Daily Excelsior...Business

Investors eye equity in GoAir, other budget carriers........

‘We CARE’filmfest to educate people about disability .........

Indian banks eye US shores; SBI gets license for third branch..........

India growth story faces multiple challenges: Study........

Revenue realisation growth rate slows down in H1: RBI

MUMBAI, Jan 27: Buoyancy in revenue realisation dropped significantly during the first half of current fiscal, mainly on account of poor growth of indirect taxes, a RBI report says.

"During April-September 2007-08 revenue receipts at Rs 1,97,956 crore registered an increase of 22.6 per cent, lower than 31.4 per cent recorded during April-September 2006-07," according to RBI analysis of finance of the central government for the first half of this fiscal.

The deceleration in the revenue growth rate has been primarily on account of excise duty collection, which fell to 3.4 per cent as compared to 7.4 per cent during the first half of last fiscal.

The report further said that "growth in all indirect taxes during the first half of 2007-08 not only decelerated but also recorded growth lower than those envisaged for the full year."

All indirect taxes recorded a much lower growth as compared with the corresponding period last year, it said.

As regards direct taxes, corporation tax showed a growth of 38.6 per cent during the first half as against 49.2 per cent a year ago, the report said.

Income tax realisation, however, increased by 38.2 per cent during the April-September 2007 as against 29.1 per cent during the corresponding period last year.

It further said that various other segments of income tax, with an exception of Fringe Benefit Tax, witnessed moderation during the period. (PTI)

Issue hard copy of bills free of cost: TRAI

NEW DELHI, Jan 27: Telecom regulator TRAI has issued an order asking service providers to issue free of cost hard copy of bills to their postpaid customers.

The Tariff Amendment Order is applicable to all types of tariff plans of mobile (GSM and CDMA) and fixed line services in respect of postpaid suscribers.

The move will enable the customers to satisfy themselves about the genuineness of the bill, facilitate making payments, verify the charges incurred by them and monitor usage, TRAI said in a statement.

It added that most customers who own a phone may not have access to computer or internet to obtain the bill through e-mail.

The itemised bills for long distance calls free of cost and local bills will remain under forbearance.

Service providers of the other utility sectors such as electricity, water and financial institutions do not charge any amount for providing the hard copy of the bill, the statement added. (UNI)

Voltas open to acquisitions in electro-mechanical projects

MUMBAI, Jan 27: Tata Group firm Voltas Ltd is open to acquisitions in its electro-mechanical projects and services business with a view to accelerate growth, a senior company official said.

"We are open to acquisitions to spur rapid growth in this business. If the right opportunity presents itself, we will take it," Voltas Executive Vice-President (Finance) and CFO M M Miyajiwala told PTI here.

The electro-mechanical projects and services business presently contributes around 55-60 per cent of the company’s total revenues "and we are very strong in this business. Hence, we will like to grow it rapidly," Miyajiwala said.

The inorganic growth route is one way to grow rapidly, he said.

Voltas was open to buys both in the domestic and overseas markets. However, nothing has concretised as yet, he said.

The company booked orders worth Rs 1,000 crore in Q3 FY 08 in the electro-mechanical projects and services segment. Its total order-book now stands at Rs 3,504.85 crore, up 44 per cent over the year-ago period.

On fund-raising, Miyajiwala said "we have surplus cash and hence, there is no need to raise funds for now."

A leading player in the air-conditioning and engineering services space, Voltas is set to fare well in the current fiscal, he said.

"In our business, the last quarter is normally the best. We have done well so far and are confident of success in the last quarter which should boost our FY 08 performance," he said. (PTI)

MCGM corporators to get laptops

MUMBAI, Jan 27: Municipal Corporators in the city will soon be provided laptops to make them easily accessible to people in their wards.

The scheme to provide laptops to 227 corporators of the Municipal Corporation of Greater Mumbai (MCGM) will be included in the next year's budget, Municipal Commissioner Jairaj Phatak said.

As per the scheme, which is under consideration, the corporators will use the laptops while in office and may be allowed to buy it at a depreciated price at the end of their tenure, he said.

This scheme had been implemented in some state government offices and can be thought of here as well, Phatak said.

The MCGM, with an annual budget of over Rs 10,000 crore, is one of the richest civic bodies in the country.

Additional Municipal Commissioner Manu Kumar Srivastava said the laptops would be acquired through a tender process and the contract would include a maintenance contract for the machines.

