India on the Move - 2020

Developed India .....not too far ...

February 26, 2007

Reliance to set up $3 billion petchem unit

MUMBAI (Reuters) - The board of Reliance Industries Ltd., India's most valuable firm, approved a plan on Saturday to set up a new petrochemicals unit and issue 120 million warrants to its owners to expand its equity base.
The company would invest $3 billion in the petrochemicals project, designed to have an annual capacity of 2 million tonnes, and is expected to be completed by 2010/11, according to a statement from the firm.
The cracker will make ethylene, propylene and other special derivative products, it said.
Reliance Industries is the world's top maker of polyester yarn and fibre and also runs a 660,000 barrel per day refinery in Gujarat.
The company's board approved a preferential allotment of 120 million warrants to its backers, including chairman Mukesh Ambani.
After the conversion it would increase the firm's paid-up capital to 15.13 billion rupees ($342 million) from 13.93 billion, the statement said.
Shares in Reliance Industries ended flat at 1,412.80 rupees in a weak Mumbai market on Friday.
The company also reiterated its plans to raise up to $2 billion from overseas markets to fund a capital spending plan for its oil and gas business.
($1 = 44.2 Indian rupees)
Source : Reuters

Kalam hopes project will help improve life in 1,098 villages

GULBARGA: President A.P.J. Abdul Kalam, who launched the Suvarna Gramodaya Project by beating the "Nagari" (traditional drum) at Srinivas Saradgi village on Sunday, hoped that the project would help improve the quality of life in the 1,098 selected villages with increased opportunities for entrepreneurship.
Dr. Kalam devoted most of his 12-minute address to visualising the projected development in the selected villages and complimented the Government for its plan to include 1,000 villages every year under the project.
He said the success of the project depended on the management of the funds available and the participation of government agencies, non-governmental organisations, educational institutions and small industries.
He said the Government should take steps to ensure that per capita income in these villages increased three times and the villagers became literate.
The President stressed the need for optimum utilisation of the water available in these villages for their economic improvement by reviving the water bodies.
Dr. Kalam said for achieving the objective of overall development of the villages and their economic empowerment, the Government should take initiatives by propagating horticulture and floriculture along with traditional agricultural practice. Agro processing units and garment units and small industries should also come up in these villages. Only a multiple production scheme of all commodities available in the villages would ensure their orderly progress. He said the Government should give importance to providing health facilities and these villages should be made free of diseases such as tuberculosis, polio and malaria. Infant mortality rate should be brought down to 10 per 1,000 at the end of 2012, he said. People in these villages should be extended telemedicine facilities. The Yeshaswini Health Insurance Scheme should be extended to the people of these villages, he said. These villages should be provided with amenities such as drinking water, drainage, sanitation and solar lighting and every family should be given a house to live in.
Chief Minister H.D. Kumaraswamy, Deputy Chief Minister B.S. Yediyurappa and Union Minister of State for Planning M.V. Rajasekharan spoke. Rural Development and Panchayati Raj Minister C.M. Udasi welcomed the gathering. Leader of Opposition in the Assembly N. Dharam Singh was present.
Source : Hindu

February 21, 2007

IT and India -- Professor Amartya Sen's keynote address at NASSCOM leadership forum

