New piece of evidence emerging now suggests that the Department of Telecommunications has not violated any procedure while allotting telecom spectrum to some new players. On the contrary, the licensing was based on a Cabinet decision and TRAI recommendations.
Sources familiar with the development point out that only “half truths” were being spread to point out accusing fingers at DoT for the manner in which the licenses were issued to new players like Unitech and Swan last year.
The then Finance Secretary D Subba Rao had objected to the manner in which the allotment was done. Dr Subba Rao, in a letter to DoT Secretary D S Mathur, asked if proper procedure has been followed with regard to financial diligence. He wondered as to how the rate of Rs 1600 crore fixed in 2001 has been applied to licenses given in 2007 “without any indexation, let alone current valuation”.
Mr Mathur had, in fact, explained in his prompt response that the decision was in accordance of a Cabinet decision of October 31, 2003 which in turn relied on the recommendations of Group of Ministers on telecom matters headed by then Finance Minister.
Mr Mathur’s letter to Dr Subba Rao pointed out “……it was decided that the recommendations of TRAI with regard to implementation of the Unified Access Licensing Regime for basic and cellular services may be accepted. DoT may be authorized to finalise the details of implementation with the approval of Minister of Communications and IT in this regard, including the calculation of the entry fee depending on the date of payment based on the principle given by TRAI in its recommendations.”
The letter went on to explain: “In terms of this Cabinet decision, the amendment to NTP 99 was issued on 11th November 2003 declaring that for telecommunication services the licence for Unified Access (Basic and Cellular) services permitting licencees to provide Basic and/or Cellular service using any technology may be issued.”
The entry fee was finalized for the UAS regime in 2003 based on the decision of the Cabinet. It was decided to keep the entry fee for the UAS licence the same as the entry fee for the fourth cellular operator, which as based on a bidding process in 2001, Mr Mathur’s letter said.
The dual technology licenses wee issued based on TRAI recommendations of August 2007. The fact of the matter is that TRAI, in its recommendations dated 28th August 2007, had not recommended any changes in entry fee/annual license fee and hence no changes were considered in the existing policy, Mr Mathur’s letter pointed out.
Wednesday, November 19, 2008
Wednesday, November 12, 2008
Venugopal Dhoot, AM Naik, Bala Reddy among finalists for Ernst and Young Award
NEW DELHI (IndiaPRwire.com): Nineteen of India’s successful entrepreneurs, who have displayed an inspiring vision, unabated zeal and passion to make a difference, have been selected as ‘Finalists’ for the coveted Ernst & Young Entrepreneur of the Year Awards. The year 2008 marks the 10th year of this very unique program in India, which has celebrated the emergence of many leading entrepreneurs over the last decade. This year, the awards will be announced on November 26th in Mumbai in the presence of leading global and business personalities, including Mr. Somnath Chatterjee, Hon’ble speaker of Lok Sabha, as the Chief Guest.
A six-member jury comprising eminent personalities, chaired by Mr. KV Kamath, Managing Director & CEO, ICICI Bank, selected the finalists from over 291 nominations received this year, the highest since the Awards were launched in 1999, which further proves that with each passing year the award continues to scale new heights.
The finalists for 2008 are listed below (alphabetically):
Anil Agarwal, Vedanta Resources Plc, A.M. Naik, Larsen & Toubro, Arvind Rao, Onmobile Global, Gautam Thapar, Avantha Group, G. Bala Reddy, ICSA India, I. Syam Prasad Reddy, Indu Projects, Jaiprakash Gaur, Jaypee Group, Mavila Vishwanathan Nair, Union Bank Of India, Mehul Choksi, Gitanjali Gems, M. M. Murugappan, Carborundum Universal, P. Namperumalsamy, Aravind Eye Care System, P R S Oberoi, EIH, Ram Chandra Agarwal, Vishal Retail, Rohinton Screwvala, UTV Software Communications, R. S Butola, ONGC Videsh, Sanjay Nayak, Tejas Networks, Sanjeev Bikhchandani, Hitesh Oberoi, Info Edge (India), Shantanu Prakash, Educomp Solutions, Venugopal Nandlal Dhoot, Videocon Industries.
“I am extremely proud to be associated with Ernst & Young’s initiative to honour entrepreneurial excellence in India. There were several outstanding nominations this year and the finalists were selected looking at various parameters such as combining ambition with pragmatism and goal orientation with adaptability. While the finalists come from diverse sectors, they were united in their desire to achieve beyond the ordinary. Each one of them has made discernable contributions to the economy by creating value and opportunity at large.” says Mr. KV Kamath, Managing Director & CEO, ICICI Bank, who chaired the jury for the awards.
Other jury members include Mr. Ravi Venkatesan, Chairman, Microsoft India, Ms. Shobhana Bhartia, Vice Chairperson & Editorial Director, HT Media, Mr. Manish Kejriwal Senior Managing Director Investment - India & Russia, Temasek Holdings Advisors India, Mr. R Seshasayee, Managing Director, Ashok Leyland and Tarun Das, Chief Mentor, CII.
Says Mr. Rajiv Memani, Country Managing Partner, Ernst & Young, “The Entrepreneur Of The Year Program has provided us an opportunity to get a very close view as also learn from the entrepreneurial journeys of some of India’s finest business leaders. The distinctive feature of Indian entrepreneurs today is the confidence and speed with which they are moving ahead in the local and international markets. Notably, for many of them, their achievements go beyond running a profitable business to also impacting the society at large and thereby creating more inclusive growth for India.”
The winner of the Entrepreneur Of The Year Award will represent India at the Ernst & Young World Entrepreneur Of The Year Awards (WEOY) in Monte Carlo, Monaco in May, 2009. Recipients of the Entrepreneur Of The Year award become lifetime members of the World Entrepreneur Of The Year Hall of Fame.