"We had recently started our website and our intention is that all corporators should be able to use it and have greater interaction with citizens," Srivastava said. (PTI)

Gold trade through Dubai grows 29 % from 2006

DUBAI, Jan 27: India remained the top trading partner for gold here as the total trade for the yellow metal through the entrepot was 19.03 billion dollar in 2007, an increase of 29 per cent from 2006, according to a statement by Dubai Multi Commodities Centre (DMCC).

In 2006 Dubai_s gold trade was estimated at 14.75 billion dollar, up from 10.73 billion dollar in 2005.

Dubai,s other top trading partners for gold are Switzerland, Malaysia, Australia, South Africa, Italy, the UK, Turkey, the US and Saudi Arabia, while the geographical reach of the business extended to 101 countries.

''Historically, gold has always been seen as a source of lasting value, and this is particularly true of the countries in West Asia and the Indian Subcontinent,'' said Ahmed bin Sulayem, Executive Chairman, DMCC.

Dubai remained an important global centre for the gold trade, with the emirate registering year-on-year growth during the last five years, he said adding that it was a clear evidence of the confidence the trade has in the strong economic policies of the Dubai Government.

A total of 559 tonnes of gold was imported into Dubai in 2007, up by 14 per cent from 489 tonnes in 2006. Exports from Dubai increased marginally to 287 tonnes compared to 274 tonnes in 2006. Gold price averaged 696 dollar per ounce in 2007, up from 604 dollar per ounce in 2006.

In the fourth quarter of 2007 gold trade grew by 34 per cent to nearly 5 billion dollar from 3.74 billion dollar in the same period in 2006. In the same period Dubai imported 107 tonnes and exported 77 tonnes of gold.

''Ongoing investor demand from across the world and global concerns about currency and inflation underline the nature of gold as a safe investment,''said Ian MacDonald, Executive Director for Gold and Precious Metals, DMCC.

''Dubai’s gold trade has also benefited considerably from the tight supply and strong demand fundamentals of the metal. Despite continuously rising prices, there has been almost 30 per cent increase in the emirate,s gold trade in 2007. We look forward to further growing the volumes and strengthening Dubai,s role as an important hub for international gold trade.'' he added. (UNI)

Syscom inaugurates SIM card plant; invest Rs 100 cr

NEW DELHI, Jan 27: Eyeing the growing telecom market in the country, Syscom Corp Ltd today formally inaugurated a sim manufacturing plant in Noida SEZ in a joint venture (JV) with Germany-based Sagem Orga at an initial investment of Rs 100 crore.

''The 8,000 square metre facility will not only cater to Indian market but will also cover South-East Asia, West Asia and African markets,'' company Managing Director and Vice President (Asia Pacific) Sanjeev Shriya told reporters here.

The company, which will currently manufacture 200 million sim cards annually, targets to double its production by 2009-10, he added.

Apart from manufacturing of sim cards, the company also manufactures smart cards, and driving licenses for five states - Gujarat, Madhya Pradesh, Orissa, Sikkim and Goa.

Syscom has 45 per cent of market share in India with major clientele including telecom operators like Vodafone, Bharti, Idea, Reliance and BSNL among others.

The plant which has been operational since November 2007 has manufactured more than eight million sim cards since its inception.

The 12 billion euro company has a total of 1,000 Indian workers out of which 350 are working in the Noida plant.(UNI)

Chemicals and chemical products fuel inflation to 3.83%

NEW DELHI, Jan 27: The inflation rate for the week ended January 12 stood at 3.83 per cent as compared to previous week's level of 3.79 per cent, on account of higher prices of chemical and chemical products.

The annual inflation rate was 6.15 per cent during the corresponding week of the previous year, an official statement said here today.

It is the 32nd successive week that inflation has remained below central banks comfort zone of five per cent.

However, a key government meeting to decide a hike in the retail prices of oil is expected to fuel inflationary pressures with the number expected to move towards four per cent in the near-term.

The wholesale price index for 'All Commodities' for the week ended January 12, rose by 0.05 per cent to 216.7 (Provisional) from 216.6 (Provisional) for the previous week.

The index for 'Chemicals and Chemical Products' group rose by 0.6 per cent to 205.7 (Provisional) from 204.5 (Provisional) for the previous week due to higher prices of acid (all kinds fifteen per cent), epoxy rasins (two per cent) and liquid chlorine (one per cent).

However, the prices of synthetic resins (six per cent), vitamin tablets A, B, C, D and others (five per cent), resins (all kinds three per cent) and varnishes and bopp film (two per cent each) declined.

The index for 'Manufactured Products' group rose by 0.1 per cent to 188.7 (Provisional) from 188.5 (provisional) for the previous week.