Some admirations come from near, others from very far. My respect and reverence for the IT industry in general and the extraordinarily dynamic and triumphant Indian IT industry in particular have come, by necessity, from some distance, since I am a dabbler in things far away from IT services and software. When the invitation came to attend this year's NASSCOM meeting and the leadership forum, I thought that this either indicated some mixing up of my identity ("wake up, wake up," I wanted to say, "I teach non-IT subjects at a university!"), or alternatively, it reflected generous interest of NASSCOM leaders to reach out (or as my students say, "hang out") beyond their principality.
Of the two possibilities, identity confusion is the more exciting. My late friend Isaiah Berlin, the philosopher, recounted to me his exciting experiences when he was invited to a musical gathering under the mistaken impression that he was Irving Berlin, the musical composer, rather than Isaiah Berlin, the political philosopher. Apparently, the assembled gathering was somewhat disappointed by Isaiah Berlin's inability to respond to repeated requests to provide some insights into the melodies from Annie Get Your Gun or Call Me Madam. And, of course, Sen is a more common name than Berlin , offering more opportunity of identity confounding. Indeed, I was once asked in a gathering of very energetic and very globally minded Ugandan students - this happened at the Makerere College in Kampala - whether I, Amartya Sen, was any relation of Sun Yat Sen. I had to tell my interlocutor, "No, but we are trying hard."
It is, however, the second possibility - not identity confusion - on which I want to speak this afternoon, that is about the possibility of the IT industry to reach out beyond its principality. I want to talk not, of course, about my being here at this NASSCOM meeting, but about the case for the IT industry to bring its influences somewhat beyond what can be seen as its traditional domain.
Of course, the idea of what counts as "traditional" is hard to articulate in the case of a field of enterprise as new as information technology. Indeed, a little over a century ago, in 1885, when the Indian National Congress had its first meeting in Bombay, which was attended by among others Jamsetji Tata (he would establish his new "Swadeshi mills" next year), Jamsetji would have been, I imagine, a little puzzled if he were told that the enterprise he was pioneering would soon include a huge operation in software and IT - indeed the largest in the country (my friend Ramadorai, who heads it, is here). The importance of information has, of course, been acknowledged over many millennia, but the ideas of IT technology and software are quintessential contributions of contemporary modernity - not something with any ageless recognition. Indeed, the entire idea of a National Association of Software and Service Companies (that is, NASSCOM) would have appeared quite mysterious to the pioneering industrial leader of India. As it happens, the domain of IT is still evolving, and I would like to argue for taking an even broader view than has already got established.
My point is not that the IT industry should do something for the country at large, for that it does anyway. It already makes enormous contributions: it generates significant incomes for a great many Indians; it has encouraged attention to technical excellence as a general requirement across the board; it has established exacting standards of economic success in the country; it has encouraged many bright students to go technical rather than merely contemplative; and it has inspired Indian industrialists to face the world economy as a potentially big participant, not a tiny little bit-player. My point, rather, is that it can do even more, indeed in some ways, much more. This is partly because the reach of information is so wide and all-inclusive, but also because the prosperity and commanding stature of the IT leaders and activists give them voice, power and ability to help the direction of Indian economic and social development.
2
Let me begin by asking a question that no one here will, I think, ask (because everyone I meet here seems so polite and well-behaved): why should the Indian IT industry have any sense of obligation to do things - more things - for India, more than what happens automatically from its normal operations (as a by-product of business success, rather than as a deliberated goal to be advanced, among other demands and necessities)? Why assume there is any obligation at all for IT to do anything other than minding its own business?
I think part of the answer lies in reciprocity. The country has made huge contributions, even though they are not often clearly recognised, to help the development and flowering of the IT industry in India, and it is not silly to ask what in return the IT might do for India .
But how has the country helped? Perhaps most immediately, the IT sector has benefitted from the visionary move, originally championed by Jawaharlal Nehru, to develop centres of excellent technical education in India, such as the IITs, to be followed by the Institutes of Management and other initiatives, aimed at enhancing the quality and reach of Indian professional and specialized education. Despite Nehru's moving rhetoric in favour of literacy for all (which was plentifully present even in his celebrated speech on the eve of independence on 14th August 1947 - the speech on India 's "tryst with destiny"), he in fact did shockingly little for literacy. I would suggest that Jawaharlal Nehru did not really think through how to ensure the practical realization of his goal of literacy for all, in which he did believe with sincerity and conviction, but not with any sense of practicality. It was, however, entirely different as far as technical education is concerned - here Nehru's sense of ways and means nicely supplemented his fervent passion. India was not only the first poor country in the world to choose a robustly democratic from of governance, it also was the first country with grinding poverty to give priority to the development of technical skill and the state-of-art education in technology. And from this the IT sector has benefited a lot, since the entire industry is so dependent on the availability, quality and reach of technical education.
