N A T I O N

2G Spectrum Verdict
Established cos to benefit: Analysts
Mumbai, February 2
Mobile phone companies who were in business prior to the January 2008 auction of 2G spectrum are expected to benefit from today’s Supreme Court verdict which cancelled the controversial allocation of licences by former telecom minister A Raja. “Companies like Vodafone, Bharati Airtel and Idea who won licenses prior to 2008 will benefit from today’s Supreme Court verdict,” says Abhay Pendharkar, a telecom industry analyst with a Mumbai brokerage.

‘We followed NDA policy on 2G’
New Delhi, February 2
While Opposition parties expectedly tore into the UPA government after it was indicted by the Supreme Court for its 2G spectrum policy, the ruling combine today chose to brazen it out and instead blamed the NDA regime for formulating the faulty first-come, first-serve policy that was followed by former Telecommunications Minister A Raja.
Kapil Sibal, Telecommunications Minister

PM, Chidambaram were in the loop: BJP
New Delhi, February 2
As the Supreme Court today quashed the 122 telecom licences issued by the now jailed former telecom minister A Raja, the BJP demanded accountability from Prime Minister Manmohan Singh and the then Finance Minister P Chidambaram, saying the two knew of the goings-on but didn’t act to prevent losses.

Cancellation could spell bonanza for govt: Experts
New Delhi, February 2
The cancellation of 122 telecom licences by the Supreme Court today could well spell another bonanza for the government after its over Rs one lakh crore haul in the auction of the third-generation 3G Spectrum and Broadband Wireless Access in 2010.

• THE CHRONOLOGY

Kalyan gave Ponty a foothold, Maya made him fly Lucknow, February 2 Rivalries arising from the meteoric rise of liquor baron Ponty Chadha during the present Mayawati regime may have prompted tip-offs to the Income Tax (I-T) Department, but if the taxmen wanted to count money, they could be long at it, given the seemingly endless empire of cash-generating businesses the man owns across states.   Policemen checking a bag with currency notes found in the safe at Ponty Chadha’s office during a raid on Thursday. — PTI

A known player in film distribution
Chandigarh, February 2
For Gurdeep Singh Chadha, better known as Ponty, political affiliations have never been a hindrance in expanding his business interests in Punjab, which took off not with liquor but Bollywood films.

Diversified interests made him a baron
Wave Inc., the integrated business group of Chadha and his two brothers, includes two distilleries - one at Kiri Afgana village in Gurdaspur and another at Randhawa village in Hoshiarpur. He has a Coca Cola bottling plant, "Wave Beverages", at Amritsar, besides the upmarket "Westend Mall" in Ludhiana.

Govt plans law for children up to 5
New Delhi, February 2
The government’s first draft policy on early childhood care and education (ECCE) proposes a comprehensive law to cover nutritional, developmental and educational aspects related to children up to five years of age.

Krishna to visit China next week
New Delhi, February 2
Even as reports quote the US intelligence as saying that the Indian Army is preparing for a “limited conflict” with China, External Affairs Minister S M Krishna is leaving for Beijing on February 7.

2G Spectrum Verdict
Established cos to benefit: Analysts
Shiv Kumar/TNS

Mumbai, February 2
Mobile phone companies who were in business prior to the January 2008 auction of 2G spectrum are expected to benefit from today’s Supreme Court verdict which cancelled the controversial allocation of licences by former telecom minister A Raja. “Companies like Vodafone, Bharati Airtel and Idea who won licenses prior to 2008 will benefit from today’s Supreme Court verdict,” says Abhay Pendharkar, a telecom industry analyst with a Mumbai brokerage.

“Subscribers may simply migrate to the older players if the companies whose licences were cancelled do not bag spectrum afresh. Some spectrum may also be freed up benefiting the established companies,” Pendharkar said. Other analysts felt that the exit of some players could result in quicker consolidation of the mobile phone market thereby allowing established operators to hike tariffs.

Thus the stock markets gave the thumbs up to Bharati Airtel which gained 7 per cent. Though nine licences of Idea have been cancelled, the company was yet to roll out networks in these areas, analysts said. The company stood to gain from the exit of players in other cities where Idea has a strong presence, it is felt. The stock gained 2.68 per cent to close at Rs 95.85 on the BSE.

