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Did govt let telecom sector down? Chandrashekhar argues

Written By Unknown on Minggu, 31 Maret 2013 | 21.03

The tenure of R Chandrashekhar, telecom secretary, has been most eventful. During his tenure, the business and investment sentiment in the sector dipped significantly and many legal dispute pertaining to auction, policy and pricing cropped up. In an interview to CNBC-TV18, he refutes allegations of uncertainty and says that the sector on the other hand has crystallized and become more favourable for investments.

In an interview he highlighted that prior to the Supreme Court judgment of 2012, there was uncertainty with regards to overall policy framework, pricing of spectrum and licensing regime. There are many uncertainties, so fresh investments are getting impacted. However, the scenario changed and resulted in great deal of crystallization into the entire policy environment.

He also added that the cancellation of licenses has impacted investments and investor's confidence for sometime. But, I think uncertainty was the main contributor, so the main challenge was to address that uncertainty and remove all uncertainty with regard to policy, licensing regime and spectrum pricing.

On nation-free roaming issue he said, the policy provision is to remove the burden of paying roaming charges. The whole philosophy of telecom is death of distance. All actions are being worked out to make free roaming a reality.

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

Q: Many people feel that from the time you have taken charge policy uncertainty in the sector continues, the customer service has deteriorated and most telecom companies are embroiled in one or the other legal battle. Are you disappointed with where this sector has come today?

A: I am not disappointed with where the sector has come today. Number of challenges related to uncertainty on several aspects and uncertainty about the continuance of a large number of operators were required to be addressed.

Prior to the Supreme Court judgment of 2012, there was uncertainty with regards to overall policy framework, pricing of spectrum and licensing regime. There are many uncertainties, so fresh investments are getting impacted. However, the Supreme Court judgment came in 2012 and then the events subsequent to that in my assessment have resulted in a great deal of crystallisation of the entire policy environment. Around 70-80 percent of the uncertainty has been addressed. 

Q: Do you think that licenses shouldn't have been cancelled?

A: I would not like to comment on court's decision. However, it is important to note that decision of the government taken on policy is largely motivated by people good and decision in a court of law are taken on the basis of law and rights of various concerned parties. Therefore, entirely it is not correct to expect that both these perspective would result in an identical outcome.

Q: Do you think that it has been the biggest setback for investor confidence for the government's plans to encourage foreign direct investment. The Supreme Court decided to cancel 122 telecom licenses despite many believe that they had been allocated as per government policy, maybe the Supreme Court found that the implementation was faulty?    

A: I would not like to comment directly or indirectly on the Supreme Court order. The orders of the Supreme Court are binding under the law of the land. Yes, the cancellation of licenses has impacted investments and investor's confidence for sometime.

But, I think uncertainty was the main contributor, so the main challenge was to address that uncertainty and remove all uncertainty with regard to policy, licensing regime and spectrum pricing. That is something which has been pursued and has happened, in fact as far as investors are concerned, now all the conditions are in place for them to make a very cold and quantitative analysis of all investment options that are available. There are no unquantifiable risks or any regulatory uncertainties which they need to worry about.

Q: When you say that the government is working towards policy certainty as far as policy making is concerned, after the licenses were cancelled, many experts believe that the government did not fight hard enough for these companies for the telecom sector in the court and it allowed the Supreme Court to enter the policy making domain and say that spectrum henceforth should always be auctioned. How the older telecom companies are also now being asked to pay the market-determined price but at this stage do you feel that the government let the telecom sector down by not fighting hard enough for them?

A: I am not sure if everybody would agree with you that it is the government's job to fight court cases on behalf of companies or keeping the interest of companies in mind.



21.03 | 0 komentar | Read More

b:kind for women: Stylish, trendy, affordable fashion

Looking good does not come cheap especially if branded apparel is your fix. Twenty-six-year-old Vidhi Shah, with master's degree in fashion marketing communication from IED Milan and backend support from family's apparel business, launched the brand 'b:kind' in 2010 targeting women in the age group of 18 to 35 in both metros and tier II cities.

The brand is available in over 200 stores across India including outlets at multi brand retailers like Reliance Retail. She plans to add product categories like skirts, dresses and denims to make b:kind a complete women's wear brand.    

Stylish, trendy and affordable fashion is the mantra behind entrepreneur Vidhi Shah's debt design range of women's wear b:kind. Since inception the brand has sold 1.5 lakh pieces. b:kind's western wear target the mid-market segment and products range from Rs 599 for a graphic print T-shirts to Rs 1,599 for more formal wear.

The clothing line which has been designed after keeping in mind the Indian women silhouette and includes a plus size series in every collection is the unique selling proposition (USP) for b:kind 

Vidhi hound a design sensibility working with Lakme Fashion Week, Pantaloons and Shoppers Stop, she believes growing up and watching her father build an apparel business from scratch has had the biggest impact.

Vidhi Shah, founder, b:kind Clothing, says that I had b:kind in my mind ever since I started pursuing design. I wanted some work experience so I joined M Square clothing, our family business, but it did not interest me much because it was a men wear entity and I was more interested into women's wear.

Since 2010, b:kind is producing only top-wear line but the September 2013 collection will have new product categories like skirts, dresses and denims as well. Today, b:kind retails out in 200 stores in India, exports 20 percent of its products to around 100 stores in the UAE and has stitched together a turnover of Rs 4.6 crore in the last fiscal. Vidhi plans to reach a target of Rs 6.7 crore this financial year.

"Our revenue model predominantly is an outright sale model, so we started with 60 managing by objectives (MBOs) in India in our first season all over India. We did try and have pan presence. Today, we have about 250 MBOs in India. We have a consignment based model as well, which works with large formats stores. So, currently we are present in Reliance Retail, Reliance Trends where we are in 12 stores of theirs," says Shah.

b:kind has its headquarter in Mumbai and the team of 12 member is aggressively targeting the tier II and tier III market.

"By the end of this year we will have our own four retail stores. We do want to make it fast fashion for now where we can fill up stocks. So, we definitely do want to have our own stores that become a major point of communication for us as well to sell the product," she added.

Focused on the expansion plans, Vidhi is in talks with private equity players to raise funds. Money will be used to expand manufacturing capacities as well as create a brand campaign for b:kind. But in the meantime she is confident of her present game and set to hit her target of manufacturing and selling over 75,000 pieces this year.



21.03 | 0 komentar | Read More

Jaypee Infratech targets revenue of Rs 4,000 crore in FY14

Jaypee Infratech , which has been reeling under huge debts, is aiming to raise its revenue to Rs 4, 000 crore in 2013-14 on the back of two three projects that company plans to launch in the next fiscal, Executive Chairman Manoj Gaur told CNBC TV18 in an interview.

The company hopes to clock revenue of Rs 3,300 crore in the current fiscal. One of Jaypee Group's most ambitious projects has been the construction of the 165 kilometre long six lane Yamuna Expressway connecting Noida with Agra. Besides getting nearly 4,000 acres from the Uttar Pradesh Government for building this expressway the company also got around 6,000 acres divided in five land parcels all for real estate development. All of this was hived off and listed as Jaypee Infratech in 2010.

Also read: Positive outcome on cement biz sale seen soon: JP Asso

So, far Jaypee has launched one of these parcels, the one in Noida which goes by the name of Jaypee Wish Town. However there had been several delays in launching this project and the company had received lot of flak from consumers.

The company now plans to launch Wish Town project at Agra very soon. The company hopes to get an average realisation of Rs 3,800-4,000 per square feet for different products in this township project. The company is aiming a ticket size of about Rs 35 lakhs to Rs 55 lakhs.

The Jaypee group company is also developing a Sports City near Formula One race tracks near Noida. "We have been able to successfully launch Bougainvilleas, the farm houses which are in the range of about Rs 8-10 crore, then there are studio apartments about Rs 40 lakhs, then there are going to be very iconic apartments overseeing the F1 track, their ticket-size maybe about Rs1 crore," Gaur said. 

The company's current debt stand at Rs 6800 crore and its plans to bring it down to Rs 4800 crore by 2013-14 end. Through its several debt refinancing initiatives, Jaypee Infratech has now managed to get a longer moratorium and repayment cycle. The company's interest payment has come down to about 12.5 percent from a high of about 15.5 percent. "There is going to be net saving of three percent to Jaypee Infratech and entire debt has been refinanced to a 15 year instrument, partially 15-year and partially 18 years," Gaur said.

Catch the full interview transcript on next page.



21.03 | 0 komentar | Read More

Videocon Mobile to provide pan-India services in 2-3 years

Videocon Mobile Services, which operates in seven of the 22 telecom circles, today said it intends to cover the entire country within 2-3 years. "The company is a national player in telecom sector and has ambition to start services across the country in two to three years," Arvind Bali, Director and CEO, Videocon Mobile Services told reporters.

Also read: Videocon Mobile to provide pan-India services in 2-3 years

In order to provide unmatched network experience in Madhya Pradesh-Chhattisgarh (MP-CG) circle, the company plans to add 1,550 cell sites to its existing 2,800-plus sites within the next two months, he said. As part of its commitment to roll-out 4G services, the company has prepared a roadmap and commenced network planning to provide the next level of mobile communications, Bali said. The company plans commercial roll-out of 4G services by March 2014, he said.

The telecom major at present has footprints in MP-CG, Punjab, Haryana, UP-East, UP-West, Gujarat and Bihar circles. Videocon's current subscriber base stands at seven lakh in MP-CG circle and it is adding 1-1.5 lakh customers every month to its fold, Bali added.



21.03 | 0 komentar | Read More

How impact investing could affect biz in India

The Rockefeller Foundation reports that impact investing is set to grow at an annual pace of 30 percent. India is the second-largest market for impact investing after the US, with USD 500 million worth of investments made in 2012 alone. But what does this mean?

