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Telecom firms in legal tangle
Reliance Info shreds DoT’s allegations
New Delhi, February 8

Reliance Infocomm, which has challenged the government order imposing a penalty of Rs 150 crore for allegedly re-routing the incoming International Long Distance calls to its subscriber through BSNL or MTNL system as local calls, claims that it had not violated any of the provision of the licence agreement.

Trai chief hints at more cuts in telecom rates
Mumbai, February 8
Telecom Regulatory Authority of India Chairman Pradip Baijal today said the tariff rates for converged telecom facility would come down further as the country’s tele-density grew by 8.59 per cent to have a telecom customer base of 9.29 crore by December 2004.

Missive to Petronet may trigger takeover code
New Delhi, February 8
A government missive to Petronet LNG Ltd on the appointment of the company’s new managing director and CEO is likely to trigger Sebi’s takeover code, requiring promoters to make an open offer for acquiring 20 per cent equity shares.



EARLIER STORIES

 
Models launch Haier mobile handsets for Indian customers with seven state-of-the-art models, at a press conference, in New Delhi
Models launch Haier mobile handsets for Indian customers with seven state-of-the-art models, at a press conference, in New Delhi on Tuesday.
— Tribune photo by Rajeev Tyagi

Models pose with Samsung’s new range of mobile phone handsets
Models pose with Samsung’s new range of mobile phone handsets. Samsung showcased its latest range of mobile phones, including the first in the world, with a 1.5GB hard disk drive and the first 3.3 megapixel camera phone with optical zoom that supports TV output function at a press conference in New Delhi on Tuesday. — Tribune photo by Mukesh Aggarwal

Govt, chemists on collision path over drug Act
New Delhi, February 8
Over five lakh chemists and druggists across the country have threatened to launch a nationwide stir on February 25 over the government’s decision to strictly implement the Narcotic Drugs and Psychotropic Substances Act to check the sale of psychotropic drugs.

Organic tea to bring healthy cheer
Palampur, February 8
For the health-conscious tea lovers, a new variety of organic tea would soon hit the stores, only that its each cup would be nearly Rs 100 costlier. After intensive research on how to make tea chemical-free, scientists at the SCK Agricultural University have finally decided to start production of organic tea, which would be free from external chemicals.

Ensure clean fuel from April 1, govt tells oil firms
New Delhi, February 8
The government has ordered all public sector and private oil companies to ensure supply of clean fuel from April 1, 2005, the deadline fixed by the Supreme Court.

National Internet Exchange in April
Mumbai, February 8
The National Internet Exchange connecting all of India’s Internet service providers will be kicked off in April, Information Technology Minister Dayanidhi Maran said here today. Delivering the keynote address at Nasscom 2005, Mr Maran said four Internet exchange points across the country would become fully operational.

Convergys may converge on Chandigarh
New Delhi, February 8
America’s largest call centre firm Convergys Corp will double its BPO headcount in India to 20,000 by 2007 and expand its software development centre in Hyderabad to support the company’s global operations.

US envoy for boost in ties
New Delhi, February 8
The USA has ruled out the possibility of a comprehensive, bilateral free trade area agreement with India, US Ambassador to India David C Mulford said here.

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Telecom firms in legal tangle
Reliance Info shreds DoT’s allegations
Legal Correspondent

New Delhi, February 8
Reliance Infocomm, which has challenged the government order imposing a penalty of Rs 150 crore for allegedly re-routing the incoming International Long Distance (ILD) calls to its subscriber through BSNL or MTNL system as local calls, claims that it had not violated any of the provision of the licence agreement.

This has been stated by Reliance Info in an affidavit before the Telecom Disputes Settlement Tribunal (TDSAT), filed by company’s counsel Harish Salve, who contended that the allegation of violation of licence agreement with the Department of Telecom (DoT) were unfounded.

The company’s counsel further claimed that it had not “misrepresented” any fact to the DoT or the Telecom Regulatory Authority of India (Trai) on the issue.

