Auto industry wants new govt to rationalise excise structure

New Delhi: With the UPA voted back to power again, the Indian automobile industry wants the government support to continue for promoting the sector as a key economic driver and asked for removal of differential excise structure for different sizes of vehicles.
“First and foremost (there should be) no reversal of financial stimulus packages announced over the last six months,” Mahindra & Mahindra president, Automotive Sector, Pawan Goenka said.
He said the government must also “review and amend large differences in excise duty on different sizes of vehicles”.
At present, passenger vehicles above 1500 cc engine size attract additional excise duty ranging between Rs15,000 and Rs20,000 over and above the 20% excise they attract.
Maruti Suzuki India managing director Shinzo Nakanishi, who had already stated the government should not hike excise duty, said: “Backed with this verdict I am sure the new government will re-enforce its initiatives to promote the automobile industry as a key economic driver.”
Congratulating the UPA on its decisive victory, Hero Honda Motors managing director and CEO Pawan Munjal said, “This mandate will strengthen the hand of the central government to unlock long awaited reforms in multiple sectors for the feel good factor to return to the economy.”

Source: LatestNews-Home - Livemint.com | 17 May 2009 | 10:49 am

Mixed bag for celebrity politicians in LS polls ‘09

New Delhi: It was a mixed bag for the celebrities in the fray at the hustings.
While Shatrughan Sinha, Jayaprada, Chiranjeevi and Navjot Singh Siddu tasted victory, star contestants like Vinod Khanna, Nafisa Ali and Ambareesh bit the dust.
Patna’s ‘Star Wars´ ended in victory for BJP’s shotgun, actor Shatrughan Sinha who trounced Congress candidate TV actor Shekhar Suman with a margin of more than two lakh votes.
Actress-turned-politician Jayaprada, the Samajwadi Party candidate from Rampur, defeated her nearest rival Congress candidate Noor Bano Begum by 12,093 votes.
Former cricketer Navjot Singh Siddu, BJP candidate from Amritsar defeated Om Prakash of Congress while singer Hans Raj Hans from Akali Dal, contesting from Jalandhar, lost to Mohinder Singh Kaypee of Congress.
Telugu superstar Chiranjeevi who floated the Praja Rajyam Party had mixed fortune on his electoral debut as he lost one and won one Assembly seat in Andhra Pradesh.
Chiranjeevi won from temple town of Tirupati but lost from Palakollu in his native West Godavari district.
“I look it at positively. People are with us and we achieved something on political front. We will do better next time,” Chiranjeevi said.
The results were disappointing for the star contenders in Karnataka as all the three film stars M H Ambareesh, Ashok and C P Yogeeshwar bit the dust.

Source: LatestNews-Home - Livemint.com | 17 May 2009 | 10:37 am

Azam Khan resigns as SP general secretary

New Delhi/Rampur: Rebel Samajwadi Party leader Azam Khan, who stoutly opposed the party roping in Kalyan Singh, on Sunday resigned as the Samajwadi Party general secretary and from its parliamentary board, blaming some for “tarnishing” the party’s secular image.
Khan, who was also involved in a feud with party chief Mulayam Singh Yadav and Amar Singh on Jaya Prada’s candidature from Rampur, took the decision a day after the 47-year-old cine star won the Lok Sabha polls.
Khan announced his decision in Rampur, skipping the SP parliamentary board meeting in Delhi.
“I was one of the few mentors of the establishment after the Emergency and I would continue to struggle with all my might to keep the party free from the clutches of the so-called socialist leaders, who were conspiring to tarnish the socialist and secular image of the party,” he said.
Khan stuck to his stand that SP’s friendship with Kalyan Singh has done damage to the party. “The entire Muslim community is angry over the friendship on Mulayam Singh Yadav with Kalyan Singh. I will continue my opposition in this regard till Kalyan Singh is thrown out.”

Source: LatestNews-Home - Livemint.com | 17 May 2009 | 10:31 am

UK govt ready to guarantee loans for Tatas’ JLR business

London: The British government has said that it is ready to guarantee loans to Indian conglomerate Tata group-owned Jaguar Land Rover, for which it is talking with European banks on the behalf of the cash-strapped carmaker.
While making it clear that the primary financial responsibility of JLR rests with the Tatas, the UK continues to hold “confidential discussions” over both short and long-term financing and business plans, an official at the British government’s Department of Business, Enterprise and Regulatory Reform (BEFR) said.
JLR, acquired by the Tatas in April 2008 for £1.15 billion from US auto giant Ford, has been facing financial troubles due to the global economic slowdown, and the company had sought assistance from the government.
Earlier in a media interview, Tata group chief Ratan Tata had said that he only wanted the UK government to facilitate access to credit and not a bailout for JLR. Besides, some other media reports have said recently that talks between the Tatas and the UK government have hit an impasse.
“The government wants to see JLR safely through difficult trading times and provide stability for the company and its employees. We regard JLR as a visible company with good long-term prospects,” the BERR spokesperson said.
The Department of Business, Enterprise and Regulatory Reform further said “the government’s role is not about picking winners or ignoring market signals but removing barriers which hold business back.
“It is about identifying markets that offer significant opportunity for high value-added employment or growth in Britain and where the government can have a positive impact in unlocking the competitive potential of firms and workers in these markets.”
Tata recently said the company does not seek bailout. “I would like to see the British government playing only one role. It controls the banks, and all I seek is the facilitation to provide access to credit on commercial terms. It’s not a bailout,” he had said in an interview published in the Sunday Times newspaper earlier this month.

Source: LatestNews-Home - Livemint.com | 17 May 2009 | 10:29 am

UK govt ready to guarantee loans for Tatas’ JLR business

London: The British government has said that it is ready to guarantee loans to Indian conglomerate Tata group-owned Jaguar Land Rover, for which it is talking with European banks on the behalf of the cash-strapped carmaker.
While making it clear that the primary financial responsibility of JLR rests with the Tatas, the UK continues to hold “confidential discussions” over both short and long-term financing and business plans, an official at the British government’s Department of Business, Enterprise and Regulatory Reform (BEFR) said.
JLR, acquired by the Tatas in April 2008 for £1.15 billion from US auto giant Ford, has been facing financial troubles due to the global economic slowdown, and the company had sought assistance from the government.
Earlier in a media interview, Tata group chief Ratan Tata had said that he only wanted the UK government to facilitate access to credit and not a bailout for JLR. Besides, some other media reports have said recently that talks between the Tatas and the UK government have hit an impasse.
“The government wants to see JLR safely through difficult trading times and provide stability for the company and its employees. We regard JLR as a visible company with good long-term prospects,” the BERR spokesperson said.
The Department of Business, Enterprise and Regulatory Reform further said “the government’s role is not about picking winners or ignoring market signals but removing barriers which hold business back.
“It is about identifying markets that offer significant opportunity for high value-added employment or growth in Britain and where the government can have a positive impact in unlocking the competitive potential of firms and workers in these markets.”
Tata recently said the company does not seek bailout. “I would like to see the British government playing only one role. It controls the banks, and all I seek is the facilitation to provide access to credit on commercial terms. It’s not a bailout,” he had said in an interview published in the Sunday Times newspaper earlier this month.

Source: World Business - Livemint.com | 17 May 2009 | 10:29 am

Telecom industry seeks resolve of spectrum, multiple levy issue

New Delhi: Telecom industry wants the new government to tackle the issue of multiple levies on the sector on a priority basis.
“(The) Government should make uniform licence fee of 6% across all services to avoid arbitrage opportunities,” said GSM operators association COAI director general T.V. Ramachandran.
His counterpart, S.C. Khanna, secretary general of CDMA operators association, also echoed the same. He also sought for reduction in telecom levies saying at the present rate of 30%, it is globally the highest.
“When we are paying 10% service tax and revenue share also, why should there be any other tax,” he asked.
Since both the associations have different agenda, they focussed on their priority areas which they want the new telecom minister to take up immediately.
Ramachandran said the new minister should resolve the 2G spectrum issues immediately adding a committee has submitted recommendation which should be finalised without delay.
On the spectrum issue, Khanna said new GSM operators should be given 6.2 Mhz of spectrum instead of the existing 4.4 Mhz.
COAI’s other priority was Government should do enough to increase rural connectivity and as part of that it should restore the 2% reduction in USO levy which has been rejected by the PMO due to some procedural glitch.
“This should be immediately rectified and restored to boost rural connectivity”, Ramachandran said.
COAI wants the 3G spectrum auction to start as early as possible so that private operators start the service soon.
Khanna called for more competition in the sector to ensure tariffs going down further.
“The new minister should ensure that competition must be carried on based on number of operators”, Khanna said.
Khanna feels with a strong footing this time, Congress should be able carry out telecom reforms better this time than the last time.
The mobile subscriber base in the world’s fastest-growing wireless market stands at 391.8 million as on March 2009, as per the the Telecom Regulatory Authority. In April, GSM operators added 8.93 million subscribers taking the total subscriber base to almost 400 million mobile subscribers.

