Foreign investors now have a reason to cheer. The government on Thursday announced easing of investment norms to boost FDI in the country.
According to the new rules, investments with a total equity inflow of over Rs 1,200 crore will now only go to the CCEA for approval against earlier limit of Rs 600 crore. Also, existing foreign investors with the required initial approvals have been exempted from seeking fresh nods in certain cases including where the sectoral caps have been changed
and where the sector has been brought under the automatic route after the intial approvals were granted.
Anand Sharma, the commerce minister, said, “This is aimed at simplifying the process for application and approval of FDI."
And this comes as yet another step from the commerce ministry to attract greater foreign investment. Earlier, recently the government had announced a one-stop shop for FDI policy instead of the 160 different press notes.
In fact, the steps seem to paying off given that FDI Inflow for the month of December 2009 was up 13 per cent to $1.54 billion as against last year.
Thursday, February 11, 2010
Banks want RBI to reduce deposit rates.
Indian bankers on Thursday asked the Reserve Bank of India to reduce the savings bank deposit rates to protect their margins.
In a post-monetary policy review meeting with Reserve Bank of India Deputy Governor Usha Thorat, bankers said their cost of deposits would rise by around 80 basis points due to the new way of calculating the savings bank deposit rate.
The rate is calculated on the daily average balance method.
"We requested them to either reduce the savings bank rate or postpone the implementation. It will affect our margins and profit," said MV Nair, chairman and managing director, Union Bank of India, after the meeting.
The RBI has asked all the banks to offer interest to savings bank customers on a daily basis from April 1, which is 3.5 per cent.
Currently, the return on savings bank is determined on the basis of the minimum balance on the eleventh day to the last day of the month.
This system of calculation resulted in customers getting 2.5 per cent on their savings deposit.
"We suggested that the savings bank rate be reduced to 2.5 per cent from 3.5 per cent now. They said they will examine it," said another banker who attended the meeting.
Nair, who is also the chairman of Indian Banks' Association, said there was a possibility of home loan rates being higher compared to the pre-crisis level after the new base rate.
"I think on an average, base rate could be 8.5-9.0 per cent. There is a point there. If we add the risk premium, tenure premium, then home loan could be higher," Nair said.
Banks had launched special home loans at 8 percent in late 2008 to protect a sharp slowdown in credit growth. These loans were made fixed at 8 per cent for the first three years and thereafter to be linked to the benchmark prime lending rate.
Most of these plans are slated to end in March.
In a post-monetary policy review meeting with Reserve Bank of India Deputy Governor Usha Thorat, bankers said their cost of deposits would rise by around 80 basis points due to the new way of calculating the savings bank deposit rate.
The rate is calculated on the daily average balance method.
"We requested them to either reduce the savings bank rate or postpone the implementation. It will affect our margins and profit," said MV Nair, chairman and managing director, Union Bank of India, after the meeting.
The RBI has asked all the banks to offer interest to savings bank customers on a daily basis from April 1, which is 3.5 per cent.
Currently, the return on savings bank is determined on the basis of the minimum balance on the eleventh day to the last day of the month.
This system of calculation resulted in customers getting 2.5 per cent on their savings deposit.
"We suggested that the savings bank rate be reduced to 2.5 per cent from 3.5 per cent now. They said they will examine it," said another banker who attended the meeting.
Nair, who is also the chairman of Indian Banks' Association, said there was a possibility of home loan rates being higher compared to the pre-crisis level after the new base rate.
"I think on an average, base rate could be 8.5-9.0 per cent. There is a point there. If we add the risk premium, tenure premium, then home loan could be higher," Nair said.
Banks had launched special home loans at 8 percent in late 2008 to protect a sharp slowdown in credit growth. These loans were made fixed at 8 per cent for the first three years and thereafter to be linked to the benchmark prime lending rate.
Most of these plans are slated to end in March.
Nokia Siemens to make Airtel 3G ready n/w
Telecom gear firm Nokia Siemens Networks said on Thursday it had won a $700 million network contract from Bharti Airtel to expand and
upgrade India's top operator's GSM network in eight of its regions.
The contract includes network planning, implementation and project management, handling of local logistics and materials, as well as system integration for the base station sites, Nokia Siemens said in a statement.
