The Tribune, Chandigarh, India

Forest clearance to POSCO put on hold

New Delhi, April 14
Rejecting the Orissa government’s assurance that there are no tribals in Posco project area, Environment Minister Jairam Ramesh today put on hold forest clearance to the Rs 52,000-crore steel-cum-captive power plant.

Ramesh cited the letter from members of POSCO Pratirodh Sangharsh Committee (PPSC) who claim to be other traditional forest dwellers in the area allocated for the project.

The letter talks about village council resolutions of Dhinkia and Gobindapur that have not been considered by the concerned state government authority.

Ramesh noted that the Orissa Government had categorically denied the authenticity of the documentation submitted by the PPSC.

“I do believe that these two resolutions have to be disposed of by the appropriate authority in accordance with the Forest Rights Act, 2006...,” he said, adding that he had already forwarded the PPSC representation to the Orissa Chief Minister and the Chief Secretary.

“After receiving information from the state government that the appropriate authority has completed the process of recognition and verification procedure for all the villages from where the forest land is to be transferred for non-forestry purposes, a final decision regarding forest clearance will be taken,” Ramesh said.

"Ignoring these two Palli Sabha (village council) resolutions and not allowing them to be subjected to a due process of law as enshrined in the Forest Rights Act, 2006 would be tantamount, in my considered opinion, to violating the very essence of this legislation passed unanimously and with acclaim by Parliament," the minister said. — PTI

Computer hardware prices up 10 per cent
Supplies from Japan yet to be restored
Ruchika M Khanna
Tribune News Service

Chandigarh, April 14
Consumers of computer hardware and electronic goods in India are now beginning to get the after shocks of the Tsunami in Japan. With industrial production in the quake hit country getting affected, the prices of a number of hardware items imported in the country have risen 8- 10 per cent.

Prices of mother boards and hard disk drives have risen 5-7 per cent, just over this week. The sharpest hike has been in the case of pen drives, prices of which have risen 17 per cent. Prices of CCTV cameras, too, have risen 8 per cent.

Pen drives were now costlier by at least Rs 50 a unit. “Before the crisis in Japan, we were buying these at Rs 280 per unit, but price of all new stocks being imported from Japan have gone up and we are now procuring these at Rs 330 per unit. The effect of the Japan Tsunami was not immediate as we had some inventory. But with the new stocks coming at higher price since this week, we have been forced to pass this hike on to the consumer,” said Sulalit Gupta, partner of Global Systems, a hardware importer based in Chandigarh.

Prices of CCTV cameras have risen by Rs 100-Rs 200 per unit. Motherboard prices have gone up by Rs 100 per unit. In case of hard disk drives, there has been an upwards price revision of Rs 125- Rs 150 per unit.

Industry sources said that Japan was one of the major producers of semi conductors, which are used in manufacture of televisions. Since the production of semi-conductors has been affected in Japan, following the massive earthquake on March 11, there has been a shortage of these semi conductors. This is sure to lead to a hike in prices of televisions.

Car manufacturers Maruti Suzuki and Honda Seil, which get a number of car components from their parent plants and their ancillaries in Japan, say that so far they have not seen any effect of the Tsunami on production. Official spokespersons for both Maruti Suzuli and Honda Seil said that their production has not seen any impact, and that they have sufficient stocks of parts for the next one month. “We will again take stock of the situation next month,” they said.

India, EU free trade pact talks to conclude by year end

New Delhi, April 14
The European Union has exuded confidence that negotiations for the proposed free trade agreement between the 27-nation block and India would be concluded by the end of this year.

The European Union’s Ambassador to India, Ms Dani Smadja, has said that the negotiations for the proposed Broad-based Trade and Investment Agreement (BTIA) are on track.

“What is clear is that there is a will on both sides to finish the negotiations this year. My impression is that they are on track,” Ms Smadja told EurActiv, an European website, in an interview.

Earlier this month, the Prime Minister’s Trade and Economic Relations Committee (TERC), which is in favour of inking BTIA, had also reviewed the ongoing talks.

Officials from both the sides are engaged in resolving differences on key issues like opening up of markets in auto and auto components, wines and spirits, and intellectual property rights and services. Smadja said that negotiators will meet this week.

Sources said both sides have agreed on four of the 12 key areas, which have been in negotiations since June 2007 for BTIA, aimed at freeing vast markets of about two billion people to mutual advantage.

