New Delhi, August 16
With the domestic auto market going on a downhill slide, Tata Motors and Maruti Suzuki have cut production as the automobile industry braces up for a single digit sales growth this fiscal.

Car makers, however, are hoping that a slew of upcoming new launches, including MSI's Swift, Honda's new Jazz and Brio, Volkswagen's Jetta, and the recently introduced Beat diesel by General Motors India will help revive the market.

"Our production is exactly as per demand. We keep in mind the need to keep inventories at both the company and dealers' end in balance," a Tata Motors spokesperson said.

If there is a requirement for adjustment in production, the company does it. At the moment there is a slowdown in demand, he added, but did not specify details of the cut.

In July, Tata Motors' car production was down 26.96 per cent. Domestic car sales were also down 43.13 per cent to 13,997 units.

Last week, Maruti Suzuki India had said it has cut production of most of its models, including the best selling Alto, by 5 per cent, during this month due to slump in demand in the domestic market.

MSI Managing Director and CEO Shinzo Nakanishi had said the company reduced production of all the models, except Swift and DZiRE in August due bad market conditions.

In July, MSI's car production was at 72,587 units, down by 21.08 per cent as compared to the same month last year, mainly due to non-production of Swift.

While admitting that the market is on a downhill drive, other firms like General Motors India, Honda Siel Cars India and Hyundai Motor India, however, have not taken such steps but are hoping that new launches will help in recovery of sales.

"The industry is in a bad shape. Yet, there are a lot of new launches happening. Any new launch gives an impetus to the market and that should help the market. Moreover, the festive season is round the corner and we are hopeful that the demand will revive," Honda Siel Cars India (HSCI) Senior Vice- President (Sales and Marketing) Jnaneswar Sen said told PTI.

This week Maruti is launching its new Swift, while Volkswagen and HSCI are also introducing new versions of sedan Jetta and hatchback Jazz, respectively in the market.

General Motors India (GMI) Vice-President P Balendran said a lot of uncertainties like high interest rate and fuel prices were having a negative impact on auto sales.

A Hyundai Motor India Ltd (HMIL) official said the company is not contemplating any move to reduce production at present.

Sen of HSCI also said the company is maintaining production at 5,000 units a month and there were no plans to change it at the moment . — Agencies

Google is paying a massive 63 per cent premium to gain access to one of the mobile phone industry's largest patent libraries. The company had been under pressure to build a patent portfolio after losing out to Apple, Microsoft and others in a recent auction of Nortel's assets.

New Delhi, August 16
To reduce the growing presence of the Chinese telecom equipment makers in the country, the Department of Telecom (DoT) has been asked to give 100 per cent preference to domestic manufacturers in the government funded projects.

The advice has been given by the Working Group constituted by the DoT to prepare a roadmap for the telecom sector in the 12th Five-Year Plan.

The Working Group said, “100 per cent preference for India products in government procurement and projects funded by government and USOF should be given”.

The Working Group recommendations are in line with the suggestions earlier made by telecom sector regulator Telecom Regulatory Authority India (TRAI).

In April last TRAI had recommended preferential sourcing of locally produced telecom equipment and other components. It said that use of indigenous products in Indian telecom networks should be increased from just 3 per cent in 2009-10 to 80 per cent by 2020.

It had also proposed giving of incentives to the telecom operators to source Indian products, as well as penalise them in case of non-compliance with the proposed sourcing norms. 

Chandigarh, August 16
The scheme for management of land under lease arrangement, in case of default in loan repayment, may not take off in Haryana ay time soon. With the matter now being referred to Reserve Bank of India, Mumbai, it may be a while before the scheme is implemented.

RBI officials stated this during the State Level Bankers Committee meeting held here last week. They said that a final decision on implementing the scheme will be taken only after the matter has been decided by the RBI. This means that farmers will have to continue keeping their land as collateral for availing farm credit, and in case of default, the bank can go ahead and auction his land.

During this meeting, officials of the Haryana government proposed that the banks implement this scheme on a pilot basis.

They also recommended that the bank could itself bid and manage the land, or a separate corporation could be set up by the government to manage these lands under lease arrangements. However, a final decision will be taken only after the recommendations have been received from the RBI.

The Haryana government had mooted a proposal last year that the land of the farmer held as collateral should not be auctioned by the bank.

