New Delhi: The Sun Group-promoted SpiceJet is keen on offloading a part of its stake to an overseas investor as soon as the government gives green signal to the FDI policy, allowing foreign airlines to pick up to 49% stake in domestic airlines.
The SpiceJet board has already evolved a consensus on selling a part of the company to foreign investors. “The airline is open to selling its stake — it could be to financial investors or foreign airlines,” Neil Mills, CEO of SpiceJet, told FE on Thursday.
FE had earlier reported that the airline was in talks with Dubai-based Emirates for a majority stake sale. The carrier had officially refused to comment on the news then.
Even now, Mills did not divulge the name of the airline or the foreign investors that SpiceJet was in talks with. “Many airlines have expressed interest. We do not now how much we would sell. It will all depend on the deal that they offer. As far as foreign airlines are concerned, for European airlines, it would not make much sense to buy into SpiceJet. It can be either a Gulf or a Southeast Asian airline,” he said.
The aviation ministry has already moved a Cabinet note on allowing foreign airlines to buy up to 49% in Indian carriers. The proposal, if cleared, is seen as a major relief to domestic carriers struggling to stay afloat.
Meanwhile, SpiceJet’s Q4 losses mounted to R249 crore during 2011-12 against R59 crore a year ago despite a 46% increase in sales to over R1,100 crore. Mills attributed the lossto high fuel cost. SpiceJet fuel bills shot up 55% in Q4.
With oil prices coming down from $115 per barrel to $103 in the last couple of weeks, the airline expects the losses to narrow.
“The fuel cost will come down further, once we start importing it directly. Also, our yields per seat have been going up significantly. So, the next quarter, things are definitely going to improve,” said Mills. The company has tied up with a third party — transportation companies — for importing fuel from various countries. It was initially in talks with Indian oil marketing companies for the same. However, Mills said, “Indian oil firms were not interested. So, we had to look for other options.”
For 2011-12, the Chennai-based company’s net loss stood at R605 crore against a net profit of R101 crore a year before. Its income rose to R3,998 crore from R2,938 crore.
The carrier outperformed the industry passenger traffic growth of 16%. Its passenger traffic grew 24% and seat load factor crossed 80% from 74.4% during the same period a year before.
CRISIL BUYS BRITISH ANALYTICS FIRM COALITION FOR RS. 250 CRORE
Mumbai: CRISIL announced on Friday that it had entered into an agreement to buy 100% equity shares of the UK-headquartered Coalition Development along with its subsidiaries. Coalition provides high-end analytics, mainly to leading global investment banks and reported 2011 revenues of GBP 8 million. The all-cash transaction has a maximum payout of GBP 29 million (around R250 crore) with earn outs over two years, linked to achievement of specified milestones for the company’s future revenues and profits. The acquisition will add to the earnings per share of Crisil from the first year. The transaction is subject to regulatory approvals. Coalition will be part of Crisil’s Global Research and Analytics (GR&A) business. Coalition’s analytics provide a clear, actionable picture of the markets and are used by boards, strategy teams and top management at leading financial services institutions. Roopa Kudva, the managing director and CEO of Crisil, said, “Coalition’s cutting-edge analytical capabilities, in-depth understanding of the workings of financial markets and strong relationships with its clients will enable Crisil Global Research & Analytics to widen service offerings, diversify its client base and deepen client relationships.” (For details log on to : http://www.financialexpress.com/news/crisil-buys-british-analytics-firm-coalition-for-rs.-250-cr/956723/)
FUTURE GROUP PARTNERS LT FOODS
MUMBAI: Future Group has partnered LT Group to utilize the integrated food park facilities that are being developed by the retailer’s arm Future Ventures. LT Food will use the facility for setting up a milling, processing and storage facilities for Sona Masuri Rice as well as jointly developing and marketing a vast range of healthy snacks to be manufactured at Daawat Foods facilities, a subsidiary of L T Foods under the private label brand. Kishore Biyani, Founder and Group CEO, Future Group said, “We are very excited to have LT Foods as a partner in our Integrated Food Parks. Food consumption in Indiais largely in commodities and there lies a huge opportunity to provide customers with branded, value-added products that offer superior quality and health benefits and benefit everyone in the ecosystem.” (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/cons-products/food/future-group-partners-lt-foods/articleshow/13705489.cms)
