The Tribune, Chandigarh, India

	India pushes for FTAs with Thailand, Indonesia * Negotiations with Indonesia and Thailand to sign Comprehensive Economic Cooperation Agreements have been fast-tracked * India is now engaging five countries in the region in bilateral trade Ruchika M. Khanna On Board PM's Aircraft Tribune news service India will soon start negotiations for free trade pacts with Thailand and Indonesia. The country has also managed to garner support from most Asean nations for securing bilateral pacts with ‘Asean plus Six’ (which include China, South Korea, Australia, New Zealand and Japan, besides India). With this Prime Minister Manmohan Singh has managed to give a major boost to India’s economic relations with its South East Asian neighbours. As he embarked on the last leg of his Asia tour to participate in the Asean Summit and the East Asia Summit in Hanoi, the commercial capital of Vietnam, he has managed to win many friends and hard sell India as a major investment destination. Sources said India has started fast-track negotiations with the governments of Indonesia and Thailand to sign Comprehensive Economic Cooperation Agreements. The government-level delegations from both sides will soon start bilateral talks and representatives will shortly meet in New Delhi. The Association of South East Asian Nations (Asean) comprises Myanmar, Cambodia, Laos, Vietnam, Singapore, Malaysia, Thailand, The Phillippines, Brunei and Indonesia. India has already signed a CECA with Singapore and agreements with Japan and Malaysia on completion of negotiations for bilateral trade pacts have been signed during this trip of the Prime Minister. By initiating a dialogue for similar pacts with Thailand and Malaysia, India is engaging five countries in the region in bilateral trade. Vietnam, too, has a free market economy status, while Cambodia and Laos are being engaged to cooperate through the Mekong Ganga initiative. “The CEPA with Japan and CECA with Malaysia is a clear positive push to enhance India’s engagement in the region,” said Latha Reddy, Secretary East, ministry of external affairs. This becomes very important as it now sets the ball rolling for India getting into the same league as early starters — China, Korea and Japan, for signing a Comprehensive Economic Partnership with East Asia (CEPEA) with the 10 Asean countries plus six. Even in the Asean plus Six, India now gets the support of Japan with the signing of the CEPA. Commerce and Industry Minister, Anand Sharma, said that signing of the CEPA with Japan will ensure that the trade between India and Japan zooms to $ 20 billion by 2015. “While India stands to gain a market in Japan for the generic medicines and textiles, while Japan can now be able to invest in infrastructure and technology sector,” he said.
	IKEA seeks 100% FDI Ruchika M. Khanna/TNS On Board the Prime Minister’s Flight, October 28 India is considering Swedish home furnishing giant IKEA’s proposal for a 100 per cent foreign direct investment in single brand retail. A consultation paper on the issue has been placed in public domain. Union Commerce Minister Anand Sharma, who is accompanying the PM to Vietnam for the ASEAN-India and the East Asia summit, told reporters that the government is now seeking the views of consumers, farmers, traders bodies and industry groups on whether to allow an increase in FDI to the retailers. “I believe in a policy that is dynamic, inclusive and transparent,” he said. He said IKEA group, which has sought a 100 per cent FDI, to set up their home furnishing stores across India, is already sourcing 30 per cent of its goods from India. “India needs to build the entire value chain from backend to cash and carry and an increase in FDI will help us build that. We are the largest producers of food grains and the second largest producers of fruits and vegetables. But because of lack of infrastructure in post harvest technology, we lose 35 per cent of our produce. With increased participation of foreign companies in these areas, we can solve this problem and bring more value,” he said. Ikea sources around €500 million worth of textiles and other products from India annually and aims to augment this value up to €one billion in next three to four years Ikea as well as other retailers like Walmart have urged the Indian government to relax its strict rules on FDI in single brand retail. Tough foreign investment rules in India restrict foreign retail companies to just single-brand outlets and are only permitted in to wholesaling. This is a bid to protect the local, mom and pop (family-run stores) in the country. Talking about increasing FDI in the defence sector from the present 26 per cent, Sharma said though the increase in FDI will benefit both the defence PSUs and private sector, a consultation paper is being made on this issue. “Whatever will be agreed upon during this consultation in the Defence Ministry, will also be my consensus for allowing higher FDI on a case to case basis,” he added.
