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See EPS of Rs 2526, no subsidy burden in FY10: GailRK Goel, CFO, Gail, does not expect any subsidy burden in FY10. He said profitability will increase by 25% on no subsidy. Goel sees earnings per share of Rs 2526 for FY10.Source: Moneycontrol Top Headlines | 3 Jul 2009 | 1:43 pm Govt may up fuel prices once more by October - HDFC Bank - Reuters India
Source: Business - Google News | 3 Jul 2009 | 1:00 pm India guar futures lower on monsoon spread - Reuters India
Source: Business - Google News | 3 Jul 2009 | 12:45 pm Govt may up fuel prices once more by October - HDFC BankMUMBAI (Reuters) - HDFC Bank expects to see another round of domestic fuel price hikes by October due to rising crude prices, it said in a note on Friday.Source: Reuters: Money News | 3 Jul 2009 | 12:43 pm Indian Rupee Has First Weekly Gain Since May on Growth Optimism - Bloomberg
Source: Business - Google News | 3 Jul 2009 | 12:38 pm German lower house approves "bad bank" planBERLIN (Reuters) - Germany's Bundestag lower house of parliament approved a "bad bank" plan on Friday that aims to relieve banks by enabling them to shift billions of euros in troubled assets off their books.Source: Reuters: Money News | 3 Jul 2009 | 12:33 pm To produce 1.5 mt HR coils in next two quarters: IspatAnil Sureka, EDFinance, Ispat Industries, said, the company was not increasing prices as it was waiting for the budget outcome. The demand for hotrolled coils (HRC) had picked up since April this year, he said, adding, We will produce 1.5 million tonne (mt) of HRC in the next two quarters. He expects to achieve 3 mt output in FY10.Source: Moneycontrol Top Headlines | 3 Jul 2009 | 12:23 pm Many states not carrying out de-hoarding operations: Pranab - Hindu
Source: Business - Google News | 3 Jul 2009 | 12:21 pm Two-hour strike by Air India staff, management unfazed - Hindu
Source: Business - Google News | 3 Jul 2009 | 12:21 pm Govt to recall 4 govt directors from Satyam board - Reuters India
Source: Business - Google News | 3 Jul 2009 | 12:17 pm US stocks plunge on dismal job figures!US stocks plunged Thursday after worse-than-expected monthly jobless figures suggested the country`s worst recession since the 1930s is still going strong.Source: Zee News : Business | 3 Jul 2009 | 12:16 pm Warren Buffett donates $1.5 bn Berkshire shares!Billionaire investor Warren Buffett has donated about USD 1.5 billion of Berkshire Hathaway Inc stock, in connection with his 2006 pledge of his holdings to charitable causes.Source: Zee News : Business | 3 Jul 2009 | 12:16 pm Sensex wipes off early losses ahead of Rail Budget!Expectations ran high on the bourses in early trade on Friday as the key indices went up on investors buying power and capital goods stocks.Source: Zee News : Business | 3 Jul 2009 | 12:16 pm Budget of the people, for the people, by the people: Mamata!Amid expectations of improvement in Railway amenities and food served in trains, Railway Minister Mamata Banerjee would present a "pro-people" Budget in Parliament on Friday.Source: Zee News : Business | 3 Jul 2009 | 12:16 pm Largest commercial satellite for cellphones launched!A new satellite designed to allow the convergence of cellphones and satellite phones throughout the US was successfully launched Thursday, mobile communications provider TerreStar announced.Source: Zee News : Business | 3 Jul 2009 | 12:16 pm Rupee falls 18 paise against dollar in early trade!The Indian rupee on Friday lost 18 paise against the dollar in early trade on strong demand for the greenback from importers amid the US currency rising against other currencies.Source: Zee News : Business | 3 Jul 2009 | 12:16 pm Sensex falls over 150 points after weak global cues!The Bombay Stock Exchange benchmark Sensex fell by over 150 points in the opening trade on Friday on heavy selling by funds in heavyweight stocks amid weak Asian stock markets.Source: Zee News : Business | 3 Jul 2009 | 12:16 pm Rail stocks surge ahead of Railway Budget!Shares of engineering and wagon manufacturing firms surged by up to 4 per cent on the Bombay Stock Exchange in early trade today ahead of the Railway Budget 2009-10.Source: Zee News : Business | 3 Jul 2009 | 12:16 pm Wage cut if you strike, AI tells staff!AI warned its employees of wage and allowance cuts if they participated in the two-hour strike.Source: Zee News : Business | 3 Jul 2009 | 12:16 pm Oil falls in Asian trade on US economic concerns!Oil fell further during Asian trade on Friday as investors continued to fret about the state of the US economy where the jobless rate has surged to a 26-year high, analysts said.Source: Zee News : Business | 3 Jul 2009 | 12:16 pm Oracle, Sun deal to be filed to EU in July: sourceBrussels: Oracle Corp’s plan to buy computer maker Sun Microsystems will be notified to European Union antitrust authorities this month, a source familiar with the deal said on Friday. Oracle, the world’s No. 3 software maker, announced in April a $7 billion deal to buy Sun, the world’s fourth-largest maker of server computers and also the developer of Java and Solaris software. “The deal will be notified to the European Commission this month,” the source told the agency. Oracle failed last month to win fast-track approval from US antitrust regulators, who wanted more information on Java licensing rights. “Information on Java licensing rights will be included in the EU notification,” the source said. Sun’s Java software is one of the world’s most widely used computer languages. Oracle CEO Larry Ellison has said he wants to tweak Java software so that it is easier to use on smartphones and netbook computers. A lawyer for Oracle said last month he expected the company soon to win US antitrust approval and to close its purchase of Sun by 31 Aug. The European Commission, which monitors mergers and takeovers in the 27-country European Union, has 25 working days to review such plans in the first phase. This can be extended to 90 working days if an in-depth investigation is required. It can either approve the deal as it stands, order modifications, or block the transaction. Antitrust experts have said they saw no serious antitrust objections to the deal as there was little overlap in the companies’ products. The Commission cleared Oracle’s takeover of software rival PeopleSoft in 2004. The US Justice Department had sought to block the purchase but the move was rejected by a US district court. Source: Tech News - Livemint.com | 3 Jul 2009 | 12:12 pm Oracle, Sun deal to be filed to EU in July: sourceBrussels: Oracle Corp’s plan to buy computer maker Sun Microsystems will be notified to European Union antitrust authorities this month, a source familiar with the deal said on Friday. Oracle, the world’s No. 3 software maker, announced in April a $7 billion deal to buy Sun, the world’s fourth-largest maker of server computers and also the developer of Java and Solaris software. “The deal will be notified to the European Commission this month,” the source told the agency. Oracle failed last month to win fast-track approval from US antitrust regulators, who wanted more information on Java licensing rights. “Information on Java licensing rights will be included in the EU notification,” the source said. Sun’s Java software is one of the world’s most widely used computer languages. Oracle CEO Larry Ellison has said he wants to tweak Java software so that it is easier to use on smartphones and netbook computers. A lawyer for Oracle said last month he expected the company soon to win US antitrust approval and to close its purchase of Sun by 31 Aug. The European Commission, which monitors mergers and takeovers in the 27-country European Union, has 25 working days to review such plans in the first phase. This can be extended to 90 working days if an in-depth investigation is required. It can either approve the deal as it stands, order modifications, or block the transaction. Antitrust experts have said they saw no serious antitrust objections to the deal as there was little overlap in the companies’ products. The Commission cleared Oracle’s takeover of software rival PeopleSoft in 2004. The US Justice Department had sought to block the purchase but the move was rejected by a US district court. Source: LatestNews-Home - Livemint.com | 3 Jul 2009 | 12:12 pm BSE Sensex rises 1.7 pct; budget awaited - Reuters India
