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| Idea to invest Rs 6,000 crore; to go
public in Feb NEW DELHI, Dec 17: Aditya Birla Group company Idea Cellular, which is hitting the market with an initial public offer in February, is likely to invest up to Rs 6,000 crore over the next two-three years .. .........more Antrix revenues at Rs 400 cr, Isro expects to maintain growth MUMBAI, Dec 17: Antrix Corporation, the comemrcial wing of Indian Space research .......more Fiscal weakness makes India vulnerable to growth decline: S&P MUMBAI, Dec 17: Global rating agency Standard and Poor's (S&P) has said that the fiscal weakness of India is one of the worst among the rated sovereigns making ......more NGO files application in HC against DLF's proposed IPO NEW DELHI, Dec 17: Real estate major DLF's plans to float a public issue has been challenged by an NGO in the Delhi High Court, which said the company ......more |
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CAG pulls
up DoT for failing to collect Rs 1,150 cr from MTNL NEW DELHI, Dec 17: The country's top auditor CAG has pulled up Department of Telecom for failing to collect more than Rs 1,150 crore as license fee and ........more General insurance sector grows 30 pc; Pvt players zeroing in MUMBAI, Dec 17: The private sector is looking at achieving supremacy in the country's general ......more Govt asks industry to give SC, ST employment in annual report NEW DELHI, Dec 17: The Government has asked the industry to consider including the data of their employees belonging to the Scheduled Castes ......more Aspiring to acquire Hutch-Essar, Anil Ambani seeks blessings TIRUPATI, AP, Dec 17: Aspiring to acquire India's third largest private mobile player Hutch-Essar, ADAG Chiarman Anil .........more |
Idea to invest Rs 6,000 crore; to go public in Feb NEW DELHI, Dec 17: Aditya Birla Group company Idea Cellular, which is hitting the market with an initial public offer in February, is likely to invest up to Rs 6,000 crore over the next two-three years to become a pan-India mobile service provider. Idea, currently operating in 11 circles, including Delhi, has obtained Letters of Intent for Mumbai and Bihar circles which would give the company access to approximately 70 per cent of the cellular market. The company has also applied for new licenses for another nine circles. When asked about the investment plans to become an all-India player, Idea Cellular Managing Director Sanjeev Aga said, "We have only got two LoIs Mumbai and Bihar. And I do not want to make any futuristic statement." Aga said the company will hit the capital market in February next year to raise Rs 2,500 crore. The proceeds from the IPO would be used for expansion of services in the existing circles, roll out of new network in Mumbai, start National Long Distance (NLD) operations and redemption of preferential shares. Idea Cellular has seen bitter battles in the past and from a situation of multi owners it is now owned by a sole promoter Aditya Birla Group which has interests in diverse sectors like aluminium, cement and textiles among others. Asked what makes the group confident of growing in a sector which already has intense competition with four to five operators, Aga said, "Telecom and Idea cellular is very central and core business of the AB Group and the Group has demonstrated ability to grow in diverse businesses." (PTI) |
Antrix revenues at Rs 400 cr, Isro expects to maintain growth MUMBAI, Dec 17: Antrix Corporation, the comemrcial wing of Indian Space research Organisation (ISRO) would earn Rs 400 crore this year through launching satellites for other countries and selling space products. The space agency's commercial arm has roughly about 25 per cent growth over the last year. "For this year, Antrix's total turnover is roughly about Rs 400 crore. Out of which Rs 200 crore comes from launch vehicle area and remaining from space products, including the transponders we are leasing and the images we are sending," ISRO Chairman G Madhavan Nair told PTI here. The space agency expects that it would maintain "more or less similar growth in the coming year as well." ISRO is also planning further commercialisation of its launch vehicle technology, but that depends on the bilateral relation between Indian and other countries. "Our cost is about 70 per cent of that of international cost. We will have a big advantage. But many times, the launch vehicle business is also depend on the current bilateral relationships," Nair said. According to industry estimates, the launch vehicle technology market is valued at about USD two billion globally. Established in 1992 for commercial exploration of product and services from the Indian space programme, 75 per cent of Antrix's revenue comes from abroad. (PTI) |
