• Oxford Plans Chapter ot Study Indian Economy
• Kicking the Habit
• Song of the Road
• BJP Flays CPM for Doubletalk on FDI
• Mukesh Ambani Eclipses Premji as Richest Person
• RIL Overtakes ONGC to Become Largest in m-cap
• ONGC-Millal Wins 3rd Block in Nigeria
• With Big Guns Rolling in, Retail Set for a Boom
• SPV Soon for Overseas Indians
• Anil Ambani is new 3rd Richest Indian
• IOC-Petronas to Invest Rs 400 cr on LNG Terminal at Ennore

• India Third Largest Investor in UK after US and Japan
• Coir Industry to Utilise Eco-Friendly Technology
• Govt set to Scrutinise end use of Public Issue Funds
• Tatas Acquire Corus Group
• Black and White: PM Airs Concern Over Agri Crisis
• Indian E-Governance to get Big Boost
• India Needs a Super Regulatior for Financial Market: Expert
• Mauritius Wants DTAA Sops to Stay
• Pantaloon Retail to form JV with UK firm
• UniverCell with Launch 300 Retail Outlets
• India to Boost Regional Trade: Ramesh

Prince Andrew, the Duke of York, who is visiting India as the special representative of the United Kingdom (UK) for International Trade and Investment, had a meeting with Minister of State for Commerce & Industry Ashwini Kumar here on Monday. India has emerged as the third largest foreign investor in the UK, after US and Japan. In 2005-06, there was 110% rise in the number of UK bound investment projects from India accounting for over 1 billion pound sterling.UK attracts about 60% of Indian investment to Europe and provides Indian business a gateway for the European market. UK, the Europe's largest e-commerce market, offers immense possibilities for Indian companies in the telecommunication, IT, electronic hardware and the services sector etc.Ashwini Kumar in particular focussed upon possibilities for expansion of the Indo-UK trade and investment in manufacturing, infrastructure, IT, service sector, food processing, textile machinery and advance technology products. Andrew spoke of the contribution of the Indian diaspora in UK's economic development and hoped for a further consolidation of Indo-UK relationship through the deepening of bilateral economic and political relations.

Courtesy: www.dailypioneer.com, October 31, 2006

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Oxford University is breaking new ground with plans to set up a business-research centre in India - the first one outside the United Kingdom - to study the country's rapidly expanding economy. According to Professor Colin Mayer, dean of Oxford University's Said Business School, the university would invest £10 million (Rs 85 crore) initially to set up the research centre which will study a wide range of issues - from infrastructure and education to social entrepreneurship and business taxation- related to India. "This is the first centre outside the United Kingdom and will be a huge commitment as far as Oxford university is concerned. There will be a study centre in Oxford to lead the research work in India," said Mayer. The centre is expected to be operational by next year. "For outsiders, the growth of India is a lesson to learn and for the country, there are a lot of challenges. We are bringing international attention to the success of India and trying to involve policymakers and corporate India to address issues related to infrastructure and education in the country," said Mayer. The Oxford's India centre would have representation from the business world as well as from policymakers, he added. "The policymakers and business heads will guide the centre. We are in the process of designing the nature of the advisory board of the center in India," he said. Maintaining that the country has got a lot of entrepreneurial excellence, Mayer said Oxford had plans to polish those skills.

Courtesy: www.hindustantimes.com, October 29, 2006

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Coir industry cannot be blamed anymore for polluting the backwaters and other water bodies. The industry is all set to utilise the eco-friendly new technology developed by the Coir Board for retting coconut fibre instead of the age-old retting process followed by the industry, which involved depositing fibre in water bodies for around three days.

Pollution free
The practise of retting fibre in water bodies has resulted in large-scale pollution. The coconut fibre being used by the industry is at present imported from the neighbouring States. There fibre is being extracted from chemically-treated raw coconut husks using machines. That fibre needed to be kept immersed in water for a few days to make it soft and to impart golden colour to the fibre. At the same time, retting causes chemicals that stick on the fibre to get dissolved in water. According to studies retting causes large-scale destruction to the fish wealth of backwaters and other water bodies in the coastal areas of the State. Moreover, the foul smell emanating from water bodies where retting was being done cause untold difficulties to those who live nearby.

Technology welcomed
State general secretary of small-scale coir manufacturers' association M.P. Pavithran said the coir industry in general welcomed the new coir retting technology developed by the Board. Mr. Pavithran said several cooperative societies in the coir sector tested the new technology developed by the Board and found it worth adopting. Mr. Pavithran said the new technology for retting involved spraying a solution `Coir Ret' developed by the Board over layers of coconut fibre and keeping it for a day. The solution is based on castor oil and is eco-friendly. Mr. Pavithran said the imported fibre taken from raw husks was found to lose its golden colour even after retting but the fibre treated using Coir Ret was found to retain its colour.

Directive
Meanwhile, the Kerala State Pollution Control Board asked all manufacturers to adopt the new technology and stop retting of fibre in water bodies. A Pollution Control Board communiqué said all manufacturers of coir products should adopt the new technology in three months. The PCB would be forced to take action against those who failed to implement the order. On the order of PCB, Mr. Pavithran said the manufacturers of coir mats welcomed the PCB move. He said there was need for keeping the water bodies pollution-free, as it was essential for public health. Moreover, the new technology was more economical, as it minimised the wastage of fibre, he added.