On the other hand Unitech, promoters of Uninor whose license was cancelled today, fell 14 per cent to Rs 23.20 before recovering to close at Rs 25.10. Other losers were DB Realty, promoter of Etilasat DB and Videocon.

Shares of Reliance Communications also closed 3.54 per cent lower though the company clarified that today’s verdict by the Supreme Court would not affect it. RCOM said in a statement that licences to it were issued in 2001.

On the other hand, some of the biggest losers are looking to salvage whatever they can from the investments they made in the Indian telecom business. Norway’s Telenor, which along with Unitech promoted Uninor, said it was shocked at the Supreme Court verdict to scrap the licences.

Uninor which lost all its 22 licences said it was looking to continue operations in India. “We will study the order in detail and exercise all options available to ensure that Uninor continues to operate in India,” Uninor said in a statement. “We also expect the authorities to ensure that our 36 million customers, 17,500 workforce and 22,000 partners are not unjustly affected,” the statement added

A number of observers also felt that today’s verdict could hurt investors’ sentiment. “I personally feel that this will create a lot of discomfort for investors.....it looks to be quite a setback to the industry,” Ajay Sharma, director, Associated Chambers of Commerce and Industry of India (ASSOCHAM), said. He also added that financial institutions have an exposure of more than $20 billion of loans extended to some of the companies whose licences were cancelled today.

‘We followed NDA policy on 2G’
Sibal blames Raja, defends PM & Chidambaram
Anita Katyal
Our Political Correspondent

New Delhi, February 2
While Opposition parties expectedly tore into the UPA government after it was indicted by the Supreme Court for its 2G spectrum policy, the ruling combine today chose to brazen it out and instead blamed the NDA regime for formulating the faulty first-come, first-serve policy that was followed by former Telecommunications Minister A Raja.

PM, Chidambaram were in the loop: BJP
Aditi Tandon/TNS

New Delhi, February 2
As the Supreme Court today quashed the 122 telecom licences issued by the now jailed former telecom minister A Raja, the BJP demanded accountability from Prime Minister Manmohan Singh and the then Finance Minister P Chidambaram, saying the two knew of the goings-on but didn’t act to prevent losses. The party also dared UPA chief Sonia Gandhi and her son Rahul to speak up.

“Be it the PM or the then Finance Minister, both knew of the irregularities in Spectrum allocation. Yet, no pre-emptive steps were taken. The PM must own accountability and P Chidambaram must quit,” BJP’s national spokesperson Ravi Shankar said after the UPA fielded Telecom Minister Kapil Sibal to answer queries after the pronouncement of court orders.

Tearing into Sibal’s defence that the PM and Chidambaram had no role in the matter and the PM would have acted had he known anything, the principal opposition party cited evidence to show otherwise.

It rejected the UPA’s advice of an apology for the losses after Sibal today argued that the SC had actually castigated as flawed the NDA’s first come first served telecom licence policy, which the UPA simply followed. “If that was the case, why didn’t the SC cancel any licence issued by the NDA? The question is not of the policy. The question is of its manipulation to suit the favourites and of the manipulation of cut-off dates, of ignoring the advice of auctioning Spectrum,” the BJP said.

It cited 2001, when India had four million mobile subscribers and 2008, when it had 350 million. “When mobile telephony had expanded, why did the UPA insist on 2001 prices in 2008? Will the PM answer why, on January 10, 2008, when the licences were given, only 45 minutes were allowed to applicants to submit demand drafts?” asked Prasad.

Cancellation could spell bonanza for govt: Experts
Girja Shankar Kaura/TNS

New Delhi, February 2
The cancellation of 122 telecom licences by the Supreme Court today could well spell another bonanza for the government after its over Rs one lakh crore haul in the auction of the third-generation 3G Spectrum and Broadband Wireless Access in 2010.

Although exact estimates were not available as the government would take a decision on the auction entry price for the over 400 MHz of 2G Spectrum made available following the Supreme Court order, experts said it could spell another windfall for the national exchequer. Earlier last year, telecom regulator TRAI had recommended fixing the price for 6.2 MHz of pan-India start-up 2G Spectrum at Rs 10,972.45 crore, more than six times the cost of Rs 1,658 crore at which the licences were given to the startup telecom firms during the tenure of former Telecom Minister A Raja in January 2008.

