Friday, September 22, 2006

 

Business News Sep 22nd,2006

Jet can withdraw Rs 1,500cr: Court

Mumbai, Sept. 22: Weighing in on the ongoing tussle between Jet Airways Ltd and Air Sahara, over their soured merger proposal, the Bombay high court on Friday allowed Jet Airways to withdraw Rs 1,500 crores deposited by it in an escrow account for acquiring rival Air Sahara. However, in an interim order in all the four cases related to the merger, Justice D.K. Deshmukh said Jet Airways will require to put up a bank guarantee of the same amount.

“Jet Airways will have the right to withdraw Rs 1,500 crores against a bank guarantee of the same amount,” Justice Deshmukh said. He said the amount in the escrow account, maintained at ICICI Bank’s Nariman Point branch in Mumbai, will be returned to Jet Airways, while the interest accrued on the Rs 1,500 crores will go to Air Sahara.

The formalities regarding the escrow account and all other related disputes will be decided by the arbitration tribunal, the court said. Jet Airways’ counsel Harish Salve told reporters the airline company will submit the bank guarantee (for the same amount) on Monday. “Now Jet has got the right to withdraw the amount in the escrow account. This is an interim order, which shall be modified subjected to the arbitration tribunal’s decision,” he said.

According to Air Sahara’s lawyers, the interest rate applicable on the account was five per annum, a CRISIL MarketWire report said. Mr Salve said this ruling will provide interim relief to the private airline, which was incurring an interest loss of Rs 22 lakhs per day. The petition pertaining to the Rs 5-billion personal guarantee given to Air Sahara’s promoter Subrata Roy will be heard in Bombay high court in November. The arbitration tribunal comprises of retired Supreme Court Chief Justices S.P. Bharucha and B.P. Jeevan Reddy.

The tribunal will hear the case on October 9. In August, the Supreme Court transferred two petitions filed by Air Sahara in a Lucknow court to the Bombay high court for hearing. Jet Airways had already filed two separate petitions before the Bombay high court. “With respect to various clauses of the escrow, pledge and guarantee agreement, we are of the view that ends of justice will be met at one court, namely the Bombay high court,” the Supreme Court had said.



TCS’ market capitalisation betters Infy’s

Mumbai, Sept. 22: Tata Consultancy Services Limited (TCS) has replaced Infosys Technologies as the country’s biggest IT firm and second biggest private sector company in terms of the market capitalisation. TCS, the country’s largest software exporter, on Friday achieved a market cap of Rs 1.02 lakh crores, surpassing Rs 1.01 lakh crores of its closest rival in the IT space, Infosys.

TCS has also replaced Infosys as the country’s fourth most-valued publicly listed corporate entity after ONGC, RIL and NTPC. TCS had re-entered the Rs 1 trillion market-cap league earlier on September 20. Wipro retained its position as the third-largest IT firm with a market cap of Rs 74.5 lakh crores at the end of Friday’s trading session.

TCS had attained a market cap of about Rs 1,00,550 crores with a surge of 1.71 per cent in its share price to Rs 1,027.50 at the Bombay Stock Exchange. The country’s largest software exporter had first hit the 1 trillion bracket on April 18, 2006, but had failed to sustain at that level.

Currently, TCS and Infosys are the only two IT companies with a market cap of over Rs 1 trillion, while Wipro has also previously breached this level. Wipro, whose current market-cap stands at about Rs 74,000 crores, is the only company to have attained a market cap of Rs 2 lakh crores, which was achieved on February 2, 2000.



JP Morgan, Apollo plan Rs 700cr hospital in Mumbai

Hyderabad, Sept. 22: Apollo Hospitals Enterprise Ltd (AHE), which runs Apollo Hospitals, is in talks with JP Morgan for a partnership to develop a multi-specialty hospital project in Mumbai, that would entail an investment of Rs 700 crores.

Addressing a press conference here on Friday to announce Apollo Hospitals’ partnership with John Hopkins for cardiac research, Mr Prathap C. Reddy, chairman of AHE said, “The Mumbai joint venture project is currently under negotiation. JP Morgan is keen on picking up 60 per cent equity in the project.”

AHE is on an expansion spree in the country. Apart from the Mumbai project, AHE has planned new hospitals in Bangalore and Bhubhaneswar and is also considering setting up projects in Allahabad or Varanasi in Uttar Pradesh. In the overseas market, AHE has plans to set up hospitals in Europe and the Americas, which are expected to act as a channel for patients seeking access to not-so-expensive health services being offered in India by the Apollo Group.

Speaking on the Sri Lankan exit, Mr Reddy expressed his concern over the development where the group lost its management role in the hospital and in future intends to change the equity structure for joint venture projects. Apollo tendered its entire holding of 52 million shares or 33.22 per cent stake in favour of Sri Lanka Insurance Corporation Ltd (SLIC) at Sri Lankan Rs (SLR) 28 a share.

“In the backdrop of such developments, we now plan to increase our stake in the projects where Apollo owns less than 51 per cent equity in a phased manner,” Dr Reddy said.



Air Deccan posts Rs 340cr loss, plans to raise $100m

Hyderabad, Sept. 22: In what aptly sums up the turbulent times that the Indian aviation sector is undergoing, low-cost airline Air Deccan on Friday said it posted a loss of Rs 340.55 crore on revenues of Rs 1,340 crore for the 15-month period ended June 30.
Deccan Aviation, which runs Air Deccan, said, “The financial performance was impacted by various factors including the increase in fuel and other input costs and introduction of 20 new aircraft and the addition of 56 new routes besides rising personnel costs.”

Earlier this month Air Deccan managing director G.R. Gopinath, in an interaction with reporters here had said, “We are targeting a turnaround in 2008.” Air Deccan’s competitors too are not making profits. With profitless growth being the order of the day, Jet Airways and SpiceJet Ltd have reported losses in recent quarters, a trend which experts do not expect ending before late 2008.

“We are working on innovative financial structures which will strengthen our finances and support our growth strategy. Especially over the next 8-12 months which will see fierce competition with the entry of new players,” Capt. Gopinath was quoted as saying in a company statement.

With a fleet of 34 aircraft, the airline to fund its stated expansion plans and meet working capital requirement said a term sheet has already been signed for raising $100 million. “The board approved the same and documentation for the same is under process,” the statement said. On Friday Air Deccan’s stock took a 2.27 per cent hit on the exchanges to close at Rs 105.45.



Kerala High Court quashes ban on colas

Thiruvananthapuram, Sept. 22: The Kerala high court on Friday revoked the Kerala government’s ban on the production and sale of Coca-Cola and Pepsi. In a major rebuff to the CPI(M)-led government, the high court termed the blanket ban on colas it imposed on August 10 as “arbitrary and unreasonable”. A division bench comprising Chief Justice V.K. Bali and Justice M. Ramachandran pointed out that only the Union government had the power to impose such a ban.

The Kerala government had banned colas on the basis of a report by the Centre for Science and Environment, a New Delhi-based NGO, showing that there was a high level of pesticides in Pepsi and Coke. The two soft drink giants had then approached the high court, arguing that the ban was unconstitutional.

While quashing the ban orders, the division bench said the State government move was unilateral and added that the soft drink majors were not allowed to present their case. Kerala Chief Minister V.S. Achutanandan, who took the lead in imposing the cola ban, termed the high court’s verdict as unfortunate. “We will explore legal steps on how to reintroduce the ban,” he told reporters at Kannur.

The State’s water resources minister, Mr N.K. Premachandran, also said that the ban on colas was a considered decision of the state government. It is learnt that the government may move an appeal in the Supreme Court against the high court order. The cola majors welcomed the verdict and said that they would start distributing soft drinks within a day or two.

“It is a verdict which will help small-time traders and workers in our factories,” said senior Coke manager Ameer Shahul. The Democratic Youth Federation of India, the youth wing of the CPI(M), has said that it would not allow the cola majors to sell their products in the State.



Dev woos German auto sector

New Delhi, Sept. 22: During the India day at the international automobile fair in Hannover, heavy industries and public enterprises minister Sontosh Mohan Dev invited the German automotive sector to join hands with India to partner in an exciting and rewarding journey into the future of global automotive manufacturing.

Mr Dev said that India would welcome the SMEs from Germany, who are the strength of the German automotive industry, to be a part of the growth process in India. Mr Dev said that from being a fairly inward looking sector 15 years ago, the automotive industry in India today is among the world’s most-attractive destinations for not just the low-cost components, but for high-value engineered parts and design.

The automotive industry today, said Mr Dev, stands out as a powerful engine of growth representing the new emerging India. “We have emerged as one of the largest auto component centres of Asia.” he said. “But we are still very small in the global market with our $4 billion worth of exports,” he added. However, Mr Dev was satisfied that India is taking decisive steps to enhance its global presence in this sector. “Our exports are growing at a rate of more than 30 per cent every year,” said Mr Dev.

“To align with the rest of the world, India has also joined the WP-29 forum of the United Nations for harmonising automotive standards with the global ones,” Mr Dev said, Mr Dev said that the component industry in India has significant cost advantages, primarily due to lower labour costs. The labour cost advantage translates to overall cost advantage of 20-30 per cent, as compared to other developed countries.

A number of important German vehicle manufacturers such as Daimler Chrysler, BMW and MAN already have a presence in India at Pune, Chennai and Pithampur respectively.
The first major announcement this year was made by Firodias-owned Force Motors and
MAN of Germany in April when Prime Minister Manmohan Singh visited Hannover. lkswagen is also likely to announce establishing manufacturing operations in India.



Employers in IT sector rethink pay policies
IT Today


Employers in the information technology sector are seeking and paying premiums for skills that help their companies adapt quickly to fast-changing business needs, according to a study from Foote Partners, published in InformationWeek. Foote Partners, an IT compensation and workforce management research firm, says that with many of the in-demand skill sets centring on combinations of specific tech expertise, business knowledge, and industry experience, employers need to rethink their job descriptions and pay policies.

“Job titles don’t always match up with what people do on the job,” says Mr Foote, adding that rather than boxing-in IT professionals’ pay based on narrow job titles, employers are increasingly rewarding IT pros on the specificity of their skills and how those skills fit into the company’s business needs.

