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Texmaco to gain considerably from rise in wagon ordersRamesh Maheshwari, President, Texmaco, expects to gain considerably from the increase in wagon orders announced in todays Railway Budget. The quantum of the wagon orders is going to jump from 6,600 to 15,000. We being the largest recipients of this order, will tend to benefit tremendously.Source: Moneycontrol Top Headlines | 13 Feb 2009 | 4:58 pm IT cos alone should bid for Satyam: Vineet NayyarVineet Nayyar of Tech Mahindra is of the opinion that only IT companies should be allowed to bid for Satyam. He feels prequalifying companies will give comfort to the clients, to employees and in the long run it will work for the shareholders also because they will be able to stop the haemorrhage, which is likely to occur.Source: Moneycontrol Top Headlines | 13 Feb 2009 | 3:32 pm Expect an order of 430 coaches by FY09end: BEMLVRS Natrajan, CMD, BEML, expects an order of about 430 secondclass rail coaches to be placed before March 31. We are also expecting orders for DMU (Diesel Mobile Unit) and EMU (Electrical Multiple Units) before the year end. He cheers the Railway Ministers announcement on new trains and is bullish on bullet trains for metros.Source: Moneycontrol Top Headlines | 13 Feb 2009 | 3:31 pm Expect orders of Rs 500600cr in FY10: Kalindee RailRD Sharma, Chairman Director, Kalindee Rail Nirman (Engineers), expects a minimum Rs 500600 crore of orders in the coming year from the Railway Budget that was announced in Parliament today.Source: Moneycontrol Top Headlines | 13 Feb 2009 | 3:15 pm Satyam may be sold to strategic investor: PC GuptaCorporate Affairs Minister PC Gupta said government is considering all options for sale of Satyam and added that they are looking at a potential buyer. He added the company may be sold to a strategic investor to manage the full affairs of the beleaguered firm.Source: Moneycontrol Top Headlines | 13 Feb 2009 | 2:32 pm Reliance Comm adds 5 mln users in JanNEW DELHI (Reuters) - Reliance Communications Ltd, India's no 2 mobile telecoms firm, on Friday said it added a record 5 million new subscribers in January, boosted by the launch of services on the GSM platform.Source: Reuters: Money News | 13 Feb 2009 | 1:09 pm Budget expectations lift Nifty - Economic Times
Source: Google News India - Business | 13 Feb 2009 | 12:58 pm Satyam chairman welcomes takover rule changesMUMBAI (Reuters) - The chairman of fraud-hit Satyam Computer Services said amendments made by market regulator the Securities and Exchange Board of India to takeover rules were good news.Source: Reuters: Money News | 13 Feb 2009 | 12:53 pm Court allows SFIO to record Rajus' statements - Business Standard
Source: Google News India - Business | 13 Feb 2009 | 12:48 pm Sebi announces takeover norms for distressed cos - Moneycontrol.com
Source: Google News India - Business | 13 Feb 2009 | 12:42 pm Amid economic gloom, Rolls-Royce shines with increased 2008 profit !British engineering and aerospace giant Rolls-Royce defied widespread economic gloom by reporting a 10 percent rise in underlying pre-tax profits to 880 million pounds (USD 1.2 billion) for 2008.Source: Zee News : Business | 13 Feb 2009 | 12:36 pm Toyota cutting US execs` pay, offering buyouts!Toyota Motor Corp. is reacting to the slump in US auto sales by further cutting North American production, slashing executives` compensation up to 30 per cent and offering buyouts to about 18,000 workers.Source: Zee News : Business | 13 Feb 2009 | 12:36 pm Chrysler braces for auto sales slump!Chrysler`s viability plan would have the automaker viable even if US auto sales stay in depression.Source: Zee News : Business | 13 Feb 2009 | 12:36 pm RIL gas supply to ramp up power generation in country!RIL`s gas supply of around 18 mmscd gas from KG basin D6 block to gas-based power plants in the country, would increase power generation by 3,500 to 4,000 MW.Source: Zee News : Business | 13 Feb 2009 | 12:36 pm Kingfisher`s fare hike details sought!Kingfisher Airlines has received a letter from the regulator seeking details on the fare hikes.Source: Zee News : Business | 13 Feb 2009 | 12:36 pm Australian Senate passes stimulus package!Australia`s Parliament narrowly passed a 42 billion dollar (28 billion US) stimulus package on Friday in a bid to stave off recession in the face of the global economic crisis.Source: Zee News : Business | 13 Feb 2009 | 12:36 pm IOC under recoveries at Rs 60k cr!State-run Indian Oil Corp on Thursday said it expects to end the year with under recoveries to the tune of Rs 60,000 crore, but hopes to liquidate the Rs 13,000 crore worth of oil bonds to make good some of its losses.Source: Zee News : Business | 13 Feb 2009 | 12:36 pm Sensex gains 146 pts in early trade!Sensex rose by over 146 points ahead of an interim Railways Budget.Source: Zee News : Business | 13 Feb 2009 | 12:36 pm Retail sales rebound, jobless claims stay high!Sales at US retailers unexpectedly rebounded in January, government data showed on Thursday, but the recovery was unlikely to be sustainable as recession-hit companies continued to aggressively axe jobs.Source: Zee News : Business | 13 Feb 2009 | 12:36 pm PM panel for key rate cut as industrial production falls - Business Standard
Source: Google News India - Business | 13 Feb 2009 | 12:29 pm Indian rupee rises on weak dollar, stock gains - Reuters India
Source: Google News India - Business | 13 Feb 2009 | 12:19 pm SEBI amends takeover rulesMUMBAI (Reuters) – SEBI amended its takeover rules on Friday, saying it could now relax certain requirements if requested by a target company depending on certain conditions being met.Source: Reuters: Money News | 13 Feb 2009 | 12:11 pm Railways to get Rs.200 bn loan from JapanIndian Railways will likely get Rs.200 billion (Rs.20,000 crore/$4 billion) from Japan for their rail freight corridor project, Railways Minister Lalu Prasad said here Friday.Source: IndiaeNews.com: Business News | 13 Feb 2009 | 12:02 pm Indian markets rally on anticipated feel good budgetIndian equities markets Friday reversed the previous day's losses amid hopes that the government would present a third fiscal stimulus package in the interim budget Monday following the people-friendly railway budget presented earlier in the day.Source: IndiaeNews.com: Business News | 13 Feb 2009 | 12:01 pm Lalu Prasad should become PM, chorus supportersIt was like the festivals of Holi and Diwali being celebrated together on the streets of Patna as hundreds of Rashtriya Janata Dal (RJD) workers smeared colour on each other and burst firecrackers to hail the interim Railway Budget presented by party chief and Railway Minister Lalu Prasad in parliament Friday.Source: IndiaeNews.com: Business News | 13 Feb 2009 | 12:00 pm Corporate India should tap domestic market: Kamal Nath - Economic Times
Source: Google News India - Business | 13 Feb 2009 | 11:56 am Old Shah Rukh Khan out of Pepsi's 'Youngistaan'Soft drinks major PepsiCo is dropping Shah Rukh Khan from its Youngistaan advertisement campaign as the company focuses on youngsters.Source: Daily News & Analysis: Money News | 13 Feb 2009 | 11:50 am IFC to invest $75 mn in agri business to increase food supplyBy PTI New Delhi: International Finance Corporation, an arm of the World Bank Group, today said it will invest $75 million to help set up a fund for supporting farming and food production. IFC has teamed up with UK-based Altima Partners Llp, which manages $625 million Altima One World Agriculture Fund, to help set up a fund that would support farming and food production in emerging markets to increase global food supply. The new fund -- Altima One World Agriculture Development Fund would invest in agricultural production land and farm operators and would help in improving farm productivity in emerging markets by implementing modern technology. “Increasing agricultural productivity in a sustainable way is central to expanding global food production,” IFC director for Global Agribusiness Oscar Chemerinski said. By investing in the Altima fund, IFC is leveraging its resources to stimulate growth in agricultural production in emerging markets, IFC said. “We are confident that our combined strengths will be a force for positive change in the agriculture sector and will benefit communities around the world,” Altima Partners partner Joseph Carvin said. The current financial crisis has negatively affected the availability of financing and has increased the cost of credit. Source: LatestNews-Home - Livemint.com | 13 Feb 2009 | 11:46 am Rail Budget: Lalu’s demeanour subdued unlike past years - Moneycontrol.com
Source: Google News India - Business | 13 Feb 2009 | 11:42 am Texmaco to gain considerably from rise in wagon orders - Moneycontrol.com
