London/Mumbai, January 3
Barely days before it launches the world's cheapest car, Tatas were today named the preferred bidder for Ford's British luxury brands —Jaguar and Land Rover — to begin the negotiation process.

TATAS IN DRIVER'S SEAT
Rattan Tata: Another chorus
Photo at right shows the Tata logo (top) shining on the boot of a car reflecting high-rise buildings of south Mumbai's business district and (bottom) the logo of the Jaguar auto company in Miami. The US automaker, Ford, named Tata Motors of India as the preferred buyer of Ford's luxury Jaguar and Land Rover models. "Ford is committed to focused negotiations at a more detailed level with Tata Motors concerning the potential sale of the combined Jaguar Land Rover business," Ford executive vice-president Lewis Booth said in a statement. — AFP

The Indian conglomerate, in the meantime, said that it was hopeful of reaching an agreement over the sale in the coming weeks.

"Ford is committed to focused negotiations at a more detailed level with Tata Motors concerning the potential sale of the combined Jaguar Land Rover business," said Ford Motor Company executive vice-president Lewis Booth, who is responsible for the company's Premier Automotive Group and Europe business.

Booth, however, added that no final decision on the sale has been taken yet, as there were issues to be addressed.

"There is still a considerable amount of work to do, and while no final decision has been made, we will proceed with further substantive discussions with Tata Motors over the coming weeks with a view to securing an agreement that is in the best interests of all parties concerned," Booth added.

Meanwhile, Tata Motors also said it was entering into a detailed discussion with Ford and was hopeful of inking a final deal soon.

"...we have had positive discussions so far with Ford concerning the possible purchase of Jaguar, Land Rover and we are now entering a period of more focused and detailed negotiations with Ford," a company spokesperson said in India.

While both the companies did not comment on the possible valuation of the sales, sources in the know of the development had said Tatas offered over $2 billion to acquire the two brands. — PTI

New Delhi, January 3
The Supreme Court today declined to entertain a petition questioning the jurisdiction of the Telecom Regulatory Authority of India (TRAI) to regulate broadcasting service, holding that the power to the regulator was granted under a law passed by Parliament and there was no scope for judicial intervention in it.

Extending TRAI’s jurisdiction to regulate electronic broadcasting services was challenged by Star India on the ground that TRAI was basically created to regulate the telecom services.

The Court dismissed Star India’s petition holding that there was “no conflict” between the TRAI Act enacted by Parliament for creating the regulatory body and the rules framed by the Centre under it to extend its jurisdiction to the broadcasting services.

The apex court further said since the Delhi High Court had examined the matter in details, there was no need for further examination by the apex court. The high court had also rejected Star India’s petition.

Senior advocate Fali Nariman, appearing for Star India, said: “The Telecom Act excluded broadcasting services from its ambit but the amended rules allowed them to be regulated by TRAI.”

Star India had approached the apex court after the Delhi High Court had rejected its petition and allowed TRAI to regulate the broadcasting services as per the provisions of the TRAI Act and the rules framed by the Centre there under, extending its’ ambit to cover all electronic broadcasting networks.

But the Court did not agree with Narmian said: “There does not seem to be any conflict between the original Act and the proviso introduced in it after amendment.”

Mumbai, January 3
Market regulator SEBI today proposed simplifying the corporate debt issuance process with a view to reducing costs and enhancing transparency in bond offerings.

In a consultative paper on the proposed Draft SEBI (issue and listing of debt securities) Regulations, 2008, the regulator said they provide for rationalised disclosure requirements and a reduction of onerous obligations attached to such issues.

It said the draft regulations were aimed at making a rationalised and stand-alone regulation for providing an enabling regulatory framework for the corporate debt market.

“Modifications have been aimed at reducing time and unnecessary burden of issuance of these securities and according flexibility to issuers to structure their instruments, without diluting areas of regulatory concern,” the draft paper said.

SEBI has invited public comments on the draft regulations. Market regulator said the disclosure requirements would be bifurcated into a more detailed and simplified one, depending on whether the equity securities of that company were already listed.

If a company whose shares are already listed, wants to issue debt instruments, minimal incremental disclosures would be sufficient, as large amount of the company related information is already in the public domain.

For companies whose equity is not listed, raising of debt capital would require detailed disclosures, but that would also be fewer than equity securities disclosures. SEBI said the proposed regulations would cut the regulatory burden on issuing companies without compromising on the rights of investors.

As part of the draft regulation, SEBI has proposed that issuers making public offers of debt securities would continue to file draft offer documents, which would be put on the websites of SEBI and exchanges.

