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CID interrogates Rajus, Srinivas!AP CID, which took former Chairman of Satyam Computer B Ramalinga Raju, his brother and ex-MD Rama Raju and former CFO V Srinivas into its custody from the Chanchalguda Jail has begun a thorough interrogation of the trio.Source: Zee News : Business | 18 Jan 2009 | 11:38 pm Arcil plans USD 600m fund with foreign, domestic cos!The Asset Reconstruction Company India Ltd (Arcil) is planning to float a USD 600-million fund in the next three months for acquiring stress assets.Source: Zee News : Business | 18 Jan 2009 | 11:38 pm Don`t take action against telcos on ADC issue: SC to BSNL!The Supreme Court has directed government-controlled BSNL not to take action against private telecom operators, including Tata Teleservices, for not paying access deficit charges of more than Rs 90 crore.Source: Zee News : Business | 18 Jan 2009 | 11:38 pm No nod for Satyam`s buying Maytas Prop for Rs 6,410 cr: Prasad!Amid criticism of independent directors for clearing acquisition of Maytas by Satyam for Rs 6,410 crore, ex director TR Prasad on Sunday said that the approved formula would have brought down the purchase price by half.Source: Zee News : Business | 18 Jan 2009 | 11:38 pm Bahrain telecom firm picks up 49% in Indian mobile entity!Bahrain`s telecom operator Batelco has agreed to purchase a 49 per cent shareholding in S Tel Limited (S Tel), a recently established Indian mobile operation, for USD 225 million, expanding its footprint in India.Source: Zee News : Business | 18 Jan 2009 | 11:38 pm Fresh trouble for with Axis Bank asking for fresh guarantee!EMRI, directors of which quit the board following the Satyam fraud, has run into a new trouble with one of its lenders asking for a fresh guarantee to the Rs 38 cr loan even as the NGO is looking for fresh donors to bail it out.Source: Zee News : Business | 18 Jan 2009 | 11:38 pm SBI to wait for `clarity` before lending further to Maytas!SBI, which has exposure of Rs 500 crore to Raju family-promoted two Maytas firms, has said it has put on hold any further lending until there is clarity on the status of the companies, which are under scanner due to Satyam-scam.Source: Zee News : Business | 18 Jan 2009 | 11:38 pm Finacle develops software for rural banking!The banking product division of Infosys Technologies, Finacle, is now diversifying itself to develop a software product suite for the rural operations of the financial sector.Source: Zee News : Business | 18 Jan 2009 | 11:38 pm Fortune 500 firm terminates contract with Satyam: Report!A Fortune 500 American insurance company has terminated its contract with the scam-tainted Satyam Computer, rendering about 400 of its employees jobless, according to media reports.Source: Zee News : Business | 18 Jan 2009 | 11:38 pm ONGC gets oil blocks in Ganga basin in Bihar!Public sector oil exploration and production major Oil and Natural Gas Corporation (ONGC) has got the contract for oil exploration in Ganga basin area of Bihar.Source: Zee News : Business | 18 Jan 2009 | 11:38 pm Ask Mint | Partial disability? Child plan possibleThe insurance business in India isn’t just growing, but also becoming more sophisticated in terms of product offerings. To help readers keep ahead of developments in this business, Mint features a Q&A on insurance every Monday. I am 32, a government employee with an annual income of Rs5 lakh. I have a 10-year-old son, who is suffering from partial disability. I want to invest in an insurance plan which will not only take care of his education in future but will also provide for his needs if I am not around. Is there a special plan for children with disability? Your child’s partial disability may not be a constraint while buying a regular child plan, unless the policy covers the life of the child as well. You can choose any childinsurance policy, depending on your requirement and returns offered. Every child plan covers the life of the parent as well; therefore, the child can be self-sufficient in the unfortunate case of the parent’s death. For better returns, it is advisable to start early. I want to invest in an insurance plan. While going over the key features, I came across the term “paid-up policy”. What does it mean? If a policy is declared paid-up, does it impact the sum assured? If the premium on a life insurance policy for a minimum specified period is paid in full, the policy may continue even if no subsequent premiums are paid. Such policies are paid-up policies. There is an impact on the sum assured if the policy is declared paid-up. For instance, if six out of the originally stipulated 30 premiums are paid, the paid-up sum assured under a paid-up policy could still be 20% ofthe original sum assured of the policy (premiums paiddivided by total premiums payable). Readers are welcome to write in with their queries to askmint@livemint.com. The questions will be answered by senior executives from leading insurance firms. This week’s expert is T.R. Ramachandran, managingdirector and CEO, Aviva India. Source: LatestNews-Home - Livemint.com | 18 Jan 2009 | 5:37 pm Port policy puzzle: one Chinese firm gets security clearance, another doesn’tBangalore: The Union government has given security clearance to a consortium that includes a Chinese port operator to bid for the coal and iron ore terminals at Paradip Port but has denied permission for another group that includes a Hong Kong company. Chinese companies or groups with Chinese connections are banned from bidding for Indian port projects by the Union cabinet committee on security because of the political relationship between the two countries. Hong Kong, a former British colony, is now part of China. The ministry of shipping, on advice from the defence and home ministries, has given the go-ahead for China’s state-owned Ningbo Port Group Ltd to bid for the Rs1,070 crore project at Paradip in Orissa, the first such approval for a Chinese firm since the ban came into effect in 1997. Ningbo, which operates China’s second largest port by cargo handled, has teamed up with local firm Monnet Ispat Ltd and Hong Kong-based Great Harvest (Holdings) Ltd for the bid. On the other hand, the ministry has denied security clearance for Hong Kong-based commodity trader Noble Group Ltd on security grounds, said an executive at one of the bidding firms on condition of anonymity. The Noble Group-led consortium, which included Mumbai-listed Gammon Infrastructure Projects Ltd and state-owned MMTC Ltd, was ranked second in a list of 12 qualified bidders for the two terminals. Shipping secretary A.P.V.N. Sarma said security-related issues for ports were dealt with by other government ministries and departments. “We merely take security clearance of firms bidding for port projects from the ministry of home affairs, ministry of defence and the ministry of external affairs, and issue the letter. We have no particular say in this policy,” Sarma said on phone from Delhi on Friday. “I will not be able to clarify what the security clearance for the Paradip Port terminals means as a policy for future port projects.” Another ministry official said on condition of anonymity that security clearance was always port specific, depending on the location of the port, but declined to elaborate further. Noble Group and the ETA-Saqr consortium could not be reached for comments. Of 12 qualified bidders, Paradip Port Trust recommended the first eight to the shipping ministry for security clearance. The ministry rejected the Noble-led consortium and another group comprising Dubai-based Emirates Trading Agency Llc. and Ras Al Khaimah-based port operator Saqr Port Authority on national security considerations, the executive mentioned earlier said. Noble Group is also part of a consortium that is developing the Rs1,700 crore Gopalpur Port, which is owned by the Orissa government. The project was awarded to a consortium comprising Orissa Stevedores Ltd (OSL), Sara International Ltd and Noble Group for development and operations. Noble has a 33% stake in Gopalpur Ports Ltd, the port operating company. Executives at the Noble-led consortium are surprised at the turn of events. “Noble is headquartered in Hong Kong, but is not a Chinese company. It is owned by Americans and non-resident Indians,” said another executive working for the consortium. He, too, didn’t want to be named. The security clearance granted to one Chinese firm and the rejection of another based in Hong Kong has caught the industry by surprise. “Does this mean that Chinese firms are allowed to participate in India’s port projects?” asked an executive with a Mumbai-based port logistics firm. “If they are allowed or not, then why was one given clearance and the other thrown out?” The Paradip tender has created uncertainty among local firms looking to partner Chinese firms for India’s port tenders. “The Union government should make its policy clear and transparent on this issue. Can I go ahead and participate in port projects, teaming up with Chinese firms without wasting my time on whether the consortium will get security clearance or not?” the executive at the port logistics firm said. The world’s top container cargo port operator, Hutchison Port Holdings, the port operating unit of the diversified Hutchison Whampoa Ltd owned by Hong Kong billionaire Li Ka-shing, has been denied permission in the past by the Union government to bid for projects at the Jawaharlal Nehru Port at Nhava Sheva, near Mumbai, because of its links with mainland China. Taiwan shipping firm Evergreen Marine Corp. (Taiwan) Ltd has also been denied clearance for the same reason. In another instance, a tender awarded to a consortium comprising two Chinese firms— Kaidi Electric Power Co. Ltd and China Harbour Engineering Co. Ltd—and Mumbai-based Zoom Developers Pvt. Ltd in 2005 by the Kerala government to develop a port at Vizhinjam was scrapped on issues related to national security. One of the Chinese firms in the group was also operating a port in Pakistan. Graphics by Sandip Bhatnagar / Mint Source: LatestNews-Home - Livemint.com | 18 Jan 2009 | 5:24 pm Cong regains ground, BJP looks vulnerableNew Delhi: Reflecting the present fluidity in Indian politics, the Congress party has bounced back in the weeks after the 26 November terror attacks in Mumbai, just as the main opposition, Bharatiya Janata Party (BJP) has, after the electoral setbacks in Rajasthan and Delhi, begun to look vulnerable. The outlook has become even more unpredictable with the Left, after its exit from the Congress-led United Progressive Alliance (UPA), beginning to chip away at the allies of both Congress and BJP as part of its designs to forge a so-called third front. But analysts caution that this situation, too, could change rapidly as political parties prepare for the general election due by May.  