Source: LatestNews-Home - Livemint.com | 17 May 2009 | 10:14 am

Sonia calls up Lalu, asks him to attend Cabinet meet

Patna: In an apparent bid to reach out to her estranged ally, Congress president Sonia Gandhi telephoned railway minister Lalu Prasad and asked him to attend the Cabinet meeting scheduled for Monday.
“UPA chairperson rang up the railway minister last evening and requested him to attend a meeting of the Union Cabinet on Monday,” said his private secretary Bhola Yadav on Sunday.
He, however, did not divulge what transpired during the telephonic talk between the two leaders coming in the backdrop of severe drubbing of RJD-LJP led Fourth Front had in Bihar.
The railway minister, he said, is scheduled to leave for Delhi later in the day.
Lalu has not been attending Cabinet meetings ever since he forged an alliance with Lok Janshakti Party and Samajwadi Party.
A dejected Lalu, Congress’ largest ally in the outgoing Lok Sabha, had on Sunday admitted that not contesting the elections in alliance with the Congress was a big mistake.
“The decision to contest elections without the Congress on our side was a big mistake and I acknowledge it. However, it is a matter of great happiness for me that the Congress-led UPA is all set to form its government at the Centre,” he said.

Source: LatestNews-Home - Livemint.com | 17 May 2009 | 10:08 am

Life insurers hope for reforms by the new government

A much stronger Congress-led coalition to form the next government bodes well for the life insurance sector clamouring for reforms, says the industry's representative organisation.
Source: IndiaeNews.com: Business News | 17 May 2009 | 10:00 am

Tata Steel takes major retail initiatives

Mumbai: Tata Steel on Sunday said it has taken major retail initiatives, including doubling its outlets to 1,000 in the next 2-3 years for its branded products, to promote sale of its steel products in the country.
The second step would be to increase the number of steel junction outlets in the eastern region through franchises to sell all kinds of steel items like furniture, jewellery, cutlery and home building items and branded products of the company, a Tata Steel official said.
The Jamshedpur-based steel major started its retail initiative in 1999 to reach out to the buyers. It has around 10,000 distributor-owned exclusive shops, including 3,000 in rural India, to sell its branded products.
In order to take the retail initiative forward, the company had in 2003 started the “retail identity programme” wherein certain shops were identified to be converted as exclusive outlets for branded products.
“Currently, out of these 10,000 outlets more than 500 are exclusive retail shops form where customers can get services like product weighment, assured price, door-delivery, roofing accessories, plumbing solution and product eduction,” the official said.
These shops are not company-owned but fully controled and monitored by the respective brand groups. These retail outlets sell assigned brands in allocated territories because the company believes that the buying behaviour of the people differers from brand to brand and market to market, the official said.
Around four years back, Tata Steel launched Steeljunction, which marked the company’s entry into the organised retail space. These stores sell all kinds of steel items like furniture, jewellery, cutlery and home building items produced by the company.
The company now has five steeljunction outlets in and around Kolkata, of which four are run on franchise model.
“Steeljunction is in the process of selecting franchise partners in Jharkhand, West Bengal and Orissa for further expansion,” the official said.
Domestic steel majors are expanding their retail presence to increase sales in the domestic market as the export market was on the wane.

Source: Home - Livemint.com | 17 May 2009 | 9:47 am

S.African court to rule Sunday on Vodacom listing

PRETORIA, May 17 (Reuters) - A South African court will decide on Sunday whether this week's listing of mobile phone company Vodacom can proceed after last-minute objections from the industry regulator and a powerful trade union group.

Source: Reuters: Money News | 17 May 2009 | 9:46 am

On the spot | Limited options

Agency: McCann Erickson
Santosh Desai, CEO, Future Brands
Santosh Desai, CEO, Future Brands
No prizes for the proposition — bringing winters to summers is as generic for air conditioners as real mango inside a mango drink bottle. The trick here is in the creative interpretation which focuses on the meaning of winter in human terms. The result is an ad that turns a sterile proposition alive as it celebrates quilts, a hot cup of tea and the joy of snuggling up. The execution could have been more evocative but, in a category where most work is utterly forgettable, here is something that tries to speak to us in real terms.
Agency: Lowe Lintas
An interesting update of the Daag achche hain (stains are good) thought. The idea begins at a place that is improbably far from the category—the idea of staining someone’s shirt to make him stop hiccupping is by no means an obvious one. It does drive home the point that stains can become a matter-of-fact part of life, and does so without drawing too much attention to the effort. The girl in the ad is cast perfectly and, while it lacks the obvious charms of the first commercial in the series (the boy attacking the puddle), it is a definite improvement on everything else done since then.
Agency: Lowe Lintas
A little laboured, but still fresh, given the nature of the category and the proposition. The idea of financial jargon becoming part of everyday life is sweet and relevant for a brand such as UTI, though not all vignettes work. It would probably not have found a place in this list at any other time, but it shines in comparison with the other drivel on offer.
Whatever happened to credible storytelling?
Where do I begin? Will it be the surreally bad Castrol commercial — where Rahul Dravid and Adam Gilchrist play football with a drop of oil — the pointless Saint Gobain commercial — which went overseas to find ugly people — or the execrable Sunsilk commercial, with Priyanka Chopra pretending to be in a Procter and Gamble ad. The award goes to the Sumo Grande commercial which, in trying to upgrade what was once a real brand, ends up with the most vacuous ad possible. It shows a woman chasing a handsome man in a Sumo, only to find his son tucked away under the front seat. That is a man with “more than meets the eye”? What happened to the Sumo brand, and what in god’s name happened to credible storytelling?
Watch as Santosh Desai shares why the ”Turkey of the month” advertisement offends him so!

Source: LatestNews-Home - Livemint.com | 17 May 2009 | 9:43 am

Insurance sector expects more reforms, raise in FDI cap

New Delhi: With the UPA winning a decisive mandate without the Left nagging, insurance industry feels that the new government could bring in legislation for raising foreign direct investment cap in the sector to 49%.
The bill to amend insurance laws to raise the FDI limit to 49% is pending in the Rajya Sabha and issue would be taken up by the Upper House after receipt of the report of the Standing Committee.
Earlier, the proposal could not go through because of stiff resistance from the Left parties.
“We would expect the new government at the centre to continue with the financial reforms to further liberalise the insurance sector,” MetLife India Insurance managing director Rajesh Relan said.
The government should push forward the Insurance Amendment Bill, which has been pending Parliamentary approval, as it will provide much needed impetus to the sector, he said.
Increase in FDI would help customers with better products, more options and better service levels from the insurance players in the industry, he said, adding that it would also help increase the needed penetration level for insurance in the country.
DLF Pramerica Life Insurance MD Kapil Mehta said the government should now be pushing the insurance sector reforms.
“I think with the new government in place things should move faster,” Mehta said.
Allianz India country manager Kamesh Goyal said, “It is a good news. This Government (UPA) brought in reforms by introducing Insurance Amendment Bill in Parliament a few months back. The Bill will now go through.”
The positive thing of the Congress coming in power again is that there will be continuity in the reforms. The government will push forward more reforms, Tata AIG General Insurance MD and CEO Gaurav Garg said.
Pitching for faster clearance of the insurance bill, Max India Group Chairman Analjit Singh said reforms in the financial services sector and change in the FDI norms for insurance are needed to bolster the economy.
Max India is the majority partner in private life insurance firm Max New York Life Insurance as well as proposed health insurance company Max Bupa Health Insurance.
Life Insurance Council secretary general S.B. Mathur hoped that the Bill (Insurance) would be passed soon to enable flow of more FDI in the insurance sector.
“This is a clear and stable government which will work freely. As Parliament will convene, the insurance bill will be cleared soon. Now, the economic reforms will also be pushed forward, he said.
Last year, the government tabled the insurance reforms bill in the Rajya Sabha aiming increasing the cap on FDI in private companies in the sector to 49% from existing 26%.
The minimum investment limit for health insurance companies is proposed to be fixed at Rs50 crore. At present, the companies entering the insurance business -- life or general insurance -- are required to have a minimum paid-up capital of Rs100 crore.
The move to lower the investment limit is expected to encourage companies with less capital to launch health insurance business and increase the penetration of this important segment.