While the EU wants India to eliminate or drastically reduce the tariff on completely built units (CBUs)and completely knocked down units (CKDs) in passenger cars, the Indian negotiators are resisting the demand to protect the domestic industry. Besides, the EU also wants India to open its services sector including foreign direct investment in retail, banking and other financial services.

The 27-nation bloc has also been pressing India to agree for an intellectual property rights regime over and above what the country has agreed multilaterally in the WTO.

On the areas which still need a lot of bargaining, she said: “The final deal has to be shaped with many different elements. It has to be a package in which you have all the elements that are important for both partners. Striking the right balance between what you want and can realistically get is a difficult exercise.” — PTI

Citibank, Deutsche Bank advised Etisalat to invest in Swan

New Delhi, April 14
UAE-based Etisalat, which picked up equity in controversial Swan Telecom (now Etisalat DB), has said that two leading global banks - Citibank and Deutsche Bank - had advised the firm on the investment decision.

"We were referred by reputed international investment banks to invest in Swan Telecom when we were exploring investment opportunity in India," Etisalat Senior Vice- President, Corporate Communications, Ahmed bin Ali told PTI.

"There were several options given to us. The banks that had been recommending us for this were Citibank and Deutsche Bank," Ali said.

Swan was considered after studying different options in India. "The whole thing was given to us as government approved and there was no suspicion or question raised," mention Ali during interaction. He, however, asserted that Etisalat remained committed to the Indian market and plans to raise stake in Etisalat DB.

Ali said Etisalat was not involved with Swan Telecom at the time of licence procurement and this fact should be taken into consideration by the Indian authorities.

"The day we entered into discussion shows that there is big gap between the date we started negotiating with Swan and the date of licence completion process. The authorities must reconsider this," Ali said.

Asked about his view on security concerns being raised about the company by the Indian government, he pointed out that being UAE-based, the organisation has expanded business in countries that share good relation with the country.

"This was one of the reasons that we invested in India. UAE government has 50 per cent stake in Etisalat and we are very concerned about country's and company's image," he said.

Talking about Etisalat's relationship with Chinese companies, he said that Etisalat is sourcing equipment from same Chinese companies that supply equipment to other Indian telecom companies as well. — PTI

Attrition rate in Indian BPOs at 55%

The industry is facing serious challenges like shortage of skilled and educated workers

Services offered by the IT/ITes and BPO in the domains of pharmaceuticals and financial services have registered an attrition rate of 60 per cent

India's BPO industry faces stiff competition from Mexico, Philippines, Malaysia, China, Canada and Ireland

Companies must provide adequate training and work experience to employees

New Delhi, April 14
Attrition rate in Indian Business Process Outsourcing centres (BPOs) has risen to 55 per cent over the last four months. Erratic working hours and perceived lack of long-term career growth in the sector are leading to the trend, an industry chamber study has said.

During December 2010-April 2011, the attrition rate in the business process outsourcing (BPOs) has increased to 55 per cent from about 40 per cent in the same period previous year, a study by ASSOCHAM has said.

“Although the BPO sector has been popular since the beginning as it has opened up plenty of job opportunities, the high attrition rate has plagued the sector now,” ASSOCHAM Secretary General D S Rawat.

The industry is facing serious challenges like shortage of skilled and educated workers, the study said.

Services offered by the IT/ITes and BPO in the domains of pharmaceuticals and financial services have registered an attrition rate of 60 per cent; in retail and IT sectors 50 per cent; and in automobiles, FMCG and infrastructure sectors 50 per cent during period under the review, the study said.

"The growing trend of job-switching in the industry might prove fatal for the survival and growth of India's BPO sector," Rawat said.

Currently, India's BPO industry faces stiff competition from Mexico, Philippines, Malaysia, China, Canada and Ireland.

To establish a substantial lead over competing countries acquiring a larger market share in the global BPO sector and to remain competitive, it is important that increasing wages in the sector must reflect in rising skill levels.

"Rapid job switches amongst professionals have certainly raised the wages, but there is hardly any development of expertise amongst the employees which is significant to justify their fat pay cheques globally," Rawat said.

The rapid increase in job switching has compelled people to question India's competitiveness in the BPO industry.