Upbeat: A 26 November picture of Sonia Gandhi at an election rally in Rajasthan. The Congress chief has directed all state units to submit lists of probable candidates by January-end. Ramesh Pathania / Mint According to the minister, the government’s quick response after 26/11, in replacing home minister Shivraj Patil and former Maharashtra chief minister Vilasrao Deshmukh and following this up with tough new anti-terror laws, has bolstered the public perception of the government, otherwise often accused of being soft on terror. “We will improve our tally (currently 151 in the Lok Sabha). We may lose some seats in Andhra Pradesh, Tamil Nadu and some smaller states. But we will better it in larger states like Rajasthan and Madhya Pradesh. Our proposed electoral alliance with Samajwadi Party will help the party in Uttar Pradesh too,” Ravi claimed. An upbeat Congress leadership is moving quickly to cement its strategy. At a meeting on 11 January, party chief Sonia Gandhi directed all state units to submit a list of probable candidates by the end of the month. The BJP, which had been on the ascendancy for most of 2008, is seemingly struggling. Political analysts say the not-so-subtle challenges to the positioning of L.K. Advani as the party’s prime ministerial candidate has only further roiled prospects after the surprise rout in the state elections in Delhi. The Congress believes that the choice of Advani, who is perceived to be ideologically more extreme, especially when compared with former prime minister Atal Bihari Vajpayee, will polarize minority votes in the country to its advantage. “It is clear that there is a polarization among the electorate and the Congress is expected to get the edge in the Muslim-populated constituencies in states other than Uttar Pradesh,” said a senior Congress leader, who did not want to be identified. The Left, meanwhile, is stepping up efforts to form a non-BJP, non-Congress alternative A senior BJP leader, who did not want to be identified, said: “The party is in a bad shape. We have not improved our position at all. Internal feud is going to play against us in the coming elections, too.” At the same time, the BJP has to face the growing restlessness among some constituents of the National Democratic Alliance—the coalition that had governed till 2004. Leaders of its major allies, such as the Janata Dal-United, or JD (U), and Biju Janata Dal, or BJD, privately admit they have “serious differences” with the BJP. The Communist Party of India (Marxist), or CPM, and other Left parties have publicly claimed they have received positive signals from some NDA allies keen to explore a third alternative at the Centre. However, senior BJP leader Seshadri Chari defended his party. “The BJP has improved its position and the people have been convinced that the stance of the party on terrorism and economy were correct.” “The UPA needed a drastic incident like the Mumbai attacks to fall in with our position that the country needs a strong law to prevent terrorism,” Chari said. But analysts say the situation could still change ahead of the general election. “The situation is fluid yet. We have to see how things shape up both on the political and economic front in the next few months,” said B.G. Varghese, political analyst and visiting professor, Centre for Policy Research. Like the BJP, the Congress too may see ruptures in its existing coalition. Its relationship with the Dravida Munnetra Kazhagam (DMK), which is seeing a decline in popularity, is described by some insiders as rocky. The Left, meanwhile, is stepping up efforts to form a non-BJP, non-Congress alternative. “The emerging political situation in the last 10-15 years has proved that the era of one-party rule is over and there is an emerging multipolarity. In the last Lok Sabha polls, the BJP and the Congress together won only 283 seats, which is just a little more than the halfway mark in the 543-member House. Thus, in such a situation, a third front becomes much more relevant,” said S. Ramachandra Pillai, CPM politburo member. Even while admitting that the UPA has an edge over NDA, Varghese said, “The BJP did make significant gains in the recent by-elections in Karnataka and swept the Jammu sector in the J&K polls. However, the party does seem to be on the backfoot right now, but all this could change.” Arguing similarly, Bidyut Chakrabarty, a professor in the department of political science at Delhi University, said, “Both the Congress and the BJP do not have any reason to be happy about the assembly election results, because they were a comment on the state governments. But the BJP is in disarray and it might have calculated its chances without taking into account the realities.” Source: LatestNews-Home - Livemint.com | 18 Jan 2009 | 5:23 pm Consumer goods industry to post impressive growth: surveyNew Delhi: The consumer goods sector will again register an impressive growth for the quarter ended December, indicates a Mint survey of five brokerages. The global meltdown and its impact on the Indian economy notwithstanding, the fast-moving consumer goods sector recorded double-digit growth in its revenues and profits in the preceding three quarters. The brokerages—India Infoline Ltd, DSP Merrill Lynch Ltd, Motilal Oswal Securities Ltd, Angel Broking Ltd and IDFC-SSKI Securities Ltd—say the trend would have continued in the just concluded December quarter as well. Consumer product companies, such as Hindustan Unilever Ltd (HUL), ITC Ltd, Britannia Industries Ltd, Colgate- Palmolive (India) Ltd, Nestle India Ltd, Dabur India Ltd, Marico Industries Ltd and Godrej Consumer Products Ltd (GCPL), are expected to post an average growth of 19% in sales and 10.5% in profits, the data collated from the brokerages indicate. Also See Making Higher Profits According to the brokerages, market leader HUL’s sales are expected to have grown between 16% and 23%, whereas its profits are likely to lag behind, growing by between 9% and 15%. A report by Motilal Oswal says HUL is likely to post a 23% jump in revenues at Rs4,542 crore, and 15% increase in its profit after tax at Rs639 crore, for the quarter ended December, as against the same period last year. But Angel Broking sees a 16% growth in sales at Rs4,269 crore and 9% rise in profit at Rs603 crore, and this growth, says the firm, will mainly be because of price increases the company executed during the quarter. Motilal Oswal says it expects the volume (or the product offtake) growth to decline 5.5% in the December quarter over the same quarter last year. ITC is expected to register 16-23% increase in net sales and 5-14% growth in net profit. India Infoline predicts a 16% growth in sales at Rs4,109 crore and 5% jump in profit at Rs875 crore. This is the lowest growth predicted among the five brokerages. The sector is expected to post an average growth of 19% in sales and 10.5% in profits According to the estimates by India Infoline, Britannia is expected to register a 23% growth in sales at Rs810 crore and a 7% increase in profit after tax at Rs52 crore. Motilal Oswal expects sales to grow 22% to touch Rs800 crore and profits to expand 10% to Rs54 crore. In the case of Nestle India, Motilal Oswal predicts the maximum 21% growth in sales at Rs1,080 crore, while DSP Merrill Lynch estimates maximum growth of 26.5 % in net profit at Rs118 crore. “We expect Nestle to be yet again the fastest growing company this quarter,” the DSP Merrill Lynch report said. “It (Nestle) continues to benefit from strong sales growth and good pricing power is enabling the pass-through of rising input costs.” The brokerages estimate Colgate-Palmolive sales and profits to grow 14-16% and 12-17% in the stipulated quarter. While Motilal Oswal predicts the maximum increase in sales at Rs425 crore, DSP Merrill Lynch estimates sales to grow to Rs419 crore. “We expect a toothpaste volume growth of 10% and largely flat margins versus declining trend earlier,” says DSP Merrill. Home-grown consumer products company Dabur India’s margins are likely to decline due to high raw material prices, losses in the retail business and higher growth in low-margin overseas subsidiaries, according to the five brokerages. The company is expected to post 15-18.5% growth in net sales and 9-13% growth in net profit, according to estimates. According to IDFC-SSKI, which has predicted the maximum increase of 18.5% in net sales at Rs770 crore and 13% growth in net profit at Rs107 crore, Dabur is expected to be driven by “high growth in hair care category”. Marico’s domestic volume growth is likely to decline on a quarter-on-quarter basis, but international businesses in countries such as Bangladesh and Egypt are expected to record growth. The company is expected to post a robust 25% growth in sales at Rs635 crore, and 12.% increase in profit after tax at Rs48 crore, according to Motilal Oswal’s estimates. Even in the case of GCPL, benefits of lower input costs will only partially get reflected in this quarter. India Infoline estimates GCPL’s sales to grow 19% to Rs325 crore while IDFC-SSKI expects profits to grow 6% to Rs45.7 crore. Graphic by Ahmed Raza Khan / Mint Source: LatestNews-Home - Livemint.com | 18 Jan 2009 | 5:22 pm Dadri will need Rs20,000 cr investment, RNRL tells HCMumbai: The Dadri Power Project in Uttar Pradesh, being developed by Reliance Power Ltd, would need an investment of at least Rs20,000 crore, Reliance Natural Resources Ltd (RNRL) has said in its latest affidavit filed in the Bombay high court where it is fighting a case over the terms of gas supply pact with Reliance Industries Ltd (RIL). This “colossal” sum of Rs20,000 crore cannot be raised unless RNRL gets a “bankable gas supply contract” from RIL, the affidavit said.  Money matters: Harish Salve, lawyer, Reliance Industries Ltd. Ashesh Shah / Mint The affidavit came in a reply to RIL lawyer Harish Salve’s allegation during arguments that Adag had raised a huge amount from overseas lenders, so money should not have been an issue for the Dadri project. RNRL affidavit conceded that $500 million (Rs2,440 crore today) was raised through external commercial borrowing route, but said that it was not enough for the project which envisages generation capacity of 7,480MW. The money was parked in debt-based mutual funds—following Reserve Bank of India norms—as the project was delayed because of RIL’s refusal to sign a bankable contract for gas supply, it says. It also refuted Salve’s statement that Dadri project would take several years to come up. It can be set up within 20-24 months, RNRL said. The affidavit also reiterated RNRL’s stand that the Union government need not approve the price of KG gas which RNRL is supposed to get. The court is likely to pass the order on the current stay on sale of gas from KG basin to third parties on Monday. Source: LatestNews-Home - Livemint.com | 18 Jan 2009 | 5:21 pm Need to Know | ESPN submits modified offer for DTH operatorsNew Delhi: Sports broadcaster ESPN has submitted a modified reference interconnect offer (RIO) for direct-to-home (DTH) operators to the Telecom Regulatory Authority of India (Trai), following an order from the Delhi high court. The sports broadcaster informed the court that it has amended its RIO and submitted a copy to the regulator. Last week, admitting Trai’s contempt petition, the court had threatened ESPN with criminal prosecution if it failed to comply with Trai’s tariff directions. —PTI ********* CERC to announce new tariff regulations today New Delhi: After being delayed for a long time, the new electricity tariff regulation for 2009-2014 is likely to be announced on Monday. “The new tariff regulation to be applicable for five years, will be announced on Monday (19 January) and can be accessed on our website,” power regulator CERC chairman Pramod Deo said. —PTI ********* Nuclear forgings: Bhel to tie up with Sheffield New Delhi: State-run power equipment maker Bharat Heavy Electricals Ltd (Bhel) is set to form a joint venture (JV) with UK-based Sheffield (Forgemasters) International Ltd to manufacture nuclear forgings. The JV is expected to be on a technology transfer basis and Bhel would buy the technology from the foreign firm. —PTI ********* Bharti Airtel to launch IPTV services New Delhi: Soon after launching direct-to-home (DTH) cable operations, Bharti Airtel Ltd is all set to start IPTV (Internet Protocol on Television) services, popularly known as triple play (voice, data and video) in the country. According to persons close to the development, Airtel may announce the launch of services in the next one or two days. IPTV refers to TV delivered through broadband. Besides Airtel, other telecom operators such as MTNL, RCom and HFCL have already started IPTV services in the country. —PTI ********* US court upholds CFA claim over ICFAI Washington: The Chartered Financial Analyst Institute has said that a US federal court has ruled in its favour by upholding the 1998 injunction which prohibited the Institute of Chartered Financial Analysts of India (ICFAI) from using the trademarks similar to that of the CFA. In 2006, ICFAI challenged the 1998 injunction alleging that the US federal district court judge did not have personal jurisdiction over ICFAI at the time of the original judgement. The three-judge panel of the 4th circuit court of appeals ruled that in fact, the district court judge did have jurisdiction over ICFAI since it “purposefully transacted business” with CFA Institute in Virginia, said a CFA statement. “As a result, ICFAI is required