Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts
Wednesday, January 2, 2013
Rupee rises 37 paise against dollar in early trade
The rupee strengthened by 37 paise to trade at fresh two-week high of Rs 54.31 against the US dollar in early trade on Wednesday at the Interbank Foreign Exchange on increased dollar selling by exporters and banks amid sustained foreign capital inflows.
A higher opening in the domestic equity market and the euro's strength against the dollar overseas also supported the rupee, dealers said.
The rupee had gained 31 paise to close at nearly two-week high of 54.68 against the American currency in yesterday's trade.
Monday, January 4, 2010
Markets starts 2010 on firm note; Sensex opens up 72 pts
The Bombay Stock Exchange benchmark Sensex on Monday rose by 72 points, or 0.41 per cent, in early trade with markets opening at 0900 hrs on the first trading session in the New Year.
The Sensex moved up by 72.51 points to 17,537.32 points in choppy opening trade on buying in heavyweight stocks by foreign funds and retail investors tracking firm global cues.
The broader National Stock Exchange Nifty gained 23 points, or 0.44 per cent to 5,224.05 points.
The BSE and the National Stock Exchange have advanced the trading timing to 0900 hrs from today with a view to better align the domestic markets with the Asian bourses.
Brokers said the mood on the first session in the New Year remained upbeat with stocks of auto sector leading the rally, buoyed by strong growth in vehicle sales in December.
Besides, firming trends on the other Asian bourses also boosted the trading sentiments here, they added.
The BSE auto sector index shot up by 1.19 per cent to 7,524.22 as stocks of Mahindra and Mahindra shot up by 2.70 per cent to Rs 1,110, Tata Motors by 1.48 per cent to Rs 804.35, Maruti Suzuki by 0.98 per cent to Rs 1,574 and Hero Honda by 0.09 per cent to Rs 1,718.
Other gainers which supported the Sensex were Tata Power by 1.31 per cent to Rs 1,396, NTPC by 0.34 per cent to Rs 236.50, Sun Pharma by 1.41 per cent to Rs 1,528.35 and HDFC Ltd by 1.05 per cent to Rs 2,706.
The Sensex moved up by 72.51 points to 17,537.32 points in choppy opening trade on buying in heavyweight stocks by foreign funds and retail investors tracking firm global cues.
The broader National Stock Exchange Nifty gained 23 points, or 0.44 per cent to 5,224.05 points.
The BSE and the National Stock Exchange have advanced the trading timing to 0900 hrs from today with a view to better align the domestic markets with the Asian bourses.
Brokers said the mood on the first session in the New Year remained upbeat with stocks of auto sector leading the rally, buoyed by strong growth in vehicle sales in December.
Besides, firming trends on the other Asian bourses also boosted the trading sentiments here, they added.
The BSE auto sector index shot up by 1.19 per cent to 7,524.22 as stocks of Mahindra and Mahindra shot up by 2.70 per cent to Rs 1,110, Tata Motors by 1.48 per cent to Rs 804.35, Maruti Suzuki by 0.98 per cent to Rs 1,574 and Hero Honda by 0.09 per cent to Rs 1,718.
Other gainers which supported the Sensex were Tata Power by 1.31 per cent to Rs 1,396, NTPC by 0.34 per cent to Rs 236.50, Sun Pharma by 1.41 per cent to Rs 1,528.35 and HDFC Ltd by 1.05 per cent to Rs 2,706.
Wednesday, December 23, 2009
2009: Good for investors, tough on MFs
Investors got the upper hand in 2009, while fund houses struggled to cope with regulatory changes and upheavals in the economy, even as the industry shrugged off recession blues with its assets hitting an all time high of Rs 8 lakh crore.
The year was particularly significant as the market regulator Sebi acted in favour of the investors and eased norms making it easier for them to invest in mutual funds. The key changes include abolishment of entry load on purchase of schemes and allowing MFs to be traded on the stock exchanges.
"Even though these are early days, both (regulatory changes) have deep potential for a positive impact. The abolition of entry load is a significant game-changer as it completely transforms the business model of the fund distribution industry. For fund companies as well as distributors, it throws up a challenge of managing a big change if they have to flourish," mutual fund tracking firm Value Research CEO Dhirendra Kumar said.
According to marketmen, the move for introduction of MFs on exchanges as well as an improvement in the state of the economy would increase reach of MFs across the country.
With high volatility in the stock market during the year, investors looked for avenues of mutual gains and lesser risk to reap returns on their investments. This was evident with the average AUM of the industry hitting an all time high of Rs 8,07,546 crore, an increase of Rs 3.86 lakh crore at the end of November, according to latest figures available on the Association of Mutual Funds in India (AMFI) website.
Analysts believe that the improving economic conditions and relatively good performance of the Indian stock markets show the promise that lies ahead for the mutual funds and 2010 should be a better year.
"The total AUMs should definitely climb in 2010 and I believe an increase of 20-25 per cent in industry AUMs is possible by end-2010," global financial research firm Celent analyst Anshuman Jaswal said.
During 2008, the industry had incurred heavy losses when the fund houses became poorer by about Rs 1,50,000 crore and leaving the industry shattered with a huge liquidity crunch. At present, the industry, considered a safe haven for investors, consists of 37 fund houses.
Despite a rebound in the performance of the fund houses, equity schemes continued to lag compared to debt and other liquid schemes as investors preferred to park money with funds promising assured returns, although analysts are upbeat that equity MFs would perform better going forward in 2010. Equity schemes have recorded inflows to the tune of Rs 2,104 crore so far this year, while income funds have witnessed investments of Rs 2,87,500 crore.
However, Kumar cautioned that flush with excess funds investors are only parking money for the short term with the mutual funds.
"The bloated AUM should not be paid too much attention too as most of it is in short-term debt funds which have become attractive simply because the system has a lot of loose cash floating.... As far as long-term equity money goes, the situation is not that great. Almost all the AUM increase has come from market appreciation rather than fresh inflows," he noted.
Moreover, Kumar said that more regulatory changes may be in the offing from the market regulator in the new year. "The regulator's current mood is of actively chasing and fixing issues in the industry so I guess one could see more changes during 2010 as well," Kumar said.
Another, regulator change which was mooted this year in favour of the investors was doing away with the practice of obtaining a no objection certificate (NOC) from existing distributors, if a customer wants to switch the distributors.
The market regulator said it has come to notice that unwarranted hardships were being caused to investors in mutual fund schemes.
Kumar said, "The decision is pro-consumer in spirit and will drive distributors to provide satisfactory after-sales services to investors. As investors would have the choice to switch their existing distributor if they are unsatisfied with its performance."
The year was particularly significant as the market regulator Sebi acted in favour of the investors and eased norms making it easier for them to invest in mutual funds. The key changes include abolishment of entry load on purchase of schemes and allowing MFs to be traded on the stock exchanges.
"Even though these are early days, both (regulatory changes) have deep potential for a positive impact. The abolition of entry load is a significant game-changer as it completely transforms the business model of the fund distribution industry. For fund companies as well as distributors, it throws up a challenge of managing a big change if they have to flourish," mutual fund tracking firm Value Research CEO Dhirendra Kumar said.
According to marketmen, the move for introduction of MFs on exchanges as well as an improvement in the state of the economy would increase reach of MFs across the country.
With high volatility in the stock market during the year, investors looked for avenues of mutual gains and lesser risk to reap returns on their investments. This was evident with the average AUM of the industry hitting an all time high of Rs 8,07,546 crore, an increase of Rs 3.86 lakh crore at the end of November, according to latest figures available on the Association of Mutual Funds in India (AMFI) website.
Analysts believe that the improving economic conditions and relatively good performance of the Indian stock markets show the promise that lies ahead for the mutual funds and 2010 should be a better year.
"The total AUMs should definitely climb in 2010 and I believe an increase of 20-25 per cent in industry AUMs is possible by end-2010," global financial research firm Celent analyst Anshuman Jaswal said.
During 2008, the industry had incurred heavy losses when the fund houses became poorer by about Rs 1,50,000 crore and leaving the industry shattered with a huge liquidity crunch. At present, the industry, considered a safe haven for investors, consists of 37 fund houses.