The index for 'Primary Articles' declined by 0.1 per cent to 222.1 (Provisional) from 222.2 (Provisional) for the previous week.

The index for 'Food Articles' group declined by 0.2 per cent to 219.9 (Provisional) from 220.3 (Provisional) for the previous week due to lower prices of gram (five per cent), fish marine (two per cent each), jowar, condiments and spices and masur (one per cent each).

However, the prices of maize and rice (one per cent each) moved up.

The index for 'Non-Food Articles' group rose by 0.4 per cent to 211.7 (Provisional) from 210.8 (Provisional) for the previous week due to higher prices of soyabean (seven per cent), sunflower(three per cent) copra, raw tobacco and raw rubber (one per cent each). However the prices of fodder (two per cent), safflower (kardi seed) one per cent declined.

The index for 'Fuel, Power, Light and Lubricants' group remained unchanged at its previous week 334.1 (Provisional).

The index for 'Food Products' group declined by 0.1 per cent to 194.9 (Provisional) from 195.0 (Provisional) for the previous week due to lower prices of bagasse (twenty five per cent).

However, the prices of imported edible oil (six per cent), sunflower oil (four per cent), cotton seed oil and gingelly oil (three per cent each) and sugar and coconut oil (one per cent) each moved up.

The index for textile group declined by 0.2 per cent to 128.0 (Provisional) from 128.2 (Provisional) for the previous week due to lower prices of hessian and sacking bags (three per cent) and hessian cloth (two per cent). However, the prices of tyre cord (two per cent) moved up.

The index for the 'Transport Equipment and Parts' group rose by 0.2 per cent to 166.8 (Provisional) from 166.4 (Provisional) for the previous week due to higher prices of car chassis assembled (one per cent).(UNI)

Areva in talks with Indian cos for nuclear power eqp unit

NEW DELHI, Jan 27: France's Areva has begun talks with Indian companies for setting up a nuclear power equipment manufacturing base in India.

"We have a lot of discussions with possible partners and suppliers. A lot of Indian industries are interested in becoming partner for global scale," Areva CEO Anne Lauvergeon told reporters on the sidelines of a business meeting of India France Economic Conference.

Her comments came even as India is still in talks with IAEA on nuclear safeguards agreement.

The company's Indian subsidiary Areva T&D supplies power transmission and distribution solutions in India and abroad. Areva T&D has early this week won a Rs 2,871.5 crore contract from the Qatar General Electricity and Water Corporation.

On delay in completion of Indo-US civil nuclear deal, Lauvergeon said: "The problem is the timing as it is a political issue in India. It is a matter of negotiations with IAEA and also with nuclear supplier group... As a company we have to wait for the response."

The company is looking for long-term partnerships in India, she said.

Countries such as France are awaiting finalisation of IAEA safeguards agreement to have civil nuclear cooperation. The agreement is a follow up to the India-US nuclear deal - a crucial step for allowing international community to have civil nuclear trade with India. (PTI)

Investors eye equity in GoAir, other budget carriers

NEW DELHI, Jan 27: Attracted to the huge growth prospects of Indian aviation space, investors from across the world have evinced interest in acquiring equity stakes in the country's at least three low-cost carriers, including SpiceJet and Wadias-promoted GoAir.

The equity dilution talks comes amid about half a dozen budget airlines lining up fleet capacity plans worth over USD 15 billion with an order book of about 250 aircraft to beef up their operations, particularly on domestic non-metro routes.

In order to augment these plans, the firms are seriously considering proposals to bring in more investors, as market is still in its nascent phase and heavy discounts being offered due to competition do not make it viable to arrange all necessary funds on their own, industry experts believe.

Jeh Wadia-led GoAir has emerged on the top of the radar of private equity investors, who are understood to have evinced interest in acquiring about 25 per cent stake in the carrier, while valuing the company at about USD 400 million.

The valuation is based on the company's business plans for the next 4-5 years and the offers were tabled by the investors during a recent meeting held with the Wadias.

When contacted, a company spokesperson said, "GoAir has been approached by Ernst and Young on behalf of some buyers who are interested in buying minority stake in GoAir."

However, GoAir official declined to comment on valuation figures and stake these investors are interested in buying.