DoT had imposed the penalty on Reliance Infocomm for allegedly causing loss of several crore rupees to the public sector companies, Bharat Sanchar Nigam Ltd (BSNL) and MTNL, on “conversion” of the ILD calls into local calls.

The TDSAT is hearing arguments from both sides to determine whether Reliance Infocomm had violated the rules on identification of ILDs with a malafide intention to avoid the payment of Access Deficit Charges (ADC) to the public sector telecom companies.

The BSNL and MTNL had alleged that thousands of Reliance Infocomm calls coming through their system were converted into local calls in violation of the licence agreement. While the ADC for ILD was Rs 4.55 per minute, the rate was merely 30 paise for local calls. Thus the public sector companies had suffered a net loss of Rs 4.25 on a call for every minute, they had contended.

Reliance in its affidavit said that the allegations of “deliberate tampering” with the Caller Line Indentification (CLI) system, or avoiding payment of statutory ADC charges were completely denied by the company.

“We have neither violated any licence conditions nor masqueraded the international calls as domestic calls,” the affidavit said.

Salve told the TDSAT that there was no question of tampering with the CLI system as Reliance Infocomm’s Home Country direct (HCD) service, which handled the ILDs coming to its subscribers through other telephony had recognition from the International Telecom Union.

The problem arose because more than 40 per cent of the ILD calls did not have proper CLI system and there was direction from the Government that the mobile service operators could put their own switch numbers on such calls to identify their origin, he said.

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Govt reply on Feb 10

Mumbai: The Department of Telecom will make submissions before the Telecom Dispute Settlement Appellate Tribunal (TDSAT) on February 10 regarding Reliance Infocomm’s alleged illegal re-routing of international calls, Union Minister for Communications and IT Dayanidhi Maran told reporters here today.

Speaking on the sidelines of Nasscom 2005, Maran said the “government had view different from Reliance Infocomm Ltd’s (RIC) claim that it has not violated the licence agreement in the alleged rerouting of international calls.”

Mr Maran said the government had approached TDSAT because it disputed RIC’s contentions on the matter. He, however, did not comment further on the matter since it was sub judice. — TNS

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Bharti seeks refund

New Delhi, February 8
Bharti Group has dragged the government to the TDSAT seeking refund of Rs 135 crore, the entry fee paid by the company for acquiring basic licences, upon migrating to Unified Access Service Licence regime.

Fearing a “snowballing” effect of this case, the Department of Telecom has shot off a letter to the Department of Legal Affairs seeking approval of empanelment of three senior advocates and also clarified that entry fee was non-refundable.

“Because of regulatory changes our basic telecom licences have become redundant and therefore we are seeking refund of the entry fee paid by the company,” Bharti officials said while confirming that they have moved the TDSAT against the government’s decision not to refund the money. — PTI

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Trai chief hints at more cuts in telecom rates

Mumbai, February 8
Telecom Regulatory Authority of India (Trai) Chairman Pradip Baijal today said the tariff rates for converged telecom facility would come down further as the country’s tele-density grew by 8.59 per cent to have a telecom customer base of 9.29 crore by December 2004.

Presiding over the conference on ‘Best Practices for a Regulatory Framework for converged telecommunications’ organised by the Indian Merchants Chamber (IMC) here today, Mr Baijal said: “Trai is in the process of reducing the access deficit charges (ADC) further and for this, the second round of consultation paper would be finalised for implementation in the next fortnight period.” He also hinted at a sharp reduction in lease-line tariff rates in order to make the industry more competitive and aggressive in providing telecom services across the country.

The objective is to eliminate the ADC in the next five to six years so that telecom service providers become cash efficient and provide subsidised services to the rural India, he said.

“India is a price sensitive nation. The tariff can come down further due to the aggressive role played by the industry,” he observed.