	MNP to keep its date with November 1 Girja Shankar Kaura Tribune News Service New Delhi, October 28 Determined to bring in mobile number portability from November 1, the Department of Telecommunications (DoT) has asked one of its two partners in the venture, Syniverse Technologies, to go ahead with partial roll out. Facing problems in the roll out as a result of Foreign Investment Promotion Board (FIPB) delay in the clearance of the Telecordia, a US-based company for operating in India, DoT has asked its second partner to implement the roll out. The Tribune had earlier reported that while there was a possibility of the MNP roll out delayed to next year, as a result of the delay in the FIPB clearance, DoT may go ahead with the service by asking Syniverse Technologies to begin the process. DoT had given the telecom operators a final deadline of October 31. However, there was a question mark over the same with the Telecordia proposal getting stuck with the FIPB. Although FIPB had earlier cleared the Telecordia proposal, the decision was reversed later as the Ministry of Home Affairs raised security concerns related to the US-based company. The home ministry’s objection was that Telecordia managed number portability in Pakistan too. Subsequently, Telecordia filed an appeal with the FIPB against cancellation of approval. Telecommuncation Minister A Raja has also confirmed that the much-awaited MNP service that allows subscribers to change operators, but retain the mobile number will be available from November 1. Speaking on the sidelines of BSNL awards ceremony, the minister said the official announcement of MNP availability will be made on November 1, followed by a first phase rollout in 11 circles in north and west India from third week of November. Raja said, “MNP would be partially operational from November 1. We wanted to inaugurate it in Haryana”. Officials said that Syniverse Technologies will implement the first phase of MNP which will be completed by December 20. Trial runs in Haryana are expected to begin by November 8. Incidentally, DoT had informed the telecom operators in the country that if they were not ready with the infrastructure for the roll out of MNP by October 31, they would not be allowed to roll out any new services.
	Bugatti drives in Veyron at Rs 16 crore Tribune News Service Mumbai, October 28 It is the most expensive car to be sold in India, ever. Bugatti today unveiled the Veyron 16.4 Grand Sport priced at Rs 16 crore at its Exclusive Motors Showroom in New Delhi. Among the materials used to build the hand-crafted Bugatti Veyron 16.4 Grand Sport include titanium, carbon fibre apart from magnesium and aluminium. The Grand Sport’s body structure consists of a carbon fibre monocoque suspended from an aluminium frame in the front and a carbon fibre/stainless steel frame in the rear, the company said. Bugatti Veyron 16.4 grand sport can reach the top speed of 407 km/h and speed of 360 km/h with the roof off. On a rainy say, it has innovative folding roof stored in the luggage compartment which can be opened up like an umbrella at any time. When this folding roof is in place, the car can travel at up to 130 km an hour. The doors of the new Bugatti Veyron 16.4 Grand Sport are made of carbon fibre, and house an integrated longitudinal beam. Along with moisture-resistant, backstitched leather, a range of new equipment features has been added to the interior of Bugatti Veyron 16.4 grand sport, including a reversing camera with 2.7-inch monitor integrated in the rear-view-mirror and the “Puccini” sound system with digital signal processor.
	RPower places $10-bn order Tribune News Service New Delhi, October 28 Reliance Power has placed order a $10-billion order for supply of power equipment with Shanghai Electric Group (SEC). The company would use the equipment, to be supplied over a decade, for its proposed 30,000 MW capacity power plants (42 coal-fired generators of 660-megawatt each). A company statement added the order includes 42 units of 660 MW, each using environmentally friendly, super-critical technology. The projects will be financed by commercial banks, export credit agencies and financial institutions in China. Memorandums of Understanding worth around $12 billion were signed today with leading Chinese Banks such as Bank of China, China Development Bank (CDB), Industrial and Commercial Bank of China (ICBC), and The Export-Import Bank of China (C-EXIM) to finance Chinese exports. SEC will consider setting up of manufacturing facility in India including for super critical technology based power plant equipments. This includes 30,000 MW capacity of Boiler, Turbine, Generator Packages (BTG) for its coal-based power plants. Reliance and SEC announced that they will set up a ‘Centre of Excellence’ which will also work toward deployment of Ultra-Super-Critical Technology being developed by SEC in India. With this order from Reliance Power, SEC will become the largest global supplier of BTG packages in India. A strategic cooperation agreement was signed between the two companies today. SEC will provide the support for the BTG packages. The signing ceremony at Shanghai was attended by Anil D Ambani, Chairman, Reliance ADA Group, Mr Xu Jainguo, Chairman of Shanghai Electric Group and senior officials of Shanghai government. JP Chalsani, CEO Reliance Power said “The strategic cooperation between Reliance Power and leading global supplier like SEC will enable faster project execution of our Projects. SEC’s after sales support will ensure higher availability and assured maintenance support through the operating life of the our projects.”
	Holiday Inn Express to make its debut Tribune News Service New Delhi, October 28 IHG (InterContinental Hotels Group), the world’s largest hotel group by number of rooms, has tied-up with Delhi based real estate developer, Amrapali Group for the management of six new hotels. This strategic relationship marks the launch of Holiday Inn Express in India - one of the fastest growing hotel brands in the limited service category, opening on average two hotels a week globally. IHG and the Amrapali Group will develop six hotels between the Holiday Inn Express and Holiday Inn brands in 3-5 years in Noida, Indore, Jaipur, Kochi and Patna. Jan Smits, MD, IHG Asia Australasia, said, “With strong economic growth, an expanding middle class, demand for the mid-market and limited service segments will grow exponentially. Holiday Inn and Holiday Inn Express will address the need for branded, high-quality and value-based hotels in these segments. These six hotels add momentum to our India pipeline, which now stands at 45 hotels. Nearly 70 per cent of this pipeline is with the Holiday Inn brand”. Anil Kumar Sharma, CMD, Amrapali Group said, “India’s need for world-class hotels consistent with rapid economic growth make this an opportune time for us to expand our hospitality portfolio.”
