Google faces anti-trust probes in India, 4 more regions

Internet major Google is facing probes by fair trade regulators in India, Europe, Argentina, Brazil and Taiwan for alleged anti-competitive practices.

Fair trade watchdogs have the mandate to keep a check on anti-competitive business practices across sectors.

"The Comision Nacional de Defensa de la Competencia in Argentina, the Competition Commission of India, the Taiwan Fair Trade Commission and Brazil's Council for Economic Defense have also opened investigations into certain of our business practices," Google Inc said in a recent regulatory filing.

The Competition Commission of India (CCI) began its probe in August last year. Google accounts for over 90 percent of the Internet search market in the country.

"... As far as I recall, the allegation or the complaint was that their (Google) search engine is such that it is discriminatory and it favours the platforms which Google wants to support. That is when you click on Google under a certain category, you will get the platforms where there is a tendency to put them in a certain order which may not be the fair and non-discriminatory manner. So, what is the software and what is the algorithmic search, (that is) what the investigation team is looking at," CCI Chairman Ashok Chawla had said recently.

Meanwhile, in its filing, Google also said it was pursuing a potential resolution with the European Commission's Director General of Competition, which is probing various anti-trust related complaints against the company.

"We believe we have adequately responded to all of the allegations made against us. We continue to cooperate with the EC and are pursuing a potential resolution that would avoid a finding of infringement and a fine," it said.

Besides, European Commission has opened an investigation into Motorola's licensing practices for standards essential patents and use of standards-essential patents in litigation following complaints by Microsoft and Apple.

"The European Commission has issued a Statement of Objections against Motorola alleging abuse of a dominant position with respect to these standards-essential patents. We have responded to the Statement of Objections and are defending the case," the filing said.

Also, state attorneys general from Texas, Ohio and Mississippi have also issued Civil Investigative Demands relating to the company's business practices.

"We are co-operating with the state attorneys general and are responding to their information requests on an ongoing basis," it added.

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Optimistic on Indian aviation sector in long-run: Boeing

Boeing management said that while the aviation sector in India may continue to face short term pain, the overall sentiments would improve in the coming years with new players like Air Asia and Tata-SIA entering the market. Dinesh Keskar, VP- sales, of Boeing Commercial Airplanes is very bullish on the Indian aviation sector going forward.

Also read: What govt needs to do to boost low-cost carriers in India

Below is the edited transcript of his interview to CNBC-TV18.

Q: What are your thoughts on the Indian aviation market?

A: We have a very good backlog in our system and we can adjust some of it if we need to. However we think Indian market will continue to grow.

There could be a slower growth; there could be a higher growth. But it will grow and we continue to be bullish on Indian market. This is a key product and we will be here.

Q: There are new alliance coming in AirAsia; Tata Singapore Airlines have already applied for NOC. So, overall does it augur well for the overall aviation market? As a big manufacturer how do you look at these developments?

A: We have always said that this is a market that is going to grow. Our forecast today is about 1450 airplanes, USD 175 billion. The forecast doesn't say who will be the airlines flying. The demand for this market is to satisfy its needs.

Clearly, we will see that this forecast will be matched because our previous forecasts have been true. I have no reason to believe this forecast will not be matched. Tata-Singapore and other airlines into the market will only help this forecast grow.

If the prices of the fuel and exchange rate, which is out of control of the airline are reasonable, the growth here is going to be phenomenal.

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Eye 3MT exports in FY14; net debt at Rs 30435cr: JSW Steel

Oct 31, 2013, 11.08 AM IST

Rupee's deprecation has aided realisations and the Indian currency is likely to stabilise in range of 61-62/USD, says Seshagiri Rao.

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Eye 3MT exports in FY14; net debt at Rs 30435cr: JSW Steel

Rupee's deprecation has aided realisations and the Indian currency is likely to stabilise in range of 61-62/USD, says Seshagiri Rao.

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Eye 3MT exports in FY14; net debt at Rs 30435cr: JSW Steel

Rupee's deprecation has aided realisations and the Indian currency is likely to stabilise in range of 61-62/USD, says Seshagiri Rao.

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We are trying to balance net payables exposure to forward export revenue.

Seshagiri Rao

Jt MD

JSW Steel

Leading industry player JSW Steel aims to export 3 mt steel in FY14 versus 1.9 mt, year-on-year (YoY). In an interview to CNBC-TV18, Joint MD & Group CFO Seshagiri Rao said that the export market has improved on the back of better realizations and demand.

Rupee's deprecation has aided realisations and the Indian currency is likely to stabilise in range of 61-62/USD, he added.

Further, he said that the company's net debt currently stands at Rs 30,435 crore and is looking at hedging costs to zero and balance forex exposure.

Also Read: JSW Steel posts Q2 loss at Rs 115.5cr on exceptional item

This copy will be updated shortly....

On October 31, 2013, at 11:12 hrs JSW Steel was quoting at Rs 852.15, up Rs 3.95, or 0.47 percent. The 52-week high of the share was Rs 893.75 and the 52-week low was Rs 451.50.

The company's trailing 12-month (TTM) EPS was at Rs 24.43 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 34.88. The latest book value of the company is Rs 811.51 per share. At current value, the price-to-book value of the company was 1.05.

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IRB Infra commences toll collection on Kolhapur highway

Oct 29, 2013, 09.17 PM IST

IRB Infrastructure Developers commenced toll collection on the project (Integrated Rural Development Programme Kolhapur BOT (Build-operate-transfer)) effective from October 17.

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IRB Infra commences toll collection on Kolhapur highway

IRB Infrastructure Developers commenced toll collection on the project (Integrated Rural Development Programme Kolhapur BOT (Build-operate-transfer)) effective from October 17.

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IRB Infra commences toll collection on Kolhapur highway

IRB Infrastructure Developers commenced toll collection on the project (Integrated Rural Development Programme Kolhapur BOT (Build-operate-transfer)) effective from October 17.

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Construction and engineering firm IRB Infrastructure Developers  on Tuesday said it has commenced toll collection on Kolhapur highway in Maharashtra.

"IRB Kolhapur Integrated Road Development Co Pvt Ltd, wholly-owned SPV (Special Purpose Vehicle) of the company, has commenced toll collection on the project (Integrated Rural Development Programme Kolhapur BOT (Build-operate-transfer)) effective from October 17," IRB Infrastructure Developers Ltd said in a BSE filing.

The company said that "subsequent to withdrawal of suspension on toll notification by the State of Maharashtra and pursuant to the directions of the Honourable Bombay High Court to the State of Maharashtra to provide police protection to each of the toll plaza of the Project," it has commenced the toll collection on the project.

On October 30, 2013, at 11:14 hrs IRB Infrastructure Developers was quoting at Rs 78.00, up Rs 0.90, or 1.17 percent. The 52-week high of the share was Rs 146.95 and the 52-week low was Rs 51.90.

The company's trailing 12-month (TTM) EPS was at Rs 5.31 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 14.69. The latest book value of the company is Rs 47.28 per share. At current value, the price-to-book value of the company was 1.65.

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JSW Steel to raise $600 mn from overseas market

JSW Steel is planning to raise around USD 600 million through external commercial borrowing (ECB) route, part of which will be mopped up in the current quarter, a top company official said today.

"We plan to raise around USD 600 million through ECB route in order to align our rupee and dollar denominated debt at around 50:50 ratio. Part of this total amount is likely to be raised in the current quarter," JSW Steel Joint Managing Director and Group Chief Financial Officer Seshagiri Rao told reporters here.

It will also reduce the interest outgo of the firm through reduction in average interest cost, he added. As per the private steel firm, the average interest cost of the company stands at around 8.25 percent and post-fund raising, it will be reduced by around one percentage point.

By the end of September quarter, JSW Steel has a net debt of Rs 30,435 crore with a debt to equity ratio of 1.44. While 39 per cent of the debt book comprises foreign debt, the rest is in rupee terms.

Rao said the company intends the rupee debt to foreign currency debt at 50:50 ratio going ahead. Meanwhile, JSW Steel said most of its loans are long-term in nature and it doesn't have any repayment liability out of expiry of any short-term loan.

Referring to bidding for Stemcor assets, Rao said the company will submit its bid by November 18. JSW Steel, along with Tata Steel, Essar Steel, JSPL, Bhushan Steel and Aditya Birla Group firm Essel Mining, is in the fray to acquire assets of Stemcor, which is looking to hive off its Indian assets.

Talking about raw material pricing, Rao said, while iron ore rates are showing a downward bias, coking coal prices are likely to stabilise at the present level.

On October 30, 2013, at 11:10 hrs JSW Steel was quoting at Rs 858.10, down Rs 2.9, or 0.34 percent. The 52-week high of the share was Rs 893.75 and the 52-week low was Rs 451.50.

The company's trailing 12-month (TTM) EPS was at Rs 54.25 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 15.82. The latest book value of the company is Rs 811.51 per share. At current value, the price-to-book value of the company was 1.06.

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Tata Steel says could cut around 500 UK jobs

Tata Steel , Europe's second-largest steel producer, said on Tuesday it could cut around 500 jobs under plans to restructure the part of its British business that supplies the construction and engineering industries.