to abide by the 1998 injunction and its 1995 agreement to stop using CFA Institute trademarks and confusingly similar trademarks in the US and Canada,” it said. —PTI ********* Nalco may pick majority stakes in Indonesian cos New Delhi: State-owned National Aluminium Co. Ltd (Nalco) is close to picking up majority stakes in two Indonesian mining firms at an estimated investment of Rs300 crore. The deal, likely to be clinched in four months, would allow Nalco to get ownership of coal blocks with an estimated reserves of at least 300 million tonnes, a top official of the company said. “We have identified a 300 million tonnes coal block in Indonesia. Once bought, we will be able to use it for our proposed smelter in Indonesia and also import it to India,” Nalco chairman and managing director C.R. Pradhan said. —PTI ********* Jaiprakash Associates’ Q3 profit after tax up 6% New Delhi: Infrastructure conglomerate Jaypee group flagship firm, Jaiprakash Associates Ltd, has reported a 6% increase in profit after tax for the quarter ended 31 December, at Rs165.51 crore as against Rs155.8 crore in the same period previous year. Total income in the quarter rose 44.49% at Rs1,447.12 crore against Rs1,001.57 crore in the corresponding period last year. —PTI ********* Source: LatestNews-Home - Livemint.com | 18 Jan 2009 | 5:21 pm Ask Mint | Bailout, the word of the year On 9 January, the American Dialect Society and the Linguistic Society of America voted for the Word of the Year (Woty) 2008, after looking at the scores of words nominated for this recognition by academics, lexicographers, media persons and amateur wordsmiths. The words nominated included new words as well as old words that had become prominent during the year. “Change” is not a new word but was at the top of the list for a while. Both US Republican presidential nominee John McCain and his Democratic counterpart Barack Obama focused on change as the need of the hour. Also ReadVR Narayanaswami’s earlier columns As a result of the vote, “bailout” was declared Woty for 2008. This is a fitting sequel to last year’s word, “subprime”, since both are of Wall Street provenance. Those who have been following the story of the vote can see that nominations have come mainly from two sources. During the first three quarters of 2008, the historic presidential elections in the US unfolded a new chapter in history, ushering in the “post-racial period”. Then came the deepening global financial crisis which made people talk about bailout and meltdown and Main Street versus Wall Street. “Bailout” has at least three common meanings. First, it means parachuting to safety from an aircraft in an emergency. Second, it means coming to the rescue of a corporation or other business organization on the brink of failure. Third, it means release of an arrested person against a deposit of money and a guarantee of the person’s compliance with the court’s orders. In the use of “bailout” in the modern financial context, there is a trace of all three meanings. An additional figurative meaning can be drawn from bailout in the sense of saving a sinking boat by scooping out water from it with a bail or bucket. The second place on the vote went to “Obama”, not the name itself but the derived terms. An obvious coinage was Obamanation or Obamination. There were dozens of such words, including Obama-phoria, Obamatopia, Obamaland, Obamaspeak, and, inevitably, Obamamania. When Sarah Palin stepped on stage, the headline ran, “Palin mania sweeping the nation”. Anything that has her name on it, they said, would sell like hot cakes. But not for long, as the Palin association did more damage than good to the campaign. Another interesting word in the news was “maverick”. McCain and Palin repeatedly called themselves mavericks. The word means an unbranded calf, and can be traced to the name of Samuel Maverick, a Texas rancher who did not brand his cattle and allowed them to stray. By extension the word came to mean a dissenter or a non-conformist. The year saw the creation of several words with the suffix “-gate”. A legacy of Watergate and the Richard Nixon era, the suffix continues to be productive. Whenever there is a scam, the term is invoked. “Spitzergate” and “Palingate” are examples with proper nouns as roots. “Wardrobegate” emerged after Palin went on a lavish shopping spree that cost the campaign a quarter of a million dollars. Then there was “Blagojevichgate” linked to the name of the Illinois governor who tried to sell a senate appointment. Turning to the other major source of words of the year, the financial crisis was known by different names: Downturn was a mild term compared with recession, meltdown, and credit crunch. “Meltdown” primarily refers to the failure of the cooling system of a nuclear reactor resulting in the melting of the fuel rods and release of dangerous radiation. Environmentalists are worried about another meltdown, that of Arctic ice. But faced with the grave threat to the economy, European Union leaders are considering putting global warming as an issue on the back burner (Mint, 14 October, 2008). The nominations included a few words that were not linked to either the election or the financial crisis. “Recombobulation area” refers to an area in the airport where passengers could get their belongings back after passing security. “Shovel-ready” was declared most likely to succeed, and refers to an infrastructure project ready to start when funds are available. Michael Phelps, who won eight medals and set seven records in the 2008 summer Olympics, inspired the word “Phelpsian” for excellent, outstanding. “Staycation” was the combination of stay and vacation, and meant a vacation spent without travelling. V.R. Narayanaswami, a former professor of English, has written several books and articles on the usage of the language. He looks at the peculiarities of business and popular English usage in his fortnightly column. Comments can be sent to plainspeaking@livemint.com Source: LatestNews-Home - Livemint.com | 18 Jan 2009 | 5:21 pm GLOBAL MARKETS WEEKAHEAD - Equity rally; pausing or stalling?LONDON (Reuters) - World equities are still well above the rock bottom levels they hit at the end of last year, but half way through January the bounce has lost its spring.Source: Reuters: Money News | 18 Jan 2009 | 5:13 pm Britain finalises second bank bailoutLONDON (Reuters) - Britain is poised to guarantee "toxic debt" worth up to 200 billion pounds ($298 billion) in a second bank bailout designed to boost lending and fend off a prolonged recession triggered by the worst economic turmoil in 70 years, newspapers reported on Sunday.Source: Reuters: Money News | 18 Jan 2009 | 5:11 pm A citizens’ security initiativeNew Delhi: The frequency and impact of terror attacks has been growing. But each new strike seems to take the authorities by surprise. Not willing to simply blame the government any more, a citizens’ group has now decided to do its bit to prevent such attacks. It has set up Jagruk Nagrik Suraksha Sangathan or JNSS in Delhi. The aim is to help citizens become their own guards. Click here to watch video JNSS President Denson Joseph says a citizen has to “take up the responsibility of becoming alert, forming a network, and falling in line, to secure himself and the people around him. If we do that, we would not have the security forces to blame.” As the first part of its action plan, JNSS has identified areas that are most vulnerable to terror strikes. These are busy and crowded markets. Two separate teams are being formed, one to keep a watch and the other to act in case of an emergency - the Citizens’ Intelligence Network to keep a vigil Citizens’ Active Response team. All the shopkeepers have been asked to volunteer just one worker to join the Citizens’ Active Response team. They would be expected to take note of any suspicious activities and people moving around the market. Sarojini Nagar is one of the first where the plan is being implemented. It’s a highly popular shopping destination for young people and has been hit twice by militants. The market association here has responded enthusiastically to the idea of citizens coming together to fight terror. A similar approach has been adopted by the Mehrauli market, which was the site of a blast few months ago. Markets that are likely to join the initiative in the next stage include Tilak Vihar, Lajpat Nagar and Yusuf Sarai. The idea behind this citizens’ initiative is simple, be alert, be secure. But how far it succeeds in spreading the idea and convincing citizens’ organizations to implement it pro-actively, remains to be seen. Source: LatestNews-Home - Livemint.com | 18 Jan 2009 | 5:06 pm HDFC Bank cuts lending rates by up to 200 basis pts - Business Standard
Source: Google News India - Business | 18 Jan 2009 | 5:01 pm Lessons in developmentNew Delhi: It was a journey like no other. 350 young people traveled across India for 18 days meeting the unsung heroes who have brought about change in remote villages and small towns. Called the Tata Jagriti Yatra, the train began its journey from Mumbai on December 25 and went to Thiruvananthpuram, Kanyakumari, Puducherry, Chennai, Bengaluru, Hyderabad, Bhubaneshwar, Jamshedpur, Lucknow, Tilonia and Anand and back to Mumbai. Along the route, various social and business entrepreneurship models were showcased and participants had the opportunity to interact with those who built these models to bring about positive changes in the lives of hundreds of thousands of people in rural and small town India. Click here to watch video Engineers, artists, entrepreneurs and students were chosen from 10,000 applications from India and abroad for this journey. They hope to implement what they see. Says Amol Kadam who comes from a small village in Satara district of Maharashtra, “I want to implement the rural development model on water management that I saw in Orissa. Even my village is drought prone and the method here is very easy.” Amol is not the only one. The trip has many students looking to learn and implement what they see in their own villages or towns. But will the idealism last? Shashank Mani thinks it will. The chairman of Jagriti Seva Sansthan and the architect of the Yatra, Mani had organized and undertaken a similar journey in 1997 to commemorate 50 years of independence. The trip saw many take up social service and community work later. The ‘Yatris’ have met leaders like Dr R.A. Mashelkar, president of the Global Research Alliance, National Chemical Laboratory, M.S. Swaminathan of the Research Foundation, working actively on sustainable agriculture and rural development. Others, like Bunker Roy of Barefoot College, Tilonia and Aravinda Eyecare Hospital teams among others. Source: LatestNews-Home - Livemint.com | 18 Jan 2009 | 4:55 pm Ask Mint | Pricing options: keeping track of both intrinsic and time values Johnny: Last week you had left our discussion in the middle. Jinny: I think last week you had raised a question: What if the strike price of a call option is higher than the current market price of the underlying asset? By now I hope you would have figured out that in such a situation your option would have no intrinsic value. In fact, if you subtract the strike price from the current market price, you would get a result in the negative. But as I had said, an option having negative intrinsic value is only as bad as an option having zero intrinsic value. In both situations the option would end up without being exercised and the likely loss to the option buyer is the premium that he has paid for buying the option.  