Indian Economy - News & Updates - Archive

[Contrarian]

Airtel ties up with Google

NEW DELHI: Bharti Airtel on Thursday entered into a strategic partnership with Internet search major Google to offer search services to its mobile customers.

Google will incorporate mobile advertisement products on the Airtel Live mobile WAP portal.

This will enable advertisers to reach their target users with their products and services.

The company, however, refused to give the number of Airtel mobile users who actually surf Internet for search services.

"Under the agreement, Airtel will provide `Google search' through its portal to its mobile subscribers,'' Bharti Airtel President Manoj Kohli said, but declined to divulge details of the revenue sharing agreement between the two companies.

"In India, the mobile growth has surpassed the growth of PCs. With this unique partnership, Internet will be converged into a handheld device enabling anytime, anywhere access to information and entertainment for Airtel customers,'' Mr. Kohli said.

Google Vice President, Asia Pacific and Latin America Operations, Sukhinder Singh Cassidy, said: "India is one of the fastest growing mobile markets in the world. This agreement with Bharti Airtel will help in bringing Google services to the mobile users in the country.''

PTI

http://www.hindu.com/2006/12/01/stories/2006120100801900.htm

 

[Contrarian]

Nilekani Forbes Asia Businessman of 2006

BEIJING: Infosys CEO Nandan Nilekani has been named `Businessman of the Year' for 2006 by Forbes Asia for his `nimble' stewardship in keeping the company ahead of peers in the global outsourcing phenomenon.

The 51-year old co-founder of the Bangalore-based company was picked for his track record in keeping Infosys nimble and ahead of its peers in the global outsourcing phenomenon, Forbes Asia said in a statement.

He has been Chief Executive since 2002 but took sole charge in August when Infosys founder Narayana Murthy retired. Under his tenure, Infosys has achieved sustained profitability — after-tax profit grew by 30 per cent in each of the last three years.

The most recent quarter ended September 2006, was the best on record. Revenue reached $746 million, up 13 per cent from the previous quarter and 42 per cent higher than the same period a year ago. Net income was $199 million for the quarter, a 14 per cent increase over the previous three months and a 44 per cent gain over the same period a year ago, the statement said.

At that pace, Infosys will make more money this year than Central Japan Railway, Fujifilms Holdings and Sharp, all considerably bigger. His record to-date makes Mr. Nilekani Forbes Asia's choice for Businessman of the Year, the statement said.

PTI
http://www.hindu.com/2006/12/01/stories/2006120100791900.htm

 

[Contrarian]

Millennium Infotech to invest $ 100m

HYDERABAD: Millennium Infotech, the Indian-arm of US-based Millenium Infotech Inc., has decided to invest $ 100 million to ramp up its Indian operations in the coming two years. The company that recently launched its operations offering data centre management and replication solutions has decided to make its Indian subsidiary a global delivery hub for its customers. It has plans to build one of the largest and secured data centre infrastructure with latest data housing technology for ensuring business continuity with zero downtime and scale up its head count to 2,000.

http://www.hindu.com/2006/12/01/stories/2006120100771901.htm

 

[Contrarian]

IL&FS to assist creation of textile parks

CHENNAI: The Indian textile industry, in partnership with the Union Government and Infrastructure Leasing and Financial Services (IL&FS), is creating another success story in creation of world-class infrastructure through dedicated textile parks. IL&FS, besides being involved in identification of potential projects, their structuring, designing and execution, has also developed innovative financing instruments to fund the common infrastructure in the parks. IL&FS has tied up the debt portion of the project cost for all the parks, a release says.

 

[Neo]

I agree. If the Q3 and Q4 show as good results, our growth would be 9% avg.
This could be because of the govt's effort to pump money and develop the country's infrastructure on a war footing

You really should read up on the airports that are comming up all over India!!, the delhi one is gonan become one of the bets woldwide, all international companies have bid, there have been proper calculations, same for mumbai, channai and kolkota! Not to mention all the tier 2 cities are also getting new airports, completely new!!all at par with the best in the world today, all with capaciy to handle the next 20 years load easily!
refer here: http://www.pakistaniforces.com/forums/showthread.php?t=2783

And also the roads, any1 who has visited Delhi recently should see, more than 50 flyovers were there already 2 years back, as many more planned!, delhi metro and stuff. Its going good!

