The Bombay Stock Exchange benchmark Sensex today ended past the 20K mark, gaining 338 points as buying support gathered momentum following the government's decision to allow trusts to invest in securities. The BSE barometer ended the day at 20,192.52, a net rise of 338.40 points or 1.70 per cent over Monday's close of 19,854.12. Reliance Industries, State Bank of India, L&T, Tata Steel, Reliance Energy and BHEL were among the major gainers. The broader S&P CNX Nifty of the National Stock Exchange also gained 85.65 points or 1.43 per cent to close at 6,070.75 from the previous close of 5,985.10 points. The government's decision to amend the Indian Trusts Act to enable trusts to invest in securities, including shares and bonds of listed companies, is expected to further boost the stock market, analysts observed.
Operators and Foreign Institutional Investors (FIIs) were engaged in short covering as well as rolling over positions to January series of derivatives as the current contract expires on December 27, market players said.The market sentiment was aided by a firm trend in Asian markets while European markets were closed for Christmas. The market-wide roll over was impressive in keeping with the trend in last four months, which have witnessed nearly 75 to 80 per cent rollover, they added.
Oil and gas, realty, PSU, metal, power, capital goods and bank shares attracted heavy buying interest. The mid-cap and small-cap shares were also in demand and scored sharp gains. As a result, their indices rose 2.5 per cent and 3.0 per cent respectively at close.
Source:- http://www.headlinesindia.com/business/index.jsp?news_code=66877
Thursday, December 27, 2007
Sensex up by 338 pts as buying gathers momentum
Jaipur Jewellery Show 2007 adds sparkle in Pink City
Jaipur, a major tourist destination in Rajasthan, is also a prime processing centre for coloured gemstone. Recently, it attracted jewellery aficionados from across the country during the 5th edition of famed Jaipur Jewellery Show(JJS). The biggest jewellery show of its kind in north-India, the four-day event exhibited a unique collection of gems, jewellery and diamonds. Organised to popularise emerald in the domestic as well as international markets, it started with a fashion show at Rajmahal Palace on last Saturday (December 22).
"The main aim is to promote colour stone jewellery, to bring out attraction for colour stone jewellery in common people and the promotion of the trade. We have tried to make the people aware of the various gems and about the specialty of every gem, through this show,” said Navratan Kothari, the organiser of the show.
“In this way, the consumption will increase and people will like it. It has been successful and response has been increasing every year,” Kothari added.
Organiser of the JJS noted that the effort was aimed to bring buyers, sellers, designers, manufacturers and traders under a common roof for trade promotion. According to the manufacturers and traders, the industry of gems and jewellery is witnessing fast changes as Indian buyers are becoming more design conscious.
Over the past couple of years, the preferential trends among the buyers have been white jewellery as compared to gold, which they used to purchase as an investment. And, it is said that shows like JJS play a vital role in displaying and exhibiting latest innovative styles and products.
"A big market for jewellery is developing especially in India. People are very much attracted towards diamond and colour stone jewellery. The trend of yellow gold is becoming outdated and the diamond jewellery, which was worn by exclusive people earlier, now can be bought by an ordinary man," said Virendra, an exporter.
The exclusive jewellery show was visited by various jewellery traders and admirers in big numbers from across the country. The theme of the 2007 edition of JJS was the eternal sparkling green coloured 'Emeralds'.
The 300 stalls lent the Jaipur Jewellery Show an exclusive touch displaying both plain and studded jewellery in a variety of metals and styles, as well as loose, coloured gemstones and diamonds, for which the region is known for.
Source:- http://www.headlinesindia.com/business/index.jsp?news_code=66884
Reliance Communications criticises spectrum allocation
Anil Ambani-promoted Reliance Communications (RCOM) on Wednesday lambasted the department of telecommunications (DoT) for its decision to follow the regulator's method for allotting spectrum or airwaves to operators. "DoT succumbs to private GSM operators' pressure tactics. Concessions to GSM operators are unnecessary and unwarranted," said Gaurav Wahi, spokesman of RCOM, in a statement.
RCOM had agreed to the allocation method envisaged by the Telecom Engineering Centre (TEC), DoT's technical arm, which was stricter than the recommendations given by the Telecom Regulatory Authority of India (TRAI).
"The committee set up by DoT, while recommending TRAI norms as an interim measure, has also opined that TEC numbers will substantially increase further if all the technology enhancements are taken into account," RCOM said.
"Private dominant GSM operators have already cornered excess spectrum of more than 50 MHz across circles. This concession is in the wrong direction," the statement added.
This comes after the DoT decided to accept TRAI's method of subscriber linked criteria and in multiples of 1 MHz to operators for which the former will be soon filing an affidavit in the telecom tribunal and also in Delhi High Court.
It is assumed that DoT's allocation of additional spectrum in 1 MHz tranch will unnecessarily put new entrants at disadvantage vis-à-vis incumbents as all incumbent private GSM operators have received allocation of spectrum in the past in tranches of 1.8 MHz or more.
The GSM operators were all this while getting additional spectrum in the multiples of 2.4 to 2.8 MHz. Thus reducing it to 1 MHz means additional investment.
Source:- http://www.headlinesindia.com/business/index.jsp?news_code=66897
Tuesday, December 11, 2007
FM admits UPA government's failure on two fronts
Finance Minister P Chidambaram on Sunday admitted that the performance of the United Progressive Alliance(UPA) government at the Centre was below expectation in two areas-one its inability so far to push forward further reforms in the financial sector, especially in banking, insurance and pensions, and second was its failure to improve the systems for the delivery of social security programs. Expressing the hope that these reforms would take place in the remaining tenure of this government, he said "the Centre has considerably increased the outlays on these programmes, but this has not yet translated into better outcomes." Â
Addressing a luncheon session on 'The Shifting Power Equation,' at the India Economic Summit 2007, organized by the Confederation of Indian Industry (CII) and the World Economic Forum, in the national capital the FM said the rigidity of the bureaucracy remains a hurdle in achieving more inclusive growth. He expressed happiness over the growth of Indian companies, both organically and inorganically, and called for creating a competitive environment to promote entrepreneurial skills in the country. Â
On an optimistic note, the Chidambaram said "India would acquire these advantages through its ability to produce goods and services at a lower cost, nimbleness of its entrepreneurs, the managerial talent, demographic advantage and the drive of its younger generation."He further added, through better policies, good governance and better implementation, "we can reap the benefit of our demographic dividend and not allow it to become a liability. Our water resources can also be managed better." He said India could accelerate the growth process if the stakeholders were willing to experiment with new models of delivering goods and services, instead of depending on old failed models. Â
Speaking on the global forum, Chidmbaram said "India has been playing a responsible and reasonable role. India was committed to keep its per capita emissions below the level of the developed countries." He admitted that India was lagging behind in achieving the millennium development goals but urged the world to help India carry forward its drive towards better health and education.
Source:- http://www.headlinesindia.com/archive_html/03December2007_64794.html
Exports up in Oct, may fall short of target
India's exports rose by a healthy 35.65 per cent in October, but Commerce Secretary G K Pillai on Monday said it may not be enough to meet the USD 160 billion target for the current fiscal. Exports stood at USD 13.30 billion in the month under review that also saw imports rise by 24.27 per cent to USD 20.79 billion, leaving a deficit of over USD 7 billion as against USD 6.92 billion in the year-ago period, as per trade data released. "If this (October) trend continues, we may achieve exports of USD 140-145 billion against the target of USD 160 billion," Pillai said on the sidelines of the India Economic Summit in the national capital.
