Cairn India declares maiden dividend

Cairn India , majority owned by billionaire Anil Agarwal's Vedanta Group, today declared its maiden dividend of Rs 5 per share. The interim cash dividend of Rs 5 on a face value of Rs 10 per share "is proposed to be paid on or before November 15, 2012, to shareholders on record as on November 6, 2012," the company said in a press statement here.

For Cairn India, which had a net cash of Rs 12,442.7 crore as on September 30, this maiden dividend will entail a payout Rs 1,109 crore including the dividend distribution tax of Rs 155 crore. Vedanta Group, which holds 58.82 per cent stake in Cairn India, will get Rs 561.35 crore from the dividend.

Cairn said it was now well positioned to grow by building a balanced portfolio of assets and resources. "While deciding the quantum of payout, the twin objective of stable dividend payout and investment for growth has been kept in view by the Board," the statement said.

Soon after Vedanta bought a majority stake in Cairn Energy Plc of UK, Cairn India in April approved a dividend policy of around 20 per cent of annual consolidated net profits. "The payment of dividend was subject to the completion of corporate reorganisation, which has occurred on October 18," the statement added.

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BoB to keep Rs 120cr for provisioning restructured assets

The Reserve Bank of India raised the provisioning on restructured assets to 2.75 percent from 2 percent earlier. The central bank also cut cash reserve ratio (CRR) by 25 basis points to 4.25 percent. RK Bakshi, ED of Bank of Baroda said their total restructured assets at the moment is around Rs 16000 crore and according to the new rules, they have to set aside Rs 120 crore.

The CRR relief will provide the bank around Rs 700 crore, informed Bakshi. He further added that a lot of easing has taken place on the retail side and NPLs and restructured accounts have been better.

Here is the edited transcript of the interview on CNBC-TV18.

Q: What is Bank of Baroda's aggregate restructured assets and therefore, how much will you have to set aside?

A: Our restructured assets are in the region of around Rs 16000 crore. So our additional setting aside will be around Rs 120 crore.

Q: And how much money would you have made because of the CRR cut, will that match this Rs 120 crore payout?

A: It will be almost half of that. But, if you have to provide Rs 120 crore for one time and CRR is for full year. However, we have less than half a year left.

Q: What is the CRR relief that you are getting?

A: That will be around Rs 700 crore.

Q: Is there any room for cut in your actual lending rates given what the RBI has done? Everyone's pointing out that CRR now is at a decade low and we have had significant cuts. Do you think there is a possibility that we could have atleast a 50 basis points cut in the actual lending rates in the next three to five months?

A: The actual lending rate comprises of two components, one is the base rate and the other is the spread. There are various segments which are requirements. The retail section is already seeing quite a lot of competitive easing or that was the sector which was having some credit growth. There has been a lot of competitive easing.

The major cost in bankers' books is the cost on deposits and that floor is determined by a number of factors including inflation, including competitive pricing by government saving schemes, provident fund schemes and the need that suddenly you should not become too tight on liquidity. The banks have tried to reduce the rates of interest on deposits a little bit but I must say that on the retail side, on the asset side, reductions have been even more than what has been reduced on deposits.

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Airtel launches network experience centre at Manesar

Bharti Airtel today launched a network experience centre (NEC) at Manesar to monitor its various services across India and South Asia from a single location.
    
The earthquake proof facility, which is the first of its kind in India, will monitor Airtel's network performance across services -- mobile, fixed line and DSL broadband, DTH, M-commerce, enterprise, international cable systems and internet peering points.
   
"This is something which I planned several years back when I saw such buildings in the US. This facility will be nerve center of our entire network," Bharti Airtel Chairman and Managing Director Sunil Bharti Mittal told reporters here.
    
The facility, inaugurated by Telecom Minister Kapil Sibal, will act as the central point to gather information from different centers run by the company across the country and South Asia.
   
"It will monitor all Airtel and partner network operations center (NOCs) and in case of any emergency, the operator will have a 360-degree view of any issue, thereby helping to prioritise actions to restore normalcy and reduce resolution time," the company said.
    
Mittal said with the launch of this facility, the company will be able to analyse and deliver seamless experience to over 200 million customers across our verticals from one location.
    
"In particular, this facility positions us to manage the expected surge in data usage on our 3G and 4G networks in years to come and deliver best-in-class experience to our customers," he said.
    
Asked about the investment made by the company for the facility, he refused to share the details, but said such facilities require huge investment.
    
Mittal also added that the resources of the network could also be shared with the government in times of emergency and with other operators too.
    
Speaking of the facility, Sibal said he has never seen anything like this. Describing Mittal as the captain of Indian telecom sector, the minister said the government has to work with the private industry to take the sector forward.
   
"Without private sector, we won't be able to achieve the desired growth," he said. Bharti Airtel CEO (India and South Asia) Sanjay Kapoor said data collected from real time observation of the company's network will help to create possible new revenue stream as well.

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Airports Authority looking at options to recover KFA dues

Moneycontrol Bureau

The Airports Authority of India (AAI) is looking at options of recovering Rs 300 crore which Kingfisher Airlines owes it for using airport infrastructure. V.P. Agrawal, chairman, AAI said he may even look at exploring legal action if the airline fails to clear dues.

"Unless, KFA comes up with a concrete revival plan, we will not allow them to operate at our airports," said Agrawal who further said that he has written to the airline to vacate hangars at Kolkata and Chennai airports. The authority has seized its planes in a bid to pressurise the airline to pay up.

Agrawal expressed concern on the airline's inability to pay dues to it since a long time and added that greater is his concern for banks which have already shown KFA as sub-standard asset-- a category of non-performing assets (NPAs)and made the necessary provision for it. A loan account turned sub standard when it stops repaying for 90 days. Banks have to categorize the same account as doubtful, another level of NPA, if it does repay for one year. 

Also, nothing is clear at this point of time whether KFA will manage to clear AAI dues. Agrawal also said that he has written to the Directorate General of Civil Aviation (DGCA) that the airline's revival plan should include time frame and details  on  payment to  service providers and airports.

 

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Call for hike in telecom tariffs: Bharti Airtel

Bharti Airtel CEO Sanjay Kapoor has called for a hike in telecom tarriffs and says it is imperative for prices to be hiked if the industry were to be kept up and running. On the issue of DOT's possible imposition of a fine on the company for under-reporting revenues, Kapoor said Airtel has always been fully compliant of laws & regulations.

"Is there a need to take tariffs up? I think absolutely yes. The way the industry is performing and the way the prices have come down I think its unprecedented compared to any other part of the world and I think it is at unsustainable levels for most of the industry" says kapoor.

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Maruti exec says new wage settlement to impact margins

Maruti Suzuki , India's biggest carmaker, will see its margins impacted by 15-30 basis points over the next two years as a result of the new wage settlement with its workers, its CFO Ajay Seth said on Tuesday.

Maruti, controlled by Japan's Suzuki Motor Corp, reported a 5 percent fall in profit on Tuesday, its fifth consecutive quarterly decline, after a deadly riot at one of its plants led to a USD 250 million production loss.

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UBS India investment banking head resigns

Swiss bank UBS's head of India investment banking, Ashok Mittal, has resigned, a spokesman for the bank said on Tuesday.

The departure of Mittal, who was named the head of India investment banking at UBS in June of last year, was an isolated incident and there were no other senior-level departures at the India unit at this time, said Mark Panday, Hong Kong-based spokesman for UBS.

Mittal was not immediately available for comment. Prior to joining UBS, he was with Lehman Brothers and had worked as co-head of India investment banking at HSBC.

His resignation follows two high-profile departures from the bank's India unit last year.

UBS's head of India operations, Manisha Girotra, resigned in November of last year. The bank appointed Aashish Kamat, who was its chairman of financial institutions coverage in Asia Pacific, to replace her as chief executive for India.

The Zurich-based bank's India equity capital markets head, Purvesh Shah, also left the bank last year to join British bank Barclays .

UBS unveiled plans on Tuesday to wind down its fixed income business and fire 10,000 bankers as it adapts to tougher capital rules that make it more difficult for investment banks to turn a profit in the wake of the financial crisis.

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Muthoot Finance aims at Rs 7k crore worth biz transactions

Kerala based Muthoot Finance today said it hoped to double its business transactions to Rs 7,000 crore in value terms by the end of this fiscal.

The company made transactions valued at about Rs 3,500 crore in 2011-12, Muthoot Group Executive Director George M George said.
  
"We are definitely looking at doubling our transactions to about 40 lakh this financial year. That will be about Rs 7,000 crore (in value terms). Last year we did about 20 lakh transactions across all our branches (for about Rs 3,500 crore)" he told PTI here.
  
Muthoot Finance offers gold loans to customers and has about 4,000 branches across the country.
  
Referring to the company's assets under management, he said it was hoping to reach about Rs 24,000 crore soon.
  
"We are now bouncing back. On the long run we are looking at about 15 percent growth year-on-year", he said.
  
George was here to announce a scheme which offers assured gift to money transfer for customers during the festive season.
  
The company has tie-up with several international agents including Western Union, Xpress Money, MoneyGram, Royal money transfer, Ezremit, Instant Cash and Transfast.
  
"Currently we make about two million money transfers, this year we aim to double the figures", he said.

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CCI finds no cartelisation among tyre manufacturers

In a relief to tyre makers, the Competition Commission today said it has not found any evidence of cartelisation among the country's tyre manufacturers including Apollo , MRF and Ceat .

In its order, the Commission said there is "no sufficient evidence to hold a violation by the tyre companies Apollo, MRF, JK Tyre , Birla, Ceat and ATMA (Automotive Tyre Manufacturers Association)" of provisions of Competition Act.

