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Better to act now as pressures can build: RBI - Economic Times
Source: Business - Google News | 24 Mar 2010 | 3:50 am Asia stocks up after upbeat economic data, US riseHong Kong: Asian stocks were up modestly Wednesday as encouraging economic reports and gains in US markets buoyed investor confidence. European markets opened higher. The euro, meanwhile, continued its slide against the dollar amid uncertainty over a resolution to Greece’s debt crisis. Oil prices fell before $81 a barrel. Economic news from Asia helped sentiment. Driven by rising world demand for cars and gadgets, exports from Japan, the world’s second-largest economy, surged 45% last month from a year earlier. And Taiwan reported a steep rise in industrial production. Together, the reports added to signs of recovery in global trade. As markets opened in Europe, benchmarks in Britain, France and Germany rose betwen 0.1% and 0.3%. Earlier in Asia, Japan’s Nikkei 225 stock average rose 40.88 points, or 0.4%, to 10,815.03. Hong Kong’s main index added 40.88, or 0.4%, to 21,008.62 and Shanghai’s market climbed 0.1% to 3,056.81. Markets in Australia and Taiwan also advanced moderately, while South Korea’s Kospi was off 0.1%. India’s market was closed for a public holiday. Oil prices drifted lower, with benchmark crude for May delivery down 67 cents at $81.24. In currencies, the euro fell to $1.3382 from $1.3495, or nearly 0.9%. The dollar strengthened to 91.03 yen from 90.42 yen. Among stocks, Nintendo Co. helped lead the broader market higher. Its shares jumping 10% after the company, which makes the popular Wii, said Tuesday it plans to release a 3-D version of its popular handheld gaming system, the Nintendo DS, by March 2011. In Australia, mining shares were among the country’s top gainers. BHP Billiton Ltd. rose%, while rival Rio Tinto jumped almost 2%. Wall Street had a strong showing overnight. Hopes for a big US stock rally sent the Dow up 102.94, or 1%, to 10,888.83. The index hit a new high for 2010 and is at its highest level since 26 September, 2008. Source: Home - Livemint.com | 24 Mar 2010 | 3:41 am Google's exit draws admiration and anger from Chinese netizensA day after world's leading internet firm, Google shut its search engine for China, the step drew admiration, hate and anger in equal measure from the country's netizens.Source: HindustanTimes.com - Top Business News Headlines | 24 Mar 2010 | 3:35 am Finmin adviser sees econ growth at 8.5 pct in Q4 FY10MUMBAI (Reuters) - India's economy is expected to grow at 8.5 percent in this quarter, a top adviser said on Wednesday.Source: Reuters: Money News | 24 Mar 2010 | 3:31 am Poverty: Maharashtra ranks 3rd, after UP and BiharMumbai: Maharashtra’s image as a progressive state has taken a beating with recent figures rating it third amongst major states, after Uttar Pradesh and Bihar as regards the population below poverty line. An economic survey released by the state government said the poverty estimates provided by the Planning Commission reveal poverty ratio in the state is 30.7%, 3.2% more than the all-India (27.5%) figure. “Maharashtra had 3.17 crore persons below poverty line after Uttar Pradesh (5.90 crore) and Bihar (3.69 crore) in 2004-05,” the survey said. Maharashtra, Tamil Nadu and West Bengal had the same level of poverty figures during 1993-94, but during 2004-05, poverty ratios of these states are much less than that of Maharashtra, it said. However, in absolute terms, the population below poverty line in the state increased by 12.2 lakh during the same period. This increase was mainly observed in urban areas. ‘“In 1997, 34.6% of population was BPL in rural areas which later became 35.8% in 2002. In 1997, the urban BPL population was 8.8%, which rose to 13.9% in 2002,” it said. Source: Home - Livemint.com | 24 Mar 2010 | 3:29 am Fiat reported to cut 5,000 jobs, shares rallyMILAN (Reuters) - Industrial group Fiat is planning more than expected job cuts of 5,000 in Italy and may spin off its car activities sooner than thought this summer, press reports said, boosting its shares sharply on Wednesday.Source: Reuters: Money News | 24 Mar 2010 | 3:23 am IPL will do billion dollar business this year: Lalit ModiNew Delhi: Indian Premier League would generate a revenue of $ 1 billion this season, thanks to huge fan following across the globe, attracting a large number of advertisers, its commissioner Lalit Modi said on Wednesday. “The tournament is still on and we have not reached the final number... Yes, it will be more than a billion dollar (about Rs4,700 crore) this season ... last season we did $450 dollar. “Thereafter, we would double every year,” Modi told PTI and asserted that as long as the fans keep coming to IPL, the league’s brand value would increase and hence the revenue. Also Read | IPL3 Full Coverage Revenue for Sony, the official broadcaster, alone would be about Rs700 crore to Rs800 crore, he said brushing aside the criticism that the advertising rates for the IPL’s third season were very high. “There may be some advertisers who feel that way but there are lot many others who are willing to join us,” he said pointing out that the huge success of the tournament in terms of TV viewership would certainly entice the advertisers. “There is no other sporting event across the world generating more eyeballs than the IPL,” he said, adding that the league was virtually in every part of the world through either broadcasters of through the Internet - via YouTube. Asked about an independent brand consultancy valuing Brand IPL at at $4.13 billion, more than double from last year, Modi said that it was not done by the organisation and “it is indeed valuation given to us by outsiders.” Brand Finance, which came out with IPL brand’s latest valuation, said that the brand alone has risen significantly, providing tremendous economic value to its owner - BCCI. It said this demonstrates the exponential value of IPL and the Brand potential in a cricket loving country like India and other global cricketing countries. Although the English Premier League is valued much higher at $12 billion, the IPL’s valuation has risen above $4 billion in just three years, Brand Finance pointed out. In terms of brand value or valuation there could be bigger sports club in the West but most of those have negative cash flow, Modi said and pointed out that the English Premier League, though it commands a very high brand value, was facing a USD 800 million deficit. “Here, we are talking about cash flow and it is growing to grow in future at IPL,” he said, while detailing the dynamics of financing of IPL franchises. Modi said that the IPL teams had no load on them and “we are providing infrastructure and stadium free of cost.” Asked about predictions that IPL could not sustain, Modi retorted: “Let them (cynics) say anything. I know the numbers. I know the game. I have delivered. We will continue to deliver.” The success of IPL hinged on the capacity to draw huge crowds, a fact that need not be proven again and again, he said, adding that other factors included that teams were equally placed in terms of finances and capacity to buy the players. “The level playing field between the teams would make the event more interesting,” he said and added that another factor for the success was that the revenue would be proportionate to the number of matches that are played. This season there are 60 matches and the number would go to 90 by next year and, therefore, the revenue would increase on a pro-rata basis, he said. Source: LatestNews-Home - Livemint.com | 24 Mar 2010 | 3:20 am RBI: better to act now as pressures can buildMUMBAI (Reuters) - Demand-side pressure on the Indian economy can build up further and it is better to take some action now, the Reserve Bank of India governor said on Wednesday, days after it surprised markets by raising interest rates.Source: Reuters: Money News | 24 Mar 2010 | 3:19 am Google to phase out China search partnershipsBEIJING/HONG KONG (Reuters) - Two day after shutting its Chinese portal over censorship, Google Inc said it plans to phase out deals to provide filtered search services to other online or mobile firms in China.Source: Reuters: Money News | 24 Mar 2010 | 3:06 am Cleaner petrol, diesel to cost more from April 1 - Times of India
Source: Business - Google News | 24 Mar 2010 | 3:04 am Samsung chip lines affected by brief power outagePower supply resumed in less than an hour for core production lines at its Kiheung plant, Samsung spokesman James Chung said by telephone.Source: Daily News & Analysis: Money News | 24 Mar 2010 | 3:00 am Goldman applies for India banking license: ReportsGoldman Sachs has applied for a banking licence in India, local media reported, citing the company's India chief executive.Source: Daily News & Analysis: Money News | 24 Mar 2010 | 2:59 am Cleaner petrol, diesel to cost more from April 1Cleaner but costlier Euro-IV standard petrol and diesel will be available from April 1 in 13 cities across the country, Petroleum Secretary S Sundareshan said today. He also added that the Euro-IV petrol will cost 46 paise per litre more than Euro-III, while Euro-IV diesel will be 26 paise costlier.Source: HindustanTimes.com - Top Business News Headlines | 24 Mar 2010 | 2:53 am Oil falls over $1 after U.S. crude stock buildLONDON (Reuters) - U.S. crude futures for May delivery fell over $1 on Wednesday after a larger-than-expected build in U.S. crude stocks reported by the American Petroleum Institute (API) on Tuesday.Source: Reuters: Money News | 24 Mar 2010 | 2:50 am Google's withdrawal cause concerns to China netizens - The Hindu
Source: Business - Google News | 24 Mar 2010 | 2:49 am 800 varsities, 35,000 colleges needed in next 10 years: SibalNew Delhi: India will need at least 800 more universities and another 35,000 colleges in the next ten years to increase the percentage of students going for higher education from the present 12.4% in the country, HRD minister Kapil Sibal said on Wednesday “India has about 480 university and about 22,000 colleges. If we were to increase that figure of 12% to 30%, we will need another 800 to a thousand universities in the next ten years. We will need another 35,000 colleges in the next ten years...we are still below 40 per cent which I think is critical,” he said. Sibal was speaking at the first contact group meeting of Parliamentarians for Education of the UNESCO South Asia Cluster, in which delegates from Bangladesh, Bhutan, Maldives, Nepal and Sri Lanka and other south Asian countries participated. Highlighting the importance of human resource development, Sibal said, “When the global economy is doing well and the stock market is in the up swing, the developed nations share their prosperity with us.” But it is not the case when global economy is not doing well and the stock market is on decline, he said. “And I think that if we in this part of the world recognise the facts, we will realise how important education is for a developing economy,” he said. Sibal said the energy of a nation ultimately depends on its youth. “The energy of a nation does not depend on parliamentarians who are over 60 years, he said. He said that in the 21st century, acquisition of physical or tangible assets will not be the wealth of any country but it will be the acquisition of intangible assets which are created not in the stock market but in the university system of nations. Source: Home - Livemint.com | 24 Mar 2010 | 2:49 am Maruti becomes first company to make 1 m cars - Sify