Also Read: Tata Steel to build 15mn pound furnace at UK plant

Changes to its long products business - which makes tubes, rails and rods, used in many industrial sectors - will affect management and administrative jobs at sites in northern England, primarily Scunthorpe, where 340 positions could be lost, Tata said.

It blamed a prolonged downturn in demand, particularly for construction steel in Britain, a market which is at about half of 2007 levels.

"European steel demand this year is expected to be only two-thirds of pre-crisis levels after falls in the past two years," Karl Koehler, CEO of Tata Steel's European operations, said.

"On top of the challenging economic conditions, rules covering energy and the environment in Europe and the UK threaten to impose huge additional costs on the steel industry."

The USD 500-billion-a-year steel industry, a gauge of the health of the global economy, has suffered from a drop in demand from austerity-hit Europe and worries about the outlook for the Chinese economy.

Tata has battled tough conditions in Europe almost since taking over steelmaker Corus in 2007, just before the global financial crisis, and Tuesday's cuts follow a major restructuring of its long products unit in 2011, with the loss at the time of about 1,500 jobs in Britain.

Tata said then that it was mothballing parts of its Scunthorpe plant to refocus on high-value markets.

On October 30, 2013, at 11:14 hrs Tata Steel was quoting at Rs 328.20, up Rs 2.55, or 0.78 percent. The 52-week high of the share was Rs 448.10 and the 52-week low was Rs 195.40.

The company's trailing 12-month (TTM) EPS was at Rs 52.13 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 6.3. The latest book value of the company is Rs 568.46 per share. At current value, the price-to-book value of the company was 0.58.

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SpiceJet hopes for a revival in profitability

Oct 28, 2013, 10.35 PM IST

SpiceJet recently launched operations in its 10th international route with the inaugural flight between Bengaluru and Bangkok. CNBC-TV18 spoke to its senior VP V Raja on the strategy undertaken by the airline to return on the path of profitability

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SpiceJet hopes for a revival in profitability

SpiceJet recently launched operations in its 10th international route with the inaugural flight between Bengaluru and Bangkok. CNBC-TV18 spoke to its senior VP V Raja on the strategy undertaken by the airline to return on the path of profitability

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SpiceJet hopes for a revival in profitability

SpiceJet recently launched operations in its 10th international route with the inaugural flight between Bengaluru and Bangkok. CNBC-TV18 spoke to its senior VP V Raja on the strategy undertaken by the airline to return on the path of profitability

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Low cost carrier SpiceJet recently launched operations in its 10th international route with the inaugural flight between Bengaluru and Bangkok. CNBC-TV18 spoke to SpiceJet senior vice president V Raja on the strategy undertaken by the airline to return on the path of profitability.

Also Read: SpiceJet plans gradual global expansion

V Raja, senior VP- Commercial, SpiceJet says "We have rationalised some of the routes that we have operated. We have increased our forays into international markets where costs are probably lower in terms of the ATF (aviation turbine fuel). We are increasing our revenues from the ancillary revenue source and are trying to reduce cost wherever possible. So, we are taking some of these steps to ensure that we return back to profitability as soon as possible."

On October 29, 2013, at 11:14 hrs SpiceJet was quoting at Rs 20.00, down Rs 0.3, or 1.48 percent. The 52-week high of the share was Rs 50.90 and the 52-week low was Rs 18.05.

The latest book value of the company is Rs -3.88 per share. At current value, the price-to-book value of the company was -5.15.

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Apollo Hospitals Group partners with KKR to raise Rs 550 cr

Healthcare major Apollo Hospitals said it has entered into a partnership with American private equity fund Kohlberg Kravis Roberts (KKR) to raise Rs 550 crore to repay promoters' debt and build more hospitals.

"The partnership involves a Rs 550 crore long-term investment by KKR, together with its affiliates and select investors, in PCR, the holding company for the Apollo Hospitals Group," the healthcare group said in a statement.

The PE fund will subscribe to the convertible debentures issued by Prathap Reddy's holding company PCR Investments with an option to convert these debentures into equity shares of listed Apollo Hospitals at the end of five years, Apollo Hospitals said.

The promoters also will have the right to buy back these instruments at the end of two years, it added.

At the end of September quarter, PCR Investments held 18.42 percent stake in Apollo Healthcare.

"The investment is in the form of 5 year callable security that consolidates existing debt at PCR and initiates a partnership in the healthcare sector across the two firms," Apollo Hospitals said.

Commenting on the development, Apollo Hospitals Group Chairman Pratap C Reddy said: "This transaction is the culmination of very involved deliberations with the clear intent of working together to create long term value for the group and reflects our philosophy of partnering with players who have a long term view and deep understanding of the healthcare space."

Kohlberg Kravis Roberts (KKR) also said it is looking forward to partnering with the domestic healthcare major.

"KKR has a history of successful investments in the healthcare sector globally, including in market-leading businesses like Hospital Corporation of America and Alliance Boots, and we are very excited with the opportunity to partner with Dr Reddy and family who have created one of India's finest healthcare businesses," KKR India CEO Sanjay Nayar said on the development.

This partnership that has been initiated through the company's alternative credit business in India, and will look to pave the way for a much broader engagement between the firms as partners, he added.

Shares of Apollo Healthcare closed at Rs 878.95 apiece, down 1.35 percent on the BSE

On October 29, 2013, at 11:14 hrs Apollo Hospitals Enterprises was quoting at Rs 893.25, up Rs 14.30, or 1.63 percent. The 52-week high of the share was Rs 1096.15 and the 52-week low was Rs 759.00.

The company's trailing 12-month (TTM) EPS was at Rs 22.88 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 39.04. The latest book value of the company is Rs 196.05 per share. At current value, the price-to-book value of the company was 4.56.

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Moily okays taking away 5 gas discoveries from RIL: Report

Oil Minister M Veerappa Moily has approved taking away five gas discoveries from Reliance Industries in the KG-D6 block over the company's failure to meet timelines but has allowed it to retain three other finds.

The five discoveries - D4, D7, D8, D16 and D23 - hold 0.805 trillion cubic feet of reserves, or about one-fourth of the restated reserves in the currently producing Dhirubhai-1 and 3 (D1&D3) fields in KG-D6 block, and are worth USD 10 billion.

Moily in the October 9 order, however, agreed with RIL's contention that the company would retain D29, D30 and D31 gas finds to conduct tests for their confirmation, sources said.

Also Read: RIL-BP to invest $ 8-10 bn to produce more gas

RIL, as per the contractual requirement of retaining only the area where discoveries have been made, had offered to give up or relinquish 5,367 square kilometres out of the total 7,645 sq km area in the eastern offshore KG-D6 block.

However, the Directorate General of Hydrocarbons (DGH) wanted another 1,130 sq km of area, which contained these 8 finds, to also be taken away from RIL on the grounds that the timeline to develop the fields had expired.

RIL and its partner BP Plc officials on September 18 made a detailed presentation to the Minister, Oil Secretary Vivek Rae and DGH Director General R N Choubey, contending that it had not deviated from the Production Sharing Contract (PSC) and had the right to retain the 1,130 sq km area.

Sources said Moily after examining the issue wrote on the file that, "the contractor should be asked to relinquish corresponding areas pertaining to 5 discoveries (814 sq km) with immediate effect" as RIL had not submitted the field development plan for these within the stipulated timeframe.

He wanted this area to be to be offered for bidding on a priority basis. For the balance three finds covering an area of 316 sq km, he agreed with RIL-BP that the DGH had not been insisting on drill stem test (DST) for confirmation of a discovery in the past and had decided to rake up the issue of in absence of DST in case of D29, D30 and D31 finds after 8 months of commerciality documents being submitted and around 40 months from the discovery.

"There has been practice in the past not to insist for the DST for declaration of the commerciality (a prerequisite before investment plans are considered) by the DGH and a circular to that effect is still in existence," Moily wrote. He noted that RIL had submitted declaration of commerciality (DoC) for three finds within time and there was delay on part of the DGH in reviewing them.

"Therefore, a fair and balanced approach could be to allow the contractor to conduct DST now and review the DoC on the basis of outcome of these tests," Moily wrote.

Depending on the outcome, the matter may be taken up before the Cabinet Committee on Economic Affairs (CCEA) for its information, he added.

RIL has 18 oil and gas finds and one oil discovery in the eastern offshore KG-D6. Of these, D26 or MA oil discovery started pumping oil in September 2008 while D1&D3 gas fields were put on production in April 2009.

The government approved three separate field development plans for six discoveries (D2, D6, D19, D22, D42 and D34). So, the total area of 1,446.12 sq km (corresponding to discoveries D1, D3, D26, D2, D6, D19, D22, D42, D34, D29, D30 and D31) is at present being considered as discovery and development area out of the contract area of 7,645 sq km, sources said.

The remaining 6,198.88 sq km is to be relinquished by RIL, they added.

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Airtel Digital TV launches set-top box for Rs 2,000

Oct 27, 2013, 02.10 PM IST

Airtel Digital TV, the direct to home (DTH) arm of Bharti Airtel, today launched a set-top-box for Rs 2,000 wherein customers can record by plugging-in an external storage device such as pen drive.