Cartelisation generally refers to entities entering into agreements whereby they decide not to compete on price or product or customers. Such practices, which adversely impact overall competition in the market, are prohibited under Section 3 of the Competition Act.

The Commission in June 2010 had directed its Director General (DG) to carry out an investigation on the issue, specifically on the five major domestic tyre makers - Apollo Tyres, MRF, Ceat Tyre, Birla Tyre and JK Tyre.

The DG, investigation arm of the CCI, had concluded that tyre makers violated some provisions of the Competition Act. However, the fair trade regulator said that taking into consideration the act and conduct of the tyre companies/ ATMA, "it is safe to conclude that on a superficial basis the
industry displays some characteristics of a cartel there has been no substantive evidence of the existence of a cartel".

According to the fair trade regulator, as a tradable, the industry has always been open to competitive threats from imports.

"The Commission holds that the available evidence does not give enough proof that tyre companies/ATMA acting together have limited and controlled the production and price of tyres in the market in India," the order said.

All India Tyre Dealers' Federation (AITDF) had filed a complaint against tyre makers alleging that they were indulging in anti-competitive activities.

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Builders unhappy with RBI policy; seek interest rate cut

Realty firms and property consultants today expressed disappointment over RBI's decision to keep key policy rate unchanged and said it was the right time to bring down the borrowing cost for home buyers as well as developers.

"CREDAI has expressed strong disappointment at the RBI's latest credit policy. The Central Bank should shed its negative approach towards the real estate industry," the apex realtors' body said in a statement.

Stating that the cost of funding for real estate is very high, CREDAI President Lalit Kumar Jain said the RBI should come out with a positive policy and facilitate reduction in interest rate.

"We have been pointing out that the real estate industry is not only the 2nd largest employer in the country but also contributes handsomely to the GDP and growth of 400 other industries," he added.

After the recent meetings with Finance Ministry officials, CREDAI had been hopeful that the government and the RBI would come out with "pragmatic policy", Jain said.

Echoing similar views, CBRE South Asia Chairman and Managing Director Anshuman Magazine said: "The RBI's decision to keep the key policy rates unchanged once again is a disappointment for the real estate sector".

"While a cut of 25 base points in the CRR rate does infuse some liquidity, a reduction in the repo rate would have helped boost investor sentiment. The festive season coupled with an expected change in policy rates would have been the ideal time for improving consumer confidence," Magazine said.

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Bhartiya Group launches 125-acre real estate project

Bhartiya Group today announced the launch of real estate project, "Bhartiya City", a 125-acre integrated city near Hebbal here.
    
The eight "districts" of Bhartiya City bring together homes in different formats, work spaces including a large IT SEZ and financial district, shopping district and a high street, hotels, a hospital and a school, among others, the Group said in a statement.
     
Residences in a wide variety of formats and price points to suit many types of Indian families are available under the Nikoo Homes brand, it was stated.

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Hyundai Motor to hike prices by up to Rs 5,000 from Nov

Hyundai Motor India Ltd (HMIL)today said prices of its vehicles across models will go up by up to Rs 5,000 from November 1.

"The price increase has been necessitated by a variety of input costs," HMIL Vice-President (National Sales and Marketing) Rakesh Srivastava said in a statement.
    
HMIL sells a range of models, from entry level Eon with price starting at Rs 2.75 lakh to premium sports utility vehicles tagged up to Rs 25.38 lakh (ex-showroom Delhi).
    
"The price increase would be up to Rs 5,000 across models and would come into effect from November 1, 2012," the company said.

Other car makers have already increased prices of their vehicles. Earlier this month, General Motors India announced hike in prices of its entire range of models by Rs 8,000 to Rs 20,000 depending upon the various models to minimise the impact of adverse currency movement and high input costs.
    
Maruti Suzuki, Honda Cars, Renault and Audi have also raised the prices of their vehicles to offset adverse impact of foreign exchange fluctuation and rising input costs.

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ONGC well in K-G block leaking gas

A deepwater well in a Krishna Godavari basin block operated by state-run Oil and Natural Gas Corp ( ONGC ) has been leaking gas for two months and there are now fears of environment damage due to the uncontrolled flow.

The well G-1-9 in Bay of Bengal has been leaking gas since August-end and all efforts by ONGC to contain the flow have so far been futile.

"This is a very old, drilled some eight or 10 years back. It wasn't producing till now and we had plans to put in on production sometime next year along with other gas finds in the area," a company official said.

However, an uncontrolled flow of gas started from the well around August 30.

After attempting in-house solutions, the company is now looking at outside specalists to cap the well. There are fears that the well may start spilling oil too, which may spell environmental disaster.
    
"We have no idea how much gas (mostly methane) might have spilled but I suppose it must be at least one lakh cubic meters per day," the official said. 

ONGC is developing G-1 field along with neighbouring GS-15. Both the fields are marginal or small finds. G-1-9 well was part of this development through which ONGC had planned to produce 2.7 million standard cubic meters of gas and 9,400 barrels of associated oil daily.

The official said The company has sought help of Coast Guard and Navy as well as neighbouring operators like Reliance Industries -BP combine and Cairn India to control the gas leak. 

ONGC had in the integrated development of G-1 and GS-15 targeted to produce 0.982 million tonnes of oil and 5.92 billion cubic meters of gas by 2020-21.

The project at the time of conception in 2003 was to cost Rs 429.82 crore but the cost was subsequently revised to Rs 1,262.93 crore in 2004 and then to Rs 2218.01 crore in 2010.
    

The company had planned to being production from the fields by April-May but the gas spill may result in delays, he said adding drilling on GS-15 field was completed last August.    

The project had time and cost overrun as the contactor (Clough Ltd of Australia) defaulted in work. ONGC terminated the contract in June 2006.    

Of the two, G1 is a deepwater field and is located 20 km away from the shore. GS15 is a shallow water field. G1 was the first deepwater field to be developed by ONGC.

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PE investment in realty sector drops by 15% in Jan-Sept '12

Private equity investment in the real estate sector declined by 15 percent in the first three quarters of 2012 calendar year to Rs 3,500 crore compared with the year-ago period, according to global property consultant Cushman and Wakefield.

The consultant attributed the drop in PE investments to uncertain investment scenario in the country among others. During the first three quarters of 2011 calendar year, the realty sector had attracted private equity investment worth Rs 4,110 crore.

"The Indian real estate sector has seen a drop of 15 percent in private equity investments in the first three quarters of the calendar year 2012 compared to a year ago," Cushman & Wakefield Executive Managing Director (South Asia) Sanjay Dutt said in a statement.

"The reason for the fall in number of deals was mainly due to a lot of concerns on the government policy front coupled with an uncertain investment scenario, valuation and continued focus on exits for some vintage funds," he added.

Dutt, however, expects that shortfall could be made up in the coming quarter on the back of recent policy initiatives, and opportunities in key markets such as NCR, Mumbai, Pune, Bengaluru & Chennai.

According to the report, the total number of private equity transactions till date in 2012 is 23, marginally lower when compared to same period last year.

The residential segment witnessed the maximum private equity investments with the share of deals of the total private equity investments increasing by 9 per cent in the first three quarters of 2012, the report said.

Mumbai continued to be the preferred destination for private equity investments followed closely by Bengaluru and the national capital region (NCR).

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Zensar wins over USD 21m of new deals in October

Zensar Technologies , a leading global software services company, today announced a surge in its manufacturing and BFSI verticals, winning new deals worth over USD 21 million in October.

Infrastructure and enterprise application services have been key drivers in these recent new wins.

"We have built a new business pipeline of USD 160 million in the past few months and the winning of four key multi-million dollar deals this month across three continents is a great beginning. Our vertically focused solutions have begun to show substantial traction in new applications and upgrades," Zensar chief executive and global head of enterprise business Nitin Parab said in a statement here. Adding to Zensar's Manufacturing portfolio is a new deal for global data centre services project with one of the leading European manufacturers of mobile, fixed networks, multimedia solutions and telecom services.

The scope of the project is to provide 24x7 data centre services for Oracle and HP servers. This will include service desk support, remote technical support, onsite field support and also hardware maintenance support, the release said.

The company has also been selected as a preferred IT partner for their global Oracle implementation, business intelligence and support business by two leading manufacturing companies.

One is a leading manufacturer of industrial testing equipment headquartered in the US with manufacturing centres located in the US, Europe and Asia.

Zensar also cemented its place as a preferred IT partner to the banking industry in South Africa, when it was selected by one of the largest banks in South Africa for the implementation, testing and customisation of their key banking product.

With this win, Zensar now services the top five financial institutions in South Africa.

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United Spirits chief Mallya not sure of Diageo deal

Liquor baron Vijay Mallya does not know whether a deal for UK drinks giant Diageo Plc to take a stake in his United Spirits Ltd will be struck or not, he said on Saturday.

Mallya has been scrambling to raise funds for his ailing Kingfisher Airlines Ltd , and has been in talks with the maker of Johnnie Walker whisky and Smirnoff vodka to sell a stake in United Spirits.

"Whenever we need to say something we will, we keep discussing but we don't know whether a deal will happen or not," Mallya told Reuters on the sidelines of the Indian Grand Prix, which he flew in from London to attend.

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Indian companies created 50,000 jobs in US: Burns

At a time when unemployment is a major issue in the US due to its poor economic status, Indian companies through its massive investments in America have created 50,000 jobs in the country, a top US diplomat said.

"Our economic relationship is very much a two way street. Both of us are focused on attracting growth and investment to our shores. Indian owned Tata factory in Ohio puts thousands of Americans to work, part of the over 50,000 jobs Indian firms have created in the US. Opportunities for small, medium and large American businesses in India are staggering," US Deputy Secretary of State William Burns said yesterday.

