Hotel Leela’s new launch in Chennai

Hotel Leela is upbeat on its new launch in Chennai. Rajiv Kaul president of Leela hotels says its corporate debt restructuring is on track and the group will deliver on all its commitments.

"We are very excited. We finally have the Leela Palace, Chennai. It will be open its doors in three weeks from now. This is Chennai's first sea facing hotel. So, we have got rooms that are overlooking the Bay of Bengal as well as the Adyar river. It's a Leela Palace property, a 338 key hotel.  We should be able to welcome our first guests by the middle of December. The CDR is in place, so we have an arrangement. We now have to move forward and make sure that all the elements that we have agreed upon fall in place." adds Kaul

Also read: US, EU slowdown impact hotel sector: Hotel Leela

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Indian Hotels' Bickson cheers bookings for X'mas, New Year

Indian Hotels is optimistic about the festive season coming up with Christmas and New Year's Eve. Speaking exclusively to CNBC-TV18, managing director Raymond Bickson said he is bullish about the third and fourth quarters.

"We are just entering December. The last two quarters of the year are actually the best two quarters of the year. So, I think we are fairly optimistic. The forward bookings in Rajasthan looks pretty good and the weather is looking great. Maldives is going to have a good winter season as well. So, we are looking at hopefully, a better third and fourth quarters."

"I think that the booking is going to look good for Goa. The normal festive holiday area is Goa. Rajasthan really picks up during this time of the year. Tomorrow we are opening up first hotel in North Africa at Marrakech in Morocco."

Bickson also explained that for 2013 the Marrakech property was the only unit that will commence operations. "Hopefully, our Beijing property should also open in 2013."

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Allegations against Robert Vadra appear to be false: PMO

The Prime Minister's Office has said the allegations regarding irregular land dealings between Robert Vadra and real estate major DLF "appear to be false, based on heresay and vexatious".

In an affidavit to the Lucknow bench of Allahabad High Court, the PMO also said the petition filed by local activist Nutan Thakur seeking a direction for a probe into the land dealings Vadra, son-in-law of Congress chief Sonia Gandhi, had with DLF in Haryana was based on media reports about purely commercial transactions, which had been countered by both Vadra and DLF.

The PMO affidavit came in response to a notice issued by a division bench of Justice Umakant Singh and Justice Virendra Kumar Dikshit on October 11 to the Centre listing objections to the maintability of the petition filed by Thakur.

The bench had given three weeks time to the Centre to reply.

A copy of the PMO affidavit reached Thakur on November 26, Thakur's lawyer Ashok Pandey said.

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India Inc worst affected by frauds after Africa

India has the highest number of fraud-hit companies after Africa, according to a report by global advisory firm Kroll.

Fraud risks in India remain above the global average and, outside Africa (77 per cent), the country has seen the highest number of companies affected by frauds at 68 per cent, followed by China and Indonesia at 65 per cent, compared to the global average of 61 per cent, said Kroll's 'Global Fraud Report' released here today.

Theft of physical assets or stock was the most frequent (27 per cent) type of fraud reported.

The report is based on interviews of 800 senior executives worldwide, including 60 from the country.

"This year's report indicates that Indian businesses, despite some improvements, face serious fraud risks," Kroll Advisory Solutions India head Reshmi Khurana said here.

The percentage of domestic businesses affected by fraud has fallen from last year's 84 per cent, she said, adding, "but our experience suggests that while concern for fraud may be falling, fraud is not".

Domestic companies lose on an average 1.2 per cent revenue due to frauds, significantly higher than global average of 0.9 per cent, the report said, suggesting that companies continue to develop strong and well-organised internal controls.

"Companies here are less likely than average to invest in anti-fraud strategies, most notably in the area of information theft where only 40 per cent of companies plan to invest even though they admit that information theft and the resultant losses are a key risk," the report said.

Moreover, 22 per cent of local firms weakened their internal controls frequently as a result of budget constraints, one of the highest figures of any country.

According to the report, 50 per cent of respondents here consider themselves vulnerable to corruption and bribery- related frauds, more than any other type of fraud.

Vendor, supplier or procurement frauds remain the most widespread. A third of the domestic companies which are looking at overseas market, mainly Africa and Asia, put off the investment plans in at least one foreign market because of perceived frauds, compared to 27 per cent globally.

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Vedanta to offer 'fair' price for HZL, Balco

Vedanta on Tuesday said it will fork out the right price, arrived at a "transparent process", for buying out government's residual stake in Hindustan Zinc (HZL) and Bharat Aluminium Company (Balco).

"Whatever is fair. I am looking at the process, we are not looking at negotiating anything. Whatever is the right price, (there is a) process to be adopted," Vedanta chairman Anil Agarwal told reporters in New Delhi. "We know this is the process, transparent process and whatever is the price, that's the price," he said when asked  whether Vedanta would sweeten the offer from what it had made in January.

The government, which currently holds a 29.5-percent stake in HZL and a 49-percent stake in Balco, is looking at exiting from the two firms in which majority stakes were sold to the mining giant during 2001-2003.However, valuations remain the hurdle for taking the deal through.

In January, Vedanta Resources had offered Rs 17,275 crore for the government's remaining stakes in HZL and Balco. But, that did not break the ice. Subsequently, its board got the shareholders' nod to sweeten the offer by up to 25 percent in the two firms. In October, the company said it is still waiting to get a response from the government on its January offer.

The mines ministry, meanwhile, suggested a few options to conducting proper valuation of the two erstwhile PSUs. "They (the government) have asked us...they have been talking to us and are very keen. I believe some decision will come. We are also little nervous... We will work with government," Agarwal said.

At present, Hindustan Zinc is the richest profit-making subsidiary of Vedanta with cash and cash equivalent of Rs 19,136 crore as on September, 2012. The company had reported a net profit of Rs 5,526 crore and net revenues of 11,405 crore in 2011-12.

On the other hand, Balco is an unlisted subsidiary of Vedanta and its valuation has been a bone of contention between the mining firm and the government.

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Scrapping contract with GMR sends 'negative signal': India

India tonight reacted sharply to Maldives government's decision to scrap "without due consultation" the contract given to the GMR Group to develop the Male airport saying it sends a "very negative signal" to foreign investors and the international community.

India asked Maldives to ensure Indian interests and security of Indian nationals in the Indian Ocean island country are "fully protected".

"The decision to terminate the contract with GMR without due consultation with the company or efforts at arbitration provided for under the agreement sends a very negative signal to foreign investors and the international community", the spokesman of the External Affairs Ministry said when asked to comment on the Maldives cabinet's decision.

India, he said, expected that Maldives "would fulfil all legal processes and requirements in accordance with the relevant contracts and agreement it has concluded with GMR in this regard".

The government of India would continue to remain engaged with the government of Maldives on this issue, he added. The spokesman said the consortium consisting of GMR and MAHB (Malaysian Airport Authority) had been awarded the contract to manage the Male International Airport concession through a global tender conducted by the International Finance
Corporation (IFC), Washington, a member of the World Bank.

"As the Advisor to the government of Maldives, the IFC has stated that it has complied with Maldivian laws and regulations and followed international best practices at each step of the bidding process to ensure the highest degree of competitiveness, transparency and credibility of the process", he said.

The investment by GMR represents the single largest foreign direct investment in the history of Maldives. India asked "the government of Maldives and all concerned parties to ensure that Indian interests in Maldives and the security of Indian nationals are fully protected."

The MEA spokesman said India "proposes to monitor the situation in Maldives closely and is prepared to take all necessary measures to ensure the safety and security of its interests and its nationals in the Maldives. The Government of India will continue to be seized of the matter."

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Apollo to buy McGraw-Hill education unit for $2.5 bn

McGraw-Hill said today it agreed to sell its education unit for USD 2.5 billion, allowing the group to focus on financial operations including its Standard & Poor's brand.

The deal calls for McGraw-Hill Education, which produces textbooks and digital educational materials, to be sold to investors led by Apollo Global Management, in a sale expected to close in late 2012 or early 2013.

After closing, McGraw-Hill will be renamed McGraw Hill Financial, and will concentrate on its brands including Standard & Poor's, S&P Dow Jones Indices, S&P Capital IQ, Platts and JD Power and Associates.

"Today's transaction marks a transformative time for our company, shareholders, customers and employees," said Harold McGraw III, chairman and chief executive of The McGraw-Hill Companies.

"This move builds on McGraw-Hill's strong legacy and gives us an unprecedented opportunity to focus on accelerating the growth of our iconic brands and leading franchises.

"As technology produces more and more data in a complex world, our leading brands provide essential intelligence and independent benchmarks across asset classes and markets."

McGraw-Hill said its remaining assets will make it "a high-growth, high-margin benchmarks, content and analytics company in the global capital and commodities markets."

Without the education unit, McGraw-Hill will have customers in more than 150 countries and revenue of approximately USD 4.4 billion.

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Lanco Infratech to raise $2bn for power plants

Engineering and construction company Lanco Infratech plans to raise $2 billion from Chinese banks and financial institutions to fund new power projects.

The fundraising will be led by state-controlled China Development Bank, which is to lend $600 million, Lanco Infratech said in a statement on Monday.

Chinese bank lending to Indian power companies is often on the condition that Chinese manufacturers supply equipment for the new projects.

The proceeds will be used on two power projects in Uttar Pradesh.

"For the past couple of quarters we have been working on strategies to address the liquidity concerns due to delay in receivables from utilities," Lanco Chairman L. Madhusudhan Rao said. "We are also in the process of addressing the debt equity ratio at the same time."