	Religare Technova completes demerger Tribune News Service New Delhi, October 28 Religare Technova Ltd (RTL), an integrated global IT products and solutions group listed on the BSE, today announced completion of the de-merger of its global Banking, Financial Services & Insurance (BFSI-led) products business (erstwhile Religare Technova Global Solutions Ltd) from its Healthcare IT businesses. Religare Technova with a team strength of over 400 people in 25 offices with presence across more than 20 countries will now sharply focus on its core of IT products and solutions for the BFSI segment. The company announced a recast of its global management team and its board, with Ralph Horne now being appointed as Global CEO & MD.
	Sept infra output up 2.5% New Delhi, October 28 India's infrastructure sector output grew 2.5 per cent in September from a year earlier, slower than the upwardly revised annual growth of 3.9 per cent in August, government data showed on Thursday. In the first half of the current financial year that ends in March 2011, output rose 4.0 per cent compared with 4.5 per cent a year ago. The infrastructure sector accounts for 26.7 perc ent of India's industrial output. India's industrial output growth dropped to 5.6 per cent in August from a year earlier. India expects to invest about $500 billion in infrastructure, mainly in power, telecommunications, roads, railways and oil pipelines in five years to end-March 2012. The Indian government plans to double spending on infrastructure to $1 trillion in its next five-year plan, which runs from April 2012.
	Trade in currency options begins today Mumbai, October 28 The National Stock Exchange (NSE) and the United Stock Exchange (USE) will go live with trading in currency options in the dollar-rupee pair from Friday, they said in separate press releases. Both had received approval from the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) to launch options trading with the two regulators playing watchdog. The NSE is offering options in the dollar-rupee pair with three consecutive monthly contracts and one quarterly contract expiring in March. The USE, on the other hand, is offering options for expiry in the three near months and three quarters going ahead, allowing users the flexibility to take price insurance over a longer time frame. The contracts will expire at 12 pm, two days prior to the last business day of the expiry month and each lot size would be worth $ 1,000. — Reuters
	Corporate Results PNB Q2 net profit rises 15.9% New Delhi, October 28 Punjab National Bank today reported 15.9 per cent growth in net profit to Rs 1,075 crore for the second quarter ended September 30 from Rs 927 crore in the year-ago period, PNB CMD KR Kamath said. Total income increased18.1 per cent from year-ago period to Rs 7,174 crore. For the first half of the current fiscal, PNB's net profit grew Rs 21.8 crore to Rs 2,143 crore, from Rs 1,759 crore in the same period last fiscal. Total income grew by 14.6 per cent from year-earlier to Rs 14,037 crore for the April-September period of this year. On September 30, net interest margin stood at 3.99 per cent, while gross non performing assets was at 1.91 per cent. Total business of the bank rose to Rs 4,82,159 crore, from Rs 3,94,382 crore, in the second quarter of this fiscal- registering 22.3 per cent growth. ZEE net at Rs 216.3 cr Media conglomerate Zee Entertainment Enterprises (ZEE) today posted a consolidated net profit of Rs 216.3 crore for the quarter ended September 30. This is against a consolidated net profit of Rs 111 crore for the same period last year, ZEE said in a statement. Tata Comm posts loss of Rs 213.50 cr Tata Communications today reported a consolidated net loss of Rs 213.50 crore for the quarter ended September 30. The Tata Group company had posted a net loss of Rs 155.54 crore for the same period last year. The company's total income, however, increased by 8.82 per cent to Rs 2,960.66 crore in Q2, FY'11, from Rs 2,720.48 crore in the same quarter last fiscal, Tata Communications said in a filing to the Bombay Stock Exchange. Sun TV network PAT grows 28% Sun Television Network today reported a 28 per cent growth in the profit after tax (PAT) to Rs 167.44 crore for the quarter ended September 30, 2010. The Chennai-headquartered television broadcaster reported a PAT of Rs 130.56 crore in the same period of the previous year, a company statement here said. Cairn India profit trebles Cairn India today reported three-fold jump in its net profit to Rs 1,585 crore in the quarter ended September 30, as completion of a pipeline led to jump in crude oil sales from its profilic Rajasthan block. Cairn reported a net profit of Rs 1,585.08 crore for the September quarter compared with Rs 469.51 crore net income in the same period a year ago, the company said. ONGC Q2 net up 6% Indian state-run explorer Oil & Natural Gas Corp reported 5.9 per cent rise in quarterly net profit, on higher earnings from crude sales, aided by an increase in gas prices. ONGC said net profit rose to Rs 5,389 crore ($1.2 billion) for its fiscal second quarter ended September 30, from Rs 5,090 crore a year earlier. A Reuters poll of 12 brokerages had on average expected net profit of Rs 5,850 crore. ONGC is required to partially subsidise fuel sales to state-run retailers, which in turn sell fuel at state-set, below-market prices. The government, which deregulated gasoline prices in late June, had said diesel prices too would be eventually freed. — Reuters