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Mukesh Ambani meets PM
Speculation rife over MTN going
Show-cause notice to Bharti over DTH norms violation
Acute shortage of wire rods and MS rounds
India Inc gears up to fight global warming
Motorola launches 3G-enabled phone
Reliance MF targets 80 pc growth
Sundeep Sikka
Indian firms hunt for oil in Australia
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IFCI scouts for partner again
Oil Cos asked to stop ‘indiscriminate’ expansion
Axis Bank net up 88 pc
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Mukesh Ambani meets PM
New Delhi, July 14 One such meeting was held today between Prime Minister Manmohan Singh and Reliance Industries (RIL) chairman Mukesh Ambani. The meeting assumes significance ahead of UPA government seeking trust vote According to sources, the discussion was held on issues ranging from tax on windfall profits earned by Reliance Industries, the MTN-Reliance Communications deal, the change of petroleum minister Murli Deora in the Cabinet reshuffle, Reliance’s KG basin gas supply to Anil Ambani’s RNRL among other issues. The need was felt to iron out the differences between the two warring brothers because it could have political and economic fallout, say sources. There have been allegations by UPA’s new-found partner Samajwadi Party on private oil companies making windfall profits and that they should be taxed. This is likely to have repercussions on Mukesh Ambani’s Reliance Industries which has made huge profits because it is a 100 per cent export-oriented unit. The meeting today did deal with this issue and Mukesh, it is understood, has explained to Prime Minister the loss of India’s credibility if a government takes a U-turn on its own policies. The Prime Minister on his part has asked Mukesh Ambani not to interfere in the The acquisition of South African telecom major will give Anil Ambani an international footprint and an undue interference by Reliance Industries to scuttle the deal will leave a bad image of India as a business destination. Sources say, changing the Cabinet portfolio of petroleum minister Murli Deora and giving the berth to an SP MP were also discussed. It is understood that there are not too many options that the Congress has to offer in the ministerial berths if it makes a deal with the SP. Though the reports are not confirmed, but it is understood that the Prime Minister has discussed Mukesh Ambani’s interest in joining the nuclear club of private entrepreneurs (like Tatas and L&T) subject to the deal being signed between India and the United States. There are reports that Mukesh Ambani has also met UPA chairperson Sonia Gandhi but no confirmation could be obtained. In his meeting with the top bureaucrats, Ambani pleaded that the demand for levy of so-called windfall profit tax on private firms was no more than a populist slogan based on the misleading logic that with rising prices of oil across the globe, these companies are making profits far in excess of what they legitimately deserve. While government shares production from oil and gas fields and is a beneficiary of high oil prices, the refinery business is highly cyclical and with new capacities coming on stream world over margins will decline precipitously. Mukesh Ambani is believed to have told policy makers that fiscal revenue gain from a wind fall profit would be short-term in nature, but the economic costs of introducing an unstable fiscal regime could be long lasting. Meanwhile, Congress spokesperson Abhishek Manu Singhvi has clarified on the talks and said: “You can’t shut anybody in a democracy from demanding what they want. It is ultimately for the government to decide what is good for the country and the Prime Minister will not take any decision just because demands are made and economic policies will be based on merit.”
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Speculation rife over MTN going back to Bharti
New Delhi, July 14 Having stressed that it is determined to press for a resolution of the issue of the “right to first refusal” of the RCom shares through arbitration as provided in the non-compete agreement, the RIL has sparked off speculation in the media that MTN could look at a "less controversial" deal with Bharti Airtel instead of RCom because of the feud. The claims of RIL are although not acceptable to RCom, but there were speculations in South African and London media that MTN, which is looking to sell out, may again turn to Sunil Mittal-led Bharti Airtel as there were no complications involved there. The speculation comes just days after the MTN and RCom announced the extension of their exclusive talks from July 8 till July 21. MTN and RCom, India's second biggest mobile operator, have been locked in exclusive merger negotiations since May 26 after the South African firm's talks fell apart for a possible deal with Bharti Airtel. However, reports in the South African daily The Times said, "the original, less controversial merger with Bharti Airtel could be back on the cards," as MTN was wanting a "clean deal". Incidentally, there have also been reports in India that with RIL claiming right of first refusal (RoFR) in RCom, and threatening to take legal recourse against RCom, MTN wants to be certain about avoiding a prolonged and painful legal dispute in India. Taking a cue from these reports, another South African daily Business Day reported, “media frenzy surrounding MTN's proposed merger with Reliance Communications is probably creating a useful smokescreen to allow it explore opportunities in other countries well away from the spotlight". The Times, in its report, said MTN board, which met last week, might "well conclude that the deal (with RCom) has become too complicated and decide that it does not want shareholders held hostage to an unwieldy legal battle in another jurisdiction". Incidentally, RIL had on Monday last said that "in view of the refusal of RCom to participate in conciliation process as envisaged in the agreement, RIL is left with no alternative but to adopt appropriate proceedings against RCom as advised".