Despite a rebound in the performance of the fund houses, equity schemes continued to lag compared to debt and other liquid schemes as investors preferred to park money with funds promising assured returns, although analysts are upbeat that equity MFs would perform better going forward in 2010. Equity schemes have recorded inflows to the tune of Rs 2,104 crore so far this year, while income funds have witnessed investments of Rs 2,87,500 crore.
However, Kumar cautioned that flush with excess funds investors are only parking money for the short term with the mutual funds.
"The bloated AUM should not be paid too much attention too as most of it is in short-term debt funds which have become attractive simply because the system has a lot of loose cash floating.... As far as long-term equity money goes, the situation is not that great. Almost all the AUM increase has come from market appreciation rather than fresh inflows," he noted.
Moreover, Kumar said that more regulatory changes may be in the offing from the market regulator in the new year. "The regulator's current mood is of actively chasing and fixing issues in the industry so I guess one could see more changes during 2010 as well," Kumar said.
Another, regulator change which was mooted this year in favour of the investors was doing away with the practice of obtaining a no objection certificate (NOC) from existing distributors, if a customer wants to switch the distributors.
The market regulator said it has come to notice that unwarranted hardships were being caused to investors in mutual fund schemes.
Kumar said, "The decision is pro-consumer in spirit and will drive distributors to provide satisfactory after-sales services to investors. As investors would have the choice to switch their existing distributor if they are unsatisfied with its performance."
Tuesday, December 22, 2009
Pay for perks in last three months
As you return from your New Year vacation, employers will have a surprise for you. Your salary cheque will look slimmer after the deductions on all your perks for the entire year -- company car, fuel allowance, driver, accommodation, furnishings, concessional fees for kids, company funded travel and the like.
The government had announced in Budget 2009-10 that Fringe Benefit Tax (FBT) on perks provided by employers would be abolished but its impact is going to kick in from next month with the Central Board of Direct Taxes issuing a notification on Friday which transfers the tax burden on the employee.
For instance, while a car of upto 1.6 litre engine capacity in the pre-FBT regime would call for Rs 1,200 tax outgo at the hands of an employee, the same is now fixed at Rs 1,800. Anything above this engine capacity would amount to a monthly tax outgo of Rs 2,400. Add Rs 900 as tax on your monthly salary bill if the company has also provided you a chauffeur, said Kuldip Kumar, an executive director with PricewaterhouseCooper.
In case the employer has provided a car to an employee for his personal use, the entire expenses borne by the company on the running of the car and its maintenance would be liable for tax at the hands of the employee.
Accommodation, car, salary of your gardener, assistant at home, watchman, your electricity, water, club, credit card and holiday bills will all be taxed on actual expenses and as per the limit specified in the new notification.
In the FBT regime introduced by then finance minister P Chidambaram in 2005, perks were taxed to employers while fringe benefits enjoyed by employees were tax free.
Now, your club membership will be taxed to you unless it is specified in your work contract that it is for official purpose.
In fact, the CBDT notification should have come just after the Budget to make it easy for employees to spread his tax outflow over the entire fiscal. However, it has come at the fag end of the year when in the remaining three months entire tax will be calculated and deducted at source resulting in lower pay cheque for employees.
The government had announced in Budget 2009-10 that Fringe Benefit Tax (FBT) on perks provided by employers would be abolished but its impact is going to kick in from next month with the Central Board of Direct Taxes issuing a notification on Friday which transfers the tax burden on the employee.
For instance, while a car of upto 1.6 litre engine capacity in the pre-FBT regime would call for Rs 1,200 tax outgo at the hands of an employee, the same is now fixed at Rs 1,800. Anything above this engine capacity would amount to a monthly tax outgo of Rs 2,400. Add Rs 900 as tax on your monthly salary bill if the company has also provided you a chauffeur, said Kuldip Kumar, an executive director with PricewaterhouseCooper.
In case the employer has provided a car to an employee for his personal use, the entire expenses borne by the company on the running of the car and its maintenance would be liable for tax at the hands of the employee.
Accommodation, car, salary of your gardener, assistant at home, watchman, your electricity, water, club, credit card and holiday bills will all be taxed on actual expenses and as per the limit specified in the new notification.
In the FBT regime introduced by then finance minister P Chidambaram in 2005, perks were taxed to employers while fringe benefits enjoyed by employees were tax free.
Now, your club membership will be taxed to you unless it is specified in your work contract that it is for official purpose.
In fact, the CBDT notification should have come just after the Budget to make it easy for employees to spread his tax outflow over the entire fiscal. However, it has come at the fag end of the year when in the remaining three months entire tax will be calculated and deducted at source resulting in lower pay cheque for employees.
Friday, December 18, 2009
SC stays mining by OMC firm
Disapproving the interim order of the AP High Court permitting Obulapuram Company Ltd. (OCL) of the powerful Reddy brothers to carry on mining activities in an area 40 metres towards the Karnataka border in Obulapuram area, the Supreme Court on Thursday halted the operation till further hearing on January 4.
Admitting the appeal of the Andhra Pradesh government against the High Court’s interim direction of December 11, a three-judge Bench comprising Chief Justice K.G. Balakrishnan and Justices B. Sudershan Reddy and P. Sathasivam said the HC order “stands stayed till January 4.”
The court issued notice to the OCL, Anantapur Corporation and the other lease holders allowed to carry on mining activities.
The notices were also issued to the Central Empowerment Committee (CEC) on whose recommendation the ministry of environment and forests had asked the state government to stop mining activities in the area by three companies of Reddy brothers and three others lease holders.
The AP Pollution Control Board was also issued the notice with the direction that all of them would file their replies by January 4.
Expressing displeasure over the HC’s interim relief to the OCL and other lease holders, almost allowing them main relief prayed for in their petitions, Justice Reddy asked, “how can you grant main relief in the name of interim order.”
The stay order came despite strong objection by the OCL’s counsel Mukul Rohtagi, who raised question over the CEC findings.
OMC,Gali,Gali reddy,Gali janardhan reddy
Admitting the appeal of the Andhra Pradesh government against the High Court’s interim direction of December 11, a three-judge Bench comprising Chief Justice K.G. Balakrishnan and Justices B. Sudershan Reddy and P. Sathasivam said the HC order “stands stayed till January 4.”
The court issued notice to the OCL, Anantapur Corporation and the other lease holders allowed to carry on mining activities.
The notices were also issued to the Central Empowerment Committee (CEC) on whose recommendation the ministry of environment and forests had asked the state government to stop mining activities in the area by three companies of Reddy brothers and three others lease holders.
The AP Pollution Control Board was also issued the notice with the direction that all of them would file their replies by January 4.
Expressing displeasure over the HC’s interim relief to the OCL and other lease holders, almost allowing them main relief prayed for in their petitions, Justice Reddy asked, “how can you grant main relief in the name of interim order.”
The stay order came despite strong objection by the OCL’s counsel Mukul Rohtagi, who raised question over the CEC findings.
OMC,Gali,Gali reddy,Gali janardhan reddy
Thursday, December 17, 2009
Ambani gas row: Anil says greedy Mukesh doesn't want compromise
Sparks flew in the Supreme Court on Wednesday in the high voltage case between RIL and RNRL with Anil Ambani accusing elder brother Mukesh of being greedy to stall his repeated attempts to arrive at a compromise and a mutually suitable agreement for supply of gas from KG Basin wells.
While concluding arguments before a Bench comprising Chief Justice K G Balakrishnan and Justices B Sudershan Reddy and P Sathasivam, RNRL counsel Mukul Rohtagi said, “Anil Ambani always and at every stage was ready to sit across the table to settle the dispute. But at every stage, they (RIL) had refused. We are ready for settlement even now.”
RIL counsel Harish Salve rose to Mukesh’s defence and said, “These are not matters to be settled sitting at home. The High Court says take the help of mother. The matter is too technical for her. But it is wrong to suggest that the brothers had not met for settlement. They have met.”
Rohtagi said, “There have been no meetings at all. The approach (of Mukesh) is ‘I have a huge gas field and I will not give you anything’. The Supreme Court should put a full stop to all this by giving a final decision on the dispute and not sending it to any other forum.”
Salve said the RNRL counsel had borrowed all negative adjectives from the dictionary to reel off in the court without touching the merits of the case. “Their consistent argument is that how greedy my client has been. I will not go into it except saying his client (Anil) is an honourable man. Brutus was also an honourable man.”