Source: Business - Google News | 3 Jul 2009 | 12:11 pm Govt to recall 4 govt directors from Satyam boardNEW DELHI (Reuters) - Four of the six government nominated directors will be withdrawn from the board of Indian outsourcer Mahindra Satyam Ltd, the chairman of India's Company Law Board (CLB) said on Friday.Source: Reuters: Money News | 3 Jul 2009 | 12:03 pm BSE Sensex rises 1.7 pct; budget awaitedMUMBAI (Reuters) - The BSE Sensex shrugged off an early fall and rose 1.7 percent on Friday, as investors covered their short positions ahead of an updated budget on Monday and helped the market to post its second consecutive weekly gain.Source: Reuters: Money News | 3 Jul 2009 | 12:00 pm Two-hour strike by Air India staff, management unfazedEmployees of national carrier Air India went on a two-hour strike at airports across the country on Friday to protest the delay in salary payments, but it failed to move the airline management.Source: India Business News | Business News - Times of India | 3 Jul 2009 | 11:59 am HIGHLIGHTS - Railway budget focuses on fares, servicesNEW DELHI (Reuters) - The railway minister unveiled a mix of populist measures, including cheap tickets for the poor and no increase in freight or passenger fares, as well as steps to boost the sprawling system's efficiency and finances.Source: Reuters: Money News | 3 Jul 2009 | 11:57 am Corporate India hails Rail BudgetNew Delhi: Corporate India on Friday hailed the railway budget 2009-10, which proposed no hike in freight rates or passenger fares, and termed it as “industry friendly and progressive.” The announcements like linking industrial clusters to markets, introduction of projects under PPP mode and setting up of land banks for commercial and industrial use of railway land would lead to economic development, the industry said. “This budget is unique in the way inclusivity and overall development has been the focus without losing focus on safety, technology adoption and commercialization...,” CII president Chandrajit Banerjee said in a statement. It has provided opportunities for industry though its capacity expansion programme and setting up infrastructure through PPP mode, he said. “The railway budget 2009-10 is clearly a progressive and a forward looking budget”, FICCI president Harsh Pati Singhania said. Railways minister Mamta Banerjee has mooted a number of projects that would carry railways to the next technology level, he said. The industry said Banerjee has presented a people and industry friendly budget since no increase in passenger fare and freight tariff has been proposed. “The industry is pleased that the minister has not increased freight tariff...,” FICCI said. Source: LatestNews-Home - Livemint.com | 3 Jul 2009 | 11:56 am No hike in passenger fares, freight ratesNew Delhi: Union railway minister Mamata Banerjee unveiled a mix of populist measures, including cheap tickets for the poor and no increase in freight or passenger fares, as well as steps to boost the sprawling system’s efficiency and finances. Friday’s railway budget speech underscored the Congress party-led government’s focus on “inclusive growth” after it was re-elected by a wider-than-expected margin in May. Prime Minister Manmohan Singh’s government will present its budget on Monday. “The old mindset of economic viability should be substituted by social viability,” the railway minister said in an address to Parliament.  Union railway minister Mamata Banerjee shows kind gestures as former railway minister Lalu Prasad Yadav reacts during presentation of the Rail Budget 2009-10 in the Lok Sabha in New Delhi on Friday. PTI / Courtesy Lok Sabha TV Over the five years through March 2009, India’s railways generated a cash surplus of about $18.8 billion. She also said the group will build a 1,000 megawatt electricity plant -- India suffers from a severe energy deficit -- to power electric locomotives. She said the system would look to introduce double-decker trains, and take advantage of its fibre-optic communications network. “I visualise an eastern industrial corridor developing alongside the eastern dedicated freight corridor,” she said in the ministry’s annual budget address. Arun Kejriwal, research strategist at broker KRIS in Mumbai, said the speech gave a clue to the government’s policy leanings. Also Read Budget 2009 “One key takeaway that probably is an insight for the main budget is that the ‘aam admi’, the common man, seems to be an underlying concern,” Kejriwal said. “That gives you a hint that if anybody is expecting great things, a forward-looking reformist budget, I’m not sure that is the right way to look at it.” With a 63,327-kilometre network, the railways play a key role in Indian life, transporting more than 18 million passengers and more than 2 million tonnes of freight daily. But the system is plagued by crowding and outdated technology. Every day, about 8 million passengers cram onto commuter trains in the financial hub of Mumbai, with roughly a dozen daily fatalities. Passengers First Banerjee said meeting needs of passengers is more important than financial performance. To that end she said 50 stations would be upgraded to international standard, and she outlined plans to improve toilets, food and water availability, and shopping at stations. For the poorest passengers, for whom railway transport is the most popular form of long-distance travel, Banerjee said fares would cost just Rs25 for trips up to 100 kilometres. She set a target for freight traffic in the fiscal year that ends in March 2010 of 882 million tonnes, up 6% from a year earlier. Freight traffic increased 5% in the recently completed fiscal year. There was little early reaction from the markets. The yield on the most actively traded 7.94% bond maturing in 2021 was unchanged at 7.03% while the benchmark stock market was 0.2% up. Highlights of the Railways Budget for 2009-10 2009-10 Projections Expansion • To invest Rs18.8 billion in freight corridor project in 2009-10 • To spend Rs33.93 billion for wagons and locomotives in 2009-10 • Kolkata metro to be expanded • To set up new coach factory • To set up a 1,000 megawatt power plant Funding • Indian Railways Finance Corp (IRFC) to borrow Rs90 billion from the market in 2009-10 • IRFC to issue tax free bonds • Rail Vikas Nigam Ltd. to borrow Rs1.7 billion from the market in 2009-10 • Public-private partnership project investments seen at Rs1 billion in 2009-10 • To set up panel to look at innovative financing for unviable projects New Trains, Initiatives • 57 new trains, extension of 27 trains and increase in frequency of 13 trains. • To introduce air-conditioned double-decker trains • Special trains for perishable farm produce • Works for 7 new lines, broadening of 17 lines and doubling of 13 lines to be taken up • To introduce 12 non-stop trains • To upgrade 50 stations to international standards • To develop multi-functional complexes at railway stations Other Measures • A panel will look at the utilisation of the railways’ optic fibre network • Will put railway land along freight corridors to productive use • Will encourage private operation of freight terminal Source: Home - Livemint.com | 3 Jul 2009 | 11:47 am Section 377 and Economic Survey - Indian Express
