Good relations between Pakistan and India are vital for fighting Islamist militancy, Pakistani president Asif Ali Zardari said on Saturday, as the old rivals prepare for their first official talks since the Mumbai attack.
Top officials in the foreign ministries of the two nuclear-armed neighbours are to meet in New Delhi on Feb 25 after India this month offered to hold high-level talks.
In a meeting with Pakistan's high commissioner, or ambassador, to India, Zardari said Pakistan wanted "meaningful and result-oriented talks' with India.
That, he said, would include resumption of the full peace process centred on so-called composite dialogue covering all bilateral problems, including their core dispute over the Himalayan region of Kashmir.
"Good neighbourly relations are essential for the welfare of both countries and also for fighting militancy," a statement from Zardari's office quoted him as saying.
New Delhi suspended a four-year-old peace process with Pakistan after the attack on the Indian city of Mumbai by Pakistan-based Islamist militants in 2008 that killed 166 people.
India had demanded action against the militants it says were behind the assault before the peace process could resume, but offered dialogue despite little progress in Pakistan's prosecution of seven suspects.
The United States has also urged the two countries to resume engagement to help stabilise Afghanistan, where it is deploying tens of thousands more troops into battle against the militants.
An easing of tension with India would help Pakistan to focus on its fight on al Qaeda-linked militants on its western borders with Afghanistan.
Indian officials say they offered Pakistan open-ended talks on all issues affecting peace and security, emphasising counter-terrorism.
Analysts expect no breakthrough on core disputes, but say any renewed engagement after more than a year is a good sign.
The neighbours have fought three wars since securing independence in 1947, two of them over Muslim-majority Kashmir, which both claim in full but rule in part.
Saturday, February 13, 2010
Bandh in Shimla to protest agaonst cow Slaughtery
Normal life was hit in the Himachal Pradesh capital on Saturday as private business establishments adhered to the shutdown call by various Hindu organisations and remained closed to protest the slaughter of a cow near Shimla.
Eyewitnesses said activists of the Bajrang Dal and other organisations staged a demonstration in the city and forced the shopkeepers to close their shops. However, there was no report of any untoward incident.
The Hindu organisations have called for a shutdown from 10 a.m. to 2 p.m.
Violent protests erupted Friday in villages of Shimla district over the slaughter. A mosque and a few shops that were open were attacked at Nerwa, some 120 km from here.
Superintendent of Police R.M. Sharma told that the situation in Shimla was under control.
"We have deployed more than 200 (extra) police personnel in Shimla to monitor the situation. Law and order will be maintained," he said.
In the villages, however, life returned to normal on Saturday.
Eyewitnesses said activists of the Bajrang Dal and other organisations staged a demonstration in the city and forced the shopkeepers to close their shops. However, there was no report of any untoward incident.
The Hindu organisations have called for a shutdown from 10 a.m. to 2 p.m.
Violent protests erupted Friday in villages of Shimla district over the slaughter. A mosque and a few shops that were open were attacked at Nerwa, some 120 km from here.
Superintendent of Police R.M. Sharma told that the situation in Shimla was under control.
"We have deployed more than 200 (extra) police personnel in Shimla to monitor the situation. Law and order will be maintained," he said.
In the villages, however, life returned to normal on Saturday.
RBI classifies Infra finance Cos as NBFCs.
The Reserve Bank of India or RBI on Friday classified infrastructure finance companies as non banking finance company, the central bank said in a notification. The move comes after a number of NBFCs engaged in infrastructure financing made a representation to the banking regulator seeking a separate category of infrastructure financing NBFCs in view of the critical role played by them in providing credit to the infrastructure sector.
“Currently, the RBI classifies NBFCs under three categories-- asset finance companies, loan companies and investment companies. It has now been decided to introduce a fourth category of NBFCs as infrastructure finance companies (IFCs),’’ RBI said.
To be categorised as an NBFC the IFC should have a networth of about Rs300crore, capital adequacy ratio of 15% and a minimum credit rating of ’A’ or equivalent from accredited rating agencies.