Courtesy: www. hindu.com, October 25, 2006

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In overcoming tobacco dependence, you will have to tackle two problems-the addiction to nicotine and the smoking habit itself, Scientific evidence shows that best results are achieved when support and medication are used simultaneously, Quitting with a group of other people who want to quit is a great way of getting support, and the best predictor of smoking cessation success is past attempt(s) at quitting. It is useful to be prepared for the period after the last cigarette. Some of the nicotine withdrawal symptoms that one should be prepared to brace are: craving to smoke, irritability, insomnia, reduced concentration, headache, cough, constipation, dry mouth, fatigue, etc. The most common methods to quit smoking are nicotine replacement therapy (NRT) and smoking cessation support and counselling,

NRT involves pharmacological aids that are clinically proven to help with withdrawal symptoms such as cravings and urges. These include transdermal nicotine patches, gums, lozenges, sprays and inhalers. The nicotine nasal spray is perhaps the most effective form of NRT. It is used to relieve withdrawal symptoms and to reduce the cravings for nicotine which people get when they stop smoking. Smoking-cessation support and counseling, on the other hand, involve interacting with others who happen to be in a similar situation. Support groups serve as useful forums where one can share experiences and learn. Counselling also helps a person identify the real reason for the addiction and addresses it more appropriately. Some points to bear in mind

The Five 'd's:

Delay until the urge passes-usually within 3-5 minutes.
Distract yourself: call a friend or go for a waIk.
Drink water to fight off cravings.
Deep breaths: Close your eyes and take 1. 0 slow, deep breaths.
Discuss your feelings \'11th someone.
Willpower is the prime determining factor. Initially, it might be difficult, but willpower becomes stronger with time.
Break your routine. Think and plan how to cope with the circum stances associated with smoking.
Remove temptations like cigarettes, matches, lighters, etc. from your home, car and workplace.
Take it one day at a time. Don't allow yourself to think that you're quitting for good. That will make it seem like a superhuman task.
Reward yourself with extra cash once you stop smoking.
Dealing with relapses: Most people who manage to quit are able to do so only after slipping a few times. You can still do it.

Courtesy: India Today, Aspire November 2006 (Weakly)

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About 100 corporates who raised money from the public in the recent past will soon have to explain to the government how they have used the funds. Company affairs minister Prem Chand Gupta has asked the registrar of companies (RoCs) to scrutinise all public issues of more than Rs 50 crore to ensure that the funds raised have been used for their stated purpose. The scrutiny will apply to all companies that raised money since January 2005. A large number of companies, including Jet Airways, GMR, Deccan Aviation, Suzlon Energy and Reliance Communication, have raised money from the public during this period, and the issue size in most cases is above Rs 50 crore. The ministry's intention is to prevent fly-by-night companies taking investors for a ride when the economy is booming, as has happened in the vanishing companies episode earlier. "The idea is not to pose any hardship to the corporate sector, but to ensure a fair and transparent compliance regime under which corporates can grow without any hassle. Protecting the interests of investors, particularly the small investors, is essential to strengthen their faith in the equity market," Mr Gupta told ET. The Companies Act as well as Sebi's Disclosure and Investor Protection Guidelines of 2000 prescribe the disclosure requirements for raising funds from the market. Officials said not using the funds for their stated purpose will attract company law provisions dealing with mis-statement, diversion of funds and inducement. The violations impose civil as well as criminal liabilities on the promoters and directors of the company. Mr Gupta said the regulatory regime is moving towards greater transparency and self-regulation. The new company law would emphasise on these two aspects, he said. This is in line with the JJ Irani committee on company law, which advised the government that the onus of ensuring the legitimate end-use of funds should be on shareholders. Corporates have to put in place a mechanism for shareholders, lenders and government agencies to access financial information in a non-intrusive manner.

Courtesy: www. economictimes.indiatimes.com, October 24, 2006

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It's almost a runway, wide enough for an airbus-no longer a tale of burnt clutches, overheated engines, or traffic jams
Think about it. You come into the office first thing in the morning, do an hour's work, jump into your car, head to Pune for a lunch appointment and then arrive back at your desk early evening, fresh as a daisy, to wrap up work for the day. Popping down to Pune from Mumbai just like that 11 years ago was unheard of, unless you owned a helicopter or were the prime minister of India, which meant you could close the highway and zip down it until the wheels of your Ambassador fell off. Eleven years ago, driving from Mumbai to Pune for the day meant starting early when it was still dark and, if you were lucky, returning home safely in time for dinner.

Eleven years ago there was no Mumbai-Pune expressway. So when this 94-km, 6-lane road was thrown open to motorists in September 2000, it came as a miracle. Arrow straight and wide enough in most parts for an Airbus to land on, this expressway transformed the tortuous Mumbai-Pune slog into the most relaxed driving experience on the subcontinent.

We never had anything like this before and it was a surreal feeling to drive on a surface that was the other extreme of the monsoon-ravaged roads that led to it. Driving from Mumbai to Pune and back is now a dream but it's hard to forget the nightmares I have had on this trip. In fact, anyone who frequently travelled between Mumbai and Pune before the expressway came up has their tale of horror to tell. Before the expressway, the old Mumbai-Pune highway simply couldn't cope with the ever-increasing volume of traffic. The narrow Lonavala to Kamshet section was particularly notorious and if a truck broke down or had an accident here, traffic piled up in minutes. What invariably made it worse was the infuriating Indian habit of creating a double lane by driving on the wrong side of the road in a misguided attempt to get past the long line of trucks. The problem is drivers coming from the opposite side had the same idea which eventually led to a gridlock that took several hours to disentangle.