Source: Business - Google News | 3 Jul 2009 | 11:44 am Delhi HC asks DoT to consider S Tel applicationNew Delhi: Delhi high court has quashed the department of telecom notification fixing 25 September, 2007 as cut-off date for granting telecom licenses bundled with startup 2G spectrum. The court at the same time asked the DoT to consider Chennai-based S Tel’s application to start operations in 16 circles. Justice G S Sistani held that the DoT could not arbitrarily fix a cut off date for capping the number for licenses bundled startup spectrum and quashed the press note issued on 10 October, 2008 regarding this. “The respondent has failed to satisfy the court as to how any public interest would be affected in the matter. The impugned press release dated 10, October, 2008 is quashed,” Justice Sistani said. Earlier, the deadline for allocation of license was 1 October, 2007. However, in January 2008, DoT had amended the criteria and said that due to a large number of applications, requests prior to 25 September, 2007 would be considered only. Rejecting it, the court said,“the DoT could not be allowed to arbitrarily change the cut-off date and that too without any justifiable reasons.” The court’s direction came over a petition filed by Chennai-based S Tel, whose application for license in 16 circles was turned down as it had applied on 28 September, 2007, three days after the cut-off date. The court directed DoT to consider the application of S-Tel submitted on 28, September, 2007 for operations in 16 circles. “The DoT is directed to consider the applications of S Tel on 28 September, 2007,” the court. The court also pulled up DoT over taking contrary stand against Telcom Regulatory Authority of India recommendation. “On one hand DoT has accepted the recommendation of the Trai in the impugned press note, but acted contrary there to by amending the cut-off date and thus placed a cap on the number of same providers,” the court said. It also rejected DoT’s argument that the date was advanced keeping in view a large number of applicants. “It is without any force in view of the fact that neither any justification was rendered during argument nor any justification has been rendered in the counter affidavit as to what is the effect of the receipt of large number of applications in view of the fact that a recommendation of the Trai suggests no cap on the number of access service provider in any service,” the court said. Source: LatestNews-Home - Livemint.com | 3 Jul 2009 | 11:40 am Euro May retail sales down by 0.4%London: Retail sales in the 16 countries that use the euro fell in May in a further sign that consumers aren’t optimistic enough about their own futures as unemployment keeps rising. Eurostat, the EU’s statistics office, said on Friday that retail sales in the euro zone fell by 0.4% in May from the previous month, more than reversing the 0.1% increase in April. On a year-on-year basis, retail sales were down 3.3% for the euro zone and 3.1% for the 27-nation EU. Capital Economics’ European economist Jennifer McKeown said, “Friday’s retail sales data did provide some indications that the second quarter of the year was better than the first, especially as recent car registrations figures indicate a pick-up in the car market.” “May’s fall in euro-zone retail sales confirms that high street spending remains depressed, but the data still points to a more modest economic contraction in Q2 than in Q1,” said McKeown. She noted that if sales were unchanged in June, then retail sales will have only fallen by 0.4% in the second quarter, way better than the 0.9% decline recorded in the first three months of the year. A similarly downbeat picture of the services sector, which includes retailing, emerged in a survey from information services company Markit. Though it revised up its purchasing managers index - a broad gauge of business activity for the euro zone services sector for June to 44.7 from the initial estimate of 44.5, the sector remains mired in recession. Any reading below 50 indicates a contraction in output and the bigger the difference from 50 the greater that fall in output. The overall fall in retail spending has come as consumers have tightened their belts amid mounting fears about their own finances as the number out of work rises. Figures on Thursday from Eurostat showed that the unemployment rate for the euro zone in May stood at a ten-year high of 9.5%, up from April’s 9.3%. Rising unemployment is expected in the markets in light of the ongoing fall in output across Europe in the first quarter of 2009, the euro zone economy saw output plunge by 2.5% as the global recession hit the industrial sector in particular. The scale of the euro zone recession is bigger than that being experienced in the US and Britain, for example, partly because of its dependence on exporting goods. Some analysts think that the euro zone economies should rebalance their economies away from this dependence on exports towards consumption. Governments across the euro zone as well as the European Central Bank will be hoping that falling prices in the year to June (they were down 0.1% on the previous year) and stimulus packages of more government spending and tax cuts will combine to boost consumer spending and help the euro zone pull out of recession. For the EU as a whole, including non-euro members such as Britain and Sweden, retail sales were down 0.5% in May from the previous month, again more than erasing the 0.3% increase recorded in April. Among the 27 EU member states for which monthly data is available, Eurostat said total retail trade rose in four and fell in twelve. The only increases were recorded in Latvia, Belgium, Germany and Romania while the biggest falls were recorded in Lithuania and Austria. Latvia’s increase of 0.9% may be the most surprising as its economy shrank 18% in the first quarter from a year ago. Source: LatestNews-Home - Livemint.com | 3 Jul 2009 | 11:35 am Nitish wants probe into railways’ profits under LaluPatna: Bihar chief minister Nitish Kumar on Friday urged railway minister Mamata Banerjee to order a high-level inquiry into alleged “jugglery” of figures in profits between 2005-06 and 2008-09 during her predecessor Lalu Prasad’s tenure. “It’s high time that the railway minister ordered a high-level probe into her predecessor’s claim of Railways earning huge profits successively during his stint at the Rail Bhavan,” Kumar, a former railway minister during the NDA government, told reporters here. “I’m confident that the profits shown by Lalu Prasad after he took charge of the Railway ministry are a farce. The profits have been orchestrated by jugglery of figures at the cost of passengers,” Kumar said. Kumar said the ‘Tatkal’ scheme of the railways for advance reservation introduced during Prasad’s tenure should also be probed. It should also be found out why high freight charges were being levied on consignments when the railway minister had announced that there would not be a hike. He also appealed to Banerjee to speed up pending railway projects in Bihar, including a coach factory at Harnaut in Nawada, construction of a rail-cum-road bridge over river Ganga connecting Digha to Sonepur, besides a river bridge in Munger and another in Supaul. Source: LatestNews-Home - Livemint.com | 3 Jul 2009 | 11:34 am Close: Populist Rail Budget nudges Sensex by 250 ptsMumbai: Indian shares shrugged off an early fall and rose 1.7% on Friday, as investors covered their short positions ahead of an updated budget on Monday and helped the market to post its second consecutive weekly gain. Rail freight and passenger fares were kept unchanged in a separate budget for the railways presented to parliament on Friday, and the main budget is widely expected to detail plans to further open up the economy and kick off asset sales. Financial stocks, led by mortgage lender Housing Development Finance Corp, rose on hopes for incentives, while infrastructure-related stocks gained in anticipation of higher government spending. Top engineer Larsen & Toubro, state-run utility NTPC and Bharat Heavy Electricals, all rose between 1.5 to 3%. The 30-share BSE index rose 1.74%, or 254.56 points, to 14,913.05 points, with 23 components gaining. The index had slipped as much as 1.1% at one point, in volatile trade. The 50-share NSE Index rose 1.7% to 4,424.25 points. It gained 1% on the week, its 16th weekly rise in 17 and has risen more than half this year on hopes for an economic recovery and expectations for a investor-friendly budget. The market