Ernst & Young first designed and produced the Entrepreneur Of The Year Award in the United States in 1986, to honour the perseverance and ingenuity of those brilliant entrepreneurs, who have created and sustained successful business ventures. Ernst & Young India launched the Programme in 1999, making it the first country in the firm’s Asia-Pacific region to introduce this initiative.
Past recipients of the EOY awards include B Ramalinga Raju (Satyam), Tulsi Tanti (Suzlon), Kumar Mangalam Birla (Aditya Birla Group), Sunil Bharti Mittal (Bharti Enterprises), Ratan Naval Tata (Tata Group), N R Narayana Murthy (Infosys), Brijmohan Lall Munjal (Hero Group), Mukesh D Ambani (Reliance), Tulsi Tanti (Suzlon Energy Ltd.), Wayne Huizenga, (Huizenga Holdings), Jeff Bezos (Amazon.com), Michael Dell (Dell Computers), Howard Schultz (Starbucks Coffee), Jerry Yang (Yahoo), Scot Kriens (Juniper Networks) and Tony Tan Caktiong (Jollibee Foods)
Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 135,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.
A six-member jury comprising eminent personalities, chaired by Mr. KV Kamath, Managing Director & CEO, ICICI Bank, selected the finalists from over 291 nominations received this year, the highest since the Awards were launched in 1999, which further proves that with each passing year the award continues to scale new heights.
The finalists for 2008 are listed below (alphabetically):
Anil Agarwal, Vedanta Resources Plc, A.M. Naik, Larsen & Toubro, Arvind Rao, Onmobile Global, Gautam Thapar, Avantha Group, G. Bala Reddy, ICSA India, I. Syam Prasad Reddy, Indu Projects, Jaiprakash Gaur, Jaypee Group, Mavila Vishwanathan Nair, Union Bank Of India, Mehul Choksi, Gitanjali Gems, M. M. Murugappan, Carborundum Universal, P. Namperumalsamy, Aravind Eye Care System, P R S Oberoi, EIH, Ram Chandra Agarwal, Vishal Retail, Rohinton Screwvala, UTV Software Communications, R. S Butola, ONGC Videsh, Sanjay Nayak, Tejas Networks, Sanjeev Bikhchandani, Hitesh Oberoi, Info Edge (India), Shantanu Prakash, Educomp Solutions, Venugopal Nandlal Dhoot, Videocon Industries.
“I am extremely proud to be associated with Ernst & Young’s initiative to honour entrepreneurial excellence in India. There were several outstanding nominations this year and the finalists were selected looking at various parameters such as combining ambition with pragmatism and goal orientation with adaptability. While the finalists come from diverse sectors, they were united in their desire to achieve beyond the ordinary. Each one of them has made discernable contributions to the economy by creating value and opportunity at large.” says Mr. KV Kamath, Managing Director & CEO, ICICI Bank, who chaired the jury for the awards.
Other jury members include Mr. Ravi Venkatesan, Chairman, Microsoft India, Ms. Shobhana Bhartia, Vice Chairperson & Editorial Director, HT Media, Mr. Manish Kejriwal Senior Managing Director Investment - India & Russia, Temasek Holdings Advisors India, Mr. R Seshasayee, Managing Director, Ashok Leyland and Tarun Das, Chief Mentor, CII.
Says Mr. Rajiv Memani, Country Managing Partner, Ernst & Young, “The Entrepreneur Of The Year Program has provided us an opportunity to get a very close view as also learn from the entrepreneurial journeys of some of India’s finest business leaders. The distinctive feature of Indian entrepreneurs today is the confidence and speed with which they are moving ahead in the local and international markets. Notably, for many of them, their achievements go beyond running a profitable business to also impacting the society at large and thereby creating more inclusive growth for India.”
The winner of the Entrepreneur Of The Year Award will represent India at the Ernst & Young World Entrepreneur Of The Year Awards (WEOY) in Monte Carlo, Monaco in May, 2009. Recipients of the Entrepreneur Of The Year award become lifetime members of the World Entrepreneur Of The Year Hall of Fame.
Ernst & Young first designed and produced the Entrepreneur Of The Year Award in the United States in 1986, to honour the perseverance and ingenuity of those brilliant entrepreneurs, who have created and sustained successful business ventures. Ernst & Young India launched the Programme in 1999, making it the first country in the firm’s Asia-Pacific region to introduce this initiative.
Past recipients of the EOY awards include B Ramalinga Raju (Satyam), Tulsi Tanti (Suzlon), Kumar Mangalam Birla (Aditya Birla Group), Sunil Bharti Mittal (Bharti Enterprises), Ratan Naval Tata (Tata Group), N R Narayana Murthy (Infosys), Brijmohan Lall Munjal (Hero Group), Mukesh D Ambani (Reliance), Tulsi Tanti (Suzlon Energy Ltd.), Wayne Huizenga, (Huizenga Holdings), Jeff Bezos (Amazon.com), Michael Dell (Dell Computers), Howard Schultz (Starbucks Coffee), Jerry Yang (Yahoo), Scot Kriens (Juniper Networks) and Tony Tan Caktiong (Jollibee Foods)
Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 135,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.
Saturday, November 1, 2008
Expect cheaper loans, RBI steps in with repo cut
MUMBAI: Announcing, further measures for Monetary and Liquidity Management, the Reserve Bank of India (RBI) today cut repo rate by 50 basis points. With this new repo rate stands at 7.5 per cent.
With this banks may soon announce cuts in interest rates for various loans bringing relief to the liquidity crisis-ridden industry and business.
RBI noted that global financial conditions continue to remain uncertain and unsettled, and early signs of a global recession are becoming evident. These developments are being reflected in sharp declines in stock markets across the world and heightened volatility in currency movements. International money markets are yet to regain calm and confidence and return to normal functioning.
Globally, pressures from commodity prices, including crude, appear to be abating. The moderation in key global commodity prices, if sustained, would further reduce inflationary pressures. On the growth front, it is important to ensure that credit requirements for productive purposes are adequately met so as to support the growth momentum of the economy, RBI said.