The toughest section of the Mumbai-Pune road was undoubtedly the short 7-km Khandala Ghat with its super steep gradient. Overloaded trucks struggled uphill at a glacial pace which slowed traffic down to a crawl and often to a stop. And that was the problem. The minute a truck came to a halt, the 'cleaner' would leap out and place stones behind the wheels to prevent the truck from rolling back. Then it required all the revs the truck's wheezy engine could muster and dexterous use of the clutch to get going. Of course, the stones were never cleared from the road and were left for the following truck or car to run over. Burnt clutches, broken transmissions, overheating engines were some of the terminal problems that left this road littered with broken-down vehicles.

I can't forget a 14-hour ordeal to reach Pune in an old Mahindra Classic which had a soft-top that leaked like board exam papers, seats as hard as granite and an engine that was as energetic as a drunken rhino. Factor in a gearbox that needed Schwarzenegger biceps to operate, no air-con and this was easily one of the most excruciating drives of my life. But I was lucky compared to others. My colleagues from a Pune-based auto magazine took 26 hours to do the 150 km journey. That worked out to an average of around 6 km per hour which is just a little quicker than walking pace! This national highway was clearly a national disgrace. Thank God something was done about it.

The Mumbai-Pune expressway has completely transformed the concept of commuting between these two towns. The train is now less convenient and that's resulted in a sharp drop in passengers for the railways. And if you aren't catching a connecting flight, the plane isn't necessarily quicker.

By its very nature, the new expressway encourages you to drive non-stop between Mumbai and Pune and this means that some of the long-standing traditions of the old highway are gone. I do miss the customary stop at Ramakant's in Khapoli for the most delicious puri-bhaji to fortify you for the rest of the journey. In the days of Padminis and Ambassadors, Khapoli was also the point where radiator water was topped up in preparation for the Khandala Ghat. At Lonavala, a stop at Cooper's to pick up fudge and 'kopra-pak' was also a tradition which is now gone, as the expressway skirts past this weekend holiday town, making a detour to Cooper's too inconvenient except for diehard addicts.

Driving from Mumbai to Pune is no longer the adventure it was 11 years ago and that's not only because of the expressway. The cars in the past decade have become safer, more comfortable and far more reliable. Breakdowns are becomingly increasingly uncommon, you don't have to open your bonnet before hitting the highway and the best part is that crippling traffic jams are a thing of the past. This leads me to another point; traffic congestion in India is not because of too many vehicles but because of too few roads. Whichever way you cut it; cars per square km, cars per person, the simple fact is that India is still under-motorised.

It's not just the Mumbai-Pune stretch which has been transformed. Drive from Delhi to Jaipur or Chennai to Pondicherry, and you're greeted by superbly surfaced 4-6 lane roads. And once the Golden Quadrilateral is complete, long-distance driving will have a new dimension. But though we have 21st century cars and roads, our driving habits still belong to medieval times and in today's high-speed environment this could spell a recipe for disaster. But it's not speed that is the true killer. You can kill yourself in a motorised wheelchair if you don't know how to stop and steer. This new driving environment calls for a basic level of driving expertise which is seriously absent in this country. India has possibly the worst drivers in the world (along with China I am told) and the root cause for this is a farcical driving test which is known to churn out licenced drivers in 20 minutes and that's including the paperwork. Unless driving licensing is made tougher and there is proper training and education, there is little hope for road safety to improve. Let's hope the next 11 years of Outlook will see our driving skills match the cars and roads we have.

Courtesy: OutLook India, October 16, 2006

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Excited Indian voices reverberated through the corridors of Deutsche Bank's London headquarters on Friday morning as beaming Tata Steel executives celebrated their company's acquisition of the Anglo-Dutch firm Corus Group in a deal that would create the world's fifth biggest steel company. The £ 4.3 billion (Rs. 36,650 crore) deal, the culmination of hard negotiations over months, represents the largest Indian takeover of a foreign company and Tata Steel's first expansion outside Asia.

"Defining moment"
Ratan N. Tata, Chairman, Tata Sons, hailed the acquisition as a "defining moment" for his company and consistent with its strategy of growth through international expansion. "It is a very exciting moment for both companies because the deal pulls together two companies which have a similar global vision," he said, announcing the deal at a press conference soon after Corus confirmed the takeover. Mr. Tata stressed that Corus would retain its identity in the "foreseeable future" and remain an Anglo-Dutch company with the existing management structure. In a brief, unemotional speech, Mr. Tata sought to clear the air, which in recent weeks has been thick with speculation, that it was "not an opportunistic, agenda-driven" deal but was built on a shared vision of a "global strategy." "Corus and Tata Steel are companies with long, proud histories. We have compatible cultures of commitment to stakeholders and complementary strengths in technology, efficiency, product mix and geographical spread. Together we will be even better equipped to remain at the leading edge of the fast changing steel industry," he said.
For B. Muthuraman, managing director of Tata Steel, who had been personally involved in the negotiations, the agreement had a special flavour. He spent the morning explaining its finer points, first to an array of domestic and international analysts, and then to a cynical media. He said Tata Steel had been in the forefront of steel industry for 99 years and the deal reflected its commitment to remain at the cutting edge of the new global market. It was a step towards greater global consolidation of the steel industry. Mr. Muthuraman sought to allay fears of job losses at Corus as a result of the takeover and planned cost-cutting. He said the threat to jobs would have been greater had the deal not taken place. "The deal makes it more competitive and that means more job security," he said, though he did not rule out redundancies in future.

