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Praful Patel calls for lower airfaresThe Finance Minister has announced that the government will introduce a Bill in the Parliament to give ATF, or airline turbine fuel, declared goods status, giving in to a longstanding demand of domestic carriers. At the same time the government is talking tough too, asking airlines to reduce fares or lose sympathy. Swati Khandelwal reportsSource: Moneycontrol Top Headlines | 24 Nov 2008 | 8:27 pm See 30% drop in residential realty prices: Goldman SachsIndia\'s property market is poised for a deep correction. That\'s Goldman Sachs view of where prices are headed in the residential sector of the Indian real estate market. CNBCTV18s Priyanka Ghosh gets the details.Source: Moneycontrol Top Headlines | 24 Nov 2008 | 8:15 pm Crisis fallout: GE Cap, RBS restructure, lay off employeesAs economies around the world slowdown, global financial institutions like GE Capital and RBS are planning to respond through job and cost cuts. In India too, there could be some lay offs in these companies. Citi\'s already done it, Nupur Acharya explains if GE Capital and RBS are also going to follow suit with a round of pink slips?Source: Moneycontrol Top Headlines | 24 Nov 2008 | 6:42 pm Big bosses\' pay takes a hit due to global downturnThe global downturn will lighten the wallets of top Indian executives. According to Global Talent Management Organisation Korn/Ferry, Indian CEOs need to get ready for smaller increments and rational salaries.Source: Moneycontrol Top Headlines | 24 Nov 2008 | 6:23 pm Royal Philips buys Indian xray maker MeditronicsRoyal Philips has acquired the Indian manufacturer of xray systems, Meditronics. This is Philips second acquisition in India in the last three months.Source: Moneycontrol Top Headlines | 24 Nov 2008 | 4:58 pm Crude cooloff fails to cheer oil exploration cosFalling oil prices may not be good news for oil exploration companies, but they are seeing a silver liningcheaper oil exploration equipment. But while international players are seeing some upside in these tough times, Indian exploration companies aren\'t.Source: Moneycontrol Top Headlines | 24 Nov 2008 | 4:56 pm Future Group to invest Rs 200 cr in private brandsAt a time when retailers are cutting costs and restructuring their business plans, Future Group is investing over Rs 200 crore in building private brands. Nachiket Kelkar and Sandeep Srikanth trace Future Groups further expansion plan.Source: Moneycontrol Top Headlines | 24 Nov 2008 | 4:53 pm Auto demand reviving; Q1 CY09 will define trend: CumminsCummins India, which recently sold its power generation business, could be affected by the slowdown in the auto sector. Rajiv Batra, CFO of Cummins India, said he has seen a slight revival of volumes in the automobile industry after the slowdown. The quarter from January to March would give a definite trend.Source: Moneycontrol Top Headlines | 24 Nov 2008 | 4:47 pm Citigroup Gets US Rescue From Toxic Losses, Capital Infusion - Bloomberg
Source: Google News India - Business | 24 Nov 2008 | 3:09 pm Axon okays HCL's scheme of arrangement - Business Standard
Source: Google News India - Business | 24 Nov 2008 | 3:09 pm India must 'banish' thought of recession: Chidambaram - Times of India
Source: Google News India - Business | 24 Nov 2008 | 3:05 pm Praful Patel calls for lower airfares - Moneycontrol.com
Source: Google News India - Business | 24 Nov 2008 | 3:05 pm India keen to open up new trade avenues with AseanHo Chi Minh City (Vietnam): Looking at consolidating its ‘Look East’ policy, India on Monday said it was keen to open up new avenues of regional trade cooperation and further strengthen bonds of understanding with the Association of Southeast Asian Nations (Asean). Arriving here on the first leg of her 10-day visit to Vietnam and Indonesia, President Pratibha Patil said intensifying bilateral cooperation with the two countries, important members in the 10-nation grouping, has been a priority area for New Delhi. “As a part of India’s ‘Look East Policy’, it has been our endeavour to forge close relations with countries of Asean, of which Vietnam and Indonesia are important countries,” she said on way to Vietnam. Patil said New Delhi looked forward to further strengthening its historical association and bonds of understanding with the Asean nations. The President was received warmly by Vice Chairperson of the People’s Committee of Ho Chi Minh City Nguyen Thi Hong on her arrival to this former capital of erstwhile South Vietnam. She said the recently concluded India-Asean Trade in Goods agreement would open up new avenues of regional inter-linkages in commerce between India and these countries. Leading a delegation which included Minister of State for Commerce and Industry Ashwani Kumar, she said Vietnam and Indonesia as well as India have witnessed impressive growth rate, which has enabled higher interaction not only in the traditional areas of cooperation like trade and investment but also in fields like capacity building, science and technology, entrepreneurship development among others. Patil, who will hold parleys with her Vietnamese counterpart Nguyen Minh Triet and Prime Minister Nguyen Tan Dung during the four-day trip, said her talks with the Vietnamese leadership would aim at further strengthening political and economic links between the two countries. During her stay in Vietnam, which would also take her to capital Hanoi, the President would attend a business delegation meeting being organised by Vietnam Chamber of Commerce and Industry and the Federation of Indian Chambers of Commerce and Industry (FICCI). India-Vietnamese trade has increased manifold in recent years with India emerging as the 10th largest exporter of items to Vietnam. The total exports to Vietnam touched a figure of $1.3 billion last year. A number of Indian software training companies have been able to conclude franchise arrangements with Vietnamese agencies. Three Indian companies, NIIT, Aptech and Tata Infotech, have so far opened over 50 franchised IT training centres in Vietnam. Other IT majors like Satyam Computers and Wipro are also closely watching investment opportunities in Vietnam. “During my visit, I will reiterate our close relations with Vietnam and seek new avenues of cooperation to make our ties even stronger,” the President said. Besides identifying new areas of cooperation, she said, she would also exchange views on matters of regional and global interest including terrorism, energy security, food security and reform of the international organisations in the backdrop of the global financial crisis. Besides Kumar, Patil is also accompanied by three MPs — Rubaya Sayeda, Haribhau Jawale and Agatha Sangma. The President, who would be visiting Indonesia from 28 November, said that her trip signals India’s commitment to maintaining relations that benefit the two large nations who are neighbours, sharing a maritime boundary. “We attach great importance to our relationship with Indonesia and will look forward to building partnerships across multiple sectors in a mutually beneficial manner,” said Patil, who would be holding talks with her counterpart Susilo Bambang Yudhoyono. Indonesia is the third largest trading partner of India in the ten-member Asean grouping and the trade volume exceeded $6.5 billion last year. Indonesia is a major exporter of palm oil to India which is currently importing more than two million tonnes of the commodity from that country. The visit would reaffirm India’s pursuit of closer and enduring partnership with Vietnam and Indonesia, important partners in the framework of India’s ‘Look East’ policy, she said. Asean consists of Malaysia, Indonesia, Vietnam, the Philippines, Thailand, Brunei, Cambodia, Laos, Myanmar and Singapore. Source: LatestNews-Home - Livemint.com | 24 Nov 2008 | 3:03 pm See 30% drop in residential realty prices: Goldman Sachs - Moneycontrol.com