Source: Home - Livemint.com | 17 May 2009 | 9:38 am

Markets set to surge on election results

MUMBAI (Reuters) - The Indian stock market looks set to surge on Monday on expectations the clear election victory of the ruling coalition would lead to a strong and stable government that would accelerate the pace of economic reform.

Source: Reuters: Money News | 17 May 2009 | 9:37 am

India Inc has wish list ready for next government

Tabling a regular national budget will top the economic agenda of the next government, with India Inc hoping for fair doses of policy reform since the ghost of Left support - the main hurdle to change - has finally been stamped out by the electoral verdict.
Source: IndiaeNews.com: Business News | 17 May 2009 | 9:31 am

Group lines up Iraq Kurdistan gas for Europe

SHARJAH, United Arab Emirates (Reuters) - Two European and two UAE companies said on Sunday they had formed a consortium to pump enough gas from Iraq's Kurdistan region to kick-start the Nabucco pipeline project to supply Europe.

Source: Reuters: Money News | 17 May 2009 | 9:29 am

Sri Lanka’s long war in bloody final climax

Colombo: Tamil Tiger rebels launched suicide attacks against Sri Lankan troops fighting on Sunday to deliver a death blow to the separatists after the president declared victory in Asia’s longest modern war, the military said.
President Mahinda Rajapaksa returned to the country early on Sunday, the day after he said the Liberation Tigers of Tamil Eelam (LTTE) had been defeated militarily in the 25-year civil war, even as combat still raged in the island’s northeast.
The military said it had rescued all the civilians being held by the LTTE as human shields, removing the last barrier to unleashing overwhelming firepower on the well-armed LTTE.
“All civilians from Vellimullivaikal have been rescued. The troops are still fighting the LTTE. Over 50,000 have been rescued since Thursday,” military spokesman Brigadier Udaya Nanayakkara said.
The LTTE, founded on a culture of suicide before surrender, showed no sign of giving up in the face of an overwhelming military onslaught that has given no quarter in a relentless offensive nearing its third year.
Troops killed at least 70 Tiger fighters masquerading as civilians who tried to cross the Nanthikadal lagoon, on the western side of the battlezone, in six boats.
Blasts rocked the remaining rebel-held area, now measuring barely a square kilometre, the military said.
“Suicide explosions are taking place. Suicide cadres are coming in front of troops in the frontline and exploding themselves,” Nanayakkara said.
Government forces on Saturday took control of the entire island’s coast for the first time since the war broke out in 1983, cutting off any chance of escape for a militant group whose conventional defeat has been a foregone conclusion for months.
Rumours swirled about the fate of Tiger founder-leader Vellupillai Prabhakaran and other senior leaders after a massive explosion was heard inside a bunker. Prabhakaran has in the past vowed not to be taken alive.
Nearly 37,000 people fled to army-held areas on Saturday, bringing the total since Thursday to more than 50,000. Before the exodus started, the United Nations had estimated there were 50,000-100,000 there.
Pro-rebel web site www.TamilNet.com reported that thousands of wounded people had been left to die after heavy weapons barrages, but it gave no sources.
“There has been no pause from continued cannon and heavy mortar fire,” TamilNet said.
Getting an independent picture of events inside the war zone is normally a difficult task, given both sides have repeatedly distorted accounts to suit their side of the story and outside observers are generally barred from it.
The Tigers, whose fighters are said to wear cyanide capsules to be taken in case of capture, this week again refused to surrender or free civilians, while the government rejected calls to pause its assault to protect civilians.
Each side accuses the other of killing civilians, and diplomats say there is evidence both have done so. The UN rights chief on Friday said she backed an inquiry into potential war crimes and humanitarian violations by both sides.
A mounting wave of diplomatic pressure from the United States, Britain, France and the United Nations last week appeared to come too late to stop the final fight.
UN Secretary-General Ban Ki-moon’s chief of staff, Vijay Nambiar, was due to meet government officials on Sunday to try to broker a negotiated end, a prospect seen as unlikely.
Rajapaksa, who was in Jordan on an official visit, landed in Sri Lanka early on Sunday and kissed the ground after he got out of the airplane, state TV showed.
Presidential officials speaking on condition of anonymity said he was due to make the formal declaration of victory in a nationally televised address either late on Sunday or Monday.
The date was then expected to be declared National Liberation Day, to be celebrated annually thereafter, they said.
The Tigers have answered earlier battlefield losses with suicide bombings in the capital, Colombo. Their widespread use of assassinations and suicide blasts has prompted the United States, European Union and India to class them as terrorists.
Prabhakaran began his fight for a separate state for Sri Lanka’s minority Tamils in the early 1970s, and it erupted into full-scale civil war in 1983.
Tamils complain of marginalisation at the hands of successive governments led by the Sinhalese majority, which came to power at independence in 1948 and took the favoured position the Tamils had enjoyed under the British colonial government.

Source: LatestNews-Home - Livemint.com | 17 May 2009 | 9:29 am

Export revival key challenge for new commerce minister

New Delhi: The key challenge for the new commerce minister will be to ensure that Indian products become competitive in the global market, where merchandise demand has squeezed in the past six months, resulting in exports slipping into negative territory.
Exports, which contribute 17% in the country’s GDP, have seen a sharp decline since October 2008-09 with recession in major global markets, mainly the US and Europe.
Federation of Indian Export Organisations (FIEO) president A. Sakthivel sees hope in the next few months. “Of late, orders have started trickling and the situation is likely to improve in the next quarter,” he said.
It was due to an impressive growth rate of over 30% in the first six months of the previous year that exports managed to close the last fiscal with a modest expansion of 3.4%.
However, the second half saw monthly contraction right up to 33%. The position did not improve in the opening months of the current fiscal and millions of jobs have been lost, according to estimates of the Federation of Indian Export Organisations.

Source: LatestNews-Home - Livemint.com | 17 May 2009 | 9:20 am

Cong, UPA allies to meet and discuss govt formation

New Delhi: A meeting of Congress and other UPA allies will take place soon to chalk out a strategy for government formation at the Centre.
A meeting of the Congress Parliamentary Party (CPP) will also be taking place in “a day or two” to elect the new party president and CPP leader.
“In a day or two, CPP meeting will take place as some formalities have to be completed. CPP’s President and leader have to be elected. Congress party’s leaders in Lok Sabha and Rajya Sabha have also to be decided,” party’s media department in-charge Janardan Dwivedi told reporters on Sunday.
He was speaking after attending a thanks giving function at the party’s ‘war-room´ here. Dwivedi said the party will take steps one by one towards forming the government.
To a question which parties’ support UPA would like to seek, Dwivedi said, “All these issues will be discussed later on. First, we will hold a meeting with UPA allies and only then it will be decided whose support has to be taken.
“All these things (about taking support of other parties) will be decided after the meeting with our old allies...with those who were with us earlier. We will first discuss the issue with them,” Dwivedi said.
Party sources said that the meeting with UPA allies could take place any time after the Congress Working Committee meeting concludes today.
UPA would require to submit the list of the supporting parties and their numbers to the President along with the name of the new CPP leader for forming the government.
It is still not clear whether the LJP chief Ram Vilas Paswan, who has lost from his Hajipur seat in Bihar, and RJD chief Lalu Prasad, who are still ministers in the UPA government, will be invited for the UPA meeting or not.
Parties of both the leaders have contested out of UPA in this election.
Paswan reached the capital last night while Prasad will be reaching here by the afternoon. Congress leaders have so far been evading to name the allies who would be invited in the meeting.