Returning to meet the arguments of RNRL on merit, Salve said the consistent stand of Anil Ambani’s company was to adhere to the May 12, 2005, draft agreement between RIL and NTPC over gas supply.
While concluding arguments before a Bench comprising Chief Justice K G Balakrishnan and Justices B Sudershan Reddy and P Sathasivam, RNRL counsel Mukul Rohtagi said, “Anil Ambani always and at every stage was ready to sit across the table to settle the dispute. But at every stage, they (RIL) had refused. We are ready for settlement even now.”
RIL counsel Harish Salve rose to Mukesh’s defence and said, “These are not matters to be settled sitting at home. The High Court says take the help of mother. The matter is too technical for her. But it is wrong to suggest that the brothers had not met for settlement. They have met.”
Rohtagi said, “There have been no meetings at all. The approach (of Mukesh) is ‘I have a huge gas field and I will not give you anything’. The Supreme Court should put a full stop to all this by giving a final decision on the dispute and not sending it to any other forum.”
Salve said the RNRL counsel had borrowed all negative adjectives from the dictionary to reel off in the court without touching the merits of the case. “Their consistent argument is that how greedy my client has been. I will not go into it except saying his client (Anil) is an honourable man. Brutus was also an honourable man.”
Returning to meet the arguments of RNRL on merit, Salve said the consistent stand of Anil Ambani’s company was to adhere to the May 12, 2005, draft agreement between RIL and NTPC over gas supply.
Saturday, November 28, 2009
‘Dubai Shock’ gives Dalal St the jitters
Antennae were raised in India as the “Dubai shock” — the mammoth $59 billion debt repayment crisis to hit Dubai World, a state-owned investment holding company in the Gulf emirate — caused the Bombay Stock Exchange’s benchmark Sensex to plummet over 600 points in early trade on Friday, amid ripples of fear of “more Dubais” lurking in the shadows.
Both the finance ministry and the Reserve Bank of India worked hard to calm these fears, saying there was no need to panic, and the government said it did not expect any major effect in India.
The Sensex, which had fallen 643 points to 16,211 during in the day, recovered considerably to close at 16,632, just 223 points down.
It was primarily a property bubble that burst at a time when global economies are showing some signs of recovery.
The RBI governor, Mr D. Subba Rao, said it was too early to comment on the impact of the crisis as one needed to get the whole picture. Speaking on the sidelines of a function in Hyderabad, he said: “I have asked officials at the RBI to examine the likely impact of the Dubai debt default. After that I will communicate to the public the implications of the crisis.”
The finance secretary, Mr Ashok Chawla, was more forthcoming, and said the Dubai crisis had affected just one company and he did not expect any major impact on India. However, he added that the government would have to study the impact of the debt crisis on India. “It’s one company, a one-nation issue — it cannot be generalised. I don’t think it will have a major impact (on India).”
Indian engineering giant Larsen and Toubro said the money due to them for projects was around $20 million to $25 million. ICICI Bank and Bank of Baroda also brushed aside any impact on them. ICICI Bank said there was no material non-India-linked exposure to Dubai corporates.
Indian companies that have operations in Dubai are anxious about the crisis but are hopeful that its impact will be marginal on their overall business.
Both the finance ministry and the Reserve Bank of India worked hard to calm these fears, saying there was no need to panic, and the government said it did not expect any major effect in India.
The Sensex, which had fallen 643 points to 16,211 during in the day, recovered considerably to close at 16,632, just 223 points down.
It was primarily a property bubble that burst at a time when global economies are showing some signs of recovery.
The RBI governor, Mr D. Subba Rao, said it was too early to comment on the impact of the crisis as one needed to get the whole picture. Speaking on the sidelines of a function in Hyderabad, he said: “I have asked officials at the RBI to examine the likely impact of the Dubai debt default. After that I will communicate to the public the implications of the crisis.”
The finance secretary, Mr Ashok Chawla, was more forthcoming, and said the Dubai crisis had affected just one company and he did not expect any major impact on India. However, he added that the government would have to study the impact of the debt crisis on India. “It’s one company, a one-nation issue — it cannot be generalised. I don’t think it will have a major impact (on India).”
Indian engineering giant Larsen and Toubro said the money due to them for projects was around $20 million to $25 million. ICICI Bank and Bank of Baroda also brushed aside any impact on them. ICICI Bank said there was no material non-India-linked exposure to Dubai corporates.
Indian companies that have operations in Dubai are anxious about the crisis but are hopeful that its impact will be marginal on their overall business.
Dubai debacle likely to hit workers, remittances
Despite the brave front put up by Indian government, the debt crisis that has enveloped Dubai World threatens to hit the struggling Indian
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overseas labour market that is largely dependent on short-term Middle East job contracts. The latest crisis comes at a time when official estimates have admitted that unemployment rates have spiralled to 30% in the Middle East in the last one year.
Industry sources say unemployment figures could be higher than the official estimates and that remittances to India - $43.5 billion in 2007-2008 - are certain to be much lower this year in the wake of the continuing recession in the region. The Dubai World's debt just adds to the bad news.
UAE is the favourite destination for a maximum number of overseas Indian workers - 3.4 lakh people went to the country in 2008 - but the number has been fast declining as Indian workers are unable to get new contracts or extensions in the country that's in the grip of recession.
It's well known that when Dubai sneezes, south India, especially Kerala, catches more than just a cold. Last September, when Lehman Brothers collapsed triggering the great recession, the arrivals at Chennai, Hyderabad and Thiruvananthapuram airports wore a grim look. The news of Dubai World's inability to repay the $59 billion debt has triggered similar fears among the relatives of immigrants back home.
However, the minister for Overseas Indian Affairs tried to allay such fears. ``There were some concerns during the beginning of the slowdown an year ago, but now we are not expecting any exodus (return) of Indians and India will not be affected by Dubai's debts,'' Vayalar Ravi told TOI on telephone.
OIA secretary K Mohandas added that large scale retrenchment was unlikely even though labour movement to UAE had come down. ``There are some countries like Saudi Arabia where labour movement has increased,'' he said adding, however, that the increase was negligible.
However, the government of Kerala, where overseas remittances contribute 20% of the state GDP,
does not sound too optimistic. ``We do not yet know the magnitude of the crisis. On the face of it, the problem looks serious. Now we will have to wait and see its impact on other sectors, and whether there will be a credit freeze,'' Kerala finance minister T M Thomas Isaac told TOI.
``If it (Dubai debt crisis) affects the real estate sector, we have enough reasons to be worried. Only after the (Id) holidays are over in the Gulf, we will come to know more,'' Isaac said.
Over 5 lakh Indians have returned from Dubai since September 2008, of which two lakh are Malayalees. Almost 60% of these people are technical or non-technical skills professionals. ``Over 50 lakh Indians work in the Middle East of which 20 lakh are from Kerala. We do not expect large number of returnees now,'' K V Mohankumar, CEO of Kerala NRI group, Non Resident Keralites' Affairs (Norka).
According to Norka, 10 lakh Malayalees live and work in Dubai, along with 4 lakh people from Andhra Pradesh and and 4.5 lakh Tamils.
The situation in the past year has prompted the OIA ministry to introduce a welfare fund for emigrants in distress. Services like a toll-free helpline, a counselling facility and a facility to extend contingency based legal, medical and emergency relief assistance are on the anvil to provide a safety net to a large and vulnerable work force in the region.
The minister has also announced setting up of an Indian Workers Resource Centre (IWRC) in the region and a ``Return and Resettlement Fund'' that will provide for a contribution-based scheme to incentivize the return and resettlement of overseas workers. Details of the proposal are being worked out.
However, bankers here are not losing sleep over the Dubai World crisis, yet. ``The original impact of the Dubai crisis has already happened. I do not see any further impact coming in,'' said Venugopalan M, managing director & CEO, Federal Bank. ``I don't see any further reduction in remittances as well.''
The news of Dubai rescheduling its debts fails to surprise some. Jinu Rani George, a senior official with a builder group that has considerable interests in Dubai, said it was expected. ``We are in Dubai for 27 years now. But from November 2008, when recession fears began, we have not been getting any money from the government or municipality. So we put a freeze on all our projects. Now, we do high volume business mostly in Abu Dhabi.''
