New Delhi, September 13
The government said today no frequencies had been allotted for regular operations so far to any organisation and the issue of allotment for 3G is under consideration.

The Communications and IT Ministry said the issue of allotment of 3G spectrum for commercial operations in the country was presently under consideration in consultation with the Telecom Regulatory Authority of India (TRAI).

During the past one year, low- power indoor demonstration of the 3G mobile communication technology and testing of the 3G equipment interface with other existing telecom networks has been allowed for short durations to various equipment vendors, software developers and service providers, as per their request.

For this purpose, power level, which is 1,000 times lower than the normal operational power level has only been allowed and these demonstrations and experiments are limited to the indoor environment.

While permitting, it has been specified that such operations should not cause any interference to other operations. Further, no claim can be made by any equipment vendors, software developers and service providers on these trials frequencies or any other part of the 3G spectrum for regular operations/services.

Spectrum is various frequency bands in which telecom companies operate. Spectrum bands required for wireless telephony are scare in India as most of it is occupied by defence and other government agencies.

Telecom companies want additional spectrum to improve the quality of services and also to launch 3G services, which will bring high-end video and data services on the mobile phone.

Most telecom companies had, over the past six months, made applications for allocation of spectrum for 3G experiments along with equipment vendors like Ericsson and Lucent.

The applicants included companies that use two dominant mobile technologies GSM and CDMA. 

Mumbai, September 13
IDBI Ltd, which won the race for United Western Bank (UWB) leaving behind 16 players, would hold a Board meeting on September 21 to discuss the RBI draft scheme for amalgamation of the UWB with itself, a bank source said here today.

Notably, the RBI yesterday proposed a draft scheme to IDBI Ltd for amalgamating the ailing bank with itself. This came as a setback to the efforts of the Government of Maharashtra which, along with Sicom and HDFC Group, had proposed a rehabilitation package to ensure continuation of the independent entity status of the Satara-headquartered bank.

As per the draft scheme, IDBI will have to make an upfront payment in cash of Rs 28 per share in respect of every fully paid-up share in the UWB to investors as on a date to be decided by the Government later.

Market sources said the IDBI would have to pay Rs 150.50 crore to the UWB shareholders. Payment made to UWB investors will be considered as provision for bad debt, the scheme says.

The books and balance sheets will have to be prepared as on September 2.

The IDBI will discharge all payments to creditors and depositors of the UWB while the employees will continue in service and will be transferred to the IDBI, the scheme says.

Both banks have been given two weeks’ time up to September 27 to consider the draft scheme, after which the RBI will take a view on the future set-up of the UWB.

Meanwhile, the Board of United Western Bank will meet here tomorrow to discuss the draft amalgamation scheme proposed by the Reserve Bank.

A UWB source said here today that “we will discuss the draft scheme in our tomorrow’s meeting. Our strategy and future course of action will be decided then.” The source said the UWB management was presently examining the proposal. “Our foremost concern is our depositors,” he added.— PTI

Colombo, September 13
Exhorting developing nations to unitedly seek greater say in the International Monetary Fund (IMF) at its annual meeting in Singapore next week, India today opposed the proposed restructuring of quotas in the IMF as it was based on a "flawed" formula.

India has always held that the developing world deserves to have much greater "voice" in the management of international financial institutions, Finance Minister P Chidambaram said here.

Addressing a meeting of the finance ministers of Commonwealth nations, he said: "It is widely believed that the present quota formula of the IMF is hopelessly flawed.

Obviously, an ad hoc quota redistribution based on this flawed formula cannot provide a durable solution." Many countries, including India, find the present quota structure as skewed in favour of the US and Europe. The IMF meeting, slated for September 19-20, will take up the issue of ad hoc increase of quota of China, Korea, Mexico and Turkey.

A member's quota delineates basic aspects of its financial and organisational relationship with the IMF, including voting powers and access to finance.

Mr Chidambaram said participation in the management of both IMF and World Bank has to undergo a change to reflect the current global realities more accurately.

"This is something, all developing economies strongly endorse, and I urge you to join me in Singapore to articulate our united view on this matter," the Finance Minister said.

Mr Chidambaram said the relevance of IMF and the World Bank would eventually be determined by their ability to play a meaningful role in meeting the increasing aspirations of the vast majority of the people for freedom from hunger and for the bare necessities of health and education.

Mr Chidambaram said there must be a deep commitment to fundamental reform and there should be no postponement of a comprehensive review. "My government firmly believes that any exercise intended to enhance the credibility and legitimacy of the IMF has to be based on fundamental reforms in the quota structure."

The current quotas in IMF are roughly determined by the size of a country's gross domestic product, openness to trade and reserves. — PTI

New Delhi, September 13
Nigeria has agreed to enhance crude oil supplies to India by raising the term contract volume and speed up the process of setting up a refinery in the West African state by the Indian Oil Corporation.

This assurance was given by Nigerian Minister of State for Petroleum Dr Edmund Daukoru and the current President of OPEC to Indian Petroleum Minister Murli Deora at a bilateral meeting in Vienna on the sidelines of 3rd OPEC international seminar.