Good post Malay!

Imho Bangaluru has the best airport in the country at this moment and soon it will become an international hub connecting Australia with Europe and North America.
Did you know that Bill Gates Microsoft specially asked US DoT to gain landingrights for North West Airlines between Seattle and Bangaluru via Amsterdam?
Unfortunately the service after three flights already due logistical and security concerns.
Northwest's alliance partner KLM came with thrice a week service between Amsterdam and Hyderabad instead linking it to 20 major cities in the US.

Though there is one serious dissapointing peice of news, the agricutural growth has slowed down.I am very concerned on this issue. The neglect of the agricultural sector during the NDA govt played no small part in their getting kicked from power last time.

And when UPA came to power, their motto everyday in the newspapers was that they are gonna transform the agriculture sector, put land reforms in place, etc. I am yet to see that happen satisfactorily. Though it always happens that Q2's agroicultural output is always less. I rather expect that this is the key to unlocking >10% growth of the economy EASILY if this sector performs half as well as the rest.

And unless this sector is tackled effectively, there are going to be serious problems indeed.

Yes, this is a very disappointing development, one that should ring bells in New Delhi.
Despite heavy growth in manufacturing sectgor, India basically relies on agro-economy. Over 65% of the total population is concentrated in rural area's, including over 60% of the laborforce. This is one part of the huge population which will not gain the status of middle class income in a long time to come unless revolutionary steps are taken.

Misery among the poor of the rural area's is heartbreaking, there's killing among poor indebted farmers, people sell their children to save them from starvation!!

Earlier this year Delhi announed a reflief package for the poorest, a disappointing amount of $800 million, i.e. 0.01% of the GDP.
The help is to reach farmers as soft loans and thru bank accounts only to avoid mismanagement and corruption.
Unfortunately 90% of the farmers don't even have a bank account and rely on traditional private loans from landlords, money brokers and family which often results in losing their land as unpaid depth.

Tell me why Delhi is reluctant to do more for the green sector?

 

[Neo]

Friday, December 01, 2006

Indian sugar industry fears crisis

MUMBAI: With a bumper crop on the horizon, India faces a precipitous fall in sugar prices if the government does not move to lift an export ban on the sweetener.

The sugar industry over the past two months has been clamouring for the government to end the ban imposed in July after domestic prices rose.

India is expected to produce a record 22.7 million tonnes of sugar in the current sugar season, up from about 19 million tonnes in the last season, industry officials forecast.

The country annually consumes about 18 million tonnes of sugar. Sugar mills wanted to export as global prices spiked in September but the government officials spoiled the party, refusing to budge because of high prices at home.

Industry officials and analysts say now supplies at home are mounting. G.S. Rao, director at Simbhaoli Sugars, said even if the ban was lifted now, most of the sugar would likely stay home because of the drop on world markets.

He said international prices had come down to $340 per tonne from $475 per tonne in July, giving little benefit to exporters.

Meanwhile, domestic prices have fallen to about 1,650 rupees ($37.04) per 100 kg from 1,700 to 1,800 rupees a month ago and the chances of a further dip were likely.

“I won’t be surprised if prices come down by another 50 to 70 rupees, said C.S, Nopany, president of the Indian Sugar Mills Association. “The bottom is something which nobody knows now.”

The low prices have been hitting the sugar mills, particularly cooperatives, said Si Kannan, analyst with Sharekhan Commodities.

“We expect sugar prices to remain flat. Internationally, sugar also has come down from its peak and Indian exporters may not get a higher realisation,” Kannan said.

“We are not positive on that count.” India’s cabinet is scheduled to meet on Thursday, where the issue of the sugar export ban is likely to be discussed, industry officials said.