Domestic financial markets have been functioning normally. Prudent regulatory surveillance and effective supervision have ensured that our financial sector has been and continues to be robust. However, the global financial turmoil has had knock-on effects on our financial markets; this has reinforced the importance of focusing on preserving financial stability,
liquidity conditions in the global and domestic financial markets. Based on this review, it has decided to take the following further measures:
(i) On October 20, 2008, the Reserve Bank announced a reduction in the repo rate under the Liquidity Adjustment Facility (LAF) by 100 basis points from 9.0 to 8.0 per cent. In view of the ebbing of upside inflation risks as also to address concerns relating to the moderation in the growth momentum, it has been decided to reduce the repo rate under the LAF by 50 basis points to 7.5 per cent with effect from November 3, 2008.
(ii) The cash reserve ratio (CRR) of scheduled banks is reduced by 100 basis points from 6.5 per cent to 5.5 per cent of net demand and time liabilities (NDTL). This will be effected in two stages: by 50 basis points retrospectively with effect from the fortnight beginning October 25, and by a further 50 basis points prospectively with effect from the fortnight beginning November 8, 2008. This measure is expected to release around Rs.40,000 crore into the system.
(iii) On September 16, 2008, the Reserve Bank had announced, as a temporary and ad hoc measure, that scheduled banks could avail additional liquidity support under the LAF to the extent of up to one per cent of their NDTL and seek waiver of penal interest. It has now been decided to make this reduction permanent. Accordingly, the Statutory Liquidity Ratio (SLR) will stand reduced to 24 per cent of NDTL with effect from the fortnight beginning November 8, 2008.
(iv) In order to provide further comfort on liquidity and to impart flexibility in liquidity management to banks, it has been decided to introduce a special refinance facility under Section 17(3B) of the Reserve bank of India Act, 1934. Under this facility, all scheduled commercial banks (excluding RRBs) will be provided refinance from the Reserve Bank equivalent to up to 1.0 per cent of each bank's NDTL as on October 24, 2008 at the LAF repo rate up to a maximum period of 90 days. During this period, refinance can be flexibly drawn and repaid.
(v) On October 15, 2008 the Reserve Bank announced, purely as a temporary measure, that banks may avail of additional liquidity support exclusively for the purpose of meeting the liquidity requirements of mutual funds (MFs) to the extent of up to 0.5 per cent of their NDTL. A similar facility of liquidity support for non-banking financial companies (NBFCs) is also found to be necessary to enable them to manage their funding requirements. Accordingly, it has now been decided, on a purely temporary and ad hoc basis, subject to review, to extend this facility and allow banks to avail liquidity support under the LAF through relaxation in the maintenance of SLR to the extent of up to 1.5 per cent of their NDTL. This relaxation in SLR is to be used exclusively for the purpose of meeting the funding requirements of NBFCs and MFs. Banks can apportion the total accommodation allowed above between MFs and NBFCs flexibly as per their business needs.
(vi) As indicated in the Reserve Bank's press release of September 16, 2008, as on some previous occasions, the Reserve Bank will continue to sell foreign exchange (US dollar) through agent banks to augment supply in the domestic foreign exchange market or intervene directly to meet any demand-supply gaps. The Reserve Bank would either sell the foreign exchange directly or advise the bank concerned to buy it in the market. All the transactions by the Reserve Bank will be at the prevailing market rates and as per market practice. Entities with bulk forex requirements can approach the Reserve Bank through their banks for this purpose.
(vii) It has been decided, as a temporary measure, to permit Systemically Important Non-Deposit taking Non-Banking Financial Companies (NBFCs-ND-SI) to raise short- term foreign currency borrowings under the approval route, subject to their complying with the prudential norms on capital adequacy and exposure norms. Details in this regard have been notified separately and are available on the Reserve Bank's web site.
(viii) Under the Market Stabilisation Scheme (MSS), Government Securities (treasury bills and dated securities) have been issued to sterilise the expansionary effects of forex inflows. In the context of forex outflows in the recent period, it has been decided to conduct buy-back of MSS dated securities so as to provide another avenue for injecting liquidity of a more durable nature into the system. This will be calibrated with the market borrowing programme of the Government of India. The securities proposed to be bought back and the timing and modalities of these operations are being notified separately.
The Reserve Bank will continue to closely monitor the developments in the global and domestic financial markets and will take swift and effective action as appropriate, an official communiqué said.
With this banks may soon announce cuts in interest rates for various loans bringing relief to the liquidity crisis-ridden industry and business.
RBI noted that global financial conditions continue to remain uncertain and unsettled, and early signs of a global recession are becoming evident. These developments are being reflected in sharp declines in stock markets across the world and heightened volatility in currency movements. International money markets are yet to regain calm and confidence and return to normal functioning.
Globally, pressures from commodity prices, including crude, appear to be abating. The moderation in key global commodity prices, if sustained, would further reduce inflationary pressures. On the growth front, it is important to ensure that credit requirements for productive purposes are adequately met so as to support the growth momentum of the economy, RBI said.
Domestic financial markets have been functioning normally. Prudent regulatory surveillance and effective supervision have ensured that our financial sector has been and continues to be robust. However, the global financial turmoil has had knock-on effects on our financial markets; this has reinforced the importance of focusing on preserving financial stability,
liquidity conditions in the global and domestic financial markets. Based on this review, it has decided to take the following further measures:
(i) On October 20, 2008, the Reserve Bank announced a reduction in the repo rate under the Liquidity Adjustment Facility (LAF) by 100 basis points from 9.0 to 8.0 per cent. In view of the ebbing of upside inflation risks as also to address concerns relating to the moderation in the growth momentum, it has been decided to reduce the repo rate under the LAF by 50 basis points to 7.5 per cent with effect from November 3, 2008.
(ii) The cash reserve ratio (CRR) of scheduled banks is reduced by 100 basis points from 6.5 per cent to 5.5 per cent of net demand and time liabilities (NDTL). This will be effected in two stages: by 50 basis points retrospectively with effect from the fortnight beginning October 25, and by a further 50 basis points prospectively with effect from the fortnight beginning November 8, 2008. This measure is expected to release around Rs.40,000 crore into the system.
