Friendship Day another marketing stunt?
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Credibility: India leads, China, US follow
Washington, July 31 (IANS) Trust in business is recovering significantly in some of the world's largest markets with India and China most positive about business and the US rebounding from 10-year lows, according to a new survey.
The Edelman Trust Barometer found that at 75 percent, India recorded the highest level of trust in business of any of the six countries surveyed. China followed with 60 percent respondents saying they trust business to do what is right.
In the US, 48 percent of respondents trust businesses to do the right thing, up from 36 percent who said that in January, but still below 59 percent at the beginning of 2008. France saw an 11-point jump, from 30 percent to 41 percent
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Govt may acquire RBI's stake in Nabard, NHB by December
The stake transfer from RBI to the government would take place by December 31, official sources said.
In Budget 2009-10, the government earmarked Rs 1,542 crore for acquiring Reserve Bank's holding in the two regulators Nabard and NHB.
For Nabard's stake buy, the Centre made a provision of Rs 1,100 crore and for that of NHB Rs 442 crore was assigned.
At present, the RBI holds about 72.5 per cent stake in Nabard and the remaining lies with the government. While, NHB is wholly-owned by the Reserve Bank.
The total paid-up capital of Nabard currently stands at Rs 2,000 crore, NHB was capitalised at Rs 350 crore when it was set up in 1988.
It was the Narasimhan Committee that recommended the transfer of RBI's stake in State Bank of India, Nabard and NHB to the government to differentiate the central bank's functioning as the owner of banks and the sector regulator.
In 2007, the government acquired 59.73 per cent stake held by RBI in the country's largest bank SBI for Rs 35,531.33 crore.
Sources said the stake transfer is not likely to affect the functioning of rural credit delivery system in the country as the policies in this regard will continue to be shaped by the government in consultation with RBI.
After getting ownership of SBI, NABARD and NHB, the government will also have greater say in the boards of these institutions, besides flexibility to issue directions to meet its credit objectives for the priority sector.
FM's plan could bring Rs 1,52,519 cr to D-street
NEW DELHI: The finance minister Pranab Mukherjee's Budget proposal to deepen markets by bringing promoters' stake in listed companies below 75% may
If the proposal comes through, listed companies could be expected to raise as much as Rs 1,52,519 crore from the capital market, with public sector stalwarts such as bullion
trader MMTC, power generator NTPC and the country's largest iron and steel producer SAIL expected to lead the fray.
A SundayET analysis of BSE 500 companies shows that as many as 57 companies have promoter shareholding above 75% and would be required to offer shares in to the market to comply with the new norms. Of these, 18 are public sector undertakings (PSUs) and 39 firms are in the private sector.
While the numbers of public sector companies may appear to be less than half of the private companies, these companies will nevertheless account for the bulk of the money raised. Of the Rs 1,52, 519 crore that may be raised, about Rs 1,30,961 crore will be accounted for by PSUs.
Among PSUs, MMTC will be required to sell shares worth Rs 36,703 crore (at current prices), while NMDC needs to offload stake worth Rs 34,042 crore. NTPC is 89.5% government-owned and to bring down its promoters holding to below 75%, it will have to sell shares worth Rs 25,562 crore.
According to Anup Bagchi, executive director at ICICI Securities, a large proportion of this disinvestment will be via the follow-on public offer (FPO) route as most of these companies are already listed.
With PSUs largely funded by the taxpayer, the process will have to be democratic and done in such a way as to give good value to shareholders. "The issues are likely to priced reasonably and attractively in order to drive maximum retail participation," Mr Bagchi said.
Meanwhile, the effort to comply with the new norms will mean private firms will need to sell shares worth Rs 21,558 crore based on their current market prices. Reliance Power is likely to be the largest fundraiser among private players with a total promoter holding of 84.78%.
The 9.78% promoter holding that it will be required to offload is worth around Rs 3,982 crore at current prices.
Govt to make short work of SEZ nods 29 Jul 2009, 0534 hrs IST, Amiti Sen, ET Bureau | |||
Govt to make short work of SEZ nods 29 Jul 2009, 0534 hrs IST, Amiti Sen, ET Bureau
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NEW DELHI: Setting up ancillary services such as effluent treatment plants and Wi-Max facilities inside a notified special economic zone (SEZ) may The proposal, mooted by the commerce department, is up for review by the SEZ Board of Approval (BoA), a panel comprising officials from various government ministries that gives permission to such tax-free industrial zones. A department official pointed out that approaching BoA, which is bogged down with loads of such applications from across the country, is a time-consuming process that slows down the implementation of these projects. “It increases the BoA’s work load too,” the official said asking not to be named. Currently, activities inside the notified area for building roads, water supply lines and treatment plants, setting up electricity, gas and PNG distribution networks, boundary walls and telecom and other communication facilities don’t need BoA nod. The latest proposal seeks to include rail-heads for steel and power, police posts, security offices, fire stations, fire protection systems, play zones, bus bays, effluent treatment plants and pipelines and Wi-Fi , Wi-Max services in that list, said the official. “The reason it takes several months for SEZ projects to get implemented after being approved is because the developer has to approach the BoA for every step,” the official added. To cut the work load, the government is also looking at setting up a sub-committee of the BoA to look at approval applications for authorised activities in zones. Both proposals will be taken up at the BoA meeting slated for August 11. “If a sub-committee is formed to share the workload with the BoA, it will definitely help in expediting all clearances,” the official said. The BoA includes senior officials from key ministries such as commerce, finance and home, its meetings are spaced out. The frequency of meetings is determined more by the number of new proposals that are to be cleared rather than the authorised activities to be given a go-ahead. Of course, next month’s meeting will approve fresh SEZ proposals. The last BOA held on 19 June had approved two fresh proposals, ratified extension of time to 23 developers, including Satyam Computer Services , for implementing tax-free enclaves. Till date, 576 formal approvals have been granted for setting up of SEZs, of which 319 have been notified, as per commerce ministry records. | |||||||
The committee will also include local members of Parliament (MPs) and members of Legislative Assembly (MLAs) for effective implementation of the scheme, minister of state for power Bharatsinh Solanki told Rajya Sabha in a written reply.
The RGGVY proposes to electrify 118,146 villages by the end of Eleventh Plan (2007-12). This is an integral part of government’s initiative to provide power to all by 2012. But, by June 2009, only 62,527 villages could be covered under the scheme and 55,619 villages are still living in dark.
“Chief Ministers have also been requested for expeditious implementation of the scheme and the chief secretaries of states have been asked to resolve state level issues by holding state level co-ordination Committee meetings,” Mr Solanki said.
He said that for speedier and effective implementation of projects, execution has been taken up on turnkey basis. In addition, the minister said that grant amount of BPL (below the poverty line) connection has also been enhanced to Rs 2,200 from Rs 1,500 earlier.
The government has approved a capital subsidy of Rs 28,000 crore for execution of RGGVY in Eleventh Plan. An amount of Rs 14,952.96 crore have been disbursed for the sanctioned projects under the scheme as on June 30, 2009.
In addition, the government along with the Rural Electrification Corporation (REC), conduct frequent review meetings with all the stakeholders; the concerned state governments, state power utilities and implementing agencies for expeditious implementation of the scheme on the agreed schedules.
To ensure qualitative execution of rural electrification works, a three tier quality control mechanism has been enforced under RGGVY. To take care of the cost escalation, cost norms for village electrification have been revised upward.
Not all gas!
But even by those standards, Tuesday's statement by Anil Ambani virtually accusing the government of batting for elder brother Mukesh turned the spotlight on the former for an altogether novel reason. It is, perhaps, for the first time in recent history that any industrialist has dared to openly speak out against the government and in no uncertain terms. The charge, 'apparently biased and partisan role of the petroleum ministry', is as unambiguous as it can get.
With this, the younger Ambani has taken the battle to an altogether new level. Few corporates dare to speak out openly against the government. The days of licence-permit raj may long be over - corporates no longer have to go cool their heels in dusty corridors - but government still matters a great deal. Why shoot yourself in the foot taking on the government, is the general refrain of street-smart corporates who know which side their bread is buttered.
Even in the post-reform environment where government's role is much-diminished, the reality is you can't expect to get very far if you fall foul of the government. We may not be Thailand with its lese majeste laws, where any criticism of the King, however softly couched, can land you in jail for up to 15 years. But corporates shy away from anything that can be seen as remotely confrontationist vis-à-vis government.
Not convinced? Take a straw poll of the post-Budget comments of corporate chiefs and industry chambers or their reactions to other mega policy announcements. What's the tally: those in praise (dripping saccharine might be a better description!) vs those who against and you have your answer.
In the instant case government may squirm at the allegations, the veracity of which is yet to be proved. But rather than taking it as an affront, it should look on the brighter side: as an opportunity to clear the air and also show the world we are no tin-pot democracy nor are we like Russia where corporates question the authorities only at their peril. Dissenters can air their views and without fear.