Burns added that India is being projected as world's third largest economy by 2025. But 90 per cent of India is still without broadband, 80 per cent of India's infrastructure for 2030 hasn't yet been built, according to McKinsey, India plans to invest one trillion dollars on infrastructure in the next five years alone.

Burns praised the recent Indian decisions with regard to next phase of economic reforms.

"Of course, for our companies to provide the technology and expertise to help India prosper, India's government must create an environment that encourages growth," he said.

He added that India's recent easing of some restrictions on Foreign Direct Investment are promising. Indian multi-brand retail, aviation, power grid and broadcasting companies and markets will be more open to investment, technologies and best practises from all around the world. It will be easier to bring food to market.

He emphasised that greater economic openness is not a concession to the US. It is one of the most powerful tools India has to maintain and expand its growth.

Burn Observe that India has no more important partner than US. Total direct investment of US in India in 2000 was USD 2.4 billion which in 2010 get to USD 27 billion. During the same period Indian direct investment in America grew over USD 200 million to nearly USD 5 billion, which is more than a twenty fold increase. So we have never invested in each other's country to such extent.

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Zee, JSPL trade defamation charges against each other

Zee News  today said it has sent a Rs 150 crore defamation notice to Congress MP and industrialist Naveen Jindal, who too had filed a Rs 200 crore case against the media conglomerate claiming the TV channel had tried to extort money from his company.

"Zee News has granted a three-day time period to Mr Naveen Jindal to withdraw all his unsubstantiated and defamatory allegations against Zee News, failing which Mr Jindal would face civil and criminal actions initiated by Zee News," the media house said in a statement here. At a press conference on October 25, Jindal, who is the Chairman of Jindal Steel and Power (JSPL) had claimed that the Zee News group attempted to "extort" Rs 100 crore from the firm for not airing stories against it on coal block allocation.

Jindal had released a CD claiming that it has records of attempts by Zee editors to strike a purported deal with JSPL. On Thursday, JSPL had filed a defamation suit for Rs 200 crore against four executives of Zee at Mumbai High Court. "Notices for which have already been issued to Subhash Chandra, Puneet Goenka, Sudhir Chaudhary and Sameer Ahluwalia of Zee News and Zee Business.

The case is likely to come for hearing next week at Mumbai High Court," the company said. However, Jindal's charges were strongly denied by the Zee group. "Zee News has condemned and completely rejected the doctored evidence produced by Jindal. Zee News sees this as a deliberate attempt to malign the trustworthy television network," the media house said. JSPL is one of the companies named in the CAG report as one of the beneficiaries of the coal block allocation without auction.

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Reebok eyes sales rebound in 2013

Sat, Oct 27, 2012 at 15:36

German sporting goods maker Adidas AG's struggling Reebok brand expects sales to rebound next year, German magazine Wirtschaftswoche reported on Saturday, citing Chief Marketing Officer Matt O'Toole.

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German sporting goods maker Adidas AG's

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Sebi asks investors not to yield to pressure from Saharas

Sebi today advised investors against yielding to any pressure from "Saharas or their agents" for switching over their investments in two Sahara companies -- SIRECL and SHICL -- to other group companies. In August, the Supreme Court had directed SIRECL and SHICL to refund investors' money worth Rs 24,000 crore within three months with 15 per cent interest per annum for violating norms in raising funds from the public.

Noting that the Saharas have not submitted the relevant documents to it, Sebi in a public notice today said the regulator has been receiving complaints from investors of being forced by Saharas to switch to schemes in its other group companies.

In the notice titled 'Don't be forced!!! Dont' be misguided', Sebi has asked investors "not to yield to any pressure from any person, including Saharas or their agents, for converting or switching over their existing investments in the bonds to any of their schemes..." The apex court had said that if Sahara India Real Estate Corp Ltd (SIRECL) and Sahara Housing Investment Corp Ltd (SHICL) fail to refund the amount, then Sebi can attach properties and freeze bank accounts of these companies.

"The Saharas have not submitted the relevant documents to Sebi, as per the order of the honourable Supreme Court. Sebi has been receiving complaints from investors that they are being forced by Saharas/their agents/officials to switch over their investments to other schemes in Sahara Group Companies like Q Shop Unique Products Range Ltd, Sahara Credit Cooperative Society Ltd, etc.

"Some investors have also complained that their investments have been switched over to said schemes of Sahara Group Companies without their consent," the notice said. The Supreme Court in August had said that SIRECL and SHICL should refund the amounts collected through RHPs dated March 13, 2008 and October 10, 2009 along with an interest rate of 15 per cent per annum to Sebi from the date of receipt of the subscription amount till the date of repayment.

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Reebok eyes sales rebound in 2013

Sat, Oct 27, 2012 at 15:36

German sporting goods maker Adidas AG's struggling Reebok brand expects sales to rebound next year, German magazine Wirtschaftswoche reported on Saturday, citing Chief Marketing Officer Matt O'Toole.

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

Reebok eyes sales rebound in 2013

German sporting goods maker Adidas AG's struggling Reebok brand expects sales to rebound next year, German magazine Wirtschaftswoche reported on Saturday, citing Chief Marketing Officer Matt O'Toole.

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

Reebok eyes sales rebound in 2013

German sporting goods maker Adidas AG's struggling Reebok brand expects sales to rebound next year, German magazine Wirtschaftswoche reported on Saturday, citing Chief Marketing Officer Matt O'Toole.

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German sporting goods maker Adidas AG's

From DJ EU Officials Spain Aid Cap Of 100 Bn Euros 'should Be Enough'

The latest earning numbers FIRST on CNBC-TV18

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United Spirits chief Mallya not sure of Diageo deal

Liquor baron Vijay Mallya does not know whether a deal for UK drinks giant Diageo Plc to take a stake in his United Spirits Ltd will be struck or not, he said on Saturday.

Mallya has been scrambling to raise funds for his ailing Kingfisher Airlines Ltd , and has been in talks with the maker of Johnnie Walker whisky and Smirnoff vodka to sell a stake in United Spirits.

"Whenever we need to say something we will, we keep discussing but we don't know whether a deal will happen or not," Mallya told Reuters on the sidelines of the Indian Grand Prix, which he flew in from London to attend.

21.03 | 0 komentar | Read More

Indian companies created 50,000 jobs in US: Burns

At a time when unemployment is a major issue in the US due to its poor economic status, Indian companies through its massive investments in America have created 50,000 jobs in the country, a top US diplomat said.

"Our economic relationship is very much a two way street. Both of us are focused on attracting growth and investment to our shores. Indian owned Tata factory in Ohio puts thousands of Americans to work, part of the over 50,000 jobs Indian firms have created in the US. Opportunities for small, medium and large American businesses in India are staggering," US Deputy Secretary of State William Burns said yesterday.

Burns added that India is being projected as world's third largest economy by 2025. But 90 per cent of India is still without broadband, 80 per cent of India's infrastructure for 2030 hasn't yet been built, according to McKinsey, India plans to invest one trillion dollars on infrastructure in the next five years alone.

Burns praised the recent Indian decisions with regard to next phase of economic reforms.

"Of course, for our companies to provide the technology and expertise to help India prosper, India's government must create an environment that encourages growth," he said.

He added that India's recent easing of some restrictions on Foreign Direct Investment are promising. Indian multi-brand retail, aviation, power grid and broadcasting companies and markets will be more open to investment, technologies and best practises from all around the world. It will be easier to bring food to market.

He emphasised that greater economic openness is not a concession to the US. It is one of the most powerful tools India has to maintain and expand its growth.

Burn Observe that India has no more important partner than US. Total direct investment of US in India in 2000 was USD 2.4 billion which in 2010 get to USD 27 billion. During the same period Indian direct investment in America grew over USD 200 million to nearly USD 5 billion, which is more than a twenty fold increase. So we have never invested in each other's country to such extent.

21.03 | 0 komentar | Read More

Zee, JSPL trade defamation charges against each other

Zee News  today said it has sent a Rs 150 crore defamation notice to Congress MP and industrialist Naveen Jindal, who too had filed a Rs 200 crore case against the media conglomerate claiming the TV channel had tried to extort money from his company.

"Zee News has granted a three-day time period to Mr Naveen Jindal to withdraw all his unsubstantiated and defamatory allegations against Zee News, failing which Mr Jindal would face civil and criminal actions initiated by Zee News," the media house said in a statement here. At a press conference on October 25, Jindal, who is the Chairman of Jindal Steel and Power (JSPL) had claimed that the Zee News group attempted to "extort" Rs 100 crore from the firm for not airing stories against it on coal block allocation.

Jindal had released a CD claiming that it has records of attempts by Zee editors to strike a purported deal with JSPL. On Thursday, JSPL had filed a defamation suit for Rs 200 crore against four executives of Zee at Mumbai High Court. "Notices for which have already been issued to Subhash Chandra, Puneet Goenka, Sudhir Chaudhary and Sameer Ahluwalia of Zee News and Zee Business.

The case is likely to come for hearing next week at Mumbai High Court," the company said. However, Jindal's charges were strongly denied by the Zee group. "Zee News has condemned and completely rejected the doctored evidence produced by Jindal. Zee News sees this as a deliberate attempt to malign the trustworthy television network," the media house said. JSPL is one of the companies named in the CAG report as one of the beneficiaries of the coal block allocation without auction.

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Sebi asks investors not to yield to pressure from Saharas

Sebi today advised investors against yielding to any pressure from "Saharas or their agents" for switching over their investments in two Sahara companies -- SIRECL and SHICL -- to other group companies. In August, the Supreme Court had directed SIRECL and SHICL to refund investors' money worth Rs 24,000 crore within three months with 15 per cent interest per annum for violating norms in raising funds from the public.