(iii) On September 16, 2008, the Reserve Bank had announced, as a temporary and ad hoc measure, that scheduled banks could avail additional liquidity support under the LAF to the extent of up to one per cent of their NDTL and seek waiver of penal interest. It has now been decided to make this reduction permanent. Accordingly, the Statutory Liquidity Ratio (SLR) will stand reduced to 24 per cent of NDTL with effect from the fortnight beginning November 8, 2008.
(iv) In order to provide further comfort on liquidity and to impart flexibility in liquidity management to banks, it has been decided to introduce a special refinance facility under Section 17(3B) of the Reserve bank of India Act, 1934. Under this facility, all scheduled commercial banks (excluding RRBs) will be provided refinance from the Reserve Bank equivalent to up to 1.0 per cent of each bank's NDTL as on October 24, 2008 at the LAF repo rate up to a maximum period of 90 days. During this period, refinance can be flexibly drawn and repaid.
(v) On October 15, 2008 the Reserve Bank announced, purely as a temporary measure, that banks may avail of additional liquidity support exclusively for the purpose of meeting the liquidity requirements of mutual funds (MFs) to the extent of up to 0.5 per cent of their NDTL. A similar facility of liquidity support for non-banking financial companies (NBFCs) is also found to be necessary to enable them to manage their funding requirements. Accordingly, it has now been decided, on a purely temporary and ad hoc basis, subject to review, to extend this facility and allow banks to avail liquidity support under the LAF through relaxation in the maintenance of SLR to the extent of up to 1.5 per cent of their NDTL. This relaxation in SLR is to be used exclusively for the purpose of meeting the funding requirements of NBFCs and MFs. Banks can apportion the total accommodation allowed above between MFs and NBFCs flexibly as per their business needs.
(vi) As indicated in the Reserve Bank's press release of September 16, 2008, as on some previous occasions, the Reserve Bank will continue to sell foreign exchange (US dollar) through agent banks to augment supply in the domestic foreign exchange market or intervene directly to meet any demand-supply gaps. The Reserve Bank would either sell the foreign exchange directly or advise the bank concerned to buy it in the market. All the transactions by the Reserve Bank will be at the prevailing market rates and as per market practice. Entities with bulk forex requirements can approach the Reserve Bank through their banks for this purpose.
(vii) It has been decided, as a temporary measure, to permit Systemically Important Non-Deposit taking Non-Banking Financial Companies (NBFCs-ND-SI) to raise short- term foreign currency borrowings under the approval route, subject to their complying with the prudential norms on capital adequacy and exposure norms. Details in this regard have been notified separately and are available on the Reserve Bank's web site.
(viii) Under the Market Stabilisation Scheme (MSS), Government Securities (treasury bills and dated securities) have been issued to sterilise the expansionary effects of forex inflows. In the context of forex outflows in the recent period, it has been decided to conduct buy-back of MSS dated securities so as to provide another avenue for injecting liquidity of a more durable nature into the system. This will be calibrated with the market borrowing programme of the Government of India. The securities proposed to be bought back and the timing and modalities of these operations are being notified separately.
The Reserve Bank will continue to closely monitor the developments in the global and domestic financial markets and will take swift and effective action as appropriate, an official communiqué said.
Monday, October 27, 2008
Unity runs an extra mile for C'wealth games
MUMBAI: In an unprecedented feat, Unity Infraprojects ran an extra mile to create a record by completing the construction of an eco-friendly five-star hotel complex at Balewadi, Pune, for the recent 3rd Commonwealth Youth Games in just 12 months against heavy odds.
“In normal course, it take would have taken six to eight months only to finalise the design and complete formalities before construction on a five-star hotel starts,” said Mr. K K Avarsekar, CMD of Unity Infraprojects Limited.
“But, we managed to complete the challenging task of building the world class facilities for hosting participants from over 70 countries in one single location and an environment friendly, zero-garbage hotel with five star and three-star facilities.”
“When I look back, I overcome by emotion that this Rs 300 cr edifice with 600,000 sq ft area is up, ready and running,” he said. The hotel complex with five-star and three-star facilities housed about 1200 participants and over 500 officials from across the Commonwealth Nations.
It was huge task to find a single location for housing the participants as required due to security concerns. In fact the planning commission officials did insist on a single location rather than scouting for multiple hotels and hostels when the State government began planning on the massive event.
The government, then floated tender for the project to be operated on a BOT (build, operate and transfer) basis. As pre-conditions for the projects changed from time to time to accommodate various requirements and India Olympic Association stipulations, bids had to be invited three times. Unity Infraprojects Ltd emerged as the successful bidder at the end of the third round.
“Many in Pune and elsewhere thought that we were mad to take up the project since no one could imagine that the project of this size could be ready in a year. That did not deter us. We mobilised men and machinery to ensure that the pride of Maharashtra and India does not get dented for want of accommodation for the games.”
Had the accommodation not been ready as stipulated by the games officials, the venue would have nee shifted and the State would have earned a bad name. “I did not want that to happen as I am patriotic citizen,” said Mr Avarsekar.
The project faced many hurdles like the tremendous shortage of workers in the wake of the agitation against migrant labour and a Public Interest Litigation. Then the supply of construction materials was hampered for quite some time due to a transport strike.
Unity floated an SPV for the project and roped in roped in well known hotelier cum environmentalist Mr. Vithal Kamat as a partner and operator for the eco-friendly, zero-garbage hotel. The JV appointed M/s. renowned architects Upasni Design Cell for the design of the hotel project. Prof. M.G.Gadgil, Head - Structural Engineering Department, V.J.T.I, was the proof checking consultants
Unity Infraprojects, with its missionary zeal and determination worked 24x7x365 to complete the project. Pune is ready to host not only the games but to provide the finest accommodation.