FIIs to keep market buoyant; rally on bourses likely: Analysts
MUMBAI: Continuing the bull run, Dalal Street is likely to touch fresh highs this week, primarily fueled by higher funds flow from Foreign
"The market will remain strong this week on the back of foreign money coming in from institutional investors. The rally would continue in the market and some more highs would be breached," Ashika Stock Brokers Research Head Paras Bothra said.
Marketmen said with better-than-expected June quarter earnings by corporate houses, confidence is back in the market and risk appetite has increased.
"Market has crossed the resistance levels and the corporate earnings figure were good. Flow of money would keep the market buoyant," Unicon Financial Chief Executive G Nagpal said.
Analysts say a rally is on the anvil for the large cap stocks, besides banking, metal and oil & gas sector, as they have underperformed in the last week.
"Weakening dollar will drive money into the market, which will pull FII investment. Results have been good for India Inc and large cap stocks would now do better," SMC Global Vice President Rajesh Jain said.
July witnessed inflows worth Rs 11,066.30 crore ($2.28 billion) in the Indian stock market and the stock market rose over eight per cent. Besides, the total FII investment so far this year has crossed USD seven billion.
The Bombay Stock Exchange benchmark Sensex recorded gains for the third straight week ending on Friday and surged about two per cent to close at 15,670.31 points, at nearly 13-month high level.
However, analysts caution that a correction might come in as the US markets are already overbought.
"The week might see some consolidation coming in as markets have rallied quite a lot. Bits of correction in the middle of the week cannot be ruled out," Bonanza Portfolio Assistant Vice President Avinash Gupta said.
The National Stock Exchange's Nifty index ended with a gain of 68 points at 4,636.45 points on Friday.
"Alongside FIIs, domestic institutions are also participating in the rally. With good Q1 figures, flow of money is back in the system," Nagpal said.
On Friday, the US markets were mixed with the Dow Jones Industrial Average gaining 17.15 points to 9,171.61 and the Standard & Poor's 500 Index rising 0.07 per cent to 987.48 points. While the tech heavy Nasdaq was down 5.80 points to 1,978.50.
"The US markets have extended the rally and it is highly overbought. Investors should trade with caution as there might be some correction on the anvil," Jain noted.
Top-10 firms add Rs 41,000 cr in a month; ONGC leads pack
PSU major ONGC added Rs 23,934 crore to its valuation taking its total market cap to Rs 2,49,071 crore at the end of trade in the just ended month.
The top-10 coveted club, which comprises six public and four private sector firms, together added Rs 41,131 crore during the month, taking their total valuation to Rs 16,27,549 crore for the month ended July.
The total market cap of these top gainers stood at Rs 15,86,418.25 crore on July 1.
The country's most valued firm, Reliance Industries saw erosion of Rs 15,768 crore in its market cap in the last one month, after which it stood at Rs 3,08,022 crore.
Two PSUs NTPC added Rs 16,491 crore to its market cap while MMTC lost Rs 12,167 crore from their valuation.
At the end of the month, market cap of NTPC stood at Rs 1,77,772 crore and MMTC at Rs 1,48,877 crore.
Private telecom services provider Bharti Airtel lost Rs 315 crore from its market cap, while National Mining Development Corporation (NMDC) added Rs 159 crore to its market valuation.
The market cap of Airtel stood at Rs 1,55,879 crore and that of NMDC at Rs 1,42,392 crore.
Infosys Technologies jumped to seventh position from the ninth, after adding Rs 15,355 crore to its market cap, taking its total market valuation to Rs 1,18,274 crore.
Despite the total valuation of State Bank of India and Bharat Heavy Electricals Ltd (BHEL) rising as much as Rs 2,705 crore, the two companies saw their respective ranking fall.
The market valuation of SBI stood at Rs 1,15,167 crore and BHEL at Rs 1,09,066 crore.
Software service provider Tata Consultancy Services (TCS) entered into the list of top-10 firms replacing engineering major Larsen & Toubro Limited (L&T).
Meanwhile, during the week the top-10 firms added Rs 14,394 crore to their market cap taking its total market valuation to Rs 16,27,549 crore for the week ended July 31.
The firms had total market cap of Rs 16,13,155 crore for the week ended July 24.
In the club of top-10 firms, RIL is followed by ONGC (Rs 2,49,071.41 crore), NTPC (Rs 1,77,772.12 crore), MMTC (Rs 1,48,876.5 crore), Bharti Airtel (Rs 1,55,879.27 crore), NMDC (Rs 1,42,392.2 crore), Infosys (Rs 1,18,273.85 crore), SBI (Rs 1,15,167.23 crore), BHEL (Rs 1,09,067.5 crore) and TCS ( Rs 1,03,027.01 crore).
Trio led by Indian arrested in 80 million pounds scam in UK
The mastermind of the scheme Chelsea-based Indian entrepreneur Nandan Pruthi and his business partners Kenneth Peacock and John Anderson were arrested after a series of raids conducted by the London police in the city, the Observer newspaper reported today.
The Financial Services Authority has frozen assets of Pruthi. Sports cars, jewellery and 250,000 pound in cash are among assets police and the FSA have managed to recover from Pruthi and his colleagues, though their value is less than two million pound.
There has been some speculation that money may have been salted away in Dubai, the Cayman islands or Thailand.
Former England cricketer Darren Gough, Rising Damp actress Francis de la Tour and singer Jerome Flynn are among the victims of the scam. A 1960s pop singer, as yet unnamed, is also among the victims while cricketer Kevin Pietersen has confirmed that he was approached by the suspected fraudsters but he decided not to hand over any of his money.
Several people are pursuing civil claims against Pruthi for the return of their money. Pruthi has filed a defence claiming he has instructed his bank to make payments to investors but they have been blocked by the freezing order.
LONDON: After an year-long negotiations, Tata Motors edged closer to signing a financial aid package with the British government for its struggling The agreement could now be reached as early as this week, The Observer claimed. Tata wants the government to underwrite a 170 million pounds commercial loan to secure the short-term survival of Jaguar Land Rover but baulked at the conditions the government originally set. Executives from Tata and Jaguar Land Rover met officials from Lord Peter Mandelson's business department on Friday to discuss the agreement. Tata's advisors are still going through each clause but no substantive areas of disagreement remain, the report said. The British government had originally demanded representation on the board of Jaguar Land Rover and a veto on redundancies in return for loan guarantees. These conditions are now off the table, it said. | |
Apple warns iPhones vulnerable; fixes bug
Apple said on Friday that customers need to download the patch onto their computer using iTunes, then install it on their iPhone by connecting the device to the computer.
While Apple has issued the patch, the flaw remains a problem until millions of iPhone users upgrade their software. In the meantime, criminal hackers may try to exploit the flaw to commit cybercrimes.
News of the flaw surfaced on Thursday when researchers Charlie Miller and Collin Mulliner discussed the vulnerability at the Black Hat conference in Las Vegas, one of the world's most prominent security conventions. They found the bug while looking for vulnerabilities in the SMS communications system, which mobile devices use to send and receive text messages along with software upgrades.
"There's a real urgency for people to update their iPhones because of this wave of publicity. The race is on between those fixing the vulnerability and attackers seeking to exploit the issue," said Joris Evers, a spokesman for No. 2 security software maker McAfee Inc.
Miller and Mulliner showed the audience at Black Hat how to break into iPhones by sending computer code via the phone's SMS system. They said that the phone's users cannot detect that it is receiving the malicious code.
They warned Apple of the flaw on July 18. The two said they decided to go public with their discovery in a bid to warn iPhone users of the potential risk and also pressure Apple to come up with a quick fix.
About 4,000 security professionals were in attendance at Black Hat, including some who are really hackers. While experts ferret out software flaws to fix them and protect users, hackers use the same information to devise pranks or commit crimes.
It is not illegal to disclose ways to hack into computer systems, though it is against the law to use it to break into them.
Apple sold 5.2 million iPhones in its most recent quarter. The smartphone is its most important growth driver.
Shares of Cupertino, California-based Apple rose 0.6 percent to $163.75 on Nasdaq late Friday afternoon.
The total valuation of Indian stocks trading on American bourses rose by over $8 billion last month, with IT firm Infosys alone
For the month ended July 31, Indian entities listed on the New York Stock Exchange and Nasdaq added $8.28 billion to their total market capitalisation. Infosys alone gained $3.58 billion, with its market cap at $24.66 billion.
Software firm Mahindra Satyam's valuation
rose by $1.30 billion, while that of private sector lender ICICI Bank added $1.03 billion to its market cap.
Among the 16 companies trading as American Depository Receipts (ADRs), only three companies, including private sector lender HDFC Bank, have witnessed a total decline of $835 million in their market capitalisation.