The two power projects will have a combined capacity of 2,640 mega watts, a Lanco official told Reuters, declining to be named because he is not authorised to speak to the media.

The fundraising is expected to be completed by the end of the year, the Lanco official added.

Chinese bank lending to Indian power companies is usually tied to the purchase of equipment from Chinese manufacturers.

Lanco Infratech shares were up 3.7 percent at the close, against a 0.2 percent rise for the BSE Sensex.

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Abraaj Capital unit nabs remittance firm TimesofMoney

Card payment processor Network International, which is owned by Abraaj Capital and Dubai's largest bank, said on Sunday it has bought a majority stake in an online remittance firm held by a unit of India's biggest media group.

Network International Chief Executive Bhairav Trivedi said the purchase of a stake in TimesofMoney, a unit of Times Group, was a prelude to further acquisitions by the Dubai-based firm.

He declined to give the exact size of the stake nor financial terms of the deal but said it was within the industry average of 10-15 times earnings before interest, tax, depreciation and amortisation (EBITDA).

"Our strategy is to become the dominant payments player in the Gulf Cooperation Council, Africa, South Asia and Southeast Asia," Trivedi said at a press conference.

"We have a significant amount of money set aside and we will be active in the next couple of years. When we look at acquisitions, they will be complementary services across these geographies," Trivedi said.

He said the firm was looking for technology in certain areas such as mobile payments, pre-pay cards and home delivery payments.

Network International is 49-percent owned by private equity house Abraaj Capital and 51-percent held by Emirates NBD .

Dubai-based Abraaj has been expected to offload its stake in the card payment processor, either through a public listing in either London or Hong Kong or a private sale, Trivedi said. However, there were no plans in place at the current time, he added.

Deloitte, FT Advisors Ltd and AZB & Partners advised Network International, while UBS , PricewaterhouseCoopers and Nishith Desai Associates assisted Times Internet Limited, TimesofMoney's previous owner.

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Air India woos passengers to T3 with a visit to Taj

Bolstered by a sequential rise in its market share in the past six months and a significant improvement in on-time performance, the state-owned Air India is now wooing passengers with several attractive offers, including a trip to the iconic Taj Mahal from its T3 terminal, to further enhance the market pie.

The latest in the series is "stopover packages" at competitive prices, including a visit to the Taj.

Will Air India's Jaldi Jaldi scheme trigger fare war?

Besides drawing more passengers, the latest effort also aims at promoting its T3 hub in the capital, which is being used by about 3,000 AI's transit passengers daily.

"The stopover package will enable passengers transfer-connecting on AI flights over Delhi to experience the city, with a range of accommodation on offer to fit all budgets," Air India said in a statement.

The domestic passenger data for the last six months show consistent increase in the national carrier's market share with the airline gaining 4.6 per cent between May and October, pushing the till recently No 1 operator Jet Airways to the third slot with 20.8 per cent market share in October, after no-frills carrier IndiGo's 27.8 per cent.

Air India has established Delhi as its hub and it has designed its flight schedule in a manner that facilitates easy transfer connections at the T3, particularly from domestic to international flights and vice versa.

The packages offer the facility of web-based hotel booking, airport/hotel transfers and sightseeing options in and around Delhi, Air India said.

A range of hotels, from budget to 5-star category, located in and around the airport having made available under various packages, including the hotel located inside T3 itself, it added.

Besides, the stopover packages also offer 'day rates', which allows 'wash-and-change' facilities to the passenger at select hotels.

In addition, it also offers overnight stay rates inclusive of airport pick-up, breakfast & taxes with option to upgrade room, extended stay, day-use rates for 'wash-and-change' facility (4/6 hrs as per hotel rules), departure transfers, sightseeing as well as a day trip to the Taj Mahal, the release said.

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FM asks RBI to start issuing new bank licences

Finance Minister P Chidambaram today made it clear to RBI that it has the powers to issue new bank licences and expressed the hope it will take the process forward "appreciating" government's position.

"Let me emphasise that the three powers that RBI want are already there with the RBI. It is already there in the regulation; it is there in the powers to grant the banking licences.

"I am sure the RBI acknowledges and appreciates the well-considered position of the Government and will take the process forward," he told reporters after inaugurating the two -day annual national banking summit (Bancon 2012) here. (Watch full speech)

The Finance Minister said amendments to the Act are simply to formalise powers that the Central bank is seeking and bring them together into the legislation.

Last week, after Chidambaram asked the regulator to start the process of issuing the much-delayed new banking licences, on November 16, RBI Governor D Subbarao had said it would be not possible without fulfilling the enabling conditions.

Asked whether RBI has formally responded to the Ministry that new licences could not be issued without the Bill being passed, Chidambaram said, "well, I don't know if a formal reply has been received to the letter that we sent 10 days ago. I don't know what their formal position is."

Asked whether he is confident of getting the Act passed in the ongoing winter session of Parliament, the Minister replied in the affirmative.

"I am pretty confident that the Banking Regulation Act will be passed as early as possible," Chidambaram said. 

"Even if the RBI picks up the thread and resumes the process that was started about a year ago of finalising the guidelines and issuing the first licence, that is going to take six to eight months and the occasion to invoke these extraordinary powers will not come the next day," he said.

"The occasion to invoke these extraordinary powers will come only when that bank does something wrong. And that is not going to happen one day after the licence is granted.

"Therefore, by the time the occasion arises, the powers will be there in the Banking Regulation Act. So as stated by the then Finance Minister's Budget speech, we must take the process of finalising the guidelines and receiving applications for new bank licences as early as possible," Chidambaram said.

The RBI is seeking powers to supersede the board of an erring bank, to authorise acquisition of shares beyond 5 percent in a bank holding company, and an exit policy in case of irregularities.

On November 15, Chidambaram said he had asked RBI to finalise the guidelines for new licences and start accepting applications for the same pending passage of the Banking Regulations Bill.

The last time the RBI allowed new private banks was in 2002 prior to which it allowed new players in 1991-92.

The RBI issued the final guidelines for new banks in August 2011, including those floated by corporates, but is waiting for the necessary legal powers before it proceeds further. The bank licences were initially slated to be issued way bank in 2008-09.

However, the Finance Ministry wants RBI to speed up the process, under provisions of the Companies Act, without waiting for amendments to the existing banking laws, in its effort to create a positive sentiment among investors and the industry.

The amendments to the Banking Regulations Act will invest RBI with supervisory powers over private companies that would enter the banking sector.

On October 30, at the credit policy announcement also, Subbarao had ruled out any short cuts when it came to issuing new bank licences. "We believed, we believe and we still believe that we need these powers to move forward," he had said, adding "an amendment to the Act is pending for giving us the necessary powers, authority and dispensation to deal with corporates entering the banking sector."

As per the RBI's draft norms released in August 2011, private sector entities or groups owned and controlled by domestic promoters, with diversified ownership, sound credentials and integrity, and having successful track record of at least 10 years, would be eligible to promote banks.

The norms have pegged the minimum capital required for promoting a bank at Rs 500 crore and restricted foreign shareholding at 49 per cent for the first five years of operation.

Also Read: Govt to launch direct cash subsidy transfer from Jan 1

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Re-feel recycles cartridge refills for greener tomorrow

Every year more than 350 million plastic printer cartridges are dumped in land fields worldwide and that is enough waste to cover football fields 17 times over. To make matters worse cartridges are made mostly of plastic and can take more than a thousand years to bio-degrade in a land field.

This reality has forced business to look at cartridge recycling and tapping into this nascent market is the foursome of Alkesh Agarwal, Samit Lakhotia, Amit Barmecha and Rajesh Agarwal, the team behind Re-feel cartridges. With a 120 stores in 85 cities in India Re-feel Cartridges is India's largest printer cartridge recycling and refilling chain.

While we would all like to switch to eco-friendly printing solutions, the increased cost of recyclable printers is a real road block. But a young quartet decided to convert this problem into an opportunity with the launch of Re-feel Cartridges, a company that recycles and refills printer cartridges without burning a hole in your wallet.

Founded by techpreneurs - Alkesh Agarwal, Samit Lakhotia, Amit Barmecha and Rajesh Agarwal in 2007 the venture has recycled over 10 lakh printer cartridges across India. The process is simple- Re-feel collects your old cartridge, refills it with out any loss in quality.

Alkesh Agarwal, says that Re-feel is about printer cartridge recycling. When we use a laser or an inkjet printer we use the cartridge and then throw it away in the land field. In this venture we collect empty cartridges, recycle them so they perform like original without compromising on quality and at the same time providing up to 75 percent benefit to the consumers.

Re-feel cartridges has 120 stores across 80 cities in India. On offer our services like refilling cartridges, selling re-manufactured cartridges, specialty paper for printing and even original cartridges. Operating on the franchise model Re-feel has 990 employees working across India and has clocked revenues of Rs 75 crore so far.

Training franchisees is the key to maintaining quality standards, says Agarwal.

"All franchisees need to visit our Head Office in Kolkata for training. Around 10-days training is given starting their retail stores and making it operational. We want to maintain proper standard all across our stores in India. We earn our royalties from franchisees and also from supplying them the necessary raw materials and required technicalities," says Alkesh.

Alkesh and his team also prevent old laptops from filling on landfills. With 100 stores across 60 cities in India Club Laptop is an eco-friendly franchise concept of multi brand laptop repair stores. Recognized for their eco-conscious efforts we feel Re-feel Cartridges has grabbed investor attention with Rs 25 crore coming in from TLG Capital, London but while the running is now smooth the initial days were not.

"The major challenge was relating to the industry- We were the first in the organized industry to establish ourselves that cartridge refilling can be done successfully and the product can be used without compromising on quality. Initially, our mantra was education through awareness. To make this brand successful, we educated corporates, SMEs that quality refilling can be done," says Alkesh.

