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Shyam Tele may get CDMA spectrum in Delhi, MumbaiNewsWire18 has learnt from sources that Shyam Telecom will get CDMA spectrum in Delhi and Mumbai today. The sources add that Swan Telecom would get GSM spectrum in three circles by Monday. The Department of Telecommunications, or DoT will request proposals for bids for number portability by Tuesday, sources said.Source: Moneycontrol Top Headlines | 29 Aug 2008 | 4:02 pm See Rs 20K cr order book by Jan \'09: BGR EnergyBG Raghupathy, CMD, BGR Energy Systems sees the company\'s order book at Rs 20,000 crores. The current order book is at Rs 11,000 crore, he said. He expects a turnover of Rs 2,500 crore FY0809 and Rs 3,500 crore FY0910. \"As an EPC contractor we certainly would like to consolidate our position,\" he said.Source: Moneycontrol Top Headlines | 29 Aug 2008 | 3:59 pm SAIL to fund capex via ECB for equipment importsSAIL may opt for External Commercial Borrowing to fund equipment imports for expansion, reports NewsWire18. The company will keep its debt to equity ratio within 1:1 when funding the expansion, it said. SAIL sees its FY09 capex at Rs 5,000 crore. The company said it has already placed orders for 30% of the equipment under its expansion plan.Source: Moneycontrol Top Headlines | 29 Aug 2008 | 3:49 pm Lehman investors shift holdings to other PNotes: SrcsLehman investors continue to shift holdings to other Participatory Note (PN) accounts, reports CNBCTV18 quoting sources. Block trades were seen in Triveni Engineering and Mastek yesterday.Source: Moneycontrol Top Headlines | 29 Aug 2008 | 3:16 pm Glenn Saldanha: Setting new marks in pharma bizGlenn Saldanha, MD CEO of Glenmark Pharmaceuticals said, \"I do not think in the near future we have any plans to ever exit this business. We still see a tremendous future, we still think that there is an opportunity to try and create the first Indian company on a global platform, a true multinational.\"Source: Moneycontrol Top Headlines | 29 Aug 2008 | 1:08 pm Workers will not work at Singur plant today: Tata MotorsTata Motors has said that workers will not attend work at the Singur plant today. On August 28 the employees were held for four hours by the Trinamool Congress supporters and stopped from leaving the premises.Source: Moneycontrol Top Headlines | 29 Aug 2008 | 12:57 pm Lehman looking at cutting some 1,200 jobs: Report!Lehman Brothers Holdings Inc is looking at cutting some 1,200 jobs in its latest round of cost cutting, a person familiar with the matter said, as weak financial markets spur layoffs across Wall Street.Source: Zee News : Business | 29 Aug 2008 | 12:22 pm Daiichi Sankyo to cancel 3.5% of own shares!Daiichi Sankyo Co Ltd said on Friday it would cancel 3.54 percent, or 26 million, of its outstanding shares on Sept 8.Source: Zee News : Business | 29 Aug 2008 | 12:22 pm Dell`s Q2 profit drops 17% on lower margins!Slashing computer prices helped Dell Inc. boost sales in its fiscal second quarter, but the No. 2 PC maker`s bottom line took a hit when efforts to cut costs failed to make up the difference.Source: Zee News : Business | 29 Aug 2008 | 12:22 pm Sensex up 331 pts at 14,379!The Bombay Stock Exchange benchmark Sensex rose by 331 points in early trade today on emergence of buying by funds and retail investors after inflation eased to 12.40 percent amid firm global markets.Source: Zee News : Business | 29 Aug 2008 | 12:22 pm Economy grows at 7.9% in Q1!Indian economic growth moderated to 7.9 percent in the first quarter of current fiscal, against 9.2 percent a year ago as rising borrowing costs impacted manufacturing and some other sectors.Source: Zee News : Business | 29 Aug 2008 | 12:22 pm Air France, Lufthansa equal in Alitalia talks: Report!Air France-KLM and Lufthansa are on an equal footing in their talks about a possible partnership with a revived Alitalia, a key investor in the Italian carrier said in an interview published on Friday.Source: Zee News : Business | 29 Aug 2008 | 12:22 pm Dr Reddy`s gets FDA nod for trandolapril tabs!Indian drugmaker Dr Reddy`s Laboratories Ltd has received approval from the US Food and Drug Administration for trandolapril tablets, the regulator`s website showed.Source: Zee News : Business | 29 Aug 2008 | 12:22 pm Microsoft says to buy Greenfield for $486 mn!Microsoft said on Friday it had agreed to buy Web-based online survey company Greenfield Online Inc for USD 17.50 a share, valuing the deal at USD 486 million.Source: Zee News : Business | 29 Aug 2008 | 12:22 pm LIC can dilute its present stake: IRDA!Life Insurance Corporation can dilute its present stake in blue-chip companies and bring it down to 10 percent in a phased manner, said Insurance Regulatory and Development Authority (IRDA) member C Muralidharan.Source: Zee News : Business | 29 Aug 2008 | 12:22 pm Czech Republic woos Indian companies to investCzech Republic on Friday invited Indian companies to invest in its potential sectors to further strengthen the mutual trade that has grown by 42 per cent in the first half of 2008.Source: Daily News & Analysis: Money News | 29 Aug 2008 | 11:46 am TCS develops system for NSDLMumbai: Tata Consultancy Services (TCS) said that it has developed a new system for National Securities Depository Ltd (NSDL) that will enable the latter to maintain pension records. “In partnership with NSDL, we have built a pension record system in just six months that is capable of scaling up to meet the needs of this fast-growing economy,” TCS CEO and Managing Director S Ramadorai said. In a filing to the Bombay Stock Exchange (BSE), the company said the new system would be the central record keeping agency for the government of India’s New Pension System. The benchmark for the new pensions record system are high. It has been built to ensure high availability with disaster recovery. Security has been given primary importance in the system with role—based access controls and public key infrastructure—based solution, the filing added. Shares of the TCS were trading at Rs811, up 2.29% on the BSE in afternoon trade. Source: LatestNews-Home - Livemint.com | 29 Aug 2008 | 11:39 am TCS develops system for NSDLMumbai: Tata Consultancy Services (TCS) said that it has developed a new system for National Securities Depository Ltd (NSDL) that will enable the latter to maintain pension records. “In partnership with NSDL, we have built a pension record system in just six months that is capable of scaling up to meet the needs of this fast-growing economy,” TCS CEO and Managing Director S Ramadorai said. In a filing to the Bombay Stock Exchange (BSE), the company said the new system would be the central record keeping agency for the government of India’s New Pension System. The benchmark for the new pensions record system are high. It has been built to ensure high availability with disaster recovery. Security has been given primary importance in the system with role—based access controls and public key infrastructure—based solution, the filing added. Shares of the TCS were trading at Rs811, up 2.29% on the BSE in afternoon trade. Source: Tech News - Livemint.com | 29 Aug 2008 | 11:39 am HC notices to I&B Ministry, Trai on carriage feeNew Delhi: The Delhi High Court on 29 August sought a response from Information and Broadcasting Ministry and broadcast regulator Trai on a petition seeking regulation of fee charged by MSOs, cable operators and DTH operators to carry the channel on their platform. While issuing notices to Telecom Regulatory Authority of India (Trai) and the I&B Ministry, Justice G.S. Sistani expressed the need to have rationality in fixing the charges. “There has to be some rationality. It is not that the court is deciding to frame regulation,” the Court said, when the counsel appearing for Trai contended that the Court should refrain from interfering in the matter. The Court was hearing the petition, filed by Delhi-based news channel Total TV, challenging the validity of carriage fees being charged by DTH operators, distributors, MSOs, cable operators. It approached the court after Prasar Bharati hiked the carriage fee from Rs25 lakh to Rs60 lakh per annum to carry the channel on its DTH platform. It submitted that when Trai has not prescribed any carriage fees to be charged by distributors, the same is to be held as illegal demand and such type of practice should be deprecated and discouraged. The channel questioned the basis for fixing such charge when there were no norms or guidelines laid down by the government. “There are no norms or guidelines regarding demand of carriage fees laid out by the government. On what basis DTH firms fix the carriage fee,” channel said. Source: Tech News - Livemint.com | 29 Aug 2008 | 11:37 am Shyam-Sistema gets pan-India CDMA spectrumNew Delhi: Shyam Telecom and Russian major Sistema combined today became the first new telecom operator to get pan-India start-up spectrum to offer mobile services. Communication and IT Minister A Raja has signed the file for allotting CDMA spectrum to Shyam Telecom, which has sold majority stake to Russian conglomerate Sistema Inc. Shyam-Sistema had opted to offer mobile services in CDMA technology and had applied for 21 circles except Rajasthan where the company is