RADICO KHAITAN TO SCOUT FOR JOINT VENTURES IN AFRICA
BANGALORE: Liquor marketer Radico Khaitan is scouting for joint ventures in Africa. The maker of 8PM whisky and Magic Moments vodka will set up a wholly-owned subsidiary in Mauritiusto drive business in international markets. Radico Khaitan received approval to invest upto $10 million into the subsidiary, at its board meeting on Wednesday. This wholly-owned subsidiary will promote its international business including exports and investments in joint venture companies in Africa, it said. “The African continent has huge potential for Indian products. We want to expand business there and are contemplating various structures to do that,” Abhishek Khaitan, managing director of Radico Khaitan, told ET. We chose Mauritiusfor the wholly-owned subsidiary because it is a competitive destination; companies there enjoys tax concessions for remitances on their investments in Africa, Dilip Banthiya, CFO of Radico Khaitan said. (For details log on to: http://economictimes.indiatimes.com/news/news-by-industry/cons-products/liquor/radico-khaitan-to-scout-for-joint-ventures-in-africa/articleshow/13702390.cms)
POWER GRID CORPORATION BOARD APPROVES INVESTMENTS WORTH RS 3,422 CRORE
NEW DELHI: State-run Power Grid Corporation of Indiatoday said its board has approved investment proposals worth Rs 3,422.40 crore. The proposals were approved at meeting of the company’s board on May 29, it said in a regulatory filing. The company would pump in Rs 1,909.24 crore for certain projects in Srikakularm and the work is anticipated to be over within 36 months from the date of investment approval. Power Grid would invest Rs 1,263.26 crore for system strengthening of “XVIII in South Regional Grid” and the work is expected to be completed in 29 months from the date of investment nod. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/power-grid-corporation-board-approves-investments-worth-rs-3422-crore/articleshow/13708303.cms)
FOUR PSUs POOL IN RS 45,000 CRORE FOR BUILDING NUCLEAR PROJECTS
CHENNAI: Four public sector majors will pool in Rs 45,000 crore to fund the equity portion of the several planned nuclear power projects in the country, Mr S. K. Jain, Chairman and Managing Director, Nuclear Power Corporation of India Ltd (NPCIL), has said. NPCIL has alongside lined up €7 billion of credit from foreign banks. While NPCIL itself has Rs 15,000 crore, three other PSUs — NTPC, Nalco and IOC — have agreed to bring in Rs 10,000 crore each, Mr Jain told Business Line in Chennai on Tuesday. NPCIL has entered into three separate joint ventures with the three companies. But for them to start functioning, it requires an amendment to the Atomic Energy Act. The joint ventures are “waiting for the amendment”, Mr Jain said. Indiahas a very large nuclear programme. Currently, four units of 700 MW each, of the Pressurised Heavy Water Reactor (PHWR) technology, are coming up — these are units 7 and 8 of Rajasthan Atomic Power Station (RAPS) and units 3 & 4 of Kakrapara, Gujarat. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-economy/article3481005.ece)
BEML TARGETS 23% GROWTH IN TURNOVER AT RS 5,000 CRORE IN FY13
CHENNAI/BANGALORE: Defence PSU BEML Limited is eyeing a growth of 23 per cent in its turnover, at Rs 5,000 crore during the present financial year (2012-13). The company achieved a turnover of Rs 4,077 crore during year-ended March 31, 2012. V R S Natarajan, chairman and managing director, BEML, said the growth in turnover would come from mining and construction, rail and metro, defence and new areas like aerospace and dredging businesses. “We will meet the Rs 5,000 crore turnover target two years ahead of target. As per our Corporate Plan-1, we had targeted a business of Rs 5,000 crore in 2014-15. Presently, we have an order book of Rs 7,066 crore, of which the executable orders are worth Rs 3,767 crore. The balance orders will be executed over the next year,” he told reporters. He said the company has approved the Corporate Plan-2 prepared by the Indian Institute of Management, Bangalorerecently. As per the plan, the company aims to achieve a turnover of Rs 10,000 crore over the next six years by 2018-19. (For details log on to : http://www.business-standard.com/india/news/beml-targets-23-growth-in-turnover-at-rs-5000-cr-in-fy13/476057/)
ALANKIT GROUP TO BEEF UP FRANCHISEE NETWORK IN INDIA