While customer-facing skills are in heavy demand overall by many companies, premiums are being stuffed into the pay of those professionals with some very specific skills, Foote Partners says. Applications developers with customer-facing skills are hot in general right now, but especially hot are rapid application developers and extreme programmers who are among those getting the highest premiums-about an extra 16 per cent added to base pay.

The demand for rapid development skills also reflects many companies’ intense focus on speed and agility, IW says. “You won’t lose your job because you’re over budget, but you will if you go over time,” it quotes Mr Foote as saying. Other hot skills include SAP application development, wireless expertise, storage area networking, and RFID. There’s also increased demand for “hybrid talent” such as people who have operations experience as well as technology skills.

According to IW, Companies surveyed by Foote are spending about 8.2 per cent more this year on training and leadership development of their IT staff than they did last year. Developing and training existing staff is often easier and less costly than finding and hiring new talent. Foote’s findings were based on analysis of pay, skills, and spending data from 1,800 US and Canadian employers.

Skills that will be in declining demand over the next two to five years include programming and routine coding, systems testing, application maintenance, technical support, data continuity, and recovery. Those skills are among jobs that are increasingly being offshored.

“Outsourcing and offshoring for many companies has been more of a blessing than a curse,” Mr Foote says. That’s because as companies have reduced their IT workforces in some areas such as routine coding, new jobs are being created.



Sensex dips 37 pts to close at 12236

Mumbai, Sept. 22: The markets ended in negative territory after rallying for the last couple of trading sessions. Bears spoilt the party for the bulls as profit booking and selling pressure in the index heavy weights like HLL, Satyam Computer, ICICI Bank, SBI, ONGC and Tata Motors dragged the key indices lower.

The Sensex ended 37.49 points lower at 12,236.78, after touching the day’s high of 12,303.42 and a low of 12,170.20 points. Similarly, the Nifty ended 9.00 points down at 3,544.05 points. It touched a high of 3,562.45 and low of 3,525.40 points.

The market breadth was fairly negative as out of 2,575 stocks traded, 1,605 declined, 900 advanced and 70 were unchanged on Friday. Cement stocks witnessed smart buying, Grasim surged two per cent by Rs 48.60. Also, Gujarat Ambuja and ACC were up over one per cent.



‘Speedy demon drug firms get the gravy’

Hyderabad, Sept. 22: Drug companies that develop and launch new products faster than their peers perform consistently better across a number of dimensions, earn higher revenues, and have lower development costs, according to a newly completed analysis from the Boston-based Tufts Centre for the Study of Drug Development.

Tufts CSDD says in a recent report that between 2000 and 2005, drugs developed by the fastest companies each gained an average of $1.1 billion in incremental prescription revenue and saved an average of $30 million in out-of-pocket development costs, compared to those of the slowest companies.

“Speed demon companies, the fastest drug developers, are consistently implementing efficient R&D practices across their portfolios,” says Mr Ken Getz, senior research fellow at Tufts CSDD and co-author of the study. “These companies have far less development and regulatory time variability, kill projects sooner, and are better at setting resource priorities.”

“In a word, being fast on one project is good, but being consistently fast across the portfolio of projects is substantially better,” Mr Getz says. According to Tufts CSDD, Bayer, Astra-Zeneca, Allergan, Boehringer Ingelheim, and Merck are the five fastest development companies in the 2000-05 period; each was able to shorten its development and regulatory cycles by as much as 17 months, compared to average performing drug developers. To assess the fastest drug developers, Tufts CSDD evaluated 104 approved drugs for 29 companies.

“Given the high direct cost of development and the substantial opportunity cost for a day of delay in reaching the market, speed and efficiency are central strategic objectives,” Mr Getz noted. “This is especially important today with steadily rising R&D costs, lengthening development and regulatory approval times, ever more complex clinical trials, and stubbornly low success rates of drugs moving through clinical development.”

The Tufts CSDD study also found that as a group, the fastest third of companies reduced their median development speed by 20 per cent (from 66.5 months in 1994-99 to 53 months in 2000-05) and held regulatory cycle times flat at approximately 13
months in the 2000-05 period. “In each therapeutic area where they compete, speed demon companies beat the median overall cycle time more than 83 per cent of the time,” the Tufts CSDD report says.



Big 92.7 FM to launch station in Srinagar

Hyderabad, Sept. 22: Big 92.7 FM, the FM radio brand of Adlabs Films Ltd., a part of the Anil Dhirubhai Ambani Group (ADAG), will be launching its stations in Delhi, Chennai and Srinagar next week, even as it begins its operations in Hyderabad from September 25, Big 92.7 FM chief operating officer Tarun Katial said here on Friday.

Launching the brand here, with Asin, an actor, as brand ambassador for Hyderabad, Mr Katial said Big 92.7 FM will be present in 54 cities around the country by March. The company will be focusing on launching its operations in the large metro cities initially, and will expand it to smaller towns.

“Once we are through with this, Big 92.7 FM will have its presence in 1,000 towns and 50,000 villages, reaching 20 crore listeners across the country.” Big 92.7 FM will be the first FM station to begin operations in Srinagar, Mr Katial said. He said Big 92.7 FM will be undertaking a 12-hour telethon on September 25, to raise awareness about viruses like chikungunya and malaria. The station would have a mix of local entertainment and information and updates on the weather and traffic. The station will have a footprint of 40 km, covering the twin cities.


 

Andhrapradesh Regional News, Sep 22nd,2006

Water released from Srisailam

Kurnool, Sept. 22: The crest gates of Srisailam reservoir were again opened on Friday. The water level in the reservoir has gone up to the maximum level of 885 ft with the floodwater. As a result, two crest gates were lifted and water is being released at the rate of 56,000 cusecs to Nagarjunasagar in the downstream.

It may be recalled here th-at all the floodgates of Srisailam reservoir were lifted on August 1 due to the heavy floods to Krishna river. For the first time in the history of Srisailam reservoir, the water level rached full capacity in a span of two months and the irrigation officials were forced to lift the floodgates to release water downstream.

The floodgates were clos-ed on August 25, as the flo-ods to Krishna river was re-ceded. But within a month, again the Krishna river is in spate and the officials started releasing water. As on Friday, the Srisailam reservoir received an inflow of 1.53 lakh cusecs and the officials released 1.42 lakh cusecs as outflow per day.

While 56,000 cus-ecs of water was released through two flood gates, another 77,000 cusecs of water is being released to Nagarjunasagar through right and left canals after using the water for the generation of hydroelectricity at full capacity. Likewise, 9,000 cusecs of water is being released thr-ough Pothireddypadu head regulator to the irrigation canals in Rayalaseema. As Krishna is in spate, the hydroelectric generation plants are working in full swing.



No news on cloud seeding

Anantapur, Sept. 22: The farmers of Rayalaseema who were eagerly waiting for rains through cloud seeding are still in dark about its results. Not even the district officials have any information about the cloud seeding.

It may be mentioned that the State government entrusted the task to Jawaharlal Nehru Technological University (JNTU). The JNTU in turn is using the services of Agni Aviation for the job. At the same time, the district officials were assigned the job of assisting the Agni Aviation.

However, neither the district officials nor the JNTU authorities have any information about the results of cloud seeding, though the operations have begun some four days ago. It is not known what kind of results the Agni Aviation had achieved during these four days. The planning department officials claimed that they tried to contact the conductors of cloud seeding but to no avail.

The officials feigned ignorance on the issue when the mediapersons met them. Moreover, the JNTU authorities, who were working in the Radar Centre in Anantapur also did not have any information. The non-availability of information raises doubts over the success of the operations and the failure of Agni Aviation officials in their trials.

Not even a drop of rain was witnessed during the four days in Rayalaseema. However, it is learnt that the officials took up cloud seeding only in Kurnool and Anantapur districts, but failed to achieve any tangigle results.




Santhan agrees to live with wife

Nellore, Sept. 22: Succumbing to pressure from women’s organisations, rights forums and police, Santhan Sagar, husband of agitating woman Rajarajeswari, said that he had no objection to live with his wife separately.

Accepting her demand for non-interference of his mother in their family affairs, he stressed that Rajarajeswari’s parents or relatives also should not interfere in their affairs. He disclosed his intention during a press conference held here on Friday.

According to Sagar, he married Rajarajeswari in 2005 August and set up family at Hyderabad where he is working in a software firm in November. He alleged that she was never cordial with him and left for Nellore without telling him in January. He refuted allegations that he was responsible for the abortion.

He said that she launched a malafide campaign against him after coming to Nellore. “Her family members levelled serious charges against me and also told my friends that that I am not fit for family life,” Sagar said. He also took strong objections to the allegations levelled against his family.



Air pollution high in Tirupati

Tirupati, Sept. 22: Air pollution continues to be high in the temple town of Tirupati, according to a two-year study conducted by S.V. University at the pilgrim town. An average of 1,40,000 motor vehicles come to Tirupati every month.

Among 12 traffic centres, four traffic centres showed high air pollution on an eight-hourly basis. Highest pollution levels were recorded at the RTC central bus stand, Poornakumbha Circle, Alipiri Junction, railway station junction and Balaji Colony junction.

The study taken up by the Zoology Department of the university revealed that the percentage of respiratory disorders among traffic police exposed to automobile pollution ranged from 1 to 30 per cent from the first year to the sixth year of occupational exposure. Traffic police personnel work on deputation for a period of six years and are then posted to other divisions of the police department.

A correlation between air pollution SO2, NO2, CO and suspended particular matter (SPM) levels near the major traffic centres indicated to morbidity of traffic police personnel, who are occupationally exposed. The annual mean SPM ranged from 340-350 microgram per metre square, with 70 to 83 violations, carbon monoxide annual mean ranged from 1920 to 2098 micrograms, with 80 to 97 violations whereas nitrogen dioxide and sulphur dioxide showed within recommended levels and least violations.

The Alipiri toll gate is the gateway for thousands of vehicles and the building abutting the Garuda statue is a high density pollution tunnel where tollgate staff, security staff of Tirumala Tirupati Devasthanams, traffic police, special task police and civil staff are exposed, particularly on January 1 and Garudaseva day.



