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India
Third Largest Investor in UK after US
and Japan
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Prince
Andrew, the Duke of York, who is visiting
India as the special representative of
the United Kingdom (UK) for International
Trade and Investment, had a meeting with
Minister of State for Commerce & Industry
Ashwini Kumar here on Monday. India has
emerged as the third largest foreign investor
in the UK, after US and Japan. In 2005-06,
there was 110% rise in the number of UK
bound investment projects from India accounting
for over 1 billion pound sterling.UK attracts
about 60% of Indian investment to Europe
and provides Indian business a gateway
for the European market. UK, the Europe's
largest e-commerce market, offers immense
possibilities for Indian companies in
the telecommunication, IT, electronic
hardware and the services sector etc.Ashwini
Kumar in particular focussed upon possibilities
for expansion of the Indo-UK trade and
investment in manufacturing, infrastructure,
IT, service sector, food processing, textile
machinery and advance technology products.
Andrew spoke of the contribution of the
Indian diaspora in UK's economic development
and hoped for a further consolidation
of Indo-UK relationship through the deepening
of bilateral economic and political relations.
Courtesy:
www.dailypioneer.com, October 31, 2006
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Oxford
Plans Chapter to Study Indian Economy
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Oxford
University is breaking new ground with
plans to set up a business-research centre
in India - the first one outside the United
Kingdom - to study the country's rapidly
expanding economy. According to Professor
Colin Mayer, dean of Oxford University's
Said Business School, the university would
invest £10 million (Rs 85 crore) initially
to set up the research centre which will
study a wide range of issues - from infrastructure
and education to social entrepreneurship
and business taxation- related to India.
"This is the first centre outside the
United Kingdom and will be a huge commitment
as far as Oxford university is concerned.
There will be a study centre in Oxford
to lead the research work in India," said
Mayer. The centre is expected to be operational
by next year. "For outsiders, the growth
of India is a lesson to learn and for
the country, there are a lot of challenges.
We are bringing international attention
to the success of India and trying to
involve policymakers and corporate India
to address issues related to infrastructure
and education in the country," said Mayer.
The Oxford's India centre would have representation
from the business world as well as from
policymakers, he added. "The policymakers
and business heads will guide the centre.
We are in the process of designing the
nature of the advisory board of the center
in India," he said. Maintaining that the
country has got a lot of entrepreneurial
excellence, Mayer said Oxford had plans
to polish those skills.
Courtesy:
www.hindustantimes.com, October 29, 2006
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Coir
Industry to Utilise Eco-Friendly Technology
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Coir
industry cannot be blamed anymore for
polluting the backwaters and other water
bodies. The industry is all set to utilise
the eco-friendly new technology developed
by the Coir Board for retting coconut
fibre instead of the age-old retting process
followed by the industry, which involved
depositing fibre in water bodies for around
three days.
Pollution
free
The practise of retting fibre in water
bodies has resulted in large-scale pollution.
The coconut fibre being used by the industry
is at present imported from the neighbouring
States. There fibre is being extracted
from chemically-treated raw coconut husks
using machines. That fibre needed to be
kept immersed in water for a few days
to make it soft and to impart golden colour
to the fibre. At the same time, retting
causes chemicals that stick on the fibre
to get dissolved in water. According to
studies retting causes large-scale destruction
to the fish wealth of backwaters and other
water bodies in the coastal areas of the
State. Moreover, the foul smell emanating
from water bodies where retting was being
done cause untold difficulties to those
who live nearby.
Technology
welcomed
State general secretary of small-scale
coir manufacturers' association M.P. Pavithran
said the coir industry in general welcomed
the new coir retting technology developed
by the Board. Mr. Pavithran said several
cooperative societies in the coir sector
tested the new technology developed by
the Board and found it worth adopting.
Mr. Pavithran said the new technology
for retting involved spraying a solution
`Coir Ret' developed by the Board over
layers of coconut fibre and keeping it
for a day. The solution is based on castor
oil and is eco-friendly. Mr. Pavithran
said the imported fibre taken from raw
husks was found to lose its golden colour
even after retting but the fibre treated
using Coir Ret was found to retain its
colour.