CHENNAI/VISAKHAPATNAM: New Delhi-based Alankit Group, which has interests in financial services, healthcare, e-governance and wealth management businesses, is planning to rope in around 3,600 franchisees across the country in the next four to five years. The company currently has 1,400 franchisees in India, catering to its financial services business. “At present, our group has 20 regional offices and 12 branches offices in the country. We are on the verge of launching another five regional offices,” Alok Kumar Agrawal, chairman and managing director of Alankit Group, told Business Standard. In 2011-12, the company’s revenues stood at Rs.125 crore, an increase of Rs 25 crore over the previous year. It is expecting to garner Rs 150-crore revenues this financial year, of which 30 per cent is expected to flow in through trading activities and over 45 per cent from the e-governance business. Under its healthcare division, the group currently operates 14 pharmacies mainly in Delhi. “The division’s performance is very encouraging, and hence we have decided to open around 1,000 outlets across the country in the next five years,” Agrawal said. (For details log on to : http://www.business-standard.com/india/news/alankit-group-to-beeffranchisee-networkin-india/476061/)
DATAMATICS TO EXPAND OPERATIONS IN GUJARAT
MUMBAI/AHMEDABAD: After acquiring open source player Cignex Global Holding Corporation, global information technology (IT) and knowledge process outsourcing (KPO) company. Datamatics Global Services (DGS) is now looking at expanding its operations in Gujarat. While the company picked up 72 per cent stake for Rs 120 crore in Cignex, which has operations in Ahmedabad, Datamatics is looking at a capital expenditure of Rs 25 crore for expanding its operations in the state. With a requirement of 10 acres, the company is scouting for land in the state of Gujarat. “We think Gujaratis a good destination especially centres like Vadodara and Ahmedabad. There are currently 500 people in Cignex of which 350 are in Ahmedabad, 50 are in Bangaloreand 100 are spread across the world. We want to grow manpower in Cignex to 2,500 in next three years,” said Lalit Kanodia, chairman of Datamatics. Last year, while Cignex grew by 40 per cent, Datamatics grew by 60 per cent. DGS pegged a turnover of Rs 441.89 crore for fiscal 2011-12 and is looking to become a Rs 1,000 crore company in next three years. (For details log on to : http://www.business-standard.com/india/news/datamatics-to-expand-operations-in-gujarat/476053/)
H&R JOHNSON INDIA TO INVEST RS 400 CRORE FOR EXPANSION
MUMBAI/PUNE: Tile, bath and kitchen manufacturer H&R Johnson (India), a division of Prism Cement Limited is investing around Rs 400 crore as a part of the company’s plans to scale-up the Johnson Bath Division, it plans to invest in building new capacities as well as enhance its existing distribution network going forward in the next two years. Johnson has already invested Rs 225 crore for the expansion of its Silica joint venture unit in Andhra Pradesh. The company has recently forayed into premium category health bathroom product business. It will produce over 1.5 million units of this new business within next two years. This range of anti-bacterial sanitary ware has been manufactured by using the silver nano technology. The total production capacity of the company, which posted revenue of Rs 1,729 crore, would also go up to 51 million sq.m from 46 million sq.m. Johnson contributes 35 per cent of total revenues of Prism Cement Ltd, he added. (For details log on to : http://www.business-standard.com/india/news/hr-johnson-india-to-invest-rs-400-cr-for-expansion/476054/)
LULU JOINS LIST OF RETAILERS SHELVING INDIA PLANS
NEW DELHI: With the retail FDI policy nowhere near its implementation, a number of foreign retail chains are tapping the Gulf and African economies for expansion. Among them is the $4.5-billion EMKE Group’s shopping mall chain, Lulu Hypermarket, which, after dominating the Gulf Cooperation Council, is now expanding in Tunisia, Libya, Egypt, Algeriaand Yemen, but not India. Others to have deferred their Indiaentry include Carrefour, Metro, IKEA, Walmart and Tesco. “The problems regarding allowing FDI in retail in Indiaare all well known. But for us, countries like Libya, Egyptand Algeriaare the new markets for expansion,” Yusuf Ali MA, promoter of EMKE Group, told FE. Yusufalli has been voted as the second richest NRI in the Gulf region with a personal wealth of around $2 billion. He serves on the board of Air Indiaand is a member of the security advisory council to civil aviation. He is also director of other government bodies in Kerala and at the Centre. Lulu International, which runs the shopping malls and hypermarket for EMKE Group, is not interested in expanding its Indiapresence. (For details log on to : http://www.financialexpress.com/news/lulu-joins-list-of-retailers-shelving-india-plans/956837/)
INDIA INC: FAST TRACK FDI, NEW TAX REGIME FOR GROWTH
