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P-note norms may be tightened
Markets end in red
Debt Relief
Deal with RCom not discussed at MTN AGM
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Air fares set to go up
JLR launches major recruitment drive
Global Alliances
International Flights
Avalon Academy aviation centre in Dehra Dun
Plan for ‘battery’ transport
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P-note norms may be tightened
New Delhi, June 19 The finance ministry at present is concerned about the FII outflows from the country on account of this restriction and wants to relax the norms. Nearly $2.8 billion has flowed out of Indian markets in 2008 to date, as against capital inflows of $17.2 billion last year. The finance ministry has shown concern on the negative flows. After the clamp down in October 2007, a number of FIIs have written to the finance ministry stating that since the capital flows have been moderated there is a clear case for easing the restrictions on issuing. Analysts argue that the funds are needed to bridge the widening deficit gap in the economy, which is growing on account of low tax incomes of the government in the present year, and increasing subsidy burden in sectors like fertiliser and petroleum. However, concerns of the government lie elsewhere. National security advisor has once again warned about terror funds being routed into India through various channels. The home ministry says there are clear links of outfits like SIMI and naxalites investing in companies. There is no reason to believe that this money is not finding the way into the stock market. Officials say the terror money is another reason of tightening the money laundering norms that were recently given a nod by the Cabinet. Last year in October 2007, when market regulator SEBI imposed restriction on P notes and banned FIIs and their sub accounts from issuing or renewing P notes, the intention was to urge these holders to enter the Indian stock market more overtly. What is being worked at present is the assessment by the market regulator SEBI about the impact of these regulations after discussions by market intermediaries and FIIs, say officials. The report from SEBI will decide what course of action the finance ministry takes in the matter and the government in turn. |
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Markets end in red
Mumbai, June 19 The 30-share barometer on the Bombay Stock Exchange closed the day at 15,087.99 points, a fall of 334.32 points, or 2.17 per cent, from its previous close. The broader 50-share S&P CNX Nifty of the National Stock Exchange also dropped 78.15 points, or 1.71 per cent, to close at 4,504.25. Ranbaxy Labs, which yesterday announced settlement of most of its patent litigation over cholesterol lowering drug Lipitor with US-based Pfizer, was battered on BSE with shares closing down by a significant 7.68 per cent. Rel Infra was the second biggest loser at 5.68 per cent. BHEL and L&T were the other prominent losers among elite club at 5.04 per cent and 4.84 per cent respectively. The country’s largest private sector lender ICICI Bank also took a hit of 4.08 per cent. In Asian markets, key indices China, Hong Kong, Japan, South Korea, Singapore and Taiwan were down by 1.88 per cent to 6.54 per cent. The Asian bourses took cues from the Dow Jones Industrial Average that hit its lowest level in three months as worries about a weak US economy, compounded by credit sector concerns. The negative factors dragged down shares in banks, autos and transport firms in Asian markets. Weakness in European markets in their early trade also added to selling pressure. Key indices in the UK, France and Germany were down in the range of by 0.03 per cent to 0.77 per cent. Brokers said investors were also worried about political uncertainty as reports of early general elections fuelled their concerns. The postponement of a key meeting between the government and its Left allies on the proposed nuclear deal between the US and India had pulled down the share prices yesterday. Bucking the trend, M&M firmed up by 1.74 per cent and Wipro by 0.75 per cent. Foreign Institutional Investors sold shares worth a net Rs 435 crore while domestic mutual funds bought shares worth a net of Rs 193.64 crore on June 18, as per provisional data. The capital goods index dropped by 451.64 points to 11,667.69 points, Bankex by 293.26 points to 7,013.18 points and Realty by 251.18 points to 5,634.60 points. — PTI
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Debt Relief