This foursome is now ready to target new cities and towns and hopes to use the franchise model to serve up more Re-feel and Club Laptop stores. With a sizeable presence in India, Re-feel team is also looking at venturing into other South Asian countries over the next few years.

 

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NMDC disinvestment likely by Dec 15

Encouraged by the response to its stake sale in Hindustan Copper , the government on Friday said disinvestment of its 10 percent shares in NMDC (National Mineral Development Corporation) is likely to take place in first half of December. "Disinvestment in NMDC should be in the first fortnight of December... They have estimated about Rs 7,000 crore. Let's see," disinvestment secretary M Haleem Khan said.

In October, the government had approved a 10 percent stake sale in the country's largest iron-ore miner NMDC that could fetch the exchequer over Rs 7,000 crore.The disinvestment, like in the case of Hindustan Copper, will be through offer-for-sale (OFS) route, popularly known as auction method.

The government will offer about 39 crore equity in NMDC of face value of Rs 1 each to investors. At present, the government holds 90-percent stake in the (NMDC). As of March 31, 2012, the paid-up equity capital of
NMDC was Rs 396.47 crore.

NMDC has reported a nearly 15 percent decline in net profit at Rs 1,678.62 crore for the quarter ended September 30, 2012, largely due to lower production and fall in sales.Shares of NMDC closed at Rs 166.50 apiece, down 1.89 percent on the BSE on Friday.

Kick-starting the disinvestment process of this year, the government on Friday sold 5.58-percent stake in Hindustan Copper for about Rs 808 crore at an average price of Rs 156.56 apiece, with bulk of the bids coming from LIC and PSU banks.

Encouraged by the response to the first stake sale in the current financial year, finance minister P Chidambaram expressed the hope that government would able to garner the targetted Rs 30,000 crore in 2012-13 through disinvestment.

When asked about the proposed exchange traded funds (ETF) to sell shares of PSUs, Khan said, "We have appointed the advisors and they have already made two presentations. On the basis of report of advisors we will move on for authorisation."

An ETF is an investment fund traded on stock exchanges much like stocks. The fund would be benchmarked against an index on the stock exchange. It will act as additional avenue for disinvestment.

The secretary also expressed confidence that Rs 30,000-crore disinvestment target for the fiscal would be met. "I think we have got enough CCEA's sanction so unless something seriously goes wrong, I don't think there should be any problem (in meeting disinvestment target)," he said.

Among other the Cabinet Committee on Economic Affairs (CCEA) has cleared disinvestment in RINL , Nalco , SAIL , OIL India , BHEL and NTPC .

The government's sale of 4 percent stake in Hindustan Copper Ltd (HCL) was over-subscribed on Friday. A total bid for 5,16,11,858 shares were received. It has been decided to accept the entire number of shares bid for at or above the floor price. Thus, approximately 5.58 percent of the total paid-up share-capital of HCL stands divested through this issue. The approximate gross receipts from the issue is Rs 800 crore.

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TDSAT asks govt to file reply over telcos' petition on fee

Telecom tribunal TDSAT today asked the government to file reply over a batch of petitions by various operators opposing the demand for additional licence fee.

TDSAT also asked the Department of Telecom not to take any coercive action against private telecom operators till December 10, the next date of hearing.
    
A single member bench of P K Rastogi gave 10 days' time to DoT to file a short reply and another 10 days to the operators for their rejoinder.
    
The operators which approached TDSAT are Reliance Communications , Reliance Telecom, Vodafone Cellular, Vodafone East, Vodafone India, Vodafone Mobile Services, Vodafone West, Vodafone Digilink, Vodafone South, Tata Teleservices and Tata Teleservices (Maharshtra).
    
DoT had issued notices to these operators on November 8, seeking additional Adjusted Gross Revenue (AGR) from them and asked them to pay up by November 26.
    
The government had raised the demand for the financial years 2006-07 and 2007-08 after a special audit was conducted that allegedly found under-reporting of their revenue.

Telecom operators pay a certain percentage of their revenue from earnings from specified components as the licence fee, called as AGR.
    
Senior advocate Mukul Rohatgi and Abhishek Manu Singhvi representing the telecom operators sought stay over the demand notice issued by the government saying that there was no need to issue it as still the process of determining it was going on.

However, the argument was opposed by DoT's counsel Vineet Malhotra. He said there was no need to stay as the notice did not ask for any immediate disconnection of services or enforcement.

Moreover, the operators had served the petition yesterday and he has no instruction for the matter. The tribunal consented with DoT's submission and said there was no threat of either disconnection or termination of services.

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Volkswagen to set up distribution centre at Bhiwandi

The German luxury car maker Volkswagen today performed the ground breaking ceremony for setting up its regional parts distribution centre(RDC) at Bhiwandi (Thane), which is expected to be completed by the first quarter of 2014.

This is the second depot by the Volkswagen group in the country under its 'depot network development project' after Gurgaon, a press release said here. The ceremony was kicked off with the traditional bhoomi-poojan in the presence of group's Managing director (India sales) Dorizas and Dietmar Hildebrandt, director group service, it said.

"The group has decided to strengthen the current after- sales services by forming the RDC in Bhiwandi and further strengthen the relationship that we share with the domestic customers," managing director, Volkswagen Group Sales India, Gerry Dorizas said.

The centre will cater to western, southern and eastern regions that account for 60-65 percent of the genuine parts sales for the group in the country. Being strategically located, the centre once completed will significantly contribute to the reduction of the current lead time to provide genuine parts to dealers and service centres, the company said.

Spread over an area of 21,000 square metres, the facility will be equipped with state-of-the-art warehousing software called the ET2000 that has been specially designed for India. The Centre expects to deliver parts within 24 hours to the Group's dealer network in the western region and 72 hours for in southern region, the company said.

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Will grow step-by-step to be No.2 in India: Volvo

 Despite the recent slump the commercial-vehicles market in India is set to double by 2020 and one of the companies that is uniquely placed to garner a large share of the market is the world's second largest truck maker and Swedish auto giant, Volvo. Volvo global CEO Olof Persson, on his first to visit India, explains to CNBC-TV18 that the company will grow step-by-step to be No.2 in the Indian commercial-vehicle market.

Below is an edited transcript of the interview on CNBC-TV18

Q: Globally, the commercial-vehicle market has been going through rough weather. Is It a part of the group strategy to increase focus more on the emerging markets as compared to more established markets that you are present in?

A: I would like to say that India, for the Volvo Group, is a home market. We have been here for 15 years as a group and we have developed the Volvo brand over the years in, what I believe, a very good way addressing the premium segment both in trucks and busses.We believe that in the long term India has all the prerequisites and the fundamentals for continued growth and therefore, we will continue to invest.

We also have created a very good platform, with our cooperation in a 50:50 joint venture with Eicher which allows us access to knowledge and products from their stable. So, that puts us in a very good position in the Indian market.

Q: Along with services, trucks, busses and construction equipment, what is the kind of investment will Volvo make in the Indian market?

A: Volvo's investment, for the next few years, is around Rs 2,000 crore in product development, facilities, engineering capabilities and human resources development.

Q: Are you willing to enter a price war with some of your established Indian rivals? Will you enter the mass segment too?

A: In our joint venture with Eicher we are already in the competitive and value segment. In addition, we will develop a value truck which will be produced in India for the Indian market for the customer segment below the premium segment. So we are catering to both ends of the price segment by thanks to the exchange of knowledge between Volvo and the Eicher group.

Q: What sort of a value truck will this be and what are some of the other Asian markets where it will be produced?

A: Over time, we plan to launch a range of products to address the different markets in South, East and Southeast Asia and we are really excited about this.

Q: What is the kind of price bracket that you would want to introduce the products in?

A: Since we plan to introduce these products over the next few years, the price and features will be announced at a more appropriate time.

Q: Can you explain the relationship through the joint venture you have with Eicher Motors in India?

A: I am really pleased with the way the joint venture has developed. The joint venture has brought to together some of the best minds from across the world in a very open atmosphere. So, the Volvo Group has learnt as much from Eicher as Eicher has from Volvo. And the process has thrown up a whole range of new ideas

Q: Are you already applying some of those ideas in your global manufacturing processes or will you now begin to implement those ideas?

A: I think it is the latter. This is a journey for us and we are taking step-by-step since we plan to be in India for the long term. I am really excited about it.

Q: Do you think that that the Indian commercial-vehicle market has been a duopoly for far too long and that has offers an immense opportunity for manufacturers like Volvo?

A: I don't look at it from that point of view. We are No.3 in India and our aim is to become one of the top two commercial-vehicle manufacturers in India.

Q: What is the kind of timeline that you would be happy with to end up being one of the top two manufacturers in the Indian commercial-vehicle market?

A: That's a very difficult thing to state. I have ideas but I think we will continue to develop and make sure that we do the right things- increase the number of customers and offer the right products. We plan to take one step at a time to grow faster than the market and thereby also grabbing market-share.

Q: How important is the role of emerging markets, especially India and Brazil, going forward?

A: I think emerging markets have the ability to grow at a faster pace given the fundamentals in the market. But I think analysts and businessmen will be disappointed if they believe that the development will be straight or very linear. In general, it is important if fundamentals are there in emerging markets because, according to our long-term view, that is what will drive the market.

Q: Is India among the top growth markets for Volvo globally?

A: Certainly. India is one of the fast-growing markets over the years. Our the construction equipment foray alone has grown much over the last 10 years So the importance of these markets to the group will, I believe, over time eventually assume greater importance.