However, IT's links with India 's past goes back much further than that. The nature of Indian society and traditions have tended to support the pursuit of specialized excellence in general and the development of IT in particular. There has been a historic respect for distinctive skills, seeing it even as a social contribution in itself. Indeed, even the nasty caste system, which has so afflicted the possibility of social equity in India, has tended greatly to rely on - and exploit - the traditional reverence for specialized skill, which, in its regimented form, has been used to add to the barriers of societal stratification. There is a tradition here that can be taken in many different directions, and it is a matter of much satisfaction that the IT industry's use of the same respect is remarkably positive and potentially open and inclusive. I will come back to that question of inclusiveness later on (it is an important subject on which there is a case for more deliberation and action), but before that let me comment on a few other connections, since they are often missed, between the success of IT in India and some particular features of India's past.
Going well beyond respect for specialized skill, there is also a general attitude of openness in India to influences from far and near - of admiring excellence no matter where it is produced. This is particularly important since the IT success of India did draw initially, as indeed was inevitable, on what was going on with much accomplishment abroad. The experiences of the Silicon valley, in particular, was very important for the yearning of skilled and discerning Indians to learn from others - and then to make good use of it. While many Indians have a deep preference for what we can see as total local immersion and even succumb to evidently strong temptations to denigrate things happening abroad (and this attitude rears its ugly head from time to time in contemporary Indian politics as well), there has also been for thousand of years a very robust tradition here of admiring, using and learning from excellence anywhere in the world.
The IT technical experts may not readily perceive that there is a remarkable similarity between (1) their own valuational commitment to learn what they can from anywhere which has good ideas to offer, and (2) the open and welcoming attitude to departures originating elsewhere which Rabindranath Tagore articulated with compelling clarity in a letter to a friend (in a letter to Charlie Andrews in fact) in the 1920s, at the height of our struggle of for national independence:
Whatever we understand and enjoy in human products instantly becomes ours, wherever they might have their origin. I am proud of my humanity when I can acknowledge the poets and artists of other countries as my own. Let me feel with unalloyed gladness that the all the great glories of man are mine. Therefore it hurts me deeply when the cry of rejection rings loud against the West in my country with the clamour that Western education can only injure us.
It is, of course, to the credit of Western centres of excellence in education and practice that they were so welcoming to learners from abroad (I think America and Europe do not always get enough recognition for its liberal priorities in this field, despite their narrow-minded national and local priorities in other areas), but it is also important to see that the interest and initiative of bright Indians to learn from abroad for domestic use was strongly founded on an open-minded willingness to comprehend, as Tagore put it, that "whatever we understand and enjoy in human products instantly becomes ours, wherever they might have their origin."
I want to point to one further connection between the development and achievements of Indian IT and the Indian intellectual traditions on which Indian IT draws. I don't refer here only to the love of mathematics that has inspired so many young Indians throughout history, and which is important in many different ways, for the efficacy IT operations. The general maths-friendliness of Indian intellectuals is relevant here: according to some accounts, the mathematician Bhaskara even tried to convince his daughter Lilavati that if she came to master mathematical puzzles then she would be highly popular when she went to parties, which seems to me be, to say the least, a little doubtful. But aside from being fascinated by maths, Indian intellectuals have also typically been very excited about arguments in general: it is a subject on which I have even indulged in writing a book (incidentally, in my last trip to Mumbai I was very impressed to be offered a cut-price pirated edition of my book, The Argumentative Indian, by a street vendor near the airport, who also had the exquisite taste of explaining to me that this book was "quite good" - and from him, also "very cheap").
IT is a hugely interactive operation and in many ways Indian IT has depended on what we can call TI, that is, "talkative Indians." It is not hard to see how a tradition of being thrilled by intellectual altercations tend to do a lot to prepare someone to the challenges of IT interactions.
3
Given what the country has done for Indian IT, it is not silly to ask: what specially can the IT industry do for India (other than what happens automatically without any deliberate pursuit of non-business ends)? This seems to me to be right, but I would also like to emphasize that historical reciprocity is not the only - perhaps not even the most important - reason for being interested in the social obligations of the IT industry. Many considerations arise there.
There is, of course, the elementary issue of the obligation of those who "make it" vis-a-vis those who do not manage quite so well, which is a very basic ethical demand that, it can be argued, society places upon us. This raises immediately the question what any prosperous group may owe to others not so well placed. This is not only a reflective demand for social deliberation - part of what Immanuel Kant called a "categorical imperative" - but it is also a part of enlightened business operation. There is, as it happens, a very well established tradition in a part of Indian business to do just that, particularly well exemplified by the Tatas for example, through various socially valuable activities such as building hospitals, research centres and other social institutions of high distinction. I am impressed to see that many of the major IT leaders seem to be very seized of this challenge.
If that possible role is obvious enough, there is some need to understand better other roles in which the IT industry can make a very big difference in India. As it happens the key to the success of IT, namely accessability, systematization and use of information is also very central to social evaluation and societal change. There is, in fact, a very foundational connection between information and social obligation, since the moral - and of course the political - need to pay attention to others depends greatly on our knowledge and information about them.