Source: Google News India - Business | 24 Nov 2008 | 2:55 pm Games2Win launches search engine for flash online gamesNew Delhi: Targeted at becoming one of the top 10 online entertainment companies by the end of 2009, Games2Win India has launched the world’s first global search engine for flash online games, Gamecurry. “Similar to Google, the website uses proprietary search and crawl engines and about 1.5 lakh games have already been indexed,” Games2Win CEO Alok Kejriwal said. Flash like Java provides platform on which certain internet-based programmes including online games are developed. Started in March 2007, the company had received a $5 million funding from Clearstone Venture Partners and Silicon Valley Bank. “We will use the funds to set up a sales office in the US as we grow,” Kejriwal said. Games2Win currently has two sales offices in Delhi and Bangalore and employs about 50 people. The company expects to start making profits from March 2010. “The gaming industry in India is still at a nascent stage. There is a high gestation period but given our popularity, we expect to start making profits from March 2010,” he said. Games2Win, with a business presence in 200 countries, is now focussing on developing global games. “Our focus is to develop games keeping in mind the global audiences. We had games specific to India and now we are looking at international audiences,” he said. Games2win is ranked 40 in the most popular online gaming destinations in the world list (comScore September 2008). A Nasscom report says that by the end of 2008, the gaming industry in India which is expected to value at $212 million, will reach $1,060 million by 2012 at a CAGR of 50%. Source: LatestNews-Home - Livemint.com | 24 Nov 2008 | 2:49 pm Games2Win launches search engine for flash online gamesNew Delhi: Targeted at becoming one of the top 10 online entertainment companies by the end of 2009, Games2Win India has launched the world’s first global search engine for flash online games, Gamecurry. “Similar to Google, the website uses proprietary search and crawl engines and about 1.5 lakh games have already been indexed,” Games2Win CEO Alok Kejriwal said. Flash like Java provides platform on which certain internet-based programmes including online games are developed. Started in March 2007, the company had received a $5 million funding from Clearstone Venture Partners and Silicon Valley Bank. “We will use the funds to set up a sales office in the US as we grow,” Kejriwal said. Games2Win currently has two sales offices in Delhi and Bangalore and employs about 50 people. The company expects to start making profits from March 2010. “The gaming industry in India is still at a nascent stage. There is a high gestation period but given our popularity, we expect to start making profits from March 2010,” he said. Games2Win, with a business presence in 200 countries, is now focussing on developing global games. “Our focus is to develop games keeping in mind the global audiences. We had games specific to India and now we are looking at international audiences,” he said. Games2win is ranked 40 in the most popular online gaming destinations in the world list (comScore September 2008). A Nasscom report says that by the end of 2008, the gaming industry in India which is expected to value at $212 million, will reach $1,060 million by 2012 at a CAGR of 50%. Source: Tech News - Livemint.com | 24 Nov 2008 | 2:49 pm India realty sector set for correction - reportMUMBAI (Reuters) - India's property market is poised for a correction and residential property rates will have to drop by up to 30 percent in some geographies for affordability to catch up, a report on said on Monday.Source: Reuters: Money News | 24 Nov 2008 | 2:38 pm ONGC strikes oil in eastern offshore of Andhra PradeshNew Delhi: State-run Oil and Natural Gas Corp (ONGC) on Monday said it has made a significant oil discovery in an eastern offshore acreage in Andhra Pradesh it had got from government on nomination basis. ONGC struck oil at Block IG at a water depth of 225 meters in well G-4-6, 15 kms off Yanam coast in Andhra Pradesh, the company said in a press statement. “Three hydrocarbon bearing sands have been encountered in the gross interval 3,757 meters to 4,185 meters based on geological data, log evaluation and one mini-Drill Stem Test carried out on 30 September and 1 October, 2008. The thickest sand interval (4,1084,185 meters) comprises 55 metres of net oil pay,” it said. The company, however, did not state the quantum of in place reserves it had encountered. The discovery is the most significant find after the ultra-deep sea UD-1 gas discovery in Krishna-Godavari basin in December 2006. The discovery at G-4-6 “augurs well as it marks the ONGCs determined efforts to put the KG offshore to new and higher levels of oil production,” it said. ONGC plans a fast-track hub development programme, clustering geographically proximal encouraging finds including a mix of older finds like G-2 & GS-29 with latter finds like Padmawati, Kanakadurga, and a slew of other discoveries using a common production facility like an FPSO. This is expected to be on course with an initial rate of 20,000 barrels per day by 2012-13, which is expected to peak to around 150,000 barrels per day by 2016-17, ONGC said. Source: LatestNews-Home - Livemint.com | 24 Nov 2008 | 2:38 pm Air India considering fare cut, Jet to slash salariesState-owned carrier Air India is considering a fare cut and is likely to make an announcement soon, but private airlines Jet Airways and Kingfisher are in no mood to follow suit, with Jet even working out on a salary cut of its pilots.Source: IndiaeNews.com: Business News | 24 Nov 2008 | 2:33 pm Spray Engineering to invest Rs.2.5 bn in PunjabSpray Engineering Devices Ltd (SEDL), maker of sugar manufacturing equipment, will invest Rs.2.5 billion (Rs.250 crore) to set up sugar mills and upgrading existing units in Punjab, a senior company official said here Monday.Source: IndiaeNews.com: Business News | 24 Nov 2008 | 2:30 pm Jet to take a decision soon on expat pilots: CEOFaced with the demand by Indian pilots of Jet Airways for removal of all expatriate pilots of the airline, the company's management said it would take a decision soon.Source: Daily News & Analysis: Money News | 24 Nov 2008 | 2:23 pm Jet to take a decision soon on expat pilots issue: CEO - Hindu
Source: Google News India - Business | 24 Nov 2008 | 2:21 pm ONGC strikes oil in eastern offshore of APState-run Oil and Natural Gas Corp said it has made a significant oil discovery in an eastern offshore acreage in Andhra PradeshSource: Daily News & Analysis: Money News | 24 Nov 2008 | 2:16 pm DoT to allot spectrum to telecom cos in 10 days: SourcesThe Department of Telecom, or DoT, will allot spectrum to Datacom, Unitech, Swan, Loop, Tata Telecommunications, and Bharti in 10 days, reports CNBCTV18, quoting sources.Source: Moneycontrol Top Headlines | 24 Nov 2008 | 2:12 pm Mkts close flat amid choppy trade; Realty, bank dip over 3% - Moneycontrol.com