Noting that the Saharas have not submitted the relevant documents to it, Sebi in a public notice today said the regulator has been receiving complaints from investors of being forced by Saharas to switch to schemes in its other group companies.

In the notice titled 'Don't be forced!!! Dont' be misguided', Sebi has asked investors "not to yield to any pressure from any person, including Saharas or their agents, for converting or switching over their existing investments in the bonds to any of their schemes..." The apex court had said that if Sahara India Real Estate Corp Ltd (SIRECL) and Sahara Housing Investment Corp Ltd (SHICL) fail to refund the amount, then Sebi can attach properties and freeze bank accounts of these companies.

"The Saharas have not submitted the relevant documents to Sebi, as per the order of the honourable Supreme Court. Sebi has been receiving complaints from investors that they are being forced by Saharas/their agents/officials to switch over their investments to other schemes in Sahara Group Companies like Q Shop Unique Products Range Ltd, Sahara Credit Cooperative Society Ltd, etc.

"Some investors have also complained that their investments have been switched over to said schemes of Sahara Group Companies without their consent," the notice said. The Supreme Court in August had said that SIRECL and SHICL should refund the amounts collected through RHPs dated March 13, 2008 and October 10, 2009 along with an interest rate of 15 per cent per annum to Sebi from the date of receipt of the subscription amount till the date of repayment.

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DoT to request for EGoM meeting in early Nov

The Department of Telecom will seek time from Empowered Group of Ministers, headed by Finance Minister P Chidambaram, for a meeting in early November to consider the issue of reallocation of spectrum to mobile operators.
    
"We will seek time for a EGoM meeting in early November, before (spectrum) auction starts. Chairman of EGoM will decide on the date," Telecom Secretary R Chandrashekhar told reporters at the Bharat Broadband Network event.
    
He said that recommendations made by Telecom Commission will be placed before the EGoM for final decision.
    
"Final decision will be taken by EGoM on spectrum refarming (reallocation). As per present manadate, this issue is not required to go to cabinet," Chandrashekhar said.
    
Telecom Commission has recommended that existing mobile operators vacate airwaves in the 900 MHz band at the time of renewal of licences in 2014 - a move that GSM players say would cost them over Rs 66,000 crore in replacing infrastructure.
    
According to a study by Analysys Mason, spectrum refarming will call for redesigning of existing networks, mainly through the replacement of base stations commonly known as telecom towers.
    
Citing the study, GSM industry body COAI has said that such a replacement of base stations and deployment of additional sites will result in an incremental capex of Rs 54,739 crore, and incremental annual opex of Rs 11,762 crore.

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Healthcare IT sector gets $194m VC funding in Sept quarter

The global venture capital (VC) funding for the healthcare IT sector continued to be strong as deals worth USD 194 million were announced during the July- September quarter of 2012, says a report. According to a report by Mercom Capital Group, a global clean energy communications and consulting firm, VC funding for the third quarter of 2012 stood at USD 194 million through 37 transactions.

The healthcare IT sector is witnessing a strong uptrend since the third quarter of 2011 and this uptrend is continuing for five quarters in a row, according to Mercom. Under VC funding, money is given by investors seeking private equity stake in start ups and SMEs with strong growth potential.

In Q3 2012, Health Information Management (HIM) companies received the most funding as a technology group with USD 101 million in 20 deals, followed by mobile health companies with USD 39 million in seven deals and social health network companies with USD 26 million in four deals. "Financial activity continues to be strong in the healthcare IT sector with a healthy number of early-stage deals," Mercom Capital Group Managing Partner Raj Prabhu said adding that "mobile health and social health network companies had a strong showing this quarter".

The top funding deal this quarter was the USD 25.5 million raised by Telcare, a mobile health company that uses cellular machine-to-machine technology for diabetes and other chronic illnesses. Other top deals included USD 20 million raised by Connecture, an online health insurance process automation company focused on health insurance exchanges, followed by USD 17 million raised by Doximity, a professional social network for physicians.

Moreover, the sector also witnessed continued strength in Mergers and Acquistion (M&Q)activity, providing investors and companies with plenty of viable exit strategies. There were 37 M&A transactions in Q3 2012 amounting to USD 3.2 billion, of which only ten transactions disclosed details. Among the top M&A transactions, Roper Industries acquired Sunquest Information Systems, a provider of diagnostic and laboratory software solutions to healthcare providers, for USD 1.4 billion, the report said.

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SBI hit by sector's asset quality worries

Shares in State Bank of India fall 1.2 percent on concerns of a potential increase in bad loans in the July-September quarter, after other state-run banks such as Punjab National Bank and Indian Overseas Bank posted a surge in non-performing assets.

Punjab shares fall 6.1 percent after reporting a rise in net NPAs in the July-September quarter to 2.69 percent.

IOB shares fall 6.4 percent after also reporting higher NPAs in the previous quarter.

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Virgin resumes Mumbai-London flights, to invest ­­£300m

Moneycontrol BureauVirgin Atlantic has resumed its London-Mumbai flights after discontinuing it for three years. The airline would be investing 300 million pounds for its India operations.

The British airline had withdrawn services from Mumbai in 2009 due to an economic downturn and had also threatened to withdraw the service from Delhi. "When we were last here we did not have the right slots at Heathrow, we had a tough time. But now we do. So now we can go seamlessly go through London and beyond," Branson said.

The airline is not only resuming the Mumbai-London flights but has also started a new service between London-New York, which would help Indian passengers go onward to the US from London.

Richard Branson, president, Virgin Atlanta said, "India is a very important market for the company in terms of business and leisure travellers. Currently India contributes 5% of the total passengers which it carries globally."

"Nearly one million passengers fly between Mumbai-UK in a year with a 10% growth year-on-year. India's economy is one of the fastest growing economies in the world and hence the airline expects passenger number to rise significantly," says Branson.

Apart from Mumbai, the airline plans to add Bangalore and Goa to its network. Branson further said that the airline currently has a code share agreement with Jet Airways but it would certainly want to get into a bigger global alliance.

Interestingly, Jet Air, has slashed fares on the Mumbai-London sector to less than 10,000 per person (excluding taxes), thereby triggering a price war

Jet is offering 9,990 per passenger (round trip, excluding taxes) on Mumbai-London for 18 days beginning October 29, the day Virgin resumes its India operations..On an average, airlines which operate on the Mumbai-London sector offer a base fare of anythign between Rs 27,000-30,000 otherwise.

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One or two Indian airlines may disappear: Richard Branson

How do you introduce a man who has started his first business venture when he was just 16, create over 400 different companies and tried to travel the world in a hot air balloon? I won't even bother attempting to introduce him because anything that I say will sound cliché and perhaps a tad boring. CNBC-TV18 welcomes you to meet Richard Branson on this edition of Young Turks.

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

Q: Are you planning to buy any Indian aviation company, now with changed rules? Are you going to be the white knight that comes in and saves any of our beleaguered Indian airline companies?

A: Not immediately. From tomorrow, we will start London-Mumbai flights. We are already present on the Delhi-London route. Currently, there is an over capacity in the Indian aviation market which is hurting all the airlines. Sadly, it looks like one or two airline may die. As the rules have changed now we might partner up with someone.

watch for more...

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MP Naveen Jindal accuses Zee TV of extortion, shows video

Congress MP Naveen Jindal has filed a criminal case against Zee TV for a sting operation about his company's alleged involvement in the scam-tainted coal block allocations. Jindal alleged that he was asked for cash to stop the negative story on him.

In a dramatic press conference on Thursday, Jindal also released tapes showing the conversation between a Zee News reporter and his team members. "Media in our country has to be above suspicion. Media has played a crucial role in our country. Jindal Steel and Power has faced an incident on which I want to give a pure version. The way Zee TV has carried the news, it has become important for me to share," Jindal said.

The Zee Television group had on Monday denied the allegation made by Jindal against the channel that it had sought advertisement commitments worth crores of rupees. "This kind of allegation has happened in the past and may happen in the future. It doesn't make any difference to us and we will stick to the truth. These are all pressure tactics," Zee Entertainment Enterprises managing director and chief executive Punit Goenka had said.

Zee News had also alleged that Jindal misbehaved with a team of its reporters after they sought clarifications from him on the allegations levelled against his company for alleged irregularities in allocation of coal blocks. Zee Group Chairman Subhash Chandra had also said his journalists were not involved in any wrongdoing and asserted that the accusations were false.

(With additional information from PTI)

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Kotak Mahindra says retail credit quality may deteriorate

Private-sector lender Kotak Mahindra Bank could see a deterioration in the credit quality of its retail loan book, going forward, its chief financial officer said.

Indian private sector banks have posted robust growth in recent quarters, although worsening asset quality and rising debt restructuring remain serious challenges for the sector.

Earlier on Thursday, Kotak said September quarter net profit rose 16 percent from a year ago to Rs 502 crore. The ratio of net non-performing loans to net advances rose to 0.63 percent from 0.46 a year earlier.

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CESC to acquire 49.5% equity in FirstSource: Sanjiv Goenka

Sanjiv Goenka of CESC told CNBC-TV18 the company will acquire 49.5% equity in FirstSource Solutions for Rs 280 crore. FirstSource in turn would utilise the amount for the repayment of outstanding FCCBs, informed Goenka. CESC is scheduled to buy 5 percent each from three FirstSource shareholders including ICICI, Temasek and Fidelity. Thereafter, CESC would provide an open offer at Rs 12.10 per share.