may have run too fast and could be in for disappointment if the budget falls short of expectations, analysts said. There are doubts on how much the cash-strapped government can do to provide an economic stimulus to lift growth, traders said. “I think the expectations are too high, and a knee-jerk reaction on the downside is possible, as it may not satisfy the market,” said R K Gupta, managing director at Taurus Asset Management. HDFC rose 7.7% to Rs2,586.25, while State Bank of India gained 2.9% to Rs1,810.65 and ICICI Bank added 3.1% to Rs754.05. Export-focused technology stocks rose, but gains were muted after US government data showed the US economy shed more jobs than expected in June, dampening the outlook for an economic turnaround there. Top outsourcer Tata Consultancy Services ended up 0.3% at Rs391.40, Infosys, which reports quarterly results next week, rose 0.3% to Rs1,800.90, and Wipro gained 1.1% to Rs385.55. Motorcycle maker Hero Honda, however, fell 1.1% to Rs1,369.60 on worries over growth outlook, a day after auto fuel prices were raised by as much as 10%. In the broader market, advances narrowly beat declines in the ratio of 1.06:1 on above average volume of 355 million shares. Source: Home - Livemint.com | 3 Jul 2009 | 11:30 am Opec president satisfied with current oil priceBeijing: Opec is satisfied with the current crude oil price, the president of the Organization of Petroleum Exporting Countries, Angolan oil minister Jose Botelho de Vasconcelos said. Asked if he was happy with the current oil price, he said, “Yes, I think so, because the price is good for all of us, consumers and producers. The economy has recovered a little bit and the price is balanced. “We don’t have a price target,” he said, speaking on the sidelines of a conference in Beijing. He said a price between $68 and $71 per barrel was appropriate, Xinhua news agency reported. Opec’s job was to balance and stabilise the market, with current production of 25 million barrels per day, he said. “At these levels, we are contributing to the market to stabilise the prices.” Angola was China’s second-biggest supplier of crude oil last year after Saudi Arabia, shipping 29.9 million tonnes, or 600,000 barrels of oil per day. Botelho de Vasconcelos declined to comment on the chance of Angola signing an oil-for-loan deal, as several other of China’s trading partners, including Brazil and Russia, have done this year. “China worked with us to build our country,” he said. “The contracts with some Chinese companies are working.” Source: LatestNews-Home - Livemint.com | 3 Jul 2009 | 11:20 am No plans now to sell stakes in Neyveli - coal ministerNEW DELHI (Reuters) - The government has no plans to sell stakes in Neyveli Lignite as of now, Coal Minister Shriprakash Jaiswal said on Friday.Source: Reuters: Money News | 3 Jul 2009 | 11:18 am Railways to set up 1,000 MW power plant with NTPCNew Delhi: The government on Friday said that it would set up a 1,000 MW coal-based power plant at Nabi Nagar in Bihar. “After discussions with the ministry of power, we propose to set up a 1,000 MW power plant at Nabi Nagar in Bihar,” railway minister Mamata Banerjee said while presenting the Railway Budget. This plant is expected to help save considerable cost of electricity to the railways. “This project is of great importance as it would be located in an under developed tribal area and will help in providing employment and bringing the tribal people into the mainstream,” she said. It would be executed by NTPC subsidiary under the name— Bhartiya Rail Bijli Company limited— with 74:26 equity participation by NTPC and the ministry of railways. At present, land acquisition for the power plant is in progress. NTPC is the country’s largest power producer with a generation capacity of nearly 30,000 MW and the company plans to add another 3,300 MW in the current financial year. Source: LatestNews-Home - Livemint.com | 3 Jul 2009 | 11:14 am Mamata moots special trains to help farmersNew Delhi: In a move to help farmers, the railways propose to introduce special trains to carry perishable products like fruits, vegetables and fish from identified production clusters to consumer centres. Railway minister Mamata Banerjee said in her Budget speech in Parliament that railways will also encourage creation of facilities for setting up cold storage and temperature-controlled perishable cargo centres and its transportation through public-private partnership mode. For this purpose, the railways will associate professional agencies to identify locations and designing proper services. She said at present the country suffers an “unacceptable” loss of about Rs35,000 crore to Rs40,000 crore every year due to wastage of fruits and vegetables. Banerjee said to promote small industry, the railways will facilitate movement of village handicraft, cottage industry and textile products from production clusters like Tirupur (in Tamil Nadu) and Dhanekhali and Shantipur (in West Bengal) to consumption centres. “This will greatly increase their outreach and access to the market,” she said. Source: LatestNews-Home - Livemint.com | 3 Jul 2009 | 11:11 am RIL gas dispute: RNRL files special leave petition in SC - Moneycontrol.com
Source: Business - Google News | 3 Jul 2009 | 11:10 am Minorities, women to get better representation in railway jobsNew Delhi: Minorities, women and the economically backward can now look forward to “better representation” in railway jobs with minister Mamata Banerjee on Friday announcing to develop a new scheme for them. The railway minister said separate special recruitment drives will also be conducted to fill up vacancies of Scheduled Castes, Scheduled Tribes and physically challenged. “It is proposed to develop a scheme to give better representation to minorities, women and economically backward classes of society in railway jobs,” Banerjee said while presenting the budget. Noting that she had received some observations regarding the functioning of Railway Recruitment Boards, Banerjee said the recruitment policy and its functioning will be reviewed shortly. “Special recruitment drives will be launched to wipe out backlog in filling up the vacancies of SCs/STs...A special recruitment drive will be launched for filling up the vacancies against physically handicapped quota,” she said. Banerjee also said that sports persons will also get “their share” in recruitment. Source: LatestNews-Home - Livemint.com | 3 Jul 2009 | 11:09 am Govt for duties on Chinese imports to stop dumpingNew Delhi: Concerned over what he called “dumping” by Chinese power equipment makers, heavy industry minister Vilas Rao Deshmukh has sought imposition of import duty on such products in the upcoming Budget. “I met finance minister Pranab Mukherjee (last week) and discussed the issue,” he told the agency. Stating that he had nothing against Chinese equipment, Deshmukh said “they (manufacturers) are very welcome to come to India to set up their manufacturing plants. They can then compete here.” The minister was responding to queries about the demand from state-owned power equipment major Bhel whose CMD K Ravi Kumar is reported to have complained about “dumping”. For more than a year, the corporation is complaining about the cheaper Chinese equipment imports. Bhel, in its Budget wishlist that it submitted to heavy industry ministry, demanded last week that an uniform 10% import duty be imposed on power equipment. Deshmukh said that he has endorsed the suggestion of Bhel to the finance minister. “... the proposal was duly examined by the ministry and have already sent it to the finance ministry,” he added. The Economic Survey for 2008-09 has also highlighted the surge in imports from capital goods from China. ”Of particular concern is the zero-duty imports, relating to import of power generation equipment,“ the Economic Survey which was tabled in Parliament on Thursday said. The import of capital goods from China rose from Rs5,120 crore in 2002-03 to Rs54,000 crore in 2007-08. China’s share in India’s total import of capital