Source: Business - Google News | 24 Mar 2010 | 2:34 am INTERVIEW - 5th national commodity bourse likely by JuneMUMBAI (Reuters) - Ahmedabad Commodity Exchange Ltd (ACE), promoted by the financial services major Kotak Group, may get final nod to function as a national bourse by June, a top official said.Source: Reuters: Money News | 24 Mar 2010 | 2:27 am Goldman applies for India banking licence - reportsNEW DELHI (Reuters) - Goldman Sachs has applied for a banking licence in India, local media reported, citing the company's India chief executive.Source: Reuters: Money News | 24 Mar 2010 | 2:25 am Adviser sees economic growth at 8.5% in Q4 FY10'In Q3, economy did not do well as agriculture shocks was concentrated,' Kaushik Basu, chief economic adviser in the finance ministry, said.Source: Daily News & Analysis: Money News | 24 Mar 2010 | 2:17 am Dubai govt help part of Dubai World proposal: ReportDubai World will discuss how it plans to repay its commitments this week with an informal bank panel, which represents 97 creditors to the state-owned conglomerate.Source: Daily News & Analysis: Money News | 24 Mar 2010 | 2:16 am New technologies can halve TB diagnosis timeTuberculosis (TB) kills one person every 90 seconds in India and about 1000 people every day, according to the World Health Organization (WHO). India accounts for over 20 percent of TB cases worldwide, with over 1.9 million recorded cases per year as of last count. The air-borne disease is estimated to cost the Indian government about US $3 billion in indirect costs and US$ 300 million in direct costs. Given the social and economic costs of TB, the Indian government has adopted an aggressive approach to combating the disease through its Directly Observed Treatment Short Course (DOTS) programme, launched nationally under the Revised National TB Control Programme (RNTCP) in 1997. Multi-drug resistant (MDR) tuberculosis is especially complicated, and the government is currently aiming to increase the number of accredited laboratories in India to diagnose this type of TB. Dr Behera, Director of the LRS Institute of TB & Respiratory Diseases, explains that the most crucial aspect to treating MDR TB is a quick and accurate diagnosis. Two new methods for diagnosis that have not yet been implemented on a large scale are line probe assays (LPA) and liquid culture media. Behera explains that liquid, as opposed to solid, culture media cuts the diagnosis time down from 12 to 3 weeks, while line probe assays are even quicker, with a diagnosis time of just 48 hours. Listen to Dr Behera talk about new and upcoming methods to diagnose TB. Click here... Both methods, however, are expensive. Behera says that while solid culture media costs under Rs 100, liquid culture media costs around Rs 3000. This cost is further enhanced by the need for sophisticated equipment and laboratories, along with an uninterrupted power supply. LPA too is expensive, however the exact cost is yet to be determined. “ So far LPA has been done under the WHO,” says Behera. “Whether it is feasible in India is being evaluated.” Despite the high cost, Behera expects that the RNTCP will soon offer these technologies. “If you think of the lives saved, it is worthwhile going for these methods and I believe the programme is thinking about it,” he says. “Even if it is very costly, the diagnosis time is so short and so many tests can be done at one go that it doesn’t need to be made available in every district. Perhaps in every state it can be done at just one location or even two or three states can have one location,” he says. The LPA method is already being implemented in some areas, including Gujarat and Andhra Pradesh, and Behera expects this will be scaled up in other parts of the country over the next two to three years. Source: LatestNews-Home - Livemint.com | 24 Mar 2010 | 2:16 am Return-hungry investors flock to M&A hedge fundsLONDON (Reuters) - Investors are flocking to hedge funds that bet on mergers and acquisitions (M&A) in the hope that a revival in takeover activity will help deliver more of the bumper returns they enjoyed in last year's rally.Source: Reuters: Money News | 24 Mar 2010 | 2:07 am India-Canada meet to boost trade on ThursdayToronto: India and Canada will hold strategic dialogue to boost bilateral trade and investments on Thursday. “Both countries will examine ‘breadth and depth’ of the bilateral business partnership and discuss ways and means to strengthen ‘a major intensification’ of the partnership,” union minister for road transport and highways Kamal Nath said while addressing the top executives of Canadian companies at the Canada-India Business Council (C-IBC) in Toronto on Tuesday. India and Canada are working on a new set of rules of commercial engagement to give a boost to bilateral trade and investments. Describing Toronto as a “crucible of diversity,” where more than 52% of the Indo-Canadian lives, Nath said that both countries believe and practice the same ethos and values that were fundamental to human dignity and it gives us a “a great sense of fulfillment.” The minister invited Canadian investment in infrastructure and said that the ountry would need to spend $1 trillion over the next Five Year Plan in infrastructure to improve the economic conditions of the millions living in the villages in India. Nath said, “The Centre is aiming to spend $514 bn in the infrastructure sector by 2012 as core sector growth is key for attaining 9-10% GDP growth.” The Indian economy grew by 6.7% in 2008-09 and at an accelerated pace of 7.2% in 2009-10. The minister said that the next decade will be the “decade of infrastructure” in India and invited Canadian investors to participate in it. Nath said infrastructure was the buzz word globally and India offers great opportunities for investors. “Whether you look at East Asia, the US or Africa, the stress is on reinvestment in infrastructure - that is what will generate economic activity,” the minister said, adding that India faces the biggest deficit in infrastructure, with national highways accounting for just two per cent of the total road network. Source: LatestNews-Home - Livemint.com | 24 Mar 2010 | 1:58 am Euro struggles at 10 month lows, Greece drags - Reuters
Source: Business - Google News | 24 Mar 2010 | 1:55 am Govt mulling autonomy for nuclear power regulatorNew Delhi: As it puts in place massive expansion plans in the nuclear power sector, government is mulling giving autonomy to the atomic energy regulator by amending the relevant laws. “We are examining proposals to make the Atomic Energy Regulatory Board (AERB) by amending the Atomic Energy Act (AEA),” official sources said in New Delhi. Currently, the AERB functions under the Atomic Energy Commission chaired by secretary, Department of Atomic Energy (DAE). The DAE at present runs 18 nuclear power plants across the country through state-run Nuclear Power Corporation of India Limited (NPCIL). There have been demands from various quarters for quite some time on granting autonomy to the domestic nuclear regulator. However, the government does not have any fixed timetable within which the amendments have to be carried out. The autonomy to AERB is necessary with the NPCIL joining hands with large public sector companies like National Thermal Power Corporation and Indian Oil Corporation for setting up atomic power plants. The AEA also needs to be amended to bring it in line with certain international conventions on safety of nuclear materials that India is party to. The first Atomic Energy Act was enacted in 1948 when the Department of Atomic Energy was formed. It was later repealed and transformed into Atomic Energy Act in 1962. The Act provides for development, control and use of atomic energy for welfare of people of India. In 1971, under one of its guidelines, radiation protection rules came into force under the director, Directorate of Radiation Protection, which was meant mainly for non-DAE units or industries. In 1983, under section 27 of the Act, regulation and safety functions were delegated to the newly formed Atomic Energy Regulatory Board. Source: LatestNews-Home - Livemint.com | 24 Mar 2010 | 1:34 am China buys white sugar, India wants to renegotiateSingapore: Small quantities of Thai white sugar were sold to Vietnam and China at $550 to $560 a tonne including freight for nearby shipments as London futures sank, dealers said on Wednesday. There were no signs of buying from India, the world’s largest sugar consumer, despite the falling prices. London futures have tumbled nearly 40% since hitting record at $767 a tonne in January. Thai raw sugar premiums roared to a 16-year high at 300 points after New York futures hit a 9-month low. “There have been some major problems in recent weeks with possible ‘renegotiations´ of white sugar sales into India,” a dealer in Singapore said. “However, on the other hand, raw sugar premiums for Thai sugar have gone ballistic. Evidently there is very little physical Thai raw sugar left, and those with any are demanding very steep premiums,” he added. White sugar broke below $500 on Tuesday, with May ending down $33.80 or 6.7% at $473.70 a tonne after earlier trading at $472, the lowest level for the front month contract since 23 July, 2009, on improving crop in India. Some dealers had estimated that India contracted to buy around 900,000 tonnes of white sugar in the crop season which began in October last year. But the country is likely to delay sugar imports until later this year as the farm minister says domestic output may hit 17 million tonnes and top producer Brazil will provide enough sweetener from its crop to lower prices further. [ID:nSGE62H074] May raws in New York tanked 1.27 cents or 7.1% to finish at 16.57 cents a lb, the weakest settlement for the spot contract since 26 June. It was the biggest one-day fall for sugar since 1 March, when it dropped 7.75%. Dealers normally push up premiums to compensate for losses in futures prices but the physical market for raws was quiet. There were several deals for white sugar but volumes were low. “The volumes are very small at less than 1,000 tonne. But we are moving along with futures prices now below $500. There are deals being done recently to Vietnam and China,” a dealer in Singapore said. “We’ve got a lot of inquiries since Monday,” he said. In early March, Thai white sugar was sold to Indonesia, Vietnam and the Philippines at as high as $700 a tonne, including freight. Vietnam aims to import 280,000 