Private placements, which will be listed, need not file an offer document, but will only be needed to comply with the disclosure norms and the listing conditions. — PTI

New Delhi, January 3
India has scrapped import duty on more than 4,800 items from four neighbouring countries and reduced customs tariff on these products from Pakistan and Sri Lanka as part of efforts to boost trade in South Asia.

"The import duty has been reduced from 16-40 per cent to zero level on items like meat, fish, milk, dairy products, and dry fruits from the neighbouring least developing countries (LDCs) — Bangladesh, Nepal, Bhutan and Maldives," a finance ministry official said.

However, the duty rates on these items have been reduced to 12-20 per cent on goods imported from Pakistan and Sri Lanka. The new rates come into effect from January 1.

All pharmaceutical products and drugs can now be imported at 10 per cent duty from LDCs, as against 12.5 per cent duty earlier. However, tariff on drugs has not been cut in case of Pakistan and Sri Lanka, a finance ministry notification said.

Customs duty on fertiliser, lime and cement items has been cut to 10 per cent in case of LDCs, but it would remain at 12.5 per cent for Pakistan and Sri Lanka. Dairy products, excluding milk powder, and butter oil can also been imported from Bangladesh, Nepal, Bhutan and Maldives at zero duty.

The decision to abolish duty on dairy products from these countries is unlikely to impact the domestic market or benefit these countries as they are not major players in milk market.

Pakistan and Sri Lanka, which could export dairy products to India, would have to pay 20 per cent duty on these products.

Referring to the impact of abolition of customs duty on edible oil, Central Organisation of Oil Industry & Trade executive director D N Pathak said: "The duty cut on edible oil will not impact as no crude palm oil is imported from SAARC countries." — PTI

New Delhi, January 3
As part of its endeavour towards financial inclusion, Punjab National Bank (PNB) today announced that it will open one million no-frills accounts by March 2008.

It has also set a target of covering 30,000 villages, 15 million households and 75 million people under the ambit of financial inclusion project of the bank by 2010.

Under the project, PNB has so far opened four lakh no frills accounts. These are operated under the ‘PNB Mitra Scheme’.

PNB chairman and managing director K. C Chakrabarty launched a pilot project on financial inclusion in Saharanpur district in Uttar Pradesh yesterday.

Chakrabarty supervised the opening of 1,200 smart cards to the uncovered customers of Saharanpur. Besides, financial assistance was given to 15 self-help groups (SHGs).

He pointed out that 60 per cent of the rural populace does not have access to bank accounts. He said his bank was out to prove that the poor are bankable as they have high recovery rate.

He said a biometric card would be issued to all such customers.

The other programmes, which PNB plans to launch in this regard, include 10 pilot projects in seven states in the Indo-Gangetic belt this month. It will also set up financial literacy centres.

Apart from this, the bank will introduce new products such as health insurance and micro-insurance in the next phase.

The bank has already completed financial inclusion in 13 districts of Punjab, Haryana and Himachal Pradesh. Work is also going on in 163 other districts identified for financial inclusion by the state governments. 

Mumbai, January 3
Country's largest lender State Bank of India has revised interest rates from tomorrow on domestic term deposits and reset the maturity period.

Deposit of 46 to 270 days earning an interest of 5.25 per cent has now been reset into deposit of 46 to 90 days earning interest of 5.25 per cent.

The deposits of 91 to 180 days will earn a high interest rate of 7 per cent and 181 days to less than one year will earn 7.5 per cent, a SBI release said.

Deposits of one year and up to 10 years duration have also been converted into buckets of one year to less than two years earning high interest of 8.75 per cent and two years to up to 10 years with interest rate of 8.5 per cent.

For senior citizens, the new deposit categories will be one year to less than two years with 9.25 per cent interest rate and two years and up to 10 years with 9 per cent interest.

Short term deposit of 15 to 45 days will continue to earn an interest of 4.75 per cent. — PTI

New York, January 3
Mark Hurd, CEO of world’s largest technology company Hewlett-Packard, was today named as the ‘Businessperson of the Year’ by a leading US magazine, beating 19 other corporate leaders, including three Indians - Lakshmi Mittal, Mukesh Ambani and Ratan Tata.

The 20 contenders for the title, short-listed by the BusinessWeek magazine, also included Apple Computer CEO Steve Jobs, media baron Rupert Murdoch and Google CEO Eric Schmidt.

Hurd does not chase public limelight, does not attend high-profile business meets, does not flaunt a personal flair or high-flying style. All his energy seems to be “trained completely on one and only one task: leading Hewlett-Packard,” the magazine said.

“The low-key executive, who has quietly cleaned up a mighty mess at the venerable Silicon Valley bellwether, beat out some big names on our list of top managers,” it added.

