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See 3G spectrum final price in $11.25 bn range: MacquarieShubham Majumder, Analyst, Macquarie Research, said indications of 3G auctions going through in the next few months is a positive. He feels the final price for panIndia spectrum could range between USD 11.25 billion.Source: Moneycontrol Top Headlines | 19 Jun 2009 | 6:28 pm IRB bags its first BOT project in PunjabIRB Infrastructure Developers Limited, (BSE: 532947, NSE: IRB) has emerged as the lowest bidder for its first BOT project viz. Pathankot to Amritsar Section of NH 15 from Km. 6.082 to Km. 108.502 in the State of Punjab under NHDP Phase IIIB on BOT basis.Source: Moneycontrol Top Headlines | 19 Jun 2009 | 5:57 pm Expect 1015% topline growth in FY10: Usha MartinRajiv Jhawar, MD, Usha Martin said, the company expects the current year to be better than the last year. We expect 1015% increase on our topline as well as a better bottomline this year, he added.Source: Moneycontrol Top Headlines | 19 Jun 2009 | 4:40 pm Prices won\'t fall due to capacity underutilisation: BinaniVinod Juneja, Managing Director, Binani Industries, said even though capacity for cement production was going up in India, it may not put too much pressure on prices as capacity utilization takes time.Source: Moneycontrol Top Headlines | 19 Jun 2009 | 4:29 pm Not worried about monsoon delay: Insecticides IndiaCommenting in the delay in the monsoons, Rajesh Agarwal, CMD of Insecticides India, said that although the delay in the monsoon is a cause of concern, it is still not very late. He said cotton crop in the North has already been sown and paddy plantation will start only by June 10.Source: Moneycontrol Top Headlines | 19 Jun 2009 | 4:15 pm 3G reserve price to impact bidding numbers: India InfolineGiving an idea of how the industry would look at this price, Bhavesh Gandhi of India Infoline, said the price was definitely higher than expected. It is on the higher side. As per the required investment, it would be a drag on the major operators, he said. Gandhi said this would impact the bidding numbers and enthusiasm.Source: Moneycontrol Top Headlines | 19 Jun 2009 | 3:38 pm New 3G price on par with global benchmarks: Anand RathiSanjay Chawla, Senior VP of Anand Rathi Securities said that the new reserve price of 3G has brought it to international benchmark. He said, We still expect final winning bid to be more than USD 1 billion. As fast MTNL is concerned, it doesnt have the that kind of customer base to offer 3G services.Source: Moneycontrol Top Headlines | 19 Jun 2009 | 3:09 pm Chennai outer ring road proj to cost Rs 1.1K cr: GMR InfraGMR Infrastructure has won the bid for the outer ring road project in Chennai. Confirming the development, OB Raju, MD, GMR Highways, said, This is a Tamil Nadu state governments order for constructing 29.65 kilometers road which would connect three national highway projects. The total estimated cost of the project is about Rs 1,100 crore.Source: Moneycontrol Top Headlines | 19 Jun 2009 | 2:35 pm Revealed: Terms from the original RILRNRL MoUMint exclusively reports that the Bombay High Court has revealed parts of the undisclosed family Memorandum of Understanding (MoU) signed in the Reliance IndustriesReliance Natural Resources case. For any future gas discoveries that come out from RIL, RNRL can exercise the right of first refusal.Source: Moneycontrol Top Headlines | 19 Jun 2009 | 2:01 pm Indraprastha Gas hikes CNG price due to high operating costIn the wake of rising cost of sourcing gas, Indraprastha Gas had hiked prices by Rs 1.2 per kilo on compressed natural gas (CNG). Rajesh Ved Vyas, the MD said. \"Due to increased operating cost in sourcing gas, we hiked the price from 18.90 to Rs 21, an increase of Rs 2.10 paisa.\"Source: Moneycontrol Top Headlines | 19 Jun 2009 | 2:00 pm India's JSW Steel considering price increase - Reuters
Source: Google News India - Business | 19 Jun 2009 | 1:57 pm AI employees hold meeting over salary issue - Economic Times
Source: Google News India - Business | 19 Jun 2009 | 1:55 pm Stanford in U.S. court in massive fraud caseRICHMOND, Va. (Reuters) - Texas billionaire Allen Stanford will appear in federal court in Virginia on Friday to answer allegations he orchestrated a massive fraud through his Antigua bank that bilked investors out of millions of dollars.Source: Reuters: Money News | 19 Jun 2009 | 1:34 pm Sensex climbs 250 points, realty metals bounce backThe Bombay Stock Exchange 30-share barometer rose by 256.36 points or 1.80 per cent to settle the day at 14,521.89 from its previous close.Source: Daily News & Analysis: Money News | 19 Jun 2009 | 1:15 pm SBI, State Bk of Indore boards OK mergerMUMBAI (Reuters) - The boards of State Bank of India and its associate State Bank of Indore have approved an acquisition of the latter by the country's biggest lender, both banks told the stock exchange on Friday.Source: Reuters: Money News | 19 Jun 2009 | 1:04 pm State Bank of Indore recommends merger with SBI - Business Standard
Source: Google News India - Business | 19 Jun 2009 | 12:58 pm Pharma firms seek tax sops for research & developmentNew Delhi: The domestic pharmaceutical industry has demanded exemption in income-tax and fiscal incentives in the forthcoming Budget for promoting research and development (R&D) in the field of drug discovery in India. “We have sought exemption in income-tax under section 80, for promoting R&D in the pharmaceutical sector,” Piramal Healthcare executive director Swati Piramal said. She said India is lagging behind countries such as Canada and Israel in R&D, which is very worrisome for the domestic pharma industry. “The provision for the exemption for R&D was there till 2007 and we simply want to revive it,” Piramal added. Echoing similar sentiments, Indian Pharmaceutical Alliance secretary general D.G. Shah said, “We are not making any special demand from the government but are only seeking that government must recognise the high risk associated with drug discovery and should provide adequate funding for that.” The industry has also demanded a decision on the central drug authority bill, which is pending in Parliament for the last five years. Apex body of drug exporters Pharmaexcil, in its representation to the finance ministry and commerce ministry, has demanded a Rs1,000 crore fund to support small and medium enterprises for Schedule M compliance (minimum standards set by government for producing drugs) and to meet global regulatory standards. Source: Home - Livemint.com | 19 Jun 2009 | 12:49 pm Mahindra Holidays fixes IPO price band Rs 275-325/share - Economic Times
Source: Google News India - Business | 19 Jun 2009 | 12:46 pm IRB bags its first BOT project in Punjab - Moneycontrol.com
Source: Google News India - Business | 19 Jun 2009 | 12:39 pm EXCLUSIVE - UK luxury travel firm Cox & Kings plans Indian IPOPEWSEY, WILTSHIRE - Venerable 250-year-old British travel firm Cox & Kings is planning an IPO on the Bombay Stock Exchange in September, reflecting its desire to expand in the burgeoning Indian holiday market.Source: Reuters: Money News | 19 Jun 2009 | 12:39 pm Govt to consider stake sale in BHEL- ministerNEW DELHI (Reuters) - India will consider selling a stake in Bharat Heavy Electricals Ltd, a minister said on Friday, as the government plans to encourage state-run firms to raise funds needed to expand operations at home and globally.Source: Reuters: Money News | 19 Jun 2009 | 12:33 pm Rupee up by 11 paise against dollarSnapping its one-week losing streak, the rupee gained by 11 paise to 48.08/09 against the dollar on expectations of fresh capital inflow from foreign funds in equity markets.Source: India Business News | Business News - Times of India | 19 Jun 2009 | 12:31 pm Air France-KLM may cut a further 3,000 jobs - CEOPARIS (Reuters) - Air France-KLM, Europe's biggest airline, may need to cut a further 3,000 jobs but only through natural attrition, its chief executive said on Friday.Source: Reuters: Money News | 19 Jun 2009 | 12:29 pm Sensex arrests 2-day fall; closes above 14500 - Economic Times
Source: Google News India - Business | 19 Jun 2009 | 12:28 pm Govt mulls 10% stake sale in BhelThe government on Friday said it is considering offloading 10 per cent of its equity stake in navratna public sector unit BHEL.Source: India Business News | Business News - Times of India | 19 Jun 2009 | 12:22 pm AI to hold talks with employees unions tomorrowThe Air India management will hold talks with the employees union to resolve the dispute on the decision to defer payment of June salary.Source: Daily News & Analysis: Money News | 19 Jun 2009 | 12:21 pm Funds to see long-term inflows as loads curbedMUMBAI (Reuters) - The Indian market regulator's move to ban entry fees for investments into mutual funds will lead to a jump in long-term inflows as distributors adjust their business models to generate more volume and trail fees.Source: Reuters: Money News | 19 Jun 2009 | 12:19 pm CBI registers case against bank manager for fraudThe CBI has registered a case against a senior manager of Bank of Baroda for allegedly sanctioning loans on fake and forged documents.Source: Daily News & Analysis: Money News | 19 Jun 2009 | 12:18 pm Cabinet extends stock limit on sugar - Economic Times
Source: Google News India - Business | 19 Jun 2009 | 12:16 pm BHEL top brass to meet Vilasrao Deshmukh on Monday - Economic Times
