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Fin Min against immediate sale
of Maruti stake
Auto cos asked to increase exports from India
15.5 cr shares in Haldia Petro illegal: TCG
Tata Tea to buy 30 pc stake in US firm
Review SEZ policy, says Yechury
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DSM opens facility at Toansa
40 pc pre-paid mobile users sans proper verification: Maran
COAI for Rs 300-cr 3G spectrum fee
EADS to invest $2.57 b in India
India seeks guarantee on pipeline project
GoM puts temporary moratorium on new SEZ projects
Azim Premji in Forbes list
Maruti tops JD Power survey
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Fin Min against immediate sale
of Maruti stake
New Delhi, August 23 The Finance Ministry has conveyed to the Department of Heavy Industries that this was “not an opportune time” to offload the remaining 10.27 per cent stake of the government in Maruti and it should wait for an appropriate time. This comes days after Heavy Industries Minister Santosh Mohan Deb announced that the government had initiated the process of selling its holding in Maruti. “We have offered to the Finance Ministry to sell 10.27 stake that the government has in Maruti. Now, it is up to them to take the call,” Mr Deb had told reporters on Monday. According to sources, the Finance Ministry wanted the stock markets to stabilise before taking any final call on the matter. “They want the maximum out of it and, therefore, want to wait,” the sources said. The government stake in the company is held by the Ministry of Heavy Industries. Although the government could have set up Inter-Ministerial Group to take final decision about the route of disinvestment before announcing it, but the Finance Minister P. Chidambaram is reported to have favoured for waiting. “The ministry fears that in the prevalent market situation, the financial institutions or the banks may not offer good premium on the government shares in the company,” official sources said. Under pressure of the Left parties and its allies, the government has already put on hold its decision to disinvest its stake in other public sector companies, including Nalco and BHEL. Based on the current market price of company's scrip on the stock exchanges, the government is likely to raise around Rs 2,500 crore, if it decides to sell now. |
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Auto cos asked to increase exports from India
New Delhi, August 23 ''While the prospect of the domestic auto market in the future is quite huge, exports of the same from India are comparatively slack. To encourage this segment, the government policy will now shift towards those companies who focus on export activities,'' the minister said while inaugurating the Toyota-Technical Education Programme (T-TEP). The government will have a policy modulation in which exports will be emphasised, he said, and added that globally exports were growing at 30 per cent and have reached $3.5 billion. The minister also highlighted that his ministry was working on a Auto Mission Plan from 2006 to 2016, which will further encourage the growth of the auto sector and increase its contribution to the GDP of the country. Toyota Motor Corporation Executive Vice President Yoshimi Inaba said, ''As soon we have a bigger manufacturing base in India, we will definitely look at increasing exports out of the country.'' The T-TEP launched today will entail partnership of Toyota with 20 technical institutes across the country by 2009, at an investment of around Rs 25 crore.
