Daily Excelsior...Business

Disinvestment on
hold: Minister

NEW DELHI, Dec 19: Disinvestment of Government equity in state-run companies continues to be on hold pending wider political.. .........more

World not flat as yet; Blame it on non-economic issues

NEW DELHI, Dec 19: Fortune 500 CEO's vision of a flat world created by large and super efficient corporations without boundaries has hit a roadblock .......more

Lupin gets US FDA
nod for Trandolapril

MUMBAI, Dec 19: Pharmaceutical firm, Lupin today said it has received USFDA tentative approval for Trandolapril tablets, used in the treatment of hypertension. ......more

2006: Loans, deposits
get costlier; banking
service improves

NEW DELHI, Dec 19: Borrowing money from banks generally became a costly affair in 2006, although higher credit growth, hardening interest rates, deposit mobilisation, consolidation ......more

Tata Power may tie-up
funds for Mundra
Ultra Mega Power Proj

NEW DELHI, Dec 19: Tata Power company today said it is likely to tie-up funds for the 4000 mega watt Mundra Ultra Mega ........more

2006: Sizzling year
for hospitality industry

NEW DELHI, Dec 19: Higher room rates, never-before occupancy levels and promise of a whopping Rs 20,000 crore investments by domestic and foreign ......more

Ten aircraft from Indian's fleet grounded: Govt

NEW DELHI, Dec 19: As many as ten aircraft out of state-owned carrier Indian's 57 Airbus fleet are grounded at present for maintenance and want of . ......more

NWDA identifies 30 links

NEW DELHI, Dec 19: The National Water Development Agency (NWDA) has identified 30 links under an ambitious plan to inter-link rivers in the country, Water Resources Minister Saifuddin Soz told Rajya Sabha today.. .........more

Scheme to set up Industrial Parks extended...........

Lankan shopping festival from Dec 15-Jan 15.....

India to adopt utmost flexibility in trade talks with Nepal.......

Honda to launch small car in India: Fukui........

Disinvestment on hold: Minister

NEW DELHI, Dec 19: Disinvestment of Government equity in state-run companies continues to be on hold pending wider political consensus, Minister for Heavy Industries and Public Enterprises Sontosh Mohan Dev told Rajya Sabha today.

"All disinvestments are on hold... Sometime coalition politics compels us to take certain decisions," he said replying to supplementaries during Question Hour.

Dev said the process will continue to be on hold till a political consensus is built on the issue.

The Government had approved disinvestment of Maruti Udyog Ltd reducing government share to 45.79 per cent and renunciation of rights shares in May 2002. In January 2006, 8 per cent of governemnt share was sold to public sector financial institutions and banks.

"On July 6, 2006, the government further decided to keep all disinvestment decisions and proposals on hold pending further review," the Minister said.

He said the Government constituted a 'National Investment Fund' (NIF) in November 2005 for channelising the proceeds from disinvestment of equity in Central Public Sector Enterprises.

Of the NIF proceeds, 75 per cent will be used to finance selected social sector schemes to promote education, health and employment and the residual 25 per cent will be used to meet the capital investment requirement of profitable and revivable Central Public Sector Enterprises in order to enlarge their capital base to finance expansion or diversification.

"Till date, no funds have accrued to NIF," Dev said. (PTI)

World not flat as yet; Blame it on non-economic issues

NEW DELHI, Dec 19: Fortune 500 CEO's vision of a flat world created by large and super efficient corporations without boundaries has hit a roadblock being posed by growing geopolitical and socio-cultural risks across the world, including India, a new study says.

Incidentally, it was a visit to India and discussions with domestic IT major Infosys' CEO Nandan Nilekani that influenced the Pulitzer award winning columnist of the New York Times to come out with a best-seller named "The World is Flat."

This was followed by a number of MNCs adopting the flat-world vision, along with Infosys, which now calls its business perspective "Think Flat."

However, this vision has failed to heed the growing geopolitical and socio-cultural risks that have begun to roll back the Fortune 500 companies' global expansion efforts, Forrester's Vice President Navi Radjou says in a latest report from the technology research firm.

With exponential global trade growth in the recent decades, the world appears increasingly smaller and flatter, while promising massive new market opportunities for the companies, Forrester said.

The worldwide exports have tripled from 3.45 billion dollars in 1990 to 9.12 billion dollars in 2004, fuelled by integration of countries like India and China into global economy.

However, the direction and pace of globalisation is not cadenced by the market forces alone and geopolitical and socio-cultural concerns might spoil the party, the report said. (PTI)

2006: Loans, deposits get costlier; banking service improves

NEW DELHI, Dec 19: Borrowing money from banks generally became a costly affair in 2006, although higher credit growth, hardening interest rates, deposit mobilisation, consolidation and strikes grabbed newspaper headlines for most part of the year.