Goenka further added that the acquisitions would help the company improve across segments and will provide them an opportunity to improve margins and revenues. 

Here is the edited transcript of the interview on CNBC-TV18.

Q: Could you walk us through the contours of the deal with respect to your acquisition or buy of Firstsource Solutions?

A: We have just had a board meeting and the board has approved that we would acquire 49.5 percent of the company, comprising of a direct subscription of 34.5 percent in the company by way of additional shares totaling to about Rs 280 crore. We will buy 5 percent each from three of the existing shareholders, ICICI, Temasek and Fidelity totaling to Rs 120 crore. That will roughly amount to Rs 398 or Rs 400 crore which is 49.5 percent of the company. We will be making an open offer for 26 percent of the shares which will follow immediately thereafter.

Q: With respect to the additional shares which you are purchasing worth Rs 280 crore odd, what price would these be done and what will be the kind of dilution that would entail for the company per se?

A: This will be at a price of Rs 12.10 per share, which is the SEBI formula and we will be at 34.5 percent of enhanced share capital.

Q: The open offer as well, will that also be Rs 12.10 per share?

A: Exactly.

Q: What would be the kind of control you would have on FirstSource with respect to the board membership, in terms of management control with this close to 50 percent stake?

A: We have great confidence in the current management headed by the Managing Director and the Vice Chairman. We would continue with that management. Frankly, if you control the shares then you can also have representation on the board.

Q: What was the rationale for CESC to acquire a stake of around 50 percent?

A: CESC has been looking at investing in a different sector given that the growth opportunities in the power sector are getting extremely long-drawn and somewhat challenging. Returns in the power sector are also not as lucrative as they previously were. With that in mind, we have engaged McKinsey to help us with advice on formulating the strategy for entry into a new sector.

The consultant scanned a number of sectors and then suggested an entry into the BPO sector. This opportunity came about thanks to Isec and ICICI who presented it to us. We saw it and liked it enough to carry out the due diligence process, McKinsey conducted the customer due-diligence, Deloitte conducted the financial due-diligence and Khaitan and Co did the legal due-diligence.

We did interact with the management who renewed our confidence and comfort in them. When we reported to our board, they were completely supportive of the move and we decided to move ahead with the acquisition.

Q: What is the approximate return-on-investment you expect?

A: We expecting a very healthy return because we do believe there is significant upside in this company. We do believe there are possibilities of improving margins, revenues and enhancing the customer base. The current managing director is also extremely capable and competent. So I think there will be a lot of improvement going forward.

Q: What is the return-on-investment you expect?

A: I am not going to forecast a number, but we are very optimistic of positive growth.

Q: What is the total investment that CESC must make, including the open offer and additional share issue and buying that 15-percent stake? What is the amount of investment into Firstsource?

A: Of the Rs 650 crore paid for the acquisition, Rs 280-290 crore will be invested into Firstsource.

Q: Any plans for majority stake? Have you formulated a potential roadmap to increase your stake in a year or six-months?

A: We will take each of the six months as they come.

Q: How does Firstsource plan to use the Rs 280 crore and what happens with respect to the outstanding FCCBs?

A: This will be used for repayment of the outstanding FCCBs.

Q: So would it completely eliminate the outstanding FCCBs?

A: Yes. The infusion of Rs 280 crore along with some additional funds will be used to clear the outstanding FCCBs. The management has assured that the bondholders will be paid on time.

Q: Would Firstsource be left with any kind of a debt after they clear out this chunk of FCCBs?

A: Yes, there will still be some debt, but I am told that the debt-equity levels will be 0.67:1 after our acquistion.

Q: Does CESC plan to invest more funds into Firstsource?

A: That is something that will be decided as the situation evolves, but we do expect this to be a very high-growth opportunity for us.

Q: What will be the impact of this acquisition on CESC's balance-sheet or profit and loss statement?

A: We expect these investments to significantly grow over the next few years and we expect the value of the acquisition to grow. We definitely expect returns from the acquisition to be very good.

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Cabinet approves 10% stake sale in NMDC: Praful Patel

The cabinet approved a proposal on Thursday to sell a 10 percent stake in the state-run NMDC Ltd via a share sale, Heavy Industries Minister Praful Patel told reporters.

The government is looking to raise Rs 30,000 crore selling shares in state-run firms to fund a fiscal gap that is threatening to hit 6 percent of GDP this fiscal year, which ends in March 2013.

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Cognizant to invest $25m for data centres in US, Europe

As part of measures to expand its presence in North American and European markets, IT major Cognizant would initially invest USD 25 million to open additional data centres, the company said today.

"As part of the strategy, the company will initially invest USD 25 million to open additional data centres in Arizona and Virginia in the US, Amsterdam in The Netherlands and Slough in the UK", a company statement said.

These data centres, would further strengthen Cognizant's infrastructure management capabilities and enable clients to maximise value in their IT environment, it said.

"Clients need to modernise their IT capabilities and bring consumer IT models to their users, and at the same time virtualise their infrastructure, rationalise costs and improve productivity through flexible, business models", Cognizant IT Infrastructure Services division Senior Vice-President Robert Boles said.

With the expanded cloud capabilities across our network of data centres, it would greatly enhance the ability to satisfy the client needs, he added.

He said the expanded capabilities help Cognizant to offer clients a fully integrated suite of business solutions, business process services, application development, data services and cloud infrastructure.

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BPCL imposes over Rs 87 lakh fine on gas agency

Bharat Petroleum Corporation Limited (BPCL) has imposed a fine of over Rs 87 lakh on a gas agency in the district for alleged irregularities in supply of cylinders.

The gas agency at Chandkhuri village was allegedly involved in black marketing of domestic gas cylinders and supplying it to commercial establishments on fake cards made in the name of villagers, a BPCL official said. BPCL imposed the fine of Rs 87.57 lakh on the dealer when the matter came to light following investigation by the Food Department of the state government. A case has been registered against the owner of the agency, who is absconding, police said.

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Kingfisher succumbs to pressure, to pay Oct salary to staff

Apparently succumbing to pressure from its employees demanding clearance of salary dues, Kingfisher management on Wednesday said it would expedite payment of October salary ahead of Christmas and claimed that "most" of them had agreed to resume work from Friday.

In a fresh letter to the striking staffers, airline CEO Sanjay Aggarwal said, "We have received several requests asking for status of salary for the duration of partial lock-out period and asking for salary in December 2012 to be paid one week earlier than December 31, 2012.

"I am pleased to confirm that as a goodwill gesture the company will pay full October salary to all employees and we commit to paying the same prior to Christmas, 2012."

Counter to the employees' claims that a majority of them were opposed to the offer made by him earlier, Aggarwal claimed that "most" of them had sent their confirmation to resume duty from October 26. "We request the rest of you to send your acceptance at the earliest," he said.

When contacted by PTI, Aggarwal refused to divulge the source of cash flow for the airline to manage the salary payment.

The employees have been on strike since September 29 demanding payment of salary dues since March this year. The strike had led to the company declaring a lockout from October one, which was followed by suspension of their Scheduled Operator's Permit by aviation regulator DGCA.

The airline employees, who held meetings in Delhi, Chennai, Bangalore and Mumbai, had yesterday rejected the offer of payment of three months' salaries in a staggered manner as part payment of dues and insisted that it should be paid in lumpsum.

However, its Mumbai-based pilots had said they were ready to accept the deal offered by the management as a condition to resume work. Salaries have been pending for seven months.

Aggarwal had yesterday sent out emails to individual employees offering them three months salary by Diwali in mid-November, saying if they accepted the offer, they should send an acceptance note and resume work from Friday, which was objected to by the protestors.

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'Airtel, Infosys, TCS among most sought after employers'

Six major Indian companies, including Bharti Airtel , Infosys and Tata Consultancy Services , have made the cut in list of 20 'Most In Demand Employers' compiled by professional network LinkedIn.

Besides, Wipro Technologies, HCL Technologies and Mahindra Satyam have also found a place in the list, which is topped by Accenture.

The professional network said in India, telecom player Bharti Airtel is the seventh most sought-after company among professionals on LinkedIn.

This was followed by Infosys at eighth spot and Tata Consultancy Services at the ninth place.

Wipro Technologies was 11th, followed by HCL Technologies 13th and Mahindra Satyam 14th.

LinkedIn analysed a large number of companies and published the list among its 175 million members.

"The three companies of Indian origin that feature in the top 10 list of most InDemand employers... are testimony to the increased importance of developing and maintaining employer brand by Indian corporates," it said.

Among others in the top five are Hewlett Packard, Oracle, IBM and Microsoft.

Cognizant Technology Solutions, Vodafone, Deloitte, Amazon, Adobe, Cisco are the others featuring in the list.

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Cairn India is the fastest growing energy company: Platts

Seventy Asian oil and gas companies, including those from India and China, were ranked in the 2012 Platts Top 250 Global Energy Company Rankings based on their financial performance in 2011.

While ExxonMobil maintained its number one position in the list, Cairn India topped the list for fastest growing companies with a three-year CGR of 119.8 per cent, Platts said at the award ceremony held here last night.

Of the 12 Indian companies in the global Top 250 rankings, half appeared on the 50 Fastest Growing list, which included Reliance Industries, Coal India, Indian Oil Corp and Gail, Platts said.

China had 23 companies in the Top 250 list compiled by Platts, a global energy, petrochemical and metal information service provider.

Commenting on the Asian companies performance, Platts President Larry Neal said the Asian companies were outperforming themselves year after year, which reflected the enormous growth and energy demand potential in the region.

The list, however, was dominated by Western oil & gas majors, taking the top eight ranking of the list.

