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.
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