Officials put on cyclone alert

Nellore, Sept. 22: Collector M. Ravichandra directed all officials to be on high alert as October and November are considered cyclone prone months in this region, Participating at a cyclone and flood mitigation committee meeting here on Friday, the collector referred to the havoc wreaked by cyclones and heavy rains in north coastal and Telangana recently and stressed on the need for an action plan to face natural calamities to minimise the loss of life and property.

He directed officials to put up control rooms at mandal headquarters soon after calamities strike and establish communication with the headquarters as well as vulnerable villages falling under each mandal to monitor the situation continuously. He directed medical and health officials to be ready to move to affected places whenever necessary. He also instructed mandal revenue officers to hold a meeting with mandal and village-level officials on September 25 to make them ready to deal with any eventualities.

Referring to frequent breaches to tanks and inundation of villages in Atmakur and Ananthasagaram mandals, he advised panchayat raj and rural water supply department engineers to prepare plans to avert such incidents. He directed irrigation engineers to stay at villages during night and ensure their availability round-the-clock.

He told them to collect land phone and cell phone numbers of some responsible citizens in every village to get information in case of any calamity. Mr Ravichandra directed civil supplies officials to keep one month ration ready apart from the regular supply to use the same during emergencies.

He also told them to keep polythene bags ready to supply 20 kg rice to affected people. The collector suggested that they prepare an action plan with the help of ration card data to provide necessary ration to the affected people. He reminded that it was also important to supply drinking water along with the ration besides making arrangements for temporary toilets.

District SP N. Suryanarayana called for steps to take up repairs to cyclone centres on a war-footing to create confidence among locals. He stressed on the need to keep vehicles ready to shift people to safer places wherever necessary. He said that his department would establish a control room and post police personnel to guard villages.



MLA charges on CM refuted

Ongole, Sept. 22: District Congress leaders said that the Telugu Desam (TD) district president and Addanki legislator Karanam Balaram was facing pressure from within the party to step down from the party post after the TD’s defeat in polls and was hence diverting the issue by raising the Gundlakamma reservoir issue.

It may be recalled that Mr Karanam Balaram alleged that Chief Minister Y.S. Rajasekhar Reddy was behind the filing of cases against him as also in the allotment of Gundlakamma reservoir canal works to the relative of Ongole legislator Balineni Srinivasa Reddy.

DCC president G.V. Seshu, Zilla Parishad chairperson Katam Arunamma, Ongole legislator Balineni Srinivasa Reddy and SN Padu legislator Dara Sambaiah denied the allegations made by the Addanki MLA.

Addressing reporters on Friday, Ongole legislator Balineni Srinivasa Reddy said that he would resign from his post if the TD leader proved that Dr Rajasekhar Reddy was behind the allocation of Gundlakamma reservoir canal works to his relative.

He asked whether Mr Balaram would resign if he failed to prove the allegations. He said that neither his relatives nor the Chief Minister’s relatives obtained reservoir works.

“Mr Balaram raised the reservoir issue to divert the party’s attention as TD cadre are mounting pressure on him to quit the party post after the party suffered a big blow in the polls. During TD rule Mr Balaram committed many irregularities in food for work programme,” Mr Balineni Srinivasa Reddy alleged.

The Congress legislator warned that he would expose the wealth illegally amassed by Mr Balaram when he was Ongole MP. Talking about compensation to displaced families of Gundlakamma reservoir, he said that the government would pay as per the norms. ommenting on Mr Balaram abusing collector B. Udaya Lakshmi recently, he said that it was unfortunate.




Plan to prevent HIV in infants

Rajahmundry, Sept. 22: Andhra Pradesh State AIDS Control Society (APSACS) chalked out an action plan to ensure that no child is born infected with HIV/AIDS from January 1, 2007. As part of the strategy, APSACS, along with the district health administration, will collect information of pregnant women to keep track of them until they deliver.

APSACS issued directions to health personnel like auxiliary nurse and midwives (ANMs) and assistant para-medical officers to ensure 100 per cent screening of pregnant women for HIV/AIDS. The screening test for pregnant women is done free of cost only at government hospitals.

There are several Voluntary Counselling and Testing Centers (VCTCs) and Prevention of Parent-to-Child Transmission Centres (PPTCs) set up in the district and both women and men are supposed to undergo tests at these centres only.

Health personnel soon after finding a case of pregnancy, will collect information of her place of residence, her in-laws and her parents, and also the expected date of delivery. This will help them to facilitate the administration of Nivarapine tablet during delivery to ensure that the newborn baby is not infected with HIV/AIDS.

In addition, health personnel will be also be taking up an awareness programme on the importance of immunisation to ensure that the newborn baby does not catch infections and diseases. Pregnant women will be educated on the importance of intake of a nutritious diet. There will be post-natal care for them as well as for the baby.

Thrust will also be given to institutional deliveries as government is already providing financial incentives to the tune of Rs 1,000 to women for preferring institutional delivery. APSACS project director G. Ashok Kumar, during his recent visit to the city said, “We want to ensure that no child is born infected with HIV/AIDS from January 1, 2007 by taking up a programme to promote institutional deliveries.”

East Godavari district AIDS nodal officer Dr M. Pavan Kumar said, “As HIV/AIDS is transmitted through blood transfusion in most cases, we intend to keep a tab on vertical transmission also.”



Alarm over decline in sex ratio

Kakinada, Sept. 22: District medical and health officer (DMHO) D. Jayaram expressed serious alarm over the declining sex ratio in the district. Speaking to reporters here on Friday, he said that in 1991, the district had recorded 994 women against 1,000 men and added that by 2001, the number of women had gone down to 978.

He said that in Rayavaram mandal, there were only 613 women against 1,000 men. Referring to the increasing practice of female foeticide, he said that carrying out sex determination tests and disclosing the gender of the foetus were illegal.

Dr Jayaram said that till 1978, termination of pregnancy was illegal in the country but it was permitted in the same year in case both the mother and foetus were found to be suffering from health problems and genetic disorders.

However, the State government imposed a ban on disclosing the details of the gender of the unborn baby after conducting ultra sound tests from 1996 onwards, the DHMO said. Accordingly, for the first offence of disclosing gender after conducting tests, three years imprisonment and a minimum of Rs 10,000 fine, would be imposed.

For the second offence of revealing the sex of the unborn baby, five years imprisonment and Rs 50,000 fine would be imposed. Dr Jayaram said that a district level joint action committee under the chairmanship of the district collector was keeping a tab on such developments and added that about 150 scanning centres were registered at present in the district.




Karimnagar incurs Rs 100 cr loss

Karimnagar, Sept. 22: The road and other key infrastructure network suffered severe damage due to the torrential rains, which wreaked havoc in the district last week. Though the officials put the estimated loss at Rs 100 crores as per the preliminary surveys, the damage is likely to be around Rs 300 crores on all counts considering the magnitude of the flood devastation.

Farmers once again bore the burnt of the nature’s fury ahead of the upcoming Dasara festival. It is believed that crops spread in over one lakh hectares were submerged in the floods across the district. A total of 432 irrigation sources breached and 14,649 houses damaged and 2,839 persons rendered homeless.

The Rajiv Rahadari suffered a major damage following the breach of the Thotapaplli River paralysing the road link between Karimnagar and Hyderabad. The vehicular traffic is being diverted via Husnabad to reach Hyderabad in view of the obstruction. The road network under the panchayat raj, the roads and buildings department and municipal limits was also damaged severely.

A total of 1,497 electricity services including 12 11 kv feeders, 147 11 kv poles, 23 kms length of transmission lines and 797 poles were damaged. A total of 179 rural water supply works worth about Rs 1.46 crores were damaged in the havoc. The works in respect of the upcoming Sripadasagar Project and the Flood Flow Canal were also severely hampered due to the rains.

The extensive damage to life and property in Karimnagar town exposed the poor maintenance of the drains and unauthorised construction of houses in the encroached lands close to the canals and ponds.

Speaking to newsmen here on Friday, district collector M.V. Satyanarayana said that ex gratia has been disbursed at the rate of Rs 1.50 lakh each to the bereaved families of the 14 of the total 18 persons who died in the rain devastation in the district.



Electric trees set up to beautify Warangal

Warangal, Sept. 22: The Kakatiya Urban Development Authority (Kuda) is erecting colourful electric trees in order to beautify the junctions in the city.

The eye-catching trees were already set up at Ambedkar Circle, and Fort Warangal Park and two more will be erected at the Kakatiya Musical Gardens. Joint collector Syed Omer Jaleel told this correspondent that the electric trees would give the city a new look. Based on the response from the people, more electric trees would be installed at all important junctions in the city.

He said that besides erecting the electric trees, the Kuda would take up the junction improvement and beautification programme. In the first phase, the DEO Junction would be developed as a model junction in the city.

Discussions were on with the district educational officer Ch. Ramana Kumar to give the land from the DEO office complex in order to ease the traffic congestion at the busy junction, he said.

He said that the works were in full swing at the Kakatiya University Crossroads where the junction was being developed on the Karimnagar highway. Meanwhile, the WMC has got overwhelming response for its recent meet on the Fund Your City scheme.




Collector rapped for kids’ suicides

Srikakulam, Sept. 22: State Human Rights Commission (SHRC) chairman B. Subhashin Reddy on Friday found fault with the district collector V.N. Vishnu and other officials and also the close relatives of the three teenage orphans who committed suicide at their home on Thursday due to poverty.

Mr Reddy conducted an inquiry here by talking to the officials and relatives of the children. He expressed his anger at the collector and other officials for not putting the three children in hostels under Sarva Siksha Abhiyan. “The close relatives of the teenagers were inhuman,” the chairman said.

Though action cannot be initiated against the relatives, action could be taken against the district officials, he said. The SHRC chairman spoke to officials of all departments concerned. He asked the collector to construct a school in the place where the teenagers died.



Power tariff hike ruled out

Vijayawada, Sept. 22: The AP Southern Power Distribution Company Limited (APSPDCL) has no plans to increase the power tariff in the near future, asserted its chairman and managing director P. Gopala Reddy.

