IOC keen on ADB stake in Petronet; also suggest sale to public..........

Unemployment rate rising....

GM to start trial production of new plant next week....

Railway may seek Chinese help in developing stations........

Mascon Global acquires two US-based firm for USD 55 mn

MUMBAI, Mar 12: IT services provider Mascon Global today said it will acquire two US-based companies for 55 million dollars (about Rs 222 crore).

The board of directors has approved the acquisition of Jass & Associates Inc and SDG Corporation for a consideration of 55 million dollars, of which 35 million dollars would be paid in cash and the remaining through issue of Global Depository Receipts (GDRs), the company informed the Bombay Stock Exchange.

Last year the company’s board had approved the allotment of 21 million dollars worth GDRs, of which 20 million dollars would be funded towards acquisition, the company had said.

The GDRs would be listed with the Luxembourg Stock Exchange (LSE), the filing said.

Further, the board had also approved the raising of 50 million dollars through issue of Foreign Currency Convertible Bonds. (PTI)

BSNL to recover over Rs 3,600 cr from subscribers

NEW DELHI, Mar 12: State-owned telecom giant BSNL has to recover a whopping Rs 3,665.51 crore mainly from the private subscribers, an amount which equals to approximately half of the company’s profit after tax for 2006-07 that is Rs 7,805.87 crore.

This was revealed by an audit report of the Comptroller and Auditor General of India presented in Parliament.

The report pointed out that the major culprits cutting such huge holes in the kitty of BSNL were private subscribers whose outstanding accounted for a huge 95.35 per cent while the Central and state subscribers together accounted for just 4.65 per cent of the total outstanding for 2006-07.

The amount outstanding against private subscribers has been continuously increasing over the past few years and last year alone, the amount outstanding against them was a huge Rs 239.69 crore, the report said.

Of the total Rs 3,665.51 crore outstanding against various categories of telephone subscribers at the end of June 2007, the share of private subscribers constituted Rs 3,495.21 crore.

This accounts for almost half of the profit of Rs 7,805.87 crore earned by the company in the fiscal 2006-07.

The decrease in profit has been due to fall in income from services, the report added.

While the share of the Central Government was a minuscule one per cent and that of State Government amounted to mere 3.65 per cent.

Private subscribers have not shown interest or attention in paying the dues of the company for past many years, the audit report said.

Their total outstanding in 2002-03 was Rs 2,477.24 crore (92.29 per cent of the total outstanding), which eventually rose to Rs 3,255.52 crore in 2005-06 (94.87 per cent of the total outstanding).

The inability and inefficiency of BSNL has robbed it off huge amounts running into crores.

Whereas, the amount due to various states and the Centre has decreased considerably over all these years, the report added.

The CAG criticised the telecom giant and has asked it to expedite its endeavours for recovering the huge outstanding amount from the private subscribers. (PTI)

Industrial growth slipped to 5.3 pc in January

NEW DELHI, Mar 12: Industrial growth slipped to 5.3 per cent in the month of January, compared to 11.6 per cent in the same month last year as growth in all major sectors comprising manufacturing, electricity and mining declined.

Industrial growth, as measured by Index of Industrial Production (HIP), has moderated to 8.7 per cent in the first 10 months of the current fiscal, against 11.2 per cent during the corresponding period of the previous fiscal, according to official figures released today.

In January, all major sectors like manufacturing, mining and electricity registered a slide in production growth. In fact, consumer durables production registered a negative growth both in January and the first 10 months of this fiscal.

Output of consumer durables fell to 3.1 per cent in the first month of this calendar year, against 5.3 per cent growth in the same month last year. In the April-January period production declined to 1.7 per cent, against 10.6 per cent growth in the same period last fiscal.

Growth in manufacturing output, which has an overwhelming weight in the IIP, slipped to 5.9 per cent in January, against 12.3 per cent, electricity generation growth fell to 3.3 per cent, against 8.3 per cent and mining output growth moderated to 1.8 per cent against 7.7 per cent.

During April-January 2007-08, manufacturing output growth declined to 9.2 per cent from 12.1 per cent during the corresponding period of 2006-07.