tonnes of raw and refined sugar this year to keep a lid on domestic prices, while China has stepped up purchases after drought hit cane and rubber growing areas, dealers said. Source: Home - Livemint.com | 24 Mar 2010 | 1:23 am Govt calls for harsh steps to cut losses of oil firmsState-owned oil firms have invested over Rs40,000 crore in upgrading their refineries to produce cleaner Euro-IV grade fuelSource: Daily News & Analysis: Money News | 24 Mar 2010 | 1:22 am Samsung's Lee returns as chairman to boost growthSEOUL (Reuters) - The man behind Samsung Group's rise to become the world's largest electronics powerhouse returned to head its flagship unit, two years ago after being indicted over financial misdeeds.Source: Reuters: Money News | 24 Mar 2010 | 1:16 am No confusion over direct access to Headley: ChidambaramLondon: Union home minister P Chidambaram has said that there was no confusion over the issue of Indian investigators getting direct access to Pakistani-American LeT operative David Coleman Headley or not. “No, I don’t think so,” Chidambaram shot back when asked whether there was a U-turn by the US after its envoy in New Delhi Timothy J. Roemer said that “no decision on direct access for India to David Headley has been made.” “...If you reflect more carefully that sentence (of Roemer) no way (it) contradicts what the US attorney (Eric Holder) has told me,” Chidambaram, who is here on an official visit, told a TV news channel. Last night home secretary GK Pillai said that India was not taking cognisance of Roemer’s remarks and would be sending its investigators to the US at the earliest. “I think we are going ahead and we are not really taking cognisance of the US ambassador’s remarks,” he said. 49-year-old Headley had last week pleaded guilty to all the 12 terror charges of conspiracy involving bombing public places in India, murdering and maiming persons and providing material support to foreign terrorist plots and Pakistan-based LeT besides aiding and abetting the murder of six US citizens in the 26/11 attacks that killed 166 people. Following a telephonic discussion with Holder, Chidambaram had directed National Intelligence Agency and other agencies concerned in the case to quickly prepare documents necessary to start a judicial proceeding in which Indian authorities could require Headley to answer questions and to testify. Headley will cooperate with Indian investigators: lawyer Chicago: Pakistani-American terrorist David Coleman Headley, who has confessed to plotting Mumbai attacks, will cooperate with Indian authorities as required under the terms of his plea agreement if the US government allows, his lawyer has said. John Theis said 49-year-old Headley’s terms of the plea agreement on 18 March requires that he allows himself to be interviewed by Indian authorities. “Headley will cooperate to the extent it is required to by the terms of his plea agreement but as for the specifics I think really our government and our US attorney’s office have to be the ones to determine the actual form (of access),” he told PTI when asked to comment about US ambassador Timothy J. Roemer’s statement that no decision on direct access for India to David Headley has been made. “He is in US custody and so interviewing him does implicate the security issues and things like that,” Theis said. When asked if Indian investigators, who come to the US, can be assured that they would get access to Headley and be able to put their questions to him, Theis said: “I’m not the one to ask that. You will have to ask our government, our US attorney’s office. They are the ones who are going to determine how this actually happens.” Meanwhile, an FBI spokesperson told PTI: “If the plea agreement says that Headley has agreed to meet with investigators from India, then that is what he will do. It is a question of when and where. But I’m sure if that is what he agreed to, that is what will happen.” Source: Home - Livemint.com | 24 Mar 2010 | 1:13 am After IT, it's decade of infrastructure in India: Kamal NathIndia's Minister for Roads and Transport Kamal Nath said in Toronto that the next decade will be the "decade of infrastructure" in India and invited Canadian investors to participate in it.Source: HindustanTimes.com - Top Business News Headlines | 24 Mar 2010 | 12:48 am Aid to Pakistan is complicated business for USWashington: US and Pakistani officials meet in Washington to discuss everything from security cooperation to how best to deliver aid for water, power, agriculture and other projects. The United States is the biggest foreign donor to nuclear-armed Pakistan but that aid - both military and civilian - has often been a source of mistrust in the relationship, with suspicion over US intentions. Here are some questions and answers on aid to Pakistan: How much aid has Washington given since 2002? Since the 11 September attacks on the United States in 2001, Washington has given more than $15 billion in aid to Pakistan, with more than two-thirds of that for security-related work. Washington wants Pakistan to help hunt for al Qaeda leaders - thought to be sheltering along the Pakistan/Afghanistan border - and to stop militants from crossing over into Afghanistan to fight US-led forces there. What are the details of the security aid? Security-related funding requests for this year amounted to about $2.5 billion, which was distributed among several US funds, according to congressional documents. The United States has also provided F-16 fighter jets and is handing over a refurbished US frigate to Pakistan by August. Washington also plans to send 1,000 laser-guided bomb kits to Pakistan this month and is considering additional arms sales to help the Pakistani air force crack down on insurgents in the Afghan border region. The United States has promised to provide surveillance drones to Pakistan but has refused so far to offer sensitive technology for those pilotless aircraft. How much civilian aid is in the pipeline? The US Congress passed legislation last October for a $7.5 billion civilian aid package for Pakistan over the next five years. Congress has appropriated $1.45 billion for 2010 and the State Department has submitted its plan for spending. What is the public view in Pakistan? When the $7.5 billion package was announced last year, it was met with great suspicion in Pakistan, whose military said too many conditions were attached to the funds. The public was also deeply critical of the money, with the virulence of the anger taking US officials by surprise. What are the priorities for civilian aid? Boosting energy capacity in Pakistan is a major push, with daily power cuts weighing on the economy and public patience. Other priorities are water, agriculture, health and education. Another reason for focusing on power is to ensure Pakistan does not turn to US foes such as Iran, which signed a pipeline deal with Islamabad recently. This is not on the official agenda of this week’s talks in Washington but experts say it will be the “elephant in the room” during energy talks. Pakistan is pushing for a nuclear cooperation deal with Washington, much like the United States has with India, but the Americans are lukewarm to this idea. Is there a shift in how aid is handled? Yes, the Obama administration wants to steer away from so-called big box contractors popular with the Bush administration and US-based non-governmental organizations. The plan now is to funnel a great deal of aid via local NGOs and directly through Pakistan’s civilian government. The hope is this approach will build local capacity. But many local NGOs do not yet have the ability to handle big amounts of money and Congress demands strict monitoring and accountability of US funds. While there is still a focus on going local, the plan is now more of a “hybrid approach” with both US and Pakistani NGOs being used, as well as the national and regional governments. What about accountability? Up to 15 Pakistani accounting firms have been hired to do about 70 surveys of NGOs and government departments before money is actually awarded. So far, 20 of these “pre-award” surveys have been done and 20 more are underway, said a senior US official. What does Congress think? Lawmakers complain the spending plan sent to Congress last month was too skimpy. Senators John Kerry and Richard Lugar raised their concerns in a letter to secretary of state Hillary Clinton this month and questioned whether the money would be used in a way that most effectively improves Pakistani lives. A senior US official said the Obama administration was working hard to be responsive to Pakistani needs. She said it was difficult getting the right oversight mechanisms in place and it took time to negotiate with the Pakistani government. Does the US have enough staff to deal with aid? Criticism has been robust that the Obama administration does not have the capacity to handle such large amounts of money. A senior US official said there were about 60 USAID staff in Pakistan, with a plan to increase that to 94 by the end of next year or double it to 120. What do US aid groups think? US aid groups mostly applaud the new focus but say it will be hard to show quick results needed to stem anti-American sentiment and sustain US support. They have also fought hard not to have aid seen as an extension of the administration’s counter-insurgency strategy in the region, a linkage that puts humanitarian workers at risk. “It is important that those receiving resources are seen as working for the people and not a particular political objective,” said Sam Worthington, president of the aid group InterAction, which represents about 150 groups in the United States. Why is the aid seen as important? The aid program is seen as an important tool for the long-term stabilization of Pakistan and a way to help turn around anti-American sentiment. “This is the ultimate test of the administration’s smart power,” said Brian Katulis, a senior fellow at the Center for American Progress. Source: Home - Livemint.com | 24 Mar 2010 | 12:36 am Private infrastructure bonds too eligible for tax breakThe Finance Minister, Mr Pranab Mukherjee, today said that infrastructure bonds issued by both the public as well as private sector entities will qualify for the additional tax deduction of Rs 20,000 proposed in BudgetSource: Business Line - Home Page | 24 Mar 2010 | 12:00 am Buoyant exports point to good coffee cropThe sharp upturn in coffee exports – including the premium arabica parchment variety – since January suggests that the post-monsoon production estimate of the Coffee Board of 2.9 lakh tonnes in 2009-10 may beSource: Business Line - Home Page | 24 Mar 2010 | 12:00 am ‘Govt determined to make a difference to common man's life'India's foray into information technology (IT) is now a well-known success story with Indian IT companies having become iconic by specialising in niche products over the years, particularly in Europe and North America, including theSource: Business Line - Home Page | 24 Mar 2010 | 12:00 am Cairn says it can produce more oil from Rajasthan fieldsCairn India is confident of producing 240,000 barrels of oil a day from its Rajasthan oil fields backed by an enhanced resource base. Earlier projections said that the company, at peak, would produce 175,000 barrels of oil a day (bopd) throughSource: Business Line - Home Page | 24 Mar 2010 | 12:00 am Maruti Suzuki lines up Rs 1,260-cr investmentThe largest domestic carmaker, Maruti Suzuki said on Tuesday that it would invest around Rs 1,260 crore to expand the capacity of its engine plant. This plant produces the new K-Series petrolSource: Business Line - Home Page | 24 Mar 2010 | 12:00 am ‘Market looking positive from a 3-year perspective'Even before the close of the fourth quarter, markets are jubilant on the strong advance tax numbers reported. Business Line spoke to Mr Sandip Sabharwal, CEO — Portfolio Management Services, Prabhudas Lilladher to find if all thisSource: Business Line - Home Page | 24 Mar 2010 | 12:00 am Mobile operators' gear purchase comes to a halt as DoT tightens security clearancePurchase of network equipment by mobile operators has come to a complete halt for the past three months following an order by the Department of Telecom to get security clearance before buying any hardware orSource: Business Line - Home Page | 24 Mar 2010 | 12:00 am AT&T buys 8% stake in Tech Mahindra for $197 millionAmerican telecom major AT&T Inc has bought an 8.07 per cent stake in Indian IT services firm Tech Mahindra Ltd for about $197Source: Business Line - Home Page | 24 Mar 2010 | 12:00 am Wipro Infotech short-listed for Rs 2000-cr govt projectWipro Infotech is among the seven short-listed bidders for a key Rs 2,000-crore government project which will help security agencies keep track of criminal activities across theSource: Business Line - Home Page | 24 Mar 2010 | 12:00 am An advertising victory for GoogleAs Google faces stinging criticism from China after redirecting all search requests for its Chinese service to Hong Kong, the search engine giant has scored a major victory in Europe's highestSource: Business Line - Home Page | 24 Mar 2010 | 12:00 am Adobe sees strong revenue on new software launchAdobe will unveil next-generation versions of its top-selling Creative Solutions software line, dubbed CS5, on April 12, executives said, and start shipping the product in English, French, German and Japanese before the end of the current quarter.Source: Daily News & Analysis: Money News | 23 Mar 2010 | 11:58 pm HTC CEO says Q1 results better-than-expectedInvestors had been disappointed about HTC's forecast for profit margins for the current quarter.Source: Daily News & Analysis: Money News | 23 Mar 2010 | 11:57 pm Nikkei hits 2-month peak in broad rally, Nintendo jumpsNintendo Co Ltd soared almost 9% after the video game maker said it plans to launch a new model of its DS handheld game gear that allows users to play 3D games without requiring the use of special glasses.Source: Daily News & Analysis: Money News | 23 Mar 2010 | 11:56 pm Pepsico engages 12,000 farmers in contract farmingRiding on high sales of its snacks brands like Lays and Uncle Chipps, Pepsico has engaged 12,000 farmers across the country for contract farming of potato.Source: India Business News | Business News - Times of India | 23 Mar 2010 | 11:54 pm Chinese daily accuses Google of helping US intelligenceGoogle on Monday shut its mainland Chinese-language portal Google.cn and began rerouting searches to a Hong Kong site.Source: Daily News & Analysis: Money News | 23 Mar 2010 | 11:08 pm US tells China to mull ‘implications’ of Google moveWashington: The United States cautioned that China must consider the “implications” of Google’s decision to effectively shut down its Chinese search engine because of censorship and cyber-hacking. China has angrily attacked Google for stopping censorship of its Chinese-language search engine but said there should be no broader fallout in Sino-US ties provided there is no political meddling in the United States. While the Chinese press on Wednesday said Google would regret its move, both countries appeared keen to limit the row as they strive to get one of the world’s defining relationships back on track after months of tension. State Department spokesman Philip Crowley said the United States respects but was “not party” to Google’s decision to redirect Web search queries from mainland China to an uncensored site in Hong Kong. While Washington stands for Internet freedom, “individual businesses will make judgments as to the investment opportunity in China,” he told reporters on Tuesday. “We value the economic relationship between the United States and China,” Crowley said, citing massive increases in trade over nearly three decades. “That said, were I China, I would seriously consider the implications when one of the most recognizable institutions has decided that it’s too difficult to do business in China.” Despite Google’s promise of uncensored results, searches of politically sensitive key words generated the browser message “cannot display the webpage” -- suggesting China’s “Great Firewall” of Internet control remained intact. In Beijing, officials reserved their ire for Google, which lifted censorship of Google.cn in response to cyberattacks that the company said targeted the email accounts of Chinese rights activists. “I don’t see it influencing Sino-US relations unless some people want to politicize it,” Chinese foreign ministry spokesman Qin Gang said on Tuesday, describing the Google situation as “mainly an individual commercial case.” “If you link this to China-US relations or politicize it, or even link it to China’s international image, this is mere overkill,” Qin said. “China’s market is fully open.” Hours after the Google announcement, Beijing announced that high-level strategic talks with Washington would go ahead in late May. The talks will be the highest-level meeting between the two sides since ties broke down earlier this year, over US arms sales to Taiwan, the value of the yuan and a visit by the Dalai Lama to the White House -- and Internet freedom. Google said it was “business as usual” at its China headquarters, as a fierce debate erupted online between Chinese defenders of free speech and nationalist-minded net users denouncing foreign interference. China’s state media on Wednesday belittled Google’s decision, saying the Internet firm had made a costly mistake in the world’s largest online market. “With its action to shift its search service from the Chinese mainland to Hong Kong yesterday, the world’s top search engine has made a huge strategic misstep in the promising Chinese market,” the Global Times said. The China Daily said “Google’s efforts to make this issue into a political spat” had failed to gain traction, and relished the “moment of peace” created by the company’s decision two months after the dispute erupted. Despite its decision, Google said it plans to maintain its sales and research and development teams in China, which has the world’s largest online population at 384 million. Google launched Google.cn in January 2006 after agreeing to censor websites for content banned under Chinese law. Google.cn is the second-largest search engine in China after Baidu. Source: LatestNews-Home - Livemint.com | 23 Mar 2010 | 11:08 pm US tells China to mull ‘implications’ of Google moveWashington: The United States cautioned that China must consider the “implications” of Google’s decision to effectively shut down its Chinese search engine because of censorship and cyber-hacking. China has angrily attacked Google for stopping censorship of its Chinese-language search engine but said there should be no broader fallout in Sino-US ties provided there is no political meddling in the United States. While the Chinese press on Wednesday said Google would regret its move, both countries appeared keen to limit the row as they strive to get one of the world’s defining relationships back on track after months of tension. State Department spokesman Philip Crowley said the United States respects but was “not party” to Google’s decision to redirect Web search queries from mainland China to an uncensored site in Hong Kong. While Washington stands for Internet freedom, “individual businesses will make judgments as to the investment opportunity in China,” he told reporters on Tuesday. “We value the economic relationship between the United States and China,” Crowley said, citing massive increases in trade over nearly three decades. “That said, were I China, I would seriously consider the implications when one of the most recognizable institutions has decided that it’s too difficult to do business in China.” Despite Google’s promise of uncensored results, searches of politically sensitive key words generated the browser message “cannot display the webpage” -- suggesting China’s “Great Firewall” of Internet control remained intact. In Beijing, officials reserved their ire for Google, which lifted censorship of Google.cn in response to cyberattacks that the company said targeted the email accounts of Chinese rights activists. “I don’t see it influencing Sino-US relations unless some people want to politicize it,” Chinese foreign ministry spokesman Qin Gang said on Tuesday, describing the Google situation as “mainly an individual commercial case.” “If you link this to China-US relations or politicize it, or even link it to China’s international image, this is mere overkill,” Qin said. “China’s market is fully open.” Hours after the Google announcement, Beijing announced that high-level strategic talks with Washington would go ahead in late May. The talks will be the highest-level meeting between the two sides since ties broke down earlier this year, over US arms sales to Taiwan, the value of the yuan and a visit by the Dalai Lama to the White House -- and Internet freedom. Google said it was “business as usual” at its China headquarters, as a fierce debate erupted online between Chinese defenders of free speech and nationalist-minded net users denouncing foreign interference. China’s state media on Wednesday belittled Google’s decision, saying the Internet firm had made a costly mistake in the world’s largest online market. “With its action to shift its search service from the Chinese mainland to Hong Kong yesterday, the world’s top search engine has made a huge strategic misstep in the promising Chinese market,” the Global Times said. The China Daily said “Google’s efforts to make this issue into a political spat” had failed to gain traction, and relished the “moment of peace” created by the company’s decision two months after the dispute erupted. Despite its decision, Google said it plans to maintain its sales and research and development teams in China, which has the world’s largest online population at 384 million. Google launched Google.cn in January 2006 after agreeing to censor websites for content banned under Chinese law. Google.cn is the second-largest search engine in China after