Source: Home - Livemint.com | 17 May 2009 | 9:13 am

Considered a novice two years ago, Rahul turns the tide in UP - Business Standard


BBC News
Considered a novice two years ago, Rahul turns the tide in UP
Business Standard
PTI / Lucknow May 17, 2009, 14:13 IST Taken as a novice just over two years ago, Congress general secretary Rahul Gandhi has turned the tide for his party in the most politically crucial state of Uttar Pradesh by bringing it at par with the two major ...
Montek for FM, Chidambaram fine as HM, says India Inc. Hindu
Congress to pick allies after election win Reuters India
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Source: Google News India - Business | 17 May 2009 | 8:53 am

New govt must focus on plans to sustain 9% GDP growth: Hinduja

Noted NRI entrepreneur Srichand P Hinduja has suggested a series of measures, including short and long-term, to provide investment opportunities of at least $ 1 trillion to sustain an economic growth of minimum 9 % despite the global slowdown.
Source: India Business News | Business News - Times of India | 17 May 2009 | 8:42 am

Montek for FM, Chidambaram fine as home minister: India Inc

Montek Singh Ahluwalia is the favourite of Indian industry to become finance minister and it wished for P Chidambaram to stay as home minister, while seeking a Cabinet berth for Rahul Gandhi.
Source: India Business News | Business News - Times of India | 17 May 2009 | 8:40 am

INTERVIEW - More stimulus to lift growth - Ashwani Kumar

NEW DELHI (Reuters) - India is set to announce fresh measures to boost job creation and the economy, and will push ahead with reforms after the Congress-led coalition's election victory, Minister of State for Industry Ashwani Kumar said on Sunday.

Source: Reuters: Money News | 17 May 2009 | 8:36 am

Corporate honchos want Montek for FM

New Delhi: Montek Singh Ahluwalia is the favourite of Indian industry to become finance minister and it wished for P Chidambaram to stay as home minister, while seeking a Cabinet berth for Rahul Gandhi.
Industry captains were, however, not clear what role Rahul should play in the next Cabinet.
Capital market expert Prithvi Haldea said the finance ministry should go to Montek Singh Ahluwalia and Chidambaram should continue as home minister. Real estate leader DLF clearly favoured Montek to move to North Block on Raisina Hill that houses the finance ministry.
However, the views are split when it came to sectoral representatives with most of the players giving their wishlist without wanting to be named.
A large corporate house wanted Murli Deora to be back as the petroleum minister, or to be replaced by his son Milind. Kamal Nath also found favour for a second term as the commerce and industry minister, although a section felt that Jairam Ramesh could be given the charge.
For telecom ministry, CDMA operators favoured DMK leader A Raja to continue, while GSM lobby wanted the Congress to keep this portfolio with itself, so that it can go ahead with reform process without any hindrances.
UN official-turned-politician Shashi Tharoor, who is making debut in the Lok Sabha shortly after losing the race for the UN Secretary Generalship, also figured in the wish- list of industrialists for a place in the Union Cabinet.
“We hope to see Rahul Gandhi in the Cabinet,” Ispat Industries’ vice vhairman and managing director Vinod Mittal said, adding that age was not a criteria to be a dynamic leader and minister.
A cross section of investors, industrialists and analysts also felt that younger politicians, including Jitin Prasad, Sachin Pilot, Naveen Jindal and Jyotiraditya Scindia, should be given ministerial responsibilities.
Many of them felt that P Chidambaram should be given the responsibility of the home ministry, but few rooted for him to get back to the finance minsitry.
Brokerage firm SMC Capital’s Equity head Jaganaddham Thunuguntla said: “It will be good to have him (Rahul) in the Cabinet to give him exposure.”
Essar Steel Business Group CEO J Mehra said, “Congress has many dynamic options and Montek Singh Ahluwalia is one of them (for the Finance Ministry).” He, however, quickly added that it would not be wise at this point of time to name possible ministers without knowing who all are in the fray.
Taurus Mutual Fund’s managing director R K Gupta said the UPA has much better scope for change this time as now it would not have to seek help from the Left parties for forming the government.
“I believe finance portfolio might go to Montek Singh Ahluwalia as he is a close friend of the PM. Kamal Nath might retain the commerce ministry, but Shashi Tharoor, who has knowledge of commerce and international affairs cannot be ruled out as a potential candidate,“ Gupta said.
“UPA is likely to retain Chidambaram as the Home Minister,” he added.
Gupta further noted that Dayanidhi Maran could be brought back to the telecom and IT ministry, while Pranab Mukherjee could retain external affairs ministry.
With Ram Vilas Paswan losing the elections, the fertiliser, steel and pharmaceutical portfolios could go to a new member, possibly to a non-Congress ally in the UPA, he said. Some others felt that the portfolio could be split to give Jitin Prasada the charge of steel.
A senior official at GSM operators association COAI said that association was ready to work with any minister from any party under the UPA fold.
Many corporates did not wish to be named, but said that the ministries should be given as per the capabilities of the potential ministers.

Source: Home - Livemint.com | 17 May 2009 | 8:36 am

Jeffery Archer finds polls exciting, sets next story in Mumbai

New Delhi: India holds great fascination for British novelist Lord Jeffery Archer who finds the country’s mammoth electoral process fascinating and has even set a story of his forthcoming book in Mumbai.
“I wouldn’t normally follow in great depth Indian politics but for the past one week I have been reading a lot in the newspapers and it is fascinating,” the British novelist, who is currently on a five-city tour in the country to promote his latest book “Paths of Glory”, said.
The ex-British politician says, “It is very exciting to see the very bustling, thriving middle class vote their leaders. I am glad that the people have decided on a stable and secular government.”
The 69-year-old author who began writing at the age of 34 had served five years in the House of Commons and 14 years in the House of Lords.
Archer’s next book “And Thereby hangs a tale,” a collection of short stories includes a tale of romance between two chief protagonists who flit between Mumbai and Delhi.
“I am taking courage by the hand here. ...I have included a story given to me by two people (in India.) I think I got a pretty magic story,” Archer disclosed adding that he would probably title it “Caste Aside” or “Caste Off.”
The novelist cum playwright who has adapted “Paths of Glory” for the silver screen says he is now scouting for a producer.
“For Mallory: Walking on the ramp.” I am ready to go. We have finished the screenplay and Bruce Beresford, whose film Driving Miss Daisy’ won an Oscar will direct it, he says.
With his tongue-in-cheek humour the author had previously told fans that he aimed to become transport minister in India.
“Here you can find both cars and people on the road. I wanted to become PM (in UK) and failed. Now I want to be transport minister and I will make all bicycles and rickshaws to travel in one lane and lorries in lane two, all cars in lane three and won’t let people cross road as they do now.”
Archer, who still writes with hand using a felt tipped pen and a roller ball expresses his love for R.K. Narayanan.
“I am a complete devoted fan of R.K. Narayanan. He has taught me to look at the real India. When I turn a page of his book he leads me into the dirty shanty, into the narrow alleys, into a tax collector’s home...”, says the “Englishman who loves coming back again and again to India.”
The novelist whose “Kane & Abel,” published 30 years ago is still found on bestseller lists plans to release a shorter version of the novel on 3 October.
“In India over 50 million people have read the book, which I consider to be the breakthrough in my life. In the new version the plot will be the same but will be around 7, 200 words shorter,” he says.
The book’s adaptation “False Impression” has also been picked up for a film. “I have received an offer and am in the process of negotiations. We haven’t signed as yet,” says Archer.