About 87 per cent of the additional phones during 2004 year are accounted for by mobile phones. The number of mobile phones (including WLL (M)) as on December 31, 2004 was over 4.8 crore.

The private sector continues to play a major role by accounting for seven per cent of the expansion during these nine months. This sector has so far provided 4.26 crore phones as on December 31, 2004, which is 46 per cent of the total phones in the country. — UNI

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Missive to Petronet may trigger takeover code
Tribune News Service

New Delhi, February 8
A government missive to Petronet LNG Ltd on the appointment of the company’s new managing director and CEO is likely to trigger Sebi’s takeover code, requiring promoters to make an open offer for acquiring 20 per cent equity shares.

Oil ministry has, reportedly, changed norms for the board appointment on Petronet and made an IAS officer of the Joint Secretary rank eligible to replace the present incumbent Suresh C. Mathur when he retires on March 31, 2005.

Petronet is a board-managed firm with one representative from public sector firms ONGC, IOC, BPCL and Gail, French consultant Gaz de France and Asian Development Bank on the board. Petroleum Secretary is the non-executive chairman while MD & CEO is a professional selected by the board committee.

Besides Mr Mathur, Petronet also hires professionals to head company’s finance and technical departments.

If a Joint Secretary joins the board, the control of the company will go in the hands of government and firms controlled by it. Such takeover will trigger Sebi’s takeover code and public sector firms and/or government will have to make an open offer for acquiring 20 per cent stake, industry sources said.

Section 12 of Sebi’s takeover code states “irrespective of whether or not there has been any acquisition of shares or voting rights in a company, no acquirer shall acquire control over the target company, unless such person makes a public announcement to acquire shares and acquires shares in accordance with the Regulation.”

Official sources said Petroleum Ministry on January 28 issued a directive reducing the retirement age of Petronet board from 65 to 60 years and changed job description of MD and CEO. “The government officers of the rank of Joint Secretary and above with adequate experience in relevant field will also be eligible for consideration (for the post) on deputation basis,” the order said.

Just a day earlier, A.K. Srivastava, Joint Secretary, Ministry of Petroleum and Natural Gas, suggested at the Petronet board meeting that “in line with the prescribed qualifications for CMD of PSU companies i.e. graduate from a recognised university, the same should be applicable to CEO & MD, Petronet, and should not be restricted to engineering graduate, CA, ICWA etc.”

However, “other board members pointed out that Petronet should remain professionally managed company, and therefore, the qualification as prescribed in the job description (engineering graduate or equivalent or MBA/CA/ICWA) would be essential,” minutes of the board meeting said.

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Govt, chemists on collision path over drug Act
Manoj Kumar
Tribune News Service

New Delhi, February 8
Over five lakh chemists and druggists across the country have threatened to launch a nationwide stir on February 25 over the government’s decision to strictly implement the Narcotic Drugs and Psychotropic Substances (NDPS) Act to check the sale of psychotropic drugs.

The chemists across the country have already stopped the sale of over 4000 psychotropic drugs, including fortwin, chericof, trika, alpax and librium, used in the treatment of psychiatric disorders and diseases like cancer. They are protesting against the directions of the Narcotics Control Bureau (NCB) that has asked them to “keep the record of patients for five years under the Act.”

Talking to The Tribune, Mr R.K. Arora, Vice-President, All-India Small-Scale Pharmaceutical Manufacturers Association, said, “We have been forced to stop the sale of these drugs, estimated to sell over Rs 4000 crore annually, since the NCB is harassing us under the Act.”

Over five lakh chemists across the country will hold a strike on February 25 to protest against the Act and would launch a nationwide agitation if the government failed to take corrective steps.

He said under the Act, over a dozen wholesale drug traders have been arrested and the others were being harassed for violating the Act. “We have asked the government to implement the Act only on manufacturers and wholesale dealers, while exempting the retailers. They are already selling these drugs on the prescription of doctors and cannot be asked to keep the record of customers for five years,” he said.

