Tuesday, October 10, 2006
Business News Oct 10th, 2006
Opening of financial sector inevitable: PM | |
London, Oct. 10: India on Tuesday said it will further open up its financial sector to foreign investors, just as it had removed barriers to FDI in most other sectors, after forging a political consensus.“I cannot report that I have consensus on it. But I remain hopeful that this is an idea whose time has come. It is only a matter of time before we can move forward with regard to liberalisation of financial sector,” Prime Minister Manmohan Singh told British investors at the India-UK Investment Summit. Dr Singh said he had held discussions with the coalition partners regarding the need for further opening up banking and insurance sectors — a key demand of most developed nations, including the US and UK. But such a move has been strongly resisted by the UPA’s main prop — the Left parties. Dr Singh said the government remains committed to liberalise trade in services, financial and legal sectors included. “I do believe we need to promote a widely held pension fund system. We need a much larger insurance sector, with a higher capital base with more diverse products. It is these which will generate the necessary long term funds for investing in a debt market and make available resources for investment needs of our country, particularly in the vital infrastructure sector.” Dr Singh said the country had already removed most barriers to foreign direct investment in the manufactuting sector, but would like to see higher FDI inflows in infrastructure. | |
Dr Reddy’s settles Glaxo patent row | |
Hyderabad, Oct. 10: Dr. Reddy’s Laboratories said on Tuesday that it has settled patent litigation with GlaxoSmithKline relating to sumatriptan succinate tablets, the generic version of GlaxoSmithKline’s Imitrex tablets The terms of the settlement, which remain subject to government review, provide that Dr Reddy’s may exclusively distribute an authorised generic version of sumatriptan succinate tablets (in the 25 mg, 50 mg and 100 mg strengths) in the US with an expected launch date late in the fourth quarter of 2008 ahead of the expiration of the pediatric exclusivity on 5037845 patent on February 6, 2009. Additional terms of the settlement agreement were not disclosed, a Dr Reddy’s statement said. GlaxoSmithKline’s Imitrex® tablets, which are indicated for the acute treatment of migraine attacks in adults, had US sales of $890 million for the 12-month period ending June, 2006. | |
Nath calls for hike in FDI inflow | |
New Delhi, Oct. 10: Union commerce minister Kamal Nath has called for increasing the inflow of foreign direct investment (FDI) from UK into India. The commerce ministry info-rmed that Mr Nath, in his address to the “India-UK Investment Summit” at Lancaster House in London on Tuesday, said that the total outward investment by UK is of the order of £35 billion annually, of which only about £80 million flows into India. Pointing out the attractiveness of India as an investment destination, Mr Nath said that global corporations understood the value of leveraging India’s advantages. “In fact, India has achieved levels of European productivity at 20 per cent of the cost. It continues to remain competitive vis-à-vis its South Asian neighbours in labour costs,” he said. The cumulative FDI inflow from UK is about £1.1 billion. Mr Nath said that corporations from the UK have primarily flowed into the areas of electrical equipment, fuels and service sector. British companies like Castrol, Thomas Cook, ECOM Communication and Scottish and New Castle have been some of the largest British investors in India. He also pointed out that (citing the latest issue of European Investment Monitor of E&Y), India has also emerged as the second largest foreign investor in the UK. Giving an example of cost advantages in India, Mr Nath said that a US-based auto component manufacturer would increase its potential return on sales by 3-6 percentage points by shifting its manufacturing to India. “India has already put itself on the radar of every investing entity in the world. The world recognises that it would be impossible to do business without India,” he said. | |
Lacklustre Sensex awaits Infy numbers | |
Mumbai, Oct. 10: The Sensex started off with a 100 point gain in line with the positive sentiment in the Asian markets, but as the day progressed was like a yo-yo shifting between positive and negative territory and finally closed down 2.06 points. It touched a low of 12,341.34 and a high of 12481.93 to close at 12,363.77. The Nifty was up 3.90 points and closed at 3571.05, after touching a low of 3563.10 and a high of 3597.20 in intra-day trade. In contrast, the Asian markets all classed in the green with the Hang Seng up 148.48 points, the Kospi 8.97, Nikkei 41.19 and the Straits Times 26.15. The turnover was also low at Rs 26,860.2 crores compared to the last one week with the F&O sector accounting for Rs 17,575.9 crores. The number of stocks that went up were 465 compared to 462 that ended in the red. Some market watchers felt punters were cautious as Infosys is declaring its results on Wednesday and were waiting to see if they were above market expectations or not and then take positions. Infosys is usually seen as the leader setting the trend for what may be expected during the earnings season. Infosys was up Rs 8.70, while TCS gained Rs 8.60, Satyam Rs 1.10 and Wipro Rs 4.40. Among the heavyweights that pulled the Sensex down were ONGC which lost Rs 4.65, RIL Rs 3.95, SBI Rs 3.75, Tata Steel Rs 8.55 and HLL Rs 4.85. Among the gainers were HDFC Rs 22.40, Grasim Rs 16.35, MUL Rs 12.35 and Tata Motors Rs 10.10 and HDFC Bank Rs 7.20. | |
Reforms agenda needs paradigm shift | |
By Olga Tellis | |