Directive
Meanwhile, the Kerala State Pollution
Control Board asked all manufacturers
to adopt the new technology and stop retting
of fibre in water bodies. A Pollution
Control Board communiqué said all manufacturers
of coir products should adopt the new
technology in three months. The PCB would
be forced to take action against those
who failed to implement the order. On
the order of PCB, Mr. Pavithran said the
manufacturers of coir mats welcomed the
PCB move. He said there was need for keeping
the water bodies pollution-free, as it
was essential for public health. Moreover,
the new technology was more economical,
as it minimised the wastage of fibre,
he added.
Courtesy:
www. hindu.com, October 25, 2006
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| by
Dr. Sanjay Chugh |
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In
overcoming tobacco dependence, you will
have to tackle two problems-the addiction
to nicotine and the smoking habit itself,
Scientific evidence shows that best results
are achieved when support and medication
are used simultaneously, Quitting with
a group of other people who want to quit
is a great way of getting support, and
the best predictor of smoking cessation
success is past attempt(s) at quitting.
It is useful to be prepared for the period
after the last cigarette. Some of the
nicotine withdrawal symptoms that one
should be prepared to brace are: craving
to smoke, irritability, insomnia, reduced
concentration, headache, cough, constipation,
dry mouth, fatigue, etc. The most common
methods to quit smoking are nicotine replacement
therapy (NRT) and smoking cessation support
and counselling,
NRT involves pharmacological aids that
are clinically proven to help with withdrawal
symptoms such as cravings and urges. These
include transdermal nicotine patches,
gums, lozenges, sprays and inhalers. The
nicotine nasal spray is perhaps the most
effective form of NRT. It is used to relieve
withdrawal symptoms and to reduce the
cravings for nicotine which people get
when they stop smoking. Smoking-cessation
support and counseling, on the other hand,
involve interacting with others who happen
to be in a similar situation. Support
groups serve as useful forums where one
can share experiences and learn. Counselling
also helps a person identify the real
reason for the addiction and addresses
it more appropriately. Some points to
bear in mind
The
Five 'd's:
Delay
until the urge passes-usually within 3-5
minutes.
Distract yourself: call a friend or go
for a waIk.
Drink water to fight off cravings.
Deep breaths: Close your eyes and take
1. 0 slow, deep breaths.
Discuss your feelings \'11th someone.
Willpower is the prime determining factor.
Initially, it might be difficult, but
willpower becomes stronger with time.
Break your routine. Think and plan how
to cope with the circum stances associated
with smoking.
Remove temptations like cigarettes, matches,
lighters, etc. from your home, car and
workplace.
Take it one day at a time. Don't allow
yourself to think that you're quitting
for good. That will make it seem like
a superhuman task.
Reward yourself with extra cash once you
stop smoking.
Dealing with relapses: Most people who
manage to quit are able to do so only
after slipping a few times. You can still
do it.
Courtesy:
India Today, Aspire November 2006 (Weakly)
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Govt
set to Scrutinise end use of Public Issue
Funds
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About
100 corporates who raised money from the
public in the recent past will soon have
to explain to the government how they
have used the funds. Company affairs minister
Prem Chand Gupta has asked the registrar
of companies (RoCs) to scrutinise all
public issues of more than Rs 50 crore
to ensure that the funds raised have been
used for their stated purpose. The scrutiny
will apply to all companies that raised
money since January 2005. A large number
of companies, including Jet Airways, GMR,
Deccan Aviation, Suzlon Energy and Reliance
Communication, have raised money from
the public during this period, and the
issue size in most cases is above Rs 50
crore. The ministry's intention is to
prevent fly-by-night companies taking
investors for a ride when the economy
is booming, as has happened in the vanishing
companies episode earlier. "The idea is
not to pose any hardship to the corporate
sector, but to ensure a fair and transparent
compliance regime under which corporates
can grow without any hassle. Protecting
the interests of investors, particularly
the small investors, is essential to strengthen
their faith in the equity market," Mr
Gupta told ET. The Companies Act as well
as Sebi's Disclosure and Investor Protection
Guidelines of 2000 prescribe the disclosure
requirements for raising funds from the
market. Officials said not using the funds
for their stated purpose will attract
company law provisions dealing with mis-statement,
diversion of funds and inducement. The
violations impose civil as well as criminal
liabilities on the promoters and directors
of the company. Mr Gupta said the regulatory
regime is moving towards greater transparency
and self-regulation. The new company law
would emphasise on these two aspects,
he said. This is in line with the JJ Irani
committee on company law, which advised
the government that the onus of ensuring
the legitimate end-use of funds should
be on shareholders. Corporates have to
put in place a mechanism for shareholders,
lenders and government agencies to access
financial information in a non-intrusive
manner.