Meanwhile, Dubai-based Istithmar World Aviation Holdings, an existing investor in SpiceJet, is looking to further raise its stake in the no-frills carrier, while owners of IndiGo are also reportedly roping in financial investors in another group company to fund the budget airline's expansion plans. (PTI)

‘We CARE’filmfest to educate people about disability

NEW DELHI, Jan 27: Close on the heels of Aamir Khan’s ‘Taare Zameen Par’ making an evocative plea for granting equal rights to education for mentally and physically challenged children, a film festival aimed at creating awareness about disability issues, equal

rights and opportunities to the mentally and physically challenged in society will be held in the capital from February 20.

"We CARE filmfest", would be held in the India International Centre, New Delhi from February 20-21, aiming at creating awareness about disability issues through films that could help foster integration in the society by spreading the message of ability.

At the same time, the festival, being organised by ‘Brotherhood’, an organisation working for several years for the welfare of the disabled, is aimed at giving a fillip to the rights-based approach where persons with disability were considered persons first, a plea which the recently released ‘Taare Zameen Par’ made in an effective way.

Says the festival Director Satish Kapoor, "films are very powerful medium for educating the people about the disability issues, stereotypes, misconceptions and also for creating awareness which can help in encouraging equal rights and opportunities to mentally and physically challenged people. As such, the name of the film festival "we CARE filmfest" sums up the sprit of this endeavour... This festival should not be looked as an event but as a movement."

Creating awareness on disability issues through the medium of films is a new concept in India, though such festivals have been held before in various parts of the world.

"Research shows that in most countries, the majority of children with disabilities do not know any disabled adult and, consequently, many have a difficult time in imagining their future. In this context, the audio-visual medium can provide a medium to observe disabled adults, undertaking a wide variety of activities, in effect, introducing them to positive role models," Mr Kapoor said.

The festival director said the aim of organising the film festival was to fill the lacunae in the films and documentaries in India to create awareness about such issues.

For, barring ‘Taare Zameen Par’ and, before it, Sanjay Leela Bhansali’s ‘Black’ and Gulzar’s ‘Koshish’, there are hardly any films focusing on disability issues and the plights of the mentally or physically challenged in India.

"While more than 25,000 foreign films and documentaries on disability issues are available to the target audience through proper channel and distribution network, it is pity that in India, there are about 40 films (both Hindi and regional language) and about 80 documentaries which are hardly available to the target audience,"Kapoor said.

He said ‘Brotherhood’ is working on a model by which short films and documentaries on various issues of disabilities would be easily available to the target audience for educating the students of regular schools, colleges on disability issues, as reference material for students of mass communication, journalism and film making institutions and for NGOs, special educators and counselors for creating awareness among general public.

Iridium Interactive has joined hands with Brotherhood and both were planning to make available these films and documentaries on web enable services.

Entries for the festival have been invited in four categories - upto one minute, upto 5 minutes, upto 30 minutes and upto an hour, on various disabilities as recognised by the Persons with Disability Act and the National Trust Act- Blindness, Low vision, Leprosy-cured, Hearing impaired, Locomotors disability, Mental retardation and Mental illness (recognised by the PWD Act, 1995) and Cerebral Palsy, Autism, Mental Retardation and Multiple disability (recognised as diability under the National Trust Act).

The films or documentaries to be screened at the film festival would showcase success stories with a view to projecting people with disabilities as role models, best practices in dissemination of information and awareness raising, best practices in inclusion, best practices in barrier free environment / Accessibility, best practices in employment (generating opportunities for jobs), best practices in rehabilitation of persons within their home and society at large, disability as a human right and disability as a development issue.

A specially constituted jury would select the entries in each category. The selected entries would be aired on "Nav Shikhar", the recently launched unique new channel of Rehabilitation Council of India (a statutory body of the Union Ministry of Social Justice & Empowerment) dedicated to the disability sector.

Efforts will be made to invite directors and producers of the selected entries to the "Nav Shikhar" studio at the RCI’s premises in New Delhi, for interaction with viewers after screening the films and documentaries.

The entries would also be uploaded on the soon-to-be-launched National Disability Web Portal of RCI and Media Lab Asia (a public sector undertaking of the Union Ministry of Communication and Information Technology, committed to innovating for digital inclusion, and empowerment of the disabled).

The repository of selected films would also be available at Brotherhood’s own portal which is currently under construction and should be operational by February or March this year. Selected films would also be screened in various mainstream schools, colleges, institutions of mass communication and journalism training etc. Wherever possible, directors or producers would be invited to interact and engage with students and viewers.

Besides films, Brotherhood has also been conducting workshops for students of Mass Communication and Journalism in the National Capital Territory of Delhi on issues like portrayal of disability in Indian cinema, impact of short films and documentaries in creating awareness, and role of students of Mass Communication and Journalism in creating awareness on disability issues.