Source: Google News India - Business | 19 Jun 2009 | 12:09 pm Sensex snaps two-day losses, up by 256 pts on SEBI measuresThe BSE-benchmark Sensex snapped its two-day losing streak and bounced back to end at 14,521.89 on fresh support from investors on the back of several measures announced by SEBI on Thursday and positive global cues.Source: India Business News | Business News - Times of India | 19 Jun 2009 | 12:09 pm Oil prices linger above USD 71 in Asian trade!Oil prices lingered above USD 71 a barrel in Asian Friday spurred by hopes that the worst is over for the ailing global economy, analysts said.Source: Zee News : Business | 19 Jun 2009 | 12:06 pm Wall Street ends higher after positive data!US stocks finished mostly higher, supported by a series of relatively encouraging economic data as investors weighed a proposed overhaul of the financial regulatory system.Source: Zee News : Business | 19 Jun 2009 | 12:06 pm Banks may resist govt`s rate cuts appeal!State-owned banks are likely to resist mounting government pressure to sharply cut rates.Source: Zee News : Business | 19 Jun 2009 | 12:06 pm `Mobile subscriber base to exceed 771mn in 4 years`!With telecom operators focussing more on the rural market, the mobile subscriber base in the country is set to exceed 771 million by 2013, a study said.Source: Zee News : Business | 19 Jun 2009 | 12:06 pm Germany faces 310 billion euros in debt: Report!Germany might have to take on 310 billion euros (432 billion dollars) in debt by 2013, according to finance ministry documents cited on the Internet site of the magazine Der Spiegel.Source: Zee News : Business | 19 Jun 2009 | 12:06 pm Azim Premji receives Global Vision Award at USIBC!Azim Premji, Chairman of Wipro Ltd, was awarded the US-India Business Council`s (USIBC) 34th Anniversary `Global Vision` award in Washington for his contribution in promoting India-US relations through commercial partnership.Source: Zee News : Business | 19 Jun 2009 | 12:06 pm Texas billionaire Allen Stanford surrenders to FBI, faces court!Texas billionaire Allen Stanford has surrendered to authorities and will face criminal charges on Friday tied to an alleged massive fraud involving certificates of deposit issued by his Antigua bank, his lawyer said.Source: Zee News : Business | 19 Jun 2009 | 12:06 pm Sensex rises 190 pts in early trade on firm global cues!The BSE benchmark Sensex Friday opened over 190 points up, breaking a two-session losing streak, as funds and investors resumed buying activity, driven by the rebound in the global markets on encouraging economic data from the US.Source: Zee News : Business | 19 Jun 2009 | 12:06 pm Protectionism would deepen recession: India!Commerce Minister Anand Sharma has warned that protectionist measures would be counter-productive.Source: Zee News : Business | 19 Jun 2009 | 12:06 pm India asks US, China to restart stalled Doha round!India has called on the United States, China and other powers to return to talks immediately to frame a world trade accord instead of waiting for recovery from the global economic crisis.Source: Zee News : Business | 19 Jun 2009 | 12:06 pm Air India asks senior staff to forego July pay to cut costsMUMBAI (Reuters) - Air India has asked its senior management to voluntarily forego salaries and productivity linked incentives in July due to an ongoing liquidity crunch, the state-run airline said in a statement on Friday.Source: Reuters: Money News | 19 Jun 2009 | 12:02 pm BSE Sensex rises 1.8 pct, but snaps 14-week rallyMUMBAI (Reuters) - The BSE Sensex bounced 1.8 percent in choppy trade on Friday, but the rear-guard rise was not sufficient to extend a run of 14 weekly gains as investors grabbed profits after a three-month rally.Source: Reuters: Money News | 19 Jun 2009 | 12:00 pm Rio Tinto signs legal services outsourcing deal with CPA Global - Business Standard
Source: Google News India - Business | 19 Jun 2009 | 11:59 am Cals Refineries signs MoU with BPCL for petro product off-take - Business Standard
Source: Google News India - Business | 19 Jun 2009 | 11:43 am Air India asks senior staff to forego July pay to cut costsMumbai: Air India has asked its senior management to voluntarily forego salaries and productivity linked incentives in July due to an ongoing liquidity crunch, the state-run airline said in a statement on Friday. The firm’s chairman and managing director, Arvind Jadhav, has requested executives in the level of general managers and above to forego salaries in July, the airline said. The firm had earlier this month decided to defer the salary and incentives of all employees for June, by 15 days. Source: Home - Livemint.com | 19 Jun 2009 | 11:36 am “Budget should define a per child cost for elementary schools” - Madhav Chavan, PrathamAs part of Mint’s budget coverage, we talk to NGOs across various sectors to get a grassroots perspective on what they need and expect from the upcoming budget. To get an analysis about major issues pertaining to education in India, we interviewed Dr. Madhav Chavan, the director of educational NGO Pratham.  Source: Pratam What are the biggest challenges within your area of work? Within elementary education, the biggest challenge is governance and reforms in the education sector. Most of the schools are managed by the government. That has problems related to accountability of the management system and the teachers and so on. On the side of vocational training, the biggest challenge is capital. There’s a lot of infrastructure owned by the government, but this is not available to people who can be trained to use it effectively for the needs of the economy. If you had one wish related to the budget, what would it be? Money allocation is more or less decided in the eleventh plan. I don’t see how the budget is going to change this in any way. However, I would like to see the budget start to define a per child cost for elementary schools. The first UPA government came out talking about outcome budgets, but funds were allocated as basically inputs and not related to any outputs or outcomes. We really don’t know how much we are spending on education as a nation. This number is very elusive. If you ask how much the state government is spending, the answer is not very precise. If you break this down to a per child cost, the answer is even less precise. If you go to a school and say okay there are so many students and so many teachers, that is not it – the overall cost seems to be completely different. So I think there is a need to put an average per child cost, state by state and at the union level also. Once you have the per child cost then many things start flowing. Is there a particular provision within the budget that you would drop? I would not drop any provision as such. What I would like to do is reorganize the budget. Now mid-day meals fall under education. I would like to put this under child welfare or health. I’m not convinced that mid-day meals are leading to better enrollment or attendance. How would you define inclusive growth and how do you think this concept could best be achieved? Expansion, inclusion and excellence, not just inclusive growth, are all important. We should acknowledge that excellence is not just for a select few – that is the real essence of inclusion. We already have some things going in the rural areas – Jawahar Navodaya Vidyalaya has led to some important achievements. I think we need to take that a little further. There should be mechanisms for identifying bright and brilliant children, not only based on their examination aptitude. Apart from that I think a bigger focus needs to be placed on developing human resources in Adivasi (tribal) areas and Muslim minority areas. While money has increased, you still have the problem of not finding science teachers for Adivasi areas, or not finding enough educated people in backward districts to teach in schools. So the challenge of creating human resources to deliver education in these areas is something that really needs to be addressed. Source: LatestNews-Home - Livemint.com | 19 Jun 2009 | 11:32 am Europe stocks gain as banks, commodity riseLondon: European shares were higher on Friday at midday, led by gains in banks and commodity stocks, as “triple witching” started to take place. By 4:00pm, the pan-European FTSEurofirst 300 index of top shares was up 1.3% at 861.70 points. The European benchmark index is up 33% from the lifetime low hit on 9 March, as investors have become more confident on prospects for an economic recovery. “It is a pretty quiet day today, it is all about triple witching. Everyone is waiting to see what happens with Volkswagen as Porsche options mature today. No one knows whether they will be rolled over or let expired which means VW could fall off a cliff,” said Heino Ruland, strategist at Ruland Research. Triple witching is the expiry of stock index futures, stock index options and single stock options. Banks added the most points to the index. HSBC, Barclays, Standard Chartered and Banco Santander were up 1.7-3%. The DJ Stoxx banking index is up around 21% for the year, after falling about 64% last year. Insurers were higher, boosted by a positive sector note from Deutsche Bank. The broker upgraded price targets for Aviva and Axa which gained 5.6 percent and 0.9 percent, respectively. Energy stocks were higher as crude rose towards $72 a barrel. BG Group, BP, Royal Dutch Shell and Total gained 1-4.1%. Automobile stocks in the doldrums Miners also ticked up. Anglo American, Antofagasta, BHP Billiton, Eurasian Natural Resources Corporation, Rio Tinto and Xstrata were 0.5-3.9% higher. Investors also stuck with defensive stocks with food producer Nestle up 1.9%, while drug maker AstraZeneca gained 2.4% after UBS added the group to its UK “First XI” stock list. There were few sectors trading in the red with auto stocks the main sector in the doldrums. Porsche slipped 0.3% after it said pretax profit at its core sports car business declined on the back of a sharp drop in vehicle sales and revenue in the first nine months of its fiscal year. Volkswagen was down 1.8% as investors waited to see what was happening with the Porsche options. US shares rallied on Thursday, breaking a three-day losing streak, as data on the job market, regional manufacturing and an index of leading indicators revived hopes the recession-hit economy was stabilising. Source: LatestNews-Home - Livemint.com | 19 Jun 2009 | 11:31 am Fertilizer industry seeks 15 year tax holiday for new projectsNew Delhi: The fertilizer industry has demanded that tax holiday for at least 15 years be extended to all new projects to attract funds into the sector, which has not witnessed any major investment for over a decade. “Tax holiday under the Income Tax Act for at least a period of 15 years to all new fertilizer projects be offered,” Fertilizer Association of India (FAI) director-general Satish Chander said. In its pre-Budget memorandum, the FAI has also submitted