Baidu. Source: Tech News - Livemint.com | 23 Mar 2010 | 11:08 pm Facebook helps Capital Foods to scale up noodles salesA growing reach of popular social networking websites such as 'FaceBook' has been effectively used by FMCG player Capital Foods to push up noodles and soup sales over the last six months.Source: HindustanTimes.com - Top Business News Headlines | 23 Mar 2010 | 11:04 pm Schindler's list on sale for $2.2 mnOne of the only surviving copies of Holocaust hero Oskar Schindler's list of Jews that he saved from the Nazis is going on sale for $2.2 million.Source: HindustanTimes.com - Top Business News Headlines | 23 Mar 2010 | 11:02 pm IOC and Oil India say no plan to hike Gulfsands bidLONDON/NEW DELHI (Reuters) - Indian Oil Corporation and Oil India are not planning to raise their $570 million takeover bid for Gulfsands Petroleum, which the UK-listed explorer rejected as inadequate.Source: Reuters: Money News | 23 Mar 2010 | 11:00 pm Oil falls to near $81 on US crude supplies jumpSingapore: Oil prices fell to near $81 a barrel Wednesday in Asia after a report showed a larger-than-expected jump in US crude inventories last week. Benchmark crude for May delivery was down 62 cents to $81.29 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract gained 31 cents to settle at $81.91 a barrel on Tuesday. Oil supplies in the US have risen sharply in recent weeks, belying a slow but steady overall economic recovery and suggesting consumer demand remains weak. Crude inventories jumped last week by 7.5 million barrels, the American Petroleum Institute said late Tuesday. Analysts had expected an increase of 1.7 million barrels, according to a survey by Platts, the energy information arm of McGraw-Hill Cos. Inventories of gasoline and distillates fell, the API said. The Energy Department’s Energy Information Administration is scheduled to announce its supply report later Wednesday. In other Nymex trading in April contracts, heating oil fell 1.09 cents to $2.091 a gallon, and gasoline slid 4.14 cents to $2.241 a gallon. Natural gas dropped 1.8 cents to $4.112 per 1,000 cubic feet. In London, Brent crude was down 52 cents at $80.18 on the ICE futures exchange. Source: Home - Livemint.com | 23 Mar 2010 | 10:43 pm 'Adani made crores from land'Congress leader Shaktisinh Gohil says Adani group got land free but sold it at high prices.Source: Daily News & Analysis: Money News | 23 Mar 2010 | 10:39 pm Wall St jumps on industrials, materials and techNew York: US stocks rallied on Tuesday, led by the tech, industrial and materials sectors, driving the Dow and the S&P 500 to 18-month highs. Signs of improved demand in the semiconductor industry and a broker’s positive commentary on Caterpillar lifted blue chips, while tech bellwethers Apple and Cisco hit 52-week highs, indicating increased optimism among investors. Kraft, a Dow component, also hit a 52-week high. Caterpillar Inc led the Dow industrials higher after Wells Fargo raised price targets on the company’s stock on expectations for strong longer-term growth. The stock climbed 4.1% to $62.41. “Industrials have been among the best performers so far this year, so they’re getting a lot of the momentum money,” said John Massey, portfolio manager at SunAmerica Asset Management in Jersey City, New Jersey. “I think it’s clear we’re on an upward path.” The S&P industrials sector was the S&P 500’s best-performing sector, with the S&P materials sector also lending support. Both indexes ended slightly above 1%. Semiconductor stocks were also strong performers, lifting the Nasdaq. The Philadelphia semiconductor index rose 2.3%, while Intel Corp gained 1.9% to $22.67. Integrated Silicon Solution Inc surged 14.6% to $8.58 a day after it raised its second-quarter revenue and earnings outlook. According to Stifel Nicolaus, which cited a media report, Taiwan Semiconductor Manufacturing forecast full-year revenue growth of 22%, compared with a previous expectation of 18%. The company’s U.S.-listed stock rose 0.9% to $10.27 on the New York Stock Exchange. The Dow Jones industrial average rose 102.94 points, or 0.95%, to 10,888.83. The Standard & Poor’s 500 Index gained 8.36 points, or 0.72%, to 1,174.17. The Nasdaq Composite Index shot up 19.84 points, or 0.83%, to 2,415.24. The Dow chalked up its 10th day of gains out of the past 11 sessions. The Nasdaq Composite Index ended at its highest level since 18 August, 2008, or about a month before Lehman Brothers collapsed during the credit crisis. After the closing bell, design software maker Adobe Systems gained 5.1% to $37 in extended trading after reporting an adjusted first-quarter profit that beat expectations. It also posted revenue above consensus. On the downside, Jabil Circuit sank 5.5% to $17.34 after reporting its second-quarter results. During the regular session, the US-listed shares of Brazilian mining giant Vale rose 5.1% to $31.57 after the company on Tuesday implemented a more flexible pricing system for iron ore. Brazilian business daily Valor Economico reported that Vale was boosting iron prices by 114% in 2010. Among US metal companies, US Steel Corp gained 4.9% to $63.32. Earlier in the session, Wall Street got a hint of stabilization in the US housing sector. Existing home sales fell to an annual rate of 5.02 million units in February, the National Association of Realtors said. The decline was less than forecast, but highlighted the fragility of a housing recovery. “It’s incremental good news that it was better than expected, but given the huge overhang of inventory, it’s clear that housing will remain a troubled sector for awhile,” said Jack Ablin, chief investment officer of Harris Private Bank in Chicago. Builder KB Home dropped 1.7% to $17.15 after posting a wider-than-expected quarterly loss. Healthcare stocks lagged, giving back some of Monday’s gains after US President Barack Obama signed the landmark healthcare reform bill into law on Tuesday. The Morgan Stanley Healthcare Payor index dropped 0.3% and Cigna Corp fell 0.9% to $36.94. US-listed shares of Baidu Inc jumped 2.6% to $594.88 after rival Google Inc shut down its mainland China portal and began rerouting searches to its Hong Kong operation. Google shares slid 1.5% to $549. About 8.03 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below last year’s estimated daily average of 9.65 billion. Advancing stocks outnumbered declining ones on the NYSE by a ratio of more than 2 to 1. On the Nasdaq, roughly two stocks rose for every one that fell. Source: Home - Livemint.com | 23 Mar 2010 | 10:37 pm Facebook helps Capital Foods boost salesMumbai: A growing reach of popular social networking websites such as Facebook has been effectively used by FMCG player Capital Foods to push up its noodles and soup sales over the last six months. The company, which is an emerging player in the country’s consumer market, has seen a 30% growth over the last six months in its revenues from the sale of food items after it ran an advertising campaign on Facebook, its chairman and managing director Ajay Gupta said. “Advertisement campaigns in the social networking sites such as Facebook and Twitter is the new marketing strategy these days. We have seen a 30% rise in our revenues in the last six months after we launched the campaign for our Ching’s noodles and soups on Facebook,” Gupta told PTI here. The Mumbai-based firm, which clocked a turnover of Rs210 crore in the last financial year, expects to achieve a total turnover of Rs300 crore in the current fiscal from its operations in both domestic and foreign market, Gupta said. The company, which makes instant noodles, soups and sauces under Ching’s Secret, and ‘Smith and Jones’ brands, has targeted a monthly sales growth of 5% through its campaigns in Facebook and Twitter, he said. Source: LatestNews-Home - Livemint.com | 23 Mar 2010 | 10:36 pm Wheat, rice stocks swell; exports possibleNew Delhi: India’s wheat and rice stocks more than doubled as at 1 March, government sources said on Monday, indicating the country’s ability to free some stocks for exports and open market sale. Stocks of wheat were at 18.4 million tonnes, sharply higher than a target of 8.2 million tonnes, while that of rice were at 26.9 million tonnes compared with a targeted 11.8 million tonnes. Bulging stocks and prospects of a bumper wheat crop in 2010, the fourth in a row to exceed demand, have raised concerns about storage. Union agriculture minister Sharad Pawar last week said a panel of ministers led by finance minister Pranab Mukherjee would meet this week to discuss lifting of a ban on exports of wheat and common grades of rice. Analysts say India must export more wheat to accommodate the new crop to be harvested from March 10. The country has already allowed state-run firms to ship small quantities of wheat and regular grades of rice to neighbours Sri Lanka and Nepal. India, the world’s second-biggest producer of wheat and rice, buys grains from domestic farmers to run various welfare programmes, protect farmers from distress sale, and meet emergency needs. Source: LatestNews-Home - Livemint.com | 23 Mar 2010 | 10:18 pm Cairn India: Investors can stay invested, get full benefits - Economic Times
Source: Business - Google News | 23 Mar 2010 | 7:01 pm Piramal buys Cipla's i-pill for Rs 95 crore - Economic Times
Source: Business - Google News | 23 Mar 2010 | 7:01 pm ATT will not have board representation: Tech MahindraThe ATT management has exercised this option as per the 2005 agreement, Vineet Nayyar, ViceChairman and Managing Director, Tech Mahindra, told CNBCTV18.Source: Moneycontrol Top Headlines | 23 Mar 2010 | 4:28 pm Need longterm debt mkt for infra: Feedback VenturesIn an interview with CNBCTV18, Vinayak Chatterjee, Chairman, Feedback Ventures gave his perspective on the cues that he picked up from the conference.Source: Moneycontrol Top Headlines | 23 Mar 2010 | 4:05 pm Kingfisher Airlines to more than double fleet strengthKingfisher Airlines plans to more than double its fleet strength, reports CNBCTV18. The private airliner plans to add 67 more aircraft from 2012.Source: Moneycontrol Top Headlines | 23 Mar 2010 | 3:58 pm Return to high growth should not be taken for granted: PM - Times of India
Source: Business - Google News | 23 Mar 2010 | 3:49 pm Air India to get an expat COO: SourcesAir India is likely to get an expat chief operating officer (COO), reports CNBCTV18, quoting Mint. Sources said all five applicants shortlisted by Air India are expats.Source: Moneycontrol Top Headlines | 23 Mar 2010 | 3:38 pm AT&T picks up 8.07% stake in Tech Mahindra - Economic Times