Source: LatestNews-Home - Livemint.com | 17 May 2009 | 8:14 am

Each Infosys employee worth Rs 97 lakh

Each employee at IT bellwether Infosys Technologies is worth as much as Rs 97 lakh, mainly based on the potential value of their future earnings for the company.
Source: India Business News | Business News - Times of India | 17 May 2009 | 8:09 am

UPA may pave way for PSU disinvestments

New Delhi: With the UPA set to form a government without the support of the Left and other smaller parties which have fixed ideology against divestment, the PSU firms are expected to tap the stock market route in an aggressive way for raising resources.
The Congress, which has emerged stronger, had committed in its election manifesto to giving more shareholding to the public through divestment of PSUs’ shares with the government retaining a majority stake.
As stock markets are expected to build on the strength it got in last few weeks, the PSUs would get a chance to raise resources from this route even as the Left parties are out of the way to block these reforms.
“It is an opportunity for CPSEs to go to the stock market. It will also test the market and improve the corporate governance of CPSEs,” chairman and managing director of National Buildings Construction Corporation Arup Roy Choudhury said.
Roy Choudhury, who also heads PSUs body the Standing Conference of Public Enterprises (SCOPE), said that the decision to enter the capital market would depend on an individual public sector unit.
Ficci President Harsh Pati Singhania felt that with a pick up in the economy, the CPSE shares are expected to get a good response from investors.
“Float these (CPSEs) shares in the market ... they will get a good response particularly when we are hoping that there is going to be an upturn in the economy,” Singhania said.
The UPA government could not pursue equity sale in PSUs because of opposition from the Left parties which supported it for over four years. Later, conditions in the market deteriorated deterring the PSUs to tap this resource.
There are 242 public sector units in the country employing 15.7 lakh people. The number of profit-making PSUs was 159 in 2007-08 while loss-making units numbered 54.

Source: Home - Livemint.com | 17 May 2009 | 7:51 am

Kamal Nath cautious on financial reforms

New Delhi: India needs to be cautious about financial sector reforms and focus on reviving the economy through domestic demand, the country’s trade minister said on Sunday, after the Congress-led coalition swept to power in a general election.
Prospects for extensive economic reforms have brightened after the Congress Party won the election with a decisive mandate.
But trade minister Kamal Nath struck a note of caution in the backdrop of the global financial crisis.
“We will have to be cautious about financial sector reforms. Some of the icons of the financial world who were advocating financial reforms have closed shop. We have to be cautious this time,” Kamal Nath told Reuters in a telephone interview.
“In the developed world, governments are giving money to the banks whereas in India the banks are giving money to the government,” Nath said, referring to the Indian banking industry which has been largely unscathed by the global financial crisis.
Plans to raise the foreign investment limit in the insurance sector to 49% from the present 26% and opening up the pension sector to foreign participation have been pending for approval.
The government had introduced legislations to enact these reforms in 2005 but met stiff opposition from communist parties, who provided the coalition government with a majority until withdrawing support last year.
The new government will be largely free from the pressures of regional allies and analysts expect it to push some key reforms to revive growth in Asia’s third largest economy.
“With the global economy in recession and the western economies in disarray, India has to focus on a domestic demand and domestic investment driven economy.”
India’s economy has slowed sharply and is estimated to have grown 6.5% in the just ended 2008-09 fiscal year, its slowest pace in six years as the global slowdown hit harder than expected.
Nath said it was important to conclude trade talks to revive the global economy, and India was willing to play a leadership role.
“We believe that it is even more important to conclude the Doha round as one of the measures to extricate the global economy from going into a tailspin and India is willing to play a leadership role in this,” Nath said.
India is a leading negotiator for emerging nations in the struggling Doha round of talks, and its efforts to protect poor farmers have been one of the stumbling blocks to an agreement.
US trade representative Ron Kirk has held talks with WTO officials at Geneva, and has urged emerging nations such as China, India, Brazil and South Africa to do more to open their markets to secure a new global trade deal.
Last month, WTO director-general Pascal Lamy said in Washington that a renewed push to finish the Doha trade round could not begin until the US was ready to take part.

Source: Home - Livemint.com | 17 May 2009 | 7:43 am

Nasscom wants the new govt to extend tax sops

New Delhi: Software industry association Nasscom wants the new government to maintain the growth momentum in the IT industry through extension of tax benefits, removal of inequities and multiplicity of taxes like FBT.
Nasscom chairman Pramod Bhasin said that specific policy initiatives like extension of tax benefits, specially for SMEs, and removal of inequities and multiplicity of taxes like fringe benefit tax (FBT) and service tax need to be pushed for.
Bhasin also called for an overall uniform policy environment to enhance India’s competitiveness and to attract foreign investment.
He said in the current global economic environment, it is important that the country has a stable and progressive political environment that can focus on long-term policies for sustainable development of the country.
Nasscom has been seeking extension of software revenue tax benefits for a few more years. The benefits, ending in March 2010, would hit the earnings of companies, with the tax outgo raising.
In 2005, the government had imposed FBT, levying on prequisites provided to their employees. IT industry had opposed the move as they offer their employees a lot of such benefits.
Bhasin said the new government should also lay stress on computer penetration and on Internet access for masses.
“The government should initiate time-bound programmes for extending broadband to all villages as mentioned in the Congress manifesto, so as to provide Internet access to all citizens, and back this up with steps to increase computer penetration,” he said.
He added that a comprehensive nation-wide security programme should be taken up among the top three priorities of the government.
Bhasin stressed the need for developing public-private partnerships to accelerate implementation of the already approved e-governance programmes and increasing government IT budgets to provide a strong stimulus to the IT-BPO industry.
Nasscom also expected the government to leverage international relations and build perspectives with key developed nations for continued bilateral trade development with no deviations on protectionist moves through visas and taxation.
Bhasin said efforts should be made to continue and expand infrastructure development programmes across the country and build integrated IT-BPO townships and provide fiscal incentives for growth of the IT-BPO industry in tier II tier III towns.
Hardware, training and research and development services sector representative body Manufacturers Association of Information Technology (MAIT) also expressed similar views.
MAIT said it expects the government to increase the number of programmes in the mission mode projects.
“The focus on including IT in education, e-Governance programmes, broadband, WiMax and 3G are some areas that the government should look into for promoting growth in the industry,” MAIT executive director Vinne Mehta said.

Source: Home - Livemint.com | 17 May 2009 | 7:33 am

SpiceJet CEO to strive for professionalism

New Delhi: Enthused by a 12% growth in traffic in contrast to a decline in the aviation industry, the new CEO of SpiceJet Sanjay Aggarwal has said he would transform the airline from a casual business entity to a professionally-run company within a year.
“I have no benchmark in India...when I joined I found the attitude was ‘Chalta hai´ (casual). This is dangerous as there was no recognition for good work and no punishment for lapses...I will change it,” he said.
Asked, who he would like the Airline to be compared with and the time frame for the achievement, Aggarwal said, “I think Southwest Airlines (America) is the best in the business. I would like SpiceJet to be in that league... hopefully by our fifth anniversary i.e. May 2010.”
Claiming that the airline, where he took charge as CEO in December as a representative of single-largest investor Wilbur Ross, was financially on a strong footing and that it was a debt free company, Aggarwal said that the target would be to grow organically by connecting more cities or routes for which various options are being explored.
Spicejet would also keep its eyes and options open for any possible acquisition, he said but added that such a possibility could come up only in the next 8-10 months.
“We have Rothschild as our business partner...they always advise us,” he said when asked if they have assigned advisors and hunters for exploring the aviation market where the downturn could give them good properties at cheap prices.
The carrier’s market share has gone up to around 12% lately, compared to little over 10% earlier.

Source: Home - Livemint.com | 17 May 2009 | 7:28 am

Top 10 cos lost Rs 2,600cr past week; ONGC worst victim

The 10 most valued firms lost Rs2,646 crore in their valuation past week, taking the total market-cap of the elite club to Rs1,286,511 crore at the end of trade.
Source: India Business News | Business News - Times of India | 17 May 2009 | 7:24 am

SpiceJet to be transformed into a professional carrier: CEO

The new CEO of SpiceJet Sanjay Aggarwal has said he would transform the airline from a casual business entity to a professionally-run company within a year.
Source: India Business News | Business News - Times of India | 17 May 2009 | 7:17 am

Futures trading in wheat may start next week - Hindu


Newstrack India
Futures trading in wheat may start next week
Hindu
New Delhi (PTI): Futures trading in wheat is likely to resume next week on the three national commodity exchanges -- NCDEX, MCX and NMCE -- after nearly two-and-half years of ban which ended last week.
Govt lifts ban on futures trading in wheat Hindu Business Line
Wheat futures to be relaunched Business Standard
Reuters India - TopNews - Bloomberg - domain-B
all 19 news articles

Source: Google News India - Business | 17 May 2009 | 7:12 am

Piramal Life Sciences to invest Rs 200 cr in R&D

Piramal Life Sciences is investing Rs 100 crore every year in R&D and will invest Rs 200 crore in the next two year's period.
Source: India Business News | Business News - Times of India | 17 May 2009 | 7:09 am

UK panel blames bonus-driven pay practices for banking crisis

The UK Treasury Committee report said the banking crisis has exposed serious flaws in remuneration pattern in the sector.
Source: Daily News & Analysis: Money News | 17 May 2009 | 7:06 am

New govt faces huge task of structural, financial sector reforms

With the country struggling through slowdown, the new UPA government will face the mammoth task of carrying out further structural and financial sector reforms.
Source: Daily News & Analysis: Money News | 17 May 2009 | 7:01 am

Each Infosys employee worth Rs 97 lakh!