The APSPDCL covers six districts of Krishna, Guntur, Prakasam, Nellore, Chittoor and Kadapa, with headquarters at Tirupati. Speaking to mediapersons here on Friday, Mr Gopala Reddy said that the company earned over Rs 36 crores profit during 2005-06 with an annual turnover of Rs 202 crores. This was against Rs 6 crores profit earned during the previous financial year, he said.

Keeping the profits in view, Mr Reddy said the APSPDCL decided not to increase the power tariff. He said several measures were introduced to improve the company’s performance du-ring the last two years. Regularisation of unauthorised power connections, levying penalties, besides issuing new connections on demand were some of the measures that they have been adopted to improve the company’s performance.

Mr Gopala Reddy said that a thorough survey was held to identify unauthorised power connections in all sectors. The owners of such connections were also identified and notices were served to them giving them a week’s time to get their connections regularised with the penal amount.

He said the response from the people was good as several of them have paid the penal amount and get their power connections regularised. The CMD said that the offer was still being extended in all the six districts. He said surprise checks would be continued to unearth unauthorised connections.

When asked about the agriculture connections, Mr Reddy said that farmers have been advised to go for capacitors on priority. “They need to have the capacitors first before going for the motor pumps,” he said. He said the State government had given time till March 2007 for the farmers to arrange capacitors for the agriculture connections as it would minimise the consumption and avoid wastage. Mr Gopala Reddy said that the power situation in the State was comfortable due to the rains.

The power units at Nagarjunsagar were generating over 700 mw, while those at Srisailam were generating over 1,500 mw, besides the thermal power stations. The situation would remain stable for the next couple of weeks, he said and asserted that efforts were being made to ensure seven-hour uninterrupted power supply to villages. APSPDCL superintending engineer P. Anjaiah was also present.



TRS told not to split State

Vijayawada, Sept. 22: The members of the Samaikya Andhra Praja Porata Samiti on Friday blamed the Telangana Rashtra Samiti (TRS) leaders of misleading people and trying to divide the State for their political gains.

The Samiti leaders who have launched a 12-day-long campaign from Tirupati to Vijayawada, reached the city on Friday. The campaign was to sensitise people against the separatist forces and keep the State united. They covered Chittoor, Nellore, Prakasam, Guntur and Krishna districts during the last 12 days and interacted with various sections of the people on the need for a united State.

Samiti founder president Sk. Babu blamed the TRS leaders K. Chandrasekhar Rao and A. Narendra of being opportunistic and asserted that the people of Rayalaseema, Coastal And-hra and Northern Andhra would not allow the TRS to succeed in its plans. He found fault with the TRS leaders for provoking caste groups and the students in the name of Telangana.

Stating that the TRS leaders were in power for more than two years in Centre, he wanted to know the contribution of Mr Chandrasekhar Rao and Mr Narendra for the development of the Telangana region during their stint. Mr Babu said that the Samiti had met the representatives of all sections of people from Rayalaseema and Andhra regions. Samiti leaders B.N. Narasimhulu and Krishna district unit president M. Venkata Reddy were also present.




GVMC ropes in Anglo-Indians

Visakhapatnam, Sept. 22: The teaching of English as a medium of instruction in the primary schools run by the Greater Visakha Municipal Corporation (GVMC) got a big boost with the joining of city-based Anglo-Indian Women Forum in this mission.

On a request from the district administration and the corporation, the forum has decided to deploy 23 retired and working teachers to teach English in the primary schools and also to train other vidya volunteers working in the same schools. The first batch of these teachers will start working from October 16 as vidya volunteers in 14 English medium primary schools of the corporation and 33 parallel schools where both Telugu and English are taught.

Deputy educational officer of GVMC K. Vijay Kumar said 900 students were being taught in English medium in Class I, 1,050 in Class II and 1,100 in Class III. The English medium was introduced in 2003 by the then collector and special officer of GVMC Praveen Prakash.

“The Anglo-Indian teachers would focus more on non-verbal features crucial for the children to learn English as a language,’’ said Mr Vijay Kumar. The demonstration for the vidya volunteers began on Friday and a few experienced teachers from Visakha Valley School were also roped in, he said.

President of Anglo-Indian Women’s Forum June Rodrigues said that they have decided to teach English to the children of the poorer sections of the society as it would help them in future. Talking to this correspondent, she said the Anglo-Indian teachers would be focussing more on the phonetics so that the children would pick up the correct pronunciation of the words.

She hoped the children would pick up the language faster under their guidance and also propagate their success in their residential areas.
During the next academic year, these schools could enroll more children, Ms Rodrigues added.



Brandix to brief CM on progress

Visakhapatnam, Sept. 22: The Brandix India Apparel City (BIAC) representatives will soon meet Chief Minister Y.S. Rajasekhar Reddy to brief him about the development they have achieved so far, said head of the external affairs of the Brandix Company Vinu Sudan.

Addressing a press conference here on Friday, Mr Sudan said his company officials would brief the Chief Minister on October 4 on the ongoing activities of the company after the land was formally handed over to them in June this year. On September 11, the Chief Minister during his visit to the district expressed his doubts over the progress of works and told the company to speed up its work.

Mr Sudan said the company would take five years to complete the project from the date of getting the three major facilities of roads, water and power. “We can start project works only after we obtain environmental impact assessment clearance, which is expected this November,” he clarified.

To a question on investment, Mr Sudan said BIAC was contemplating to invest $40 million for Brandix alone and $ 1.5 billion was expected for the entire Apparel Park.


 

Hyderabad News, Sep 22nd,2006

Bush offers Pak help on J&K

Washington, Sept. 23: US President George W. Bush, with Pakistan President Gen. Pervez Musharraf standing at his side, said on Friday his country is prepared to help India and Pakistan in any way to resolve their long-standing dispute over Kashmir.

Mr Bush said he raised the Kashmir issue with the Pakistani leader during their meeting at the White House and asked: “What can we do to help? What would you like the United States to do to facilitate an agreement? Would you like us to get out of the way? Would you like us not to show up? Would you like us to be actively involved? How can we help you, if you so desire, to achieve peace?”

Mr Bush, referring to the Palestinian and Kashmiri conflicts, said the US cannot impose a settlement in either one. “We can help create the conditions for peace to occur,” he said. “We can lay out vision. We can talk to world leaders — and we do. We can provide aid to help institutional building, so that a democracy can flourish.” He added that long standing peace depends on the will of leaders.

Gen. Musharraf noted that he met Indian Prime Minister Manmohan Singh in Cuba recently and described their meeting as excellent. “It was a step forward towards (the) resolution of disputes between India and Pakistan. I did tell him on the way forward that we are moving on the Kashmir dispute especially,” President Musharraf said.

President Bush and President Pervez Musharraf on Friday celebrated their close cooperation in the war on terrorism but did not deny that it began with a US threat to bomb Pakistan “back to the Stone Age”. In a joint appearance after talks at the White House, Gen. Musharraf assured Mr Bush that a peace treaty with tribal elders near the Afghan border would not take pressure off Afghanistan’s Taliban militia or their terrorist allies.

And Mr Bush refused to say whether he would seek Pakistan’s permission to strike inside its territory at Osama bin Laden and his Al Qaeda network. Gen. Musharraf made White House history when he invoked a book deal with a major US publishing house to keep silent on his earlier charge, in an interview with CBS television, that a senior US official had threatened to bomb Pakistan in order to force Islamabad to meet US demands after the September 11 strikes.

“I am launching my book on the 25th, and I am honour-bound to Simon and Schuster not to comment on the book before that day,” he said, sparking incredulous laughter among reporters and relieved chuckling from Mr Bush. “In other words, ‘buy the book’ is what he’s saying,” joked the US leader, who said that he had just learned of the allegation on Friday in a newspaper and was “taken aback by the harshness of the words”.

“I don’t know of any conversation that was reported in the newspaper like that. I just don’t know about it,” said Mr Bush. The US official who supposedly made the remark, former deputy US secretary of state Richard Armitage, flatly denied saying any such thing, declaring in an interview with CNN: “Never did I threaten to use any military force.”



CM likely to have Dasara Cabinet

Hyderabad, Sept. 22: The sudden political developments in the State following the resignation of Telangana Rashtra Samiti chief K. Chandrasekhar Rao from his Lok Sabha seat and infighting among the Congress leaders, has forced Chief Minister Y.S. Rajasekhar Reddy to consider a Cabinet expansion on Vijayadasami.

Sources said Chief Minister Rajasekhar Reddy had originally thought of putting off the expansion till Sankranti in January next year, but now he may not wait that long. According to sources, Dr Reddy will make a trip to Delhi on September 28 to discuss the expansion with the Congress high command.

A State Cabinet meeting is scheduled for September 29, but Dr Reddy is likely to cancel it and stay in the national capital for a second round of meetings with AICC chief Sonia Gandhi to finalise the names.
Mrs Gandhi is scheduled to visit Kadapa and Kurnool districts in the State on September 27. She will leave the same day and Dr Reddy will follow her the next day with a list of probable candidates.

Dr Reddy may not drop incumbent ministers but will fill up the six vacancies created by the resignation of TRS ministers. When reminded of the approaching Dasara, he smiled and said, “let it come”. He refused to elaborate.


Aga Khan unit to train leaders

Hyderabad, Sept. 22: The foundation stone for the Aga Khan Academy was laid on Friday by Prince Aga Khan along with Chief Minister Y.S. Rajasekhar Reddy. The academy coming up in Ranga Reddy district aims to prepare talented young people for leadership roles in India and abroad. It will be an essential part of the Agha Khan Development Network which is dedicated to empowering communities and individuals to improve living conditions. The foundation stone for the academy was laid in a sprawling 100-acre plot near Raviryala village in Maheshwaram mandal.

Prince Aga Khan, the founder of the academy is also the 49th hereditary spiritual leader (Imam) of the Ismaili Muslims. Speaking at the function, the prince recalled how his ancestors dedicated themselves to the service of society and established educational institutions. “The well-led society of the future will be a meritorious one where leadership roles will be based on personal and intellectual excellence,” he said. “Our goal is not to provide special education for privileged elites but to provide an exceptional education for the truly exceptional.”