When Pierre Omidyar saw his networth cross a billion dollars in 1998 as Ebay listed on the capital markets, he knew he had to do more with his wealth that had come to him in just three years. So, he set up the Omidyar Network, an organisation that invests in promising social enterprises.

Today, the Omidyar Network, sponsored by Pam and Pierre Omidyar has put in over USD 550 million in impact investments. The network operates with two cheque books, investing roughly half its corpus as grants to non-profit organisations, while the other half goes to early-stage social entrepreneurs whose businesses are perceived too risky by commercial investors. Omidyar set up shop in India in 2010 and has a portfolio of 27 organisations in which it has invested about USD 100 million. 70 percent of these are for-profit ventures.

Venture philanthropy, impact investing and flexible capitalism. These are some of the terms that have been used to describe the approach that Jayant Sinha, partner, Omidyar Network India Advisors and his team have taken to capital investments in the social sector. But Jayant likes to keep it simple. He believes social impact and financial returns are a means to an end. Jayant uses examples of two of his investee companies to explain how they operate - D Light, a solar lantern manufacturer and Tree House, India's largest self operated pre-school chain.

Sinha says, "The social impact cannot be an add-on it has got to be built into the value proposition. So, Tree House tracks the number of children that are in their preschools. That is an impact metric because we know if the child is in one of the Tree House preschools, he or she is going to get tremendous education and in doing so achieve social impact. 

Similarly for D Light. D Light makes solar lanterns. So, for every solar lantern they ship, they are actually substituting kerosene lanterns. They are reducing the cost of using kerosene, providing a much healthier alternative, and reducing the risk of fire. So, built into that solar lantern is already that social impact. You track solar lanterns, you are tracking social impact.

For someone who didn't know what LP (not sure) stood for in 2001 to managing four funds worth over  Rs 800 crore Vineet Rai, founder and CEO, Aavishkaar has come a long way on a very challenging road. One really must put this in context at a time when regular venture capitalists (VCs) were reluctant to make investments in purely commercial ventures in urban India, Vineet's mission is to create a fund to service enterprise in India's most rural areas.

Vineet survived the rough and tumble of impact investing because of his ability to take disproportionate risks and the capacity to be extremely patient, the virtue of which he learnt when he first began working for a Gujarat government-backed rural enterprise incubator in 1998.

Rai says, "My job was to go to the villages and help the innovators into converting their innovations into products and then into businesses. One of the key learnings I gained in that process is converting an innovation into a product, and a business requires an entrepreneur not an innovator as the lead. The entrepreneur is taking the risk and he requires risk capital in trying to build that business. The biggest challenge was not in finding the entrepreneur or helping the innovation to become a product, but providing that risk capital. That was my key learning out of the three, three and a half years I spent as incubator.

Aavishkaar is not very different. We are a venture capital fund. The only difference is that we are focused on rural India. We have made 38-39 investments till date. We are the first investor in almost 38 of them. So, 98 percent of the time we are the first investor. Almost 50 percent of the companies that we have invested in actually didn't exist, that means they started with our capital. More than 50 percent of our capital is deployed in the low-income stage. So, that could tell you that our capacity or appetite to go and take risks where returns are actually unexpected is very high.



21.03 | 0 komentar | Read More

Did govt let telecom sector down? Chandrashekhar argues

Written By Unknown on Sabtu, 30 Maret 2013 | 21.03

The tenure of R Chandrashekhar, telecom secretary, has been most eventful. During his tenure, the business and investment sentiment in the sector dipped significantly and many legal dispute pertaining to auction, policy and pricing cropped up. In an interview to CNBC-TV18, he refutes allegations of uncertainty and says that the sector on the other hand has crystallized and become more favourable for investments.

In an interview he highlighted that prior to the Supreme Court judgment of 2012, there was uncertainty with regards to overall policy framework, pricing of spectrum and licensing regime. There are many uncertainties, so fresh investments are getting impacted. However, the scenario changed and resulted in great deal of crystallization into the entire policy environment.

He also added that the cancellation of licenses has impacted investments and investor's confidence for sometime. But, I think uncertainty was the main contributor, so the main challenge was to address that uncertainty and remove all uncertainty with regard to policy, licensing regime and spectrum pricing.

On nation-free roaming issue he said, the policy provision is to remove the burden of paying roaming charges. The whole philosophy of telecom is death of distance. All actions are being worked out to make free roaming a reality.

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

Q: Many people feel that from the time you have taken charge policy uncertainty in the sector continues, the customer service has deteriorated and most telecom companies are embroiled in one or the other legal battle. Are you disappointed with where this sector has come today?

A: I am not disappointed with where the sector has come today. Number of challenges related to uncertainty on several aspects and uncertainty about the continuance of a large number of operators were required to be addressed.

Prior to the Supreme Court judgment of 2012, there was uncertainty with regards to overall policy framework, pricing of spectrum and licensing regime. There are many uncertainties, so fresh investments are getting impacted. However, the Supreme Court judgment came in 2012 and then the events subsequent to that in my assessment have resulted in a great deal of crystallisation of the entire policy environment. Around 70-80 percent of the uncertainty has been addressed. 

Q: Do you think that licenses shouldn't have been cancelled?

A: I would not like to comment on court's decision. However, it is important to note that decision of the government taken on policy is largely motivated by people good and decision in a court of law are taken on the basis of law and rights of various concerned parties. Therefore, entirely it is not correct to expect that both these perspective would result in an identical outcome.

Q: Do you think that it has been the biggest setback for investor confidence for the government's plans to encourage foreign direct investment. The Supreme Court decided to cancel 122 telecom licenses despite many believe that they had been allocated as per government policy, maybe the Supreme Court found that the implementation was faulty?    

A: I would not like to comment directly or indirectly on the Supreme Court order. The orders of the Supreme Court are binding under the law of the land. Yes, the cancellation of licenses has impacted investments and investor's confidence for sometime.

But, I think uncertainty was the main contributor, so the main challenge was to address that uncertainty and remove all uncertainty with regard to policy, licensing regime and spectrum pricing. That is something which has been pursued and has happened, in fact as far as investors are concerned, now all the conditions are in place for them to make a very cold and quantitative analysis of all investment options that are available. There are no unquantifiable risks or any regulatory uncertainties which they need to worry about.

Q: When you say that the government is working towards policy certainty as far as policy making is concerned, after the licenses were cancelled, many experts believe that the government did not fight hard enough for these companies for the telecom sector in the court and it allowed the Supreme Court to enter the policy making domain and say that spectrum henceforth should always be auctioned. How the older telecom companies are also now being asked to pay the market-determined price but at this stage do you feel that the government let the telecom sector down by not fighting hard enough for them?

A: I am not sure if everybody would agree with you that it is the government's job to fight court cases on behalf of companies or keeping the interest of companies in mind.



21.03 | 0 komentar | Read More

b:kind for women: Stylish, trendy, affordable fashion

Looking good does not come cheap especially if branded apparel is your fix. Twenty-six-year-old Vidhi Shah, with master's degree in fashion marketing communication from IED Milan and backend support from family's apparel business, launched the brand 'b:kind' in 2010 targeting women in the age group of 18 to 35 in both metros and tier II cities.

The brand is available in over 200 stores across India including outlets at multi brand retailers like Reliance Retail. She plans to add product categories like skirts, dresses and denims to make b:kind a complete women's wear brand.    

Stylish, trendy and affordable fashion is the mantra behind entrepreneur Vidhi Shah's debt design range of women's wear b:kind. Since inception the brand has sold 1.5 lakh pieces. b:kind's western wear target the mid-market segment and products range from Rs 599 for a graphic print T-shirts to Rs 1,599 for more formal wear.

The clothing line which has been designed after keeping in mind the Indian women silhouette and includes a plus size series in every collection is the unique selling proposition (USP) for b:kind 

Vidhi hound a design sensibility working with Lakme Fashion Week, Pantaloons and Shoppers Stop, she believes growing up and watching her father build an apparel business from scratch has had the biggest impact.

Vidhi Shah, founder, b:kind Clothing, says that I had b:kind in my mind ever since I started pursuing design. I wanted some work experience so I joined M Square clothing, our family business, but it did not interest me much because it was a men wear entity and I was more interested into women's wear.

Since 2010, b:kind is producing only top-wear line but the September 2013 collection will have new product categories like skirts, dresses and denims as well. Today, b:kind retails out in 200 stores in India, exports 20 percent of its products to around 100 stores in the UAE and has stitched together a turnover of Rs 4.6 crore in the last fiscal. Vidhi plans to reach a target of Rs 6.7 crore this financial year.

"Our revenue model predominantly is an outright sale model, so we started with 60 managing by objectives (MBOs) in India in our first season all over India. We did try and have pan presence. Today, we have about 250 MBOs in India. We have a consignment based model as well, which works with large formats stores. So, currently we are present in Reliance Retail, Reliance Trends where we are in 12 stores of theirs," says Shah.

b:kind has its headquarter in Mumbai and the team of 12 member is aggressively targeting the tier II and tier III market.

"By the end of this year we will have our own four retail stores. We do want to make it fast fashion for now where we can fill up stocks. So, we definitely do want to have our own stores that become a major point of communication for us as well to sell the product," she added.

Focused on the expansion plans, Vidhi is in talks with private equity players to raise funds. Money will be used to expand manufacturing capacities as well as create a brand campaign for b:kind. But in the meantime she is confident of her present game and set to hit her target of manufacturing and selling over 75,000 pieces this year.



21.03 | 0 komentar | Read More

Jaypee Infratech targets revenue of Rs 4,000 crore in FY14

Jaypee Infratech , which has been reeling under huge debts, is aiming to raise its revenue to Rs 4, 000 crore in 2013-14 on the back of two three projects that company plans to launch in the next fiscal, Executive Chairman Manoj Gaur told CNBC TV18 in an interview.