Courtesy:
www. economictimes.indiatimes.com, October
24, 2006
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by
Homazd Sorabjee
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It's
almost a runway, wide enough for an airbus-no
longer a tale of burnt clutches, overheated
engines, or traffic jams
Think
about it. You come into the office first
thing in the morning, do an hour's work,
jump into your car, head to Pune for a
lunch appointment and then arrive back
at your desk early evening, fresh as a
daisy, to wrap up work for the day. Popping
down to Pune from Mumbai just like that
11 years ago was unheard of, unless you
owned a helicopter or were the prime minister
of India, which meant you could close
the highway and zip down it until the
wheels of your Ambassador fell off. Eleven
years ago, driving from Mumbai to Pune
for the day meant starting early when
it was still dark and, if you were lucky,
returning home safely in time for dinner.
Eleven
years ago there was no Mumbai-Pune expressway.
So when this 94-km, 6-lane road was thrown
open to motorists in September 2000, it
came as a miracle. Arrow straight and
wide enough in most parts for an Airbus
to land on, this expressway transformed
the tortuous Mumbai-Pune slog into the
most relaxed driving experience on the
subcontinent.
We
never had anything like this before and
it was a surreal feeling to drive on a
surface that was the other extreme of
the monsoon-ravaged roads that led to
it. Driving from Mumbai to Pune and back
is now a dream but it's hard to forget
the nightmares I have had on this trip.
In fact, anyone who frequently travelled
between Mumbai and Pune before the expressway
came up has their tale of horror to tell.
Before the expressway, the old Mumbai-Pune
highway simply couldn't cope with the
ever-increasing volume of traffic. The
narrow Lonavala to Kamshet section was
particularly notorious and if a truck
broke down or had an accident here, traffic
piled up in minutes. What invariably made
it worse was the infuriating Indian habit
of creating a double lane by driving on
the wrong side of the road in a misguided
attempt to get past the long line of trucks.
The problem is drivers coming from the
opposite side had the same idea which
eventually led to a gridlock that took
several hours to disentangle.
The
toughest section of the Mumbai-Pune road
was undoubtedly the short 7-km Khandala
Ghat with its super steep gradient. Overloaded
trucks struggled uphill at a glacial pace
which slowed traffic down to a crawl and
often to a stop. And that was the problem.
The minute a truck came to a halt, the
'cleaner' would leap out and place stones
behind the wheels to prevent the truck
from rolling back. Then it required all
the revs the truck's wheezy engine could
muster and dexterous use of the clutch
to get going. Of course, the stones were
never cleared from the road and were left
for the following truck or car to run
over. Burnt clutches, broken transmissions,
overheating engines were some of the terminal
problems that left this road littered
with broken-down vehicles.
I
can't forget a 14-hour ordeal to reach
Pune in an old Mahindra Classic which
had a soft-top that leaked like board
exam papers, seats as hard as granite
and an engine that was as energetic as
a drunken rhino. Factor in a gearbox that
needed Schwarzenegger biceps to operate,
no air-con and this was easily one of
the most excruciating drives of my life.
But I was lucky compared to others. My
colleagues from a Pune-based auto magazine
took 26 hours to do the 150 km journey.
That worked out to an average of around
6 km per hour which is just a little quicker
than walking pace! This national highway
was clearly a national disgrace. Thank
God something was done about it.
The
Mumbai-Pune expressway has completely
transformed the concept of commuting between
these two towns. The train is now less
convenient and that's resulted in a sharp
drop in passengers for the railways. And
if you aren't catching a connecting flight,
the plane isn't necessarily quicker.
By
its very nature, the new expressway encourages
you to drive non-stop between Mumbai and
Pune and this means that some of the long-standing
traditions of the old highway are gone.
I do miss the customary stop at Ramakant's
in Khapoli for the most delicious puri-bhaji
to fortify you for the rest of the journey.
In the days of Padminis and Ambassadors,
Khapoli was also the point where radiator
water was topped up in preparation for
the Khandala Ghat. At Lonavala, a stop
at Cooper's to pick up fudge and 'kopra-pak'
was also a tradition which is now gone,
as the expressway skirts past this weekend
holiday town, making a detour to Cooper's
too inconvenient except for diehard addicts.