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15.5 cr shares in Haldia Petro illegal: TCG
New Delhi, August 23 TCG’s counsel said during proceedings at CLB here that these 15.5 crore shares were beyond the structure of the company. TCG also argued that the creation of these shares was an act of suppression of facts by the HPL management and the state government, which holds shares through the West Bengal Industrial Development Corporation (WBIDC). “CLB may direct the state government to hand over an entire list of their shares,” TCG counsel said. The argument assumes significance in the tussle between promoters to control the company, as whosoever controls these 15.5 crore shares would have an upper hand in the HPL Board. Citing an example, the counsel said: “How a company having a capital of just Rs 95 crore could issue shares worth Rs 105 crore.” About TCG’s allegations that shares worth Rs 150 crore were issued to Indian Oil but were never registered, the West Bengal Government said that allotments to IOC were done under the authorised share capital. Sources say the shares are with the WBIDC, TCG’s partner in Haldia. TCG has accused that the shares, worth Rs 150 crore, were never registered. TCG had earlier contended that as per the agreement, the shares were supposed to be handed over them. However, the state government had said that HPL could not recognise these shares until these were given it to the company. As per the 2005 report of Registrar of Companies (RoC), there was no information on the 15.5 crore shares. Earlier, state government had offered TCG to buy out its entire shareholding in the company along with the 15.5 crore shares at a price of not less than Rs 28 per share. However, TCG had rejected the offer citing the price as too high.— PTI
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Tata Tea to buy 30 pc stake in US firm
Mumbai, August 23 EBI, commonly known as Glaceau, is engaged in high growth business of enhanced water and markets vitaminwater, smartwater, fruitwater and other things. The company has informed the BSE that the Board of Directors of the company at its meeting held today along with its promoter, Tata Sons Ltd (subject to approval of its Board), will together acquire 30 per cent shareholding in EBI with an aggregate investment of $677 million. Mr R.K. Krishna Kumar, Vice- Chairman, Tata Tea, and Director of Tata Sons stated, ''This transaction ensusres that Glaceau continues to meet the explosive demand for its vitaminwater brand fuelled by America's health and wellness revolution. Tata Group's investment in Glaceau strengthens its US presence and provides opportunities for global growth for Tata's beverage business.'' This transaction is being made through Tata Tea GB Ltd, which includes Tetley Tea's operations worldwide.— UNI
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Review SEZ policy, says Yechury
New Delhi, August 23 “Under the prevailing laws for SEZs, only 25 per cent of the land has to be used for industries or manufacturing and the remaining 75 per cent for commercial complexes or even housing projects. Why should incentives be given to real estate developers in the name of SEZs?” party leader Sitaram Yechury said here, demanding a review of the entire policy. Quoting a study by the National Institute of Public Finance and Policy, the CPM leader said if the total investment was estimated at Rs 360,000 crore, the loss in tax revenue over the next three years would amount to Rs 97,000 crore due to the incentives given. He said the fact that 200 applications for SEZs were pending even after the cap of allowing 150 SEZs was reached “shows how lucrative the business is that people are making a beeline for setting up SEZs. Why should property developers be given tax incentives? It is a massive loot of assets”. Mr Yechury said such huge revenue loss was not acceptable as the UPA government argued lack of funds when it came to the implementation of social sector projects. Indirectly referring to the Reliance SEZs in Haryana and Punjab, Mr Yechury said there was lack of transparency as to the acquisition of land. He said the Centre and the state governments should come out with a transparent land acquisition policy so that the farmers whose land was being acquired got adequate compensation.
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DSM opens facility at Toansa
Toansa (Nawanshahr), August 23 This was stated by the President, DSM Anti-Infectives, Mr Gerard De Reuver, who was here to launch its revolutionary antibiotic with highest purity, Purimox, and inaugurate the state-of-the-art plant to manufacture these antibiotics. As of now, Purimox is being produced only from the company's plant in Spain. The Technical Education Minister, Punjab, Mr R.C. Dogra, was also present on the occasion. "We have a long-term commitment to India, which is an important market for us. The new plant is part of our expansion plan to have a strong footing in the South Asian region," said Mr Gerard De Reuver. He said India and China were both emerging destinations, and DSM was looking at sites in both the countries as well as the USA for setting up innovation centres. "This year, we have earmarked $0.5 billion for innovation and setting up an innovation centre. The main innovation centre of the company is in Holland. But, with a competent human resource, market being pharma-oriented and stringent intellectual property rights in India, we are thinking of expanding our presence here," he said. "Though we are growing in China, where we entered the market in joint ventures with three Chinese companies, our Indian operations are doing better with a total turnover at $150 million. About 5,000 tonnes of amoxycillin is produced from its two plants in India, which is mainly exported to 82 countries in Asia- Pacific, West Asia and Africa. Only 50 tonnes of antibiotics is sold in India," said Mr N.V. Ramanan, Vice-President, DSM Anti-Infectives. Besides Toansa, DSM has manufacturing facility at Pune.