goods jumped to 50% in 2007-08 from 38% in 2006-07, it said. Earlier, Deshmukh has said that there was no concrete proposal yet to divest equity in Bhel. “The issue has to be decided by the disinvestment department in the finance ministry. Neither have they raised the issue with us nor have we talked to them,” he said when asked when his ministry would go ahead with proposed disinvestment of up to 10% equity in the blue-chip company, where government now has 67% equity. Asked if the government could consider issuance of fresh equity instead of selling its existing holding, he said this is one issue where Bhel board would also be taken into confidence. “Once we have something from the finance ministry, then we will refer this to Bhel board for its view. We will consider whatever they have to say,” he said. Source: LatestNews-Home - Livemint.com | 3 Jul 2009 | 11:04 am GVK Power raises $150m via QIP to fund growthIsaac George, CFO, GVK Power Infrastructure, said the company has raised USD 150 million via its qualified institutional placement. He said the QIP proceeds will be used for growth plans.Source: Moneycontrol Top Headlines | 3 Jul 2009 | 10:55 am To use entire QIP funds for debt repayment: EmamiMohan Goenka, Director of Emami Group said that the company has issued Rs 1 crore shares at Rs 310 per share. Goenka said, We plan to use the entire qualified institutional placement (QIP) funds of Rs 310 core for debt repayment. the debt as of now for Emami Group is Rs 450 crore.Source: Moneycontrol Top Headlines | 3 Jul 2009 | 10:50 am Railway budget focuses on fares, servicesNEW DELHI (Reuters) - The railway minister unveiled a mix of populist measures, including cheap tickets for the poor and no increase in freight or passenger fares, as well as steps to boost the sprawling system's efficiency and finances.Source: Reuters: Money News | 3 Jul 2009 | 10:34 am Oracle, Sun deal to be filed to EU in July - sourceBRUSSELS (Reuters) - Oracle Corp's plan to buy computer maker Sun Microsystems will be notified to European Union antitrust authorities this month, a source familiar with the deal said on Friday.Source: Reuters: Money News | 3 Jul 2009 | 10:25 am Railways proposes to invest Rs 40,745cr this fiscalRailways, one of the largest profit-making industries in the county, proposes to invest Rs 40,745 crore in the current fiscal, up from Rs 36,773 crore in the previous financial year.Source: India Business News | Business News - Times of India | 3 Jul 2009 | 9:52 am Railways to pay higher dividend despite dip in cash surplusNew Delhi: Indian railways will be paying a higher dividend of Rs5,479 crore during the current fiscal despite over Rs3,000 crore dip in cash surplus on account of higher wage bill following implementation of the Sixth Pay Commission award. Unveiling the rail budget for 2009-10, railway minister Mamata Banerjee said, “The Railways paid their full dividend liability of Rs4,717 crore in 2008-09 and will pay an even higher dividend of Rs5,479 crore in 2009-10.” The railways will be paying higher dividend despite the adverse “impact of increase in working expenses due to the Sixth Pay Commission and sluggishness in earnings due to the economic slowdown”. The cash surplus of the railways during the current fiscal is expected to dip to Rs14,201 crore from Rs17,400 crore in the previous fiscal, mainly on account of higher wage bill during the year. According to Banerjee, the railways disbursed Rs13,600 crore during 2008-09 towards implementation of the Sixth Pay Commission recommendations. For the current fiscal, she said, “After having absorbed the impact of the Sixth Pay Commission, to the extent of Rs14,600 crore in 2009-10, the cash surplus before dividend of the railways work out to Rs14,201, net revenue of Rs8,121 crore and operating ratio of 9.25%.” Source: Home - Livemint.com | 3 Jul 2009 | 9:35 am Mamata introduces low-cost ‘yuva trains’ for major citiesNew Delhi: With youth being the flavour of the season, railway minister Mamata Banerjee on Friday introduced low-cost, air-conditioned ‘yuva trains’ dedicated to the generation next. The trains, with only sitting accommodation, will also benefit low-income groups. A weekly service will be introduced as a pilot project within three months in Delhi-Mumbai and Delhi-Kolkata sectors, Banerjee said presenting the railway budget 2009-10 in Parliament. If successful, it will be extended to other areas, she said. These trains will be introduced between major cities to ensure that the youth and low-income groups can travel at low fares. The idea is to connect the youth in rural hinterlands with major metro cities, she said. The trains will run from point to point for the distance ranging from 1,000 km to 2,500 km. The fare will be Rs229 for distances up to 1,500 km and Rs399 for distances upto 2,500 km. Source: Home - Livemint.com | 3 Jul 2009 | 9:20 am India eyes $386 mln from stake sales in 2 firms - Reuters India
Source: Business - Google News | 3 Jul 2009 | 9:09 am Air India employees ignore warning, strike workNew Delhi/Mumbai: Nothwithstanding a warning by Air India management, employees of the national carrier “walked out” of work for two hours this afternoon as part of their nationwide protest against delayed payment of salaries. The protest, called by Aviation Industry Employees Guild (AIEG), Air Corporation Employees Union (ACEU) and some other unions, saw employees coming out of their offices in Delhi and Mumbai and stage demonstrations from 1pm besides threatening to boycott their meetings with the management. Around 300 employees, carrying red flags, assembled infront of the old terminal shouting slogans in Delhi against the management and demanding immediate payment of salaries. “The government cannot defer the salary as per Payment of Wages Act. It must pay the salary by 10 July. The compnay is not following rules and regulations and taking decisions which is not in the interests of employees,” J B Kadiyan, general secretary of ACEU, said. In Mumbai, AIEG general secretary, George Abraham, said, “We are staging a walk-out and demonstration for two hours as the management has failed to honour its committment given to the unions to pay our June salaries by today.” There were no reports of disruption of AI services from the airport due to the protest. The workers went ahead with their strike despite a staff notice issued earlier in the day by AI warning that “any participation in the illegal strike would be viewed seriously and appropriate action, including deduction of wages and withdrawal of Productivity-Linked Incentive till further orders, will be taken.” Warning them of “firm” action if flights were disrupted and passengers inconvenienced, the staff notice said the agitation by the Joint Action Forum would violate the Industrial Disputes Act and “tantamount to illegal strike”. Last night, AI CMD Arvind Jadhav had written to the employees that besides wages and salary payments every month, fuel and bank liabilities like interest and principal payments, have to be paid on time. However, the unions blamed the management of “going back on their word” to pay the salaries by today. The unions had called off their proposed strike on 30 June after the management agreed to pay salaries of 70% of workers by Friday. They were protesting the earlier decision of the management to defer the June salary by the middle of this month. Kadiyan alleged that the company is being “damaged systematically by certain vested interests who want to sell Air India off. This we will never allow.” He also demanded a CBI enquiry into the Air India’s plan to buy 68 aircraft for Rs6,000 crore when its annual budget is Rs7,000 crore. “The total budget of Air India is Rs7,000 crore and then why it decided to buy aircraft worth Rs6,000 crore. Air India has plans to purchase 24 aircraft and Indian Airlines has plan to buy 43 aircraft. But later Air India changed its fleet plan and within 24 weeks firmed a plan to buy 68 aircraft,” he said. Source: Home - Livemint.com | 3 Jul 2009 | 9:09 am Govt eyes $386 