The Tribune, Chandigarh, India

	India Inc concerned over weak IIP data Growth dips to 5.6 pc in August Sanjeev Sharma/TNS New Delhi, October 12 The industry has expressed concern over the weak industrial production numbers released today, which saw industrial growth slowing down to 5.6 per cent in August from 10.6 per cent in the corresponding period last year. Commenting on the August- 2010 IIP data released today, Dr Amit Mitra, secretary-general, FICCI, said "There are number of worrying signals in the August IIP data. Negative growth in key sectors like capital goods, apparels, consumer non-durables and chemicals is indeed a cause for concern and with further appreciation in Rupee and hardening of interest rates, the growth of manufacturing sector may be significantly affected". "In the light of August IIP data, we would urge the Government to intervene and address the issue of rupee appreciation to further arrest the slowdown in export intensive sectors like apparels. Also, any further hike in interest rates could impact consumer durables and automotive sector", Dr Mitra said. According to industry chamber, Assocham, while the negative growth in the production of consumer non-durables continues to be a cause of concern, the month has seen that the production of capital goods too is slipping. Assocham president Dr Swati Piramal expressed apprehension about the nature of industrial recovery that the country has been witnessing so far and the sustainability of industrial recovery in the absence of government support still remains a major concern. The implications of falling industrial production will pull down the services sector as most of its products are intermediate in nature and the combined effect on employment poses a grave concern to the economy. She expressed the hope that the government keeps note of the recent OECD projections of below trend growth rates of Indian economy in the coming months and takes serious measures. Chandrajit Banerjee, Director-General, CII, said: "Despite the sharp drop in the industrial growth rate in August, CII remains confident that average industrial growth during FY2011 will remain strong. However, the consumer non-durable sector has remained weak indicating subdued consumer demand and pressure on consumer budgets. CII recommends that the RBI should pause and not increase policy rates any further as it could have a negative impact on consumer demand as well as corporate investment and thereby slowdown economic growth". According to Assocham, mining, manufacturing and electricity sectors, respectively, grew at 7 per cent, 5.9 per cent and 5.6 per cent during the month. These figures pulled down the cumulative growth in industrial production since April 2010 from 11.4 per cent to 10.6 per cent. The pull has mainly resulted by the fall in the growth rate of mining (from 10 per cent to 9.4 per cent) and manufacturing (from 12.2 per cent to 11.3 per cent). As against the general growth in industrial production, some of the labour-intensive industries like the wood and wood products, furniture & fixtures and textiles (including wearing apparel) have shown negative growth.
	BlackBerry gets time till Jan 31 Tribune News Service New Delhi, October 12 Stuck between demands of a growing economy, convenience to high performing corporate houses and security demands of the country, the government has decided to give BlackBerry-maker Research in Motion (RIM)- another 90 days to come up with a final solution that will give the country’s intelligence agencies complete access to all services offered on its handsets. Besides, with the upcoming visit of US President Barack Obama, who is an avid BlackBerry fan, the government has given the RIM a new deadline of January 31. The new deadline has been set in conjunction with the Home Ministry. Sources said while the RIM had categorically stated that it does not had the solution as being demanded by the Indian security agencies, the government was firm on a commitment from the Canadian manufacturer to place its server in India. The RIM had also argued that it should not be isolated since similar services were also provided by Cisco e-mail. However, this contention had been rejected since Cisco only had public encryption and no private encryption while BlackBerry had both. The government, however, accepted RIM’s offer to “full and partial solutions” for different applications, including messenger services and corporate emails, which the security agencies were to test over the next 60 days. But, in subsequent meetings between representatives of the Canadian company and officials of the Home and Telecom Ministry, it was decided that RIM would offer interim solutions that would address concerns of security agencies temporarily. Currently, several agencies under various ministries monitor communication flow using contrasting processing systems, technology platforms and clearance levels. This will be RIM’s third reprieve as it seeks to end a three-year standoff with the Indian security agencies, which have threatened to shut down services offered on these handsets unless they have access to secure data. Reports have said that government has asked RIM to adhere to the timeline of January 2011 to give the final solution wherein lawful access for BlackBerry messenger will not involve the overseas data path.
	Financial firms under scanner following spate of suicides Suresh Dharur Tribune News Service Hyderabad, October 12 The activities of microfinance institutions (MFIs) in Andhra Pradesh have come under scanner following a spate of suicides by borrowers, a majority of them rural women, due to alleged harassment by agents of the lending institutions. The exorbitant interest rates being charged by MFIs and their strong-arm tactics against borrowers evoked widespread condemnation. Unable to bear the coercive tactics of loan sharks, over 25 people, mostly the members of women self-help groups and labourers, had committed suicide in the past three months. Andhra Pradesh has emerged as a major hub for microfinance activity and is home to some of India’s leading MFIs, including SKS Microfinance, Spandana, Basix and Share Microfin. “By collecting exorbitant interest rates of 30 to 40 per cent on their loans, the MFIs are driving the borrowers into distress and despair and ultimately to end their lives. Unfortunately, they have been given a free hand to fleece the rural poor,” TDP MP MV Mysoora Reddy said. Accusing the regulatory bodies of failing to rein in the greedy MFIs, Reddy sought to know why the SEBI had allowed SKS Microfinance to go in for Initial Public Offering (IPO) recently, which was oversubscribed about 13 times. Several women’s organisations have demanded stringent action against the lending institutions for arm-twisting the borrowers and forcing them to cough up high interest on their loans. Both the TDP and BJP have blamed AICC General Secretary Rahul Gandhi for “unduly encouraging” the MFIs. As a result, the state governments are reluctant to take actions against the erring organisations. “When Rahul Gandhi shares dais with SKS founder Akula Vikram (during his visit to AP a few years back), how can the government act tough against the MFIs,” Reddy said. State BJP spokesperson NVSS Prabhakar demanded judicial inquiry into the alleged patronage being extended to MFIs by Rahul Gandhi. “Due to his patronising attitude, the MFIs have been mushrooming in the state. There are nearly 40 of them with branches all over the state and getting funding from the World Bank and several national banks,” Prabhakar said. The Opposition alleged that the MFIs were also violating their agreement with the state government signed in October 2006, which caps the interest rate at 15 per cent. They also alleged that private banks like ICICI, HDFC and Axis Bank were investing in MFIs with an eye on profits. Meanwhile, the state government was planning to bring the MFIs under the ambit of the Andhra Pradesh Money Lending (Regulation) Act so that effective steps could be taken to regulate their activities.
