The Tribune, Chandigarh, India

	RCom okays Rs 50,000 cr deal with GTL Infra New Delhi, June 27 Anil Ambani group today announced a Rs 50,000-crore deal to merge its telecom tower business with GTL Infrastructure, a move that would help RCom cut down its debts by more than half. The Boards of RCom, its subsidiary Reliance Infratel Ltd., and GTL Infrastructure today in-principle approved a Rs 50,000-crore ($11 billion) deal to create the world's largest independent telecom infrastructure company, neither owned nor controlled by any telecom operator, the company said in a statement. RCom said the cash infusion and equity swap ratio would be decided in due course of time. Sources close to the deal said the deal would help RCom reduce its Rs 33,000-crore debt by Rs 18,000 crore. The deal comes soon after the warring Ambani brothers called off their five-year-long dispute and scrapped the non-compete agreement between the two. This transformational deal will be implemented through a demerger of Reliance Infratel’s tower assets into GTL Infra, it added. India's largest optic fibre network of over 200,000 kms and related assets owned by Reliance Infratel will remain under RCom's ownership. Elaborating on the deal structure, the company said the cash infusion into RCom will lead to substantial reduction of its consolidated gross debt and improved leverage ratios, which in turn would result in enhanced financial flexibility. Besides, the two million shareholders of RCom would get free listed shares of the merged entity, the ratio for which will be decided soon. "Details of the quantum of cash infusion to RCom, and the share swap ratios for RCom and Reliance Infratel minority shareholders will be finalised in due course with the help of independent valuers and advisors," an ADAG statement said. Upon closing itself, the merged entity will have over 80,000 towers and over 1,25,000 tenancies from over 10 telecom operators, such as Reliance Communications, Aircel, Etisalat DB Telecom, MTS, Uninor Telecom, Videocon Mobile, Tata Teleservices, Vodafone, S Tel. In addition, the merged entity will have a firm option on additional 75,000 tenancies from leading players. Based on the developments in the Indian telecom sector, including inter alia, and the likely future demand for telecom infrastructure across the country from 14 players in 2G, and winners in the recent auction for 3G (9 players) and BWA (Broadband Wireless Access - 8 players), the merged entity is expected to derive substantially higher tenancy ratios, apart from scale benefits and operational synergies.— PTI
	A home computer at Rs 6,000! Suresh Dharur Tribune News Service Hyderabad, June 27 For those looking for ultra low-cost alternatives to personal computers, here is a good news.elLoka Techsolutions, a Hyderabad-based product design and manufacturing company, has come up with a home computer that is priced at Rs 6,000. Weighing just 130 grams, the compact processor can fit into a palm-sized box and comes with a keyboard and a mouse to be connected to a monitor or television. Developed indigenously, the product, simply called “Home Computer” consumes less power and comes with applications such as MS Word, Excel, YouTube, Facebook, Google Docs and audio-video player. “To begin with, we are targeting homes and educational institutions. The miniature CPU has an inbuilt memory of 24 MB and also comes loaded with applications like open office, Firefox browser, Google docs, Web Chat, photo viewer, media player, file explorer and printer output,” the company’s managing director and ex-serviceman Lt Col KA Padmanabham said. How is it different from conventional PCs, apart from the pricing advantage? “We have extensively studied the PC usage. In most cases, the PCs are overpowered and under-utilised, particularly in a home environment where affordability is a major constraint. We saw the scope for a home computer and not for a personal computer. The objective is to take it beyond a PC. Even the existing Internet users will be able to connect it to their TV sets either for VoIP or video chat,” the company official said. elLoka is planning to roll out 10 lakh home computers during this financial year. It is planning to have tie-ups with Internet service providers for bundling the box with their services. At present, the company is in talks with BSNL for taking the product to masses, Lt Col Padmanabham said. “We are also negotiating with potential partners in Bangladesh, Sri Lanka, Africa and some Latin American countries to export the product,” he said. It took over two years for the company to design the processor. It has also developed its own operating system “Home OS”. “A user can connect this tiny box to a TV. Still, he can use applications like Word, Excel and Powerpoint. The system also supports an Internet browser and is capable of playing audio and video files,” he said. An existing Internet user can connect the net cable to the box and start browsing. elLoka is also talking to schools for supplying the gadget along with indigenously developed content for classes III to X. Under a pilot project, the company has tied up with Beam Telecom in Hyderabad, which has 55,000 subscribers, for marketing the device to existing Internet users. With the device, elLoka also offers educational content, stored in USB stick, for classes I to XII students. Another interesting feature of the portable device is that normal or LCD television can be used as a monitor.
	Insecticides India to launch new products Tribune News Service Chandigarh, June 27 The size of insecticides market in Punjab is estimated at about Rs 650 crore, claims Insecticides India Ltd (IIL) officials, hoping to enhance their market share to 9 per cent this year. The company plans to add business worth Rs 13 crore in Punjab this year. “We are launching new products which will be available to the farmers at affordable prices. IIL has a strong marketing system in the region,” says Rajesh Aggarwal, managing director of the company. IIL has a strong presence in Patiala, Moga, Amritsar, Ferozpur, Muktsar, Malout, Ludhiana and Bathinda. With two new projects coming up at Udhampur (J&K) and Dahej (Gujarat), IIL claims to be fully geared up to cater to the demand of the market. The new synthesis plant coming up at Dahej is a big project and is expected to roll out about 10,000 TPA of technical grade pesticides involving an investment of about Rs 50 crore. PC Pabbi, general manager, Insecticides India, says that “as a socially responsible company, Insecticides (India) Ltd started a national awareness campaign that has been well received by the farmers and shopkeepers. Emphasis was given on good agricultural practices and maximising the crop yield. As part of its social initiatives, IIL’s “Agla Kadam” programme, introduced at Alike village in Bathinda, has been well received by the villagers. The company distributes books and study material for children besides providing scholarships and aid to schools, apart from providing technical education to farmers about the latest technologies. Similar social welfare programmes have been replicated in Rajasthan, Andhra Pradesh, Bihar and other states. The R&D unit of the company at Bathinda is used to make the farmers aware about good agricultural practices. The doctors of the company not only train the farmers to identify and control insects, pests and diseases but also help them in selection of right farm inputs.