Source: Google News India - Business | 13 Feb 2009 | 11:36 am RelCap promoter pledges 4.03%Mumbai: Anil Ambani-led Reliance Capital has said that one of its promoters has pledged 4.03% stake in the company with lenders. In a disclosure to the Bombay Stock Exchange (BSE), Reliance Capital said that its promoter AAA Enterprises has pledged 98.93 lakh shares representing 4.03% stake in the firm. As of December quarter, the promoters held 53.49% in Reliance Capital, wherein AAA Enterprises held a 51.45%, as per the information on the BSE website. Calculated on the basis of today’s market price of Reliance Capital, the pledging of shares may have fetched an amount of Rs426.69 crore to the promoter. Meanwhile, in separate regulatory filings to the stock exchanges, two other ADAG firms — Reliance Power and Reliance Natural Resources — said none of its promoters has pledged any share with the lenders. The promoter group has not pledged any share of the company out of a total promoter holding of 84.78%, Reliance Power said. The disclosure follows market regulator Sebi’s directive, which mandates promoters of listed companies to disclose their details of pledged shares in the wake of Satyam fiasco. Shares of RelCap closed at Rs431.3, up 3.43%, while RelPower was up 5% at Rs108.2. RNRL rose 1.25% to Rs48.75 on the BSE. Source: LatestNews-Home - Livemint.com | 13 Feb 2009 | 11:32 am BSE Sensex rallies 1.8 pct, stimulus awaitedMUMBAI (Reuters) – The BSE Sensex rose 1.8 percent on Friday, posting their second weekly gain in six, on expectations for fiscal incentives to revive slowing growth in an interim general budget on Monday.Source: Reuters: Money News | 13 Feb 2009 | 11:24 am Govt has taken steps to enhance power generation: Jairam RameshNew Delhi: The government has said that it has taken various steps, including import of coal to meet the demand, to ramp up power generation capacity in the country. “We have taken steps to enhance power generation, have imported coal to bridge the gap between domestic availability and requirement of coal,” minister of state for power, Jairam Ramesh said. “Rigorous monitoring of capacity addition of the ongoing power generation projects proposed in the 11th Five-Year Plan is being done, development of ultra mega power projects of 4,000 MW each to reap benefits of economies of scale, harnessing surplus power into Grid is being done,” he said informing that the government is taking up new hydro power projects in Bhutan for import of power into the country and is enhancing generation from the available sources. The government has set a power capacity addition target of 78,577 MW in the current Five Year Plan-2007-12. Source: LatestNews-Home - Livemint.com | 13 Feb 2009 | 11:24 am See rollback of duty drawback in Budget: Arvind MillsNaishad Parikh, HeadPolicy Initiatives, Arvind Mills, said the textile industry profitability has gone down 75% in last two years and credit rating downgrades are seen in textile industry due to profitability erosion. Thus, we expect rollback of duty drawback in interim Budget and some policy changes in interest rates levied on exporters.Source: Moneycontrol Top Headlines | 13 Feb 2009 | 11:21 am No separate licenses needed for VAS: TraiBy PTI New Delhi: Telecom Regulatory Authority of India (Trai) today said no separate category of licence or registration is required for the value added services (VAS), a move that will boost the growth of mobile value-added services industry in the country. In its ‘Recommendations on growth of value added services and regulatory issues’, Trai said there is need for uniformity in various licences and amendment of various access service licence agreements to pave way for the growth of VAS, particularly in mobile 2G/3G and next generation network environment. “The authority has not recommended any separate category of licence or registration for value added services,” it added. The VAS market in India is expected to cross Rs25,000 crore by the year 2009-10 and contribute over 30% of the revenue of the telecom access service providers in the next 5-7 years. Trai suggested that the definition of VAS be redefined as “value-added services are enhanced services, in the nature of non-core services, which add value to the basic teleservices and bearer services, the core services being standard voice calls, voice/non-voice messages, fax transmission and data transmission. Source: Tech News - Livemint.com | 13 Feb 2009 | 11:19 am No separate licenses needed for VAS: TraiBy PTI New Delhi: Telecom Regulatory Authority of India (Trai) today said no separate category of licence or registration is required for the value added services (VAS), a move that will boost the growth of mobile value-added services industry in the country. In its ‘Recommendations on growth of value added services and regulatory issues’, Trai said there is need for uniformity in various licences and amendment of various access service licence agreements to pave way for the growth of VAS, particularly in mobile 2G/3G and next generation network environment. “The authority has not recommended any separate category of licence or registration for value added services,” it added. The VAS market in India is expected to cross Rs25,000 crore by the year 2009-10 and contribute over 30% of the revenue of the telecom access service providers in the next 5-7 years. Trai suggested that the definition of VAS be redefined as “value-added services are enhanced services, in the nature of non-core services, which add value to the basic teleservices and bearer services, the core services being standard voice calls, voice/non-voice messages, fax transmission and data transmission. Source: LatestNews-Home - Livemint.com | 13 Feb 2009 | 11:19 am Close: Markets rally on hopes for stimulus after Lalu’s budgetNew Delhi: Indian shares rose 1.8% on Friday, posting their second weekly gain in six, on expectations for fiscal incentives to revive slowing growth in an interim general budget on Monday. “I expect the government to stimulate the economy through duty cuts and higher spending, and give direction on interest rates,” said Deven Choksey, managing director at K R Choksey Shares & Securities. Financial stocks led by State Bank of India and ICICI Bank rose on hopes for a rate cut, while engineers Larsen and Toubro and Bharat Heavy Electricals gained on expectations for higher spending on infrastructure projects. Congress party-led UPA coalition government, which faces general elections by May, is expected to put rescuing flagging growth and stemming job losses at the centre of the mini budget to woo voters. The main BSE stock index ended up 1.78%, or 168.91 points, at 9,634.74, after having risen as much as 2.4% during trade. Twenty-seven of its components climbed. The benchmark gained 3.6% on the week, after falling 1.3% last week. The 50-share NSE Nifty index rose 1.9% to 2,948.35, its highest close since 6 January. India will stimulate domestic demand and inject liquidity into the system, trade minister Kamal Nath said on Friday, a day after data showed industrial output fell 2% in December. The country’s economy, Asia’s third-largest, is expanding at its slowest pace in six years, the government said this week, as the global economic crisis squeezes demand. The sluggish growth and a drop in the annual inflation rate to its lowest in a year at 4.39% at the end of January reinforced expectations for rate cuts, traders said. Top lender State Bank rose 3% to Rs1,194, ICICI added 3.1% to Rs434.35 and HDFC Bank firmed 1.5% to Rs945.50. Engineering and power sector-related shares rose on hopes the government will step up spending on infrastructure projects and help boost investments by increasing depreciation rates. Larsen and Toubro added 2.8% to Rs701.10, Bhel rose 3.9% to Rs1,466.80 and state-run utility NTPC gained 1.6% to Rs182.90. Markets reacted positively to an interim railway budget on Friday although it did not cut freight rates but promised growth in revenues and investment. Energy giant Reliance Industries, which shed nearly than 3% in the past two sessions, rose 2.9% to Rs1,390.95. Tata Steel, the world’s sixth largest steel maker, rose 4.7% to Rs194.15 after a top official said sales from its Indian operations were improving on construction sector demand, with February sales likely higher than January. Top utility vehicle and tractor maker, Mahindra and Mahindra Ltd jumped 7% to Rs320.95 after its board approved spinning of two businesses of its Mahindra Defence Systems division into separate companies. Source: Home - Livemint.com | 13 Feb 2009 | 11:14 am Interest rate cut desirable - PM adviserNEW DELHI (Reuters) - The Indian economy could do with another cut in interest rates as growth remains weak in the opening months of 2009, although the decision was up to the Reserve Bank of India (RBI), a key government adviser said on Friday.Source: Reuters: Money News | 13 Feb 2009 | 11:13 am Jindal Worldwide pledges 15.44% stakeMumbai: Apparel manufacturer Jindal Worldwide has said that two of its promoters have pledged 15.44% of their stake in the company with a lender. In a disclosure to the Bombay Stock Exchange (BSE), Jindal Worldwide said that one of its promoter Yamunadutt Agarwal had pledged over 17.23 lakh shares representing 8.6% stake in the company. Amitara Industries had pledged 13.72 lakh shares or 6.84% stake in the company. Estimated on the basis of prevailing market price of Jindal Worldwide, the shares pledge would have fetched promoters about Rs26.29 crore. As of December quarter, Yamunadutt Agarwal and Amitara Industries held 23.19% and 10.36% stake in the company respectively. The disclosure of the pledged shares follows market regulator Sebi’s directive which mandates promoters of all listed companies to disclose information about shares pledged by the promoter group. Shares of the company closed at Rs84.95, up 2.91% on the BSE. Source: LatestNews-Home - Livemint.com | 13 Feb 2009 | 11:13 am Plane crashes into NY home, 49 dieBy Reuters Washington: A plane with 48 people on board crashed into a house near Buffalo, New York, and burst into flames late on Thursday, and there were “multiple fatalities,” officials said. The plane, a Continental Connection flight operated by Colgan Air was on a flight from Newark, New Jersey to Buffalo, when it crashed in the Buffalo suburb of Clarence Center amid rain and sleet, they said. There were “multiple fatalities,” a local official said in a new briefing carried by local television. Buffalo News said on its website that the 48 people on the plane and one person on the ground “reportedly died” in the crash. It gave no source for the report The Federal Aviation Administration said there were 44 passengers and four crew on the plane and it crashed 6 miles (10 km) short of the airport. Source: LatestNews-Home - Livemint.com | 13 Feb 2009 | 11:03 am Lalu's rail budget is an election gimmick: Mamata BanerjeeFormer railways minister and chief of West Bengal's principal opposition party Trinamool Congress Mamata Banerjee Friday termed the railway budget as an election gimmick.Source: IndiaeNews.com: Business News | 13 Feb 2009 | 11:01 am Rail budget eyes polls, say BJP, Samajwadi PartyThe opposition Bharatiya Janata Party (BJP) along with the Samajwadi Party criticised the railway budget Friday, saying it was presented with an eye to the elections, but the ruling Congress insisted it was a developmental and pro-people package.Source: IndiaeNews.com: Business News | 13 Feb 2009 | 11:01 am Telugu Desam, Left MPs walk out of house over SatyamParliamentarians belonging to Telugu Desam Party (TDP) and the Left Front Friday staged a walkout in the Lok Sabha in protest against the speaker's decision not to allow a discussion on the Satyam Computer Services scandal.Source: IndiaeNews.com: Business News | 13 Feb 2009 | 11:00 am LS defers discussion on Satyam scam - Press Trust of India