Jayachandran/Mint Johnny: That was all about call options. But how can we know whether a put option is “in the money” or “out of money”? Jinny: The basic formula in respect of put options is the same but the situations are opposite. The strike price of the underlying asset for an “in the money” put option is higher than its current market price whereas the strike price would be low if the option is “out of money”. In other words, if you can make money by exercising your put option then it is “in the money”, and if you can’t make money, then your option could be either “at the money”, or “out of money”. Suppose you hold an American put option for selling a single share of Company X at a strike price of Rs100 per share before the expiry date and the same share is presently trading at a lower price of Rs80. You can get the intrinsic value of your option by subtracting the current market price from the strike price of your put option, which in the present case is Rs20. Johnny: I got the point, Jinny. So far you have explained how intrinsic value is determined, but I was just wondering what role time value plays in deciding the value of an option premium. Jinny: As I had said, the price of an option revolves around both its “intrinsic value” and its “time value”. The intrinsic value of an option keeps fluctuating depending on the current price of the underlying asset. To start with, your option may be “at the money” but as the days pass, your option may get “in the money” or "out of money" depending on the direction of current price movements. This upward or downward movement of the intrinsic value will keep on going till the expiry of your option. To decide the option premium you need to take into account the present intrinsic value of an option and how much that intrinsic value is likely to change over time. However, the role of intrinsic value in fixing the premium differs for European options and American options.I will briefly explain the reasons. Johnny: Yes, Jinny. It would be better if you could explain. Jinny: As you know, American options can be exercised on or before the expiry date, which means that while deciding the premium for American options you need to not only take into account the present intrinsic value but also the likely changes in the intrinsic value over each day in the entire life of the option. To make such a calculation, the Binomial option pricing model is very useful. So, the premium of the American option is always higher than its present intrinsic value so that the buyer is not able to earn any profit by immediately exercising it. You may buy an American option that is “in the money” right at the beginning but you can make profit only when the intrinsic value of your option further increases during the remaining term. But that’s not all. To take care of further increase in the intrinsic value, the option seller also includes the “time value” in the option premium. You can instantly know how much time value the option seller is charging by subtracting the intrinsic value at the beginning of the option term from the total option premium. So, if you are paying Rs30 for an option enjoying Rs20 intrinsic value, then Rs10 is the time value of your option. The chat on this will continue next week. What: The pricing of an option has to take into account both its “intrinsic value” and “time value”. Why: The price of an American option is always higher than its present intrinsic value because such options can be exercised before the expiry date. How: The binomial option pricing model is very useful for pricing American options. Shailaja and Manoj K. Singh have important day jobs with an important bank. But Jinny and Johnny have plenty of time for yoursuggestions and ideas fortheir weekly chat. You can write to both of them atrealsimple@livemint.com Source: LatestNews-Home - Livemint.com | 18 Jan 2009 | 4:54 pm Time to take a hard look at multiple banking - Livemint
Source: Google News India - Business | 18 Jan 2009 | 4:41 pm How the Bajajs split and made up after 7 yrs Mumbai: The last day of 2008 saw the sudden and quiet resolution of the Bajaj family dispute, ending a fight in the third generation of a family business house founded in the 1930s that had begun just as suddenly seven years ago.  Standing strong: Bajaj Auto Ltd chairman Rahul Bajaj with sons Rajiv (left) and Sanjiv (right). India Today Rahul and Shishir are brothers and siblings Madhur, Shekhar and Niraj are their cousins, but the five have always been considered brothers. Interestingly, the dispute saw Shishir on one side, and Rahul, Niraj, Shekhar, and Madhur on the other. The September meeting was also attended by Kushagra Bajaj, son of Shishir Bajaj, brother-in-law of Kumar Mangalam Birla of the Aditya Birla group, and the man widely seen as having asked for more and caused the split.  Kushagra Bajaj, CEO, Bajaj Hindusthan Ltd. India Today Last September’s meeting helped clear some bad blood between the two camps and set the stage for a settlement. And according to Niraj Bajaj, it happened “just like that”. “We kept bumping into each other as our offices are on the same floor and the meeting happened...” By the end of the meeting the five Bajaj brothers had agreed that Niraj, chairman and managing director of Mukand Ltd, the steel products firm, and the youngest of the five and his nephew, Kushagra, the joint managing director of Bajaj Hindusthan Ltd who is acknowledged even by his uncles as one of the brightest and ablest minds among the Bajaj scions, would work out the details of the settlement. The two were asked to meet the next day to understand the issues and work out a formula that would be acceptable to both camps.  Shishir Bajaj. India Today Also See Family Tree (Graphic) And on 1 January, the Bajaj group announced to the world that the settlement had been reached. Kushagra said his family was happy with the settlement but declined further comment. A proud legacy Jamnalal Bajaj, the founder of the Bajaj business house, was a businessman with a nationalist mindset who funded the freedom movement in part. Mahatma Gandhi, one story goes, used to refer to Bajaj as his fifth son. His five grandsons, Rahul, Shishir, Shekhar, Madhur, and Niraj built and nurtured a business with interests in two-wheelers, insurance, sugar, steel, and household electrical appliances. By 31 December, they had a deal; Shishir and Kushagra had the two firms they wanted and some assets That changed in 2001. At a family gathering in Pune, Shishir asked for a division. The rest of the family brushed off his demand because they never thought he was serious. Then, seven months later, at another family gathering, Shishir repeated his demand. “We were all shocked,” says Niraj, all the more so because “there was equality in what we (the brothers and their families) did.” According to him, everyone was entitled to the same share of profit from holding companies. “The pocket monies, the number of holidays...were all decided in a fair and equitable manner,” says Niraj. “Till then (late 2001), the family used to celebrate festivals together and we used to go on holidays together.” Shishir’s demand, seen within the family as having been made at the instance of Kushagra, changed all that. The two camps intermittently washed dirty linen in public and fought battles on several fronts including in the media. Kushagra was at the forefront of the battle, as was Rahul Bajaj, the patriarch of the family. At the heart of the matter Niraj declined comment on the specific points of contention between the two camps. However, media reports, and documents related to the fight between Bajaj and Bajaj, that have been previewed by Mint, show that it started with Kushagra. Shishir’s son wanted to have the financial services business of Bajaj Auto Ltd, which was subsequently carved out in 2008, and is now under the management control of Sanjiv, Rahul’s younger son. Kushagra decided to focus his attention on creating a global sugar firm and he believed he could do it with Bajaj Hindusthan, provided he and his father could break away from the Bajaj group. “I thought that if I struck a deal, howsoever unfair it was, I would ultimately get the freedom to pursue my own vocation as an aspiring entrepreneur and business manager. I would be able to work to my heart’s content, and god willing, I could achieve business success...”, he said in a media note during the height of the dispute in 2007. The rest of the family clearly didn’t see it that way. “In a joint family, some sacrifices and compromises are required to stay together,” Niraj said. “A separation was not in anybody’s mind.” It is also clear that no one in the group had the slightest intention of expanding the sugar business into one of global scale. Bajaj Auto, which has since been split into finance, auto, and investment firms in an informal division between Rahul’s son’s Sanjiv and Rajiv, was the largest firm in the group. The rest were small in terms of both revenue and market value. Kushagra had other ideas. He returned to India in 2001 after graduating with an MBA from the prestigious Kellogg School of Management, Northwestern University, US; And as he said in the same media note, “We planned to take our share, even if it was substantially lower than what was due, and chart our own course of life.” The initial reaction of the rest of the family was disbelief, says Niraj. “We were always proud of the fact that we were a joint family in the true sense of the joint family. All the companies were professionally managed and one member of the family would be at the helm. The ownership was divided among all the family members. In terms of wealth and ownership there was no differentiation.” After it became clear that Shishir and Kushagra wanted out, the talks began. “When wavelengths were not able to meet, we saw no option but to separate,” says Niraj. And while the family tried to work out a settlement, the shares of the Bajaj companies rose with the rising market. “Throughout this period, our companies prospered including Bajaj Hindusthan and all credit for this goes to Kushagra,” adds Niraj. A history of mediation It wasn’t easy arriving at a settlement. Family friends tried...and failed. Union agriculture minister Sharad Pawar, a strong player in local politics in Maharashtra, tried and failed, as did senior Bajaj official and loyalist Dhirajlal S. Mehta. Later, S. Gurumurthy, convenor of the Swadeshi Jagran Manch, a right-wing organization, was drafted to play the role of mediator. He exhorted the family to patch up and not destroy the Bajaj legacy. “My involvement in Bajaj family settlement was entirely personal, and it would not be possible for me to comment. It is better they do it,” he says. Still, the two sides seemed unable to see eye to eye. Then, between September and December last year, everything came together. And plunging stock market indices seemed to have played a role. The settlement, says Niraj, was made possible by “God’s grace and (due) to the market meltdown, that saw share prices of group companies getting realistic”. How the bears helped In 2003, Gurumurthy had worked out a settlement that the two camps had signed off on, but the stock market boom prevented this from being implemented. The split had to be effected by various members of the Bajaj family, buying stakes in some group companies from other members of the family, and selling stake in other group companies to them. The rally on the bourses, however, saw most Bajaj stocks soar. By December 2007, the combined market value of all Bajaj companies was Rs35,488 crore. By the time the settlement was reached, the combined market value of these companies had fallen to Rs12,386.23 crore. The lower valuation actually worked to the benefit of both camps—they paid lower stamp duty, or tax on transactions. Clearing the air Niraj says several misunderstandings were cleared up at the 26 September meeting. Subsequently, with the help of some of the country’s best known lawyers, the two camps signed 20 agreements “big and small”, according to Niraj. They also made around 100 transactions by 31 December, as the month of January heralds the earning season for companies, and promoters are forbidden from trading in shares of companies they control, because boards are scheduled to meet to consider quarterly results. And by 31 December, they had a deal, and Shishir and Kushagra had the two companies they wanted and some family assets. Niraj would like to believe that things never spiralled out of control even though the family fight lasted seven years. Talks did break down, and both sides did approach the Company Law Board, the government arm that oversees the functioning of companies, but the brothers couldn’t avoid each other at work—their offices are all