The company hopes to clock revenue of Rs 3,300 crore in the current fiscal. One of Jaypee Group's most ambitious projects has been the construction of the 165 kilometre long six lane Yamuna Expressway connecting Noida with Agra. Besides getting nearly 4,000 acres from the Uttar Pradesh Government for building this expressway the company also got around 6,000 acres divided in five land parcels all for real estate development. All of this was hived off and listed as Jaypee Infratech in 2010.

Also read: Positive outcome on cement biz sale seen soon: JP Asso

So, far Jaypee has launched one of these parcels, the one in Noida which goes by the name of Jaypee Wish Town. However there had been several delays in launching this project and the company had received lot of flak from consumers.

The company now plans to launch Wish Town project at Agra very soon. The company hopes to get an average realisation of Rs 3,800-4,000 per square feet for different products in this township project. The company is aiming a ticket size of about Rs 35 lakhs to Rs 55 lakhs.

The Jaypee group company is also developing a Sports City near Formula One race tracks near Noida. "We have been able to successfully launch Bougainvilleas, the farm houses which are in the range of about Rs 8-10 crore, then there are studio apartments about Rs 40 lakhs, then there are going to be very iconic apartments overseeing the F1 track, their ticket-size maybe about Rs1 crore," Gaur said. 

The company's current debt stand at Rs 6800 crore and its plans to bring it down to Rs 4800 crore by 2013-14 end. Through its several debt refinancing initiatives, Jaypee Infratech has now managed to get a longer moratorium and repayment cycle. The company's interest payment has come down to about 12.5 percent from a high of about 15.5 percent. "There is going to be net saving of three percent to Jaypee Infratech and entire debt has been refinanced to a 15 year instrument, partially 15-year and partially 18 years," Gaur said.

Catch the full interview transcript on next page.



21.03 | 0 komentar | Read More

Videocon Mobile to provide pan-India services in 2-3 years

Videocon Mobile Services, which operates in seven of the 22 telecom circles, today said it intends to cover the entire country within 2-3 years. "The company is a national player in telecom sector and has ambition to start services across the country in two to three years," Arvind Bali, Director and CEO, Videocon Mobile Services told reporters.

Also read: Videocon Mobile to provide pan-India services in 2-3 years

In order to provide unmatched network experience in Madhya Pradesh-Chhattisgarh (MP-CG) circle, the company plans to add 1,550 cell sites to its existing 2,800-plus sites within the next two months, he said. As part of its commitment to roll-out 4G services, the company has prepared a roadmap and commenced network planning to provide the next level of mobile communications, Bali said. The company plans commercial roll-out of 4G services by March 2014, he said.

The telecom major at present has footprints in MP-CG, Punjab, Haryana, UP-East, UP-West, Gujarat and Bihar circles. Videocon's current subscriber base stands at seven lakh in MP-CG circle and it is adding 1-1.5 lakh customers every month to its fold, Bali added.



21.03 | 0 komentar | Read More

How impact investing could affect biz in India

The Rockefeller Foundation reports that impact investing is set to grow at an annual pace of 30 percent. India is the second-largest market for impact investing after the US, with USD 500 million worth of investments made in 2012 alone. But what does this mean?

When Pierre Omidyar saw his networth cross a billion dollars in 1998 as Ebay listed on the capital markets, he knew he had to do more with his wealth that had come to him in just three years. So, he set up the Omidyar Network, an organisation that invests in promising social enterprises.

Today, the Omidyar Network, sponsored by Pam and Pierre Omidyar has put in over USD 550 million in impact investments. The network operates with two cheque books, investing roughly half its corpus as grants to non-profit organisations, while the other half goes to early-stage social entrepreneurs whose businesses are perceived too risky by commercial investors. Omidyar set up shop in India in 2010 and has a portfolio of 27 organisations in which it has invested about USD 100 million. 70 percent of these are for-profit ventures.

Venture philanthropy, impact investing and flexible capitalism. These are some of the terms that have been used to describe the approach that Jayant Sinha, partner, Omidyar Network India Advisors and his team have taken to capital investments in the social sector. But Jayant likes to keep it simple. He believes social impact and financial returns are a means to an end. Jayant uses examples of two of his investee companies to explain how they operate - D Light, a solar lantern manufacturer and Tree House, India's largest self operated pre-school chain.

Sinha says, "The social impact cannot be an add-on it has got to be built into the value proposition. So, Tree House tracks the number of children that are in their preschools. That is an impact metric because we know if the child is in one of the Tree House preschools, he or she is going to get tremendous education and in doing so achieve social impact. 

Similarly for D Light. D Light makes solar lanterns. So, for every solar lantern they ship, they are actually substituting kerosene lanterns. They are reducing the cost of using kerosene, providing a much healthier alternative, and reducing the risk of fire. So, built into that solar lantern is already that social impact. You track solar lanterns, you are tracking social impact.

For someone who didn't know what LP (not sure) stood for in 2001 to managing four funds worth over  Rs 800 crore Vineet Rai, founder and CEO, Aavishkaar has come a long way on a very challenging road. One really must put this in context at a time when regular venture capitalists (VCs) were reluctant to make investments in purely commercial ventures in urban India, Vineet's mission is to create a fund to service enterprise in India's most rural areas.

Vineet survived the rough and tumble of impact investing because of his ability to take disproportionate risks and the capacity to be extremely patient, the virtue of which he learnt when he first began working for a Gujarat government-backed rural enterprise incubator in 1998.

Rai says, "My job was to go to the villages and help the innovators into converting their innovations into products and then into businesses. One of the key learnings I gained in that process is converting an innovation into a product, and a business requires an entrepreneur not an innovator as the lead. The entrepreneur is taking the risk and he requires risk capital in trying to build that business. The biggest challenge was not in finding the entrepreneur or helping the innovation to become a product, but providing that risk capital. That was my key learning out of the three, three and a half years I spent as incubator.

Aavishkaar is not very different. We are a venture capital fund. The only difference is that we are focused on rural India. We have made 38-39 investments till date. We are the first investor in almost 38 of them. So, 98 percent of the time we are the first investor. Almost 50 percent of the companies that we have invested in actually didn't exist, that means they started with our capital. More than 50 percent of our capital is deployed in the low-income stage. So, that could tell you that our capacity or appetite to go and take risks where returns are actually unexpected is very high.



21.03 | 0 komentar | Read More

Panel studying AI's health submits report

Written By Unknown on Jumat, 29 Maret 2013 | 21.03

A committee, which suggested measures to lower the high costs of Air India's operations and improve utilisation of its resources including manpower, submitted its report to civil aviation minister Ajit Singh on Thursday.

"The recommendations of this committee will have a far-reaching impact on the airline's financial health. It is a useful report, which could help implementation of Air India's Turnaround and Financial Restructuring Plans," Singh told reporters after accepting the report of the panel which has made 46 major recommendations. Asked how would these recommendations be implemented, he said, "We have to examine them in details... Most decisions will have to be taken by the Air India Board."

Also read: Boeing faces pressure for cash compensation over 787

The five-member committee, headed by IIM-Ahmedabad's Prof Ravindra H Dholakia, was set up in January after a review of  the airline's functioning. It recommended steps to cut costs and increase savings in line with the best global practices. The experiences of foreign airlines like Japan Airlines (JAL), Malaysian Airlines and Garuda of Indonesia are understood to have been considered by the Committee while making the recommendations, Singh said. The report went into the structure of the company's expenses and identified loopholes which led to wasteful expenditure and recommended measures to plug them.

It examined issues relating to manpower utilisation as several foreign airlines, including JAL, have slashed the number of employees, besides taking other steps, to come out of the financial rut. The panel analysed the utilisation of jet fuel which accounts for 40 per cent of its total costs, as well as the inventory of spare parts and suggest ways to optimise fuel usage and inventory management.

With improvements in Air India's performance, the airline is likely to end this financial year with a positive cash flow or EBITDA (earnings before interest, taxes, depreciation and amortisation) positive, Singh said, adding "the whole culture of the airline is undergoing a change."



21.03 | 0 komentar | Read More

DHFL Vysya cuts rates with eye on 50% growth in FY14

South-based DHFL Vysya Housing Finance, an associate company of Dewan Housing (DHFL), has decided to reduce the interest rate in 0.2-0.5 percent range on housing loans from April 1 while aiming for 50 percent growth during 2013-14.

"We are the first among the HFCs to reduce rate of housing loan by 20 basis points for both existing and new customers under variable interest scheme. But, for the priority sector housing scheme for loan upto Rs 10 lakh there is additional rebate of 30 basis points," DHFL Vysya Housing managing director R Nambirajan told PTI.

One basis point is equal to 0.01 percent. So, total benefit will be of 0.5 per cent for the new scheme for housing loans of upto Rs 10 lakh for a period of up to 11 years targeting the priority sector.

Nambirajan said the announcement in the Budget for additional rebate of Rs 1,00,000 allowed in the interest on housing loans, in addition to Rs 1,50,000 already allowed from April 1, 2013 will induce boost demand from more the middle-income groups in 2013-14.

"We hope to grow by over 50 per cent in 2013-14 against 30 percent in the current fiscal," he said. Our disbursements in this fiscal will stand Rs 345 crore while, the same will jump to Rs 520 crore in the next year, Nambirajan said.



21.03 | 0 komentar | Read More

Non-bailable warrant issued against DCHL directors

A non-bailable warrant (NBW) has been issued against the directors of Deccan Chronicle Holdings by a Chandigarh-based Sessions Court in a case related to cheques bouncing to the tune of Rs 6 crore, reports CNBC-TV18's Appaji Reddem.

The case is filed by Religare Finvest and the chief executive officer of the Religare Group Sachindra Nath confirmed the same.

This apart, there are several winding up petitions filed against DCHL in Andhra Pradesh High Court and the total liabilities of the company towards several banks and financial institutions is estimated at about Rs 4,000 crore.