mln from stake sales in 2 firmsNEW DELHI (Reuters) - India plans to raise 18.54 billion rupees ($386 million) via sale of shares in two state-owned companies in the current fiscal year, the government said on Friday.Source: Reuters: Money News | 3 Jul 2009 | 9:04 am Rupee strengthens as stocks recoverMumbai: The Indian rupee recouped early losses to strengthen on Friday afternoon, tracking a recovery in local equities. At 2:35pm, the rupee was at Rs47.93/95 per dollar, off an early low of Rs48.19, and slightly stronger than Thursday’s close of Rs47.95/96. It had hit 47.74 on Thursday, its highest since 16 June. Indian shares extended gains to more than 1% on Friday afternoon, on short covering ahead of the federal budget on Monday. The rupee eased on in the morning amid a seesawing stock market and in the face of the dollar’s gains, which dampened overseas sentiment. At 10:45 am, the partially convertible rupee was at Rs48.09/10 per dollar, off an early low of Rs48.19, and about 0.3% weaker than its previous close of Rs47.95/96. It had hit Rs47.74 on Thursday, its highest since 16 June. “Stocks are offering the market no relief. But mostly the rupee’s pressured because of the dollar strengthening in cross currency movements,” a trader with a foreign bank, said. The Bombay Stock Exchange 30-share index, the Sensex, seesawed after opening 0.7% lower on Friday after Asian equity markets slipped and investors held back from taking positions ahead of next week’s Union Budget. The rupee was also hit by the dollar’s gains after bleaker-than-expected US jobs data. The dollar index, a gauge of the US unit’s performance versus majors, was up about 0.2% at 10:$5 am (0515 GMT). Net foreign portfolio inflows of around $7.4 billion since mid-March have helped the rupee bounce back from a record low of Rs52.2 hit in mid-March. However, since mid-June foreign investors have sold nearly $600 million of local equities. The Sensex had leapt 49.3% in April-June, its biggest quarterly gain in 17 years, in anticipation of an economic rebound. The government said in an Economic Survey 2008-09 on Thursday the economy could grow 7% this year and more in coming years if it made sweeping reforms including removal of fuel subsidies, and speeds infrastructure development. Source: Home - Livemint.com | 3 Jul 2009 | 9:00 am SBI offers Bharti $1 bn loan for MTN: sourcesMumbai: State Bank of India has offered a loan of up to $1 billion to Bharti Airtel to partly fund the Indian telecoms firm’s planned stake buy in South Africa’s MTN, two sources said. The government-run bank, which along with its associates controls a quarter of Indian bank loans and deposits, will join a clutch of foreign lenders interested in funding the deal that aims to create the world’s third-biggest wireless group with more than 200 million subscribers and combined revenue of $20 billion. “Bharti is our customer. We looked at the transaction and thought we could be part of it too,” one source, who has direct knowledge of the transaction, said. State Bank has offered the loan for between 3 and 5 years, said the two sources, who cannot be named as they were not authorised to speak to the media. “We have no further comment to offer at the moment,” said a spokesman for Bharti, referring to its statement in May announcing the leading Indian mobile operator had revived exclusive talks with MTN for a merger. State Bank officials declined comment. Under a complex deal structure announced in May, Bharti would end up with 49% in MTN and the South African firm and its shareholders would own a total 36% of Bharti. The exclusive merger talks could run till the end of July. Brokerages have estimated a net cash outflow of about $4 billion from Bharti in the deal. Bharti is yet to talk about how it will fund the deal, but has said the funding requirements would not be “onerous”. Sources have said Standard Chartered, advisor to Bharti in the transaction, has agreed to underwrite $1 billion and help in raising the balance $3 billion required. Debt funding is seen as the best option for Bharti, which has recently become cash-flow positive, and dividends from MTN could help it service the loan, analysts said. Also just $629 million in net debt at the end of March, representing a net debt to EBITDA (earnings before interest, tax, depreciation and amortisation) of 0.25, makes it easier for the firm to take on more debt, they said. US banks, which have funded most of India’s overseas acquisitions, are wearily treading around Bharti deal as more than a tenth of MTN’s revenues come from Iran, Sudan and Syria - states where the United States sets tough restrictions on US firms from dealing. State Bank had earlier partly funded overseas acquisitions of Indian companies, including the $13 billion buy of Anglo-Dutch steel maker Corus by Tata Steel. Source: Home - Livemint.com | 3 Jul 2009 | 8:54 am 3G spectrum must be freely tradable: SurveyThe Economic Survey has suggested major reforms for the telecom sector including auctioning spectrum for mobile services.Source: Moneycontrol Top Headlines | 3 Jul 2009 | 8:51 am LT, Tata Projects vying for Coastal Energen contractLT and Tata Projects have submitted their offers for a Rs 1,500crore Balance of Plant job of Coastal Energen.Source: Moneycontrol Top Headlines | 3 Jul 2009 | 8:45 am SBI offers Bharti $1 bln loan for MTN - sourcesMUMBAI/NEW DELHI (Reuters) - State Bank of India has offered a loan of up to $1 billion to Bharti Airtel to partly fund the Indian telecoms firm's planned stake buy in South Africa's MTN, two sources said.Source: Reuters: Money News | 3 Jul 2009 | 8:38 am Rail budget a competent job: PMNew Delhi: The 2009/10 railways budget is a “competent” job, Prime Minister Manmohan Singh said on Friday. “She has outlined a program of modernising 50 railway stations to world class standards,” Singh said. Earlier, railways minister Mamata Banerjee kept freight and passenger fares unchanged and said improving passenger amenities was a priority. “A large number of amenties have been mentioned by way of using the innovative financing mechanism of public-private partnership,” he said. Source: Home - Livemint.com | 3 Jul 2009 | 8:15 am Gold prices flat, local demand remains slackMumbai: India gold prices were flat on Friday, and domestic demand continued to be weak in a seasonally lean period, dealers said. The most-active August contract was flat at Rs14,477 per 10 grams at 1:31pm, and traders eyed dollar for direction. “The demand is relatively weak, with a few stray deals here and there,” said a dealer with a private bank in Mumbai. India’s gold market is in a lean season as fewer weddings take place during monsoons. But a series of festivals and auspicious days for weddings is expected to boost gold demand from August-end till the end of the year. However, dealers said traders exhibited interest at lower levels to replenish stocks for the upcoming festive season. “Market is showing interest at $920-925 to build-up their stocks, ” said Pinakin Vyas, chief manager-treasury with IndusInd Bank. In the first six months of this year, India’s imports stood at approximately 59.8 tonnes, down 57% from 139 tonnes a year earlier, data from the BBA showed. Source: Home - Livemint.com | 3 Jul 2009 | 7:47 am Price stability high on agenda: Pranab MukherjeeNew Delhi: India has seen a rise in prices of foodgrains due to higher purchase prices of essential items and price stability is high on the government’s agenda, the finance minister said on Friday. “The government monitors the price situation regularly, with price stability being high on its agenda,” Pranab Mukherjee said in a written reply to a question in parliament. He also said that India’s GDP growth moderated to 6.7% in FY09 from 9% a year go because of subdued demand and global economic crisis. Source: Home - Livemint.com | 3 Jul 2009 | 6:15 am Sensex wipes off early losses ahead of Rail BudgetExpectations ran high on the bourses in early trade today as the key indices went up on investors buying power and capital goods