in Bajaj Bhavan and those of Niraj and Shishir actually share a common terrace. “We used to go on evening walks together,” says Niraj, who hopes that one day the five brothers will again gather for family get-togethers. The split, for that is what the settlement really is, has come in the fourth generation of the Bajaj family. Business historians say that it is difficult for a family to stay together beyond three generations. “In the western world, hardly three out of 100 businesses make it to the third generation of a business family,” says Gita Piramal, business historian and the author of Business Maharajas. But in India, however, it is more common for family businesses to survive, because of a tendency among Indian business families to break up... “Breaking up is a good thing,” she says. “While there are no statistics available for Indian business families, I believe they do better after family splits.” Most corporate failures happen because of a lack of focus due to diversification and an over extension of growth without commensurate growth of management processes. Internal issues such as complacency and lack of innovation come into play. So the moment there is a family split, there is much more desire for the family head to make the business work, she adds. Still, Niraj insists the Bajaj group is very much together. It is not as if the group is being split into five parts, he says. It is just that one brother wanted to separate. “The four of us remain together,” he says. satish.j@livemint.com Graphics by Sandeep Bhatnagar / Mint Source: Home - Livemint.com | 18 Jan 2009 | 4:36 pm Boards don’t uncover misdeeds; that is what regulators, accounting firms are for —Hugo Beit, New York Without a doubt and with perfect hindsight, some boards could have acted more boldly in their attempts to avert the current meltdown. But the real fallacy about corporate governance in this crisis does not involve what boards did and didn’t do. It involves what was expected of them. Not that we’re board apologists. Over the past three years, our columns have taken boards to task several times. But in this case we think boards have a right to defend themselves against the scolding cries of “Where were they?” The answer: In most cases, they were where they were supposed to be, doing their jobs—within the limitations of reality. Look, shareholder activists may want board members to act like the superheroes of detailed company operations—like combined forensic accountants/cops. But let’s get real. Most boards meet one or two days a month and are comprised of individuals who hold demanding full-time jobs elsewhere. Given those circumstances, it’s absurd to believe that board members—even the most experienced and best-intentioned among them—can uncover systemic flaws or acts of malfeasance, particularly at complex financial institutions. That’s what regulators, outside accounting firms and internal control systems are for: to help boards ferret out excessive risk and wrongdoing. Boards serve another purpose. Their job is to hire and fire the CEO based on his performance and values, the quality of his team, and the coherence of his business model. When boards are operating as they should, their members are engaged in a vigorous, candid dialogue with the CEO and his top lieutenants about strategic direction and whether the company has the right talent to implement its key initiatives at the right speed. And they’re spending time in the guts of the organization talking to “regular” employees, looking for signs that the CEO’s vision is understood and shared, and that company values mean more to the organization than just lip service proffered for the board’s entertainment. They’re protecting shareholders not by wielding their calculators, but by deploying their good judgment. Unfortunately, even good boards using good judgement didn’t stand much of a chance against the newfangled financial instruments that sparked the current crisis. You can just imagine how the meetings went. Financial wizards showed up with gee-whiz presentations that demonstrated how they could capitalize on the “home ownership society” by packaging mortgages in a way that passed risk to others. They told their boards that consumer credit was rapidly increasing but the models were predicting only modest losses, and assured them that, with low interest rates, huge private equity loans were somehow different in this cycle from those in the past. “Don’t worry,” they surely told their boards, “we have the downside covered”. Obviously they didn’t. Should the board have known that? No, but the CEO and his direct reports ought to have. And if they didn’t, the board should have at least sensed that “knowledge gap” in their bones—and, indeed, that’s where boards merit some flak for the current situation. Surely some financial institutions’ board members should have pressed their CEOs and executive teams harder about their risk assessment systems and demanded to know how risk managers were being rewarded. Instead, too many boards waited until the media started asking questions before forcing their CEOs out of the door. In the future, perhaps boards won’t wait for the “ratification” of negative publicity before they act. But that can only happen when boards have the right kind of people serving on them—members who, in only a very limited time, can exercise good judgment and act with courage. Members who have a special ear: who can hear a presentation from any given executive and, with probing, differentiate between an executive who overpromises and one who under-delivers, between an executive who is a glib salesman and one they would bet their own money on. Members who have skin in the game, understand the company and care about it deeply. If there are to be governance lessons from this crisis—aside from the need for realistic expectations—let that be among them. The list of guilty parties involved in bringing about the current economic situation is long indeed, and boards do belong on it. Just don’t put them near the top. It’s giving them too much credit for a job they couldn’t do. Write to Jack & Suzy Jack and Suzy are eager to hear about your career dilemmas and challenges at work, and look forward to answering some of your questions in future columns. Jack and Suzy Welch are the authors of the international best-seller, Winning. Their latest book is Winning: The Answers: Confronting 74 of the Toughest Questions in Business Today. Mint readers can email them questions at winning@livemint.com Please include your name, occupation and city. Only select questions will be answered. ©2009/NYT Syndicate Source: Home - Livemint.com | 18 Jan 2009 | 4:12 pm Andhra government rejects demand for probe in Maytas deals - Economic Times
Source: Google News India - Business | 18 Jan 2009 | 4:04 pm Andhra government rejects demand for probe in Maytas dealsThe Andhra Pradesh government Sunday ruled out a probe into the public projects awarded to Maytas Infra, the company promoted by a son of disgraced Satyam Computer Services founder-chairman B. Ramalinga Raju.Source: IndiaeNews.com: Business News | 18 Jan 2009 | 4:01 pm Modern laundry service stations to come up in ChandigarhSix ultra-modern laundry service stations (dhobi ghats) will come up in different parts of the city at a total cost of Rs.70 million, an official said Sunday.Source: IndiaeNews.com: Business News | 18 Jan 2009 | 4:00 pm Profit growth may decline by 7-8% in Q3 despite higher salesMumbai / New Delhi: India’s listed drug firms are expected to post medium to strong growth in revenues on the back of improved operations, exports and depreciation of the rupee during the October-December period but the growth in net profit will be depressed, according to a Mint poll of five analysts.  Net zero: A scientist at a Ranbaxy laboratory in Gurgaon. Drug companies will benefit from rupee depreciation but the impact will not be huge as a large part of raw material is imported. Scott Eells / Bloomberg Mark-to-market is an accounting practice of valuing financial assets in accordance with their market value and not the cost at which they were acquired. There is a consensus among five brokerages—Citigroup Global Markets Inc., Quant Broking Pvt. Ltd, Motilal Oswal Securities Ltd, Angel Broking Ltd and Prabhudas Lilladher Pvt. Ltd—that sales growth of drug makers will be in the range of 21-22% over the year-ago quarter, driven by strong performance of top and medium players. This performance was mainly led by launch of a slew of products in the regulated markets. Increased revenue from contract research and manufacturing services and rupee depreciation also helped. The net profit, estimated to be down by 7-8% over the corresponding quarter in the previous year, has been impacted by foreign exchange losses, consolidation of low-margin businesses, setbacks in projected revenue from research deals, and a slowdown in the domestic formulation business along with low margin from the export markets. Also See Mixed Pattern (Graphic) The rupee depreciated by 3.6% against the dollar in the October-December quarter. While depreciation of the local currency benefits the exporters as they earn more rupee per dollar and euro, those who have foreign exchange liabilities in the form debt suffer when the local currency depreciates as they need to pay more rupee to repay their loans. Overall, companies will benefit from rupee depreciation but the impact will not be huge as a large part of raw material is imported. According to Sarabjit Kour Nangra of Angel Broking, the rupee depreciation will impact results in mark-to-market losses for companies with foreign currency loans and foreign currency convertible bonds such as Ranbaxy laboratories Ltd, the country’s largest drug maker by revenue, Wockhardt Ltd and Orchid Chemicals and Pharmaceuticals Ltd. The overall sales growth, substantially contributed by exports, are driven by Sun Pharmaceuticals Industries Ltd, the country’s largest drug firm by market value; Dr Reddy’s Laboratories Ltd, the second largest exporter; Biocon Ltd, a leading bulk drug exporter, and Lupin Ltd, a large antibiotic manufacturer. On the other hand, companies such as Ranbaxy laboratories, Ipca Laboratories Ltd, and Glenmark Pharmaceuticals Ltd, among others, will drive down the profits, according to reports of these brokerages. Glenmark’s net profit is likely drop from the year-ago quarter when it had earned Rs179 crore from a new chemical entity out-licensing deal. Ranbaxy will be impacted by a US ban on 30 of its products. The US food and drug administration, or FDA, had in mid-2008 banned these products manufactured at Ranbaxy’s two plants in India because of non-compliance with quality norms. In addition, the translation loss on account of foreign currency liabilities would impact Ranbaxy. Cadila Healthcare, Orchid and Wockhardt too will be impacted as they will have pay more rupee for their foreign currency loans but the quantum of losses is expected to be lower than the preceding quarter as the rupee deprecation was lower in October-December. Cipla’s revenue is likely to grow by 17%, led mainly by a 29% growth in exports. However, its net profit is likely to record 29% decline due to a high base of last year and partly impacted by foreign exchange losses on forward covers. Firms take forward cover to protect themselves against currency fluctuations. According to these brokerages, GSK Pharmaceuticals Ltd, the Indian arm of world’s second largest drug maker GSK Plc., will have a single-digit profit growth as 26% of its products fall into price control. Under drug price control order, the government caps drug prices and the firms are not free to fix the prices in accordance with production cost. Dr Reddy’s is expected to gain handsomely from the launch of generic Imitrex—used for treating migraine—in the US, and its winning government supply order in Germany. It is expected to have $50 million from Imitrex sales. But the profit will be low as margins for authorized generic are low, according to the report of Quant Broking. Quant’s Kirit Gogri expects mixed results from this sector in the third quarter. The companies, despite challenging global economic environment, are expected to perform relatively better, he said. According to one analyst, who didn’t want to be identified, the pharma sector’s performance “would not be too different from what we have seen in last few quarters”. The weak local currency should help and the margins should be better but companies such as Dr Reddy’s, Glenmark, Ranbaxy and Cipla, which operate in Russia and Latin America, will face some pressure as their products have become more expensive in those markets because of depreciation of currencies, the analyst said. Ranbaxy’s results will likely be affected by the impact of the US ban while Dr Reddy’s should benefit from the launch of Imitrex. Piramal Healthcare Ltd may run up a forex loss, but the third quarter should be better for the company, the analyst added. Graphics by Sandeep Bhatnagar / Mint ch.unni@livemint.com Source: Home - Livemint.com | 18 Jan 2009 | 3:49 pm Israel eyes gas bonanza from large offshore findJERUSALEM (Reuters) - A U.S.-Israeli exploration group said on Sunday it has discovered large natural gas deposits in the eastern Mediterranean with the potential to meet Israel's gas needs for well over a decade.Source: Reuters: Money News | 18 Jan 2009 | 3:43 pm 10 people questioned in DDA flat allotment fraud - Hindu