21.03 | 0 komentar | Read More

Nokia's performance not related to my decision: Shivakumar

Nokia's operations head for India, West Asia and Africa D Shivakumar quit the Finnish handset major after an eight-year stint with the company.

Speaking to CNBC-TV18, he said the decision to quit was not related to Nokia's performance. Shivakumar was based in Dubai for more than 1.5 years and is now keen on returning to India because he feels India is still a growth market and offers lot of opportunities.

Also read: Income tax officials fine Nokia, court issues stay

Shivakumar will continue to serve Nokia till June 30, 2013.

Below is the edited transcript of D Shivakumar's interview with CNBC-TV18

Q: Why exactly are you leaving Nokia?

A: Nokia has been very dear to my heart. I have been in Dubai for the last 18 months. I have done what has been needed of me here. I really looked at the future and I felt that the future was in the market like India, which is in my mind still a growth market.

It is full of opportunities for professionals and that's the reason I thought I should come back to India and that's the main reason. I want to come back because India is the place where there is future opportunity.

Q: Nokia is going through particularly difficult time. It is struggling in the smartphone segment; the market share has been under pressure. Moreover, the I-T department has slapped a Rs 2,000 crore demand notice on the company. The timing of your departure raises questions. How will Nokia cope?

A: The tax issue is a separate case. We have completely cooperated with the government and had given them all the help which is necessary because we always believe in being good citizens in every country we operate.

The challenges of the market will continue like we have seen challenges in smartphones and dual-SIM. We have seen challenges in touch phones in the past, but every time Nokia has come back and done a good job.

Business challenges will always continue. As far as the tax issue is concerned, we are working very closely with the government and it has absolutely no correlation with my decision.

Q: What are your plans posts Nokia? Have you made up your mind and you intend doing?

A: I have to do a proper handover for the next three months in Nokia. I have to ensure that my successor settles down well and after that I will decide, till then I have not really thought about it.



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DDA extends lease for Taj Palace Hotel to IHCL for 25 years

Tata group hospitality major Indian Hotels Company ( IHCL ) today said lease of its Taj Palace Hotel in the city has been renewed for 25 years from April 1 this year.

"The Indian Hotels Company Limited (Taj Group) is pleased to confirm that it has received the consent from the Delhi Development Authority (DDA) confirming renewal of the license for the Taj Palace Hotel, Sardar Patel Marg, New Delhi for a further period of 25 years effective from April 1, 2013," the company said in a statement.

Also read: Low demand hits room rates, profit: Hotel Leela's Nair

The Taj had originally entered into an agreement for the construction and license of the hotel with DDA for 30 years effective from April 1, 1983. The Taj will thus continue to operate the hotel till March 31, 2038, it added.

Commenting on development IHCL Managing Director Raymond Bickson said: "IHCL has enjoyed a very cordial and beneficial business association with Delhi Development Authority over the past three decades and this recent development will further strengthen our partnership with DDA in the years to come."

IHCL and its subsidiaries are collectively known as Taj Hotels Resorts and Palaces.



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Preliminary hearing on GMR arbitration on April 10

Written By Unknown on Kamis, 28 Maret 2013 | 21.03

Four months after Maldives terminated the contract given to Indian infrastructure major GMR to develop and operate the international airport in Male, the two sides will sit down next month in London to begin the multi-million dollar arbitration process.

The preliminary hearing that will structure the arbitration process over the abrupt termination of the 25 year contract with GMR Group for the development of Ibrahim Nasir International Airport (INIA) by the Maldives government has been slated for April 10.

"It is the initial meeting of the arbitration process," Sidharth Kapur, Chief Financial Officer of GMR Group told PTI in New Delhi. "We will sit down and talk. The GMR has not given us any figure as yet. Forensic audit is still going on," Maldives' President Mohamed Waheed's Press Secretary Masood Imad told PTI in Male.

In addition to the three arbitrators, government and Maldives Airports Company Limited (MACL) lawyers along with representatives of GMR will participate in the sit-down.

"It's not a hearing to argue the case. The hearing will only decide a date to start arbitration proceedings and its structure. Things that need to be decided before the proceedings begin will be discussed during that hearing," Maldives' Deputy Solicitor General of the Attorney General's Office Ahmed Ushaamhe said.

Singapore National University Professor M Sonaraja will represent the Maldives government while GMR's arbitrator is former Chief Justice of UK Lord Nicholas Edison Phillips, Haveeru news reported.

Retired senior British Judge Lord Leonard Hubert Hoffman is the arbitrator mutually agreed by GMR and the government, the report said.

The arbitration will go on at the Singapore Arbitration Centre as mentioned in the agreement. GMR had previously stated a figure of USD 800 million as compensation based on their intial estimates. However, company officials said they are yet to come to a final figure.

Sources in the Maldivian government too said GMR has not given a final figure yet.

However, the sources reiterated the Maldivian government's stand that the airport operator agreement with GMR had been annulled on "void ab initio" (invalid from the outset) and that the government does not have to bear any compensation for the termination.



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Will maintain current volume growth going forward: Dabur

FMCG major Dabur expects to maintain current volume growth going forward. In an interview to CNBC-TV18 chief executive officer Sunil Duggal said the company's consumer discretionary goods portfolio is showing good growth, despite the slowdown.

"The fourth quarter numbers would see a reasonably robust demand profile. But we can't rule out the possibility of demand ebbing a little in the next few months. At the moment, things seem to be fine, but we are little bit cautious on the near-term outlook," he elaborated.

According to Duggal, rural GDP growth will be an instrumental factor in contributing to the company's business going ahead.

Below is the edited transcript of the interview with CNBC-TV-18

Q: Are you beginning to see any pressure on consumption, as the entire range of consumer durables are beginning to see weaker and weaker sales sometimes 12-year-lows being hit by some products. It is a far cry to expect that to come into the personal products segment, but are you seeing any fall in consumer demand?

A: Not at the moment. The fourth quarter numbers probably would see a reasonably robust demand profile. But we can't rule out the possibility of demand ebbing a little in the next few months because it normally lags that of the higher value products. At the moment, things seem to be fine, but we are little bit cautious on the near-term outlook.

Q: Is there any specific category where you perhaps have seen some kind of down trading or fall in consumption, maybe high value or discretionary kinds of products?

A: Not as far as we are concerned. We have comparatively few discretionary products in our portfolio. Most of them are staples at the lower end of the pricing pyramid. However a couple of items we have can be considered discretionary, like say the food beverages. These are showing pretty good growth and there has been no slowdown in the last few months. So, contrary to expectations, so far we have not seen any significant down trading happening.

Q: How are margins panning out? Do you witness any changes in raw material prices? Food inflation would impact prices of your raw materials, so is there pressure on margins from that front?

A: Aggregate margins remain flattish. I am talking about the gross margin levels on year-on-year (y-o-y) basis, which is a little bit disappointing because we did expect them to expand considerably this year. But that has not happened. It is largely consequent to very high food inflation. There have been pockets of friendly prices too in terms of say packaging material, the hydrocarbon derivative etc. By and large, the food basket has remained on a high note. We were hoping for a much better yield from raw materials this year.

Q: With some of your distribution initiatives "Project Speed" and "Project Double", you had gone seriously into distribution improvement. Are you getting any gains from that investment?

A: The gains are visible. We have shown volume growth of close to 10 percent which are perhaps ahead of both categories. Unless there is a significant slowdown in the market, we should be able to regain that kind of volume growth. I would attribute a large part of this to our rural expansion So, it has been very important, very successfully executed and will yield us long term dividends.

Q: Can you give us some guidance in terms of what you expect both volume and value growth to be in FY14? Would you do better than the current year?

A: Unlikely. I would peg it at current year levels which are close to 10 percent. That would be a reasonable expectation. High teens are practically ruled out. Mid-teens is possible if the year pans out to be much better than what the outlook currently is, but one would take a slightly conservative view in view of uncertainties and peg it around 10 percent. In fact, we have been giving an outlook of around 8-12 percent as a band, and 10 percent is pretty much where we think we will be.

Q: Will ad spends increase?

A: I don't think so. There may even be just a little bit of moderation in ad spends. If the outlook remains bearish, there would be pressure on companies to cut back a little in terms of new investments and new product launches. There may be a bit of downward pressure on advertisements. I don't think advertising ratios would be ahead of what we saw this year. They would at best be at current levels, perhaps a bit lower.

Q: What is it this year 14-15 percent?

A: Yes, around 14 percent odd.

Q: It could be that or a little less next year? What is what your estimate?

A: Yes, or maybe 50 basis points lower than that. I don't think there will be any dramatic movement and certainly I don't see any upward move unless the economic outlook brightens from what the current forecasts are.

Q: What is a good year for Dabur? Is it a good monsoon that constitutes a good year because raw material prices would be influenced as well as demand or is it general gross domestic product (GDP) growth like it is for several companies of your ilk?

A: Rural GDP growth is perhaps the single most influential factor as far as our business is concerned. Second is inflation because it does play spoil sport in terms of compressing demand. Monsoon is now becoming little less relevant as far as overall business is concerned.

Q: Will we see any inorganic initiatives? Are you still keeping your eyes open?

A: Probably not. The whole economic environment perhaps is on the conservative side. We see valuations in India as extremely high. We do expect valuations to correct going forward. So, we would rather conserve and sit on cash and wait for the right opportunity to come back at lower valuations, which we do predict will happen over the next couple of years.

Q: Your international business is about 30 percent of your total sales. Is it doing better even incrementally?

A: This year has not been as good as the previous year. There have been a host of reasons, but next year would be better than this one. It is a little bit more volatile than the domestic business. We do expect pretty good year from international business in FY14. There are couple of areas of concern like Egypt. If we are able to navigate those, it should be a pretty good year for the international business better than what we have had this year.


 



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Tata Sons ups stake in Titan Industries via block deal

Moneycontrol Bureau

Titan Industries gained over 1 percent on Thursday, reversing earlier losses following a block deal of around 3.88 crore shares on the Bombay Stock Exchange.