Fiscal weakness makes India vulnerable to growth decline: S&P MUMBAI, Dec 17: Global rating agency Standard and Poor's (S&P) has said that the fiscal weakness of India is one of the worst among the rated sovereigns making it vulnerable to a decline in growth rates or an increase in the interest rates. S&P also warned that the reform process remains at risk as the policy environment is rife with bureaucracy, fragmented administration and coalition politics. It expressed apprehensions that the additional outgo from the possible wage revison under the Sixth Pay Commission could also derail the fiscal progress. In its Asia Pacific Market Outlook 2007, S&P said that risk to reform process was further highlighted when the government pressed the brakes on privatization after opposition from coalition partners. The political compulsions from its communist allies and trade unions was also the key reason for the government to introduce the Sixth Pay Commission, S&P said adding that adoption of its recommendations would mean another wage hike in 2009. "Judging from the impact that the previous Fifth Pay Commission had on both the central and state finances, this could throw the steady fiscal progress into disarray," it said. (PTI) |
NGO files application in HC against DLF's proposed IPO NEW DELHI, Dec 17: Real estate major DLF's plans to float a public issue has been challenged by an NGO in the Delhi High Court, which said the company should not be allowed to proceed as a case involving its minority shareholders was pending before the court. The Society for Consumers' and Investors' Protection has filed an application in the High Court, seeking a stay on the proposed initial public offer of DLF Universal. "DLF has no right to deal with the securities in question without the permission of the court as it is pending for adjudication before it," the application said. Meanwhile, the court has given a final opportunity to the Centre and market regulator SEBI to file responses and posted the matter for hearing in February. The application said the company had "malafide intention" in extending the benefits of convertible debentures issued on right basis to minority shareholders through a resolution passed in its November 14 extraordinary general meeting. The resolution was meant to bypass laws and overshadow its fraudulent and unfair practices, it added. Earlier, the court had issued notices to the Government and SEBI on the NGO's petition seeking a probe on alleged violation of regulatory norms by DLF Universal. The PIL had sought a direction from the court to set aside the allotment of debentures and consequent equity shares arising out of conversion of such debentures. (PTI) |
CAG pulls up DoT for failing to collect Rs 1,150 cr from MTNL NEW DELHI, Dec 17: The country's top auditor CAG has pulled up Department of Telecom for failing to collect more than Rs 1,150 crore as license fee and interest from MTNL due to a dispute on applicability of revenue sharing regime. DoT had to collect Rs 520 crore as license fee from the state-owned company during August 1999 to March 2001. An interest of Rs 657 crore was also leviable, the Comptroller and Auditor General said in its latest report. CAG observed that MTNL switched to the revenue sharing regime in 2001 and criticised DoT for failing to communicate the new financial conditions of the new system to the company on time. This resulted in non-levy of interest of Rs 43.51 crore on it for delays in payment of licence fees, CAG said. Asking DoT to take action against outstanding dues from MTNL, CAG said the department should pay greater attention toward verifying the correctness of statements submitted by service providers and strengthen its monitoring mechanism. CAG also criticised the department for allocating additional spectrum to six private service providers, including Reliance, Idea, Hutch, BPL and Bharti, which collectively had outstanding dues of about Rs 74 crore. "Before allocating additional spectrum, DoT should have ensured that the operators had cleared their outstanding dues," it said. The excess allocation was not justified in terms of subscriber base of the operators, it said. DoT should maintain and update its records concerning frequency usages and spectrum use by all network users, renewal of their licenses to ensure proper collection and accounting of spectrum related issues, the CAG said. (PTI) |