She said groups like Nakheel, a subsidiary of Dubai World, and Dubai Properties, a unit of Dubai Holding, had sacked almost 80% of their employees.
During the last 10 months a number of Indian professionals have moved from Dubai to the oil-rich emirate of Abu Dhabi not just in search of high-paying jobs but also job stability.
``We knew things were shaky in Dubai. Its diminishing spending power brought projects to a standstill. The only option was to move to Abu Dhabi and luckily we found employment here,'' said Biju Haridas, a management professional in Abu Dhabi.
``The emirate of Abu Dhabi will bail out Dubai with conditions, but those conditions will never be made public,'' said an Indian diplomat in UAE.
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overseas labour market that is largely dependent on short-term Middle East job contracts. The latest crisis comes at a time when official estimates have admitted that unemployment rates have spiralled to 30% in the Middle East in the last one year.
Industry sources say unemployment figures could be higher than the official estimates and that remittances to India - $43.5 billion in 2007-2008 - are certain to be much lower this year in the wake of the continuing recession in the region. The Dubai World's debt just adds to the bad news.
UAE is the favourite destination for a maximum number of overseas Indian workers - 3.4 lakh people went to the country in 2008 - but the number has been fast declining as Indian workers are unable to get new contracts or extensions in the country that's in the grip of recession.
It's well known that when Dubai sneezes, south India, especially Kerala, catches more than just a cold. Last September, when Lehman Brothers collapsed triggering the great recession, the arrivals at Chennai, Hyderabad and Thiruvananthapuram airports wore a grim look. The news of Dubai World's inability to repay the $59 billion debt has triggered similar fears among the relatives of immigrants back home.
However, the minister for Overseas Indian Affairs tried to allay such fears. ``There were some concerns during the beginning of the slowdown an year ago, but now we are not expecting any exodus (return) of Indians and India will not be affected by Dubai's debts,'' Vayalar Ravi told TOI on telephone.
OIA secretary K Mohandas added that large scale retrenchment was unlikely even though labour movement to UAE had come down. ``There are some countries like Saudi Arabia where labour movement has increased,'' he said adding, however, that the increase was negligible.
However, the government of Kerala, where overseas remittances contribute 20% of the state GDP,
does not sound too optimistic. ``We do not yet know the magnitude of the crisis. On the face of it, the problem looks serious. Now we will have to wait and see its impact on other sectors, and whether there will be a credit freeze,'' Kerala finance minister T M Thomas Isaac told TOI.
``If it (Dubai debt crisis) affects the real estate sector, we have enough reasons to be worried. Only after the (Id) holidays are over in the Gulf, we will come to know more,'' Isaac said.
Over 5 lakh Indians have returned from Dubai since September 2008, of which two lakh are Malayalees. Almost 60% of these people are technical or non-technical skills professionals. ``Over 50 lakh Indians work in the Middle East of which 20 lakh are from Kerala. We do not expect large number of returnees now,'' K V Mohankumar, CEO of Kerala NRI group, Non Resident Keralites' Affairs (Norka).
According to Norka, 10 lakh Malayalees live and work in Dubai, along with 4 lakh people from Andhra Pradesh and and 4.5 lakh Tamils.
The situation in the past year has prompted the OIA ministry to introduce a welfare fund for emigrants in distress. Services like a toll-free helpline, a counselling facility and a facility to extend contingency based legal, medical and emergency relief assistance are on the anvil to provide a safety net to a large and vulnerable work force in the region.
The minister has also announced setting up of an Indian Workers Resource Centre (IWRC) in the region and a ``Return and Resettlement Fund'' that will provide for a contribution-based scheme to incentivize the return and resettlement of overseas workers. Details of the proposal are being worked out.
However, bankers here are not losing sleep over the Dubai World crisis, yet. ``The original impact of the Dubai crisis has already happened. I do not see any further impact coming in,'' said Venugopalan M, managing director & CEO, Federal Bank. ``I don't see any further reduction in remittances as well.''
The news of Dubai rescheduling its debts fails to surprise some. Jinu Rani George, a senior official with a builder group that has considerable interests in Dubai, said it was expected. ``We are in Dubai for 27 years now. But from November 2008, when recession fears began, we have not been getting any money from the government or municipality. So we put a freeze on all our projects. Now, we do high volume business mostly in Abu Dhabi.''
She said groups like Nakheel, a subsidiary of Dubai World, and Dubai Properties, a unit of Dubai Holding, had sacked almost 80% of their employees.
During the last 10 months a number of Indian professionals have moved from Dubai to the oil-rich emirate of Abu Dhabi not just in search of high-paying jobs but also job stability.
``We knew things were shaky in Dubai. Its diminishing spending power brought projects to a standstill. The only option was to move to Abu Dhabi and luckily we found employment here,'' said Biju Haridas, a management professional in Abu Dhabi.
``The emirate of Abu Dhabi will bail out Dubai with conditions, but those conditions will never be made public,'' said an Indian diplomat in UAE.
Wednesday, November 25, 2009
A.P. suspends operations in six mines
Acting swiftly on a letter written by the Central Empowered Committee of the Supreme Court, the Andhra Pradesh Government decided on Tuesday night to suspend mining operations, including transportation of already mined material, in six iron ore mines in Anantapur district.
CEC Member Secretary M.K. Jiwrajka had written a letter to Chief Secretary P. Ramakanth Reddy on Monday advising the government to stop mining operations and prevent transportation of ore from these mines. This letter was written four days after the committee submitted its report to the Supreme Court recommending that illegal mining be stopped immediately.
CEC Member Secretary M.K. Jiwrajka had written a letter to Chief Secretary P. Ramakanth Reddy on Monday advising the government to stop mining operations and prevent transportation of ore from these mines. This letter was written four days after the committee submitted its report to the Supreme Court recommending that illegal mining be stopped immediately.
Wednesday, November 18, 2009
CBI to probe Gali brothers
The state government on Tuesday decided to conduct a CBI probe into the alleged irregularities in mining operations in Anantapur district.
The Chief Minister, Mr K. Rosaiah, consulted the Congress central leadership, his key aides and the chief secretary, Mr P. Ramakanth Reddy, before deciding on a CBI probe.
Sources said the Kadapa MP, Mr Y.S. Jagan Mohan Reddy, was also informed of the decision before it was made public.
Mr Jagan Mohan Reddy, who has been charged by the Opposition of having a nexus with the Gali brothers running the Obulapuram Mining Company, welcomed the probe and said it would put all the allegations at rest.
“I did not receive a single rupee from OMC as they allege,” he told mediapersons and dismissed the whole controversy as a dispute between two private firms.
It was the Telugu Desam that first demanded a CBI probe and the Chief Minister’s decision is meant to take the wind from the Opposition’s sails. Sources said the Congress high command was wary of the TD and the Left trying to turn the OMC controversy into a national issue.
“It is also unhappy over the allegations that the Congress government is protecting a BJP minister,” sources pointed out.
The comprehensive probe will look into the activities of the six mining companies in the area. Mr Gali Janardhan Reddy owns four mining companies including Anantapur Mining Company and it is also learnt that the YM mining company has also been sub-leased to him.
His competitor, Mr S.K. Modi, who runs the Bellary Iron Ore Company in 27.12 hectares adjacent to OMC, has accused Mr Janardhan Reddy of illegally encroaching 0.225 hectares belonging to him. OMC, in turn, has accused BIOP of encroachin g upon 2.74 hectares of its land.
Mr Reddy is also facing accusations of illegally constructing a road from OMC land to Karnataka, of demolishing boundary pillars between H. Siddapuram and Obulapuram villages and illegally import and export of iron ore.
Business, ap politics, Karnataka news,
The Chief Minister, Mr K. Rosaiah, consulted the Congress central leadership, his key aides and the chief secretary, Mr P. Ramakanth Reddy, before deciding on a CBI probe.
Sources said the Kadapa MP, Mr Y.S. Jagan Mohan Reddy, was also informed of the decision before it was made public.
Mr Jagan Mohan Reddy, who has been charged by the Opposition of having a nexus with the Gali brothers running the Obulapuram Mining Company, welcomed the probe and said it would put all the allegations at rest.
“I did not receive a single rupee from OMC as they allege,” he told mediapersons and dismissed the whole controversy as a dispute between two private firms.