15 years on... While there will be many studies done of the achievements of the 1991 economic and financial reforms in the last 15 years in the coming days and months, the Prime Minister has given his considered view on the subject. It is very interesting and one can see it as the way one wants like the case of a glass half full or half empty. Everyone knows about the achievements and fruits of reforms as they scream from every billboard in big cities and smaller towns. But interestingly the Prime Minister Dr Manmohan Singh said he wanted to point out to a “greater concern for the long term well being of the nation.” He said that and I quote him verbatim “millions of our fellow citizens are still deprived of the benefits of a growing economy. While the belief in a market economy is certainly justified it must be remembered that markets serve those who are part of it. They have no relevance to those who exist on the margins of subsistence and who have neither the physical nor the human resources to participate in them.” He said the growth had not been able to generate employment opportunities on the same scale. Reforms need a new paradigm There is much being said about the Soviet-type economy of India of the 50s, 60s, and 70's and the damage it did to economic growth but there's a lot to be learnt from what happened then and what led to 1991. One thinks that it’s time for the policy makers, whom some refer to as the dream team (earlier they were three but now two more have been added) to read The Indian Economy -Problems and Prospects edited by former RBI governor and now Rajya Sabha member Dr Bimal Jalan. He says “In the 1950s and 60s we engaged in learned debates on import substitution versus export promotion policies and industry versus agriculture. In the 1970s we had similar debates on outward-orientation and inward-orientations and on the monetarist vs structuralists approaches to balance the payments and inflation. 2006 could be the 1970's From what one sees, the present policy makers are getting bogged down in the same way as their predecessors did in the 1970s. It is time to move on. As Dr Jalan points out reforms were undertaken after a particular crisis, namely an empty foreign reserves kitty — and they have succeeded tremendously. We have enough forex reserves to stand many a crisis, not just one. Market forces cobwebbed So it is time to relook at the nature of the economic and financial reforms and see whether they have outlived their use in their present avatar. They have as Dr Manmohan Singh who is considered the architect of the reforms, says not delivered the goods to the majority of the population. Apart from the millions who have been sidelined, agriculture is sluggish and as he says it supports two-thirds of our population. He says there is need to expand reforms to include health, education and agriculture. If any reminder is needed, it is the present epidemics of dengue, malaria and chikungunya that are calling for the shift that Dr Singh spelt out at the Economic Times function. | |
Smart MIMO is new kid on the block | |
IT Today | |
WiMax also has a range of up to 30 miles, presenting provider networks with a viable wireless last mile solution, according to SearchMobileComputing. We will talk about one such development in WiMax today. But first, Aircel's WiMax push in Chennai. Aircel’s Internet services through Worldwide Interoperability for Microwave Access (WiMax) enables enables ‘last mile’ connectivity using ‘near line of site’ (NLOS) wireless equipment. On the technology front, meanwhile, Navini Networks, a US-based firm, has launched a solution called Smart WiMax, which purportedly optimises mobile WiMAX. According to Sai Subramanian, Navini’s VP of product management and strategic market, Smart WiMAX combines the Smart Beamforming technology currently in commercial service around the world, with beamformed MIMO (multiple input multiple output), which can double the data throughput for mobile WiMAX subscribers. “Navini’s beamformed MIMO, called ‘Smart MIMO’, extends the range over which typical MIMO signals can be received and enhances the received signal power, so data can be transmitted as much as six times faster,” he says. “While some vendors have taken an “either MIMO or beamforming” approach to advanced antenna systems for mobile WiMAX, Navini's unique app-roach combines them to improve the performance of mobile and stationary users,” Mr Subramanian says in a posting on Navini Networks’ web site. “Beamformed MIMO and Smart Beamforming together create a very powerful solution called Smart WiMAX. Delivering both is better!” “We’ve seen beamformed MIMO signals demonstrating over 12dB gain (16 times increase in received power) compared to standard MIMO. In many locations where standard MIMO signals are not receivable, the enhanced beamformed MIMO signal is not only received but decoded using 16 QAM (fast) or 64 QAM modulation (very, very fast). Additionally, Beamforming delivers over 9dB gain (8 times increase in received power) on the uplink, which is critical to getting broadband performance from low powered devices.” | |
PM rallies behind call centres on data scare | |
London, Oct. 10: Prime Minister Manmohan Singh on Tuesday assured British investors that India had excellent standards for information protection, days after a UK-based channel made damning allegations about data theft from Indian call centres. “India adheres to all international codes and regulations pertaining to safety and protection of investments and Intellectual Property Rights. We also have in place excellent standards for data protection,” he said addressing the India-UK Investment Summit here. The allegations by Channel-4, which have the potential to hurt the country’s booming BPO industry, prompted a police investigation. “We have signed an MoU with Britain to strengthen our cooperation in IPRs,” Dr Singh said. “Investment in India is both safe and profitable,” he said, adding that the country offers tremendous new opportunities in manufacturing, particularly in automobiles and auto components, pharma, biotech and food processing. Channel-4 last week claimed to have unearthed a racket where Indian call centre workers, handling outsourced work, were selling classified data. The allegations were reminiscent of a similar fraud involving an HSBC employee in June and another call centre worker in Mumbai in September. | |
Study finds remote staffers play loose with computers | |
Hyderabad, Oct. 10: Most remote workers, or tele workers, say they are aware of security issues, but their behaviour with regard to sharing work computers with non-employees, opening unknown mails and hijacking wireless networks suggests otherwise, a new study says. The global third-party study commissioned by Cisco Systems took a sample of 1,000 workers in 10 countries, including India. It spotlights the challenge that behavioral and cultural tendencies create for IT security teams as more employees work outside of traditional offices — a business practice that can enhance productivity yet jeopardise corporate and personal security. “Whether they work at home, at a café, or in a hotel,numerous findings indicate that remote workers aggravate network security concerns because of a false sense of awareness. In fact, while two of every three teleworkers surveyed (66 per cent) said they are cognisant of security concerns when working remotely, many admitted behavior that under mines and contradicts their awareness,” the CiscoSystems-funded study says. Their reasons offer valuable in sight for IT and security managers around the