.financialexpress.com/news/pm-stresses-on-participatory-mechanism-for-water-pricing/935292/)
PAKISTAN TO IMPORT 50 MILLION KG INDIAN TEA BY 2015
KOLKATA: The Pakistan Tea Association (PTA) and Indian Tea Association (ITA) today signed a memorandum of understanding to import 50 million kg of the beverage by 2015. The MoU was signed by chairman of PTA Mohd Hanif Janoo and chairman of ITA C S Bedi here. Bedi said the present levels of Pakistani imports of Indian tea was 24 million kg, with Pakistan’s annual consumption at 235-240 million kg and growing at 2 per cent annually. He added Pakistanis a large CTC (crush, tear, curl) tea drinking nation and Indiais able to meet a large chunk of that demand as it is the largest producer of CTC tea. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/food/pakistan-to-import-50-million-kg-indian-tea-by-2015/articleshow/12611246.cms)
RCOM UNIT GETS SINGAPORE NOD FOR $1.4-BN IPO
MUMBAI: Reliance Communications (RCom), India’s third-largest mobile telephony firm by revenues, on Tuesday said it is planning to list its undersea cable network unit, Flag Telecom, on the Singapore Stock Exchange (SGX). Analysts say the move will help pare RCom’s R33,000-crore debt. “RCom is evaluating a potential initial public offering (IPO) and listing of its subsea telecommunications infrastructure network business in Singaporethrough a Singaporebusiness trust,” the company said in a statement to the exchanges. Flag Telecom has received an approval from SGX to list its shares, an agency reported on Tuesday, quoting unnamed sources. Bankers said the public offer is expected to be in the range of R7,500-10,000 crore and RCom will divest up to 75% of its equity in the 100% subsidiary. “The company will be listed as a business trust on the main board of SGX-SP,” a banker, who cannot be identified as he is not authorised to speak to the media, said. (For details log on to : http://www.financialexpress.com/news/rcom-unit-gets-singapore-nod-for-1.4bn-ipo/935263/)
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