Source: Google News India - Business | 18 Jan 2009 | 3:13 pm Checks and balances - Business Standard
Source: Google News India - Business | 18 Jan 2009 | 3:06 pm EMRI in talks with donors - Business Standard
Source: Google News India - Business | 18 Jan 2009 | 3:02 pm Dadri would need investment of Rs 20,000 cr: RNRL tells HCRNRL is fighting a legal battle over the terms of gas supply agreement with Mukesh-led Reliance Industries.Source: Daily News & Analysis: Money News | 18 Jan 2009 | 2:21 pm Gulf's Batelco to buy 49 pct of India's S TelMANAMA (Reuters) - Bahrain Telecommunications Co (Batelco) said on Sunday it would buy 49 percent of Indian mobile telephone operator S Tel Ltd for $225 million, the latest in a string of recent acquisitions by Gulf operators.Source: Reuters: Money News | 18 Jan 2009 | 2:01 pm Satyam, Wipro lose over $4 bn on US bourses in one weekSatyam Computer Services and Wipro together accounted for more than half of the 6-billion dollar losses incurred by the Indian stocks on the American bourses .Source: Daily News & Analysis: Money News | 18 Jan 2009 | 1:34 pm Satyam not to abandon SEZ plansSatyam Computer Services has no intention to abandon its Rs 370-crore Special Economic Zone projects.Source: Daily News & Analysis: Money News | 18 Jan 2009 | 1:30 pm Cos will not be allowed to get away by just paying fines: GuptaConcerned over the increasing instances of financial wrongdoings by corporate, the govt said those who are guilty would not be let off just by payment of a fine.Source: Daily News & Analysis: Money News | 18 Jan 2009 | 1:13 pm Trouble for Satyam with Axis Bank asking for fresh guaranteePrivate sector lender Axis Bank had advanced a sum of Rs 38 crore to EMRI, floated by the founder and former chairman of Satyam Computer, for meeting its operational expenses.Source: Daily News & Analysis: Money News | 18 Jan 2009 | 1:12 pm CID begins interrogation of Rajus, Srinivas - Hindu
Source: Google News India - Business | 18 Jan 2009 | 1:08 pm $600-mn fund planned to instil investor confidenceAsset Reconstruction Co (India) Ltd (Arcil), which picks up distressed assets in the country, will create a $600 million-fund by March to bring back confidence in the financial market, a top company official said here.Source: IndiaeNews.com: Business News | 18 Jan 2009 | 1:01 pm Canada, Britain now eye India's nuclear sectorIt seems everybody wants a piece of India's nuclear pie.Source: IndiaeNews.com: Business News | 18 Jan 2009 | 1:00 pm Satyam's top executives ordered into police custodyMUMBAI (Reuters) - An Indian metropolitan court in Hyderabad has ordered the former chairman, managing director and chief financial officer of embattled Satyam Computer Services be taken into police custody for four days from Sunday.Source: Reuters: Money News | 18 Jan 2009 | 12:50 pm Apple chief Jobs to stand for Walt Disney board re-electionApple chief Steve Jobs, who has taken a five-month break from the IT major on health grounds, will be contesting for re-election to the board of Walt Disney.Source: Daily News & Analysis: Money News | 18 Jan 2009 | 12:22 pm Kerala gets fourth PSU under defence ministryKerala Sunday got its fourth public sector unit (PSU) under the defence ministry for manufacturing military wagons and other items for the forces and railways.Source: IndiaeNews.com: Business News | 18 Jan 2009 | 12:00 pm Tata Comm faces liquidity crisis; reaches govt for helpFacing a severe liquidity crisis and the possibility of breaching long-term loan covenants, Tata Communications has approached the government.Source: Daily News & Analysis: Money News | 18 Jan 2009 | 11:24 am NYT in talks with Carlos Slim for funds: Media reportThe company's total revenue fell 13.9 per cent in November compared with the same month a year ago, while its advertising revenue decreased by 20.9 per cent.Source: Daily News & Analysis: Money News | 18 Jan 2009 | 11:15 am No nod for Satyam's buying Maytas Prop for Rs 6,410 cr: PrasadAmid criticism of for clearing acquisition of Maytas Properties by Satyam Prasad said the board approved formula would have brought down the purchase price by less than half.Source: Daily News & Analysis: Money News | 18 Jan 2009 | 11:10 am Satyam board was given contrary picture on World Bank banEven after the World Bank imposed a ban on Satyam on charges of giving improper benefits to the lender's employees, the IT company gave a contrary picture to its board.Source: Daily News & Analysis: Money News | 18 Jan 2009 | 11:05 am Maytas projects won’t be cancelled in haste: AP govtHyderabad: The Andhra Pradesh government on Sunday asserted that it would not cancel the projects awarded to Maytas Infra, promoted by the family of disgraced Satyam founder B Ramlinga Raju, “in haste” and ruled out any probe into projects by the firm. Addressing a press conference here today, state finance minister K Rosaiah said, “We shall not act in haste. The government’s duty is to wait and see. If any of the projects are revoked, the government will have to pay a heavy penalty,” Rosaiah said. Different government departments were “closely watching and studying” the developments on a “daily basis”, he added. He also ruled out any probe into Maytas projects saying there was “no necessity.” Releasing a detailed note on the projects awarded to Maytas, the finance minister said that of the total value of Rs79,418 crore irrigation projects, oly Rs5,439 crore worth of works were awarded to Maytas and its joint venture partners. “All the projects have been awarded in the most transparent manner, following due procedures,” Rosaiah, who is also the state Cabinet spokesman, noted. Referring to the Rs12,132 crore Hyderabad Metro Rail Project, the minister said the government could cancel the agreement entered into with the Maytas-led consortium only of the company failed to achieve financial closure as stipulated by March this year. Source: Home - Livemint.com | 18 Jan 2009 | 10:46 am Himachal Pradesh approves 13 hydropower projectsHimachal Pradesh has given the go-ahead to independent power producers for executing 13 hydropower projects having a total generation capacity of 1,583 MW.Source: IndiaeNews.com: Business News | 18 Jan 2009 | 10:30 am HDFC Bank to slash auto loans by 150 bpsNew Delhi: In a major relief to auto-loan seekers, the country’s second largest private sector lender ,HDFC Bank, has decided to slash interest rates on personal and commercial vehicles by up to 150 basis points from Monday. In addition, the bank will also cut interest rates on corporate loans and wholesale credit, a move that will benefit small and medium enterprises and large companies. Car and commercial vehicle loans will become cheaper by 125 basis points, while interest on two-wheeler loans will be reduced by 150 basis points, HDFC Bank Head (Retail assets and credit cards) Pralay Mondal told said. At the same time, the bank will reduce interest rate on personal loan by 75-100 basis points, from existing 17-17.5%. “We have been able to pass on such a massive reduction to customer as cost of fund has eased and it is slated to come down further in the coming months,” he said. The bank is doing it as a pre-emptive measure, which will give a fillip to the slackening auto sales in particular and the SME and manufacturing sector in general, he added. The auto sector has been under the tight grip of slowdown for the past two months. In December, the overall domestic auto sales declined 18.2% as commercial vehicles and two-wheeler sales crashed heavily. Across the board massive rate cut by the bank comes in less than 20 days of reduction in its prime lending rate by half a percentage point. The bank, which is the largest financier of retail loan, currently offers car loan at 13.5-14%, commercial vehicle loans at 14.5-15%, while credit for two wheelers attracts interest rate at 24-24.5%. In addition to this, HDFC Bank will slash rates on loan against properties and securities by as much as 200 basis points. Mondal said, the interest rate on loans against properties will come down sharply by 150-200 basis points, while for credit against securities the cut would be 1%. The exiting rates for such credit varies between 13.75% and 15.25%. However, the bank provides retail loan to its existing account holders at a discount, which varies between 50 and 100 basis points on the card rate. The concession depends on credit profile of the customers. Last week, the bank’s promoter HDFC Ltd introduced a special housing loan scheme offering 9.75% for new loans up to Rs30 lakh. Prior to the special offer, HDFC was charging 10.25% for loans up to Rs20 lakh and 11.25% for bigger loans. The bank distributes home loan products of its promoter. It is to be noted that HDFC Bank in December 2008 reduced deposit rate in the range of 50 to 225 basis points, across various maturities. The fixed deposit rates have been reduced across four maturities and the peak deposit rate of the bank has come down to about 10%. Aiming at propping-up demand, the government and the RBI have taken several measures to bring down interest rates. As part of its policy, the government has allowed public sector banks to provide line of credit to NBFCs on new purchases, in order to boost demand. Source: Home - Livemint.com | 18 Jan 2009 | 10:22 am Satyam board were given contrary picture on World Bank banNew Delhi: Even after the World Bank imposed a ban on Satyam on charges of giving improper benefits to the lender’s employees, the IT company gave a contrary picture to its board and auditors on the action taken by the global bank. The minutes of Satyam’s audit committee meeting, held on 17 October, 2008, revealed that the company’s management had termed the allegations made by the international lender as rumours and misinterpretation. The World Bank made public in December last year the ban imposed on the IT firm from September. The audit committee comprised board members, statutory auditors, global head of internal audit, among others. In the audit committee meeting, one of the independent directors, Vinod Dham, had enquired about the World Bank issue to which the company’s then whole-time director Ram Mynampati said: “The company has been servicing them for the last 10 years and has won many accolades and appreciations from the World Bank.” Last month, the World Bank had declared Satyam Computer ineligible to receive direct contract under corporate procurement programme for eight years, due to the IT firm’s failure to furnish proper documentation on fees charged for sub-contractors and for providing improper benefits to the bank’s staff. “Satyam was declared ineligible for contracts for providing improper benefits to Bank staff and for failing to maintain documentation to support fees charges for its sub-contractors,” the World Bank had said in a statement. Mynampati further said that within two hours of the misreporting about the ban, “World