Right partner
Jim Leng, Chairman of Corus, described Tata Steel, which it chose over companies from Brazil and Russia, as the "right partner at the right time and on the right terms." He said: "This creates a well-balanced company, strategically well-placed to compete in an increasingly competitive global environment." The deal, he explained, was prompted by his company's decision to seek access to low-cost production and high-growth markets. Analysts welcomed the acquisition, but some warned that it could trigger a takeover "war." Tata executives, however, vigorously shook their heads.

Courtesy: www.hindu.com, October 21, 2006

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The BJP on Thursday accused the Communist Party of India-Marxist of acting as the front company of Chinese FDI in India, and urged the Centre not to succumb to any pressure for the sake of India's unity and integrity. "It is strange that the CPI-M is batting for Chinese FDI in India, despite being a chronic opponent to FDI," BJP spokesperson Ravi Shankar Prasad said on Thursday."The BJP favours dialogue to have friendly relationship with all neighbouring countries, but nothing should be traded at the cost of internal security. The intelligence agencies have in the past already warned against entering into any kind of dealings in the matters of telecom and ports with a country that poses certain strategic challenges to India," Prasad added."On the one hand, the CPM opposes FDI and on the other favours FDI from China even in the strategic sectors. It is the worst manifestation of double-standards on the part of the CPM," Prasad said.

Courtesy: www.dailypioneer.com, October 20, 2006

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Agriculture sector is facing a crisis, PM Manmohan Singh said on Wednesday, calling for a paradigm shift in agrarian policy and development. In a speech covering all aspects of the farm sector, the PM identified the many problems confronting farmers and suggested ways and means of overcoming them. "There is a crisis in agriculture in many parts of our country," the PM told the Agriculture Summit, adding "The more I travel to interior areas and meet farmers, I get the feeling that in many parts agriculture is being carried out in adverse conditions. However, Mr Singh made no mention about the thousands of farmers who have committed suicide due to rising debts but his remarks appeared to be about them. He admitted that in many areas agriculture was seeing a major transformation for the better, helping farmers to reap the benefits of new technology, additional irrigation, better infrastructure, improved marketing methods and advanced risk management strategies. "It is this duality that we need to tackle," he said. The PM said the challenge was to help pull subsistence farmers out of marginal existence and propel advanced farmers onto the global platform. "I believe the time has come for us to adopt a fundamentally new perspective on rural development and agriculture," he said. While a large number of people will continue to migrate from rural to urban areas, and while urbanisation will continue apace, the rural economy must retain its people and ensure a remunerative livelihood for farmers, he said. The PM said so far the Indian approach to rural development and agriculture had been incremental. "We have not sought a paradigm shift in agrarian policy and agrarian development," he said.

He said the government's endeavour would be to bridge public investment and credit deficit, infrastructure deficit, market economy deficit, and knowledge deficit. He said the government was setting up the National Rainfed Area Authority to promote knowledge-based interventions covering all aspects of farming in rain-fed areas. The prime minister called for better returns for farmers. This may hurt some sections of the middle class to a small extent, but it benefits the farmers who are the backbone of our economy. We need a balanced approach where we provide for the food security of the poorest sections without compromising the returns to farmers... Our strategy must be based on improving the real incomes and quality of life of our farmers. The PM appealed for measures to improve the reach and effectiveness of rural extension services.

Courtesy: www. economictimes.indiatimes.com, October 19, 2006

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In a double-treat of sorts, Reliance Industries' emergence as India's most valued firm has also catapulted its Chairman and Managing Director Mukesh Ambani right on to the top of the country's richest list. After toppling the State-run energy giant ONGC as India's largest corporate house among listed entities after more than four years, RIL's market cap has further swelled to over Rs. 1,65,000 crore taking Mr. Mukesh Ambani's net worth based on his shareholding in group companies to more than Rs. 70,000 crore. His elevation to the top of the country's richie-rich club has pushed Wipro's Azim Premji to the second position with a net worth of about Rs. 64,700 crore. While Wipro has also witnessed a sharp rally in its share price over the recent past, Mr. Premji's net worth has not risen much due to the fall in the total promoter stake in the company. The net worth of Mr. Mukesh Ambani's younger brother, Anil Ambani, has also soared after the recent record-breaking rally in the stock market. Mr. Anil Ambani maintains his position as the country's third richest person with a net worth of over Rs. 61,000 crore.