Loans for all segments, including home, car, personal consumption and corporates, became costlier by 1-2.5 per cent in 2006 and the upward pressure still continues due to excess demand for credit and higher inflation.

Interest rates kept lenders and borrowers on their toes as Reserve Bank raised key short term interest rates four times and Cash Reserve Ratio once to moderate credit growth and contain inflation this year.

Hardening of interest rates and low deposit growth pushed deposit rates by 1.5-2.5 per cent to the pleasant surprise of investors, as they could get tax incentives for deposits too.

Banks are now giving 8-9 per cent interest for term deposits even as they try to mop up more resources from savings and current accounts, the cheapest source of funds.

Acquisitions and mergers took a new turn this year with three small domestic banks getting merged with larger lenders, while a deal has been signed to buy a foreign bank.

Ailing United Western Bank was merged with IDBI, Centurion Bank of Punjab acquired Kerala-based Lord Krishna Bank, ICICI Bank is buying out Sangli Bank, while Bank of India has signed an agreement to buy an Indonesian lender PT Bank Swadesi. (PTI)

2006: Sizzling year for hospitality industry

NEW DELHI, Dec 19: Higher room rates, never-before occupancy levels and promise of a whopping Rs 20,000 crore investments by domestic and foreign players to exploit the huge supply-demand gap made 2006 no less than a dream year for the Indian hotel industry.

Ranked by the World Travel and Tourism Council (WTTC) as the fastest-growing tourism destination with a projected demand of over one lakh new rooms, India saw its hospitality industry literally go into a fast-forward mode in 2006, continuing the revival post 9/11 attacks in the US in 2001.

If DLF scooped a deal with Hilton for a foray into the burgeoning sector and Unitech tied up with Marriott, foreign players like Accor, Emaar and Hillwood also announced plans for the country.

Not to be outdone, the domestic biggies like Indian Hotels, ITC, Leela Group and Oberois also loosened their purse strings to add rooms, the budget segment being the hottest.

And in between all this growth, the year also saw the industry losing one of its biggest doyens in the sudden death of hotelier Lalit Suri, the late Chairman and Managing Director of Bharat Hotels. Suri, 59, who was in London as part of a delegation of industry chamber FICCI, died of a massive heart attack.

This loss notwithstanding, the industry had some of its best moments in the year, especially due to the fact that peak tariffs also failed to dampen the high occupancy rates, as foreign tourists inflow rose to 3.88 million during January- November 2006 compared to 3.43 million a year ago. (PTI)

Ten aircraft from Indian's fleet grounded: Govt

NEW DELHI, Dec 19: As many as ten aircraft out of state-owned carrier Indian's 57 Airbus fleet are grounded at present for maintenance and want of engines, Lok Sabha was informed today.

Observing that normally about seven aircraft remained grounded at any given point of time, Civil Aviation Minister Praful Patel said during Question Hour that nine A-320s and one A-300 planes were presently not in service for major maintenance, want of engines or scheduled maintenance.

The Indian has a fleet of 57 Airbus aircraft -- six A-319s, 48 A-320s and three A-300s, he said, adding that efforts were on to increase engine availability so that optimum utilisation of aircraft as per laid down norms was achieved.

Asked what steps the Government proposed to take on the "arbitrary decision" of private airlines to impose a congestion surcharge for hovering over Delhi and Mumbai airports, Patel said: "Domestic air fares are not regulated by the government after the repeal of the Air Corporation Act 1953. Domestic airlines are free to charge air fares as per their commercial judgement".

Maintaining that the average domestic aviation turbine fuel prices had declined by about eight per cent, he said the question that government should impress private carriers to reduce prices "does not arise".

To a question on Air-India's plans to launch direct flights to the US from next summer, Patel said the fares on this route have not been decided. Air-India planned to launch the non-stop service after taking delivery of three new ultra-long range Boeing 777-200 LR aircraft in April-May 2007. (PTI)

NWDA identifies 30 links

NWDA has identified 16 Peninsular and 14 Himalayan links for preparation of feasibility reports, he said in a written reply to a question.

The links identified in the Peninsular rivers include Mahanadi (Manibhadra) to Godavari (Dowlaiswaram), Godavari (Polavaram) to Krishna (Vijayawada), Krihsna (Srisailam) to Pennar, Par-Tapi-Narmada, and Ken to Betwa.