Source: Business - Google News | 23 Mar 2010 | 3:28 pm Alok Ind raises Rs 400cr via QIP issueThe qualified institutional placement (QIP) book of Alok Industries has closed, reports CNBCTV18. The company has raised Rs 400 crore via the QIP issue, priced at Rs 23.32 per share.Source: Moneycontrol Top Headlines | 23 Mar 2010 | 3:24 pm RBI changes accounting rule for bond reposThe Reserve Bank of India (RBI) on Tuesday said accounting guidelines for repurchase agreements (repos) in bonds would treat such transactions as a legal sale or purchase, rather than two independent buy and sell deals.Source: Moneycontrol Top Headlines | 23 Mar 2010 | 3:05 pm Indian operations growing at 100%: Michael DellComputer maker Dell\'s Indian operations are growing at 100%, said its Founder Michael Dell. \"ndia is the fastest growing market for us. We have already started exporting from Chennai plant to West Asia.\"Source: Moneycontrol Top Headlines | 23 Mar 2010 | 2:50 pm Dell upbeat about India, sees faster growth here than China - Economic Times
Source: Business - Google News | 23 Mar 2010 | 2:06 pm It is a myth that MFs chase corporate investors A little short of completing a decade in the Indian mutual funds industry, HDFC Asset Management Co. Ltd is now India’s second-largest mutual fund. Milind Barve, managing director, chronicles the journey of the fund house that won the best equity fund house award by Morningstar at a ceremony on Monday.  Committed: Barve says the fund remains devoted to retail customers. Abhijit Bhatlekar / Mint How different was 2009 from 2008 for your equity funds? Markets were very volatile in 2008 and it was a bad year for equities. HDFC mutual fund’s equity schemes have a predominantly retail investor base, especially through systematic investment plans (SIP). We, therefore, also have a stable investor base. Neither did our investors panic and sold, nor did we panic and got out of equities. We stayed invested in the equity markets throughout. Occasionally, we bought defensive stocks but we consciously chose to remain invested. The turnaround in 2009 was expected though nobody could have predicted correctly and accurately the swiftness with which the equity markets rebounded. Of course, it was known that India’s economic fundamentals are different from many international economies; hence, we were anyway fully invested in equity market. In 2009, markets went off on a different trajectory altogether. To stay invested in equity has been your fund’s conscious decision, isn’t it? Our equity funds are mandated to remain invested because our investors have given us a mandate to invest in equity markets and not sit on cash. If we have a view on the markets and which direction they are set to take off, we take a call on holding high beta or low beta stocks.  HDFC Asset Management crossed the Rs1 trillion mark for the first time recently. Has our industry matured or is there just a lot of corporate money floating around? The Indian mutual fund (MF) industry has two business segments. One segment belongs to large, institutional investors, who invest in short-term income funds, money market funds and so on. Money coming from this segment largely depends on systemic liquidity that is prevalent in the financial system. It is simply a phenomenon, whereby if there is liquidity, money pours into mutual funds and also in bank fixed deposits, which by the way, also accepts money from corporates. It’s just that we happen to be the beneficiaries. This is what happened in 2009. This segment will remain dependant on the liquidity scenario. Money keeps coming in and going out. Also See | Best Fund House: Equity (Graphic) The second segment is largely favoured by retail investors. Around 90% of our equity fund investors are SIP customers or new customers. Our equity funds help us get new customers. If they would have stayed invested—or would have systematically invested—in our equity funds in the past three to four years, they would have made good money. It is a myth that mutual funds chase corporate investors. Banks do not turn away institutional investors. They also accept large deposits. Accepting institutional money is not a sin. It helps, in whatever way it does, to improve our bottom-line, it brings volume and helps us lower costs. As long as our heart and soul is devoted to serving retail customers, it’s fine to accept institutional money also. We remain committed, though, to the retail investor. Apart from an occasional infrastructure fund, you have not launched any sector funds. Why? Although there is a market for sector funds, investors need a high degree of understanding of a particular sector when he or she chooses to invest in such sector funds. For much of the time, we look at acquiring customers who have not been exposed to the capital market. These are first-time investors. For such investors, we need to launch and manage simple products. We can’t throw sector funds at them because not many of them are well-equipped and have the necessary understanding to invest in them. I don’t think we need innovation in this industry. The need of the hour is launching simple products that people can understand and invest in. feedback@livemint.com Graphic by Ahmed Raza Khan / Mint Source: LatestNews-Home - Livemint.com | 23 Mar 2010 | 1:45 pm Royal Challengers beat Chennai Super Kings by 36 runsBangalore: Robin Uthappa cracked a dazzling half-century, while R Vinay Kumar scalped four wickets to help Royal Challengers Bangalore beat Chennai Super Kings by 36 runs in their Indian Premier League match here on Tuesday. Put into bat, Bangalore first rode on Uthappa, who blasted 68 runs off 38 balls, to post a competitive 171 for five after a slow start and then restricted Chennai at 135 for seven to stretch their winning streak to three games. Pacer Vinay Kumar emerged as the wrecker-in-chief and he was ably supported by skipper Anil Kumble and Praveen Kumar, who picked one each giving away 15 and 21 runs to bring Chennai’s downfall at the M Chinnaswamy stadium here. Earlier, Uthappa starred in a 19-ball 52-run stand with Mark Boucher to take Royal Challengers Bangalore past the 150-mark. Struggling at 119 for five in 17 overs, RCB piled up 52 runs in the last three overs, thanks to the unalloyed blitzkrieg of Uthappa, who unleashed an array of attacking strokes to destroy the Super Kings. In the 19th over, the Karnataka batsman launched a brutal attack on Lakshmipathy Balaji and clobbered him for three successive sixes to set the stands on fire. His awe-inspiring innings was studded with three fours and six sixes. Chasing 172 to win, Chennai had a shaky start when they lost opener Parthiv Patel (1) in the last ball of the first over off Praveen Kumar. However, Matthew Hayden (32) and George Bailey (18) steadied the ship with a crucial 55-run partnership for the first wicket but with Praveen and Dale Steyn bowling a tight line, the duo could not free their arms. Skipper Anil Kumble also bowled brilliantly to further suffocate the duo as Chennai reached 29 for one in six overs. Still needing 143 off 84 balls, Hayden took refuge to his Mongoose bat and belted three successive fours off Jacques Kallis in the eighth over to ease the pressure.  Royal Challengers Bangalore’s RobinUthappa plays a shot during the IPL3 match against Chennai Super Kings at Chinnaswami Stadium in Bangalore on Tuesday. Shailendra Bhojak / PTI However, the euphoria was shortlived as the Chennai lost both the set batsmen in the 10th over off R Vinay Kumar. While Hayden was run out by Rahul Dravid, Bailey failed to negotiate an away going delivery and edged it to Mark Boucher as Chennai were reduced to 59 for three in 9.4 overs.  Kumble then dismissed Murali Vijay (3) in his fourth over when going for a slog sweep, the Tamil Nadu batsman ended up giving a simple catch to Eoin Morgan at deep midwicket as Chennai looked down the barrel at 74 for five in 12.3 overs. S Badrinath tried to breakfree with his 17-ball 31 but he soon perished as Vinay Kumar took his third wicket of the day. Put into bat, Royals had to struggle hard to keep the scoreboard ticking as pacers Morne Morkel, Sudeep Tyagi and Lakshmipathy Balaji used the pace and bounce in the wicket to straitjacket the RCB batsmen. But it was Muttiah Muralitharan who strangled the RCB batting line up most in the middle overs with his off-spin as the Sri Lankan scalped three wickets -- Rahul Dravid (14), Manish Pandey (20) and Virat Kohli (24) -- for 25 runs. Frustrated at not being able to connect the ball with the meat of their bats, the RCB batsmen charged at Muralitharan only to lose wickets in a heap. However, Uthappa, who was dropped twice -- first by Ravichandran Ashwin and then by Murali Vijay -- held the innings at one end and stepped the gas in the final overs to take Bangalore past the 150-mark and change the course of the match. Scorecard Royal Challengers Bangalore Manish Pandey C Suresh Raina b Muralitharan 20 Jacques Kallis b Balaji 19 Rahul Dravid b Muralitharan 14 Robin Uthappa not out 68 Virat Kohli st Patel b Muralitharan 24 Eoin Morgan b Morkel 1 Mark Boucher (W) not out 11 Bowling Albie Morkel 4-0-28-1 Sudeep Tyagi 4-0-19-0 Lakshmipathy Balaji 4-0-49-1 Muttiah Muralitharan 4-0-25-3 R Ashwin 4-0-0-41 Chennai Super Kings Parthiv Patel c Boucher b Praveen 1 Matthew Hayden run out Dravid 32 George Bailey c Boucher b Vinay 18 Suresh Raina c Kallis b Vinay 9 M Vijay c Morgan b Kumble 3 S Bhadrinath c sub Appanna b Vinay 31 Morne Morkel b Vinay 19 R Ashwin not out 11 L Balaji not out 0 Bowling Praveen Kumar 4-0-21-1 Dale Steyn 4-0-25-0 Anil Kumble 4-0-15-1 Jacques Kallis 4-0-29-0 R Vinay Kumar 4-0-40-4 Source: LatestNews-Home - Livemint.com | 23 Mar 2010 | 1:45 pm Ask Mint | Increasing existing cover is cheaperI am 35 years old and want to take a life cover. Which one should I go for—a whole life plan or a term plan? —Ashish Mishra  Rajiv Jamkhedkar, CEO, Aegon Religare Life Insurance Can an insurer refuse to offer a cover under any circumstance? —T. Ramesh Yes, the company reserves the right to decline a life insurance proposal. Usually, this is done after assessing lifestyle, health and other criteria. This usually depends on a company’s internal policies. I am 42 years old and want to take a life cover of around Rs10 lakh. How much premium would I have to pay? Also, does it make sense to take a health rider with the cover, or should I take a health cover separately? —Avdesh Pratap The premium amount depends on factors such as your current health and the insurance plan you choose. You must consider taking a critical illness (CI) rider along with your life insurance policy. A CI rider provides certain benefits if diagnosed with critical illness conditions such as cancer, heart attack, kidney failure, or stroke. Buy a separate health policy to cover expenses related to hospitalization and medication. Is there a life policy my wife and I can take, which will automatically cover our child as soon as he is born? —Baljinder Duggal Currently, there is no such policy available in the market. First, you must insure your wife’s and your life either through separate plans or a joint life insurance plan. You can then buy a child plan for your newborn that would help you save for your child’s future needs. Some insurance companies offer child plans for kids who are just a day old. I feel that my life cover is insufficient and I want to increase it. Should I bump up my present cover or get a