Nokia Siemens said it will also ensure that Bharti Airtel's core and transport network is 3G-ready in order to reduce time to market and enable the fast rollout of 3G services at a later date.
upgrade India's top operator's GSM network in eight of its regions.
The contract includes network planning, implementation and project management, handling of local logistics and materials, as well as system integration for the base station sites, Nokia Siemens said in a statement.
Nokia Siemens said it will also ensure that Bharti Airtel's core and transport network is 3G-ready in order to reduce time to market and enable the fast rollout of 3G services at a later date.
Kingfisher airlines wants Govt to revise its FDI policy in aero industry.
Listed entity Kingfisher Airlines is likely to come out with a one-on-one rights issue in order to raise nearly Rs400 crore and begin the process of retiring a mountain of debt. The Bangalore-headquartered airline faces a debt burden of Rs6,000 crore and a high debt-to-equity ratio.
Market reports suggest that the struggling carrier has been advised by bankers to infuse equity into the airline before opting for any fund-raising plan. Reports also suggest that the troubled carrier may have appointed SBI Capital as the arranger for the issue.
The carrier has a current market capitalisation of Rs 1,341 crore.
Kingfisher Airlines has been itching to raise public money for quite some time, and has said earlier that it may seek to raise between Rs500-750 crore through a share sale if government policy not to allow foreign carries to invest directly in Indian carriers did not change.
Promoter Vijay Mallya has earlier expressed his preference for a strategic investor over financial investors. Financial investors, other than airlines, may own up to 49% of the paid-up equity of the domestic carriers.
Kingfisher has recently appointed US aerospace and aviation advisory firm Seabury to rope in investors.
Market reports suggest that the struggling carrier has been advised by bankers to infuse equity into the airline before opting for any fund-raising plan. Reports also suggest that the troubled carrier may have appointed SBI Capital as the arranger for the issue.
The carrier has a current market capitalisation of Rs 1,341 crore.
Kingfisher Airlines has been itching to raise public money for quite some time, and has said earlier that it may seek to raise between Rs500-750 crore through a share sale if government policy not to allow foreign carries to invest directly in Indian carriers did not change.
Promoter Vijay Mallya has earlier expressed his preference for a strategic investor over financial investors. Financial investors, other than airlines, may own up to 49% of the paid-up equity of the domestic carriers.
Kingfisher has recently appointed US aerospace and aviation advisory firm Seabury to rope in investors.
AGNI-5 to be tested in a yr - DRDO
with the Agni-III intermediate range ballistic missile scoring a hat trick of successes and now cleared for induction, a buoyed up DRDO, India's premier defence research organisation, is lining up tests of the Agni-V, an inter-continental ballistic missile.
The first test is likely to take place in a year's time, senior Defence Research and Development Organisation (DRDO) officials said Wednesday.
"Agni-V is a 5,000 km plus missile in the ICBM category and we are planning to carry out its first test within a year," Dr VK Saraswat, director general of DRDO, and also scientific advisor to the defence minister.
The Agni-V will leave no targets immune from an Indian strike in China. Pakistani targets are already covered adequately by the Agni-I and II missiles.
"After Agni-III and Agni-V, as far as cities in China and Pakistan are concerned, there will be no target that we want to hit but can't hit," Dr Saraswat said.
Commenting on the Agni-V, the DRDO chief said the "missile was already out of the drawing boards." According to Dr Saraswat, the Agni-V was currently undergoing technical evaluations of its sub-systems.
The first test is likely to take place in a year's time, senior Defence Research and Development Organisation (DRDO) officials said Wednesday.
"Agni-V is a 5,000 km plus missile in the ICBM category and we are planning to carry out its first test within a year," Dr VK Saraswat, director general of DRDO, and also scientific advisor to the defence minister.
The Agni-V will leave no targets immune from an Indian strike in China. Pakistani targets are already covered adequately by the Agni-I and II missiles.
"After Agni-III and Agni-V, as far as cities in China and Pakistan are concerned, there will be no target that we want to hit but can't hit," Dr Saraswat said.
Commenting on the Agni-V, the DRDO chief said the "missile was already out of the drawing boards." According to Dr Saraswat, the Agni-V was currently undergoing technical evaluations of its sub-systems.