The components for Himalayan rivers include Kosi-Mechi link, Gandar-Ganga link, Ghaghra-Yamuna link, Yamuna-Rajasthan link, Sone Dam-Southern Tributaries of Ganga link, Farakka-Sunderbans link, Ganga-Damodar-Subernarekha link and Subernarekha-Mahanadi link.

A Task Force under the chairmanship of Suresh P Prabhu, the then Member of Parliament, was constituted in December 2002 on inter-linking of rivers.

"The Tax Force on Inter-linking of rivers was wound up with effect from December 31, 2004 on completion of its work," he said. (PTI)

Scheme to set up Industrial Parks extended

NEW DELHI, Dec 19: The scheme for setting up of Industrial Parks, envisaging promotion of quality industrial infrastructure in the country, has been extended up to 2009, government told the Lok Sabha today

So far, 203 such parks have been approved and 157 proposals are pending, Minister of State for Commerce and Industrial Promotion Ashwani Kumar said in reply to questions.

At least 66 industrial parks across the country have become functional during the last three years, he said.

He said the scheme was originally to expire this year but has been extended till 2009.

"We are determined to go out of way to develop quality infrastructure," Kumar said.

Maintaining that the scheme is highly beneficial, he said an effective monitoring was being done and in case of inordinate delays, action is taken against the developers.

Under the scheme, Income Tax benefits are available to undertakings which are engaged in the business of developing, operating and maintaining of industrial parks.

The scheme also provides for deductions, in calculating the tax payable, under the Income Tax Act on profits from industrial undertakings or enterprises, engaged in infrastructure development for a period of 10 consecutive years in a block of 15 assessment years after the commencement of business. (PTI)

Lankan shopping festival from Dec 15-Jan 15

CHENNAI, Dec 19: With a view to showcase the best of Sri Lankan brands and products, a shopping festival is being held at the Sri Lankan Trade Centre (SLTC) here from December 15 to January 15.

On offer would be a diverse variety of products, including jewellery, fine porcelain tableware, Sri Lankan tea and snacks, herbs and spices and the like.

A number of well-known Sri Lankan brands are participating in the event, including Stone N String, Okapi, Sifani, Dankotuwa Hemachandras, Lionco, True Organix and Melsna Siddhalepa.

"There are surprise gifts happening all the time at the Sri Lankan Trade Centre," organisers of the festival said in a press release.

The Sri Lankan Export Development Board governs Sri Lankan Trade Centre. (PTI)

India to adopt utmost flexibility in trade talks with Nepal

NEW DELHI, Dec 19: India has decided to hand over a virtual blank cheque to Nepal as it prepares to start talks for extending the trade treaty between the two countries.

"In the talks (for extending the agreement) we will be guided by what Nepal wants," Commerce Secretary Gopal K Pillai said here.

The statement assumes significance in view of the recent political changes in the Himalayan country.

The India-Nepal Trade Treaty expires in March next year after it was extended for five years in March 2002. The treaty was originally signed in 1996 and has continued without much changes since then.

Pillai said that India has more than a Free Trade Agreement with Nepal. "Negotiations on extending the treaty has not yet begun, but India is not looking at any major changes in it," the Commerce Secretary added.

As per the treaty, Nepalese products enjoy zero duty access into India.

During the last extension in 2002, detailed rules of origin and value addition norms were laid down.

A safeguard clause was also inserted to permit appropriate remedial measures in tune with international norms to deal with surge in imports that may hurt domestic industry.

Tariff rate quotas (TRQs) in the case of four sensitive commodities like vanaspati, acrylic yarn, copper products and zinc oxide were also to be introduced that would permit duty free imports of these commodities only up to a certain ceiling. (PTI)

Honda to launch small car in India: Fukui

NEW DELHI, Dec 19: Honda Motor president and CEO Takeo Fukui today announced the company will launch a small car in India as it goes in for a new plant to expand capacity in the country.

In his year-end address in Tokyo, Fukui said the company was aiming to produce and sell more than 1,50,000 cars in India annually by the end of 2010.

This is the first time Fukui has officially announced that the company would be joining the big-volume small car bandwagon in India.

Honda, which is currently doubling capacity at its Greater Noida plant to 1,00,000 units at an investment of Rs 400 crore, is also scouting for a location for a new greenfield plant, possibly to be used for the small car.

The company is estimated to be mulling investments of around 200 million dollars for the new plant.

Fukui announced a series of initiatives and expansion plans for Honda operations in Japan and across the world in his address.

"Annual automobile production capacity in India will be doubled to 1,00,000 units by the end of 2007," he said, adding that it was progressing as per schedule.

Honda has a partnership with the Shrirams in India, though it holds as much as around 99 per cent in the joint venture Honda Siel Cars India. (PTI)