“In normal course, it take would have taken six to eight months only to finalise the design and complete formalities before construction on a five-star hotel starts,” said Mr. K K Avarsekar, CMD of Unity Infraprojects Limited.
“But, we managed to complete the challenging task of building the world class facilities for hosting participants from over 70 countries in one single location and an environment friendly, zero-garbage hotel with five star and three-star facilities.”
“When I look back, I overcome by emotion that this Rs 300 cr edifice with 600,000 sq ft area is up, ready and running,” he said. The hotel complex with five-star and three-star facilities housed about 1200 participants and over 500 officials from across the Commonwealth Nations.
It was huge task to find a single location for housing the participants as required due to security concerns. In fact the planning commission officials did insist on a single location rather than scouting for multiple hotels and hostels when the State government began planning on the massive event.
The government, then floated tender for the project to be operated on a BOT (build, operate and transfer) basis. As pre-conditions for the projects changed from time to time to accommodate various requirements and India Olympic Association stipulations, bids had to be invited three times. Unity Infraprojects Ltd emerged as the successful bidder at the end of the third round.
“Many in Pune and elsewhere thought that we were mad to take up the project since no one could imagine that the project of this size could be ready in a year. That did not deter us. We mobilised men and machinery to ensure that the pride of Maharashtra and India does not get dented for want of accommodation for the games.”
Had the accommodation not been ready as stipulated by the games officials, the venue would have nee shifted and the State would have earned a bad name. “I did not want that to happen as I am patriotic citizen,” said Mr Avarsekar.
The project faced many hurdles like the tremendous shortage of workers in the wake of the agitation against migrant labour and a Public Interest Litigation. Then the supply of construction materials was hampered for quite some time due to a transport strike.
Unity floated an SPV for the project and roped in roped in well known hotelier cum environmentalist Mr. Vithal Kamat as a partner and operator for the eco-friendly, zero-garbage hotel. The JV appointed M/s. renowned architects Upasni Design Cell for the design of the hotel project. Prof. M.G.Gadgil, Head - Structural Engineering Department, V.J.T.I, was the proof checking consultants
Unity Infraprojects, with its missionary zeal and determination worked 24x7x365 to complete the project. Pune is ready to host not only the games but to provide the finest accommodation.
Friday, October 24, 2008
Aditya Birla Nuvo presents excellent report card - Q2
Aditya Birla Nuvo reports results for the second quarter FY 09
Standalone Revenues Rs. 1,336.6 Crores
Consolidated Revenues Rs. 3,594.1 Crores
Aditya Birla Nuvo continued to work on its defined strategy of building a strong foundation for all the businesses which includes
Achieving pan India presence in the Telecom business;
Expanding customer reach and augmenting its portfolio in the Financial Services business;
Transformation from a wholesale garment company to a “High-end apparel retailing” company through continued expansion of retail space and variety in wardrobe and
Improving operating efficiency through full utilisation of existing capacity and supporting business through cost effective sites and locations in the BPO business.
As a result, while the company grew in revenues as per plan, the consolidated profitability does not truly reflect the results of the investments and efforts made due to
a) The gestating impact of the aggressive growth initiatives bunched together
b) The nature of Life Insurance business where new business premium, though profitable in the long run, causes strain in the first year due to the accounting procedure of amortising all expenses in the first year itself.
Revenues on growth path
The Company’s standalone revenues in the second quarter grew by 45% to Rs. 1,336.6 Crores from Rs. 921.4 Crores, largely driven by higher volumes and better realisation in the Fertilisers, the Carbon Black and the Garments businesses.
The Company’s consolidated revenues are up by 29% to Rs. 3,594.1 Crores from Rs. 2,795.6 Crores. All the businesses are on the growth trajectory.
• The Telecom business registered a 47% rise in revenues at Rs. 2,299.2 Crores up from Rs. 1,562.2 Crores. Idea ranks 5th with 30.38 million subscribers as on 30th September 2008. After launch of operations in Mumbai and Bihar (including Jharkhand) circles and acquisition of controlling stake in Spice that operates in Punjab and Karnataka circles, Idea is now operational in 15 circles. With the planned launch of services in Tamil Nadu (including Chennai) and Orissa circles by the calendar year end, Idea’s footprint will cover approximately 90% of India’s telephony potential.
During the quarter, Idea received Rs. 72.9 billion through sale of 14.99% stake to TM International at Rs. 156.96 per share. Consequently, Nuvo’s stake in Idea stands reduced to 27.02%. Idea’s subsidiary Aditya Birla Telecom has also received the FIPB clearance to sell 20% stake to Providence for USD 640 million.
• The Life Insurance business, during the quarter, achieved 59% growth in new business premium income at Rs. 672.8 Crores supported by expanded distribution reach and enriched product portfolio. During April-August 2008, for which the latest industry data is available, Birla Sun Life Insurance achieved 121% growth compared to 56% growth attained by private players and ranked 5th with a market share of 8.15%. Revenues, during the quarter, grew from Rs. 869.7 Crores to Rs. 999.4 Crores. It has launched 261 new distribution centres during the half year itself to reach a total of 600 centres. In view of the current slow down in the financial services sector, the business has decided to strengthen the existing branches rather than opening of new branches.
• The BPO business reported 15% growth in revenues from Rs. 393.7 Crores to Rs. 453 Crores. Growth could have been higher but for the global slowdown.
• In the Garments business, revenues surged by 20% to Rs. 325 Crores from Rs. 270.1 Crores. Continued discount sale offerings stimulated demand across the industry. During the quarter, 24 new Exclusive Brand Outlets (EBOs) were launched, taking the controlled retail space to 5.7 lacs square feet across 279 EBOs.
Investment phase of growth businesses had gestating impact on consolidated profitability
Standalone net profit, during the quarter, is up by 19% at Rs. 65.3 Crores from Rs. 54.9 Crores. At the consolidated level, the Company has reported a net loss of Rs. 104.6 Crores against net profit of Rs. 47.8 Crores attained in the corresponding quarter of the preceding year.