Electricity generation growth slowed down to 6.3 per cent during the period under review, against 7.6 per cent in the same period last fiscal. Mining output growth during the 10 months declined to 4.6 the per cent against 4.8 per cent. (PTI)

IOC keen on ADB stake in Petronet; also
suggest sale to public

NEW DELHI, Mar 12:After GAIL, Indian Oil Corp has expressed interest in buying out Asian Development Bank’s 5.2 per cent stake in Petronet LNG Ltd, company Chairman Sarthak Behuria said here.

However, if the state-run promoters of Petronet are not allowed to raise stake in the company for fear of it becoming a public sector unit, Behuria suggested selling ADB’s shareholding to the public.

Behuria’s suggestion of selling ADB’s shareholding to the public may find takers in other promoters-GAIL, ONGC and BPCL, which want to block "backdoor" entry of steel czar Lakshmi Mittal into the nation’s largest LNG importing firm.

"We have written to Petronet CEO Prosad Dasgupta about our interest in ADB stake and that if that was not possible it should be divested in favour of Indian public," Behuria said.

Petroleum Secretary M S Srinivasan, who is also the chairman of Petronet, is against the four promoters buying ADB’s stake and may instead back Dasgupta’s move to get Mittal or US’s Chevron on board.

Dasgupta had in response to GAIL Chairman U D Choubey’s written request for buying out ADB’s stake stated that the multilateral agency’s stake should be given to a third party like Mittal or Chevron, which in exchange is willing to offer LNG to Petronet.

IOC, GAIL, ONGC and BPCL together hold 50 per cent stake in Petronet, while Gaz de France holds 10 per cent. These firms have the first right of refusal over ADB stake. ADB is likely to exit Petronet by year end as its internal regulations prohibit it from being a debt financier as well as equity holder in the same company. (PTI)

Unemployment rate rising

NEW DELHI, Mar 12: The rate of unemployment rose from 7.3 per cent in 1999-2000 to 8.35 per cent in 2004-05, the Rajya Sabha was today informed.

"As per the national sample survey organisation’s 61^st round survey report, unemployment rate on current daily status basis has increased from 6.1 in 1993-94 to per cent to 7.3 per cent in 1999-2000 and further to 8.35 per cent in 2004-05," Labour and Employment Minister Oscar Fernandes said in a written reply.

"This was because the working age population grew faster that the total population and labour force participation rates increased, particularly among young women", he said.

The 11th five year plan has special schemes to encrouage the organised sector to employ more labour and simultaneously, to improve labour productivity in the unorganised sector.

It also aims at making employment generation an inegral part of the growth process and devise strategies to accelerate not only growth of employment but also wages of poorly paid workers, he said.

"Efforts are also being made to identify and implement systemic reforms in administration of Industrial Training Institutes (ITIs) so as to facilitate closer interaction with the industry in order to improve quality of training, make the graduate better employable and help them earn decent wages," Fernandes added.

To a question on Public Private Partnership (PPP) model for garbage management, the Minister said, "as one of the option reforms of Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Public Private Partnership (PPP) is being encouraged for treatment of garbage in certain metros while approving the Solid Waste Management projects under JNNURM,".

"State Government and Urban Local Bodies (ULBs) are advised to involve PPP in solid waste management activities and its further operation and maintenance under JNNURM," he said.

On the health care of people engaged in garbage collection, Fernandes said, there is no specific scheme for them.

However, ‘Rastriya Swasthya Bima Yojna’ has been launched for BPL families in the unorganised sector The worker and his family with a unit of five persons will be covered under the scheme. (PTI)

GM to start trial production of new plant next week

MUMBAI, Mar 12: General Motors India will start trial production in its new plant in Talegaon next week and is confident of achieving the sales target of 200,000 by 2010, by which time export of components from India will cross One Billion USD.

The second plant coming up near Pune at a cost of USD 300 million is all set for production and commercial manufacture, which would commence in the last quarter of 2008, GM India President and Managing Director Karl Slym told newsmen here at the launch of the fifth anniversary celebrations of Chevrolet in India.

The Company’s first plant in Halol, Gujarat was bursting to its capacity of 85,000 vehicles a year, Mr Slym said.