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Show-cause notice to Bharti over DTH norms violation
New Delhi, July 14 In a show-cause notice, the information and broadcasting ministry asked Bharti Telemedia to furnish explanation failing which the government could consider suspending the licence till such time the company obtains necessary approvals from FIPB and meet the eligibility conditions. When contacted, a Bharti spokesperson said the company complied to all licence conditions in its DTH venture and
this has been communicated to the government. "We are in complete compliance of all necessary regulatory guidelines, including FDI and foreign equity component as laid down in DTH licence conditions and requirements," the spokesperson said. "All these particulars were duly submitted to the ministry of information and broadcasting and licence was granted by the ministry after consideration of all details," the spokesperson added. Bharti Telemedia, the DTH arm of Bharti Enterprises, was issued the show-cause notice last month for alleged violation of FDI guidelines as well as well eligibility conditions of the licence agreement. According to guidelines, any foreign investment in cable and broadcasting services is through the FIPB route and prior approval is required for such investment in any company.
— PTI |
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Acute shortage of wire rods and MS rounds
Chandigarh, July 14 These wire rods and MS rounds are used in bicycle and bicycle parts, auto parts, fastener and other engineering industry. Over the past couple of months, the industry here is facing a severe shortage of MS rounds and wire rods, as the main steel producers in the country are now concentrating on rolling out TMT bars rather than the rounds and wire rods. It is alleged that the manufacturing of these rods has been reduced to half by the main steel producers. Industrialists in the region say that the unavailability of wire rods and MS rounds has delayed their orders, adversely affecting business. A leading auto parts exporter in Ludhiana, requesting anonymity, said they were hit hard because of the unavailability of rods and rounds and the volatile steel prices was forcing them not to accept long-term orders. “If we accept an export order today, when the price of steel is Rs 43,000 per metric ton, we cannot be sure that we will be able to make profit at the time of delivery, when the steel price would have again been hiked,” he added. A.L. Aggarwal, president of Chandigarh Industrial Fasteners Association, too, rued that most of the 300-odd fastener units in Chandigarh were facing a tough time because of the unavailability of the MS rounds and wire rods. “Earlier, because of the escalating steel prices by main producers, we were not getting enough orders. Though the prices by the main steel producers have stabilised after government intervention, the secondary steel producers are creating volatility in prices citing a shortage in raw material. If only the prices were to remain stable for another three months, we would be able to deliver our orders and break even,” he said. P.D. Sharma, president of Apex Chamber of Commerce and Industry, too, said the industrial production was on a decline because of unavailability of steel and frequent hike in prices by secondary steel producers.
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India Inc gears up to fight global warming
New Delhi, July 14 As many as 21 per cent of Indian corporates had taken initiatives to mitigate negative impacts to save the Earth from greenhouse emissions, a good figure but still way behind the 55-60 per cent that is the global ratio, says the survey. Incidentally, just two years back the percentage of green India Inc. was below Assocham president Sajjan Jindal says seven to 10 per cent of employees working in government and private sector have taken the issue seriously and were keen to work closely with industry and society. But the majority, 79 per cent, of domestic corporates would still first prefer to take expansion and diversification plans in their concerns to a logical conclusion as for them climate change and global warming was the second preference. The survey has taken views of 180 top corporates and 240 employees engaged in companies vigorously adopting measures to mitigate effects of climate changes. It says 21 per cent corporates have committed measures by partnering with developed world in blocs like the US, EU and Asean. Initiatives taken by domestic corporates are being supported by over 60 per cent companies in these regions, adds the survey. Respondents felt public-private partnership (PPP) model in these countries were working in right direction for protecting environment, but partnership offer between Indian corporates and the government was yet to pick up the required pace. About 75 per cent corporates stressed the need for alternatives to fossil-based fuels by switching over to natural gas and renewable energy, adopting energy efficiency measures, cleaner technologies and better utilisation of waste. Apart from these efforts, investment in R&D of new and clean technologies leading to a stepper reducing in GHG emissions is being looked into as one of the options to tackle the problem.
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Motorola launches 3G-enabled phone
New Delhi, July 14 The launch from Motorola, which had captured markets all over the world through its Motorazr mobile phones, comes just months ahead of the launch of the 3G-enabled i-Phone handsets from Apple, which are bound to catch the attention of the Indian mobile phone users as it has done around the world just after its launch last week. The new phone is priced at Rs 21,840 in the Indian market. To maintain the exclusivity, like that by i-Phone, the new handset -Motorazr 2 V9 Ferrari - would initially be available only at the Mobile Store for first week of its launch. However, the phone would not be a limited edition device. Announcing the launch, Motorola senior director, sales and distribution (South West Asia) Lloyd Mathias said, "The consumers mindset and taste is rapidly changing in India. The formula one racing culture is fast catching the fancy of the Indian youth and we are confident that we will find the right kind of audience for product here". The product is 3G-enabled, so users could use the device to watch movies as well, once the operators start 3G services here, he said. The phone comes with a unique racing interface, 2-mega pixel camera and has expandable memory up to 2 GB. "Initially, the product will be available in 10 cities such as Delhi and NCR, Mumbai, Kolkata, Chennai, Bangalore, Chandigarh, Hyderabad, Pune, Kochi and other cities. Depending on the success we will make the product available in other cities as well," Essar Telecom Retail (The Mobile Store) CEO and Rajiv Aggarwal said.