ExxonMobil, which has maintained its number one position on the list for the past eight years, was followed by Royal Dutch Shell, Chevron Corp, BP Plc, OJSC Gazprom, Statoil, Total and ConocoPhillips.

Chinese major PetroChina came in on the ninth spot with Roseneft Oil on 10.

The Platts Top 250 Global Energy Company Rankings, now in their 11th year, are based on data compiled and maintained by S&P Capital IQ, which, like Platts, is a part of The McGraw-Hill Companies.

The 2012 rankings reflect fiscal 2011 financial performance in four key areas: asset value, revenues, profits and return on invested capital (ROIC).

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PMO asks CIL, CEA to work on price-pooling of coal

With impasse over the price pooling mechanism of imported coal remaining unresolved, the Prime Minister's Office (PMO) has asked both Coal India and Central Electricity Authority to work on the issue.

"The PMO has recently asked both CIL and CEA to sit and work on Price Pooling," a top official in the Coal Ministry said.

To offset the impact of high import costs, the Planning Commission has said that CIL should adopt a pooling formula on prices by combining rates of imported and domestic coal.

While a number of private power producers have agreed to the price-pooling for coal, some of the state governments like West Bengal have said such a mechanism was not acceptable to them.

The Coal Ministry had earlier said the matter was under consideration and dialogue was on with the Power Ministry.

Earlier CIL had said that price pooling is a mechanism to implement FSA and "if price pooling is approved then 15 percent supply of imported coal will be not in the cost plus method, but in pooling mechanism."

The CIL board had in September approved the modified fuel supply agreement (FSA) without price-pooling with 65 percent domestic coal and 15 percent imported coal at cost-plus basis.

CEA is also working on a price-pooling mechanism. So far, only 30 power companies, including Lanco and Adani, have signed FSAs with CIL.

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Nissan Motor to hike Micra, Sunny prices from Nov 1

Moneycontrol Bureau

Passenger car maker Nissan Motor India on Tuesday said it will increase prices of its Micra hatchback and mid-size Sunny sedan from November 1, to counter a sharp increase in logistics and transportation costs, apart from rising input costs.

While the prices of Micra and Sunny, both of which are made in India, will go up, the company said it is not raising price of its recently launched made in India multi-utility vehicle Evalia.

"The prices are being revised to partially offset appreciation in input and transportation costs. While all leading automobile companies raised prices earlier this year, we at Nissan absorbed rising input costs and held back the price hike...We have now reached the stage where we have to make an adjustment," said Nitish Tipnis, director - sales & marketing at Hover Automotive India, the national sales company of Nissan in India.

Several automakers, including India's largest passenger car maker Maruti Suzuki , Hyundai Motor, General Motors and Honda had announced a price hike earlier this month.

Meanwhile, Nissan said it hopes to continue to double sales in India to achieve its target of 1 lakh units by 2013.

It plans to add 20 dealers to increase its total network to 95 dealers by the end of the current financial year, to support the sales growth, it said.

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Lupin eyes 15 new drug launches in US by March 2013

Indian drugmaker Lupin plans to launch at least 15 new generic products in the United States in the current fiscal year ending March 2013, as it looks to push up sales in the world's biggest drug market, a top executive said on Tuesday.

"About eight to 10 (from the 15), I would say, will be oral contraceptives," Vinita Gupta, chief executive of Lupin's US unit, told Reuters.

Lupin has launched five products in the US this fiscal year.

The drugmaker had said earlier its September quarter net profit rose 9 percent to Rs 291 crore to beat analyst estimates.

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Kingfisher: Pilots, engineers reject 3-month salary offer

The Delhi, Bangalore and Chennai pilots and engineers have rejected Kingfisher Airlines' three-month salary offer, according to sources. However, a majority of Mumbai pilots and engineers have accepted the salary offer.

Meanwhile, Civil Aviation Minister Ajit Singh refused to intervene in the Kingfisher Airlines mess. He said Kingfisher is a privately owned company and so the government can't intervene and make the airline pay staff salaries. He also said that the payment alone will not be enough to make Kingfisher fly.

Also Read: KFA shares fall 4.6% after staff rejects salary offer

"It is a private company, doesn't come under any ministry. Yes they have a problem, but the government cannot interfere. The Kingfisher problem is very big. They have to give a very sound plan to the government that they can pay taxes and their dues," Ajit Singh said.

Kingfisher's efforts to take off crash landed after it's 6,000 plus employees, who haven't been paid in the past seven months, refused the management's offer of three months' salary before Diwali. They say it's an eyewash and want chairman Vijay Mallya to come to the talking table.

What brought Kingfisher Airlines down?

The airline company was Chairman Vijay Mallya's muse. He chose to run it himself, even deciding to interview air hostesses, pilots and other staff members himself. So did this obsession lead to the company's decline? Apart from Mallya, few others were allowed to run the show. Smallest decisions had to wait for the Chairman's go-ahead, say management insiders.

However, the real crumble began with the acquisition of Air Deccan for which Mallya paid over Rs 550 crore. In a mad rush to fly international, the deal was struck but young Kingfisher was not able to cement the marriage. The low cost model of Deccan clashed with the premium Kingfisher product, resulting in total failure and ultimate grounding of Deccan.

Insiders have also pointed to poor financial management as the other big example. Mallya brought in financial heads at the UB Group to run the show at Kingfisher Airlines. Rivals like Indigo, on the other hand, hired airline finance experts. People used to running a liquor business were unable to grapple with the low-margin airline business.

Mallya borrowed heavily from banks led by the State Bank of India (SBI). The airline which never made profit since the time it launched in 2003 had many takers. Experts say banks could not refuse as it was promoted by India's top liquor brand. Then came the 2008 fuel crisis. Fuel prices skyrocketed but Kingfisher continued to expand. It continued to lease aircraft for its foreign services, despite passenger traffic showing signs of a slowdown.

Leadership was the final nail in the coffin. Mallya never had a professional CEO run his airline. When he got one, it was too little too late. Sanjay Agarwal joined Kingfisher when the airline was already in a tailspin.

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Yes Bank gets board nod for mutual funds foray

Mid-sized private lender Yes Bank has received board approval to foray into the mutual funds business, Chief Executive Officer Rana Kapoor told reporters on Tuesday.

Last month, the bank had received a retail equities broking licence from the Reserve Bank of India, for which it expects to launch operations during 2013-14 fiscal year.

The move will help it bolster its retail business, which has been a key growth area over the last one year.

Earlier on Tuesday, Yes Bank posted a 30 percent growth in net profit led by higher loan growth and fee-based income.

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US prosecutors consider 8-10 yr jail term for Rajat Gupta

US prosecutors are considering a 8 to 10 year prison term for former Goldman Sachs Group board member Rajat Gupta. But, Gupta convicted of insider trading in June has the whos who of the developing and developed world to his side. So far, more than two hundred letters have recommended leniency for him.

The rise of Rajat Gupta in the global corporate world has been nothing short of meteoric. The 63-year old is the most prominent of 70 people convicted since US prosecutors began a nationwide crackdown on insider-trading four years ago.

In June 2012, he was found guilty on three counts of securities fraud and one count of consipiracy for sharing privileged information with friend and Galleon Hedge Fund Chairman Raj Rajaratnam between July 2008 and February 2009. While Gupta was acquitted on the remaining two counts of securities fraud, the convictions themselves carry a maximum prison sentence of 25 years.

Though, US prosecutors are asking for an 8-10 year sentence, Gupta has requested probation in lieu of a jail term and his lawyers have suggested extensive community service with troubled youth in New York or with the poor in Rwanda.

Legal shamans inlcuding Judge Richard Holwell who presided over the Raj Rajaratnam case, say Federal Judge Jed Rakoff will consider many factors before passing the sentence.

Richard Holwell, former US Federal Judge and Partner at Holwell Shuster & Goldberg said, "The judge isn't going to simply focus on the statutory guideline sentence. Those guidelines are no longer mandatory. Judge Rakoff will look at a lot of factors before he decides what an appropriate sentence is in this case and he will consider the defendant's background and other things that he has done in his life along with the crimes he has been convicted of."

That's where Gupta, who is known to have moved in elite business and philanthropic circles for decades may gain an edge. Judge Rakoff has received over 200 letters from several prominent businessmen and humanitarians asking for fairness and leniency. From Microsoft's Bill Gates to former UN Secretary General Kofi Annan to DLF Chairman KP Singh has urged for leniency. Leonard Lauder, the chairman emeritus of Estee Lauder, Reliance Industries' Mukesh Ambani, Ajit Jain, the chief of reinsurance at Berkshire Hathaway, Judith Rodin, the president of the Rockefeller Foundation and Nobel laureate Amartya Sen has pleaded for an easier term.

Interestingly, Judge Rakoff himself is no stranger to such pleas. As a white-collar defence attorney, he once persuaded a judge to give probation to a client convicted at an insider-trading trial. If he does give Gupta's good deeds some weightage, the sentence could be lighter than the 8-10 year but, given the scope of Gupta's crimes, a sentence with no jail term seems unlikely.

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Posco-India seeks further extension of its SEZ validity

Unable to get required land for its proposed multi-product SEZ within the stipulated time, Posco-India has sought the Odisha government's recommendation for further extension of the in-principle approval for the
purpose.

".... We are afraid that we may not be able to secure the minimum required land within the validity of the existing approval, that is October 25, 2012. Therefore, we would like to apply for in-principle approval one more time," Posco-India chairman-cum-managing director Yoon Won-Yong wrote to the state government.

The South Korean steel major has requested the stategovernment to invoke Rule 4 of the SEZ Rules-2006 which requires the concerned state to forward its NOC/concurrence/recommendation to the Centre seeking the approval for extension of in-principle approval of the multi-product SEZ of the company, official sources said.

