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FDI inflows swell to $11.4 billion
Inflation dips
to 4.05 pc
PM’s panel clears RIL’s gas price
Government jobs lose charm
SEBI, RBI differ on banning PNs
Govt rejects probe into IPOs since ’99
No terror outfit in stock market, says FM
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I-T Dept moves SC
Air India ad blitz
Chinese Co to invest $400 m in India
IBM not to exit Daksh
Silver, gold decline
Motilal Oswal IPO soon
Nokia files complaint against Qualcomm
Six infra industries' growth slows down
FIPB nod to ICICI’s 24 pc stake sale
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FDI inflows swell to $11.4 billion
New Delhi, August 17 During January-June 2007, FDI rose by 216 per cent compared to $3.6 billion in the corresponding period last year. “This is a huge jump. The most important thing is that there are largely fist-mile investments and are obviously going to grow in geometrical proportions,” commerce and industry minister Kamal Nath told newspersons today. “India remains a favourite destination of FDI, despite what is going on in the stock market,” Nath said. Major sectors receiving inflows in 2007-08 (up to May 2007) were services, telecom, electrical equipments, real estate and transportation. Vodafone, the world’s biggest mobile operator, topped the list of foreign investors bringing in $801 million. It was followed by Matsushita Electric Works of Japan with $342 million. The British firm acquired controlling stake in the operator Hutch-Essar early this year, while the Japanese company bought Anchor Electricals. GA Global Investments Ltd was the third largest investor with $258 million. The other top investors were Emaar Holdings, Mauritius ($204 million) and L B India Holdings Mauritius Ltd ($118 million) both in real estate sector. Delhi regional office of the RBI registered inflows of $1.3 billion amounting to around 36 per cent of the total inflows during the year. Mumbai, Bangalore, Chennai and Hyderabad are the other major regions, which have received FDI inflows. These five regions constitute two-thirds of the total inflows received. Major investment ($1.9 billion) during 2007-08 came from Mauritius and the other major countries investing are Japan, Cyprus, the USA and Singapore. Commerce minister said the country had received $15.7 billion FDI in 2006-07 as compared to $5.5 billion a year ago. “This is a growth of 185 per cent as compared to the previous year. This is also the first time that FDI equity inflows into India have crossed the $10 billion mark,” Nath added.
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Inflation dips
to 4.05 pc
New Delhi, August 17 The annual inflation rate was 5.08 per cent during the corresponding week last year. It is the ninth consecutive week that the annual inflation has been below 5 per cent and in the past two months the lowest figure was at 4.03 per cent during the week ended June 16. The fuller impact of the RBI’s July 31 decision to increase the CRR to 7 per cent from 6.50 per cent on the inflation would be known in the next few weeks. Though the inflation is well within the RBI’s target level of 5 per cent, analysts feel that there won’t be any fall in interest rate in the short term. The wholesale price index (WPI) for all commodities for the week ended August 4 declined by 0.1 per cent to 213.1 from 213.4 for the previous week. The index for the ‘Food Articles’ group declined by 0.7 per cent to 220.3 (provisional) from 221.8 for the previous week due to lower prices of fruits and vegetables and poultry chicken (5 per cent each), Ragi (3 per cent) and moong and fish-marine (1 per cent each), according to government data released here today. |
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PM’s panel clears RIL’s gas price
New Delhi, August 17 EAC chairman C Rangarajan, who was asked by the Prime Minister to look into the price proposed by RIL, in his report said the formula was broadly in line with industry practices that use a mix of a base price and pass through of traded prices of competing fuels. Sources said he, however, asked for doing away with US dollar linkage so as to remove the anomalies arising out of linkage to the currency exchange rate. RIL's delivered price of $5.5 to $6.2 per million British thermal unit translated into an power generation cost of Rs 2.2-2.5 per unit. This is slightly higher than power generated through domestic coal (Rs 2-2.34 per unit) but lower than power produced from imported coal (Rs 2.75-2.9 per unit). The price would also result in substantial savings in subsidy when fertiliser plants using more expensive naphtha, fuel oil and LNG switch over to RIL fuel, the report said. EAC said as doubts had been raised on RIL's invitation of only power and fertiliser units along its Kakinada-Ahmedabad pipeline having a minimum consumption of one million standard cubic metres to participate in the bidding process, open bids may be invited from all consumers. Sources said if refineries, steel plants and glass units, who burn expensive naphtha and fuel oil, are invited in the bidding process, the gas price would increase by at least one dollar per mBtu. — PTI
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Government jobs lose charm