Q: Can you give us a rough idea of the kind of market share that emerging markets presently constitute to overall Volvo's global sales?

A: Our traditional market, Europe and North America, roughly contribute about 50 percent and the balance comes from eastern Europe, Asia and South America. So we are very much a global company with half of our turnover coming from emerging markets. I believe it is a very healthy balance because it allows us to participate heavily in these markets.

08.11 | 1 komentar | Read More

Centre examining Odisha's move to fine 103 mines: Patel

The Centre is examining the Odisha  government's recent move to impose a whopping fine of Rs 67,900 crore on 103 mines in the state for excess production of iron ore, mines minister Dinsha Patel said on Wednesday.

Questioning the timing of state government's decision, he also said that the Centre will respond soon on the matter. "Why they (Odisha government) did not take action in last 12 years? The rule (under which fine has been imposed) has come into force in 1999 only. Why no action was taken in 2000 or 2005 or in 2009?" he told reporters.

Stating that his ministry is has received a representation from mining industry body FIMI, he said that "we are examining the matter and will respond soon. If they (the state government) had done it before, these issues (of illegal or excess mining) would not have been there".

Early in Novenber, the Odisha government had issued notices to 103 mine owners, imposing a penalty of Rs 67,900 crore on producing excess ore under section 21(5) of the Mines and Minerals (Development and Regulation) Act that empowers the state to impose a fine.

Besides raising excess iron ore and manganese from mines, the companies were found to be violating the mining plan, environmental laws, Air and Water Acts, the state government had said earlier.

The mine owners who have been fined include Tata Steel , Aditya Birla group's Essel Mining & Industries Ltd, Patnaik Minerals Pvt Ltd.

Besides Odisha government's probe, the Centre-appointed Justice MB Shah Commission is also enquiring the cases of illegal mining and had recently visited the state. The commission is expecting to submit its first phase investigation report by December.

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RBI asks banks to evaluate unhedged foreign currency risks

The Reserve Bank (RBI) on Wednesday asked banks to put in place a mechanism to rigorously evaluate the risks arising out of unhedged foreign currency exposure of corporates and price them in the credit risk premium. It also advised banks to furnish compliance and action-taken reports on the subject before end-December 2012.

In a notification, RBI said unhedged forex exposure risks are not being evaluated rigorously and built into pricing of credit despite instructions.
"It is emphasised that unhedged forex exposure of corporates is a source of risk to the corporates as well as to the financing bank and the financial system," it said.

It further said a large unhedged forex exposures of corporates have resulted in some accounts turning non-performing. "Banks are therefore advised that in accordance with the guidelines of February 2012 they should put in place a proper mechanism to rigorously evaluate the risks arising out of unhedged foreign currency exposure of corporates and price them in the credit risk premium," it said.

Banks should also consider stipulating a limit on the unhedged position of corporates on the basis of banks' Board-approved policy, it said. Banks are required to monitor the unhedged portion of forex exposure of the corporates whose total foreign currency exposure are high at above USD 25 million of its equivalent and extend loan above USD 10 million only on the basis of a well laid out policy. Banks are also required to take into account their exposure from all sources including foreign currency borrowings and external commercial borrowings in case of consortium / multiple banking arrangements for arriving at aggregate unhedged foreign currency exposure of clients.

In a separate notification, RBI also asked banks to strictly adhere to the instructions regarding sharing of information relating to credit, derivatives and unhedged foreign currency exposures among themselves. "Any sanction of fresh loans/ad hoc loans/renewal of loans to new/existing borrowers with effect from January 1, 2013 should be done only after obtaining/sharing necessary information," RBI said.

Banks would be liable to action in case of non-adherence to the instructions including imposition of penalty, RBI said. It further asked them to put in place an effective mechanism for information sharing by March 31, 2012.

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MM cautiously optimistic on sales

Auto major Mahindra and Mahindra today said it was "cautiously optimistic" on total sales this fiscal even as has clocked a growth rate of 21 percent so far.

"We remain cautiously optimistic. Why cautiously optimistic , one,  consumer sentiment is not good, interest rates are still higher.Two, we have registered a growth of 21 percent so far this fiscal (year-on-year)", Mahindra and Mahindra Senior Vice President, Marketing (Automotive Sector), Vivek Nayer told reporters here.

The company was hoping that this year would be a good one as it had managed to have a "differentiated portfolio" with presence in all segments, he said. Nayer and senior company officials were here to launch their latest premium sports utility vehicle, Rexton. According to him, the company was not present in high-end SUV which grew much faster than the industry growth.

"We were really missing a premium high-end SUV. This gives us the opportunity to be in premium high-end SUV segment," he said, after unveiling the vehicle. Rexton is priced at Rs 18.08 lakh (ex-showroom Chennai) for the manual version, while the top-end automatic variant is priced at Rs 20.12 lakh (ex-showroom Chennai).

Stating that utility vehicle market was only 14 per cent in India about two years ago, he said last year it grew by 21 per cent with the launch of several products including Mahindra XUV500, Maruti Ertiga and Renault Duster.

"We want to come out with a fair share for ourselves in the premium SUV market", he said adding this was the purpose the company had launched Rexton in India. The company had invested Rs 68 crore for setting up several new features at its manufacturing facility in Chakan, Pune, including a new body frame shop, a separate engine line and a common assembly line shop.

"It is the state-of-the art manufacturing facility. We have installed capacity of 5,000 units (for Rexton)", he said adding some of the components for the car were being sourced from Korea. Rexton would compete with the present market leader Toyota Fortuner which sells about 1,200 units a month, Ford Endeavour and Skoda Superb.

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Shah Rukh Khan owns franchise of children's edutainment biz

With his various business ventures achieving commercial success, be it his production house or his IPL team, actor Shah Rukh Khan has proved that he is an astute entreprenuer as well. The superstar has now entered into a joint venture with Singapore-based Kidz Inc by picking up a 26-percent stake.

Through this JV, Shah Rukh Khan has become the franchise-holder for the Indian operations of 'Kidzania', the world's leading edutainment brand, which is opening its very first indoor edutainment theme park at Mumbai. The park will open doors in April 2013 and will offer kids between 4-14 years a chance to engage in fun-based-learning opportunities.

Following Kidzania Mumbai, two more parks will launched in Bangalore and in the National Capital Region (NCR). Shahrukh Khan speaks to CNBC-TV18  about what propelled him into this new foray.

"(Any business proposition) has to appeal to some kind of an emotion or passion in me. I like sports whether it is kabaddi, hockey and football.  Now I have reached a stage where my kids also sometimes question me. I don't have plans to make short-term gains from a business."

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Speaker is key to House initiaitve on retail FDI: Dua

The government has announced that it will not roll back the FDI retail. The Supreme Court recently directed the Reserve Bank to amend the Foreign Exchange Management Act or FEMA Rules to capture the government's decision on allowing 51 percent FDI in multi-brand retail.

Legal experts point out that Section 48 of FEMA requires that any amendment in the FEMA regulations to be tabled before Parliament for a minimum of 30 days. Former DIPP secretary Ajay Dua explains to CNBC-TV18 that the Lok Sabha Speaker is key to the House initiative on retail FDI.

Below is an edited transcript of the interview on CNBC-TV18.

Q: The TMC and the Left have issued notices against FDI in retail. So even if the Speaker does not admit their motion, will Section 48 of FEMA Rules be invoked by the Opposition to call for a debate and a vote on the matter?

A: A member cannot, just because a delegated authority regulation has been laid on him or her, raise the issue. The Speaker continues to have a critical role to play. In receipt of the notice the Speaker will announce a discussion on the regulations which have been laid on the table of the house. Only if the Speaker allows can a discussion take place. 

The  Speaker can refer it to a Subordinate Legislation Committee of the Parliament. Those members who are aggrieved or who wish to comment on it may do so before the Parliamentary committee.

Q: What can you expect as far as this issue is concerned in Parliament?

A: It is possible that if a large number of members want a discussion on the subject, the Speaker may agree to allow the discussion to take place. It could be that if the government sensing the sentiment of the House could say that it has no objection to have such a discussion take place in the Parliament in which case, the Speaker may accept the government's suggestion and allow the discussion to take place.

Q: In case this motion is admitted, what kind of a precedent will it set? Would all executive decisions be revisited in Parliament especially when they concern FEMA?

A: If both Houses decide to repeal the regulation which the Reserve Bank makes altogether, it will mean that henceforth no FDI in multi-brand retail will be allowed if the regulation is deleted by the Parliament. Parliament can amend, modify and bring about changes to what the government had proposed because Parliament is a body above the government. If that happens, two things will take place.

One, all that may have happened till the amendment has taken place or till the deletion of the law has come about, anything done is legal that cannot be questioned, that's very clearly spelt out in Article 48 of FEMA- past actions taken are not open to review, but future ones are.

Second, Parliament may well turnaround and say that since some members have an objection, both Houses of Parliament will decide by vote if any changes need to be brought in.

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RBI, govt not antagonistic to each other: Chidambaram

Finance minister P Chidambaram on Sunday rejected the perception that his ministry and RBI were at loggerheads over interest rates and other issues, and said that they were not "antagonistic" to each other.

"The equation between the government and the central bank in India is the same as the equation between the government and the central bank of any country. It is always arguing for growth on the part of government and arguing for stability and taming inflation on the part of the central bank," he told PTI.

Even as the government makes out a case for the central bank to support growth, it doesn't mean "they  (the finance ministry and the RBI) are antagonistic to each other", he said. "What we are trying to do is to
argue our case, argue the case for growth, argue the case for taming inflation and then of course whatever the judgement is arrived at...," the minister added.