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Airtel Digital TV launches set-top box for Rs 2,000

Airtel Digital TV, the direct to home (DTH) arm of Bharti Airtel, today launched a set-top-box for Rs 2,000 wherein customers can record by plugging-in an external storage device such as pen drive.

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Airtel Digital TV launches set-top box for Rs 2,000

Airtel Digital TV, the direct to home (DTH) arm of Bharti Airtel, today launched a set-top-box for Rs 2,000 wherein customers can record by plugging-in an external storage device such as pen drive.

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Airtel Digital TV, the direct to home (DTH) arm of Bharti Airtel , today launched a set-top-box for Rs 2,000 wherein customers can record by plugging-in an external storage device such as pen drive.

"The new standard definition (SD) set-to-box will allow customers to enjoy recording by just plugging-in an external storage device," the company said in a statement.

The company said customers can just plug-in their pen drive or other external storage device into the set-top box to start recording and can schedule the recordings even via mobile or Internet.

Also read: Bharti Airtel board okays merger of subsidiary with itself

"Customers can record on an external storage device of up-to 2 terabytes and create an unlimited personal content library by using multiple storage devices for the recordings," it added.

The recorded programmes can be watched with a DVD like control of TV viewing with features such as pause, rewind, slow-motion viewing and fast-forward, the company said.

Airtel Digital TV had 8.5 million customers as on June 2013 and it offers 373 channels, including 17 HD channels and five interactive services.

On October 28, 2013, at 11:13 hrs Bharti Airtel was quoting at Rs 343.60, down Rs 0.05, or 0.01 percent. The 52-week high of the share was Rs 370.40 and the 52-week low was Rs 264.50.

The company's trailing 12-month (TTM) EPS was at Rs 11.47 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 29.96. The latest book value of the company is Rs 135.70 per share. At current value, the price-to-book value of the company was 2.53.

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Walmart resumes US lobbying on FDI in India

Global retail giant Walmart has resumed its lobbying with the US lawmakers on matters related to FDI in India and it spent USD 1.5 million on about 50 specific issues, including those related to Indian market during the last quarter.

"Discussions regarding Foreign Direct Investment in India" is one of the ten-odd specific issues in the area of trade that were carried out by registered lobbyists on behalf of Walmart during third quarter of 2013, according to its latest Lobbying Disclosure Form submitted to the US Senate.

Also read: Studying feasibility of FDI norms in multi-brand: Wal-Mart

Overall, Walmart lobbyists discussed nearly 50 'specific issues' with the US lawmakers during the quarter, resulting into total expenses of USD 1.5 million relating to lobbying activities for the reporting period, shows the 19-page disclosure report.

Walmart's lobbying activities covered the Senate, House of Representatives, Department of State, US Trade Representatives, US Agency for International Development and the Department of Labour, among others.

As per Congressional records, Walmart had halted its lobbying with the US lawmakers and federal agencies on India- specific issues in the preceding quarter, after seeking their support for about five years to facilitate its entry into the high-growth Indian retail market.

However, such lobbying activities resumed during the last quarter -- a period which also saw hectic parleys in India with regard to Walmart's business activities in the country.

After months of discussions, Walmart earlier this month announced buyout of Bharti group's 50 per cent stake in their wholesale retail business in India.

Walmart has also been requesting the Indian government to further relax norms for FDI in multi-brand retail business, where 51 per cent foreign equity was allowed last year despite opposition by various political parties.

Incidentally, a probe report on Walmart's lobbying for entering India may soon be discussed by the Union Cabinet. The probe is said to have remained inconclusive as Walmart and others did not provide required information. .

The Indian government had ordered the probe on Walmart's lobbying late last year after a huge political outcry over the American retail giant having spent millions of dollars on its lobbying activities in the US for years on various issues, including on access to the Indian market and the relevant FDI norms.

Lobbying is legally permitted in the US, but the companies and their registered lobbyists are required to make detailed disclosures about their activities every quarter.

Walmart, on its part, has been maintaining that it has disclosed all its lobbying activities as per the US rules and it did not violate any Indian regulations in this regard.

There are no clear regulations on lobbying in India, although companies here also indulge in activities promoting their cause with the government and other agencies, either directly or through industry bodies and other groups.

As per the Congressional records, Walmart began lobbying in the US on India-specific issues way back in 2008. Since then, the company has spent a total amount of USD 39.42 million (about Rs 242 crore) on numerous lobbying issues, including those related to India.

Out of this, over USD five million have been spent so far in 2013. Walmart's lobbying issues did not include India in the second quarter of this year, while the first quarter of 2012, as also all four quarters of 2009 also did not have any single lobbying issue related to India.

Walmart and many other overseas supermarket chains have been wanting to set shop for many years in India, which opened up this business for foreign players only last year.

Still, there are many restrictions, such as those on sourcing of products, that are keeping foreign multi-brand retailers away from the country.

Separately, Walmart was also facing a probe by the Enforcement Directorate here for alleged violation of FEMA (Foreign Exchange Management Act) norms, but is said to have been given clean chit on that front.

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SpiceJet plans gradual global expansion

Aiming to expand its international network gradually, no-frills carrier SpiceJet today said it would add two more global destinations, Dammam and Kuala Lumpur, by March next year along with increasing frequencies on certain foreign routes.

"We are going to start operations to Dammam (Saudi Arabia) and Kuala Lumpur (Malaysia) within this financial year. We are currently working on the financial details and also trying to increase frequencies to certain existing destinations," SpiceJet's Senior Vice President (Commercial) V Raja said here today.

Also read: FIR against Mallya, KFA for non-payment of airport fee

Asked whether SpiceJet was in talks with any foreign carrier for investment in its equity, he said these were "only reports", but added that "if there is a good proposal which is economically and commercially good for us, it will be wrong not to look at it".

With this planned expansion, SpiceJet would raise its foreign flights per day from 28 to about 42 within this financial year, Raja and other senior airline officials said.

Raja was talking to reporters after the airline added the Thai capital, Bangkok, as its tenth foreign destination, launching two flights simultaneously from Bangalore and Pune to the Suvarnabhumi International Airport here.

Congratulating the Indian carrier for starting the services, Indian Ambassador to Thailand Anil Wadhwa said the growing number of flights from India would further cement the historic bilateral ties and improve regional connectivity.

There were currently 156 flights per week between the two countries, with leisure and business travel growing at a phenomenal pace.

"Last year over 1.15 million Indians visited Thailand, while 88,000 Thai visitors went to India, mainly to Buddhist pilgrimage sites," the envoy said.

Besides being a popular destination for shooting of films, Thailand have also emerged as a favourite wedding destination with business estimated at around 30-40 million Baht (USD 32 million) a year, growing at a rate of 15-20 per cent rate.

"These is certainly a positive trend for airlines operating from India," Wadhwa said, adding that ten Indian cities are now connected with Bangkok.

Referring to road connectivity, the Indian ambassador said initiatives like the India-Myanmar-Thailand trilateral highway under the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) framework is under construction to connect the two nations.

India has invested USD 258 million on the 1,632 km long highway and is constructing 71 bridges on the entire length.

On October 28, 2013, at 11:14 hrs SpiceJet was quoting at Rs 20.45, down Rs 0.35, or 1.68 percent. The 52-week high of the share was Rs 50.90 and the 52-week low was Rs 18.05.

The latest book value of the company is Rs -3.88 per share. At current value, the price-to-book value of the company was -5.27.

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Q2 earnings hit by recent regulatory actions: Wockhardt

Troubled drug maker Wockhardt reported a weak set of Q2 earnings . It posted a 70 percent drop in its profit after tax at  Rs 138 crore and an 11 percent drop in consolidated revenues at Rs 1197 crore on a year on year basis because of product recalls and import ban on its facilities from the US and UK regulators on non GMP compliance.

As the drug regulators tighten their noose, Wockhardt stock has been volatile and investors are wary of the company's recovery and this was evident during the company's investor call as prominent investor Rakesh Jhunjhunwala quizzed Wockhardt chairman Habil Khorakiwala about the company's remediation plans.

Below is the edited transcript of the interview

Q: You have various regulatory problems in various plants. So you think to resolves all this it will take around 15 months?

A: In terms of our corrective and remediation plan it will take about six months, I feel. Then we will apply for re-inspection and then it depends on the regulatory agency. Probably the entire process will take upwards of a year from now. It could be earlier than that or it could take longer than that. The situation is very uncertain and it is very difficult to predict.

Q: Today Waluj facility is under an import alert, remediation plan is under progress and when it is complete and we are ready, we will ask FDA for a re-inspection. Is it the same for Chikalthana?

A: That's right. For Chikalthana, as far as US is concerned, we have provided our responses, they have not taken any action as of now.

Q: So we are able to export to the US from Chikalthana?

A: Yes we are exporting to the US from Chikalthana. For the UK market, we can export 10 out of the 22 products that are registered there, which has an annualized value of 3 million pounds.

On October 25, 2013, Wockhardt closed at Rs 455.35, down Rs 4.5, or 0.98 percent. The 52-week high of the share was Rs 2166.05 and the 52-week low was Rs 344.15.

The company's trailing 12-month (TTM) EPS was at Rs 51.43 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 8.85. The latest book value of the company is Rs 74.56 per share. At current value, the price-to-book value of the company was 6.11.