that the subsidy paid to companies on the sale of different farm nutrients at lower rates be paid in cash and not in bonds. Moreover, the losses incurred on the sale of securities issued earlier be compensated fully. “Payment of subsidy be made in cash only and not in the form of special securities (fertiliser bonds). The loss on the sale of bonds issued in lieu of cash should be compensated to the fertiliser companies,” the association has said. The government had issued bonds worth Rs4,000 crore on 24 December last year and those worth Rs10,000 crore and Rs6,000 crore on 10 December and 29 January this year, respectively, to fertiliser companies to help meet their working capital requirements. The government controls the pricing of key fertilizers and offers funds to companies, called fertilizer subsidy, to compensate them for selling key farm nutrients at the rates determined by it. The government had proposed fertiliser subsidy of Rs30,986 crore in the Budget 2008-09. After that it came out with first supplementary grants for providing additional Rs52,000 crore subsidy. While Rs38,000 crore was given in cash, bonds were to be issued for Rs14,000 crore. The industry is of the view that the long-term special securities provided by the government are trading at a discount. Moreover, since these bonds are classified as “Other Approved Securities”, banks and insurance firms are not obliged to buy them, making them unattractive against other AAA rated corporate bonds with higher yields. The fertilizer subsidy bill is estimated to surge to over Rs1,02,000 crore in 2008-09 from just Rs45,659 crore last year, mainly due to the unprecedented rise in the prices of farm nutrients in the initial part of the last fiscal. The FAI has also sought exemption in excise duty, sales tax and VAT on capital goods used in fertilizer projects. The association is pitching for the withdrawal of customs duty on the import of LNG, fuel oil and basic raw materials like ammonia, phosphoric acid, rock phosphate, sulphur, sulphuric acid, among others. These apart, the industry body has also sought the removal of service tax in the sector. Source: Home - Livemint.com | 19 Jun 2009 | 11:27 am Markets rebound; Sensex ends ends 250 pts upMumbai: India’s main stock index bounced 1.8% in choppy trade on Friday, but the rear-guard rise was not sufficient to extend a run of 14 weekly gains as investors grabbed profits after a three-month rally. Renewed jitters about the global economy and worries about expensive valuations after a 90% jump since early March eclipsed the market this week. Still, long-term investors were buyers as prices dropped. “The market can’t keep going up in a straight line all the time. This kind of fall was bound to happen,” V P Chaturvedi, who helps manage $5 billion at Tata Asset Management, said. The main index dropped 4.7% on the week, after rallying 83% over 14 consecutive weeks in its best run in four years. “It gives the opportunity for new investors to come in. There is still a lot of interest in the market,” Chaturvedi said. Energy giant Reliance Industries pulled back after falling in the previous four sessions following an unfavourable court ruling on gas supplies. The stock ended the week down 13.5%, leading losses in the main index. Outsourcer Infosys Technolgies gained 2.9% and engineering and construction firm Larsen & Toubro, which fell 13.4% from last Wednesday through the previous session, rose 5.7% on Friday. Reliance Infrastructure added 5.1% after the Economic Times newspaper said its consortium with Hyundai Engineering was tipped to bag a contract worth about Rs1,500 crore ($310.7 million) to construct the second leg of a highway project connecting Mumbai’s suburbs to the city. The Business Standard reported Reliance Infrastructure had also started negotiating with domestic banks to tie up funds for the second phase of Mumbai’s metro rail project, though it was yet to win the contract. The stock ended the week up 7.1%. The order books of the company and firms such as Larsen & Toubro are expected to get a boost as the government steps up spending to revamp the country’s ramshackle infrastructure. The 30-share BSE index ended up 256.36 points at 14,521.89, with 24 stocks advancing. It had leapt 94% from a 2009 low in early March to its highest level in almost a year last Friday. The 50-share NSE index rose 1.5%to 4,313.60. Most of the gains can be attributed to foreign funds, which pumped almost $8 billion into the market since mid-March on signs of an economic rebound. A stronger mandate for the ruling coalition at the end of elections last month has raised hopes the government, free from its former communist allies, will pursue reforms such as privatisations and relaxation of foreign investment rules. Investors are, however, awaiting the budget on 6 July a clearer picture of the government’s plans to push up economic growth and tackle a yawning fiscal deficit. Trading could be choppy next week as investors will look to take profits if prices move up, analysts said. “The extreme short-term indicators signal the market is in oversold territory. But the longer-term indicators signal more of a correction may be coming up,” Alex Mathew, head of research at Geojit BNP-Paribas Financial Services, said from Kollam in the southern state of Kerala. “Today may turn out to be just a temporary pull-back, and the market could consolidate further before the budget.” Reliance Industries, which has the most weight in the main index, rose 0.7% to Rs2,039.60, while No. 2 outsourcer Infosys gained Rs49.65 to Rs1,771.10. Larsen climbed Rs80.8, to Rs1,496.10, and Reliance Infrastructure advanced 61 rupees to Rs1,262.25. Leading listed realty firm DLF Ltd, which had more than tripled from 6 March through early June, shed more than 10% this week. Non-ferrous metals producer Sterlite Industries was another major loser, falling 15.5% on the week as copper prices weakened. In the broader section on Friday, gainers led losers 1,351 to 1,305 on relatively heavy volume of 503.9 million shares. Source: Home - Livemint.com | 19 Jun 2009 | 11:19 am Pantaloon plans to invest Rs250 cr in 10 new malls: BiyaniMumbai: Kishore Biyani-led Pantaloon Retail India (PRIL) will invest close to Rs250 crore within the next year-and-half for setting up 10 Central malls in the country. With this, India’s largest listed retailer will add another 1.5-1.7 million sq ft to its existing retail space of 14 million sq ft, Future Group founder and chief executive officer Kishore Biyani told the agency. “There will be 9-10 Central malls in the country within the next 12-18 months. The average cost of setting up a Central is about Rs25 crore,” Biyani said. “We plan to expand Central further into some of the country’s other consumption centres like Ahmedabad, Bangalore, Vizag, Raipur and Jaipur,” he added. The lifestyle retailing mall,which set up shop in Indore earlier this month, will also have a presence in Surat, Thane and Nashik. Besides, South Mumbai will have one Central spread over one lakh sq ft at Tardeo, he said. The supermarket major will fuel the expansion through Rs367.50 crore it raised through preferential issue of equity shares and warrants last month. It also plans to raise additional long term funds of up to Rs1,000 crore in one or more tranches through issuance of securities to various investors. PRIL will also roll out six Big Bazaar and eight Food Bazaar stores stores by July-end, a company statement said. Source: LatestNews-Home - Livemint.com | 19 Jun 2009 | 11:12 am Steel prices to fall by five per cent in three monthsEconomic thinktank Centre for Monitoring Indian Economy (CMIE) expects steel prices to fall by around five per cent in the next three months.Source: Daily News & Analysis: Money News | 19 Jun 2009 | 11:11 am Kamal Nath seeks doubling of funds for roads to be built by statesNew Delhi: Targeting a four-fold increase in highway construction to 20 km per day, the road transport and highways ministry is seeking doubling the budgetary allocation for building roads that do not fall under the purview of the National Highways Authority of India (NHAI). “Transport minister Kamal Nath is seeking Rs6,000 crore budgetary support from finance minister Pranab Mukherjee as compared to Rs3,350 crore available (now),” an official source said. Besides projects under the NHAI, the government also earmarks funds for constructing roads, undertaken by various state government agencies and municipal corporations. Nath will be seeking Rs6,000 crore for this. Nath, sources said, will also be pressing for including “innovative funding” schemes in the Budget for boosting the country’s roads infrastructure development. The ministry is likely to pitch for setting up a Road Finance Corporation (RFC) with an initial corpus of Rs500 crore to provide easy financing options for the sector. “The RFC is Nath’s own idea and this will be among the major items on his wishlist for the Union Budget,” another official said. Among other things, the transport minister will also ask the finance ministry to allow the NHAI to raise Rs5,000 crore this fiscal to fund road construction. Apart from this, the NHAI has launched tax-free bonds to raise up to Rs4,000 crore in the current fiscal to fund its road projects. “The NHAI plans to raise at least Rs3,000 crore (out of the Rs4,000 crore) through tax-free bonds in 2009-10 to fund various highways projects. It had raised Rs1,700 crore in the previous fiscal (2008-09) to strengthen the sector,” NHAI member (finance) A. Didar Singh had said. The minister will also press for hiking the cess on sales of petrol and diesel from Rs2 currently to Rs3 per litre for building roads and highways. Another item on the wishlist will be getting additional allocation for improving bus depots across the country. “We are looking for Rs500 crore for the purpose in the upcoming Budget,” the official said. These funds would be utilised for building commercial complexes within the depots, introducing GPS (Global Positioning System) for buses and improving bus shelters. Source: Home - Livemint.com | 19 Jun 2009 | 11:01 am Govt unlikely to tinker with minimum alternate taxNew