Thus, it is imperative that these companies must provide adequate training and work experience to employees, the study said. — PTI

Australian auto component makers eye Indian market

New Delhi, April 14
Australian auto component makers from the state of Victoria are looking to tap opportunities in the Indian market by supplying to vehicle manufacturers here, which are facing a demand supply gap.

A delegation led by Victoria State Commissioner Tim Dillon and comprising nine firms, is currently meeting top officials of various automobile firms across the country.

"This is the largest automotive trade mission to India from Victoria," Dillon told PTI.

Besides the auto sector, 65 companies across different business sectors from Victoria are present in India and the target is to take it to 300 companies, he added.

The business areas, where the firms are present in India, include food and beverages, aviation, automobile, engineering and building technologies, he added.

Elaborating on the current visit, Victorian Automotive Mission Head Barry Comben said: "We know that there are capacity constraints for the component suppliers in India. This can be, in fact, an opportunity for Australian firms and we are exploring if we can export parts to India."

The delegation has already met major auto makers, including Mahindra & Mahindra, TVS Motor Company, Mahindra REVA and Renault Nissan. It will be meeting other firms such as General Motors India, Tata Motors and the Anand Group.

"We are looking at various options with the original equipment manufacturers and suppliers, including technology transfer or forming a joint venture... We are very flexible," Comben said.

The firms can also come on their own as volumes increase here once they start supplying, he added.

Already two firms - MtM and Davies Craig- supply products to Mahindra & Mahindra. — PTI

Ford hikes Figo prices by 1%

New Delhi, April 14
Ford India today announced a hike of 1 per cent in the prices of its small car 'Figo' from this month. The hike hopes to minimise the impact of rising input costs. Speaking to reporters at the unveiling of the new version of Ford Fiesta, Ford India President and Managing Director Michael Boneham said, "There has been continuous cost pressure on our products as input cost are growing.

We did a small price increase of 1 per cent on Figo at the beginning of this month."

The company is assessing similar steps on other models as well, he added.

After the hike, Figo, which is available both in petrol and diesel versions, is priced between Rs 3.59 lakh and Rs 5.48 lakh (ex-showroom Delhi ). Boneham said that new Fiesta will be launched around July this year.

The new Fiesta will be produced locally at its Chennai facility. The plant has a production capacity of 2 lakh cars cars on three shift bases and 2.5 lakh engines every year. Ford India Executive Director (Marketing, Sales and Service) Nigel E Wark, looking to improve the performace of the company in India, said, "The industry is estimated to grow around 15 per cent this fiscal. We think we can do better than that." — TNS

Micromax to foray into Himachal
Ambika Sharma

Solan, April 14
Mobile handset major, Micromax, would soon come up with a solar cell manufacturing unit at Lodhi Marja in Nalagarh. The company's Rs 1,000-crore proposal has received preliminary clearance from the Industry Department.

Industries Commissioner JS Rana said, "The Rs 1,000-crore proposal has been cleared by the department's sub-committee and would now be put up before the Single Window Clearance meeting for final approval."

Deputy Director Single Window Clearance Agency Tilak Sharma said around 80,000 sq m land has been identified at Lodhi Marja in Nalagarh. Modalities would be worked out after the project is finally cleared.

This solar farm is slated to generate 400 MW through solar cells and generate employment for 800 people. These cells would find way into various global markets and could also find use in supplying power to the units in the area.

The project is considered crucial as chief Minister PK Dhumal had managed to convince Micromax management to invest in Himachal despite the management having been allotted land in Rajasthan and Andhra Pradesh.

Officials added the company's management was also exploring the possibility of setting up a handset unit later this year.

Officials added it was a positive development for investors in the state especially after the expiry of the central investment package in March 2010.

India-born Rakesh Kapoor is Reckitt Benckiser global CEO

New Delhi, April 14
Leading global consumer goods firm Reckitt Benckiser Group plc (RB) today announced appointment of India-born Rakesh Kapoor as the Chief Executive Officer designate of the company.

Kapoor will take over as RB's CEO with effect from September 1, 2011 from Bart Becht, who has held the post for 16 years.

"The Board of Reckitt Benckiser Group plc (RB) today announces the retirement of Bart Becht as CEO and is pleased to announce the appointment of Rakesh Kapoor as CEO designate," the company said.

Kapoor who joined RB in India in 1987 is currently the Executive Vice President global category development at RB and an Executive Committee member.