Mr Arora said the strict implementation of the Act would only lead to the harassment of the retailers and encourage extortion of traders by officials on flimsy complaints. It would also affect the manufacturing sector besides adversely affecting government revenue collections.

The industry experts claimed that over 40 leading companies, including Ranbaxy, Cipla, Cadila, Sun Pharma and Unichem, are manufacturing these drugs. The All-India Organisation of Chemists and Druggists has instructed its members to stop the sale of psychotropic drugs to avoid harassment.

They said under the NDPS Act, one could be imprisoned for up to 20 years and fined for selling psychotropic substances, including pharmaceutical psychotropic substances. The list includes commonly manufactured stimulants, depressants, cough syrups and painkillers.

These medicines are prescription drugs subject to strict control particularly, in developed countries as they are considered highly addictive.

Chemists, however, alleged that it was practically impossible to follow the procedures under the Act.

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Organic tea to bring healthy cheer
Vibhor Mohan
Tribune News Service

Palampur, February 8
For the health-conscious tea lovers, a new variety of organic tea would soon hit the stores, only that its each cup would be nearly Rs 100 costlier.

After intensive research on how to make tea chemical-free, scientists at the SCK Agricultural University have finally decided to start production of organic tea, which would be free from external chemicals. Plantation has begun on 10 acres in the first phase and the authorities are in the process of setting up a factory on the campus. An area of 110 acres has been set aside for tea plantation.

“The fertilisers and pesticides used on tea leaves across the country leave some residue in the final product, which can even cause cancer. But on organic tea, no chemicals would be used. Instead, we have identified a host of plants and tress that have similar effects on the tea plants,” says Dr K.L.Sharma, Head, Department of Tea.

Since departure from the use of fertilisers and insecticides brings down the total yield to nearly half, if the normal tea costs between Rs 150 and Rs 500 per kilogram, the organic tea would cost from Rs 15,000 to Rs 50,000 per kilogram.

“That is why initially the tea would be produced primarily for export and would be sold as part of ‘India Organic’ products identified by the WTO. Local markets would be targeted only after the yield and profits go up,” he says.

Moreover, he adds, as it takes nearly 20 years to make a tea farm free of residuals of chemicals used in the past, farmers find the procedure too demanding. Besides, it needs continuous sampling to substantiate the claims that the tea is actually organic. “Since the university had lots of abandoned tea farms, besides the expertise, we decided to take the initiative.”

“The entire marketing campaign of this kind of tea would be focused on the fact that it is free from chemicals. The taste and other characters of this tea would be the same as the normal type,” he said.

At present, only a couple of tea growers in Darjeeling have adopted organic tea but most of it is exported to Australia and New Zealand. “We would be taking the lead in this region by producing this tea for commercial purposes,” said Mr Pramod Verma, technical assistant.

“We have identified various weeds which can be used to make compost, which is rich in nitrogen and would replace the fertilisers. The leaves of Oei trees also make a good substitute and they would be planted along the tea gardens,” he says.

We have found that the quality of soil is also maintained and beneficial micro-organisms are not killed if fertilisers are not used.

“The equipment and machinery have been bought for the factory and we are expected to start production by the end by April. It is an ambitious project of the university because the whole concept of organic tea growing is very new,” he says.

Asked about the high price, he said that it might come down as the yield increases. “In any case, the health conscious, especially abroad, won’t mind shelling out more to avoid drinking chemicals with tea,” he says.

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Ensure clean fuel from April 1, govt tells oil firms
Tribune News Service

New Delhi, February 8
The government has ordered all public sector and private oil companies to ensure supply of clean fuel from April 1, 2005, the deadline fixed by the Supreme Court.

Official sources in the Petroleum Ministry said oil companies have been told that they must meet the deadline for supplying Euro II fuels in the entire country, except 11 cities, which will get supply of Euro III standards.