Driving
from Mumbai to Pune is no longer the adventure
it was 11 years ago and that's not only
because of the expressway. The cars in
the past decade have become safer, more
comfortable and far more reliable. Breakdowns
are becomingly increasingly uncommon,
you don't have to open your bonnet before
hitting the highway and the best part
is that crippling traffic jams are a thing
of the past. This leads me to another
point; traffic congestion in India is
not because of too many vehicles but because
of too few roads. Whichever way you cut
it; cars per square km, cars per person,
the simple fact is that India is still
under-motorised.
It's
not just the Mumbai-Pune stretch which
has been transformed. Drive from Delhi
to Jaipur or Chennai to Pondicherry, and
you're greeted by superbly surfaced 4-6
lane roads. And once the Golden Quadrilateral
is complete, long-distance driving will
have a new dimension. But though we have
21st century cars and roads, our driving
habits still belong to medieval times
and in today's high-speed environment
this could spell a recipe for disaster.
But it's not speed that is the true killer.
You can kill yourself in a motorised wheelchair
if you don't know how to stop and steer.
This new driving environment calls for
a basic level of driving expertise which
is seriously absent in this country. India
has possibly the worst drivers in the
world (along with China I am told) and
the root cause for this is a farcical
driving test which is known to churn out
licenced drivers in 20 minutes and that's
including the paperwork. Unless driving
licensing is made tougher and there is
proper training and education, there is
little hope for road safety to improve.
Let's hope the next 11 years of Outlook
will see our driving skills match the
cars and roads we have.
Courtesy:
OutLook India, October 16, 2006
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Tatas
Acquire Corus Group
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Excited
Indian voices reverberated through the
corridors of Deutsche Bank's London headquarters
on Friday morning as beaming Tata Steel
executives celebrated their company's
acquisition of the Anglo-Dutch firm Corus
Group in a deal that would create the
world's fifth biggest steel company. The
£ 4.3 billion (Rs. 36,650 crore) deal,
the culmination of hard negotiations over
months, represents the largest Indian
takeover of a foreign company and Tata
Steel's first expansion outside Asia.
"Defining
moment"
Ratan N. Tata, Chairman, Tata Sons, hailed
the acquisition as a "defining moment"
for his company and consistent with its
strategy of growth through international
expansion. "It is a very exciting moment
for both companies because the deal pulls
together two companies which have a similar
global vision," he said, announcing the
deal at a press conference soon after
Corus confirmed the takeover. Mr. Tata
stressed that Corus would retain its identity
in the "foreseeable future" and remain
an Anglo-Dutch company with the existing
management structure. In a brief, unemotional
speech, Mr. Tata sought to clear the air,
which in recent weeks has been thick with
speculation, that it was "not an opportunistic,
agenda-driven" deal but was built on a
shared vision of a "global strategy."
"Corus and Tata Steel are companies with
long, proud histories. We have compatible
cultures of commitment to stakeholders
and complementary strengths in technology,
efficiency, product mix and geographical
spread. Together we will be even better
equipped to remain at the leading edge
of the fast changing steel industry,"
he said.
For B. Muthuraman, managing director of
Tata Steel, who had been personally involved
in the negotiations, the agreement had
a special flavour. He spent the morning
explaining its finer points, first to
an array of domestic and international
analysts, and then to a cynical media.
He said Tata Steel had been in the forefront
of steel industry for 99 years and the
deal reflected its commitment to remain
at the cutting edge of the new global
market. It was a step towards greater
global consolidation of the steel industry.
Mr. Muthuraman sought to allay fears of
job losses at Corus as a result of the
takeover and planned cost-cutting. He
said the threat to jobs would have been
greater had the deal not taken place.
"The deal makes it more competitive and
that means more job security," he said,
though he did not rule out redundancies
in future.
Right
partner
Jim Leng, Chairman of Corus, described
Tata Steel, which it chose over companies
from Brazil and Russia, as the "right
partner at the right time and on the right
terms." He said: "This creates a well-balanced
company, strategically well-placed to
compete in an increasingly competitive
global environment." The deal, he explained,
was prompted by his company's decision
to seek access to low-cost production
and high-growth markets. Analysts welcomed
the acquisition, but some warned that
it could trigger a takeover "war." Tata
executives, however, vigorously shook
their heads.
