The Tribune, Chandigarh, India

	Idea, Spice face cancellation of licences in Karnataka, Andhra Telecom Ministry isssues showcause notices for delay in network roll-out New Delhi, May 13 The Telecom Ministry has issued showcause notices to Idea Cellular for the Karnataka circle and Spice for the Andhra Pradesh circle for cancellation of licences on account of a delay in network roll-out. “Yes, they have been issued (notices). Idea Cellular for Karnataka and Spice for Andhra Pradesh have been issued showcause notice for cancellation of licence on account of delayed roll-out obligations,” Telecom Secretary R Chandrasekhar said. In 2008, Idea bought Spice, but has not yet received approval from the Department of Telecommunications (DoT) to go ahead with the merger. “The notices have been sent recently. The companies have been given 60 days to respond,” he said. Idea and Spice Telecom had procured these licences in January, 2008, under the regime of former Telecom Minister A Raja, who has been arrested on charges of irregularities in distribution of 122 new licences along with 2G Spectrum. Earlier, the government collected approximately Rs 300 crore as liquidated damages from new operators, including Idea and Spice, over their failure to roll-out their networks as per the licence agreement. After collecting the penalties, notices are now being sent for cancellation of licences. Telecom regulator TRAI had also recommended the cancellation of licences of leading mobile operators Idea Cellular and Spice in five states for their failure to roll out services within the stipulated time. However, Aditya Birla group firm Idea had earlier said that it has not breached the licence agreement. When contacted to seek their comment on the receipt of the cancellation notice, Idea officials said they are yet to receive any showcause notice.— PTI
	Maharashtra scrutinises projects given to DB Realty Shiv Kumar Tribune News Service Mumbai, May 13 Maharashtra Chief Minister Prithviraj Chavan is scrutinising projects awarded to DB Realty, the firm named in the 2G scam, over the past few years. This week, Chavan stayed the contract awarded to the company to develop a mass-housing project in the fast-growing Pimpri Chinchwad area of Pune. The massive slum redevelopment project would have yielded the company more than 20 million sq ft of built-up area to be sold in the open market. The project came under a cloud after opposition Shiv Sena questioned the award of the project to DB Realty. Prominent developers who had originally bid for the project lost out when the Shahid Balwa-led company suddenly entered the fray, Shiv Sena leaders allege. With the Shiv Sena alleging that slum dwellers who were to be the actual beneficiaries of the project were being shunted out, the CM stepped in to halt the deal, sources said. A company spokesperson said a formal notification from the government on the project was still awaited.
	SMEs unable to access collateral-free loans Ruchika M Khanna Tribune News Service Chandigarh, May 13 Most banks in the region are not offering collateral-free loans to small and medium enterprises (SME). The issue was highlighted during the state level bankers committee meeting for Punjab and Haryana. After the meeting, it emerged that of the 5,075 fresh loans of up to Rs 10 lakh, extended to SMEs in Punjab between January - March 2011, collateral-free loans were just 1,794 cases. This shows that the collateral free loans were extended in just 35.34 per cent cases. During this period, the banks advanced loans to SMEs to the tune of Rs 181.23 crore, of which just Rs 64.15 crore was advanced without seeking collateral security. Similarly, in Haryana, of the 19,244 SMEs that were advanced loans of Rs 365.61 crore (upto Rs 10 lakh), only 7067 units have been extended collateral free loans to the tune of Rs 91.78 crore. The coverage of banks to extend collateral free loans in Haryana is just 37 per cent. The government and RBI have been reiterating time and again that all SMEs get loans up to Rs 10 lakh on a collateral free basis. However, most banks have failed to abide by the guidelines issued by RBI regarding extension of collateral free loans to the medium and small enterprises. The issue has also been discussed in the steering committee of state level bankers committee, and the state level inter- institutional committee and empowered committee of SMEs. The regional office of RBI itself got a sample survey conducted recently, which revealed that these guidelines regarding grant of collateral-free loans to SMEs was not being implemented. The RBI officials also said that most of the SMEs were themselves not aware of these guidelines. The bankers committee has now asked the controlling heads of all banks to reiterate the instructions of grant of collateral free loans upto Rs 10 lakh to the sector.