already offering services under the brand name Oasis. Shyam-Sistema will be the third private pan-India operator offering mobile services using CDMA technology apart from Anil Ambani group company RCOM and Tata Teleservices. Other new telecom operators like Datacom, Unitech, Loop Telecom and Swan telecom have been alloted GSM radio frequency in six circles and the government is looking at the availability of spectrum in other circles too. Shyam-Sistema has already started rolling out network in various parts of the country and is hoping to start the services soon. Source: Tech News - Livemint.com | 29 Aug 2008 | 11:34 am Shyam-Sistema gets pan-India CDMA spectrumNew Delhi: Shyam Telecom and Russian major Sistema combined today became the first new telecom operator to get pan-India start-up spectrum to offer mobile services. Communication and IT Minister A Raja has signed the file for allotting CDMA spectrum to Shyam Telecom, which has sold majority stake to Russian conglomerate Sistema Inc. Shyam-Sistema had opted to offer mobile services in CDMA technology and had applied for 21 circles except Rajasthan where the company is already offering services under the brand name Oasis. Shyam-Sistema will be the third private pan-India operator offering mobile services using CDMA technology apart from Anil Ambani group company RCOM and Tata Teleservices. Other new telecom operators like Datacom, Unitech, Loop Telecom and Swan telecom have been alloted GSM radio frequency in six circles and the government is looking at the availability of spectrum in other circles too. Shyam-Sistema has already started rolling out network in various parts of the country and is hoping to start the services soon. Source: LatestNews-Home - Livemint.com | 29 Aug 2008 | 11:34 am Bulls recharged; Sensex, Nifty end up over 3.4%, Bank up 6% - Moneycontrol.com
Source: Google News India - Business | 29 Aug 2008 | 11:30 am Indian shares rally 3.7 pct as rate worries easeMUMBAI (Reuters) - Indian shares surged 3.7 percent on Friday and propelled the market to its first weekly gain in three, after slower-than-expected economic growth and a drop in inflation calmed the outlook for interest rates.Source: Reuters: Money News | 29 Aug 2008 | 11:07 am Reliance Money forays into EuropeNew Delhi: Anil Ambani Group firm Reliance Money announced its foray into Europe by setting up operations in Ireland and the UK. The company is also looking to tap over two million non-resident Indian population in the region. Announcing the foray, R-Money CEO Sudip Bandyopadhyay said: “This is our first move to reach out to the large base of over 2 million NRIs and Persons of Indian Origin (PIO)s based in Europe with our unique, cost-effective and efficient bouquet of products and services. Our presence in Ireland and UK will complement our efforts to have a larger role in this region.” Ireland is the first European country where R-Money would start its operations in less than one year of its decision to tap the overseas markets. “R-Money (Ireland) would in turn enter into partnership with appropriate players in other European countries after getting the necessary approval from regulatory authorities in the respective countries,” he added. The company has already forayed into the UAE, Saudi Arabia, Africa and Hong Kong. After foraying into other global markets, broking and distribution firm Reliance Money made the first initiative to to offer its services to retail investors in Europe with a strew of financial products. Bandyopadhyay said that the company aims to generate 50% of its revenues from overseas markets by 2012 and capture a bigger share of the record $195 billion invested in India last year by overseas funds. Through Reliance Money (Ireland), the non-resident Indian entities and PIOs can invest in the Indian market directly through its capital market and portfolio management services for as low as $50,000. Source: LatestNews-Home - Livemint.com | 29 Aug 2008 | 11:07 am Reliance Money forays into EuropeNew Delhi: Anil Ambani Group firm Reliance Money announced its foray into Europe by setting up operations in Ireland and the UK. The company is also looking to tap over two million non-resident Indian population in the region. Announcing the foray, R-Money CEO Sudip Bandyopadhyay said: “This is our first move to reach out to the large base of over 2 million NRIs and Persons of Indian Origin (PIO)s based in Europe with our unique, cost-effective and efficient bouquet of products and services. Our presence in Ireland and UK will complement our efforts to have a larger role in this region.” Ireland is the first European country where R-Money would start its operations in less than one year of its decision to tap the overseas markets. “R-Money (Ireland) would in turn enter into partnership with appropriate players in other European countries after getting the necessary approval from regulatory authorities in the respective countries,” he added. The company has already forayed into the UAE, Saudi Arabia, Africa and Hong Kong. After foraying into other global markets, broking and distribution firm Reliance Money made the first initiative to to offer its services to retail investors in Europe with a strew of financial products. Bandyopadhyay said that the company aims to generate 50% of its revenues from overseas markets by 2012 and capture a bigger share of the record $195 billion invested in India last year by overseas funds. Through Reliance Money (Ireland), the non-resident Indian entities and PIOs can invest in the Indian market directly through its capital market and portfolio management services for as low as $50,000. Source: World Business - Livemint.com | 29 Aug 2008 | 11:07 am Markets end week with hefty gainIndian equity markets ended last day of the week with a hefty gain, riding piggyback on the decline in inflation rate and strong global markets. Rate sensitive sectors such as banking, realty and auto stocks were in demand.Source: IndiaeNews.com: Business News | 29 Aug 2008 | 11:00 am No conclusion can be drawn from one week's figure: FM - Hindu Business Line
Source: Google News India - Business | 29 Aug 2008 | 10:57 am FM launches Currency Futures: Street applauds move - Moneycontrol.com
Source: Google News India - Business | 29 Aug 2008 | 10:56 am Govt approves India-Norway Fishery dealNew Delhi: “The Union Cabinet gave its approval for signing of the MoU on bilateral cooperation in the field of fisheries between governments of both India and Norway,” said Science and Technology Minister Kapil Sibal. He said that the move will facilitate contact between India and Norway on matters related to the fisheries sector. Norway has an expertise in marine fisheries. Several countries, including Russia, Canada and Philippines have signed agreements with Norway for bilateral cooperation on fisheries. Source: LatestNews-Home - Livemint.com | 29 Aug 2008 | 10:54 am Sensex ends day with 500-point-plus gainNew Delhi: The Bombay Stock Exchange benchmark ended the day on a string positive note, notching up a gain of 516.19 points to 14,564.53 on the back of heavy buying by funds and retail investors. Sentiment on the street on 29 August got a boost from encouraging inflation numbers—the indicator had eased to 12.40% after five weeks of consistent rise. Traders also ignored the news of an economic slowdown. GDP growth slipped to 7.9% for the first quarter of the current fiscal, compared with 9.2% in the corresponding quarter the previous year. Banking stocks lead the gains on the street with State Bank of India posting a 7.19% rise to Rs1,403.60. Other top gainers of the day included Reliance Energy (5.97%, Rs991.15), ICICI Bank (5.93%, Rs671.50) and Tata Motors (5.44%, Rs440.35). Source: Home - Livemint.com | 29 Aug 2008 | 10:53 am India's Aprl-July fiscal deficit at $26.5 bln - govtNEW DELHI (Reuters) - India's fiscal deficit during April to July stood at 1.16 trillion rupees ($26.5 billion), or 87 percent of the annual target, the government said on Friday.Source: Reuters: Money News | 29 Aug 2008 | 10:52 am Shyam-Sistema gets pan-India CDMA spectrum - Business Standard
Source: Google News India - Business | 29 Aug 2008 | 10:47 am No rift between Dalmia brothers: GHCLNikhil Sen, Head of international business and strategy at GHCL feels theres nothing unusual about shareholders move and is unaware about any reply sent to shareholders. He said that the promoters continue to have majority stake in the company and added that there is no rift between the Dalmia brothers.Source: Moneycontrol Top Headlines | 29 Aug 2008 | 10:42 am India's economic growth dips to 7.9 - Hindustan Times