Indeed, already in the 1770s (more than two hundred years ago), that remarkable Scottish philosopher, David Hume, had noted the importance of increased intercourse in expanding the reach of our sense of justice. He had put the issue thus (in his chapter "Of Justice," in An Enquiry Concerning the Principles of Morals):
....again suppose that several distinct societies maintain a kind of intercourse for mutual convenience and advantage, the boundaries of justice still grow larger, in proportion to the largeness of men's views, and the force of their mutual connexions. History, experience, reason sufficiently instruct us in this natural progress of human sentiments, and in the gradual enlargement of our regards to justice, in proportion as we become acquainted with the extensive utility of that virtue.
Negligence of suffering of others is sustainable, given human interest in justice and equity, only when we know little about that suffering. More information in itself goes a long way to breaking that chain of apathy and indifference.
This foundational connection also gives the information industry a huge opportunity to help India by trying to make its contribution to the systematization, digestion and dissemination of diverse clusters of information in India about the lives of the underdogs of society - those who do not have realistic opportunity of getting basic schooling, essential health care, elementary nutritional entitlements, and rudimentary equality across the barriers of class and gender. This can also be said about problems of underdeveloped physical infrastructure (water, electricity, roads, etc.), as well as social infrastructure, that restrain the broad mass of Indians from moving ahead. There are particular causal connections also here: an enterprise that hugely depends on the excellence of education for its success - as the IT sector clearly does - has good reason to consider its broad responsibility to Indian education in general.
I do not know enough about the IT operations to see whether all this can be turned into a business proposition as well. But my point is that even if it cannot be so transformed, it is something that the IT sector has good reason to consider doing. Can there be a group initiative in any of these fields? Can NASSCOM itself play a catalytic role here? Informational issues are thoroughly rampant in morality and politics, and in many direct and indirect ways, the preoccupation of the IT enterprise links closely with the foundations of political and moral assessment and adjudication.
Even though in this presentation I am mainly concentrating on domestic issues, I should mention in passing that the role of information and informed understanding can also be very large in the pursuit of global peace and in defeating ill-reasoned violence. When we consider how many of the brutalities in the world today are linked with ignorant hostility to cultures and practices abroad, we can appreciate the contribution of informational limitation, among other causal factors, in cross-border belligerence. I could have talked about that too, in developing some ideas presented in my last book (Identity and Violence), but given my time limits I will resist that temptation.
4
I return now to the domestic scene. In emphasizing the role of the moral domain for the IT sector to feel some responsibility towards making India a more equitable country, I do not want to give the impression that there is not also a prudential case for going in that direction. One of the huge obstacles to the domestic development of the IT sector is the size of the local market, which is still quite small, despite all the recent expansions. Indian IT has done very well in making excellent use of the global market, but competition there is likely to be increasingly fierce. Other countries are trying to learn from the experience not only of America and Europe but also from India , and while India has some peculiar advantages in the IT field (which I have already discussed), the barriers may well be gradually removed in many countries - indeed even in many poor countries - in the world. China, which has a much larger domestic market already and will continue to expand that market very fast, is not as vulnerable as we may be, in this particular respect.
As it happens, one of the reasons for the larger domestic reach of IT in China is its much wider base of good basic schooling. So, what is an issue of equity, on one side, is also a matter of central importance for prudential reasoning about domestic economic expansion, on the other. The same goes for a much wider base of elementary health care in China, though this, as it happens, has been going through some turmoil since the Chinese economic reforms of 1979 which effectively abolished free health care for all, through insisting on privately purchased health insurance. It is a subject on which I have written elsewhere, so I will not go further into it here, other than noting that the Chinese authorities are quite receptive now of critical scrutiny of the present system of health care that China has ended up having. This, in fact, is in sharp contrast with the past when we had made similar criticisms earlier, and I do know that very serious critical scrutiny is currently going on in Beijing on this, in a very constructive way. I expect major changes to happen in China in a more inclusive direction before long.
Excessive reliance on private health care in India for the most elementary problems of ill-health and disease (resulting mostly from the limited size, reach and operational efficiency of public health facilities) is similarly a barrier to the availability and entitlement to health care for all Indians, and this obstacle urgently needs removing. These are all subjects on which the IT sector is well placed to provide considerable enlightenment and guidance. As it happens, the IT sector itself will indirectly benefit (for reasons I have already outlined) from playing a constructive and deliberated role in widening the base of social and physical infrastructure. But the more immediate - and also the more foundational - reason relates, I think, to demands from the moral domain to which the IT sector has reasons to respond. This is so, I have argued, for a variety of reasons, varying from Indian IT's unequal current success and its debt to India's traditions and priorities, on one side, to - and this is often unrecognised but happens to be extremely important - the central role of information in moral reasoning, on the other. There is indeed, I would argue, something of a socially connected obligation here, the recognition of which could make a huge difference to the future of India.
Source :hindu