The block deal, which accounted for 4.3 percent of its equity was at Rs 250.10 a share.

Tata Sons, the promoter of the watch and jewellery maker, had in a notice to the stock exchanges on March 20, said that it would acquire 3,87,80,000 (about 3.88 crore shares) of Titan Industries, amounting to 4.37 percent of Titan's total share capital, from Kalimati Investment Co Ltd on or after March 28.

Post the stake acquisition, Tata Sons' stake in Titan will go up to 15.22 percent from 10.85 percent.

The stake of Kalimati Investment, which is a subsidiary of Tata Steel , will fall to 4.37 percent from 8.74 percent.

Tata Investment Corp (1.94 percent), Tata Chemicals (1.56 percent), Tata Global Beverages (1.04) are among other Tata Group companies, holding over 1 percent stake in Titan.

Titan shares closed up 1.7 percent at Rs 256.40 on NSE. The stock had fallen as much as 3 percent in the morning session.    



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Technology meets innovation, Handygo grows large

When 35 year old Praveen Rajpal launched Handygo Technologies from his home, back in 2000 with a Rs 70,000 loan from his father, he didn't quite imagine that the mobile value added services (VAS) business in India would be a Rs 21,000 crore opportunity a decade on.

The industry has grown so has Handygo. From providing vanilla services for video, messaging and entertainment context to mobile operators like Airtel, Tata Docomo and Idea Cellular, today Handygo is cashing in on the smart phone and tablet revolution.

In the beginning the firms business was focused on providing value added services to India's major telecom operators. It was the first company to develop content in Arabic, targeting mobile subscribers in the Gulf region. Then as Airtel expanded its footprint to Africa, Handygo created a mobile content delivery platform for MTN Nigeria.

Also read: Gmail adds support for six Indian languages on feature phones

Handygo operates on a revenue share arrangement with partner telecom companies. Praveen claims operators registered a top line of about Rs 100 crore. With an eye on the market place He launched RockASAP.com at the start of 2012. Positioned as India's first mall on a mobile RockASAP.com allows users to shop for over 5000 products from gadgets to books and even pay for them while on the move.

Rajpal told CNBC-TV18 that it has an in-house mechanism to get the raw content. It is processed in a right manner, which consumer wants to use and then allowed to give a feedback also about that content. "We have created a 360 degree approach for any content we create. So whenever we develop any content, product or service we always keep the consumer feedback in mind, which will help us to always refine the product" he added.

The team of Handygo has been busy over the last year launching and creating a buzz around its latest offering Rockstand. It is an e-book and e-magazine app for mobile and tablet devices, it is presently available for free on the Google play store as well as Handygo's own RockASAP.com.

At the World Book Fair held in Delhi last month Rockstand unveiled its first regional e-book collection with fiction and nonfiction e-books available in Hindi, Gujarati, Marathi, Punjabi and Urdu. Having tied up with over 40 publishers with an existing stock of 2 million books, Praveen says the app stands out not only because its e-books are affordably priced starting at Re 1 for a comic but also because of innovative features like text a speech, a night view mode and even a self publishing service. He is now looking to bring in external funding to the tune of USD 20 million into this project and make this app available on iOS, Windows and Blackberry as well.

"We have built up an application where one can read books, magazines on the mobile. The area where we have focused in this e-book space is children because we see lots of children love to read on digital platform. They don't like to carry physical books. Also there is an interactive book where one can interact with the system. There one can participate in the exam and take question answer session in the book itself by interactive books" Rajpal said.
Praveen believes it is not always about the money, but spotting an opportunity well ahead of its time is the key.

In 2009 Handygo launched Behtar Zindagi, an interactive voice response service targeting farmers, which made available information on weather, mandi rates, health, education and finances. This service presently has over 1.67 million subscribes and brings in 20 percent of Handygo's annual revenues. Praveen pumped in Rs 9 crore last year to expand to six states as well as setup a call center for Behtar Zindagi.

He wanted to start some services like this for which they did a lot of research. They went to the rural areas in terms of understanding the need. "For which services they want to pay, which services will bring value to their life and which service on top of it will financially help them to uplift their lifestyle" he said.

After a decade of going solo, Praveen is enjoying the sweet taste of success. Next on the menu are tie-ups with government bodies to create awareness in M-Governance and explore the possibilities and opportunities for VAS in the electoral process, banking, health and education. A self-funded enterprise so far Praveen is now looking to strategic investors to scale up the venture.



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Gartner sees global IT spending up 4% to $3.8tn in 2013

Moneycontrol Bureau

Worldwide IT (information technology) spending is projected to total USD 3.8 trillion in 2013, up 4.1 percent year-on-year, research and advisory firm Gartner said on Thursday.

The Gartner Worldwide IT spending forecast is an indicator of major technology trends across the hardware, software, IT services and telecom markets.

Richard Gordon, managing VP at Gartner said fragile business and consumer sentiment continues through much of the world and although the US managed to avoid the fiscal cliff, the subsequent sequestration and the Cyprus debt burden offset any benefit.

"However, the new shocks are expected to be short-lived, and while they may cause some pauses in discretionary spending along the way, strategic IT initiatives will continue," he said.

Meanwhile, worldwide spending on devices, which includes personal computers, tablets, mobile phones and printers, is expected to reach USD 718 billion in 2013, up 8 percent, according to Gartner.

Consumers and enterprises will continue to purchase a mix of IT products, but the mix will change "dramatically" over next 3-5 years, from PCs to mobile phones, from servers to storage, from licensed software to cloud or the shift in voice and data connections from fixed to mobile, John Lovelock, research VP, said.

Elsewhere, spending on data centre systems is seen up 4 percent, enterprise software up 6 percent, IT services up 5 percent and telecom services is likely to see a 2 percent uptick in spending.

Indian IT majors like Tata Consultancy Services  and HCL Technologies have said earlier that growth in 2013-14 was looking better than in 2012-13.

For 2014, Gartner forecasts global IT spending to rise 4 percent to USD 3.9 trillion.

Also Read: India's current account deficit rises to alarming 6.7% in Q3  



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'BRICS bank will help enhance credit access for Indian cos'

Written By Unknown on Rabu, 27 Maret 2013 | 21.03

The fifth BRICS Summit began in Durban on Tuesday. For the first time the BRICS nations are meeting in South Africa. The key discussion at the BRICS meet until now is the progress on the BRICS Development Bank. Finance ministers of the BRICS countries have presented a report on the feasibility of the bank and a roadmap has been finalised.

Also Read: BRICS committed to revive global economy: Anand Sharma

Meanwhile addressing the press, FICCI president and HSBC India head Naina Lal Kidwai, member of the Indian deligation at the meet, said that the BRICS bank will help enhance credit access to Indian banks.

"All the heads of delegations, including ours, are obviously taking a lot of interest in the BRICS Development Bank which was announced at the BRICS meet in Delhi in 2012. We still have not had too much colour put on what the structure, capital and focus is going to be," she added.

Also Read: BRICS summit eyes joint forex reserves pool, infra bank

Kidwai beleives that India's need for funds for infrastructure is close to a trillion dollars which the banking sector is unable mobilse and is heavily burdened with projects.

"It is a development which we are all very interested in because it will help to mobilise resources for infrastructure, development projects and at least provide some of the credit enhancement that projects sometimes need to borrow."



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Boeing to conduct certification demonstration flight of 787

On Tuesday Boeing said in a statement that it conducted a functional check flight on its 787 Dreamliner and now will conduct a certification demonstration flight. This demonstration will be to show that the new battery system on the Dreamliner is working as intended.

In January this year, the Boeing had been forced to ground its entire fleet of Dreamliners on the back of a US Federal Aviation Administration or FAA directive after an All Nippon Airways (ANA) flight made an emergency landing over battery related problems.

Also read: Boeing faces pressure for cash compensation over 787

Air India had to ground six of its Dreamliners and sources at Air India say they are going to seek compensation from Boeing for losses sustained.



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Motor insurance premium to be costly by up to 20% from Apr

Motor insurance premium is set to become more expensive, with IRDA allowing up to 20 percent increase in third party rates from April 1 in view of rising inflation and the history of claim settlement.

"The overall percentage increase in the motor third party portfolio works out to 18.9 percent. The above rates will bae effective from April 1, 2013," IRDA said in a notification.

Charges for the third party insurance cover as per the notification will go up for two-wheelers, passenger cars and commercial vehicles.

For passenger cars not exceeding engine capacity of 1,000 cc, the revised third party premium is proposed to be hiked by 20 percent to Rs 941 per annum. For two-wheelers exceeding 350 cc, the premium would go up by 18.30 percent to Rs 804.

For goods carrying vehicles, excluding three-wheelers, with carriage capacity exceeding 40,000 kg, the premium would be Rs 15,035 per annum.

There is no increase in case of three-wheelers used for carrying passengers for hire or reward with carrying capacity not exceeding 6 passengers.

In case of four-wheelers used for carrying passengers with carrying capacity exceeding 6 passengers for hire, the increase is to the extent of 20 percent from the existing level.

The earlier hike which was done in March 2012 was disputed by transporters' association which had fought a legal battle with IRDA and general insurers in the Calcutta High Court. However, after eight months of litigation, the court had passed verdict in favour of the hike.

Also read; Top 5 things to consider before switching Insurance

Earlier in 2012, while asking domestic general insurers to hike the provisioning - capital to be set aside to pay the future claims as it takes years to settle claims under this category - against the third party motor portfolio, IRDA had assured general insurers that it will allow them to hike the third party motor rates gradually.

The Insurance Regulatory and Development Authority (IRDA) had dismantled the third party motor insurance pool from April 1, 2011 thereby linking premium rate with the prevailing market rate.



