The Tribune, Chandigarh, India

	Japanese PM calls for better bilateral trade Tribune News Service & PTI Mumbai, December 28 Japanese Prime Minister Yukio Hatoyama today pitched for intensifying bilateral trade with India, particularly in infrastructure and technology, during his meetings with the doyens of Indian business and industry. He told India Inc that Japanese companies were looking for increased participation in the areas of nuclear energy and infrastructure development projects. The India Inc delegation that met Japanese Prime Minister Hatoyama included Tata Group chairman Ratan Tata, Reliance Industries head Mukesh Ambani, Bajaj Group’s chief Rahul Bajaj, Godrej Group head Adi Godrej, among others. The meet was organised by the Confederation of Indian Industries (CII). Noting that Japanese investment in India was far lower than that in China, he said there was vast scope for infusing larger resources into sectors of potential growth, primarily infrastructure. Apart from boosting ties with industry, Japan is also interested in strengthening co-operation between the universities in both countries. In 2008-09, the Indo-Japan bilateral trade stood at around $12 billion and is expected to grow further by next year. The premier held separate meetings with Mukesh Ambani, Ratan Tata, and Gujarat Chief Minister Narendra Modi. The closed-door meeting between Hatoyama and Tata came in the backdrop of healthy market response to the recently- launched joint venture between Tata Teleservices and Japanese telecom giant NTT DOCOMO. The meeting with Mukesh Ambani was also crucial as he represents the Japan-India Business Leaders’ Forum here. Among other issues, the recovery of the global economy, impact of the downturn on the two countries and further tapping of business potential between India and Japan were understood to have been discussed. Japan provided around Yen 236.047 billion Official Development Assistance (ODA) to India in FY’08, up by 4.8 per cent compared to the previous year. The cumulative amount of Japanese ODA loan to India is estimated to be around Yen 3,182 billion.
	Japanese investors not keen on India, says study New Delhi, December 28 As Japan’s Prime Minister Yukio Hatoyama met top Indian industry leaders to boost bilateral economic ties, an ICRIER study found that India has received a lukewarm response from Japanese investors. “Ever since India decided to globalise, concentrated effort was made to attract Japanese participation through foreign direct investment. However, response from Japan has been rather subdued,” the well-known think tank said. The paper, which attempted to gain “some insight into this reluctance of Japanese investors”, found that the businessmen from Japan not only seek economic ties but also commitment and trustworthiness. They also tend to test waters by giving limited work of setting unachievable targets to their overseas partners. Though FDI from Japan has shown large increase from $85 million in 2006-07 to $950 million during April-October 2009-10, these inflows do not look impressive when compared to other countries like Singapore, the US and Germany. The notable Japanese firms which have set up their wholly-owned or joint ventures in India include Honda, Mitsubishi and Toyota. The Japanese Prime Minister met top industry leaders both here and in Mumbai. The study said India should take measures like setting up of a regulatory body to check spurious products from entering the market to attract more investment from Japan. “It is necessary to have a vigilant regulatory body to check cheap and spurious products from entering the market. This will give a fillip to Japanese investors ...,” it said. — PTI
	India, Japan ink 2 pacts New Delhi, December 28 Giving a push to the ambitious Rs 3.6-lakh crore Delhi-Mumbai Industrial Corridor (DMIC) project, New Delhi and Tokyo today signed two pacts, including collaboration in developing eco-cities around the project. “The DMIC is conceptualised as a global investment and manufacturing destination with emphasis on expanding manufacturing and services base,” Commerce and Industry Minister Anand Sharma said after signing the two pacts here today. The Minister also said the project would involve huge investment and initial projection points at a whopping Rs 3,60,000 crore. The DMIC Development Corporation entered into a pact with the Japan External Trade Organisation for collaborating with the environment-related projects and for transfer of Japanese expertise in developing and promoting ‘smart communities’ (eco-cities) around the DMIC project area. The Japan Bank of International Cooperation also signed a loan agreement totalling up to $75 million (Rs 330 crore) with India Infrastructure Finance Company to prepare plan for overall DMIC region and developing plans for investment in Phase-1. The DMIC Project Development Fund is envisaged to be set up with equal contribution from India and Japan. The Centre has already approved a grant of Rs 330 crore towards this. The signing of the pact coincides with the visit of Japanese Prime Minister Yukio Hatoyama to the country. Sharma said the visit of the Japanese premier shows both countries are committed to take forward the bilateral cooperation and further accelerate economic engagements. The Delhi-Mumbai Dedicated Railway Freight Corridor is also being part-funded by the Japanese government. — PTI
	3G auction may start by Feb end Tribune News Service New Delhi, December 28 As some of the private telecom operators prepare themselves for the much-awaited spectrum auction for the third generation (3G) mobile services, reports suggest that it is again likely to be delayed by more than a month. The stalemate between the Ministry of Defence (MoD) and Telecom Ministry over the release of spectrum has already cast its shadow over the auction and now the lack of preparations for the auction is likely to further delay it. Reports said the auction process might now start in the last week of February or the first week of March. The revised schedule is expected to be announced by mid-January. The revised schedule is being worked out as per the outcome of the last meeting of the Empowered Group of Ministers (eGoM) where the MoD agreed to vacate spectrum. The delay is apparently because the Department of Telecom (DoT) is yet to finalise details of Notice Inviting Applications (NIA). According to officials, it would take at least five weeks after that to start the auction process. The NIAs might be issued sometime in the middle of January next year. The government hopes to generate over Rs 25,000 crore from the sale of the spectrum. The government has fixed the reserve price of Rs 3,500 crore for pan-Indian spectrum. Despite crunch of spectrum, the government has decided to auction four slots, besides the one each already given to two telecom PSUs -- BSNL and MTNL. Earlier, the DoT had expressed concern over delay in vacation of spectrum by the MoD and had suggested, in its note for eGoM meeting, that only three slots should be auctioned. The government has decided that the spectrum would be allocated simultaneously in August 2010 to all winners in order to maintain a level-playing field. Incidentally, the DoT is to build an alternate optic fibre network for the defence forces at a cost of over Rs 9,500 crore, as a result of which there is hope that the MoD might release more spectrum.