stocks.Source: India Business News | Business News - Times of India | 3 Jul 2009 | 6:03 am Rupee falls 18 paise against dollar in early tradeThe Indian rupee today lost 18 paise against the dollar in early trade on strong demand for the greenback from importers amid the US currency rising against other currencies.Source: India Business News | Business News - Times of India | 3 Jul 2009 | 5:02 am Survey moots tax sops for long-term debt marketNew Delhi, July 2 Signalling the Government’s commitment to develop long-term debt markets in the country, the Economic Survey 2008-09 has called for tax incentives to build-up such markets.Source: Business Line - Home Page | 3 Jul 2009 | 12:00 am Survey ‘janaaha sukhino bhavantu’?Every government economist has a dream, that one day he or she will be able to supervise and write the Economic Survey. The job goes with the turf if you are the Chief Economic Advisor (CEA).Over the years India has had some excellent CEAs.Source: Business Line - Home Page | 3 Jul 2009 | 12:00 am Market unimpressedMumbai, July 2 Ignoring some of the positive cues in the Economic Survey for 2008-09, the Sensex ended flat at 14,658 (up 13 points) on Thursday.Source: Business Line - Home Page | 3 Jul 2009 | 12:00 am Tata Motors (Rs 294.3): SellWe recommend a ‘sell’ in Tata Motors from a short-term trading perspective. It is apparent from the charts of Tata Motors that it was on an intermediate-term uptrend between early February and early June (from Rs 126 to Rs 403).Source: Business Line - Home Page | 3 Jul 2009 | 12:00 am Day Trading GuideInitiate fresh short-position if DLF fails to surpass Rs 345, with tight stop-loss. In the last trading session, ICICI Bank was volatile and formed doji candlestick signaling neutral stance. Moreover it isSource: Business Line - Home Page | 3 Jul 2009 | 12:00 am ‘The key is to stimulate investment and demand in India’Mumbai, July 2 Mr Ajay Srinivasan, Chief Executive, Financial Services, Aditya Birla Management Corporation, believes that India has a lot of things going in its favour right now even while the rest of the world is falling apart. It is his viewSource: Business Line - Home Page | 3 Jul 2009 | 12:00 am Inflation rate drops 1.3%The annual Wholesale Price Index-based inflation stayed in the negative territory for the third week in a row, falling 1.3 per cent for the week ended June 20 after tumbling 1.14 per cent the previous week.Source: Business Line - Home Page | 3 Jul 2009 | 12:00 am MFs’ asset base grows at slower pace in JuneMumbai, July 2 The asset base of the mutual fund industry grew 4.9 per cent in June, recording the lowest monthly growth during the quarter, partly due to banks and corporations withdrawing money for advance taxSource: Business Line - Home Page | 3 Jul 2009 | 12:00 am Court order may open doors for more mobile playersNew Delhi, July 2 More than 20 companies including AT&T, Moser Baer, Sterlite Technologies and Hinduja Group can hope to get a mobile licence with the Delhi High Court quashing the decision by the Ministry of Communications to leave outSource: Business Line - Home Page | 3 Jul 2009 | 12:00 am Survey pitches for big-bang reforms• Phasing out of dividend distribution tax (DDT), securities transaction tax (STT), commodities transaction tax (CTT), fringe benefit tax (FBT) and the plethora of cesses and surcharges.Source: Business Line - Home Page | 3 Jul 2009 | 12:00 am Maytas Infra gets bank lifelineCrisis-ridden and cash-starved Maytas Infra got a lifeline when a consortium of 18 banks approved the corporate debt restructuring (CDR) package for the company.Source: India Business News | Business News - Times of India | 2 Jul 2009 | 11:04 pm Survey seeks end to cesses and FBTStrongly pitching for a restructuring of tax policy, the Economic Survey suggests phasing out of various surcharges, cesses and transaction taxes imposed by the government over the years in order to broaden the tax base.Source: India Business News | Business News - Times of India | 2 Jul 2009 | 10:01 pm Economic Survey 2008-09: Free fuel price, cap subsidy on cooking gasA day after the Centre exerted its control to jack up motor fuel prices as an "ad-hoc" measure, the Economic Survey suggested sweeping reforms, starting with unshackling pump prices and limiting the number of subsidised cooking gas cylinders to 6-8 for each consumer-family in a year.Source: India Business News | Business News - Times of India | 2 Jul 2009 | 10:00 pm Economic Survey 2008-09: Ease FDI in insurance, retail to boost growthThe government should go for sweeping reforms and increase foreign direct investment (FDI) limit in the country to push growth, The Economic Survey, 2008-09 said.Source: India Business News | Business News - Times of India | 2 Jul 2009 | 10:00 pm Sensex surges over 250 pts on soft Rail BudgetTrading sentiment turned bullish on the Bombay Stock Exchange as the BSE Sensex surged over 250 points in pre-close trading today following a soft Rail Budget.Source: Daily News & Analysis: Money News | 2 Jul 2009 | 9:57 pm Economic Survey 2008-09: Open up coal to fuel power plantsIncrease in the coal production has not been able to keep pace with the rise in demand due to lack of investments and technology infusion.Source: India Business News | Business News - Times of India | 2 Jul 2009 | 9:56 pm Selloff target set at Rs 25k crIn a suggestion that could breathe new life into disinvestment, the Economic Survey set an annual mop-up target of Rs 25,000 crore and suggested the government sell at least 10% stake in all unlisted PSUs and "auction" units that cannot be revived.Source: India Business News | Business News - Times of India | 2 Jul 2009 | 9:55 pm Gearless scooters in top gear; vroom backTVS will launch a new gearless scooter this year, expected to be superior to its current Scooty range.Source: Daily News & Analysis: Money News | 2 Jul 2009 | 9:28 pm IT sniffs H2 recovery, but caution rulesThe three behemoths of the Indian IT industry -- Tata Consultancy Services (TCS), Infosys Technologies and Wipro -- all see a turnaround at the next corner.Source: Daily News & Analysis: Money News | 2 Jul 2009 | 9:27 pm Too many acronyms make passbooks a puzzling readThe use of technical terms -- often different ones for a similar transaction -- is leaving customers confused.Source: Daily News & Analysis: Money News | 2 Jul 2009 | 9:25 pm Where do IT and IT-services go from here?Although domestic IT service players existed, the wave of offshoring was also driven by the need to focus on core competency areas.Source: Daily News & Analysis: Money News | 2 Jul 2009 | 9:23 pm Air India employees stage walk-outNothwithstanding a warning by Air India management, the protest had employees walking out of both the Delhi and Mumbai offices.Source: Daily News & Analysis: Money News | 2 Jul 2009 | 9:19 pm Coke's Burn to fire up rivalry in energy drinksBeverage giant Coca-Cola is seeking to fire up its portfolio in India with Burn, a new energy drink that is currently available in 63 other countries.Source: Daily News & Analysis: Money News | 2 Jul 2009 | 9:19 pm 'India is a great place to incubate new ideas'Paul Muller, vice-president, strategic marketing, HP Software, spoke to DNA at a conference organised recently by Hewlett-Packard in Las Vegas.Source: Daily News & Analysis: Money News | 2 Jul 2009 | 9:17 pm Rail budget may bare not-so-rosy financialsIn 2009-10, according to sources, the sundry earnings of Railways has fallen by 54% and income by another substantial amount.Source: Daily News & Analysis: Money News | 2 Jul 2009 | 9:01 pm Bilateral blow hurt load factor, claimed airlines... they're rightThe frequent grouse of some Indian carriers -- that a liberal bilateral regime has hurt their load factors on international routes -- is borne out by statistics.Source: Daily News & Analysis: Money News | 2 Jul 2009 | 9:00 pm US agency to lend Chennai finance firm $80 millionMumbai: The Overseas Private Investment Corporation (Opic), a US agency that helps American companies invest abroad and promotes the