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Telecom M&As to get push after policy announcement
ArcelorMittal’s core profit up at $1.71 bn
Govt sanctions Rs 17,772 cr cash subsidy for oil cos
Next govt’s agenda to determine rating action, says S&P
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India home to 103 billionaires; sixth largest in the world
Cabinet clears PowerGrid FPO
EPFO settles 28% more claims in Oct
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Telecom M&As to get push after policy announcement
New Delhi, November 7 The Telecom Commission had yesterday allowed mergers and acquisitions among the telecom operators with a rider that the combined market share would not cross 50%. The earlier market share cap was 35%. The M&A policy - approved by the Telecom Commission - is not final as it has to be approved by the Cabinet. Experts pointed out that the new policy would not only allow some of the foreign operators to enter the Indian market but would also allow some of them to make an exit. Although hypothetical, the new guidelines would allow merger between Airtel (with 22.21% market share) and Vodafone (17.87%), the two largest telecom companies in India. Market watchers pointed out that if AT&T decides on the proposed Vodafone deal, the American telecom giant may not be willing to stay in India. On the other hand, it would give an opportunity for Bharti Airtel and Vodafone to join hands. Anil Ambani-promoted Reliance Communications (13.35% share) also wants to become active in the M&A space and all that could happen once the new policy is notified. Meanwhile, reports also suggested that the government would be able to raise 20% revenue from the auction of 1,800 Mhz and 900 Mhz bands of spectrum based on the latest Telecom Commission’s recommendations which seek to increase the base price in the two bands for auction. Based on the assumption that the base price will also be the valuation price and all the spectrum on offer is up for sale, the government can make around Rs 29,500 crore, much more than the Rs 11,000 crore, which the government was expecting at earlier prices. The most valuable spectrum will be 900 MHz in the lucrative cities of Delhi, Mumbai and Kolkata, which alone is expected to fetch Rs 11,873 crore based on the new base price. As much as 15 Mhz of the 900 Mhz band spectrum in Delhi and Mumbai and 12.5 Mhz in Kolkata will be up for grabs. New M&A norms
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ArcelorMittal’s core profit up at $1.71 bn
Luxembourg/Delhi, Nov7 The company also said "bottom of the cycle is behind us" and it is "cautiously optimistic" for 2014. In the corresponding quarter of 2012, the world's largest steelmaker had posted an EBITDA (earnings before interest, tax, depreciation and amortisation) of $1.445 billion. Marketmen were expecting an EBITDA or core profits of $1.549 billion for the July-September quarter. The company also managed to narrow down its net loss by over 3 times to $193 million from $652 million of the third quarter of 2012. However, this was the fifth consecutive quarterly loss posted by the company. — PTI |
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Govt sanctions Rs 17,772 cr cash subsidy for oil cos
New Delhi, November 7 The Finance Ministry had yesterday sent a letter approving Rs 8,772 crore subsidy for Indian Oil Corp (IOC), Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL). Today, it sanctioned an additional Rs 9,000 crore, official sources said. The three retailers had lost Rs 35,328 crore in revenues on selling diesel, cooking gas (LPG) and kerosene at government controlled rates in July-September quarter. Less than half of this, Rs 16,729.74 crore, is being made up by upstream oil and gas producers like ONGC and GAIL and now Rs 17,772 crore is coming by way of cash subsidy. Sources said the Finance Ministry had provided Rs 8,000 crore subsidy to cover for 31% of the Rs 25,579 crore lost on diesel and cooking fuel sales in April-June. After accounting for upstream contributions of Rs 15,303.84 crore in Q1 and Rs 16,729.74 crore for Q2 and subsidy of Rs 25,772 crore, fuel retailers are left with Rs 3,101.42 crore of unmet losses. — PTI |
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Next govt’s agenda to determine rating action, says S&P
New Delhi, November 7 While affirming its current rating of India just above the speculative grade, S&P has warned that it could downgrade India to speculative grade in case the next government “does not appear capable of reversing India’s low economic growth”. "Barring an unexpected deterioration of the fiscal or external accounts before the elections, we expect to review the rating on India after the next General Elections when the new government has announced its policy agenda," S&P said in a statement, retaining 'BBB-', the lowest investment grade rating with negative outlook. This in some measure would imply that the threat of a downgrade has been put off till the General Elections barring an unforeseen or dramatic fall in the economic indicators. Like other analysts and agencies, S&P too is now looking at the major political event of the next General Elections which will decide the economic trajectory. S&P said the rating may be raised if the new government’s agenda can restore some of India's lost growth potential, consolidate its fiscal accounts, and permit the conduct of an effective monetary policy. “If, however, we see continued policy drift, we may lower the rating within a year”, it said. The vibrancy of India's democracy will again come to the fore in General Elections, which are due no later than May 2014, it noted. Outlining the challenges for the new government, S&P said it will face difficult tasks to place its fiscal accounts on a firmer footing: phasing out of diesel subsidies, financing the expansion of food subsidies, addressing other subsidies such as those for fertiliser, and introducing the nationwide rollout of a common goods and services tax. Summing up India’s strengths, S&P said these include a robust participatory democracy of more than 1 billion people and a free press, low external debt and ample foreign exchange reserves and an increasingly credible monetary policy with a largely freely floating exchange rate. It added that these strengths are counter-balanced by significant weaknesses, which include an onerous burden from its public finance, lack of progress on structural reforms, and shortfalls in basic services. Downgrade warning
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India home to 103 billionaires; sixth largest in the world
London, November 7 Moreover, the country's financial capital Mumbai with 30 billionaires, is among the top 5 'billionaire cities' globally, which was topped by New York that is home to 96 billionaires. Hong Kong, Moscow and London make the top five with 75, 74 and 67 billionaires, respectively. Notwithstanding the number of billionaires in India having decreased between July 2012 and June 2013, India still enjoys a decent 6th position in the top 10 league with 103 billionaires. This list was topped by the United States with 515 ultra-rich people, three times more than in China, which ranks second with 157 billionaires. Germany, United Kingdom and Russia make the top five countries with a billionaire population of 148, 135 and 108, respectively. According to the wealth-X and UBS billionaire census report 2013, India's billionaire population has decreased by 5.5% to 103 and the total billionaire wealth has fallen by $10 billion to $180 billion. However, the world's population of billionaires continues to grow. Between July 2012 and June 2013, the number of billionaires has increased by 0.5%, with their total wealth rising by 5.3%. Globally, there are 2,170 billionaires as of 2013, with a combined net worth of $6.5 trillion, more than the GDP of every country except the United States and China. The report further noted that industrial conglomerates and pharmaceuticals are the first and second most significant industries for Indian billionaires. — PTI |
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Cabinet clears PowerGrid FPO
New Delhi, November 7 The Cabinet Committee on Economic Affairs (CCEA) cleared the FPO of PowerGrid for 17% of its equity. The FPO will comprise 13% fresh equity by the public sector company and 4% stake sale by the Central government. The government will sell 18.51 crore shares in the public sector company. The company will issue fresh 60.18 crore shares through the offer. Out of the fresh issue of shares, about 2.4% would be reserved for the staff. |
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EPFO settles 28% more claims in Oct
New Delhi, November 7 "The Employees’ Provident Fund Organisation (EPFO) settled 10,21,922 claims during the month of October, 2013. This is 28% higher than the claims settled in September, 2013," an official statement said here. It said 72% of these claims (settled in October) were settled within 10 days while remaining 28% were settled within 30 days. — PTI |
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Uninor CEO Yogesh Malik resigns Carnation Auto to open 200 outlets Genpact Q3 net up two-fold Audi sales grow 17.8% in Oct |
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