Google to test its Ulatrafast Broadband in limited markets.
Google announced plans yesterday to test out ultrafast gigabit broadband in limited markets. However, that doesn't mean Google is entering yet another highly competitive industry (at least not yet). The intended audiences for the tests are the broadband providers and their subscribers.
Google plans to test out gigabit broadband in select markets.The goal is for Google to demonstrate what is possible. By choosing some test markets and implementing broadband 100 times faster than that being delivered by most broadband providers currently, Google can prove that it's possible, and back it up with real-world results and project costs.
In theory, broadband providers like Comcast and AT&T are already aware of what is possible. But, broadband providers are interested in what's profitable more than what's possible. At the end of the day, Comcast and AT&T executives answer to shareholders more than customers, and they don't answer to Google at all.
As it is, Comcast and AT&T don't just deliver the fastest possible speeds to all customers. Each offers a range of service plans, with varying download and upload speeds, that all work over the same wires with the same hardware. If you want the maximum speed, you are going to have to pay--a lot--for that maximum speed.
Google plans to test out gigabit broadband in select markets.The goal is for Google to demonstrate what is possible. By choosing some test markets and implementing broadband 100 times faster than that being delivered by most broadband providers currently, Google can prove that it's possible, and back it up with real-world results and project costs.
In theory, broadband providers like Comcast and AT&T are already aware of what is possible. But, broadband providers are interested in what's profitable more than what's possible. At the end of the day, Comcast and AT&T executives answer to shareholders more than customers, and they don't answer to Google at all.
As it is, Comcast and AT&T don't just deliver the fastest possible speeds to all customers. Each offers a range of service plans, with varying download and upload speeds, that all work over the same wires with the same hardware. If you want the maximum speed, you are going to have to pay--a lot--for that maximum speed.
India & UK signs civil nuke pact
India today signed a civil nuclear cooperation agreement with the UK, which became the eighth country to enter into such pact with New Delhi since the lifting of atomic trade embargo in 2008.
The agreement was signed by Atomic Energy Commission Chairman Srikumar Banerjee and British High Commissioner Richard Stagg here.
"It is a general umbrella agreement on civil nuclear cooperation," a Department of Atomic Energy official said.
The pact is expected to provide a legal framework for British companies to export components and products and be part of the supply chain for reactor design in India.
Britain and India had finalised the agreement earlier this month during Commerce Minister Anand Sharma's visit to London for the UK-India Joint Economic Trade Committee meet.
UK Trade and Investment, the British government's trade arm, had said that British companies were keen to collaborate with Indian partners in civil nuclear technology.
According to the Nuclear Industry Association of the UK, 185 British companies in the island nation which include the nuclear plant operators, those engaged in decommissioning, waste management, nuclear liabilities management and all aspects of the nuclear fuel cycle.
The British nuclear industry exports nuclear goods and equipment worth over 1.11 billion dollars and can supply 70-80 per cent parts of a new nuclear reactor.
The agreement was signed by Atomic Energy Commission Chairman Srikumar Banerjee and British High Commissioner Richard Stagg here.
"It is a general umbrella agreement on civil nuclear cooperation," a Department of Atomic Energy official said.
The pact is expected to provide a legal framework for British companies to export components and products and be part of the supply chain for reactor design in India.
Britain and India had finalised the agreement earlier this month during Commerce Minister Anand Sharma's visit to London for the UK-India Joint Economic Trade Committee meet.
UK Trade and Investment, the British government's trade arm, had said that British companies were keen to collaborate with Indian partners in civil nuclear technology.
According to the Nuclear Industry Association of the UK, 185 British companies in the island nation which include the nuclear plant operators, those engaged in decommissioning, waste management, nuclear liabilities management and all aspects of the nuclear fuel cycle.
The British nuclear industry exports nuclear goods and equipment worth over 1.11 billion dollars and can supply 70-80 per cent parts of a new nuclear reactor.
BJP wants J&K CM to stop implementing his surrender policy in the state
Criticising Jammu and Kashmir chief minister Omar Abdullah's surrender policy for militants held across the LoC, state BJP today said the step will promote gun culture in the state.