Delhi: The finance ministry is unlikely to tinker with the 10% Minimum Alternate Tax (MAT), the amount companies getting tax exemptions pay on their book profits, despite the industry chambers’ demand to reduce the same. Although the industry wants the tax rate of MAT to be lowered to 7.5% from 10% currently, sources said, the finance ministry is not in favour of reducing it at a time when increasing revenue has become one of the major concerns of the government. In 2007-08, the then finance minister P. Chidambaram had raised the rate of MAT from 7.5% to 10%. MAT was introduced in 1987 to bring under the tax net companies which paid no or very little tax after taking advantage of the exemptions provided by the Income Tax Act. Industry wants that rate of MAT to be lowered as it was affecting internal resource generation and blocking expansion and diversification plans. India Inc, however, is not for removal of MAT. “Everybody who is earning should contribute to the exchequer,” said industry chamber FICCI in its pre-budget memorandum to the finance ministry. On the issue, Ernst and Young senior partner Satya Poddar said the government should continue with the MAT during this fiscal. Source: Home - Livemint.com | 19 Jun 2009 | 10:55 am Steel prices to fall by 5% in 3 mths: CMIEMumbai: Economic thinktank Centre for Monitoring Indian Economy expects steel prices to fall by around 5% in the next three months. “The expected dip in contract prices of iron ore and coal will put pressure on steel prices. We expect prices to decline by around 5% in the next three months,” CMIE said in its monthly review of Indian economy for June. Domestic steel makers have urged the ministry to increase import duty on the alloy to 15-20% from 5% now or impose safeguard duty of about 25%. “Any restrictive measures to curb imports, if implemented, will narrow the gap between the domestic and international prices to a maximum of 7-8%. This indicates that prices have not bottomed out yet,” CMIE said. Meanwhile, Tata Steel on Friday announced that it has increased prices of its products by upto Rs750 a tonne on improved domestic demand and a firming global trend. The company had also hiked the price of long products, used in the construction activity, in the range of Rs300-500 a tonne last month. Steel prices remained flat or inched up marginally in May this year after correcting by 40-45% in the previous six months ended April 2009. Hot Rolled Coil prices in May were at around Rs26,000 per tonne. The economic thinktank said that the demand for steel has improved and it would sustain in the current fiscal, but domestic prices would remain weak from the year-ago levels. “This is because steel prices move in tandem with international prices, which will remain weak due to the subdued global economic environment,” CMIE said. While prices would decline, production growth would pick-up in teh current fiscal, backed by healthy demand for long products. “A pick-up in housing construction activity in the second half of 2009-10 due to low interest rates and a fall in property prices will also create new demand for long products,” it said. Source: LatestNews-Home - Livemint.com | 19 Jun 2009 | 10:50 am Govt may announce revised 3G rules in a week - minNEW DELHI (Reuters) - India is likely to decide within a week revised rules for a pending 3G spectrum auction, including a possible increase in the base price, the telecoms minister said on Friday.Source: Reuters: Money News | 19 Jun 2009 | 10:26 am Reliance Retail plans to ramp up jewellery subsidiaryNew Delhi: Aiming at becoming a leading player in the estimated Rs4,000 crore Indian branded gems and jewellery market, Reliance Jewels is planning ramp up presence with 20-25 new stores during this fiscal. The company, a jewellery retail format of Reliance Retail, is keen to tap the markets in both major metros and smaller tier II cities and has lined up a portfolio of over 20,000 designs in gold, diamond and bridal ranges. “After a temporary downturn, the market is again moving upswing and we see lot of potential in the branded jewellery business. We have finalised a network-enhancement plan under which we plan to open 20-25 new Reliance Jewels outlets by March 2010,” Reliance Retail business head and vice-president (Jewellery) Ashok Kaul told reporters in Delhi. He, however, refused to disclose the company’s investment plans. “Only 4% of the estimated Rs1,00,000 crore Indian jewellery market in India is organised. It offers immense potential for the few national players and we want to tap this by having a mix of correct merchandising, pricing and location,” Kaul said. Reliance Jewels has currently 12 outlets across the country, including nine standalone stores and three shop-in-shops. Reliance Jewels on Friday opened its first outlet in the NCR region at Gurgaon with store area of 5,000 sq ft. “This year, we will expand aggressively in the two major metros — Delhi and Mumbai — besides venturing into Tier II cities like Vijaywada, Cuttack and Bhubaneshwar. Our stores will offer a collection of 20,000 Indian-made gold, diamond and bridal designs,” he added. Asked about the impact of economic slowdown in the company’s business, Kaul said: “Business was affected not only because of the downturn but also high gold prices which reached record levels last year. However, there is now distinct signs of improvement in both and we expect business to move up.” Source: LatestNews-Home - Livemint.com | 19 Jun 2009 | 10:23 am Sectoral challenges may need to be ironed outThe application of goods and services tax (GST) in different countries and regions has thrown up a loosely defined 80:20 rule, which shows that applying GST to about 80% of the sectors is smooth and easy. It is the remaining 20% that is complex. These sectors typically include land and real property, financial services and supplies by public bodies and non-profit organizations. India would need to iron out possible challenges in these before it can transition smoothly to a GST regime. Also seeMore on budget 2009  Similarly, financial services in the European Union are exempted from VAT, not on account of any social or economic reason but because of difficulties in taxing transactions where the consideration for the service is not an explicit fee but a margin—for example, the interest margin or the spread between interest received on loans and interest paid on deposits. Such exemptions have turned out to be a source of complexity and distortions. Interestingly, the practice in the modern VAT jurisdictions, such as Australia, New Zealand, Canada and South Africa, is to do away with such distortions by applying the tax to these sectors as to any other goods or services. In all these countries, real property sales are taxable like other goods and services. The reason for this is that real estate supplies consist of land, goods and construction services and these are inseparable and indistinguishable from other supplies of goods and services. There is more variation in the treatment of financial services and supplies by public bodies and the non-profit sector, but the trend is to minimize exemptions. For example, financial services having consideration in the form of an explicit fee—as opposed to an interest margin—are taxed. This approach has ensured a more neutral application of tax. India should follow the modern approach. It would be appropriate to include land and real estate in the GST base. To exclude them would, in fact, lead to economic distortions and invite unnecessary classification disputes as to what constitutes supply of real estate. Any exclusion of commercial and industrial land and buildings would also result in tax cascading due to blockage of input taxes on construction materials and services. Even though state VAT and service tax already apply to construction materials and services, respectively, their application is complex, uncertain and filled with disputes regarding allocation of the sale price towards land, goods and services. Extending the GST to all real property supplies, including land, construction material and services, would bring an end to such disputes, simplify the structure and improve the economic efficiency of tax. Regarding financial services, these have been brought under the service tax net in India wherever the consideration is in the form of an explicit fee. As there are no compelling economic or social policy reasons to exempt financial services, it would be appropriate to continue this approach under GST. However, certain technical flaws in measuring consideration need to be addressed before switching over to GST. For example, in insurance, the tax applies to gross premiums and excludes the savings element, whereas the proper base for GST is net underwriting income of the insurer—which means premiums less claims. India could also consider taxing the interest margin on loans, but careful consideration needs to be given to determine the correct and most appropriate method of applying the tax to such transactions. The margin cannot be readily computed for individual transactions. Financial institutions do compute the margin on aggregate basis, which could be included in the tax base. Another area of distortion on account of exemption is supplies by non-profit organizations and government bodies. Under older VAT jurisdictions, supplies by such entities are exempt from VAT on the grounds that such entities are not engaged in a business and their activities are not commercial in nature. Public bodies mainly provides three types of services—services for no cost such as defense, sanitation, law and order, public parks and amenities; services provided at a price below cost, such as health, education in government institutions and postal services; and goods and services supplied more or less on a full-cost recovery basis such as railways and supplies by state-owned enterprises. The supplies under the third category are taxable but the first two categories are exempt because these supplies do not compete with private suppliers. Following the principles laid down in various modern VAT jurisdictions, India can also consider taxing such supplies fully or zero