The workshops have been held in Amity University, Indian Institute of Mass Communication, I P College, Kamla Nehru College, Bag Films, Asian Academy of Film and Television, LSR College .

"The response is very encouraging and we are expecting participation of students in a big way," Kapoor said. (UNI)

Indian banks eye US shores; SBI gets
license for third branch

NEW DELHI, Jan 27: Leading banks from India, including public sector major the State Bank of India (SBI) and private sector behemoth ICICI Bank, are looking to expand their presence in the US in a big way by setting up their branches in the country.

SBI, the country’s biggest lender, last week received the regulatory approval for a new branch in New York. In the US, it already operates branches in New York and Chicago, in addition to an agency in Los Angeles, California and a representative office in the Washington.

Besides, it also operates a subsidiary, State Bank of India (California) in Los Angeles.

The latest approval for SBI’s new branch from the US Federal Reserve has come close on the heels of ICICI Bank getting an approval for its first ever branch in the US.

Through its proposed Jackson Heights branch, SBI plans to offer a range of banking products and services, including deposit accounts and small business loans and would also undertake business of remittance, investment advisory and trade-related services.

ICICI Bank plans to conduct wholesale banking, which includes trade financing and services to the US-based subsidiaries of Indian companies at its New York branch. The private sector lender also has a representative office in New York, where it operates non-banking activities. Besides, it also has centres in Canada, the UK, Bahrain, Russia and Sri Lanka.

While the two leading Indian banks, SBI and ICICI Bank, have presence across a large number of countries, the US comes at the centre-stage of their foreign expansion, given its strategic importance in the world of business.

SBI is present in 32 countries, while ICICI Bank has presence in 18 countries.

In an interview last month, ICICI Bank Managing Director and CEO K V Kamath had said that foreign assets account for 22-23 per cent of the bank’s total balance sheet, which the bank expects to rise to at least 25 per cent in 2008.

Kamath said he expects ICICI Bank as well as SBI to find a place among the world’s 10 largest banks in 5-10 years.

According to ICICI Bank’s Joint Managing Director Chanda Kochhar, after getting a license in the US, the bank was not looking merely at foraying into other countries. "In each of the 18 countries we are present, we have a lot of deepening and widening to do. This can happen in many ways. For some, it can be expanding the role of branches."

ICICI Bank is aiming to drive its overseas growth through focusing on Indian retail and corporate customers as well as its niche cost-effective banking platforms.

With more than 19 billion dollars of overseas assets, ICICI Bank is the largest international bank in India, Kochhar said. (PTI)

India growth story faces multiple challenges: Study

NEW DELHI, Jan 27: Even as the Indian economy and the capital markets exhibit strong fundamentals-led growth and vibrancy, their sustained growth hinges on the ability of the market regulator and the players to cope with five key challenges, a study says.

These five challanges are-political uncertainties till the general elections are over; pressure on the exchange rate, interest rates and inflation; rising oil prices; subprime crises, US slowdown and other global economic dynamics; and protecting investors’ interests in rapidly changing market dynamics, cautions FICCI-Ernst & Young.

Noting that liberalisation and the reform programmes instituted in

the 1990s are paying rich dividends. It says that an analysis of micro and macro parameters post liberalisation indicates that the economy witnessed structural shifts to spur growth, which was driven by services and manufacturing sectors.

While stating that positive demographics will fuel growth, the study notes that it may also lead to unskilled rural population adding to India’s social and employment woes. A consensus among the political circles has helped the economy to stay on the growth track. The country has managed its monetary and fiscal policies along the way to sustain the growth momentum.

The study on ‘Capital Markets _ Sustaining Growth and the Challenges Ahead’ says India will need to manage fallout of subprime crisis and its impact on the US economy, which is believed to be inching towards a slowdown. The slowdown may have an impact on the Indian exports as well as it could lead to capital flight due to increased profit booking and portfolio adjustments.

Rising oil prices, the FICCI - E&Y paper, points out, continue to remain a concern for India. The country needs to be more proactive and opt for energy efficiency, which will also help in reducing global warming. Biofuels are emerging as an effective substitute to oil; however prolonged usage is likely to result in food price inflation and the exploitation of natural resources.

On the capital markets, the paper states that there has been an increase in retail investors ‘participation directly and through mutual funds and unit linked plans. Institutional investors ‘both domestic and foreign’ have huge funds, which are flowing into the markets. The mutual fund asset under management is at an all time high, insurance companies are growing rapidly led by growth in linked products. Pension reforms will also aid the markets, the study adds. (UNI)