New Delhi, June 19 “On June 25, we hope to get the list (of farmers),” the finance minister told various PSU banks heads through a video-conferencing. He asked these banks to get themselves satisfied by June 23 that inspection and superchecks in this regard have been done and list of farmers prepared. On June 24, financial services secretary Arun Ramanathan will get in touch with PSU banks chairmen to take the confirmation that the list is prepared, he said. The finance minister also clarified that interest not serviced as on December 31, 2007, would also be included for the purpose of debt waiver in the case of investment loans. In case of loans to farmers through self-help groups, Chidambaram said disaggregated data could be maintained in books of these groups, provided banks are satisfied with that data. Under the loan waiver scheme, loans provided directly to group of individual farmers like self help groups would also be included, but disaggregated data of the loan extended to each farmer must be maintained. In his budget speech, the finance minister had set June 30 as the deadline for waiving debt of farmers with holdings up to three hectares. The size of the loan waiver was subsequently enhanced to Rs 71,680 crore, and its coverage widened to include seven million more marginal and small farmers, taking the number of such beneficiaries to 43 million from the originally proposed 40 million. Chidambaram also asked the banks to make sure that certificates and undertakings for farm debt waiver are given to farmers in their languages. He complimented the staff of PSU banks for their work on various tasks of farm debt waiver scheme. — PTI
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Deal with RCom not discussed at MTN AGM
Johannesburg, June 19 “Shareholders stuck to the agenda of considering annual report and chairman Cyril Ramaphosa did not mention either Reliance or anything else... the chairperson stuck to the agenda,” MTN spokesperson Nozipho January-Bardill said after the meeting. Asked if the negotiations between MTN and RCom for combining the business and communication by Reliance Industries threatening legal action came up for discussion at the AGM, Nozipho said: “I am telling you only agenda items were discussed and nothing more. The agenda was circulated among the shareholders a few weeks back.” —
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Air fares set to go up from today
New Delhi, June 19 Sources in the aviation industry said the new fares for Jet Airways, Air India and Kingfisher would come into effect from tomorrow. The low-cost carriers have also announced an increase in their base fares, ranging from Rs 300 to Rs 500, they added. According to sources, the fares for journey of up to 750 km have been increased by Rs 1,000, while travelling more than 750 km but less than 1,000 km will cost Rs 2,250 more. Flying beyond 1,000 km is dearer by Rs 3,000. The new charges are being added to the base fare and they do not include taxes like fuel and congestion surcharges as levied by various airlines. The announcement comes at a time when airlines in the country have suffered a staggering loss of Rs 4,000 crore in 2007-08. The projected loss during the present fiscal is expected to be double than that in 2007-08. The airlines earlier this month had announced an increase of Rs 300 to Rs 550 in fares following an increase in the price of aviation turbine fuel. —
PTI |
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JLR launches major recruitment drive
London, June 19 The initiative comes only weeks after JLR was bought by Indian car giant Tata Motors from Ford for £1.5 billion but the former is not directly involved with the project though it approved the new plan. “This recruitment drive demonstrates JLR’s confidence in our future. With our new owners, we have entered an exciting era with stunning new models and ambitious technologies,” newly-appointed chief executive David Smith said yesterday. The company has invested in sustainable technologies to meet EU emissions target and was looking for experienced, degree-educated engineers to work on a variety of “ground-breaking” projects. Most of the jobs will be based at the group’s development centre in Gaydon, Warwickshire. Besides, there are a “significant number” of vacancies in its purchasing, finance and human resources departments. It is also launching a programme aimed at recruiting more than 80 graduate trainees as well as 60 apprentices under an advanced modern apprenticeship scheme announced in March. The company did concede, however, that it would have to “spread our net fairly widely” to meet its engineering numbers and did not rule out recruiting abroad, including in India.