In his speech, Aga Khan dwelt on various ills plaguing contemporary society. “We are often told these days… about the clash of civilisations-especially a clash between the Islamic world and the West,” he said. “I disagree with that assessment. In my view, it is a clash of ignorances which is to blame.” According to him, the academy would seek to erase such ignorances through the broad study of a variety of world cultures, including the study of Muslim civilisations, a subject which is often overlooked.

Aga Khan said a broad public education was still an essential obligation of a just society and added that human resources were become more important than natural resources in determining the wealth of the society. Governments alone could not meet the educational challenges of the 21st century and civil society had to do its part, he said.

“Our academies will have their own areas of special emphasis including an explicit concern for value pluralism, a strong emphasis on the ethical dimensions… and a focus on comparative political systems,” he said. Dr Rajasekhar Reddy promised all support from the government for the construction and smooth conduct of the academy. He added that his government was taking several steps to create a knowledge based society in rural areas.

The academy is expected to start functioning in 2009-10 and its syllabus would be based on the International Baccalaureate system. It is designed to help students excel while creating a sense of civic responsibility, an understanding of global issues and nurturing analytical and study skills. It will enrol 750 to 1,200 students and the development network will spend the money needed for building and running the academy. The State government, with a view to further the city’s ambition to become a global hub of educational excellence, has donated 100 acres in the Hardware Park to the academy.


Mosquitoes drive Maoist cadre into police net

Warangal. Sept. 22: Tiger mosquitoes are proving to be more of a menace to the Maoists than the Greyhounds.Many Maoists hiding in the forests are reportedly suffering from chikungunya, thanks to the relentless attack of tiger mosquitoes. Chikungunya is a viral fever with excruciating joint pains that, in extreme cases, can last for as long as six months.

In fact, top Maoist leader Alvala Saraiah alias Madhu, who was shot down in a recent encounter, was unable to run fast and escape the police dragnet because he was suffering from chikungunya. Similar was the fate of his three women comrades, who were also suffering from the crippling fever.

“We had clear information that Madhu and his comrades were suffering from chikungunya,” said a senior police officer. “We trapped them when they were vulnerable.” The encounter, which took place on September 15 in the Tadwai forests, ended with the death of Madhu and three women activists — Prameela, Nirmala, and Padma. Four other Maoists, who were not suffering from fever, were able to escape the police.

Informers had leaked the news to sleuths that the Maoists were suffering from the viral fever and were taking treatment from local doctors. This was confirmed by the prescription slips and medicines found in the kitbags of the slain Maoists.

“We believe many Maoists are lying sick within the forests and we want to intensify our combing,” said a police officer. Since Maoists were suffering from chikungunya, they would not be able to change shelters every day which was their usual practice, he added.


Billionaires only please, says Forbes

New York, Sept. 22: These days, it takes a billion — at least. For the first time, Forbes magazine’s list of the 400 richest Americans consists exclusively of people worth $1 billion or more. As a group, the people who made the rankings released on Thursday are worth a record $1.25 trillion compared to $1.13 trillion last year.

Casino magnate Sheldon Adelson pole-vaulted to No. 3 from 15 in last year’s ranking, finishing behind the mainstays at 1 and 2: Microsoft Corp. founder Bill Gates and Warren Buffett of Berkshire Hathaway Inc. Mr Adelson is now estimated to have $20.5 billion, Mr Buffett $46 billion and Mr Gates $53 billion. Mr Gates has held the No. 1 spot for the last 13 years while Mr Buffett has been No. 2 every year since 1994 except 2000, when Larry Ellison of Oracle Corp. held that spot.

Indian-Americans are not just climbing the corporate ladder but taking the elevator up, leaving behind many US corporate moguls. Google Inc. founder-director Kavitark Ram Shriram and Bose Corporation chairman Amar Gopal Bose have both moved up the rankings in the list of Forbes’ 400 Richest Americans.

Acoustics pioneer Bose and tech wizard Shriram have tied at the 242nd position in the list, ahead of Margaret C. Whitman, the president and CEO of global online auction giant eBay Inc, Howard S. Schultz, chairman of coffee retail giant Starbucks and Hilton Hotel chairman William Barron Hilton. Mr Bose and Mr Shriram, who are now US citizens and worth $1.5 billion each, have also beaten Mr Rober William Galvin of Motorola, Robert Drayton McLane Jr of Wal-Mart and Roy Edward Disney of Walt Disney. While Mr Shriram had entered the list at 258 in 2005, for Bose (ranked 283 in 2005) it is the fifth year in a row on the Forbes 400 list.


Office of Profit: EC clears PM, Chidambaram

New Delhi: The Election Commission on Friday cleared Prime Minister Manmohan Singh and finance minister P. Chidambaram of the charge that they held offices of profit. The EC also cleared the names of Union minister Subbirami Reddy, senior BJP leader Najma Heptullah and Narayan Singh Manaklav, source said.

The EC sent its opinion to President A.P.J. Abdul Kalam in this regard in the light of Parliament (Prevention of Disqualification) Amendment law, 2006, EC sources said. Petitions were referred to the EC against the Prime Minister and the finance minister on the ground that they were holding offices of profit as trustees of Rajiv Gandhi Foundation.

However, under the latest amendment the office of chairperson or trustee (by whatever name called) of any trust, whether public or private, would not attract the disqualification clause.

YSR to ask for more dam money

Hyderabad, Sept. 22: Chief Minister Y.S. Rajasekhar Reddy on Friday said recruitment into the outlawed Communist Party of India (Maoist) had stopped because of the development initiatives lau-nched by his government.Speaking to mediapersons before leaving for Nainital for the conclave of Congress Chief Ministers, Dr Reddy said his government had taken measures to bridge the urban-rural divide and gave top priority to developing infrastructure in rural areas.

He said that a case for dialogue with the Maoists did not arise till the latter laid down weapons. He was of the view that the people will not look to the Maoists or others for help if the government instilled confidence in them. Dr Reddy said the CMs’ meet would discuss the problem of Maoist and ISI-sponsored terror as part of improving internal security.

He said that he would explain the State government’s strategy of containing the Naxal menace and that he would ask the Centre for more financial assistance to step up developmental activities in the affected areas. On the irrigation front, the Chief Minister said he would urge the Centre to reverse the present loan to grant ratio of 70:30 under the Accelerated Irrigation Benefit Programme so that the State will get 30 per cent of the money as loan and 70 per cent as grant.

He said the foundation stone for the Chevella-Pranahitha would be set in six months and comprehensive investigation work of the project was on. Dr Reddy said the government had been planning to provide irrigation facilities to an additional area of 10-15 lakh acres every year as part of Jalayagnam. He said that the government had been spending thousands of crores of rupees on irrigation. The Chief Minister will urge Prime Minister Manmohan Singh to prevail upon the finance ministry to ensure that banks give farm loans at three per cent interest.



Gandhi insists on land reforms

Hyderabad, Sept. 22: West Bengal Governor Gopalakrishna Gandhi said that failure of comprehensive land reforms had resulted in the growth of naxalism in several parts of country. He alleged that land reforms were sabotaged by people interested in class and caste and the rage of the landless and rural unemployed were capitalised by Leftists.

Mr Gopalakrishna Gandhi was delivering Dr B.R. Ambedkar Memorial Lecture organised by the Administrative Staff College of India (ASCI) in the city on Friday. He said that land reforms implementation need to be revived nationally. “Even in States where land reforms have been implemented well as in West Bengal and Kerala, there has to be such a thing as a next stage so that the reforms of the 70s and 80s can benefit more number of people and more deserving,” he observed.

The subject Mr Gandhi had taken was “Rage and Calm”. He supported the reasonable and justified rage by mentioning B.R. Ambedkar and Mahatma Gandhi and their rage against caste and colour discrimination. Mr Gopalakrishna said “what worried Gandhi and Ambedkar was not the rage, not the turbulence but the calm, the calm of disdain, the ice of neglect and isolation.” He found a reason in the rage of students who opposed the recent quota issue (reservations to OBCs in central and higher educational institutions).



State still not ready on RTI

Hyderabad, Sept. 22: Even 15 months after the Right to Information Act came into force, scores of State government offices continue to function without public information officers (PIOs) as mandated by the Act. In the absence of the PIOs, people are finding it difficult to file for information. In some offices, PIOs have been designated but the information has not been disclosed.

If any person applies for information by paying the nominal fee, the assistant PIO or PIO has to provide it within 30 days. The immediate superior officer will be the appellate authority. People who are turned down by the appellate authority, can file a petition with AP Information Commission. According to the Act, which was enacted on June 15, 2005, the public authorities have to computerise the records within 120 days. Assistant PIOs and PIOs have to be appointed within 100 days. Ironically, many lethargic departments have not completed the procedure even after more than one year.

Nearly 70,000 PIOs have to be designated in all levels in 200 departments in the State. Only departments like revenue, municipal administration, some wings in the police, medical and health departments have come forward to implement the Act at the grass root level. The AP Information Commission has taken the issue seriously and decided to initiate action suo motu from October onwards on the heads of the departments which did not implement the Act in a true spirit. “We will summon them, pass strictures and impose fines if they fail to complete the procedure” said chief information commissioner C.D. Arha.



Police seeks 2 LC seats

Hyderabad, Sept. 22: Pol-ce officials demanded that the State government give them two seats in Legislative Council. AP Police Officers Association met Chief Minister Y.S. Rajasekhar Reddy and home minister K. Jana Reddy with the demand.


Urdu University opens centre at Jeddah

Hyderabad, Sept. 22: Maulana Azad National Urdu University has gone international.
It has set up an education-cum-examination centre at Jeddah in Saudi Arabia and over 100 students have already joined for distance education programmes.

The university is offering B.A, B.Com, and post graduate courses, including MA Urdu, MA English and MA History, to students in Gulf countries for the current academic year. Other courses will be introduced later. The Indian Education Council, a body identified by the Indian Consulate, will facilitate and coordinate with the university in the admission and conduct of exams.

Vice-Chancellor Prof A.M. Pathan told this correspondent that the centre at Jeddah was established following numerous petitions from the Indian expatriate population for access to courses in Urdu medium.These memoranda were submitted to Union Human Resource Development Minister Arjun Singh, when he visited Jeddah in July 2006.