"The state is already in the grip of militancy with both local and foreign militants carrying out their subversive activities and bringing militants from across the border under pretext of surrender would prove counter productive for the security of the state and nation," BJP president Shamsher Singh Manhas told reporters here.
He urged the chief minister to abandon the idea as it will prove dangerous for the nation and also for J&K.
"The state is already in the grip of militancy with both local and foreign militants carrying out their subversive activities and bringing militants from across the border under pretext of surrender would prove counter productive for the security of the state and nation," BJP president Shamsher Singh Manhas told reporters here.
He urged the chief minister to abandon the idea as it will prove dangerous for the nation and also for J&K.
Indian envoy to Oz explained about the measures to prevent racist attack on Indians.
India's High Commissioner to Australia Sujatha Singh on Thursday apprised External Affairs Minister SM Krishna and senior ministry officials about the Indians' security Down Under and the steps Australian authorities have taken to prevent attacks on members of the community.
"She met the minister for about 15-20 minutes. She was called by the government for consultations on issues relating to continuing assaults on Indians," said a ministry official.
Ahead of her visit to New Delhi, the envoy had met Victoria Premier John Brumby, who apprised her of the measures put in place to improve law and order and the safety of foreign students in the state.
The meeting followed Brumby's request after Sujatha Singh made strong remarks against his government, saying Victoria was in "a state of denial".
Earlier this week, Australian Foreign Minister Stephen Smith admitted that some of the attacks on Indians in his country were indeed racist in nature and pressed the need to build strong ties with New Delhi.
"She met the minister for about 15-20 minutes. She was called by the government for consultations on issues relating to continuing assaults on Indians," said a ministry official.
Ahead of her visit to New Delhi, the envoy had met Victoria Premier John Brumby, who apprised her of the measures put in place to improve law and order and the safety of foreign students in the state.
The meeting followed Brumby's request after Sujatha Singh made strong remarks against his government, saying Victoria was in "a state of denial".
Earlier this week, Australian Foreign Minister Stephen Smith admitted that some of the attacks on Indians in his country were indeed racist in nature and pressed the need to build strong ties with New Delhi.
Infosys to recruit 15,000 as a part of its campus recruitment
Infy management said " they will start recruiting as many as 15,000 in campus recruitment programs".
The company have already hiked the salary of its present work force upto 9% in avg. across India & the pricing has been flat. The next cycle of hike will be in april.
The company sources said " they are looking for aquisition across Europe, US & in non- english speaking countries as well. The companies from India will have to invest in China for long term to make their presence a fruitful."
The company have already hiked the salary of its present work force upto 9% in avg. across India & the pricing has been flat. The next cycle of hike will be in april.
The company sources said " they are looking for aquisition across Europe, US & in non- english speaking countries as well. The companies from India will have to invest in China for long term to make their presence a fruitful."
Wipro in acquisition mood..
Wipro is likely to restructure its telecom segment & is also to set up new campuses at four places for its IT services.
The company is said to acquire even small cos for expanding its bubsiness areas and is about to call 7,500 candidates who have received offer letters in the second quarter.
The company is said to acquire even small cos for expanding its bubsiness areas and is about to call 7,500 candidates who have received offer letters in the second quarter.
Google's Buzz areas of concern.
Google Buzz continues to make waves as the Gmail- and mobile device-based social networking platform reaches the masses this week.
Buzz takes one part Facebook, one part Twitter, one part YouTube and one part Flickr and blends it for a social networking platform lodged directly into Gmail. So far, Google Buzz has been receiving mixed praise. As with any new platform where people share information, however, privacy is a huge question. People post personal information, photos and other content to share with friends, not with the world. It's up to Google Buzz to keep that information to its intended recipients.
Early on, Google Buzz has come under scrutiny for lacking some fundamental privacy and security. Here are three areas Google Buzz needs to tighten up before users will be confident enough to make it their single social networking service:
1. Google Buzz automatically imports contacts and shows them as friends. One of Google Buzz's biggest selling points is its auto-follow feature, which automatically makes Buzz users friends with the people they communicate with most through Gmail -- if those people are also using Buzz, of course. Essentially, Buzz starts following those people and makes that list public, meaning strangers get a look at who Buzz users are in contact with. "Imagine ... a wife discovering that her husband e-mails and chats with an old girlfriend," "Imagine a boss discovers a subordinate e-mails with executives at a competitor." In Google's defense, Buzz users can turn that feature off, though it is set as a default. Also, it only shares that information with other Buzz users who have set up profiles.