Experts said with the second generation 2G Spectrum being more precious for the telecom operators as it remains largely the bread and butter for them as a result of all voice calls being made on this Spectrum, the auction process could fetch the government an amount similar to or higher than what it earned in the 3G auction.

The operators, both new and old, would be looking to garner these airwaves and it could also lead to mergers and acquisitions, experts said. As such, the price for the Spectrum may shoot higher than the pricing in the 3G auction. A DoT official said fixing of the reserve price would be an important aspect and that requires deliberation. It can’t be Rs 1,659 crore and would be higher than that. But what exactly the figure would be would have to be deliberated upon and TRAI recommendations could well play a major role.

THE CHRONOLOGY

Kalyan gave Ponty a foothold, Maya made him fly
Shahira Naim/TNS

Lucknow, February 2
Rivalries arising from the meteoric rise of liquor baron Ponty Chadha during the present Mayawati regime may have prompted tip-offs to the Income Tax (I-T) Department, but if the taxmen wanted to count money, they could be long at it, given the seemingly endless empire of cash-generating businesses the man owns across states.

the man who made RIght contacts

Ponty denies Seizure of Rs 100 cr from MALL

A known player in film distribution
Prabhjot Singh/TNS

Chandigarh, February 2
For Gurdeep Singh Chadha, better known as Ponty, political affiliations have never been a hindrance in expanding his business interests in Punjab, which took off not with liquor but Bollywood films.

Before he entered Punjab as a major player in the liquor trade in the late 90s, Ponty was a known player in film distribution. In partnership with Ludhiana-based Raju Narula, in whose association he later also turned into a film producer, Ponty used to distribute films in Punjab, with Jalandhar as his headquarters. Though his main business at that time too was liquor and some sugar mills in Uttar Pradesh - started by his father Kulwant Singh Chadha in the early '60s - he had his mind set on doing business with Bollywood.

When the SAD-BJP government came to power in 1997, it started looking for a big liquor group that could break the monopoly of the then all-powerful liquor conglomerate. It was Raju Narula who introduced Ponty to some senior SAD leaders. He just needed a slight entry, and Ponty soon monopolised not only retail but also the wholesale liquor trade.

He also has close associations with some top Sikh leaders holding key positions in the Delhi Sikh Gurdwara Management Committee (DSGMC), which provided him links to the Congress.

In 2005, Ponty Chadha produced "Jo Bole So Nihal", featuring Sunny Deol and Anoop Bakshi. His interest in Bollywood also turned him into a pioneer of the now-ubiquitous multiplexes. Ponty is also credited with the introduction of Platinum Lounges at his multiplexes, which were on a par with similar five-star facilities at international airports.

His first multiplex, Centrestage Mall in Noida, is spread over 3.5 lakh sq ft. After Uttar Pradesh, his next destination was Punjab, where, after monopolising the liquor trade, he ventured to multiplexes, real estate, industry and entertainment in a big way.

He has a house in Sarabha Nagar, Ludhiana, and some time ago he gifted Elevate, the hottest night joint in the NCR, to his son Monty Chadha.

Ponty may have gained a foothold in the Punjab territory through the Akalis, he was able to secure full support from the subsequent Congress government too in 2002. Such was the "cooperation", that the annual auction of liquor vends would not begin till he reached the venue. It was at his instance that the norm of clubbing vends was started - either pushing out smaller players, or forcing them to join as partners.

The liquor baron is also known for riding roughshod over rules. In December last year, his unit AB Grains Spirits in Gurdaspur was sealed because all the sugar mill's effluents were being discharged in the Beas river. The mill had operated without an effluent treatment plant during the previous cane crushing season too. The unit was allowed to restart only after a treatment plant was made operational.

Diversified interests made him a baron
Ruchika M. Khanna/TNS

Wave Inc., the integrated business group of Chadha and his two brothers, includes two distilleries - one at Kiri Afgana village in Gurdaspur and another at Randhawa village in Hoshiarpur. He has a Coca Cola bottling plant, "Wave Beverages", at Amritsar, besides the upmarket "Westend Mall" in Ludhiana.