rating them. In both cases, the input tax charged to these bodies is fully refunded. Ideally, the tax should be levied on all goods and services at a single rate to achieve the objectives of simplicity and economic neutrality. However, governments often deviate from this ideal on account of concerns about distribution of tax burden. These concerns are likely to be paramount at both the Centre and the states and there will inevitably be calls to exempt, or tax at a reduced rate, items of importance to the poor or other particular groups. In the Indian context, these considerations are paramount mainly in the treatment of food. Bringing these sectors within the ambit of GST should thus warrant serious consideration. Satya Poddar is tax partner, policy advisory group, Ernst & Young. This is the second in a four-part series on the goods and services tax. Respond to this column at feedback@livemint.com Source: Home - Livemint.com | 19 Jun 2009 | 9:46 am UNHRC concerned about arrests in IranGeneva: UN human rights chief Navi Pillay on Friday expressed concern over a spike in arrests after Iran’s contested presidential election and the use of “excessive force” to quell protests. The high commissioner for human rights warned in a statement that illegal acts by militia and security forces “could provoke a serious deterioration in the security situation.” Pillay is “concerned about reports of an increasing number of arrests, which may not be in conformity with the law, and the possible illegal use of excessive force and acts of violence by some militia members,” her office said. The UN high commissioner for human rights also “commended the largely peaceful and dignified conduct of the huge demonstrations” in Tehran, underlining that freedom of expression and freedom of assembly were fundamental rights. But she took issue with reported violence by militia members, warning of possible violations of Iranian as well as international law, and queried the grounds for the arrests. “The legal basis of the arrests that have been taking place, especially those of human rights defenders and political activists, is not clear,” Pillay said. “Why have some of those who have been arrested been denied access to lawyers and members of their families? And why is the whereabouts of others unknown?” “These are all troubling questions, and I urge the Iranian authorities to ensure that due process is followed, since to do otherwise may fan the feelings of injustice,” she added. Reported violence by Basij militia and security forces could also tip the balance, she warned. “It is the responsibility of the government to ensure that militia members and regular law enforcement agencies do not resort to illegal acts of violence,” the UN high commissioner said. “If they are perceived to be acting outside the law, it could provoke a serious deterioration in the security situation, which would be a great tragedy and is in nobody’s interests.” Iran is a party to the International Covenant on Civil and Political Rights, which guarantees freedom of expression, the right to peaceful assembly and protection from arbitrary detention. Source: LatestNews-Home - Livemint.com | 19 Jun 2009 | 9:40 am Yes Bank to recruit 900 people in next 9 monthsYes Bank on Friday said it would recruit 900 people, including 500 specialists, in the next nine months to drive expansion in six key segments.Source: India Business News | Business News - Times of India | 19 Jun 2009 | 9:38 am Gold prices down in absence of demandMumbai: Indian gold prices fell on Friday in the physical market in absence of buying, analysts said. “Last two days there was some buying at dips ...mainly for wedding purposes .....now there seems to be no interest as prices crossed Rs14,700 (per 10 gm),” said a dealer with a public sector bank. The Indian wedding season ends in a week’s time. “Gold prices will fall further in the next few days as there are no major festivals or wedding season for next two months,” said another dealer with a private bank. International gold edged up towards $935 on Friday, although it remained vulnerable to a firm dollar which prevents the precious metal from showcasing its merits as an alternative investment to the US currency. Bullion has mostly traded within a range of $930-$940 this week, down about 5 percent from a three-month high of $989.80 marked earlier in June. Domestic gold futures were tad lower on a firm rupee, which makes the imported commodity cheaper, analysts said. The Indian rupee edged a little lower in afternoon trade on Friday, as the domestic shares pared earlier gains but the weakness in the dollar versus major currencies helped prevent a further fall. Source: Home - Livemint.com | 19 Jun 2009 | 9:24 am Yes Bank to recruit 900 people in next nine monthsNew Delhi: Eyeing growth of at least 40% in loans in the current financial year, Yes Bank on Friday said it would recruit 900 people, including 500 specialists, in the next nine months to drive expansion in six key segments. “Somewhere between now and September we are adding at least 500 managerial staff,” Yes Bank managing director and CEO Rana Kapoor said. “Overall we should hire about 900 people in the current fiscal. Right now we are 2,700; we want to get to 3,600 by March 2009,” he said, of which 500 are of managerial level and 400 will be in retail service and sales, he added. The hiring is in line with the growth plan for the next six years, he said, adding that the bank is looking at year-on-year balance sheet growth of 40%. The bank has identified six key industries as future growth drivers. “We want to evolve as a bank for future industries of India and our focus is on high-growth industries like agri-business, infrastructure, energy, health care and communications,” he said. At present 25% of the total advances go to agri-business, he said, adding, “infrastructure is about 18% right now but we see that percentage going up. We should see that minimum 20-22% in the future.” Source: Home - Livemint.com | 19 Jun 2009 | 9:09 am Toyota gets 180,000 orders for new Prius hybridTokyo: Toyota Motor Corp. got 180,000 orders for the new Prius hybrid in Japan in just a month, far surpassing its target of 10,000 vehicles in monthly sales, the automaker said on Friday. The third-generation Prius, which rolled out a month ago, has been a big hit here, partly because of tax-breaks and other new government incentives that are meant to perk growth during the nation’s downturn. The Prius was the No.1 selling vehicle in Japan for May, clinching the top spot in the domestic market for the first time and overtaking Honda’s new hybrid, the Insight, which fell to third after taking the top spot in April. Competition in the hybrid vehicle market has intensified after the Insight debuted in February in Japan at $19,700. Toyota is offering its new Prius at just over $20,900, about $3,100 cheaper than the previous model. The upgrade has a larger 1.8-litre engine but gets better mileage than the older one. Strong hybrid sales are a rare bright spot for Japan’s automakers, which have been battered by the global slowdown, a strengthening yen and the US credit crunch. Toyota, the world’s biggest automaker, which also makes the Camry sedan and Lexus luxury models, recorded its worst loss in its seven-decade history for the fiscal year ended March. In Japan, hybrids are now tax-free, delivering savings of about $1,500 for a Prius buyer. Other fuel-efficient models qualify for lower savings. Also helping is a “cash-for-clunkers” program similar to the plan initiated by President Barack Obama, which offers vouchers worth up to $4,500 for a gas-guzzler turned in for a new car in the US. In Japan, people who trade in a car 13 years or older get a $2,500 rebate for buying an ecological model. Those without a trade-in get $1,000. Toyota is also continuing to sell the old-style Prius in Japan at the same price as the Insight. That’s relatively unusual as manufacturing of old models is usually discontinued with the arrival of the new model. Those sales numbers aren’t included in Friday’s orders number from Toyota. Source: Home - Livemint.com | 19 Jun 2009 | 9:01 am Govt extends stock limit on sugar till Jan 2010The Centre, on Friday decided to extend the stock limit order imposed on sugar traders by six months till January 8, 2010, to curb any rise in prices of the sweetener.Source: Daily News & Analysis: Money News | 19 Jun 2009 | 8:51 am Tata Steel hikes prices by up to Rs750 a tonneNew Delhi: Tata Steel on Friday raised prices of its products by up to Rs750 a tonne, the second such move in as many months, on account of improved domestic demand for the commodity and a firming global trend. “We have increased the prices of our hot-rolled and cold- rolled steel items in the range of Rs500-750 a tonne on our monthly contracts in select regions,” a Tata Steel spokesperson said. However, even though the announcement was made on Friday , the increase in rates would come into effect from 1 June, he said, adding the hike in the prices has been effected on the back of improved domestic demand from sectors including construction and automobile, and the recent uptrend in global steel prices. The company had last month hiked the rates of its long products, mainly used in the construction space, in the range of Rs300-500 a tonne. By increasing prices of its products, Tata Steel has pre- empted the move of its peers in the industry like JSW Steel and JSPL, who are considering increasing prices of their items on account of the increased offtakes and slight improvement in international prices. Tata Steel had recorded an 18% increase in its sales volume to 4.69 lakh tonnes last month. State-run RINL has already hiked steel prices by Rs1,000 a tonne while SAIL has discontinued the Rs500-a-tonne rebate it was giving to the retailers of its products. Source: LatestNews-Home - Livemint.com | 19 Jun 2009 | 8:47 am Decline in world economy moderating: IMFBodrum, Turkey: The International Monetary Fund is likely to revise its 2010 growth forecast for the world economy up with signs the rate of decline in global output has moderated, a senior IMF official said on Friday. Addressing a