Source: Google News India - Business | 24 Nov 2008 | 2:09 pm Jet to decide soon on expat pilots issue: CEOMumbai: Faced with the demand by Indian pilots of Jet Airways for removal of all expatriate pilots of the airline, the company’s management, which has proposed salary cut for most of its employees, on Monday said it would take a decision soon on the issue. Jet Airways’ chief executive officer Wolfgang Proch-Schaeur said the management had yet not taken any decision on the issue. “We are still deliberating and have not yet taken any decision on the matter. But a decision (on reducing the mumber of expat pilots) is expected soon,” he said. The airline is understood to have mooted a proposal whereby the number of expat pilots would be reduced by 15% as a cost-pruning measure following a demand by Indian pilots. Of the total 1,000-odd pilots, the carrier has over 200 expat pilots, deployed especially on its wide-body aircraft fleet. The Society for Welfare of Indian Pilots (SWIP), a pilots body of Jet Airways, is understood to have conveyed to the Jet management that all expat pilots should be removed. “We will not settle for less...all the expat pilots must go (from the airline),” a senior Jet Airways pilot said on condition of strict anonymity. “We are ready to co-operate with the company and willing to negotiate on salary cut proposals but the management (of Jet Airways) should first remove the expat pilots,” he said. The Indian pilots’ contention is that expat pilots earn 40-50% more than them and hence cost-cutting must begin with them. “If the company is talking about pruning costs, it should start from these (expat) pilots whose salary packages are 40-50% more than the domestic pilots,” he said. Faced with mounting losses and the severe downturn in several major global economies, Jet’s management has initiated a number of cost-cutting measures including a proposed pay cut across the board to keep the airline afloat. Jet Airways’ Chairman, Naresh Goyal, had on 23 November held a meeting of the airline’s pilots, engineers and other staff to discuss the issue. While the engineers and commercial staff are understood to have agreed to the proposed pay-cut, pilots had refused to toe the line, saying there were other ways and means to prune costs, foremost among them being removal of expat pilots with their high salaries. Source: LatestNews-Home - Livemint.com | 24 Nov 2008 | 2:03 pm ONGC strikes oil in eastern offshore of Andhra Pradesh - Hindu
Source: Google News India - Business | 24 Nov 2008 | 2:00 pm Inquiry report in Scorpene deal can't be made public: CBI - Times of India
Source: Google News India - Business | 24 Nov 2008 | 1:59 pm C&C Constructions bags order worth Rs 635 cr - Economic Times
Source: Google News India - Business | 24 Nov 2008 | 1:56 pm President-elect Obama moves to reassure mktsWASHINGTON/LIMA (Reuters) - U.S. President-elect Barack Obama moved to reassure an anxious world over the weekend even before he takes office, picking two respected policymakers to lead the fight against the global financial crisis and setting out his battle plan.Source: Reuters: Money News | 24 Nov 2008 | 1:55 pm Barclays chairman says proxy vote backs fundraisingLONDON (Reuters) - Barclays Plc investors have backed the British bank's controversial 7 billion pound ($10.44 billion) fundraising, Chairman Marcus Agius said on Monday.Source: Reuters: Money News | 24 Nov 2008 | 1:48 pm More companies linking performance with pay: MercerSeeking to cut costs in the wake of the current economic scenario, India Inc is increasingly adopting a differential salary structure based on performanceSource: Daily News & Analysis: Money News | 24 Nov 2008 | 1:38 pm Pandit stays at Citi, at least for nowThe job of running crisis-ridden Citigroup is still with India-born Vikram Pandit, who revived the American behemoth's years-old tag line - Citi Never Sleeps.Source: Daily News & Analysis: Money News | 24 Nov 2008 | 1:37 pm Luxury sedans easier to importLuxury sedans such as Toyota's Lexus and Mercedes Benz S-Class will be easier to import, especially from the USSource: Daily News & Analysis: Money News | 24 Nov 2008 | 1:36 pm Mindteck to offshore 70% work to IndiaGlobal technology and IT services firm Mindteck said it would move 70 per cent of its outsourcing work to India in order to consolidate its businesses.Source: Daily News & Analysis: Money News | 24 Nov 2008 | 1:36 pm Lessons from 1996 realty correctionThe realty sector is getting badgered today and continues to underperform other sectoral indices. The reatly index was down over 4% at 1,575. CNBCTV18\'s Haresh Soneji finds out that demandsupply mismatch, and steep price rise is behind the fall in realty.Source: Moneycontrol Top Headlines | 24 Nov 2008 | 1:31 pm U.S. govt steps in to save Citi, markets rallyWASHINGTON/LONDON (Reuters) - The United States agreed to inject $20 billion of new capital to rescue one of the world's top banks and European leaders said on Monday they would stand by European industry, especially the automobile sector.Source: Reuters: Money News | 24 Nov 2008 | 1:18 pm IndusInd Bank to open 30 new branchesIn a regulatory statement, private lender IndusInd Bank announced that it will open 30 new branches, set up 50 new off-site automatic teller machines (ATMs) and 6 mobile ATMsSource: Daily News & Analysis: Money News | 24 Nov 2008 | 1:17 pm Air India mulls fuel surcharge cut as ATF coolsMUMBAI (Reuters) - Air India on Monday said it would consider reducing its fuel surcharge to pass on the benefits of a recent decline in jet fuel prices, a senior official said.Source: Reuters: Money News | 24 Nov 2008 | 1:14 pm India will remain second-fastest growing economy: ChidambaramIndia faces a difficult situation because of the global financial crisis and may even witness a slowdown, but its economy was nowhere near a recession, Finance Minister P. Chidambaram said here Monday.Source: IndiaeNews.com: Business News | 24 Nov 2008 | 1:01 pm NEWSMAKER - Citigroup CEO Pandit gets emergency helpPHILADELPHIA/NEW YORK (Reuters) - When Vikram Pandit took the helm at Citigroup Inc last December, critics worried about his lack of consumer banking experience, that he was too low key, a technocrat, not one to inspire a troubled banking giant that needed help.Source: Reuters: Money News | 24 Nov 2008 | 12:44 pm Himachal Pradesh sets up Rs. 340 mn waste treatment plantConcerned over unscientific disposal of hazardous waste by industries, the Himachal Pradesh government Monday launched a waste treatment plant at a cost of Rs.340 million at the state's industrial hub, Baddi in Solan district.Source: IndiaeNews.com: Business News | 24 Nov 2008 | 12:33 pm PM to lay foundation for Tirupati international airportPrime Minister Manmohan Singh will launch next month the work on development of an international airport at Renigunta near the temple town of Tirupati in Andhra Pradesh.Source: IndiaeNews.com: Business News | 24 Nov 2008 | 12:33 pm 30 finalists for Tata NEN Hottest Startups Awards 2008The Tata NEN (National Entrepreneurship Network) Hottest Startups Awards 2008 Monday announced the shortlist of 30 finalists, which includes some of India's most inspiring and innovative young companies.Source: IndiaeNews.com: Business News | 24 Nov 2008 | 12:32 pm BSNL to launch 3G service in Chennai in JanuaryState-run telecom operator Bharat Sanchar Nigam Ltd (BSNL) Monday reaffirmed its decision to launch third generation (3G) mobile services in Chennai in January.Source: IndiaeNews.com: Business News | 24 Nov 2008 | 12:31 pm IndusInd Bank to open 30 new branchesIn a regulatory statement, private lender IndusInd Bank announced here Monday that it will open 30 new branches, set up 50 new off-site automatic teller machines (ATMs) and 6 mobile ATMs to increase presence in the country.Source: IndiaeNews.com: Business News | 24 Nov 2008 | 12:31 pm Citigroup gets USD 306 billion rescue from US government!The US government agreed to a USD 306 billion rescue plan for Citigroup Inc, agreeing to shoulder some losses from toxic debt in the latest attempt to bolster a financial services industry in turmoil.Source: Zee News : Business | 24 Nov 2008 | 12:08 pm Sensex plunges 206 pts in early trade!The Bombay Stock Exchange benchmark Sensex on Monday fell over 206 pts in early trade.Source: Zee News : Business | 24 Nov 2008 | 12:08 pm APEC leaders commit to quick economic action!The United States, China, Japan and 18 other economies in Asia and the Americas promised fast and decisive action on Sunday to prevent a severe global economic downturn.Source: Zee News : Business | 24 Nov 2008 | 12:08 pm Oil prices rise above USD 50 on Obama economy team!Oil prices rose above USD 50 a barrel on Monday in Asia as investors gained some confidence from reports that US President-elect Barack Obama has chosen an economic team to tackle what could be the worst slowdown in decades.Source: Zee News : Business | 24 Nov 2008 | 12:08 pm Equities end marginally red, Sensex down 12 pointsIndian equities markets ended with marginal losses Monday after a late afternoon rally with a key index down only 12.09 points or 0.14 percent from its previous close Friday last week.Source: IndiaeNews.com: Business News | 24 Nov 2008 | 12:01 pm Air India likely to announce fare cutIndia's leading carrier Air India is considering a fare cut and is likely to make an announcement soon following a request from civil aviation minister Praful Patel Saturday.Source: IndiaeNews.com: Business News | 24 Nov 2008 | 12:00 pm Obama planning another $700 bn stimulus packageWashington: To shore up the tottering US economy, President-elect Barack Obama and the Democrats are planning a new massive fiscal stimulus package that could run into as much as $700 billion over the next two years, rivalling the bailout sum Congress committed last month. Hints of a hefty new spending programme began emerging last week. New Jersey Governor Jon Corzine, an Obama advisor and Harvard economist Lawrence H Summers, whom the President-elect has chosen to lead his White House economic team, raised the possibility of $700 billion in new spending. Obama advisor and former Clinton administration Labour Secretary Robert Reich and Democrat Senator Charles E Schumer also favoured spending in the range of $500 billion to $700 billion, the Washington Post reported on Monday. The amount, if approved, will be one of the biggest public spending programmes aimed at boosting the economy since former President Franklin D Roosevelt’s ‘New Deal´, it said. Transition officials did not confirm to the paper that they are considering spending of that magnitude, but they made clear that economic conditions are dire and suggested that Obama might be forced to delay his pledge to repeal President George W Bush’s tax cuts for the wealthy. While Obama has set a goal of creating or preserving 2.5 million jobs by 2011, his economic team have yet to decide how that would be accomplished or how much it would cost. Austan Goolsbee, a spokesman for Obama on economic issues who is in line to serve on the White House Council of Economic Advisers, on Sunday acknowledged that Obama’s jobs plan will cost substantially more than the $175 billion stimulus programme he proposed during the campaign. Republicans were quick to flay the idea of such a vast initiative, saying Congress should instead cut taxes to spur economic growth. The Wall Street Journal also reported that Obama’s team is putting together a new economic stimulus plan containing more than $500 billion in federal spending and tax cuts over the next two years, a package far more aggressive than anything envisioned during the campaign. Democratic leaders in Congress are preparing to rush passage shortly after New Year’s to have a stimulus-plan bill ready for Obama to sign once he is inaugurated 20 January, it quoted Obama aides and advisors as saying. Meanwhile, Bush’s outgoing Treasury secretary, Henry Paulson, is now considering a more activist stance in his final weeks in office than he had signalled as recently as last week, the paper said. He is considering tapping the second half of the government’s $700 billion financial-industry rescue fund, and rolling out new programmes in response to worsening market conditions, the Journal reported citing people familiar with the matter. Source: LatestNews-Home - Livemint.com | 24 Nov 2008 | 11:34 am Colgate-Palmolive after-sale row continues in NepalFour days after oral care giant Colgate-Palmolive (India) announced the handover of its wholly owned Nepal subsidiary to a Nepali companySource: Daily News & Analysis: Money News | 24 Nov 2008 | 11:24 am Govt says RBI's bias towards growth may deepenNEW DELHI (Reuters) - Faced with the global financial crisis and a slowing economy, India's monetary policy is biased towards stimulating growth, and the Reserve Bank of India (RBI) is likely to lower rates as inflation cools, the finance minister said.Source: Reuters: Money News | 24 Nov 2008 | 11:22 am Sensex ends flat after choppy tradeMumbai: The Bombay Stock Exchange benchmark Sensex on Monday closed flat after a highly volatile trade which saw profit booking at every surge, diluting the positive impact of a rescue package by US administration for global financial giant Citigroup. The BSE bellwether index settled the day at 8,903.12 point, a moderate loss of 12.09 points from its last close. National Stock Exchange index Nifty rose by 14.80 points at 2708.25. The BSE index fluctuated between between 9,042.02 and 8,701.93 points, mirroring the volatility in trade. Marketmen said US government decision to bail out Citigroup eased the gloomy outlook but investors were unwilling to build fresh positions as other indications from global financial markets were weak. They said the rescue plan for the global financial giant did not realy elevate the sentiment as investors remained nervous as the US bank has large portfolio holdings in many Indian companies. Investors feared Citi may have to liquidate them if problems get worsened. A steep fall in realty segment index by 3.78% at 1583.30 mainly pulled down the market. It was followed by banking sector index by losing 3.14% at 4454.68. Consumer Durable index fell by 2.33% at 1751.90 followed by metal sector index by 1.55% at 4309.73 and capital goods index lost 0.03% at 6554.72. Source: Home - Livemint.com | 24 Nov 2008 | 11:13 am Titan to open 300 outlets in three yearsTitan Industries has plans to open 300 retail stores for its 'Titan Eye' in the next three years across the country, a senior company official said on Monday.Source: Daily News & Analysis: Money News | 24 Nov 2008 | 11:02 am StanChart in $2.7 bln cash call to boost capitalSINGAPORE/LONDON (Reuters) - Emerging markets bank Standard Chartered plans to raise 1.8 billion pounds ($2.7 billion) from a rights issue to boost its capital base and give it flexibility to pursue acquisitions, it said on Monday.Source: Reuters: Money News | 24 Nov 2008 | 10:57 am Job cut fears see rise in anti-depressant salesAs the crisis gripping the stock markets world over shows no sign of easing with rising fears of job cuts, sales of anti depressants have sharply increased, say psychiatrists.Source: Daily News & Analysis: Money News | 24 Nov 2008 | 10:02 am Obama presents team to navigate US economic crisisChicago: President-elect Barack Obama takes his first major step toward addressing the US financial crisis on Monday, presenting the team that will steer his economic policies and navigate a potentially deep recession. Obama, who takes over for President George W. Bush on 20 January, announces his appointments at 10:30pm (IST) news conference, with financial markets watching for specifics about his plans to stimulate the economy and save jobs. Obama also is likely to be quizzed about his thoughts on bailing out US auto producers and other companies in his first economic test since winning the 4 November election. The scope of the economic crisis has widened in the 20 days since Obama’s White House win. Auto companies warned they were short on cash, unemployment numbers rose, and Citigroup took the US government on as a shareholder. “The stakes are high,” said Julian Zelizer, professor of history and public affairs at Princeton University. Except for one short news conference, Obama has kept a low public profile since his victory over Republican John McCain, remaining in Chicago to pick his Cabinet but not formally announcing any of his choices. By breaking that near-silence with the unveiling of his economic team, Obama signaled the priority he places on addressing the worst economic crisis since the Great Depression. The big players on his team are already known. Timothy Geithner, 47, president of the New York Federal Reserve Bank, will become Treasury secretary, and Lawrence Summers, 53, a former Treasury secretary under President Bill Clinton, will be director of the National Economic Council. US stocks rallied late on Friday after news leaks about Geithner’s appointment. In addition to personnel, Obama has laid the groundwork for a massive new two-year economic stimulus package, which he proposed on Saturday, combining middle-class tax cuts and spending on infrastructure to help save 2.5 million jobs. Obama did not spell out the size of