India revised its export target to USD 160 billion in April after a surge in its currency vis-a-vis the US dollar. The Rupee has risen nearly 14 per cent in the last one year and is now trading at around 39.80 to a Dollar, hurting exports - particularly of textiles and leather.
Exports during April-October rose 20.89 per cent to USD 85.58 billion, while imports were up 25.31 per cent at USD 129.99 billion.
Source:- http://www.headlinesindia.com/archive_html/03December2007_64787.html
State Bank offers instant remittances
The State Bank of India (SBI) on Monday has launched an instant transfer facility that it says is the fastest way for members of the Indian community in Singapore to remit funds back to their homes. The bank said it has a network of nearly 10,000 branches. Remittance services offered by banks, usually take between 15 minutes and a few working days.
The bank said the instant transfer service would appeal to the 375,000 Indian expatriates in the city-state, primarily working in the construction sector. Indian workers remit on average $350 (Rs.13,800) each per month back to India.
Source:- http://www.headlinesindia.com/archive_html/03December2007_64784.html
Indian firms try new way to enter Nepal hydel sector
Repeatedly blocked by Nepal's political parties, Indian companies are now trying a different tack to enter the kingdom's potentially lucrative hydropower sector by forming joint ventures with Nepali counterparts. One of the most high-profile ventures is by Karnataka's GMR Group that despite being approved as the best bidder for two new hydropower projects by a committee was put on hold due to Nepal's unstable political environment. The committee was set up by the Nepal government to assess the contending companies.
Finally, with the parliamentary committee for water resources instructing the government not to award more than one project at a time to any foreign investor, GMR this month entered into an alliance with the Kathmandu-based Himtal Hydropower Pvt Ltd, buying 80 percent stake in the joint venture.
GMR is not the only Indian company to come up with the clever idea. Of the 13 other Indian companies that were also in the fray, like Reliance, others have also caught on. Noida-based Bhilwara Energy Ltd, among the contenders for hydel projects, is forming a joint venture with Nepal's Triveni Group.
Triveni holds the licence for developing the 20-megawatt (MW) Balefi in northern Sindhupalchowk district as well as the 57-MW Likhu-4 between Ramechhap and Okhaldhunga districts. The projects till last year were out of bounds for investors because of the Maoist insurgency. Triveni said that it intended to execute the two projects simultaneously and a survey had already started.
Asked if the joint venture could run into obstruction due to the strong distrust of foreign investors in the hydropower sector shown so far by the major political parties, the group said it did not foresee any problem since the projects would be executed in collaboration with a Nepali partner.
Bhilwara had eyed the much-coveted Upper Karnali hydropower project but did not make it to the shortlist of nine companies selected by the official team headed by former finance secretary Bhanuprasad Acharya. A consultancy that is part of the Bhilwara Group, the Indo-Canadian Consultancy Services, did a feasibility study on four potential projects in Nepal.
According to media reports, India's Everest Energy and Athena Energy are also exploring the feasibility of going into partnership with Nepali companies. Recently, Nepal's government hiked hydropower project licence fees in a bid to discourage non-serious companies who had acquired a licence but were sitting on it without beginning work.
The hike as well as the sizeable investment needed to develop a big hydel project makes it all the more attractive for Nepali firms to tie up with Indian companies.
Source:- http://www.headlinesindia.com/archive_html/03December2007_64764.html
'Sunil Mittal 3rd richest self-made Asian billionaire'
Bharti Airtel's Sunil Mittal has been ranked third in Forbes magazine's 20 self-made Asian billionaires list, which also has five other Indians including Unitech's Ramesh Chandra, Suzlon's Tulsi Tanti, Gautam Adani, G M Rao and Uday Kotak. In the latest list of 20, Sunil Mittal has grabbed the third place with a net worth of 12.5 billion dollars while Ramesh Chandra is at the fifth place with an estimated worth of 11.6 billion dollars. Tulsi Tanti of Suzlon Energy holds the fifth position, while Adani Group's Guatam Adani is ranked 10th, G M Rao of GMR Infrastructure 13th and Uday Kotak of Kotak Group 20th.
The top two positions have been cornered by two billionaires from Hong Kong - Li Ka-shing (23 billion dollars) and Lee Shau Kee (17 billion dollars). Hong Kong is represented by five people, while China and Malaysia have two each.
According to the US business magazine, Sunil Mittal began his first business in 1976 with "1,500 dollars borrowed from his father. Later, co-founded Bharti Group with two brothers. Now, their Bharti Airtel is nation's largest mobile phone operator, with more than 50 million customers." Sixty-eight-year-old Ramesh Chandra studied structural engineering in the UK before moving into real estate business. The publicly-listed Unitech, run by his two sons, is currently expanding into developing theme parks and shopping malls.
Tulsi Tanti and family estimated to be worth 10 billion dollars is described as a former textile trader who turned to alternative energy when rising power costs threatened to put him out of business.
Source:- http://www.headlinesindia.com/archive_html/03December2007_64759.html
PM for return of excess spectrum from mobile firms
Dubbing it as a 'national resource', Prime Minister Manmohan Singh is believed to have favoured return of spectrum from any telecom operator who is found having airwaves in excess of the contractual obligation. A suggestion to this effect is understood to have been given by Singh when Communication Minister A Raja met him on Friday night (November 30). The CDMA operators led by Reliance Communications and GSM service providers led by Bharti Airtel are slugging out in public on the issue of allocation of spectrum to mobile firms.
While no official comment could be obtained on the meeting between Raja and Singh, sources indicated the Prime Minister also disfavoured suggestion of referring the issue of spectrum allocation to an empowered group of ministers as suggested by some of his Cabinet colleagues.
According to DoT sources, top GSM operators have got beyond the contracted obligation of 6.2 MHz of frequency (in some cases the contracted quantity is only 4.4 MHz).In Parliament also, members belonging to various political parties especially Samajwadi Party leader Amar Singh has raised the issue of surrender of surplus spectrum.
While Anil Ambani, in a series of letter to the Prime Minister, accused GSM operators of hoarding spectrum, Bharti Airtel chairman Sunil Mittal refuted this, saying the CDMA operator should put his mathematics in order.The government has also constituted a panel with representatives from the Department of Telecom (DoT) and operators to review the recommendations of Telecom Engineering Centre which had suggested that the subscriber base be increased by 2-15 times to become eligible for additional frequency.
Source:- http://www.headlinesindia.com/archive_html/03December2007_64747.html
'Reduce corporate taxes to attract more investments'
With the Finance Ministry initiating the process of budget preparation, global consultancy KPMG said India will have to reduce its corporate taxes to woo more foreign investors into the country. "By 2010, some sort of softening is expected in the corporate taxes in India as the current level of growth demands a lower tax regime," KPMG's Global Head of Tax Loughlin Hickey told reporters. Hickey said according to a study held by KPMG, among 18 leading economies, India has been ranked third facing pressure from its tax regime.
As per the study, countries are experiencing pressure from various tax functions such as documentation requirements, higher level of accuracy, regulatory compliance requirements and time compression in financial reporting. Hong Kong has topped the list, followed by Canada.
India, which has become a prominent investment destination in the last decade, will have to reduce the corporate tax rates in the next three years, Hickey said. "They (India) want to attract more investors. Obviously, that will happen, only if the taxes are reduced," he said.India has an estimated Rs 3 lakh crore target for 2007-08 and is understood to have registered a 41 per cent jump in the collection of corporate taxes so far in 2007.