The central bank has also permitted these NBFCs to exceed the concentration of credit norms in lending and investment. According to the RBI guidelines no financial institution can lend in excess of 10% of its net owned funds to any single borrower and in excess of 15% of its net owned funds to any single group of borrowers.
“Currently, the RBI classifies NBFCs under three categories-- asset finance companies, loan companies and investment companies. It has now been decided to introduce a fourth category of NBFCs as infrastructure finance companies (IFCs),’’ RBI said.
To be categorised as an NBFC the IFC should have a networth of about Rs300crore, capital adequacy ratio of 15% and a minimum credit rating of ’A’ or equivalent from accredited rating agencies.
The central bank has also permitted these NBFCs to exceed the concentration of credit norms in lending and investment. According to the RBI guidelines no financial institution can lend in excess of 10% of its net owned funds to any single borrower and in excess of 15% of its net owned funds to any single group of borrowers.
Adobe issues 2 more security holes..
Adobe on Thursday issued two security bulletins to address vulnerabilities in its Flash Player software and in its LiveCycle and ColdFusion software.
It also issued a security advisory about vulnerabilities in its Reader and Acrobat software that will be addressed in a patch next week.
The Flash Player vulnerability is designated "critical" and affects version 10.0.42.34 and earlier. Flash Player 10.0.45.2 resolves the issue and is available for download.
The vulnerability affecting LiveCycle 9.0, 8.2.1 and 8.0.1, and ColdFusion 9.0, 8.0.1, 8.0 and 7.0.2, resides in the BlazeDS 3.2 component, or earlier, and has been rated "important." Adobe has posted fix details on its Web site.
Adobe's advisory warns of "critical" flaws in Reader 9.3 for Windows, Macintosh and UNIX, Acrobat 9.3 for Windows and Macintosh, and Reader 8.2 and Acrobat 8.2 for Windows and Macintosh.
"This vulnerability (CVE-2010-0186) could subvert the domain sandbox and make unauthorized cross-domain requests," Adobe's advisory says.
Adobe plans to make a fix available on February 16.
It also issued a security advisory about vulnerabilities in its Reader and Acrobat software that will be addressed in a patch next week.
The Flash Player vulnerability is designated "critical" and affects version 10.0.42.34 and earlier. Flash Player 10.0.45.2 resolves the issue and is available for download.
The vulnerability affecting LiveCycle 9.0, 8.2.1 and 8.0.1, and ColdFusion 9.0, 8.0.1, 8.0 and 7.0.2, resides in the BlazeDS 3.2 component, or earlier, and has been rated "important." Adobe has posted fix details on its Web site.
Adobe's advisory warns of "critical" flaws in Reader 9.3 for Windows, Macintosh and UNIX, Acrobat 9.3 for Windows and Macintosh, and Reader 8.2 and Acrobat 8.2 for Windows and Macintosh.
"This vulnerability (CVE-2010-0186) could subvert the domain sandbox and make unauthorized cross-domain requests," Adobe's advisory says.
Adobe plans to make a fix available on February 16.
Smith's finger injury makes his presence doubtful for the 2nd test.
South Africa captain Graeme Smith is in doubt for the second test against India starting Sunday, with the visitors needing only a draw to clinch a series victory and reclaim top spot in the world test rankings.
Smith injured the little finger on his left hand during catching practice on Friday. A scan showed ligament damage that could threaten his participation in the Eden Gardens test.
"There has been considerable swelling," media spokesman Michael Owen-Smith said.
"We have to wait for the next 24 hours to see how things are."
Smith was expected to test out the injury at a net session on Saturday.
Smith injured the little finger on his left hand during catching practice on Friday. A scan showed ligament damage that could threaten his participation in the Eden Gardens test.
"There has been considerable swelling," media spokesman Michael Owen-Smith said.
"We have to wait for the next 24 hours to see how things are."
Smith was expected to test out the injury at a net session on Saturday.
IPL bans Ravindra Jadeja for a yr.
The governing council of Indian Premier League (IPL) on Saturday imposed a one-year ban on Ravindra Jadeja for non-adherence to the IPL players' guidelines.