New Delhi, August 17 According to data available with salary tracking firm PayScale, the median annual salary in a private sector company currently stands at Rs 5,65,214 compared to Rs 2,45,745 in the government entities. The scenario is a far cry from those at the time of independence, when in early 1950s various government departments were established and public sector salaries used to be among the most attractive. Yet, today wages for some of the highest government offices -- including the President of India and the Reserve Bank of India -- are lower than even mid-level executives at various private sector firms. The initial salary of the President of India -- the constitutional head of the country -- was fixed at Rs 10,000 per month, which was considered to be among the highest for any office bearer at that time. However, the President currently earns a monthly salary of just Rs 50,000, a level to which it was raised with effect from 1996, which pales in comparison to the lakhs being paid to senior level private sector executives. Similarly, the RBI Governor used to get a monthly salary of about Rs 7,500 after independence, while the then secretary and treasurer of the Imperial Bank, now known as the State Bank of India, was paid Rs 4,000 a month. In contrast, the biggest of private sector firms paid a salary of just about Rs 5,000 to their general managers and managing directors making the government salaries much more attractive. The situation has, however, reversed with CEOs in private sector banks earning in multiples of SBI chairman’s annual remuneration of about Rs 5,76,000 (about Rs 48,000 a month) last fiscal. Even salaries of some mid-level call centre workers are currently in excess of Rs 50,000 a month -- higher than the monthly wage of chiefs of some public sector enterprises. Global management consultancy firm Hay Group said in its World Pay Report that India’s top-level executives were taking annual salary of $92,750 (more than Rs 38 lakh). Although salaries for top managers in India are currently lower than a number of countries, Hay Group said it might not remain so as the pay was increasing at double-digit rates in India - between 15-20 per cent. Interestingly, average salary in public sector is also rising at a similar pace. The government said in its pre-budget economic survey released earlier this year that the per capita emoluments in public sector rose from Rs 493 in 1971 to Rs 23,056 in 2006. — PTI
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SEBI, RBI differ on banning PNs
New Delhi, August 17 "The Reserve Bank is of the opinion that PNs should not be permitted and accordingly it has suggested that no fresh issuance of PNs be allowed," minister of state for finance P K Bansal said in a written reply. "However, the SEBI has not called for banning PNs," he added. Participatory Notes are instruments through which foreign investors trade in the country's equity and debt markets. Such instruments have raised concern in certain quarters as it is virtually impossible to find out who owns the money being invested in the markets. Bansal said a government-appointed expert group, headed by then chief economic adviser Ashok Lahiri, had examined the issue of PNs and recommended that the current dispensation may continue, he said. As per the SEBI Act, an FII may issue PNs with Indian instruments (equity, debt or derivative) as underlying securities, to a subscriber being a regulated entity. Further downstream issuance of PNs, if any, can also be done to regulated entities only, he said.
— PTI |
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Govt rejects probe into IPOs since ’99
New Delhi, August 17 In a statement in the Lok Sabha, finance minister P. Chidambaram said the SEBI felt that its available resources and time would be better employed for finalising follow up actions and any probe is unlikely to throw up new names other than those already identified by the regulator. After going through 105 public offers during 2003-05, the SEBI had found that irregularities were committed in 21 IPOs, but the Parliamentary Standing Committee recommended that a complete investigation of all IPOs floated since 1999 be undertaken to ascertain the exact number of IPOs where irregularities have taken place. The SEBI was of the view that no irregularities have come to light in public issues launched after its earlier probe and hence there was no need for a fresh one, Chidambaram said. However, the government had accepted with modifications the committee's suggestion of reviewing the system of an integrated intermediary, he said, adding the development of integrated market intermediaries, providing a one-stop shop to investors for the various securities market dealings, is a positive development around the world. — PTI
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No terror outfit in stock market, says FM
New Delhi, August 17 "The government have consulted the Securities and Exchange Board of India (SEBI) and Reserve Bank of India (RBI). The information available does not indicate any surreptitious entry into the stock or real estate market by terrorist outfits," finance minister P Chidambaram said in Lok Sabha today. His statement assumes significance in view of national security adviser M K Narayanan's revelation in February that manipulation of stock exchanges is the new modus operandi used by terrorist groups to raise funds for their operations and fictitious companies have operated in the Mumbai and Chennai stock exchanges. Narayanan had said some of these companies were later traced to terrorist groups. "Isolated instances of terrorist outfits manipulating the stock markets to raise funds for their operations have been reported. Stock exchanges in Mumbai and Chennai have, on occasions, reported that fictitious or notional companies were engaging in stock market operations," he had said, addressing the 43rd conference on security policy in Munich. — PTI