Source: Google News India - Business | 29 Aug 2008 | 10:41 am Russia wins some support from Tajik ally over GeorgiaDushanbe: Russian President Dmitry Medvedev won a measure of support from Central Asian ally Tajikistan on Friday for Moscow’s actions over Georgia. Tajik President Imomali Rakhmon said diplomatic solutions were best but expressed understanding for Russia’s actions after Moscow fought a brief war with its tiny southern neighbour Georgia. Russian forces swept the Georgian army out of the rebel region of South Ossetia and are still occupying some areas of Georgia proper. On Tuesday, Moscow recognised the province and another breakaway region, Abkhazia, as independent states. No other state has followed Moscow’s lead on recognising the breakaway Georgian areas, including Tajikistan. But Rakhmon said his country supported its ally on many issues. “Without question this refers to a range of measures which Russia is undertaking in the Caucasus,” he said after signing a joint statement with Medvedev following bilateral talks in the Tajik capital, Dushanbe. “At the same time, diplomatic methods to resolve these questions are preferable,” he said, repeating a view taken on Thursday by fellow members of a regional grouping that includes Russia, China and three other Central Asian states. For his part Medvedev expressed thanks for the “expressed understanding and support for Russia’s position” in defending its citizens and civilians in South Ossetia. Georgia has accused Russia of seeking to annex its territory but Moscow says it only acted to prevent a Georgian “genocide” of civilians and to protect its nationals. The United States and European Union have condemned Russia’s actions as disproportionate and demanded Moscow withdraw its forces from Georgia. Source: LatestNews-Home - Livemint.com | 29 Aug 2008 | 10:37 am India Clinches Asean FTA - TopNews
Source: Google News India - Business | 29 Aug 2008 | 10:36 am Net Devices For Rs 5000 On The Anvil - TopNews
Source: Google News India - Business | 29 Aug 2008 | 10:36 am Punjab Chemicals to buy 70 pct in Parul ChemicalsMUMBAI (Reuters) - Punjab Chemicals & Crop Protection Ltd, said on Friday that its board approved plans to acquire 70 percent stake in Parul Chemicals Ltd, which has an enterprise value of 90 million rupees.Source: Reuters: Money News | 29 Aug 2008 | 10:35 am India kicks off forex futures tradeMumbai: India kicked off its first exchange-traded rupee futures with heavy trading reported in the first minutes of business and front-month contracts seeing the highest activity. Dealers said banks and large companies made the bulk of trading, even though the contract size is small compared with exchange-traded currency futures elsewhere. More than 8,000 contracts were traded on the National Stock Exchange (NSE) in the late morning deals, the first of several platforms planned, with the heaviest trade on the September and October contracts, NSE data showed. On the spot market, the rupee was trading at 43.74/75 per dollar, slightly firmer than the previous day’s close at 43.78/79. India is trying to develop more sophisticated financial markets and hedging tools to support its rapidly growing economy and Finance Minister P.Chidambaram said at the start of trading that the government needed to push on with more instruments. “After having launched currency futures, we need to revitalise exchange-traded interest rate derivatives markets, offer exchange-traded credit derivatives and also need to strengthen the corporate bond markets,” he said. “These three products are high on the priority list of the government and I ask the government to move forward on this,” Chidambaram added. Each contract size is $1,000, smaller than 12.5 million Japanese yen or A$100,000 contract sizes on the Chicago Mercantile Exchange. The Multi Commodity Exchange of India and the Bombay Stock Exchange have also received in-principle approval to offer exchange-trade currency futures. Source: Home - Livemint.com | 29 Aug 2008 | 10:32 am Govt gives a nod to amend Indian Plantation Labour ActNew Delhi: In a move beneficial for over a million workers in the country’s plantation sector, the government approved amendments in the Indian Plantation Labour Act, 1951 to provide a mechanism for ensuring their safety and welfare. “The Cabinet has given approval for introduction of the Plantations Labour Bill, 2008 in the Parliament for making amendments in the Indian Plantation Labour Act of 1951,” Science and Technology Minister Kapil Sibal said after a meeting of the Union Cabinet. Indian Labour Organization (ILO) estimates that the amendment proposes a variety of measures to provide mechanisms for safety, health and wealth for the about one million plantation workers in the country. The working condition of labourers in the plantations has left a lot to be desired. “So, we have decided to set up a mechanism to provide for their safety, health and wealth of plantation labour,” Sibal said. “The government planned to amend the definition of family to remove the distinction between a female and a male worker,” he added. Sibal also said that definition of worker would be amended by enhancing the wage ceiling from Rs750 to Rs10,000. “The medical facilities to be provided to the workers and to their families and make it obligatory on the state government to provide medical facilities,” he said, adding that the state could recover the cost from the employers. Source: LatestNews-Home - Livemint.com | 29 Aug 2008 | 10:30 am Tatas pull out executives, workers for safety from Singur - Times of India
Source: Google News India - Business | 29 Aug 2008 | 10:28 am Update: Govt clears radical changes in new Companies BillNew Delhi: Government today cleared a new companies bill that limits its role and also provides for a radical change in the way nearly seven lakh corporate entities are run. The much-awaited Companies Bill, 2008, which will replace the Companies Act, 1956 provides for appointment of a minimum 33% independent directors on the board and restrictions on firms to raise deposits from public. The bill will be introduced in coming session of Parliament in October. “Existing Act is not in tune with the times...wholesale refurbishment of the Act was needed. This is a far-reaching bill. It will revolutionise the whole Companies Act,” said Science and Technology Minister Kapil Sibal. He said no issue of shares on discount will be allowed. At present, some promoters issue shares at discount for themselves, he said. The proposed law recognises the chief executive officer, chief financial officer and company secretary as “key managerial personnel” and provides for a single forum for mergers and acquisitions. The right of an investor over a dividend or a security not claimed for more than seven years will not be taken away. The investor education and protection fund will be administered by a statutory authority. A more effective regime has been provided for by inspection and investigations, and provisions of recovery and disgorgement have been included. The bill also provides for special courts to deal with offences and scrapping of minimum paid-up capital requirement. Source: Home - Livemint.com | 29 Aug 2008 | 10:25 am GM To Invest $200 Mn In Pune Engine Plant - TopNews
Source: Google News India - Business | 29 Aug 2008 | 10:22 am Tatas pull out executives, workers to safety from SingurSingur (West Bengal): Irked by constant intimidation of its workforce by agitating Trinamool Congress workers, Tata Motors has evacuated its manpower from Singur. None of the 600-800 engineers, executives and technocrats came to work since 28 August night after the management decided to pull out the workforce, including about 500 construction workers, sources close to Tata Motors said. Asked if it was a precursor to pull out the project to manufacture the world’s cheapest car ‘Nano’ from the state, the sources said currently, the thinking is not on that line, as safety of workers has taken the precedence because of prevailing tension. A final view would be taken only after restoration of peace, the source said when asked about Tata Group chief Ratan Tata’s threat to withdraw the project from West Bengal in case violence persisted. Contrary to the promise that Trinamool Congress and Khet Majur Samity would stage peaceful ‘satyagraha’ protest against state government, there have been numerous cases of intimidation during the sit-in protest since August 24, sources said. “The workers and the executives were afraid and worried and our foremost priority was to ensure their safety... Hence, the management decided to evacuate its manpower from the plant late last evening,” a company official said on the condition of anonymity. When contacted, a Tata Motors spokesperson told PTI from Kolkata: “Since the employees and contract labourers had left the plant late last night, so it was a conscious decision of the company that there would be no attendance at the project site at any of the three shifts today.” Source: Home - Livemint.com | 29 Aug 2008 | 10:21 am NALCO bags first coal imports, stocks thinNew Delhi: “India’s National Aluminium Co Ltd (NALCO) has begun receiving imported coal to overcome the shortages which forced it to cut alumina output in July but stocks remain thin,” a top official said. A.K. Sharma, executive director at NALCO, informed that a shipment of 30,000 tonnes of coal had already arrived while another of the same size would soon be delivered. He said that a third cargo of 100,000 tonnes was expected within a week to ten days. “We had planned total imports of 330,000 tonnes. The balance 170,000 tonnes is still under process,” he added. Sharma said that state-run trading firms were importing the coal for NALCO, mainly from Indonesia. “The company’s coal stocks were just sufficient to meet three days’ demand,” officials said. “We