• The Telecom business reported lower net profit at Rs. 144.1 Crores vis-à-vis Rs. 220.3 Crores. The start up losses and brand building costs for Mumbai circle impacted the bottom-line. Going forward, the business will benefit from cash inflows from TM International and Providence, new roll outs and the Spice acquisition which gives Idea the critical circles of Punjab and Karnataka.
• In the Life insurance business, the net loss increased to Rs. 200 Crores from Rs. 83.9 Crores. This was largely due to the growing share of new business premium and higher spends on expansion of distribution network, which are key growth drivers of the business. The new business is fully profitable. However, income from it will accrue over the policy period, as is the case with the nature of this business. The new ramp up will lay a strong foundation for the future growth of the company. The proposed acquisition of Apollo Sindhoori will be driving significant synergies through cross selling.
• In the BPO business, the net loss increased to Rs. 25.7 Crores from Rs. 20.3 Crores due to forex rates. Efforts are on to plough back profitability by enhancing operating efficiencies, increasing share of high paying KPO segment and migration to low cost locations. The business is making all efforts for break-even by the year end.
• Profitability in the branded garments business improved due to improved sales from retail segment which absorbed high lease rentals and higher discounting. In the apparel retail subsidiaries, the pre-launch expenses of stores and branding costs constrained the bottom-line.
Lower capacity utilisation in the contract manufacturing business due to weak order flow has impacted its profitability for which corrective actions have been taken.
Most of our businesses are progressing well on the designed path to leverage growth opportunities. Aditya Birla Nuvo is optimistic about meeting the challenges of strategic growth initiatives and enhancing its revenues and earnings. The investments pumped, more specifically into the Life Insurance, BPO and Garments businesses, which have created a stretch on profitability in the short term as per plan, will go a long way towards value creation for shareholders.
Standalone Revenues Rs. 1,336.6 Crores
Consolidated Revenues Rs. 3,594.1 Crores
Aditya Birla Nuvo continued to work on its defined strategy of building a strong foundation for all the businesses which includes
Achieving pan India presence in the Telecom business;
Expanding customer reach and augmenting its portfolio in the Financial Services business;
Transformation from a wholesale garment company to a “High-end apparel retailing” company through continued expansion of retail space and variety in wardrobe and
Improving operating efficiency through full utilisation of existing capacity and supporting business through cost effective sites and locations in the BPO business.
As a result, while the company grew in revenues as per plan, the consolidated profitability does not truly reflect the results of the investments and efforts made due to
a) The gestating impact of the aggressive growth initiatives bunched together
b) The nature of Life Insurance business where new business premium, though profitable in the long run, causes strain in the first year due to the accounting procedure of amortising all expenses in the first year itself.
Revenues on growth path
The Company’s standalone revenues in the second quarter grew by 45% to Rs. 1,336.6 Crores from Rs. 921.4 Crores, largely driven by higher volumes and better realisation in the Fertilisers, the Carbon Black and the Garments businesses.
The Company’s consolidated revenues are up by 29% to Rs. 3,594.1 Crores from Rs. 2,795.6 Crores. All the businesses are on the growth trajectory.
• The Telecom business registered a 47% rise in revenues at Rs. 2,299.2 Crores up from Rs. 1,562.2 Crores. Idea ranks 5th with 30.38 million subscribers as on 30th September 2008. After launch of operations in Mumbai and Bihar (including Jharkhand) circles and acquisition of controlling stake in Spice that operates in Punjab and Karnataka circles, Idea is now operational in 15 circles. With the planned launch of services in Tamil Nadu (including Chennai) and Orissa circles by the calendar year end, Idea’s footprint will cover approximately 90% of India’s telephony potential.
During the quarter, Idea received Rs. 72.9 billion through sale of 14.99% stake to TM International at Rs. 156.96 per share. Consequently, Nuvo’s stake in Idea stands reduced to 27.02%. Idea’s subsidiary Aditya Birla Telecom has also received the FIPB clearance to sell 20% stake to Providence for USD 640 million.
• The Life Insurance business, during the quarter, achieved 59% growth in new business premium income at Rs. 672.8 Crores supported by expanded distribution reach and enriched product portfolio. During April-August 2008, for which the latest industry data is available, Birla Sun Life Insurance achieved 121% growth compared to 56% growth attained by private players and ranked 5th with a market share of 8.15%. Revenues, during the quarter, grew from Rs. 869.7 Crores to Rs. 999.4 Crores. It has launched 261 new distribution centres during the half year itself to reach a total of 600 centres. In view of the current slow down in the financial services sector, the business has decided to strengthen the existing branches rather than opening of new branches.
• The BPO business reported 15% growth in revenues from Rs. 393.7 Crores to Rs. 453 Crores. Growth could have been higher but for the global slowdown.
• In the Garments business, revenues surged by 20% to Rs. 325 Crores from Rs. 270.1 Crores. Continued discount sale offerings stimulated demand across the industry. During the quarter, 24 new Exclusive Brand Outlets (EBOs) were launched, taking the controlled retail space to 5.7 lacs square feet across 279 EBOs.
Investment phase of growth businesses had gestating impact on consolidated profitability
Standalone net profit, during the quarter, is up by 19% at Rs. 65.3 Crores from Rs. 54.9 Crores. At the consolidated level, the Company has reported a net loss of Rs. 104.6 Crores against net profit of Rs. 47.8 Crores attained in the corresponding quarter of the preceding year.
• The Telecom business reported lower net profit at Rs. 144.1 Crores vis-à-vis Rs. 220.3 Crores. The start up losses and brand building costs for Mumbai circle impacted the bottom-line. Going forward, the business will benefit from cash inflows from TM International and Providence, new roll outs and the Spice acquisition which gives Idea the critical circles of Punjab and Karnataka.