HDFC Bank's valuation declined the maximum during the month and stood at $13.86 billion after it witnessed a value erosion of $760 million.
The market capitalisation of telecom firm MTNL and pharma company Dr Reddy's Laboratories fell by $41 million and $34 million, respectively.
The month of July saw a host of Indian companies reporting better-than-expected quarterly figures, which analysts believe pulled up the shares on the street.
Besides, Tata Motors' valuation shot up by $914 million to $4.75 billion after it posted better-than-expected quarterly results last week.
The net profit of the auto maker rose 57 per cent to Rs 514 crore in the first quarter of the current fiscal.
The valuation of IT major Wipro ascended by $644 million and copper producer Sterlite Industries gained $574 million.
Outsourcing firm Genpact saw its valuation increase by $487 million and IT firm Patni Computer's market capitalisation jumped by $275 million in the month.
BPO firm WNS Holdings and telecom major Tata Communications Ltd (TCL) too saw an upward movement in their market capitalisation. WNS Holdings' valuation went up by $160 million and TCL added USD 102 million.
Besides, internet majors, Sify Technologies and Reddif.com, BPO firm EXLService increased in the range of $7 million to $28 million.
The US markets were mixed on Friday with the Dow Jones Industrial Average gaining 17.15 points to 9,171.61 and S&P 500 rising 0.07 per cent to 987.48, while tech heavy Nasdaq was down 0.29 per cent to 1,978.50.
Her government may have faced the tantrums of TC chief Mamata Banerjee but Congress President Sonia Gandhi is clear on giving a long rope to Mamata Banerjee’s party in Bengal.
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The owner of the call centre, Rohit Masiha, who acquired 24 connections allegedly using fake addresses, is still on the run, police said.
Four officials were suspended, while engineer B K S Senger, who was holding the post of SDO in the state-run telecom service provider, was suspended as soon as the fraud came into light on July 25, BSNL General Manager A K Bajpai told PTI, adding that the vigilance officers are also investigating the matter.
An FIR was registered against Masiha at Nazirabad police station for using fake addresses and not clearing the bill of Rs 95 lakh.
Masiha had closed down his Vertix Global Call Centre in this industrial city before fleeing, SP (Crime) O P Singh said adding connivance of some senior BSNL officials was suspected in the entire episode.
Preliminary investigations showed the calls were made to various Gulf countries besides Canada, Australia and Italy through landlines and mobile phones, Singh said.
Police were also trying to ascertain whether the calls were made to any suspected terror group or outfit, he said.
Sensex companies score big in Q1; 3 out of 4 see surge in profit
India Inc is back to profitable ways, with every three out of four blue-chip companies reporting a surge in bottom line for the June
Analysis of the net profit of the top 30 Sensex firms in the April-June quarter shows that their bottom line rose, on average, 36 per cent over the year-ago period, after three quarters of weak earnings.
The global economic gloom notwithstanding, the Bombay Stock Exchange
Sensex firms together saw their top line climb an average of eight per cent in the June quarter.
"Earnings for corporate India remain meaningfully ahead well into the current reporting season ... average earnings growth is mid-teens, and a good 5-10 per cent ahead of our expectations, across various aggregates," Citigroup said in its India Equity Strategy report.
Companies that have reported a significant surge in June quarter profit include Jaiprakash Associates (292 per cent), Mahindra & Mahindra (152 per cent), Tata Power (144 per cent), Hero Honda (83 per cent), and cement firm ACC Ltd (79 per cent).
Analysts say that even as the margins of the companies are improving, sales are poor as there is slack in demand. (MORE) PTI JD ub
Meanwhile, sectoral performance at the broader level was more or less in line with anticipations, although street expectations have not necessarily been high.
"The sector leaders have been banks, IT services, and telecom. Materials and consumer and capital goods have been in line with diversified financials the laggards," Citigroup noted.
Promoters encash mkt rally, offload Rs 11k cr in Apr-June
Economic Times reports:
The stock market
rally triggered by the results of General Elections 2009 saw a slew of promoters across industry segments offload their
According to a SundayET analysis, promoters of 214 companies including DLF, Suzlon Energy, Kotak Mahindra Bank
, Dish TV India, Yes Bank, Mahindra & Mahindra, Reliance Communications and Wipro sold shares worth Rs 11,294 crore between April-June 2009. Of these, around 18 founders sold shares worth more than Rs 50 crore each. And as many as in 77 companies, promoters offloaded stakes worth Rs 1 crore each.
Uttam Prakash Agarwal, president of Institute of Chartered Accountants of India said that selling stake by promoters is a serious matter, specially when promoters’ holding is already low. “Securities and Exchange Board of India should look into the matter. Our role is confined to governing the members, and we will not be able to comment on this.”
Waqar Naqvi, CEO of Taurus Asset Management Company said investors should not worry too much if the stakes offloaded are low. Most of these went towards servicing personal debt or raising cash for daily operations, said Assem Dhru, MD & CEO of HDFC Securities, who pointed out that promoter holdings are extremely high in India.
The phenomena of funding by pledging promoter holding always existed here. And recently, Sebi has made it mandatory for promoters to disclose such pledging of shares, he said. “On a standalone basis, I don’t think investors should take any decision on selling of shares by promoters but should see other parameters such as overall debt of the company,” he said.
India’s biggest real estate firm DLF sold more than 16 crore shares during the last quarter, which is estimated at current values at Rs 6,755 crore. As a result, promoter holding in the company came down from 88.55% to 78.65% as on June 30, 2009. DLF raised the fund to pay off its debt, as the global financial slowdown dried up demand for its apartments while a credit squeeze raised the cost of funds.
Suzlon Energy, one of the world’s biggest makers of wind energy equipment, was the second largest seller of shares in terms of value. They sold shares worth of Rs 893 crore, bringing down promoter holding by around 6 %, to 59.82%.
DR Dogra, deputy MD at CARE Rating, said selling of stakes by promoters is a serious matter though the effect of this on the ratings would depend on the quantum of stake that promoters have. If the promoter has larger holdings and they sell a smaller fraction of their holding it may not be a major issue. But if the promoter holding is low and they are still selling their stake then it’s a serious matter and it may impact the rating of the company adversely, he said.
Among others, Kotak Mahindra Bank sold shares worth around Rs 833 crore in the last quarter. This brought the promoters’ holding down marginally by 3.92 % to 48.47% as on June 30. The holding of the promoters of Kotak Mahindra Bank had also declined marginally by end March as compared to their holding by the end of December 2008. SundayET has found that promoters of these companies sold their stakes at different price points but for the analysis all the shares were valued, based on the closing share price on July 30.
Obama says many months before US exits recession!
The Reserve Bank of India would celebrate its platinum jubilee in 2009 and 2010 through outreach programmes.
Regional Director of RBI (Eastern Region) F R Joseph said that the apex bank had chalked out programmes on a month-wise basis.
As a part of this, RBI would hold meetings with bankers and trade associations like FICCI, CII and Assocham, he told reporters in Kolkata on Friday night.
RBI would also organise financial literacy campaign in places like Pelling in Sikkim. RBI started functioning since April 1935 in accordance with provisions of the Reserve Bank of India Act of that year.
In his statement, Deora would inform the house about the decision of an Empowered Group of Ministers (EGoM) on Anil Ambani group firm RNRL's claim of first right over 28 million standard cubic meters per day of gas from RIL and the policy about fuel supply to future power projects. The statement is understood to have been vetted at a meeting called by Finance Minister Pranab Mukherjee on Friday evening that was also attended by Moily, government counsel Mohan Parasaran and top officials of the ministries of petroleum and law.
Moily had hit out at Anil Ambani on Friday night, saying it was "uncharitable" on part of some people to have accused Deora of siding with RIL. The SP members, led by their President Mulayam Singh Yadav, had demanded Deora's resignation, while accusing the Centre of stalling the 7,800-megawatt power plant, about 50 km from the national capital. Emerging from the meeting, Moily had said that the government was fully backing the Petroleum Ministry in its plea to the Supreme Court seeking delinking of natural gas from the family agreement that split the Dhirubhai Ambani empire between brothers Mukesh and Anil. Moily said the government was the rightful owner of the natural resource found in Krishna Godavari basin and was vested with rights under the Production Sharing Contract (PSC) to frame gas pricing and utilisation policies. "We are not interested in any family settlement. All we want is that the property that belongs to the people of this country should be de-linked," Moily had said. "And whatever is needed to protect our (Government) interest, we will do."
The meeting, second in the last week, was held not to discuss ways to "dilute government's plea in Supreme Court. On the contrary, we are looking how can be make a stronger case before the Supreme Court." "Government has a bigger interest at stake as its policy of equitable growth (has been challenged by the family MoU dividing the gas between the two bothers). We have to protect every inch of the government interest," he said, adding the government's role in pricing of gas and its utilisation was clearly spelt out and there is no ambiguity on the issue. "There is absolutely no confusion with regard to the right of the government to fix price of the gas and its utilisation... we are not going to go shy away from this responsibility. We will fully protect the Government interest," he said.