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Global Alliances
Tokyo, June 19 “As a key member of global Suzuki group, Maruti Suzuki will take a significant role in the future," Suzuki Motor Co (SMC) chairman Osamu said. He was responding to a query if he was in favour of Maruti Suzuki India (MSI), considering it huge cash reserves to the tune of Rs 5,500 crore, getting into alliances in the wake of Tatas buying Jaguar and Land Rover and M&M getting into alliance with Renault besides also buying component companies. Maruti has already surpassed the parent in terms of domestic sales and recently it emerged as the fourth most reputed auto company in the ‘Global 200: The world’s best corporate reputations’ list, compiled by US-based Reputation Institute ahead of SMC which came eighth. Asked how confident he was about MSI maintaining more than 50 per cent market share in India, Suzuki said: "An entire generation of Indian people has grown up with Maruti Suzuki since we entered the Indian automobiles market in 1982. “We are sure of continuing to offer attractive vehicles for everybody in India in the future, therefore we think it is not impossible for us to maintain 50 per cent passenger market share.” He also said the research and development facility at MSI was being developed to be at par with SMC’s in Japan. — PTI
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International Flights
New Delhi, June 19 While airline operators refused to comment, officials say they have been lobbying hard for the GoM to review the decision and take a favourable outcome on international flying licences since it will help them overcome the current deep financial red, courtesy high domestic ATF prices. The issue has been long pending with the government. However, they have a reason to be more optimistic as now the scrapping of the five-year norm is likely to be seen as a way out of current crisis faced by the airline sector. The states have been asked by the Center to consider cutting sales tax on jet fuel to help airlines tide over large losses due to rising ATF costs. But the general feeling is that the states are unlikely to take a favourable decision even when they meet in Srinagar on June 21-23. Therefore, if given a favourable nod, the decision will come as a shot in the arm for the ailing airlines industry. Operators can pull out from over-saturated circuits and rationalise existing routes by tapping the huge potential. At present besides foreign airlines, amongst Indian operators Air India, Indian and Jet Airways meet the minimum eligibility criteria to operate on international flights. Relaxation of the existing rules to start international operations is likely to benefit airlines like Kingfisher, IndiGo and SpiceJet. Since Air Deccan will be a five-year old airline in August 2008, even if overseas norms are not relaxed, Kingfisher will be able to fly on Air Deccan’s licence. It will complete five years in 2010. After the GoM, the matter would then be taken up by the Cabinet. Sources reveal that the government has next couple of months in which it could push the issue. The much-debated and postponed issue has been in the offing since 2003. There are other issues as well but no international routes before five years - which is the policy at present - has met stiff opposition from some GoM members. The new norm would allow airlines, depending on their size, experience and pocket size, to fly abroad on a case-to-case basis. Technical criteria for starting international routes are fleet and the aircraft they have for abroad following pilots’ technical capability. They have to meet standards of the IATA norm.
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Avalon Academy aviation centre in Dehra Dun
Dehra Dun, June 19 Diana is Avalon’s ‘celeb guest lecturer’ for training airlines personnel in various aspects, including poise and grace. She stated that it did not matter, whether one hails from small or big city, adding one should have the zeal to learn and work hard. She also said scenario in aviation industry was bright. Stating that aviation industry is witnessing a boom and by 2010 India would have around 1.15 million jobs in this sector, Diana asserted that there is job security in aviation. Avalon marketing head (North) Ritesh Singh said: “Avalon is committed to bring excellence and professionalism to the realm of cabin crew and ground staff services training. By drawing on our strong training pedigree and in-depth aviation industry insights, we have put together a structured training programme which covers every aspect of a cabin crew/ground staff career.”
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Plan for ‘battery’ transport
New Delhi, June 19 The ministry of new and renewable energy is planning to provide subsidy to network of charging stations established by battery-operated automobile manufacturers. Plans are in the pipeline to aggressively market and open dealers’ network and charging stations for leasing batteries in major cities for battery-operated vehicles. In a meeting with major battery-operated vehicle manufacturers, MNRE secretary V. Subramanian stressed upon the need for rigorous marketing and opening of dealers’ network and charging stations for leasing batteries by manufacturers. While prices of crude oil are skyrocketing, number of vehicles on Indian roads is also increasing. Subramanian said in such a scenario the aim should be to ensure that more people get attracted to battery-operated vehicles and to achieve that the existing scheme would be expanded to accommodate two-wheelers in its purview. “At present only three and four-wheelers of institutions are eligible for this scheme. Besides, the ministry will also give subsidy to a large network of charging stations established by the companies,” he added. The MNRE, through R&D and demonstration programmes, has made efforts for using bio-fuels in automobiles and stationary engines, besides development and production of battery-operated vehicles. In India battery-operated two-wheelers, three-wheelers and four-wheelers are manufactured by several manufacturers. However, their number in comparison to conventional fuel vehicles is small. The fact is while the running cost of battery-operated vehicles is cheaper than the petrol/diesel-run vehicles, replacement of batteries of battery-operated vehicles is expensive. Which is why leasing of batteries and central charging facility for battery-operated vehicles is being considered as a step for promotion of such vehicles. Meanwhile, battery-operated vehicles manufacturers have assured the government all support for expanding their marketing network and creating awareness. Delhi has announced supporting 30 per cent battery-operated vehicles costs and procedures for availing the incentives. |
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