development of emerging markets, will lend $80 million (Rs382.4 crore) to Repco Home Finance Ltd (RHFL), an executive at the company said. Opic will give the Chennai-based housing finance company a 23-year loan in two portions, $30 million and $50 million, subject to clearance from the Reserve Bank of India (RBI), RHFL managing director M. Balasubramanian said in a telephone interview on Wednesday. “We also have an informal commitment from the US agency for additional $50 million for our microfinance arm,” he added. Opic’s first investment in India was a loan to Dabhol Power Co., promoted by Enron Corp. in 1996. The project, located in Maharashtra, was controversial from the start; the new state government that took over shortly after the deal was signed said the terms favoured Enron and wanted to renegotiate the contract. Then, Enron went bust. Loans from Opic will provide the finance company with low-cost funds The loan to Repco marks Opic’s first to any finance company in India. The US agency has announced the transaction on its website. Queries mailed to it on on Thursday, before the US opened for business, had not been responded to till late in the evening India time (early Thursday US time). On the website, Opic said the purpose of the loan is to create access to affordable homes to low- and middle-income families that have been traditionally underserved by major banks. RHFL was promoted in 2001 by Repco Bank which, in turn, was promoted in 1969 jointly by the Union government (41%), the governments of four southern states (10%) and individuals (49%). The bank was promoted to offer homes and employment to people of Indian origin who returned to India from Sri Lanka and Myanmar. Under an agreement, India had agreed to take back 500,000 families from Sri Lanka and 320,000 families from Myanmar. Repco provided employment to these people, allotted land to them and built 700,000 homes, Balasubramanian said. “From 1984, we have been working like any other commercial bank,” he added. The Carlyle Group, one of the world’s largest private equity firms, acquired a 14% stake in RHFL in December 2007 and increased this to 46% in April 2009 by converting preference shares into equity. Balasubramanian did not disclose the conversion price. The loan from Opic will provide RHFL with low-cost funds. “It is a challenge for a small bank like us to raise cheaper long-term deposits through debentures and bonds,” said Balasubramanian. He added that Carlyle had facilitated the loan and that the cost of these funds effectively works out to 6.25%. “The new loan (from Opic) will allow us to offer longer-tenure loans to customers.” Manoj Singh, global managing partner of operations at Deloitte Touche Tohmatsu, a global audit and consulting firm, said the Opic loan is an indication of the growth potential of the country’s housing market. Singh is also a member of the US India Business Council, an agency that aims to increase trade and economic partnerships between the two countries. Under the terms of the agreement with Opic, all mortgages arising from its loan will be assigned to Opic, said Balasubramanian. Source: World Business - Livemint.com | 2 Jul 2009 | 7:09 pm Balco residual stake sale on fast trackThe three-judge arbitration panel set up to resolve the controversy over the sale of the governments residual 49 per cent stake in Sterlite-controlled Bharat Aluminium Company Ltd (Balco) has decided to meet in August, raising hopes of a resolution to the five-year-old dispute.Source: Business Standard | Front Page Headlines | 2 Jul 2009 | 7:00 pm Truckers to up rentals 6 to 12%Truck rentals are set to rise 6 to 12 per cent after diesel prices were raised by Rs 2 a litre yesterday.Source: Business Standard | Front Page Headlines | 2 Jul 2009 | 6:58 pm Economy is sound, let's push reforms, says Economic SurveyPainting a picture of a resilient economy, the pre-Budget Economic Survey 2008-09, tabled in Parliament today by Finance Minister Pranab Mukherjee, said India could grow up to 7.75 per cent in 2009-10, up from 6.7 per cent in 2008-09, provided the global economy, particularly the United States, bottomed out by September and the government was able to push the button on significant economic policy reforms.Source: Business Standard | Front Page Headlines | 2 Jul 2009 | 6:56 pm When one Gmail window just won’t doNew Delhi: Gmail and Twitter are all very fine services indeed. But sometimes you just can’t do with one instance. For example you might have Twitter ID for personal use and another at work. Alas, if only you could use both accounts simultaneously. Thanks to the elaborate system of cookies websites use to keep track of you and prevent login password inconveniences, that is out of the question. Login into Gmail once and every new Gmail window you open will autmatically login. Click here to watch video But check this week’s Playstream video to see how you can use Google Chrome’s incognito mode to access two instances of any service. Both windows remain absolutely isolated from each other and let you, for instance, check two email inboxes at once. All without downloading or installing any extra software or add-on. And, most importantly, without compormising on security. Source: Tech News - Livemint.com | 2 Jul 2009 | 6:37 pm Debt restructured, Maytas won\'t repay till 2012Banks have approved the corporate debt restructuring (CDR) for Maytas Infra, which will comprise both bank and nonbank funds. The Hyderadabadbased Maytas debt repayment has been put on hold for a period of three years, Ved Jain, the companys board member said.Source: Moneycontrol Top Headlines | 2 Jul 2009 | 6:32 pm Cement cos\' June sales nos see good growthCement companies have announced their numbers for the month of June, 2009. Jaiprakash Associates sold 8.04 lakh tonnes in the month of June, which increased 29% on yearonyear basis.Source: Moneycontrol Top Headlines | 2 Jul 2009 | 5:01 pm Capacity utilisation beyond 50% currently: MM ForgingsVidyashankar Krishnan, MD, MM Forgings, said capacity utilisation has gone beyond 50%. Over the next few months, we expect it to grow by another 20%.Source: Moneycontrol Top Headlines | 2 Jul 2009 | 4:35 pm Consolidation good for aviation industry: SpiceJetAjay Singh, Director, SpiceJet expects the airline load factor to be around 70%. He, said, low cost airlines were doing better than full service airlines. Refusing to comment on speculation of buying other LCC, Singh, said, We never comment on what may or may not be in the works. But, as a concept, consolidation is good for the industry.Source: Moneycontrol Top Headlines | 2 Jul 2009 | 4:09 pm 3G auction to take time, rules awaitedNew Delhi: The government will auction 3G wireless spectrum within three months after the government finalizes the number of slots and the floor price for each, the telecom minister said, indicating the process would take time. The potential multi-billion dollar auction was initially planned for January, but has been delayed after high prices fetched by private telecoms companies for selling stakes prompted a review of the floor price. “Two issues are there. What will be the number of slots going to be auctioned? And what is the base price for each slot?” A Raja told lawmakers on Thursday in the upper house of Parliament in reply to questions. He said a committee of ministers would be constituted to consider the issues. “I hope it will be settled within a fortnight as soon as the committee is constituted,” he said. “Within three months as soon as the stipulation comes from the government,it will be completed,” Raja said, on the auction. As per the initial guidelines issued last year, the government planned to conduct the auction for 20 of India’s 22 telecoms zones and had said firms could bid for four slots in most of these areas. The auction of third-generation radio spectrum would allow firms to offer high-speed Internet and video downloads on mobile phones. Source: Tech News - Livemint.com | 2 Jul 2009 | 11:33 am
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