Subsequently, the Indian Consulate officials got in touch with the university, following which a three-member team, led by the vice-chancellor, visited Jeddah this month to set up the centre. “We held a meeting with social and cultural organisations working in the field of Urdu promotion, representatives of IEC and consulate officials,” said Dr M. Shujat Ali, a spokesperson of the university.

The examinations will be conducted under the aegis of the Indian Consulate. An eligibility test will be held on November 5 for students who are 18 years old and do not posses 12th class pass certificate. Those who have passed 12th class will be given direct admission. The last date for submitting applications is November 18.

Students can get the prospectus-cum-application form from the IEC or download it from the university website. The study material will be sent by post to the Indian Consulate, who will distribute it to students through the IEC.



State to seek death for Surana killer

Hyderabad, Sept. 22: The prosecution in the sensational killing of prominent industrialist Dulichand Surana has asked the metropolitan sessions judge court to sentence the accused, Mayank Bohra, to death. Mayank Bohra, 25, was charged with abduction, extortion and killing of Dulichand, owner of Deepak Galvanising & Engineering Company, on the New Year eve of 2002.

The accused was re-arrested after he jumped bail. The court has posted the judgement to October 9. Dulichand Surana and his wife Manjula Surana, residents of Secunderabad, were kidnapped by Mayank Bohra, while they were on their way to Taj Krishna to celebrate the birthday of their twin sons.

Mayank, an unemployed acquaintance of Mr Surana who was in need of money had demanded a ransom of Rs 2 crore. Police said that Mayank resorted to kidnapping after being inspired by a thriller serial. Terming it as a rarest of rare case special public prosecutor P. Satya Murthy said, “We request the court to award death penalty to the accused. As the murder was planned, brutal and coldblooded, it had a major impact on the community.”

“The accused had plotted the killing for three months and acquired a vehicle and pistol for the purpose. Moreover, on the date of trial, he absconded. This shows that he has no respect for the law,” added Satya Murthy. Manjula Surana, wife of Dulichand, who sustained serious injuries in the attack and an eye-witness to the killing recalled, “Mayank, who was standing at Begumpet waved a hand in front of our vehicle for a lift. But as soon as he entered the vehicle, he threatened my husband at gun point and drove us to a secluded post in Mahendra Hills and demanded a ransom of Rs 2 crore. When my husband replied he can arrange only Rs 10 lakh within an hour he was stabbed to death. I was also attacked and he took away my jewellery.”

Mayank was arrested on January 1 based on Manjula’s statements. Mayank’s dairy, blood-stained clothes, cellphone, and pistols were seized. Khurmimlal Doungel a second year BA student of Amrita College, and a native of Assam was also charged with supplying weapon to Mayank.




PM lobbies for Havana deal

New Delhi, Sept. 22: Prime Minister Manmohan Singh, worried about the strong reaction against the proposed joint terror mechanism with Pakistan from the BJP and the Indian strategic community, has started lobbying for the agreement — of which the details are reportedly still to be worked out. He had a meeting with the Left leaders for a start, and expressed the hope that the mechanism would be given a try and that it would succeed.

The Prime Minister will be meeting the members of the Cabinet Committee on Security to discuss the terror mechanism and get a green signal to go ahead on this with Pakistan. Till date, however, the details of the mechanism are not known, with the concerned ministries and agencies in the dark about the proposal.

The ministry of external affairs, the home ministry, the intelligence agencies and the armed forces were the nodal agencies that sources said should have been consulted and taken on board by the Prime Minister, but they admit to being completely in the dark. It is still not clear whether some of the salient points of the controversial joint terror mechanism have been worked out by him and Gen. Musharraf at their meeting in Havana or whether they will be starting the process from scratch.

Gen. Musharraf himself has not received an exactly enthusiastic response from Pakistan, and indicated as much to reporters in New York when he said that the intelligence agencies were worried about what they would have to share with India. The extremist groups are also not particularly happy about the deal, with reports in the Pakistan media hinting at reservations that have not yet been voiced as the leaders are waiting for Gen. Musharraf to return and explain the form and substance of the joint mechanism against terrorism.

Significantly, both Dr Manmohan Singh and even the usually talkative general have maintained a discreet silence about how they expect the terror mechanism to be shaped and whether it would involve active interaction between not just the intelligence agencies of both countries but the armed forces which are playing an active role in tracking down terrorists.

Pakistan high commissioner to India Aziz Ahmed Khan told an Indian television channel that Pakistan had already made it clear that it would not allow its soil to be used against any country. He was non-committal about the extradition of persons like Dawood Ibrahim, but told this correspondent that he had not linked this to the joint mechanism as he himself did not know any details about the proposal as yet.

Pakistan has continued to maintain, and this was stated by Mr Aziz Khan in the television interview, that it was prepared to investigate any terror attack provided India backed this with hard evidence. The Indian intelligence agencies claim that they have provided Pakistan with hard evidence against Dawood and other terrorists, but now Dr Singh has agreed with Gen. Musharraf to “let bygones be bygones” and look ahead.

A mechanism to discuss and cooperate on terrorism is already in place between the two countries under the composite dialogue. Officials of the Indian home ministry and Pakistan’s interior ministry have been meeting to exchange notes on intelligence information on terrorism, but there has been absolutely no movement forward on this issue. The joint terror mechanism, thus, is probably envisaged as a more influential setup involving direct exchanges between the intelligence networks.

This has not been met with enthusiasm on either side, as the intelligence agencies of both countries deeply distrust each other and are visibly reluctant to be drawn into a mechanism to cooperate on terrorism. The BJP is determined not to allow this to get off the ground and will oppose it at all levels. The jihadi groups have still not made their mind known but clearly the first reaction is not welcoming. The Left parties have supported the entire Pakistan package that the Prime Minister brought back with him from Havana.

Pakistan has insisted throughout that it is not supporting terrorism, that it is not running terrorist training camps as alleged not just by India but the Pakistani and the international media, and that it is a victim of terrorism itself.



Monkey strangles girl to death

Lucknow, Sept. 22: Deep Chand is in deep distress over the death of his 16-year-old daughter Mamta who was strangulated by a monkey two days ago. The “murderer” did not flee after committing the crime but sat near the body, grinning away to glory. The police refused to arrest the killer or even register a case. “How do we register a case against a monkey,” asked the incharge of the PP Ganj police station in Gorakhpur district.

Mamta, according to Mr Deep Chand, was drying corn kernels on the terrace of her house on Tuesday. A monkey suddenly appeared and began eating the kernels. She tried to shoo away the monkey. When he refused to budge, she picked up a stick to beat the monkey. But before she could get him, the monkey attacked her.



New debate over closure of Hyderabad airport

New Delhi, Sept. 22: After the issue of privatisation, there is a new debate over the intended closure of the existing Hyderabad airport for civil flights by the government (after the new airport at nearby Shamshabad comes up). The debate has occupied much of the time of the tripartite committee on modernisation set up by the government. The issue figured prominently at the recent meetings of the tripartite committee held on September 13 and 20 in the capital.

As per the minutes of the meeting held on September 13, the Airports Authority of India Employees Joint Forum had suggested that “existing airports at Hyderabad and Bangalore are to be kept operational, if necessary even for domestic operations”. The joint forum further suggested, “If new airports are being constructed at Hyderabad and Bangalore, then there is no necessity of investing huge amounts in various works in the existing airports.”

There are currently nine members of the tripartite committee, including four AAI officials, four AAI union members and one official from the civil aviation ministry. The committee, which had initially been constituted in February, 2006, was revived last month by the government after the AAI unions threatened a nationwide strike after they claimed that the government was not being taking their demands seriously.

When asked about Hyderabad airport, an AAI union official and tripartite committee member said, “We are totally opposed to the closure of the existing Hyderabad airport after the new airport becomes operational. We have raised this issue very strongly in the committee meeting.” In fact, a parliamentary committee had earlier expressed distress at the decision of the civil aviation ministry to shut down the existing Hyderabad airport for commercial operations.



Guidelines on effective police action in States

New Delhi, Sept. 22: In a landmark judgment on police reforms in the country, the Supreme Court on Friday laid down guidelines aimed at making it free from unwarranted influence and to act in effective manner but also to make it accountable through a better mechanism of redressal of the complaint against them.

The top court asked the Centre, States and Union Territories to comply with the guidelines on creation of various bodies contemplated on or before December 31, so that these could become operational on the onset of the new year. “The State governments are directed to constitute a State Security Commission in every State to ensure that the State government does not exercise unwarranted influence or pressure on the State police,” said a bench comprising Chief Justice Y.K. Sabharwal, Justice C.K. Thakker and Justice P.K. Balasubramanyan.

It will also have the power to lay down the broad policy guidelines so that the State police always acts according to the laws of the land and the Constitution” said Justice Sabharwal, writing the judgment for the bench. In order to ensure that such a commission is not only an eyewash, the bench also ordered that its recommendations shall be binding on the State government.

Its functions would also include giving directions for the performance of the preventive tasks and services oriented functions of the police, evaluation of the performance of the State police and preparing a report, which is to be placed before the legislature, stated the bench. This body shall be headed by the chief minister or home minister as chairman with DGP of the State as its ex-officio secretary.



Top court stays fresh GM trials

New Delhi, Sept. 21: The Supreme Court on Friday restrained the Central government from granting fresh approval for field trials of genetically modified (GM) products in the country until further orders. A bench headed by Chief Justice Y.K. Sabharwal also directed the government to induct scientists and exp-erts into the Genetic Engineering Approval Committee. The court’s stay order would, however, not apply to field trials of genetically modified products which are already underway such as those of Bt brinjal and Bt cotton.


SC nod for student poll norms

New Delhi, Sept. 22: The Supreme Court on Friday gave a green signal for the implementation of J.M. Lyngdoh Committee recommendations on students’ union election in colleges and universities across the country. The recommendations got the nod from a bench headed by Justice Arijit Pasayat as an interim measure, till the court arrives at a final decision.

Saying that it was generally felt that the organisations such as NSUI, ABVP, AISF, SFI etc., had a tendency to unnecessarily politicise the election process, the committee has recommended that during elections, no person, who is not a student on the rolls of the college/university shall be permitted to take part in the election process.