They said at last week’s Secretary-level review meeting, the industry had expressed its inability to meet the deadline for supplying clean fuel and wanted an extension.

However, Petroleum Secretary S. C. Tripathi has asked them to make alternative arrangements, including imports, if a few refineries are unable to produce clean fuel within the time frame.

The industry had informed the government that some refineries, including HPCL and IOC, would not be able to produce cleaner fuel. The industry wants that it should be given at least three more months to comply the apex court directive.

Delay in taking decision on the proposed investment relating to upgrading refining facilities was the main cause for producing clean fuel. The industry has to invest around Rs 30,000 crore for producing Euro III fuel.

However, refineries like MRPL and Haldia have already begun production of cleaner fuel.

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National Internet Exchange in April
Tribune News Service

Mumbai, February 8
The National Internet Exchange connecting all of India’s Internet service providers (ISPs) will be kicked off in April, Information Technology Minister Dayanidhi Maran said here today.

Delivering the keynote address at Nasscom 2005, Mr Maran said four Internet exchange points across the country would become fully operational. Most large and small ISPs would route their traffic through this exchange to ensure security of the domestic traffic, the minister said.

Mr Maran said the Indian government is taking a fresh look at the Indian Information Technology Act, 2000, in view of the rapid changes in the information, communications and technology sector, Minister for Information Technology Dayanidhi Maran said here today.

He added the government would aim to revisit the act and remove unnecessary constraints, which hamper the growth of the IT industry in the country. “We have to ensure that our policy framework mirrors the dynamism of the sector and its rapidly changing requirements,” Mr Maran said.

According to the minister, the Centre is committed to providing user friendly and cost-effective tools, applications and content in Indian languages in a bid to take IT to the masses. Mr Maran said the Technology Development for Indian Languages Programme aims to develop Indian language processing tools.

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Convergys may converge on Chandigarh

New Delhi, February 8
America’s largest call centre firm Convergys Corp will double its BPO headcount in India to 20,000 by 2007 and expand its software development centre in Hyderabad to support the company’s global operations.

Convergys began software development work at its 600-seater India facility at Hyderabad in April last year. “We are now working on the second phase of this centre, which will be completed by May this year and house another 600 professionals,” Convergys Executive Vice-President (Global Operations) Larry S. Schwartz told newspersons here.

Convergys, which employs around 10,000 people in seven call centres in Mumbai, Delhi, Pune and Bangalore, is planning to double the headcount in India. “We are looking at 20,000 people in a year or two,” Mr Schwartz said.

Convergys Vice-President and Country Manager Jaswinder S. Ghumman said: “We want to set up a BPO centre in Hyderabad, where Convergys already has a development facility. Besides, we are looking at entering Chandigarh, Chennai and Kolkata.” — UNI

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US envoy for boost in ties
Tribune News Service

New Delhi, February 8
The USA has ruled out the possibility of a comprehensive, bilateral free trade area (FTA) agreement with India, US Ambassador to India David C Mulford said here.

Speaking to newspersons at a function organised by the Forum for Financial Writers, he said that India and the USA could further strengthen their ties without “hyphenating” them to Indo-Pak relations.

“We look at India as a leader of the developing countries and it can help us find some conclusion to help resolve the stalemate over trade liberalisation under the WTO regime”, he said.

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BRIEFLY


Bollywood actors Chunki Pandey and Kareena Kapoor
Bollywood actors Chunki Pandey and Kareena Kapoor at a wedding mall in Kolkata on Tuesday. — PTI

JCT division
New Delhi, February 8
JCT has approved the demerger of the company’s steel division and said it will seek approval of its members. The JCT board is to seek approval of the members of the company under Section 293(1)(a) through postal ballot pursuant to the provisions of Section 192A of the Companies Act, 1956. — UNI

