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Govt indecisiveness saves PF investors from market mayhem
PM concerned over stock market crash
Nepal invites India Inc to invest
India seeks mega investments in petrochemicals
Select Tech plant
EDS bags majority stake in MphasiS for $380 m
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Reliance pegs petro prices higher than oil PSUs
Battery-operated bikes, scooterettes soon
Ashok Leyland to raise $150 m
L&T forms $100 m jv with Malaysian co
MFs, FIIs to be allowed
in commodity futures
Mittal offer to Arcelor shareholders
Panel to screen ILD/NLD licences
Motorola's below $30 handset soon
RBI hikes reverse repo rates
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Govt indecisiveness saves PF investors from market mayhem
New Delhi, June 8 If not for the indecisiveness of the authorities, the EPF Organisation would have already diverted 5 per cent of its investments and lost a huge amount in the current bear market. For the purpose of analysis, if the EPFO had invested Rs 8,300 crore — 5 per cent of its total investment of Rs 1,66,106.48 crore — it would have lost over Rs 2,000 crore since May 11 when the downslide began. The government had first mooted the idea of tapping the stock market last year, attracted by the huge returns from equities and in the face of decline in traditional investment instruments. It had also appointed a global consultant to advice it on the move. Of EPFO's total investments, 32.2 per cent is parked in the Special Deposit Scheme that yields an interest of 8 per cent, which is much less compared to returns from equities. But given the bear market, the EPFO might have lost more than Rs 2,000 crore in less than one month — a period during which the market tumbled from a high of 12,671 points (May 11) to 9,200 levels today. The EPFO board is likely to meet this month to decide on rate of returns for 2006-07 and on investing in equities. EPFO's plan to tap the market was aimed at attracting more investors while offering them better returns than the current rate of 8.5 per cent. Sources, however, said that a decision on equity markets could be delayed given the recent downslide in the market that has caused a fall of nearly 25 per cent in the benchmark Sensex. Some market observers also consider the delay in reaching a decision as a boon in disguise for the salaried class, as they might have lost a big fortune if the EPFO had already gone ahead with the proposal. — PTI
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PM concerned over stock market crash
New Delhi, June 8 “The Prime Minister expressed concern over plummeting stock markets... The council was of the view that the bear hammering was the result of both global factors as well as domestic issues, including petroleum price hike,” Chairman of the Council C. Rangarajan told reporters. The stock market today recorded its steepest fall this month, with the BSE sensitive index shedding 461 points, taking the cumulative fall since Monday to 1,155 points. He, however, sounded optimistic saying, "My feeling is that the stock market is reaching bottom." With retail investors panicking, the mutual funds, which were earlier buying in the market, have also come under selling pressures, he said, adding that prior to fuel price rise global factors were exerting pressure on the stock markets. “Earlier, FIIs were selling and mutual funds were buying, but they have now come under selling pressures as retail investors panicked," Mr Rangarajan said.
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Nepal invites India Inc to invest
New Delhi, June 8 "Higher rates of economic growth depend largely on increased levels of investment. We invite you to explore investment and business opportunities in Nepal for mutual benefit," Nepal's Finance Minister Ram Sharan Mahat told captains of industry here today. At the interactive meeting organised by the CII, Mr Mahat sought increased levels of investment. The visiting minister observed that Nepal has an average tariff rate of less than 9 per cent and a trade-GDP ratio of more than 50 per cent, including services without any quantitative restrictions. "Nepal is still one of South Asia's most open and trade dependent economies." Mr Mahat, who is accompanying Nepalese Prime Minister Girja Prasad Koirala on a four-day visit, which began on Tuesday, also projected Nepal as a "low-cost base" for producing intermediate products for companies established in this country. India is finalising a substantial aid package for the economic recovery of Nepal, the contours of which were discussed between Mr Mahat and his Indian counterpart P Chidambaram earlier in the day. Mr Mahat also linked the ongoing peace talks between the Nepalese government and the Maoist rebels as a significant aspect in giving a push to economic development of his country. During his talks with Mr Koirala yesterday, Prime Minister Manmohan Singh had offered full support for Nepal's economic development encompassing large infrastructure projects on a long-term basis. India assured Nepal of all assistance within its means and announced that it would provide 25,000 tonnes of fertiliser at subsidised rates.