Courtesy:
www.hindu.com, October 21, 2006
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BJP
Flays CPM for Doubletalk on FDI
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The
BJP on Thursday accused the Communist
Party of India-Marxist of acting as the
front company of Chinese FDI in India,
and urged the Centre not to succumb to
any pressure for the sake of India's unity
and integrity. "It is strange that the
CPI-M is batting for Chinese FDI in India,
despite being a chronic opponent to FDI,"
BJP spokesperson Ravi Shankar Prasad said
on Thursday."The BJP favours dialogue
to have friendly relationship with all
neighbouring countries, but nothing should
be traded at the cost of internal security.
The intelligence agencies have in the
past already warned against entering into
any kind of dealings in the matters of
telecom and ports with a country that
poses certain strategic challenges to
India," Prasad added."On the one hand,
the CPM opposes FDI and on the other favours
FDI from China even in the strategic sectors.
It is the worst manifestation of double-standards
on the part of the CPM," Prasad said.
Courtesy:
www.dailypioneer.com, October 20, 2006
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Black
and White: PM Airs Concern Over Agri Crisis
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Agriculture
sector is facing a crisis, PM Manmohan
Singh said on Wednesday, calling for a
paradigm shift in agrarian policy and
development. In a speech covering all
aspects of the farm sector, the PM identified
the many problems confronting farmers
and suggested ways and means of overcoming
them. "There is a crisis in agriculture
in many parts of our country," the PM
told the Agriculture Summit, adding "The
more I travel to interior areas and meet
farmers, I get the feeling that in many
parts agriculture is being carried out
in adverse conditions. However, Mr Singh
made no mention about the thousands of
farmers who have committed suicide due
to rising debts but his remarks appeared
to be about them. He admitted that in
many areas agriculture was seeing a major
transformation for the better, helping
farmers to reap the benefits of new technology,
additional irrigation, better infrastructure,
improved marketing methods and advanced
risk management strategies. "It is this
duality that we need to tackle," he said.
The PM said the challenge was to help
pull subsistence farmers out of marginal
existence and propel advanced farmers
onto the global platform. "I believe the
time has come for us to adopt a fundamentally
new perspective on rural development and
agriculture," he said. While a large number
of people will continue to migrate from
rural to urban areas, and while urbanisation
will continue apace, the rural economy
must retain its people and ensure a remunerative
livelihood for farmers, he said. The PM
said so far the Indian approach to rural
development and agriculture had been incremental.
"We have not sought a paradigm shift in
agrarian policy and agrarian development,"
he said.
He
said the government's endeavour would
be to bridge public investment and credit
deficit, infrastructure deficit, market
economy deficit, and knowledge deficit.
He said the government was setting up
the National Rainfed Area Authority to
promote knowledge-based interventions
covering all aspects of farming in rain-fed
areas. The prime minister called for better
returns for farmers. This may hurt some
sections of the middle class to a small
extent, but it benefits the farmers who
are the backbone of our economy. We need
a balanced approach where we provide for
the food security of the poorest sections
without compromising the returns to farmers...
Our strategy must be based on improving
the real incomes and quality of life of
our farmers. The PM appealed for measures
to improve the reach and effectiveness
of rural extension services.
Courtesy:
www. economictimes.indiatimes.com, October
19, 2006
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Mukesh
Ambani Eclipses Premji as Richest Person
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In
a double-treat of sorts, Reliance Industries'
emergence as India's most valued firm
has also catapulted its Chairman and Managing
Director Mukesh Ambani right on to the
top of the country's richest list. After
toppling the State-run energy giant ONGC
as India's largest corporate house among
listed entities after more than four years,
RIL's market cap has further swelled to
over Rs. 1,65,000 crore taking Mr. Mukesh
Ambani's net worth based on his shareholding
in group companies to more than Rs. 70,000
crore. His elevation to the top of the
country's richie-rich club has pushed
Wipro's Azim Premji to the second position
with a net worth of about Rs. 64,700 crore.
While Wipro has also witnessed a sharp
rally in its share price over the recent
past, Mr. Premji's net worth has not risen
much due to the fall in the total promoter
stake in the company. The net worth of
Mr. Mukesh Ambani's younger brother, Anil
Ambani, has also soared after the recent
record-breaking rally in the stock market.
