B U S I N E S S

2G spectrum auction begins, demand sluggish in 1,800 MHz
New Delhi, February 3
Bidding in the third round of the telecom spectrum auction remained sluggish today in the 1,800 MHz segment with none of the circles excepting Gujarat evincing bidder’s interest, while the fight was tough for the 900 MHz spectrum in Delhi and Mumbai.

Tatas unveil two new cars, Ford launches Concept Figo
New Delhi, February 3
Ahead of Auto Expo 2014, there was a flurry of launches today with Tata Motors unveiling the sedan Zest and a premium hatchback Bolt and Ford putting on display the Ford Figo Concept, a compact sedan for the global B segment. Zest and Bolt are a result of collaborative design inputs from the three Tata Motors design studios in Pune, Coventry (UK) and Turin (Italy).

CNG prices to be cut by Rs 15, piped cooking gas by Rs 5
New Delhi, February 3
Natural gas prices for vehicles and households will fall sharply as the government today decided to increase domestic supply to these sectors which will also boost the use of gas as a cleaner fuel across other cities.

Ginger Hotels checks into Chandigarh
Chandigarh, February 3
Ginger Hotels from Roots Corporation — a subsidiary of Indian Hotels Company Limited — is targeting to become a 50-hotel chain by 2017. In the next three years, the group will have another 20 working hotels, besides having signed contracts for creating another 20 hotels across the country.

Govt may tinker with tax rates to boost economy: Chidambaram
New Delhi, February 3
The government today indicated that it may tinker with the excise duties and service tax rates in the interim budget in an apparent bid to boost economy but may not pursue key reforms legislations due to lack of political consensus.

2G spectrum auction begins, demand sluggish in 1,800 MHz
Tribune News Service

New Delhi, February 3
Bidding in the third round of the telecom spectrum auction remained sluggish today in the 1,800 MHz segment with none of the circles excepting Gujarat evincing bidder’s interest, while the fight was tough for the 900 MHz spectrum in Delhi and Mumbai. As the seven rounds of bidding was completed on the first day of the 2G spectrum auction, officials at the Department of Telecom (DoT) said the 900 MHz spectrum in Mumbai was particularly in the great demand with the incremental price for the eighth round of bidding increasing by Rs 23.66 crore.

As the bidding opened this morning with eight telecom players in the fray, Delhi emerged as the second most important city in the 900 MHz segment. Although there was just Rs 4.28 crore worth of incremental increase in the bidding price for the eighth round in Delhi, the bidding had already crossed Rs 428 crore at the end of the seventh round.

Bidding in the 900 MHz segment in Kolkata remained in negative demand much against the expectations.

In the 1,800 MHz segment, the bidding remained sluggish with most of the circles witnessing a negative demand. Only Gujarat emerged as the area of demand and with some incremental increase in the bidding price for the next round.

As the bidding opened at 9 am this morning, bids started pouring in for all 22 circles or zones in the 1,800 MHz band and all three zones in the 900 MHz band.

Till early evening, four rounds of bidding had been completed. After a small break, the bidding started again and was continuing till the filing of the report.

According to Department of Telecom (DoT) officials, bids had been received in all 22 service areas in the 1,800 MHz band and in all three service areas in the 900 MHz band.

“Thus, bidding has taken place in all the service areas in both bands,” an official statement said.

Eight telecom firms, including Bharti Airtel, Vodafone and Reliance Jio Infocomm, are in the fray in the auction from which the government expects to garner at least Rs 11,300 crore in the current financial year.

The spectrum auction is of major importance to the two top telecom operators in the country, Bharti Airtel and Vodafone.

It is necessary for Vodafone to get spectrum in Delhi, Mumbai and Kolkata; for Airtel in Delhi and Mumbai, and Loop Mobile in Mumbai for continuing the operations because their licences are due to expire in November.

The Department of Telecom has put on the block around 385 MHz of radiowaves in the 1,800 MHz band, and 46 MHz in the 900 MHz band.

On the block

• Bids have been received in all 22 service areas in 1,800 MHz band and in all three service areas in 900 MHz band
• The government expects to garner at least Rs 11,300 crore in the current financial year from spectrum auction
• The DoT has put on the block about 385 MHz of radiowaves in the 1,800 MHz band and 46 MHz in the 900 MHz band

Tatas unveil two new cars, Ford launches Concept Figo
Tribune News Service

Dr Tim Leverton (L), president and head, Engineering Research Centre, Tata Motors, Ranjit Yadav (C), president, Passenger Vehicle Business Unit, and Formula 1 driver Narain Karthikeyan at the launch of Bolt in New Delhi on Monday. Tribune photo: Mukesh Aggarwal

New Delhi, February 3
Ahead of Auto Expo 2014, there was a flurry of launches today with Tata Motors unveiling the sedan Zest and a premium hatchback Bolt and Ford putting on display the Ford Figo Concept, a compact sedan for the global B segment. Tata Motors said its two new models would be launched in 2014 in India and subsequently in other countries.

Zest and Bolt are a result of collaborative design inputs from the three Tata Motors design studios in Pune, Coventry (UK) and Turin (Italy).