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India seeks mega investments in petrochemicals
Chandigarh, June 8 Dr Kumar is leading a high-powered delegation from India, including Mrs Satwant Reddy, Secretary Petrochemicals, Dr Ajay Dua, Secretary, Department of Industrial Promotion, Mr Javed Usmani, Joint Secretary, PMO, and Mr K.C. Misra, Joint Secretary, Department of Petrochemicals. Addressing the conference at the Greenbrier resort, the minister said India was committed to being an enabler and facilitator in setting up petroleum petrochemical investment regions (PCPIRs) spread over 100-250 km area through partnership initiatives. At the initiative of Prime Minister Manmohan Singh a task force had been set up under the chairmanship of the Principal Secretary to the PM to ensure that there were no bottlenecks in setting up these projects. Karnataka, West Bengal, Orissa, Gujarat and Andhra Pradesh had been identified as possible destinations for setting up PCPIRs. Dr Kumar said “anchor tenants” such as the ONGC were already in Mangalore. The Haldea complex in West Bengal could facilitate an early start up of PCPIR in West Bengal and could attract multibillion dollar investments for creating a world-class petrochemicals infrastructure in the country. Dr Kumar made a fervent plea to the captains of American industry to support the Indo-US civil nuclear deal.
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Select Tech plant
Shimla, June 8 With the second plant becoming operational, the company is targeting one lakh printers. Presenting the first printer to the Himachal Government, Mr Nagarjuna, General Manager, Operations & Exports, said the company had initial apprehension regarding the availability of technical manpower but it was able to tie up with technical institutions for campus recruitments.
— TNS |
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EDS bags majority stake in MphasiS for $380 m
Bangalore, June 8 More than the required 83 million shares of MphasiS have been tendered in response to EDS’ conditional open offer of Rs 204.5 per share (approximately $4.50), which closed on June 5, top EDS and MphasiS officials said here today. Total consideration for the transaction that gives EDS a majority stake in MphasiS is approximately $380 million in cash. The transaction is expected to be completed by month-end. With the addition of MphasiS and current expansion plans, EDS’ total India workforce is projected to exceed 20,000 employees by calendar year-end, making this country the $19.8 billion firm’s second largest employee location after the USA, said Mr Stephen R Heidt, EDS Vice-President of Business Workforce and Capacity Management. Mr Mike Jordan, EDS Chairman and CEO, was quoted as saying: “The acquisition will not only bolster our current offshore delivery capabilities in priority growth areas, but also allow EDS to deliver a stronger value proposition to better align with client’ changing needs.” The purchase, one of the largest in the Indian IT services sector, gives EDS access to 11,000 India-based employees skilled in advanced applications development, emerging technologies, BPO/CRM services, and an applications development and business process services-focused sales channel. MphasiS will continue to operate with its current management team and company name following completion of the transaction. Mr Jerry Rao will continue in his current capacity as CEO of MphasiS. EDS will appoint a majority of the MphasiS Board of Directors and is evaluating the consolidation of its existing Indian operations with the MphasiS operations, officials said. EDS had more than 3,000 employees in India. “The acquisition also gives us access to a world-class management team, a global talent pool and marquee clients,” Mr Jordan said in the statement. — PTI
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Reliance pegs petro prices higher than oil PSUs
New Delhi, June 8 Coming on top of an up to Rs 2.92 a litre increase effected by Reliance last month, the latest increase would make diesel and petrol from its retail outlets costlier by more than Rs 2 a litre compared to the rates of PSU retailers. Sources said this had led to a decline in the sale of auto fuel at RIL outlets, which in effect should help it curtail losses. Reliance had on May 11 raised the petrol price by Rs 2.72 to Rs 2.92 a litre and followed it up with a similar quantum of hike in the diesel price on May 22. Sources said Reliance had maintained the differential of Rs 2.72-2.92 in its retail selling price as it was suffering losses on selling fuel below the cost of production. Though the higher price has cost the company market share, Reliance says unlike public sector oil retailers it is not entitled to government bonds and discounted crude oil to cover under-recoveries. Before the hike, Reliance had captured a 12.5 per cent market share in diesel and a 5.5 per cent share in petrol sales. This market share, particularly in diesel, has slipped by 20 per cent since the time it decided to sell fuel at a price higher than its public sector competitors, sources said. Reliance has about 1,400 petrol pumps, mostly on highways, which it plans to raise up to 2,500 by the fiscal end. Shell, the other private sector retailer, raised the prices of the two auto fuel sold through its five outlets in the same proportion as public sector retailers.— PTI
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Battery-operated bikes, scooterettes soon
Chandigarh, June 8
The company has finalised 12 distributors each across Punjab and Haryana, and these scooterettes and bikes will be sold in the two states from the last week of June. It has also roped in about 50 distributors in MP, Rajasthan, Maharashtra and Chhattisgarh, and the battery operated two- wheelers would be sold in these states from September onwards. Talking to The Tribune, Mr Avinash Bhandari, Director, Electrotherm India, said they had initially launched their bikes and two-wheelers in Gujarat two months ago. "The YoBykes are priced between Rs 14,000 and Rs 23,000 and the operating cost is 10- 15 paise per km. The battery requires charging for four hours, and can run about 50 km. Though the battery-operated scooters are aimed at youngsters, we will soon launch a battery- operated three-wheeler," he said. Mr Ashwani Gupta, Director, Shivalik Vehicles, and the company's distributor in Chandigarh, said initially they were looking at sale of 1,000 units per month, in both Punjab and Haryana.