India banned sugar exports in July to help check inflation as prices soared. The government said the ban would last until the end of the financial year in March.

“An announcement the ban is being lifted may arrest the fall. If this does not happen, then it could go down to 1,450 rupees in a week’s time,” said Prakash Naiknavare, managing director of Maharashtra State Co-Operative Sugar Factories Federation.

He said the price could create a crisis in sugar-producing regions.

“There might be a lot of problems regarding payment to farmers this year. They should have removed the ban at least two months ago,” said Nopany.

He said sugar demand internationally was not as strong as it was three months ago. “We have lost a very valuable opportunity and I hope that we don’t squander away everything.” Naiknavare said the only silver lining was a remote possibility of international prices rising again. reuters

http://www.dailytimes.com.pk/default.asp?page=2006\12\01\story_1-12-2006_pg5_20

 

[Neo]

Friday, December 01, 2006

India may allow private sector into N-power generation

By Iftikhar Gilani

NEW DELHI: The Indian government is considering amendments to the Atomic Energy Act to allow the private sector to get involved in nuclear power generation, the Lok Sabha was told on Wednesday.

In a written reply to Jyotiraditya Scindia from Congress, State Minister for Prime Minister’s Office Prithviraj Chavan said that adequate security measures were in place to protect all nuclear power plants, adding that same measures would apply to new power plants.

In reply to a question by Dr M Jagannath, Chavan said the Uranium Corporation of India (UCIL) had proposed uranium mines and a processing plant in Nalgonda district in Andhra Pradesh. He said that the Lambapur-Peddagattu stretch had been identified for the mines, while the processing plant would be set up at Seripally. Production of 1,250 tonnes of ore a day is expected from these mines, but this production will start only after all statutory clearances are obtained. The plant and tailing ponds require 400 acres, of which only 40 acres are under cultivation, the minister said.

Chavan denied any plans to shift the Apsara reactor from Trombay. He said the nuclear deal with the United States envisaged only shifting of the core of the Apsara reactor, adding that a new core would replace the existing one. He said that all research reactors at Trombay and fast breeder reactors at Kalpakkam were operational and working normally.

The Rajasthan Atomic Power Station (RAPS) Unit 1 has been shut since October 2004 for detailed assessment of its health and a techno-economic evaluation for its refurbishment, Chavan said in reply to a question from Dushyant Singh. He said that Rajasthan had been compensated by allocation from the Narora atomic power station in Uttar Pradesh. He said the state had also been given its share from RAPS units 2 to 4. He said the state would get further supplies from RAPS 5 and 6, which are expected to complete by 2007-08.

http://www.dailytimes.com.pk/default.asp?page=2006\12\01\story_1-12-2006_pg7_37

 

[Contrarian]

HCL Technologies designs car that can read sign boards

BANGALORE: How about driving an intelligent car that reads sign boards, milestones or billboards for you, while you concentrate on driving?

It isn't all. It's dashboard will display what's there on either sides of the road, instead of you slowing down or stopping to capture what's out there.

It's not a concept car or a dream machine. A team in HCL Technologies has developed an innovative road tracking system which comprises two little cameras on either side of the car and a box, that contains a video encoder/decoder, an audio processor and a digital display panel, that can be mounted on the dashboard. The entire device runs on a chip designed by Texas Instruments.

GH Rao vice-president (automotive engineering services & solutions) HCL told The Times of India that the company has already made the technology available to several automotive OEMs and leading car makers like Audi, BMW, Ford, Mercedes and Toyota soon will have cars fitted with road tracking system, which is different from the existing GPS navigation tools.

The road tracking system was recently tried in Chandhigarh, on a pilot basis, by a couple of Indian automotive companies. "Indian roads need a bit more traffic discipline for such systems to work better. But it's a matter of time and better roads anyway happening," said Rao. "But again, India has a mindset problem and we attach such technologies to luxury and not to safety," he added. The road tracking system will also warn the driver of humps and potholes within a 40-metre range.