Mr. Anil Ambani maintains his position
as the country's third richest person
with a net worth of over Rs. 61,000 crore.
Courtesy:
www.hindu.com, October 16, 2006
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Indian
E-Governance to get Gig Boost
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India's
e-governance market is on a high growth
trajectory. India is expected to spend
Rs 4,000 crores during the year 2006 on
e-governance. A growth of 35 per cent
is expected in 2007 and by 2009, a business
opportunity of Rs 10,000 crores is expected
by the IT industry from e-governance projects
in the country. The growth in e-governance
this year is around 30 per cent, from
Rs 3,014 crores during 2005. Consultancy
outfit Skoch India, has come up with an
assessment of the high growth occurring
in the e-governance realm. Speaking to
this newspaper, Dr Gursharan Dhanjal,
vice-president, Skoch Consultancy services,
said, "e-governance is going to provide
a big business opportunity for IT companies,
in the years to come, apart from the crucial
social benefits that it brings in for
the citizen. According to Skoch India,
driving this growth in e-governance will
be projects like common services centres
of department of information technology
that attempt at reaching government services
to every nook and corner of the country.
Major IT induction plans are underway
at both the Central Board of Direct Taxes
(CBDT) and Central Board of Excise and
Customs (CBEC). The large scale project
of the ministry of company affairs - MCA
21 - is also aiming to digitise the company
records data and fully automate the process.
An
interesting example of e-governance at
the local level are Lokvani centres in
Sitapur District in Uttar Pradesh, which
are providing single window grievance
redressal services to the citizens. Complaints
range from pensions, land disputes and
even theft cases that remain unresolved.
There are 49 such kiosks in Sitapur and
another 500 planned for the entire State.
While the State-owned system integrator
National Informatics Centre (NIC) has
remained a majority player in the e-governance
implementation space, private players
like Tata Consultancy Services (TCS) have
carved nearly 12 per cent market share
for e-governance. According to Dr Dhanjal,
e-governance can best be described as
'citizen services delivery, with information,
communication Technology (ICT) and the
receipt of the same by the citizen. He
said that in popular perception it is
often understood to mean the same as using
IT for government administration, across
various levels, but e-governance, essentially
must include the receipt of the services
by the citizen and not merely information
management system by government. Skoch
is a strategy and management consultancy
company with work in eleven countries.
In India Skoch actively works towards
ICT (Information, Communication, Technology)
led improvement of citizen delivery systems
and for competitive advantage of the country
across segments.
Courtesy:
www.asianage.com, October 15, 2006
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RIL
Overtakes ONGC to Become Largest in m-cap
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Mukesh
Ambani-controlled Reliance Industries
Ltd has dislodged state-run energy conglomerate
Oil and Natural Gas Corporation as India's
biggest company by market capitalisation,
even as the biggest private sector player
in the oil sector on Thursday slashed
petrol and diesel prices by about Re 1
a litre in tune with cooling international
crude. Reliance shares on Thursday sprinted
2.7% on the bourses to take the company's
market capitalisation to approximately
Rs 1.63 lakh crore, beating leader ONGC's
market value of Rs 1.61 lakh crore. Ironically,
Reliance lost its position as the most
influential stock on the Sensex to IT
major Infosys. Infosys toppled RIL as
the most influential stock in Sensex by
gaining the highest weightage of 10.91%,
giving it the biggest say in the movement
of the index and pushing Reliance to the
second spot with 10.85% weightage. Riding
on Infosys's stunning results coupled
with high expectations of robust Q2 results
from other bluechips, the BSE sensex,
on Thursday gained 184 points to touch
12,537.98 points, crossing the previous
second highest level of 12,513.86 clocked
on May 9. On marketing front, RIL slashed
its prices - the second time in the last
fortnight - to bring petrol and diesel
at par with rates being offered by state-owned
oilmarketing firms in several states.
But its rates will still be marginally
more than the state firms in the rest
of the country. The Reliance rates tally
with state-run firms in Daman and Diu,
Karnataka and Kerala. The company has
brought diesel prices at par with public
sector firms in Gujarat but the price
of petrol remained 50 paise higher than
those offered by the state firms. In Madhya
Pradesh, Andhra Pradesh, Puducherry and
Tamil Nadu, petrol price was brought at
par with the state firms but diesel will
continue to be costlier by 25 paise to
Rs 1.25 a litre.