"The ban was on account of Ravindra Jadeja not signing the renewal contract with the Rajasthan Royals and attempting instead to negotiate a larger financial contract with some of the other IPL franchises, thus resulting in a serious non-adherence to the IPL player guidelines," IPL said in a statement.
Jadeja will not be able to play in the third edition of IPL beginning March 12.
"The ban was on account of Ravindra Jadeja not signing the renewal contract with the Rajasthan Royals and attempting instead to negotiate a larger financial contract with some of the other IPL franchises, thus resulting in a serious non-adherence to the IPL player guidelines," IPL said in a statement.
Jadeja will not be able to play in the third edition of IPL beginning March 12.
Friday, February 12, 2010
VVS set to return for the second test against SA.
Experienced middle-order batsman Vangipurappu Laxman has been declared fit to play in the second and final test against South Africa starting on Sunday, India's chief selector Kris Srikkanth said.
Laxman missed the opening test with a finger injury as top-ranked India lost by an innings and six runs in Nagpur, their first defeat on home soil in almost two years.
"Laxman is going to be back in the Kolkata test match," Srikkanth told the CNN-IBN news channel on Thursday. "He has said he is 100 percent fit."
Laxman's return should bolster India's inexperienced middle-order which has been without injured duo Rahul Dravid (jaw) and Yuvraj Singh (wrist), both ruled out of the two-test series.
Laxman missed the opening test with a finger injury as top-ranked India lost by an innings and six runs in Nagpur, their first defeat on home soil in almost two years.
"Laxman is going to be back in the Kolkata test match," Srikkanth told the CNN-IBN news channel on Thursday. "He has said he is 100 percent fit."
Laxman's return should bolster India's inexperienced middle-order which has been without injured duo Rahul Dravid (jaw) and Yuvraj Singh (wrist), both ruled out of the two-test series.
Cricket cleared to bid for olympic game....
Cricket was cleared to pursue its bid to be included in future Games after the International Olympic Committee (IOC) rubberstamped the sport's recognition on Thursday.
Cricket, powerboating and sports climbing became the latest sports to be officially recognised by the IOC, a status necessary before launching a bid to become part of the Olympic programme.
"The session gave definite recognition to the three federations," IOC spokesman Mark Adams told reporters.
The three sports can now bid to join the 2020 Olympics as the programme is always determined seven years in advance.
Golf and rugby were latest inclusions in the 2016 Rio de Janeiro Games when an IOC session voted them in last year.
The decision about new sports for the 2020 Games will be taken at the IOC session in Buenos Aires in 2013 where the host country will also be picked.
Cricket, powerboating and sports climbing became the latest sports to be officially recognised by the IOC, a status necessary before launching a bid to become part of the Olympic programme.
"The session gave definite recognition to the three federations," IOC spokesman Mark Adams told reporters.
The three sports can now bid to join the 2020 Olympics as the programme is always determined seven years in advance.
Golf and rugby were latest inclusions in the 2016 Rio de Janeiro Games when an IOC session voted them in last year.
The decision about new sports for the 2020 Games will be taken at the IOC session in Buenos Aires in 2013 where the host country will also be picked.
TRAI plans to roll out 4G service ASAP
India has begun the process of introducing fourth-generation (4G) mobile wireless broadband services, even though the government has yet to finalise a date for its long-pending 3G spectrum auction.
The Telecom Regulatory Authority of India (TRAI) on Wednesday sought industry views on advanced 4G mobile systems, as it prepares a consultation paper on the new technology, that it said would be 10 times faster than 3G.
"It is necessary that our country should be prepared to introduce 4G services at the earliest," the TRAI said.
It said Sweden and Norway had already launched IMT-Advanced (4G) mobile wireless broadband networks and operators in the United States, Korea and Japan were gearing up for these services.
The TRAI said it would deliberate on issues such as pricing of spectrum and licensing in its consultation paper.
India is the world's second-largest and the fastest-growing mobile market in terms of subscribers, but most of its networks are of second generation.
The country's plan to auction spectrum for 3G and broadband wireless access (BWA) services has been delayed as defence forces, which have much of the spectrum, are yet to vacate it for civilian use.