Source: Google News India - Business | 13 Feb 2009 | 10:52 am Interest rate cut desirable, says PM’s adviserNew Delhi: The Indian economy could do with another cut in interest rates as growth remains weak in the opening months of 2009, although the decision was up to the central bank, a key government adviser said on Friday. And ahead of the interim budget on Monday, the government said it would continue to stimulate demand in an economy expected to grow at 7.1% in the 2008-09 fiscal year ending March, its slowest pace in six years. Suresh Tendulkar, chairman of the Prime Minister’s Economic Advisory Council, said a 2% annual fall in industrial production in December was worrying but not unexpected, and said it would take time for policy steps already taken to show results in boosting activity. “(A) cut in interest rates is desirable but the final decision has to be taken by the RBI,” Tendulkar said, referring to the Reserve Bank of India. “You have to give some time for existing measures to work. It is not like coin operating machine, that you put coin at the top and get coffee at the bottom,” Tendulkar said. The central bank cut its key lending rate by 350 basis points between October and early January. It kept its key rates unchanged at a review in late January, saying banks had to pass on the benefits of its previous rate cuts. The government has slashed factory gate duties, announced relief schemes for exporters and pledged extra spending to protect jobs and underpin growth, which is slowing from rates of 9% or more in the past three fiscal years. “The government is going to continue to stimulate domestic demand, the government will continue to inject liquidity and induce bank lending,” commerce and industry minister Kamal Nath said. “Indian banks have liquidity. It is important that banks lend because the credit system, for it to work efficiently, must have an efficient banks’ lending system,” Nath said. On Wednesday, the government said it would inject Rs3,800 crore ($780 million) into three state-run banks by the end of 2009-10, part of its plan to improve the capital adequacy ratio of state-run banks to 12%. As growth has slowed, wholesale price inflation has fallen sharply in India. From just below 13% last August, annual inflation fell to 4.4% at the end of January and some economists think it could turn negative in coming months. India’s chief statistician told Reuters that was possible, but added such an event would not equate to deflation. “For it, we need to track month-on-month inflation, year-on-year inflation makes no sense. There is no chance of deflation yet,” said Pronab Sen, secretary at the ministry of statistics and programme implementation. Source: Home - Livemint.com | 13 Feb 2009 | 10:49 am Open to Diageo board representation in USL: MallyaVijay Mallya, Chairman, UB Group, said contrary to media reports, the United Spirits and Diageo \"was not stuck\". When asked if he was open to Diageo picking up more than 15% stake that would require he make an open offer to the public and was he okay with a board representation for it, Mallya said, \"Im open to it.\"Source: Moneycontrol Top Headlines | 13 Feb 2009 | 10:47 am European data sets gloomy tone for G7 meetLondon: The German, French and Italian economies all shrank by more than expected in the last quarter of 2008, data on Friday showed, setting a dismal tone for a weekend G7 finance leaders’ meeting on the global crisis. Australia’s parliament pushed through a stimulus plan and the US Congress will vote later on Friday on President Barack Obama’s rescue package to lift the economy out of recession. German GDP shrank 2.1% quarter-on-quarter at the end of 2008, the worst contraction since the country’s unification in 1990. “The economy is now in its worst postwar recession. Due to this low starting point, we’ve cut our GDP forecast for 2009 to -3.6% from -2.5%. Downwards risks predominate. There can be no talk of economic recovery for now,” said Alexander Krueger of Bankhaus Lampe. A French prediction of a more than 1% contraction in 2009 added to the gloom before the meeting of G7 financial leaders in Rome this weekend. Italy’s economy shrank by a quarterly 1.8% in the last three months of 2008, the steepest drop since 1980. Copanies hit Economic recession, triggered by a banking crisis, is spreading quickly through all continents and threatening social order in developed and developing countries alike. Companies are struggling. France’s Renault scrapped its once sacrosanct 2009 profit targets, dropped its divided and slashed output as it warned that the crisis would change the landscape of the global auto industry. But some of Friday’s corporate news from Europe was mroe encouraging. German industrial conglomerate ThyssenKrupp unveiled a better-than-expected pretax profit and new orders in the fiscal first quarter, and saw its shares rise 4%. More details emerged about plans to lift the US. economy out of recession, with a plan to subsidise mortgages raising hopes for a solution to the slump in the US housing market which has reverberated around the world. The US Congress is due to vote on an economic stimulus bill later on todayafter Democratic leaders in both houses tied down final details of the deal, which includes about $507 billion in government spending and $282 billion in tax cuts. Asian shares on Friday reversed three sessions of losses during which investors had sought safe havens, with hopes rising that governments around the world were coming up with measures to cushion the worst of the global downturn. The MSCI index of non-Japan Asia-Pacific stocks rose 2.48%, partly reversing a 3.5% fall in the previous three sessions. Japan’s Nikkei ended 0.96 percent higher. In Europe, the FTSEurofirst 300 index was 2% higher in morning trade, led by financials on news of the US mortgage plan. Last-minute deal Last-minute deal-making saved Australia’s A$42 billion ($27.4 billion) stimulus plan. Parliament passed the package after it was sweetened with about $1 billion in separate spending for Australia’s ailing rivers, demanded by a key independent senator. Australia, boosted by Chinese demand for its commodities, has so far avoided following the United States, Japan and leading European economies into recession, but has had to apply aggressive interest rate cuts and other measures. The stimulus will be worth about 2% of gross domestic product in 2009 and 1.3% in 2010. The Treasury estimates it will lift growth by 0.5 points this financial year and 0.75% in 2009/10. With Japan flirting with deflation, Bank of Japan Governor Masaki Shirakawa joined a growing chorus urging G7 finance leaders to take concrete steps to rescue the worsening global economy. “The world economy is in a very severe situation at the moment, so I want (the G7) to frankly exchange views on economic conditions and the outlook and to discuss policy steps to help stabilise the world economy,” Shirakawa told reporters in Tokyo. Protectionism has also become a big issue as world leaders try to rescue their economies, and a “Buy America” clause in the US stimulus package is likely to be a hot topic in Rome. Germany will speak out against protectionist tendencies at the G7 meeting, Finance Minister Peer Steinbrueck said. Source: LatestNews-Home - Livemint.com | 13 Feb 2009 | 10:46 am Industry feels let down by LaluPTI New Delhi: Industry Inc today felt let down by railway minister Lalu Prasad for not cutting freight charges, saying his budget has widened the cross subsidisation with the freight component bearing the cost of passengers. While welcoming the 2% cut in most of the passenger fares, leading business chambers said they were expecting the railway minister to cut freight charges and stimulate the industry, witnessing a slowdown. “The minister has refused to respond to the current slowdown by cutting freight rates and helping Indian industry in the midst of a slowdown,” new Ficci president Harsh Pati Singhania said. Similar views were expressed by the PHD Chamber of Commerce and Industry. “The Interim Railway Budget has been a missed opportunity to reduce freight rates across the board to stimulate the economy, which is showing all signs of slowing down,” chamber president Satish Bagrodia said. He said the economy is reeling under the adverse impact of the global economic crisis and needs boost from all quarters. Source: LatestNews-Home - Livemint.com | 13 Feb 2009 | 10:43 am Govt cuts rail fares as elections approachNEW DELHI (Reuters) - The government unveiled modest cuts to most rail passenger fares on Friday with an eye on fast approaching national elections, but kept freight rates unchanged despite growing signs of strain in a faltering economy.Source: Reuters: Money News | 13 Feb 2009 | 10:42 am Shutdown called by BJP hits normal life in JharkhandThe statewide shutdown called by the Bhartiya Janata Party (BJP) to protest police baton charge on party leaders, including former external affairs minister Yashwant Sinha, badly affected normal life Jharkhand Friday.Source: IndiaeNews.com: Business News | 13 Feb 2009 | 10:33 am Tata Steel puts fresh acquisition on holdSteel major Tata Steel will not focus on any acquisition 'for the time being', a top company official said here Friday.Source: IndiaeNews.com: Business News | 13 Feb 2009 | 10:32 am Agra handicrafts workers strike work to protest taxThousands of craftsmen, skilled artisans, handicrafts manufacturers and emporia owners held a sit-in and went on a day-long strike here Friday to protest the imposition of tax on handicraft items.Source: IndiaeNews.com: Business News | 13 Feb 2009 | 10:31 am Hyundai hikes prices of three modelsAuto major Hyundai Motor India Friday hiked prices of three models - Santro, i10 and Accent - by up to Rs.14,600 on the back of rising input costs.Source: IndiaeNews.com: Business News | 13 Feb 2009 | 10:31 am Railways sees revenue of $19.6 bln in FY10NEW DELHI (Reuters) - Indian Railways expects revenues of 953.06 billion rupees ($19.6 billion) in the year to March 2010, while spending is seen at 844.3 billion rupees, railway minister Lalu Prasad said while presenting the railway budget for 2009/10.Source: Reuters: Money News | 13 Feb 2009 | 10:27 am Lalu’s railway budget boasts revenue, eyes pollsNew Delhi: Departing from normal practice, railway minister Lalu Prasad on Friday announced an across-the-board 2% cut in fares of ordinary and AC class in the interim budget for 2009-10. Presenting the vote-on-account for expenses in the first four months of next fiscal, he also announced reduction in the fares of ordinary passenger trains by Re1 for fares costing upto Rs50 for journey above 10 km. Click here to watch video The interim budget makes no changes in relation to freight rates. Normally, the interim budgets do not carry any financial proposals in view of the fact that it is a vote-on-account ahead of the general elections. Recalling that he had decided to reduce the second class fares of all mail, express and ordinary trains by 5% for tickets above Rs50 last year, Prasad said respecting the aspirations of the long distance passengers he has decided to reduce the second class and sleeper class fares of all mail and express and ordinary passenger trains by 2% for the ticket costing more than Rs50. Also Read: Interim Railway Budget Speech (PDF) He said during the last four years, he had reduced the fares of AC first class by 28% and AC II tier by 20%. Even as air travel is reportedly reflecting reduction in number of passengers due to economic slowdown, there has been a significant increase in the number of passengers of these classes on the railways. “Therefore, I have decided to reduce the fares of AC first class, AC II tier and AC III tier and AC chair car by 2% ,” he said amidst thumping of desks by members of ruling benches in the Lok Sabha. Click here to watch video The Minister said since the fare for rail travel for 10 km and below has already been reduced from Rs4 to Re1, this reduction will not be applicable for second class rail journey upto 10 km. He announced introduction of 43 new trains and extension of services of 14 others. Frequency of 14 trains has also been increased. In the wake of his visit to Japan, Germany and France to see the running of trains at speed between 300 and 350 km per hour, Prasad said action is on for examining feasibility of running bullet trains between Delhi-Amritsar, Ahmedabad-Mumbai-Pune, Hyderabad-Vijayawada-Chennai, Chennai-Bangalore, Ernakulam and Howrah-Haldia. Action would also soon be started for conducting a pre-feasibility study to run bullet trains between Delhi and Patna. Surveys for 14 new lines, gauge conversion of three and doubling of eight railway lines are proposed to be undertaken. The budget estimates for 2009-10 project a freight loading target at 910 million tonnes -- an increment of 60 million tonnes on 2008-09 -- and the number of passengers is likely to grow by 7%. Gross traffic receipts (GTR) is estimated at Rs93,159 crore, an increase of Rs10,766 crore over revised estimate of 2008-09. Ordinary working expenses have been budgeted at Rs62,900 crore to cover the full year impact of Sixth Pay Commission recommendation and the payment of 60% arrears due in 2009-10. Dividend payable to general revenues has been kept at Rs5,304 crore at the current applicable rates. Budgeting ratio has been pegged at 89.9% and annual plan outlay for the next year envisages an investment of Rs37,905 crore. The budgetary support from general revenue has been proposed at Rs9,600 crore excluding Rs1,200 crore to be received from the Central Road Fund. The internal and extra budgetary resource component would accordingly comprise 72% of the annual plan. Recalling performance of the Railways in the last five years under his stewardship, Prasad said the organisation scaled a new pinnacle every year without imposing any burden on the common man. The railways are set to establish the historic landmark of earning a cash surplus before dividend of more than Rs90,000 crore in five years. “The same Railways which faced a paucity of funds for replacement of over-aged assets in 2001 and which had to defer payment of Rs2,800 crore as dividend to general revenues, have now surprised the whole world with a historic financial turnaround,” he said. Speaking about the revised estimates for 2008-09, he said during this period freight loading and earnings registered a growth of 9% and 19% respectively. The passenger earning increased by 14%. However, in October and November, the growth in freight loading was adversely impacted by the recession in the international markets. There was a steep reduction in iron ore for export and container traffic. Steel traffic also reflected a decreased growth, resulting in a decrease in freight loading and earning in October-November. He said the situation in December-January reflected some improvement and hoped that the budget targets for passenger and goods earnings set for the current year will be surpassed. Prasad also said the first train service in Kashmir valley commenced between Anantnag and Rajwansher during the year, to be extended to Baramulla and Qazigund. Source: Home - Livemint.com | 13 Feb 2009 | 10:21 am Hyundai raises car prices by upto Rs 14636 - Business Standard
Source: Google News India - Business | 13 Feb 2009 | 10:20 am Austria aims at 10% growth in tourist arrivals from IndiaBy PTI New Delhi: Notwithstanding the global slowdown, Austria reported a 10% rise in arrivals of Indian tourists in the Alpine country during 2008 and the Austrian National Tourist Office (ANTO) is planning a slew of measures to sustain similar growth for 2009-11. “Around 48,000 Indians visited Austria during 2008, which was 10% growth over the 2007 figures. We are planning a series of incentives for Indian tourists and are looking at repeating the 10% annual growth for 2009-11,” Austrian National Tourist Office Marketing Manager (India) Christine Mukharji told reporters here. He said the global slowdown had failed to arrest the arrival of Indian tourists in Austria. “In fact, during the October-December quarter of 2008, the arrival of Indian tourists reported a rise of 70% over the corresponding period of 2007,” Mukharji said. ANTO is planning a series of initiatives to promote Austrian cities including Vienna and Innsbruck among Indians. “We are soon going to launch a special Delhi-Vienna-Innsbruck package, which would include four nights in Innsbruck and one night in Vienna at 2,000 euros for two adults and a minimal one euro for one child,” she added. This scheme is being undertaken in collaboration with the travel agency Austrian Air and Pegasus. Source: LatestNews-Home - Livemint.com | 13 Feb 2009 | 10:16 am Tata Steel sees better demand in India operationsKolkata: Tata Steel, the world’s sixth-largest steelmaker, expects sales from its Indian operations to pick up on demand from the construction sector, its managing director said on Friday. “We expect February sales to be 10-15% over January. Auto and household sectors are not doing well, but construction demand is not bad,” B. Muthuraman told reporters on the sidelines of an exhibition on foundry technology. Tata Steel posted a 26% rise in steel sales on year in January from its Indian operations. Muthuraman said there were no plans for any fresh acquisitions in the near term. “We have not decided on any other acquisition. Raw material acquisition is important, but we will wait for acquisitions in Canada, South Africa and Mozambique to fructify in next one-two years.” The company has no problem in funding its projects in Jharkhand and Orissa despite recent credit rating cut by Standard & Poor’s Ratings Services, he said. “Projects in Jamshedpur (in Jharkhand) and Orissa are in full swing. We have no funding issues,” he said. The company is expanding steel making capacity in Jamshedpur to 10 million tonnes by 2010-11 from 6.8 million tonnes now, a company spokesman said. It is also building a 6-million-tonne per annum integrated steel plant in phases at Kalinganagar in Orissa. Work on the first phase of 3 million tonnes started last year and it is expected to be completed in three years, the spokesman said. Shares in Tata Steel were up 4.6% at Rs194 by 3:20 pm in a firm Mumbai market that was up 1.7%. Source: LatestNews-Home - Livemint.com | 13 Feb 2009 | 10:06 am Tata Steel sees better demand in India operationsKolkata: Tata Steel, the world’s sixth-largest steelmaker, expects sales from its Indian operations to pick up on demand from the construction sector, its managing director said on Friday. “We expect February sales to be 10-15% over January. Auto and household sectors are not doing well, but construction demand is not bad,” B. Muthuraman told reporters on the sidelines of an exhibition on foundry technology. Tata Steel posted a 26% rise in steel sales on year in January from its Indian operations. Muthuraman said there were no plans for any fresh acquisitions in the near term. “We have not decided on any other acquisition. Raw material acquisition is important, but we will wait for acquisitions in Canada, South Africa and Mozambique to fructify in next one-two years.” The company has no problem in funding its projects in Jharkhand and Orissa despite recent credit rating cut by Standard & Poor’s Ratings Services, he said. “Projects in Jamshedpur (in Jharkhand) and Orissa are in full swing. We have no funding issues,” he said. The company is expanding steel making capacity in Jamshedpur to 10 million tonnes by 2010-11 from 6.8 million tonnes now, a company spokesman said. It is also building a 6-million-tonne per annum integrated steel plant in phases at Kalinganagar in Orissa. Work on the first phase of 3 million tonnes started last year and it is expected to be completed in three years, the spokesman said. Shares in Tata Steel were up 4.6% at Rs194 by 3:20 pm in a firm Mumbai market