“Any person, candidate or member of the student orgainisation violating this shall be subject to disciplinary proceedings in addition to the candidature as the case may be being revoked,” the committee recommended.



Thursday, September 21, 2006

 

Business News Sep 21st,2006

ONGC, Sinopec JV buy Omimex

New Delhi, Sept. 21: The 50:50 joint venture of ONGC Videsh subsidiary, ONGC Mansarovar, and a subsidiary of China’s Sinopec, has acquired Colu-mbian oil firm Omimex de Columbia from Texas-based Omimex Resources. ONGC Mansarovar and a subsidiary of Sinopec International Petroleum Exploration and Production Corporation (SIPC) will pay $425 million each for acquiring Omimex de Columbia.

Omimex has oil and gas operations exclusively in Colombia, which include onshore production and exploration areas with gross proved reserves of more than 300 million barrels of oil and current production at approximately 20,000 barrels of oil per day. Omimex’s assets constitute a 100 per cent interest in the light oil Velasquez mineral property and 50 per cent interest in the Nare and Cocorna Association contracts, where as the Colombian national oil company, Ecopetrol S.A., holds the remaining 50 per cent.

Omimex also owns 100 per cent of Velasquez-Galan pipeline, which runs 189 km from the Velasquez property to Ecopetrol’s Barrancabermeja refinery. The acquisition of Omimex is the first acquisition made jointly by ONGC Videsh and SIPC. SIPC, founded in January 2001, is a wholly owned subsidiary of China Petrochemical Corporation (Sinopec Group). Sinopec is a major petroleum and petrochemical entity incorporated in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec is China’s largest producer and supplier of oil products. It is also the second-largest crude oil producer in China.



OVL on black gold hunt in Latam

Hyderabad, Sept. 21: In August last year, ONGC Videsh Ltd, the overseas arm of ONGC Ltd, lost its battle to acquire Petro Kazakhstan, a Canadian company, to China National Petroleum Corp, which paid $4.18 billion, substantially higher than offered by the Indian company. ONGC-VL had bid for Petro Kazakhstan in partnership with the L.N. Mittal group.

More than a year later, OVL’s partnership with Sinopec International Petroleum Corporation and Production Corp, a Chinese company, appears to have paid off with the 50:50 JV acquiring Omimex de Colombia in Colombia from the Texas-based Omimex Resources, Inc. While ONGC has not indicated how much the JV would be paying for acquiring the in-production assets of Omimex, earlier reports have indicated that it could be $850 million.

The Colombia push appears to be part of ONGC’s strategy to acquire potential oil-bearing blocks in Latin America (Latam), because the protectionist tendencies in the Western world have made in difficult for exploration and production companies from the developing world to acquire energy companies, according to oil industry analysts. Last year, the Chinese government-controlled CNOOC dropped its $19.6 bid, in cash, to acquire Unocal Corp., the ninth largest company in the US, after US legislators raised “security” concerns.

The Colombian deal is the latest undertaken by OVL in Latin America. Earlier this month, the company entered into a production sharing contract with CUPET, the state-owned oil company in Cuba. In May, OVL acquired a 30 per cent participating interest in six exploratory blocks in offshore Cuba from Repsol YPF. And in July, OVL signed an MoU with ith PetroEcuador, the state oil company of Ecuador, under which the two energy firms will collaborate in the area of exploration and exploitation of hydrocarbons in Ecuador.

It isn’t Latam alone where OVL has been scouting for potential E&P contracts. ONGC Mittal Energy Ltd, its JV with steel tycoon L.N. Mittal, won two prospective oil and gas blocks in Nigeria. It’s most productive assets are in Sudan, where OVL has a 25 per cent in the Greater Nile Oil Project, while China National Petroleum has a 40 per cent stake. GNOP produces three lakh barrels of crude oil per day, and is estimated to have oil reserves of over one billion barrels. OVL also has interests in Libya, Egypt and the Ivory Coast.



Centre sets norms for SEZ players

New Delhi, Sept. 21: With the Left criticising the special economic zones (SEZ) as an opportunity for builders to grab land, the government on Thursday finalised guidelines for developing social infrastructure in SEZs, besides setting a criteria for developers. This is being done to prevent the SEZ from becoming a mere real estate opportunity. The Board of Approvals for SEZs, which met on Thursday, has made it mandatory for the SEZ developers to invest a specific amount or have a stipulated network to be eligible for setting up sector-specific and multi-products’ zones.

The board has decided the procedure to be adopted while approving infrastructure in non-processing area of SEZs. The government will shortly notify the list of activities that will qualify for tax exemptions. The activities include building of basic infrastructure, water and sewage treatment plants, office space, shopping areas, schools, houses, hospitals, recreational and sports facilities, restaurants, power and gas connections.

But multi-product zones, that are spread over a minimum area of 1,000 hectares, would also be allowed to build ports, airports, banks, rail heads and golf courses. However, developers need to have a net worth of at least Rs 250 crores and invest a minimum of Rs 1,000 crores for a multi-product SEZ. For sector-specific zones, the board fixed the minimum investment at Rs 250 crores or a net worth of Rs 50 crores.

Sector-specific SEZs developers can build a maximum of 7,500 houses, a 100-room hotel, a 25-bed hospital and have an office space of up to 50,000 sq.m in non-processing area. In multi-product zones, developers can build a maximum of 25,000 houses, a hotel with 250 rooms, a 100-bed hospital and office space of not more than 250,000 square meters. Moreover, developers can build houses only in stages, which cannot be sold and the board may allow additional houses if developers require for employees working within the zone.



SEZs nothing but real estate: RBI

New Delhi, Sept. 21: In a notification, the Reserve Bank of India directed commercial banks to “treat exposure to special economic zones” as “lending to commercial real estate sector”. The directive has come into operation with immediate effect. “Keeping in view the current market conditions, it has been decided that the exposure of banks to entities for setting up SEZs, or for acquisition of units in SEZs, which includes real estate, will be treated as exposure to commercial real estate sector and banks will have to make provisions as also assign appropriate risk weights for such exposures as per the existing guidelines,” the RBI notification said.

This means that SEZs, which so far have been treated as “infrastructure”, are being looked at by RBI as a real estate ventures. Since banks have a ceiling on real estate exposure, and SEZs too will be clubbed with real estate, both will vie for the same limited resources. Realty carries a higher risk weight and, hence, higher lending rates. The notification comes in the wake of the tug-of-war between the finance ministry and Planning Commission on one side and the commerce ministry on the other.



Flush with funds, VCs lament lack of ideas

Hyderabad, Sept. 21: Concerned over the trend of too many venture capital funds chasing few bankable ideas in the country, experts at the TiE ISB Connect on Thursday asked entrepreneurs to bank upon technology as the prime differentiator. Speaking at a panel discussion on Internet Technologies, entrepreneurs led by Mr Ajit Balakrishnan of Rediff and Mr Ganesh Rengaswamy, managing director of Greylock Partners, stressed that there were too many “me-too” enterprises.

“Although there are ideas, return on investments and the exit option are also important from their (VC’s) point of view,” Mr Rengaswamy said, adding that the spurt in funding activity in the country is also not a healthy scenario. “In fact, there is more money and less bankable ideas,” he added. Echoing Mr Rengaswamy’s views, Mr Balakrishnan said that there are more VCs than entrepreneurs.

Earlier kicking off the proceedings on the second day of the event, Mr C. Srinivasa Raju, CEO of iLabs Funds, said that India and China have been the key regions for growth which was primarily driven by demographics and urbanisation. There has been a significant shift in the expansion of mindset as Indian companies become cost competitive on a global stage to better the sourcing hub model. This has translated into an increase in FDI inflows by 40 per cent to touch $7.5 billion in FY05-06, with private equity commitments of about $2 billion.

Additionally, the total private equity and venture capital investment committed by various industry verticals is close to over $2,000 million between April-June 2006, Mr Raju said. Although issues related to seed funding remain, the risk portion is taken care of as only execution risk exists and idea risk in the early stages is absent.

On the current VC scenario, Mr Raju said, that there are a number of VC/PE funds that specialise in various segments and there is plenty of money in the market which has led to increased competition among funds. In fact, this has led to a heated market leading to over valuations in the IT and ITeS sectors.

Explaining the current challenges, Mr Raju said winners have been declared in the IT services, telecom, banking, insurance, construction, infrastructure and media sectors. “But the next in line, which are up for grabs, are healthcare and life sciences, retail, logistics and distribution, entertainment and defence,” Mr Raju noted.



1.1m Indian millionaires by ’09

New Delhi, Sept. 21: Indian millionaires are growing in numbers and the population of individuals with liquid wealth of $1 million is expected to touch 1.1 million by 2009, says a survey by plastic card major American Express. The millionaire club, which is currently pegged at 71,000, is expected to expand by 12.8 per cent annually, the report titled ‘Inside the Affluent Space’ said.

It said their estimated cumulative liquid wealth of $203 billion is expected to increase to $322 billion by 2009. The study also offers an insight into attitudes, behaviour and expectations of the rapidly growing population of affluent consumers in India. Releasing the report, American Express senior vice-president Atul Mathur said: “India’s strong economic growth, combined with other social factors and increasing consumerism is steering a dramatic change in the lifestyle aspirations of the country’s rapidly growing affluent segment.”

The research was conducted to understand the marketplace and underlying consumer lifestyle desires, he said. “The affluent population is growing very rapidly and is expected to grow 12 per cent on an average across both the mass affluent and high net worth individual segments over the next few years,” American Express country manager Rob Hennin said.

‘Inside the Affluent Space’ shows that affluent consumers in India have a very clear idea about what they expect from their lifestyles and from those who provide it to them. If businesses want to attract and retain these customers, they need to be very clear about these expectations too. The new insights into the affluent consumers’ mindset are powerful and will compel luxury marketers to refine and even change their approach to this consumer segment in India.

“The affluent population is growing rapidly. In fact, it is expected to grow at a rate of approximately 12 per cent on average across both the mass affluent and high net worth individual segments over the next several years. Today in India, these consumers already account for nearly US$203 million in cumulative wealth,” said Mr Hennin.