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40 pc pre-paid mobile users sans proper verification: Maran
New Delhi, August 23 “It was observed that all service providers in places like Delhi, Mumbai, Hyderabad and Haryana did not fully comply with the extant instructions on subscriber verification,” Mr Dayanidhi Maran, Minister of Communication and IT, said in a written reply in the Lok Sabha. In the sample checked, the minister said, it was observed that in pre-paid subscribers about 60 per cent and in post-paid about 93 per cent fully met the requirement of subscriber verification. Notices had been issued to concerned service providers in the above areas to disconnect connections provided without proper verification. On subscriber verification, Mr Ratan Tata had also written a letter to the DoT alleging that the mobile subscriber base could be inflated by as much as 40 per cent and this was affecting the spectrum allocation to service providers as the spectrum was being allocated based on the number of subscribers. Tata had demanded that a third party audit be carried to verify the subscriber base. Mr Maran said the Department of Telecom had carried out checks in Delhi, Mumbai, Chennai, Hyderabad and the state of Haryana regarding subscriber verification. Although, in the post-paid segment 93 per cent of the subscribers met the requirement of verification, the fact remained that of the total number of users of about 110 million, nearly 80 per cent were understood to be in the pre-paid segment in which 40 per cent subscribers did not meet the required norms. The service providers have been pleading with the government that lack of proper verification documents like ration card or passport has led to such a situation.— PTI
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COAI for Rs 300-cr 3G spectrum fee
New Delhi, August 23 COAI’s fresh suggestion has come in wake of telecom regulator TRAI advocating a per MHz fee for spectrum at the rate of Rs 85-120 crore. As per this methodology, a cellular operator would have to pay a whopping Rs 10,000 crore if it wants an all-India rollout of 3G services. “As regards applying a per MHz price for spectrum, it is submitted that the rate of Rs 85-120 crore per MHz charged in the far more economically-developed and affluent European countries cannot be simplistically applied to India as this would work out to an exorbitant price of Rs 10,000 crore or more, for all-India 5 MHz spectrum. This would make 3G a complete non-starter and completely negate the benefits that the technology can deliver,” the COAI said in a letter to TRAI. The association argued that the European economies had about a 33 times higher GDP per capita than India ($25,000 as compared to around $750). “It is, therefore, submitted that if at all such a benchmark is to be contemplated, it should be adjusted downward based on the ratio of GDP per capita to make the pricing more relevant to the Indian market and environment. “This would mean a price of around Rs 300 crore for all- India MHz spectrum,” it said. “As licensing has historically been done on a service area-wise basis, it would thus appropriate that 3G spectrum too, be awarded on a service area-wise basis”, it said. On the proposed mixed band plan, it said: “we are extremely distressed and concerned to note that despite being fully aware of the several adverse implications of the mixed band plan and despite having exhaustively considered and rejected this proposal in its last consultations, the authority has once again opened up this issue.” — PTI
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EADS to invest $2.57 b in India
London, August 23 The company is expected to announce details about its investment plans during the visit of its CEO Thomas Enders to India next week, EADS spokesperson Gregor V. Kursell told PTI in an email interview. Mr Enders will be part of a delegation accompanying German Economics Minister Michael Glos, who is scheduled to visit the country next week. Regarding the company’s plans to develop a new army helicopter in India, Mr Kursell said talks were under way between Hindustan Aeronautics Limited and its Eurocopter subsidiary about the joint development of a 10-tonne class helicopter. However, no agreement had been reached yet. The European aerospace and defence major already has one Airbus branch office and an EADS office in India. |
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India seeks guarantee on pipeline project
