New Delhi, July 3
A panel formed by the Department of Telecom (DoT) to recommend methodology, including a suitable auction mechanism for the allocation and pricing of second generation (2G) spectrum for mobile services would meet on July 14.

2G Spectrum pricing and allocation has seen considerable controversy between DoT with TRAI, finance ministry and operators. A DoT official said the panel's main task is to work out a practical, revenue-generating and amicable solution on these two issues.

The panel, headed by DoT's additional secretary Subodh Kumar is expected to recommend an appropriate auction mechanism for additional spectrum, said a DoT circular.

The DoT and finance ministry have been at loggerheads over pricing spectrum with the latter wanting higher charges. The finance ministry has been pushing for auctioning 2G spectrum on the grounds that the price formula suggested by DoT was based on spectrum charges decided in 2003.

It has concluded that for a pan-India operator, the circle fee fixed at Rs 357 crore per MHz should be inflated by a multiple of 3.5 times reflecting the growth in revenue per MHz between 2003 and 2008. — PTI

New Delhi, July 3
The Ambani brothers always seem to be in news globally, whether for their differences over the mergers or their efforts to acquire the other companies.

After the media globally lapped up the news of the spat between Mukesh and Anil Ambani over the latter’s efforts to merge his Reliance Communications (RCom) with South Africa’s telecom giant MTN, the attention of the media around the world is now focused on what will be the next move of the younger brother in a bid to out-think his elder brother.

This was also evident from the news emerging today in newspapers abroad that RCom, along with its investors, including Middle East sovereign wealth funds, may now be again looking at buying a majority stake in MTN rather than merge operations as planned earlier.

The earlier news that Anil Ambani was looking at swapping shares of RCom with that of MTN to gain control of the South African company having global footing had stirred up a controversy, where his elder brother sought to clarify that as per the agreement at the time of the division of Ambani empire, he would get the first right to refusal for the purchase of shares.

Reports now suggest that the consortium controlled by RCom would again look at buying out a 51 per cent stake in MTN in order to avoid any legal disputes with his elder brother.

The Financial Times, citing a person familiar with the deal said, "A consortium led by Indian billionaire Anil Ambani is considering taking a majority stake in South African mobile operator MTN to help stave off a potential legal challenge from his elder brother, Mukesh Ambani, to the deal that has been under discussion".

A spokesman for Reliance Communications declined comment.

The Wall Street Journal on the other hand said a deal could be announced this weekend, citing two people familiar with the situation.

Both companies have been engaged in exclusive talks since the last week of May. A final shape to the deal may surface at the end of the 45-day exclusivity agreement that ends on July 8.

Reports suggested that a special purpose vehicle controlled by Anil Ambani with co-investment from global private equity and Middle East sovereign wealth funds would end up owning 51 per cent of MTN under the proposed new structure.

Earlier, reports had said that it could be MTN acquiring a majority stake in RCom, after which Mukesh Ambani’s Reliance Industries warned of a legal action in letters sent to South African telecom firm and RCom.

A possible amalgamation deal between RCom and MTN could create a combined entity worth an estimated $70-80 billion and the world’s seventh largest telecom company after the likes of Vodafone and China Mobile. 

New Delhi, July 3
UB Group’s flagship company, United Spirits Limited (USL), is looking at capturing the north Indian market through its various brands and the focus would be on the markets in Punjab, Haryana, Uttar Pradesh and Delhi.

USL would be looking to penetrate these markets, especially through its vodka brands, for which they have already brought out prestige segment offering and through which it would also be looking at taking on the Radico Khaitan group, which has a strong presence in the region.

The segment is turning out to be a major competition ground for the liquor companies with the fight on to capture the market, which is growing at almost 40 per cent per annum. This is precisely the reason that USL has brought out the Romanov Red, a value-added extension of its brand Romanov to take on Radico Khaitan's Magic Moments.

The latter enjoys 60 per cent share in prestige segment of the country's vodka market.