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No-confidence motion moved against GCMMF Chairman

A no-confidence motion has been moved against the Chairman of Gujarat Cooperative Milk Marketing Federation (GCMMF), the apex marketing body of various district dairy cooperatives that markets Amul brand for alleged mismanagement.

The resolution to bring no-confidence motion against Vipul Chaudhary was signed by 14 out of 17 directors of various district dairy cooperatives and is expected to be taken up at the board meeting on Saturday.

A director, who had signed the resolution, said "Despite protests from several quarters in the Board not to sell cattle feed to Maharashtra, Mr. Chaudhary went ahead with the decision and gave it for free to the neighbouring state."

"However, when Gujarat was reeling under scarcity and the state government approached the federation for cattle feed, it was provided but not free of cost," the director said.

"Mismanagement in Mehsana's Dudhsagar Dairy Board, where Mr. Chaudhary is the chairman, has also come to the fore," the director said, adding that Mr. Chaudhary had taken several decisions which were against the federation's constitution.

Mr. Chaudhary had taken over as GCMMF chairman in August 2012.

Repeated attempts to contact Mr. Chaudhary failed. There are three district dairy cooperatives which are backing him. Those who are not signatories to the resolution to move no-confidence motion are Amul Dairy of Anand, Mehsana's Dudhsagar Dairy and Valsad Dairy.

Kaira District Cooperative Milk Producers' Union Ltd Chairman Ramsinh Parmar said, "The no-confidence motion against Chaudhary is illegal. Why have they brought the motion? What wrong has he done? Has he caused losses to GCMMF, farmers?"

"Those who have brought the motion are not thinking about the consumers or about marketing," he said.

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Ajit Singh writes to PM seeking export sops for sugar mills

In view of surplus domestic sugar output, Union Minister Ajit Singh today shot off a letter to Prime Minister Manmohan Singh demanding export sops and hike in import duty to improve finances of millers.

The letter to PM comes in the backdrop of sugar mills, particularly from Uttar Pradesh, facing financial problems because of lower sugar rates. UP mills have not been able pay cane arrears to the tune of Rs 2,400 crore. They have also incurred cash loss of Rs 3,000 crore last year. Singh, the chief of Rashtriya Lok Dal, also warned that mills may delay crushing operation of sugarcane and compel farmers to burn cane this year.

"30-40 lakh tonnes of sugar needs to be exported in the next 8-10 months. I understand that the global sugar prices are depressed and sugar exports from India is unviable. "Therfore, similar to 2006-07 and 2007-08 season, the government should announce incentives to target for 30 lakh tonnes of exports," said Singh, whose party has strong presence in the sugarcane belt of western UP, in the letter. The country's sugar output stood at over 25 million tonnes in the 2012-13 season (October-September) against the demand of 22 million tonnes. India started the new sugar marketing year on October 1 with record carry-forward stocks of 8 million tonnes.

With so much surplus sugar in the country, Singh said: "There is obsolutely no reason to import any sugar into India. We need to export sugar and not import cheap sugar from Brazil and Pakistan. Hence, the improt duty on sugar should be increased from 15 percent to 40-60 percent immediately."

Stating that banks are not showing interest to extend working capital loans to mills, Singh said, "Unless efforts are made to reduce the surplus to the manageable levels and mills are financially assisted, the sugar industry will struggle for liquidity."

The ex-factory sugar price in UP have falled to Rs 29 per kg now, as against Rs 36 per kg in the year-ago period. "May I therefore request for your personal intervention in the matter and get the above request examined in the next meeting of the Cabinet," he wrote in the letter.

"Any delay may cause many sugar mills do no operate and may lead farmers to burn their cane, which will create a difficult situation to control," he said in the letter.

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Ultratech plans to raise Board strength to 15

Oct 25, 2013, 09.23 PM IST

Ultratech Cement would take shareholders' view till November 29 and has appointed Nilesh Trivedi, Partner KBNT & Associates as the scrutiniser for conducting the postal ballot voting process.

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Ultratech plans to raise Board strength to 15

Ultratech Cement would take shareholders' view till November 29 and has appointed Nilesh Trivedi, Partner KBNT & Associates as the scrutiniser for conducting the postal ballot voting process.

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Ultratech plans to raise Board strength to 15

Ultratech Cement would take shareholders' view till November 29 and has appointed Nilesh Trivedi, Partner KBNT & Associates as the scrutiniser for conducting the postal ballot voting process.

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Aditya Birla Group firm Ultratech Cement plans to increase the strength of its Board to 15 from 12 now, keeping in mind company's current size of business and its future growth plans.

Also Read: UltraTech Q2 net falls 52% on subdued demand, lower prices

"The maximum permissible limit of the Directors under Articles of Association of the company is 12. "Considering the increase in size of operations of the company and its future growth plans, it is proposed to increase the maximum number of directors from the existing 12 to 15," the company said in a notice to shareholders.

Ultratech Cement thus proposes to alter the existing Article  5 of the Articles of Association of the company. Kumar Mangalam Birla is the Chairman of the Board. The company is the largest cement maker in the country with installed manufacturing capacity of 59 million tonnes. Ultratech Cement, which recently added 4.8 mtpa by acquiring Jaypee Group firm's cement unit in Gujarat, hopes to take the capacity to 70 mtpa by 2015.

Ultratech Cement would take shareholders' view till November 29 and has appointed Nilesh Trivedi, Partner KBNT & Associates as the scrutiniser for conducting the postal ballot voting process.

On October 25, 2013, UltraTech Cement closed at Rs 1944.05, up Rs 0.50, or 0.03 percent. The 52-week high of the share was Rs 2066.25 and the 52-week low was Rs 1404.95.

The company's trailing 12-month (TTM) EPS was at Rs 82.55 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 23.55. The latest book value of the company is Rs 555.58 per share. At current value, the price-to-book value of the company was 3.50.

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Q2 earnings hit by recent regulatory actions: Wockhardt

Troubled drug maker Wockhardt reported a weak set of Q2 earnings . It posted a 70 percent drop in its profit after tax at  Rs 138 crore and an 11 percent drop in consolidated revenues at Rs 1197 crore on a year on year basis because of product recalls and import ban on its facilities from the US and UK regulators on non GMP compliance.

As the drug regulators tighten their noose, Wockhardt stock has been volatile and investors are wary of the company's recovery and this was evident during the company's investor call as prominent investor Rakesh Jhunjhunwala quizzed Wockhardt chairman Habil Khorakiwala about the company's remediation plans.

Below is the edited transcript of the interview

Q: You have various regulatory problems in various plants. So you think to resolves all this it will take around 15 months?

A: In terms of our corrective and remediation plan it will take about six months, I feel. Then we will apply for re-inspection and then it depends on the regulatory agency. Probably the entire process will take upwards of a year from now. It could be earlier than that or it could take longer than that. The situation is very uncertain and it is very difficult to predict.

Q: Today Waluj facility is under an import alert, remediation plan is under progress and when it is complete and we are ready, we will ask FDA for a re-inspection. Is it the same for Chikalthana?

A: That's right. For Chikalthana, as far as US is concerned, we have provided our responses, they have not taken any action as of now.

Q: So we are able to export to the US from Chikalthana?

A: Yes we are exporting to the US from Chikalthana. For the UK market, we can export 10 out of the 22 products that are registered there, which has an annualized value of 3 million pounds.

On October 25, 2013, Wockhardt closed at Rs 455.35, down Rs 4.5, or 0.98 percent. The 52-week high of the share was Rs 2166.05 and the 52-week low was Rs 344.15.

The company's trailing 12-month (TTM) EPS was at Rs 51.43 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 8.85. The latest book value of the company is Rs 74.56 per share. At current value, the price-to-book value of the company was 6.11.

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No-confidence motion moved against GCMMF Chairman

A no-confidence motion has been moved against the Chairman of Gujarat Cooperative Milk Marketing Federation (GCMMF), the apex marketing body of various district dairy cooperatives that markets Amul brand for alleged mismanagement.

The resolution to bring no-confidence motion against Vipul Chaudhary was signed by 14 out of 17 directors of various district dairy cooperatives and is expected to be taken up at the board meeting on Saturday.

A director, who had signed the resolution, said "Despite protests from several quarters in the Board not to sell cattle feed to Maharashtra, Mr. Chaudhary went ahead with the decision and gave it for free to the neighbouring state."

"However, when Gujarat was reeling under scarcity and the state government approached the federation for cattle feed, it was provided but not free of cost," the director said.

"Mismanagement in Mehsana's Dudhsagar Dairy Board, where Mr. Chaudhary is the chairman, has also come to the fore," the director said, adding that Mr. Chaudhary had taken several decisions which were against the federation's constitution.

Mr. Chaudhary had taken over as GCMMF chairman in August 2012.

Repeated attempts to contact Mr. Chaudhary failed. There are three district dairy cooperatives which are backing him. Those who are not signatories to the resolution to move no-confidence motion are Amul Dairy of Anand, Mehsana's Dudhsagar Dairy and Valsad Dairy.

Kaira District Cooperative Milk Producers' Union Ltd Chairman Ramsinh Parmar said, "The no-confidence motion against Chaudhary is illegal. Why have they brought the motion? What wrong has he done? Has he caused losses to GCMMF, farmers?"