the package, but top Democrats said it could cost hundreds of billions of dollars. Source: Home - Livemint.com | 24 Nov 2008 | 9:35 am India’s growth to slow, outlook robust: govtNew Delhi: India’s economy is likely to slow this fiscal year but growth of 7-8% will still be among the best given the financial crisis and a slowdown in major nations, the finance ministry said in a report on Monday. Prepared for a conference of financial editors, the report said the global growth outlook remained uncertain but the prospects for India’s expansion still looked fairly robust. “The circumstances continue to be largely favourable for sustained, rapid and more inclusive growth of the economy,” it said. Indian policymakers are grappling with the impact of the global financial crisis on the broader economy and have taken several steps in recent weeks, including sharp interest rate and banks’ reserve requirement cuts, to protect the economy. Prime Minister Manmohan Singh said last week that despite an adverse international environment India could sustain growth of about 8% in the fiscal year to end March. Source: LatestNews-Home - Livemint.com | 24 Nov 2008 | 9:27 am Air India working on likely fare reductionNew Delhi: In a bid to boost the air traffic growth rate, Air India’s top brass has started working on slashing the carrier’s fares following considerable reduction in jet fuel prices. “We are working on it, but at this moment, we cannot specify the quantum or from when this (reduction in fares) will be effective,” a top airline official, who did not want to be named said. Sources said the cut in Air India’s fares on the domestic sector could range between 10 and 12%, but the official refused to confirm. Steps could also be taken to slash fuel surcharge and tinker with the congestion surcharge, the sources said, adding that the fare reduction could be made effective in December itself. Renewing his pitch for making air travel cheaper, Civil Aviation Minister Praful Patel had last week asked all the carriers to slash fares in response to the government’s support to the aviation industry to meet the financial crisis. On its part, the government has asked oil marketing PSUs to extend credit period and allow airlines to clear their dues amounting to about Rs3,000 crore by March next year. It has also abolished the five per cent customs duty on ATF, even as the jet fuel prices were brought down considerably. Source: Home - Livemint.com | 24 Nov 2008 | 9:10 am Indian firm to construct Sri Lanka’s tallest buildingBy PTI Colombo: Hyderabad-based Indian company has bagged a major contract to construct a $250 million 70-storeyed building in Colombo, the tallest in Sri Lanka. The foundation stone for the proposed highest building in Sri Lanka, was laid by Prime Minister Ratnasiri Wickramanayake yesterday. The public-private partnership building project will come up in the premises of Sethsiripaya in Battaramulla in Colombo suburbs and will be constructed by Sutchi NEB Construction Company of India. The project initiated by the Board of Investment (BOI) of Government of Sri Lanka will have administration, commercial and housing units, a BOI official told PTI adding the projected is expected to be completed in three years time. While 40 floors will be dedicated for commercial operations, 20 floors will be for residential purposes, the official said. Speaking on the occasion, the Sri Lankan Prime Minister said peoples’ only desire was to see an end to the scourge of terrorism that was obstructing all new projects, investments and the countrys development programmes and the only message the government could give to the people was that before long, terrorism would be completely uprooted from the country. Urban Development Minister Dinesh Gunawardena, pointed out that India’s contribution to such a mega development programme is another milestone in Indo-Sri Lanka ties. The minister for Enterprise Development and Investment Promotion Sarath Amunugama also spoke at the function. The working director of Sutchi India Company Dr Y Kiran and BOI chairman Dhammika Perera were present on the occasion. Earlier this year in April, two MOUs were signed between India and Sri Lanka to construct a 150 bed hospital besides providing rural vocational training in Sri Lanka. Source: Home - Livemint.com | 24 Nov 2008 | 9:01 am BHEL gets Rs240 cr power transformer contractNew Delhi: State-run Bharat Heavy Electricals on Monday said it has bagged a Rs240-crore order for manufacturing and supplying transformers to Tata Power’s power project in Gujarat. The order has been placed by Coastal Gujarat Power Ltd (CGPL), a special-purpose vehicle (SPV) by Tata Power, for the implementation of the 4,000 MW Mundra Ultra Mega Power Project (UMPP), Bhel said in a statement. The order also includes manufacture and supply of busducts for the power project. Busducts are designed for connecting the generator to the main transformer. The generator transformers for the first unit have to be delivered by February 2010, supplies for the fifth unit will be completed by June 2011, it said. In the past, Bhel has supplied transformers to all major utilities in the country including State Electricity Board, NTPC and Power Grid Corp. On the export front, the company has supplied transformers to more than 20 countries including Greece, Egypt, Libya, Oman, Malaysia, Saudi Arabia and Zambia. Source: Home - Livemint.com | 24 Nov 2008 | 8:59 am Christie’s offer Indian art at Hong Kong saleBy PTI New Delhi: Artworks from India and Pakistan would figure prominently at Christie’s upcoming Autumn sale of contemporary art in Hong Kong. The leading auction house which had grossed over Rs21 crore, the highest total ever for Indian and Pakistan art, in May 2008 would put up a selection of works from Subodh Gupta, T V Santosh, Jitish Kallat Thukral and Tagra among others. In order to offer collectors a unique cross-cultural view of the current dynamic art in Asia works of artists from China, Japan and Korea would also figure at the day and night sale on 30 November and 1 December according to information released by Christie’s. Leading contemporary artist Subodh Gupta’s two oil on canvasses have been put up for the sale. The first’Doot’ (Ambassador car) painted in 2003 is estimated to sell between Rs25,854,517.01 and Rs38,789,179.90. Another untitled oil on canvas is estimated to fetch between Rs22,631,346.11 and Rs32,330,147.42. Gupta utilizes the cliche of colonial style Ambassador car to comment on the greater social ills of political corruption and power struggles to explore and expose anxieties about the rapid pace of change taking place in his homeland. ‘Re-Ornamented´ by Rashid Rana, one of the leading artists from Pakistan is a digital image of a temple by combining several pixels of ubiquitous advertisements. Christie’s, which holds sales of modern and contemporary art in New York, London and Hong Kong had totaled global sales of $6.3 billion in 2007 marking the highest total in company and in art auction history. For the first half of 2008, art sales totaled $3.5 billion. Source: LatestNews-Home - Livemint.com | 24 Nov 2008 | 8:39 am Citi rescue fails to boost Asia stocksHong Kong: Asian shares pared losses and US stock futures gained on Monday after the US government rescued Citigroup with a plan that was seen providing a template for other banks facing losses from toxic investments. European shares were set to gain 4-5% at the open, while oil prices rose on hopes that Opec will cut output as early as this week to shore up crude prices that have tumbled to their lowest in more than three years. But earlier gains on global markets following the Citigroup announcement faded, while so-called safe-haven assets such as the yen held firmer, signalling that concerns about the broader financial sector and the global economy are likely to remain. “The reaction so far has been relatively muted because maybe there are as many questions about this as there are answers in terms of saving and stabilising Citigroup,” said Tony Morriss, a