2. Google Buzz grabs photos without a user uploading them. It "appears to grab photos off the Android phone that have never uploaded. Let that be a warning to Buzz users that photos stored on their Android devices may very well be broadcast to friends and contacts, whether they like it or not.
3. Google Buzz can pinpoint and broadcast your exact location. Yes, Google Buzz is designed to keep friends and contacts connected and let them share content. But do users really want all of those contacts to know exactly where they are at all times, right down to the street number? With Buzz for mobile devices, it can do just that. When users visit the mobile app via Android, they are asked whether they want to share their location or not. That location can also be saved and remembered as a preference if users want.
Buzz takes one part Facebook, one part Twitter, one part YouTube and one part Flickr and blends it for a social networking platform lodged directly into Gmail. So far, Google Buzz has been receiving mixed praise. As with any new platform where people share information, however, privacy is a huge question. People post personal information, photos and other content to share with friends, not with the world. It's up to Google Buzz to keep that information to its intended recipients.
Early on, Google Buzz has come under scrutiny for lacking some fundamental privacy and security. Here are three areas Google Buzz needs to tighten up before users will be confident enough to make it their single social networking service:
1. Google Buzz automatically imports contacts and shows them as friends. One of Google Buzz's biggest selling points is its auto-follow feature, which automatically makes Buzz users friends with the people they communicate with most through Gmail -- if those people are also using Buzz, of course. Essentially, Buzz starts following those people and makes that list public, meaning strangers get a look at who Buzz users are in contact with. "Imagine ... a wife discovering that her husband e-mails and chats with an old girlfriend," "Imagine a boss discovers a subordinate e-mails with executives at a competitor." In Google's defense, Buzz users can turn that feature off, though it is set as a default. Also, it only shares that information with other Buzz users who have set up profiles.
2. Google Buzz grabs photos without a user uploading them. It "appears to grab photos off the Android phone that have never uploaded. Let that be a warning to Buzz users that photos stored on their Android devices may very well be broadcast to friends and contacts, whether they like it or not.
3. Google Buzz can pinpoint and broadcast your exact location. Yes, Google Buzz is designed to keep friends and contacts connected and let them share content. But do users really want all of those contacts to know exactly where they are at all times, right down to the street number? With Buzz for mobile devices, it can do just that. When users visit the mobile app via Android, they are asked whether they want to share their location or not. That location can also be saved and remembered as a preference if users want.
India's cheapest 3G phone Nokia 2730
Nokia has launched its most affordable 3G handset, Nokia 2730 classic, in the Indian market.
The device is equipped with Nokia’s Ovi Mail, Nokia Messaging, Nokia Life Tools and browsing. The phone also comes with an integrated Opera mini browser.
Vineet Taneja, Director Marketing Nokia India said, “Nokia has always had a holistic approach towards driving the adoption of 3G in India, both at the infrastructure and at the handset level.
Available in black and dark magenta colours, the handset measures 109.6 mm x 46.9 mm x 14.4 mm and weighs 87.7 grams.
The battery life offers maximum of 7.4 hours talktime and 16.5 days standby time. The handset is priced at Rs 4,499.
The device is equipped with Nokia’s Ovi Mail, Nokia Messaging, Nokia Life Tools and browsing. The phone also comes with an integrated Opera mini browser.
Vineet Taneja, Director Marketing Nokia India said, “Nokia has always had a holistic approach towards driving the adoption of 3G in India, both at the infrastructure and at the handset level.
Available in black and dark magenta colours, the handset measures 109.6 mm x 46.9 mm x 14.4 mm and weighs 87.7 grams.
The battery life offers maximum of 7.4 hours talktime and 16.5 days standby time. The handset is priced at Rs 4,499.
Kashmiris moved to PoK are welcome if they return- Chidhambaram
Opposition Peoples Democratic Party today welcomed the statement of Union Home Minister P Chidambaram on the Kashmiris who had gone to PoK, saying it was endorsement of the policy being propagated by the party.