PSUs pay higher dividends than their pvt sector peers
Economic Times reports:
Call it a stimulus package for equity investors. Government companies in India have outperformed their private sector peers in doling out
dividends during the recent phase of economic turmoil.
The average dividend yield of PSUs stood at 2.01% in FY09, whereas private companies showed an average dividend yield of merely 1.73%, according to a SundayET analysis. The government, which is the largest shareholder of the PSUs, in turn became the major beneficiary of the dividend dole-out. Dividend yield shows what percentage of the share price a company gives to its shareholder in the form of dividend.
Led by banks such as Bank of Maharashtra and Vijaya Bank which had a dividend yield of over 5% in FY09, other high dividend paying PSUs included Shipping Corporation of India and GAIL (India) both of which yielded a dividend of over 3%. Two other PSU banks - Indian Bank and Allahabad Bank - also had dividend yield of over 4%.
According to data compiled by SMC Capitals, PSUs paid a dividend of Rs 23,238 cr in FY09 in comparison to Rs 21,803 cr during the previous year, witnessing a growth of over 6%. Significantly, the government got a major share of the benefits as their share has also gone up by over 5.5% or Rs 930 cr to Rs 17,316 cr during FY09. Higher dividend is mainly due to increase in dividend payout ratio, which has gone up from 23.76% during FY08 to around 25% in FY09.
According to Jaydeep Malkan, co-founder of Market Trend Analysis, the first focus of the PSUs is their shareholders hence they pay higher dividends, whereas private companies are more concerned about the future growth. Also, PSUs gave higher return during the last year in terms of market appreciation.
The analysis, however, includes only BSE 500 companies and is based on the data provided by Eastwind Capital Advisors, a firm involved in the benchmarking and quantitative research advisory solutions to institutional investors. Out of these 500 companies, 43 companies were PSUs, whereas, the rest 457 were private companies. But out of 43 PSUs, 39 of them paid dividend during FY08 and FY09. In case of private companies, out of 457 private sector companies only 328 companies paid dividend during FY08, although the number of dividend paying private companies increased marginally to 344 during FY09.
Highest dividend paying private companies are Madras Cements, Sesa Goa, Monsanto India and SRF. Their dividend yield is over 10%. While some of the private companies have higher dividend yield, a majority of them are either non-dividend payers or dividend yield is much lesser.
However, overall dividend yield was relatively higher during the FY08 than that of FY09. During the FY08, the dividend yield of PSUs was 2.61%, while it was only 1.96% in case of private companies.
The BCCI said it has no problem with players being tested as part of the WADA Code but it fully shares their concerns on the 'Whereabouts Clause', which requires them to furnish information about their location three months in advance for out of competition tests. The decision to back its players was taken at an emergency meeting of the Working Committee which deliberated at length on the issue. Captain Mahendra Singh Dhoni, Yuvraj Singh and Harbhajan Singh were present in the meeting. "We are agreeing with the dope testing code, we are only objecting to the system. The issue is out of competition testing. Our players are ready to be tested but they say they are not in a position to give their whereabouts. We back the players on this," BCCI President Shashank Manohar told reporters here after the meeting. "You cannot invade the privacy of individuals. I don't know what the ICC will do. The implications of this decision would be decided after we write to the ICC. Today, it would be jumping the gun," he added.
The BCCI gave three reasons for not agreeing to the clause, saying it was unreasonable, violated the Indian constitution and was an invasion of the players' privacy. "The players have security cover and they cannot disclose their whereabouts with a security cover. Secondly, the privacy of an individual cannot be invaded and thirdly, our constitution gives a guarantee regarding an individual's privacy. You cannot invade on somebody's privacy 24 hours a day for 365 days," Manohar said.
The BCCI's tough stand has put the ICC in a quandary since cricketers of most other Test playing nations have agreed to sign the code. It effectively signals a fresh tussle between the BCCI and the game's governing body, which have been at loggerheads on a number of occasions in recent past. Asked the options ICC might have in the wake of BCCI's refusal to sign the code, Manohar said it was not necessary to adhere to the code. "WADA is a private agency engaged by the ICC. Tomorrow the ICC may say we don't want you. We can have our own dope testing mechanism," Manohar said.
The BCCI said though the code has been in discussion since 2006, the mechanism for testing was never deliberated upon in any of the ICC meetings. "The issue came up in 2006 when it was discussed and everybody agreed that there should not be any doping in cricket. Cricket should be WADA compliant. But the system of testing was never discussed at ICC," Manohar revealed. BCCI secretary N Srinivasan, who was also present at the meeting, also emphasised that the players were not trying to evade dope tests but were only concerned about their privacy. "Indian players have never objected to dope test even out of competition. We have told the ICC that if you want a player to be tested out of competition, you tell us the name and we will produce him but the whereabouts clause of 24-hour availability is a problem," he said.
The ICC, on its part, said it was aware of the Indian players' concerns on the matter and it was confident that a solution can be worked out. "The ICC is grateful to the BCCI for its time. We are aware of the issues and the concerns but we are confident they can be sorted out. We are looking for a practical solution. The next step is the matter to be taken to the ICC Board," ICC's Media and Communications Manager Brian Murgatroyd said. The BCCI President had telephonic discussion with Sachin Tendulkar and Virender Sehwag on the clause before the Working Committee meeting.
While most international sportspersons have signed the clause, Indian cricketers are not isolated either as football's governing FIFA is also not a signatory to the code. FIFA is still negotiating with WADA to review the contentious clause and the BCCI may cite this while seeking a review from the ICC. The ICC had asked all its affiliated members to get their players sign the World Anti-Doping Agency's Code by July 31 but the BCCI was faced with the reluctance of 11 of its chosen cricketers, including two women, to comply with the code.
The cricketers are uncomfortable with the "Whereabouts" clause which makes it necessary for them to give details about their availability for one hour every day (between 6 am and 11 pm) for random out-of-competition testing by WADA officials. WADA said these are powerful deterrents and means of detecting doping by athletes. This specific rule is also part of the WADA's revised
International Standard for Testing (IST) that came into effect along with the revised Anti-Doping Code on January 1 this year.
The revised IST was approved by WADA's Executive Committee, composed in equal parts of representatives from governments and sport, on May 10 last year. The 11 Indian cricketers who are part of the country's testing pool are Tendulkar, Dhoni, Virender Sehwag, Gautam Gambhir, Yuvraj Singh, Irfan Pathan, Munaf Patel, Zaheer Khan, Harbhajan Singh, Jhulan Goswami and Mithali Raj.
New WPI series to have ’04-05 as base year: FM
“The WPI price data collection completely excludes the service sector and the receipt of input on weekly prices in manufactured products is very low,” Mr Mukherjee said, responding to a question on the government’s price monitoring strategy.
The move, which will also change in the base year of the wholesale price index (WPI) series from 1993-94 to 2004-05, is aimed at tracking changes in price level accurately. Economists say India’s annual inflation figures, based on WPI, do not reflect the consumption pattern of the country’s household.
In India, the weekly WPI is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products. The government has plans to draw up a producers price index by modifying the present WPI, but work on that has been delayed due to problems in data collection.
“In the absence of legal backing for a dedicated data collection system, the data is received on a voluntary basis from ministries and attached offices, commodity boards, oil companies, individual industrial units, leading manufacturers, business houses, chambers of commerce and trade associations,” Mr Mukherjee said.
He added data collection for the consumer price index (urban) has started, but did not give a time frame for its completion. The National Statistical Commission had in 2001 recommended that the Central Statistical Organisation compile a single national consumer price index by computing the CPI (Urban) and CPI (Rural) separately and then combining them together into an all-India index in line with global practice to improve accuracy and help policy makers in tracking price movements.
“The WPI will now become more representative of today’s reality. I believe it will come along with the revision in commodities and weights,” rating agency Crisil Principal Economist DK Joshi said.
NEW DELHI: Autonomous regulatory body Competition Commission of India (CCI) may question a recent finance ministry directive asking government
officials to fly only by Air India, a step taken as part of a larger effort to rescue the company which is in a deep financial crisis.
CCI member R Prasad told SundayET that the ministry's decision demonstrated an anti-competition behaviour.
"The commission is considering whether to send a letter to the finance ministry in this regard," he said.
The finance ministry's order which was later extended for availing Leave Travel Concession (LTC) by government employees, was a big relief to the government-owned carrier which lost Rs 5,000 cr during the last financial year. The move may help Air India earn Rs 1,000 cr annually, mainly at the cost of the private airlines.
Mr Prasad said the CCI would send a "letter" and "not a show cause notice" to the finance ministry.