HCL Technologies has also developed a blind-spot detection system that will display a panoramic, stitched-together view of the objects found in blind-spots on the dashboard. It would also give the driver a heptic warning through steering or seat vibration.

 

[Contrarian]

Cancellation is labour lost for tickets booked

MUMBAI: If you ever decide to book an air ticket online using a credit card, ensure that your travel plan remains unchanged. A 60-year-old Delhi travel agent learnt this the hard way.

He was denied refund of an air ticket, which he tried to cancel just three minutes after booking it. To be fair, the airline had clearly mentioned a non-refund clause on its website.

"My client suddenly faced financial problems. I called up and mailed the airline offices immediately, and also went to meet the management personally," the travel agent said. He has been trying to get a refund for four months now.

On the stringent policy, a spokesperson of the airline said: "Once you book, you can't get out of it. If his client is not paying, that is not our problem."

Elsewhere, in Mumbai, a 37-year-old mediaperson said he booked and then cancelled a ticket online, a month ago. While it too had a non-refund clause, he was entitled to refund of taxes and fuel surcharge. He is still waiting. "Online refund would take two to three weeks," said a spokesperson of the airline.

Technically, at least 24 to 48 hours are required to process an online refund transaction, where it gets credited to the card account. Nutan Lugani of the National Consumer Helpline, a project of the ministry of consumer affairs, said in reality, it takes longer.

A 35-year-old Delhi executive, who cancelled her Delhi-Patna air ticket two weeks ago, is yet to get her refund.

In December 2005, recalls consumer activist Jehangir Gai, a 56-year-old Mumbai businessman challenged a non-refund clause of an international airline by filing a petition in the high court. It immediately paid up the amount and the consumer withdrew the case. "The airline should at least refund the Airport Authority of India's tax component as the airport services are not availed of," Gai said.

But before moving court, said T K Datta, a member of the National Consumer Helpline, a consumer must first approach the civil aviation department.

Not all tickets though come with a non-refund clause. While most airlines return online bookings on the internet itself, some like Jet Airways do not. Passengers cannot cancel, refund or change travel dates on the internet; they must approach Jet Airways' ticket offices.

Some like low-cost carrier SpiceJet do not refund the money at all—the airline makes a credit shell of the booking amount, minus Rs 600, which the passenger can use for any SpiceJet flight in the next one year.



LOL, i bet next time he READS the rules carefully

 

[Contrarian]

RBI proposes NBFCs to maintain a CAR of 10%

MUMBAI: The Reserve Bank of India on Friday proposed fresh guidelines to regulate non-banking financial companies (NBFC), including the minimum capital adequacy ratio they should maintain and commercial banks' exposure in them.

The second set of draft guidelines has proposed that all systemically important (with asset size of Rs 100 crore and more) non-deposit taking NBFCs should maintain a minimum capital adequacy ratio (CAR) of 10%.

New guidelines have broadbased the exposure of banks to all NBFCs by linking it to the bank's capital funds as against net worth in first draft.

Subsequently, the exposure of a bank in a single NBFC has been increased to 10% of capital funds, and to all NBFCs up to 40% of their capital funds. These limits may be exceeded by 5% (single NBFC) and 10% (all NBFCs) of capital funds, respectively if the additional exposure is on account of funds on-lent by NBFCs for infrastructure, RBI executive director Anand Sinha said.

In view of the importance of the issue, the revised draft has been again put in the public domain for feedback till December 7, he said. The RBI has identified a total of 148 systemically important NBFCs with a total asset base of Rs 1,72,000 crore.

The NBFCs promoted by parent/group of a foreign bank having presence in India, or which is a subsidiary of the foreign bank's parent/group or where the parent/group is having management control, would be treated as part of that foreign bank's operations in India. They have been brought under the ambit of consolidated prudential regulations.