that was up 1.7%. Source: Home - Livemint.com | 13 Feb 2009 | 10:06 am Harsh Goenka open to an outsider succeeding him at RPGIndian business houses are increasingly looking at preparing succession plans, to avoid tussles like those seen in the Aambani or the Bajaj family. RPG Group\'s Harsh Goenka says his brother and he may even be succeeded by an outsider.Source: Moneycontrol Top Headlines | 13 Feb 2009 | 10:05 am Govt’s FDI policy draws flak in Rajya SabhaBy PTI New Delhi: Government’s new policy on excluding indirect FDI from the sectoral caps came in for a sharp criticism in the Rajya Sabha today from the Left parties, which said it is enabling foreign investors to break the ceilings through backdoor channels. “By this (change in policy), there will be no sectoral cap in telecom, defence and aviation. Even in retail sector, FDI can make backdoor entry,” Moinul Hassan of CPI-M said during Zero Hour. The Cabinet Committee on Economic Affairs made changes in the FDI guidelines on 11 February. Under the new rules, the FDI in investing company owned and controlled by Indians will not be counted in determining the caps in its joint venture with another foreign firm. With the changes in the policy, the foreign investors (direct and indirect) -- will be able to cross the sectoral caps. Raising the matter, Hassan, supported by his Left party colleagues, said the policy change was tantamount to showing “utter contempt” to Parliament on the eve of the session. Describing the matter as very serious, he demanded that the new guidelines be rescinded. Source: Home - Livemint.com | 13 Feb 2009 | 9:23 am Microsoft to open own retail stores called ‘Gurus’Seattle: Microsoft Corp. on Thursday announced plans to open its own stores despite the economic downturn that has left many retailers struggling. The company hired David Porter, a 25-year veteran of Wal-Mart Stores Inc., as its corporate vice president of retail stores. Porter was head of worldwide product distribution at DreamWorks Animation SKG Inc. since 2007. Porter, who is set to start work on Tuesday, is charged with improving the PC-buying experience. The company said his first task will be to set the timing, locations and design of Microsoft-branded retail stores, which will sell computers installed with Microsoft software as well as other company products. Microsoft has been working to revive the image of its ubiquitous Windows operating system, starting with a $300 million advertising campaign that began last fall. Vista, the most recent version of the software, was widely criticized for being slow, requiring new and pricer hardware, and not working with devices like printers and scanners. Vista has also been the subject of a series of snarky television ads from Apple Inc. At the same time it launched upbeat new TV ads last fall, some of which struck right back at Apple, Microsoft posted 144 of its own employees in electronics chain stores around the world to talk with shoppers about Windows. The “Gurus” seemed to be Microsoft’s answer to Apple’s in-store “Genius Bar.” With its newly announced retail store intentions, the Redmond-based software maker is taking yet another page from Apple’s play book. Apple credits its stores, concentrated mostly in the U.S., for helping boost its profile and draw new customers. But Microsoft’s timing may be off. The US recession has socked the retail sector, and purveyors of electronics have been hit hard. Circuit City Inc. filed for Chapter 11 bankruptcy protection in November and said in January it would liquidate its 567 US stores, cutting more than 34,000 jobs. Best Buy Inc. laid off thousands of corporate employees in December and reported same-store sales a key measure of retail health sank 6.5%. Even Apple, whose iPods, iMacs and iPhones draw brand-conscious customers willing to spend more for design, was hit in the holiday quarter by the recession as average sales per store dropped to $7 million from $8.5 million in 2007. Microsoft had no comment on the plight of Apple and the big-box stores, but said its own retail stores can help shoppers make smarter decisions about spending money on technology. The company had set up a concept store at its headquarters with displays of Windows computers, Xbox 360 consoles and games and other items. But the company said it’s meant to help stores like Best Buy see new merchandising ideas in action, and is not a prototype for stand-alone retail stores. Source: Tech News - Livemint.com | 13 Feb 2009 | 9:21 am Govt\'s home loan pkg a damp squibPublic sector banks had announced their home loan package on December 15, 2008, wherein banks would lend loans with a fixed interest rate for the first five years. But fear that they will lose on a five year fixed rate scheme due to uncertain rate movement led to many banks dissuading borrowers from the government promoted home loan package.Source: Moneycontrol Top Headlines | 13 Feb 2009 | 9:10 am Govt to eye polls, economy in mini budgetNEW DELHI (Reuters) - The coalition government will put rescuing flagging growth and stemming job losses at the centre of a mini budget on Monday as it aims to woo voters ahead of general elections just weeks away.Source: Reuters: Money News | 13 Feb 2009 | 9:09 am India’s United Spirits may up stake offer to DiageoNew Delhi: Indian liquor maker United Spirits said on Friday it was prepared to offer a stake of more than 15% and board representation to Diageo Plc to ensure a successful conclusion to talks that began in 2008. Diageo, the world’s largest alcoholic drinks group, said there was no certainty of a deal with United Spirits, the world’s third-largest spirits maker by volume. United Spirits chairman Vijay Mallya said while he had intended to offer Diageo a stake of less than 15%, using shares that United had bought back and was holding on its books, he was willing to offer more if Diageo wanted. “Absolutely... I have already done it with United Breweries. I brought in Scottish & Newcastle and they made a public offer. I have already done it before and I don’t see why I should have a problem with that now,” Mallya told CNBC TV18. He also said that if Diageo wanted board representation then he would not stand in the way. Under Indian law, the purchase of a 15% stake triggers a mandatory open offer for a further 20% of the company. “Diageo can confirm it is reviewing a possible collaboration with United Spirits. However there is no certainty at this stage that these discussions will result in a transaction,” a spokeswoman for Diageo in India said. Media reports have said United Spirits, which has a market value of about $1.4 billion, would use proceeds from the stake sale to reduce debt of $1.2 billion from its purchase of Scottish spirits maker Whyte & Mackay in 2007. Mallya said United would also push ahead with plans to sell 49% in Whyte & Mackay, which was part of the discussions with Diageo. “So, yes, with or without Diageo, that is something that is very much on my agenda because I have confirmed that in six months I will deleverage United Spirits, and it is certainly one of the options before me,” Mallya said. Diageo isn’t yet ready to sign a deal with United Spirits Vijay Mallya’s stake sale of up to 14.9% in United Spirits to the world’s largest liquor maker, Diageo, seems to have got stuck with the chief executive of the latter saying that his company is not ready to sign a deal at the moment. “Diageo Plc isn’t yet ready to sign a deal with United Spirits Ltd (USL) in India,” Diageo chief executive Paul Walsh said. Mallya in January had said that the UB Group was open to selling up to 14.9% of its treasury stocks in USL to a strategic partner and in that regard he had met Diageo officials in New York. Mallya on Friday said, “Both Diageo and United Spirits are public companies and cannot possibly be expected to comment on a potential transaction in definitive terms till negotiations are totally conclusive in all aspects”. However, both Diageo and United Spirits would not invest the considerable time and money together with advisers to engage in negotiations if there was no intent to work towards a transaction, he added. United Spirits portfolio comprises over 150 products including brands such as Black Dog, Signature, Royal Challenge and Romanov. Diageo markets brands such as Johnnie Walker Black & Red Label, Smirnoff, Balleys and Guinness in India from its international portfolio. Source: World Business - Livemint.com | 13 Feb 2009 | 8:55 am India’s United Spirits may up stake offer to DiageoNew Delhi: Indian liquor maker United Spirits said on Friday it was prepared to offer a stake of more than 15% and board representation to Diageo Plc to ensure a successful conclusion to talks that began in 2008. Diageo, the world’s largest alcoholic drinks group, said there was no certainty of a deal with United Spirits, the world’s third-largest spirits maker by volume. United Spirits chairman Vijay Mallya said while he had intended to offer Diageo a stake of less than 15%, using shares that United had bought back and was holding on its books, he was willing to offer more if Diageo wanted. “Absolutely... I have already done it with United Breweries. I brought in Scottish & Newcastle and they made a public offer. I have already done it before and I don’t see why I should have a problem with that now,” Mallya told CNBC TV18. He also said that if Diageo wanted board representation then he would not stand in the way. Under Indian law, the purchase of a 15% stake triggers a mandatory open offer for a further 20% of the company. “Diageo can confirm it is reviewing a possible collaboration with United Spirits. However there is no certainty at this stage that these discussions will result in a transaction,” a spokeswoman for Diageo in India said. Media reports have said United Spirits, which has a market value of about $1.4 billion, would use proceeds from the stake sale to reduce debt of $1.2 billion from its purchase of Scottish spirits maker Whyte & Mackay in 2007. Mallya said United would also push ahead with plans to sell 49% in Whyte & Mackay, which was part of the discussions with Diageo. “So, yes, with or without