Turkish business conference in this southern Turkish resort, IMF first deputy managing director John Lipsky, however, warned it was far too early to declare victory, with financial conditions far from normal and the world economy still in recession. “While the latest data point to a slowing of the global contraction, there is still great uncertainty regarding the timing and pace of economic recovery,” he said in prepared remarks to the Turkish Industrialists’ and Businessmen’s Association. However, Lipsky said signs are emerging that the rate of output decline has moderated, financial conditions have improved, confidence is recovering gradually and indicators of future production and demand have firmed. Given this backdrop, “I expect that in the coming weeks we will revise our growth projections modestly upward, mainly with regard to 2010,” he said. Turning to the economy of his hosts, Lipsky said Turkey may be on the verge of recovery but its rising fiscal deficit could hamper the rebound in growth. He said consumer confidence in Turkey has rebounded strongly and manufacturing and employment have picked up, but Turkey’s fiscal gap was a concern. “The rising fiscal deficit and weakening loan quality could -- if not addressed forcefully -- cloud the growth outlook, including by curtailing banks’ ability to extend credit,” he said. Lipsky and other IMF officials have met Turkish Treasury officials over the past two days, prompting market gains on hopes the country was close to an IMF loan accord. But an IMF offical said on Thursday a deal had not been reached, reining in market optimism. The IMF is scheduled to present updated forecasts for the world economy on 7 July in Washington. In its previous forecast in April, the Fund projected the world economy would contract 1.3% this year in the deepest recession since World War II and then rebound to grow at 1.9% next year. SLUGGISH RECOVERY Lipsky said the recovery next year will be sluggish, with activity in the world’s advanced economies likely to revive only gradually, weighed down by financial deleveraging, restrained credit growth and weak household income growth. Meanwhile, emerging markets will be unable to return to trend growth while advanced economies are still underperforming. “As a result, output gaps and unemployment rates in most economies should continue rising through 2010,” Lipsky warned. He emphasised that policies need to focus on a sustained recovery, starting with reviving the financial sector. So far, progress overall in nursing banks back to health had been slow and uneven, while little had been done to resolve the problem of toxic assets on banks’ balance sheets. “In order to lay the ground for a revival of bank credit growth, the near-term focus of policies should continue to be on restructuring weakened financial institutions by cleansing banks’ balance sheets of impaired assets, assessing bank viability, and ensuring bank recapitalisation where needed,” he said. In addition, fiscal policy in advanced economies and in many emerging market countries should remain expansionary at least through 2010, and additional stimulus may become necessary, Lipsky said. Meanwhile, monetary policy should remain supportive until a sustained recovery takes hold, he added. But Lipsky also said widening fiscal deficits in many industrial countries were a growing concern, especially with government costs expected to rise due to population ageing and more people needing healthcare. Still, even as policies are focused on ending the recession, authorities should start planning exit strategies, especially the extraordinary government intervention in the financial sector, he said. Central banks will need to devise plans to exit from unconventional measures and forestall concerns that inflation pressures could be allowed to rise, Lipsky added. Source: LatestNews-Home - Livemint.com | 19 Jun 2009 | 8:18 am Sarod maestro Ali Akbar Khan passes awayKolkata: Sarod maestro Ustad Ali Akbar Khan died on Friday in San Francisco in the US after a prolonged kidney ailment, according to a family friend here. 88-year-old Khan died at his music centre at 10 am IST, Rabin Pal, the secretary of sitarist Pandit Ravi Shankar, said. He is survived by wife Mary, three sons and a daughter. Pal, a family friend of the sarod maestro, said that he was informed about the death of Khan by the Ustad’s family in San Francisco. Khan’s secretary in Kolkata Ashish Roy said the maestro, who was on dialysis, had been ailing for over four years and his condition had deteriorated in the last four months. A recipient of Padma Bhushan and Padma Vibhushan, Khan was a colossus in the world of Indian classical music for the last five decades. Source: LatestNews-Home - Livemint.com | 19 Jun 2009 | 8:01 am Govt fixes 3G spectrum reserve price at Rs 4,040 crThe government on Friday fixed a reserve price of Rs 4,040 crore for auction of 3G spectrum, a move that would help it garner at least Rs 32,320 crore.Source: India Business News | Business News - Times of India | 19 Jun 2009 | 7:45 am State-run banks may resist bigger rate cutsMUMBAI (Reuters) - Indian banks are likely to resist mounting government pressure to sharply cut rates as they grapple with expensive deposits raised at the height of the credit crisis and rising bond yields.Source: Reuters: Money News | 19 Jun 2009 | 7:37 am Govt fixes 3G spectrum reserve prices at Rs4,040 crNew Delhi: Paving the way for unleashing of next generation mobile telephony, the government on Friday fixed reserve price of Rs4,040 crore for auction of 3G spectrum, a move that would help it garner at least Rs32,320 crore. A consensus between finance minister Pranab Mukherjee and telecom minister A. Raja was arrived at as the two met Prime Minister Manmohan Singh for the approval of the reserve price, based on which the process of bidding would start soon. Initially six private operators apart from state owned MTNL and BSNL would be allowed to offer 3G services that enables high speed internet, videos and many other value-added services on mobile phone. A source close to the development said the issue would now go to empowered group of ministers for fine-tuning and hopefully the programme for bidding and other details would get a nod soon. Raja had met Mukherjee earlier this week too as the finance ministry was suggesting the doubling of reserve price from Rs2,020 crore being favoured by Department of Telecom and hence the two ministries had got engaged in a discussion for consensus. While the government would get at least Rs24,240 crore from six operators that are chosen after the bids, MTNL and BSNL would shell out another Rs8,080 crore, source said. After the issue is cleared by EGOM, the telecom ministry will announce the detailed programme for the auction which will include pre-bid conference in the next couple of weeks, source said. Sources said the auction may start by the middle of August. The telecom ministry had earlier recommended a reserve or minimum price of Rs2,020 crore which was not accepted by the ministry of finance who had asked the telecom ministry to double it. The likely contenders for the 3G spectrum may include Bharti Airtel, Vodafone, Reliance Communication, Tatas and a few other new private telecom operators. Similarly, on the lines of 3G the government will also auction spectrum for wireless broadband services known as WiMax. The telecom ministry had recommended pan-India reserve price of Rs1,010 crore for wireless broadband services whereas ministry of finance had doubled it in this case too. Its was, however, not immediately ascertained where this also figured in the discussions with the Prime Minister on Friday. Sources, however, said there could be a consensus on this also. Source: LatestNews-Home - Livemint.com | 19 Jun 2009 | 7:29 am Protectionism would deepen recession: SharmaUnion commerce and industry minister Anand Sharma has warned countries trying to introduce protectionist measures that this would be counter-productive, thus deepening the recession.Source: Daily News & Analysis: Money News | 19 Jun 2009 | 6:59 am Under pressure, Ambanis may have to patch upFamily and well-wishers are seeing an adverse Bombay HC judgement on KG basin natural gas as an opportunity for brothers Anil and Mukesh to mend fences.Source: India Business News | Business News - Times of India | 19 Jun 2009 | 6:24 am Nuclear power generator Exelon cuts 500 jobsWashington: Exelon, the largest US operator of nuclear power plants, announced Thursday it was imposing 500 job cuts to cope with tough economic times. The spending cuts will achieve about $350 million in operations and maintenance savings in 2010, a nearly 3.5% reduction from 2009 levels, the Chicago-based company said in a statement. “Included in the spending cuts will be the elimination of approximately 500 positions, mostly in corporate support functions,” it said. Some 400 job losses would be at corporate headquarters while 100 “management level positions” at Exelon’s ComEd utility in Illinois will also be “eliminated.” Exelon and ComEd expect to complete most job reductions by August 31. “Eliminating even a single job is painful, but we must reduce the size of our employee team in order to achieve the leaner and more efficient organizational structure required by today’s difficult economic and business circumstances,” company chief executive John Rowe said. The company said it had also revamped its senior executive team and structure to reflect a “leaner corporate management model” following “economic challenges confronting all parts of Exelon’s business and industry.” Taking into account job reductions, changes to the company’s compensation program and other cuts, Exelon projects a nearly 3.5% decrease in year-over-year operations and maintenance spending, from $4.5 billion in 2009 to $4.35 billion in 2010. Exelon is making a hostile takeover bid for New Jersey-based NRG Energy in a $5 billion deal that would create the nation’s largest power. Source: World Business - Livemint.com | 19 Jun 2009 | 6:08 am Billionaire Stanford surrenders to FBI in a bank fraudHouston:Texas billionaire Allen Stanford will appear in a federal court in