NBFCs which are subsidiaries of banks or where banks have a management control, will also be allowed to offer discretionary portfolio management schemes (PMS) to their clients on a case-to-case basis. Due to certain reasons, such NBFCs were hitherto not allowed to offer PMS services.

Also, banks in India, including foreign ones, shall not hold more than 10% of the paid up equity capital of a deposit taking NBFC.

The second draft also states that NBFCs set up under the automatic route will be permitted to undertake only those 19 activities which are permitted under this route.

 

[Contrarian]

DoT tightens subscriber checking norms

NEW DELHI: DoT has taken a tough stance on subscriber verification systems adopted by mobile companies. Telecom operators will now have to pay a penalty and de-activate any pre-paid mobile connection if the subscriber information is found to be incomplete or inaccurate.

As per the norms issued on November 22, if after March 31, 2007, any subscriber number is found to be without proper verification, a minimum penalty of Rs 1,000 per violation would be levied on the licensee, a DoT notification said.

It has also been decided that pre-activated SIM cards will not be sold in the market.

The new norms follow on the heels of a September 27 DOT meeting where it was decided that the guidelines for 100% verification of subscribers will be scrupulously adhered to for the purpose of supplementing existing information. The move follows security concerns arising over reports of fake addresses and bulk connections in a single person's name.

The new norms are being enforced as the licence condition of cellular and unified mobile operators only says that the licensee must ensure "adequate verification" of each and every customer before enrolling him/her as a subscriber.

From now on, any person authorised to sell SIM cards will have to record in the application form that he has seen the subscriber and verified his documents with the original. The operator is also obliged to apprise the seller about his responsibilities and liabilities in the matter.

Pre-paid SIM cards, which comprise 80% of mobile connections, will be activated only after the customer acquisition form has been properly filled and copies of documentary proof submitted by the customer. The authorised seller, who is directly accountable to operators, would have to verify that the documentary procedures are completed before activating the SIM card.

Sources said if any discrepancy was found at any stage, the connection would have to be de-activated immediately, but in any case not later than 72 hours.

The licensee would have to ensure that information about the subscriber is entered into the licensee's database correctly based on the information in Customer Acquisition Forms (CAF) and supporting documents.

For this purpose, the licensee would have to nominate officials responsible for entry of subscriber information in the database and cross-checking information from it.

 

[Contrarian]

Good post Malay!

Imho Bangaluru has the best airport in the country at this moment and soon it will become an international hub connecting Australia with Europe and North America.
Did you know that Bill Gates Microsoft specially asked US DoT to gain landingrights for North West Airlines between Seattle and Bangaluru via Amsterdam?
Unfortunately the service after three flights already due logistical and security concerns.
Northwest's alliance partner KLM came with thrice a week service between Amsterdam and Hyderabad instead linking it to 20 major cities in the US.

Yeah, and the old Bangalore airport actually belongs to HAL for its researches, and HAL had been complaining for a LOONG time that it could not fly its own planes for research in its own airport because of the civilian traffic!! LOL

Now Bangalore gets an entirely new airports. And its a greenfield project!! one of the biggest airports in the world.

Yes, this is a very disappointing development, one that should ring bells in New Delhi.
Despite heavy growth in manufacturing sectgor, India basically relies on agro-economy. Over 65% of the total population is concentrated in rural area's, including over 60% of the laborforce. This is one part of the huge population which will not gain the status of middle class income in a long time to come unless revolutionary steps are taken.

Misery among the poor of the rural area's is heartbreaking, there's killing among poor indebted farmers, people sell their children to save them from starvation!!

Earlier this year Delhi announed a reflief package for the poorest, a disappointing amount of $800 million, i.e. 0.01% of the GDP.
The help is to reach farmers as soft loans and thru bank accounts only to avoid mismanagement and corruption.
Unfortunately 90% of the farmers don't even have a bank account and rely on traditional private loans from landlords, money brokers and family which often results in losing their land as unpaid depth.

Tell me why Delhi is reluctant to do more for the green sector?