world, fueling a need for tighter, proactive relationships with end users. The study found that more than one of every five remote workers surveyed (21 per cent) allow friends, family members or other non-employees to use his or her work computer to access the Internet. “One of the most glaring contradictions in the study’s results involved non-business activity: Only 29 per cent of remote workers surveyedin the 10 countries admitted that they use their work computers for personal activities. However, 40 per cent - 11 percent more - admitted that they use their work computers foronline shopping. This discrepancy occurred in eight of the 10 countries(excluding China and India). For example, in the United Kingdom, only 27 per cent admitted usingtheir work computer for personal reasons, but 53 per cent said they shop online whenworking remotely,” it says. “Hijacking wireless networks or sharing corporatedevices with non-employees is a significant risk for the global IT community,” saidJeff Platon, Cisco’s vice president of Security Solutions Marketing. | |
Centre supports Tatas’ UK bid | |
London, Oct. 10: India is fully supportive of Tata Steel’s bid to take over UK-based steel giant Corus, industry and commerce minister Kamal Nath has said. Asked about his response to the proposed Tata-Corus deal, Mr Nath said “Why not? Tata is one of our leading companies and they must go global. It’s not merely a story today of trade flows — it’s a question of investment, both ways.” It was his intervention on behalf of Lakshmi Mittal earlier this year — basically telling the French not to be so racist if they wanted to do business with India – which probably assisted Mittal Steel’s successful bid for Arcelor, The Daily Telegraph newspaper reported on Tuesday. This year, for the first time, Foreign Direct Investment (FDI) into India —amounting to between $7 billion to $8 billion —will be exceeded by FDI going out of the country to finance acquisitions by Indian companies. There are plans to create a “family of 100 Indian companies”, each worth 1 billion dollars, which assist one another. “And that is before | |
IFC to invest $500m in agricultural business | |
Chennai, Oct. 10: International Finance corporation (IFC), the private sector arm of the World Bank group, would invest $500 million in the agri-business and infrastructure sector in India in this fiscal. Announcing the investment of $11 million equity in Suguna Poultry Farms Ltd in Chennai on Tuesday, IFC’s executive vie-president Lars H. Thunell said, the IFC would invest $500 million in agri business and private infrastructure projects in India. He said the multi-lateral institution is bullish on the India’s infrastructure development, adding he said IFC would provide funds to firms in small towns to improve the productivity and the rural economy. | |
Dena Bank in expansion mode | |
Chennai, Oct. 10: Dena Bank has chalked out an aggressive plan to take its total business from Rs 42,000 crores to Rs 50,0000 crores at the end of the current fiscal and Rs 100,000 crores by 2010. It has also planned to reduce its net non-performing assets (NPAs) from 5 per cent to 3 per cent by the end of this fiscal. “We have identified Rs 600 crore worth of non-performing assets (NPAs) to sell in a bidding process. PricewaterhouseCoopers is conducting a process to find out the asset value of the assets,” said Mr P.L. Gajrola, chairman and managing director of the bank. The PWC is expected to submit the report in a month. The bank expects to close the deal by the end of this year. He said that the bank is expected to clock a deposit growth of 15 per cent and advance growth of 25 per cent in 2006-07 and is targeting a business mix of Rs 50,000 crores. He added that the bank is deploying core banking solutions (CBS), which will be implemented by a consortium comprising Wipro and Infosys with a total cost Rs 300 crores. “In the current year, CBS will be implemented in 25 branches and in the next two-and-half years it will be implemented in 850 branches,” he added. The bank has adopted a totally outsourced model for its CBS programme. The entire hardware and software will be outsourced from the consortium, he said. Mr Gajrola said the bank would increase its ATM network to 500 from the present 280 and would also add 25 additional branches in this year. | |
Dot-com boom echoed in deal to buy YouTube | |
A profitless website started by three 20-somethings after a late-night dinner party is sold for more than a billion dollars, instantly turning dozens of its employees into paper millionaires. It sounds like a tale from the late 1990’s dot-com bubble, but it happened on Monday. Google, the online search behemoth, agreed yesterday to pay $1.65 billion in stock for the website that came out of that party — YouTube, the video-sharing phenomenon that is the darling of an Internet resurgence known as Web 2.0. YouTube had been coveted by virtually every big media and technology company, as they seek to tap into a generation of consumers who are viewing 100 million short videos on the site every day. Google is expected to try to make money from YouTube by integrating the site with its search technology and search-based advertising program. But the purchase price has also invited comparisons to the mind-boggling valuations that were once given to dozens of Silicon Valley companies a decade ago. Like YouTube, those companies were once the Next Big Thing, but some soon folded. Google, with a market value of $132 billion, can clearly afford to take a gamble with YouTube, but the question remains: How to put a price tag on an unproven business? “If you believe it’s the future of television, it’s clearly worth $1.6 billion,” Mr Steven A. Ballmer, Microsoft’s chief executive, said of YouTube. “If you believe something else, you could write down maybe it’s not worth much at all.” In a conference call to announce the transaction on Monday, there were eerie echoes of the late 1990’s boom time. There was no mention of what measures Google used to arrive at the price it agreed to pay. At one point, Google’s vice-president David Drummond, gave a cryptic explanation: “We modelled this on a more or less synergistic kind of model. You can imagine this would be hard to do on a stand-alone basis.” The price tag Google paid may simply have been the cost of beating its rivals — Yahoo, Viacom and the News Corporation — to take control of the most sought-after website of the moment. It was also perhaps the only price that two YouTube founders, Chad Hurley, 29, and Steven Chen, 28, and their big venture capital backer, Sequoia Capital Partners, were willing to accept. | |
Andhrapradesh Regional News, Oct 10th, 2006