senior currency strategist at ANZ Bank in Sydney. The MSCI index of Asia-Pacific stocks excluding Japan briefly posted a small gain after the Citigroup news, but was down 0.7% at 0720 GMT. That was an improvement from early in the session, when the index fell as much as 1.7%. Japanese markets were closed for a public holiday. The US Treasury Department said it would prop up Citigroup with more than $300 billion in the largest bailout for a sector crippled by exposure to toxic mortgage debts and a crumbling US economy. Australian stocks reversed earlier losses to close 0.3% higher. US stock futures firmed, with the S&P 500 December 500 futures up 0.7% and the Dow Jones futures index up 0.05%. Indexes elsewhere cut losses, but remained in negative territory, with Hong Kong, India and Singapore all falling more than 1%. South Korean shares shares and Chinese shares lost more than 3%. Shares in Asian banks such as South Korea’s KB Financial Group, Commonwealth Bank of Australia and Hong Kong-listed HSBC fell amid concerns about how much capital the broader financial sector will need. Source: Home - Livemint.com | 24 Nov 2008 | 8:36 am Pakistan to release 101 Indian prisonersBy PTI Islamabad: Pakistan will release 101 Indian prisoners, a majority of them fishermen, as a goodwill gesture ahead of a meeting between the interior secretaries of the two countries later this week. Interior ministry chief Rehman Malik said 99 Indian fishermen and two other prisoners would be freed before the meeting of Pakistan’s interior secretary and India’s home secretary here on 25 November. Asking India to reciprocate the gesture, Malik said hundreds of Pakistanis languishing in Indian prisons should be freed at the earliest. Leading Pakistani rights activist Ansar Burney told PTI that he had been informed by officials that the Indian prisoners were likely to be freed tomorrow or the day after. He said the two Indian prisoners being released had completed their prison terms. “There are many other Indian prisoners who have completed their sentences but are still in jail. I have also taken up their case with the authorities,” he said. Meanwhile, official sources said the 99 fishermen who are to be released were arrested between two and six years ago. The two other Indian prisoners had been in jail for a longer period, they said. India recently freed 29 Pakistani prisoners who had completed their jail terms. During their meeting, Pakistan’s interior secretary and India’s home secretary are expected to discuss measures for countering terrorism and drug trafficking and liberalising the visa regime between the two countries among other things. The talks will be part of the fifth round of composite dialogue launched by India and Pakistan four years ago. Source: Home - Livemint.com | 24 Nov 2008 | 7:57 am Dr T Ramaswami chosen for Nayudamma awardBy PTI Vijayawada: Eminent leather technologist Dr T Ramaswami has been selected for the prestigious Dr Y Nayudamma Memorial Award for the year 2008, for his contribution to science and technology, according to P Vishnu Murthy, founder and managing trustee of Dr Y Nayudamma Memorial Trust. Nayudamma Memorial Trust, Tenali, in Guntur District of Andhra Pradesh, instituted the award in 1986 to commemorate the distinguished scientist and internationally renowed leather technologist Dr Y Nayudamma. The award will be conferred to Dr Ramaswami at a special function at Tenali, the home town of Dr Nayudamma on 6December, 2008 wherein Dr Ramaswami will deliver the 17th Dr Y Nayudamma Memorial Lecture on the theme ‘towards people centric innovations foresight of Nayudamma", a press release here said. Dr Ramaswami joined the Central Leather Research institute to (CLRI) Chennai as a scientist in 1984 and served as its director for more than ten years before taking over as secretaty Department of Science and Technology in May 2006. CLRI earned a global leadership status during Dr Ramaswami’s tenure as its director as evidenced by 35% global share of publications, 7% share of global patents, positions in farecasting and the level of public private partnership in leather research. He has won Shanti Swarup Bhatnagar Prize for chemical sciences in 1993 and the coveted national civilian award Padma Sri in 2001, the release added. Source: LatestNews-Home - Livemint.com | 24 Nov 2008 | 7:32 am Indian realty sector set for correction: Goldman SachsReuters Mumbai: India’s property market is poised for a correction and residential property rates will have to drop by up to 30% in some geographies for affordability to catch up, according to a Goldman Sachs Economic Research report released on Monday. However, such a fall could trigger significant negative effects on the economy with construction, consumption and investment taking a hit. Related industries such as steel and cement on the backend, and hotels, trade and transport on the front-end will be impacted, it said. Income growth will fall, reducing demand for housing as the economy continues to slow due to the knock-on effects of the global financial crisis, lowering demand for real estate. Besides income growth, demographics, interest rates, inflation and expectations of future projects affect demand. Commercial real estate demand will also take a beating due to the slowdown in IT and business process outsourcing (BPO) sectors, it said. A fall in collateral will hurt firms’ balance sheets, increase funding costs, hurt confidence and reduce investment demand. However, India’s favourable demographics, low mortgage penetration, falling interest rates and ongoing infrastructure demand will keep the property downturn from being protracted, it said. Source: Home - Livemint.com | 24 Nov 2008 | 7:21 am Breakthrough in WTO talks possible this year: US officialBy PTI Washington: With a “renewed” commitment by significant players like India and Brazil to revive the Doha Round of trade talks, a top White House official has said, there are chances of a breakthrough being achieved this year. Although countries like India and Brazil were not part of the just concluded Asia Pacific Economic Cooperation Forum (APEC), there is a commitment from leaders of the two nations to see the Doha Round modalities done by the end of this year, Dan Price, Assistant to the President for International Economic Affairs, said in a briefing en route to Andrews Air Force Base at the conclusion of the APEC meeting in Peru. This commitment from the leaders of India and Brazil came at a financial summit of the leaders of the Group of Twenty in Washington convened by President George W Bush to deal with the ongoing economic crisis. “India and Brazil, while not at APEC, were at the G20 meeting. And like the other leaders at the G20 meeting, they threw their strong support, to reject protectionism and to get a Doha modalities agreement done this year. That was determination expressed at the leaders’ level that included India and Brazil,” Price said. “We will seek to ensure that all leaders do what they say,” he added. Though there is no set expiration date for the talks, the official said, a “very good” chance existed that modalities could be concluded this year. “Countries feel that with a final push we stand a very good chance of concluding modalities this year. That will then leave... a significant amount of negotiation after modalities in terms of negotiating the precise tariff schedules, as well as making more concrete the services commitments,” Price said. Source: LatestNews-Home - Livemint.com | 24 Nov 2008 | 6:56 am Britain set to slash VAT to boost spendingLondon: Britain was expected to announce a cut in value added tax (VAT) to 15% from 17.5% to stimulate spending on goods and services as the nation faces recession. A cut in VAT was emerging as a likely centrepiece of the Labour government’s upcoming budget report, British newspapers said today, as Prime Minister Gordon Brown also attempts to further close a gap on the main opposition Conservatives in the polls. “I want every household facing difficulty at this time to know we are ready to