Yes, they are reforming the banking sector to cater to the lending problem, but the main prolem lies in the fact that enough stress is not laid on this, the reform is not fast enough. This happens with all the governments, they come to power and soon tehy forget the basic problem, they get involved in the glitzy infrastuctures, IT services, this and that, the agro problem is relegated to the back burner. I rather hope that with half the term left for MMS, he would really focus on these things so to brag in the next elections. Again, i am dissapointed.

There is not enogh investment in the rural areas, and that is compounding hte problems severely. It is causing migration from rural to urban areas, putting more stress on the cities services and also causing a labour deficit in the village farms and fields.

The problem is not being reluctant, i think its pretyt conveniently forgotten or neglected. There is nothing that can be done but wait and watch for this sector. Things are being done, i dont deny that, but at a very slow pace.

 

[Contrarian]

Indian marketing gurus in US focus on new media

With cell phone companies embracing the idea of a "Television in the Pocket" and media firms like CBS investing in a branded channel on YouTube.com, marketing gurus from South Asia put the phenomenon under scanner in New York on December 4.

Leading lights of the new media are gathering in New York for a panel on "New Media Revolution: How Media and Mobile is Changing the Game of Advertising" under the auspices of SAMMA (South Asians in Media and Marketing), a national trade association for South Asian and Indian Executives in US marketing and media companies.

Panelists include Manish Jha (SVP, ESPN Mobile), Nick Pahade (President, Denou Group), Deepak Srinivasan (Vice President of Product Management, 24/7 Real Media) and Nihal Mehta (CEO, Ipsh! Mobile Marketing).

"South Asians are now extending their dominance in software technology to the consumer marketing arena," says SAMMA co-founder Bhavesh Patel, Director, Digital Media, NBA (National Basketball Association).

"SAMMA is proud to be bringing attention to this growing trend of South Asians in marketing and helping network this rapidly growing community of leading media and marketing executives."

Among other leading South Asian executives in US marketing and media companies are:
* Bina Brianca, Executive Director, Global Consumer Marketing, Clinique
* Nusrat Durrani, SVP and General Manager for MTV World
* Indra Nooyi, President and CEO, Pepsico
* Ivan Menezes, President, Global North America, Diageo (marketers of Smirnoff & Guinness)
* Vivek Shah, President, Digital Publishing, Fortune/Money Group
* Rishad Tobacowalla, Chief Innovations Officer, Publicis and Founder,
Denuo

SAMMA aims to promote and connect the growing numbers of South Asian professionals working in the media and marketing industries - across industries that include CPG, advertising, new media, entertainment, fashion/retail.

Founded in 2006, SAMMA with a membership of 550 provides a platform for linking South Asians in media and marketing to one another and providing networking, professional development, and business development opportunities to them.

 

[Contrarian]

Deora receives first shipment of Sakhalin oil

The first shipment of crude oil from the Sakhalin oil field in Russia was received on Saturday by Minister of Petroleum and Natural Gas Murli Deora at the New Mangalore Port Trust complex in Mangalore.

The consignment of 92,055 metric tonnes (672,000 barrels) of Sokol crude was ferried on board the Russian ship MK Viktortitov - the oil tanker of Primorsk Shipping Company on a charter of OVL (ONGC Videsh Ltd). The tanker set sail from Dekastri port in Russia on November 14.

OVL has 20 per cent stake in Sakhalin-1, acquired from two subsidiaries of Russian government oil firm Rosnett - SMNG-S and Rosneft-S.

 

[Contrarian]

Reliance restarts fire-hit unit at Jamnagar refinery

Reliance Industries Ltd (RIL) on Friday said the hydrotreater plant at its refinery in Jamnagar, partially damaged in the October 25 fire, has been refurbished and it has started functioning.

"The VGO Hydrotreater No 2 plant started functioning normally from Friday morning," RIL said in a statement in Mumbai.

While the fire at the plant was brought under control within an hour, the damaged portion was refurbished in 35 days, it said.

The company said that the refinery has been working without any loss of production after the incident.