In the pre-budget consultation, Industry representatives have reportedly asked government for a cut in corporate taxes to 25 per cent from the current 33.9 per cent.Hickey also said only a lower and simple tax system can bring in better-compliance from tax payers. "If you want to develop more compliance in the tax system, you will have to lower the rates as well as make the process much simpler," Hickey said. This apart, the introduction of tools like PAN has also helped in tax compliance, he said.
Source:- http://www.headlinesindia.com/archive_html/03December2007_64746.html
Jet, Kingfisher, AI hike airfares; others mulling
Private airlines Jet Airways Ltd and Kingfisher Airlines, and state-owned carrier Air India said on Sunday they were increasing airfares by Rs 300 to offset higher fuel prices. The new fares come into effect from December 3. The decision by the carriers came in the wake of a nearly 12 per cent increase in aircraft turbine fuel (ATF) prices by oil marketing companies such as Indian Oil Corp. This latest increase would take the fuel surcharge on a ticket to Rs 1,650.
ATF prices in India are among the highest in the world. They account for nearly 40 per cent of the operating costs of an airline, according to officials. SpiceJet Ltd, Deccan Aviation and Go Air would take a decision on increasing airfares on December 3, according to the airlines' officials.
Source:- http://www.headlinesindia.com/archive_html/02December2007_64706.html
Financial sector reforms lagging behind: FM
Finance Minister P Chidambaram on Sunday expressed concern over the slow progress of financial sector reforms in banking, insurance, pension and capital markets and hoped that some breakthrough might take place in the remaining tenure of the United Progressive Alliance (UPA) Government. "Financial sector reforms are lagging behind. We need to push through financial sector reforms in banking, insurance and pension and unfinished agenda in the capital markets... But I still think that we have 16 months and we might be able to make some progress," Chidambaram said at the India Economic Summit in New Delhi. The UPA Government took over charge in May 2004 and its tenure would end in the first half of 2009.
Pointing out that these reforms are the heart of the economy, he said: " We have not been able to push through the financial sector reforms." Earlier, Chidambaram had asked for political space to carry out financial sector reforms. But continued resistance from the Left parties have seen little breakthrough in banking, insurance and pension reforms.While insurance reforms to hike FDI (Foreign Direct Investment) limit in the sector from the present 26 per cent was referred to a group of ministers, not much headway has been made there.In banking reforms bill also, not much progress has been made and minor portion of the amendment bill on the limit on the Statutory Liquidity Ratio was separately passed since the overall bill was opposed by the Left parties.
In the pension sector, while most state governments and the Centre have agreed to allow their employees to put part of their retirement money under New Pension System in the stock market, a bill to give statutory powers to the pension regulator is pending in Parliament for long.
Source:- http://www.headlinesindia.com/archive_html/02December2007_64701.html
Lakshmi Mittal tops South Africa billionaire list
London-based steel magnate Lakshmi Mittal has topped the South African billionaires' list for the third consecutive year. Mittal's 27.3 billion rand ($4 billion) listing in the annual Rich List, released in Johannesburg by the weekly 'Sunday Times', takes into consideration his South African investments only. The Indian-born businessman has much more interest in steel plants across the world, especially after the recent merger of Mittal Steel and Arcelor. With the emergence of non-whites' economic empowerment in a free South Africa, Mittal, along with many South African non-white entrepreneurs, has ousted the two white families who were top of the list for decades in the apartheid era - the diamond magnate Oppenheimer family and the luxury goods Rupert family. Nicky Oppenheimer was in second place with wealth of 16 billion rand ($2.35 billion) and Patrice Motsepe was third with 13.5 billion rand ($2 billion). Rich List researchers emphasised the figures were based only on publicly available information of investments on the Johannesburg Securities Exchange, and there may be much more by way of property ownership, cash holdings, offshore investments and other investments. They also said it was possible that people outside the identifiable business sector, such as international sportsmen, patent holders and owners of listed companies, were excluded from the list, as it was not possible to identify them or their wealth.
The value of Mittal's 52.02 percent holding in ArcelorMittal SA has almost doubled to 27.36 billion rand ($4 billion). Mittal's' interest in South Africa began several years ago when he turned around the fortunes of the ailing state-owned steel producer Iscor with huge cash injection and a business assistance agreement that saw him net millions. This success just continued to grow amid rising global steel prices.Somewhat ironically, there were recently strong rumours that the South African government was considering options to start a competitor to what has now evolved into ArcelorMittal SA from the original Iscor. Mittal's takeover has not been without controversy, as the Competitions Commission recently slapped the local subsidiary with a fine of almost 700 million rand ($103 million) after local customers claimed that the company was fixing its prices unfairly.
The only South African Indian in the 100 Richest List is former Minister of Environmental Affairs, Mohammed Valli Moosa, who came in at 71st position with his combined holding of 316 million rand ($42 million) in transport giant Imperial Holdings, insurance giant Sanlam, and leisure group Sun International.
Source:- http://www.headlinesindia.com/archive_html/02December2007_64698.html
Antidumping duty sought on imported ceramic tiles
The Indian Council of Ceramic Tiles and Sanitaryware (ICCTS) has sought antidumping duty on import of glazed wall and floor tiles to protect domestic manufacturers from losing market share and incurring heavy losses. ICCTS chairman Nancy Shah said late on Saturday in New Delhi that the government should levy anti-dumping duty on glazed wall and floor tiles, imported largely from China and the United Arab Emirates, as it did in the case of imported vitrified tiles in 2003. "Though antidumping duty on imported vitrified tiles brought relief to local manufacturers, import of ceramic wall and floor tiles in large quantities has led to prices crashing and profit margins of domestic manufacturers eroding," Shah said.
"The dumping is affecting local players who have invested heavily in setting up production plants with huge capacities," she pointed out. The domestic market of glazed wall and floor tiles is estimated to be about Rs 50 billion annually. With large quantities of these tiles, valued at Rs5 billion, being imported into India from China and the Gulf countries during the last 2-3 years, local manufacturers and dealers have been forced to lower prices by 15-20 per cent to survive."We have presented our case to the Union Commerce and Finance Ministries and sought immediate relief, as further delay in imposing antidumping levy will drive many domestic manufacturers out of business in the face of surging imports," Shah said. The demand for glazed wall and floor tiles has shot up by about 30-40 per cent during the last three-four years due to all-round construction boom in a burgeoning economy.
"Even the middle-classes have started investing in exotic tiles in new houses or renovating existing ones, especially in kitchens, restrooms, prayer rooms, etc. Using imported tiles has become a fashion though Indian-made tiles are no less in quality and variety," Shah pointed out.The ministries have asked the council to supplement its case with additional data on the impact of dumping across the supply chain and the quantum of antidumping duty to be levied to protect local manufacturers in the organised and unorganised sectors.
"We have already briefed government officials on how in the past about 30 per cent antidumping duty on vitrified tiles had bailed us out. It also enabled the organised sector to expand capacity with more players entering the industry. It is for the government to decide on the quantum of levy in conformity with the WTO (World Trade Organisation) regulations," Shah noted. There are 40-50 well-known manufacturers in the organised sector, while 200-250 units are scattered across the country in the unorganised sector, meeting the growing commercial and housing construction industry.