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Reliance MF targets 80 pc growth
Chandigarh, July 14 Despite volatility in the stock market, Reliance Mutual Fund expects an 80 per cent growth in its asset base and 100 per cent jump in its size of investors. Talking to mediapersons here today, Sundeep Sikka, deputy CEO, Reliance Capital Asset Management, said the USP of the plan is that this Systematic Investment Plan (SIP) will provide free life insurance cover to investors. “In case of the death of investor, the balance unpaid installments would be made good from the insurance cover," he said. The add-on features, he added, will encourage individual investors to save and invest regularly through SIP. Under the scheme, the nominee will be able to continue in the scheme without any further payment subject to a limit of maximum Rs 10 lakh. The growing awareness that long-term equity investment provides relatively better returns will prompt investors to opt for the scheme which has a component of insurance, he added. The company is looking at significant jump in its investors' base during this fiscal. The company had an investor base of 35 lakh in 2006-07 and 67 lakh in 2007-08. As on date, it has over 70 lakh investors. To expand its reach, the company plans to have presence in 500 locations this year. "We have presence in 300 cities as of now and we plan to increase our presence to 500 locations within in this fiscal," said Sikka.
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Indian firms hunt for oil in Australia
New Delhi, July 14 These companies are expected to bid for the five prized exploration blocks that will be on offer by the Australian government in October this year. The Indian companies have started negotiations with Australian oil majors like Oilex, Santos, Arrow Energy, BHP Billiton, among others. An Australian delegation headed by the western Australian Deputy Premier Eric Ripper, which is currently visiting India seeking investments in the oil and gas sector, is going to meet India’s petroleum minister Murli Deora. The delegation is also likely to meet the upstream regulator, the Directorate General of Hydrocarbons (DGH), to sign a memorandum of understanding (MoU) for collaboration in the upstream sector. In Australia, Videocon has two hydrocarbon blocks in South Otway Basin, co-owned with Oilex and GSPCL — the three companies own 60 per cent — with the balance 40 per cent being retained by the original licence holder, Great Artesian Oil & Gas. It also has a stake in Block 103 Joint Petroleum Development Area, Timor Leste & Australia. The consortium comprising Videocon Industries (25%), GSPC (25%), BPCL (25%) and Oilex (25%) as the operator has been awarded the Block 103 by the Timor Sea Designated Authority, which was created on April 2, 2003, pursuant to the Timor Sea Treaty between Governments of Timor-Leste and Australia.
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New Delhi, July 14 "We are committed to looking at all possibilities to ensure IFCI reaches sustainable pattern of growth ...strategic investor would play role of angel investor to help company in deepening its competency," IFCI chief executive officer Atul K Rai told reporters here. "We are very much open to it as and when we have requisite condition in place we will go for it (strategic sale)," he said. The company is also looking at raising resources from the market. Resources would be raised through private placement or preference shares either by the end of this fiscal or early next fiscal, Rai said. Meanwhile, IFCI had announced a net profit of Rs 151.07 crore for the first quarter ended June 30, a 38.80 per cent decline over the corresponding period a year-ago. The firm had a net profit of Rs 246.86 crore in the first quarter of FY'07-08, it IFCI said in a filing to the Bombay Stock Exchange on Saturday. — PTI
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Oil Cos asked to stop ‘indiscriminate’ expansion
New Delhi, July 14 Indian Oil Corp, Bharat Petroleum, Hindustan Petroleum, who currently own about 37,000 petrol stations in the country, have been asked by the petroleum ministry to stop "indiscriminate" expansion as it was one of the reasons for mounting revenue losses on fuel sales, a senior official said. "There is no ban as such but we are discouraging them from setting up new outlets in already saturated markets," he said. The companies can, however, set up new petrol pumps in the areas so far untouched by the retail network.
— PTI |
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Axis Bank net up 88 pc
Mumbai, July 14 The bank in a release said the net profit for the corresponding period last year was Rs 174.98
crore. The net profit was recorded after making a provision of Rs 225.20 crore on the depreciation of the bank's investment portfolio, on account of weakening financial markets, the release said.
— UNI
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Max New York Life-IOC pact P&SB hikes deposit rates Era Infra bags Rs 95.5 cr order Lufthansa to buy 60 aircraft Iran, Russia ink oil, gas pact Rs 989-cr order for Madhucon Ind-Swift foray
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Reliance Mutual Fund today launched an investment scheme SIP Insure which will