Corp Bank
Chandigarh, February 8
Corporation Bank, with a customer-centric focus has launched distinctly positioned current accounts with a wide range of add-on facilities targeted at various business segments. The Chairman and Managing Director of the bank, Mr V.K Chopra, said the variants, based on the quarterly average balance, maintained by the current account holders, would cater to every business segment namely individuals, proprietorship, public sector undertakings (PSU’s) and multinational companies (MNCs). — TNS

e-banking
Kulu, February 8
Punjab National Bank, Dhalpur, started e-banking yesterday and became pioneer in this district to be having centralised banking solution (CBS) system` Mr S.S. Kapoor, Senior Manager, said the branch would have connectivity with 160 centres and the customers would get banking facilities in 927 branches in the country. — OC

Max Life
Chandigarh, February 8
Max New York Life, a life insurance company, has turned profitable on the US GAAP accounting basis in only its fourth year of operations. The company has recorded a Rs 21 crore profit in GAAP terms, says a company press note. The total premium of the company in 2004 touched Rs 348 crore, more than doubling the total premium income it garnered in 2003. Renewal income registered a 132 per cent growth over the preceding year. — TNS

Servion Global
New Delhi, February 8
Servion Global Solutions Limited today announced that it has bagged a large order from HDFC Bank for upgradation of its contact centre solutions. The contact optimisation solution will help analyse, define and optimise contact at each stage of customer interaction and help enhance customer experience, Mr K Balakrishnan, MD and CEO of Servion said. — TNS

Intelenet
Chandigarh, February 8
Intelenet Global Services Ltd, leading BPO service provider has crossed the 5,000-employee mark. It has added 2500 employees in the last 12 months, out which 25 per cent were freshers. In the next 12 months Intelenet plans to further recruit 3200 people Intelenet is a joint venture between HDFC Ltd. and Barclays Bank Plc. — TNS

Bhel
New Delhi, February 8
Public sector engineering major Bharat Heavy Electricals Limited (Bhel) has developed a new series of compensation scheme — flexible AC transmission system (FACTS) — for enhancing the power transfer capability and reducing transmission losses in 400-kv lines, said, a press statement of the company here today. — TNS

Fair One
Chandigarh February 8
Elder Pharma and Shannaz Husain have launched Fair One, a fairness cream,, marking Husain’s entry into the mass market. Fair One is a moisturizing fairness cream. — TNS

Speedy ‘cell’ chip
San Fransisco, February 8
International Business Machines and Japan’s Sony and Toshiba have released the details of a new chip that’s 10 times faster than Intel Corp.’s personal-computer processors, aiming to gain sales in the home entertainment market. The Cell chip will go into production later this year. It has a clock speed of 4 Gigahertz, or 4 billion cycles per second, the companies said at the International Solid State Circuits Conference in San Francisco. — Bloombarg

Oil projects
Dubai, February 8
Iran is earning some $ 150 million annually from its various oil projects in India each year and has participated in 10 tenders to execute oil-sector related construction work there, an official of the Iranian Offshore Engineering and Construction Company (IOEC) has said. He said that along with companies from France, South Korea, India and the USA, the IOEC recently participated in a tender to win a pipeline laying work valued at $ 400 million, the Tehran Times reported.
The project consists of 215 km of maritime pipeline in Mumbai and replacement of old pipelines. The project is being executed for Oil and Natural Gas Corporation. — UNI

‘Leather-free’ Merc
Berlin, February 8
Mercedes-Benz has agreed to offer “leather-free” versions of all its luxury cars to pacify an animal rights group that says thousands of cows are slaughtered each year for leather car seats and interiors. After complaints from the German chapter of People for the Ethical Treatment of Animals, DaimlerChrysler said its Mercedes subsidiary will offer fabric or synthetic leather as options. Daimler spokeswoman Ursula Mertzig-Stein said that far from wanting leather-free cars, “our customers ... are more likely to want even more leather at the premium end. But we’ll make cars without leather on demand.” PETA officials, who had threatened protests at the carmaker’s Stuttgart headquarters, said they were delighted. — Reuters
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