Courtesy: www.hindu.com, October 16, 2006

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India's e-governance market is on a high growth trajectory. India is expected to spend Rs 4,000 crores during the year 2006 on e-governance. A growth of 35 per cent is expected in 2007 and by 2009, a business opportunity of Rs 10,000 crores is expected by the IT industry from e-governance projects in the country. The growth in e-governance this year is around 30 per cent, from Rs 3,014 crores during 2005. Consultancy outfit Skoch India, has come up with an assessment of the high growth occurring in the e-governance realm. Speaking to this newspaper, Dr Gursharan Dhanjal, vice-president, Skoch Consultancy services, said, "e-governance is going to provide a big business opportunity for IT companies, in the years to come, apart from the crucial social benefits that it brings in for the citizen. According to Skoch India, driving this growth in e-governance will be projects like common services centres of department of information technology that attempt at reaching government services to every nook and corner of the country. Major IT induction plans are underway at both the Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs (CBEC). The large scale project of the ministry of company affairs - MCA 21 - is also aiming to digitise the company records data and fully automate the process.

An interesting example of e-governance at the local level are Lokvani centres in Sitapur District in Uttar Pradesh, which are providing single window grievance redressal services to the citizens. Complaints range from pensions, land disputes and even theft cases that remain unresolved. There are 49 such kiosks in Sitapur and another 500 planned for the entire State. While the State-owned system integrator National Informatics Centre (NIC) has remained a majority player in the e-governance implementation space, private players like Tata Consultancy Services (TCS) have carved nearly 12 per cent market share for e-governance. According to Dr Dhanjal, e-governance can best be described as 'citizen services delivery, with information, communication Technology (ICT) and the receipt of the same by the citizen. He said that in popular perception it is often understood to mean the same as using IT for government administration, across various levels, but e-governance, essentially must include the receipt of the services by the citizen and not merely information management system by government. Skoch is a strategy and management consultancy company with work in eleven countries. In India Skoch actively works towards ICT (Information, Communication, Technology) led improvement of citizen delivery systems and for competitive advantage of the country across segments.

Courtesy: www.asianage.com, October 15, 2006

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Mukesh Ambani-controlled Reliance Industries Ltd has dislodged state-run energy conglomerate Oil and Natural Gas Corporation as India's biggest company by market capitalisation, even as the biggest private sector player in the oil sector on Thursday slashed petrol and diesel prices by about Re 1 a litre in tune with cooling international crude. Reliance shares on Thursday sprinted 2.7% on the bourses to take the company's market capitalisation to approximately Rs 1.63 lakh crore, beating leader ONGC's market value of Rs 1.61 lakh crore. Ironically, Reliance lost its position as the most influential stock on the Sensex to IT major Infosys. Infosys toppled RIL as the most influential stock in Sensex by gaining the highest weightage of 10.91%, giving it the biggest say in the movement of the index and pushing Reliance to the second spot with 10.85% weightage. Riding on Infosys's stunning results coupled with high expectations of robust Q2 results from other bluechips, the BSE sensex, on Thursday gained 184 points to touch 12,537.98 points, crossing the previous second highest level of 12,513.86 clocked on May 9. On marketing front, RIL slashed its prices - the second time in the last fortnight - to bring petrol and diesel at par with rates being offered by state-owned oilmarketing firms in several states. But its rates will still be marginally more than the state firms in the rest of the country. The Reliance rates tally with state-run firms in Daman and Diu, Karnataka and Kerala. The company has brought diesel prices at par with public sector firms in Gujarat but the price of petrol remained 50 paise higher than those offered by the state firms. In Madhya Pradesh, Andhra Pradesh, Puducherry and Tamil Nadu, petrol price was brought at par with the state firms but diesel will continue to be costlier by 25 paise to Rs 1.25 a litre.

Courtesy: www.timesofindia.indiatimes.com, October 13, 2006

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India needs a super regulator for the financial market, an umbrella body supervising all sectors, as instruments of investment become more and more innovative, said Marti G. Subrahmanyam, professor of finance and economics at Stern School of Business, New York University. Underlining the need for a blue print of an optimal regulatory structure, the economist, during his visit to The Hindu on Monday, said India could look at countries like the United Kingdom, Japan and Ireland that either have a single financial sector regulator or propose to establish one. "We should really think seriously ... start on a clean slate," he said to a query on the components of regulation, particularly in the context of the emerging market for hedge funds. According to Prof. Subrahmanyam, who is on the board of many leading corporate entities, including ICICI Bank Limited and Infosys Technologies Limited, a group should study the structure. Apart from recommending a timeframe for implementation of the structure, the group should chalk out strategies for moving with "today's patch work of regulation." Nevertheless, the Securities and Exchange Board of India, despite public criticism and being a relatively young body, had turned out to be one of the most successful regulators in the world. Noting that the role of the Forward Markets Commission, however, was not clear, Prof. Subrahmanyam said: "Now that commodities have become a huge issue, I think the distinction between commodities and securities is technical."

On hedge funds and their regulation, the author of several books on financial markets said, since they supposedly involved sophisticated, rich individuals who could take care of themselves, "I do not see any need for using public resources, whether regulatory or financial." Pointing out that the funds have an ability to get in and get out, he said the country, therefore, should make up its mind on whether such types of investment were required. In the event of allowing them, the rules for the foreseeable future should be set. Prof. Subrahmanyam emphasised the need for regulators to recruit people as qualified as those they regulate. But for this, the salary structures of the regulatory bodies should be different and not pegged on the government scales. On Indian managers, he said while many of the senior managers in India have grown up and learnt to manage in a scarcity economy, the flip side was that some of them might not be able to think freely in a completely free economy. In contrast, the young breed of managers did not encounter such challenges. "The younger generation has exceptionally high confidence levels in comparison to their peers from other countries."