Anomalies in rural job scheme | |
Kadapa, Oct. 10: Irregularities have come to the fore in the implementation of the National Rural Employment Guarantee (NREG) scheme during the social audit conducted by the AP Vyavasaya Karima Sangham and State resource persons in Kajipet mandal of Kadapa district. The social audit report alleged that the contractors in connivance with officials and politicians siphoned off funds to the tune of Rs 11 lakh under the scheme in the mandal. The district administration sanctioned Rs 11 lakhs for taking up desiltation works in irrigation canals and provide 100 man days to landless poor in Shantinagar, Muthuluripadu and Boyyayapalle villages in the mandal. However, the contractors, field assistants and officials completed only 75 per cent works and did not pay the amount to labourers. AP Vyavasaya Karima Sangham district secretary Anvesh submitted a memorandum in this regard to collector M.T. Dhana Kishore on Tuesday. The collector who took the issue seriously, called up the District Water Management Agency (DWMA) project director and directed him to probe into the alleged irregularities. He also called up the Kajipet mandal revenue officer over phone and directed him to probe into the alleged irregularities in works taken up under NREG scheme and submit a report, Mr Anvesh said. The collector reportedly issued orders to stop the payment of cheques for Rs 50 lakhs worth works taken up under the scheme. | |
Auction of temple lands flayed | |
Nellore, Oct. 10: Hindu Temples Protection Committee would file a contempt petition against endowments department for auctioning the temple lands despite a High Court stay order dated May 30, 2006. He said that the endowment authorities have auctioned 10 acres belonging to Chalamaiah Satram in Guntur on August 28 besides another piece of land situated five-kilometre from Sattenapalli on the plea that it is located in an urban area. He said that the department had also issued a notice on September 5 to auction four acres of temple lands belonging to Giddaperumallu Swamy, on the outskirts of Karimnagar town. Stressing that the land is located adjacent to the temple, he ridiculed the department for its failure to protect the land. He criticised endowments minister J.C. Diwakar Reddy for favouring the auction of temple land located in urban areas. “Large extent of temple lands located in rural areas fall under the jurisdiction of urban areas following the formation of new civic bodies and corporations,” Mr Kamal Kumar said, alleging that endowment department is taking advantage of this to auction these lands. He said that half of the 3.76 lakhs acres of temple lands in the State would disappear if the government continues to encourage the auctions. | |
JKC set up in women’s college | |
Nellore, Oct. 10: The Institute of Electronic Governance (IEG) of Government of Andhra Pradesh has identified Dr Bezwada Gopal Reddy Women’s Academy (local women’s degree college) for campus placement mission through Jawahar Knowledge Centre (JKC). The JKC would extend training to the final year students of the institution on industry-related technical and soft skills. Hitherto the JKCs are established in reputed engineering colleges spread across the State to increase the standards of higher education. Jawahar Bharathi Engineering College in Kavali and Audisankara College of Engineering Technology in Gudur are the only two colleges which have the JKCs in the district so far. According to Mr J.V. Reddy, correspondent of the academy, for the first time a degree college was selected for JKC in the district. In JKC, students are trained in technical skills, soft skills, project management skills and communication skills by employing accelerated learning strategies with a mentor-student ratio of 1:5. A team of qualified and skilled individuals from JKC, an offspring of IEG, will select students for the training, who scored above 65 per cent marks. The training includes promotion of curriculum improvement to meet the needs of the industry as well as the government. The 100-day intensive training would be followed by 20-day placement activity for the graduates. Selected students have to pay Rs 1,000 for training as per the guidelines of the JKC. Explaining the programme to this newspaper, Mr J.V. Reddy said that a team from IEG inspected the college two months ago and selected it to establish the JKC, as it was satisfied with the infrastructure. He said that many final year students have shown interest in joining the programme after listening to the salient features when Nithin Reddy of IEG delivered a lecture recently. College principal S. Raghava Reddy thanked the government for extending the programme to the degree colleges while stressing the need for exposure on the needs of the industry to the students. | |
Centre okays to build jetty in Prakasam | |
Ongole, Oct. 10: The Ministry of Environment gave its nod to the fisheries department to construct a jetty (landing stage for boats) at the Gundayapalem in the mandal for the benefit of fishermen community. Earlier, the fisheries department has sent proposals to the Centre for permission to construct a jetty at a cost of Rs.1.63 crore. Gundayapalem, where river Gundlakamma meets the sea, is a suitable place for the construction of jetty. The proposed jetty would benefit hundreds of fishermen, who could anchor their boats even during cyclone disasters. As per the proposals concrete platforms and buildings will be constructed in a five-acre land at Gundayapalem. Speaking to this newspaper, Mr Lakshminarayana, assistant director, department of fisheries, said that for the first time a jetty would be constructed in the district. Fishermen could repair their nets, boats and sell their produce at the landing stage. Prakasam district has a vast coastline of 102 km with 72 fishermen habitations. The fishermen in the district possess 3,500 country-made boats and over 1,300 mechanised boats which help them catch over 12,000 metric tonnes of fish, prawn and other sea products every year. Unfortunately, these fishermen don’t have basic amenities for several years. They don’t have facilities to sell their catch, to repair their boats and nets. During the cyclones, boats anchored near the sea are getting damaged. Fishermen from not only Prakasam but from other districts also catch sea products along the district coast. Some of their problems could be resolved with the construction of a jetty. Fishermen from Nellore, Guntur, Krishna, East and West Godavari also get benefited from the jetty. The department of fisheries is now waiting for release of funds from the State government for construction of jetty. | |