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I-T Dept moves SC
New Delhi, August 17 The I-T Department challenged the decision of Authority of Advance Ruling (AAR) in a case concerning Swiss firm Honeywell Technologies SARL, which had received a fee from Honeywell Turbo India for supplying equipment to Tata Motors. In its appeal, the department represented by solicitor general G E Vahanvati said the AAR ruling would have a snowballing effect as this could lead to similar innovations by foreign companies. This would deprive the Indian exchequer of legitimate taxes, it said. A bench headed by Justice Ashok Bhan issued notice to Honeywell Technologies asking it to respond to the petition. The AAR, on an application by the Swiss company, had early this year ruled that since the assignment contract with Honeywell Turbo was entered in Switzerland, the assignment amount was not covered under the Income Tax Act, 1961. Honeywell group had entered into a pact with Telco (now Tata Motors) in September 2003 for supply of turbochargers for its passenger car. The group later transferred its rights and interests in the Indian business to its 100 per cent subsidiary Honeywell Turbo for 7.5 million euros. — PTI
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Mumbai, August 17
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Chinese Co to invest $400 m in India
Yinchuan, August 17 "The Qingtongxia Aluminium Group's proposal to invest in India has received approval from the National Development Reform Commission (NDRC)," Vice Governor of Ningxia Hui Autonomous Region, Qi Tong-Sheng told PTI here. Qi, also a senior member of the ruling Communist Party of China, said the NDRC, China's top planning body has approved the Chinese company's planned investment of $400 million in two phases in its joint venture with Mumbai-based Ashapura Minechem Co to produce alumina. In the first phase, the 50:50 joint venture project plans to produce 500,000 tonnes of alumina which would be go up to one million tonnes.— PTI |
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IBM not to exit Daksh
New Delhi, August 17 "It is not true...," IBM India/south asia managing director Shanker Annaswamy told reporters here when asked about the various reports on IBM exiting Daksh. IBM, in 2004, acquired Daksh which employs about 20,000 persons and has presence across 21 delivery centres across eight cities in India and the Philippines. IBM India has a headcount of 53,000 persons as on December 2006 and clocked 45 per cent growth year-on-year in the second quarter of 2007. The strategic outsourcing business in India grew by about 150 per cent, Annaswamy said. The company has won eight large and small services deals in the last six months, including a 10-year deal worth $600-800 million with telecom operator Idea.
— PTI |
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Silver, gold decline
Mumbai, August 17 Silver (fineness) .999 fell below the Rs 17,600 barrier. Resuming at Rs 16,725 per kg on thin demand from industrial users, it drifted lower and closed at a six weeks low of Rs 16,945 per kg. The white metal value had decreased by over Rs 900 in the last four sessions. Traders attributed the bearish phase to sustained heavy offers by stockists in view of weaker advice from abroad and upcountry markets.
— UNI |
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Motilal Oswal IPO soon
New Delhi, August 17 “The proceeds from the IPO would be spent on providing working capital, financing facility for broking customers, additional office space and technology advancement for the firm,” Motilal Oswal Financial Services CMD Motilal Oswal said.
— PTI |
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Nokia files complaint against Qualcomm
Helsinki, August 17 The Finnish company has asked the ITC to start an investigation and issue an order to bar imports to the USA of chip-sets and products that allegedly infringe on its patents, Nokia said. “Qualcomm’s unfair trade practises, include importing product, selling products for importation, and/or selling products after importation, and inducing others to import products such as handsets, that infringe Nokia patented technology in certain Qualcomm GSM/ WCDMA and CMDA2000 chip-sets,” Nokia said.
— AP |
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Six infra industries' growth slows down
New Delhi, August 17 The growth of the six infrastructure industries, which have a combined weight of 26.7 per cent in the Index of Industrial Production (IIP), during the April-June quarter was also slow at 6.9 per cent as against 7.4 per cent in the first quarter of 2006-07, according to government data released today. Barring electricity, every other industry — petroleum, refinery products, coal, cement and finished steel — recorded a slow growth in June. The sixth industry — crude oil production — saw a decline in June by 1.8 per cent to stand at 27,74,000 tonnes compared to 28,26,000 tonnes a year ago.
— PTI |
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FIPB nod to ICICI’s 24 pc stake sale New Delhi, August 17 The board had earlier, on June 22, rejected the bank’s proposal to divest 24 per cent stake in ICICI Financial Services, the holding company for insurance business. Also approved by the board, under the finance ministry, were the four bids for five per cent stake in the Delhi Stock Exchange.
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Visa Steel VSNL service Renuka Sugars Jindal contract |
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