"Rakesh Kapoor becomes CEO effective September 1, 2011 with Bart Becht staying on as part time adviser to Rakesh and the Board until September 2012 to ensure a smooth transition," the statement said.

Commenting on Kapoor's appointment, RB Chairman Adrian Bellamy said: "The Board is delighted that someone of Rakesh Kapoor's calibre is able to step into the role of CEO.

"His close involvement in the drivers of success at RB and significant achievements to date are reassurance that the excellent performance for which RB has become renowned is set to continue".

"Having led the pan-European and largest health care business in RB, when also leading Northern Europe, he was one of the architects of the Boots Healthcare International acquisition in 2006 which transformed RB into a global consumer health care company," the statement said. — PTI

Fortis Healthcare to acquire 86% in Super Religare Labs

New Delhi, April 14
Fortis Healthcare today said its board has accorded in-principal approval to acquire 86 per cent stake in Super Religare Laboratories (SRL) for an undisclosed amount. Both Fortis and Religare are controlled by billionaire brothers Mr Malvinder Singh and Mr Shivinder Singh, but are different companies in the healthcare business.

The in-principal approval given by the company’s board during a meeting today is in line with company’s strategy of adding new verticals focused on medical specialties, Fortis Healthcare said in a statement.

“We see great benefit in augmenting Fortis presence in new specialty-based verticals. The addition of diagnostics and retail dialysis will serve to enhance the quality of care to our customers,” Fortis Healthcare (India) Managing Director Mr Shivinder Mohan Singh said.

The board at its meeting also approved setting up of standalone dialysis centres and foray into standalone and in-hospital diagnostic centres.

“The new structure is a meaningful step toward medical inclusion in India and will help us offer value-based medicine. This will better enable Fortis to deliver comprehensive and quality healthcare, with end to end service,” Mr Singh added.

Super Religare Laboratories, which is one of the largest diagnostics providers, acquired Piramal Diagnostic Services Pvt Ltd (PDSPL) in August 2010 for Rs 600 crore to strengthen its presence in the radiology services. — PTI

Samsung launches new range

New Delhi, April 14
Korean consumer durables major Samsung today introduced 60 new products across all categories. Targeting 40 per cent jump in sales to $4.9 billion in the country by year-end, the company is also expanding its portfolio.

The focus would be on pushing products with more advanced technologies, such as smart TVs, 3D televisions, Blu-ray players and its Galaxy Tabs.

Samsung West Asia Operations President and CEO Jung Soo Shin told reporters here today, "We expect 40% growth in sales this year in India, over the $3.5 billion sales we did last year."

As a start to its aggressive marketing strategy, the company has launched 35 new models of television, expanding its 3D range. It has also introduced an advanced version of Galaxy Tab, planning to introduce in June.

Besides it has brought a new range of cameras, refrigerator and washing machine among others totaling to 60 new products.

"Our focus will be on smart categories across all our product range. We want to leverage on the smart technology and drive our growth in future," Samsung India Deputy Managing Director Ravinder Zutshi said. Shin, who is also President and CEO of Samsung India, said, “The company will establish an optimum distribution network and additional emphasize on our flagship products and customer marketing activities.” — TNS

Reliance defies oil ministry order

New Delhi, April 14
Defing an oil ministry directive, Reliance Industries has refused to sell natural gas to power and fertiliser plants by cutting supplies to non priority sectors like steel and refineries saying the move has financial and legal implications.

With output from Reliance's eastern offshore KG-D6 fields dropping by over 20 per cent, a worried oil ministry had asked Reliance to first meet all the contracted demand of fertiliser units, plants extracting LPG from natural gas, power firms and city gas distributing companies selling CNG to automobiles.

Reliance is producing just enough gas to meet the allocation government had made to these priority sectors and implementing the ministry order would have meant stopping supplies to its other customers -- steel plants, petrochemical units and refineries. — PTI

Jaypee to foray into dairy business

New Delhi, April 14
After making a mark in almost all areas it has touched so far, diversified conglomerate Jaypee Group has now set its eyes on the dairy sector, where the growing demand-supply gap is only set to widen further.

The group, founded by Jaiprakash Gaur, initially plans to set up a one million litre per day milk processing plant near Mathura in Uttar Pradesh with an investment of Rs 100 crore. — PTI