General insurance sector grows 30 pc; Pvt players zeroing in MUMBAI, Dec 17: The private sector is looking at achieving supremacy in the country's general insurance space with an above-average growth rate of 66 per cent in November. The overall general insurance industry registered an annual growth rate of 30 per cent last month, while taking the total industry size to Rs 2,021 crore, the latest data available with market regulator IRDA shows. The private sector expanded its market share to 35 per cent last month, from 27 per cent a year ago. However, the public sector retained its leadership position despite a drop in its market share to 65 per cent at the end of November. While New India Insurance retained its position as the country's largest general insurance player, Reliance General, the general insurance arm of the Anil Dhirubhai Ambani Group, toppled Tata AIG as the fourth largest private player. ICICI Lombard maintained its numero uno position in the private sector, followed by Bajaj Allianz and Iffco Tokio at the second and third positions. The top three public sector players were New India Insurance, National Insurance and United India Insurance last month. (PTI) |
Govt asks industry to give SC, ST employment in annual report NEW DELHI, Dec 17: The Government has asked the industry to consider including the data of their employees belonging to the Scheduled Castes and Schedules Tribes in the company's annual report. "Data of SCs and STs recruited from January 2007 needs to be incorporated in the Annual Report of 2006-07," the industry has been told by the government. The exercise is a part of the initiative by the Coordination Committee on Affirmative Action in the Private Sector constituted by the Prime Minister's Office. The government also advised the industry to compile the base-line data of SC and ST employment to enable review of the progress achieved for creating jobs for these groups, sources said. All leading industry chambers like CII, FICCI and Assocham have veered around to the view that disclosure of information with regard to SC and ST employees in annual reports could be possible only for future recruitments. In their meeting with the PMO-appointed Committee last month, the business chambers had stated that most employers did not ask for information about the caste of an employee. Asking for this information from existing employees at this stage would "be a divisive exercise rather than a unifying one". However, in future employment the new workers could be asked to indicate their caste. (PTI) |
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Aspiring to acquire Hutch-Essar, Anil Ambani seeks blessings TIRUPATI, AP, Dec 17: Aspiring to acquire India's third largest private mobile player Hutch-Essar, ADAG Chiarman Anil Ambani today sought blessings from Lord Balaji. Ambani, accompanied by mother Kokilaben did not take any questions on the issue. Last time he had visited the shrine on June 19, 2005, a day after the family settlment over the ownership of the Reliance empire. Reliance Communication, an ADAG company, is understood to have tied up with four US equity funds, including Blackstone, to acquire the company, a joint venture between Hutchison Telecom International Ltd and corporate giant Essar, and is vying with Egyptian giant Orascom and Malaysia's Maxis. Backed by the Egyptian Government, Orascom, which has raised security concerns in India due to its presence in Pakistan, has already said it it would be interested in bidding for mobile service provider Hutch-Essar provided the company was welcome in the country. "I am already an indirect investor... So the answer is definitely yes... I just need to be welcome. I do not want to be somewhere where I am not welcome," Orascom Telecom CEO Naguib Sawires told reporters here when asked if he would be keen to acquire in Hutch-Essar. "What I have seen today is that I am welcome. I just hope to get assurance on that.. Once I get the message, I agree that there is an urgency for clarity," Sawires, accompaning visiting Egyptian Foreign Minister A A Geiti said. Orascom indirectly controls 10 per cent in Hutch-Essar after it acquired 19 per cent stake in Hong Kong-based Hutchison Telecom International Ltd. (PTI) |
Disinvestment is dead, long live disinvestment.. NEW DELHI, Dec 17: Disinvestment, as we have come to know it, was finally laid to rest this year with the last nail in the coffin coming from the UPA Government's key ally, Dravida Munnetra Kazhagam. Though it appeared at the start of 2006 that the UPA had managed to breathe fresh life into the disinvestment process through a compromise with the Left on leaving the top nine PSUs alone, subsequent political opposition brought the whole programme to a grinding halt. The year gone by also saw the government swallowing bitter pills to rid itself of the headache over stake sale in Balco, whose new owner Sterlite decided to exercise its call option on the 49 per cent of shares held by the