Bank denied the rumours. The contract with World Bank ended in September 2008 and as per the policy of World Bank, it cannot continue beyond certain period... factored in the same in our guidance”. Another director, Krishna Palepu, said despite the company’s “best performance on all fronts, the same is not being reflected in the stock performance” and he suggested a review “if the company is lacking in the communication front to the market.” After this, T R Prasad advised “to present the performance of the stock in comparison with BSE IT index.” The World Bank’s decision was effective from September 2008 and prior to that Satyam was temporarily suspended in February. The Bank said it declared Satyam ineligible to receive direct contracts under its corporate procurement programme. Source: Home - Livemint.com | 18 Jan 2009 | 10:20 am Tax holiday for five-star hotels advocatedA leading industry lobby has advocated a five-year tax holiday for hotels including five-star establishments in and around the capital to expedite hotel room construction before the 2010 Delhi Commonwealth Games.Source: IndiaeNews.com: Business News | 18 Jan 2009 | 9:01 am Raju beats Obama on web popularity charts!New Delhi: He may be popular for all the wrong reasons, but Satyam’s disgraced founder Ramalinga Raju has beaten US President-elect Barack Obama on internet popularity charts in India, and is closing the gap abroad too. By now infamous IT czar Raju shot to limelight earlier this month after disclosing what has emerged as the country’s biggest ever corporate fraud in India and has been called ‘India’s Enron´ right from the word go. Google’s search volume index shows Raju and Obama were generating almost equal searches from India during the first six days of the year, with Obama leading by a small margin. However, Raju jumped up the charts on 7 January, when he admitted to a massive fraud of about Rs7,800 crore. The search volumes for Raju are estimated to have been over 10 times more than that of Obama on 7 January, after which it has been declining consistently but Raju is still holding an edge over the US President-elect. In terms of search volumes generated from various regions, Raju’s own state Andhra Pradesh is on top, followed by Tamil Nadu, Karnataka, Gujarat, Maharashtra and Delhi. In terms of cities too, the maximum search volume has been from Hyderabad, where both Raju and Satyam are based, followed by Chennai, Bangalore, Pune, Mumbai, Mahape and Delhi. As regards searches for Obama, Tamil Nadu has been on the top, followed by Maharashtra, Karnataka and Delhi among the regions. For cities, the maximum search volumes for Obama has come from Chennai, Mumbai, Navi Mumbai, Bangalore and Delhi. Outside India too, Raju has generated significant search volumes from UAE, Singapore, Finland, US, Poland, Australia, UK, Canada and Germany, but has lagged Obama. Raju has been searched for in Abu Dhabi, Singapore, Dallas and San Fransisco, while search queries have come in Polish language too, other than English. Source: Tech News - Livemint.com | 18 Jan 2009 | 8:57 am CID takes custody of Rajus, begins grillingDisgraced founder and former chairman of Satyam Computer Services B. Ramalinga Raju and two other former top executives were Sunday taken into police custody for further interrogation in connection with the Rs.70 billion (Rs.7,000 crore/$1.43 billion) fraud.Source: IndiaeNews.com: Business News | 18 Jan 2009 | 8:02 am Jammu-Srinagar highway closed after fresh snowfallThe strategic Jammu-Srinagar National Highway was closed for vehicular traffic Sunday following fresh snowfall at many places on the only surface link that joins the Kashmir Valley with the rest of the country.Source: IndiaeNews.com: Business News | 18 Jan 2009 | 8:00 am Satyam, Wipro lose over $4 bn on US bourses in a weekNew York: IT entities Satyam Computer Services and Wipro together accounted for more than half of the $6 billion losses incurred by the Indian stocks listed on the American bourses last week. Tainted Satyam Computer, whose founder chairman B Ramalinga Raju had admitted to fudging of accounts worth thousands of crores, saw its market valuation erode by a $2.7 billion for the week ended 16 January. The scrip resumed trading on the New York Stock Exchange on January 13 after it was suspended in the wake of the accounting fraud. The market capitalisation of another IT major Wipro, which has been debarred by the World Bank from receiving any contracts till 2011, tumbled as much as $1.5 billion during the same period. Meanwhile, the total valuation of 16 Indian stocks listed as American Depository Receipts (ADRs) on NYSE and Nasdaq, plunged $6 billion in one week. Trading of Satyam Computer was halted on 7 January after its ADR crashed 90% following the admission by Raju. Another major loser was ICICI Bank. The private sector lender’s market capitalisation dropped one billion dollars. Similarly, valuation of HDFC declined by $883 million for the week ended 16 January. Meanwhile, private sector lender market ICICI Bank’s valuation plunged by 1.03 billion dollars and HDFC Bank’s by $883 million, respectively. However, IT bellwether Infosys shrugged off the gloom and added $705 million to its market value. The rise was primarily due to better than expected third quarter results - the company’s net profit soared 33.3 per cent to at Rs 1,641 crore for the December quarter. The World Bank has banned Wipro for four years from getting any contracts, saying that the Bangalore-based firm had provided improper benefits to the bank’s staff. Interestingly, in December, it was revealed that the World Bank had imposed a similar ban on Satyam Computer. During last week, other Indian ADRs which saw significant fall in their market value include telecom major Tata Communication, copper producer Sterlite Industries, auto maker Tata Motors and another telecom firm Mahanagar Telephone Nigam. While Tata Communication’s market-cap fell by $247 million, Sterlite Industries saw its valuation decrease by $240 million. Further, Tata Motors and Mahanagar Telephone Nigam tumbled by $100 million and $44 million, respectively. IT company Patni Computer Services and internet firm Rediff.com too saw their valuation decline during the week. Outsourcing firm Exlservices market valuation remained unchanged at $252.7 million. On the other hand, apart from Infosys, BPO entities - Genpact and WNS, pharma major Dr Reddy’s Laboratories and internet firm Sify Technologies managed to add to their respective market capitalisations. These companies together gained in the range of $12 to 73 million. Source: Home - Livemint.com | 18 Jan 2009 | 7:45 am Alliance with Jet to take off within six months: MallyaNew Delhi: The alliance between country’s two biggest private carriers Jet Airways and Kingfisher Airlines will take six months to be fully operational, according to Kingfisher chairman Vijay Mallya. Already the two carriers were cooperating “very closely in many ways” but it was not as simple as it sounded to operationalise the agreement, signed by them last October, Mallya said. “One project is taken at a time. If you decide that frequencies on a particular route operated by either Kingfisher or Jet are going to be changed, it is not as simple as making one phone call to the planning department and saying stop the flight,” he said. Asked if the alliance could take off fully in the next three to six months, he said: “Absolutely, hundred per cent.” For the deal to be smoothly implemented, Mallya’s Airbus based fleet will have to be synergised with the largely Boeing based fleet of Jet. When the hand-holding process by the two would be completed, they will command a market share of about 58% (based on calendar 2008 figures). Last year the two carriers had announced an alliance of wide-ranging proportions aimed at helping both carriers to significantly rationalise and reduce costs, provide improved standards of service and a wider choice of air travel options to consumers. Mallya replied in a negative if any major issue is holding back the operational alliance. Among the major areas agreed upon, the two carriers had envisaged code sharing on both domestic and international flights,joint fuel management, common ground handling, cross selling of flight inventories using the common global distribution system platform, joint network rationalization and cross utilization of crew on similar aircraft types and commonality of training as also of the technical resources. The alliance agreement also covered interline/special prorate agreements to leverage the joint network deploying 189 aircraft offering 927 domestic and 82 International flights daily and reciprocity in Jet Privilege and King Club Frequent Flier programmes. The two carriers command around 50% of the Indian civil aviation market, but at the time when they announced forming the alliance it was about 60%. Restrictive trade practice regulator MRTPC had initiated an investigation into the alliance between the two airlines to check if it would lead to cartelisation. Source: Home - Livemint.com | 18 Jan 2009 | 7:22 am PM sees econ growth under pressure in 2009/10MUMBAI (Reuters) - Prime Minister Manmohan Singh sees economic growth under pressure in the next fiscal year beginning April, after growth slowed in the current year amid the global credit crisis, the Economic Times reported.Source: Reuters: Money News | 18 Jan 2009 | 7:09 am Swan Telecom to roll out mobile services by second quarterSwan Telecom, a part of the diversified Mumbai-based Dynamix Balwas Group, says it will end all controversies surrounding it by rolling out second generation (2G) GSM mobile phone services anytime between April and June.Source: IndiaeNews.com: Business News | 18 Jan 2009 | 7:00 am Satyam board in talks for fundingHyderabad: The new board of embattled Satyam Computer Services said on Saturday it was in talks with banks and financial institutions over funding, and was doing all it could to ensure staff were paid on time. The government-appointed board, which met on Saturday, said it was still looking for a new chief executive and chief financial officer for the outsourcing firm at the centre of India’s biggest corporate scandal. But it said it had received expressions of support from customers. Satyam, India’s No. 4 software services exporter, has been battling for survival since Ramalinga Raju resigned as chairman earlier this month, revealing profits had been falsified for years and that $1 billion of cash on the books did not exist. “Addressing the issue of liquidity, the board confirmed that it is engaged in discussions with banks and financial institutions,” Satyam said in a statement, adding all efforts were being made to ensure salaries were paid on time. Payments coming into the company were better. “The last week had seen definite improvements on ‘collections´ and this is expected to be a major priority for the business leaders and the board, in the ensuing weeks.” Scheduling of vendor payments was also discussed at the board meeting. Satyam founder Raju, his brother, who was the managing director of the company, and the former chief financial officer have been charged and are being held in a jail. On Saturday, a Hyderabad court ordered the three to be moved into police custody for four days from Sunday for further questioning, V S K Kaumudi, inspector general of police in Hyderabad, told Reuters. New Board The government, which dissolved Satyam’s previous board, appointed three new directors last Sunday and another three on Thursday to help steer the company out of crisis. Media speculation of government aid had mounted as analysts questioned if Satyam had enough money to pay its 50,000 staff. But Economic Affairs Secretary Ashok Chawla said on Thursday the government was not looking at any direct support for the company or bailout “at this stage.” Deepak Parekh, a senior banker and new Satyam board member, said it had $350 million in receivables and may not need new funding if the money came in on time, adding that the firm would consider bank loans if necessary. The Business Standard newspaper on Saturday cited Company Affairs Minister Prem Chand Gupta as