NEW DELHI: India Inc sees quick action to allow foreign direct investments in key sectors such as civil aviation and multi-brand retail, and ushering in the Goods and Services Tax regime will boost the economy’s sagging growth rate. Spooked by the sharp dip in fourth quarter GDP growth to 5.3 per cent, India Inc has asked for strong and decisive action on reforms from the Government to regain the growth momentum. The CII President, Mr Adi Godrej, said the reforms process needs to be urgently revived. “Opening up foreign direct investment in critical sectors such as civil aviation and Defence, and allowing FDI in multi-brand retail will go a long way in improving sentiments. GST alone will add 2 percentage points to GDP. This particular reform has been delayed for three years now,” he said, adding that although single brand has opened up, the norm of 25 per cent sourcing from small and medium enterprise should be tweaked to accommodate any Indian manufacturer. (For details log on to : http://www.thehindubusinessline.com/todays-paper/article3481018.ece)
PM’S INVESTMENT TRACKER SYSTEM TO SPEED UP PROJECTS
NEW DELHI: A day after official data showed the slowest GDP growth in nine years and amid rising concerns over the persistent slump in investment demand, Prime Minister Manmohan Singh on Friday set up an investment tracking system to ensure speedy implementation of projects with outlays of R1,000 crore and above. These major projects will be specially tracked “to take them forward on a fast track in order to provide a fresh impetus to the economy”, according to a statement issued by the Prime Minister’s Office (PMO). India’s economic growth rate during 2011-12 slipped to a nine-year low of 6.5% mainly because of a slowdown in manufacturing, sluggish investment scenario and inadequate growth in consumption demand. As per the Central Statistics Office data released on Thursday, both private consumption demand and fixed investment grew at a dismal rate of 5.5% in 2011-12, against 8.1% and 7.5%, respectively, in the previous year. (For details log on to: http://www.financialexpress.com/news/pms-investment-tracker-system-to-speed-up-projects/956883/)
TRADE DEFICIT DIPS MARGINALLY, EXPORTS RISE 3.23 PER CENT TO $24.45 BILLION IN APRIL
NEW DELHI: India’s trade deficit for April declined marginally to $13.48 billion compared to the March 2012 figures, while the exports grew by 3.2% to $24.45 billion on account of recent depreciation in the rupee despite a slowdown in demand from overseas markets like the US and Europe. The April imports also increased by 3.8% on an annual basis to $37.94 billion, said the data released by the commerce ministry on Friday. A high trade deficit could worsen India’s current account balance and further weaken the rupee, which hit a record low on Thursday, besides leading to implications on employment and additional job creation. “The depreciation of rupee prima facie would help exporters in terms of higher realisation in terms of rupee. Overall, in the long term it would help the exporters,” finance secretary RS Gujral said at the meeting of the Board of Trade. Oil imports increased 7% to $13.9 billion from the corresponding period last fiscal, while non-oil imports stood at $24.03 billion. Oil imports are the single largest burden on the government’s finances since Indiaimports about 80% of its crude needs and key fuels such as diesel, kerosene and LPG are heavily subsidised by the state. (For details log on to : http://www.financialexpress.com/news/trade-deficit-dips-marginally-exports-rise-3.23-to-24.45-billion-in-april/956844/)
PRANAB, SHARMA DIFFERENCES PERSIST ON EXPORT SOPS
NEW DELHI: The finance and commerce ministries have not yet found common ground on exporter sops a week before the foreign trade policy is to be announced. While the finance ministry has not yet given its consent to the popular interest rate discount scheme, fearing it can be a serious drain on the exchequer, the commerce ministry is not willing to give up on its cheaper credit demand. A number of meetings on sops are expected between top officials of the two ministries over the next few days. “The finance ministry has not yet given its consent for the interest subvention scheme but we are obviously not giving up. Negotiations on the number of sectors to be covered are expected over the next few days,” a commerce department official told ET. Commerce and Industry Minister Anand Sharma, who convened a meeting of the board of trade comprising senior industrialists on Friday, said there was a need to give a differential rate of credit to exporters to lift investor sentiments. “We want it (interest subvention) to be re-instated,” Sharma said, adding that the RBI had its own set of compulsions. (For details log on to : http://economictimes.indiatimes.com/news/economy/policy/exporter-sops-no-common-ground-for-pranab-mukherjee-and-anand-sharma-yet/articleshow/13712219.cms)
CBI INQUIRY INTO COAL ALLOCATIONS