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Low taxes, infra key to aviation biz take-off not FDI: IATA

In an interview CNBC-TV18 director general & CEO, IATA Tony Tyler pointed out that lower taxes, tighter control on costs and creation of adequate infrastructure are key to a business environment that will lure increased investment into the aviation sector.

"I don't think I have ever been bearish about the Indian market. I have been only concerned about some of the policies that make it very difficult to exploit the market profitably for airlines," he added.

Below is an edited transcript of the interview on CNBC-TV18

Q: A few months ago you seemed very bearish on India. Since then, the government announced a slew of reforms including the liberalisation of the aviation sector by allowing foreign direct investment (FDI). Do you still continue to be as pessimistic and bearish?

A: I don't think I have ever been bearish about the Indian market. I have been only concerned about some of the policies that make it very difficult to exploit the market profitably for airlines such as in the high taxation, high costs and inadequate infrastructure. Those three big problems still exist though foreign airlines have abeen allowed to invest directly in Indian carriers and the doing away of the process of going through a committee to bring aircraft into the fleet.

Q: Despite Etihad's interest in Jet Airways , the deal hasn't been closed. Air Asia's has application to commence operations in India has been cleared by the Foreign Investment Promotion Board (FIPB ). Do you believe there are going to be more foreign companies planning to pick up stake in Indian airlines or entities like Air Asia who want to start a greenfield operation?

A: It is very positive to see both investing in the Indian aviation market. But allowing foreign direct investment into Indian carriers is not in itself a panacea. There is still a need for joint policy making to create the right business environment. If you want to lure investments, there has to be an attractive framework consisting of lower taxes, tighter cost control and creating adequate infrastructure.

Q: With the Indian economy affected by a considerable slowdown, how do you see the Indian aviation market shaping up?

A: Generally, aviation traffic growth usually runs at about twice the number of the figure of gross domestic product (GDP) growth. So, if GDP growth comes down, growth in aviation and air traffic often comes down as well. We will have to see what happens here in India because other factors of course come into play as well such as the stimulus from new carriers or entry of increase capacity. Though Kingfisher's exit dampened the market last year, I wouldn't be surprised if there isn't some recovery this year.

Q: What is your assessment about the current fracas between Kingfisher 's lessors, the government and the airline in question and how it is likely to impact investment in India?

A: It's a story like any business that goes out of business. If you let your costs run away from your revenues then you are on a slippery slope. And I guess that's what happened to Kingfisher.

Certainly some leasing companies and banks would have got their fingers burnt. It is very important that the Indian government facilitates the cleaning up of any leases and allowing lessors to repossess their aircraft from Kingfisher if Kingfisher is unable to pay, without constraint because if they don't do that they are going to make the environment very difficult for other carriers in India who want to lease aircraft.

So, it is important that the lease contracts are followed and the lessors are able to get their hands on the aircraft again if they are in default.



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NLC invites bids to buy coal mines overseas

State-owned Nevyeli Lignite Corporation (NLC) has invited bids from global firms to acquire coal assets overseas for providing fuel security to its thermal power plants.

"NLC intends to secure its thermal coal-requirement by acquiring coal blocks abroad, by entering into-long term coal supply agreement, by forming joint venture with coal mining companies, by acquiring equity stakes in coal mining companies," says the tender document of the company.

The state-owned firm has proposals for growth in power generation capacity and is expanding its activities not only at Neyveli, but also in other parts of the country.

It has entered into a JV with Uttar Pradesh to set up a 1,980 MW power station at Ghatampur, and the project is moving fast into the execution phase. NLC also has a proposal to establish a power plant with a capacity of 4,000 MW at Sirkali in Tamil Nadu. It is also planning to bid for ultra mega power projects (UMPP) of 4,000 MW under tariff based competitive bidding and other power Projects.

The company's coal requirement is likely to shoot up to 10 million tonnes per annum (MTPA) once all the projects are commissioned. The 'Navratna' firm operates four mines with a tota capacity 30.6 MTPA, and four thermal power stations of total capacity of 2,740 MW.

It is executing lignite-based projects such as the New Neyveli Thermal Power Station. Besides, NLC is implementing a 1,000 MW coal-based Thermal Power Project, NLC Tamil Nadu Power Ltd at Tuticorin.



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Expect fertiliser demand to pick from FY14: Coromandel Intl

Written By Unknown on Selasa, 26 Maret 2013 | 21.03

In an interview to CNBC-TV18 Kapil Mehan, MD of Coromandel International said, the new complex fertiliser plant at Kakinada is likely to achieve full capacity utilisation by FY14-15.

"This plant will add a capacity of 4.25 lakh tonne to our existing capacity of 32 lakh tonne of complex fertilisers. So, the capacity goes up about 15 percent," he added.

Meanwhile, Mehan expects fertiliser demand to improve this year. "The demand is likely to have come down from 22 million tonne in FY12 to about 15.5-16 billion tonne in FY13. So, demand will pickup from this year onwards hoping that there is a normal monsoon," he elaborated.

Also read: Petronet LNG likely to commission Kochi terminal by May-Jun

Below is the verbatim transcript of his interview on CNBC-TV18

Q: First take us through your expansion plans; you have commissioned a complex fertiliser plant at Kakinada, what will it do to your revenues in the current year? What would it do to your profit and loss (P&L) in the next year?

A: We have commissioned our C-Train project as we call it in Kakinada on March 22 and that will add a capacity of 4.25 lakh tonne to our existing capacity of 32 lakh tonne of complex fertilizers. So, the capacity goes up about 15 percent.

It is a very versatile plant, which can produce any type of complex grade fertilizers. We are hopeful that from next year onwards, in FY14-15, we will be able to achieve full capacity utilisation of this plant. Incidentally this is a first plant, which has come up in this century because last plant, which came up was in 1999.

Q: We understand there is a problem of demand, therefore how much do you think you will be able to do in terms of volume sales in FY14?? What kind of revenue projections can you give?

A: As far as demand is concerned it has come down but the domestic capacity is still much lower than even the reduced demand. To give more perspective on this, the demand is likely to have come down from 22 million tonne in FY12 to about 15.5-16 billion tonne in FY13. 

However, we believe demand is going to grow to around 18 billion tonne because the field inventories with the farmers, as well as the retailers, as well as the state institutions have come down and most of the inventories have travelled upwards to wholesalers and companies.

So, demand will pickup from this year onwards hoping that there is a normal monsoon whereas the total domestic capacity of the country is only about 12-12.5 million at 100 percent capacity utilisation. So, the backlog has to be met through imports and there room for imports to come in We believe that we will run our facilities over 80 percent capacity utilisation going forward.

Q: Do you get any subsidy payment from the government? If so, what might the problems be because of subsidy payment?

A: Yes, we do get subsidy payment under the nutrient based subsidy policy and the good news is that the subsidy has been coming down. It will further come down this year as well, even though the rates are not notified yet but international prices of phosphorus (P) and potassium (K) fertilisers (P&K) have come off their peaks and we believe that subsidy will be further reduced.

So, our dependence to that extent will further go down. The Budget provided for P&K segment and after clearing the last year's bills, for domestic industry it should be sufficient to take care for at least eight-nine months.

Q: The Budget is provided for 65,000 crore odd, the exact revised budget for the current year. So, are they factoring in a fall in the subsidy element?

A: No, they have not factored in because prices fell in the last few weeks.

Q: You do not expect any working capital issues because of delayed subsidy payment, did that bedevil this year?

A: This year as far subsidy payments are concerned they were better than the previous year as far as domestic manufacturers are concerned.

Q: Do you fear that if the gas price did go to USD 8 then people are speaking about there will be a genuine problem of passing on the price in the form of higher fertiliser prices?

A: As of now urea is under administered price mechanism and any sudden increase in price of gas will first go to the cost of production, which in any case is compensated by the government as they, pass-through.

I am sure government will look at it seriously as to how much of it to pass on to the farmers and how much to pass on in the subsidy. For subsidy, we believe the limits are already reached given that government is very serious about its fiscal target of containing fiscal deficit to 4.8 percent next year.

Q: Would a rise in the end product prices meet with demand resistance?

A: Our view is that a substantial increase of 40-50 percent will not lead to any demand destruction as far as urea is concerned. Even if there is demand destruction, there is a 7.5 to 8 million tonne, which is imported into India. So, it will not have any major impact on the demand.

Q: Will any rise in end product prices of complex fertilisers lead to demand destruction?

A: Prices rose very suddenly, so whatever demand destruction had to take place because of price rise has already happened.

Q: Therefore what is the income rise you are expecting next year?

A: We do not give any guidance but we are expecting that our fertiliser volumes will be substantially higher than last year. We have also made acquisition of Liberty Phosphate and we have also commissioned a new plant of super phosphate, which was under construction in Rae Bareli. That was commissioned on March 22. Therefore, we will have 132,000 tonnes of single super phosphate additionally available through Liberty Phosphate.

Q: That would mean an income rise of about 20-25 percent?

A: Yes, we should look at a number in that range.



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Basel proposes cap to halve bank exposures

A bank should limit its exposure to any other single bank at no more than 5 percent of its capital base to ensure it can stay in business if the other lender defaults, global regulators proposed on Tuesday.

The Basel Committee of banking supervisors from nearly 30 countries wants to tighten guidelines for so-called large exposures to avoid banks becoming vulnerable in rocky markets.

Also read: India Inc sales growth to crawl at 6-7% in Q4FY13: CRISIL

Leaders of the world's top 20 economies (G20) called on the committee at the height of the financial crisis in 2009 to reinforce banking rules to make markets safer.

Large exposures are currently defined as 10 percent or more of a bank's capital base, but this has been a discretionary guideline. Basel is now proposing an enforceable global cap at half that level.

The cap, like Basel's new minimum core capital ratio of 7 percent, will be fixed from the start of 2019.

"This is to ensure that the large exposures standard is effective and consistent for internationally active banks," a committee statement said.