Virginia on Friday over allegations of massive fraud involving his Antigua bank, US officials said after he surrendered to the FBI. Stanford is expected to be transferred to Houston after his initial court appearance to face criminal charges in a sealed indictment, a federal official told the agency on condition of anonymity. The golf and cricket promoter already faces civil charges brought by the US Securities and Exchange Commission (SEC) that he fraudulently sold $8 billion in certificates of deposit with improbably high interest rates from his Stanford International Bank Ltd, headquartered in Antigua. Stanford (59) was spending the night in a Virginia jail and was due to appear before a federal magistrate judge on Friday morning in Richmond, the federal official said. “He surrendered,” Dick DeGuerin, Stanford’s Texas attorney, told agency by telephone on Thursday after speaking with his client. “He’s in FBI custody.” The Justice Department and Federal Bureau of Investigation declined to comment on his arrest. Justice Department officials, including the US attorney from Houston, plan to hold a news conference on Friday in Washington to announce the criminal charges. Stanford, who holds dual US and Antigua and Barbuda citizenship, denies any wrongdoing. “If the SEC had not come in and disemboweled a living, breathing strong organization the way they did, there’s no question on God’s green earth that everyone would have been made whole and we would have had a lot of money left over,” Stanford told the agency in an interview in April. Generous Sports Patron The first American to be knighted by Antigua and Barbuda in 2006, Stanford made his first fortune in real estate in the early 1980s and expanded the family firm into a global wealth management company. Before the SEC leveled the fraud charges, his personal fortune was estimated at $2.2 billion by Forbes magazine. Stanford was a generous sports patron and owned homes in Antigua, St. Croix, Florida and Texas. To date, the only Stanford official to have faced federal charges is Laura Pendergest-Holt, the chief investment officer for the Stanford Financial Group. She was arrested by the FBI in February and later freed on bail. Pendergest-Holt and James Davis, Stanford’s one-time roommate at Baylor University who served as the company’s chief financial officer, were both named in the SEC’s civil complaint. Davis has not been charged with criminal activity and is cooperating with federal authorities, although his attorney has said he expects his client to be indicted. Nigel Hamilton-Smith, the Antiguan official named to oversee the liquidation of the offshore bank that was run by Stanford, has accused the tycoon of using client funds to pay for jets, lavish homes and yachts. Stanford’s Antiguan liquidators and the company’s US based receiver have been locked in a battle over control of the offshore bank. Ralph Janvey, the Dallas lawyer appointed by US district judge David Godbey to oversee Stanford’s assets and operations, has filed court papers arguing he should oversee the Antigua bank along with the US based Stanford entities he controls. The Antiguan liquidators disagree. Source: World Business - Livemint.com | 19 Jun 2009 | 5:03 am Microsoft to provide free anti-virus softwareSan Francisco: Microsoft said on Thursday it will soon release free anti-virus software so people on tight budgets won’t skimp on protecting their computers from hackers. A beta, or test, version of Microsoft Security Essentials (MSE) will be publicly available for download beginning 23 June in Brazil, Israel and the US. It is to be rolled out in other countries later in the year. “Cost and performance barriers prevent many consumers from using up-to-date security software to protect their PCs,” Microsoft said in a statement. The US software giant described MSE as “a no-cost anti-malware solution that provides consumers with quality protection from threats including viruses, spyware, rootkits and trojans.” The technology firm said that effective anti-virus protection is a “must-have” for computer users given increases in the number and severity of attacks by cyber criminals using malicious software to infect machines. Paying to buy and routinely update computer security software “does not meet the needs of many consumers,” including those in emerging markets where money and resources are scarce, according to Microsoft. The Redmond, Washington-based company said it will automatically update MSE for users. Source: Tech News - Livemint.com | 19 Jun 2009 | 4:18 am Rupee up three paise against dollarAt the Interbank Foreign Exchange (forex) market, the domestic currency gained three paise to quote at 48.16 over Thursdays close of 48.19/20.Source: India Business News | Business News - Times of India | 19 Jun 2009 | 4:12 am Protectionism would deepen recession: SharmaCommerce and industry minister Anand Sharma has warned countries trying to introduce protectionist measures that this would not only be counter-productive, but also deepen the recession and delay recovery.Source: India Business News | Business News - Times of India | 19 Jun 2009 | 3:59 am Does low inflation mean lower prices for aam admi?Does low inflation mean that prices of 'atta-dal' and 'aloo-pyaz' have started falling or are likely to fall? That's the aam admi's concern.Source: India Business News | Business News - Times of India | 19 Jun 2009 | 3:37 am India Inc investment bails out US companies: ReportNew Delhi, June 18 Direct investments by Indian firms in the US are bailing out companies on the brink of closure and generating more employment.Source: Business Line - Home Page | 19 Jun 2009 | 12:00 am SEBI brings in anchor investors for public issuesMumbai, June 18 In what could create a significant impact on pricing of initial public offers this year, the board of Securities and Exchange Board of India on Thursday approved the concept of “anchor investor” in public issues.Source: Business Line - Home Page | 19 Jun 2009 | 12:00 am Inflation turns negative on base effectNew Delhi, June 18 The annual Wholesale Price Index-based inflation rate fell in the first week of June, the first time in well over three decades, mainly on account of a statistical base effect. Responding to the headline inflation turningSource: Business Line - Home Page | 19 Jun 2009 | 12:00 am Day Trading GuideInitiate fresh short-position if DLF declines below Rs 310, with tight stop-loss. ICICI Bank is experiencing selling interest at higher levels. We recommend a sell in this counter. Utilise rallies to shortSource: Business Line - Home Page | 19 Jun 2009 | 12:00 am Entry load waiver: Investors get to bargain-huntBL Research Bureau Investors can look forward to lower costs on their mutual fund purchases and greater bargaining power with their advisors, after SEBI’s Thursday move to do away with entry loads charged by fund houses for their open-endSource: Business Line - Home Page | 19 Jun 2009 | 12:00 am AP Govt may scrap Maytas-led Metro dealHyderabad, June 18 The Andhra Pradesh Government is mulling options of scrapping the controversial Rs 12,200-crore-Hyderabad Metro Rail Project deal with the Maytas Infra-led consortia.Source: Business Line - Home Page | 19 Jun 2009 | 12:00 am DoT has enough 3G bandwidth for 11 playersNew Delhi, June 18 With the Defence Ministry agreeing to vacate more spectrum, the Department of Telecom now has enough bandwidth to accommodate as many as 11 players for offering third generation mobile services in sixSource: Business Line - Home Page | 19 Jun 2009 | 12:00 am HDIL (Rs 221.3): SellWe recommend a sell in Housing Development & Infrastructure Ltd (HDIL) from a short-term trading perspective. It is evident from the charts of HDIL that it was on intermediate-term uptrend between March and June from Rs 62 to Rs 329. TheSource: Business Line - Home Page | 19 Jun 2009 | 12:00 am Online air travel bookings fall post fuel surcharge hikeMumbai/New Delhi, June 18 No sooner did airlines hike the fuel surcharge than customer interest in air travel has waned.Source: Business Line - Home Page | 19 Jun 2009 | 12:00 am Cyclonic whirl hovers over Bay as prelude to ‘low’The US Naval Research Lab-Monterey has put under ‘investigation’ a growing churn in the northeast Bay of Bengal and given it the moniker ‘92B Invest.’Source: Business Line - Home Page | 19 Jun 2009 | 12:00 am Sebi ushers in the 'anchor investor'Companies looking to make public issues of equity but afraid to hit the market in view of the choppiness can now have the security of an 'anchor investor'.Source: Daily News & Analysis: Money News | 18 Jun 2009 | 10:09 pm The market gap-ups have to get filledIt was advocated that leveraged players would be trapped on the wrong foot if they went long after the election results triggered a frenzied buying atmosphere.Source: Daily News & Analysis: Money News | 18 Jun 2009 | 10:07 pm PPAs key to gains for ADAG entitiesPower laws in the country may force the Anil Ambani group to accumulate most of the gains in Reliance Natural Resources (RNRL).Source: Daily News & Analysis: Money News | 18 Jun 2009 | 10:06 pm Time for private contracts, say infra cosAfter staying away for over six months for various reasons, they have started looking at these projects again as the situation on the ground improves.Source: Daily News & Analysis: Money News | 18 Jun 2009 | 10:02 pm India may dilute stand on farm product importsIndia has indicated that it may dilute its stand on market access for foreign farm products in an effort to breathe new life into the Doha Round of WTO trade talks.Source: India Business News | Business News - Times of India | 18 Jun 2009 | 9:05 pm Income funds: The myth of stable returnsClose to retirement, Vivek Daga wanted to move his equity investments to debt. But when he looked at the returns of the funds that invested in long-term bonds, he was surprised. The funds yielded returns ranging from -4.94 per cent to 30.53 per cent.Source: Business Standard | Front Page Headlines | 18 Jun 2009 | 7:22 pm Govt mulls higher reserve price for 3G auctionsThe government is trying to work out a consensus on a higher reserve price for the auction of spectrum, radio frequencies