Each employee at IT bellwether Infosys Technologies is worth as much as Rs 97 lakh, mainly based on the potential value of their future earnings for the company.
Source: Daily News & Analysis: Money News | 17 May 2009 | 7:00 am

NSE largest exchange globally in stock futures segment: WFE

The National Stock Exchange has become the world's largest bourse in terms of stock futures contract, with over 6 crore contracts getting exchanged so far this year.
Source: Daily News & Analysis: Money News | 17 May 2009 | 6:40 am

Top firms lost Rs2,600 cr past week; ONGC worst victim

Mumbai: The country’s 10 most valued firms lost over Rs2,600 crore in their market capitalisation past week, with state-run oil firm Oil and Natural Gas Corporation being the biggest loser in the coveted list.
During the last week, ONGC’s market-cap came down by Rs14,961 crore, taking its total valuation to Rs1,73,879 crore at the end of the week. The firm’s shares fell nearly 8% on the Bombay Stock Exchange till the end of Friday’s trade. The oil behemoth had a market valuation of Rs1,88,841 crore in the previous week.
The 10 most valued firms lost Rs2,646 crore in their valuation past week, taking the total market-cap of the elite club to Rs1,286,511 crore at the end of trade on Friday.
Last week, valuation of the club, comprising four private and six public sector entities, was at Rs1,289,157 crore.
Corporate behemoth Reliance Industries has maintained its position as the most valued company in th elite list and added Rs8,066 crore to its market-cap, taking its valuation to Rs3,06,616 crore. The valuation of the Mukesh Ambani-led firm was at Rs2,98,550 crore a week ago.
However, amid mixed broader market, six firms - ONGC, SBI NTPC, NMDC, MMTC and ITC - lost a combined Rs20,172 crore in the week.
At the end of Friday’s trade, power utility NTPC saw an erosion of Rs1,814 crore from its valuation to Rs1,54,685 crore and NMDC lost Rs84.02 crore.
Also, MMTC lost Rs1,663 crore, State Bank of India Rs819 crore and FMCG major ITC Rs830 crore.
Besides, telecom services provider Bharti Airtel gained Rs6,156 crore and IT bellwether Infosys Technologies added Rs374 crore in its market valuation during the week.
The club witnessed power equipment supplier Bhel moving a notch to eight position by adding Rs2,930 crore, replacing SBI, which lost Rs 819 crore in the last week.
Apart from the 10 most valued firms, two private sector lenders - ICICI Bank and HDFC Bank - added Rs5,995 crore and Rs1,763 crore respectively to their valuation past week.
ICICI Bank’s and HDFC Bank’s market-cap stood at Rs63,951 crore and Rs50,405 crore, respectively.
RIL, the numero-uno in the list, is followed by ONGC (Rs1,73,879 crore), NTPC (Rs1,54,685 crore), Bharti Airtel (Rs1,51,827 crore), Infosys (Rs91,325 crore), NMDC (Rs87,065 crore), MMTC (Rs83,962 crore), Bhel (Rs83,581 crore), SBI (Rs83,312 crore), ITC (Rs70,260 crore).

Source: Home - Livemint.com | 17 May 2009 | 6:40 am

Ranbaxy looks to rebuild its US business

Faced with massive losses coupled with regulatory hurdles in the American market, Ranbaxy Laboratories Ltd has chalked out plans to revamp its US business.
Source: Daily News & Analysis: Money News | 17 May 2009 | 6:38 am

Australia to build world's largest solar energy plant - PM

SYDNEY (Reuters) - Australia plans to build the world's largest solar power station with an output of 1000 megawatts in a A$1.4 billion (US$1.05 billion) investment, Prime Minister Kevin Rudd said on Sunday.

Source: Reuters: Money News | 17 May 2009 | 6:30 am

INTERVIEW - Kamal Nath cautious on financial reforms

NEW DELHI (Reuters) - India needs to be cautious about financial sector reforms and focus on reviving the economy through domestic demand, the country's trade minister said on Sunday, after the Congress-led coalition swept to power in a general election.

Source: Reuters: Money News | 17 May 2009 | 6:25 am

South Korea tries recharging road to power vehicles

SEOUL (Reuters) - South Korea's top technology university has developed a plan to power electric cars through recharging strips embedded in roadways that use a technology to transfer energy found in some electric toothbrushes.

Source: Reuters: Money News | 17 May 2009 | 3:59 am

Lloyds chairman Blank to quit - newspaper

LONDON (Reuters) - Victor Blank will stand down as chairman of Lloyds Banking Group and may announce his decision as soon as Sunday, the Telegraph newspaper said in an article posted on its website on Saturday.

Source: Reuters: Money News | 17 May 2009 | 3:53 am

GM, Canadian union still in concession talks

TORONTO (Reuters) - The Canadian Autoworkers union is still in talks with embattled General Motors Corp on a deal that will cut the automaker's costs, but a number of key issues remain unresolved, the union said on Saturday.

Source: Reuters: Money News | 17 May 2009 | 3:31 am

Stable UPA government to support realty prices: Developers!

The return of the UPA government in to power will help attract FII money back to the domestic market and arrest steep fall in realty prices, real estate developers today said.
Source: Zee News : Business | 17 May 2009 | 12:16 am

There will be more stress on economic reforms: PMEAC!

Observing that the mandate in favour of the Congress and Manmohan Singh is for a "stable and good government", the PMEAC Chairman, Suresh Tendulkar, on Saturday said the new dispensation will lay more stress on economic reforms.
Source: Zee News : Business | 17 May 2009 | 12:16 am

Industry suggests 100-day programme for new govt!

Apex industry associations have welcomed the mandate in favour of the ruling UPA and suggested a 100-day programme of action.
Source: Zee News : Business | 17 May 2009 | 12:16 am

UPA return to improve biz climate: Economists!

The return of the UPA government to power will improve business sentiment and expedite recovery of the economy, reeling under the impact of the global financial meltdown, feel economists.
Source: Zee News : Business | 17 May 2009 | 12:16 am

Sensex expected to rise on LS poll result!

Cheering the people`s verdict for a pro-reform government, market participants on Saturday said that the bourses would welcome the poll results with a rally on Monday of more than 543 points - the number of seats in the Lok Sabha.
Source: Zee News : Business | 17 May 2009 | 12:16 am

Oracle Financial FY`09 net up 77% at Rs 736.54 cr!

Oracle Financial Services Software on Saturday said its net profit for the year ended March 31, 2009, rose by 77.22 per cent to Rs 736.54 crore over the last year.
Source: Zee News : Business | 17 May 2009 | 12:16 am

GM, Chrysler to drop 1,900 dealers by end of 2010!

A decision by troubled automaker General Motors to drop 20 percent of its dealers is due in part to an oversized network that created stiff internal competition and gave shoppers too much leverage to talk down sticker prices.
Source: Zee News : Business | 17 May 2009 | 12:16 am

India Inc welcomes UPA`s win!

With the Congress inching towards a victory in the 2009 parliamentary elections, India Inc on Saturday welcomed the people`s verdict hoping for new set of reforms from the PM-in waiting Manmohan Singh.
Source: Zee News : Business | 17 May 2009 | 12:16 am

FICCI happy with LS poll verdict!