Rather, the bank should manage the land under lease arrangement, under which 50 per cent income may be used to realize the dues of the bank and remaining 50 per cent should go to the farmer. In fact, this scheme is already being implemented in Haryana State Cooperative Apex Bank and Haryana State Cooperative Agriculture and Rural Development Bank. 

New Delhi, August 16
Inflation eased in July although the still-high headline number and persistent price pressures in manufactured goods raised the odds that policy will have to stay tight in the economy despite the rising risks to growth.

The high inflation print still has most economists betting that India's central bank will have to extend what has been an aggressive 18-month policy tightening spree.

But a slew of weak data on consumer spending and bank credit coupled with the heightened possibility of a slump in the developed world could upset those odds.

The Reserve Bank of India (RBI) has raised rates 11 times since March 2010 to combat high inflation, which is seen as dragging down growth from the government's projection of 8.5 percent for the current fiscal that ends in March 2012.

RBI Governor Duvvuri Subbarao acknowledged those risks last Friday, but said it was crucial that inflation and inflationary expectations be brought down in Asia's third-largest economy -- a clear indication that the central bank may continue to raise rates at its policy review.

"With inflation over 9 percent and growth above 8 percent, the current situation indicates that the central bank will most likely hike rates by 25 basis points on Sept. 16," said Sujan Hajra, chief economist at Anand Rathi Securities in Mumbai.

"Any turn in monetary policy after that will be decided based on actual trajectory of growth and inflation," Rathi said. The benchmark 7.80 percent 2021 bond yield fell 1 basis point after the data to 8.32 percent, while the 30-share main share index remained unchanged.

The 5-year overnight indexed swap rates was steady at 6.91 percent and the 1-year was also unchanged at 7.80 percent, dealers said.

The wholesale price index, India's main inflation gauge rose 9.22 percent in July, almost in line with the median forecast for a 9.20 percent rise in a Reuters poll.

Manufacturing inflation quickened to 7.49 percent in July from 7.43 percent in the previous month, adding to fears that inflation is deeply entrenched in the economy as manufacturers still retain some pricing power.

Top policymakers voiced concerns on high inflation 
in India.— Reuters

New Delhi, August 16
The government today informed Parliament that banks have been told to redress customer complaints of ATMs not dispensing cash despite debiting the amount within seven working days, and pay a compensation at the rate of Rs 100 per day thereafter.

"The time limit for resolution of customer complaints by the issuing banks has been reduced from 12 working days to 7 working days from the date of receipt of customer complaint," the Minister of State for Finance Namo Narain Meena said in a written reply in the Rajya Sabha.

The Minister said this while answering a question with regard to erratic functioning of ATM machines.

"Failure to re-credit the customer's account within 7 working days of receipt of the complaint shall entail payment of compensation to the customer at the rate of Rs 100 per day by the issuing bank", the Minister said referring to the RBI guidelines. The customer, he added, will be entitled to the compensation, provided the claim is lodged within 30 days of the date of transaction.

The RBI has been receiving complaints from the bank customers regarding non-disbursement of funds from ATMs despite debiting of the same from the accounts. The banks are taking considerable time in reimbursing the amount involved in account of the card holder in such failed transactions.— PTI

Chandigarh, August 16
Muthoot Finance, is planning to raise Rs 1,000 crore through a public issue of secured redeemable non-convertible debentures.

George M Alexander, director of the company, said that the NCD issue with three investment options and effective yield of up to 12.25 per cent per annum, will open on August 23 and close on September 5. He said that the face value of each NCD is Rs 1,000 and the minimum application is for five NCDs (Rs 5,000) and in multiples of one NCD thereafter.

“The NCDs are proposed to be listed on the NSE and the BSE, and funds raised through this issue will be utilized by the company for various financing activities, including lending and investments,” he said.— TNS 

New Delhi, August 16
NIIT Technologies today acquired Spainish software services firm Proyecta Sistemas de Informacion SA for for $7 million.

"We will end up paying 70 per cent of the revenue (for acquisition) which is USD 7 million," Arvind Thakur, CEO, NIIT Technologies, said. He said the company had revenue of $10 million in last financial year and has EBIDTA (Earnings Before Interest, Taxes, Depreciation and Amortisation) of 10 per cent.

"From today we will start consolidating revenue of Proyecta with NIIT Technologies," Thakur added.

The acquisition enables NIIT Technologies to enhance its European footprint with Proyecta's experience in travel and financial services segments.— TNS