are still in a hand-to-mouth situation,” said another company official. Earlier this month, NALCO resumed normal production at its Damanjodi alumina refinery in the eastern state of Orissa after output was curtailed in July due to a coal shortage. Domestic coal supplies are expected to improve only after the monsoon rains end in September. Sharma said that the company is also making efforts to buy more coal from local suppliers, including through electronic auctions. Source: LatestNews-Home - Livemint.com | 29 Aug 2008 | 10:08 am Minda Group sets up blow-moulding unit in BangaloreNew Delhi: Minda Industries Ltd (MIL), the listed arm of the Rs1,000 crore NK Minda Group on 29 August announced the opening of its new factory at Bidadi, Bangalore for the manufacture of blow-moulded parts. The facility has been set up in technical collaboration with Kyoraku, Indonesia and will supply blow-moulded plastic components to OEMs (original equipment manufacturers) including Toyota. Kyoraku is a $400 million group with a strong client base in Japan and Indonesia for its blow-moulded parts. MIL has already spent Rs10 crore on the facility and plans to invest another Rs15 crore. The company is targeting Rs50 crore in revenues from this venture in the next few years. The factory has come up in a two-acre plot with 40,000 sq. ft of covered area. The installed capacity of the plant is 600,000 parts a year. Nirmal K Minda, managing director, MIL said, “It is a conscious effort on our part to add value-added products to our product portfolio and blow-moulded parts are the latest addition to this”. He further added that despite the present pessimistic scenario of the auto sector in the country, the future is very bright and as Indian manufacturers improve quality and embrace technology, the world will soon realise India’s potential as the next global auto manufacturing hub. Source: Home - Livemint.com | 29 Aug 2008 | 10:05 am Roadshows abroad to showcase India’s ‘Incredible Monsoon’New Delhi: Aiming to woo tourists to visit India during the off-season monsoon periods, the Tourism Ministry has finalised an action plan that includes roadshows in foreign countries. “There will be roadshows showcasing Indian monsoons in countries like Middle East, West Asia, USA and Northern Europe in a concerted way,” said Leena Nandan, Joint Secretary, Tourism Ministry. The arrival of tourists slows down during the months of June to September, considered as off-season. Though there are winter destinations and also summer destinations, the monsoon period has not been fully exploited yet. “We will be launching a joint promotion campaign with states to promote monsoon. Special monsoon packages are being worked with tour operators to attract tourists. There is also a need to create awareness about the beauty of our monsoon,” she said. While mentioning about the flood-ravaged areas, she said “there are certain problems associated with rains. But nevertheless monsoon is so intrinsic to Indian lives and it is felt all over the country.” According to the plan, innovative promotion campaigns will be launched to promote ‘Incredible Monsoon´. Besides showcasing landscape, mountains, lush green fields during monsoon, the houseboat cruises in enchanting showers will be part of the campaign. Since Ayurvedic treatment is more effective in humid weather, there will be Ayurveda rejuvenation holiday packages. Though some states like Goa, Kerala, Karnataka, and Mahrashtra are already offered monsoon packages, it has to be done in a more organised way to have the desired effect, Nandan said. Source: LatestNews-Home - Livemint.com | 29 Aug 2008 | 10:03 am Sales tax on aviation fuel may be reduced: CM - Times of India
Source: Google News India - Business | 29 Aug 2008 | 9:52 am FMC not to hike penalty, mulls other alternativesNew Delhi: Commodity market regulator Forward Markets Commission (FMC) has rejected traders and exporters demand to hike the delivery default penalty. The commission is working on other alternatives to tighten the system. “Imposing hefty penalty is not the only solution. Now we cannot raise it as it was recently slashed to 2.5% from 8% to converge spot and futures prices,” said B.C Khatua, FMC Chairman. The Agricultural Produce Marketing Committee (APMC) of Unjha, Gujarat, has urged FMC that it should either hike penalty up to 25% on sellers or ensure 100% delivery of the commodity. Jeera exporters have also complained of the delivery defaults as sellers can exit the market by paying only 2.5% of the traded contract amount as penalty. Khatua said, “Apart from the penalty provision, we are working on other alternatives to penalise defaulters.” One of the options, which FMC is working on currently, is that the exchange should buy and ensure the delivery of commodity to the opposite party and recover the differences in the futures and spot prices from the defaulter. Since delivery of a number of farm commodities in the futures market have been made compulsory, the regulator has received complaints from traders and exporters that low penalty provision is encouraging more defaults. Khatua pointed out that defaults are not very large in many cases, still they were tightening the system to ensure healthy trading practises. On the other hand, the leading agri commodity bourse National Commodity & Derivatives Exchange Ltd (NCDEX) denied any delivery defaults. “We do not have any cases of defaults as all contracts are settled as per the contract terms stipulated in all contracts,” NCDEX Chief Business Officer, Unopam Kaushik said. He termed the allegation as baseless when pointed out that jeera contracts on NCDEX have maximum delivery defaults as alleged by the traders and exporters. Kaushik added: “In futures trading, the exchange is a price discovery and risk hedging platform and not a delivery platform for compulsory delivery contracts”. He said that all the liquid contracts of NCDEX are running successfully with the present penalty structure. After the penalty was reduced in October last year, jeera delivery on NCDEX has dipped as low as 30 tons in May this year from a level of 750 tons in November 2007. In July, 234 tons of jeera were delivered through the exchange, which has seen a significant slump in the delivery volume in the last one year, according to NCDEX data. Source: LatestNews-Home - Livemint.com | 29 Aug 2008 | 9:41 am India's gold firm, demand slows as dips eyedMUMBAI (Reuters) - India's gold prices firmed up on Friday, slowing down the momentum of purchases, but dealers said dips could rekindle demand as consumers' appetite remained strong in the festival season.Source: Reuters: Money News | 29 Aug 2008 | 9:31 am INTERVIEW - Falling prices hurting German unit - Dr Reddy'sBANGALORE (Reuters) - Indian drug maker Dr Reddy's Laboratories Ltd is facing significant pressure on its business in Germany as regulations and growing competition drive down prices, its chief executive said on Friday.Source: Reuters: Money News | 29 Aug 2008 | 9:17 am India growth at 3-½ yr low but rates to stay tightNEW DELHI (Reuters) - India's economy grew at its slowest annual rate in 3-½ years in the June quarter, losing momentum as services slowed markedly, but high inflation meant the central bank was unlikely to relax its monetary stance soon.Source: Reuters: Money News | 29 Aug 2008 | 9:13 am AI working on new booking system for passengersOn the first anniversary of the merger of Air India and Indian, National Aviation Company of India Ltd (NACIL), the newly created entity, is focusing on increasing passenger comfort and on ways to cut costs so as to bring the airline back into profitability.Source: Moneycontrol Top Headlines | 29 Aug 2008 | 9:11 am Intel showcases prototypes of Atombased devicesIndian consumers could look forward to Internetcentric desktop devices, that would support basic computing such as Word and Excel, emails, casual gaming and Net capabilities, at a price point starting at Rs 5,000 over the coming months.Source: Moneycontrol Top Headlines | 29 Aug 2008 | 9:01 am Mumbai sees sharp fall in property pricesProperty prices in India\'s biggest market Mumbai may be headed for a sharp fall. In redevelopment projects, prices have crashed 50% in a year.Source: Moneycontrol Top Headlines | 29 Aug 2008 | 9:00 am BHEL wins Rs1,155 crore contract from GVK PowerNew Delhi: State-run Bharat Heavy Electricals (BHEL) has bagged a Rs1,155 crore order from GVK Power for supplying and installing equipments at a power project in Punjab. According to a release issued by the company: “BHEL has won the contract from GVK for setting up 2x270 MW electricity generating units at Goindwal Sahib Thermal Power Project in Punjab” The company’s scope of work in the project includes design, engineering, manufacture, supply, erection and commissioning of steam turbines, generators, boilers and associated auxiliaries. Boilers and its auxiliaries would be manufactured at the company’s Tiruchirapalli plant, while generators and turbines at the Haridwar plant. The pumps and heat exchangers at its Hyderabad unit and electricals at the Bhopal unit. This is the second order secured by BHEL for the 270 MW units which are slated to be synchronised during the 11th Plan Period 2007-12. BHEL has