The auction was set to begin from Jan. 14, but Telecoms Minister Andimuthu Raja said on Jan. 12 some of the differences with the defence ministry were yet to be resolved and that a new date had not been agreed upon.
Media reports have said the auction could be delayed until September when the spectrum is expected to be available.
The Telecom Regulatory Authority of India (TRAI) on Wednesday sought industry views on advanced 4G mobile systems, as it prepares a consultation paper on the new technology, that it said would be 10 times faster than 3G.
"It is necessary that our country should be prepared to introduce 4G services at the earliest," the TRAI said.
It said Sweden and Norway had already launched IMT-Advanced (4G) mobile wireless broadband networks and operators in the United States, Korea and Japan were gearing up for these services.
The TRAI said it would deliberate on issues such as pricing of spectrum and licensing in its consultation paper.
India is the world's second-largest and the fastest-growing mobile market in terms of subscribers, but most of its networks are of second generation.
The country's plan to auction spectrum for 3G and broadband wireless access (BWA) services has been delayed as defence forces, which have much of the spectrum, are yet to vacate it for civilian use.
The auction was set to begin from Jan. 14, but Telecoms Minister Andimuthu Raja said on Jan. 12 some of the differences with the defence ministry were yet to be resolved and that a new date had not been agreed upon.
Media reports have said the auction could be delayed until September when the spectrum is expected to be available.
Indian techie firms makes the forecast to be false..
India's software and services exports in the year to March 2011 will be less than earlier expected as the sector's growth has not been cranked-up enough by the recovering global economy, an industry body said on Thursday.
The National Association of Software and Service Companies (Nasscom) projected export revenue to grow 13-15 percent to $56-$57 billion, below the previous outlook for $60-$62 billion.
The National Association of Software and Service Companies (Nasscom) projected export revenue to grow 13-15 percent to $56-$57 billion, below the previous outlook for $60-$62 billion.
Facebook changes its Ad format after talks with Microsoft
Facebook is taking full control of display ads on the world's No. 1 social networking website, cutting short an exclusive deal that had allowed Microsoft Corp to manage part of that business.
However, Microsoft -- the exclusive provider of Web search on Facebook -- will continue to sell text-based search ads on the website as the partners extended the arrangement beyond 2011, when it had been due to expire. A Facebook spokesman declined to say how long the deal has been extended.
Microsoft also said it will further integrate its Bing search engine into Facebook while expanding its reach beyond the United States.
However, Microsoft -- the exclusive provider of Web search on Facebook -- will continue to sell text-based search ads on the website as the partners extended the arrangement beyond 2011, when it had been due to expire. A Facebook spokesman declined to say how long the deal has been extended.
Microsoft also said it will further integrate its Bing search engine into Facebook while expanding its reach beyond the United States.
Bharti & Reliance to launch their App stores ...
India's top two mobile firms, Bharti Airtel and Reliance Communications, both plan to launch online mobile applications stores, opening up a new revenue stream from add-on services such as music and social networking.
Bharti Airtel said on Tuesday it would provide more than 1,250 applications across 25 categories including games, books and social networking on its applications store.
Reliance Communications said the first version of its applications store would go live for GSM customers by the end of February, and by the end of March an expanded version would be available to its CDMA customers as well.
Globally, Apple Inc's App Store has proved extremely popular. Phone makers, operators and technology firms including Nokia, Research In Motion, Vodafone and Microsoft Corp have also sought a piece of the pie.
In January, seventh-ranked Aircel, which is majority-owned by Malaysia's Maxis, was the first Indian operator to announce a mobile applications store, when it signed a deal with No. 2 software services firm Infosys Technologies.
India, the world's fastest-growing mobile market, is predominantly a voice-centric market, with just over 10 percent of mobile operators' revenue coming from data, but researcher Gartner expects data services revenue to grow faster in the next few years.
Bharti Airtel said on Tuesday it would provide more than 1,250 applications across 25 categories including games, books and social networking on its applications store.
Reliance Communications said the first version of its applications store would go live for GSM customers by the end of February, and by the end of March an expanded version would be available to its CDMA customers as well.