Diageo, that is something that is very much on my agenda because I have confirmed that in six months I will deleverage United Spirits, and it is certainly one of the options before me,” Mallya said. Diageo isn’t yet ready to sign a deal with United Spirits Vijay Mallya’s stake sale of up to 14.9% in United Spirits to the world’s largest liquor maker, Diageo, seems to have got stuck with the chief executive of the latter saying that his company is not ready to sign a deal at the moment. “Diageo Plc isn’t yet ready to sign a deal with United Spirits Ltd (USL) in India,” Diageo chief executive Paul Walsh said. Mallya in January had said that the UB Group was open to selling up to 14.9% of its treasury stocks in USL to a strategic partner and in that regard he had met Diageo officials in New York. Mallya on Friday said, “Both Diageo and United Spirits are public companies and cannot possibly be expected to comment on a potential transaction in definitive terms till negotiations are totally conclusive in all aspects”. However, both Diageo and United Spirits would not invest the considerable time and money together with advisers to engage in negotiations if there was no intent to work towards a transaction, he added. United Spirits portfolio comprises over 150 products including brands such as Black Dog, Signature, Royal Challenge and Romanov. Diageo markets brands such as Johnnie Walker Black & Red Label, Smirnoff, Balleys and Guinness in India from its international portfolio. Source: Home - Livemint.com | 13 Feb 2009 | 8:55 am IT cos look to push campus hiring closer to passout dateStudents of the countrys best engineering colleges may now have to wait till their final year for clinching a job with an IT firm. In a bid to get greater visibility of the business environment while hiring, IT companies, such as TCS and Wipro Technologies, are now looking to push campus recruitments closer to the passout date.Source: Moneycontrol Top Headlines | 13 Feb 2009 | 8:54 am IAF to have its own eye in spaceWith a view to increasing its surveillance capabilities, Indian Air Force is going to have its own satellite in space by the end of 2010.Source: Daily News & Analysis: Money News | 13 Feb 2009 | 8:47 am Ambani, Premji to meet US president Obama todayBillionaire businessmen Mukesh Ambani and Azim Premji will be meeting US president Barack Obama on Friday.Source: Daily News & Analysis: Money News | 13 Feb 2009 | 8:45 am Action on Mumbai attacks to determine Indo-Pak relations: PranabNew Delhi: External affairs minister Pranab Mukherjee in a suo-moto follow-up statement to Mumbai terror attacks in the Lok Sabha on Friday said, “We are in a point in our relationship where the authorities in Pakistan itself have to chose the kind of relationship that they want with India in the future. Much depends on actions in the Mumbai case reaching the logical conclusion.” In an indication that India would continue with the track-II diplomacy with Pakistan, despite the freeze in the relationship between the two neighbours on account of Mumbai outrage that killed 183 people, Mukherjee added, “I must underline that we have no quarrel with the people of Pakistan. We wish them well and we do not think that they should be held responsible or face the consequences of the situation. We have therefore consciously and after due deliberations not thought it necessary or fit to curtail people to people contacts, trains and road links.” Indian government strongly claims that 26 November Mumbai terror attacks were orchestrated by Pakistan-based terror groups, an allegation that Pakistan has partly admitted to. India has already dropped several trade plans with Pakistan, such as removing it from the list of countries from where foreign direct investment was not allowed due to security reasons; opening branches of State Bank of India and Bank of Indian Pakistan; trading in 1,938 items compared with the current 13; and opening the Skardu-Kargil route in Jammu and Kashmir for commerce. It has also abandoned plans to set up border posts to facilitate movement of goods and people to and from Pakistan, Bangladesh, Nepal and Myanmar, as reported by Mint on 5 December. Source: Home - Livemint.com | 13 Feb 2009 | 8:44 am Railways to invest 2.3 trln rupees in FY10 - minNEW DELHI (Reuters) - Indian Railways will invest 2.3 trillion rupees during the financial year to March 2010, the federal railway minister Lalu Prasad Yadav said in his speech while presenting the railway budget for 2009/10 on Friday.Source: Reuters: Money News | 13 Feb 2009 | 8:05 am Govt to take steps to save jobs in affected sectors - minNEW DELHI (Reuters) - India is concerned about job losses in the civil aviation, textile, and gem and jewellery sectors and will take steps to retain jobs in the affected sectors, the federal labour minister said on Friday.Source: Reuters: Money News | 13 Feb 2009 | 7:38 am More Americans updating status online: PewBy AFP Washington: Eleven percent of Internet-connected US adults updated their status online using Twitter or another social network in December, nearly twice as many as in May, a survey released on Thursday said. The survey by the Washington-based Pew Internet and American Life Project also found that the median age of a user of micro-blogging service Twitter is 31 years old as opposed to 27 for MySpace, 26 for Facebook and 40 for LinkedIn. Pew said that 11% of the 2,253 Web-connected adults surveyed in December said they use Twitter or another service to share updates about themselves, up from 9% in November and 6% in May. Twitter allows users to send messages of 140 characters or less through a computer or mobile phone to other users. Social networks such as Facebook also feature a status update option. Pew said that unsurprisingly, the use of Twitter and similar services drops off with age. It said 19% of online adults aged 18 to 24 years old said they have used Twitter or similar services. Twenty percent of those aged 25 to 34 said they have done so, 10% of 35 to 44 year olds, 5% of 45 to 54 year olds and just 4% of 55 to 64 year olds. Pew also said that 13% of Web-connected Americans surveyed said they have created a blog. The Washington-based Pew Center said the survey had a margin of error of plus or minus two to three percentage points. Source: Tech News - Livemint.com | 13 Feb 2009 | 7:31 am Satyam an aberration in system; company functioning as usualNew Delhi: The government on Friday said it was business as usual at Satyam Computer ever since a new board took its reins following an accounting scam, which the Corporate Affairs Minister described as an aberration. “Satyam is a stand alone case. Our corporate sector is very matured and our IT sector is respected worldwide,” Prem Chand Gupta, Minister of Corporate Affairs, said in the Lok Sabha during Question Hour. Different investigating agencies -- Sebi, Registrar of Companies (RoC) and Serious Fraud Investigation Office (SFIO) -- are looking into the fraud and “I assure you that those found guilty would be meted out severe punishment.” With regard to two companies promoted by Satyam founder Ramalinga Raju’s family -- Maytas Infra and Maytas Properties, the minister said that “as per the initial investigations certain interconnection has been found and therefore, SFIO’s ambit of investigation has been expanded to these two firms also.” CPI-M member Rupchand Pal, however, alleged that the scamster (referring to the main accused Ramalinga Raju) is being protected. “Operation cover-up is going on... the scamster is under protected custody and enjoying 5-star facilities,” Pal said. BJP member L.N. Pandey alleged that the government was aware of irregularities even before 7 January, the day when Raju disclosed Rs7,800 crore financial scam, as movement in Satyam scrip was investigated during the Ketan Parekh scam. To this, Gupta gave details of the investigations that took place in 2001-2002 and pointed out that the then government had cleared it. “It is unfortunate that now you are trying to give political colour to Satyam episode,” he said and asked the members not to politicise this. The government is alert and every possible action is being taken to make the company function normally. “Many national and international companies are dealing with Satyam ... As many as 175 MNCs give work to this IT firm,” he said. The government’s first priority was to restore normal functioning and take care of 53,000 employees of the IT firm. “Satyam is doing well. The government-appointed board has been appreciated by all, including the political leaders, and they are doing their job. Various investigative agencies are working in a coordinated manner in association with the state authorities and agencies,” he said. Gupta, however, declined to elaborate on the ongoing investigation, saying “unless a clear picture is there I would not like to reveal anything.” Source: Home - Livemint.com | 13 Feb 2009 | 7:20 am Sensex up by 169 points on positive cuesNo changes in rail freight rates, and expectations of another stimulus package lifted the benchmark Sensex by 169 points.Source: Daily News & Analysis: Money News | 13 Feb 2009 | 5:52 am Regulator seeks Kingfisher’s air fare hike detailsMumbai: Kingfisher Airlines has received a letter from the regulator seeking details on the fare hikes announced by it earlier this week, its top official told news channel CNBC TV 18. “Let me confirm that we have late yesterday received a letter from the DGCA (Directorate General of Civil Aviation), asking details about the fare hike, to which we shall reply,” chairman Vijay Mallya told the channel on Friday. Kingfisher Airlines, along with peers Jet Airways and SpiceJet, increased airfares on several domestic routes, prompting the government to say it was keeping watch to prevent cartelisation. “We have no problem in submitting a comprehensive reply to the DGCA...we have nothing to hide,” he added. “We need to find a positive route to profit, we cannot do a public service,” he said. Kingfisher Airlines had reported a loss of Rs4.13 rupees in Oct-Dec. “If the government helps us to bring down costs by reducing taxes and charges