enhanced its manufacturing capacity to 10,000 MW per annum which is being further increased to 15,000 MW per annum in the next two years at a total investment of Rs4,200 crore. It is also planning to manufacture high-rating hydro sets and advance class gas turbines to cater to the upcoming market requirement. Source: Home - Livemint.com | 29 Aug 2008 | 8:48 am Gold firms near 2-week highs on oil, physicals supportSINGAPORE (Reuters) - Gold rose nearly $7 the back of firmer oil prices on Friday, hovering near its highest level in more than two weeks, with demand from jewellers ahead of the festive season in Asia also offering additional support.Source: Reuters: Money News | 29 Aug 2008 | 8:46 am Gammon to construct Rs800 cr Godavari bridge projectMumbai: Gammon Infrastructure has bagged a Rs800 crore project from the Andhra Pradesh government for constructing a bridge across river Godavari. Gammon has received the letter of allotment for constructing, financing and maintaining, on build, operate and transfer (BOT) basis, a major bridge across the river Godavari connecting Rajahmundry and Kovvur. “The total cost to complete the project has been estimated by the company at Rs800 crore. Gammon would receive a total grant of Rs207.55 crore from the Central and State governments during the construction and operation period of the project,” the company said in a filing to the BSE. The concession period of the project is 25 years, including a construction period of three years. Shares of the company reacted positively on the report and surged 17.47% over its previous close. It witnessed an intra-day high of Rs110.25. The scrip was later trading at Rs105.40, up 12.31 on the BSE in morning trade. Source: Home - Livemint.com | 29 Aug 2008 | 8:37 am India kicks off FX futures trade, front-months leadMUMBAI (Reuters) - India launched exchange-traded rupee futures on Friday, with the front-month contracts seeing the highest activity in heavy trade, but dealers said volumes may wane after the initial burst of interest.Source: Reuters: Money News | 29 Aug 2008 | 8:33 am Microsoft to buy online survey firm for $486 millionMicrosoft on Friday announced its first major deal since failing to buy Yahoo Inc, agreeing to acquire Web-based survey company Greenfield Online Inc for about $486 million. The deal gives Redwood, Washington-based Microsoft access to Greenfield’s Ciao.com, a popular price comparison and consumer reviews site in Europe. Its $17.50-per-share offer betters an earlier proposal by media-focused US buyout firm Quadrangle Group to acquire the company for $15.50 a share. Microsoft said it will sell off Greenfield Online’s main business - Internet survey solutions, which accounts for about 75% of the company’s overall revenue. The division sells consumer opinions in the form of survey responses to marketing research companies and end users. Microsoft did not name the buyer. Microsoft and Greenfield expect both deals to close during the fourth quarter of 2008. On August 26, Greenfield had said it had received a $17.50 per share acquisition offer but did not reveal the bidder. The offer represents a premium of about 10%, based on Greenfield Online’s closing share price on August 25. Greenfield said it would pay Quadrangle $5 million as termination fee. Source: Home - Livemint.com | 29 Aug 2008 | 8:30 am Microsoft to buy online survey firm for $486 millionMicrosoft on Friday announced its first major deal since failing to buy Yahoo Inc, agreeing to acquire Web-based survey company Greenfield Online Inc for about $486 million. The deal gives Redwood, Washington-based Microsoft access to Greenfield’s Ciao.com, a popular price comparison and consumer reviews site in Europe. Its $17.50-per-share offer betters an earlier proposal by media-focused US buyout firm Quadrangle Group to acquire the company for $15.50 a share. Microsoft said it will sell off Greenfield Online’s main business - Internet survey solutions, which accounts for about 75% of the company’s overall revenue. The division sells consumer opinions in the form of survey responses to marketing research companies and end users. Microsoft did not name the buyer. Microsoft and Greenfield expect both deals to close during the fourth quarter of 2008. On August 26, Greenfield had said it had received a $17.50 per share acquisition offer but did not reveal the bidder. The offer represents a premium of about 10%, based on Greenfield Online’s closing share price on August 25. Greenfield said it would pay Quadrangle $5 million as termination fee. Source: Tech News - Livemint.com | 29 Aug 2008 | 8:30 am Govt to amend AERAI Bill to appoint ombudsmanNew Delhi: Government today decided to amend a Bill to appoint an ombudsman for regulating tariff structure at all airports and also competition among fuel suppliers . The Union Cabinet, at its meeting chaired by Prime Minister Manmohan Singh, decided to accept several recommendations of the department-related Parliamentary Standing Committee on the Airports Economic Regulatory Authority of India Bill, 2007. “The Cabinet decided to move amendments to the Bill, pending in Lok Sabha since last September, in the coming session of Parliament,” said Science and Technology Minister Kapil Sibal. Once the Bill is approved, it would be notified in three months, a Civil Aviation Ministry spokesperson said. The Standing Committee had, among several things, recommended that AERA should be empowered to decide on both aeronautical and non-aeronautical services tariffs and the fuel supply infrastructure at airports should be brought under its purview. Besides, it wanted the authority’s functions to cover all airports across the country, irrespective of size or ownership. Source: Home - Livemint.com | 29 Aug 2008 | 8:17 am Reliance Money starts operations in EuropeMUMBAI (Reuters) - The broking unit of India's Reliance Capital said on Friday it had launched operations in the UK and Ireland to tap the Indians living in Europe.Source: Reuters: Money News | 29 Aug 2008 | 8:04 am Security tightened at Tata Motors' Singur factorySecurity at the Tata Motors' Nano plant at Singur in West Bengal was tightened Friday, a day after pro-farmer organisation Paschimbanga Kshet Mazur Samiti (PKMS) staged a demonstration in front of the factory, preventing hundreds of workers from leaving the plant.Source: IndiaeNews.com: Business News | 29 Aug 2008 | 8:02 am Centre will not intervene in Singur standoffEven as the standoff persists over the Tata Motors' Nano car project in Singur, the central government Friday made it clear that it will not intervene in the issue and underlined the need for "balancing investment and justice'.Source: IndiaeNews.com: Business News | 29 Aug 2008 | 8:01 am Veterans slog to save dying crafts of IndiaObaidur Rehman is 66 and suffers from a recurring eye problem. Gendilal is six years older. The two, like many others of their age, have a link - work long hours, not only to earn their livelihoods but to keep India's traditional crafts alive.Source: IndiaeNews.com: Business News | 29 Aug 2008 | 8:01 am India's economic growth dips to 7.9 percentIndia's economic growth slipped to 7.9 percent during the first quarter of this fiscal from 9.2 percent for the corresponding period of the previous year amid concerns over the impact of central bank's tight monetary policy.Source: IndiaeNews.com: Business News | 29 Aug 2008 | 8:00 am Equity markets stay in the green early afternoonIndian equitiy markets stayed in the green early Friday afternoon. There was buying interest in realty, banking and oil and gas stocks.Source: IndiaeNews.com: Business News | 29 Aug 2008 | 8:00 am ONGC takeover target Imperial Energy says cuts lossesLondon: Imperial Energy, facing a takeover by Indian peer ONGC, said on Friday, 29 August, that it had reduced its losses during the first half of 2008. The Russia-focused British company said in an earnings release that its net loss stood at $18.9 million (€12.8 million) in the six months to 30 June, compared with a loss after tax of $20.7 million during the first half of 2007. Indian state-run oil giant ONGC had on Tuesday announced a $2.6-billion deal to buy Imperial Energy as it seeks new fuel sources to power the country’s fast-growing economy. The bid by India’s biggest oil producer, Oil and Natural Gas Corp (ONGC) for Imperial Energy offered shareholders a 62 percent premium on the stock price on 11 July, the day before the company said it had received a takeover approach. Source: Home - Livemint.com | 29 Aug 2008 | 7:16 am ONGC takeover target Imperial Energy says cuts lossesLondon: Imperial Energy, facing a takeover by Indian peer ONGC, said on Friday, 29 August, that it had reduced its losses during the first half of 2008. The Russia-focused British company said in an earnings release that its net loss stood at $18.9 million (€12.8 million) in the six months to 30 June, compared with a loss after tax of $20.7 million during the first half of 2007. Indian state-run oil giant ONGC had on Tuesday announced a $2.6-billion deal to buy Imperial Energy as it seeks new fuel sources to power the country’s fast-growing economy. The bid by India’s biggest oil producer, Oil and Natural Gas Corp (ONGC) for Imperial Energy offered shareholders