He said that the CCI is mandated to question the government according to the definition of enterprise under section 2 (h) of the Competition Act. The enterprise in the Act means both a person or a department of the government. The government, however, reserves the right to supersede the Commission's order.
The CCI, which has already been investigating two cases including one related to the recent multiplex-distributors dispute, may soon pick up three more cases to investigate, and even question the ministry of commerce on anti-dumping duties which are considered to be anti-competition, said another CCI official.
Though the government created CCI as an autonomous regulatory body to promote and sustain competition in the market and protect interests of consumers, only two sections, Sec 3 and 4 of the Competition Act concerning cartelisation and abuse of dominant position have been notified so far. India Inc has been pressurising the government not to notify those sections of the Competition Act which make it mandatory for the companies to seek prior approval of CCI on matters related to mergers and acquisitions (M&A).
CCI member R Prasad told SundayET that the ministry's decision demonstrated an anti-competition behaviour.
"The commission is considering whether to send a letter to the finance ministry in this regard," he said.
The finance ministry's order which was later extended for availing Leave Travel Concession (LTC) by government employees, was a big relief to the government-owned carrier which lost Rs 5,000 cr during the last financial year. The move may help Air India earn Rs 1,000 cr annually, mainly at the cost of the private airlines.
Mr Prasad said the CCI would send a "letter" and "not a show cause notice" to the finance ministry.
He said that the CCI is mandated to question the government according to the definition of enterprise under section 2 (h) of the Competition Act. The enterprise in the Act means both a person or a department of the government. The government, however, reserves the right to supersede the Commission's order.
The CCI, which has already been investigating two cases including one related to the recent multiplex-distributors dispute, may soon pick up three more cases to investigate, and even question the ministry of commerce on anti-dumping duties which are considered to be anti-competition, said another CCI official.
Though the government created CCI as an autonomous regulatory body to promote and sustain competition in the market and protect interests of consumers, only two sections, Sec 3 and 4 of the Competition Act concerning cartelisation and abuse of dominant position have been notified so far. India Inc has been pressurising the government not to notify those sections of the Competition Act which make it mandatory for the companies to seek prior approval of CCI on matters related to mergers and acquisitions (M&A).
Friendship Day another marketing stunt?
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A school girl selects a friendship ring in a shop ahead of Friendship Day in Ahmedabad. Friendship Day celebrations take place on the first Sunday of August every year. The tradition of dedicating a day in honour of friends began in US in 1935. Gradually the festival gained popularity and today Friendship Day is celebrated in large number of countries including India.
New Delhi: All around the world, on every first Sunday of August, friends meet and exchange gifts, flowers, cards and wrist bands to celebrate Friendship Day. But some believe it's just another marketing gimmick.
"There is no one day for friendship. Like Valentine's Day it is hyped by marketing people to sell their products. The same thing happens with Friendship Day as well," software professional Varun Arora told IANS.
"Do you think we really need days to celebrate our love or friendship? All this is completely ridiculous," he added.
Media professional Biswadip Mitra shares the same sentiments. He said: "Friendship Day may be a nice way to remember your friends. But in reality a friend will always be around. "Personally, I don't need to tell him or her that you are on my mind. My affection will always be there and my friends will know it all the time."
Mitra also feels that human emotions and bonding cannot be measured by gifts. "I think these days there are mostly artificial impositions on our minds. Basically human emotions and bonding cannot be measured by time or cards or flowers."
Credibility: India leads, China, US follow
Washington, July 31 (IANS) Trust in business is recovering significantly in some of the world's largest markets with India and China most positive about business and the US rebounding from 10-year lows, according to a new survey.
The Edelman Trust Barometer found that at 75 percent, India recorded the highest level of trust in business of any of the six countries surveyed. China followed with 60 percent respondents saying they trust business to do what is right.
In the US, 48 percent of respondents trust businesses to do the right thing, up from 36 percent who said that in January, but still below 59 percent at the beginning of 2008. France saw an 11-point jump, from 30 percent to 41 percent
Trust in government is also on the ascent, with a 13-point jump in India from 42 percent to 55 percent and a 12-point increase in the US from 30 percent to 42 percent.
'Trust in business is on the way back, but we're still in the middle of the game,' said Richard Edelman, president and chief executive of Edelman, a public relations company.
In India and China, 'The private sector is perceived as enabling an economic growth that has led to healthier living standards. The survey numbers reflect a high degree of national pride in the accomplishments of business,' said Alan VanderMolen, president, Asia Pacific, Edelman.
In India and China, 81 percent and 96 percent of respondents respectively, say their country is headed in the right direction, compared with 47 percent of Americans and Germans, 37 percent of British, and 31 percent of French.
In another marked contrast to the West, nearly seven out of 10 respondents in India and China rate the reputation of large multinational corporations as good or excellent, compared with 30 percent of Americans, 29 percent of Germans, 24 percent of French, and 13 percent of British.
In India and China, banks are the No. 2 most trusted industry. In the US, trust in every industry experienced double-digit growth, except technology, which was already high but climbed another eight points, from 72 percent to 80 percent.
The survey, conducted from May 26 through July 3, was based on telephone surveys of 1,675 adults aged 25 to 64 in six countries. Respondents were screened to be college educated, have a household income in the top quartile for their country and to follow the news.
Sensex may target 17,000 this month
Mumbai: A renewed buying interest at the start of the August series, coupled with short-covering owing to July futures & options expiry, boosted the markets towards the end of the week.
Earlier in the week, the markets had exhibited a lacklustre movement. The Sensex, after moving in a narrow range on the first two days of the week, tumbled to a low of 14,888 on Wednesday. The index, thereafter, recovered smartly and rallied to a new calendar year high of 15,733 — up 844 points from the week’s low.
The BSE benchmark index finally ended the week with a gain of 291 points at 15,670. In the process, the index has surged over 14 per cent (2,166 points) in the last three consecutive weeks.
Among the index stocks, Tata Motors zoomed nearly 13 per cent to Rs 422, while Tata Power soared 11 per cent to Rs 1,302. TCS, ITC, Hindalco, Wipro, SBI, Tata Steel and HDFC rallied 5-9 per cent each. On the other hand, Hero Honda shed nearly 8 per cent to Rs 1,606. Sun Pharma, Grasim and Reliance were down 3-6 per cent each.
Tata Motors to deliver 60,000 Nano by July 2010
New Delhi: Country's largest auto maker Tata Motors will deliver up to 60,000 units of the Nano, which is touted as the world's cheapest car, by July next year while remaining committed to handing over the first one lakh cars by 2010 once its mother plant in Sanand goes on stream.
As expected, the Sensex revisited its June high, and ended on a firm note. The markets look a bit tired at current levels. Hence, some profit-taking can be expected before the next up move.
However, the overall trend remains bullish, with 14,100-14,500 as base for the month of August. On the upside, the index is likely to target the 17,000-mark during the month. This week, the index may face resistance around 16,000-16,200. On the downside, the index is likely to find support around 15,350-15,150.
Source: Business Standard
Reliance Infra's order-book set to cross Rs 50,000 cr mark
Mumbai: Anil Dhirubhai Ambani Group-led Reliance Infrastructure Ltd's order-book position is all set to cross the Rs 50,000 crore mark, a top company official said.
This includes EPC, ownership and preferred bidders projects, the official said.
"Our EPC business order-book position stands at Rs 20,075 crore and the company is developing 11 projects aggregating over Rs 13,500 crore of transmission, road and metro rail projects. We are the preferred bidder in four projects of over Rs 20,000 crore in roads, metro rail, sea link and airport sectors," Reliance Infrastructure's CEO and Whole-time Director, Lalit Jalan, said.
Under its EPC division, the company is working on six major projects and implementing over 7,000 MW of power projects, Jalan said.
Among the mega-power projects, the company is setting up 1,200 MW of power projects in Hisar, Haryana, 500 MW Parichha Thermal Power Station in Uttar Pradesh and 1,200 MW Raghunathpur Thermal Power Station in West Bengal.
It is also setting up the 3,960 MW Sasan Ultra Mega Power Project in Madhya Pradesh and 300 MW Butibori Power Project in Maharashtra, Jalan said.
The company has also bagged the Mumbai Metro II project last week.
"The Mumbai Metropolitan Regional Development Authority (MMRDA) has awarded the contract of Mumbai Metro II project to us, for which we are setting up a separate SPV. We have given a project cost of Rs 11,000 crore to MMRDA," Jalan said.
The company is also the preferred bidder in four projects of over Rs 20,000 crore in roads, metro rail, sea link and airport sectors, Jalan said.
Reliance Infrastructure has also emerged a preferred bidder for the Rs 5,100 crore Western Freeway Sea Link project.