The study said that women, in particular, emerged as a distinct voice signaling a micro-trend in the marketplace. As more and more women acquire their own status as affluent individuals —with their own money —their expectation is escalating specifically around “the best” and more of it when it comes to personal indulgence, pampering and the pursuit of “refined living”.



IBM to add 3,000 employees in India

Kolkata, Sept. 21: IBM India on Thursday announced the expansion of its global delivery capacity in Kolkata by opening its fourth facility in DLF IT Park, Rajarhat. IBM plans to hire over 3,000 new employees at the facility. IBM has been one of most aggressive recruiters in the Indian marketplace. From 38,500 employees in December 2005, IBM augmented its workforce to 43,000 as of June 2006.

This facility will enable IBM to scale its existing application services delivery capabilities in India in keeping with the growing client needs. Kolkata houses IBM’s second-largest pool of employees after Bangalore. IBM plans to ramp up its technical talent in areas such as SAP, mainframe, web technologies and business consulting at the new center.

Buddhadeb Bhattacharjee, Chief Minister of West Bengal, while inaugurating the facility, said: “We believe that the information technology industry will fuel the future growth for West Bengal. It will open up new opportunities for the talented workforce of the State. We welcome innovative companies like IBM to invest and partner with us in the development of our State. I am confident that this association will bring desired gains to both IBM and West Bengal.”

“As a globally integrated company, IBM has oriented itself to lead in high-value creation and delivery of services led by our strategy of doing the right tasks, with the right skills, in the right places. Our new facility in Kolkata will further augment our vast global delivery network that spans three dozen countries including India that deliver high value solutions to help our clients innovate globally,” said Shanker Annaswamy, managing director, IBM India, during the inauguration.

With a strong campus relations strategy in India, IBM continues to contribute to innovative academic programmes in the state such as its MOU with Jadhavpur University that led to the 'Centre for Mobile Computing' (CMCC) a centre of excellence for wireless, RFID/ sensor technologies.



Sensex zooms 165 points

Mumbai, Sept. 21: Short covering, falling global crude prices and relief that the US Fed was not going to raise interest rates saw the market upbeat for the second day running.
The Sensex closed 165.13 points up at 12,274.27 and saw a high of 12,285.90 during the day. This high was more than the earlier all-time high in May — 12,671. The turnover on both the exchanges was Rs 36,934 crores with the F&O sector accounting for Rs 26,385 crores.

The buoyant sentiment on the exchanges was fuelled also by the news that most companies surpassed their earlier record of advance taxes, indicating a healthy economy. According to these sources, even PSUs like HPCL and BPCL, which did not pay any advance tax last year paid Rs 125 crores and Rs 105 crores this year. ACC and Gujarat Ambuja paid a hefty Rs 125 crores and Rs 120 crores as against Rs 5 crores and Rs 2 crores last year. Grasim paid Rs 155 crores against Rs 80 crores and SBI paid Rs 863 crores.



Mobile carriers will stand up on their own
IT Today


The wireless industry has become, in the past 10 years, one of the largest enterprises in the world. So, the question, is have mobile carriers convinced themselves that it’s time to take their technology futures into their own hands? Industry analysts believe that the Next Generation Mobile Networks initiative, announced September 14, is a clear indication that the carriers are planning to do their own thing.

The NGMN’s mission statement says, “NGMN intends to complement and support the
work within standardisation bodies by providing a coherent view of what the operator community is going to require in the decade beyond 2010.” It goes on to say that it plans to “provide a set of recommendations for the creation of networks suitable for the competitive delivery of mobile broadband services and cost-efficient eventual replacement of existing networks.”

According to analysts, only mobile carriers will be accepted in the NGMN as members. Conspicuous in their absence are wireless infrastructure vendors from both sides of the aisle as well as the networking companies such as Intel and Cisco. Only carriers can join as members; vendors may be part of the organisation only as “Sponsors” or “Advisors.”

“Competing (and slow-moving) standards bodies such as the 3GPP and 3GPP2 as well as the ITU, IEEE, and other organisations are working toward consensus-based standards that are satisfactory to their constituencies of equipment vendors and suppliers, not the carriers,” says a market research firm.

After the standards are finally agreed upon, the carriers-who will be the ones writing the checks for the technology-must stand by and watch as the weaknesses and benefits of each new offering are argued among financial analysts, industry analysts, white papers, the trade press, the popular press and blogs everywhere. Judgement will be passed and the financial markets will decide how much money the carrier gets to pass on to the infrastructure vendors.

IP telephone

Meanwhile, businesses’ move to IP telephony continues to drive spending, with this area experiencing the greatest growth in spending among business networking infrastructure expenditures. Along with robust growth in IP telephony spending, spending on security appliances and enterprise WLAN will experience strong increases in 2006. While these areas will experience the greatest gains this year, spending on LAN switches, the largest segment of the infrastructure market, will see moderate increases that are expected to continue through 2010, it says.



1 lakh rural Common Services Centres soon

New Delhi, Sept. 21: The Union Cabinet on Thursday gave its approval for setting up one lakh rural Common Services Centres (CSC) across the country at a total cost of Rs 5,742 crores. Of this, the government of India’s outlay would be Rs 856 crores, and the state governments’ share Rs 793 crores.

The balance amount of Rs 4,093 crores is expected to come from the private sector. The project is proposed to be implemented by the department of information technology through a public private partnership. The CSC is a strategic cornerstone of the National e-Governance Plan (NeGP), approved by the government in May 2006.

Under the project, the CSCs in one lakh villages will be broadband Internet-enabled and would offer a basket of government-to-citizen (G2C) and business-to-customer (B2C) services. The government is putting in place necessary arrangements to provide reliable broadband connectivity (256 Kbps) upto the CSC level. The one lakh CSCs will cater to six lakh villages in the country, which means at least one CSC in a cluster of six villages.

A highlight of the CSCs is that it will offer web-enabled e-governance services in rural areas, including application forms, certificates, and utility payments such as electricity, telephone and water bills. Other significant public and private services that can be accessed through these centres would be remote consulting for healthcare, e-enabled vocational training, market and supply chain linkages, rural BPO, agricultural prices and weather information.



Fire at Tata Motors paint shop in Pune

Mumbai, Sept. 21: Automotive major Tata Motors said on Thursday production at its car plant in Pune may get affected following a fire at its paint shop. There was no casualty.
“Preliminary assessments indicate that production from the paint shop may get impaired for about a week,” a company statement said from Mumbai.

The company has about a week’s inventory of supply float in the pipeline, it said. All necessary steps are being taken to resume production at the earliest, simultaneously mobilising alternate painting facilities within Tata Motors' Pune plant, the statement added. Tata Motors said it was ascertaining the extent of damage. The facility is adequately insured for fire, including for loss of operations, the statement added.



Infor to consolidate India biz

Hyderabad, Sept. 21: Infor, a US-based enterprise software solutions provider, which stepped up its Indian presence after the acquisition of SSA Global, will consolidate its businesses here as it seeks to enhance its focus on the small and medium enterprises (SME) market.

“Infor will integrate two of its teams that worked on a product for Sonata and HCL on a bill-for-order basis with SSA Global’s existing business in India based out of Hyderabad,” Mr Jim Schaper, chairman and CEO of Infor, told reporters here on Thursday. “Our solutions in the enterprise, strategic and financial solutions group can be marketed in India because the SME market here is still not crowded with a penetration level of 10 per cent by existing players. We will expand and develop our existing business in India,” Mr Schaper said.

The $2.1-billion Infor is targeting a foothold in the SME market in India as globally, more than 80 per cent of its 70,000 customers, account for this segment. Infor will bank upon its products, that Mr Schaper claims, has the “lowest cost of ownership in the mid-market”.

With 500 customers in India, Mr Schaper said he was bullish on the growth potential of the market and picks India in particular and Asia-Pacific as the geographies that are witnessing the highest growth as far as manufacturing products and Financial Solutions Group are concerned. Commenting on the software industry, Mr Schaper who is also a operating partner in private equity space Golden Gate Capital, said, “We have grown through acquisitions and so have some of our competitors (Oracle, SAP). Consolidation on the market will continue and will accelerate in the next 24-28 months.”

Infor is targeting organic growth of 10-12 per cent this fiscal and in the next two years has plans to be a publicly traded company in the US. Golden Gate Capital, with over $2.5 billion of capital under management owns 80 per cent in Infor.



Citi plans Indian brokerage network

London, Sept. 21: Citigroup, the world’s largest financial services group, plans to build a retail brokerage network across India to boost its share in one of Asia’s fastest growing markets. The US-based banking group proposed to launch its brokerage under the citigroup Smith Barney name as early as November, initially focusing on clients of citigroup units already active in the country, Financial Times daily on Thursday reported quoting Sanjay Nayar, Citigroup India chief executive officer.

Over the next year, the bank intends to build a 25-branch brokerage network, which would boost its other businesses, such as its nascent private banking operation and its services targeting small and medium enterprises. The move by Citigroup follows a boom in the market for investment banking services in India, with rapid economic growth spurring equity issuance and merger and acquisition activity, the report said.

Citigroup is jostling with DSP Merrill Lynch, JM Morgan Stanley, Deutsche Bank, UBS, JP Morgan, ABN Amro and others for market share in India. Indian retail investors account for about 75 per cent of trading volume in the equity market. Retail interest in shares is growing as more of the traditionally conservative middle classes move their money from safe asset classes into stocks but competition between brokerage houses on fees is cut-throat.

In the first eight months of this year, Indian companies were involved in 798 M&A deals worth $29 billion compared with 1,132 M&A deals worth $25 billion for their Chinese counterparts, according to data from Thomson Financial.



Bharti wins GSM licence in Europe

New Delhi, Sept. 21: Bharti Global, the offshore investment arm of Bharti group, has been awarded licences to operate 3G as well as 2G mobile services in Guernsey, an Island located in the English Channel northwest of France. Guernsey Airtel Ltd, a subsidiary of Bharti Global, emerged as the highest ranking applicant for the licence through a competitive selection process. This is the third international telecom venture of Bharti. In May 2006, Bharti was granted a licence to run comprehensive telecom services in Jersey.


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