With the lifting of quantitative restrictions (QRs) under the WTO regime and lowering of duties, import of cheaper tiles from China, the Gulf region and some European countries has been increasing by five-ten per cent annually. As a result, the use of imported tiles in the commercial and housing sectors has been going up by 10-15 per cent annually."If the government does not check the dumping trend, the local ceramic tiles industry will be severely hit in the coming years, forcing many to shutdown their manufacturing units," Shah affirmed.
The council, a 17-year-old apex body of the ceramic tile industry, promotes the growth of Indian tiles and sanitary ware in the domestic as well as overseas markets. As a platform to voice the concerns of the industry, the council has been representing to the government for level-playing field vis-Ã -vis importers to meet the increasing demand for a variety of tiles in the domestic market.
Source:- http://www.headlinesindia.com/archive_html/02December2007_64684.html
Gujarat's cotton grows on child labour
Though, the textile industry in India is reaching new heights, with expected growth of $55 billion, the fine looking data has many a tragic tale of exploitation behind it to give that kind of push. The Indian textile industry is thriving on the child Labour. According to the Dakshini Rajasthan Mazdoor Union (DRMU), the industry in Gujarat and Rajasthan has myriad children working in it and face verbal, physical, and sexual abuse regularly. The government data estimates the number to be around 1.4 million.
India hopes to export as much as 7 percent of the world's cotton textile in the coming years, but the government has not yet come up with meaningful policy to curb the menace of child labour in the industry.
A report from DRMU reveals a horrific tale of a 12 year old girl Shobha from a village of Rajasthan, who went to work in a textile factory in Amreli in neighbouring Gujarat. Shobha, who was involved in the ginning work, became a victim of sexual assault and died a tragic death in February in 2007. The union report says, there are a number of cases like Shobha going unreported. The estimated number of children working in the Gujarat textile industry is 2,00,000. Most of them belong to tribal groups and muslim community, and are in the age group of 9 to 14, reveals the report.
Speaking at a recent workshop in Hyderabad, DRMU official Ashok Khandelwal told the media that almost every 18th child in Gujarat is working or searching for work. "The textile sector in Surat alone employs one fourth of the state's child labour," Khandelwal maintains.
The working and living condition of children in these places are also very pathetic. There is no proper drinking water facility, neither their accommodation are taken care of. Girls and boys are made to live together, often in the open, causing deaths due to snakebites. Girls are at an added disadvantage as they often face sexual harassment.
Rise in the demand of cotton textile in world market, and India meeting maximum of it sounds really nice, but economic progress on the expense of precious future can not be acceptable in a developing society like ours.
Source:- http://www.headlinesindia.com/archive_html/02December2007_64683.html
India's realty sector to get $30 bn foreign investment
Seeing the rise in the construction of shopping mall and complex in the major cities, the Associated Chamber of Commerce and Industry of India (ASSOCHAM), has revealed that India's realty Industry is expected to grow at a fast clip of 30 percent in next 10 years, offer 20-25 percent returns and secure foreign investment worth $ 30 billion. Interestingly, ASSOCHAM says that foreign investment component in the development of real estate will come through private equity funds instead of institutional mechanisms. The total investment in the sector is likely to be $ 102 billion in comparison to $ 14 billion at present which includes $5-5.5 billion of foreign investment.
The growth in the industry is expected to go up on the account of rapid expansion of IT industry, retail and residential sector in the country, says the study. The IT sector alone is expected to require about 200 million sq ft of space across the major cities and large townships. Similarly, some 30 million sq ft of organised retail space is currently available and another 90 million sq ft is likely to be added by 2008 by the 265 mall projects on the drawing board.
According to the ASSOCHAM study, India is the only country in Asia where the return in real estate investment is 20-25 percent in comparison to 15-18 per cent in other countries of the continent. However, the real estate industry in India is confronting a major problem implication in getting approvals for setting up a township. Pointing towards the problem of the real estate sector, the president of ASSOCHAM, Venugopal N Dhoot said, "The only problem that the real estate sector is currently confronting is with approvals for setting up townships, as a number of central and state agencies are involved in this process. The government, both at central and state level must ease the process involved in approving the proposals of town ship." To help the industry grow at rapid rate government must take a concrete step, added Dhoot.
Source:- http://www.headlinesindia.com/archive_html/02December2007_64676.html
'Efforts underway to address trade gap with B'desh'
Noting that the "huge" trade gap largely in favour of India was a major concern in ties with Bangladesh, External Affairs Minister Pranab Mukherjee on Saturday said a process was underway to address this issue and improve bilateral relations. Mukherjee, who nearly had an hour-long talk with Bangladesh's Foreign Adviser Iftekhar Ahmed Chowdhary in Dhaka, said that the "huge" trade gap was a major concern in bilateral ties. But, the minister, who is on a day-long visit to Bangladesh to witness the cyclone devastation in southwestern coastlines, said a process was underway to reduce it. He said the recent agreement allowing Bangladesh to export 80 lakh pieces of ready-made garments without citing previously needed "origin of certificate" was a major step towards that end.
Mukherjee said New Delhi is also expected to announce a package for the least developed regional countries, including Bangladesh, shortening its "sensitive list" for imported products later this month. He said the two countries are also likely to witness direct railway links after resolution of some "technical issues" while they reached a consensus to resolve all other issues through bilateral talks. On his arrival, Mukherjee formally handed over 36.4 tonnes of relief material supplied under 'Operation Sahayata' (Op Help) to Bangladeshi authorities.
Echoing Mukherjee's views, Chowdhary said, "the bilateral relations are progressing in a smooth manner and we will take them to a level when they will stabilise for a permanent period." He appreciated prompt Indian response for the cyclone survivors offering succour, including waiving a ban on rice export up to 5.5 lakh tonnes.
Mukherjee, during his talks with Chief Adviser Fakhruddin Ahmed earlier, offered Indian assistance for total rehabilitation of 10 cyclone-ravaged coastal villages reconstructing their communication lines, power systems and the affected infrastructure, including schools, under a "comprehensive and integrated" approach.
India lifts ban on rice export to cyclone-hit Bangladesh
Sharing the grief of cyclone-hit Bangladesh, India on Saturday decided to lift a ban on export of rice up to 5.5 lakh tonnes to the neighbouring country and proposed to adopt its 10 worst affected villages as part of overall assistance package. External Affairs Minister Pranab Mukherjee made these announcements in the Bangladeshi capital, as he handed over a fresh consignment of Indian relief material to Bangladesh's Foreign Adviser Iftekhar Chowdhury at the Zia International Airport soon after his arrival for a day-long visit.
He noted that India has already supplied relief material, including medicines, blankets, ready-to-eat meals, tents and portable water purifiers worth about Rs 6 crore since the tropical cyclone, 'Sidr' struck Bangladesh on November 15, killing around 3,500 people besides causing widespread devastation.
"India has always attached high importance to its relations with Bangladesh... It is, therefore, but natural that, like always, we stand by Bangladesh in its efforts to rebuild the lives of those affected by the cyclone," Mukherjee told reporters.
"I have come in a situation which is painful for the people of Bangladesh and all of us," he said as he expressed "deep sadness" on behalf of Indian government and people over the tragedy that struck the friendly neighbour.
Given the magnitude of the natural calamity, he said, India has decided to waive the ban on export of rice to Bangladesh for additional five lakh tonnes. India has already announced waiver of ban on export of rice to Bangladesh for 50,000 tonnes, Mukherjee said. Besides, 20,000 tonnes of rice is being sent by sea to Chittagong.