Anil Ambani raises stake in TV Today

The Anil Ambani Group has increased its stake in media house TV Today Network to nearly 12 per cent by acquiring an additional one per cent stake in a deal that could be estimated at about Rs 8 crore (Rs 80 million). ADA Group company Reliance Capital's subsidiary Sonata Investments bought 5.83 lakh shares, taking its total to 69.20 lakh shares. This represents a shareholding to 11.93 per cent, TV Today informed the Bombay Stock Exchange. The shares in the media company, which runs the 'Aaj Tak' and 'Headlines Today' news channels, were purchased in an open market transaction that was reported on February 19. Going by the intra-day high of TV Today at Rs 137.75 on February 19, Sonata Investments could have bought the shares for about Rs 8.03 crore (Rs 80.3 million). On February 12, Sonata Investments bought 0.96 per cent stake for around Rs 6.50 crore (Rs 65 million), taking its stake to above 10 per cent in TV Today. Prices of TV Today scrip have increased by nearly 25 per cent since the beginning of the month as ADAG has been picking up shares. The scrip closed at Rs 100.75 on January 31 and currently it trades at Rs 126.51 per share. Anil Ambani Group has been actively purchasing stakes in media companies for sometime now. Recently, it had acquired over six per cent in Global Broadcast News, which runs the IBN7 and CNN-IBN news channels, for Rs 87 crore (Rs 870 milllion) through Reliance Capital.
source : rediff