a 62 percent premium on the stock price on 11 July, the day before the company said it had received a takeover approach. Source: World Business - Livemint.com | 29 Aug 2008 | 7:16 am Chidambaram: Economy to grow close to 8 pct in FY09MUMBAI (Reuters) - India's economy should grow close to 8 percent in the fiscal year ending March 2009, and the government will meet its fiscal deficit responsibility targets, Finance Minister Palaniappan Chidambaram said on Friday.Source: Reuters: Money News | 29 Aug 2008 | 7:13 am Nikkei sees biggest 1-day gain in over 3 weeksTokyo: Japan’s Nikkei stock average climbed 2.4% on Friday, its biggest one-day percentage gain in over three weeks, as Canon Inc. and other exporters rose after surprisingly strong US GDP data temporarily eased fears about its economic health. Banks climbed as well, with top lender Mitsubishi UFJ Financial Group and its peers rising after US banks gained on the brighter economic outlook and a management shake-up at top mortgage financial company Fannie Mae. But Fujifilm Holdings plunged 12.4%, its biggest one day loss in 21 years, after the company slashed its profit forecast by almost a quarter due to higher raw materials costs and a sharp price fall for digital cameras. The Nikkei rose 3.2% on the week but slid 2.3% for the month, its third consecutive month in negative territory. Market players were sceptical about Friday’s gains. “Yes, the US GDP figures were good, but this is old data, as of the end of June,” said Masayoshi Okamoto, head of dealing at Jujiya Securities. “The Nikkei has responded strongly but we can’t say it’s gained on reasons that are sustainable. Everything could easily be erased next week.” Others pointed out that fund managers were buying shares to increase the value of their positions before closing books for the month. “What we’re really seeing here is month-end window-dressing,” said Hideyuki Ishiguro in the investment strategy department of Okasan Securities. The benchmark Nikkei gained 304.62 points to 13,072.87 and marked its greatest one-day percentage gain since 6 August. The broader Topix rose 2.9% to 1,254.71. Source: LatestNews-Home - Livemint.com | 29 Aug 2008 | 6:38 am Hyundai plans export of ‘completely knocked down’ kitsCompany to invest Rs 200 cr in new press shop. Chennai, Aug. 28 Hyundai Motor India Ltd, the country’s largest exporter of passenger cars, now plans to export vehicle kits in ‘completely knocked down’ condition. ...Source: Business Line - Home Page | 29 Aug 2008 | 12:00 am No special dispensation for LIC in new investment normsIRDA for phased dilution of investments. Hyderabad, Aug. 28 The new investment norms announced by the Insurance Regulatory and Development Authority (IRDA) will apply to all entities in the insurance industry, including Life Insurance ...Source: Business Line - Home Page | 29 Aug 2008 | 12:00 am Primary articles, fuels pull down inflationEarly signs of moderation, says Govt. New Delhi, Aug. 28 An easing of inflation levels among primary articles and fuel items pulled down headline inflation, with the Government terming the dip as “early signs of moderation”. ...Source: Business Line - Home Page | 29 Aug 2008 | 12:00 am iPhone gets lukewarm responsePRICING PAINS. New Delhi, Aug. 28 The much hyped iPhone has so far received a lukewarm response from Indian consumers. According to industry estimates, both Bharti Airtel and Vodafone Essar have not been able to sell more than 1,500 phones in ...Source: Business Line - Home Page | 29 Aug 2008 | 12:00 am Adlabs Films (Rs 469.45): SellWe recommend a sell in Adlabs Films from a short-term perspective. It is apparent from the charts of Adlabs Films that it has been on an intermediate-term downtrend from its early May high of Rs 789. However, the stock found support at around Rs ...Source: Business Line - Home Page | 29 Aug 2008 | 12:00 am 3G spectrum for CDMA operators to be auctionedMove follows TRAI’s objections to subscriber-linked allocation. New Delhi, Aug. 28 Changing its earlier decision, the Communication and IT Ministry on Thursday said that 3G spectrum for CDMA operators will be auctioned. This is a shift ...Source: Business Line - Home Page | 29 Aug 2008 | 12:00 am Wipro to expand in SEZs; plans Rs 1,500-cr spendTo add 6-8 million sq-ft space in 24-36 months. Chennai, Aug. 28 Wipro Technologies Ltd will spend nearly Rs 1,500 crore during this fiscal in infrastructure addition across the country, and plans to add 6-8 million sq ft of space in the next ...Source: Business Line - Home Page | 29 Aug 2008 | 12:00 am NTPC’s investment powers nearing the limitMay hit PSU’s participation in competitive bidding. NTPC, the country’s largest power generator, is close to hitting the limit of its powers to make investments autonomously. ...Source: Business Line - Home Page | 29 Aug 2008 | 12:00 am Day Trading GuideThe stock is experiencing selling pressure at higher level. Fresh short-position can be initiated, if the stock declines below its 50-day moving average at Rs 1,680, with tight stop loss. ...Source: Business Line - Home Page | 29 Aug 2008 | 12:00 am DLF chief takes home Rs 7.9 cr as remuneration in FY08New Delhi, Aug. 28 Real estate baron and Chairman of India’s largest realty firm DLF, Dr K.P. Singh, took home close to Rs 7.9 crore in overall remuneration for the year ended March 2008, double the remuneration for the previous year, in ...Source: Business Line - Home Page | 29 Aug 2008 | 12:00 am Rentals nip at Levi's marginsIndia may be one the fastest growing markets for the American denim brand Levi's, but exorbitant property rentals in the country have put its margins under pressure.Source: Daily News & Analysis: Money News | 28 Aug 2008 | 10:49 pm Mudra rolls out design consultancyThe Mudra Group has launched Water, a brand strategy and design consultancy.Source: Daily News & Analysis: Money News | 28 Aug 2008 | 10:48 pm Oriental sees taxman calling this year tooOriental Insurance is likely to continue to pay towards capital gains tax this year too.Source: Daily News & Analysis: Money News | 28 Aug 2008 | 10:45 pm Reddy wants to leave RBI?Reserve Bank governor Y V Reddy is believed to have informed the government that he doesn't want to continue beyond his tenure, which expires on September 5.Source: Daily News & Analysis: Money News | 28 Aug 2008 | 10:44 pm ICICI's Kalpana Morparia is JPMorgan India CEOAt the ICICI Bank press conference to announce the bank's 2007-08 annual results on April 26, one couldn't help but notice the change of guard.Source: Daily News & Analysis: Money News | 28 Aug 2008 | 10:42 pm When your home loan repayment stretches to infinitySavitha B got a shock recently. With increasing interest rates, the remaining tenure on her home loan went up to 65 years.Source: Daily News & Analysis: Money News | 28 Aug 2008 | 10:40 pm Greater Noida airport plan shot downThe Attorney General (AG) has made it clear that no new airport can come up in the National Capital Region till capacity at the existing Delhi International Airport (DIAL) has been saturated.Source: Daily News & Analysis: Money News | 28 Aug 2008 | 10:40 pm City gas distribution revolution nearsAfter telecom and insurance, a gas revolution will hit the country in the next two years. That's what L Mansingh, the chairman of the PNGRB, believes.Source: Daily News & Analysis: Money News | 28 Aug 2008 | 10:38 pm Ispat nears raw material JVsIspat Industries is beefing up its raw material linkages on both overseas and domestic fronts and is close to forming joint ventures in Colombia and Brazil for coking coal and iron ore.Source: Daily News & Analysis: Money News | 28 Aug 2008 | 10:34 pm Did Sarbanes-Oxley miss a trick during subprime?During the recent subprime crisis in the highly interconnected banking and financial services in the US, banks did not seem to know one another’s appetite for risk. They (and other investors) also do not seem to have been able to rely on auditors and rating agencies of counterparties to provide an objective measure of the latter’s financial position. This is surprising in a post-Sarbanes-Oxley world, where almost all information and controls are supposed to be monitored.  