Courtesy: www.hindu.com, October 10, 06

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ONGC Mittal Energy, a JV of state-owned explorer Oil and Natural Gas Corporation and steel baron Laxmi Niwas Mittal, has scored its second success in Nigeria. The company has been awarded an oil acreage, its third there, which was auctioned by government after revoking licence of Nigeria's South Atlantic Petroleum (Sapetro). ONGC Mittal won block OPL-246 by bidding $100 million, beating INC Natural Resources and BG-Sahara. This block is the relinquished area of the billion-barrel Akpo oilfield of Sapetro, part-owned by former defence minister Theophilus Danjuma. ONGC Mittal has already won two blocks - OPL-209 near ExxonMobil's Erha project and OPL-285 where Statoil has struck hydrocarbons. The present block fulfills the Nigerian government's promise of giving three fields to the joint venture as part of a composite deal envisaging huge investments by ONGC-Mittal in building a refinery and power plant. The Cabinet had earlier forced ONGC Videsh, ONGC's overseas investment arm, to pull out of another successful bid for a block belonging to Danjuma's firm for fear that the funds may be used to topple the government. After ONGC Videsh pulled out its successful bid, the block was given to China National Offshore Oil Corporation. ONGC-Mittal has to pay 25% of the $100 million signature bonus committed for OPL-246 this week, failing which it would lose the block to INC, which was designated as the reserved bidder.

Courtesy: timesofindia.indiatimes.com, October 07, 2006

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Mauritius is leaving no stone unturned to ensure continuance of benefits under its double taxation avoidance agreement (DTAA) with India. A delegation of senior officials from Mauritius is arriving here on Thursday to hold parleys with their Indian counterparts. The team would comprise officials from various departments including finance, diplomatic sources said. A meeting between revenue secretary KM Chandrashekhar and his Mauritian counterpart is part of the detailed itinerary of the visiting delegation, they added. India is planning to review the DTAA with Mauritius which provides long-term capital gains for a host of foreign institutional investors (FIIs). The Mauritius side does not want the existing arrangement - which is unique - to be disturbed. The Mauritius team is keen to touch upon various issues related to the comprehensive economic cooperation agreement (CECA) with India, the sources said. India has already offered to provide duty sops for Mauritian sugar, garments and rum, subject to quantity ceilings. While tariff concession for goods is being discussed under a proposed preferential trade agreement (PTA) which would be part of the CECA, the DTAA review is significant since Singapore is also demanding a similar arrangement. Last year, Singapore entered into a CECA with India and is keen to obtain the tax benefit now available only to FIIs registered in Mauritius. India has set up a working group to study the DTAA and to make recommendations for the proposed review. The key changes sought include shifting from residence-based taxation to source-based taxation. As of now, a Mauritian government certificate of residence entitles a company for exemption from capital gains tax.

Courtesy: economictimes.indiatimes.com, October 05, 2006

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The retail opportunity in India is expected to increase to $440 billion by 2010 from the existing $300 billion, while investments in the sector are slated to go up nearly 10 times to $25 billion over the next five years. Some of the big players such as Reliance and Bharti Enterprises have already announced plans to foray into the sector, while foreign retail chains are eyeing the huge opportunity. On Tuesday, there was a flurry of action to show the high billing that the sector is getting. The Tata group announced an alliance with Australian retail major Woolworths, to start a specialised retail chain for consumer durables, while the Dubai-based Landmark group - which runs Lifestyle stores in India - is in talks with Europe's biggest retailer Carrefour for acquiring its franchise. UK retail major Tesco indicated it will announce its Indian plans later this month. Tata's new venture, Infiniti Retail Limited will be a 100% subsidiary of Tata Sons and offer over 6,000 products across eight categories. "This will be a specialised retail chain for consumer electronics and durables," said Tata Sons' director R K Krishna Kumar. Carrefour is in talks with Landmark Group for opening up to 200 stores in India, Landmark chief executive Micky Jagtiani said. "We are in India and food retail is a natural extension for us," Jagtiani said, declining to say how much the plan may cost. Landmark is also in talks with as many as two other retail companies about developing outlets, Jagtiani said, declining to identify them. The hypermarket route has emerged as one of the most preferred formats for global retailers entering India, says Arvind Singhal, chairman, Technopak. In most emerging retail markets, such as Eastern Europe, Latin America and China, hypermarkets have been the major high growth format. Hypermarkets offer consumers with a combination of good prices, overall shopping convenience and experience, product range and quality. Going by trends in consumer spending, the food and grocery segment is the biggest growth driver. Footwear and clothing categories have also seen a higher organised retail penetration (ORP). Footwear has a 22% ORP which is driven by high levels of franchising activities.

Courtesy: economictimes.indiatimes.com, October 04, 2006

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Retail major, Pantaloon Retail India Ltd on Tuesday said it would form a 50-50 joint venture company with UK-based Alpha Airports Group plc, to develop travel retail and food catering business in airports across the country. The board of directors at its meeting recently approved an memorandum of understanding with Alpha Airports Group, Pantaloon Retail informed the Bombay Stock Exchange. A dividend of Rs 2.50 on shares of Rs 10 each (25 per cent) was also declared by the bo ard, it added. The company decided to sub-divide every equity share of Rs 10 each to five shares of Rs 2 each, subject to shareholders approval. After the stock split the authorised share capital of Rs 35 crore would consist of 17.50 crore-equity shares of Rs 2 each, i t added. Alpha Airports Group operates over 150 shops in 15 countries with an annual turnover of over $880 million and has been operating duty-free shops at Cochin International Airport since 2002. The shares of the company were trading at Rs 1,922, up 1.95 per cent at the BSE.