During the meeting, Mr Deora emphasised the need for increasing the volume of crude oil imports by the Indian Oil Corporation on a term contract basis. The Nigerian minister stated that Nigerian crude oil production was on the increase and agreed to favourably consider enhancing the term contract volume.

Dr Daukoru sought Indian investment in the downstream oil sector in Nigeria. Petroleum Secretary M.S. Srinivasan and Chairman, IOCL, were among those present in the meeting.

In his meeting with Mr Abdullah Bin Hamad Al Attiyah, Second Deputy Prime Minister and Ministry of Energy and Industry, Qatar, Mr Deora reiterated India’s keen interest for additional volume of LNG.

He also sought active participation of Qatar in the Indian hydrocarbon and petrochemical sector through appropriate investments.

In a luncheon meeting, Iraqi Oil Minister Hussain Al-Shahristani invited active participation of India in the downstream sector of Iraq.

Mr Deora said ONGC Videsh Limited had already started working on the exploration block 8 in Iraq where the work was suspended in the wake of the war situation. He said OVL was also interested in commencing negotiations on the Tuba field.

New Delhi, September 13
The government has mooted a proposal for the takeover of Bharat Pumps and Compressors Limited (BPCL) by a consortium of public sector companies led by the ONGC.

“A draft Cabinet note for the takeover of BPCL has been prepared and circulated to various ministries for their comments,” the sources said. The ONGC will be joined in this takeover attempt by BHEL and Engineers India Limited.

The proposal for the takeover of BPCL by public sector companies was mooted by the Board for Reconstruction of Public Enterprises (BRPSE) as part of its revival plan. BPCL is a subsidiary of Bharat Yantra Nigam Limited (BYNL), which is a holding company for six public sector companies. It is catering to the needs of sectors like oil, fertilisers and chemicals for various types of pumps and compressors. The company posted profits for the last fiscal after a long interval.

With its takeover by the ONGC, BHEL and EIL, the company would be assured of strong management support and could also get orders from them.— PTI 

New Delhi, September 13
Videocon and Daewoo Electronics were squabbling today, making allegations against each other of breach of a confidentiality agreement in regard to a deal under which the Indian electronics major is to takeover the troubled South Korean company.

In the middle of the negotiations for the takeover of Daewoo by Videocon, the two companies had recently signed a non-disclosure agreement (NDA) in Mumbai and this was cited yesterday by Videocon Chairman and Managing Director Venugopal Dhoot for refusing to confirm that his company was paying $700 million (nearly Rs 3,200 crore) for the buyout.

Videocon officials are said to have been taken aback by a statement attributed to Daewoo Electronics President Lee Seung-Chang that his company was looking for more investments from the new buyer without which the takeover would have no meaning.

Citing the NDA, Videocon officials today declined to talk on the issue but sources in the group said the company has taken up the matter with Daewoo Electronics.

"They (Daewoo) are also bound by the NDA," a source familiar with the development said.

Meanwhile, the deal is said to be on course and the finer details were being worked out, sources said.

Videocon, along with US equity fund Ripplewood, was selected as the preferred bidder for acquiring 97.5 per cent equity stake held by the creditors of Daewoo Electronics. — PTI

Lucknow, September 13
After getting the Dadri gas-based power project, the Anil Ambani promoted Reliance group has bagged an ambitious special economic zone (SEZ) in UP.

Though Reliance is yet to start work on the Dadri power project even after one year of signing the agreement with the Mulayam Singh Yadav Government, the state government has allotted 2,500 acres of prime land worth Rs 6,000 crore in Noida for setting up the SEZ.

The Dadri project had gone on a wrong track after the Centre refused to approve the price of gas to be supplied to the power project. Former Prime minister V.P. Singh-led Jan Morcha had led an agitation in favour of the farmers whose lands were acquired for the project.

The UP Government has allotted 2,100 acres of land for the Dadri project. But the farmers are agitating at the alleged low compensation rate for their farming land, acquired by the government at Rs 150 per square meter.

Recently, the UP government has approved allotment of 2,500 acres of land worth Rs 6,000 crore, for the ADAG Reliance group to set up a special economic zone at NOIDA.

This would be the first such approval given by the UP Government after the new SEZ policy was announced in July last. This proposal has also been approved by the state Cabinet.

A consortium of three companies of the ADAG group: Reliance One World, Reliance Energy Limited and Reliance Infocom will set up the multi-product SEZ at NOIDA. 
— UNI

Mumbai, September 13
The rupee today grew strong by 10 paise to close up at Rs 46.18/19 per US dollar as compared to Rs 46.27/28 on Tuesday as the crude oil prices weakened globally, giving hopes to counter inflation, a trader in the money market said.

Earlier, the domestic currency opened at Rs 46.26/27 and during the mid-morning session traded at 46.32/33. The RBI today fixed the reference rate at Rs 46.22 as compared to the previous rate of 46.34 yesterday. — UNI