"Those who have brought the motion are not thinking about the consumers or about marketing," he said.

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Govt wasting time on HZL, Balco stake sale: Anil Agarwal

Oct 24, 2013, 09.18 PM IST

Finance ministry is very keen that the stake sale does indeed take place, mines ministry is still insisting that the Metal Corporation Act would have to be amended. Even in a cabinet note that it had prepared the mines ministry is sticking to its stance over there.

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Govt wasting time on HZL, Balco stake sale: Anil Agarwal

Finance ministry is very keen that the stake sale does indeed take place, mines ministry is still insisting that the Metal Corporation Act would have to be amended. Even in a cabinet note that it had prepared the mines ministry is sticking to its stance over there.

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Govt wasting time on HZL, Balco stake sale: Anil Agarwal

Finance ministry is very keen that the stake sale does indeed take place, mines ministry is still insisting that the Metal Corporation Act would have to be amended. Even in a cabinet note that it had prepared the mines ministry is sticking to its stance over there.

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The government is unnecessarily wasting time on HZL and Balco. That's the word coming in from Vedanta chairman Anil Agarwal. Vedanta will take the proposal to shell out nearly USD 4 billion to buy the residual stake to its shareholders in 6 days from now. Agarwal insists this is not a revised offer to the government, but only an enabling resolution.

Also Read: Vedanta hopeful of govt taking Rs 21,600 cr divestment bait

Anil Agarwal, Chairman, Vedanta, says: "The intention that we can merge together, we can have a fungibility, so this year this was the intention. The government also keeps telling us but it also doesn't want us to buy the share. This share government wants to disinvest. It can offload in the market, it can give it to us, but they have to take a view. It is probably unnecessarily spending so much of time. We are always ready."

CNBC-TV18's Nayantara Rai reports that this has been in the works for a very long time and the part of the problem is that the government is still deciding whether it can look at an out of court settlement, etc.

Finance Ministry is very keen for this stake sale to take place. The Mines Ministry is still insisting that the Metal Corporation Act would have to be amended. Even in a cabinet note that it had prepared, the mines ministry has been sticking to its stance over there.

Meanwhile, Vedanta chairman added that business as usual, but he would like to have full control and ownership of both of these companies. He also insisted that this is not a revised offer to the government, but merely an enabling resolution that is going to be taken from shareholders on October 31 in London.

Further, he added that as of now, there are no discussions about Vedanta buying Cairn Energy's minority stake in Cairn India , but he is open to it and this could be looked at a later stage.

On October 25, 2013, at 11:10 hrs Hindustan Zinc was quoting at Rs 133.85, down Rs 0.25, or 0.19 percent. The 52-week high of the share was Rs 146.80 and the 52-week low was Rs 94.00.

The company's trailing 12-month (TTM) EPS was at Rs 16.75 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 7.99. The latest book value of the company is Rs 76.39 per share. At current value, the price-to-book value of the company was 1.75.

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IMG reviews performance of 16 coal blocks

The Inter-Ministerial panel on coal blocks today reviewed the performance of 16 mines alloted to firms including JSPL , NTPC , SAIL , Abhijeet Infrastructure and Tata Power . However, no decision was taken on the coal blocks, said a source, adding that some of the companies present gave reasons like lack of environmental clearances and regulatory hurdles for delays in development of the mines.

"The allocatees of 16 coal blocks made presentations before the Inter-Ministerial Group (IMG). However no decision was taken today," the source said. IMG will meet again tomorrow, for the third day, and review the performance of another 14 mines alloted to firms including JSPL, Monnet Ispat & Energy, Birla Corp and Rathi Udyog, he said. The panel reviewed the progress of 17 mines yesterday and recommended that show-cause notices be issued to some of the companies for delays in developing them.

Also Read: CBI files fresh status report in SC on Coalgate

The Coal Ministry had earlier asked the companies to make presentations before the IMG on the achievement of milestones prescribed for developing mines that were allotted to them and their reasons for delays. "It has been decided to provide an opportunity to you (coal block allocatees) to present your explanation/version before the IMG on the current status of development of allocated coal block," the ministry had said.

"You are requested to make a presentation with respect to the achievement of different milestones prescribed for the development of coal block and reasons for delay, if any, with respect to achievement of the same," it had said. The coal block allottees were earlier issued show-cause notices for delaying the production from their mines. The government had formed the IMG last year to review the progress of coal blocks allocated to firms for captive use and recommend action, including de-allocation.

The panel under the chairmanship of Additional Secretary in the Coal Ministry has members from other ministries including steel and power.

On October 25, 2013, at 11:14 hrs Jindal Steel & Power was quoting at Rs 236.45, down Rs 4.45, or 1.85 percent. The 52-week high of the share was Rs 473.90 and the 52-week low was Rs 181.55.

The company's trailing 12-month (TTM) EPS was at Rs 19.46 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 12.15. The latest book value of the company is Rs 132.09 per share. At current value, the price-to-book value of the company was 1.79.

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What govt needs to do to boost low-cost carriers in India

India's domestic aviation market is predominantly a low cost carrier (LCC) market, with more than 70 percent market share controlled by the LCCs. Even Full-service carriers (FSC) like Jet Airways and Air India are at times forced to offer economy class seats at a fare comparable with LCCs despite providing additional facilities like meals, lounge access and frequent flyer benefits etc. A significant number of aircrafts of Jet Airways have a full economy class configuration. India is, now, by all means an LCC territory.

The market leader, IndiGo, followed a consistent strategy of on-time performance, new fleet, competitive fares and hassle free service. The exit of Kingfisher in December 2012 helped and Indigo today has a dominant market share of over 30 percent.  It recorded an impressive profit of Rs 787 crore in 2012-13 compared to Rs 128 crore in 2011-12.

With FDI reforms, enhancement of of bilateral quotas and the anticipated abolition of the infamous 5/20 rule, we are seeing more foreign airlines entering the Indian aviation space.  The increasing competition is likely to enhance global connectivity, improve services, bring down fares, attract more flyers in India and boost foreign tourist arrivals. 

The next phase of growth in Indian aviation is likely to come from Tier 3-4 airports. The only way to stimulate demand there is by offering good frequency and lower-than-typical LCC fares. The role of the government therefore becomes critical.

The boom years

The LCC boom in India during 2003-2007 was marked by price tags as low as Re 1, internet auctions, bulk purchases and attractive last day fares. Low barriers of entry, an increase in permitted foreign equity (non-airline), favorable demographic profile and rising income levels were the key enablers.

LCCs provided cheaper connectivity to many tourist locations like Tirupati, Dehradun, Dharamshala etc., which were hitherto accessible only by road or rail.  Air travel converted even a two-day weekend into a tourism opportunity something not possible through road or rail travel. 

In a way, LCCs addressed the rising aspirations of the Indian middle class coupled with their high price sensitivity.  LCCs made air travel accessible to many and also boosted air cargo as well.  Domestic passenger traffic increased at a CAGR of 17.5 percent between 2004-2010. No wonder airports were the busiest places on Monday mornings and Friday evenings!

The challenges today

Not all is well in the LCC world. LCCs are struggling to stay profitable, hurt by infrastructure constraints, rising operating costs, suicidal price wars, excessive taxes on aviation Turbine Fuel (ATF) and Maintenance-Repairs-Overhaul (MRO); and the absence of a favorable regulatory framework.  Owing to these and the ongoing economic slowdown in India, air traffic in India witnessed a decline of 2% in FY12 13, for just the second time in ten years.  The free fall of the rupee hasn't helped either, since nearly 70% of airline expenses (fuel, leases, MRO, expat salaries, overseas offices, foreign debt etc) are all linked to the dollar. 

(Also Read: Jet Airways sees Etihad deal closure despite record Q2 loss )

Crippling operating costs

India is perhaps the costliest place to run an airline.  Indian ATF is one of the costliest in the world nearly 60% higher than in Middle East and SE Asia.  As regards MRO, it's a travesty that Indian carriers find it cheaper to fly empty aircrafts abroad than to get the repairs done in India.  Airport charges have gone up since they have all undergone massive capital expenditure and need to service their debt.  Third party ground handling invites over 30% royalty charges.  The impact of the rupee depreciation has been highlighted earlier.  Thus every element of the cost structure has increased in the recent past.

The slow growth in traffic has created a vicious cycle.  The high cost structure is now distributed over a near-stagnant passenger base.

All eyes on the Government

The role of the government in a highly regulated sector like aviation is paramount.  If we could just get two out of the top five aviation states (Delhi, Maharashtra, Tamil Nadu, Karnataka and West Bengal) to free aviation from the huge taxes on ATF and MRO, we are home. 

Simple analogy it's more beneficial for the government to tax grape-wine than the grape seed.  In India we are happy taxing the seed (the ATF) and the fertilizer (MRO).  The wine produced is therefore a fraction of the pent-up demand. 

As the mobile telecom revolution in India amply proved, the moment the government creates pro-customer policies, the outcomes are mind-boggling.  India raced from 18 million cellphone subscribers in September 2003 to over 900 million by September 2013, a 50-fold increase in just a decade!  Indian aviation could be next.