	Market Update Global factors, progress of monsoon to set the tone by Lalit Batra The government finally managed to muster up the courage to do what it has been promising since long — free fuel prices from administrative controls. This move had the market in a bind as this once again stoked inflation worry, which may lead to rate hike. The markets ended flat last week, with the Sensex gaining just 3 points to 17,574 and the 50-share S&P CNX Nifty rose 6 points to 5,269. The Empowered Group of Ministers (EGoM) decided to free petrol prices from government control while also promising to decontrol diesel prices at a later date. In another major development, the government ended the row over ULIPs by promulgating an ordinance, stating that unit-linked insurance policies with investment component are insurance products which will come under the regulatory jurisdiction of the Insurance Regulatory & Development Authority (IRDA) and not the SEBI. In coming weeks, the movement of the market will depend on the global risk appetite and the progress of monsoon. As per the India Meteorological Department (IMD), annual monsoon rains were 11 per cent below normal from June 1 till June 23. The south-west monsoon is important for India as about 60 per cent of the country’s farmlands are rain-fed and more than half of the workforce is employed in the agriculture sector. Good monsoon rains would help raise farm output, boost rural incomes and lower food inflation. The market would also turn its attention to the first quarter numbers that will start pouring in from the second week of July onwards. Technofab Engineering Technofab Engineering Limited (TFEL) is engaged in the business of providing engineering, procurement and construction (EPC) services on a turnkey basis. The company undertakes execution of a wide range of balance-of-plant (BoP) and electro-mechanical projects in the power, oil & gas, water & wastewater treatment and other industrial & infrastructure sectors in both India as well as international markets. The company, over the years, has evolved from a piping, valves and pressure vessels fabricator to an EPC company undertaking turnkey packages. The issue proceeds are to fund long-term working capital requirements, to finance the procurement of construction equipment, to set up maintenance and storage facility for construction equipment. The funds collected will also be used to set up a training centre for employees and for general corporate purposes. The positives about the company is that it has a good track record in projects execution and has shown ability to move up the value chain. Gammon India, which holds a substantial stake (about 15.7 per cent pre- IPO) in the company, would not only ensure that Gammon contracts are awarded to the company but the company may bid for large ticket orders in association with Gammon India. On the other hand, the company is still a marginal player in the BoP segment and would have to partner with large EPC players such as BHEL in order to bag contracts. Coming to the valuation front, the shares are being offered in the price band of Rs 230-240, which translates into a discounting of 12.6 to 13.2 times, which is in line with other listed players such as Techno Electric. High-risk investors may invest at the cut-off and risk-averse investors may wait for listing before buying into the stock.
	Tax Advice One can carry up to $10,000 on holiday to US by SC Vasudeva Q. I and my wife will be visiting the USA on a visitor’s visa. How many US dollars each of us can carry and in which way? — CL Goyal A. An individual going on a holiday outside India is allowed to carry $10,000 in accordance with the regulations framed under the Foreign Exchange Management Act 1999. Opening a/c in US Q. My son, his wife (along with their two minor children) are in the USA since June 2006 and are doing fellowship in medicine. 1. Can I and my wife open a saving account in the USA during our next visit. 2. Can we transfer our money from India to our saving a/c in the USA and how much? Please quote relevant law. — CL Goyal A. (i) It may not be possible for you to open a savings account in the USA without the permission of the Reserve Bank of India. (ii) The Regulations framed under the Foreign Exchange Management Act 1999 contain guidelines for opening of a bank account outside India by a resident Indian. It is presumed that you are seeking clarification for opening a savings bank account in the USA for utilising funds during your stay there. It may not be possible to open a savings bank account outside India in such a case. PF withdrawals Q. I was working in a private company for a long time (approx 9 years) and left that job. Now, I have joined a new job. Can I withdraw my PF of my previous company? — Sandeep Gupta A. The decision with regard to the withdrawal of the provident fund amount would depend on you. If you need the funds, you may withdraw the amount. It would, however, be advisable to get your provident fund account transferred to new employer’s Code so as to have the continuity for the accumulation of contributions. Permanent Account Number Q. I understand that if a person does not furnish Permanent Account Number and the authority deducting tax at source on payment of any income, shall deduct tax @ 20%. How do I apply to obtain Permanent Account Number. I am based in London for an employment.? — Kanwal Kishore A. Your information of deduction of tax at source @ 20% is correct. This rate would be applicable in case Permanent Account Number is not furnished by the payee to the tax deductor. You have to make an application for obtaining Permanent Account Number in Form 49A. You can download the said form from http:// law.incometaxindia.gov.in/ DITTaxmann/IncomeTaxRules/pdf/itr62Form49A.pdf. You will have to submit a copy of the passport so as to provide the proof of residence. The address appearing in the passport would be acceptable by the authorities.