Source:- http://www.headlinesindia.com/archive_html/02December2007_64663.html
India must not take growth for granted: CII-WEF
India can sustain an economic growth of 8-10 per cent but a number of basic challenges are acting as handbrakes on development and need to be urgently addressed, said a new report released on Saturday. Although the need to spruce up infrastructure is well-known, civil society and the private sector must collaborate to ensure governance, a study by the World Economic Forum (WEF) and the Confederation of Indian Industry (CII)."Much can be gained by removing constraints inherent in inefficient government bureaucracies, complex tax regulations and labour market rigidities," adds the report India@Risk 2007 released a day ahead of their business summit in the capital.
"Decision-makers cannot assume tomorrow's growth story will read like today's. The economic fundamentals are in place but political dynamics and the scope of structural reforms are more likely to shape the next chapter." The report features risk factors for India in six areas - freshwater shortages, demographics, oil peaks, geopolitical, climate change and societal - and gives insights into their trends, potential consequences and mitigation.
"The six risks are intimately interlinked and generate many other threats to the Indian economy," CII director-general Shamsher S. Mehta said, commenting on the study. "Along with national security, the three pillars of security - human, economic and physical - also need to be raised to bring the economy to a position where the challenges can be met," he said.
He said in preparing the report, more than 40 experts from business, academia, non-government agencies and bureaucracy were asked to consider the drivers of India's recent growth, the latent opportunities and threats to progress. "While sustained 8-10 percent growth for India is possible, it is not a given," warned Gareth Shepherd, who oversees economic and financial risks for the Davos-based WEF's Global Risk Programme.
"In the short-term, three economic threats loom large," he said, and identified them as rising rupee, an oil price shock and the collapse of asset prices in property or shares. The report concludes that for a country like India, which is characterised by opportunities and ever-increasing regional and global interdependence, it was imperative to initiate collective action so as to mitigate such shared risks."Ring-fencing is no longer an option."
Source:- http://www.headlinesindia.com/archive_html/01December2007_64627.html
Air India to raise fuel surcharge by Rs 300
After Kingfisher and Jet Airways, the state-owned Air India on Saturday said it would hike the fuel surcharge by Rs 300 per ticket from Monday, a day after Jet Airways and Kingfisher Airlines increased the surcharge by an identical amount."Air India on Saturday decided to hike the fuel surcharge by Rs 300 from Monday," said its spokesman Jitender Bhargava. The announcement comes on the heels of major private airlines deciding on Friday to raise the levy to offset losses on account of a nearly 12 per cent increase in jet fuel (ATF) prices.
Source:- http://www.headlinesindia.com/archive_html/01December2007_64626.html
Sensex, Nifty gains despite economic slowdown
The Bombay Stock Exchange benchmark Sensex bounced by 2.71 per cent in the week under review as moderation of economic growth and FII pull out in November failed to check the bull run. Investors acted on some positive factors including strong global cues and clearance of Rs 16,000-crore rights issue of the country's largest lender State Bank of India (SBI). Expectations of another rate cut, largely prompted by comments from the US Federal Reserve officials indicating such a move in its meeting on December 11, also had a positive impact on the market sentiment. In the week to December 1, the BSE 30-share index moved in the range of 19,424.99 and 18,884.20 points before closing the week at 19,363.19, a net rise of 510.32 points over previous weekend's close of 18,852.87.
The broader S&P CNX Nifty of the National Stock Exchange (NSE) also spurted by 154.15 points or 2.75 per cent to close the week at 5,762.75 from last weekend's close of 5,608.60. Asian markets remained strong throughout and registered sharp gains. Nikkei was up 5.32 per cent, Kospi 7.51 per cent, Straits Times 5.87 per cent and Taiwan Weighted 2.93 per cent over last week.
The market was highly volatile in the week due to the expiry of November contract in derivative. Nifty futures witnessed a healthy rollover of 76 per cent to December series and the overall rollover in the F&O segment was nearly 72-75 per cent. Considering high rollover in derivatives, the market is likely to remain bullish in December, market players said.
Source:- http://www.headlinesindia.com/archive_html/01December2007_64602.html
Honda to set up $250-million car unit in Raj
Japanese automobile giant Honda is setting up its second car manufacturing unit in Rajasthan at an investment of Rs 10 billion ($250 million) with a capacity to produce 60,000 units in the first phase. "We are setting up our second plant in Bhiwadi. The unit will have an investment of around Rs 10 billion," said Masahiro Takedagawa, president and chief executive of the company's India unit, Honda Siel Cars. "It will be operational by 2009 and have a capacity of 60,000 units in the first phase," Takedagawa said at a seminar in Jaipur co-hosted by the state government and the Federation of Indian Chambers of Commerce and Industry (FICCI). Officials said the company chose Rajasthan because it can conveniently cater to India's largest market. The northern and eastern regions account for almost 50 percent of the country's car sales.
Honda officials said the company would bring the same corporate culture to Rajasthan that the Japanese giant follows globally. It would also seek to generate as much employment in the state as possible by tapping local talent.
Apart from the manufacturing facility, Honda is also planning a suppliers' park, which will host and help in the development of a host of ancillary units, which will cater to the needs of the company. Honda - which set up its India operations in 1995 and sells the "City", "Civic" and "Accord" sedans and the "CR-V" sport utility vehicle - is also doubling the capacity at its Greater Noida plant on the outskirts of the national capital.
"That plant is reaching its maximum capacity. It will produce 100,000 units by January," Takedagawa said. According to officials of the Rajasthan State Industrial Development and Investment Corp, a host of automobile ancillary units were already operational in the state with an investment of around Rs 7 billion.
The state-run corporation that promotes investments in Rajasthan also proposes to develop another auto components zone near Bhiwadi with the aim of attracting investments to the tune of Rs 30-50 billion. Meanwhile, Honda officials said the company proposes to soon showcase in India the "Jazz" hatchback and the new version of its top-end "Accord", also called "Honda Inspire", with a 2.4-litre petrol engine and a 3.5-litre variant.
The "Civic" hybrid and a prototype of its Formula 1 car are other models the company proposes to showcase, keeping in view the prospect of India hosting Formulae 1 racing by 2010. Honda has 130 plants in 30 countries, with operations in 160 countries.
Source:- http://www.headlinesindia.com/archive_html/01December2007_64586.html
Forex reserves up by 1.13 bn to USD 272.28 bn
Country's foreign exchange reserves rose by USD 1.13 billion, for the week ended November 24, to USD 272.281 billion, from USD 271.14 billion in the previous week. The forex reserves had gone up by USD 967 million, for the week ended November 16, to USD 271.14 billion. Foreign Currency Assets went up USD 1.13 Billion to USD 264.031 Billion, during the period, while the gold reserves stood at USD 7.811 billion, RBI's weekly statistical supplement stated on Friday. Foreign currency assets expressed in US dollar terms included the effect of appreciation or depreciation of other currencies, such as the Euro, Pound Sterling and Yen, held in its reserves, the statement said.
Country's Reserve Position in the International Monetary Fund (IMF) went up by USD 3 million, to USD 436 million, as compared to USD 433 million, in the previous week, the statement added.
Source:- http://www.headlinesindia.com/archive_html/01December2007_64572.html
Japanese opts India over China for investments
India has overtaken China for the first time as the most attractive business destination for long-term Japanese investments, results of a survey by Japan Bank for International Cooperation (JBIC) showed on Friday. According to the JBIC's annual survey, 70 per cent of surveyed Japanese manufacturers regarded India as an attractive country to do business in over the next 10 years or so, while 67 per cent preferred China. Russia came third, with a 37 per cent rating, followed by Vietnam at 28 per cent. From a three-year or so prospect, China remains the most attractive base of production, marketing and other operations for Japanese manufacturers.