Some of the immediate reforms that the Government may undertake are as follows:  

1. Notify ATF as a declared good with uniform 4% sales tax all over India. 
2. Declare a 10 year tax-free status for MRO.
3. Abolish the discriminatory 5/20 rule
4. Provide 40% funding support for Tier 3-4 airports to expand regional connectivity
5. Carry out a thorough review of policies and procedures regarding airport security, aviation licenses, air-cargo, general aviation and aviation education

Above all, the biggest change needs to be in the political mindset aviation is treated more like a milch-cow than a 'driver of economic growth and employment'. 

Sign of good times…

The Ministry of Civil Aviation (MoCA) has brought in many reforms like allowing FDI for airlines, opening of bilateral rights to private Indian carriers, direct import of ATF, customs duty relief on MRO etc.  MoCA is also planning incentives like zero airport charges, seat subsidy etc to boost regional connectivity.  The ministries of tourism, defense and civil aviation are cooperating closely. The decision to privatize operations and management of six AAI airports is another welcome step.  This will enhance quality of service and competition among Indian airports.

The long term outlook of the Indian civil aviation industry remains positive, despite near-term challenges.  The challenges are man-made and hence addressable through long-term vision and political will. 

LCCs and low cost airports will be the key drivers of growth in the near future.  We expect air traffic FY 14 to end with a annual growth of 5-7%.  Growth in FY 15 is expected to touch double digits under the assumption that the new government will bring in structural reforms. 

The choice is ours!

(Amber Dubey is Partner and Head-Aerospace and Defense, at global consultancy KPMG.  He was supported by Namrata Saigal, Consultant, KPMG.  Views are personal)

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GM recalled 1.6 lakh vehicles due to emission issue: Govt

The government today put the number of vehicles recalled by General Motors India due to emission norms violation at 1.6 lakh, 46,000 more than the firm had announced and said the company has 'admitted' to 'lacunae' on its part in maintaining standards.

Also Read: Indian subsidiary of GM guilty of fraud: Probe

It said the auto major has 'admitted' to certain 'lacunae' on its part in maintaining certain standards in the report submitted to the Road Ministry by a three-member panel. Comments from the company on the number of vehicles recalled could not be immediately obtained as calls made to the spokesperson remained unanswered.

"The report has been submitted to us, we have to go through it, there was a lacuna in maintaining certain standards which the company (General Motors) itself admitted and has taken out 1.60 lakh vehicles out of circulation," Road Minister Oscar Fernandes told reporters here. A three-member panel probing alleged violations by General Motors India related to recall of Tavera multi-purpose vehicle has submitted its report to the Ministry of Road Transport and Highways.

When asked whether any penalty will be considered on the company in this regard, Fernandes said a decision can be taken only after the report is studied in totality. He added that the ministry will quickly go through the 500-page report and consult all the stakeholders before taking any further decision on the matter.

The stakeholders in this case are various departments and concerned ministries. "It is not just reading the report. We have to look into the implications of the report, have to consult people within the ministry, industry and other concerned people," Fernandes said.

The company, in July, had announced the recall of 1.14 lakh units of Chevrolet Tavera multi-purpose vehicle, manufactured between 2005 and 2013, to address emission and specification issues. The panel, which was formed in July by the Road Ministry, was investigating alleged non-compliance of emission norms and other violations, if any, by the General Motors India.

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Hope to get clearance by Dec for Malanjkhand expansion: HCL

State-owned Hindustan Copper today said it is hopeful of securing National Wildlife Board's permission by December for expanding its flagship Malanjkhand mine in Madhya Pradesh, which is the single largest copper deposit of India with nearly 70 per cent of the country's reserves.

Expansion of the Malanjkhand mine to 5.2 million tonnes per annum capacity (MTPA) has already been held up by over one and half years due to delays in securing various regulatory approvals. Hindustan Copper (HCL) had secured environment clearance last month for expanding the capacity of the mine subject to a final clearance from National Wildlife Board as the mine is located only 20 km from the Kanha National Park.

Also Read:  Output rises at Indian zinc, oil and gas units, says Vedanta

"State Wildlife Board has given its recommendation, now it has been sent to National Wildlife Board, where we have submitted the required documents. We hope to get the forest clearance by December if everything goes as per plan. There is no delay on our side," company's Chairman and Managing Director Kailash Dhar Diwan said.

He was speaking to reporters after presenting a dividend cheque of Rs 83.27 crore to Mines Minister Dinsha Patel. In 2012-13, the company had reported its best ever profit after tax of Rs 355.64 crore.

The Malanjkhand mine currently has a production capacity of 2.25 million tonnes and contributes about 80 per cent of Hindustan Copper's total production. It has extractable copper reserves of 141 million tonnes, amounting to 70 percent of India's known copper reserves. The company has set a target of completing the expansion of mine by 2017 despite the delays and will be spending about Rs 1,857 crore for the purpose. Of that, the company has already awarded contracts worth Rs 1,176 crore, Diwan said.

Speaking on the occasion, Mines Minister Patel said his ministry will lend all support in securing clearance from National Wildlife Board, so that expansion of the Malanjkhand mine can get completed on time.

"Their (HCL's) performance has improved last year compared to previous two years. There is nothing called 100 percent satisfaction but they are doing good work and I hope that their performance will improve further... Our department will try its level best to secure clearances for the (Malanjkhand) mine," he said.

Hindustan Copper is working on three-pronged strategy to expand its production capacity to 12.41 MTPA from existing 3.66 MTPA and has plans to invest about Rs 3,434 crore by 2017-18.

Accordingly, the company is working to increase the capacities of its existing mines like Malanjkhand, Khetri, Kolihan and Surda. Besides, it also plans to reopen closed Kendadih and Rakha mines and undertake mining at new mines, Banwas and Chapri-Sidheswar. During the current fiscal, it is expecting to invest about Rs 690 crore.

On October 24, 2013, at 11:13 hrs Hindustan Copper was quoting at Rs 72.80, down Rs 0.8, or 1.09 percent. The 52-week high of the share was Rs 276.50 and the 52-week low was Rs 42.50.

The company's trailing 12-month (TTM) EPS was at Rs 3.53 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 20.62. The latest book value of the company is Rs 17.78 per share. At current value, the price-to-book value of the company was 4.09.

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Govt for minimum 6% of vehicle price as registration tax

The government today favoured a levy of a minimum 6 percent of the sale price of the vehicle as a lifetime tax by various states. Ministry of Road Transport and Highways today recommended all the states should levy a lifetime tax at floor rate of 6 percent of the sale price of the 2-wheelers, cars and LMVs (light motor vehicles).

Also Read: Global carmakers need to look beyond 'BRICs': Study

"These are recommendations to the states, we are trying to prevail upon them," Road Secretary Vijay Chhibber told reporters after the meeting of Transport Development Council. The council comprises transport commissioners from all the states and Union Territories.

At present different states have different tax structure. States having higher taxes lose out on revenue when people purchase vehicles from states that have lesser levies, he said. "In our various discussions over the proposal there seem to be a clear idea that a uniform tax is not possible, nobody (state) will agree to it and so we decided that let us agree on a floor/base rate and it is in common interest of everyone," Chibber said.

He added that if the government brings it down to make it uniform it will lose revenues. These are recommendations by the central government to all the states. He said that for the Union Territories the central government can enforce it but for other states there cannot be enforcement.

"Majority of states have resolved to carry forward the recommendations barring a few and efforts are on to bring them board," a Road Ministry official present at the meeting said. As part of the resolution passed by the council, flexibility is made available to the states to charge higher tax (above the floor rate of 6 percent) in general or specific mode of vehicles.

Haryana government has said the percentage of levy should be raised in phases instead of making it one time. Transport Commissioner, Haryana, Ashima Brar said that if the levies are undertaken in a phased manner there would be lesser burden on the consumer if it is a case of increase in tax.

"In our state raising it from present 3 percent to the minimum level of 6 percent will hurt the consumer, so we have a request that it should be done in a phased manner," she said in her presentation. These recommendations, discussed in today's meeting of the Transport Development Council, will be applicable from April 1, 2014.

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Bombay HC issues notices to 25 non-life insurance cos

The Bombay High Court today issued notices to 25 non-life insurance companies on a PIL seeking pre-packaged compensation for 42 ailments, covered under medical insurance policies, on the basis of sum insured and on the type of the hospital. The notices were issued by a bench headed by Chief Justice Mohit Shah on a PIL filed by social worker Gaurang Damani detailing hardships faced by mediclaim policy-holders.

"We are not here to decide individual matters but we want the consumers to benefit. They should know in advance how much package would they get to undergo treatment for a particular illness. This will enable an insured to decide in which hospital he may undergo treatment," said the bench.

The court had earlier asked Insurance Regulator and Development Authority (IRDA) to come out with pre-packaged compensation for the ailments covered under the medical insurance policies. The court had asked IRDA to include such guidelines in the regulations framed by it this year. However, IRDA, today, moved a chambers summons saying such a step was practically not possible to implement. General Insurance Council (GIC), which represents collective interests of the non-life insurance companies in the country, said that 25 such insurance companies should be made respondents to this petition.