• In the Life insurance business, the net loss increased to Rs. 200 Crores from Rs. 83.9 Crores. This was largely due to the growing share of new business premium and higher spends on expansion of distribution network, which are key growth drivers of the business. The new business is fully profitable. However, income from it will accrue over the policy period, as is the case with the nature of this business. The new ramp up will lay a strong foundation for the future growth of the company. The proposed acquisition of Apollo Sindhoori will be driving significant synergies through cross selling.
• In the BPO business, the net loss increased to Rs. 25.7 Crores from Rs. 20.3 Crores due to forex rates. Efforts are on to plough back profitability by enhancing operating efficiencies, increasing share of high paying KPO segment and migration to low cost locations. The business is making all efforts for break-even by the year end.
• Profitability in the branded garments business improved due to improved sales from retail segment which absorbed high lease rentals and higher discounting. In the apparel retail subsidiaries, the pre-launch expenses of stores and branding costs constrained the bottom-line.
Lower capacity utilisation in the contract manufacturing business due to weak order flow has impacted its profitability for which corrective actions have been taken.
Most of our businesses are progressing well on the designed path to leverage growth opportunities. Aditya Birla Nuvo is optimistic about meeting the challenges of strategic growth initiatives and enhancing its revenues and earnings. The investments pumped, more specifically into the Life Insurance, BPO and Garments businesses, which have created a stretch on profitability in the short term as per plan, will go a long way towards value creation for shareholders.
Saturday, October 11, 2008
Tourists throng India despite crisis
Tourism sector in India continues to witness encouraging trends despite the fears of global economic slow down. A communique by the Press INformation Bureau (PIB) shows that the foreign tourist arrivals to India have touched 3.87 millions by September 2008, which is an increase of 10.4% over corresponding period of previous year. While the percentage increase in foreign tourist arrivals of 2007 over 2006 for the month of September was only 1.3%, the increase in 2008 has been as high of 9.6%.
The foreign exchange earnings to India in tourism sector in rupee terms has touched 36,464 crores by September, which is a 17.8% increase over previous year for the corresponding period while the increase in 2007 over 2006 for the same period was 13.7%. Interestingly in September 2007, there was a negative growth of foreign exchange earnings over 2006. However, the trend has been reversed and there has been 21.2% increase in FE earnings in September 2008 as compared to 2007.
India continues to be a long duration and high spending destination for foreign travelers. This is quite evident from the statistics received through the UNWTO World Tourism Barometer, which indicate that the foreign exchange earnings per foreign traveler coming to India has been US $ 2112 in the year 2007, which is more than twice the foreign exchange earned per foreign traveler worldwide (which is US $ 948) as well as Asia Pacific (which is US$ 1027). In fact, most of the major Asian countries like China, Japan, Indonesia, Malaysia, Singapore and Thailand much less foreign exchange earned per foreign traveler as compared to India.
The resilience of Indian tourism sector is also evident from the fact that while the growth rate of foreign tourist arrivals worldwide has been 5% in 2008 and the average growth rate of Asia Pacific has been 6.9%, the foreign tourist arrivals to India have grown at a rate well above 10%.
Foreign Tourist Arrivals (FTAs) and Foreign Exchange Earnings (FEE) from Tourism in India during September 2008 and comparative figures of 2006 and 2007
The foreign exchange earnings to India in tourism sector in rupee terms has touched 36,464 crores by September, which is a 17.8% increase over previous year for the corresponding period while the increase in 2007 over 2006 for the same period was 13.7%. Interestingly in September 2007, there was a negative growth of foreign exchange earnings over 2006. However, the trend has been reversed and there has been 21.2% increase in FE earnings in September 2008 as compared to 2007.
India continues to be a long duration and high spending destination for foreign travelers. This is quite evident from the statistics received through the UNWTO World Tourism Barometer, which indicate that the foreign exchange earnings per foreign traveler coming to India has been US $ 2112 in the year 2007, which is more than twice the foreign exchange earned per foreign traveler worldwide (which is US $ 948) as well as Asia Pacific (which is US$ 1027). In fact, most of the major Asian countries like China, Japan, Indonesia, Malaysia, Singapore and Thailand much less foreign exchange earned per foreign traveler as compared to India.
The resilience of Indian tourism sector is also evident from the fact that while the growth rate of foreign tourist arrivals worldwide has been 5% in 2008 and the average growth rate of Asia Pacific has been 6.9%, the foreign tourist arrivals to India have grown at a rate well above 10%.
Foreign Tourist Arrivals (FTAs) and Foreign Exchange Earnings (FEE) from Tourism in India during September 2008 and comparative figures of 2006 and 2007
Wednesday, October 8, 2008
NMCE moves to Mumbai with new corporate identity
The new identity was unveiled by Shri. B. C. Khatua, IAS, Chairman, Forward Markets Commission
Mumbai, October 8, 2008: National Multi-Commodity Exchange of India Ltd. (NMCE), the country's first online demutualised, multi-commodity exchange, unveiled its new identity today. The new identity was unveiled by Shri. B. C. Khatua, IAS, Chairman, Forward Markets Commission
Mr. Kailash Gupta, Managing Director, NMCE and Mr. Sudip Bandyopadhyay, Director, NMCE were also present on this occasion.
The unveiling of the new identity, comes at the back of NMCE receiving approval from the Ministry of Consumer Affairs for Reliance Money’s proposed acquisition of stake in the exchange.
Mr. B.C. Khatua, while unveiling the new identity wished NMCE all the very best and stated, “The new corporate identity is not a mere change in the logo but a reflection of the inner change in approach and mindset to take upon new challenges to be a vibrant and leading Commodity Exchange of the future.”
“It was important for us to review what our members and clients think of the exchange. The objective has been to make it contemporary, forward looking and relevant. In addition to launching a new identity, we have also moved our Corporate Office to Mumbai, and are looking at recruitments at various levels to further strengthen our management,” said Mr. Kailash Gupta, Managing Director, NMCE.