Globally, Apple Inc's App Store has proved extremely popular. Phone makers, operators and technology firms including Nokia, Research In Motion, Vodafone and Microsoft Corp have also sought a piece of the pie.
In January, seventh-ranked Aircel, which is majority-owned by Malaysia's Maxis, was the first Indian operator to announce a mobile applications store, when it signed a deal with No. 2 software services firm Infosys Technologies.
India, the world's fastest-growing mobile market, is predominantly a voice-centric market, with just over 10 percent of mobile operators' revenue coming from data, but researcher Gartner expects data services revenue to grow faster in the next few years.
Finance ministry decides to push 3G auction ahead...
Finance Minister Pranab Mukherjee has decided to push ahead with the third-generation (3G) mobile spectrum auction within the current financial year ending March 31, the Financial Express newspaper reported on Friday.
The auction was set to begin from Jan. 14, but Telecoms Minister Andimuthu Raja said on Jan. 12 some of the differences with the defence ministry were yet to be resolved and that a new date had not been agreed upon.
Media reports have said that the auction had been postponed to the next financial year.
The auction would now be conducted in the second half of March, with the entire process compressed into 15 days against the earlier scheduled one-and-a-half months.
The government, which is fighting a 16-year high fiscal deficit, is targeting to raise around 350 billion rupees ($7.53 billion) through the auction.
It hopes to use the proceeds to partly cut down the fiscal deficit, estimated to touch 6.8 percent of the gross domestic product in 2009/10.
The auction was set to begin from Jan. 14, but Telecoms Minister Andimuthu Raja said on Jan. 12 some of the differences with the defence ministry were yet to be resolved and that a new date had not been agreed upon.
Media reports have said that the auction had been postponed to the next financial year.
The auction would now be conducted in the second half of March, with the entire process compressed into 15 days against the earlier scheduled one-and-a-half months.
The government, which is fighting a 16-year high fiscal deficit, is targeting to raise around 350 billion rupees ($7.53 billion) through the auction.
It hopes to use the proceeds to partly cut down the fiscal deficit, estimated to touch 6.8 percent of the gross domestic product in 2009/10.
No major tax reforms expected this budget session...
India's Finance Minister Pranab Mukherjee will not present a major tax reform to bring down corporate tax and simplify income tax rules this month, the Business Standard daily said on Friday, citing unnamed sources.
The Direct Taxes Code bill was expected to be presented in the budget session of parliament beginning on Feb 22, with the aim of coming into effect from April next year.
There were several complications in the Direct Taxes Code in its present form, and it required further scrutiny, the newspaper said, citing unnamed senior government official.
The Business Standard added that the government may delay the major tax reform bill to the next session of parliament, which starts in July.
The Direct Taxes Code bill was expected to be presented in the budget session of parliament beginning on Feb 22, with the aim of coming into effect from April next year.
There were several complications in the Direct Taxes Code in its present form, and it required further scrutiny, the newspaper said, citing unnamed senior government official.
The Business Standard added that the government may delay the major tax reform bill to the next session of parliament, which starts in July.
UID on full swing - to be completed in next five yrs...
600 million IDs will be issued over the next five years
Nandan NilekaniClose to 30 IT professionals are expected to assist Nandan Nilekani in his endeavour to give 1.20 billion residents in India a Unique Identification (UID) number.
“I have requested the industry to allow its skilled professionals to voluntarily participate in the authentication process. The companies could allow these professionals to go on sabbaticals for a year or two. We have received interest from individuals and firms,” Nandan Nilekani, Chairman of the UID project, said at the Nasscom Leadership Forum today.
Over the next five years, nearly 600 million IDs will be issued, with the first set of numbers being expected between August 2010 and February 2011.
“In the next few weeks, we will appoint a consultant to help us draft the request for proposal (RFP) for the managed services provider. Post that, we will start doing pilots and conduct proof-of-concepts to check how the technology works for the database of 1.20 billion people.”
Nilekani indicated that the managed services provider would have to ensure robust security measure to protect the online database. The plan aims to provide real-time online authentication. “The key issue for us is to ensure that there are no duplicates in ID system, like it is happening in other schemes. The problem with identity is that many national and state projects have duplicates that had led to frauds while implementing various government programmes,” Nilekani said.