The GIC said there should be uniformity in packages offered in insurance policies. It demanded that a regulator should be appointed to regulate the hospitals because in the existing scenario different hospitals were charging varying amounts for treating patients for the same kind of illness. The petitioner argued that there was a provision in the Clinical Establishments (Registration and Regulation) Act to appoint a regulator to regulate the hospitals. Yet, IRDA had not appointed such an authority.

In the interest of consumers and policy holders, a regulator should be appointed, he urged the court. The petitioner submitted that "there have been instances where patients, who have undergone the same kind of treatment at the same hospital, have been disbursed different insurance amounts. If pre-packaging was made available, then the insured can also choose the kind of hospital in which he wants to be treated," his petition said.

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SBI to take decision on raising fund from QIP in a month

State Bank of India (SBI) today said it will take a decision on raising fund through qualified institutional placement (QIP) in a month's time.

"We will take a decision on QIP shortly...within a month," SBI Chairperson Arundhati Bhattacharya said here. "Now, whatever capital they (government) give, to that extent we can take QIP or whatever other ways possible...So that we can retain the government stake at the same level," she said.

Financial Services Secretary Rajiv Takru said that banks will be allowed to raise capital from the markets in the proportionate amount infused by the government to maintain the government's shareholding.

"Government shareholding will not go down from the current level," he said. On capital infusion, Bhattacharya said last time also when the govt infused money in SBI, they had actually increased their shareholding from 58 per cent to 63 percent.

Last fiscal, the government had infused Rs 3,004 crore into SBI. The lender raised the money through a preferential allotment of shares to the government. Asked about measure taken to reduce non-performing assets, she said: "We have to extend the time period that we have given to them in order to perform."

If management change is required, it will be done for recovery of loan, she said. "But it is not something that will be done in one or two days' time. We will a considered view. We will consider it as one of the ways in which to resolve the NPAs," she added.

On October 23, 2013, at 11:14 hrs State Bank of India was quoting at Rs 1719.70, up Rs 42.80, or 2.55 percent. The 52-week high of the share was Rs 2550.00 and the 52-week low was Rs 1452.90.

The company's trailing 12-month (TTM) EPS was at Rs 198.74 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 8.65. The latest book value of the company is Rs 1445.60 per share. At current value, the price-to-book value of the company was 1.19.

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New launches not linked to Nokia-Microsoft deal: Elop

Finnish handset-maker Nokia is taking the battle straight to the doorsteps of market leaders Apple and Samsung. In the Nokia World event in Abu Dhabi, the company unveiled its new Windows-based tablet - the Lumia 2520. The tablet comes with a 10-inch screen and a 6.7 megapixel camera and has been priced at USD 499.

Also Read: Nokia launches tablet, joins large-screen smartphone race

Not just that, Nokia has also launched Lumia phone with a bigger 6-inch screen and a 20 megapixel camera. The new Lumia 1520 has been priced at USD 799.

The company also launched three low-cost phones in its Asha series targeting developing nations like India. One of the Asha models will also support 3G.

Nokia Executive Vice-President Stephen Elop told CNBC-TV18's Malvika Jain that with each of the devices it picks the right moment to enter the market when the company is convinced that it has a compelling and differentiated solution something that really stands out. He says the timing of the launch is not linked to the Nokia-Microsoft deal.

Meanwhile, Elop is worried about the tax issues plaguing the company in India. He says the company is in talks with the Indian government to resolve these issues. "We are fully compliant with all tax laws," he stresses.

Below is the verbatim transcript of Stephen Elop's interview on CNBC-TV18

Q: Tell us more about your new product launches?

A: We decided to enter the market with a series of products that demonstrate the very best in design. Some great imaging capabilities, the ability to take pictures in a beautiful way as well as a whole range of new experiences and with each of the devices we pick the moment to enter the market when we think we have a very compelling and differentiated solution something that really stands out.

So, whether it is something like the Lumia 2520 tablet, where the design of this is so beautifully aligned with all the other work that we have done. We look at products like that and pick the right moment to enter the market. Today we felt it was the right moment for these products.

Q: In hindsight do you feel that Nokia should have probably tried atleast one device on the Android platform?

A: Our belief was it was more important to focus on something that was truly different because if you look at the Android marketplace right now, while there is one vendor who is quite successful there are many others that have fallen by the wayside or are having a great deal of difficulty.

We recognize the need to partner differently because of where we were in our development with Symbian and various other efforts. We recognize that difference and said we need to do something quite different. So, we are pleased with what we have done.

Q: While this launch of swanky Asha devices and convergence with say an Instagram or a Whatsapp is something that's been on Nokia's mind for a while but we did not see any movement and now with your intent to enter into a deal with Microsoft we are seeing a lot of traction. So, is it correct to infer that it is Microsoft that is driving Nokia's future strategy already?

A: The timing of the launch of any of these devices is unrelated entirely to the Microsoft transaction with Nokia. Devices like this take many months to properly plan and consult with customers and so to be able to stand here today with working devices with brilliant new experiences is something that is many months in the making.

So, what you see here is a natural next step in the process that you have seen with for example our Lumia products all along.

Q: What is it that the Microsoft deal would actually mean for Nokia as a company in terms of its business strategy, operations other than the devices segment and in terms of human resource planning?

A: Two things happen simultaneously when the Microsoft transaction happens and just to remind viewers it hasn't happened yet, it is something that is subject to our shareholder approval and regulatory approval. When it does happen the devices team at Nokia will join Microsoft and our belief because of the opportunity to reduce the natural frictions between two companies the ability to place greater concentrated and focused investments, the pooling of technology, we think this means an even greater chance of success for the Windows phone efforts which translates into better job security and growth for that portion of Nokia that is going to Microsoft.

However, Nokia separately carries on after the Microsoft transaction because it has the Nokia solutions and networks business which is focused on mobile broadband and its intellectual property capabilities.

Q: What about the tax issues that Nokia is facing in India?

A: We have always followed all the proper regulations and everything appropriate from a tax perspective and we are very open and continue to work with the Indian government to find a resolution to the difficulty and I hope at some point we will.

Q: Do you think arbitration is an option?

A: I think we will just continue to work with the government and find a way through it.

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Privatisation of 6 major airports likely ahead of LS polls

Civil Aviation Ministry is hopeful of completing the process of privatising six major airports, including those at Chennai and Kolkata, within a time-frame and ahead of the 2014 general elections. The Ministry's move to hand over these airports, developed by the Airports Authority of India (AAI), through public-private partnership in the next 2-3 months to private parties suffered a setback with the sale of bid documents for Chennai and Lucknow airports being postponed by several weeks.

"We are quite optimistic about doing it within the time-frame. There is some cushion period available which we are using now," Civil Aviation Secretary K N Shrivastava said when asked whether the entire process of bidding, selection of the bidder and the award of the project would be completed before the general elections likely early next year.

"We are going through the process of consulting all stakeholders, including Planning Commission. We have held pre-bid consultations with prospective bidders. Our effort is to see that Request for Proposal (RFP), Requests for Qualification (RFQ), the concession agreement and other documents are properly drafted so that no issues are raised later," he said.

To questions on changes being made in the documents, Shrivastava said, "The stakeholders have given several suggestions. We may incorporate some of the valid suggestions and change the RFQ accordingly.

The documents have to be legally perfect." The private parties, which are in the race to participate in the operation, management and transfer of these airports at Chennai, Kolkata, Ahmedabad, Jaipur, Lucknow and Guwahati and wanted to submit the RFQ, have raised several issues including those relating to workforce and returns to be given to AAI.

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Malaysia's Petronas to set up USD 50 mn plant near Mumbai

Malaysia's Petronas today said it will invest USD 50 million in setting up a lubricant plant near Mumbai.

Petronas Lubricants International, the lubricants manufacturing and marketing arm of Malaysia's national oil and gas company Petronas, signed a land-lease agreement with Maharashtra Industrial Development Corporation (MIDC) to build a lubricant oil blending plant, a company statement said.

The land-lease agreement "marks the first step towards the construction of a world class lubricant blending plant with a 60 kilo tons per annum capacity, that will cater to Petronas' growing market volume," it said. The plant will be constructed on 25 acres of industrial land in Patalganga, near Mumbai in phased approach, with a provision to expand the capacity to 120 kta in the second phase, translating into investments worth USD 50 million. The first phase of the plant is expected to be completed by the end of 2015.

Giuseppe Pedretti, Asia Regional Head of Petronas Lubricants International, said, "Asia is a key region to carry this growth, and India - as one of the economic pillars of Asia, continues to be an important focus country for us." "Since our venture into India in 2006, we have charted a five year cumulative annual growth rate of more than 57 percent, through the support of our distributors, OEMs and business partners here," he added.

Having established a foothold, Petronas is taking the next step towards establishing Petronas' lubricants business and brand in India, which involves investing into building facilities that will support supply chain network.

MIDC CEO Bhushan Gagrani said, "this is a good time to invest in the Indian economy as there are positive signs of the economy to exceed its expectations in the next financial year."

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TCS wins multi-million dollar IT deal from Bombardier

IT services major TCS has bagged a multi-million dollar deal from leading rail vehicles maker Bombardier Transportation for managing IT infrastructure of its newly commissioned data centres.