It was the Telugu Desam that first demanded a CBI probe and the Chief Minister’s decision is meant to take the wind from the Opposition’s sails. Sources said the Congress high command was wary of the TD and the Left trying to turn the OMC controversy into a national issue.
“It is also unhappy over the allegations that the Congress government is protecting a BJP minister,” sources pointed out.
The comprehensive probe will look into the activities of the six mining companies in the area. Mr Gali Janardhan Reddy owns four mining companies including Anantapur Mining Company and it is also learnt that the YM mining company has also been sub-leased to him.
His competitor, Mr S.K. Modi, who runs the Bellary Iron Ore Company in 27.12 hectares adjacent to OMC, has accused Mr Janardhan Reddy of illegally encroaching 0.225 hectares belonging to him. OMC, in turn, has accused BIOP of encroachin g upon 2.74 hectares of its land.
Mr Reddy is also facing accusations of illegally constructing a road from OMC land to Karnataka, of demolishing boundary pillars between H. Siddapuram and Obulapuram villages and illegally import and export of iron ore.
Business, ap politics, Karnataka news,
Friday, November 13, 2009
India property show to be held on November 13-14
A two-day property show will be held at Ramada Plaza in Doha on November 13 and 14 to showcase residential and commercial projects available across India for NRIs in Qatar.
Organised by Chennai based Priya Publications, publishers of real estate magazines, the ninth global show will display varied residential and commercial projects ranging from apartments, developed plots to villas and leased units. An estimated 15 exhibitors from cities like Bangalore, Chennai, Hyderabad, Kochi and Mumbai will display their projects. Home loans will be offered by housing finance companies. Spot approval of home loans will be made available to NRIs during the show on production of basic documents salary slip, employment certificate and bank statement.
A seminar on NRI investment in real estate will be held every day at 5 pm to apprise expatriate Indians in Qatar on the current Indian real estate market scenario, rules and regulations governing NRI investment and tips for tax planning. The entry is free and the timings are from 10am to 9pm on both the days.
Business, hyderaba properties, properties in hyderabad,
Organised by Chennai based Priya Publications, publishers of real estate magazines, the ninth global show will display varied residential and commercial projects ranging from apartments, developed plots to villas and leased units. An estimated 15 exhibitors from cities like Bangalore, Chennai, Hyderabad, Kochi and Mumbai will display their projects. Home loans will be offered by housing finance companies. Spot approval of home loans will be made available to NRIs during the show on production of basic documents salary slip, employment certificate and bank statement.
A seminar on NRI investment in real estate will be held every day at 5 pm to apprise expatriate Indians in Qatar on the current Indian real estate market scenario, rules and regulations governing NRI investment and tips for tax planning. The entry is free and the timings are from 10am to 9pm on both the days.
Business, hyderaba properties, properties in hyderabad,
Wednesday, November 11, 2009
Jalayagnam contractors to stop work
Jalayagnam, the flagship programme of Y.S. Rajasekhar Reddy is likely to come to grinding halt with the contractors deciding to stop irrigation works from November 23 because of the inordinate delay in clearing bills worth Rs 4,600 crore. Following this, the Chief Minister, Mr K. Rosaiah, chaired a review meeting of the ongoing irrigation works.
The major irrigation minister, Mr Ponnala Lakshmaiah, later said that the government had always given priority to pay the bills of the contractors. He added that Mr Rosaiah made it clear that Jalayagnam would continue to be the flagship programme of the state government.
However, the Builders’ Association of India, which also held an emergency meeting on Tuesday, said contractors were facing lot of difficulties after the death of YSR. “We did not face any problem when YSR was alive since he used to adjust the money for Jalayagnam,” said Mr P. Mohan Reddy, honorary chairman of the association. “After his demise, the irrigation projects have been completely neglected and payments of bills have also been stopped.”
He urged the government to pay bills above Rs 1 crore in the order in which they were submitted.
The association leaders said that cheques issued by the contractors in the hope of getting payments from the government were bouncing, landing many of them in criminal cases.
The state government, which took up Jalayagnam with an estimated cost of Rs 1,50,000 crore, has spent Rs 47,000 crore so far.
The contractors alleged that the government had also stopped payments for other projects such as Rajiv Swagruha.
Meanwhile, Mr Rosaiah directed irrigation officials to focus on projects which were in an advanced stage of completion.
The Chief Minister reviewed projects in Rayalaseema region and directed officials to ensure release of water to the full area under irrigation of 2.83 lakh acres under Telugu Ganga, Guru Raghavendra and Gundlakamma by June 2010. He also identified Chitravathi balancing reservoir, Lingala, Pulivendula branch canal, Mylavaram and Srisailam Right Branch canal as projects into which partial release of water should be taken up by the same period.
Business, andhra news,
The major irrigation minister, Mr Ponnala Lakshmaiah, later said that the government had always given priority to pay the bills of the contractors. He added that Mr Rosaiah made it clear that Jalayagnam would continue to be the flagship programme of the state government.
However, the Builders’ Association of India, which also held an emergency meeting on Tuesday, said contractors were facing lot of difficulties after the death of YSR. “We did not face any problem when YSR was alive since he used to adjust the money for Jalayagnam,” said Mr P. Mohan Reddy, honorary chairman of the association. “After his demise, the irrigation projects have been completely neglected and payments of bills have also been stopped.”
He urged the government to pay bills above Rs 1 crore in the order in which they were submitted.
The association leaders said that cheques issued by the contractors in the hope of getting payments from the government were bouncing, landing many of them in criminal cases.
The state government, which took up Jalayagnam with an estimated cost of Rs 1,50,000 crore, has spent Rs 47,000 crore so far.
The contractors alleged that the government had also stopped payments for other projects such as Rajiv Swagruha.
Meanwhile, Mr Rosaiah directed irrigation officials to focus on projects which were in an advanced stage of completion.
The Chief Minister reviewed projects in Rayalaseema region and directed officials to ensure release of water to the full area under irrigation of 2.83 lakh acres under Telugu Ganga, Guru Raghavendra and Gundlakamma by June 2010. He also identified Chitravathi balancing reservoir, Lingala, Pulivendula branch canal, Mylavaram and Srisailam Right Branch canal as projects into which partial release of water should be taken up by the same period.
Business, andhra news,
Tuesday, November 10, 2009
Mallya to raise $600m equity
Kingfisher Airlines chairman, Mr Vijay Mallya, said on Monday that the company is looking to raise $600 million to pay off its debts.
He said that the company has taken shareholders approval for raising $100 million through rights issue and $100 million through the global depository receipts (GDRs).
Besides these, the company is also in advance discussions with the private equity investors to raise $400 million. “As things are getting better hopefully the valuations will also get better. We are not dependent on just one initiative,” said Mr Mallya on the sidelines of the India Economic Summit here.
He said that the money raised will be used for the airline and also on the reduction of its debts.
Mr Mallya asked the government to review the various tax burdens on the industry.
He said that the aviation industry in India faces two fundamental problems, one is high tax on crude and the other is fuel prices.
He said that the company has taken shareholders approval for raising $100 million through rights issue and $100 million through the global depository receipts (GDRs).
Besides these, the company is also in advance discussions with the private equity investors to raise $400 million. “As things are getting better hopefully the valuations will also get better. We are not dependent on just one initiative,” said Mr Mallya on the sidelines of the India Economic Summit here.
He said that the money raised will be used for the airline and also on the reduction of its debts.
Mr Mallya asked the government to review the various tax burdens on the industry.
He said that the aviation industry in India faces two fundamental problems, one is high tax on crude and the other is fuel prices.
Wednesday, November 4, 2009
TCS bags multi-million Cardiff deal
India's Tata Consultancy Services' contract with Cardiff City Council for technology services is a multi-million dollar deal that will run over 15 years, a company source said on Tuesday.
Under the deal signed last week, Tata Consultancy will provide a host of IT services for faster and efficient delivery of services in Cardiff.
Tata Consultancy and its rivals such as Infosys Technologies and Wipro are aggressively vying for deals in markets such as Europe and Asia Pacific to cut their dependence on the US, which brings in more than half the sector's revenue.
According to Ovum's Straight Talk service, the deal is reportedly worth £150 million, spanning 15-years.
Under the deal, TCS will help drive the council's mission-critical Strategic Transformational Change Programme.