help and on their side,” Brown wrote in the popular News of the World weekly tabloid. “I know how worried many people are about their jobs, making ends meet at the moment and about the security of their homes. “No politician can promise to stop the difficult times, but I can promise that we will do everything we can to help people get through them fairly,” added Brown, whose governing Labour Party was still 11 points behind the Conservatives, according to an opinion poll today. British finance minister Alistair Darling will on Monday unveil a budget report also expected to outline plans to boost government spending. Darling, whose official title is chancellor of the exchequer, will present his pre-budget - an outline of his taxation and spending plans ahead of the full 2009/2010 annual budget due early next year. Source: LatestNews-Home - Livemint.com | 24 Nov 2008 | 6:31 am US govt rescues ailing Citigroup for $306 bnNew York: The US government agreed to a $306 billion rescue plan for Citigroup Inc, agreeing to shoulder some losses from toxic debt in the latest attempt to bolster a financial services industry in turmoil. Citigroup’s package may also prove a template for other banks that are expected to face growing losses as economies worldwide sink into recession. Credit losses once concentrated in mortgages are already bleeding into new, large areas such as credit cards and commercial real estate. The nation’s second-largest bank by assets has the farthest international reach of any US bank, with operations in more than 100 countries. Many analysts have said Citigroup might be too big to be allowed to fail, and that any collapse could cause financial havoc around the globe. The plan announced late Sunday calls for Citigroup to obtain $27 billion of capital by issuing preferred shares. The shares carry an initial 8% dividend, higher than the 5% it charges dozens of other lenders under its $700 billion financial industry rescue package. Citigroup itself got $25 billion in the earlier package. Citigroup agreed to absorb the first $29 billion of losses on the $306 billion portfolio, plus 10% of additional losses, for a maximum total exposure of $56.7 billion. The Treasury Department could end up absorbing $5 billion, the Federal Deposit Insurance Corp $10 billion, and the Federal Reserve the rest. The bank will not have to make management changes, but agreed to tighter restrictions on executive pay, and to try to modify troubled mortgages in the $306 billion portfolio. It also cannot pay more than 1 cent per share in common stock dividends per quarter for three years without the Treasury Department’s consent. The quarterly dividend is now 16 cents. “The US government is taking the actions necessary to strengthen the financial system and protect US taxpayers and the US economy,” the Fed, the Treasury Department and the FDIC said in a joint statement. Asian stock markets trimmed earlier losses in Monday trading following the announcement. Dow Jones Industrial Average futures were up 72 points at 8,089, while Standard & Poor’s 500 futures were up 11.20 points at 802.90. The plan was announced less than a week after Pandit announced plans to reduce Citigroup’s workforce to 300,000 by early next year from 375,000 at the end of 2007. Source: Home - Livemint.com | 24 Nov 2008 | 6:20 am STC to sell 45,000 tonnes of imported pulsesBy PTI New Delhi: State-owned trading firm STC plans to sell about 45,000 tonnes of imported pulses in the domestic market in the next month. State Trading Corporation (STC) has floated a tender inviting bids from local traders for the sale of about 30,000 tonnes of yellow peas, 10,000 tonnes of black matpe whole (urad), and 5,000 tonnes of lemon tur. The bids would close at 1500 hrs on 28November and the final decision on the tender would be taken by 10December, the company said on its website. Pulses have been sourced from Myanmar and Canada, grown in 2008 crop season. Currently, pulses are lying at CWC warehouses in Mumbai, it said. According to the tender, the bidder should quote for the minimum quantity of 500 tonnes. Pulses are packed in 50 kg lots except for yellow peas, it said, adding that the successful bidder should organise his own transport for lifting the cargo from warehouse. The government has so far purchased 3.52 lakh tonnes of pulses from the global market through public sector agencies MMTC, STC, PEC and cooperative major Nafed. It plans to import 15 lakh tonnes to meet the domestic demand during this financial year. India imports pulses as output is lower than the demand. The country is estimated to have produced 151 lakh tonnes of pulses in the 2007-08 crop year, while the domestic demand is around 170-180 lakh tonnes. Source: Home - Livemint.com | 24 Nov 2008 | 6:09 am Jet Airways to cut salaries by 5-25%Mumbai, Nov. 23 Jet Airways proposes to cut salaries of its staff by 5-25 per cent, airline sources said on Sunday.Source: Business Line - Home Page | 24 Nov 2008 | 12:00 am Wall Street will pave way for movement of SensexThis week, the benchmark index may witness enhanced volatility, but may stabilise later depending on what happens on Wall Street. Local developments may play second fiddle to theSource: Business Line - Home Page | 24 Nov 2008 | 12:00 am Non-domestic LPG may cost lessNew Delhi, Nov. 23 Both the players and the customers of non-domestic liquefied petroleum gas (LPG) have something to look forward to next month. Public and private players of the product are betting on a significant drop in prices to reviveSource: Business Line - Home Page | 24 Nov 2008 | 12:00 am Aries Agro (Rs 45.30): BuyWe recommend a buy in Aries Agro from a short-term perspective. It is apparent from the charts of Aries Agro that it was on a medium-term down trend from September high of Rs 162 to its 52-week low of Rs 35 recorded in late October.Source: Business Line - Home Page | 24 Nov 2008 | 12:00 am Day Trading GuideSource: Business Line - Home Page | 24 Nov 2008 | 12:00 am Uncertainty dogs metals, energy marketsThe world financial market in general and commodity markets in particular are going through extremely uncertain times. The crisis of confidence is palpable. A big hit to global growth prospects turning into recessionary conditions has scaredSource: Business Line - Home Page | 24 Nov 2008 | 12:00 am Recruiters headed for slow-growth phaseNew Delhi/Chennai, Nov. 23 After years of cranking-out some heady growth numbers, the recruitment industry is facing slowdown headwinds. Though opinions on growth rates for this industry - which derives a sizeable chunk of its business fromSource: Business Line - Home Page | 24 Nov 2008 | 12:00 am Cane farmers in a better bargaining positionNew Delhi, Nov. 23 Unlike cotton or soyabean farmers, sugarcane growers seem in a much better bargaining position this time round.Source: Business Line - Home Page | 24 Nov 2008 | 12:00 am When head hunters come under firing lineNew Delhi/Chennai, Nov. 23 The uncertainty caused by the slowdown in the West is showing up in several ways for the IT and BPO companies: the diluted importance of their HR function is one; a change in skills-required isSource: Business Line - Home Page | 24 Nov 2008 | 12:00 am The Citi that never sleeps also slipsMack (an American expat working in India) stops at an ATM on his way to a restaurant with friends Bidyut (an economics professor), Divya (a journalist) and Jogin (a student).Source: Business Line - Home Page | 24 Nov 2008 | 12:00 am Govt banks mull variable pay for staffPublic sector bank employees may see the introduction of a variable pay component in their salary structure.Source: Business Standard | Front Page Headlines | 23 Nov 2008 | 6:40 pm 'JLR in secret talks with govt for 1 billion pound loan'Luxury car marque Jaguar Land Rover (JLR) is in secret talks with the UK government for a 1-billion loan and an answer to the request would be made in the next fortnight, a media report saidSource: Business Standard | Front Page Headlines | 23 Nov 2008 | 6:39 pm Pilots oppose Jet's graded salary cut planA gruelling seven-hour meeting between the Jet Airways management and employees at the Ramada Hotel in Mumbai today ended in partial success with employees other than the airlines 750-oddSource: Business Standard | Front Page Headlines | 23 Nov 2008 | 6:38 pm Debt fund norms to be overhauledSebi meets mutual fund body today to consider changes.Source: Business Standard | Front Page Headlines | 23 Nov 2008 | 6:37 pm BPO employees’ union hopes to gain clout as US crisis hits firmsBangalore: R Karthik Shekhar was at home, technically on a holiday, but still in work mode. Shekhar, the head of a union for business process outsourcing (BPO) employees, sat at his dining room table as he talked to a TV news channel about how workers might be affected by slower-than-expected growth in the technology and outsourcing sector.  