However, now USL is looking to take on the competition and launched Romanov Red in north India late last month.

While the vodka market in India is pegged at nearly five million cases per annum, Magic Moments' sales would cross over a million cases this year, nearing 1.1 million cases sale of the country's largest selling vodka, USL's White Mischief.

Debashish Shyam, assistant vice-president (marketing) of the USL, said the group company had also increased its marketing spends on vodka by over 25 per cent in the past one year and also expects higher growth in newer kinds of spirits like flavoured vodka.

USL is also considering to introduce another of the premium segment Vladivar vodka, which is from the stable of the Whyte and Mackay, the brewery it acquired last year.

With the launch of Vladivar, USL is also looking at taking on Diageo’s Smirnoff. 

New Delhi, July 3
Under pressure from the government, steel industry today agreed to cut prices of select products by up to 10 per cent and also discourage exports, a move that would help check inflation.

The industry, including major and secondary steel makers, have agreed to reduce prices of pipes and tubes that had turned dearer in June, steel secretary R.S. Pandey told reporters after a 3-hour long meeting with the manufacturers.

The manufacturers said they would fix a price ceiling of Rs 48,000 per tonne for pipes and tubes with immediate effect.

The primary producers, including state-run SAIL, RINL, Tata Steel, JSW Steel, JSPL and Ispat, announced that they would discourage direct and indirect exports of HR coils and subsequently CR coils and galvanised products to increase availability by up to 12 per cent (about 2 million tons) in the domestic market.

The producers also said they will review MRP arrangements with their dealers to cool soaring steel prices at retail level.

"Steel industry has decided to reduce direct and indirect exports of HR coils to enhance its availability in the domestic market, besides reviewing the MRP arrangements with dealers to benefit end consumers," JSW Steel vice-chairman and managing director Sajjan Jindal said.

Brushing aside speculations that steel producers are set to increase prices after the three-month self morotorium ends in the first week of August, Jindal said, "It is not necessary that prices will go up from August. We will have to see."

Steel secretary R.S Pandey too endorsed Jindal's views and said that "hoarders thinking that steel prices will go up in August, are in for a surprise." Pandey hoped that the administrative steps being taken by primary and secondary steel producers would give concrete results within a week.

Asked about the reasons for the rise in retail prices of steel, the secretary said, "It was because of speculation in the market that prices may go up from August that dealers started hoarding, thereby leading to the price rise." Elaborating on review of MRP concept by primary producers for their dealers, who are so far not covered under this ambit, Pandey said, "Present practice is that for certain quantities of offtake by dealers, the primary producers don't insist on MRP, which they may insist now to benefit end consumers." — PTI

New Delhi, July 3
The finance ministers and other delegates from 43-member economies of the Asia-Europe Meeting (ASEM) met recently in Jeju island of Korea to discuss issues relating to economic conditions in the region. The meeting was meant to arrive at a joint policy response to global economic conditions, infrastructure finance and microfinance, market-oriented approaches towards climate change, and a co-operative partnership between Asia and Europe. 

Concerns were shared over the current global downward economic conditions, including a US economic downturn, international financial market instability and rising inflationary pressures across the globe. In particular, the ministers voiced concerns over the soaring oil and food prices, which threaten stable global economic growth by reducing corporate investment and consumption. 

The ministers, it is understood, arrived at a conclusion that international co-operation was essential to responding to these concerns. As part of a global coordination, they agreed that there should be more investment in the agriculture and energy sectors, and market openness has to be maintained. The discussion was also held on the significance of dialogue between oil-producing and importing countries, along with the need for investment expansion to raise oil-producing countries' production capacity.

The ministers agreed that the efforts to multilateralise the Chiang Mai Initiative (CMI) would provide new momentum for Asian integration and that the financial integration would raise regional financial stability, leading to a reduction in economic uncertainties. As for infrastructure finance in the region, the ministers recognised that infrastructure development plays an essential role for economic growth and social development. 