The exchange’s current logo is being replaced with a new and bold looking ‘NMCE’ written in red with three red and blue arrows on its top right hand side, signifying continuous forward movement.
“With a renewed focus on growth, NMCE is aggressively looking at not only revamping the entire working of the exchange but also changing the way the exchange is looked at. We not only plan to expand our membership network and commodity base offered, but also plan to reach out to the huge investor base in the commodity space through various new schemes and tie-ups,” said Mr. Sudip Bandopadhyay, Director, NMCE.
The exchange through its new identity is defining itself as one which has a bold outlook towards the future. The colour ‘Red’ in the logo depicts dynamism and an innovative approach to continuously be on the look-out for newer opportunities in today’s ever changing business environment; while the colour ‘Blue’ which stands for depth, denotes the trust and faith of its members, clients and all other stakeholders.
NMCE is the country's first online de-mutualised, multi-commodity exchange with a nationwide reach. It not only revived futures trade electronically in the commodities in India after a gap of 41 years but also integrated the centuries old commodity market with the latest technology. NMCE has 300 members with more than 30,000 clients and is present across 14 states in India.
The launch of the new corporate identity comes at a time when the exchange is preparing to announce a series of exciting business initiatives, such as starting an agri-spot exchange and launching of currency futures amongst others. The new identity is sure to kick-off a fresh chapter not only for NMCE but also the Indian commodities markets.
About National Multi-Commodity Exchange of India
www.nmce.com
The National Multi-Commodity Exchange (NMCE) was launched on November 26, 2002 as the country's first online demutualised, multi-commodity exchange with nationwide reach. It is promoted by the country's largest warehousing corporation CWC along with NAFED - the country's apex body of marketing cooperatives, Punjab National Bank, the second largest public sector bank and the Government of Gujarat. NMCE not only revived futures trade electronically in commodities in India after a gap of 41 years, but also integrated the centuries old commodity market with the latest technology.
NMCE offers an electronic platform for futures trading in plantation, spices, food grains, non-ferrous metals, oilseeds and their derivatives and is backed by compulsory delivery based settlement to ensure transparent and fair trade practices. It is the first to introduce efficient clearing and settlement system backed by adequately capitalised corporate brokerage houses in commodities with sound and reliable transferable warehouse receipt system, using appropriate communication channels.
For further details –
Poonam Gupta NMCE +91-9825017610
B. N. Kumar Concept Communication +91-9321048332 mailbnk@gmail.com
Mumbai, October 8, 2008: National Multi-Commodity Exchange of India Ltd. (NMCE), the country's first online demutualised, multi-commodity exchange, unveiled its new identity today. The new identity was unveiled by Shri. B. C. Khatua, IAS, Chairman, Forward Markets Commission
Mr. Kailash Gupta, Managing Director, NMCE and Mr. Sudip Bandyopadhyay, Director, NMCE were also present on this occasion.
The unveiling of the new identity, comes at the back of NMCE receiving approval from the Ministry of Consumer Affairs for Reliance Money’s proposed acquisition of stake in the exchange.
Mr. B.C. Khatua, while unveiling the new identity wished NMCE all the very best and stated, “The new corporate identity is not a mere change in the logo but a reflection of the inner change in approach and mindset to take upon new challenges to be a vibrant and leading Commodity Exchange of the future.”
“It was important for us to review what our members and clients think of the exchange. The objective has been to make it contemporary, forward looking and relevant. In addition to launching a new identity, we have also moved our Corporate Office to Mumbai, and are looking at recruitments at various levels to further strengthen our management,” said Mr. Kailash Gupta, Managing Director, NMCE.
The exchange’s current logo is being replaced with a new and bold looking ‘NMCE’ written in red with three red and blue arrows on its top right hand side, signifying continuous forward movement.
“With a renewed focus on growth, NMCE is aggressively looking at not only revamping the entire working of the exchange but also changing the way the exchange is looked at. We not only plan to expand our membership network and commodity base offered, but also plan to reach out to the huge investor base in the commodity space through various new schemes and tie-ups,” said Mr. Sudip Bandopadhyay, Director, NMCE.
The exchange through its new identity is defining itself as one which has a bold outlook towards the future. The colour ‘Red’ in the logo depicts dynamism and an innovative approach to continuously be on the look-out for newer opportunities in today’s ever changing business environment; while the colour ‘Blue’ which stands for depth, denotes the trust and faith of its members, clients and all other stakeholders.
NMCE is the country's first online de-mutualised, multi-commodity exchange with a nationwide reach. It not only revived futures trade electronically in the commodities in India after a gap of 41 years but also integrated the centuries old commodity market with the latest technology. NMCE has 300 members with more than 30,000 clients and is present across 14 states in India.
The launch of the new corporate identity comes at a time when the exchange is preparing to announce a series of exciting business initiatives, such as starting an agri-spot exchange and launching of currency futures amongst others. The new identity is sure to kick-off a fresh chapter not only for NMCE but also the Indian commodities markets.
About National Multi-Commodity Exchange of India
www.nmce.com
The National Multi-Commodity Exchange (NMCE) was launched on November 26, 2002 as the country's first online demutualised, multi-commodity exchange with nationwide reach. It is promoted by the country's largest warehousing corporation CWC along with NAFED - the country's apex body of marketing cooperatives, Punjab National Bank, the second largest public sector bank and the Government of Gujarat. NMCE not only revived futures trade electronically in commodities in India after a gap of 41 years, but also integrated the centuries old commodity market with the latest technology.
NMCE offers an electronic platform for futures trading in plantation, spices, food grains, non-ferrous metals, oilseeds and their derivatives and is backed by compulsory delivery based settlement to ensure transparent and fair trade practices. It is the first to introduce efficient clearing and settlement system backed by adequately capitalised corporate brokerage houses in commodities with sound and reliable transferable warehouse receipt system, using appropriate communication channels.
For further details –
Poonam Gupta NMCE +91-9825017610
B. N. Kumar Concept Communication +91-9321048332 mailbnk@gmail.com
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