Optimistic: R. Karthik Shekhar, secretary general, Union for Information Technology Enabled Services. Hemant Mishra / Mint It’s an idea the former International Business Machines Corp. (IBM) employee and current self-styled industry nemesis is pushing a lot these days. If they need to let people go, he argues, companies should focus on planned layoffs. “I have seen this happen in IBM; in turmoil, bosses worked for half the salary.” India’s information technology sector, which includes outsourcing and employs 1.5 million people, is hurting from the impact of the crisis that has ravaged the financial industry in the US, its biggest market. The IT industry has let go of as many as 10,000 employees in the past two months, he said. Shekhar’s organization, called the Union for Information Technology Enabled Services (UNITES), is part of Union Network International, a Switzerland-based group created to organize white-collar workers around the world. The India branch, started by Shekhar three years ago, has slowly built up a public profile through cheeky campaigns focusing on employee safety and relieving workplace stress—the latter was dubbed Stop the BOSS, an acronym for burn-out stress syndrome. After unsuccessful attempts to function as a traditional union that represents employees in company-wide negotiations, Shekhar and UNITES are looking for another shot. In the past few years, the union has provided a one-off role for many employees seeking justice for perceived workplace wrongs—he has helped workers deal with everything from sexual harassment claims to missing pay cheques. Sabina Rajesh, for example, went to the union last year after she was fired from an outsourcing firm for what she deemed “unethical” reasons. “I was hoping to get some justice,” she says. Seizing the moment But now, as signs point to a global recession, and companies worldwide start to lay off employees by the thousands, Shekhar hopes to use the moment to build his organization. Earlier this month, he went to the Goldman Sachs Group, Inc. office in Bangalore, to scout the possibility of working with any of the potential 200 employees that the company announced would be fired. While meeting with worried Goldman staffers, he seized another opportunity—engineers who worked for American Express Co., holding letters stating they might be asked to leave anytime soon. In the downturn, Shekhar hopes to help these workers negotiate exit packages if and when they are laid off. “We said, ‘before they sign any settlement, look at what their contracts say’; we assured them that our lawyers will help them. We said, ‘make sure they ask for their provident fund’.” UNITES members pay fees, and the union receives help from its parent, but UNITES lawyers are often volunteers. But the outsourcing and information technology industry isn’t so sure the union will catch on. “Forming a union, I think, is a fundamental right, enshrined in the Constitution,” says Raju Bhatnagar, vice-president of industry body National Association of Software and Services Companies (Nasscom), “but what one has seen in the last few years is that individuals are not particularly enthused about collective bargaining.” “In banking, there are strong unions, but the younger ones become members because they have to; and (they) are more interested in building a career with the organization that they work for,” Bhatnagar adds. Starting from scratch Even in the event of layoffs, Bhatnagar says, most of the companies in question have strong corporate governance standards, and won’t renege on any severance commitments they made. Employee interest in joining a union might start to change if the employment landscape shifts even more in the next few months. But while call centre workers are often unionized in other countries, the different status of BPO work in India also suggests Shekhar’s is an uphill battle. “In Canada, nobody sees it as a career, but people will stay there a long time,” says Andrew Stevens, a sociologist who is studying call centre organizing in Canada and India. “Here, call centre work fits more into a professional idea, and (organizers) are starting from scratch,” Stevens adds. And UNITES did largely start from scratch. The union first tried to implement the global framework agreements that the parent union had signed with international firms such as HSBC Holdings Plc. and Barclays Plc. that have operations in India, without much success. “It was just a piece of paper when they came here,” he says. Then the organizers had problems with recruitment (they even tried out job portals) and retention (members would get promoted and leave the union). Another strategy of focusing on Indian companies also proved unsuccessful. HCL Technologies Ltd, India’s fifth-largest IT vendor by revenue, was open to negotiating with the union if it had a critical mass of employees, Shekhar says, but the union couldn’t hit the 40% benchmark it needed to attain. Collective bargaining Ultimately, the union focused on the method that is still its mainstay. Shekhar describes it as: “Let’s go out in the market, and see who has problems; we are there to help.” The union has negotiated a handful of collective bargaining agreements and assisted workers let go from the data analysis company Apex Advanced Geospatial Pvt. Ltd. According to Shekhar, the union helped get employees a better severance package, and convinced the company to bring in headhunters who could help workers find new jobs. As was the case with Apex, the union has had the most success with smaller employers. “There is a similar possibility with Goldman Sachs and with American Express,” Shekhar says, sitting in the union’s headquarters in Bangalore, which is converted from the top floor of a house, off a main road in Vasanth Nagar, an older part of the city, far from the employers it hopes to challenge. He expects that possibility to come, if workers experience any rude shocks. “Employees are all saying, ‘I’ve been so loyal for four or five years, it won’t happen to me’,” Shekhar says, “They have great faith in their employers.” Source: Tech News - Livemint.com | 23 Nov 2008 | 6:23 pm Westinghouse to transfer N-technology to IndiaMumbai: US-headquartered Westinghouse Electric Co., which is expected to supply nuclear reactors to India, has said it will transfer technologies to local companies and work closely with various industries in the country. “We will be transferring our technologies to the local industries and even expand them,” said Fernando Naredo, vice-president, government affairs, Europe, Westinghouse. “We buy and build reactors and we give the technology to locals and buy from them,” he said. The company is expected to supply AP-1000 type of 1,100MW nuclear reactors to India. “We (were) initially buying from South Korea where we had transferred our technology and now we may go with local companies for production of components. For Indian plants also we might import initially from Korea,” he said. A number of initiatives are being taken by the firm to work with the industries that are already working closely with state-owned Nuclear Power Corporation of India Ltd. Source: Tech News - Livemint.com | 23 Nov 2008 | 6:22 pm
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