new one? —Ruchi Bhasin Bumping up the sum assured in your existing plan can be cheaper, but it is recommended that you also check the premium rates for similar products from other life insurance companies so that you get the benefit of lower premium and similar, if not better, coverage. Queries and views at feedback@livemint.com Source: LatestNews-Home - Livemint.com | 23 Mar 2010 | 1:45 pm SAT: Shankar Sharma did not disclose SC dismissal of appealShankar Sharma, Vice Chairman and Joint MD, First Global, did not disclose the Supreme Court dismissal of his appeal, the Securities Appellate Tribunal (SAT) said in its order.Source: Moneycontrol Top Headlines | 23 Mar 2010 | 1:43 pm Tata refuses power to RelianceAs the summer temperature continues to rise in Mumbai, suburban power consumers will have to brace themselves to pay more for electricity. Source: HindustanTimes.com - Top Business News Headlines | 23 Mar 2010 | 1:37 pm iPill a strategic fit in co\'s OTC biz: Ajay PiramalPharmaceutical firm Piramal Healthcare has bought the India rights of Cipla\'s emergency contraceptive drug brand iPill for Rs 95 crore in an allcash deal. In an exclusive interview with CNBCTV18, Ajay Piramal, Chairman, Piramal Healthcare gave his perspective on the deal.Source: Moneycontrol Top Headlines | 23 Mar 2010 | 1:34 pm Satyam fiasco has not dented credibility with clients: PwCPricewaterhouseCoopers Chief Dennis Nally believes the Satyam fiasco has not dented its credibility with clients and inspite of the exodus from the firm the company remains on the growth track.Source: Moneycontrol Top Headlines | 23 Mar 2010 | 1:18 pm Economy to touch;$2.5 tn in next 5 years: SharmaCommerce and Industry Minister Anand Sharma on Tuesday expressed confidence that the size of Indian economy is likely to double to $2.5 trillion by 2015. Source: HindustanTimes.com - Top Business News Headlines | 23 Mar 2010 | 1:15 pm Without Google, China’s net will suffer: AnalystsGoogle’s decision to shut down its Chinese-language search engine is likely to stunt the development of the Internet in China and isolate local web users, analysts say. Source: HindustanTimes.com - Top Business News Headlines | 23 Mar 2010 | 1:08 pm Tata Motors offers early conversion of $431-mn bonds to reduce debtTata Motors, Indias largest truck maker, has offered to convert bonds worth $431 million into shares about a year before they mature. The companys share price fell 3 per cent because the conversion would dilute the companys share capital by 4.3 per cent.Source: Business Standard | Front Page Headlines | 23 Mar 2010 | 12:54 pm AT acquires 8.07% stake in Tech Mahindra for Rs 160 croreAT&T Inc, the largest telecom services provider in the US, has acquired an 8.07 per cent stake in Pune-headquartered Tech Mahindra for $34.5 million (around Rs 160 crore) by exercising a 2005 option agreement to buy a stake in the company. Its stake at todays prices on the Bombay Stock Exchange (BSE), however, is worth around Rs 900 crore.Source: Business Standard | Front Page Headlines | 23 Mar 2010 | 12:52 pm Indian cos team up with YunusNobel laureate Muhammad Yunus on Tuesday said some Indian companies have agreed to team up with him on his social business venture on the lines of French dairy major Group Dannone and German sports apparel group Adidas.Source: India Business News | Business News - Times of India | 23 Mar 2010 | 12:50 pm Direct from Dell: Big plans for IndiaMichael Dell smiles a lot. It's easy to, when you're a poster boy for entrepreneurs the world over and head a company whose annual revenue tops $50 billion. But right now, he's particularly happy about India.Source: India Business News | Business News - Times of India | 23 Mar 2010 | 12:50 pm Maruti Suzuki to double petrol engine capacityThe K-series engine currently powers the Swift, A-Star, Ritz, Estilo and SX4 and the plan is to extend it to all the companys petrol models except the Maruti 800. Petrol engine cars account for nearly 60 per cent of the companys sales.Source: Business Standard | Front Page Headlines | 23 Mar 2010 | 12:50 pm Reserves match Mumbai High: CairnCairn India on Tuesday raised the estimate of oil reserves in its Rajasthan fields by 37% and pegged the peak output at 240,000 bpd (barrels per day) or same as Indias biggest oil field - state-run Oil and Natural Gas Corporations Mumbai High. It had earlier projected a peak output of 175,000 bpd.Source: India Business News | Business News - Times of India | 23 Mar 2010 | 12:49 pm AI may list to fund recoveryLoss-making National Aviation Company Ltd (Nacil), which runs national carrier Air India, may opt for an Initial Public Offering (IPO) to finance its modernisation and recovery plans. The airline requires over Rs 24,000 crore to fund its fleet acquisition programme of 60 aircraft.Source: Business Standard | Front Page Headlines | 23 Mar 2010 | 12:49 pm Will govt tweak FDI norm for AI-IA revival?The government may have to re-examine the rule of disallowing foreign airlines to invest in desi ones while finalising on the survival strategy of cash-strapped Air IndiaSource: India Business News | Business News - Times of India | 23 Mar 2010 | 12:48 pm Re closes at 1-week lowThe Indian rupee on Tuesday gave up early gains and dipped to a 1-week low as the US dollar strengthened against some of the other major currencies.Source: India Business News | Business News - Times of India | 23 Mar 2010 | 12:47 pm GAIL ready to join RCF for foraying into GhanaState-run utility GAIL is eyeing a big pie of Ghana's gas infrastructure and retailing market and is willing to team up with fertiliser-maker RCF, which proposes to set up a plant there, as an alternate route to gain access to the African country.Source: India Business News | Business News - Times of India | 23 Mar 2010 | 12:44 pm BMW appoints new president for India opsBMW has appointed Andreas Schaaf as the company's new president for the Indian market in place of Peter Kronschnabl, who moves to Russia as country President.Source: India Business News | Business News - Times of India | 23 Mar 2010 | 12:43 pm Google leaves, China wipes clean its tracesIn New York, Google co-founder Sergey Brin said the “story’s not over yet”. In Beijing, an official spokesman said Google was “totally wrong”. And in the Chinese capital’s Silicon Valley, youngsters left flowers at the Google building.Source: HindustanTimes.com - Top Business News Headlines | 23 Mar 2010 | 12:43 pm Maruti sees tough fight, to invest Rs 4200 croreWhile expecting tougher competition in the Indian market, Maruti Suzuki on Tuesday said it will invest about Rs 4200 crore for expanding R&D and boost car and engine production.Source: India Business News | Business News - Times of India | 23 Mar 2010 | 12:42 pm Honeywell promotes Krishna to exec mgmtIn 2006, Cisco Systems made a dramatic move by selecting Bangalore as a second global headquarters and sending Wim Elfrink to the city to head what it called the Globalization Centre East.Source: India Business News | Business News - Times of India | 23 Mar 2010 | 12:41 pm SCI plans to buy 3 vessels; mulls India-Africa liner routeState-run Shipping Corporation of India plans to buy three new container ships by 2010-end and has earmarked $220-225 million (around Rs 1,050 crore) to fund the purchases, a senior official of SCI said on Tuesday. Source: HindustanTimes.com - Top Business News Headlines | 23 Mar 2010 | 10:40 am Piramal Healthcare’s i-pill acquisition has long-term potentialIn a conference call after its December results, Piramal Healthcare Ltd’s chairman, Ajay Piramal had said that the environment for acquisitions was getting difficult. And that he would prefer an acquisition in the domestic market and in a niche category. Piramal’s acquisition of over-the-counter (OTC) emergency contraceptive i-pill from Cipla Ltd does meet those parameters. I-pill is the market leader in this Rs100 crore category, with nearly one-third share of the market.  But Piramal’s acquisition does not seem cheap, what with it paying about three times sales for this product. The rationale seems to be that it has acquired an OTC product in a new and fast growing market, and one with good growth potential. Cipla has exited this market to focus on the prescription drug market, which is its main strength. Besides, the promotion and usage of OTC contraceptive drugs had also attracted negative publicity. That is a challenge that Piramal will have to face, but it is also better placed to handle an OTC product. The company not only has an extensive distribution network, but also a growing OTC business. In the nine months ended December, Piramal’s OTC business grew by 46.6% to Rs84 crore and contributed to 3% of its consolidated revenues. I-pill will add around 28% to its OTC business. Still, it seems puzzling that Piramal’s share price would rise by 3.4% for an acquisition that will add barely 1% to consolidated sales. Key driving factors could be the high growth potential visible in this nascent category and faith in Piramal’s ability to convert this into a significant contributor to revenues. In the immediate future, sustained growth in Piramal’s healthcare solutions business and a better performance from its pharma solutions business (sales declined by 12% in the nine months ended December) will be key valuation drivers. The beneficial impact of the i-pill acquisition will be visible in its financials only in the longer run. Write to us at marktomarket@livemint.com Source: Home - Livemint.com | 23 Mar 2010 | 10:25 am Will Tata Motors’ bondholders take the conversion bait?India’s largest commercial vehicles maker Tata Motors Ltd had an outstanding debt of around Rs23,100 crore at the end of 2009. According to a banker, about one-third of this is due for repayment by the end of 2011-12. This is inclusive of two foreign currency convert- ible bond issuances due in March and April 2011, whose cumulative redemption value is $494.5 million (Rs2,255 crore). Tata Motors is trying to induce bondholders to convert into equity, so that its debt repayment schedule eases.  The conversion price of one of these bond issues (with an outstanding value of $129 million and due for redemption in March 2011) is Rs1,001.39. With Tata Motors’ shares trading at around Rs740 apiece, the chances of conversion in the next one year are limited. The conversion price on the other bond issuance, due in April next year, is Rs780.40. While this is close to the current market price, it must be noted that these bondholders are due to get a redemption premium of 21.78% on the bonds next year. They will convert only if the shares are trading at Rs780.40 plus 21.78% (or over Rs950 per share). So again, it’s far from certain that the bonds will convert next year. The company is now inducing bondholders to convert by lowering the conversion price. So instead of redeeming $129.2 million in cash a year from now, investors of the first tranche of bonds will be offered the option to convert the bonds into shares worth between $136 million and $145.7 million now. This represents a premium of 6-8% to the redemption value.  