The company shall takeover the six-kilometre long Bandra-Worli Sea Link and construct a further 5.5 kilometre long extension over sea between Worli and Haji Ali in south Mumbai. The firm will have total tolling rights for the entire stretch of 11.5 kilometre of the Sea Link with a concession period of 40 years, Jalan said.
The company has also emerged the highest bidder to develop, operate and manage all five brownfield regional airports at Nanded, Latur, Yavatmal, Baramati and Osmanabad in Maharashtra for a 95 year lease period.
"When awarded, these projects will take Reliance Infra's total infrastructure ownership book at Rs 35,000 crore in the next five-year period," Jalan said.
ONGC to begin drilling off Kochi today
Kochi: ONGC CMD R. S. Sharma will formally announce the drilling at Kochi on a pilot basis Sunday. He and senior directors of the company, including D.K. Pande, will arrive here Sunday and inspect the KKC4-A well. This, experts say, will be a major leap for oil and gas exploration in the country. Sources said the basin might be an abundant source of oil and natural gas that might change the economy of south Indian states, particularly Kerala.
ONGC started exploration in the region around two years ago. It was in December 2008 that presence of hydrocarbons in the area became clear and the corporation started serious discovery efforts.
In the first stage, ONGC engaged a rig that could drill up to 1,000 metres. But as the basin had rocks below the sea, a more powerful rig was needed. The company engaged a rig from Reliance that could drill up to 6,000 metres. It is now positioned around 120 nautical miles off the Kochi coast. There is widespread belief that the Kochi basin is an abundant source of natural gas and oil. Assam Oil had explored the area in the 1940s and detected gas. But after Independence, the area was discarded.
Presence of carbon and other chemicals in the basin is now confirmed.
Source: Business Standard
IIT Kanpur develops nanosatellite; to be launched by ISRO
New Delhi: Taking a big leap in its technological quest, IIT Kanpur has developed a nanosatellite which is expected to provide real-time data on drought, flood, vegetation and forestation.
The satellite, designed and developed by a group of students of the institute, will be handed over to ISRO, which is expected to launch it by the end of the year.
"This satellite will have specific function of sending imagery on ground conditions. We will set up a tracking station in our institute where we will get the real-time data on drought, flood, vegetation and forestation," IIT Kanpur Director Prof S. G. Dhande told PTI.
The satellite, costing Rs 2.5 crore, has been developed by a team of students led by Santanu Agrawal, an M Phil student.
The nanosatellite, which will be named 'Jugnu', will have a mass of less than 10 kg. It will piggyback on larger launches, avoiding the need for a dedicated launch.
"There will be no dedicated launch of this satellite. These kinds of satellites are launched from the belly of large satellites," Dhande said.
These nanosatellites have hardly any relation with nanotechnology. The nanosats, as they are called, are appealing because their small size makes them affordable and opens up potential for a swarm of satellites.
IIT Kanpur embarked on this innovative venture after the ISRO started accepting satellites developed by other countries and universities.
"We took it as a challenge. We thought why should not we develop a satellite and give it to ISRO. Then 20 students got inspired by the idea and started its designing and fabrication," Dhande said.
This satellite is not geosynchronous and will have low earth orbit. The data can be accessed when the satellite will be visible from the tracking station, Dhande said.
This initiative is part of the institute's Golden Jubilee celebration starting this month. The celebration will continue till December next year.
Dhande said nanosatellites are the new-age satellites prepared for specific purposes. While larger satellites weigh about one tonne, these smaller varieties weigh less than 10 kg and have smaller electronic components.
As of now, there is limited research in the area of nanosats. The space companies and institutes mainly focus their research on larger ones.
Bike sales grow 24% in July
New Delhi: On the back of 14 per cent growth in sales in the first quarter of financial year 2009-10, two-wheeler makers have reported 24 per cent growth in sales in July. The segment comprises motorcycles and scooters. The growth is a result of low base as annual sales growth last year was a mere 3 per cent.
Hero Honda, the country’s largest motorcycle maker, posted 30 per cent rise in sales as compared with the same month last year. The manufacturer of bestselling 100-cc brands like Passion and Splendor sold 366,808 motorcycles as against 281,317 in the corresponding period last year.
The company’s urban-rural market mix is roughly 60:40.
Piyush Parag, an analyst at Religare Securities, says the growth for Hero Honda has come basically from good volumes generated by its 100-cc brands. “Rural markets continue to contribute to the company’s total sales, which is a result of the strong distribution network.”
In the second half of the year, Parag expected sales to dip since the company had gained market share rapidly last year, when the entire market shrunk. Hero Honda’s market share stands at 59 per cent.
July sales for Chennai-based TVS Motor grew 5 per cent to 107,883 units as against 102,530 units in July 2008. Exports dipped about 19 per cent to 13,061 units.
India Yamaha Motorcycles sales grew 47 per cent to 17,316 units. The rise comes from good demand for the company’s high-performance motorcycles belonging to the FZ and YZF series.
Suzuki Motorcycle’s sales grew 20 per cent last month. It sold 12,585 units of motorcycles and scooters. The company says the demand for its 150-cc motorcycle, the GS 150 R, has been robust.
Honda Motorcycles and Scooters India Ltd (HMSI) sold 112,855 units both in export and domestic markets. This number also includes exports of CKDs (completely knocked-down kits.)
Source: Business Standard
A third option while shopping helps
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Agencies
Posted: Dec 15, 2008 at 1306 hrs IST
Washington A stop in a shop! But, can't decide which one to buy: The brown blazer or the black jacket? Fret not, for a new study has finally come up with a solution – consider a third option, a red sweater, for instance.
A team, led by an Indian-origin researcher Akshay Rao of University of Minnesota, has shown that decision making is simplified when a consumer actually considers a third, less attractive option.
"In some ways, it is quite straightforward. When a consumer is faced with a choice, the presence of a relatively unattractive option improves the choice share of the most similar, better item," said Rao.
Researchers have based their findings on an analysis of the brains of a group of shoppers who volunteered for the study, the 'ScienceDaily' reported.
The volunteers had their brains scanned while they made choices between several sets of equally appealing options as well as choice sets that included a third, somewhat less attractive option.
Overall, the presence of the extra, "just okay" possibility systematically increased preference for the better options.
The fMRI scans showed that when making a choice between only two, equally preferred options; subjects tended to display irritation because of the difficulty of the choice process. The presence of the third option made the choice process easier and relatively more pleasurable.
"The technical evidence for our conclusion is quite clear, based on the imaging data. When considering three options, our 'buyers' displayed a decrease in activation of the amygdala, an area of the brain associated with negative emotions.
"Seemingly, subjects were using simple heuristics – short-cuts or decision rules – rather than a more complex evaluation process, when they were evaluating three-item choice sets," Rao said.
The study is to appear in an upcoming issue of the 'Journal of Marketing Research'.
Mumbai Director Imtiaz Ali's much awaited 'Love Aaj Kal', marking the debut of national-award winning actor Saif Ali Khan as a producer, released worldwide to huge expectations.
With this, the 'Omkara' star has joined the Khan bandwagon--Shah Rukh and Aamir, who are established producers.
'Love..' is a story eulogising the importance of heart over head theme for a commitment phobic, where Saif plays two diverse characters, featuring Deepika Padukone as the female protagonist.
The actor essays the characters of 'Jai' representing today's alpha male, and 'Veer', the younger version of Rishi Kapoor, a shy but sure lover, set in the 50s; and in both the phases, he listens and follows his heart to win the lady love in different circumstances.
While some critics dubbed the Imtiaz Ali's latest as cliched, others said good locales and foot-tapping numbers may help it to pick up with word-of-the-mouth publicity.
'Expectations are high especially after 'Jab We Met' and comparisons between both the films were evident,' said another film critic.
An additional highlight of the film is a cameo by yesteryear actress Neetu Singh opposite her real life husband Rishi Kapoor.
Akash, a college student, who caught the first show, went ga-ga over the OSO girl Deepika Padukone. "A few more such classy performances and she would be in the top league," he said.
However, Shashi Sharma, a bank manager in his mid 40s, did not find the film to be so riveting but found Deepika impressive.
Senior journalist Ajay Brahmatmaj, felt that the Imtiaz used the flashback sequences in a very innovative manner.
On Deepika's performance he said," the character required a lot of maturity. Especially in the sequence depicting her longing for Saif and dilema to choose between love and marriage could have been handled in a better way."
"Saif has handled to different characters ably showing his versatality." As usual, Rishi Kapoor was very likeable even in a small role, he added.
The movie also had its share of controversies with the All India Punjabi Cultural and Heritage Board objecting to two scenes in a Gurudwara and the trimmed beard of Saif's Sikh character in the film.
However, Saif has given a written apology to the board, its president Charan Singh Sapra said.
Government not to bailout private airlines
"The government understands the difficulties being faced by aviation sector. However, the government does not support any move that will inconvenience the travelling public of the country," Patel said in a statement.