Indian industry has applauded the people`s mandate that brought the Congress-led United Progressive Alliance (UPA) government back to power.
Source: Zee News : Business | 17 May 2009 | 12:16 am

Silent majority has spoken

The Congress has once again surprised everybody, done much better than in 2004, and the UPA is all set to form a stable government. At this time, a statement made by a political analyst in Uttar Pradesh comes to mind: “Is
Source: Business Line - Home Page | 17 May 2009 | 12:00 am

India Inc wants Govt to address fiscal deficit, focus on reforms

Chennai/New Delhi, May 16 Before the elections, the Indian industry had prayed for only one kind of result – let any one party win big, let there not be a badly fractured verdict leading to Government that cannot move in any
Source: Business Line - Home Page | 17 May 2009 | 12:00 am

The first numbers


Source: Business Line - Home Page | 17 May 2009 | 12:00 am

Markets may see big gains on Monday, say players

Mumbai, May 16 A decisive mandate for the UPA Government – led by Congress returning in a position of unexpected strength – could send Indian equities soaring in the short term, said
Source: Business Line - Home Page | 17 May 2009 | 12:00 am

Will it be the end of ‘Fourth Front’?

New Delhi: The verdict of Elections 2009 has demolished the very premise of the formation of the Fourth Front. When the three constituents of the Front — Mr Mulayam Singh Yadav-led Samajwadi Party (SP), Mr Lalu Prasad-headed
Source: Business Line - Home Page | 17 May 2009 | 12:00 am

UPA strides into a second innings

New Delhi, May 16 The people of India have decided that the Congress-led United Progressive Alliance (UPA) should hold the reins of the Government for another term.
Source: Business Line - Home Page | 17 May 2009 | 12:00 am

Worst setback for Left Front in W. Bengal

Kolkata: The Lok Sabha election result in West Bengal has taken everyone by surprise. The ruling Communist Party of India (Marxist)-led Left Front suffered its worst setback ever winning 15 out of 42 seats against 35 in
Source: Business Line - Home Page | 17 May 2009 | 12:00 am

Weekly News Round Up

A latest survey of the RBI indicates that the real GDP growth for the current fiscal will be 5.7 per cent, lower than the central bank's 6 per cent projection in its Annual Policy Statement for 2009-10. In sync with the lower GDP estimate, the
Source: Business Line - Home Page | 17 May 2009 | 12:00 am

Naveen’s hat-trick in Orissa

Chennai: The Orissa Chief Minister Mr Naveen Patnaik’s gamble to part ways with the BJP on the eve of the 15th Lok Sabha polls, when his party also faced elections for the State Assembly, has paid off. Apart from a rich haul
Source: Business Line - Home Page | 17 May 2009 | 12:00 am

MSEDCL ready to handle forthcoming monsoon - Times of India


domain-B
MSEDCL ready to handle forthcoming monsoon
Times of India
THANE: Power cuts are synonymous with rains. But this year, the Maharashtra State Electricity Distribution Co Ltd (MSEDCL) claims that it is all set to tackle the upcoming monsoons.
GTL bags Rs 324-cr Maharashtra electricity deal Moneycontrol.com
GTL bags orders worth Rs 324 cr from MSEDCL Hindu
domain-B - Equity Bulls - Times of India - Times of India
all 20 news articles

Source: Google News India - Business | 16 May 2009 | 11:59 pm

UPA win could signal big reforms

When the UPA came to office in 2004, there were great expectations from the dream team' of Manmohan Singh, P Chidambaram and Montek Singh Ahluwalia.
Source: India Business News | Business News - Times of India | 16 May 2009 | 10:46 pm

Stronger FII inflows to boost market

As red flags swept parts of India, there was bloodbath on Dalal Street. The investors' fear that a powerful Left will call the shots at the Centre led to the sensex recording one of its biggest plunges.
Source: India Business News | Business News - Times of India | 16 May 2009 | 10:45 pm

Industry bets on faster reforms - Calcutta Telegraph


Thaindian.com
Industry bets on faster reforms
Calcutta Telegraph
New Delhi, May 16: Corporate India has already drawn up its wish list for the new UPA-led government that will be formed at the Centre.
Industry welcomes verdict for development Hindu
Mandate for stability; govt must work for eco revival: Mallya Business Standard
Press Trust of India - The Statesman - Hindustan Times
all 41 news articles

Source: Google News India - Business | 16 May 2009 | 10:28 pm

The new taxman may spare your pocket

With the reforms 'left' pending during its last tenure, tax experts feel the re-elected UPA govt would focus elsewhere.
Source: Daily News & Analysis: Money News | 16 May 2009 | 10:21 pm

'Verdict will add momentum to the India appeal'

Says Macquarie Securities economist Rajeev Malik.
Source: Daily News & Analysis: Money News | 16 May 2009 | 10:18 pm

Insurance reforms on frontburner

Insurance reforms seem nearer to reality now that the UPA is close to garnering a majority and Left clearly out of the picture.
Source: Daily News & Analysis: Money News | 16 May 2009 | 10:09 pm

Magnificent Monday awaits the markets

The UPA's thumping return has brought much-needed supplies for the bulls who were running out of firepower.
Source: Daily News & Analysis: Money News | 16 May 2009 | 10:07 pm

Time to go full-tilt on reforms

Economists are at the clear mandate for the Congress-led ruling UPA because it means the govt can afford to ignore the Left parties.
Source: Daily News & Analysis: Money News | 16 May 2009 | 10:05 pm

What now, Dr Singh?

New Delhi: The United Progressive Alliance, or UPA, finds itself in a position in which no Indian government since the Narasimha Rao one of 1999 has been—a position from which it can continue the policies it embarked upon in 2004.
Second term:This time, Singh may have a ‘better hand to deal with the economy’. Shahbaz Khan / PTI
Second term:This time, Singh may have a ‘better hand to deal with the economy’. Shahbaz Khan / PTI
Better still, it finds itself free of the restrictive influence of the Left Front, which prevented it from taking key economic decisions in the first four years of its rule. Even better, with enough seats in the Lok Sabha it doesn’t need to make as many compromises as coalition governments usually do.
Sure enough, executives were quick to emphasize the continuity bit. “The prospect of a stable government and continuity augurs well for business,” said Y.C. Deveshwar, chairman, ITC Ltd. “We look forward to this optimism driving the dream of double-digit growth rates...”
Elections 2009 | Click here to download eBook
And an economist said Prime Minister Manmohan Singh would have “a better hand to deal with the economy”. That would ensure continuity and stability, said N.R. Bhanumurthy, an associate professor at New Delhi’s Institute of Economic Growth. So, what will the UPA do in its second term?
Unlike last time, it doesn’t have a common minimum programme that serves as a statement of purpose. This time, there’s the manifesto. And a quick reading shows that it emphasizes continuity—interest relief to farmers with good credit history, a follow-up of sorts to the farm loan waiver programme, or introduction of the long-awaited goods and services tax, that will create a uniform tax code in India—and the kind of radical reforms that the market likes. One such is the promise of disinvestment (not privatization) of state-owned firms.
Mint presents the key tasks ahead for the next government:
Finance and economy
• Creating a new income-tax code simplifying the law and also codifying changes needed to accommodate higher incidence of cross-border transactions
• Finalizing the design of the goods and services tax and bringing about the required constitutional amendment
• Pushing the Bill to amend insurance laws and enhancing foreign direct investment in the business to 49% from 26%
• Approving the New Pension Scheme enabling quasi-judicial powers for the sector’s regulator
• Reintroducing the banking reforms Bill for private sector banks
• Launching a monthly measure of inflation
Industry and commerce
• Announcing the trade policy (an interim trade policy was announced in February)
• Approving free trade policies with South Korea and Association of Southeast Asian Nations
• Appointing a new commerce secretary
• Reviewing new foreign direct investment guidelines
• Passing required laws to get the competition commission up and running
Agriculture and labour
• Passing an Act on the creation of futures market regulator, the Forward Markets Commission
• Creating a warehousing regulator
• Finalizing the Resettlement and Rehabilitation Act
Power
• Reviewing slippages in more power generation capacity
• Expediting so-called ultra mega power projects of which only four out of nine planned are in the works
• Reviewing allocation of coal to power projects
• Driving investments in the transportation and distribution sectors
Oil sector
• Revising fuel prices or sharing the losses of government-owned oil marketing companies through a combination of oil bonds or upstream sharing
• Clarifying the scope of an income-tax holiday for seven consecutive years for natural gas production that will affect participatory interest in the eighth round of New Exploration Licensing Policy (Nelp-8)
Home affairs
• Finalizing staffing of National Investigation Agency and strengthening the new elite unit formed to tackle Naxalites
• Redrafting the Communal Violence Bill
• Managing a possible overflow of refugees from Sri Lanka
Railways
• Tying up funds with Asian Development Bank and the World Bank for Eastern Dedicated Freight Corridor
• Reviewing tariffs to beat a slowdown in container traffic
• Deciding the future of the locomotive factories in Bihar
Shipping and transport
• Rebidding projects for which only one bid was received
• Drafting the final version of the Shipping Trade Practices Bill to regulate service providers
• Increasing coordination with the Navy and the Coast Guard in light of enhanced security threats to ports across India
SMEs
• Getting the Reserve Bank of India to approve 15% quota for lending to the small and medium enterprises sector
Health and family welfare
• Introducing Bill for centralization of licensing authority for regulating healthcare and drugs
• Notifying changes to Drugs and Cosmetics Act, 1940, for tighten penalty for spurious drugs
Human resources
• Increasing public expenditure on education
• Implementing recommendations of the National Knowledge Commission
• Introducing Bill on foreign educational institutions
• Introducing Bill to regulate entry of private educational institutions
• Approving the Right to Education Bill, which aims to put every child between 6 and 14 in school
Telecom and IT
• Restarting the auction process for issuing so-called third generation, or 3G, licences
• Resolving the spectrum or airwaves policy and thereby address several related disputes