we will bring down the fares,” Mallya added. Source: Home - Livemint.com | 13 Feb 2009 | 5:31 am Rail-related cos surge ahead of interim railway budgetMumbai: Stocks of engineering and wagon manufacturing firms surged on Friday on the Bombay Stock Exchange ahead of the interim Railway Budget. Major gainers include state-run Bharat Earth Movers Ltd (BEML), Container Corporation of India and rail infrastructure developing firm Kalindee Rail Nirman Engineers Ltd. Marketmen said wagon manufacturing companies and logistics firms gained on the bourses amid expectations of new contracts as introduction of new trains may be announced in the budget. Interim Railway Budget is likely to have proposals for introduction of more trains such as Garib Rath. Besides, the railways minister is expected to announce some pro-people schemes ahead of the Lok Sabha polls, they added. Kalindee Rail Nirman Engineers Ltd gained 7.6% at Rs156.90. State-run BEML rose by 4.58% to Rs413. K.K. Birla Group firm Texmaco, which is in the business of wagon manufacturing, went up by 8.63% to Rs62.25. Currently, there are 20 Garib Raths that provide AC comfort to passengers belonging to poor sections of society, and a few more are likely to be announced this time. Anticipating positive announcement, Titagarh Wagons soared by 6.28% to Rs262, Container Corporation of India was up 1.13% at Rs684.85 and Kernex Microsystems, which is into the business of signal systems, rose by 8.86% at Rs93.35. Logistics firm Gateway Distriparks rose by 4.87% to Rs61.30 and Kolkata-based engineering firm Stone India jumped nearly 5% to hit its upper circuit at Rs23.65. While the budget is likely to register a cash surplus before paying dividend at about Rs25,000 crore, the operating ratio is also expected to be more than last year’s 76%. Source: Home - Livemint.com | 13 Feb 2009 | 5:17 am Facebook, Nokia look to bring social network to mobilesWashington: Facebook is in discussions with Nokia on ways to integrate the widely popular social network into mobile phones made by the Finnish giant, The Wall Street Journal reported. The newspaper, citing “people familiar with the matter,” said Facebook’s Palo Alto, and Nokia were discussing a partnership that would embed parts of the social network into some Nokia phones. The Journal said the talks have been going on for months. Financial terms of the potential deal could not be obtained, it said. The newspaper said Nokia, the world’s largest mobile phone maker, was deciding whether it wanted to team up with an established Web player like Facebook or “build a social network from the ground up.” It said the two companies were looking at potentially integrating contact information stored in Facebook with a phone’s address book. “When users looked up a contact, they could see whether their Facebook friends were logged on, send them messages and post comments on their profile pages,” the Journal said. Facebook is also working with US handset maker Palm on integrating aspects of the social network into its new mobile operating system, the Journal said, and has also held talks with another US mobile phone maker, Motorola. It quoted a Facebook spokesperson as saying the company is “dedicated to working with and developing partnerships with mobile operators and device makers all over the world.” Facebook has already built software applications for Research in Motion’s Blackberry and Apple’s iPhone. According to Nielsen Co. figures cited by the Journal, Facebook in December surpassed rival MySpace in terms of the number of visitors from mobile phones -- seven million US mobile users for Facebook compared with 5.7 million US mobile users for MySpace. According to Internet tracking firm Compete.com, Facebook racked up nearly 1.2 billion visits in January while News Corp.-owned MySpace slipped to second place with approximately 810 million visits in January. Source: Tech News - Livemint.com | 13 Feb 2009 | 4:32 am First cloned buffalo calf developed, but tragedy strikesChennai, Feb.12 A week ago, Dr S.K. Singla and his team of scientists had everything to be happy about. They had succeeded in developing the country’s first cloned buffalo. The calf, born on February 6, was developed through aSource: Business Line - Home Page | 13 Feb 2009 | 12:00 am The RBI: Down memory laneIn the recent period, there have been two books on the Reserve Bank of India (RBI) on behind the scene chronicles from an individual’s vantage point. First is Reminiscences of a Central Banker by V. G. Pendharkar . The book,Source: Business Line - Home Page | 13 Feb 2009 | 12:00 am Day Trading GuideInitiate fresh long-position in DLF, only if the stock moves above Rs 167 with tight stop-loss. ICICI Bank and SBI are moving sideways. We are negatively biased on these stocks. FreshSource: Business Line - Home Page | 13 Feb 2009 | 12:00 am Inflation rate cools below 5% on fuel price cutsNew Delhi, Feb 12 The annual Wholesale Price Index-based inflation rose 4.39 per cent during the week ended January 31, way below the previous week’s yearly rise of 5.07 per cent. The year-on-year inflation rate was recorded at 4.74 perSource: Business Line - Home Page | 13 Feb 2009 | 12:00 am Airlines told to give fare break-up on Web sitesNew Delhi, Feb. 12 Domestic air travelers making bookings on airline Web sites may soon not have to worry about how much more they will have to pay in the form of surcharges in addition to the basic fare being charged by theSource: Business Line - Home Page | 13 Feb 2009 | 12:00 am HAL gets back 450 of its former employeesBangalore, Feb. 12 Recession seems to be working positively in a way for the State-owned Hindustan Aeronautics Ltd, which says it has got back 450 of its former employees after it advertised jobs forSource: Business Line - Home Page | 13 Feb 2009 | 12:00 am HEG (Rs 107.45): BuyWe recommend a buy in the stock of HEG from a short-term trading perspective. It is apparent from the charts of HEG that after encountering resistance at around Rs 293 in August 2008, it resumed its downtrend. Since then, the stock was on anSource: Business Line - Home Page | 13 Feb 2009 | 12:00 am Industrial output dips 2% in DecNew Delhi, Feb. 12 Indian industry has recorded a dismal minus two per cent growth in December, with employment-intensive sectors such as textiles, leather, wood products and transport equipment bearing the brunt of the outputSource: Business Line - Home Page | 13 Feb 2009 | 12:00 am Renault may drop plans to set up plant in ChennaiChennai/Mumbai, Feb. 12 French car maker Renault has said that it is reviewing plans for its factory in Chennai and may even completely abandon theSource: Business Line - Home Page | 13 Feb 2009 | 12:00 am Do IIP figures negate GDP growth estimate?New Delhi, Feb. 12 The 7.1 per cent growth rate in the country’s gross domestic product (GDP) for 2008-09 according to the Centre’s ‘advance estimate’ made earlier this week appears to be now on the higher side.Source: Business Line - Home Page | 13 Feb 2009 | 12:00 am GHCL opens Rosebys stores after initial delayAfter initial hiccups, soda-ash maker GHCL, which entered into textiles after acquiring UK's Rosebys for $40 million in 2006, has slowly begun opening stores.Source: Daily News & Analysis: Money News | 12 Feb 2009 | 9:14 pm Satyam bidding contours next weekAfter ensuring that fund flow and payouts are in place, the new board of the fraud-hit Satyam Computer Services is now training its guns on client retention.Source: Daily News & Analysis: Money News | 12 Feb 2009 | 9:13 pm Israel overtakes Russia as Defence's top supplierIn a shift that has Russia and Europe worried, Israel may have overtaken Russia as the biggest beneficiary of India's defence budget in the last two years.Source: Daily News & Analysis: Money News | 12 Feb 2009 | 9:12 pm GM says Talegaon facility on trackPutting paid to rumours, automaker General Motors (GM) India has said that the construction of its powertrain facility at Talegaon in Maharashtra is very much on track.Source: Daily News & Analysis: Money News | 12 Feb 2009 | 9:10 pm NRI queriesNow, an NRI can continue his already started PPF account till maturity but cannot open a fresh one thereafter.Source: Daily News & Analysis: Money News | 12 Feb 2009 | 8:35 pm Diageo not yet ready for deal with MallyaEven though it wants to expand its footprint in India.Source: Daily News & Analysis: Money News | 12 Feb 2009 | 8:35 pm Five trends that will shape business technology in 2009When downturns hit, there is a certain inevitability to their impact on information technology (IT). Declining profits will place tremendous pressure on IT budgets in most sectors and regions. Chief information officers, or CIOs, will be called on to rationalize projects, downsize organizations, renegotiate contracts and seek out other cost-reduction opportunities.  