	Airtel cautious over new user additions: Report Sanjeev Sharma/TNS New Delhi, October 12 Telecom operator Bharti Airtel is keen to get away from freebies and deal-driven customers and seems to have taken a conscious decision not to fully participate in the acquisition of new subscribers in the intensely competitive mobile telephony sector, according to a research report by leading FII, Bank of America Merrill Lynch. Analysts at Bank of America Merrill Lynch recently met Bharti’s CEO for India and South Asia, Sanjay Kapoor. The report says that subscriber acquisition is still intensely competitive and according to Bharti, there is chaotic competition for new subscriber acquisition. “The recent slowdown in Bharti’s net additions from approximately 3 million per month to 2-2.5 million reflects a conscious decision not to fully participate in the new acquisitions segment. Although new customers still have good propensity to consume minutes over time, the company is keen to get away from freebies and deal-driven customers, “ the report says. According to the report, the industry’s key revenue drivers have little room for positive surprise over next 6-12 months, until 3G scales up.
	Pfizer buys King Pharma New York, October 12 Pfizer Inc today said it will acquire King Pharmaceuticals in an all-cash deal worth $3.6 billion, a move that will bolster the pharma major's presence in the pain treatment segment. Both companies have entered into a definitive pact for the transaction, which has been approved by the firms' boards. In a statement, Pfizer said it would buyout King Pharmaceuticals for $3.6 billion in cash, translating into a share price of $14.25 apiece, which represents a 40 per cent premium over the company's cosing price on October 11. Subject to various regulatory approvals, the transaction is expected to close in the fourth quarter of 2010 or the first quarter of 2011. King Pharmaceuticals is a diversified specialty pharmaceutical discovery and clinical development company. "This strategic combination will allow Pfizer to leverage its existing commercial capabilities and expertise to create one of the leading broad portfolios for pain relief and management in the bio-pharmaceutical industry...," it said. The acquisition would bring pain treatment drugs such as Avinza, Flector Patch and Embeda into Pfizer's portfolio. Pfizer's current offerings in this segment include Lyrica and Celebrex. King Pharmaceuticals' Meridian auto-injector business for emergency drug delivery is a long-term supplier to the US Department of Defence, while its animal health business offers a variety of feed additive products for various species. Noting that the combination would be "highly complementary", Pfizer Chairman and Chief Executive Jeffrey Kindler said it would help the company offer a fuller spectrum of pain relief. — PTI
	Coal India IPO price band Rs 225-245 New Delhi, October 12 Aiming to garner over Rs 15,000 crore through the largest ever public offering in India, the government today decided to price Coal India's IPO in the range of Rs 225-245 a share for divesting its 10 per cent stake. The world's largest coal producer will commence trading on the domestic bourses by November 4. "Coal India IPO price band has been fixed at Rs 225-245 a share. We expect to raise over Rs 15,000 crore from the issue," Coal Minister Sriprakash Jaiswal told reporters, after a meeting of an Empowered Group of Ministers (EGoM), headed by Finance Minister Pranab Mukherjee, to decide the price band. Reacting to market observers' comments that the price band is low, Coal India Ltd (CIL) Chairman Partha S Bhattacharyya said, "The price band is fair. It is neither too high nor too low. ...it could help raise anywhere between Rs 13,909 crore and 15,154 crore." — PTI
	Farmers seek entry tax on sale of broilers Amaninder Pal Tribune News Service Jalandhar, October 12 Unable to bear the heat of fierce competition being posed by poultry farmers of the neighbouring states, poultry farmers of Punjab have decided to press the state government to impose entry tax on sale of broilers in the state by broiler produces of other states. Over 200 poultry farmers congregated here to discuss problems being faced by them and also resolved to float a new organisation under the name of the Punjab Boiler Farmers’ Association. Amrik Singh Sehmbi, president of the association, said besides Punjab and Himachal Pradesh, Jammu and Kashmir was the major market of the broilers produced by poultry farmers of Punjab. However, the imposition of entry tax at the rate of Rs 5 per kg by the J&K government severely hit the Punjab poultry producers, he added. “Moreover, as there is no such tax being charged by the Punjab government, farmers from other states are free to do trade in Punjab and poultry farmers of the state are loser at both ends” added Sehmbi. Besides, the exorbitant rates allegedly being charged by the hatcheries for the one-day-old chicks, the farmers have also decided to put 10-day-long self imposed ban on the purchase of such chicks from October 20 to 30. “We want to give jolt to hatchery owners, who, with their alleged manipulation, are charging Rs 32 per chick, which otherwise should not exceed Rs 14 per chick,” said Sarbjit Singh Randhawa, general secretary of the association.