"The statement of Union Home Minister is a welcome change. We hope that other demands like revocation of draconian law, Armed Forces Special Power Act (AFSPA), and demilitarization would also be fulfilled to normalize situation in the state," PDP President Mehbooba Mufti said.
"Keeping in view the prevailing situation in Kashmir valley, there was a dire need to take some more steps to heel wounds of the people," Mufti said.
Earlier in the day, Chidambaram said in Delhi that the government was ready to "welcome" Kashmiris who had gone to Pakistan-occupied Kashmir (PoK) if they were ready to return after giving up militancy.
"The statement of Union Home Minister is a welcome change. We hope that other demands like revocation of draconian law, Armed Forces Special Power Act (AFSPA), and demilitarization would also be fulfilled to normalize situation in the state," PDP President Mehbooba Mufti said.
"Keeping in view the prevailing situation in Kashmir valley, there was a dire need to take some more steps to heel wounds of the people," Mufti said.
Earlier in the day, Chidambaram said in Delhi that the government was ready to "welcome" Kashmiris who had gone to Pakistan-occupied Kashmir (PoK) if they were ready to return after giving up militancy.
Arunachal hostel fire death toll may rise..
Ten children, all under 7 years, were burnt alive after their hostel in an Arunachal Pradesh town caught fire on Wednesday night. Four others sustained serious burn injuries while four more were missing, presumably reduced to ashes.
The hostel, made of bamboo in typical tribal style, housed 62 children. They studied in the adjoining Don Bosco School, the most preferred educational institution in Kurung Kumey district’s Palin town, 230 km north of State capital Itanagar.
The news reached district headquarters Koloriang, 80 km north of Palin, in the morning after circle officials traveled all the way. Reason: the Palin area has had no electricity and telephone or mobile connectivity for the past three days.
Kurung Kumey district borders Tibet Autonomous Region under Chinese occupation.
Eyewitnesses said the hostel caught fire around 8.30 pm. A group of locals and CRPF personnel from a camp nearby helped fight the fire and drag most of the children out. The fire was brought under control around 10.30 pm, but it had already claimed the children and left widowed hostel owner Biri Nyari (35) with over 70 per cent burns.
Palin, like most small hill towns across the Northeast, has no fire brigade.
“Ten children, three of them girls, are confirmed dead. We have identified them from their assigned beds and belongings,” Kurung Kumey deputy commissioner Remo Kamki. “Family members have taken the survivors back to villages nearby.”
Officials said the toll could go up with four of the injured children in critical condition. Along with Nyari, they are battling for life in the Ram Krishna Mission Hospital in Itanagar.
Besides, there’s no trace of four more children missing after the fire. “It’s possible they are dead, burnt beyond recognition,” a police officer said.
The hostel, made of bamboo in typical tribal style, housed 62 children. They studied in the adjoining Don Bosco School, the most preferred educational institution in Kurung Kumey district’s Palin town, 230 km north of State capital Itanagar.
The news reached district headquarters Koloriang, 80 km north of Palin, in the morning after circle officials traveled all the way. Reason: the Palin area has had no electricity and telephone or mobile connectivity for the past three days.
Kurung Kumey district borders Tibet Autonomous Region under Chinese occupation.
Eyewitnesses said the hostel caught fire around 8.30 pm. A group of locals and CRPF personnel from a camp nearby helped fight the fire and drag most of the children out. The fire was brought under control around 10.30 pm, but it had already claimed the children and left widowed hostel owner Biri Nyari (35) with over 70 per cent burns.
Palin, like most small hill towns across the Northeast, has no fire brigade.
“Ten children, three of them girls, are confirmed dead. We have identified them from their assigned beds and belongings,” Kurung Kumey deputy commissioner Remo Kamki. “Family members have taken the survivors back to villages nearby.”
Officials said the toll could go up with four of the injured children in critical condition. Along with Nyari, they are battling for life in the Ram Krishna Mission Hospital in Itanagar.
Besides, there’s no trace of four more children missing after the fire. “It’s possible they are dead, burnt beyond recognition,” a police officer said.
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