"On this basis, breaches of the limit should be exceptional events, should be communicated immediately to the supervisor and should, normally, be rapidly rectified."



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Yes Bank floats 100% subsidiary co, eyes acquisition

Saikat Das
moneycontrol.com

Private sector lender Yes Bank has constituted a 100% subsidiary company Yes Securities India Ltd to kick start its brokerage business by August-September, 2013. According to Jaideep Iyer, senior president financial management, the lender is also considering the acquisition of a small broking firm. The exercise is seen as a part of building customers base before it finally launches home loan products.

"This is a good situation. We are offering 6-7% rate of interest in savings account and you are getting a demat account from the bank. Now, you will get our brokerage services. This is a 3-in-1 service (in line with HDFC Bank or ICICI Bank). It will be a low cost and web-based model. If we acquire something, we can migrate them into Yes Bank customers," he told moneycontrol.com.

It is learnt that the bank may have already recruited top three executives for the broking arm. It is in talks with two or three small time brokerages. However, nothing concrete has come out yet.  moneycontrol.com could not independently identify those brokerage names.

The business planning is still under process. The prime focus will be on retail customers, not institutional ones. However, they may look for margin funding as well. Margin funding is the process wherein an investor parks part of the money needed to buy a stock and the rest is paid by the lender. Typically, brokerages allow margin funding facility to their best customers.

Why brokerage in a gloomy economy?

In general, the brokerage industry is now down in the dumps. What actually prompts Yes Bank to get into this platform is to expand its customer base for the whole gamut of product kitty. For the bank, broking is not going to be a big bang affair. The bank will not set up too many offices for broking business exclusively.

"We will initially use our bank branch network to expand it. It will save our operating costs.  We are working out a mechanism wherein brokerage will have to depend on bank's customer base. The standalone brokerage model is extremely difficult," Iyer said.

In the October-December quarter, Yes Bank's net profit shot up 33% to Rs 428 crore on a lower base. Non-interest income rose spurted more than 48% year-on-year to Rs 313 crore.

Yes Bank shares rose more than 19% as against nearly 11% rise in Nifty Bankex, the broader index for banking stocks.

saikat.das@network18online.com


 



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Bharti Airtel arm raises USD 500 mn, shares soar 3%

Country's largest telecom operator Bharti Airtel gained more than 3 percent on Tuesday after its subsidiary Bharti Airtel International (Netherlands) BV raised USD 500 million notes (additional notes).

The company says it is in addition to the recently concluded transaction of USD 1,000 million 5.125 percent fixed rate senior unsecured guaranteed notes due 2023.

Additional notes issued at a premium and priced at 100.625 percent to yield 5.044 percent will be consolidated and formed in a single series along with the USD 1,000 million 5.125 percent guaranteed senior notes issued on March 11, 2013.

This is the largest ever telecom transaction out of Asia ex-Japan. "High participation by fund managers for an Indian Issuance and real money investor participation of 77% demonstrates the superior quality of the order book and the confidence the global investors have in the fundamentals and credit of the company," Harjeet Kohli, group treasurer of Bharti said.

At 15:15 hours IST, shares rose 3.02 percent to Rs 297.15 on Bombay Stock Exchange.



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European Commission gives nod to KTM-Husqvarna deal

All decks are cleared for the acquisition of off-road motorcycle brand Husqvarna by Pierer Industrie AG, the parent firm of KTM Auto as the European anti-trust Commission has given its nod for the buyout.

According to sources, the Commission gave its approval on March 6. The two sides have now undertaken the first phase of its joint alliance by identifying dealers.

KTM, a partner firm of Bajaj Auto will also look to use Bajaj's Chakan plant for manufacturing some of the Husqvarna models. They could also use the facility for exporting the bikes to other Husqvarna markets like the US.

Earlier Husqvarna was a motorcycle division of BMW, which the German automaker had sold off at the end January this year.

Also read: Honda to launch 3 new bikes to topple Hero's leadership



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Colgate Palmolive (India) to sell division for Rs 60 cr

Written By Unknown on Senin, 25 Maret 2013 | 21.03

Colgate Palmolive (India) today said its board has approved the selling of a division to Colgate Global Business Services (CGBSPL) for Rs 59.89 crore.

The board has agreed to sell the company's division- Global Shared Services Organisation - to CGBSPL, which is a 100 per cent subsidiary of holding company, Colgate Palmolive Company, USA (CP-USA), by way of a slump sale for Rs 59.89 crore, effective June 1, 2013, Colgate Palmolive said in a filing to the BSE.

Also read: India Inc sales growth to crawl at 6-7% in Q4FY13: CRISIL

"The above consideration has been arrived at on the basis of independent valuation conducted by Ernst & Young Pvt Ltd, to be suitably adjusted at the time of actual transfer," it added.

The sale will include transfer of all employees, assets, and liabilities, the company said. In a separate filing to the BSE, the company said its board has approved a third interim dividend of Rs 9 per equity share of Re 1 for the financial year ending March 31, 2013.

"The said interim dividend will be paid on the paid-up equity share capital of Rs 13.60 crore involving a total pay out of Rs 142.25 crore," it added. The dividend would be paid on April 19, 2013, it said.Colgate Palmolive (India) closed at Rs 1,281.20 on the BSE, down 2.15 per cent from its previous close.



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Godrej Appliances sees 25% sales growth in FY2014

Nachiket Kelkar
moneycontrol.com

Consumer durables maker Godrej Appliances, a part of Godrej & Boyce Mfg Co expects its sales to grow around 25 percent year-on-year in 2013-14 (April-March), a top company official said on Monday.

It is expecting to close the current financial year ending March with sales of over Rs 2,000 crore, Kamal Nandi, EVP - marketing and sales, told reporters. He was speaking on the sidelines of a new marketing campaign launched by the Godrej Group.

The Group, which also has interests across fast moving consumer goods, real estate, security systems and furniture, among other areas, has roped in film star Aamir Khan as its brand ambassador.

The campaign will showcase different Godrej products and Khan will be seen dressed as a woman in the television commercials, which will go up on air soon.

The company officials said that the company would invest "significantly" in the new advertising campaign, but refused to divulge specific details.

Meanwhile, Godrej Appliances is hoping sales of its cooling products like air conditioners and refrigerators will grow around 15 percent in the current summer season, helped by new launches. Sales of these products were subdued last two years, due to various reasons including price hikes and short summer.

"Since the last two years, sales of cooling products have been depressed. Last to last year, due to short summer sales were slow and last year prices increased, 15-18 percent in air conditioners, and that is why consumer sentiments were depressed. This year we are expecting this pent up demand from last two years will finally get converted into consumption," Nandi said.

This year the prices are more stable, he added.

NO TV SALES FOR NOW

Godrej Appliances is betting big on growing refrigerators, airconditioners, washing machines and microwave ovens going ahead. But it has stopped selling LCD TVs.

The company launched Eon range of LCD TVs in select markets in 2008. It launched game LCD in 2010 and had targeted a 10 percent market share in LCD TV segment, according to media reports that time.

But Godrej Appliances has now put that on the backburner, saying it was only a pilot project they had done.

"We actually did a pilot on television and we restricted to few markets for the pilot. Then we decided not scale ahead," Nandi said.

When asked why the company had decided to switch off TVs, he said the company right now is focusing only on four core categories -- refrigerators, microwaves, air conditioners and washing machines.

"We are trying to focus our entire investment into this core, because what we feel is that this four has a lot of potential. If you look, penetration level of refrigerators is only about 18 percent. AC is just 4 percent, microwave is 3 percent and washing machine is 9 percent. So we would like to capitalise on this our strength that we have, invest in these areas, scale it up, then move into other things," he said.

nachiket.kelkar@network18online.com



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CIL okays change of Rs 2,539-cr BCCL liability into shares

State-owned Coal India (CIL) on Monday said its board has approved conversion of liabilities worth Rs 2,539 crore of Bharat Coking Coal Ltd (BCCL) into preferential shares.

"The board of directors of the company (CIL)...has approved to convert the loan and current account balance granted to BCCL, its 100 percent subsidiary, aggregating to Rs 2,539 crore into 5 percent non-convertible, redeemable cumulative preference shares," CIL said in a filing to BSE.

The decision was taken at the company's board meeting held on Monday. CIL further said that in order to facilitate this, the board has approved to amend the memorandum of association and articles of association of BCCL. "This is however subject to the approval of shareholders of BCCL," the statement added.

Dhanbad-based BCCL had earlier said that it has its finances have received the approval of the Board for Industrial and Financial Reconstruction (BIFR) to which it was referred to after it was classified as a perennially sick undertaking.

The company was removed from the list of sick industries after its net worth turned positive. BCCL meets almost 50 percent of the total prime coking coal requirement of the integrated steel sector. It was incorporated to operate coking-coal mines in the Jharia and Raniganj coalfields.



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TCS wins USD 43 m contract from Norway Post

Tata Consultancy Services ( TCS ) and global outsourcing services firm Capgemini have been awarded contracts worth USD 43 million (about Rs 233 crore) each from Norway Post to operate and manage its applications.

The 6-year deal encompasses delivery of a wide range of services across Norway Post's core portfolio of 55 applications. It delivers over 36 million packages and 2.2 billion letters annually.

"Apart from being selected to deliver application services across core postal value chains, TCS has also been entrusted to coordinate and drive the overall transition and transformation programme across multiple vendors," TCS said in a release.

Through this initiative, Norway Post is implementing a structured multi-sourcing model to drive efficiency and support their Nordic integrated business strategy, it added.

Norway Post in a statement said it has chosen Capgemini and Tata Consultancy Services to operate and manage most of its applications.

"The estimated value to each of the suppliers Capgemini and TCS during the contract period is around 250 million Norwegian Krone (KOR)," it added.

Capgemini has 103 Nordic customers and around 4,500 employees in the Nordic region.