POSCO-India has proposed to develop a Multi-product SEZ over an area of 1,620.48 Ha (4,004.22 Ac) in the coastal district of Jagatsinghpur. The proposed SEZ having potential to be commercially and economically viable is likely to attract Rs 53,613 crore of investments, mostly FDI. 

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TRAI allows telcos to provide combo recharge coupons

Telecom regulator TRAI today allowed operators to provide a new type of recharge coupon for pre-paid connections that will provide dual benefit to
consumers.

The new "Combo vouchers" will enable customers to add value in their mobile phone account as well as avail services at discounted rates.

"...the Authority has decided, through the Fourth Amendment to the TCPR 2012, to permit the Combo Vouchers as a fourth category of vouchers with safeguards," Telecom Regulatory Authority of India said in a statement.

Earlier rules allowed only three categories of vouchers, namely Plan Vouchers (either through cards or electronically) that enrols a consumer into a tariff plan, Top-up coupons for adding monetary value in to pre-paid account of consumers and Special Tariff Vouchers for getting value added services or discounts on services.
  
After notification of Telecom Consumer Protection Regulation, 2012 (TCPR) in January, TRAI said that there had been demands from several service providers and COAI to allow a fourth category of vouchers (Combo Vouchers).

"The Combo Vouchers would provide monetary value and tariff concessions through a single voucher," TRAI said.    

Combo Vouchers will enable mobile phone subscribers to add monetary value to their prepaid balance as well as get benefit of special tariffs through a single transaction instead. 

As per TRAI's instruction to telecom operators, Combo Vouchers will bear a blue colour band whereas the Top-Up Vouchers will have a green colour band.

Telecom operators will also have to provide option of standalone top up vouchers along with combo vouchers.     

The regulation says that Combo Vouchers will clearly have to mention the terms and conditions so that subscribers can make an informed choice.

TRAI has said that service providers should ensure that customers are properly informed and conveyed about conditions and restrictions, if any, imposed on the monetary value provided through combo vouchers to avoid the possibility of confusion.

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Ginger Hotels to treble presence in 4 years

Nachiket Kelkar
Moneycontrol.com

Indian Hotels' subsidiary Roots Corporation plans to treble the number of Ginger Hotels in next four years, Prabhat Pani, CEO, said Monday.

The number of foreign tourist arrivals in India is expected to double to 12 million by 2021 from six million and the number of domestic travellers is also growing at a fast clip from 740 million.

Pani expects more than 50 percent of future hotel supply will be in the mid and budget hotel segments. Ginger Hotels, which operates budget business hotels in metro cities and tier I towns is hoping that increasing number of travellers and corporates will prefer organised chains like Ginger.

"In three-four years we want to get to 70-80 hotels (from 26 now)" Pani said on the sidelines of opening its first hotel in Mumbai.

The new hotels will be a mix of own properties, leased ones as well as management contracts. On an average the company will spend Rs 15 crore on each new hotel, Pani said.

Currently seven hotels are in various stages of construction across India, of which four are expected to open by March next year.

So far demand has been subdued in the first half of this financial year, with Ginger's average occupancy rates at around 65-70 percent.

Pani expects at least 5 percent pickup in occupancy in the second half.

Around 60 percent of Ginger's business comes from corporates.

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Kingfisher crisis continues as staff demands 4 months

The impasse in the crisis-hit Kingfisher Airlines continued on Monday after a section of its employees rejected its offer of three months' salary before Diwali and demanded that their four months salaries be paid within a day or two. Satish Chandra Mishra, a Kingfisher employee said that the staff members will not join work until their dues were cleared.

Questioning the silence of Chairman Vijay Mallya, Mishra said that the airlines was sending incompetent people to discuss the matter with the employees and hence, the meetings always ended up in failure.

"We don't trust the management. We want to talk to Mallya. Where is he? We want to hear from him directly. The management has been fooling us till now. They are playing with our emotions and sentiments. I want Dr Mallya to meet us face to face, not through representatives or Internet or any other indirect means," he said.

The Kingfisher Airlines has not paid its staff for seven months. A series of strikes called by its pilots and staff and repeated flight cancellations forced the Directorate-General of Civil Aviation (DGCA) to suspend its licence three days ago, until it came up with a viable working plan for its financial and operational revival.

Meanwhile, in fresh trouble on Monday, at least 15 of its planes , that had been leased to them, were stripped clean, the leasing company's sources told CNN-IBN. The 15 aircraft were stripped of crucial parts at various airports and were declared not fit to fly.

Sources said that inspection of two aircraft in New Delhi found the passenger and cockpit interiors cleaned out. Airport authorities refused to take away the aircraft till all dues were paid. Just seven Kingfisher aircraft are currently fit to fly.

Sources say that if Monday's talks fail, the striking employees will launch a nationwide protest and try and confront Chairman Vijay Mallya at the F1 track in Greater Noida, where the races are slated to begin on October 26.

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Hope KFA submit credible plan to DGCA

Kapil Kaul of CAPA, says that if the employees don't come into the game then there will be no future at all. I believe the employees were insisting for four months salaries, but if the management has agreed to three months salaries then they will be in a position to present a credible plan to the DGCA at least to start with five aircrafts.

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

Q: What is your view on the recent turn of events where the Kingfisher management has assured the employees to pay the employees three months salary and finally employees seemed to have boxed those assurances for now?

A: I don't think that employees have any option. Getting three months salary from no salary three weeks backs; is a good beginning. If the employees don't come into the game then there will be no future at all. I believe the employees were insisting for four months salaries, but if the management has agreed to three months salaries then they will be in a position to present a credible plan to the DGCA at least to start with five aircrafts.

watch for more.

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Fares may go up with KFA's suspension: Ajay Prasad

Ajay Prasad, former aviation aecretary, says that in this situation is very difficult for Kingfisher to make a comeback. They do not have a winter schedule; it will be difficult to retain their employees. Kingfisher haven't yet been able to give any concrete plan as to how they are going to pay the salaries and with out that it sounds very difficult for them to make a quick comeback.

Below is the edited transcript of his interview.

Q: Safety is their predominant concern? Do you think at this point there is a possibility for Kingfisher to revive operations?

A: Today's development was not totally unexpected. In this situation is very difficult for Kingfisher to make a comeback. They do not have a winter schedule; it will be difficult to retain their employees. Kingfisher haven't yet been able to give any concrete plan as to how they are going to pay the salaries and with out that it sounds very difficult for them to make a quick comeback. Kingfisher promoters and the management has to do massive amount of work in terms of recapitalization, whole new management strategy and a business plan to see whether it comes back and then as a passenger one would look forward to making a reappearance if it can.

Q: How long does a suspension continue and what would possibly lead to a cancellation of the licence completely? What would the difference be in terms of this seriousness of a cancellation of licence vis-à-vis just a suspension at this point?

A: Cancellation is a very definitive step which prevents the airline from doing any further business. A suspension as it has happened at this moment still gives an opportunity. If the DGCA has asked Kingfisher if he can still come up with a viable plan to satisfy them that the air worthiness of the aircraft will be maintained, the integrity of the schedules will be maintained and credible or kind of operation would be continued. If they are able to satisfy the DGCA on these account then this suspension can be revoked and the airline can continue to fly again.

Q: What would now be the dynamics that would play out in the aviation industry itself? What would it mean in terms of hikes, fares going forward and how exactly do you think it could possibly be control considering that now we definitely do not have one player in the Indian market?

A: In the last few days when the winter schedule for 2012-2013 was announced and Kingfisher didn't have any flights in that schedule already it was well known in the industry that there will be 19 percent shortfall in the number of seat availability as compared to the previous year. So, this will distort demand and supply position. With 19 percent lower seats being available I see the prices, the airfares moving up by all the other airlines and this has also been a little further compounded by both Air India and Jet Airways scaling down to some extent their operations. I see the fares going up and it is rather ironical to say so but it will help the bottom-line of the other airlines which are working.

Q: How lucrative do you think can FDI in aviation would be at this point because we haven't really heard of anything concrete come through with regards to a possible opportunity for a foreign player actually picking up stake in the Indian aviation companies. Do you think that it is possibly too soon and may be we will possibly hear something more concrete going forward?

A: We have to look at this decision in its proper perspective. FDI in aviation was allowed up to 49% even before this. The only restriction was that foreign airlines could not invest in Indian domestic carriers. This restriction has been removed. It has come at a time when most of the Indian carriers are in difficult financial situation. So, any investor from abroad who wants to put in money will have to do a due diligence.

He may see whether what are the possibilities of getting returns from their investment and only then very cautiously they would proceed to go ahead in this area. There are a few good candidates among the Indian carriers which in the near future would attract some foreign investments, but it will take time because this is a process where a lot of work will have to be done by the investors and the domestic carriers here to make themselves more attractive to investors abroad.

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Kingfisher Airlines revival possibility dim: Kapil Kaul

Kapil Kaul, head of Center of Asia Pacific Aviation (CAPA), says that it is not a cancellation but a suspension. There was suspension earlier, this is basically legally and formalising the suspension.

Below is the edited transcript of the interview

Q: What is your view on this news?

A: It is not a surprise but on the expected line . Luckily, it is not a cancellation but a suspension. There was suspension earlier, this is legally formalising the suspension.

Q: Is it a fomalisation of what the partial lockout was or has been present since the first week of October?

A: Once the regulator doesn't allow the airline to fly, it basically forms suspension. Today's order could formalise the suspension. It is not any different from not allowing them to fly. It is a formal approach an already applied suspension.