	Airlines quizzed on fare hikes during Air India strike New Delhi, May 13 Private airlines today sought more time to respond to the notices sent by the competition watchdog CCI, which had found evidence of cartelisation and jacking up of fares by them to take advantage of the 10-day strike by Air India pilots. The Competition Commission of India (CCI) had called the private airlines today asking them to clarify their stand and immediately stop opportunistic pricing of tickets. The private airlines met the CCI today and sought more time to give the response, sources said, adding they would reply to the queries raised by the competition watchdog on May 25. Earlier this week, the CCI had found evidence of cartelisation by private airlines by jacking up fares during the time of strike. The CCI has ordered an investigation into the matter and the Director General (Investigation) would submit report within 60 days. About 800 pilots, belonging to the erstwhile Indian Airlines, had gone on strike between April 27 and May 6 demanding, among other things, pay parity with their Air India counterparts. The 10-day strike saw disruptions in the services of the national carrier. According to the preliminary findings, the airlines have been found to have formed a cartel to decide ticket prices during the period when Air India pilots went on strike.— PTI
	Panel formed to review DEPB New Delhi, May 13 The government today said it has formed an expert committee to review deemed exports policy where there have been incidents of misuse of the scheme. Deemed exports refer to those transactions in which goods supplied to the users do not leave the country and payment for such supplies is received either in Indian currency or in foreign exchange. Last week, the government constituted a panel to improve drafting of the policy aimed at avoiding multiple interpretations, according to a Commerce Ministry statement issued here today. Besides, the group would examine whether the scheme properly reflects the government priorities. The committee has invited comments from stakeholders in this regard. It would also meet RBI Governor D Subbarao and Planning Commission Member B K Chaturvedi for discussions and is expected to submit its report to the Commerce Ministry by August. The panel, which is chaired by Director General of Foreign Trade (DGFT) Anup K Pujari, comprises members from Planning Commission, RBI and Department of Economic Affairs.— PTI
	Power hike in Punjab to affect N Railway Chandigarh, May 13 Power has turned costlier for Northern Railway as well, following the hike in power tariff by Punjab State Electricity Regulatory Commission (PSERC), despite the objection from railway authorities. PSERC in its new tariff order for the year 2011-12 has raised energy charges of railway traction from 541 paise per unit to 578 paise per unit, an increase of 6.84 per cent.The new charges are also highest among all the power consumer categories in Punjab. “New tariff rates (for Railway) are highest in the northern region... hike in tariff for railways will certainly increase our operational cost in Punjab as we do not have any choice,” a senior official of Northern Railway said. PSERC, this week, announced average hike in power tariff by 9.19 per cent on all kinds of energy consumers in the state.— PTI
	Monsoon arrival normal, on time New Delhi, May 13 Monsoon is likely to enter India through the Kerala coast on May 31, the weather office said on Friday, marking the start of the four-month rainy season that is forecast to be normal this year, possibly boosting the farm sector. "The date of onset of south-west monsoon over Kerala is likely to be on May 31, with a model error of plus, minus of four days," India Meteorological Department (IMD) said in a statement. The Monsoon starts over Kerala and covers the rest of India and neighbouring countries by mid-July. The rains, which irrigate 60 per cent of the country’s farms, are crucial for rural growth as about 600 million people are dependent on farming. The IMD also said the rains were likely to arrive over the Andamans coast around May 20. A normal monsoon means the country receives rainfall between 96-104 per cent of a 50-year average of 89 centimetres during the four-month rainy season. Last week, PV Joseph, a former director at the IMD said monsoon was on track to arrive near the normal date of June 1, give or take two days. Higher agricultural supplies triggered by normal rains could encourage the Indian government to allow overseas sale of wheat and lift export curbs on rice. Further, normal rainfall levels can reduce demand for diesel, used to pump water from wells for irrigation when rainfall is scant, and impact demand for gold as purchases get a boost when farming incomes rise amid high crop output. Rural areas account for about 70 percent of India’s annual gold consumption. Earlier this month, IMD Director General Ajit Tyagi told Reuters in an interview that monsoon rains were expected to withdraw on schedule, unlike last year when late end-season rains hit sugar output in the world's biggest consumer.
	Bajaj to foray into LCV segment Tribune News Service New Delhi, May 13 Bajaj Auto plans to enter into light commercial vehicle segment next year. Chairman Rahul Bajaj has said the company would launch its first light commercial vehicle in the Indian market next year. "We will launch such a vehicle by next year. This would be a Bajaj vehicle, which would be developed and marketed by the company," Bajaj told reporters on the sidelines of an event here. "It's evolutionary for a two-wheeler maker to go in for entry-level vehicle. We have expertise and experience to do so," he said. Bajaj also said that the development of the entry-level passenger car with French automobile major Renault was on track. "It would be an entry-level vehicle and would be on the same platform as the commercial vehicle," he said. He added that the car would be branded and marketed by Renault. It is expected to be launched next year. Bajaj said that the car will not enter into any price war with existing low-cost cars. "There won't be any pricing competition, as products do exist in this segment. But the quality and uniqueness of the car would be enough. It’s our expertise and Renault's technology," he added.
	Industry welcomes Bengal verdict Kolkata, May 13 Industry captains welcomed the political change in West Bengal which saw the end of 34 years of the Left Front rule and resounding victory for the Trinamool-Congress alliance in the state. R P Goenka, chairman emeritus of RPG Enterprises said, "it was another example of what Bengal thinks today, others will think tomorrow. By all means a great moment for democracy". "I heartily congratulate Mamata Banerjee in so courageously passing her 'agnipariksha' (baptism by fire)," he said. "This is not the time to ask her what she can do for us, but to tell her what we can do to help West Bengal regain lost glory", he said. Vice-chairman of RPG Enterprises Sanjiv Goenka said "what was been expected by many for some time has happened. — PTI