TCS's Nordic operations (an operating area cutting across Sweden, Finland, Norway, Denmark and Iceland) comprise over 5,000 professionals, servicing leading Nordic companies such as Nokia, Ericsson, TDC, ABB, Telenor, NETS and SAS.



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Sinopec to pay $1.5 bn for parent's oil, gas assets

China Petroleum and Chemical Corp (Sinopec Corp), Asia's largest refiner, will pay USD 1.5 billion for overseas oil and gas-producing assets held by its parent in a long-awaited move to reshape its business and improve earnings.

Shares of Sinopec jumped more than 3 percent in early Hong Kong trade in reaction to the plan announced on Sunday, outperforming a 0.7 percent gain in the blue-chip Hang Seng Index.

"The announcement... is the first step toward restructuring the business toward the upstream which is likely to see a gradual improvement in returns and potentially significant value upside in the long term," Scott Darling, head of Asia oil and gas research at Barclays Capital, wrote in a note.

Sinopec Corp has lagged behind bigger domestic energy producer PetroChina Co Ltd in acquiring overseas fields to offset refining losses, having made its first and so far only purchase of upstream assets in 2010.

Also read: India to unveil shale gas policy within 2 weeks: Moily

Chinese refiners cannot fully pass on higher crude oil costs to customers because of government price controls.

Sinopec Corp said a year ago that it was considering buying more overseas upstream assets from its parent Sinopec Group to boost oil and gas production and counter losses.

Sinopec Corp - which relies on imports for most of the crude it refines - said late on Sunday it would set up a joint venture with its parent that will acquire $3 billion worth of oil and gas assets held by the latter.

The deal would boost Sinopec's proven reserves by 9.1 percent to 3.1 billion barrels of oil equivalent (boe), and its annual crude production would rise 11.2 percent to 365 million barrels, the company said.

The 50-50 venture will buy oil and gas-producing assets with 310 million barrels in proven and probable reserves from Sinopec Group, formally known as China Petrochemical Corp.

Sinopec Corp, whose oil and gas output reached 427.95 million barrels in 2012, will use internal funds and loans for its share of the venture. It said it would take management control.

PARENT'S ASSETS

Sinopec Group has spent around $40 billion buying global assets in the last three years, including the USD 7.24 billion purchase of Swiss explorer Addax Petroleum Corp in 2009 to gain access to fields in West Africa and Iraq's autonomous Kurdistan region.

At least half of the group's overseas assets are in countries such as Syria, Argentina and Russia, where the reserves are either of poorer quality, too small or in areas fraught with political risk, analysts say.

Sinopec Group may eventually inject as much as half of its global oil and gas reserves into Sinopec Corp, which is far from enough to cut the unit's exposure to unprofitable refining at home.

The assets Sinopec Corp is buying through the joint venture were located in Kazakhstan, Colombia and Russia.

The venture will buy 50 percent of issued share capital of Caspian Resources Ltd in Kazakhstan for USD 1.6 billion, and 50 percent of Mansarovar in Colombia for USD 428 million that includes the takeover of a loan of USD 348 million from Mansarovar's shareholders, it said.

Sinopec will also buy from its parent 49 percent of issued share capital of Taihu - a partnership with Russian oil giant Rosneft in Russia - for USD 560 million and a special dividend held by its parent in the partnership for USD 93 million.

Sinopec, which on Sunday reported a 12.8 percent fall in 2012 net profit due to a drop in revenues from its upstream and chemicals businesses, bought deepwater oilfields in Angola from its parent for $2.46 billion in 2010.

Its refining division - where throughput edged up 1.8 percent to 221.31 million tonnes last year - made an operating loss of 11.95 billion yuan under Chinese accounting standards, compared with a loss of 37.6 billion yuan the previous year.



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Shale gas exploration policy in next 10-15 days: Moily

Written By Unknown on Minggu, 24 Maret 2013 | 21.03

India will unveil a shale gas exploration policy in next fortnight as it looks to exploit unconventional hydrocarbon resource to meet its growing energy needs.

"We will take a shale gas policy to the Cabinet (for approval) in couple of days," Oil Minister M Veerappa Moily said at a function here organised to mark the beginning of natural gas sales from the predominantly oil-rich Rajasthan block.


The policy, based on which the government will launch its first auction of shale gas block by 2013-end, is likely to be approved by the Cabinet in 10 to 15 days, he said.


Shale gas blocks will be offered on terms that are likely to be remarkably different from those offered in bid rounds for oil and gas blocks.


Shale gas or natural gas trapped in sedimentary rocks (shale formations) below the earth's surface, is the new focus area in the US, Canada and China as an alternative to conventional oil and gas for meeting growing energy needs.


Working toward self-sufficiency in petroleum by 2030: Moily


As per the available data, six basins -- Cambay (in Gujarat), Assam-Arakan (in the North-East), Gondawana (in central India), KG onshore (in Andhra Pradesh), Cauvery onshore and Indo Gangatic basins, hold shale gas potential.


"In US, the advent of shale gas has transformed the energy landscape over the past six years. It has made US a gas surplus nation from a gas importing country," he said.


Canada too has changed after shale gas, he said.


The Directorate General of Hydrocarbons (DGH), the Oil Ministry's technical arm, has proposed to offer areas for exploration shale gas on royalty and production-linked payments to the government.


The government, he said, is working on a new policy for exploiting gas lying below coal seams, called Coal-Bed Methane.


Moily said he has formed an expert committee under Vijay Kelkar to suggest roadmap for cutting India's dependence on imports to meet its oil needs.


India currently imports as much as 79 per cent of its oil needs and the Ministry wants this to be cut to 50 per cent by 2020 through intensive exploration and exploitation of untapped reserves.


"I see import dependence coming down by 50 per cent by 2020 and by 75 per cent in 2025. By 2030, we should be self- reliant," he said.


Moily said the idea is to create an investor-friendly environment that will encourage companies to take exploration risk to raise production.


"Already we have taken a decision to fast track approvals for exploration projects by reducing the time taken from 36 months to 18 months," he said.


Different studies have put recoverable reserves of shale gas between 6 trillion cubic feet and 63 trillion cubic feet.



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Will Masala Library get lucky with a Michelin star?

Zorawar Kalra, thirty-five-year-old management graduate from Boston's Bentley Business University has an entrepreneurial bent of mind and a genetic love for food. It is no surprise that for the last six years since his return to India, Zorawar has turned restaurateur.

Zorawar and his father, celebrity food writer and chef, Jiggs Kalra have now partnered with one of India's leading hospitality players, Mirah Hospitality to launch Massive Restaurants, which will also bring to market this year three separate offerings; 'Masala Library' by Jiggs Kalra, a fine dining restaurant chain, 'Made in Punjab' which is a casual diner, as well as signature gourmet brand 'Mithai'. Zorawar has massive plans and he wants to create Rs 500 crore listed entity in five years.

When Zorawar Kalra decided to get into business he did not think twice about and sticking to the space he knew best, food. In 2007 Zorawar partnered with Amit Burman's Lite Bite Foods to launch Punjab Grill by Jiggs Kalra, a chain of fine dining restaurants.

Having tasted critical acclaimed with Punjab Grill and Street Foods of India, Zorawar in 2012 decided to start up once again. He exited the joint venture with Lite Bite Foods to Massive Restaurants with his father Jiggs Kalra. The father son duo has a majority stake in the venture while Gaurav Goenka's Mirah Hospitality has been brought in as a strategic partner.

In phase one Zorawar plans to use Rs 25 crore, to launch two fine dining restaurants, Masala Library by Jiggs Kalra in Mumbai and Delhi, by June this year and then focus on brining their casual diner, Made in Punjab and a premium Mithai store to the market as well.

Speaking about his passion, Zorawar Kalra, Founder & MD, Massive Restaurant says, "One of the things that I am good at is of understanding the pulse of the market. I am good at understanding what the Indian people want, their taste buds. So, whenever I make a restaurant, I know I am already developing a concept that caters to Indians. I am an Indian at heart, I will always be and I love my cuisine. I love Indian food more than anything else."

Currently, managing a team of 25, Zorawar expects to have 200 employees on board in the next six months as his restaurants open. Karla junior admits that his biggest competitive advantage is the five decades of experience that his father Jiggs Kalra brings to the table.

With his father guiding him on getting the food right, Zorawar is focusing on getting the nuts and bolts of the business right in the market that is very competitive and growing at 20-25 percent annually.

It is a serious matter of pride for us to have my father as our mentor says Zorawar. The Massive Restaurants' mentor is Jiggs Kalra and he is the driving force behind the culinary excellence that we are trying to pursue. It is a great asset to have a person like my father because it gives us a bit of added help in the beginning but it is also a lot of added pressure because its his name at the door and you have to work extra hard to make sure that everybody that walks into the door says something good, he adds.

So, while getting the food and beverage (F&B) concepts right is critical, Zorawar is looking to leverage Mirah Hospitality's experience in real estate management and operational matters to reach the target of 200-300 percent growth rate within the next three years.

Concentrating on the Mumbai and Delhi markets as of now, Zorawar plans to take Massive international within the next 18 months.

Zorawar questions, why cannot we do what the Chinese did with their cuisine? The Chinese cuisine he says has been accepted phenomenally well. It is one of the popular cuisines practically in any country of the world; whether in North America or Asia or Europe or Australia and the Chinese restaurants all over are doing very well. So, Zorawar says, "I want that to happen with Indian cuisine. I think Indian cuisine is one of the very few cuisines that have a culinary philosophy. It has so much delicacy, so much sophistication. It is one of those art forms that India should be most proud of."

Zorawar has his eyes firmly on one dream, to make Masala Library by Jiggs Kalra, India's first Michelin star restaurant. He teed off well and plans to open a 130 restaurants across the three categories by next three years and in five years, Zorawar plans to hit Rs 500 crore in revenues and list Massive Restaurants in the capital market as well.



21.03 | 0 komentar | Read More
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