Many of the organizations that have between them written off over a hundred billion dollars of value during the so called subprime crisis were audited and were subject to the rigours of SOX. It should be fair to assume that the same process was carried out at Citibank, Merrill Lynch, UBS and Bear Sterns. The public would surely want to know why SOX, a law that has more teeth than a buzzsaw, missed it and what can be done to prevent a recurrence of such a crisis. The Sarbanes-Oxley process asks some hard questions. Auditors are expected to query the tone at the top, i.e., the approach of the senior management to risk and controls. They are asked to explicitly review reports of credit agencies, internal auditors and risk management committees and comment on the same. Most specifically, there is an expectation that there will be a long and hard look at any liability that is off balance sheet and which may become contingent on the company at a later point in time. In a similar vein, rating agencies do look closely at the now maligned securitized contracts, often requiring of banks the credit history for each pool of securities on a monthly or quarterly basis. When such pools are not being collected, warnings and downgrades are expected to come sooner than later. These questions are not asked casually over a beer at the closest pub. They are required to be responded to with written evidence and sign offs from the senior management. It is difficult to be persuaded, as many articles have us believe, that “nobody understood what the risks of subprime lending was”. Opacity is rarely accepted by either auditors or rating agencies as an argument. When something is complex to understand or unclear, there is a duty of responsibility to err on the side of conservatism and raise a red flag. Competition, that most important requisite of a well-functioning economy, requires free and impartial sharing of information. Firms that truly run their business well are the ones that ought to obtain capital from the markets, and others should find the going difficult. Audit firms and credit rating agencies are often the oil that lubricates these markets and this time they seem to have missed a trick. Although there has been no evidence so far of wilful misrepresentation by either the auditors or rating agencies as was the case during the corporate crises involving Enron and WorldCom, this is the more worrisome aspect of the current crisis. If we cannot understand what were the root causes of the watchdogs having missed signals that they are paid to look for and report, there is no way to avoid these in future. So, how can we improve transparency in the system? In order to further insulate rating agencies from the pressures of their client, it will make sense to make investors rather than issuers of debt pay for the rating and also place a restriction on raters from doing other business with their clients. Similar restraints were placed on statutory auditors through Sarbanes-Oxley. It would also be desirable to be able to have a more detailed description of the rationale underpinning the rating given by credit raters and an exposition of why the raters believe what is placed before the shareholders to be true. It would also be useful to make public what new data leads to downgrades, and whether it might have been possible to guess that event earlier. There is no single answer to this issue. What is however clear is that within five years of the implementation of one of the most stringent laws in the world, we again face a situation where shareholders are not able to rely on custodians of accuracy. Rating agencies and audit firms would do well to examine why they missed signs of a crisis and make these reasons public so that others may avoid those pitfalls in future. Govind Sankaranarayanan is CFO, Tata Capital Ltd. He will write every other Friday on issues related to governance. The views expressed in this column are personal. Write to him at ruleofthumb@livemint.com Source: World Business - Livemint.com | 28 Aug 2008 | 8:08 pm Rakesh Mohan front-runner?Reserve Bank of India Deputy Governor Rakesh Mohan has emerged as the front-runner to succeed Y Venugopal Reddy as the next governor of the RBI.Source: Business Standard | Front Page Headlines | 28 Aug 2008 | 7:22 pm Singur turns Bengal promoters generousThe surprisingly strong opposition to land acquisition in Singur and earlier events at Nandigram, where local protests forced the government to scrap plans for a chemical hub, have induced investorsSource: Business Standard | Front Page Headlines | 28 Aug 2008 | 7:20 pm Deccan to get new call sign, to be rebranded Kingfisher RedLow-cost carrier Simplify Deccan will be rebranded Kingfisher Red, a separate brand identity from Vijay Mallya-promoted full-service carrier Kingfisher Airlines.Source: Business Standard | Front Page Headlines | 28 Aug 2008 | 7:18 pm Great Eastern Energy plans 'sponsored' issueA first for Indian markets, AIM-listed firm looks for liquidity.Source: Business Standard | Front Page Headlines | 28 Aug 2008 | 7:15 pm India clinches Asean FTAConsumers can expect duty-free imports of a range of products like capital goods, some textiles, electronic goods and chemicals from next year after India successfully concluded negotiations on a FreeSource: Business Standard | Front Page Headlines | 28 Aug 2008 | 7:14 pm Tata Steel Global eyes $1 bn PE dealMumbai: Tata Steel Global Holding Pte Ltd, the Singapore-based subsidiary that owns the international steel and mining assets of Tata Steel Ltd, the country’s largest steel maker, is in talks to raise at least $1 billion (about Rs4,400 crore) through private equity (PE) transactions or a private placement of shares with institutional investors, and likely use the money to fund the purchase of a coal or iron ore mine or part of one. In the wake of a sharp surge in raw material prices, Tata Steel and other Indian steel makers are looking to acquire iron ore, limestone and coal mines abroad. The private equity deal could be in exchange for an 8-10% stake in Tata Steel Global, said a senior transaction adviser at a multinational investment bank operating in India who is familiar with the development. See:Funding matters This would peg the subsidiary’s enterprise value at more than $12 billion. The current market capitalization, or market value, of the parent Tata Steel in local bourses has slipped just below $10 billion, following a slump in domestic equity markets this year. A second investment banker, with another foreign firm, confirmed that Tata Steel is in discussions with private equity firms and some other large funds. Both bankers did not want to be identified as the deal hasn’t been finalized yet. A Tata Steel Ltd spokesperson, in reply to a detailed email query, said he was “not in a position to comment”. Two analysts said the move is logical. “Tata Steel is looking to buy overseas coal assets,” said Manish Sonthalia, head of equity research at local brokerage Motilal Oswal Financial Services Ltd. Loans taken for funding the company’s Corus acquisition have been taken care of and there is no need for fresh loans, he added. Tata Steel plans to buy assets, mainly iron ore, coal and limestone mines, worth $2 billion, said a steel sector analyst at a foreign brokerage in India who did not wish to be named. The fund-raising could only have a positive impact on the parent firm’s shares traded locally, he added. Tata Steel Global’s assets include British steel maker Corus, Tata Steel Thailand (formerly Millennium Steel), Tata Steel Global Minerals and NatSteel Asia. Corus, Europe’s second largest steel producer with annual revenues of around £12 billion and annual crude steel production of more than 20 million tonnes (mt), was acquired by Tata Steel in 2007 for £6.2 billion. While Tata Steel’s operations in India have sufficient primary raw material such as iron ore to feed its plant in Jamshedpur, it has to import a third of the coal it needs. Corus is also largely dependent on long-term contracts with suppliers and so-called spot purchases. This has been hurting Tata Steel’s consolidated results since the acquisition, as the British steel maker accounts for nearly one-third of the parent company’s consolidated revenue. The two entities together hold reserves to meet just about 20% of their raw material requirements, increasing the cost of steel production. Steel companies are scrambling to grab whatever mining assets they can as iron ore prices have nearly doubled this year coking coal rates have surged threefold. “The perception of risk on the global subsidiary holds more for the UK steel firm,” said a third analyst who tracks Tata Steel for another foreign brokerage. According to this analyst, though the outlook for Indian steel companies is not bright in the current environment, it is unlikely to affect valuation of Tata Steel Global. Tata Steel, which was valued at Rs68,312 crore early this year, has seen a 39% slump in its market capitalization to stand at Rs41,775 crore as on Thursday. The stock, part of India’s benchmark index Sensex, fell 1.65% to close at Rs571.80 on the Bombay Stock Exchange on Thursday, while the 30-stock benchmark index fell 1.75%, or 248.45 points, to end at 14048.34. The Sensex has fallen by at least 30% this year. Tata Steel, along with its associates, has operations in 24 countries and commercial presence in more than 50 nations. The company is looking at forming iron-ore and coal ventures in Mozambique and is scouting for limestone ventures in Oman, chairman Ratan Tata said at the company’s shareholder meeting on Thursday. Tata Steel Ltd said on Thursday its consolidated net profit, including Corus, surged 60% to Rs3,900 crore in the first quarter ended 30 June, on increased prices and output of high-grade products. Excluding Corus, the company had last month posted a 22% jump in June-quarter profit to Rs1,422 crore. Debarati Roy and Paresh Jatakia of Bloomberg contributed to the story. Source: World Business - Livemint.com | 28 Aug 2008 | 6:40 pm Dell’s old direct sales strategy works in IndiaNew York: Maligned by analysts in the US for relying too long on selling personal computers (PCs) over the Internet,Dell Inc. is making headway with that old strategy in what may prove a more important market: India.  