Tata Consultancy, a part of the diversified Tata Group that spans commodities autos and services businesses, last month beat forecasts with a 29 percent rise in quarterly net profit helped by demand from recession-hit financial customers.
Under the deal signed last week, Tata Consultancy will provide a host of IT services for faster and efficient delivery of services in Cardiff.
Tata Consultancy and its rivals such as Infosys Technologies and Wipro are aggressively vying for deals in markets such as Europe and Asia Pacific to cut their dependence on the US, which brings in more than half the sector's revenue.
According to Ovum's Straight Talk service, the deal is reportedly worth £150 million, spanning 15-years.
Under the deal, TCS will help drive the council's mission-critical Strategic Transformational Change Programme.
Tata Consultancy, a part of the diversified Tata Group that spans commodities autos and services businesses, last month beat forecasts with a 29 percent rise in quarterly net profit helped by demand from recession-hit financial customers.
Tuesday, October 20, 2009
Wall St scam pits desi vs desi
Preet Bharara made headlines and photos in the New York press, the national media, and in the Indian community in America last Tuesday when he was sworn in as the US Attorney for Manhattan.
There are only 93 US Attorneys in the country, and each one is a prized presidential appointment, none more than the one for Manhattan, whose chief government prosecutor (Bharara's job) will try some of most high-profile cases in the US. His predecessors in the Manhattan office include Rudy Giuliani, who went on to become a national hero, and Louis Freeh, who became the FBI Director.
Few expected Bharara, 40, would be making even bigger headlines before the week ended.
Although President Obama had announced his appointment months earlier and he had been vetted in a Senate hearing since, the speed with which the India-born Bharara moved to bust an alleged insider trading racket within days of his swearing in has upheld the widespread previews that he's a man on a mission. The fact that the bust involved at least three 'desis,' including Sri Lankan billionaire Raj Rajaratnam and Indian-Americans Anil Kumar and Rajeev Goel in what Bharara says is a $20 million scam, has only added to his already considerable allure.
A naturalized American, Preetinder S Bharara was born in Ferozepur, Punjab, and moved with his parents to the US in 1970 when he was an infant. He grew up in New Jersey and graduated from Harvard in 1990 and Columbia Law School in 1993, before embarking on a legal and political path where he was marked as a rising star very early in his career.
After a legal track lasting eight years in two Manhattan law firms, Bharara joined New York Senator Charles Schumer as his chief counsel, a job which brought him into prominence in Washington DC, especially after his fearless exposure of political vendetta in the Bush administration's justice department. The case won him widespread praise and admiration for his even-handed, non-partisan approach.
When Schumer then recommended him to Obama for appointment as a US attorney, it was a shoo-in especially since he had already worked as a prosecutor in the Manhattan DA's office early on in his career.
But on Friday, Bharara rocked Manhattan by going after Raj Rajaratnam, the Sri Lankan billionaire boss of the hedge fund, Galleon Group and serving notice to corporate America, whose reputation is at an all-time low after a string of white collar crimes. "This case should serve as a wake-up call for Wall Street," Bharara said at a news conference, sounding an ominous note to the bastion of world finance.
The charge against Rajaratnam is insider trading. As head of the Galleon Group, Rajaratnam aggressively pursued insider information that many fund managers pride themselves on getting to stay ahead of the curve and make money for clients.
But there are grey areas here, and according to the prosecution, Rajaratnam crossed some red lines in getting non-public information from insiders who were allegedly in in breach of their fiduciary duty.
One of the defendants in the case is Rajiv Goel, an Intel executive, who, as the company's Director of Strategic Investments allegedly gave insider information to Rajaratnam about the chip-maker's investment in a company called Clearwire. This enabled Rajaratnam to make more than $ 500,000 in profit. Anil Kumar, a McKinsey executive who was working on reorganization in the chipmaker AMD, likewise figures in another episode.
Rajaratnam, whose net worth of $ 1.3 billion ranks him as the 559th richest person in the U.S, has denied the charges and confidently asserted that he is innocent. It now remains to be seen if Bharara has bitten of more than he can chew in the Big Apple where he first cut his legal teeth.
World News, NRI NEWS, NRI, Business,
There are only 93 US Attorneys in the country, and each one is a prized presidential appointment, none more than the one for Manhattan, whose chief government prosecutor (Bharara's job) will try some of most high-profile cases in the US. His predecessors in the Manhattan office include Rudy Giuliani, who went on to become a national hero, and Louis Freeh, who became the FBI Director.
Few expected Bharara, 40, would be making even bigger headlines before the week ended.
Although President Obama had announced his appointment months earlier and he had been vetted in a Senate hearing since, the speed with which the India-born Bharara moved to bust an alleged insider trading racket within days of his swearing in has upheld the widespread previews that he's a man on a mission. The fact that the bust involved at least three 'desis,' including Sri Lankan billionaire Raj Rajaratnam and Indian-Americans Anil Kumar and Rajeev Goel in what Bharara says is a $20 million scam, has only added to his already considerable allure.
A naturalized American, Preetinder S Bharara was born in Ferozepur, Punjab, and moved with his parents to the US in 1970 when he was an infant. He grew up in New Jersey and graduated from Harvard in 1990 and Columbia Law School in 1993, before embarking on a legal and political path where he was marked as a rising star very early in his career.
After a legal track lasting eight years in two Manhattan law firms, Bharara joined New York Senator Charles Schumer as his chief counsel, a job which brought him into prominence in Washington DC, especially after his fearless exposure of political vendetta in the Bush administration's justice department. The case won him widespread praise and admiration for his even-handed, non-partisan approach.
When Schumer then recommended him to Obama for appointment as a US attorney, it was a shoo-in especially since he had already worked as a prosecutor in the Manhattan DA's office early on in his career.
But on Friday, Bharara rocked Manhattan by going after Raj Rajaratnam, the Sri Lankan billionaire boss of the hedge fund, Galleon Group and serving notice to corporate America, whose reputation is at an all-time low after a string of white collar crimes. "This case should serve as a wake-up call for Wall Street," Bharara said at a news conference, sounding an ominous note to the bastion of world finance.
The charge against Rajaratnam is insider trading. As head of the Galleon Group, Rajaratnam aggressively pursued insider information that many fund managers pride themselves on getting to stay ahead of the curve and make money for clients.
But there are grey areas here, and according to the prosecution, Rajaratnam crossed some red lines in getting non-public information from insiders who were allegedly in in breach of their fiduciary duty.
One of the defendants in the case is Rajiv Goel, an Intel executive, who, as the company's Director of Strategic Investments allegedly gave insider information to Rajaratnam about the chip-maker's investment in a company called Clearwire. This enabled Rajaratnam to make more than $ 500,000 in profit. Anil Kumar, a McKinsey executive who was working on reorganization in the chipmaker AMD, likewise figures in another episode.
Rajaratnam, whose net worth of $ 1.3 billion ranks him as the 559th richest person in the U.S, has denied the charges and confidently asserted that he is innocent. It now remains to be seen if Bharara has bitten of more than he can chew in the Big Apple where he first cut his legal teeth.
World News, NRI NEWS, NRI, Business,
Gurgaon faces big strike today
Production at one of the country's biggest automobile hubs is set to be hit on Tuesday with a major trade union giving a strike call across the Gurgaon-Manesar industrial belt that houses major automakers as well as
The strike call, given by All India Trade Union Congress (AITUC), comes in the wake of the death of an agitating worker in a clash at the plant of component maker Rico Auto on Sunday in which many other workers were also injured. Suresh Gaur, the Gurgaon district president of AITUC, told TOI that Tuesday's agitation was against the "virtual police inaction" despite the death of the worker at Rico's Gurgaon factory.
"There have been no major arrests as yet and there is hardly any concrete action from the police to bring to book the people behind the incident. We want action, as well as freedom to carry trade union activities that is guaranteed to us by the labour laws of the country," Gaur said.
Gaur said more than 60 companies operating in the area would be impacted by the protest call and claimed that as many as 1 lakh workers would be part of the stir. These include workers from scooter major Honda Motorcycle and Scooter India (HMSI), bike maker Hero Honda's Gurgaon plant, component makers Lumax, Sunbeam, Caparo Maruti, Delphi and Gabriel.
While it is believed that car major Maruti Suzuki -- that has a factory each in Gurgaon and Manesar -- will be relatively insulated from the strike, production at the company's plants also be affected as there would be no work at many of its crucial component suppliers.