Courtesy: www.thehindubusinessline.com, October 03, 2006

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The government of India is in the process of creating a market-driven, special purpose vehicle (a financial body) that will help to establish a global Indian consortium to facilitate investments by the overseas Indians (OI). This financial body or SPV will arm-distance itself from the government and will have a three-way partnership with the apex trade and business bodies, the states of India and associations of overseas Indians and successful Indian entrepreneurs in Europe. It is also working on establishing an Overseas Investment Centre - a one-stop shop for overseas Indians wanting to invest in India. This is likely to be finalised by January 9, 2007, which is observed as Pravasi Bharatiya Diwas. These several progressive initiatives for attracting overseas Indians to India were made by the minister for overseas Indian affairs of the government of India, Mr Vayalar Ravi, and the joint secretary, ministry of overseas Indian affairs, Mr G. Gurcharan, at the inauguration of the India Calling 2006 India-UK Business Summit in London on Monday. The summit has been organised by the Indian Merchants' Chambers and the London Chamber of Commerce. Mr Ravi said that there are 24 to 25 million Indians in 110 countries and they are the brand ambassadors for the global Indian.

"Their welfare needs mainstream attention," he said. He said that every OI will have free access to India. The ministry is providing a lifetime visa to the OIs to live and work in India but without voting rights. He said the "focus of my ministry is to establish a network." In this context, he said that the rights of overseas Indians would be finalised by January 9, 2007. Explaining the choice of January 9 as Pravasi Bharatiya Diwas, he said that it was on this day that Mahatma Gandhi, the most celebrated overseas Indian, landed in Mumbai from South Africa. Mr Gurcharan, who spoke in the session after the inaugural session, stressed the role of the states in engaging with overseas Indians. "The states," he said, are "the theatre for encouraging MNCs and unless they act, it would be difficult for India to grab the window of opportunity in the global competition." Explaining the role of the Global Indian Business Consortium, Mr Gurcharan said it would provide investment advisory services on taxation, legal requirements, information on capital market investment and investment opportunities in real estate. It will also act as a single-point contact at the national and state level. He said that presently in Maharashtra, the investor needs to contact dozens of agencies and fill 36 different forms. He said that they had analysed 200 investment projects overseas and found that they hit a roadblock at the state levels when getting permission for power, land acquisition and water. Mr Gurcharan said that the government was in an advanced stage of putting this consortium in place and it will be launched by Prime Minister Manmohan Singh on January 9, 2007.

Courtesy: www.asianage.com, October 03, 2006

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The Rs 72-crore Chennai-based UniverCell, a leading cell phone retailer, is going in for pan-India operations by setting up 300 retail outlets in the next two years. "We will be setting up 100 retail outlets by 2007-08 and another 200 outlets by 2008-09 and will be covering 22 states in the country," said Mr Sathish Babu, managing director of UniverCell. The company would be setting up the retail outlets in two formats - large and small outlets. "The large outlets will have 1,000 sq. ft and small will have 500 sq. ft space and will be display handsets of all leading manufactures. We are looking at Tier 1 and Tier II cities for the first phase of expansion. We have identified the locations based on the present mobile subscription base in these cities," he said. The entire expansion is estimated to have a capital outlay Rs 70 crores. Mr Babu said some venture capital funds and private investors were keen to invest in the venture. In the second phase of expansion, the company would adopt the franchisee model in a big way. He said that the cellphone industry has CAGR of 60 per cent and would continue to grow for many more years.

Courtesy: www.asianage.com, October 03, 2006

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Just a little over a year since its birth, the Anil Dhirubhai Ambani Group has moved into the elite group of corporates that boast of more than Rs 1,00,000 crores in market capitalisation, making its chairman Anil Ambani the third richest person in the country. ADAG has become the country's fifth biggest corporate group with a combined market cap of more than Rs 1,06,000 crores, after the Tata Group, Reliance Industries, NTPC and Infosys, following a sharp increase in the M-cap of its group company Reliance Communications. When contacted, an ADAG spokesperson confirmed that the group has achieved a market cap of over Rs 1,00,000 crores following the increase in Reliance Communications' total authorised share capital and market cap. Anil Ambani follows Wipro's Azim Premji and RIL's Mukesh Ambani in terms of their personal wealth, who are believed to have net worth of Rs 60,948 crores and Rs 60,190 crores respectively. The market cap of the ADAG telecom venture Reliance Communications increased to Rs 70,866 crores, from about Rs 42,400 crores previously, as a result of an increase in its total number of shares - which the company spokesperson said was recently approved by the stock exchanges. According to the data available with the stock exchanges, Reliance Capital's current market cap stands at Rs 16,221 crores, Reliance Energy at Rs 14,703 crores, Reliance Natural Resources at Rs 2,995 crores and Adlabs Films at Rs 1,364 crores - taking the group's market cap to over Rs 1,00,000 crores.