Source: Home - Livemint.com | 16 May 2009 | 7:51 pm

Fix your deposits - Business Standard


Thaindian.com
Fix your deposits
Business Standard
Bank deposits are losing their charm due to repeated rate cuts. Investors need to pick and choose. Since November 2008, repeated rate cuts by the Reserve Bank of India (RBI) have improved the liquidity situation substantially.
ICICI tweaks deposit rates Times of India
India's NTPC ties up $1.7 bln loan from SBI Reuters
Calcutta Telegraph - India Infoline.com - BreakingUpdate - Business Standard
all 79 news articles

Source: Google News India - Business | 16 May 2009 | 7:29 pm

Fresh stimulus expected in 100 days

The new Congress-led government is expected to announce a fresh economic stimulus during its first 100 days to pull the economy out of its present slowdown. Prime Minister Manmohan Singh had said during the election campaign that his government would come out with a stimulus within 100 days. He had added that he was in talks with the Reserve Bank of India (RBI) for an effective programme.
Source: Business Standard | Front Page Headlines | 16 May 2009 | 6:36 pm

Result is a game-changer: India Inc, market players

As the results started pouring, the mood in business circles turned euphoric. India Incs CEOs and leading market players ran out of adjectives to describe their collective sense of relief after the United Progressive Alliance managed a decisive majority in the Lok Sabha elections.
Source: Business Standard | Front Page Headlines | 16 May 2009 | 6:34 pm

Maruti Suzuki: Hold - Hindu Business Line


Fresh News
Maruti Suzuki: Hold
Hindu Business Line
With a focus on passenger cars, the company's top-line growth has improved, beating the automobile slowdown. The launch of Ritz may strengthen Maruti's position in the hatchback space.
The “five star” small car Business Standard
Buy Maruti Suzuki, target of Rs 944: PINC Research Moneycontrol.com
Khabrein.info - Wheels Unplugged - Indis'a Automobile Magazine - Reuters India - Moneycontrol.com
all 122 news articles

Source: Google News India - Business | 16 May 2009 | 6:33 pm

More Congress, less UPA

Manmohan Singh ready for second term; Advani quits; Mulayam out in the cold.
Source: Business Standard | Front Page Headlines | 16 May 2009 | 6:32 pm

Bangalore's youth want 'winners' to perform

With the Karnataka results out, the young voters of India's IT hub are impatient to see the winning candidates work for the overall development of the city.
Source: IndiaeNews.com: Business News | 16 May 2009 | 3:32 pm

UPA to continue with its economic reforms: Congress

Enthused by the poll win, the Congress party Saturday said that the United Progressive Alliance (UPA) will continue with its economic policies, but not at the cost of the public sector.
Source: IndiaeNews.com: Business News | 16 May 2009 | 3:02 pm

Insurers expects liberlisation of sector to be expedited - Hindu


Indian Express
Insurers expects liberlisation of sector to be expedited
Hindu
Mumbai (PTI): Having won a decisive mandate for the 15th Lok Sabha, the UPA government may raise the foreign direct investment cap in the insurance sector to 49 per cent from 26 per cent now, the insurance industry says.
Insurance reforms on frontburner Daily News & Analysis
'UPA's return will give push to financial sector reforms' Hindu
all 19 news articles

Source: Google News India - Business | 16 May 2009 | 2:37 pm

Ashok Leyland stutters but JNNURM bails it out

In FY09, Ashok Leyland\'s net profit fell 59% to Rs 190 crore but experts say this fall could have been worse if its bus business had not driven it to rescue.
Source: Moneycontrol Top Headlines | 16 May 2009 | 1:39 pm

BandraWorli Sea Link to open in June

After having delayed for years, Mumbai\'s new skyline, the cablestayed bridge sea link, is getting ready to open in June. The BandraWorli Sea Link, which was awarded to Hindustan Construction Company by the Maharashtra State Road Development Corporation in 2000, ran into various controversies over the years including writ petitions.
Source: Moneycontrol Top Headlines | 16 May 2009 | 1:34 pm

Custom board orders transfer of 100 senior staff

The central board of excise and customs (CBEC) has issued transfer orders to 100 officers of the level of commissioner of central excise and customs. Sources in the CBEC have told CNBCTV18 that the orders are a part of the annual general transfer and are administrative in nature.
Source: Moneycontrol Top Headlines | 16 May 2009 | 1:29 pm

India Inc upbeat as it sees stable government, push for reforms

India Inc, too, has given its verdict: It has applauded the people's mandate that seeks the return of the Congress-led UPA government, hoping for stability in governance and a major push to economic reforms.
Source: India Business News | Business News - Times of India | 16 May 2009 | 12:48 pm

Congress says to carry out extensive reforms

NEW DELHI (Reuters) - The Congress party will carry out extensive economic reforms, a spokesman said on Saturday, after the ruling party-led coalition's win in a general election.

Source: Reuters: Money News | 16 May 2009 | 12:37 pm

Maytas, lenders to discuss debt restructuring package

Infrastructure firm Maytas Infra has said it will likely hold a meeting with its bankers next week to discuss a corporate debt restructuring (CDR) package that was approved by the company board May 9.
Source: IndiaeNews.com: Business News | 16 May 2009 | 11:30 am

Congress to stress on economic reforms

The Prime Minister's Economic Advisory Council Chairman, Suresh Tendulkar, on Saturday said the new dispensation will lay more stress on economic reforms.
Source: India Business News | Business News - Times of India | 16 May 2009 | 11:25 am

India Inc upbeat as it sees stable government, push for reforms

India Inc, too, has given its verdict: It has applauded the people's mandate that seeks the return of the Congress-led United Progressive Alliance (UPA) government, hoping for stability in governance and a major push to economic reforms.
Source: IndiaeNews.com: Business News | 16 May 2009 | 11:01 am

GTL bags Rs 324cr Maharashtra electricity deal

GTL Ltd has entered the domain of distribution and transmission networks for power utilities. It has been awarded contracts worth Rs 324 crore from Maharashtra State Electricity Distribution Co Ltd (MSEDCL).
Source: Moneycontrol Top Headlines | 16 May 2009 | 10:33 am

BSNL opens GSM bids for 3 zones

Notwithstanding the concerns raised by the security agencies, Bharat Sanchar Nigam Ltd on Friday opened the financial bids submitted by Ericsson and Huawei for its 93 million line GSM contract.
Source: Moneycontrol Top Headlines | 16 May 2009 | 10:27 am

Tatas, MM, Maruti join hands for hybrid models

In their quest for alternative technology at lower costs, domestic auto makers are now working together to develop future technology.
Source: Moneycontrol Top Headlines | 16 May 2009 | 10:14 am

Builders claim increase in demand for housing

Is it a case of early signs of demand recovery or just tall claims by realtors? After six to eight months of a dry spell in the real estate space, builders are claiming that there has been a pick up in the residential property market over the last one month.
Source: Moneycontrol Top Headlines | 16 May 2009 | 10:02 am