NEW DELHI: The Central Bureau of Investigation (CBI) on Friday initiated an investigation into the alleged irregularities in allocation to and utilization of coal mines by private companies in 2006-2009. The investigation is based on the advice of the Central Vigilance Commission (CVC), the apex anti-corruption watchdog. The CBI action is politically a setback for the ruling Congress-led United Progressive Alliance as the allegations relate to the period when Prime Minister Manmohan Singh held additional charge of the coal ministry. “We have registered a preliminary enquiry against unknown people. And it is likely to be completed within 12 weeks,” said a high-ranking official who did not want to be named. “We will be looking for criminal misconduct, if any, by companies allocated coal blocks and also any wrongdoings in the allocation process.” (For details log on to : http://www.livemint.com/2012/06/01222232/CBI-inquiry-into-coal-allocati.html?atype=tp)
FLAT FACTORY PMI FOR MAY SHOWS STABLE DAYS AHEAD
NEW DELHI: A day after the government announced dismal economic growth numbers, a survey on Friday showed steady expansion of India’s manufacturing sector during May, raising hopes that the industrial slowdown may stabilise in the coming months. The HSBC manufacturing Purchasing Managers’ Index (PMI), compiled by Markit, declined marginally to 54.8 in May from 54.9 in April. The reading for Indiain the widely-followed survey has stayed above 50, which separates growth from contraction, for a little over three years. Indiais the only bright spot in the latest survey, with China’s official PMI slumping to 50.4 from 53.3 in April and the eurozone reading touched its lowest level since 2009. “Activity in the manufacturing sector kept up the pace in May with output, quantity of purchases and employment expanding at a faster pace,” said Leif Eskesen, chief economist for Indiaand ASEAN at HSBC said. (For details log on to : http://economictimes.indiatimes.com/news/economy/indicators/flat-factory-pmi-for-may-shows-stable-days-ahead/articleshow/13712097.cms)
GOVERNMENT UNWILLING TO TALK ON COAL PRICING: TCI
NEW DELHI: UK-based hedge fund, The Children’s Investment Fund (TCI), has criticised the Indian government for refusing to engage in a dialogue with the investor on disputes regarding coal pricing by Coal India, where TCI holds about 1%. “There seemed to be a pre-determined agenda to deny all allegations and repeatedly state that there was no basis for the dispute…unless the government can offer us a more constructive form of engagement, this matter is going to end up in arbitration,” said Mark Derbyshire, a partner at TCI. However, TCI said it was pleased to hear the government’s view that pricing of coal should be determined by CIL board, free from government interference and that the government supports coal washing by CIL. In March, TCI had initiated legal action against the Indian government for allegedly violating bilateral treaties of Cyprusand UKby forcing CIL to enter into agreements with power firms and sell coal at discounted price. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/metals-mining/government-unwilling-to-talk-on-coal-pricing-the-childrens-investment-fund-tci/articleshow/13714626.cms)
SOLAR EQUIPMENT MAKERS SEEK ANTI-DUMPING DUTY ON IMPORTS FROM CHINA, MALAYSIA, TAIWAN
NEW DELHI: Indian manufacturers of solar equipment are seeking anti-dumping duty on imports from China, Malaysia, Taiwanand the USon the grounds that local industry is bleeding because of “ridiculously low” price of foreign equipment. The industry wants anti-dumping duty on imports of solar photovoltaic (PV) cells and modules, and has filed an application to the directorate general of anti-dumping and allied duties (DGAD). “Globally, there’s a huge capacity of solar PV cells and modules. The selling price is artificial and not at all related to the cost of the product currently,” said S Venkatramani, general secretary, Indian Solar Manufacturer’s Association. The application was filed in January and DGAD is looking into the matter. He said Indian industry has a very low capacity and dumping of foreign products is making their condition even worse. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/power/solar-equipment-makers-seek-anti-dumping-duty-on-imports-from-china-malaysia-taiwan/articleshow/13714425.cms)
PNGRB HAS NO POWER TO REGULATE TARIFF: HC