Graphic: Paras Jain / Mint Investors of the second tranche of bonds are due to receive $365.3 million in cash next year. They are being offered the option to convert their bonds into shares worth $391.1 million and $398.5 million, representing a premium of 7-9%. The exact conversion ratio will be determined by the company by the end of the month. Will bondholders take the bait? Converting into shares involves some amount of market risk. According to a banker, there can be a lag of three-six weeks between the time bondholders tell the firm they want to convert and the time the shares can be sold. If the share price falls in the interim, bondholders could be at a loss. Further, there’s a price impact due to the large new issuance of equity that will hit the markets. Bondholders, if they convert, won’t hold the stock forever. They will immediately sell to realize cash and the impact of stock worth $528-538 million hitting the markets can lead to a correction in share prices. Based on the trading volumes in Tata Motors’ shares in the last six months, that would amount to eight days’ trading volumes. In fact, just the news of the sweetened conversion ratio and the expected increase in float led to a 3% drop in Tata Motors’ share price on Tuesday, even while the broad market was flat. Given the above-mentioned risks, not all bondholders may opt to convert. Write to us at marktomarket@livemint.com Source: Home - Livemint.com | 23 Mar 2010 | 10:25 am Time Warner will put in $1.5 bn bid for MGM: ReportLondon: Entertainment conglomerate Time Warner will put in a bid of $1.5 billion for the debt-laden hollywood studio Metro-Goldwyn-Mayer, says a media report. “Time Warner will bid $1.5 billion in what is expected to be an all-cash offer for the assets of Metro-Goldwyn-Mayer (MGM),” the Financial Times reported. The owner of CNN and Time Inc magazine group controls Hollywood’s largest film library and is seen placed well to generate strong returns from MGM’s assets through its distribution network and relationships with pay TV companies. The report said that MGM, saddled with $3.7 billion in debt, initially attracted attention across Hollywood and beyond, with companies including News Corp, Liberty Media and AT&T seen as interested. But by last Friday’s deadline, only three remained, it added. According to the publication, MGM said “the number of bids” had been received and that it would review them over the next few weeks. MGM has not ruled out operating as an independent company. The bids were less than MGM’s expectations, which had initially hoped for offers of at least $2 billion, the FT said. The studio has struggled to keep afloat of looming debt obligations as it suffered an industry-wide slump in DVD sales. In spite of that, the studio’s Bond catalogue — rights to make future Bond films and its development of a film version of The Hobbit — attracted interest from potential buyers. Time Warner’s strong balance sheet, with close to $5 billion in cash and equivalents at the end of 2009, has also made it the front runner in the auction, the report said citing people familiar with the discussions. MGM also said it expects to work with lenders to extend the forbearance period on its bank debt, which is ending on 31 March, and that it expects to seek a forbearance agreement for its revolving line of credit, for which a payment is due 8 April, the daily said. Source: World Business - Livemint.com | 23 Mar 2010 | 4:43 am Global telecom industry capex to touch $224 bn by 2015New Delhi: Riding on high demand for mobile services in developing countries, the capital expenditures of the telcos globally is expected to rise to $224.5 billion by 2015, a report said. According to the market analysis report by US-based The Insight Research Corporation, mobile operators in developing countries would continue increasing their capital outlays to meet the pent up demand for service. “Capital expenditures (capex) by telecommunications service providers globally is expected to increase at a compound rate of 2.4%, from $199.6 billion in 2010 to $224.5 billion in 2015,” the report stated. According to the study, capital expenditure in various global regions would be very uneven with major sectors witnessing slump or decline. Demand for mobile services in developing nations would offset lag in spending in developed countries, it added. In developing countries, capital expenditure growth slowed in 2009, but did not turn negative due to the buoyancy provided by the growth in mobile subscriber. “This growth is expected to continue during the forecast period. India’s capex outlook is prima facia evidence of this trend,” the report said. However, fall in spending in China is a result of slowdown in mobile subscriber growth rates, rock-bottom equipment prices and operator margin pressure, it added. Meanwhile, capex spending among fixed-line operators is expected to continue to decline in the next few years. Source: World Business - Livemint.com | 23 Mar 2010 | 4:22 am Mitsubishi to triple electric car outputTokyo: Mitsubishi Motors Corp. said Tuesday it aims to more than triple annual production of its electric car the i-MiEV over the next three years, anticipating robust global demand for the zero-emission vehicle. Mitsubishi will make some 9,000 i-MiEVs in the upcoming fiscal year starting 1 April, some 18,000 in the following year and 30,000 in the fiscal year starting April 2012, said company spokesman Yuki Murata. Japan’s No. 4 automaker began selling the i-MiEV in Japan last year. It sold 1,400 of the electric vehicles in Japan between July 2009 and March 2010, and 250 during the same period abroad, mainly in Britain and Hong Kong. Mitsubishi will sell the i-MiEV in the US in the fiscal year starting April 2011, said Murata. The i-MiEV can be recharged from a regular home socket, and can run up to 100 miles (160 kilometers) after charging seven hours at 200 volts. But it costs 4.59 million yen ($51,000), more than twice as much as Toyota Motor Corp.’s new Prius hybrid, which is just over 2 million yen. Mitsubishi has acknowledged the price for the i-MiEV may be too expensive for most people. Murata said the company aims to bring down the price to the two million yen level. Mitsubishi’s bigger rival, Nissan Motor Co., has unveiled its electric car, the Leaf, which will go into mass production globally in 2012. Nissan has yet to announce a price tag for the Leaf, which has a range of 100 miles (160 kilometers) on a single battery charge. Source: World Business - Livemint.com | 23 Mar 2010 | 4:15 am Google wins key EU ruling on luxury adsBrussels: Google Inc. won a key European Union court ruling Tuesday that says it did not violate luxury goods trademarks by allowing counterfeiters to buy brand names as advertising key words that link to their online stores. The world’s most used search engine won some legal protection against future claims after the EU’s highest legal authority said it could not be held liable for advertisers’ requests to place ads if it removes them when it is told the ad misuses a trademark. But the company is not completely in the clear. The European Court of Justice said the French companies who took the case headed by LVMH Moet Hennessy Louis Vuitton could still claim for compensation in a French court if it rules that trademark misuse damages their brands. LVMH, the company behind Marc Jacobs bags, Dior perfumes and TAG Heuer watches said the ruling showed that Google could not fully escape its responsibility. “This decision is a very important step in clarifying the rules covering online advertising where LVMH is one of the major customers,” said the company’s vice president Pierre Code. “We want to work with all the players, including Google, to eradicate illegal practices online.” Google makes most of its revenue by selling advertising triggered by keywords. When someone searches for “vintage cars” or visits a partner site that mentions those words, advertising for a vintage car dealer may appear to the side. In some cases, a keyword that is a company’s brand name can trigger an ad for a competitor or even counterfeiters. The French companies complain that Google broke the law by accepting ads using a brand name without permission. They fear that would allow counterfeiters to buy a keyword such as “Louis Vuitton” and use it to sell fake bags. Google has been repeatedly sued for trademark violations in courts around the world, and it generally prevails or settles cases without changing its practices. In the United States and most other countries, Google typically accepts trademarks used as those keyword triggers, but it places limits on what can appear in ads themselves. But in many European countries, including France, Italy and the Netherlands, Google does restrict the use of trademarks as keywords. It will typically strike ads, however, only after receiving a complaint from the trademark owner and conducting a review. Source: Tech News - Livemint.com | 23 Mar 2010 | 3:18 am Cairn ups reserves, output goal, shares riseLondon: UK oil explorer Cairn Energy lifted its estimates for reserves at its Indian operation and said the unit’s Rajasthan fields could produce more oil than previously thought. Cairn shares had jumped 8.1% to 409-1/2 pence by 0901 GMT, compared with a 0.6% rise in the STOXX Europe 600 Oil and Gas index. Cairn raised its estimates of oil and gas in place in Rajasthan to 4 billion barrels of oil equivalent (boe) from 3.7 billion boe and said there could be another 2.5 billion boe yet to be discovered. The Edinburgh-based company said the fields had the potential to pump 240,000 boe per day. Previously the company said it hoped to exceed its target of 175,000 boe per day but did not specify by how much. Cairn also reported full-year results on Tuesday. A 59% jump in output after the Rajasthan fields came online in August helped boost underlying net profit for 2009 to $53 million, up from $11 million in 2008. Cairn added it was making progress with the pipeline to bring its crude to market. Currently oil is being transported by road tanker. The main pipeline, which heats the waxy crude to maintain its fluidity, is finished, exploration director Mike Watts told reporters on a conference call, and work on spurs to refinery customers are nearing completion. Crude is scheduled to be pumped through the pipeline during the second quarter, Cairn said. Another buyer, Essar Oil, has also been added to the to list of buyers for Cairn’s oil. Cairn added that the prospects it plans to drill this year in Greenland could contain 4 billion barrels of oil. “These numbers should be taken with a pinch of salt, given there is little data to back them up. However, it does show the potential of the region,” Peter Hitchens, oil analyst at Panmure Gordon, said in a research note. Source: World Business - Livemint.com | 23 Mar 2010 | 3:03 am
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