They agreed that a better public-private-partnership (PPP) would promote infrastructure development in Asia and Europe. In the end, the ministers agreed on the importance of information sharing and capacity building at ASEM level, welcoming the Jeju Initiative, suggested by South Korea. 

Through the Jeju Initiative, ASEM members will initiate various programmes, including information and knowledge sharing, education and training programmes, technology assistance and expert exchanges. Concerning the issue of microfinancing, ministers agreed that this was an effective method to achieve social cohesion and eliminate poverty in developed and developing countries. 

They reached an agreement to make more efforts to enhance microfinance-friendly legal and regulatory systems. The ministers also agreed that the 9th ASEM Finance Ministers' Meeting will be held under the chairmanship of Spain in 2010. 

Chandigarh, July 3
E-CITY Ventures, the cinema infrastructure and retail infrastructure arm of the Zee Group, will be investing Rs 90 crore for the expansion of its cinema infrastructure business this year. The major thrust will be on digitising cinema content through its E-CITY Digital business, which could turn out to be the entry point for the company for turning these cinema halls into Fun Cinemas or Talkie Towns.

Talking to TNS here today, Atul Goel, CEO of the company, informed that this year they proposed to add 110 screens in its kitty for providing digitised cinema content. "We are already supplying digital cinema to 110 screens across the country. So far, our thrust has been in Tamil Nadu and Andhra Pradesh. This year, we propose to expand our operations to Uttar Pradesh, Maharashtra and Gujarat, besides consolidating our position in south India," he said.

The cinema infrastructure arm of E-CITY Ventures works in various formats, including their lifestyle brand of cinemas — Fun Cinemas, the value brand of cinemas — Talkie Town and digitising cinema content through E- CITY Digital. Goel says that since there is growing awareness about the environment in which people like to watch movies, the digitised cinemas being done by us could be the entry point strategy for graduating to the Fun Cinemas or Talkie Town.

He said there was immense scope for expansion of business in this format as there were 12,000 screens in the country. "We have earmarked Rs 15 crore (for 110 screens) for expansion in this format, during the current fiscal, By 2011, we are aiming at a roll out of 1,000 screens," he added.

The CEO also said that they had earmarked Rs 50 crore for expansion of Fun Cinemas and Rs 25 crore for expansion of Talkie Towns. "By the end of this fiscal, we will have 32 additional screens of Fun Cinemas and 25 screens of Talkie Towns. In north India, we plan to open Fun Cinemas at Ludhiana, Amritsar, Jaipur, Kota and Bathinda, and Talkie Towns at Mulktsar and Hisar. At present, we have 50 screens of Fun Cinemas and nine screens of Talkie Towns across the country," he said. 

BRIEFLY

Nod to Bharti AXA Insurance
New Delhi: Bharti AXA General Insurance Company Ltd, a joint venture between Bharti Group and AXA Group, on Thursday said it has received approval from Insurance Regulatory Development Authority (IRDA) for commencing business in the country. Bharti, holds 74 per cent in the JV with the rest owned by global leader in financial protection AXA. — UNI

Yes Bank ups key rates
Mumbai: Yes Bank on Thursday announced the increase in its prime lending rate (PLR), by 50 basis points with effect from July 1. Simultaneously, it has increased its fixed deposit interest rates for tenors ranging from 9 months 1 day to 3 years, Yes Bank said in a statement. — PTI

Reliance Mutual Fund in UAE
New Delhi: Reliance Mutual Fund (RMF) on Tuesday joined hands with Bank of Baroda (BoB) in the UAE for the distribution of its schemes through their branches in the Gulf Co-operative Council (GCC) region. “Post-agreement, RMF will see an increase in number of distributors across six branches in the UAE and three in Oman where Bank of Baroda has its presence,” Reliance Mutual Fund Deputy CEO Sundeep Sikka said in a statement. — UNI