that enable mobile telephony, for third-generation (3G) telecom services between a price band of Rs 4,080 crore and Rs 3,540 crore.Source: Business Standard | Front Page Headlines | 18 Jun 2009 | 7:20 pm Inflation falls into negative territory after three decadesThe inflation rate fell into negative territory for the first time in more than three decades, with analysts describing it as a temporary phenomenon since economic demand has not contracted.Source: Business Standard | Front Page Headlines | 18 Jun 2009 | 7:19 pm Anchor investors in; MF entry load outThe Securities and Exchange Board of India (Sebi) today announced a series of measures to boost investor confidence in the primary market and mutual funds and reduce transaction costs.Source: Business Standard | Front Page Headlines | 18 Jun 2009 | 7:18 pm Nasa heads to moon as panel weighs its futureCape Canaveral: As Nasa prepared to launch its debut mission in a program aimed at returning astronauts to the moon, a presidential panel on Wednesday began looking at alternative ways to get there and whether the United States should even go. The Lunar Reconnaissance Orbiter, scheduled to launch from Cape Canaveral Air Force Station at 5:12 pm (2112 GMT) on Thursday, is designed to map the lunar surface so Nasa can find safe and scientifically interesting landing spots for future human missions. The US is shifting the focus of its human space program from research and technology development in low-Earth orbit with the space shuttle and International Space Station to an exploration initiative. That would culminate in the return of US astronauts to the moon in 2020 — a half-century after the pioneering Apollo lunar landings of 1969 to 1972. Nasa plans to retire the shuttle fleet in 2010 after eight more missions to complete space station construction. It would then shift funding to ramp up development of a pair of expendable rockets, known as Ares, and a beefed-up Apollo-style capsule called Orion that can ferry crews to the moon and other destinations. Orion’s debut flight to the space station is targeted for 2015 — five years after the shuttle stops flying. With costs estimated at more than $100 billion for a lunar excursion and concerns about the five-year gap, President Barack Obama has ordered a top-level review of the US human space program. Hearings in Washington opened on Wednesday with commercial companies, Nasa and other space advocates laying out options for flying astronauts to the space station and getting to the moon. Panel members will also consider whether the moon should even be a destination. The panel, headed by retired Lockheed Martin chief executive Norm Augustine, is expected to issue a report in August. Proposing Alternatives At the meeting, United Launch Alliance, a Boeing and Lockheed Martin joint venture that markets the unmanned Atlas and Delta rockets, pitched an upgraded version of its rockets to replace Nasa’s planned Ares booster, an option a Nasa-backed study found to be less expensive. But the consultancy that prepared the study cautioned that would only be cheaper if Nasa dropped plans for a second Ares rocket, a heavy-lifter that could carry cargo to the moon. Nasa’s original plan for the new exploration initiative, known as Constellation, was a complete program that folded together the cost of developing both versions of the Ares rocket, using one as a predecessor for the other. “When one starts contemplating replacing pieces of that architecture, all kinds of things begin to happen,” said Gary Pulliam of The Aerospace Corporation. Another company, Space Exploration Technologies, known as SpaceX, proposed another alternative to carry crews. SpaceX founder Elon Musk said his firm’s Dragon capsule, already purchased by Nasa to haul cargo to the space station, could be used to transport astronauts by adding an escape system and making minor upgrades. “The whole purpose of SpaceX from the beginning has been human space flight. That’s why I created it,” said Musk. “Dragon has five windows. You don’t need windows for cargo.” Source: Tech News - Livemint.com | 18 Jun 2009 | 7:16 pm German firms looking to ink research pacts in IndiaBangalore: Almost nine months after India and Germany signed an agreement to forge alliances in science and technology research and commercialization, at least a dozen German companies and research institutes are close to signing business deals and research collaborations. Albrecht Laufer, chief executive of BioRegioN, a network of at least 200 German biotech companies, said the areas of interest include vaccines, immunology and diagnostics. Laufer, who is participating in Bangalore Bio 2009, a three-day annual biotech event that started on Thursday, is in talks with Indian vaccine companies such as Panacea Biotec Ltd, Serum Institute of India Ltd and Shantha Biotechnics Ltd for a new tuberculosis vaccine candidate developed by Vakzine Projekt Management, a German start-up company. The vaccine is completing phase I trials in Germany. This molecule is derived from the most widely used live vaccine today—BCG, or bacillus of Calmette and Guérin—but has been genetically engineered to be more effective. It is being hailed by the medical community as the first promising vaccine candidate in about 80 years. Similarly, IBA GmbH, a cloning system and biology tool maker, is looking for partners in India to extend its platform technologies and build new ones. Lionex Diagnostics and Therapeutics GmbH, started by a scientist of Indian origin at the Helmoltz Center for Infection Research in Braunschweig, is in talks with Indian biotech and pharma companies to develop and manufacture diagnostic kits in India. Referring to the synergy between the Indian and German biotech, Laufer said, “German start-ups don’t have muscle, but Indian companies have muscle.” Regenerative Medicine Initiative Germany, or RMIG, is tying up with C.M. Habibullah and his team in Hyderabad, which uses stem cells for liver research at the Stem Cells Research and Therapy Centre. “We’re exploring opportunities for stem cell clinical trials in India,” said Joeri Borstlap, coordinator of RMIG. Source: World Business - Livemint.com | 18 Jun 2009 | 6:52 pm Making Opera really mobileWith better handsets and more affordable unlimited mobile data plans, browsing your favourite websites on the mobile is easier than ever before. But what about finding the best mobile websites? What is the exact URL for the new York Times’ mobile website? Is it m.nytimes.com or mobile.nytimes.com? Googling for these links on the mobile can be pain. Click here to watch video What if you could do all the hunting for your favourite mobile websites on your desktop, bookmark them and then seamlessly sync them to your mobile phone? You can do this by using the Opera Link service offered by the makers of the somewhat popular desktop browser. What Opera Link does is allow you to add bookmarks on your desktop and then with just a single click sync them across all your browsers both on mobile and desktop. See the video for an explanation of this remarkably painless process and a live demonstration of bookmarking and syncing. Source: Tech News - Livemint.com | 18 Jun 2009 | 6:29 pm Karnataka nod for Premji Foundation to set up varsityThe Azim Premji Foundation (APF) of Wipro chairman Azim Premji will soon be able to set up a private university in Karnataka, the state's first, with the cabinet approving a bill to facilitate it, Parliamentary Affairs Minister S. Suresh Kumar said Thursday.Source: IndiaeNews.com: Business News | 18 Jun 2009 | 6:00 pm Chhattisgarh villagers protest industrial pollutionNearly 250 villagers staged a protest here Thursday against industrial pollution from sponge iron units that they claimed was causing skin cancer and other serious diseases among the people, especially children.Source: IndiaeNews.com: Business News | 18 Jun 2009 | 5:00 pm Punjab's economic situation worsening, claims a panelPunjab, once one of the richest Indian states, is now fast becoming poor amid economic challenges like shrinking land holdings, migration and the absence of big industries, a centrally appointed commission said here Thursday.Source: IndiaeNews.com: Business News | 18 Jun 2009 | 3:31 pm Nokia Siemens to upgrade Idea Cellular's networkTelecom equipment manufacturer Nokia Siemens Networks Thursday said it will upgrade Idea Cellular's network in 22 service areas in India.Source: IndiaeNews.com: Business News | 18 Jun 2009 | 3:31 pm India calls for revamp of global energy architectureIndia Thursday called for a 'revamp of the global energy architecture' and creation of new infrastructure to ensure stability in supplies and diversification of resources.Source: IndiaeNews.com: Business News | 18 Jun 2009 | 3:31 pm Hewlett-Packard ties up with Alcatel-LucentTelecom equipment manufacturer Alcatel Lucent has entered into a 10-year agreement with Hewlett-Packard (HP) to market telecom and IT products and services, it was announced Thursday.Source: IndiaeNews.com: Business News | 18 Jun 2009 | 3:31 pm Momentive Performance sets up new plant in ChennaiUS-based silicones manufacturing company Momentive Performance Materials Inc Thursday inaugurated a new manufacturing facility near here.Source: IndiaeNews.com: Business News | 18 Jun 2009 | 3:30 pm Industry worried by high food price, not negative inflationRising food prices, not negative inflation, is what alarms corporate India.Source: IndiaeNews.com: Business News | 18 Jun 2009 | 2:32 pm Rich can gamble in Goa instead of Nepal: Congress leaderAmid strident criticism against the proliferation of offshore casinos by the Goa unit of Congress' women wing, senior party leader Prabha Thakur Thursday endorsed the industry that has rapidly grown during the Congress-led alliance rule in the coastal state.Source: IndiaeNews.com: Business News | 18 Jun 2009 | 2:30 pm Regulator for Indian biotech industry on anvilIndia will soon have a regulatory authority for the biotech sector, Minister of State for Science and Technology Prithviraj Chavan said here Thursday.Source: IndiaeNews.com: Business News | 18 Jun 2009 | 1:32 pm
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