But China's popularity rate has declined for the fourth year in a row since it peaked in fiscal 2003, while India, Vietnam, and Russia have boosted their popularity, Kyodo news agency reported. "Attention had been concentrated on China but it is increasingly being diversified to other emerging countries," said Susumu Ushida, senior economist at the JBIC's direct investment research division.The survey which was conducted in July and August, covered 970 Japanese manufacturers with overseas production facilities. Valid replies came from 600 or 61.9 per cent of the respondents.
Source:- http://www.headlinesindia.com/archive_html/01December2007_64567.html
Friday, December 7, 2007
FLAG Telecom inks deal with US firm
FLAG Telecom Group Ltd, a subsidiary of Anil Ambani-owned Reliance Communications Ltd, on Friday inked a deal with US-based GlassHouse Technologies to offer digital storage space management services. The firm said GlassHouse Technologies, an independent IT infrastructure consulting and services firm providing managed IT services directly to enterprise customers, will be expanding their infrastructure operation centre (IOC) to include the FLAG campus in India. "The IOC will be continually staffed by FLAG employees in a managed service outsourcing relationship and provide significant operating cost reduction," said FLAG Telecom chief strategy and marketing officer Jarret Appleby.
"What we are looking at is really part of the transformation of FLAG Telecom for the next generation network for global reach with GlassHouse to support global service delivery" Appleby added.
"Now we have layered our global delivery platform in the specialised management IT services. It's a different approach from Wipro or Infosys. We are leveraging our infrastructure and have initially specialised with GlassHouse with the global storage market, a $30-billion market." Appleby stated.
He further said,"We are going to focus on data protection, archiving, monitoring and management which is going to be an $8-billion market by 2009, and as such, FLAG is looking for about 200 customers globally in the first year, apart from GlassHouse's 300 existing customers." "Once completed, it will make us the largest provider of submarine cable network provider," Appleby maintained.
GlassHouse is the leader in the US and European markets and has a storage operational centre in the UK, which they are co-locating here in India while, FLAG, which owns and operates a undersea cable network, was in the process of investing $1.4 billion to launch four new submarine cable systems in new markets in Africa, Mediterranean, South East Asia and the trans-Pacific regions.
Source:- http://www.headlinesindia.com/business
Govt may allow 10 per cent of PPF in stocks
Government may double the ceiling of retirement funds managed by private organisations for investing in listed companies, a move that could further boost the already bullish stock markets. According to the sources, the Finance Ministry is likely to take a final decision, next week, on allowing private provident funds, superannuation funds and gratuity funds to invest up to 10 per cent of their funds in listed shares. "We have invited public comments on the proposed investment pattern for non-government provident funds, and would take a decision in this regard next week after studying the comments," said a senior Finance Ministry official on Friday.
If these guidelines are followed by private provident funds that have an aggregate investible amount of nearly Rs 300,000 crore, then employees could expect higher yield on their savings as against the present rate of 8.5 per cent. This is more likely to happen, since the stock markets have given an average of 25-40 per cent returns in recent years.
The official even stated that, the investment pattern guidelines for non-government provident funds would be revised almost after two-and-a-half years.
Meanwhile, the Finance Ministry has proposed that provident funds operated by firms could be allowed to invest their funds in shares of companies that have an investment grade debt rating from at least one credit rating agency or companies listed on BSE Sensex or NSE NIFTY 50, besides in equity linked schemes of mutual funds regulated by Securty Exchange Board of India(SEBI).
Source:- http://www.headlinesindia.com/business
Maruti, Hyundai, GM to hike car prices from next year
The new year will begin on a costly note for car buyers with major players, including Maruti Suzuki, Hyundai Motors and General Motors, planning to increase prices of the vehicles by as much as Rs 12,000. The companies are citing higher costs of raw materials such as Lead and Aluminum, besides rising freight charges as well as petroleum products, among the reasons for increasing the vehicle prices.
According to the sources, Maruti Suzuki India Ltd, has told its distributors to gear up for an increase in prices across all models. The price rise would be applicable on dispatches of vehicles from the date of announcement of the hike in January. Maruti has also written to its dealers that it will shut down production facilities for maintenance activities during December 24-31 and the dealers should plan their bookings accordingly, added sources.
Maruti's nearest rival Hyundai Motors India Ltd(HMIL) is also planning a price hike of up to two per cent across different models by December-end or January next year. Hyundai's lowest price car is the Santro non-AC which comes for Rs 2.72 lakh, while the high-end Sonata Embera is priced Rs 15.71 lakh.
Sources said HMIL may also revise the price of its recently introduced global car 'i10', which has been priced at Rs 3.39 lakh onward. While Hyundai officials declined to comment, General Motors India (GMI) confirmed it will be revising prices. "We will be hiking prices of our products between 1-2 per cent across all models by January," GMI Vice-President Marketing and Sales Ankush Arora said.
The hike becomes all the more unavoidable seeing the global crude prices along with input costs.
Source:- http://www.headlinesindia.com/business
ArcelorMittal for open offer for stake in COGL
NRI Lakshmi Mittal-run ArcelorMittal on Friday said it will pay at least USD two billion for a controlling stake in Chinese steelmaker China Oriental (COGL), in which it already holds a 28 per cent stake. World's biggest steelmaker ArcelorMittal said it will make an open offer to purchase shares not already owned by it at a price not less than HKD 6.12 per share - an offer that values the company at about USD 2.2 billion. On November 6- Mittal had acquired a 28.02 per cent stake held by Diana Chen Ningning, a former director and known as China's 'steel princess', for about USD 635 million.
Incidentally, Ningning was herself interested in acquiring control of Hong Kong-listed China Oriental at one point of time, but the move was opposed by the company chairman and CEO Han Jingyuan.
Besides buying out Ningning's stake, Mittal has also won over the support of Jingyuan and a circular filed by the company to the Hong Kong stock exchange on Thursday showed that the current "controlling shareholders" led by Jingyuan are now "parties acting in concert with Mittal Steel." These shareholders currently own 45.11 per cent stake in the company, which along with a 28.02 per cent stake now in Mittal Steel's name takes the total holding of Mittal and his associates to 73.13 per cent.The other shareholders own 26.87 per cent stake, as per the latest shareholding pattern filed with the exchange. "ArcelorMittal has entered into a shareholders' agreement with the controlling shareholders of China Oriental regarding their shareholdings in and the management of the company," the Luxembourg-based steel giant said in a statement.
Source:- http://www.headlinesindia.com/business
Reliance windfall enthuses strawberry farmers
It's boom time for strawberry cultivators in western Maharashtra - a bumper harvest and the entry of Reliance in the market with a promise to buy the fruit in bulk at high rates till the season's end. Strawberry cultivators in Mahabaleshwar, Pachgani and Wai areas in Satara district of Maharashtra have been assured by a cooperative society in Bhilar near Mahabaleshwar that it would buy the fruit from them at a sustained rate till end of March, sources said.
The Mukesh Ambani-owned Reliance Retail has tied up with Bhilar's Shriram Cooperative Society for daily purchase of top-grade strawberries at a rate of Rs 200 per kilogram. "While the Reliance Retail rate is not much higher than the one that middlemen offer at the beginning of the season every year, the market giant's promise to buy the season's entire produce at that rate till the end is what is attracting cultivators," Maruti Gade, a flourishing farmer, said.