Also, movement of traffic in the area is likely to remain disrupted, making it difficult for cargo trucks to make their way. This will not only hit raw material supplies to companies, but also disrupt movement of finished products from factories to dealerships across the country.
Auto industry analysts said if the tense situation persists, as has been the case over the past few weeks, the revenues of companies operating in the area could be impacted. HMSI, the leader in the scooter segment, has already admitted to having lost business in the festive season as production at its plant is down 50% and it has been unable to start a third production line.
TOI had reported on October 10 that the situation has become so bad for the company that it has threatened to move its factory out of India, or at least Haryana, if no solution is found quickly.
Sources said, with still a few days to go for a new government to take charge in the state after election results for the Haryana assembly are announced later this week, a quick solution was not in sight. "Effective talks are only possible after a new government is in place," the sources said.
Dilip Chenoy, director-general of Society of Indian Automobile Manufacturers (SIAM), said the industry body has raised the matter with the central government after many of its members complained of disruption in supplies that was affecting production.
"Incidents like this do not send the right signals to foreign and domestic investors and may prompt companies to rethink their expansion plans. We have already raised this matter with the central government and urged it to act urgently," Chenoy said.
Sources in industry associations said if the trouble escalates, it could even impact the proposed Delhi-Mumbai industrial corridor that is slated to pass through Haryana.
The strike call, given by All India Trade Union Congress (AITUC), comes in the wake of the death of an agitating worker in a clash at the plant of component maker Rico Auto on Sunday in which many other workers were also injured. Suresh Gaur, the Gurgaon district president of AITUC, told TOI that Tuesday's agitation was against the "virtual police inaction" despite the death of the worker at Rico's Gurgaon factory.
"There have been no major arrests as yet and there is hardly any concrete action from the police to bring to book the people behind the incident. We want action, as well as freedom to carry trade union activities that is guaranteed to us by the labour laws of the country," Gaur said.
Gaur said more than 60 companies operating in the area would be impacted by the protest call and claimed that as many as 1 lakh workers would be part of the stir. These include workers from scooter major Honda Motorcycle and Scooter India (HMSI), bike maker Hero Honda's Gurgaon plant, component makers Lumax, Sunbeam, Caparo Maruti, Delphi and Gabriel.
While it is believed that car major Maruti Suzuki -- that has a factory each in Gurgaon and Manesar -- will be relatively insulated from the strike, production at the company's plants also be affected as there would be no work at many of its crucial component suppliers.
Also, movement of traffic in the area is likely to remain disrupted, making it difficult for cargo trucks to make their way. This will not only hit raw material supplies to companies, but also disrupt movement of finished products from factories to dealerships across the country.
Auto industry analysts said if the tense situation persists, as has been the case over the past few weeks, the revenues of companies operating in the area could be impacted. HMSI, the leader in the scooter segment, has already admitted to having lost business in the festive season as production at its plant is down 50% and it has been unable to start a third production line.
TOI had reported on October 10 that the situation has become so bad for the company that it has threatened to move its factory out of India, or at least Haryana, if no solution is found quickly.
Sources said, with still a few days to go for a new government to take charge in the state after election results for the Haryana assembly are announced later this week, a quick solution was not in sight. "Effective talks are only possible after a new government is in place," the sources said.
Dilip Chenoy, director-general of Society of Indian Automobile Manufacturers (SIAM), said the industry body has raised the matter with the central government after many of its members complained of disruption in supplies that was affecting production.
"Incidents like this do not send the right signals to foreign and domestic investors and may prompt companies to rethink their expansion plans. We have already raised this matter with the central government and urged it to act urgently," Chenoy said.
Sources in industry associations said if the trouble escalates, it could even impact the proposed Delhi-Mumbai industrial corridor that is slated to pass through Haryana.
Thursday, October 1, 2009
Tata, Reliance, L&T in race for HSRL
Top business houses of the country are in the race to bag the High Speed Rail Link project, recently given the go-ahead by the government, that will provide connectivity to Bengaluru International Airport. Tata, Reliance and Larsen & Toubro are among the construction majors competing for the 33.4 km rail link to Devanahalli.
Bengaluru Airport Rail Link Ltd (BARL), which is implementing the project, has received request for qualification (RFQ) from five consortiums: Reliance Infrastructure, Pioneer Infratech-Seimens (Tata Group), Larsen & Toubro, Lanco Infra and ITD-TDC.CEM for the Rs 5,767 crore project.
Principal secretary (infrastructure development) V. Madhu told this newspaper that the project has received a major boost with the participation of these top consortiums.
“We are pleased with the responses we have received. It is a prestigious project that will set standards for the way we travel in India,” he said. “This will be the first high speed rail link in the country with a design speed of over 160 kmph.”
Mr Madhu said the consortiums that have qualified for the project will be shortlisted in a month.
“Financial bidding for the project will begin after that. We will be through with the contracts and concession agreement by March 2010 and the spadework will begin by May 2010. The project will be completed in three years and three months. The rail link will be up and running by mid 2013,” he said.
The company that is chosen will design, build, finance, operate and maintain the High Speed Rail Link for 30 years, including the construction period. It will then transfer all systems required for the operation of the HSRL to the state government.
Mr Madhu said two city terminals have been planned where air passengers can check in and colect their boarding passes, at the Police Parade Ground near MG Road and near Hebbal flyover.
“The Cubbon Road facility will be integrated with the MG Road Metro station and parking facilities for over 1,700 cars will be provided there. The transport hub at Hebbal station will also have parking facilities and an integrated bus terminal,” he said.
Wednesday, September 30, 2009
With AI grounded, fares may soar 200%
With Air India hardly operating any flights till October 15, passengers this festive season are in for some hardship. Most airlines, including Air India, have been flying with a good load factor, a situation that is not likely to change till Diwali.
Now, after Air India with a seat capacity of over 35,000 suspended bookings for a fortnight, things are looking up for other airlines — however, as for passengers, not only will it be tough finding accommodation on other airlines, they will be lucky if they can afford the tickets. From January to August this year, 99,000 passengers have flown on the domestic sector and another 19,000 on the international sector by Indian carriers. Of this, AI had a share of 17% or roughly 19,000 passengers.
This season, AI's load had gone up to about 88%, with all other airlines also registering a load factor of over 80%. "This is going to be different from the Jet Airways strike since at that time, airlines were not operating on full load. Most of them had sufficient seats available to accommodate Jet passengers. However, right now, due to the festival season, there is overcapacity in many important sectors. Passengers will have a hard time getting easy bookings due to this," said an airline official.
Ankur Bhatia, executive director of Bird Group says private airlines will be able to absorb most of the excess passenger load but tickets for high-demand sectors could be sold at a premium. "Since last year, loads in the corresponding period have gone up already by 11%-12%. Thanks to the strike, the load factor for private airlines will easily go up to over 90% and low-cost carriers may benefit more, specially if fares go up. A lot of government (employees) travel, which were otherwise booked on AI, will also move to these airlines and for them it wouldn't matter if fares were to rise by 10%-15%. However, since there has been no corresponding increase in capacity, passengers wanting tickets to either prime destinations or at prime times will face problems," he says.
Prices, too, are likely to shoot through the roof. A travel agent in Connaught Place says while not much change is likely to take place at their end, prices for off-the-counter tickets could be as much as 200% higher than normal fares. "Due to non-availability of seats on many sectors, airlines could end up charging exorbitant amounts for the few tickets that are available. Travel agents may still be able to offer reasonably priced tickets but if one purchases at the airport or at the airline office, they might end up paying through their nose," he said.
By the fourth day of the pilots' strike, even when not all AI flights had been cancelled, prices of tickets on other airlines have started showing an upward curve. A ticket to Ahmedabad from Delhi, available for Rs 1,700 before the strike, went up to Rs 4,500 by Sunday. A Srinagar-Delhi ticket went up from Rs 2,500 to Rs 6,000 in a matter of three hours.
Civil aviation secretary M N Nambiar held a meeting with all airlines on Tuesday to ensure that passengers were not left at the mercy of airlines during this period. "I met all airlines to discuss the impact of AI executive pilots strike. There have been complaints from passengers. I have stressed upon airlines to ensure passenger facilitation.