Awareness drive over dengue | |
Rajahmundry, Oct. 10: In order to contain the spread of viral fever dengue, medical and health personnel in East and West Godavari districts took up an awareness drive among the general public on the symptoms of the fever to help them seek medical help from the nearest health centre without delay. The people who suffered the sting of Aedes mosquito will develop symptoms like high fever, rashes on the skin, body and joint pains, vomiting, nausea, post orbital pain in the eye balls and also suffer dehydration. Infected people develop dengue fever at the first instance and later they suffer haemorrhage and at the final stage, they suffer shock syndrome. West Godavari district medical and health officer D.S. Sarma said that they had equipped all the health centres including primary health centres (PHCs) in the villages with the necessary antibiotics to distribute to the patients who approach them with dengue symptoms. He said that to tackle the water and vector-borne fevers like malaria, dengue and chikungunya, they were roping in anganwadi workers and school teachers to bring about awareness among the general public and students to avoid falling prey to the diseases. Administration in both the districts initiated measures to give widespread publicity on dos and don’ts to avoid the spread of the dengue fever. They advised the general public not to allow the stagnation of fresh water in flower pots, air coolers, broken coconut shells, abandoned tyres for long time as they could become breeding ground for the mosquitoes. As a part of the action plan to contain vector-borne fevers, malathion was being sprayed in three phases at various parts covering plain, upland and Agency areas in both the districts. The general public are also advised not to approach quacks for any medical help. Meanwhile, in East Godavari there were no reports of fevers even in Agency areas thanks to the regular spraying of malathion. According to district malaria officer Y. Mallikharjuna Rao, on an average they used to receive a minimum of 20 cases of fever for 1,000 persons in the Agency villages. But with the regular health measures, the number of cases dwindled further. Meanwhile, a seven-year- old boy A. Sairam from the city suspected to be suffering from dengue was referred to a hospital at Visakhapatnam by the health officials. | |
New water plan for upland areas | |
Kakinada, Oct 10: The non-availability of water and changing agricultural needs prompted a search for alternative resources in upland areas in East Godavari district. In this backdrop, the State government has taken up a special programme in 10 upland mandals of East Godavari to ensure effective usage of available water resources. The District Water Management Agency (DWMA) has taken up this programme by promoting micro irrigation and watersheds. Under this programme, integrated wasteland development, enterprise promotion in watershed programme, productivity enhancement in watershed programme were taken up in the district. For effective management check-dams, staggered trenches, percolation tanks and farm ponds were taken by DWMA. Under this programme water from ridge to valley would be managed at different places en route. The water thus saved would be let in to tanks in the final stages for agriculture purpose.The DWMA which took up the programme in 2002 considers 500 hectares as one unit and in total 50 such units were taken up in the upland area of East Godavari. The DWMA adopts ‘less water more productivity’ concept in these areas. The water through these sources would be effectively diverted to the needs of horticulture crops and for pulses which are economically viable. | |
Kuda firm on sale plan | |
Warangal, Oct. 10: Despite the raging controversy over the proposed sale of lands belonging to the Azam Jahi (AJ) Mills, the Kakatiya Urban Development Authority (Kuda) is going ahead with its plan. The Kuda, as part of its proposed sale of lands, is learnt to have got some soil samples tested from the now defunct mills site. Though the authorities stated that the sample testing was for the construction of the textile park, actually it was aimed at establishing the withstanding capacity of the land for huge constructions. The Kuda authorities are tight-lipped about the soil testing and refused to comment. A senior official, on condition of anonymity, said that the Kuda had planned to sell a total of 165 acres land allotted to it by the State government in the first phase. He said that more than Rs 100 crores would be raised at one go by the sale of AJ Mills lands and the city development would get a shot in the arm from the funds. In a new development, the Kuda has also stepped up its lobbying to get the government’s nod for acquiring the lands belonging to the central jail and Mamnoor aerodrome. The urban body is proposing to allot alternative lands for the central jail and the aerodrome.
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Inferior works caused project washout, says Desam team | |
Warangal, Oct. 10: The Telugu Desam (TD)’s technical team headed by Choppadandi MLA Sana Maruti on Tuesday squarely blamed the poor quality of construction works for the Gundlavagu project washout. The three-member technical team, which inspected the Gundlavagu project site, demanded that the Congress government take the total responsibility for the project washout. The TD team also said that it would file a private criminal case against the project contractor for ignoring the quality norms in the construction. “Not even a single quality norm was adhered to in the construction of the project. Any engineer would be shocked at the poor quality of the construction. We are ready for any open debate on the project,” said Mr Maruti. Refuting the claim of the contractor that the unprecedented rainfall was the main reason for the project washout, Mr Maruti questioned if that was the reason why no other tank or project in the area got washed out. He said that the construction samples from the project washout would be sent to the National Institute of Technology and AP Research Laboratories for quality testing. The retired chief engineer-turned-MLA also cautioned against the proposed “repairs” by using the project washout remains. Mr Maruti said that only entire reconstruction with better quality would ensure the strength of the project. He demanded stringent action against the erring contractor and other officials involved in the construction and supervision of the project that resulted in the loss of Rs 11.5 crores of public money. Expert engineers Hanmai Shinde and Ramana Naik and the district TD unit leaders took part.