NEW DELHI | AHMEDABAD: The Delhi high court on Friday ruled in favour of Delhi gas utility Indraprastha Gas Ltd (IGL), stating the government regulator had no jurisdiction to fix rates or regulate tariff. Riding on the favourable ruling, IGL’s shares skyrocketed 29% – the most since 2003, when the company was listed – closing at 249.35.The court ruling settles, at least for the moment, the confusion surrounding the margins that gas utilities are allowed to earn. The regulator Petroleum & Natural Gas Regulator’s (PNGRB’s) order in April had knocked down the sector stocks over similar fears. However, the Delhihigh court ruling has changed all that and city gas distributors have reasons to smile as they will now get more freedom to determine their tariff. But the role and scope of the regulator has come under cloud, especially after the ruling. (For details log on to : http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/pngrb-has-no-power-to-regulate-tariff-hc/articleshow/13716565.cms)
DISCOMS TO CALL FOR BIDS FOR SHORT-TERM POWER NEEDS
NEW DELHI: In order to offer relief to cash-starved State power distribution companies, the Power Ministry has put in place new guidelines to procure electricity for shorter duration — up to a year. The new guidelines are targeted to reduce the power purchase bills of distribution utilities through a process of planned procurement. It would also benefit consumers because State distribution utilities prefer cutting down electricity supply to buying expensive power during peak demand cycles. Based on the guidelines, the State utilities can call for bids on a round-the-clock basis for different time slots, depending on the requirement. The bidders would have to quote a single tariff at the delivery point that would include capacity charge, energy charge and any other levies. “These new norms would help in rationalising the power market. Private companies are already using the open tendering process under CERC guidelines to procure power. The new notification would be more useful to State distribution utilities,” said Mr Gopal Saxena, Chief Executive Officer of BSES Rajdhani Power Ltd that supplies electricity in New Delhi. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-economy/article3481002.ece)
COAL SHORTAGE SITUATION IN THERMAL PLANTS ‘WORSENS’
CHENNAI: Data from the Central Electricity Authority show that the coal shortage situation in thermal power plants has worsened during the last one year. The total capacity of the plants with coal stock of less than four days – defined by CEA as ‘super critically’ short of coal – has increased to 22,220 MW as on May 29, compared with 15,435 MW as on June 1, 2011. Likewise, the capacity of plants with less than seven days stock of coal also increased to 30,747 MW, against 25,777 MW a year ago. The CEA data also reveals a disturbing fact – the situation sharply deteriorated in the last one month too. On May 1, there were 13 plants, of a total capacity of 12,250 MW, that were ‘super critically’ short of coal. This means that 10,000 MW of plants became very critically short of coal in one month. Two of these plants – Anpara C (1,200 MW) in Uttar Pradesh and Kahalgaon (2,340 MW) in Bihar– have no coal at all. Incidentally, both the plants are ‘pithead’ plants, that is, located at a coal mine. (For details log on to : http://www.thehindubusinessline.com/todays-paper/tp-economy/article3481004.ece)
COAL MINERS SET TO MATCH ROYALTY AMOUNT FOR LOCALS
NEW DELHI: The government is set to make it mandatory for coal mining companies to earmark an amount equivalent to the royalty they pay to the states for the well-being of people affected by their projects. Apart from public sector Coal India (CIL), the largest coal miner in the country, steel, power and cement companies with captive coal mines will also come under the rule. The move could further erode the profitability of these companies. According to a Cabinet decision taken in October last year, coal mining companies were supposed to share 26% of their profits for the support of project-affected locals, instead of an amount equivalent to their total royalty payout as is the case with companies mining other minerals. It has now been decided to ask coal miners also to earmark an amount equal to the royalty paid for the rehabilitation of locals, because mining-related profits were difficult to be separated from other activities in case of companies with captive mines. The proposal is also a part of the new Mines and Minerals (Development and Regulation) Bill, 2011, which was introduced in Parliament and is currently being vetted by a standing committee. For non-coal minerals, companies are required to keep aside an amount equivalent to the royalty they pay to the government for the well-being of the locals. (For details log on to : http://www.financialexpress.com/news/coal-miners-set-to-match-royalty-amount-for-locals/956886/)
GABBAR SINGH ON A ROLL AT THE BOX OFFICE