The Gurdaspur distillery, AB Grain Spirits, has an annual capacity of producing 5.98 crore proof litres of liquor, while the one in Hoshiarpur can produce 2.99 crore proof litres.

The group is also in the process of setting up an integrated township in Sector 85 of Mohali, a 264-acre residential project called Fairlakes Country, under a company named Wave Estate.

In his liquor trade, the brands manufactured by his distilleries were sold at all vends in the state, and the prices of liquor also shot up. It was only with the introduction of a new liquor policy by Punjab in 2006 that his monopoly was broken. But by then, Ponty had already diversified into real estate in Punjab.

Sources say that after the Akalis returned to power in 2007, Ponty again tried to mend fences with them, but failed. Owing to his proximity to top DSGMC leaders in Delhi, he is said to have played a major role in the recent SGPC elections by supporting splinter Akali groups.

Govt plans law for children up to 5
Aditi Tandon/TNS

New Delhi, February 2
The government’s first draft policy on early childhood care and education (ECCE) proposes a comprehensive law to cover nutritional, developmental and educational aspects related to children up to five years of age.

The policy, finalised after four regional consultations with stakeholders across the country, also, for the first time, talks of rating anganwari centres according to the services being delivered by them and the results being achieved. Anganwaris are proposed to be graded on the basis of services they currently offer - supplementary nutrition, immunisation, health check-ups, referrals, pre-school non-formal education and nutrition education.

“The idea is to bring in highest possible standards and grade anganwaris on the scale of their services. We need to encourage competitiveness in the field of pre-school education and nutrition, which is why the policy talks of rewarding the best anganwaris. The policy will also lay down accreditation and curricular standards for other pre-school facilities so that parents know which ones stand where,” top officials in the Ministry of Women and Child Development, drafting the policy, told The Tribune.

In February, the policy will be put in the public domain for comments following which national-level consultations will be held to chalk out the way forward.

A key takeaway from the policy is the fact that integrated development of a child up to 5 years is a non-negotiable concept and must be addressed as a whole. For this purpose, the policy talks of a comprehensive law to deal with pre-school children, besides laying down standards for services and setting out a national curricular framework for children up to the age of 5 years.

“Towards the objective of integrated child development, we are proposing the possibility of a regulatory framework and a comprehensive law that deals with all aspects of early childhood care and education. The law should treat the child as one entity in need of various services - from nutrition to cognition and stimulation. You can’t have different authorities handling different services. It’s time to deliver these services as a bouquet. National consultations will be held to shape the contours of this proposal and see how best they can be realised,” ministry sources said.

The idea behind suggesting a single law for early child care stems from the plethora of new laws that seek to treat children from their respective prisms.

Policy matter

• Policy finalised after four regional consultations with stakeholders across the country
• It talks of rating anganwari centres according to services they deliver
• Will be put in the public domain for comments after which national-level consultations will be held to chalk out the way forward

Krishna to visit China next week
Ashok Tuteja/TNS

New Delhi, February 2
Even as reports quote the US intelligence as saying that the Indian Army is preparing for a “limited conflict” with China, External Affairs Minister S M Krishna is leaving for Beijing on February 7.

Official sources said Krishna would meet top Chinese leaders during the three-day visit in the run up to a major leadership transition in Beijing later this year. He is also expected to discuss with Beijing the schedule of Chinese President Hu Jintao who will visit India in March-end for the BRICS (Brazil-Russia-India-China-South Africa) Summit to be hosted by New Delhi.

Krishna’s visit is significant considering the state of uneasy relations between the two neighbours over a host issues, particularly Chinese increasing activities in Pakistan occupied Kashmir (PoK) and its growing assertiveness over the South China Sea.

However, like Prime Minister Manmohan Singh, Krishna is a strong votary of good-neighbourly and peaceful relations with China. The sense in the South Block is that a strong relationship between India and China presented a ‘win-win situation’ for both countries.

In his interaction with the media recently, Krishna had stated that India's relations with China were on a strong footing and one should not be "over-sensitive" about it. "India has strategic partnership with China. We have good bilateral relations with China," he said.

The Special Representatives (SRs) of the two countries recently held the 15th round of talks on the boundary dispute here in january. The meeting ended on a positive note with the two countries setting up a joint mechanism for consultation and coordination on the border issue.