"We advise the airlines to engage in a dialogue with the government," he said, while warning that the Directorate General of Civil Aviation, the sector's regulator, will be asked to take strict action if the airlines did not withdraw their threat.
The civil aviation minister said state-run Air India, which is not a member of the federation, will mount additional services Aug 18 so to reduce the inconvenience of passengers. It is not known if Paramount Airways will join its private sector peers in the strike.
"The issue of tax on aviation turbine fuel is a state issue and the aviation ministry has been requesting the states for the past few years to see reason," he said, referring to one of the demands of private carriers for a cut in jet fuel prices.
Apart from a cut in sales tax on fuel, the private carriers have asked the government to direct oil retailers to sell aviation jet fuel cheaper and reduce the airport charges which they say have ballooned ever since private players were allowed into the field.
Painting a desperate picture of their situation, industry lobby body Federation of Indian Airlines (FIA) said unless the government helps them by lowering taxes on jet fuel and bringing down airport charges, their survival is in doubt.
But the strike threat by Jet Airways, Kingfisher Airlines, SpiceJet, IndiGo and GoAir, which between them carry about one lakh passengers daily, was interpreted as a pressure tactic by a senior official in the civil aviation ministry.
Jet Airways, Kingfisher, SpiceJet and IndiGo are yet to pay Rs 212 crore to the Airports Authority of India for using its infrastructure. Kingfisher, Jet and SpiceJet also owe Rs 1,726 crore to oil marketing companies.
The private airlines’ high-pitched demand has been timed to coincide with discussions that may result in the government bailing out beleaguered national carrier Air India soon, said an aviation analyst who did not wish to be identified.
The government last week asked the finance and petroleum ministries to help Air India. It has appointed SBI Caps as advisor to chalk out a revival plan for the ailing national carrier, which suffered losses of Rs 7,200 crore last year.
Passengers who have booked tickets to fly on that date will get a refund.
FIA wants the government to classify jet fuel as a ‘declared good’ to tax it at a uniform 4% rate throughout India. Jet fuel accounts for nearly half of operating costs for airlines in the country, the highest in Asia.
Swaminomics: The Pope's moral blunders on outsourcing
This criticism has an unfortunate ethnic slant. The Pope echoes the wish of a white labour aristocracy in the West to snatch jobs and income away from much poorer but more competitive workers in Third World countries. That is repugnant in both economic and moral terms.
The western argument cannot quite be called racist. Politicians and workers in the West are not all white, some are black or brown. Yet, the ethnic implications of the western protest against outsourcing cannot be ignored. The protest rarely focuses on outsourcing to white countries like Poland, Latvia or Bulgaria. It focuses overwhelmingly on outsourcing to black, brown and yellow nations.
This is mainly on economic grounds, wages are lower in Asia than in Eastern Europe, and so, the scope for outsourcing is far greater. Yet, the ethnic implications cannot be ignored. The mainly white labour aristocracy of the West is clamouring to get companies to shut down jobs and production in countries with black, brown and yellow workers.
This means impoverishing poor workers to subsidize the labour aristocracy. Instead of being ashamed of trying to rob the poor of jobs, the labour aristocracy talks in high moral tones, as though it has a God-given right to jobs that have actually gone entirely on merit to the Third World.
For most of history, China and India were the richest countries in the world, with the most advanced technologies and best jobs. The Industrial Revolution changed that, the best jobs moved to the West, and millions of Indian textile workers were rendered unemployed by British mills. The western labour aristocracy never complained of that shift of the best jobs from the East to the West, but cannot countenance a shift in the opposite direction.
One valid western objection, on both economic and moral grounds, relates to the use (mainly by China) of prison labour, forced labour and child labour to produce cheap goods for export. Such exports have largely been checked, and now constitute a negligible part of outsourcing. This objection does not apply at all to India’s burgeoning exports of software or BPO, or to the shift of 80,000 IBM jobs or 35,000 Accenture jobs to India.
China has become the world’s biggest supplier of manufactured goods, while India has become a major exporter of computer software, back-office services and R&D . This has transformed the economies of the two most populous countries in the world, made them the fastestgrowing in the world, and helped hundreds of millions of poor people to rise out of poverty.
You might think that the Pope would hail this as a great development for humanity. Instead, he has parroted the bogus claims of the white labour aristocracy. His encyclical says, “the so-called outsourcing of production can weaken the company’s sense of responsibility towards the stakeholders, namely the workers, the suppliers, the consumers, the natural environment, and broader society, in favour of the shareholders, who are not tied to a specific geographical area and who, therefore, enjoy extraordinary mobility.”
The racial implications of this leave me dumbstruck. The Pope has posed the issue as one of stakeholders versus shareholders. But are white stakeholders the only ones that matter? When IBM shifts 80,000 jobs to India, 80,000 Indian stakeholders replace American ones.
Are the rights of 80,000 Indian stakeholders any less than those of the Americans they replace? When Chinese suppliers outbid American ones in supplying hardware to IBM, are the Chinese lesser stakeholders than the Americans they replace?
The Pope is simply wrong in posing outsourcing as a conflict between shareholders and stakeholders. Outsourcing merely globalizes stakeholders across the world instead of leaving them within narrow national walls. And as a believer in one world, the Pope should be encouraging this spread of stakeholders across all humanity.
Shareholders are getting globalised no less than workers, suppliers or consumers. Many shareholders of Citibank and IBM come from the West Asia, China or Japan. Are they not stakeholders on par with American ones? There is no moral imperative at all for Japanese or Arab shareholders of IBM to try and shift jobs from the Third World to the US. Yet, US politicians and trade unions talk as though morality lies in US jobs alone.
In truth, it is a perversion of morality to penalize non-American workers and shareholders just to promote US jobs. Hopefully, Pope Benedict will have the courage to say so in his next encyclical.
MCX-SX hopeful of launching futures trading on interest rates 1 Aug 2009, 2239 hrs IST, ET Bureau | |||
The joint committee, drawing representatives from Reserve Bank of India, Securities
This was indicated by MCX-SX executive director U Venkataraman while conducting an awareness programme on interest rate futures here on Saturday.
Though there is consensus on the broad parameters of the trading, issues like delivery schedule, settlement mechanism and optimum number of tradable securities are now being discussed at the joint committee level. To bring about an efficient settlement mechanism, options are being weighed on how to bring about a seamless interlinkage among the existing depositories - National Securities Depository Ltd (NSDL) and Central Depository Services Ltd (CDSL) - and public debt offices of the RBI for physical delivery of deliverable grade securities, he said
Once that trading is launched, it would enable interested parties to hedge their position against interest rate fluctuations in government securities and corporate bonds on short and long term basis, besides offering scope for doing arbitrage on the derivative product.
With the Centre planning to borrow heavily from the domestic market in order to bridge the fiscal gap, more and more government securities are expected to be floated in the coming years. This is expected to spur liquidity in the domestic debt market and thus volume trading in interest rate futures, said Mr Venkataraman.
Total turnover in GoI dated securities increased from Rs. 1,770,980 crore in 2006-07 to Rs. 2,957,070 crore in 2007-08, yet the trading volume in the debt market remains low in comparison to the developed markets. Banks, insurance companies, primary dealers and provident funds bear a major portion of the interest rate risk on account of their exposure to government securities. With a large stock of household financial savings on the assets side and an increasing quantum of housing loans on the liabilities side, interest rate risk is becoming increasingly important for the household sector as well.
So far, 18 government securities with a maturity period of 71/2 to 15 years have been identified to be tradable on the basis of the delivery-based futures contracts. The technical advisory committee in its report has recommend to consider 10-year government security as the reference rate, with a notional coupon rate of 7%.
Anticipating an imminent launch, MCX-SX has started conducting road shows and workshops to spread awareness about trading in interest rate futures among market participants. About a week back, it has launched mock trading on this derivative product on its platform and is ready with the necessary software and technology for this trading. From next week, it will start training programmes, targeting specific interest groups.
50% infrastructure projects running behind schedule 2 Aug 2009, 0926 hrs IST, Mahendra Kumar Singh, TNN | |||
The ministry of statistics and programme implementation , which monitors the progress of infrastructure projects, has pointed out that 423 of 925 projects, each costing Rs 20 crore or more, have failed to meet the deadline.
The cost overrun, according to a ministry report, in these 423 delayed projects is Rs 38,663.67 crore, which is 15.35% of their original cost of Rs 2,46,070 crore. What is failing India’s effort to improve infrastructure is the delay in execution of crucial projects mostly in the power and roads sectors which is also one of the main reasons for the cost overrun.
“The projects in these two crucial sectors are failing to meet the deadline. As many as 60% of projects in power sector and about 40% in road sector are behind schedule,” a senior official pointed out. A government official attributed the delay in many cases to failure of the project implementation agencies or companies to acquire land in time to start the project which results in cost escalation.