Emphasising that the relationship is no different between these two entities in any other country, Chidambaram  said that during his recent visit to Mexico City for G-20 meeting, along with RBI governor D Subbarao, he
had "spoken to several governors and several finance ministers, the relationship is exactly the same".

Despite the finance minister coming out with a fiscal consolidation roadmap and addressing central bank's concerns over government finances, the RBI did not reduce the interest rates in its half-yearly credit policy review on October 30. RBI governor D Subbarao has maintained that inflation at 7.45 percent was still "quite high" for he central bank to go in for reducing interest rates.

However, the finance ministry is concerned over slowdown in the economic growth with the industrial output  turning negative in September by 0.4 percent.

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Black money: I-T officials approach Swiss authorities

The income-tax (I-T) department, probing the secret list of account holders in the Geneva branch of HSBC Bank,  has approached Swiss revenue authorities for banking data of certain individuals after investigations showed some of them reportedly had other accounts under fictitious names.

The department, which approached the finance ministry and the Central Board of Direct Taxes (CBDT) in this  regard recently, has initiated the step in order to build a watertight case against those who have stashed
illegal funds abroad and the action has been taken under the recently revised tax information exchange treaty between the two countries.

Top sources involved in the probe said that after India received the list, both the I-T department and the  enforcement directorate (ED) have gathered vital leads on the financial investments of a certain number of
individuals and it is suspected that a number of them hold other Swiss accounts under different names allegedly to evade the tax scanner.

The department, sources said, has also opened I-T assessments of a "specific number" of those named on the  same list under the provisions of the Wealth Tax laws. The department, through the foreign taxation wing of
the CBDT, has approached Swiss authorities as India can now "get information even if it only has limited details regarding the person having bank accounts in Switzerland".

This was not possible prior to May this year. These "limited details" related to other Swiss bank accounts,  sources said, were obtained by tax sleuths after investigations were conducted in various cities, acting on  the HSBC Geneva list entities which was provided by the French government last year.

"The additional details will set the ball rolling for beginning prosecution in specific cases," the sources  added. The revised Indo-Swiss Double Taxation Avoidance Agreement (DTAA) has a specific clause that has been cited by India to obtain the vital information against those who figure on the HSBC Geneva list.

"It is sufficient if the requesting state (India) identifies the person (suspected tax evader) by other means  than by indicating the name and address of the person concerned, and indicates to the extent known, the name  and address of any person believed to be in possession of the requested information," the new DTAA agreement of April 30 this year between India and Switzerland states.

India has reportedly obtained data of over 700 HSBC accounts from French government channels. According to  latest data, in 80 cases till now, the I-T department has detected undisclosed income of Rs 438 crore and  taxes of Rs 135 crore have been realised so far.

The finance ministry had recently said that investigations are in progress with regard to these account-holders days after activist Arvind Kejriwal accused it of inaction over black money allegedly stashed away in the HSBC Bank in Geneva.

The official statement added that information was received in June 2011 by the government  from its counterpart in France relating to certain bank accounts reportedly held by certain individuals and non-individuals in a foreign bank.

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'Crowd sourcing' important for innovation: Pitroda

In this edition of Young Turks on CNBC-TV18 Sam Pitroda, advisor to the Prime Minister of India and chairman, National Innovation Council, Saurabh Srivastava, chairman, CA Technologies and member, Innovation Council, and Arun Maira, member, Planning Commision and National Innovation Council discuss various aspects related to the impact of government policy on innovation and vice versa.

The Prime Minister has put technocrat Sam Pitroda in charge of the National Innovation Council with the idea of preparing a roadmap for innovation in India. The buzz was all about crowd sourcing innovations, the need for an India inclusive innovation fund and also what could be done to nurture innovation in the education system.

Pitroda talks about crowd sourcing and how it is important for innovation."We are in the process of developing the idea, products and services. When that is done we would like to share it with other countries," he adds.

With an eye on innovation to address the challenges of access, equity, excellence and inclusion the government organised the second Innovation Round Table. It saw participation from heads of innovation policy from 50 governments across the world.

The second Global Innovation Round Table was held in the capital this month with focus on leveraging technology in the 21st century to scale and sustain innovative solutions. The discussion centered on issues related to nurturing the innovation eco-system and outlining deeper collaboration among nations.

Below is an edited transcript of the interview on CNBC-TV18.

Q: This is the second Global Innovation Round Table, what exactly is the agenda this time around and what are you going to be focusing on?

Pitroda: In the first Round Table we got to know each other. In the second Round Table our goal is to really focus on four or five big ideas that could work together. We have already identified two, one about Open Government Platform. We have jointly designed Open Government Platform with the US team and this platform will open and share data and documents.

Similarly, we are looking at crowd sourcing for innovation. We are in the process of developing the idea, products and services. When that is done we would like to share it with other countries.

Q: You are here unveiling the National Innovation Policy; the government is anything but innovative. So, is this going to be like any other government policy? How are you going to ensure effective implementation and can you really mandate innovation?

Pitroda: Sometimes you media people are too cynical. There is no connection between these two. Our job is to focus on promoting innovations. In a country of 1.2 billion people, these things don't happen overnight. People want quick fixes, instant gratification. Immediately, you will ask me what have you invented last week? That's not the way to look at innovation. It's a process. Don't forget we are building a nation, not a company.

Q: How will you assess the effectiveness, efficiency of this policy?

Pitroda: You cannot assess efficiency in terms of percentage. What have you produced in three months, in six months, you can't do those things. Ultimately over a period of 10 years you will see the impact of innovation.

Q: Do you think the government's role should be limited only to funding? Or do you believe the government should actually be the facilitator, providing the right linkages, right platform, right connections for entrepreneurs?

Srivastava: The single most important thing for government is to create an enabling policy framework. It should be easy to start a company, easy to create a company, there should be skilled people available, financing should be available when it's needed, debt and equity. So far the role of the government is to enable create policy measures, not necessarily to write cheques.

More To Come...

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GM to expand manufacture capacity at Halol

Gearing up to launch a new multi- purpose vehicle (MPV) - 'Enjoy' - US car maker General Motors today said it would shortly have 1.10 lakh units annual commissioned capacity at its Halol plant in Gujarat. At present, GM India's Halol plant is installed with an annual capacity of 85,000 units, with the company planning to launch new eight seater MPV -Enjoy- from its Shanghai Automotive Industries Corp (SAIC) platform.

"Shortly, we would have 1.10 lakh unit commissioned capacity annually at Halol because Enjoy is proposed to be rolled out from this plant in next couple of months," company's Vice-President (Corporate Communication) P Balendran told PTI. GM had recently raised its shareholding in an equal joint venture with SAIC to 91 per cent, regaining complete control.

Also Read: General Motors hopeful of selling 4,000 units a month

The company has invested over USD 1 billion in India till date, a company statement said. "Halol capacity was short...so it is being expanded. With the inaguration of a press shop at Halol, it is now an integrated manufacturing plant," Balendran said. The company has phased out its few models like-Chervolet Optra and Aveo. "After launch of Chevrolet Sail U-VA a hatchback, we plan to roll out a new sedan model of Sail by next month," he said. The new sedan will be company's sixth launch this year.

As compared to sales of 1,11,510 units last year, GM sold nearly 78,100 units till October end in India this year. "In Gujarat we had sold 11,500 units last year, and hope to sell 10,000 units by this year end," Balendran said. "With new launches we expect to sell 4,000 units per month from next year, although the market is sluggish in wake of high interest rate regime," he said. According to industry estimates, nearly 85 per cent of the vehicles sold in India are financed.

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Kingfisher pays May salary to low rung staff

The grounded Kingfisher Airlines today started paying salary for the month of May to its lower level staff and some cabin crew while there was no word about salary dues of pilots and engineers. "Only cabin crew and low rung staff have received their May salary," pilots and engineers said, adding "we still have no word from the airline about our dues."

Vijya Mallya-owned private carrier, which is on the edge of bankruptcy with its flying licence suspended, had committed that the salary dues till May would be paid by Diwali.

Also Read: Kingfisher seeks more time to submit revival plan to DGCA

As the management failed to meet its promise, employees representatives had threatened to chalk out action plan if they did not receive the May salary by November 17. The regulator DGCA had suspended Kingfisher's flying licence on October 19 till further orders after a lockout and its failure to come up with a viable plan to revive the airline.

The bankers to Kingfisher have also warned the airline to arrange for more capital by November 30, though Mallya has denied any deadline issued by the lenders to his company. Kingfisher has accumulated losses of about Rs 9,000 crore as on September 30.

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Oil cos to pay Rs 800 for free LPG connection in Delhi

Petroleum Minister Veerappa Moily today approved raising financial contribution of oil PSUs to the free LPG connection being provided by the Delhi government to poor using kerosene as cooking fuel.

Under the scheme to make Delhi kerosene-free city, oil PSUs and Delhi government foot the cost of providing the new LPG connection.

The security deposit for new LPG connection was recently increased from Rs 1,400 to Rs 1,600.

Following this, Delhi Chief Minister Sheila Dixit today met Moily with a request that the increased security deposit should be shared on equal basis which would re-start the process of releasing new connections to BPL/Antyodaya families under Kerosene Free Delhi Scheme of the Government of NCT of Delhi.

Sources said Moily readily agreed to this and issued orders wherein oil PSUs would provide Rs 800 per connection from their CSR Budget. An equal amount will be provided by the Delhi government.

This will help re-start the ambitious scheme under which 3.56 lakh households are to get LPG cylinder and a gas stove free of cost.