Logging gains: A file photo of Michael Dell. The Dell Inc. CEO was in India earlier this month to show off the biggest upgrade to its business machines in six years--models that have longer battery life. Photograph: Harikrishna Katragadda / Mint Dell is gaining market share because much of the demand in India comes from corporations, which are increasingly bypassing resellers and buying directly over the phone or the Internet and from sales staff. Focusing on developing countries may help Round Rock, Texas-based Dell surmount an economic slump in the US, which has pinched technology budgets. “Dell’s direct sales method gives it the inside track with large, sophisticated enterprises,” said Louis Miscioscia, a Boston-based analyst with Cowen and Co. He advises investors to buy the shares and doesn’t own any. Hewlett-Packard Co. (H-P) also is having a strong run in India, increasing market share to 18.4% in the first quarter from 13.1% in the same period in 2005, according to IDC in Framingham, Massachusetts. Dell’s share of Indian PC shipments climbed to 7.6% from 3.1%. Both have won customers from India’s HCL Technologies Ltd and smaller competitors. Dell, the world’s second largest PC maker, was to report earnings after US markets closed on Thursday. Overseas sales probably surpassed revenue at home for the second straight quarter, said Frost and Sullivan Inc. analyst Daniel Longfield in San Antonio. Dell doesn’t break out sales in India, saying only that growth there reached 52% in its first quarter. According to the Bloomberg survey of 12 analysts, net income in the second quarter ended 1 August may have dropped 3.6% to $719.2 million, or 36 cents a share, crimped by costs to win consumer business by signing up retail partners. Dell spokesman David Frink declined to comment before the results come out. Chief executive officer Michael Dell, in the second year of a plan to revive flagging sales growth, is trying to catch up with bigger rival H-P, which gets two-thirds of revenue outside the US. He flew to India this month when he wanted to show off the biggest upgrade to Dell’s business machines in six years, seeking to tempt customers with models that have longer battery life. On Wednesday, the company announced plans to sell four new PCs aimed at small and medium-size businesses in China and 20 other emerging markets. H-P sells both directly to customers and through resellers in India, company spokeswoman Emma McCulloch said. H-P doesn’t provide a breakdown of sales through the different channels. Dell shares have climbed 40% since mid-April, compared with a 2.1% increase for H-P, amid optimism that the turnaround is taking hold. Dell advanced 46 cents, or 1.8%, to $25.63 on Thursday in Nasdaq stock market trading. “Dell’s rise from $20 a share to $25 reflected a realization that Dell was not such a chump of a company,” said Clay Sumner, an analyst with Arlington, Virginia-based Friedman, Billings, Ramsey and Co. He advises shareholders to buy the stock and doesn’t own any. It is becoming tougher for short sellers to cover bets on Dell, a sign the share price may rise further. The short interest ratio, or short interest as a percentage of daily volume, rose to 2.82, the highest in two years, ahead of Dell’s report. Short sellers sell borrowed shares, betting they can buy them back at a lower price. Because the stock is rising, short sellers may need to cover their positions soon. Dell, 43, abandoned the direct-sales-only strategy to win over more consumer customers, who have fuelled growth in the US. Analysts including Benjamin Reitzes, then of UBS AG, criticized him for ignoring consumers when they were spending the most. Dell has added more than 13,000 retail locations since May 2006. “If you want to be the market leader in any electronic device, you have to move beyond direct only and have multiple sales channels,” said Frost’s Longfield. In some emerging markets, where consumers are buying more PCs than they do in India, Dell is pushing retail harder. In China, the company has about 3,500 retail sites, compared with the 40 it will have by the end of the year in India. While Dell has added retail partners and resellers in India, including Tata group’s Croma stores, the company said it has no plans to shift its focus from the direct strategy that serves it so well in India. Harichandan Arakali in Bangalore contributed to this story. Source: Tech News - Livemint.com | 28 Aug 2008 | 5:35 pm PMO to have final say on Lutyen's Zone: apex courtThe tree-lined spacious Lutyens Bungalow Zone (LBZ) in the heart of the national capital will get to retain its picturesque character. The Supreme Court Thursday endorsed the prime minister's exclusive power to enforce low-rise building norms in the high-security zone where ministers and senior politicians have their homes.Source: IndiaeNews.com: Business News | 28 Aug 2008 | 5:30 pm Rehabilitation package finalised for Durgapur aerotropolisThe West Bengal government Thursday finalised the rehabilitation package for people who would be displaced by the Durgapur aerotropolis project, a top official said here.Source: IndiaeNews.com: Business News | 28 Aug 2008 | 5:30 pm Margin will squeeze due to high input cost: Ratan TataTata group chairman Ratan Tata Thursday said the profit margin of the group companies may suffer due to the high prices of raw materials.Source: IndiaeNews.com: Business News | 28 Aug 2008 | 5:02 pm 20 IT firms to take part in Kerala human resource summitTwenty IT companies, including industry leaders like Tata Consultancy Services (TCS), Satyam Computers and Wipro Technologies, are expected to take part in a human resource (HR) summit to be held in Kozhikode, Kerala, Saturday.Source: IndiaeNews.com: Business News | 28 Aug 2008 | 5:01 pm General Motors all set to invest in MaharashtraPTI Mumbai: General Motors India said that it is planning to invest $200 million in Talegaon, Maharashtra to set up a powertrain facility. The investment is in addition to $4300 million the company has already invested for making cars in the state. “We cannot remain a global industry leader without a strong presence in the high-growth market of India,” said Karl Slym, General Motors India President and Managing Director after signing an agreement for the powertrain facility with the state government. “This will enable us to capture more opportunities in one of the fastest-growing vehicle markets in the world. The company is also working on small-car project, which we will be launching in India next year,” Slym said. “Our engineers are working on it in our Bangalore centre. The small car will be for the global market. GM’s small-car would not compete with Tata’s Nano,” he said. The company has a production facility in Halol, Gujarat. The Halol facility can make up to 85,000 cars per annum where the company has invested Rs1,400 crore. The powertrain facility would have an annual production capacity of 1.6 lakh engines with the capability of being expanded to 3 lakh engines. “The expansion would require investments up to $800 million in the next seven years,” Slym said. The total car production of GM would touch 2.25 lakhs per annum when the Talegaon facility goes on stream in the first quarter of 2010. “The Talegaon facility would be used for domestic market consumption, but eventually exports would be done from this facility too,” he said. “The work on the Talegaon facility for powertrain would begin immediately,” Slym said. Both the powertrain and car manufacturing facilities in Talegaon would provide employment to 1,400 people. Besides India, GM has invested in China, Korea and Russia. Source: World Business - Livemint.com | 28 Aug 2008 | 11:32 am Indra Nooyi among world’s most powerful business womenPTI New York: Led by soft drink giant PepsiCo’s chief Indra Nooyi, business executives account for nearly two-third of the world’s 100 most powerful women’s list compiled by US magazine Forbes. Chennai born Nooyi has moved up to the third rank in this year’s list, from the fifth last year, to become the top-ranked among all the corporate chiefs on the list. The list has been topped by Germany’s Chancellor Angela Merkel, followed by Sheila C. Bair, who chairs the US government agency Federal Deposit Insurance Corp. The Pepsico chief is followed by health insurance company WellPoint’s President and CEO Angela Braly, diversified mining group Anglo American CEO Cynthia Carroll and Kraft Foods CEO and chairperson Irene B Rosenfeld. Besides, Singapore Government’s investment arm Temasek Holdings’ CEO Ho Ching has dropped to the eighth place in the list this year from the third rank in the last year’s list. About Nooyi, Forbes said, “Nooyi continues to grow PepsiCo, $39-billion food and beverage giant, through new product offerings and acquisitions. She orchestrated a major expansion into international markets, most notably with a $1.4 billion acquisition of a 75% stake in Russian juice giant Lebedyansky.” While, there are only three Indians on the list and only one of them — Biocon’s Kiran Mazumdar-Shaw — heads a corporate entity. The other two, Sonia Gandhi and Mayawati, are political leaders. Source: World Business - Livemint.com | 28 Aug 2008 | 10:58 am
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