HYDERABAD/MUMBAI: Gabbar Singh, a Telugu remake of the Salman Khan-starrer Bollywood blockbuster Dabangg has taken the box office by storm. The power-packed film has become the biggest grosser for a Telugu film, collecting a staggering Rs 128.75 crore in just three weeks (till June 1) in the domestic and global market together. It is also closing in on the box-office success of the movie it has been inspired by. Dabangg had grossed over Rs 173 crore, which catapulted it into the league of the top five Bollywood blockbusters. Gabbar Singh was made with a budget of Rs 30 crore and released on 2,857 screens worldwide, which made it one of the widest distributed Telugu films. Pawan Kalyan, younger brother of actor-turned-politician Chiranjeevi, plays the lead role of a cop. Unlike Salman, who is portrayed as a corrupt police officer with an unorthodox working style, the remake has shown Kalyan as a sincere officer. The movie, directed by Harish Shankar, also stars Shruthi Hassan. (For details log on to : http://www.business-standard.com/india/news/gabbar-singh-onroll-atbox-office/476101/)
HIGH INTEREST RATES, FUEL PRICES HIT CAR SALES IN MAY
NEW DELHI: Passenger vehicle sales in the domestic market continued to remain weak in May, with major auto manufacturers reporting either a decline or marginal growth in volumes. If the latest figures are anything to go by, low consumer sentiment, high interest rates and rising petrol prices are hitting hard the auto industry in India, which until recently was touted as one of the fastest growing markets globally. Market leader Maruti Suzuki India, which posted growth in sales in the first four months of the year, saw its volumes decline 4.3 per cent to 89,478 units in May. Sales tanked by as much as 29 per cent in the compact car segment on the back of weak demand for Alto, M800, A-Star and WagonR, all petrol variants. The price difference between petrol and diesel is over Rs 32 per litre, which is leading an increasing number of consumers to opt for diesel vehicles. Ford India, the Indian arm of UScar maker Ford Motor Co, said its sales declined by 14 per cent to 6,036 units in May, while volumes at General Motors India fell by 27 per cent to 6,079 units. (For details log on to : http://www.business-standard.com/india/news/high-interest-rates-fuel-prices-hit-car-sales-in-may/476094/)
AUCTION OF 700 MHZ SPECTRUM ONLY IN 2014
NEW DELHI: The Telecom Commission, the highest policy making body of the Department of Telecommunications, has decided to conduct the auction of 700 MHz spectrum at a later date when the environment is fully developed and that of 900 MHz spectrum by May 2013. The renewal of licences with operators holding spectrum in the 900 MHz band is due for renewal from November 2014 onwards, and, hence, the auction of 900 MHz spectrum should be completed by May 2013, which would be 18 months prior to licence expiry, according to the minutes of the Commission meeting that took place last week. The modalities, including reserve price for auction of 700 MHz, will be considered at a future date, which has been indicated as 2014 by the sector regulator. Till that time, DoT will have access to data on an auction-determined price in other bands as well as international trends, the Commission said. For providing data services, 700 MHz or LTE is mainly used. It has also been decided that the auctioneer would be kept for a period of three years to cover the auction of 800/1,800 MHz and 900 MHz which will be completed by May 2013. Besides, the auction of vacation of spectrum by MTNL will also be taken up by DoT. (For details log on to : http://www.business-standard.com/india/news/auction700-mhz-spectrum-only-in-2014/476090/)
HIGHER AD REVENUES DRAW PRINT MEDIA TO HINDI HEARTLAND
MUMBAI: Print media firms are aggressively tapping into the Hindi heartland by either launching greenfieldoperations or acquiring strong independent brands, since the advertising revenues in these markets are growing at 13%, higher than the overall industry growth rate of 8-9%. In the last two years, DB Corp, which publishes the country’s second largest daily Dainik Bhaskar, launched 12 new editions in Madhya Pradesh, Gujarat, Haryana, Punjaband Chhattisgarh. Jagran Prakashan, which publishes the country’s largest selling daily Dainik Jagran, acquired Nai Dunia in April this year, to strengthen its position and take on Dainik Bhaskar and Rajasthan Patrika in MP. Sources say that Living Media or the India Today Group, which recently sold 27.5% stake to the Aditya Birla Group, plans to start a Hindi newspaper under the Aaj Tak brand name. Living Media owns India’s second-most watched Hindi news channel Aaj Tak and plans to leverage the brand’s values in print as well. This news couldn’t be confirmed from the company as mails and messages sent to the CEO and CFO of Living Media didn’t yield any response. (For details log on to: http://www.financialexpress.com/news/higher-ad-revenues-draw-print-media-to-hindi-heartland/956865/)
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