The scheme was launched with much fanfare in August but soon came to a grinding halt following increase in security deposit for issue of new LPG connection.

Oil PSUs and Delhi government were to share the security deposit in 50:50 ratio but the increase in the fee upset this arrangement as state-owned firms had no sanctions to provide more than Rs 700 per connection.

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DoT optimistic of finalising licence norms by Dec-end

The Department of Telecommunications is optimistic of finalising guidelines for unified licence regime by December.

"Our effort is to get UL (Unified Licence) regime by the end of December...there are many issues involved. That is something on which we are not ready to make a commitment at this time, but we will resolve those issues by end of December," Telecom Secretary R Chandrashekhar said.

The concept of unified licence is that players are free to provide all telecom services with one licence. At present, companies need to get different licences for different types of services, like Internet, mobile, long distance call etc.

Winners of just concluded auction for 2G spectrum will have to take unified licence to provide telecom services.

However, these licences will not have spectrum bundled with them.

DoT had already released guidelines for the new licensing regime for players whose licences were cancelled by the Supreme Court.

As per Notice Inviting Applications (NIA), new players will have to pay Rs 1 crore to get UL for each service area level (India has 22 telecom service area) permits except for Jammu and Kashmir and North East service areas where entry fee shall be Rs 50 lakhs each.

The DoT is working on licence guidelines for migrating existing telecom players to the new licensing regime.

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IBM bets on India, says govt contracts lucrative

While Indian IT companies are looking to grow abroad, global it major IBM is looking at India. CNBC-TV18's Kritika Saxena finds out what's attracting IBM to the domestic market.

Just when Indian IT players were set to dismiss the domestic IT space from its list of growth drivers,  global tech giant IBM is going to buck the trend. Speaking exclusively to CNBC-TV18, IBM says it has seen significant traction from the Indian market, especially in the government space.

It has recently won a contract from the Delhi government to create a unified technologically platform for 140 organisations within the state government and it expects more such deals to follow.

John Dunderdale, VP - Software Group, IBM says, "We have seen a marked change in all government activities in the last 18 months or so. We think the government in India is being far more active in trying to provide improved citizen services. The Delhi contarct that we are announcing is exactly that."

While government contracts are lucrative, IBM says the telecom sector can ring in growth as well.

Dunderdale explains, "Over the past few years we have seen telecommunications, financial services and industrial sector representing the biggest priorities for us. . Here in India, telecom is the most competitive than anywhere in the world."

Other than building a healthy deal pipeline, IBM is looking at growing through acquisitions as well. "As we evaluate options, we look at companies all over the world. We don't acquire companies that we can grow within a country, within India, we look at companies that we can grow globally," he adds.

While IBM has not decided its investment plan for India for CY13, it will invest heavily in growing within the geography, organically and inorganically.

 

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Govt warns of strict action against shipping companies

The government today warned of a "strict" action against those shipping companies which fail to pay salaries to their seafarers. "See there are thousands of ships in the country ... we are taking up the cases which are coming to us. We are very strict in that. This is not the way (companies) should behave with their employees," Shipping Minister G K Vasan told reporters here.

Observing that seafarers should be given their dues properly, he said, "Whenever a complaint is received to the Ministry, I am taking it up very seriously to the concerned company through the Director General Shipping and we see to it that there is no injustice to the seafarers". Reacting to reports of some seafarers were not paid salaries for several months, he said, "it is unfortunate. seafarers cannot be left out.

They (the Shipping Companies) have to give their dues. If we get a chance with it (such cases), we deal it very strictly". Earlier, at the fourth University Day of Indian Maritime University (IMU), Vasan said, "to remain competitive with nations in other economic regions, our country needs to adopt best practices and systems, which can be accomplished only with education and trained manpower".

Stating that the Ministry has formulated a Maritime Agenda-2020 as a strategic roadmap for the sector, he said, "this vision document aims to increase the share of Indian seafarers in the world market from seven per cent to nine per cent by 2015". Observing that the strength of students studying in regular courses at Indian Maritime University is likely to go up by 2018-19, he said construction of buildings at the headquarters of IMU here in Chennai was making "steady progress". "I am happy to inform you that an amount of Rs 282.25 crore was sanctioned by the Government, out of which Rs 272.3 crore has been set apart for infrastructure development and Rs 6.92 crore for recurring expenditure", he said.

Recalling his interaction with a top official of World Maritime University recently in New Delhi, Vasan said during the meeting they discussed about possibility of establishing a regional branch of World Maritime University in India. "It was a very formal talk. It was my request. I had put it to him. We will have to wait (for their response)", he said.

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2G spectrum auction flops; gets a meagre Rs 9,407 cr

The much-talked about 2G mobile phone spectrum auction virtually flopped with just Rs 9,407 crore being garnered in the process contrary to the high valuation estimated by the CAG in its damning report of the government two years ago.

The auction, which lasted just two days, got total bids worth Rs 9,407.64 crore, Telecom Minister Kapil Sibal told reporters at the end of the bidding, which was a far cry from the 35-day bidding for the 3G spectrum in 2010 that got Rs 67,719 crore. 

The government was targetting a minimum of Rs 28,000 crore from the sale of 2G spectrum in the GSM band and the tepid response may upset its efforts to meet the revised fiscal deficit target of 5.3 percent of GDP. Overall, the government had budget Rs 40,000 crore as revenue from spectrum sale this fiscal.

Sibal refused to comment on the CAG's estimation of Rs 1.76 lakh crore as the loss to the exchequer in giving away spectrum on first-come-first-serve basis in 2008. In an apparent dig at the CAG, he merely said, "the facts are before the nation and quite clear." Going by the 3G auction price, the current sale should have fetched Rs 1 lakh crore but "what we have got is Rs 9,407 crore... so this is a market and that is how it plays itself out."

None of the five companies bidding for the spectrum made any offer for pan-India airwaves for which the reserve price was set at Rs 14,000 crore, a rate considered high by the industry. Sibal said in all 101 out of the 144 blocks of spectrum on offer got bids. Metro cities of Delhi and Mumbai, which accounted for 40 percent of the base price of Rs 14,000 crore for 5 MHz of 2G spectrum, drew no bids.

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MM Financial falls 3.4% on equity dilution via QIP

Mahindra & Mahindra Financial Services fell as much as 3.4 percent intraday to hit a low of Rs 931.95 on Tuesday on the back of equity dilution for raising funds.

The company has raised Rs 866.80 crore via qualified institutional placement of 97.5 lakh equity shares at Rs 889 a share, well below the current market price.

At 16:38 hours IST, the stock declined 2 percent to Rs 945.90 on the Bombay Stock Exchange. Market capitalisation of the company currently stands at Rs 9,837.62 crore.

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Asia Pacific IT spending to reach $743 bn in 2013: Gartner

IT spending in Asia Pacific is forecast to reach USD 743 billion in 2013, up 7.9 per cent over 2012, IT research and advisory company, Gartner has said. All five major segments of IT spending are expected to grow in 2013, be it the devices segment (including PCs, tablets, mobile phones & printers), Data centre systems, software spending, IT services spending and telecom services, it said.

"As global markets improve in 2013 and resume growth, Asia Pacific remains one of the bright spots of the global IT market, allowing organisations in this region to accelerate competitiveness," Gartner's senior vice president and global head of research Peter Sondergaard said.

"Organisations in Asia Pacific will be able to innovate and compete using what we call the nexus of forces, or the intersection of Cloud, Mobile, Social and Information. New business models will emerge in this region," he said. 

Gartner also predicted that by 2014, IT hiring in major Western markets will come predominantly from Asian companies enjoying double-digit growth. "An increasing number of successful Asian companies - particularly from China and India - are enjoying double-digit growth rates and will substantially grow their geographic footprints, making significant investments in major Western markets through 2015.

Consequently, these organisations will be responsible for major hiring of IT professionals to support their growth at a time when Western companies will still be coping with the impact of the economic crisis," Sondergaard said.

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Diwali bonanza: Auto, jewellery apparel aim 10-15% jump

With the weak economic outlook affecting growth for most brands and retailers, this year, the larger target is to revive consumer sentiment. Marketing spends are up, and the good news is that most retailers across categories like auto, jewellery and apparel are expecting a 10-15% jump in average bill sizes over last year's festive season. CNBC-TV18's Pavni Mittal and Animesh Das find out if this will make up for a lacklustre year.

This Diwali, its LED TVs, smartphones and tablets that have become the fastest growing category for consumer goods retailers like Croma and Vijay Sales. Both chains are expecting a 10-20% growth in sales over last year's festive season. Interestingly, however, they have both slashed marketing budgets by as much as 20% from last year.

Also Read: Brighten up your portfolio: 5 stocks for a Happy Diwali

The economic slowdown coupled with rising input prices saw the growth of Arvind Brands that retails brands like US Polo, Arrow and Nautica, drop from 40-50% last year to 15-20% this year. Even though most apparel retailers extended the sale period by two months to include July and August, Arvind Brands is banking on its 10-15% increase in ad spends to generate enough consumer interest.

J Suresh, MD - Brands & Retail of Arvind Lifestyle Brands said, "Last Diwali was excellent for us, but this Diwali, getting a like to like growth of 15-20% should be okay."

A dip in prices from nearly Rs 33,000 per 10 grams to Rs 30,700 per 10 grams of gold in the last three weeks has come as a blessing in disguise for jewellers. Sales for national retailers Tanishq and Gitanjali Gems grew by nearly 35-40% since Navratri. But, volume growth is expected to be just 10 percent, as customers are opting for more light weight jewellery.