	AUSPI writes to TRAI on tariff war Tribune News Service New Delhi, December 28 The tariff war launched by some new telecom operators in a bid to wean away subscribers from the pre-existing big players and sectoral regulator TRAI’s move to intervene in the matter has irked CDMA operators like Tata Tele-Services and Reliance Communications. CDMA operators’ association AUSPI has written to TRAI chairman J.S. Sarma following reports that it was looking to intervene in the price war. TRAI had moved to a forbearance regime in 2004, wherein operators did not require prior approval for tariff packages, but were left to market forces. Operators simply had to file their tariffs with the regulator within a week of implementing them. However, reports said, now TRAI had started work on examining tariff packages and that the regulator would soon invite companies to present their business case. The exercise would also cover existing tariff packages. In its letter, AUSPI said the allegations made by Bharti Airtel, one of the leading telecom operator’s in the country, about new operators adopting predatory pricing and their business model being checked were surprising as such allegations should actually be made by new entrants. It pointed out that a pricing mechanism is predatory when it is offered by an established operator to drive out smaller new entrants. What is currently being observed in the telecom market was exactly the opposite. The new entrants and smaller operators have come up with aggressive tariff propositions, which the incumbents have been reluctant to follow. Other operators have offered similar promotional tariffs, which signals the feasibility of sustaining such lower tariffs in the long run, it said. It said Telecom Minister A. Raja had laid out his vision of 10 paise per minute for local calls and 25 paise per minute for STD calls in the near future, and that they were already on the path to achieve it.
	Auto industry fumes over BEE rating proposal New Delhi, December 28 The auto industry is miffed over a move by the Power Ministry to start rating passenger cars on the basis of fuel economy by next month, stating manufacturers are already making public the mileage of vehicles. The nodal agency for implementing energy conservation programme, the Bureau of Energy Efficiency (BEE) is expected to rate cars on the basis of fuel efficiency charging about Rs 200 per unit from manufacturers. “A proposal is with the Power Ministry. It is likely to be approved soon and start by January. The energy efficiency rating of cars will be on a voluntary basis initially, and made mandatory later,” a Power Ministry source said. Consultations have been going on with the industry on the issue for the past three-four months, another source said. However, when contacted, a senior Society of Indian Automobile Manufacturers (SIAM) official, on conditions of anonymity, said no such consultations took place. “No documents or papers ever reached us. It is being done single-handedly by the BEE,” the official said. The SIAM has already implemented a voluntary programme from April this year, under which all of its members declare mileage of their vehicles certified by the Automotive Research Association of India. As per the new proposal, star ratings would be given to vehicles, where five stars would stand for the maximum output in terms of mileage. In the initial phase, only cars would be given star ratings, while other vehicles like motorcycles, scooters, trucks, buses and other commercial vehicles would be added to the programme later. The size of the industry is over 18 lakh units and if every unit is charged Rs 200, then it could fetch the BEE over Rs 35 crore. — PTI
	‘Indian cos use health cover to lure employees’ Mumbai, December 28 Undeterred by a hike in premium costs, over 40 per cent Indian companies use health care cover for employees as a tool to attract talent and a retention strategy, a survey said. “Rising premium costs have not reduced the importance of health care cover as an employment value differentiator and Indian companies continue to use it as a part of their hiring and retention strategy,” Watson Wyatt, a global consultancy firm said in its Health Care Benefits survey. Almost 41 per cent of the companies surveyed use health care cover as a talent attraction and retention tool, while 11 per cent use it to minimise losses arising out of employee health issues, the survey said. The survey covered 125 of India’s largest employers from across industries in private sector, reporting an average revenue of more than Rs 400 crore. According to the survey, most Indian companies providing health care cover to their employees are grappling with an average 10 per cent rise in premiums over the last three years. Corporates are constantly devising different strategies to control health care costs. The survey found that 74 per cent of the companies surveyed are stressing employee education for health care. Inspite of rising premium costs, economic turbulence and difficulty in maintaining an affordable health care cover, 58 per cent companies did not deduct any premium costs out of employee salaries, it said. “Importantly, over 46 per cent of those surveyed did not plan to share the costs with the employees even in the coming year,” the survey said. — PTI