Illustration: Jayachandran / Mint Taken together, this combination of cost pressures and IT organizations that are leaner, larger, and more vital to company goals will have new implications for business technology in 2009. Here’s what may be in store. IT and corporate finance converge: The year 2009 will be a tipping point for the chief financial officers (CFOs) involvement with IT. Large businesses have hundreds of millions or even billions of dollars locked up in their IT organizations— including data centre facilities, systems assets, and organisational capabilities built over time. In a world where capital is at a premium, CFOs will seek to use IT assets as a lever to generate cash. They may sign outsourcing deals that include a bigger financing aspect, such as having IT service providers make a large upfront payment in return for higher margins over the course of a contract. They may sell and lease back hard assets, such as data centre facilities. They may place favourable vendor financing at the core of hardware and software purchasing decisions, as many companies in heavy industry do when they buy industrial equipment and as telcos have done for years. Successful CIOs will give the senior management team practical ideas on how to optimize cash. Tension around IT budgets increases: Since 2001, IT capabilities have become ever more strategically important for most sectors. Yet IT budgets in many organizations will come under tremendous pressure in 2009, reducing investment for new business capabilities. Internal competition for rationed IT resources will become especially fierce as senior executives see access to them as critical to the success of their business units and their careers. Successful CIOs will have to position themselves as honest brokers, pushing hard to evaluate IT investments in a fact-based way yet avoiding any perception of being allied with one business unit or another. The “last” IT project? While it’s clear that technological competence is critical in most industries, the variation in returns on IT investments is daunting. In retailing, for example, a CFO knows with some precision what an additional location will cost and how much revenue it is likely to generate. In contrast, an IT project’s total cost could be off by an entire order of magnitude and its value either minimal or game changing. Senior executives at some organizations that have used IT less successfully in the past will probably throw up their hands and shut off all discretionary IT projects for the duration of the downturn. Naturally, this situation will challenge CIOs. The most effective course will be to explain what it would take to improve the value equation for IT investments. Regulators demand more from IT: Government scrutiny of business will intensify in many developed countries. Already, in the US, the Office of the Comptroller of the Currency weighs in on the resiliency of banking systems, the Food and Drug Administration (FDA) requires that many pharmaceutical systems be “validated,” and the Sarbanes–Oxley Act drives decisions about accounting systems in every industry. In the future, policy makers and regulators will probably demand that IT systems capture more and better data in order to gain greater insight into and control over how banks manage risk, pharma companies manage drugs, and industrial companies affect the environment. Government officials also will monitor many legal and business rules more closely to ensure compliance with mandates. Successful CIOs should enhance their relationships with internal legal and corporate-affairs teams and be prepared to engage productively with regulators. They will need to seek solutions that meet government mandates at manageable cost and with minimal disruption. The offshoring and outsourcing landscape shifts: A decade ago, how many CIOs at Fortune 100 corporations would have guessed that Indian companies might now be among their largest and most strategic technology vendors? Just as the 2001 downturn led to a surge in offshoring, the 2008 downturn will also have far-reaching effects. A shake-up in the vendor landscape will likely follow the huge capacity increases of recent years, the current downward pressure on aggregate demand, and massive uncertainty in currency markets. Adding to the pressures are the strategic, government-sponsored initiatives launched by China and other nations to grab market share. Major mergers are more likely than not. New entrants will grow rapidly and some players could experience significant reverses. Successful CIOs will manage their vendor relationships as a portfolio so they will be well positioned as new winners evolve. CIOs will also need to be vigilant about how to manage transitions created by the consolidation or weakness of some service providers. Major, often unexpected, changes will directly affect IT organizations in 2009. The successful CIOs will be those who execute well, expand their influence within the enterprise, and, perhaps, are a little bit lucky. feedback@livemint.com Stefan Spang is a director in McKinsey’s Düsseldorf office and global leader of McKinsey’s business technology practice. Copyright ©2009 McKinsey & Co. All rights reserved. Source: Tech News - Livemint.com | 12 Feb 2009 | 7:31 pm World's first cloned buffalo calf born in KarnalDies of lung infection, another on the way.Source: Business Standard | Front Page Headlines | 12 Feb 2009 | 6:39 pm Satyam starts process to invite buyout bidsBrand Satyam may have to go, says board.Source: Business Standard | Front Page Headlines | 12 Feb 2009 | 6:37 pm MRTPC probe into air fare riseThe decision comes soon after strong statements by Civil Aviation Minister Praful Patel yesterday against possible cartelisation after which the Directorate General of Civil Aviation (DGCA) wrote to airlines asking for details of the increases, which more than doubled base fares.Source: Business Standard | Front Page Headlines | 12 Feb 2009 | 6:36 pm Factory output falls most in 15 yrsInflation rate below 5%, raises hope of interest rate cut.Source: Business Standard | Front Page Headlines | 12 Feb 2009 | 6:35 pm Science | Indian scientists clone world’s first buffaloNew Delhi: Scientists at India’s National Dairy Research Institute (NDRI) on Thursday said they have cloned the world’s first buffalo calf using a technique superior to the one used in cloning ‘Dolly’ the sheep. In a statement, scientists of the animal biotechnology centre at the Karnal-based NDRI said the “handguided cloning technique” was an advanced modification of the “conventional cloning technique” used in cloning Dolly. The buffalo calf was born on 6 February at NDRI campus. —PTI Source: Tech News - Livemint.com | 12 Feb 2009 | 5:53 pm Facebook paid $65 million to ConnectU to settle suitSan Francisco: A law firm has let slip that Facebook paid $65 million (Rs316.55 crore) to settle a suit charging that founder Mark Zuckerberg swiped the idea for the website from former college roommates.  Confidential: Mark Zuckerberg CEO and founder of Facebook. Adam Berry / Bloomberg The law firm’s ad brags that it is a sound investment and that “it’s our opponents who needed a bailout”. The Recorder, a California legal publication popular among lawyers and judges, on Wednesday published a story about the leak. Quinn Emanuel lawyers represented ConnectU in a lawsuit that ended in a settlement endorsed by a federal judge in the Silicon Valley city of San Jose in June of last year. The financial terms of the settlement were edited from court documents and not disclosed by Facebook. “We can’t comment on a confidential agreement,” Facebook said in a written response to an AFP request for comment on Wednesday. ConnectU creators Tyler and Cameron Winklevoss claimed that they enlisted Zuckerberg to finish software code for their social networking website while they were all students at Harvard in 2003. Zuckerberg, a second year student at the time, took their code and their idea and launched Facebook in February of 2004 instead of holding up his end of the deal, according to ConnectU’s lawsuit. Facebook and ConnectU founders, in the company of lawyers and advisers, negotiated a settlement that includes Facebook buying ConnectU for an undisclosed amount of cash and stock, according to court documents. One condition of the deal is that all parties keep details confidential or pay a multi-million-dollar penalty. The lawsuit was seen as a threat to the existence of Palo Alto, California-based Facebook. Source: Tech News - Livemint.com | 12 Feb 2009 | 5:05 pm Tata Communications investing $430 mn in AsiaSingapore: Indian telecoms firm Tata Communications is investing $430 million in an Asian Internet data centre and cable system, the firm said Thursday. “These investments are a key part of the company’s commitment to enhance its robust global infrastructure as part of its two-billion US dollar expansion plan over three years,” it said in a statement. The data centre, the Tata Communications Exchange, will be operational in 2010 and will host servers and store data for the gaming sector, content providers and others, company officials said at a news conference. “The Asian market continues to be promising, even in the current economic environment,” Vinod Kumar, president and chief operating officer for Tata Communications, said in the statement. The company said it has already completed the “main segment” of the $250 million cable system, linking Singapore, Hong Kong, Japan, Vietnam and the Philippines, to provide increased data and voice reliability in the region. Known as the TGN-Intra Asia Cable System, it spans 6,700-kilometres (4,150 miles). “It increases data and voice reliability by providing new route diversity for traffic generated throughout and into Asia Pacific,” the statement said. Tata officials told reporters the undersea network will provide a link between Chennai in India, the Asia Pacific and the United States. They said its route will avoid an earthquake zone that, in late 2006, left millions of people across Asia without full Internet services after a 7.1-magnitude earthquake hit Taiwan. The quake disturbed several massive submarine cables linking the region with the US and beyond. Beh Swan Gin, managing director of Singapore’s Economic Development Board, said the investments “represent a strong vote of confidence for Singapore, and underline the growing partnership between Tata and Singapore.” Tata Communications is part of India’s Tata group, whose chief Ratan Tata last month urged top management to defer all “avoidable expenditure and growth plans” to confront the global financial crisis which has severely affected the group, the Hindustan Times quoted him saying in an an email to staff. Asked about the reported comments, Kumar said the company will “move and seize that opportunity” when it sees a chance to consolidate the firm’s position. “We’ve consciously chosen the areas that we want to pursue even in this environment,” added Srinath Narasimhan, managing director and CEO of Tata Communications. “And we’re being very careful about how we take hold of opportunities and where we put what amounts of money in what effort.” Narasimhan declined to give details on how the data centre and cable project are being funded except to say it was through “various capital-raising options, either as notes or equity”. Source: Tech News - Livemint.com | 12 Feb 2009 | 1:27 pm
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