Zest will be available both in petrol and diesel variants, while Bolt will come only with petrol engine.

The Zest and Bolt will be powered by the turbocharged Inter-cooled Multi-point Fuel-Injected (MPFi) petrol engine, Revotron 1.2T. The diesel variant of Zest will have F-Tronic technology-enabled, 5-speed Automated Manual Transmission and will be powered by a 90PS engine with 200 Nm of torque.

These two cars pitted against hatchbacks such as Maruti’s Swift and entry-level sedans like Honda Amaze will hit the market in the second half of 2014.

The new design semantics include a new Tata signature grill. Zest boasts of projector head head lamps with chrome accents, daytime running lights and 15-inch alloy wheels among other specifications.

The price of these cars would be announced closer to the launch date. Meanwhile, Ford unveiled a less than 4-metre-long sedan, without announcing when it is expected to hit the market.

Ford India president Nigel Harris said, “Consumers expect and demand great fuel efficiency and low cost of ownership from the initial price throughout the life of the vehicle. The Ford Figo Concept offers all of this, and more, with sophistication, fresh design, world-class quality, a roomy interior, and innovative smear and safe technology.”

CNG prices to be cut by Rs 15, piped cooking gas by Rs 5
Tribune News Service

New Delhi, February 3
Natural gas prices for vehicles and households will fall sharply as the government today decided to increase domestic supply to these sectors which will also boost the use of gas as a cleaner fuel across other cities.

With a view to further promote compressed natural gas (CNG) used in vehicles and piped natural gas (PNG) used in households, the Petroleum Ministry has decided to raise the share of domestic gas to 100% of the requirement for CNG (transport) and PNG (domestic).

This would lead to reduction in price of CNG (transport) and PNG (domestic) across the country (except in those city gas distribution (CGD) entities which are already getting 100% domestic gas). Accordingly, the price of CNG (transport) in Delhi supplied by Indraprastha Gas Ltd (IGL) would reduce by about Rs 15 per kg (around 30%). There will also be a reduction of about Rs 5 per unit (around 20%) in the price of PNG (domestic). Similar reductions in CNG and PNG prices will take place in other cities with city gas distribution projects.

Petroleum Minister Veerappa Moily said the decision to raise the share of indigenously produced gas in the CNG (transport) and PNG (domestic) segments was not only guided by the health benefits on account of significantly lower levels of air pollution but also because of additional economic benefits that would accrue on account of reduced subsidy burden for the government. Raising the share of domestic gas would also facilitate rapid growth of CNG usage all over the country.

The additional requirement of gas is to be met by imposing pro-rata cuts in supplies of domestic gas to sectors other than the priority sectors. The sectors where gas supplies would be curtailed include petrochemicals, refineries, steel, and entities using domestic gas for industrial or commercial purpose. The government expects the move to give a boost to the development and growth of various city gas projects in India.

Ginger Hotels checks into Chandigarh
Plans to have 70 properties across the country by 2017
Ruchika M. Khanna
Tribune News Service

Chandigarh, February 3
Ginger Hotels from Roots Corporation — a subsidiary of Indian Hotels Company Limited — is targeting to become a 50-hotel chain by 2017. In the next three years, the group will have another 20 working hotels, besides having signed contracts for creating another 20 hotels across the country.

PK Mohankumar, MD and CEO, Roots Corporation, says the company plans to have 70 hotels across the country in the next three years. While 20 hotels will be operational by 2017, the company will be in the process of commissioning another 20 hotels. As present, Ginger Hotels has 30 operational hotels, the latest being in Chandigarh, which was inaugurated on Friday last. The Chandigarh property has been built by Hind Inns and Hotels and its management has been contracted to Roots Corporation Ltd.

Ginger is the largest budget hotel chain in the country, having a 60% share in the budget hotel segment. Mohankumar said the company was planning to gain footprint across North India. “By 2017, we will open a hotel in Amritsar, Ludhiana, Katra, Shimla and Dehradun. In Delhi, we are looking at setting up multiple properties,” he said.

While admitting that initially there were reservations about the quality of hotels at some places, Mohankumar said as part of his strategy — Mission 365 Operation Excellence Turnaround — he has now been able to solve the quality issue and has been successful in turning around the company financially.

“In the third quarter, we have registered a 23% growth on a year-on-year basis,” he said.

Mohankumar said besides building their own properties, they are also working on expansion through management contracts and franchisee models. “We are also looking at taking over family-run properties on a management contract basis,” he said.

Govt may tinker with tax rates to boost economy: Chidambaram

New Delhi, February 3
The government today indicated that it may tinker with the excise duties and service tax rates in the interim budget in an apparent bid to boost economy but may not pursue key reforms legislations due to lack of political consensus.

Addressing a press conference on the eve of Parliament session, Finance Minister P Chidambaram today said his vote-on-account budget to be presented in the Lok Sabha on February 17, will be short, between 12 and 18 pages, on which he would prefer a debate.

"We cannot propose amendments to the Income Tax Act, Customs Act or the Excise Act. But any proposal short of amending a law can be made. We can also outline vision for the future," he said. — PTI