Centre. As the process of valuation of the government stake took more than two years, the dispute of valuation arose between government and Sterlite. The Anil Agarwal-promoted company decided to pull a fast one on the Government by sending the cheque for the stake to the Finance Minister without being asked to do so. The government, which was well aware that questions over valuation could kick up a political storm, decided to call off the sale on the advise of the Attorney General. It returned the cheque that Sterlite had sent and referred the issue to Empowered Group of Secretaries in a trouble-shooting measure. But the only bonanza that the government managed through the compromise with the Left parties was the sale of eight per cent residual shares it held in Maruti Udyog Limited for Rs 1,500 crore. (PTI) |
Small software firms aim at bigger pie of Fortune 500 business NEW DELHI, Dec 17: Sixty per cent of Fortune 500 companies outsource their software requirements to India and the number of such firms is likely to grow, the Electronics and Computer Software Export Promotion Council (ESC) said today. ESC, which would be organising its annual global networking event 'INDIASOFT' in Hyderabad from January 9, said that there was a further effort being made to prepare Indian companies to increase their share in the world market. According to ESC Executive Director D K Sareen, INDIASOFT would focus on major industry segments that require software and services such as business services, communications, entertainment and IT. Achievemnets of the small and medium enterprises would also be showcased. He said companies participating in the prestigious event would look for opportunities in non-traditional markets of EU and far East Asian countries, Latin Amercan IT market, Middle East, Eastern Europe and Africa. (PTI) Crude oil prices may fall to $53 a barrel by 2008: World Bank.. NEW DELHI, Dec 17: Global crude oil prices will remain volatile in the near term but may fall to 53 dollars a barrel by 2008 as new production facilities become operational and high prices moderate demand, the World Bank has said. Oil prices are likely to remain volatile in near term due to marginal spare production capacity worldwide, a World Bank report -- 'Global Economic Prospects - Managing the Next Wave of Globalization 2007' said. International crude oil prices crossed 75 dollars a barrel early this year, partly because of tension in Middle East. The prices, however, fell to 58 dollars a barrel early last month, and presently hovering around 61 dollars. "High prices should continue to moderate demand growth, while investments in new capacity already in the works are projected to increase output by about 15 million barrel per day (mbpd) by 2010, implying a 3 mbpd annual increase, well above expected increases in demand of between 1.5 and 2 mbpd annually," the report said. "As a result, the price of oil is projected to decline modestly over the next two years, reaching an average level of 53 dollar in 2008," it added. World Bank said the decision of oil exporting nations to increase prices seems to have boomeranged. Rising prices slowed down demand, especially in developed countries, but continued to rise in developing countries like India and China. Oil demand increased by 0.5 mbpd in the first three quarters of 2006, compared with 3.2 mbpd in 2004. "Had prices remained unchanged, oil demand would have increased by some 2-2.5 mbpd," the report said. (PTI) |
Maruti’s Estilo - 10,000 bookings in ten days. NEW DELHI, Dec 17: Zen Estilo, Maruti’s latest offering in the compact car segment, has received tremendous response from the market with over 10,000 bookings in the first ten days of its launch. Estilo, an all new model of Maruti’s earlier number grosser ‘Zen’, was launched by the company on December 5 in four variants after the company had discontinued the production of the earlier model around eight months back. "The Estilo has received good response from the market and around 10,000 cars were booked in the first ten days of its launch," dealers of the company said. Some of the dealers say the overwhelming response to the new model had resulted in a waiting period of three-six weeks. When contacted, company officials said, "Efforts were being made to reduce the delivery time for the car." The Estilo was launched with an entry price of Rs 3.19 lakh while the top end variant sports a price tag of Rs 4.02 lakh (both ex-showroom Delhi). Maruti, which had earlier this year announced that it will launch five new models over the next five years, is slated to launch a diesel variant of its blockbuster ‘Swift’ in the coming months. (PTI) |
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