Among the states, Maharashtra tops the list with the maximum number of 37 projects running behind schedule. It is followed by Assam (36), UP (32) and Andhra Pradesh (31). In J&K, where 13 projects are delayed, the cost escalation is even more than the original cost of the projects, Rs 10,000 crore for projects worth Rs 8,132 crore.
In Maharashtra, cost of 37 projects monitored has increased by around Rs 5,200 crore from initial estimated cost of Rs 28,420 crore. Second on defaulting list is Assam with 36 projects failing to meet the deadline resulting in cost escalation of Rs 7,100 crore. Assam is followed by UP with 32 delayed projects (original cost of Rs 7,353 crore) and Andhra Pradesh with 31 projects (original cost Rs 14,367 crore and cost overrun of Rs 5,000 crore).
WORK IN SLOW PROGRESS
Nearly 50% of infrastructure projects are behind schedule. Ministry of statistics & programme implementation data shows 423 of 925 projects, each costing Rs 20cr or more, are delayed.
Majority of projects are in the power and roads sectors due to problems in land acquisition.
Around 60% projects in the power sector and 40% in the road sector running behind schedule.
Cost overrun in 423 delayed projects is Rs 38,663.67cr, which is 17% of the original cost of Rs 246,070 cr.
Maharashtra tops the list of delayed projects followed by Assam and UP.
In Maharashtra, the cost of 37 delayed projects has increased by around Rs 5,200cr from estimated cost of Rs 28,420 cr.
In J&K, where 13 projects are monitored, the cost escalation is even more than the original cost, around Rs 10,000 cr for projects worth Rs 8,132 cr.
In Assam, 36 projects are delayed with cost escalation of Rs 7,100 cr.
“We are going to award Rs 1,00,000 crore of projects this year and Rs 1,00,000 crore next year,” Mr Nath said at a seminar organised by industry chamber Ficci.
National Highways Authority of India (NHAI), the apex highway development agency of the country, has already initiated bidding process for road projects worth Rs 50,000 crore in 2009-10, he said. The government has set a target of building 7,000 km of highways annually. At present, only about 1,500 km of highways are constructed in a year.
About 150 highway projects are already running behind schedule due to various reasons such as cost escalation, delay in land acquisition and poor performance of contractors.
In order to avoid delay in execution of road projects on account of land acquisition, the NHAI is setting up 150 special land acquisition units (SLUs) and 10 regional offices across the country. As per a recent survey, slow progress in land acquisition delayed 70% of the 190 infrastructure projects being implemented by various agencies.
In order to make highway projects more investor-friendly, the government is looking at ways to make rules flexible. It has already restructured the cost of various road projects by factoring in increased input cost.
Private developers have demanded relaxation in termination clause of the model concession agreement (MCA) and variability of concession period to make projects more viable.
The NHAI is implementing road projects under various phases on national highway development programme (NHDP). Meanwhile, India Infrastructure Finance Company (IIFCL) has sanctioned loans worth Rs 6,475 crore for 58 road projects with a total project cost of Rs 37,678 crore.
IIFCL sanctions Rs 6,475 cr for 58 road projects
"This is the largest sanction of loans to road projects by any financial institution in the country within a short span of three years," Kohli said at a FICCI convention here.
He said out of the total amount of Rs 18,714 crore sanctioned by IIFCL so far, the sanctions for the road sector accounted for 35 per cent.
"Of the sanctioned projects, in 54 cases financial closure has been achieved where IIFCL has been allocated loans of Rs 4,130 crore. The company has disbursed Rs 2,420 crore so far in 51 road projects," Kohli said.
IIFCL will provide re-finance at 7.85 per cent with the provision that banks should not charge more than 2.5 per cent interest from developers for highways and port projects where re-finance is available at 10.35 percent.
As part of the first fiscal stimulus package announced by the government, the company was allowed to raise Rs 10,000 crore by way of tax free bonds by March 2009. The funds raised by the company are being utilised for providing re-finance to banks for loans to infrastructure projects.
Toyota launches variant of Camry, the New Camry in India
The New Camry is dearly priced in the range of Rs 21.26-23.40 lakh and would be available in four grades, officials of Toyota's Indian unit, Toyota Kirloskar Motor (TKM), told a news conference here.
The launch was seen as Toyota's attempt to revitalise sales of this model in the face of tough competition by rival SkodaAuto. The sales of the existing Camry (the earlier version) declined by more than 75 per cent in the April-June quarter, selling only 44 units compared to 182 a year ago.
The New Camry sports new design exterior, is available in colours of dark green mica metallic and beige mica metallic. Its other features include plasmacluster A/C with minus ion generator, intelligent rain sensing wipers and moonroof, company officials said.
"Camry is not a volume product", TKM Deputy Managing Director Sandeep Singh, said. It's more of a brand and a "showcasing of technologies" by Toyota.
TKM's Managing Director Hiroshi Nakagawa said the Toyota Camry has already defined the concept of a premium car in India and the New Camry "will offer an exclusive blend of modern styling and luxurious features".
In a country where most small cars are priced in the Rs 3-5 lakh bracket, the Jazz is being sold for around Rs 7-7.5 lakh, which pushes it into the category of full-blown sedans. So will Honda be able to decipher the price code? Jnaneswar Sen, VP (marketing), Honda Siel Cars India (HSCI), feels that it will. “We presently have a customer base of 3.5 lakh people. About 70% of these customers are multiple car owners and to begin with, we are targeting these customers for the Jazz,” he says. Till date, HSCI has been able to sell 2,032 units of the Jazz after deliveries started on June 10th, this year. And if Mr Sen has done his homework well, more is on the cards.
According to HSCI, for each of the Honda models the repeat purchase is very high. Sample this: 42% of Jazz buyers have owned a Honda car previously. 30% of City customers are old Honda customers. Then 50% of the Civic customers are also old Honda customers. Also 61% of the Accord customers are old Honda customers too.
But there is a catch. Competition is closing in fast. Hyundai recently launched two new variants of the i20, its premium hatchback — a 1.4 litre CRDi and a 1.4 litre petrol automatic transmission. Priced in the range Rs 6.19-7.2 lakh the base version of the diesel i20 is almost Rs 60,000 cheaper than the cheapest Jazz. And it’s a diesel too. According to Arvind Saxena, Sr VP, marketing and sales at Hyundai Motor India, the Korean carmaker is planning to sell 4000 units of the i20 here shortly. “We have already sold 13,000 units in the domestic market in the last six months,” he said.
Then a senior official from General Motors also explained the rationale behind launching the highly expensive SRV here. “We never thought that the SRV would become a volume player. No manufacturer can sell a lot of hatchbacks at that price, especially in India. Our experience shows that it’s a niche segment which can only be used to showcase your range, that’s all,” he said.
But then Honda is also planning to launch its “small car” here after three years. The sketches on the design board are already in place, according to HSCI officials. Can the Jazz help prop up things for HSCI’s original volume player? The next three months will tell.
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Among its players, Kingfisher Airlines has, arguably, been the worst hit. On July 31, a worried Vijay Mallya, chairman, Kingfisher Airlines, told the media, “We are being taxed to death.” Bad news for the traveller too since all the private airlines in India have now decided not to touch the skies on August 18. The demand is this – support from the government by way of a reduction in taxes and opening up the sector to foreign direct investment (FDI) which is expected to bring in some much-needed money.
Crisis time
Life has not been easy for Kingfisher for a while now. It had a reverse merger with Deccan Aviation in 2007 which was expected to make it a larger and more competitive player. Sadly, in the time to follow, the company has just faced tougher times.
For the year ended, March 2009, the loss figure read an unenviable Rs 1609 crore, taking the accumulated losses past Rs 2500 crore. The first quarter results have not been any better, with the company being in the red to the extent of Rs 324 crore. Added to this, there is a debt of Rs 6,000 crore on the company’s balance sheet on a market capitalisation of Rs 1380 crore. By any stretch of imagination, the figures make for worrying reading.
At a macro level, industry trackers point out that the airline industry has been hit by a number of factors. While some pertain to regulation, others are on the operating front. Sales tax on fuel is high with landing fee and parking fee too looking unaffordable. “Landing at Singapore’s Changi airport or Hong Kong airport is cheaper when compared to Coimbatore”, says a concerned Ravi Nedungadi, Director, Kingfisher Airlines.
That’s not all. There is a limit on route flexibility on account of archaic regulations. Kingfisher is upset that it has to operate 300 flights a week to the North-East and J&K when there are often just a handful of passengers in the aircraft. In one sense, the symptoms were felt last year. The terrorist attacks of 26/11 in Mumbai took place during the peak travel season and hit the airline industry hard. Soon, the rupee strengthened against the dollar ensuring the arithmetic of the business went awry.
69 US banks go belly up in 2009, 24 fail in July
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