Abhishek Gupta, President of Gitanjali Gems said, "Fortunately, this year the festive season is very close to the marriage season. So consumers have dual reason to shop. We are seeing a trend in higher-end segments of jewellery. So it's not only ring, ear-ring, pendant, but its necklaces, and bangles and it's a combination of festive season and marriage season that's going along. So there's a category mix change that we see from consumers."

What's also helping retailers and marketers is the fact that the festive season spans both October and November this year. Though retailers agree that getting consumers to splurge is a bigger challenge, they are sure that the festive season will fetch them the usual 5-10% growth in sales.

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2G auction: Eight round to continue on Oct 14

The government is staring at a massive revenue shortfall as the 2G auctions have received a tepid response. So far only 55% of the blocks that were put on the block have received bids. Five companies including Bharti , Vodafone, Idea , Telenor and Videocon are bidding for 2G spectrum. After seven rounds today, the auction will continue on Wednesday, reports CNBC-TV18's Malvika Jain quoting sources.

Precisely, as far as revenue is concerned one should not have very high expectations from the 2G auction. So far the government has been able to make approximately Rs 9,224 crore. Even on day two, it is not expecting a significant increase in revenue. This is the first time the government is not going to be increase its revenue shares significantly from this auction.

Also read: Uncertainty impacting foreign investments says Harish Salve

Out of the 22 circles four circles have seen no bidders at all. These includes Delhi, Mumbai, Rajasthan, and Karnataka. Delhi, Mumbai and Rajasthan amount for approximately half of the reserve price, which the government had set.

Of the 16 circles they closed at their reserve price and there are only two circles of UP (East) and UP (West) where one has seen excess demand and probably those are the circles where auction is continuing.

Interestingly the figure, which the government has been able to attain so far, is almost one-tenth of what the CAG had pegged, the revenue implications for 2G auctions to be.

Of course, the market conditions have changed now and one can argue that in 2008 and now in 2012, things are very different. However, the fact is that the government is nowhere near the Rs 1,76,000 crore figure, which the CAG had pegged.

On day two, most likely the auction will continue in UP (West) and UP (East), but you never know, this is a simultaneous auction so some other blocks and some other circles may also open up on day two.

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Dena Bank aims total biz of Rs 1.5 lakh cr in FY13

Public sector Dena Bank expects to achieve a total business of Rs 1.5 lakh crore by the end of this fiscal on the back of sound growth in deposits and advances, a top bank official said.

"We will end this fiscal with a total business of Rs 1.5 lakh crore," Dena Bank Chairman and Managing Director Nupur Mitra told PTI.

The bank aims to have a credit growth of 18 per cent and deposit growth of 17 per cent in FY13, Mitra added.

By the end of September quarter, the public sector lender had gross advances of Rs 59,406 crore and total deposit of Rs 83,552 crore, taking the total business to Rs 1.43 lakh crore.

The bank, which has seen advances growth of 37.83 per cent and deposit growth of 30 per cent in the second quarter of FY13 over the same period last year, however, said reduction in rates in some segments had an impact on its net interest margin.

"Reduction in NIM in the last quarter was due to rationalisation of loan rates in some segments. However, we hope to have a NIM of around 3 per cent by the end of this financial year," she said.

Referring to reduction in interest rates after RBI's recent reduction in cash reserve ratio (CRR), Mitra said slashing of rates would happen as the cost of deposits go down.

"We have already reduced rates in specific segments. So, there is a possibility of reduction in base rates as the cost of deposit goes down," he said, adding she expects reduction in cost of deposits to reflect on margin in the current quarter.

Dena Bank today reported a 23.79 per cent rise in net profit to Rs 239.64 crore in the second quarter of current financial year on the back of increase in core income along with sound performance of standard assets.

Net profit of the bank stood at Rs 193.58 crore in the same period last fiscal.

Total income of the bank increased by 33.23 per cent to Rs 2,327.84 crore in July-September period, compared to Rs 1,747.19 crore reported in the same period a year ago.

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Govt to begin 2G telecom spectrum auction on Monday

The government will begin, on Monday, the auction for telecom spectrum through which it is hoping to meet Rs 40,000 crore revenue target.

The auction for the airwaves or frequencies freed from the cancellation of 122 telecom licenses, belonging to mainly eight companies, by the Supreme Court in February, will start at 0900 hours on Monday.

"We have taken quick decision, firm decisions in the telecom sector. The result of which is that we are in process of auction. 12th of November that auction will start," Telecom Minister Kapil Sibal said at an event on Saturday.

The cancelled permits included Uninor's 22 licences, Loop Telecom (21), Sistema Shyam (21), Idea Cellular including Spice Communications (13), Videocon (21), Etisalat DB formerly Swan Telecom (15), S-Tel (6) and Tata Teleservices (3 CDMA licences).

Instead of auctioning entire spectrum freed from cancellation of licences, the government is auctioning a maximum of 11 blocks of airwaves frequencies in each circle, barring Delhi and Mumbai where there are only eight blocks, to attract high price for spectrum.

The apex court had allowed the companies, whose permits were cancelled, to get spectrum reallocated for continuing their business if they win rights for the airwaves frequencies in the auction.

The government has fixed starting price for spectrum in the auction at Rs 14,000 crore for 5 Mhz of GSM spectrum on pan-India level which is around 7 times more than the price of Rs 1,658 crore at which telecom companies were given pan-India permits between 2001 to 2008.

Comptroller and Auditor General has estimated that allotment of permits in 2008 at 2001 prices caused loss to government exchequer to the tune of around Rs 1,76,000 crore.

Out of eight companies whose licences were cancelled, only three companies -- Idea Cellular, Videocon and Telenor (majority stakeholder in Uninor) -- have submitted bids for auction of airwaves frequencies.

These companies will have to win at least 5 Mhz of spectrum, divided in blocks of 1.25 Mhz each, to continue their services in areas where their licences were cancelled.

Telecom major Airtel and Vodafone are also participating in the auction to buy additional airwaves frequencies. These players can bid for maximum of two blocks in a telecom area.

Since there has been partial impact on permits of Idea Cellular, the company will need to bid for at least four blocks of spectrum, amounting to 5 Mhz of airwaves, in seven telecom circles to continue its operations.

These circles include Tamil Nadu (including Chennai), Kolkata, West Bengal, Orissa, Assam, North East and Jammu and Kashmir service areas. In rest of the circle, Idea Cellular can bid for maximum of 2 blocks only like Airtel and Vodafone.

Industry experts, however, are pessimistic over whether the auction can fetch government the Rs 40,000 crore target it seeks to achieve by selling spectrum.

"The government itself recognises that they are not going to get anywhere near Rs 40,000 crore, will be lucky if they get half of that amount, so we think that somewhere between Rs 19,000-20,000 crore might be the amount that the government will actually bring in," COAI director general Rajan S Mathews told PTI.

Bharti group Chairman Sunil Bharti Mittal has said that the auction will be over on first day. The last auction held by government of 3G and Wireless Broadband spectrum jointly took around 50 days to end.

Auction for another set of airwaves frequencies required for CDMA services has already failed after two applicants, Tata Teleservices and Videocon withdrew from it.

The government priced CDMA spectrum 1.3 times higher than GSM spectrum. This auction could have fetched government at least around Rs 13,000 crore.

Citing recommendations of Telecom Regulatory Authority of India (Trai) to fix minimum price of CDMA spectrum at double the price of GSM spectrum, Sibal said that the Empowered Group of Ministers' realised that there will be no taker for these airwaves at Rs 28,000 and hence it lowered it to 1.3 times instead of double price.

"If we go below Rs 18000 crore we go below Rs 16,000 crore then what will you say. Then you will say that you have again undersold, there is yet another scam. The minister is favouring somebody," Sibal said.

SSTL, which run services under brand name of MTS, did not participate in the auction as it is waiting for the hearing of its curative petition before Supreme Court.

In the petition, the company has requested for reinstatement of licences as it has argued that it was allocated spectrum for which there was no demand.

The company, which did not participate in auction, maintains that it will continue its operations in India.

"Absolutely we will continue. We are putting all focus and hopes towards the legal route and we hope the Supreme Court to consider our curative petition," SSTL President and CEO Vsevolod Rozanov said.

Mathews of COAI said the industry body had been saying that given the reserve price, the quantum of spectrum that is being put up and the overall structure, it is not going to be a very successful auction.

"We don't expect the auction to meet any of the objectives that the government has set, so overall if you use that as the criteria, clearly it's not a very successful auction," he said.

At the end of the auction, companies will have the option to pay either full amount of 33 per cent of final price by December 25.

The final auction price will then determine the amount that government will get from one-time levy on spectrum held by existing operators beyond 4.4 Mhz.

The government expects to garner Rs 31,000 crore from this one-time levy throughout the validity period of existing licences. The major portion of the estimates include price calculation based on reserve price.

The bid details, including the highest bid value, will be disclosed at the end of each day till the completion of the e-auction, DoT had said.

However, the name of the bidder will not be revealed.

The operators will be allowed to bid only through four IP addresses pre-registered with the Department of Telecom (DoT).

The auction will remain closed on gazetted holidays and on Sundays.

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October car sales growth at 22-month high

Car sales in India grew at their fastest pace in 22 months in October from a low base a year ago, helped by festive season demand that offset high ownership costs, but the industry remains cautious about the future.

Indian consumers tend to make big-ticket purchases in the festive season that began in September and peaks in November after Diwali and carmakers have said they expected sales to pick up during the period.

Automakers sold 172,459 cars in October, up 23.1 percent from a year earlier, the first rise in three months, according to data released by the Society of Indian Automobile Manufacturers.