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JC visits Durga temple | |
Suspends sanitary inspector Vijayawada, Oct.10: Minister for panchayat raj and endowments J.C. Diwakar Reddy on Tuesday paid a surprise visit to Kanaka Durga temple. The minister went around the temple, taking note of conditions and grilled the officials on the temple’s state of affairs. The minister, who found a heap of garbage at the temple entrance, immediately suspended sanitary inspector T. Venkateswara Rao for his negligence in discharging the duties. Mr Diwakar Reddy reiterated that no move was being made to confine Tirumala seven hills to two hills and said he was misquoted by the media. “I said according to the British records, the diameter exists up to only two hills. The seven hills belong Lord Venkateshwara and it is an undeniable fact,” he told the reporters. Mr Diwakar Reddy said that efforts were being made to save temple lands in and around Krishna district that were encroached. “The lands that are left vacant would be soon identified by Urban Development Authority (UDA) for development and will be sold at a later stage. We are not going to forgo even a small bit that belongs to the temple,” he said. Mr Diwakar Reddy also enquired about the long pending gold work to the main temple mandap. “The government has identified a few temples in the State for which Rs 2,500 is being granted for maintenance. Chief Minister Y.S. Rajasekhar Reddy is aware of poor living conditions of archakas and that is why we did not introduce any kind of reservation in Indiramma scheme. The economically poor would be benefited,” the minister said. The Minister also took part in scholarship distribution to poor in another programme. | |
TN dodges handover of temple land | |
Guntur, Oct. 10: The Amaralingeswara temple of Amaravathi is unable to take control of its abundant assets in Tamil Nadu, thanks to the recalcitrant attitude of officials in that State. It is learnt that TN officials have been using one pretext after another to avoid discussions on the issue. Recently, a team led by additional secretary (revenue) Sudha Rani went to Chennai to discuss the issue with top TN officials including the chief secretary. But it too turned out to be a futile exercise. Executive officer of Amaralingeswara temple Veera Reddy, who was a member of the team, said the TN officials said that talks could only be held after the local bodies’ polls. The team apprised the TN officials of the details of the assets and urged them to speed up the process of handing them over. The Sadavarthi Choultry of Amavarathi, which is under the control of the temple, has abundant land assets in Tamil Nadu. Some crucial documents related to the lands were found a few years ago and after making relentless efforts, district endowment officials found out that the choultry owned 471.65 acres of land at Thalambur village near Chennai. Since then, endowment officials have been requesting TN officials to surrender the land, but in vain. Endowments minister J.C. Diwakar Reddy visited Tamil Nadu twice with all the documents but nothing happened. It is learnt that much of the land in the village had been allotted to several groups, including some ex-service men. Nearly 100 acres were given to software development organisations and leading engineering colleges. Thalambur village is situated next to Semmancheri and Navalur villages on Old Mahabalipuram Road. “Cost of land in that area has gone up to Rs 4 to 5 crores per acre,” said Mr Veera Reddy. TN is reluctant to hand over and is initially suggested providing land at a different location. Later, it changed its mind and proposed to pay the price of the land at government rates. At present, its strategy is to postpone the talks citing various reasons. | |
Flat owners to be sensitised | |
Meetings to be organised on child labour issue Visakhapatnam, Oct. 10: With the ban on employment of children as domestic servants taking effect from Tuesday in the entire country, the office of deputy labour commissioner here swung into action and organised a sensitisation programme. “We will take the help of non-governmental organisations and women’s organisations to conduct meetings in apartment complexes to create awareness against employing children below the age of 14 as domestic helps,” he said. As per the ban imposed under the Child Labour (Prohibition and Regulation) Act, 1986, child labour is prohibited in houses, dhabas, restaurants, resorts motels, teashops, spas and other recreational centres. Under the Act, if anyone employs children below 14 years as domestic servants, they could be imprisoned up to one year or made to pay fines ranging from Rs 10,000 to Rs 20,000. Similarly, officers of the Central and State government department violating the act would be dismissed from service or imprisoned for a year and penalised. Talking to this correspondent, Mr Reddy said the programme was launched in three phases in the district. This includes, vigorous campaign in the electronic and print media, conducting raids on suspected homes and hotels employing children and in the last phase rehabilitate the rescued children and admit them in schools. Mr Reddy said from January to October 2006, a total of 3,759 child labourers were rescued in Srik-akulam, Vizianagaram and Visakhapatnam districts and they were being rehabilitated. But prior to this, the officials began setting their own houses in order to prevent employment of child labour. “I my self had to fight with my father on entry of our maid’s 15-year-old daughter today. I suspected she could be below 14 and asked my father not to allow her for work. But he ran to school and checked her date of birth and called from there to say she crossed 15,” the deputy commissioner said. Mr Reddy said to begin with all the officials in the district were being asked to educate their own family members so that others could take a cue from them.
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Lakhs attend Sirimanotsav | |
Vizianagaram, Oct. 10: Over three lakhs devotees attended the annual Sirimanotsav of Goddess Paidithallamma from north coastal Andhra districts and from neighbouring districts of Orissa here on Tuesday. Serpentine queues were seen at the temple since midnight for darshan of the Goddess and all roads leading to Three Lanterns were jam-packed. Temple chief priest B. Bhairagi Naidu performed special puja at the temple. Later, the Sirimanu chariot made three rounds between the temple and Vizianagar fort where hereditary trustee P. Ashok Gajapathi Raju and other VIPs sat. Since the temple trustees present at the fort belong to Opposition party, minister for marketing Botsa Satyanarayana, zilla parishad chairperson Botsa Jhansi Lakshmi, district collector B. Kishore and others witnessed the event from district co-operative central bank premises. While the municipality took up measures to maintain total sanitation under the direct supervision of commissioner S.S. Varma, the endowments department has deployed staff summoned from other temples. District superintendent of police Vik-ram Singh Mann made elaborate band-obust arrangements and traffic diversions by deploying sufficient number of police personnel. The RTC too has plied special services from various parts of the district and Visakhapatnam. |
Hyderabad News, Oct 10th, 2006