Q: What is your opinion with regards to a possible revival plan which Kingfisher has to now submit to the DGCA in order to revive its operations in general. What according to you would be the most important contours of the revival plan?

A: First of all, they need to re-capitlise it. The total turnaround would cost over a USD 1 billion. Out of that USD 1 billion, USD 600 million would be required immediately and that is the first step towards any revival possibilities. Out of the USD 600 million, over USD 350-400 million has to be bought in by UB Group. So, the first step is to get UB Group to put in USD 350-400 million, and then the banks would make a pitch in with the balance of about couple of USD 100 or may be more. In second stage, two of foreign airline or any other financial or strategic investor would come in. At this point of time they need to recapitalise to USD 600 million and that can happen only when the promoter puts in USD 350-400 million. Without that there is no possibility of any revival.

Q: What is the possibility then that Kingfisher can revive its operations?

A: It depends on the promoter. For a while, there has been a speculation that the possible sale of United Spirits to Diageo would unlock some cash and a part of that cash would be invested into the airline. Every lender bank, institutions, everybody is speculating the same. Unless and until it gets one time capitalisation of above USD 600 million.

I am not sure that revival will happen and it looks very difficult. It depends upon the promoters of the UB Group to put about USD 350-400 million and that's largely dependent on the Diageo sale as and when that happens. Frankly, I don't see that happening. If it was to happen it could have happened long before. If there are any chances of revival that depends on the UB Group first putting in about USD 350-400 million and then the banks support it with another couple of USD 100 million

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KFA need more credible plan to stay afloat: KPMG

Amber Dubey, head aviation, KPMG shares his views after DGCA suspended KFA licence.

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

Q: What is your initial reaction to the cancellation of this licence? Do you think that things have come to an end for Kingfisher with regards to the operations now?

A: This was unfortunate but it is not unexpected. We had been expecting it for sometime. Already there were speculations but this action now actually puts an end to that speculation.

Q: How do you think the event will progress from hereon? What would be the time line and events that could follow post the suspension of the licence?

A: Now they have to come back with even more credible plan as to how they plan to revive the airline and he DGCA will consider it that with a magnifying glass. If it does not meet scrutiny then their licence will be finally revoked and that could be an end.

Q: What would be the credible plan that could be submitted by Kingfisher at this point in time with regards to a possible bleak revival if there is a chance of it?

A: It has to acknowledge the current realities and for that licence you have to have at least five operational aircrafts. We have to first acknowledge that things have gone back and now from here we are going to pull it back. Unfortunately, now the employees will have to be asked to leave. The routes have to be chosen very carefully it could just be the trunk routes and then start the business. Track it every three months, six months and then gradually ramp it up to 10 aircrafts, 15 aircrafts and so on. The plan has to be very simple and credible. Which That anyway is going to through a lot of scrutiny by DGCA.

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'Decision may help Kingfisher arrange funds'

Aviation regulator DGCA today suspended the flying licence of Kingfisher Airlines  after the beleaguered airline failed to come up with an adequate reply to the showcause notice. Kingfisher also could not provide a viable plan for its financial and operational revival and resolve the impasse with its employees over payment of their salary dues.

Jitendra Bhargava, former ED of Air India said it is a beneficial decision taken by DGCA. According to him, this will help owner Vijay Mallya to arrange for some money and ensure that his employees are paid. However, it is up to the government now to decide whether the licence will be kept under suspension or will be cancelled altogether.

Bhargava further added that Kingfisher has already accumulated a lot of debt and it can no longer borrow money from banks. Therefore, the situation is not at all rosy for the company at the moment.

Here is the edited transcript of the interview on CNBC-TV18.

Q1: Your initial take with regards to the developments on Kingfisher?

A:I have maintained that it is a very beneficial decision taken by DGCA for Kingfisher. Perhaps, Vijay Mallya was not being able to take a call on suspending operations. Government has in a way facilitated that. Now Mallya can go ahead and look for ensuring that he can get adequate resources to put the airline back, in case it is feasible. Alternately, the government will have to take a call on whether to keep the licence under suspension or cancel it altogether.

He can take his time get the money, ensure that the employees get paid, all the other vendors get paid and perhaps start on a clean slate. That to me looks inevitable; it looks an impossible thing at the moment because the debt on its balance sheet is too huge. Banks are unlikely to lend anymore money; I don't think he will be able to get enough money from his own resources to put in. Overall, it doesn't sound a very rosy picture for Kingfisher.

Q: I wanted to get in a point which an aviation expert was talking about earlier, that the minimum amount which would possibly be needed in order to start operations would possibly be five operational planes etc. Considering that they do not have any sort of working capital, even if they do get to that point in terms of starting operations on a minimal basis, how sustainable do you think that would be?

A: I don't think there is any chance of a sustainable venture under the banner Kingfisher. Business model of Kingfisher has been flawed. Five aircraft stipulation is a government stipulation for any airline to have a licence and that is a different thing. We are talking in terms of money.

How will he garner enough resources to pay the existing vendors, ensure that the companies from whom he has taken the aircraft on lease are paid? He is regarded by the industry as a serious player and not something that he can start operations and again forced to be suspending operations. DGCA in my opinion has a crucial role to play.

If Vijay Mallya can submit a proposition which is sustainable, which shows that he has a steady flow of money coming in and only then should this suspension be revoked. Otherwise, there are hard tines for Kingfisher.

Q: What according to you is the way forward now? What do you think will be the next step that we could see possibly from the DGCA and may be even from the lenders at this point in time? Do you think that liquidation of assets, whatever is remaining on Kingfisher's books etc would now come to a point where there would be liquidation of assets?

A: If you look at it, in the last 6-8 months Mallya has tried his best. Now there is a sense that a lot of crony capitalism goes on and as a result of it no hard decisions were taken 6-8 months ago. In my opinion, the most logical course would have been for Vijay Mallya to have suspended his operations 7-8 months ago. He wouldn't have sustained so many losses. He has only added up to the losses in the last 7-8 months without giving any promise to the industry that he can ensure Kingfisher's survival.

As far as DGCA is concerned, I do not know whether DGCA has stipulated in today's order that Vijay Mallya is given four weeks time to submit his proposal which will be reviewed by DGCA. In case it is an open ended kind of a thing, it is again a wrong thing for the DGCA to have done because you cannot be playing with the market for too long in this scenario.

We have noticed that the existing carriers have dropped their capacity by 19% in the winter schedule vis-à-vis the winter schedule of last year. What impact will it have on the fares for the traveling public? This is something that the government needs to answer, DGCA needs to answer, they cannot be mute spectators to what is happening in the industry and in the market.

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Indian Bank confident to lower its NPAs

In this quarter, Indian Bank posted rise in NPAs and worsening of asset quality, However, the management is confident that the bank is geared up to make more cash recoveries and going forward the NPAs will reduce. 

TM Bhasin, CMD, Indian Bank, says that gross NPA as on March 31 2012 was 2.03 percent and net NPA was 1.33 percent. We have been able to maintain the asset quality at 2.06 percent gross and 1.33percent net. In the first half, cash recovery of Rs 353 crore has been made. The bank is fully geared up to make more and more cash recoveries and up gradations. Going down the line the gross NPA should be less than 2 percent and net NPA should be less than 1.3 percent.

The restructured amount for power loans stands to around Rs Rs 2,300 crore in our balance sheet. The loans have been restructures at better rates and our rate of interest on these has gone up from 11.50 percentto 12.75 percent. These loans are further guaranteed by the concerned state government. So, there is no concern on this. This quarter restructured book has not gone up very significantly.

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Kingfisher Airlines revival possibility dim: Kapil Kaul

Kapil Kaul, head of Center of Asia Pacific Aviation (CAPA), says that it is not a cancellation but a suspension. There was suspension earlier, this is basically legally and formalising the suspension.

Below is the edited transcript of the interview

Q: What is your view on this news?

A: It is not a surprise but on the expected line . Luckily, it is not a cancellation but a suspension. There was suspension earlier, this is legally formalising the suspension.

Q: Is it a fomalisation of what the partial lockout was or has been present since the first week of October?

A: Once the regulator doesn't allow the airline to fly, it basically forms suspension. Today's order could formalise the suspension. It is not any different from not allowing them to fly. It is a formal approach an already applied suspension.

Q: What is your opinion with regards to a possible revival plan which Kingfisher has to now submit to the DGCA in order to revive its operations in general. What according to you would be the most important contours of the revival plan?

A: First of all, they need to re-capitlise it. The total turnaround would cost over a USD 1 billion. Out of that USD 1 billion, USD 600 million would be required immediately and that is the first step towards any revival possibilities. Out of the USD 600 million, over USD 350-400 million has to be bought in by UB Group. So, the first step is to get UB Group to put in USD 350-400 million, and then the banks would make a pitch in with the balance of about couple of USD 100 or may be more. In second stage, two of foreign airline or any other financial or strategic investor would come in. At this point of time they need to recapitalise to USD 600 million and that can happen only when the promoter puts in USD 350-400 million. Without that there is no possibility of any revival.

Q: What is the possibility then that Kingfisher can revive its operations?

A: It depends on the promoter. For a while, there has been a speculation that the possible sale of United Spirits to Diageo would unlock some cash and a part of that cash would be invested into the airline. Every lender bank, institutions, everybody is speculating the same. Unless and until it gets one time capitalisation of above USD 600 million.

I am not sure that revival will happen and it looks very difficult. It depends upon the promoters of the UB Group to put about USD 350-400 million and that's largely dependent on the Diageo sale as and when that happens. Frankly, I don't see that happening. If it was to happen it could have happened long before. If there are any chances of revival that depends on the UB Group first putting in about USD 350-400 million and then the banks support it with another couple of USD 100 million

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