This would entail not hiking fares to cash in on this situation and inconvenience flyers. We are also talking to airport operators to ensure that baggage is sent to aircraft that passengers of affected AI flights finally take. AI has been told to refund money to passengers who either don't get a connection or don't want to take the alternative," said Nambiar.
Now, after Air India with a seat capacity of over 35,000 suspended bookings for a fortnight, things are looking up for other airlines — however, as for passengers, not only will it be tough finding accommodation on other airlines, they will be lucky if they can afford the tickets. From January to August this year, 99,000 passengers have flown on the domestic sector and another 19,000 on the international sector by Indian carriers. Of this, AI had a share of 17% or roughly 19,000 passengers.
This season, AI's load had gone up to about 88%, with all other airlines also registering a load factor of over 80%. "This is going to be different from the Jet Airways strike since at that time, airlines were not operating on full load. Most of them had sufficient seats available to accommodate Jet passengers. However, right now, due to the festival season, there is overcapacity in many important sectors. Passengers will have a hard time getting easy bookings due to this," said an airline official.
Ankur Bhatia, executive director of Bird Group says private airlines will be able to absorb most of the excess passenger load but tickets for high-demand sectors could be sold at a premium. "Since last year, loads in the corresponding period have gone up already by 11%-12%. Thanks to the strike, the load factor for private airlines will easily go up to over 90% and low-cost carriers may benefit more, specially if fares go up. A lot of government (employees) travel, which were otherwise booked on AI, will also move to these airlines and for them it wouldn't matter if fares were to rise by 10%-15%. However, since there has been no corresponding increase in capacity, passengers wanting tickets to either prime destinations or at prime times will face problems," he says.
Prices, too, are likely to shoot through the roof. A travel agent in Connaught Place says while not much change is likely to take place at their end, prices for off-the-counter tickets could be as much as 200% higher than normal fares. "Due to non-availability of seats on many sectors, airlines could end up charging exorbitant amounts for the few tickets that are available. Travel agents may still be able to offer reasonably priced tickets but if one purchases at the airport or at the airline office, they might end up paying through their nose," he said.
By the fourth day of the pilots' strike, even when not all AI flights had been cancelled, prices of tickets on other airlines have started showing an upward curve. A ticket to Ahmedabad from Delhi, available for Rs 1,700 before the strike, went up to Rs 4,500 by Sunday. A Srinagar-Delhi ticket went up from Rs 2,500 to Rs 6,000 in a matter of three hours.
Civil aviation secretary M N Nambiar held a meeting with all airlines on Tuesday to ensure that passengers were not left at the mercy of airlines during this period. "I met all airlines to discuss the impact of AI executive pilots strike. There have been complaints from passengers. I have stressed upon airlines to ensure passenger facilitation.
This would entail not hiking fares to cash in on this situation and inconvenience flyers. We are also talking to airport operators to ensure that baggage is sent to aircraft that passengers of affected AI flights finally take. AI has been told to refund money to passengers who either don't get a connection or don't want to take the alternative," said Nambiar.
Thursday, September 24, 2009
‘No joint survey of mining in Sandur’
The Karnataka High Court on Wednesday directed the authorities to refrain from carrying out a joint survey of mining lease in Sandur, Kumaraswamy Range, in Bellary district. A Division Bench comprising Justice V. Gopala Gowda and Justice Aravind Kumar passed the order on an appeal by National Mineral Development Corporation (NMDC) against a single judge order.
Thursday, September 17, 2009
Nifty hits 5000, Sensex up 125 points
Equity benchmarks continued their winning streak with the Nifty surpassing the 5000 mark. The index has surged 92.7 per cent from March
lows. The upside seemed capped in initial trade particularly on account of the weakness in index heavyweight Reliance Industries.
"Sectorally it would be wise to buy into defensive stocks. Capital goods and Cement sector has not participated in this entire rally and going forward we could see these sectors accelerating. Markets are totally driven by liquidity which is keeping the momentum going, once the liquidity fizzle out then we could see some slowdown and sideway movements.
In the short run 4,990 will act as a strong resistance area from where we could see some selling pressure emerging and it would be very important for the Nifty to maintain above the 5,000 mark with huge volume to hold the current momentum. And on the down side 4,780 is the area to keep a watch-out, a break below could weaken the current uptrend. On the higher side if Nifty breaks maintains above 4,990 with huge volumes then 5,060 is the immediate target," said Nirmal Bang Securities in a note.
National Stock Exchange’s Nifty eased some gains and was trading at 4999.75, up 0.83 per cent or 41.3 points. The index surged to a high of 5003.05 after opening at 4958.55.
The Bombay Stock Exchange benchmark Sensex rose by 125 points in opening trade on Thursday on buying in metals and capital goods sector stocks by foreign funds on firming trends in global markets.
The 30-share index rose by 125.45 points, or 0.75%, to 16,802.49 points with metals, banking, IT and capital goods stocks leading the rally. The BSE barometer had gained over 460 points in the past two sessions.
High beta sectors like metals and realty continued their uptrend. BSE Metal Index advanced 2.48 per cent, followed by BSE Realty up 1.79 per cent and BSE Bankex up 1.1 per cent.
Biggest Nifty gainers were HCL Technologies (5.64%), ACC (3.08%), Tata Power (2.7%), Siemens (2.27%) and Ranbaxy Laboratories (2.25%).
Losers comprised BPCL (-2.42%), Reliance Industries (-2.31%), Punjab National Bank (-0.31%), Hero Honda (-0.28%) and Unitech (-0.26%).
Market breadth on BSE remained positive with 1370 advances against 952 declines.
Orchid Chemicals & Pharmaceuticals extended gains after the US Food and Drug Administration approved its piperacillin-tazobactam antibiotic in injection forms, granting it a 180-day marketing exclusivity.
Bharati Shipyard rose as much as 8.31 per cent to Rs 208.65 after it raised its open offer price for Great Offshore after it bought an additional 3.01 per cent stake, raising its holding to 22.48 percent.
lows. The upside seemed capped in initial trade particularly on account of the weakness in index heavyweight Reliance Industries.
"Sectorally it would be wise to buy into defensive stocks. Capital goods and Cement sector has not participated in this entire rally and going forward we could see these sectors accelerating. Markets are totally driven by liquidity which is keeping the momentum going, once the liquidity fizzle out then we could see some slowdown and sideway movements.
In the short run 4,990 will act as a strong resistance area from where we could see some selling pressure emerging and it would be very important for the Nifty to maintain above the 5,000 mark with huge volume to hold the current momentum. And on the down side 4,780 is the area to keep a watch-out, a break below could weaken the current uptrend. On the higher side if Nifty breaks maintains above 4,990 with huge volumes then 5,060 is the immediate target," said Nirmal Bang Securities in a note.
National Stock Exchange’s Nifty eased some gains and was trading at 4999.75, up 0.83 per cent or 41.3 points. The index surged to a high of 5003.05 after opening at 4958.55.
The Bombay Stock Exchange benchmark Sensex rose by 125 points in opening trade on Thursday on buying in metals and capital goods sector stocks by foreign funds on firming trends in global markets.
The 30-share index rose by 125.45 points, or 0.75%, to 16,802.49 points with metals, banking, IT and capital goods stocks leading the rally. The BSE barometer had gained over 460 points in the past two sessions.
High beta sectors like metals and realty continued their uptrend. BSE Metal Index advanced 2.48 per cent, followed by BSE Realty up 1.79 per cent and BSE Bankex up 1.1 per cent.
Biggest Nifty gainers were HCL Technologies (5.64%), ACC (3.08%), Tata Power (2.7%), Siemens (2.27%) and Ranbaxy Laboratories (2.25%).
Losers comprised BPCL (-2.42%), Reliance Industries (-2.31%), Punjab National Bank (-0.31%), Hero Honda (-0.28%) and Unitech (-0.26%).
Market breadth on BSE remained positive with 1370 advances against 952 declines.
Orchid Chemicals & Pharmaceuticals extended gains after the US Food and Drug Administration approved its piperacillin-tazobactam antibiotic in injection forms, granting it a 180-day marketing exclusivity.
Bharati Shipyard rose as much as 8.31 per cent to Rs 208.65 after it raised its open offer price for Great Offshore after it bought an additional 3.01 per cent stake, raising its holding to 22.48 percent.
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