“The data will also be available across the country on cellphone networks that can be validated on any mobile handsets, online, or can be embedded within a software programme,” said Nilekani. On these open-ended systems, companies can build applications that will cater to certain specific industry usage like health care, he added.
He accepted that the maximum challenge was during the enrollment due to the inherent challenges in India.
The project, if successful, will be a money spinner for the IT industry. The project, according to Nilekani, will lift the hardware market in a big way, as it could lead to a large demand for point of sale equipment, iris scanners and biometric devices. The government had earmarked a fund of Rs 120 crore for the UID project for 2009-10.
Nandan NilekaniClose to 30 IT professionals are expected to assist Nandan Nilekani in his endeavour to give 1.20 billion residents in India a Unique Identification (UID) number.
“I have requested the industry to allow its skilled professionals to voluntarily participate in the authentication process. The companies could allow these professionals to go on sabbaticals for a year or two. We have received interest from individuals and firms,” Nandan Nilekani, Chairman of the UID project, said at the Nasscom Leadership Forum today.
Over the next five years, nearly 600 million IDs will be issued, with the first set of numbers being expected between August 2010 and February 2011.
“In the next few weeks, we will appoint a consultant to help us draft the request for proposal (RFP) for the managed services provider. Post that, we will start doing pilots and conduct proof-of-concepts to check how the technology works for the database of 1.20 billion people.”
Nilekani indicated that the managed services provider would have to ensure robust security measure to protect the online database. The plan aims to provide real-time online authentication. “The key issue for us is to ensure that there are no duplicates in ID system, like it is happening in other schemes. The problem with identity is that many national and state projects have duplicates that had led to frauds while implementing various government programmes,” Nilekani said.
“The data will also be available across the country on cellphone networks that can be validated on any mobile handsets, online, or can be embedded within a software programme,” said Nilekani. On these open-ended systems, companies can build applications that will cater to certain specific industry usage like health care, he added.
He accepted that the maximum challenge was during the enrollment due to the inherent challenges in India.
The project, if successful, will be a money spinner for the IT industry. The project, according to Nilekani, will lift the hardware market in a big way, as it could lead to a large demand for point of sale equipment, iris scanners and biometric devices. The government had earmarked a fund of Rs 120 crore for the UID project for 2009-10.
Charcoaled face....
Pramod Muthalik, leader of the right-wing Sri Rama Sene that functions as a moral police in Karnataka, got a taste of his own medicine on Wednesday when his face was blackened by the alleged activists of the Youth Congress in the middle of an open air debate on Valentine’s Day hosted by a local TV channel.
Muthalik and several others had been invited for the debate titled ‘Love Wars’ organised by the Asianet Suvarna channel outside the Ravindra Kalakshetra on Thursday evening. Muthalik who has been threatening to disrupt the Valentine’s Day festivities was involved in a heated argument with other panelists, including Agni Sridhar, a former underworld don-turned-social activist, who had been threatening to teach Muthalik’s men a lesson if they try to disrupt Valentine’s Day.
According to eyewitness accounts, several youths clambered on to the makeshift stage where the debate was being filmed and cornered Muthalik in his seat, pushed him to the ground and smeared his face with charcoal. The youths escaped before the police could swing into action.
Muthalik and several others had been invited for the debate titled ‘Love Wars’ organised by the Asianet Suvarna channel outside the Ravindra Kalakshetra on Thursday evening. Muthalik who has been threatening to disrupt the Valentine’s Day festivities was involved in a heated argument with other panelists, including Agni Sridhar, a former underworld don-turned-social activist, who had been threatening to teach Muthalik’s men a lesson if they try to disrupt Valentine’s Day.
According to eyewitness accounts, several youths clambered on to the makeshift stage where the debate was being filmed and cornered Muthalik in his seat, pushed him to the ground and smeared his face with charcoal. The youths escaped before the police could swing into action.
Thursday, February 11, 2010
Govt reviews FDI policy & makes it easy for the Investors.
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.
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.
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.
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