The winner was selected on the basis of responses from the readers as well as its editors, it said.

Apple’s Jobs, JPMorgan Chase’s Dimon and News Corp chairman Murdoch were readers’ top three choices, but were beaten by Hurd for the title for supercharging “sales, earnings and the company’s stock.”

About other short-listed names, it said Ambani was hailed as the world’s richest man for a brief period in October, after a sharp rally in Reliance Industries shares.

About steel tycoon Mittal, BusinessWeek said the India-born entrepreneur completed his $38 billion Arcelor takeover in 2007 to form the world’s largest steel company.

About another Indian among the contenders, the magazine said: “It was Ratan Tata’s year to grab global headlines...From picking up steel companies, hotels, coal mines, and tea brands, he is all set to revolutionise the concept of a small car. — PTI

New Delhi, January 3
Domestic steel giant SAIL and Tata Steel today formed a joint venture to mine coal and looked poised to extend the cooperation to mining iron ore — a move that could trigger a race among steel producers for consolidation of raw material resources.

"SAIL and Tata Steel have signed an agreement to form a joint venture company to identify and develop coal blocks in India. This is a significant step for both the companies which need coking coal for their current and future production needs," Tata Steel managing director B Muthuraman said here.

The agreement was signed between Steel Authority of India Limited (SAIL) chairman Sushil Kumar Roongta and Muthuraman in the presence of senior officials of both the behemoths.

"It (the cooperation) may extend to iron ore mining and steel making later. But as of now, we are beginning with coal," Muthuraman said, while denying there was cut-throat competition between the two in the domestic steel market.

"You can work for each other's advantage. Competition does not mean that you kill your competitor. Interestingly, even though we are in competition we discuss market scenario and other issues" he pointed out.

Making it clear that he was willing to extend cooperation with SAIL to other areas, the Tata Steel MD said: "Sometimes, I think these two companies should have started many other things because the cultural compatibility between both is high. I wonder why we did not do things together earlier," he said.— PTI

Hyderabad, January 3
The Reserve Bank today said volatile exchange rate was unlikely to disrupt business environment as the corporates and business entities in India take time to respond to changes.

"The pressure for change (among business entities) cannot be to such an extent that the volatile exchange rate movements seriously disrupt the business environment," RBI Governor Y V Reddy said, while addressing the annual conference of the Indian Econometric Society here.

Opening or closing a business in India takes considerable amount of time. Hence, the real sector responses to exchange rate movements are not likely to be as flexible as in the advanced economies, he said.

One, therefore, has to make a judgement on the extent of existence of such flexibility in the real sector, Reddy said, adding, no doubt, the policy makers have to encourage the real sector to change and become more and more flexible to cope with the exchange rate dynamics.

Meanwhile, rupee against dollar has appreciated over 15 per cent since October 2006, leading to slowdown in the export growth.

Reddy said, the emerging challenges to capital account management, both in the short and over the medium-term have been recognised by the policy makers at all levels.

"I believe that it will be prudent not to exclude the possibility of some change in course, due to any abrupt changes in sentiments or global liquidity conditions, despite strong underlying fundamentals of the Indian economy," he said. — PTI

New Delhi, January 3
Gold prices surged by Rs 260 to reach at Rs 11,020 per 10 gram in the bullion market today on increased buying by stockists and jewellery fabricators amid reports of high global trends.

Standard gold and ornaments shot up by Rs 260 each to Rs 11,020 and Rs 10,870 per 10 gram and sovereign reached new peak of Rs 9,050 per piece of 8 gram by rising Rs 150.

Buying activity picked up following reports of a firming trend in global bullion markets amid heavy seasonal demand by stockists and jewellers.

The yellow metal, which normally moves with the international trend, gained momentum as prices in overseas markets held new record as crude oil gains and the dollar declined against major currencies boosted demand for alternative investments.

Bullion in other Asian markets crossed a 28-year high level, after trading at $860.10 an ounce, a level last seen on January 21, 1980.

Silver too joined the rally and gained substantial ground on emergence of buying. Silver ready spurted by Rs 500 to Rs 19,700 per kg . — PTI

Mumbai, January 3
UTI Mutual Fund has toppled private sector ICICI Prudential to be the country’s second biggest fund house, while Anil Ambani Group’s Reliance MF has retained its top position.

According to latest data available with the Association of Mutual Funds in India, total asset under management (AUM) with 31 mutual funds, stood at Rs 5,18,123 crore at the end of December, 2007. A month ago, the total AUM of the mutual fund industry stood at Rs 5,37,812 crore. — PTI