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Ashok Leyland to raise $150 m
Mumbai, June 8 |
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L&T forms $100 m jv with Malaysian co
Mumbai, June 8 L&T would own 60 per cent in the joint venture, being formed to build, own and operate a derrick cum pipe laying barge, with the remaining stake to be owned by SapuraCrest, the company said. The 270 -person vessel would allow both companies to meet the global demand for oil and gas engineering, procurement, installation and construction and services, it said. The vessel would provide offshore installation services, including sub-sea pipe-laying, platform installations across India, West Asia, South- East Asia, Australia and the Sakhalin region. The company Chairman and Managing Director A M Naik said through this jv, both companies would be able to apply for tenders in installation and EPC contracts, thus, offering a competitive advantage in India and Malaysia.
— PTI |
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MFs, FIIs to be allowed
in commodity futures
New Delhi, June 8 The Chairman was speaking on the 2nd Annual Conference on ‘Commodities Opportunities in Booming Commodities Market’ organised by Assocham. “The government has agreed to permit FIIs, banks and mutual funds to trade in crude and bullion market following strong recommendation from FMC. We have already received feedback from the government regarding this and a formal decision is expected soon,’’ he said. He said no one is against speculation, but warned that manipulators won’t be spared. The FMC as a regulator has been putting in all possible efforts to ensure that the commodities futures market grows in a rational manner with larger participation of farmers across the country without having any room for manipulation, he added. He said the criticism that the FMC had not been able to regulate the commodities exchanges spread in different parts of the country in an effective manner was false and said the regulator had complete control over the commodities exchanges. He also added that FMC could not be blamed for farmers committing suicide. The FMC chief said the trade in the futures commodities market for the year has exceeded Rs 21 lakh crore in 2005-06 and 2006-07 was the year of consolidation and opined that transaction charges of commodities should not vary from one exchange to another and should be uniform.
— UNI |
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Mittal offer to Arcelor shareholders
London, June 8 Under the deal, Mittal Steel is offering 1 Mittal Steel class A common share plus cash for each Arcelor share or Arcelor ADS (American Depositary Shares) tendered. Mittal Steel commenced on May 18, 2006, in Belgium, France and Luxembourg, and on May 24, 2006, in Spain, an offer to exchange Arcelor shares and convertible bonds held by holders who are located in Belgium, France, Luxembourg and Spain and holders who are located outside of Belgium, France, Luxembourg, Spain, Japan, The Netherlands and the United States to the extent that such holders may participate in such offer pursuant to applicable local laws and regulations. Yesterday Arcelor said it would meet with its rival soon to discuss the details of Mittal's $33 billion bid for the company. Also Arcelor maintained that it would look into the deal on receiving all the details while it gave no indications that it would consider changing the course in its oppositon to the bid. — PTI
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Panel to screen ILD/NLD licences
New Delhi, June 8 The committee will provide ample opportunity to the applicants to explain their cases. The committee will consist Joint Secretary (Telecom), Deputy Director-General (basic services) and Deputy Director-General (value added services). In November last year, the department of telecommunications simplified the procedures for NLD and ILD Licences to facilitate the growth of the IT and IT enabled services in the country.
— UNI |
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Motorola's below $30 handset soon
Chennai, June 8 The communications equipment major has bought 70 acres of land and the facility will be set up at an initial investment of $30 million. This will be scaled up to a total of $100 million over phases, Mr Firdose Vandrevala, Chairman, Motorola India, said here today. The manufacturing facility will come up on the 300 acre Sriperumbudur Hi-Tech Special Economic Zone (SEZ). Motorola, Foxconn and other vendors will be a
part of this SEZ. Union Communication and IT Minister Dayanidhi Maran said Motorola would roll out sub-$30 phones from this facility, the first phase of which is expected to be operational by January next year. Meanwhile, Mr Maran announced in Delhi today that the government has given in-principle approval to set up an ombusdman for the telecom sector to settle consumer grievances and disputes.
— PTI |
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RBI hikes reverse repo rates
Mumbai, June 8 Simultaneously, the repo rate under the liquidity adjustment facility, which continues to be linked to the reverse repo rate, has also been increased by 25 basis points to 6.75 per cent from 6.50 per cent with immediate effect. "On a review of current macro-economic and overall monetary conditions, the RBI has decided to increase the reverse repo rate under the liquidity adjustment facility to 5.75 per cent from the present 5.50 per cent," the RBI statement said.— PTI |
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