"The multi-year, multi-million deal, is the first that TCS has signed with a rail-transportation technology provider," TCS said in a release. It did not reveal financial details of the deal. Bombardier Transportation is a world leader in rail transportation with operations in over 60 countries.

As part of the contract, TCS will provide remote infrastructure management (RIM) of Bombardier Transportation's recently established data centres in Germany. The new data centres will establish a technology platform for Bombardier, through introduction of private cloud services paired with a high level of virtualisation, the statement said.

Also Read: TCS plans lateral hiring; ups FY14 target to 50,000

TCS will also provide SAP Basis support to Bombardier Transportation. "India is central to Bombardier's Information Services strategy - our relationship with TCS offers operational excellence in markets around the world," Bombardier Transportation Vice President Thomas Leidenbach said.

Sapthagiri Chapalapalli, Head of Central Europe at TCS, said: "This is a strategic step forward for TCS as it establishes us as a partner of choice for infrastructure services in the German market." TCS' Central Europe operations (an operating area cutting across Germany and Austria) comprise over 4,000 professionals, servicing more than 80 leading German and Austrian companies such as Commerzbank, Daimler, Deutsche Bank, Deutsche Börse, as well as growing set of upper midsize companies.

Backed by large deal wins from Europe and the US, TCS last week announced better than expected 34 per cent jump in net profit to Rs 4,702 crore for the July-September quarter this year.

On October 22, 2013, at 11:13 hrs Tata Consultancy Services was quoting at Rs 2083.25, up Rs 9.75, or 0.47 percent. The 52-week high of the share was Rs 2258.05 and the 52-week low was Rs 1197.60.

The company's trailing 12-month (TTM) EPS was at Rs 77.34 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 26.94. The latest book value of the company is Rs 165.86 per share. At current value, the price-to-book value of the company was 12.56.

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Fewer tickets being booked; cash-strapped Railways worried

Trains may be running full, but there is a decline in number of tickets booked in the past six months, causing worry for cash-strapped Railways.

The number of passengers travelling in the non-suburban sector, which include reserved and unreserved class in mail and express trains, during April-September was 1,982.35 million as against 2,058.03 million in the same period last year.

Ticket bookings in the six-month period, according to Railway Ministry data, showed a decrease of 3.68 percent as compared to last year.

Though the passenger fare along with reservation fee and super-fast surcharge were hiked this year, the growth in earnings is not up to the expectation.

The passenger earnings during April-September period were Rs 18,099.83 crore as against Rs 15,582.42 crore during the same period last year, an increase of 16.16 percent only though the projection was more than 20 percent.

Blaming ticket-less journey for the fall in revenue, Railway Board Member (Traffic) Devi Prasad Pandey said, "We have intensified ticket checking exercise at major stations. Steps are being taken to make tickets easily available with opening up of more counters and deployment of more personnel for this."

Besides intensifying ticket checking drive, Railways is also installing ticket vending machines at more stations for short journey.

"Though coaches are running with full capacity, ticket bookings are not matching to it," Pandey said, adding that, "It should not happen because all trains are running full."

Asked whether fare hike and economic slowdown have adversely affected the passenger movement, Pandey said, "Road travel is costlier than train and it is the preferred mode of transport for common people in the country."

As far as economic slowdown is concerned, he said, "It is not the sole reason. People are travelling in trains and there are long queues for buying train tickets always."

Booking in long distance journey has not been affected. The fall in ticket booking has been noticed in short journeys, he said.

Pandey is, however, hopeful of tiding over the situation. "Passenger bookings will improve in the coming months and it has already shown an increasing trend this month due to various measures being undertaken," he said.

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Roadshow for Coal India stake sale likely from Monday

Oct 20, 2013, 08.08 PM IST

The roadshow begins amid threats by the workers of the state-owned firm to go on strike in December against the government move to divest its stake further.

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Roadshow for Coal India stake sale likely from Monday

The roadshow begins amid threats by the workers of the state-owned firm to go on strike in December against the government move to divest its stake further.

Like this story, share it with millions of investors on M3

Roadshow for Coal India stake sale likely from Monday

The roadshow begins amid threats by the workers of the state-owned firm to go on strike in December against the government move to divest its stake further.

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The Department of Disinvestment is likely to embark on eight-day roadshow in London and some cities in the US from tomorrow to woo foreign investors for further 5 percent stake sale in Coal India Ltd.

"The eight-day roadshow in places like London and some of the cities of the US, to attract foreign investors in CIL will begin from Monday," said an official.

However, he added: "This is a non-deal roadshow. The entire purpose of this roadshow is to tell the investors about CIL as a company and the kind of reserves it has."

The roadshow begins amid threats by the workers of the state-owned firm to go on strike in December against the government move to divest its stake further.

CIL workers' union had in September decided to defer its proposed three-day strike to December 17. Earlier, it was planned from September 23.

The government, which currently holds 90 percent stake in the company, had earlier pared a plan to sell 10 percent stake in CIL to placate employee unions. The proposal now is to divest 5 percent stake through offer for sale (OFS) route.

CIL was listed on bourses in 2010 after the government raised Rs 15,199 crore by selling 10 percent stake in the country's biggest initial public offering.

The company has a cash balance of about about Rs 62,000 crore. The government plans to garner Rs 40,000 crore this fiscal by way of disinvestment, of which CIL's stake sale would be the largest.

On October 21, 2013, at 11:11 hrs Coal India was quoting at Rs 284.45, down Rs 1.4, or 0.49 percent. The 52-week high of the share was Rs 374.05 and the 52-week low was Rs 238.35.

The company's trailing 12-month (TTM) EPS was at Rs 13.88 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 20.49. The latest book value of the company is Rs 32.48 per share. At current value, the price-to-book value of the company was 8.76.

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Asia's commercial property deals set for record year

Commercial real-estate investment in the Asia-Pacific region appears set for a record this year, finally topping pre-financial crisis levels and shrugging off recent stock and currency market volatility.

For the first three quarters of the year, the region's commercial real-estate transactions totaled USD 89.6 billion, up 25 percent from a year earlier, Jones Lang LaSalle said, adding transactions exceeded its expectations.

The real-estate services company raised its year-end forecast to USD 120 billion, from USD 110 billion, adding this would put 2013 on par with 2007, the strongest year ever by transaction volume.

(Read more: Is Malaysia's property market headed for a Dubai-style crash?)

The segment is seeing "unrelenting demand," said Stuart Crow, head of Asia-Pacific capital markets. "We are seeing increased activity from Asian pension and sovereign funds, together with new sources of global capital that are allocating to Asian real estate for the first time."

Australia, Japan and China led regional demand, accounting for 69 percent of the region's completed transactions so far this year, the company said. Japan's third-quarter deals climbed 139 percent from the year-earlier period, while year-to-date transactions are up 69 percent at USD 29.5 billion, amid interest from both domestic and offshore investors.

China's activity rose 167 percent in the third quarter, while year-to-date, it is up 34 percent at USD 16.6 billion; offshore investors accounted for over half of the transactions in the third quarter.

(Read more: As Japan property rebounds, investors court more risk, push out of Tokyo)

Australia's activity rose 25 percent year-to-date to USD 4.9 billion, after third-quarter investments rose 17 percent from a year-earlier, although they fell from the second quarter.

"Given the robust pipeline and continued strength of investor sentiment, we remain positive on the outlook for the remainder of the year," said Dr. Megan Walters, head of research for Asia Pacific capital markets at Jones Lang LaSalle.

But she added, increases in the yields of longer-dated bonds across the region amid expectations the Federal Reserve may taper its asset purchases are a concern.

— By CNBC's Leslie Shaffer. Follow her on Twitter:
@LeslieShaffer1

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MCX CEO MD Shreekant Javalgekar submits resignation

Oct 19, 2013, 02.33 PM IST

MCX-CEO-SHREEKANT-JAVALGEKAR:MCX says CEO Javalgekar submits resignation

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MCX CEO & MD Shreekant Javalgekar submits resignation

MCX-CEO-SHREEKANT-JAVALGEKAR:MCX says CEO Javalgekar submits resignation

Like this story, share it with millions of investors on M3

MCX CEO & MD Shreekant Javalgekar submits resignation

MCX-CEO-SHREEKANT-JAVALGEKAR:MCX says CEO Javalgekar submits resignation

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The Multi Commodity Exchange of India said on Saturday its managing director and chief executive officer, Shreekant Javalgekar, had submitted his resignation from the company, in which Financial Technologies holds a 26 percent stake.

It did not specify a reason for the resignation in a statement.

Financial Technologies also owns National Spot Exchange Ltd (NSEL). The NSEL has been under investigation by police since last month after India's commodities regulator ordered it to suspend trading over suspected violations of rules on contract duration.

The MCX board will meet on Tuesday to discuss the appointment of a new CEO, its spokesman said.

On October 18, 2013, Multi Commodity Exchange of India closed at Rs 510.35, down Rs 2.5, or 0.49 percent. The 52-week high of the share was Rs 1616.00 and the 52-week low was Rs 238.30.

The company's trailing 12-month (TTM) EPS was at Rs 57.65 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 8.85. The latest book value of the company is Rs 226.82 per share. At current value, the price-to-book value of the company was 2.25.

Action in Multi Commodity Exchange of India

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