Barkale, another cultivator who also doubles up as an agriculture produce market committee employee, shared Gade's optimism. "Not only have strawberry cultivators increased their acreage this year, farmers in the low-rainfall Junnar-Mulshi-Jejuri belt in Pune district too have taken to strawberry cultivation now," he said.
The cultivators, whose crop was hit by un-seasonal rain last year, are happy this time, as the crop is good and big companies like Reliance are buying for the first time, Gade informed. Rates in the local market usually go down to Rs 50 per kilogram towards end of December and even lower in the next two months, he said.
"The prospect of bulk sale at the same high rate till at least a month unlike a tapering rate is a reason for excitement," he said. However, fruit traders, especially those into processing, like Yuvraj Kachi of Pune, discount Gade's excitement. "Reliance Retail is unlikely to maintain the rate at Rs 200 per kilogram till the end," he said. "And the offer is only for top grade, mind you," he added.
Kachi thinks that Reliance's entry won't greatly affect traders if the new retail major restricts itself to fresh fruit sale. "But it will hit us if they enter into processing in a big way," he said. Sudam Shejwal, a leading strawberry trader and processor in Mumbai, said Reliance's entry will affect traders only marginally as the latter won't buy from everywhere like the new centres in Nasik and Ahmednagar.
Source:- http://www.headlinesindia.com/business
Wednesday, December 5, 2007
Reliance Money to retail gold coins in Kerala
Reliance Money, the financial services and distribution arm of Reliance Anil Dhirubhai Ambani Group on Tuesday announced a distribution tie-up with the Muthoot Group, one of South India's leading non-banking finance groups, for retailing its pure gold coins. Under the tie-up, Reliance Money will retail its branded gold coins in 501 plus outlets of the Muthoot Group in Kerala and Tamil Nadu. The gold coins will be available in ½ gram, 1 gram, 5 gram and 8 gram denominations across all these Muthoot outlets. The announcement was made by Sudip Bandyopadhyay, Director and CEO of Reliance Money and George Alexander Muthoot, Managing Director, Muthoot Group at a press conference in Kochi.
Sudip Bandyopadhyay, Director and CEO, Reliance Money, said, "South India is traditionally the largest user of gold in the country and contributes over 38% of the gold consumption in India. We see a huge opportunity for branded gold coins in this market, especially considering gold usage and gold gifting is a prevalent practice in this region."
He further added "This initiative is primarily targeted at increasing the penetration of demat accounts in the country - something which has remained stagnant at around 6 million for last few years,"
Reliance Money is the only company in India to offer pure gold coins in lower denominations of ½ gram and 1 gram. The company imports 24 carat pure gold coins (999.9 purity) from Valcambi SA (the largest gold refining company) of Switzerland in a tamper-proof sealed cover with Swiss Assyar's Certificate for retailing in India.
George Alexander Muthoot, Managing Director, Muthoot Group, said, "This alliance will help Reliance Money leverage our distribution network optimally, while offer us an opportunity to enhance our portfolio of product offerings."
With this partnership, Muthoot Group will become an exclusive retailer for Reliance Money Gold coins in the region. The group will also help the company in customer acquisition by providing Reliance Money's range of innovative financial products to its customers.
Source:- http://www.headlinesindia.com/sports
Tatas protest proposed mobile frequency allocation
The spat over allocation of scarce radio waves to mobile telecom operators continued to simmer with Tata Teleservices Ltd (TTSL) on Tuesday joining other major companies in rejecting the government's proposal unveiled a day earlier. The Department of telecommunications (DoT) had on Monday proposed 10 MHz of frequency for service providers using GSM technology and 5 MHz for those offering their services based on CDMA technology. By doing so, the DoT went back on its own suggestion made earlier regarding subscriber-based allocation, which would have enabled operators to get more than 6.2 Mhz. TTSL and Anil Ambani-controlled Reliance Communications (RCOM) are the major players in CDMA services while Bharti Airtel, Vodafone and Idea are the dominant players in the GSM segment. State-run BSNL also has a major presence in the GSM segment with ambitious plans in the CDMA market as well.
"It is very dismaying that the proposal again talks about spectrum allocation which is 2:1 in favour of GSM," Anil Sardana, managing director, TTSL, said in a statement. "Additionally, for the same number of customers that TTSL has now, some of the large GSM operators had more than double the spectrum when they held same spectrum, by virtue of which such GSM operators have saved thousands of crores of rupees of capital investments," Sardana added.TTSL, like RCOM, has demanded GSM operators surrender additional spectrum beyond the contractual amount of 6.2 Mhz. "The differentiation between GSM and CDMA technologies must end; there must be strict adherence to the government's stated policy of technology neutrality," said Sardana.
"This means that GSM and CDMA operators must receive the same amount of upfront spectrum and same amount of contracted spectrum for which the government should change license conditions immediately, lest the stated position of the government would see no interest in a particular technology and interest in the other," he added.The panel on spectrum allocation has already met thrice with no significant headway made. The efforts of the Communications Ministry to resolve this vexed issue amicably among mobile telephone operators will continue over the next couple of days with a series of meetings planned among operators, the regulator and the agency that monitors allocation of spectrum.
Meanwhile, a non-government organisation (NGO) - Social Action Forum for Manav Adhikar - filed a public interest litigation in the Supreme Court, seeking spectrum allocation through auction, rather than through preferential and other routes. (IANS)
Source:- http://www.headlinesindia.com/sports
Inflation control high on our agenda: FM
The Government on Tuesday said that containment of inflation remains high on its agenda and warned that any failure in managing the supply side will have implication on the price level. "Any failure on the supply management front will not only damage inflation perception in people's mind but also build up pressure for upward adjustment of wages and other prices," Finance Minister P Chidambaram said in the Rajya Sabha. Therefore, controlling inflation remains high on the government agenda, Chidambaram said in his statement on implementation of recommendations of the Standing Committee on Finance.
He said anti-inflationary policies of the government include strict fiscal and monetary discipline, rationalisation of excise and import duties of essential items so that there is no undue burden on the poor, effective demand-supply management through liberal tariff and trade policies and strengthening the public distribution system.
Even after rising a bit, wholesale prices-based inflation stood at 3.21 per cent for the week ended November 17 -- way below six per cent early 2007.Consumer prices-based inflation for industrial workers, which is of major concern for the common man, also declined to 5.51 per cent in October from 6.40 per cent in the previous month. "Moderation in rates of inflation in last seven weeks indicates that various policy initiatives taken by the government have started yielding results," Chidambaram said. (PTI)
Source:- http://headlinesindia.com/business
Monday, November 26, 2007
Package by FICCI to encourage investment
A leading industry body has recommended an eight-point financial package to encourage investments flowing in and out of the country. According to Federation of Indian Chambers of Commerce and Industry (FICCI), the Indian economy is likely to have a foreign trade turnover of over 350 billion USD (Rs.13.9 trillion) and foreign investment inflows of 30 billion USD (Rs.1.2 trillion). Incomes earned by overseas subsidiaries of Indian companies should be exempted from all taxes to encourage them to repatriate their earnings into India, the industry body recommended. Currently, a person is eligible for tax credit paid outside India with respect to doubly taxed income. This is equivalent to the tax at Indian rates or rates of the said country, whichever is lower.