Islamabad, August 23 India is seeking to incorporate special clauses in the agreement that could guarantee that gas volume contracted to India would in no circumstances be disturbed at any stage if Pakistan required higher quantities than originally contracted for, local daily 'Dawn' quoted Pakistani officials as saying. The $7-billion TAP pipeline for which the Asian Development Bank (ADB) is conducting a feasible study envisages development of a complete energy corridor, which includes two parallel gas and crude oil pipelines, railway track, road and optic fibre system. However, India has expressed interest in the gas pipeline only, the officials said. Earlier, TAP's feasibility was under question due to disturbing situation in Afghanistan, but the project gathered momentum after the US extended its backing to it to discourage India and Pakistan from opting for the pipeline with Iran, due to its current confrontation with Tehran over the nuclear issue. The TAP's framework agreement is set to be revised after India accepted the invitation to join it even though it has not yet formally become part of it. The agreement would also define in clear terms the right of the participating states to inject or draw gas from the pipeline in case of additional gas quantities. Pakistani officials said they would pursue both bilateral and multilateral approach. |
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GoM puts temporary moratorium on new SEZ projects New Delhi, August 23 Putting a cap on the controversy of the number of SEZs that the country should have, the GoM presided over by Defence Minister Pranab Mukherjee decided that no fresh proposals for approval would be taken till at least 75 of these zones become operational in the next five to six months. The decision by the GoM was taken after a heightened controversy whether there should be a cap on the number of SEZs. “There was never any cap and there would never be any cap,’’ Commerce and Industry Minister Kamal Nath told reporters after the GoM meeting which was attended among others by Finance Minister P Chidambaram and Communication Minister Dayanidhi Maran. The decision will, however, virtually put on hold approvals for new SEZs proposed by a host of companies, including Korean steel major Posco’s project in Orissa, metal giant Vedanta’s aluminium project in Orissa and The Chhatterjee Group’s Haldia refinery in West Bengal. The GoM meeting was held to raise the cap of 150 special economic zones in the country, as another 200 proposals were still pending before the Board of Approval.The Finance Ministry, Left parties and a section of ruling parties have opposed indiscriminate approval of SEZs, since it would lead to revenue loss and farm land at much lower price. Even the National Manufacturing Council set up by Prime Minister has questioned the policy of SEZs and its contribution to the manufacturing sector. While Commerce Ministry wanted the cap to be raised to at least 300, the Finance Ministry was of the view that present cap of 150 should be retained as otherwise SEZ’s could become a “revenue rip-offs” with almost all new manufacturing units coming up only in these zones to take advantage of massive tax concessions they enjoy. Mr Nath, however, had written a letter to Prime Minister on the need to review the cap as the pending proposals could bring in an additional $5 billion investment. While over 150 SEZs have been given in-principle approval, only 28 zones are operational as of now. Earlier, Mr Kamal Nath had assured the Rajya Sabha that the existing legal provisions would not be allowed to become a tool for real estate developers and land mafia to seize the land of farmers.
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Azim Premji in Forbes list
New Delhi, August 23 Premji has been placed at the sixth position with a net worth of $13.3 billion, ahead of Google founders Sergey Brin and Larry Page, eBay founder Pierre Omidyar and founder of German business software major SAP Hasso Plattner. Microsoft founder Bill Gates tops the list of richest tech titans with a net worth of $50 billion. Other IT titans in the list include Microsoft co-founder Paul Allen at second position with net worth of $22 billion; Dell founder Michael Dell at third position with a net worth of $17.1 billion ;Oracle co-founder Larry Ellison at fourth rank with $16 billion and Microsoft CEO Steve Ballmer at fifth position with net worth of $13.6 billion. |
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Maruti tops JD Power survey
New Delhi, August 23 Maruti Suzuki outperforms all other manufacturers on all six factors contributing to the overall sales satisfaction index. These include, delivery process, delivery timing, salesperson, dealer facility, paperwork and overall deal, Mr Mohit Arora, Director, JD Power Asia-Pacific, said. Maruti is followed in the rankings by Skoda and Hyundai. |
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Tata Fund dividend
Mumbai, August 23 |
Dishman buys Swiss Co for over Rs 349 cr Baring Equity R Systems Last month the company had signed a definitive agreement to acquire US-based technical support company, WebConverse, for over $10.7 million (about Rs 49 crore). R Systems’ CEO Rekhi Singh had said the acquisition placed the company in a select group of service providers having onshore and offshore support capabilities.
— PTI TV18 buyouts |
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