Stating that the Company was planning launch of more small cars in India apart from its two models Aveo U-Va and Spark, he said that the Company would not attempt to match the price of Tatas small car Nano as it had to keep the status of Chevrolet in mind. "We deliver to a different segment of customers" he added.

The Company was also at the finalisation stage of setting up a powertrain unit in India at a cost of USD 200 million, he added.

Buoyed by the success of the year’s first launch Captiva, which had overshot the year’s target and was expected to sell over 1200 vehicles this year, Mr Slym said that GM India hoped to start exporting cars once the Talegaon unit went on stream. "Currently production is overstretched to meet the domestic requirements," he said, stating that once the second unit commences production, there would be exportable surplus.

Mr Slym said that the company also aimed to take the total number of engineers and designers at its Research Centre in Bangalore to 2000 in a couple of years from the current strength of 1148. He expressed confidence that once the Centre got to the level of other global R and D centres of GM it could come out with its own designed cars.

The Bangalore centre was involved in the future cars looking to over the next decade, he added.

On exporting of auto components to other GM plants in the world he said since 1996, GM had made India a sourcing centre and last year the value of exports was around 300 M USD. By 2010 this figure would cross one billion USD, he said adding that much depended on the economic situation of the country. GM had enhanced its sourcing from India inview of the maturity of the auto component segment and the Company would increase the number of components.

He said plans were also afoot to increse the capaity of the new Talegaon plant to 300,000 in the second phase.

He said that GM grew by 74 per cent in India in 2007 against the Industry average of 14 per cent. The company which had a share of 3.3 per cent in the car industry in the country aimed to increase it to ten per cent by 2010. "We would continue to maintain the same growth rate over the next few years" he added.

Celebrating the fifth anniversary, the company launched a new campaign "cashless ownership offer" through the hands of its brand ambassador actor Saif Ali Khan. The offer was a unique zero-ownership offer that would take care of labour cost, parts for all services, maintenance and running repairs for a period of three years or 45,000 km whichever occurs earlier. This allowed customers to enjoy free motoring for a period of three years, he said.

Mr Slym said, true to GM’s vision Chevrolet had quickly become amongst the most admired and preferred automotive brands in India. (UNI)

Railway may seek Chinese help in developing stations

NEW DELHI, Mar 12: Railways may seek Chinese help in developing railway stations at Bhubaneswar and Bypanahalli in Bangalore.

A high-level Chinese delegation is visiting India from tomorrow to understand the Indian Railway system in a better way as part of the memorandum of understanding (MoU) signed between both the countries.

The 13-member delegation headed by Wu Wei, Director of Sino-India Railway Cooperation Working Group will visit Agra, Bhubaneswar, Mumbai and Bangalore during their 12-day visit.

The Chinese team would meet senior railway ministry officials and visit railway stations at different places during the visit, said a senior railway official.

The two countries’ cooperation in rail sector is envisaged in the MoU signed on January 14 during Prime Minister Manmohan Singh’s visit to Beijing.

The agreement, valid for three years, envisages development of rail-related programmes of mutual interest.

Among others the team would explore the possibilities of cooperation on the proposed high speed corridor, development of railway stations and heavy haul operation, said the official.

The team would visit railway station at Bhubaneswar and Bypanahalli to explore the possibility of developing these stations at the international level.

"After visiting these places, the team would share their views with us about the way to go ahead with the project, said the official.

The Chinese team would survey the suburban rail service and the possibility of introducing high speed trains in the Western region during their Mumbai visit.

Some members of the team would travel in the driver’s cabin of the Shatabdi train while going to Agra to observe the signalling system, speed and track, the official said.

The other areas in which India seeks cooperation of the Chinese Railway include development of multi-modal logistics parks, heavy haul operations and research and development.

The modalities of mutual cooperation is going to be firmed up during the visit, said the official.

The Chinese Railways’ experience in signalling and telecommunication, traction supply, high axle load operations, design and maintenance practices, track machines, development and operations and multi-modal transport in railway sector would be of benefit to Indian Railway.

About the selection of cities for the Chinese team, the official said we have selected one station each from south, north, east and west. (PTI)