FICCI has recommended consolidating such tax liability. In case when tax paid to the foreign country on income from outside sources is more than what it would be payable in India, the assessed should be eligible for tax credit deduction in respect of the excess part of the tax liability as well, like other countries.
FICCI further suggested that the dividend distribution tax be brought under the Double Taxation Avoidance Agreement (DTAA) umbrella. This would enable overseas holding companies with Indian subsidiaries to offset distribution taxes paid in India from tax payable by them in their respective countries.
The body has also urged the Government to follow the example of other countries such as the Netherlands, Singapore, Luxembourg, Ireland, Spain and Austria, who have redesigned their taxation laws to attract outbound investments. The current provisions require that the taxpayer take arithmetic means of prices. FICCI said this,, should be modified to use other statistical methods such as median of prices.
It also suggested measures to ensure that fringe benefit tax on employee stock option scheme is eligible for tax credits under the DTAA. FICCI has also urged proper and timely implementation of an efficient goods and services tax regime that would eliminate distortions and lower taxpayers' burden. (IANS)
Source:- India Business News
Increase in NPAs matter of concern
The "increase" in Non-performing Assets (NPAs) ot banks is a matter of concern, former All India Banks Employees Association (AIBEA) vice president P S Sunderesan said on Sunday. Addressing the 20th Conference of All India State Bank of Patiala Employees Federation and Sixth Employees Union Conference of State Bank of Patiala, Sunderesan alleged that in the last three years Rs 52,000 crore of fresh NPA had been added to the banking system. The total NPA of the banking system has touched a level of Rs three lakh crores, if interest is added to it, he claimed.
He said the All India Bank Employees Association had a list of "defaulters" where the NPA level is one crore and above in each account. (PTI)
Source:- India Business News
'Telecom decisions to result high growth'
Amid a spate of requests to the Prime Minister to step in and set things right in the telecom sector, Communications Minister A Raja has said all his decisions regarding the sector were aimed at lowering tariffs and encouraging growth. "I am equally concerned about the image of India across the globe and assure you that all the decisions taken by me will be guided by the larger interest of the public, competition and growth of telecom sector," Raja said in a letter to Prime Minister Manmohan Singh, while sharing the concern expressed by Cabinet colleague Kamal Nath about the sector.
Nath had suggested to the Prime Minister that a Group of Ministers (GoM) be set up to sort out issues like spectrum allocation norms. Raja, however, feels it is not necessary.
"Since the Department has decided to continue with the existing policy (first-cum-first-served) for processing of applications, the suggestion of Kamal Nath for setting up GoM is out of context," the Communications Minister has said.Raja's letter comes at a time when the country's booming telecom industry comprising GSM and CDMA operators is divided in the middle over norms for allocating spectrum to telecom companies and use of dual technology for mobile services.
Earlier Reliance ADAG Chairman Anil Ambani had sought the Prime Minister's intervention to see that extra frequency lying with GSM operators is returned. "I do share concern of my colleague (Nath) regarding international investment in the telecom sector. However, I would like to bring to your kind notice that increasing competition will give further boost to the investment in the telecom sector. (PTI)
Source:- India Business News
Tata favourite to buy Jaguar, Land Rover
Tata, the Indian conglomerate headed by Ratan Tata, has moved into pole position in the 1.5 billion pounds race to buy Jaguar and Land Rover, two of Britain's most prestigious car marques. Quoting sources close to the negotiations, a daily on Sunday reported that positive meetings last week between Ravi Kant, managing director of Tata Motors, and trade union and government officials have given the Indian conglomerate an edge over its rivals. It still faces stiff competition from One Equity, an American private-equity group, and Mahindra and Mahindra, the Indian car group that is bidding with Apollo, another American buyout firm.
Ford, the American automotive giant that is selling the two marques, could choose a preferred bidder within the next three weeks. The company is selling Jaguar and Land Rover as a single unit. One Equity's bid is led by Jac Nasser, a former chief executive at Ford.While Jaguar is loss-making - it is feared to lose about 500 million dollars this year - Land Rover is having a purple patch. The report quoted sources at the bidding teams to say they expect the business to make more than 1 billion dollars this year, a remarkable result given the weakness of the US dollar. America is one of Jaguar and Land Rover's biggest markets. (PTI)\
Source:- India Business News
Sensex zooms 458 pts in early trade
The Bombay Stock Market benchmark Sensex gained 458 points in early trade today on brisk buying by funds. The 30-share index, which closed with a gain of 326 points on Friday, shot up by 457.69 points to 19,310.56 point in the first five minutes of trade. The wide-based National Stock Exchange index, Nifty, rose by 129.25 points to 5,737.85 as most of the heavy-weight shares recorded notable gains. The trading sentiment was boosted by reports of a steep rise in Asian stock markets such as Hang Seng and Kospi. (PTI)
Source:- India Business News
Friday, November 23, 2007
FICCI for Digital Rights Management system
The Federation of Indian Chambers of Commerce and Industry (FICCI), is pushing for the adoption of an efficient ?Digital Rights Management? (DRM) system, saying that this would give a fillip to the fast-growing Indian digital entertainment and media industry. FICCI, and professional services firm 'Price Waterhouse Coopers', conducted a study on the Indian entertainment and media industry, and on Friday released their report "Entertainment and Media: India Going Digital" here to coincide with the start of the International Film Festival of India (IFFI).The report called for an efficient DRM system "that allows management and protection of digital content". It added that it was the need of the hour for India to have "technology-agnostic, forward-looking and robust regulatory policies balanced with self-regulation and cross-industry agreements".
DRM is an umbrella term that refers to the access-control technologies used by publishers and copyright holders to limit the use of digital media or devices. It may also refer to restrictions associated with specific instances of digital works or devices. DRM is sometimes seen as a controversial issue. Advocates argue it is necessary for copyright holders to prevent unauthorised duplication of their work to ensure continued revenue streams. However, critics says copyright holders use DRM to restrict use of copyrighted material in ways not included in the statutory common law, or constitutional grant of exclusive commercial use to them.
FICCI officials said: ?the study showed the rise of digital media threw up issues that Indian stakeholders need to take cognizance of.? Among these, copyright issues are the foremost which impact exploitation of digital content across new media. "Technology issues, especially those relating to inter-operability of equipments and devices at consumer premises are also to be dealt with," said FICCI's media coordinator Taresh Arora. Digital piracy, though at a nascent stage, will also be a challenge for Indian stakeholders with the proliferation of digital media, Arora argued while stressing the need for a DRM system.
FICCI admitted that there would be a price to pay for the introduction of DRM systems.
"An issue for content providers and distributors is the degree to which they utilize DRM software to control distribution. DRM restricts the ability of consumers to copy and distribute products. The benefit to content providers is that DRM limits unauthorised distribution. There is also a cost. "Restrictions on usage, which include the inability of content downloaded on one device to play on another, can discourage some consumers from buying product through legitimate channels. Companies are grappling with this trade-off," the report said.
FICCI said, that because of increasing pressure on the industry itself, music companies are considering releasing music over the Internet without copyright protection, which would fuel internet distribution and revenue growth by allowing downloaded music to be played on virtually any device. "With physical distribution falling rapidly, labels are becoming more receptive to strategies that enhance digital distribution even as it reduces impediments to unauthorised distribution," the report said. "Companies are experimenting with different approaches to intellectual property management. It is expected that technologies, methodologies, and business models will continue to evolve during the next several years," it added. (IANS)
Source:- India Business News
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