CBI accuses George in Israel Barak case | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Delhi, Oct. 10: Former defence minister George Fernandes was on Tuesday named an accused by the Central Bureau of Investigation in a case related to alleged irregularities in the purchase of the Barak missile systems from Israel in 2000. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UPA gives same firm massive defence deal | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Delhi, Oct. 10: The Barak air-defence missile system that has returned to haunt former defence minister George Fernandes, who had overruled objections by the then DRDO chief (and now President), Dr A.P.J. Abdul Kalam, and the then Indian Navy Chief, Admiral Vishnu Bhagwat, has been legitimised by defence minister Pranab Mukherjee, who very quietly cleared a Barak II deal with Israel earlier this year. Former defence minister George Fernandes, now in trouble with the CBI, overruled objections raised by Dr Kalam and Admiral Bhagwat to push through the purchase of the Barak missile system from Israel. A highly secret file on which both officials had made notings sanctioning only one system for the INS Viraat, and not the eight that were being proposed by the government then, subsequently went missing. Admiral Bhagwat, when contacted in Mumbai by this correspondent, confirmed that the file had disappeared and had still not been found. He said that as the Navy Chief he had come under “tremendous pressure” from Mr Fernandes and the Israelis through their ambassador to New Delhi to clear the Barak deal. He said it was an inferior system to what was available in the market and he had made his objections clear to the minister. Mr Fernandes also overruled the objections raised by Dr Kalam, who had reportedly noted that the Defence Research and Development Organisation (DRDO) was developing indigenous missile systems and that these should be encouraged instead of going in for the Barak. Mr Fernandes had overruled the objections and Admiral Bhagwat was sacked from service. Admiral Sushil Kumar took over at the time. The Barak deal was cleared and eight more systems were brought in, for Rs 150 crores each, to equip not just the Indian Navy’s lone aircraft carrier, the INS Viraat, but also two Type 15 Delhi class destroyers, two Type 16 Godavari class frigates, three Type 16A Brahmaputra class frigates and at least one Rajput (Kashin II) class destroyer. Admiral Bhagwat said the Barak was a “last ditch” air-defence missile system that was effective only within the last five-km range and hence was not useful for the Indian Navy. He said it relied on “alerted” firing, unlike the Russian system at the time that was long-range and could fire during any time of the day or night. Mr Fernandes admitted in the Rajya Sabha in December 2003 that the initial trials for the Barak system had been declared “unsatisfactory” and that fresh trials were being scheduled. He had said that although the target was successfully shot down during trials before the system was fitted to naval warships, it was declared unsatisfactory because of certain technical malfunctions. The controversy surrounding the purchase of the Israeli system under the NDA government has not deterred Mr Pranab Mukherjee, who has gone several steps further to successfully conclude the first-ever joint weapons development agreement with Israel. Putting the lid on two years of negotiations, India and Israel agreed in January this year to build the Israel Aircraft Industries/Rafael Barak air-defence missile system for the Indian Navy. This was not made public at the time. According to the agreement IAI/Rafael will partner India’s defence research and development laboratories at Hyderabad to build the Barak II missiles. The joint programme will reportedly be based on the original Barak missile system purchased by Mr Fernandes and the missiles will, according to Navy Chief Admiral Arun Prakash, be sold to “friendly countries”. The NDA government had committed itself to developing the Barak NG (Next Generation), an ambition realised by the UPA government with Israel. Admiral Bhagwat said he had been moved out by Mr Fernandes to successfully conclude the Scorpene, Barak and Admiral Gorshkov defence transactions. He said that he and Dr Kalam had repeatedly pointed out that the Barak system could not stand up to even the Harpoon missile being used by the Pakistan Navy on its submarines, which did not rely on an alert status and had a long range. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gurukul plot owners face big bill to legalise | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hyderabad, Oct. 10: Residential plot owners in the controversial Gurukul Ghatkesar Trust lands near Madhapur may have to pay a hefty fee of Rs 2,000 to Rs 3,000 per square yard to regularise their lands. The fee was decided by the three-member official committee deputed by the government to examine ways to regularise encroachments and buildings in the 627-acre land, estimated to cost more than Rs 3,000 crores. Hyderabad Urban Development Authority (Huda) secretary P. Venkat Rama Reddy, special officer of Urban Land Ceiling Bhanumurthy and Ranga Reddy joint collector Seshadri are the members of the committee. While the committee is yet to formulate the fee structure for regularisation of other plots or structures, it has told plot owners of the Swamy Ayyappa Cooperative Housing Society that they would have to shell out Rs 2,000 to Rs 3,000 per square yard if they wanted to regularise their lands. Members of the society had purchased 147 acres of land from the trust. Committee sources said the present registration value of the land in and around Madhapur is around Rs 4,000 to Rs 6,000 per square yard. This amount was brought down on “humanitarian grounds.” However, the society members feel that the fee proposed by the committee is too high. Most of them purchased the plot paying Rs 100 to Rs 200 per square yard between 1982 and 1993. While 80 per cent of the members own 300 square yard plots, the remaining members have 450 and 500 square yard plots. Going by the plot sizes, each member will have to pay Rs 6 lakhs to Rs 12 lakhs to the government to get their land regularised. “This is atrocious,” said K. Venkateshwara Rao, member of the society. “We can’t afford to pay so much. We did not encroach upon the land, but purchased it legitimately. We are being penalised for the mistake committed by the Trust.” It was the Gurukul Ghatkesar Trust, which had sold the lands to them, after passing a resolution on March 11, 1981 to dispose of the lands as per the clauses in the Trust deed. The Society purchased the land, after getting legal verification of the resolution and the subsequent clearance given by the ULC special officer in April, 1982. After nearly 16 years, the endowments department took over the land and declared the transactions void. The High Court, while endorsing the government decision, was sympathetical to the Ayyappa society and asked the government to consider the members’ plea. Meanwhile, several bigwigs who encroached upon the Gurukul Trust lands are now said to be secretly lobbying to bring down the regularisation fee. For instance, Annapurna Gardens, developed by film star Akkineni Nagarjuna, is located in 6.30 acres in land falling under the Gurukul Ghatkesar Trust. The film star had entered into a compromise with the endowments department for an amount of Rs 3.88 crores in May 2005 and had paid 25 per cent of the amount. But after the controversy over the lands erupted, the amount was returned to him. Now, the government is learnt to have agreed to regularise the land for the same rate. “This works out to Rs 1,300 per square yard,” pointed out Mr Venkateshwara Rao. Chief Minister Y.S. Rajasekhar Reddy’s brother and Kadapa MP Y.S. Vivekananda Reddy, who constructed a building for a software company in a half-acre plot, is understood to have offered to pay Rs 50 lakh to regularise it. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Patil runs for cover as fire demo backfires | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hyderabad, Oct. 10: Union home minister Shivraj Patil and several senior IPS officers rushed for cover after a mock fire-fighting exercise held on Tuesday at the National Industrial Security Academy turned awry. The Union minister was rushed to his car after thick white clouds of smoke from a chemical powder used to put out the mock fire enveloped the premises. The white “smoke” was so thick that nothing was visible for a while. Even camera lenses of news photographers were covered with a coating of white powder. Mr Patil was witnessing the fire drill after inaugurating the technical laboratory of the fire service training institute on the National Industrial Security Academy premises. During the exercise, fire force personnel first used a water tender, then foam tender and finally a dry chemical powder tender. Mr Patil and IPS officers were given seats after organisers studied the wind pattern. But the wind changed direction while the drill was on and plumes of smoke from the chemical powder engulfed the specially-erected tents. CISF director-general SIS Ahmed, director-general of police Swaranjit Sen and Nisa director Anurag Sharma were among the senior IPS officers present in the tent. They all rushed out after the smoke enveloped them. Many mediapersons who were exposed to the chemical powder complained of headache and dryness in the mouth. The fire drill was given up halfway. More than a dozen cadets participating in the parade swooned in the intense heat. They fell one after the other and had to be carried on stretchers. The cadets had been told to be ready at 6 am for the parade scheduled for 9.30 am. But the programme started at 11 am, thanks to the late arrival of the home minister. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indian web casino kings lose a billion | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Delhi, Oct. 10: Two Indian founders of the world’s largest online casino, PartyGaming, Mr Anurag Dikshit and Mr Vikrant Bhargava, have lost a fortune estimated at over $1 billion in a matter of days after the company’s shares plunged in response to a US government crackdown on Internet gambling. The bill makes it illegal to accept bets on the Internet or for credit card firms to make payments to gambling websites. Anurag Dikshit, a software engineer from IIT Delhi who co-founded and remains the biggest shareholder of Gibraltar-based PartyGaming with a 29 per cent stake, held shares worth $1.24 billion before the bill was passed by Congress. However, his net worth based on his stake in PartyGaming has dropped to about $450 million dollars with a plunge of over 63 per cent in the company’s share price since September 30. He had founded PartyGaming, which controls about 50 per cent of the online poker market, with Mr Vikrant Bhargava, and adult entertainment business entrepreneur Ruth Parasol and her husband Russel DeLeon in 1997.\ Mr Bhargava’s stake has tumbled by over $200 million to about $140 million while the four founders have witnessed a loss of about $2 billion collectively. Mr Dikshit was named as the world’s 207th richest person in 2006 by Forbes magazine with his huge fortune made largely from the listing of PartyGaming in London in June 2005. He was also ranked as the 10th richest global Indian in 2005 by Forbes with a net worth of $3.3 billion. Ms Ruth and Mr Russel DeLeon hold 14.9 per cent each in the company, while Mr Bhargava holds seven per cent. The husband and wife were tied at 197th place on the Forbes list of 400 richest Americans this year with an estimated net worth of $1.8 billion each. PartyGaming’s share price has dropped to below 40 pence from 107 pence on September 29, before the crackdown on online gambling by Congress. The stock has lost nearly three-fourth of its value from the all-time high of 158 pence. Meanwhile, PartyGaming is likely to lose its place on the elite FTSE 100 index of the London Stock Exchange after a sharp fall in its market value to about $3.2 billion from an estimated $9 billion at the time of its IPO. Rival 888 would also be dropped from the FTSE 250 index to make room for PartyGaming. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mother sets baby, herself ablaze | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hyderabad: A woman set herself ablaze in front of Kulsumpura police station and died on Tuesday night. Her three-year-old son suffered serious burns, reports our correspondent. Goshamahal ACP K. Sridhar Rao said, “Sridevi, 24, was arrested in April 2005 for theft. A team had gone to her house at Raidurgam to serve summons. They wanted to know where the police station was, and we brought her brother-in-law Venkateswara Rao here.” However Rao said, “They bought me forcibly. She had come to seek my release.” | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SC panel issues notice to Ponnala | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hyderabad: The Supreme Court empowered committee has issued notices to major irrigation minister Ponnala Lakshmaiah and irrigation secretaries Satish Chandra and Rajiv Ranjan Misra for constructing irrigation projects without forest clearance at three places. The committee asked the minister and secretaries to appear before it on October 17, reports our correspondent. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Blair, Singh feel North Korea heat | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
London, Oct. 10: Amid an international uproar over the North Korean nuclear test, British Prime Minister Tony Blair on Tuesday firmly rejected any parallels between it and India’s case, saying that New Delhi had stood by its international obligations and was working strongly for counter-proliferation. Endorsing Mr Blair’s view, Prime Minister Manmohan Singh saw the North Korean test as highlighting the “danger of clandestine proliferation” and pointed out that India’s own security had suffered due to “clandestine proliferation with linkages emanating from our neighbourhood”, a thinly veiled reference to Pakistan. The two leaders faced a number of questions on the North Korean test at a joint press conference at 10, Downing Street, after they held wide-ranging discussions lasting 90 minutes that encompassed this issue as well as terrorism, Indo-Pak ties, energy, trade and economic relations. Mr Blair minced no words in denouncing the North Korean test, which he said was in “clear breach” of its international obligations. “India has been working strongly on counter- proliferation while North Korea was going in the opposite direction. It is a very, very serious situation. We are in discussions with our key allies,” he said. North Korea, Mr Blair said, was “very much a separate case” than India and any comparisons would be false. “The difference between a country like Britain or a country like India and a country like North Korea is that we are a democracy, we abide by the rule of law and we abide by our international obligations. North Korea is doing none of those things,” he added. Mr Blair said that North Korea was in clear breach of its international obligations and the only way to deal with this serious situation was to revive the six-party talks aimed at de-nuclearisation of the Korean peninsula and to make sure that Pyongyang comes into compliance with its obligations. Agreeing with Mr Blair, Dr Singh said that India was against further erosion of the non-proliferation regime and did not support the emergence of another nuclear State. The North Korean test has put in jeopardy the peace, stability and security of the Korean peninsula, he added. “I endorse what Prime Minister Blair has said — that there is no parallel between India’s policies and what has happened in North Korea. We will remain in touch with UK in this matter,” the Prime Minister said.Besides the North Korean test, Mr Blair and Dr Singh shared a common view on the menace of terrorism and agreed on a new package of cooperation on counter-terrorism measures. The details of such cooperation were not disclosed.
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