Courtesy:
www.timesofindia.indiatimes.com, October
13, 2006
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India
Needs a Super Regulator for Financial
Market: Expert
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India
needs a super regulator for the financial
market, an umbrella body supervising all
sectors, as instruments of investment
become more and more innovative, said
Marti G. Subrahmanyam, professor of finance
and economics at Stern School of Business,
New York University. Underlining the need
for a blue print of an optimal regulatory
structure, the economist, during his visit
to The Hindu on Monday, said India could
look at countries like the United Kingdom,
Japan and Ireland that either have a single
financial sector regulator or propose
to establish one. "We should really think
seriously ... start on a clean slate,"
he said to a query on the components of
regulation, particularly in the context
of the emerging market for hedge funds.
According to Prof. Subrahmanyam, who is
on the board of many leading corporate
entities, including ICICI Bank Limited
and Infosys Technologies Limited, a group
should study the structure. Apart from
recommending a timeframe for implementation
of the structure, the group should chalk
out strategies for moving with "today's
patch work of regulation." Nevertheless,
the Securities and Exchange Board of India,
despite public criticism and being a relatively
young body, had turned out to be one of
the most successful regulators in the
world. Noting that the role of the Forward
Markets Commission, however, was not clear,
Prof. Subrahmanyam said: "Now that commodities
have become a huge issue, I think the
distinction between commodities and securities
is technical."
On
hedge funds and their regulation, the
author of several books on financial markets
said, since they supposedly involved sophisticated,
rich individuals who could take care of
themselves, "I do not see any need for
using public resources, whether regulatory
or financial." Pointing out that the funds
have an ability to get in and get out,
he said the country, therefore, should
make up its mind on whether such types
of investment were required. In the event
of allowing them, the rules for the foreseeable
future should be set. Prof. Subrahmanyam
emphasised the need for regulators to
recruit people as qualified as those they
regulate. But for this, the salary structures
of the regulatory bodies should be different
and not pegged on the government scales.
On Indian managers, he said while many
of the senior managers in India have grown
up and learnt to manage in a scarcity
economy, the flip side was that some of
them might not be able to think freely
in a completely free economy. In contrast,
the young breed of managers did not encounter
such challenges. "The younger generation
has exceptionally high confidence levels
in comparison to their peers from other
countries."
Courtesy:
www.hindu.com, October 10, 06
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ONGC-Mittal
Wins 3rd Block in Nigeria
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ONGC
Mittal Energy, a JV of state-owned explorer
Oil and Natural Gas Corporation and steel
baron Laxmi Niwas Mittal, has scored its
second success in Nigeria. The company
has been awarded an oil acreage, its third
there, which was auctioned by government
after revoking licence of Nigeria's South
Atlantic Petroleum (Sapetro). ONGC Mittal
won block OPL-246 by bidding $100 million,
beating INC Natural Resources and BG-Sahara.
This block is the relinquished area of
the billion-barrel Akpo oilfield of Sapetro,
part-owned by former defence minister
Theophilus Danjuma. ONGC Mittal has already
won two blocks - OPL-209 near ExxonMobil's
Erha project and OPL-285 where Statoil
has struck hydrocarbons. The present block
fulfills the Nigerian government's promise
of giving three fields to the joint venture
as part of a composite deal envisaging
huge investments by ONGC-Mittal in building
a refinery and power plant. The Cabinet
had earlier forced ONGC Videsh, ONGC's
overseas investment arm, to pull out of
another successful bid for a block belonging
to Danjuma's firm for fear that the funds
may be used to topple the government.
After ONGC Videsh pulled out its successful
bid, the block was given to China National
Offshore Oil Corporation. ONGC-Mittal
has to pay 25% of the $100 million signature
bonus committed for OPL-246 this week,
failing which it would lose the block
to INC, which was designated as the reserved
bidder.
Courtesy:
timesofindia.indiatimes.com, October 07,
2006
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Mauritius
Wants DTAA Sops to Stay
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Mauritius
is leaving no stone unturned to ensure
continuance of benefits under its double
taxation avoidance agreement (DTAA) with
India. A delegation of senior officials
from Mauritius is arriving here on Thursday
to hold parleys with their Indian counterparts.