saying Satyam’s net receivables would be Rs11 billion, as it had foreign exchange losses of Rs2 billion and debt of 2 billion each from Citibank and BNP Paribas. Key customers Satyam, which has corporate giants such as Nestle and General Electric as clients, said board members had contacted key customers and had not heard of services being affected, reiterating earlier statements from the company. “The board expressed that they have been in conversation with customers, who in turn have expressed their continued support, which is a very encouraging sign,” the statement said. The board last week appointed KPMG and Deloitte to help it restate accounts, a process Parekh has said would take 8-12 weeks. Saturday’s statement did not mention the company’s December quarter results, which normally would be due by 31 January. The board said it was still looking for a chief executive officer and chief financial officer for the firm, and said it would meet weekly until the appointments were made. The board appointed an internal auditor, an audit committee of three board members, and legal advisers for the board. Satyam’s shares climbed 27.1 percent to Rs25.80 on Friday, but the stock is still down more than 85% since the fraud was revealed. Source: Home - Livemint.com | 18 Jan 2009 | 6:52 am Virus spreads quickly, but may be a dudNew York: A computer virus that may leave Microsoft Windows users vulnerable to digital hijacking is spreading through companies in the U.S., Europe and Asia, already infecting close to 9 million machines, according to a private online security firm. Fortunately, however, it may be a dud. Though computer bugs have become a common affliction, Finland-based F-Secure says a virus it has been tracking for the past several weeks has surged more rapidly through corporate networks than anything they have seen in years. But the virus does not appear to be working as its designers intended. F-Secure’s chief security adviser, Patrik Runald, said the virus’s coding suggests a type of bug that alerts computer users to bogus infections on their machines and offers to help by selling them antivirus software. Instead, the virus is simply spreading to little effect, though it may still pose a threat to infected computers. “The gang behind this worm haven’t used it yet,” F-Secure’s chief research officer, Nikko Hypponen said. “But they could do anything they like with any of these machines at any time.” Microsoft issued a security update on Tuesday to deal with the so-called “Downadup” or “Conficker” virus, which appears to be a new version of a bug that popped up in October. “Over the last couple of weeks, a new variant of this worm has been affecting customers,” the company acknowledged in a blog post. Microsoft said the virus is spreading by gaining access to one computer and then guessing at passwords of other users in the same network: “If the password is weak, it may succeed.” A company representative couldn’t immediately be reached on Saturday to comment on F-Secure’s estimate of infected machines. Most computers with Windows will automatically download Microsoft’s security update, but Hypponen said the virus disables updates on infected machines. While the origin of the virus is a mystery, F-Secure’s best guess is it came from Ukraine. Hypponen said it is coded to avoid computers there, which may indicate whoever wrote the virus was trying to avoid drawing attention from local authorities. Source: Tech News - Livemint.com | 18 Jan 2009 | 6:38 am India Inc hit by slowdown; shelves $44 bn projects in ‘08New Delhi: The global economic downturn has impacted India Inc’s investment with promoters shelving 420 projects worth more than Rs2,09,000 crore (about $44 billion) in 2008, primarily in the last quarter, a survey says. According to a survey by ProjectsToday, a firm tracking the country’s project investments, of the 420 projects deferred last year, as many as 183 projects worth Rs1,57,926 crore were shelved in the December quarter of 2008. “The global financial meltdown, which hit Indian shores in the second half and impacted the economy, more particularly in the last quarter of the year 2008, forced promoters to shelve around 420 projects entailing a total investment of Rs2,09,653 crore (approx $44 billion),” the ProjectsToday survey stated. The global economic slowdown and fund crunch, which hurt the economy most after September, were two main reasons behind the promoters not going ahead with their capacity build-up plans, the survey said. Though the shelved projects account for 5.43% of the country’s outstanding investment figure of Rs38,60,769 crore (about $820 billion) as of December 2008, compared to last year the figure looks alarming, the survey said. During 2007, 275 projects worth Rs23,600 crore were shelved by promoters, it added. “Increase in shelved projects shows (the) impact of (the) global downturn on the investment projects, which will lead to further delay in (the) country’s infrastructure development,” an infrastructure expert said. Interestingly, a record number of investment proposals were announced in the country during 2008; 11,904 new projects with a total investment of Rs8,34,963 crore were on the drawing-board and a majority of these start-ups were by private investors. The projects investment survey, capturing India’s investment climate as of December 2008, was carried out for 27,609 projects with a total investment of Rs38,60,769 crore. Meanwhile, aggregate investment increased by 34.2% during the year ended December 2008, a rise much higher than the 14.2% in 2007, with most of it in the first half of the year. Outstanding investment by private sector companies grew by 50.2% during the calendar year 2008. This was much higher than the corresponding growth of 19.1% in central public sector companies and 30.2% in state government undertakings. Further, the survey revealed that aggregate investment by foreign companies increased by 29.6% as against decline of 24.3% recorded in December 2007. The share of the public sector in the total investment pie declined to 54.5% in December 2008 from 58.9% in December 2007, it added. The survey includes investments projects announced in manufacturing, mining, electricity, services & utilities, and irrigation. Source: Home - Livemint.com | 18 Jan 2009 | 6:23 am Mexico's Carlos Slim may invest in New York Times - sourceNEW YORK (Reuters) - The New York Times Co is in talks to raise hundreds of millions of dollars from Mexican billionaire Carlos Slim, a source told Reuters on Saturday, a move that would give the ailing newspaper publisher a critical cash infusion to pay its debt.Source: Reuters: Money News | 18 Jan 2009 | 6:16 am Obama team seeks fresh approach to bank crisisNEW YORK (Reuters) - U.S. President-elect Barack Obama is seeking new ways to end a credit crisis that is roiling world economies and he warned on Saturday of the vast challenges a worsening economy poses for Americans.Source: Reuters: Money News | 18 Jan 2009 | 5:16 am Almost all U.S. cities to lose jobs in '09 - forecastWASHINGTON (Reuters) - All but five U.S. cities will experience job losses this year, with New York suffering the largest decline, according to a forecast released by the U.S. Conference of Mayors on Saturday.Source: Reuters: Money News | 18 Jan 2009 | 3:45 am Weekly News Round-upThe Satyam Computer Services board on Thursday got three more members - Mr Tarun Das, Mr T.N. Manoharan and Mr Suryakant Balkrishna Mainak - taking the total strength to six.Source: Business Line - Home Page | 18 Jan 2009 | 12:00 am ‘Satyam faces the challenge of holding clients’Hyderabad, Jan. 17 The ‘crisis-ridden’ Satyam Computer urgently requires a dynamic Chief Operating Officer (COO) to hold together various strengths on a daily basis and stem theSource: Business Line - Home Page | 18 Jan 2009 | 12:00 am Satyam board leaves CEO, CFO choice to CentreHyderabad, Jan. 17 The Government-nominated Satyam Computer board got into action mode today, constituting a three-member audit committee, appointing an internal auditor, legal advisors, and talking to banks on liquidity issues, even as Mr B.Source: Business Line - Home Page | 18 Jan 2009 | 12:00 am ARCIL to launch $600-m asset reconstruction fund by MarchARCIL is preparing to launch a new $600-million asset reconstruction fund. Mr S. Khasnobis, Managing Director and CEO of ARCIL, told reporters here on Saturday that the new fund would be launched before the end of thisSource: Business Line - Home Page | 18 Jan 2009 | 12:00 am Who owned Satyam shares sold by IL&FS TrustHyderabad, Jan. 17 A day before Mr B. Ramalinga Raju, former Chairman of Satyam Computer Services, made the revelations about the Rs 7,136-crore financial fraud, IL&FS Trust informed the stock exchanges that it had sold 2.45 crore SatyamSource: Business Line - Home Page | 18 Jan 2009 | 12:00 am Stanchart winds up consumer finance bizStandard Chartered Bank, India’s largest foreign bank, has decided to wind-up the consumer finance business of its wholly owned subsidiary, due to rising defaults.Source: Business Line - Home Page | 18 Jan 2009 | 12:00 am … But, is there an attempt to romanticise ‘Satyam spirit’?Chennai, Jan. 17 There are as many streams of opinion among Satyam employees as the number of theories about its fate. A chat with a young Satyam software engineer in Chennai shows the much touted ‘Satyam spirit’ is alive and kicking.Source: Business Line - Home Page | 18 Jan 2009 | 12:00 am Domestic payment delays, TCS’ main worryMumbai, Jan. 17 What is the biggest issue facing the domestic business of Tata Consultancy Services (TCS)? Pat comes the reply from its chief: “Getting payments onSource: Business Line - Home Page | 18 Jan 2009 | 12:00 am Mynampati's doublespeakAt his first press conference on January 7, Satyams now-dislodged interim chief executive officer Ram Mynampati was emphatic that Satyams core business of information technology was under no threat and that it continues to thrive and succeed in a broader competitive landscape.Source: Business Standard | Front Page Headlines | 17 Jan 2009 | 7:29 pm Satyam directors asked questions, but only justMinutes reveal how Maytas deals were cleared after initial hiccups.Source: Business Standard | Front Page Headlines | 17 Jan 2009 | 7:24 pm 'Satyam episode a blot on India's corporate image'Prime Minister Manmohan Singh today described the Satyam Computer episode as a blot on Indias corporate image and said the government was determined to get to the root of the fraud.Source: Business Standard | Front Page Headlines | 17 Jan 2009 | 6:34 pm New Satyam board in talks with banks for fundsTo make all efforts to ensure employees are paid on time.Source: Business Standard | Front Page Headlines | 17 Jan 2009 | 6:33 pm Police custody for Raju brothers, CFO VadlamaniThe magistrate directed the police to conduct the interrogation only during daytime and in the presence of the advocates of the accused, to abstain from using third degree during questioning, and provide medical care for all three.Source: Business Standard | Front Page Headlines | 17 Jan 2009 | 6:32 pm Raju warned of IBM takeoverSatyams disgraced chairman Ramalinga Raju had made an emotional pitch that the company faced a takeover threat from IBM, to avert which he wanted the boards support to diversify into other areas.Source: Business Standard | Front Page Headlines | 17 Jan 2009 | 6:31 pm Citgroup unveils reconstruction planCitigroup has unveiled a major reconstruction plan. However, it is not the first time this company which dates back to the early 1800s has undone itself and gone through a big transformation.Source: Moneycontrol Top Headlines | 17 Jan 2009 | 5:26 pm Role of old Satyam board members questionable: ExpertsSandeep Parekh, Professor, IIMA, said the role of Satyams board members at the December 16 meet is questionable. \"It looks like a gang of thugs out there. It is looking pretty clear after reading these board minutes that all of these guys were involved. I hope that the new board will take immediate steps to get rid of all of them.\"Source: Moneycontrol Top Headlines | 17 Jan 2009 | 4:09 pm
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