The company's authorised share capital has increased following the completion of restructuring initiatives that included merger of some group companies since March. However, while the Anil Dhirubhai Ambani Group has a market cap of over Rs 1,00,000 crores on a consolidated basis, companies like ONGC, RIL, NTPC and Infosys have market cap of over Rs 1,00,000 crores on a standalone basis. The market cap of the Tata Group, after combining the market cap of all the group companies, is believed to be above Rs 2,00,000 crores. TCS has also achieved market cap of more than Rs 1,00,000 crores on a standalone basis, but it slipped to Rs 99,973 crores on September 29. Wipro is the only company in India's corporate history to have achieved a standalone market cap of over Rs 2 lakh crores, which it had reached in February 2000. However, Wipro's current market cap stands at about Rs 75,300 crores. According to the current market cap of the top 10 companies on a standalone basis, Reliance Communications is placed at eighth position, ahead of tobacco and FMCG major ITC and private sector banking major ICICI Bank. State-run energy giant ONGC leads the club with a market cap of over Rs 1.66 lakh crores, followed by Reliance Industries, NTPC, Infosys, TCS, Bharti Airtel and Wipro. Following the increase in the group's market cap, Anil Ambani's wealth, measured in terms of his shareholding in group companies as on September 29, is being pegged at Rs 59,186 crores.

Courtesy: www.asianage.com, October 03, 2006

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The Centre is giving a big push to develop regional trade with neighbouring countries. The Centre plans to spend Rs 850 crores to improve infrastructure, in order to boost regional trade with Nepal, Bangladesh, Pakistan and Burma. The Centre will invest close to Rs 850 crores over the next three years to fully develop 14 land customs stations - eight along the border with Bangladesh, four with Nepal, and one each along the border with Pakistan and Burma - in order to boost trade with the neighbouring countries. Union minister of state for commerce Jairam Ramesh told this newspaper that the Moreh project, which has border trade with Burma, specifically is part of the Prime Minister's Look-East policy, which envisages closer integration of the economies of the Northeast states with Southeast Asia. Mr Ramesh said that out of Rs 850 crores that has been earmarked for development of infrastructure needed to boost trade, Rs 70 crores will be spent at Moreh in Manipur - a bustling town with a population of 50,000, presently the only functional land customs station through which trade across the land route along 1,600 km Indo-Burma border takes place. Preferring to travel the three-hour journey from Imphal to Moreh by road, instead of the usual helicopter, Mr Ramesh visited Moreh along with senior officials of the ministries of home affairs, finance and external affairs. The Moreh project is to be launched shortly and completed in the next year-and-a-half. It is being executed by the public sector company, Rites. The integrated checkpost is a new concept being implemented to manage both trade cargo and passenger movement across the border and provide modern infrastructure facilities and better connectivity. It will greatly facilitate regional trade and also help local communities living in the vicinity of border towns through which trade takes place, the Union minister said. Mr Ramesh said that the value of formal and informal border trade transacted between India and Burma exceeds Rs 2,000 crores. At present, only 22 items are exchangeable under the bilateral border trade agreement. Mr Ramesh revealed that the ministry of commerce has just proposed to the Union government that these restrictions be removed and that trade take place without any commodity restrictions at Moreh, as also with Bangladesh and Nepal. A final decision on this liberalisation is expected shortly. There should be free, full-fledged trade, not just tightly-controlled border trade, said Mr Ramesh. This would benefit the people living in the border areas as well.

Courtesy: www.asianage.com, October 03, 2006

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Indian Oil Corp (IOC) and its partner, Malaysia's Petronas, will invest about Rs 400 crore to build an LPG import terminal at Ennore in Tamil Nadu. Indian Oil Petronas, the joint venture company floated by IOC and Petronas, will build a 6,00,000 tonnes a year LPG import terminal at Ennore, company sources said. The joint venture, which currently operates a similar terminal at Haldia in West Bengal, would build two cryogenic storage tanks of 10,000 and 15,000 tonnes to store LPG at -42 º centigrade. In neighbouring Andhra Pradesh, the state-run Hindustan Petroleum Corp Ltd (HPCL) has tied-up with Total of France and would be spending Rs 300 crore to set up an LPG import terminal and an underground storage facility at Visakhapatnam. While India is self-sufficient in other petroleum products, it has to import LPG to meet domestic requirements. Sources said Indian Oil Petronas would begin construction of the Ennore terminal early next year and would commission the facility in first half of 2009. The joint venture has appointed Triune as the project management consultant. Petronas has committed to supply 3,00,000 tonnes of LPG to Ennore, reducing dependence on over-stretched Mangalore import terminal. Moving LPG from Karnataka to Tamil Nadu, which estimates say would be 4,50,000 tonnes per annum from 2009, is difficult. While LPG at Ennore would be stored in over-land tanks, HPCL is using natural rock caves 160-metre underground to store imported LPG at Visakhapatnam. HPCL, which currently moves LPG to Andhra Pradesh from Mangalore via a 900-km pipeline, plans to commission the Vizag facility by the second quarter of 2007, the sources said. Both Ennore and Vizag can berth larger vessels as compared to Mangalore, which can only berth LPG carriers with a maximum 20,000-tonnes capacity.

Courtesy: www.thehindubusinessline.com, October 03, 2006

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