The team would comprise officials from
various departments including finance,
diplomatic sources said. A meeting between
revenue secretary KM Chandrashekhar and
his Mauritian counterpart is part of the
detailed itinerary of the visiting delegation,
they added. India is planning to review
the DTAA with Mauritius which provides
long-term capital gains for a host of
foreign institutional investors (FIIs).
The Mauritius side does not want the existing
arrangement - which is unique - to be
disturbed. The Mauritius team is keen
to touch upon various issues related to
the comprehensive economic cooperation
agreement (CECA) with India, the sources
said. India has already offered to provide
duty sops for Mauritian sugar, garments
and rum, subject to quantity ceilings.
While tariff concession for goods is being
discussed under a proposed preferential
trade agreement (PTA) which would be part
of the CECA, the DTAA review is significant
since Singapore is also demanding a similar
arrangement. Last year, Singapore entered
into a CECA with India and is keen to
obtain the tax benefit now available only
to FIIs registered in Mauritius. India
has set up a working group to study the
DTAA and to make recommendations for the
proposed review. The key changes sought
include shifting from residence-based
taxation to source-based taxation. As
of now, a Mauritian government certificate
of residence entitles a company for exemption
from capital gains tax.
Courtesy:
economictimes.indiatimes.com, October
05, 2006
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With
Big Guns Rolling in, Retail Set for a
Boom
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The
retail opportunity in India is expected
to increase to $440 billion by 2010 from
the existing $300 billion, while investments
in the sector are slated to go up nearly
10 times to $25 billion over the next
five years. Some of the big players such
as Reliance and Bharti Enterprises have
already announced plans to foray into
the sector, while foreign retail chains
are eyeing the huge opportunity. On Tuesday,
there was a flurry of action to show the
high billing that the sector is getting.
The Tata group announced an alliance with
Australian retail major Woolworths, to
start a specialised retail chain for consumer
durables, while the Dubai-based Landmark
group - which runs Lifestyle stores in
India - is in talks with Europe's biggest
retailer Carrefour for acquiring its franchise.
UK retail major Tesco indicated it will
announce its Indian plans later this month.
Tata's new venture, Infiniti Retail Limited
will be a 100% subsidiary of Tata Sons
and offer over 6,000 products across eight
categories. "This will be a specialised
retail chain for consumer electronics
and durables," said Tata Sons' director
R K Krishna Kumar. Carrefour is in talks
with Landmark Group for opening up to
200 stores in India, Landmark chief executive
Micky Jagtiani said. "We are in India
and food retail is a natural extension
for us," Jagtiani said, declining to say
how much the plan may cost. Landmark is
also in talks with as many as two other
retail companies about developing outlets,
Jagtiani said, declining to identify them.
The hypermarket route has emerged as one
of the most preferred formats for global
retailers entering India, says Arvind
Singhal, chairman, Technopak. In most
emerging retail markets, such as Eastern
Europe, Latin America and China, hypermarkets
have been the major high growth format.
Hypermarkets offer consumers with a combination
of good prices, overall shopping convenience
and experience, product range and quality.
Going by trends in consumer spending,
the food and grocery segment is the biggest
growth driver. Footwear and clothing categories
have also seen a higher organised retail
penetration (ORP). Footwear has a 22%
ORP which is driven by high levels of
franchising activities.
Courtesy:
economictimes.indiatimes.com, October
04, 2006
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Pantaloon
Retail to orm JV with UK firm
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Retail
major, Pantaloon Retail India Ltd on Tuesday
said it would form a 50-50 joint venture
company with UK-based Alpha Airports Group
plc, to develop travel retail and food
catering business in airports across the
country. The board of directors at its
meeting recently approved an memorandum
of understanding with Alpha Airports Group,
Pantaloon Retail informed the Bombay Stock
Exchange. A dividend of Rs 2.50 on shares
of Rs 10 each (25 per cent) was also declared
by the bo ard, it added. The company decided
to sub-divide every equity share of Rs
10 each to five shares of Rs 2 each, subject
to shareholders approval. After the stock
split the authorised share capital of
Rs 35 crore would consist of 17.50 crore-equity
shares of Rs 2 each, i t added. Alpha
Airports Group operates over 150 shops
in 15 countries with an annual turnover
of over $880 million and has been operating
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