Sales of motorcycles rose 6.7 percent to 936,122 vehicles. Truck and bus sales stood at 66,722 vehicles during the month, compared with 62,013 a year earlier.

"There is some cheer, but the struggle is still on," said Vishnu Mathur, director-general of the industry body, adding that a "very low base" also helped the growth.

"Next month will be quite critical for us. We'll have to see whether this growth is continuing or it is coming down."

SIAM had slashed its estimates last month for car sales in the current fiscal year, expecting them to grow just 1 percent to 3 percent.

High interest rates and rising fuel costs have deterred Indian buyers, typically reliant on loans for purchases.

A hike in the price of subsidised diesel in September pushed up ownership costs and forced almost all of the country's automakers to increase the price of their vehicles due to increased freight costs, further dampening demand.

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Emerging mkts to be positive for long time: Nestle's Bulcke

In an exclusive interview with CNBC-TV18, the global CEO of Nestle, Paul Bulcke said he is very optimistic about the emerging markets. According to him, the dynamics of emerging economies like India and China are likely to be positive for a long time. He further added that despite the problems in Europe, Nestle has been substantially growing its business there.

Here is the edited transcript of the interview on CNBC-TV18.

Q: Let me start by asking you about a comment that you made when you took over and you said 2008-2009 were not the easiest years, but if you actually start at the turbulent times you hope that things will get better. Have things gotten much better since 2008-2009?

A: At least you get used to it. We are in for some turbulence for quite a few more years. If you see the debt crisis in Europe, it is not something that has been built overnight. It is not going to come to a solution overnight either. But, the positive trends are there to stay.

I see the emerging markets coming to the fore and that is not going to be for one year. It is going to be something that is a dynamic and this is going to be positive for a long time. I am always an optimist.

Q: You are an optimist and you hope that the emerging markets will continue to drive growth as far as Nestle is concerned. In fact, that is the big differentiator for both Nestle as well as Unilever in comparison to Danone or P&G for instance, because it has really been your emerging market growth that has been driving sales for you. But I want to pick up on that, because you have actually seen in Asia, Oceania and Africa sales down to 9.4 percent from 11.6 percent. You also believe that China, because of the way the Chinese economy has slowed down has not delivered as per your expectations or its true potential. What are your thoughts now as far as India is concerned and the emerging market in general?

A: We get spurred so fast. The emerging markets are really emerging. I see a refreshing embracing their destiny that we did not see in the past. This is a very, very strong dynamics that is going to come to you over time. We get used to double digit growth in these markets and we feel that should be the permanent way. We are speaking about growth on growth and if something comes to 7-8 percent, that is not bad.

Q: If you compare it to Europe it is not bad at all or the US.

A: But, that part of the world is an increasingly important part of the world and that is growing quite substantially at 5 to 7 percent. When these countries were growing above 10 percent they said, the engines go overheat and then it goes down a bit. I think we are all a little nervous lately, so I tried to maintain perspective on these things. Over time, I see 80 percent of the world population going for and working for a better tomorrow and that is what we want to be part of. That is where I see potential for the future. In the meantime, I do believe there is so much opportunity for a company like ours, even in the Europe of today and we have been growing in Europe.

Q: A substantial chunk of it.

A: Indeed. I do believe in the world of tomorrow, quite a substantial part of growth worldwide is going to come from where there is so much opportunity of growth still.

Q: You talked about nervousness. How nervous are you feeling about the emerging markets? I want to talk to you specifically about China and India because these were the markets that were giving everybody double digit growth. These were the economies that were expected to grow between 8 and 10 percent. China has come down to about 7 percent. India at best is probably going to do about 6-6.5 percent. What does that mean for a company like yours?

A: I am not nervous, I am alert and that is somewhere a strength of Nestle too. We are not only there, we are also in Africa, Latin America and we are growing in Europe. We really tried to see the opportunities everywhere in the world and building the capabilities to grow and go after these opportunities.

The fact that we have been growing in Greece inspite of the problems and our business is not directly related to GDPs. We are related to what consumers' building up of middle classes are going for and that is the interesting dynamics that actually inspires my optimism.

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United Spirits brands to add more value to company: Diageo

Chief executive officer of Diageo Paul Welsh spoke exclusively to CNBC. He is hopeful that United Spirits (USL) brands will add more value to Diageo. He also answered questions on whether this stake sale was being done by Mallya to get cash for Kingfisher and if he is happy with the tax laws in India, after the Vodafone case.

He says, first of all, this company has got fabulous brands in the premium local spirit category. "It also has got a very strong route-to-market. So, it is the leader in the market. We will have controlling interest," he adds.

Don't miss: Mallya loses crown jewel; Diageo now owns United Spirits

He further says, "I think the first thing we will do is to keep the businesses separate. We will need to get appropriate clearances from the regulators. Then we need to better understand, from the inside of the company, how to tap into their route-to-market. And then progressively we will explore how to leverage the two portfolios."

He would certainly like to see those excise tax levels and import duties reduced for imported spirits. "I believe that would make global brands far more accessible to the new aspiring consumers in India. That would be good. That would be part of a free trade and negotiations that will be ongoing. But yes, I am optimistic," he asserts.

He says, "I think Dr Mallya sees the merit in what we are trying to create here. What we are involved is quite separate to his other interest."

He hopes that the Indian government sees this as a capital infusion into the economy, a vote of confidence its economy. "These are local products. We will have local shareholders. Therefore, I would hope that we have a harmonious relationship with the government."

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Govt retains rate of bonus in PSUs at last year's level

Fri, Nov 09, 2012 at 22:31

Puducherry governemnt today said said employees in the state government owned Public Sector Undertakings, Statutory Boards, Corporations, Cooperative Societies and autonomous bodies and institutions will be paid bonus and ex-gratia for Diwali this year at the same rate as was available in the previous year.

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Govt retains rate of bonus in PSUs at last year's level

Puducherry governemnt today said said employees in the state government owned Public Sector Undertakings, Statutory Boards, Corporations, Cooperative Societies and autonomous bodies and institutions will be paid bonus and ex-gratia for Diwali this year at the same rate as was available in the previous year.

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Govt retains rate of bonus in PSUs at last year's level

Puducherry governemnt today said said employees in the state government owned Public Sector Undertakings, Statutory Boards, Corporations, Cooperative Societies and autonomous bodies and institutions will be paid bonus and ex-gratia for Diwali this year at the same rate as was available in the previous year.

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Puducherry government today said employees in the state government owned Public Sector Undertakings, Statutory Boards, Corporations, Cooperative Societies and autonomous bodies and institutions will be paid bonus and ex-gratia for Diwali this year at the same rate as was available in the previous year.

Chief Minister N Rangasamy said in a release today that a total of 9022 staff and employees would be benefitted by the bonus payment which would involve disbursement of Rs 7.60 crores for the managements of various undertakings here.

In the meanwhile the Finance Department in a separate release stated that the corporations and other institutions should ensure that bonus and ex gratia did not exceed the maximum disbursement of Rs 11,000 per staff.

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The latest earning numbers FIRST on CNBC-TV18

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Orient-Express rejects Tata's $1.2 bn offer

Orient-Express Hotels rejected a takeover offer from Indian Hotels Company , saying the USD 1.2 billion offer undervalues the company.

Orient also named John Scott as its new chief executive, replacing interim CEO Philip Mengel.

Also read: Indian Hotels bids for Orient: May not pay-off in near-term

Shares of Orient were down 11 percent at USD 10.58 on Thursday on the New York Stock Exchange.

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Volvo bets on India, to invest Rs 1000-1500cr in 3 years

Swedish automaker Volvo is stepping up its India business in an effort to increase its presence across product platforms. Philippe Divry, MD of Volvo India told CNBC-TV18's Ronojoy Banerjee that the Indian market had been dominated for far too long by Tata Motors and Ashok Leyland and Volvo was ready to make heavy investments to take their India business forward and challenge the leadership of the existing players.

Divry said, "We are planning to invest Rs 1,000-1,500 crore, in the next three years in India, and the investment plan of the VECV comes on top of that, will represent another Rs 1,000-1,500 crore also."

"For the moment we have taken no decision about setting up new plants, and we have a site in Pithampura and we are expanding that plant, and that is our plans for the moment," Divry further added.

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Five firms to bid for telecom spectrum on Nov 12

Bharti Airtel , Idea , Vodafone, Videocon and Telenor-promoted Telewings are the five companies that will compete for the GSM spectrum in 1800 Mhz band in the auction slated to begin on November 12, according to the Department of Telecom.

The government is conducting auction of spectrum in 1800 Mhz band following cancellation of 122 telecom licences by the Supreme Court in February in the 2G scam case.

The government aims to garner a total Rs 40,000 crore from the auction of spectrum and levy of other charges on the airwaves. The receipts are important for the government, which is faced with huge task of managing the widening fiscal deficit.

However, in a blow to the government's plans of revenue earnings, Tata Teleservices and Videocon has dropped out from the auction of for CDMA spectrum, leaving no bidder in fray for the 800 Mhz band.

As per the list of final bidders released by the DoT, Aditya Birla-promoted Idea Cellular has maximum eligibility points (1594), which enable it to bid for airwaves in the highest number of telecom circles.

Eligibility points have been decided according to the earnest money deposited with DoT by players.

Idea is followed by Telewings Communications promoted by Telenor (1,332 eligibility points), Videocon (788) and Vodafone (276).

Bharti Airtel deposited the least earnest money, which indicates that the telecom major will bid in selected circles.

The auction which will start on November 12 has to be completed by January 11. The Supreme Court has asked the government to complete the auction process by January 11.

Also read: Bharti Airtel Q2 PAT seen up 9% to Rs 831 cr

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