GE aims for $1 bln in India 'Ecomagination' sales

BOSTON (Reuters) - General Electric Co. said on Tuesday it aimed to generate $1 billion in annual sales through its "Ecomagination" program in India by 2010.
The program focuses on products that are energy-efficient or in other ways environmentally sustainable.
The world's second-largest company by market value, behind Exxon Mobil Corp., also said it had signed a memorandum of understanding to sell more than $2.2 billion of jet engines to Air India.
Overall, GE currently generates about $2 billion in revenue in India. It aims to boost that to $8 billion by 2010.
The company reported 2006 revenue of $163.4 billion
source: reuters

Mallya seals Scotch deal, pours himself a stiff one

It may not be as expensive an acquisition as Lakshmi Mittal’s of Arcelor or Ratan Tata’s of Corus. But the Vijay Mallya-owned UB Group’s takeover of the Glasgow-based Whyte & Mackay, manufacturers of Scotch whisky, is an equally important – and dramatic – achievement.
Sources close to Mallya said the deal had been sealed for £550 million (Rs 4,675 crore), and that the formalities would be completed within a fortnight. Whyte & Mackay’s chairman, Vivian Immerman, confirmed that Mallya had spent the last three days in Scotland. “You can’t miss his jet. I can’t deny it,” he declared, adding that the due diligence process was on.
With this acquisition, the UB Group will add W&M Scotch whisky, Vladivar vodka and Jura single-malt whisky to its well-known Indian brands of Kingfisher lager, Bagpiper and McDowell’s No.1 whiskies. W&M holds a significant 9 per cent share of the global Scotch whisky market, and is a household name in the United Kingdom.
It is a triumph for Mallya after the long and fractious battle he has waged with the UK’s Scotch Whisky Association (SWA), which blocked his efforts to sell India-made whisky – which would have been much cheaper than their brands – in Europe. The SWA claimed Indian whiskies were not whiskies at all, since they were distilled from molasses and not from malt.
Mallya famously responded with a press conference in London last year where he accused the SWA of ‘commercial imperialism’. "India is no longer a British colony," he thundered. In turn he lobbied with the Indian government against the SWA’s efforts to get the high tariff on imported Scotch whisky in India lowered.
Source : HT

February 17, 2007

Idea IPO over subscribed 42 times

New Delhi: The initial public offer of Idea Cellular was subscribed over 42 times on the last day of its offer and the 90.96 lakh-share IPO of New Delhi-based AMD Metplast opened on Thursday.
The offer carrying a price-band of Rs 65 to Rs 75 per share plans to mop up funds aggregating Rs 2,125 crore, excluding a green shoe option of Rs 318.75 crore.
Idea Cellular IPO was subscribed over 42 times receiving 1372.98 crore bids for its offer of 32.69 crore equity shares.
On Wednesday, the offer received robust investor response especially the QIBs with the portion reserved for them getting oversubscribed by over 12 times.
The IPO which opened today that of AMD Metaplast, provider of packaging solutions for the beverage industry, opened to raise funds to the tune of Rs 76 crore at the upper end of its Rs 65-75 price-band.
It received 20.14 lakh bids for the 90.96 lakh of Rs 10 each shares on offer.
The IPO would close on February 23. AMD Metplast has decided to exploit the increasing growth in the domestic market, it is setting up a new project to manufacture PET preform (27gm) having a total capacity of 2700 MT per annum.
Chartered Capital and Investment is the lead manager to the issue.
Source: ibn live

Biocon plans Rs 1000 cr plant in Andhra Pradesh

In a major boost to the biotechnology profile of Andhra Pradesh, Bangalore-based Biocon has announced plans to set up a vaccine biopharma manufacturing plant and a high-end R&D facility at an investment of Rs 1,000 crore (Rs 10 billion).
While the manufacturing facility would be located in the Jawahar Pharma City, a pharma special economic zone near Visakhapatnam, the R&D facility would be set up in the phase 3 biotech park near Hyderabad.
Chief minister Y S Rajasekhara Reddy handed over the allotment letter for 50-acre land in the Vizag Pharma City to Kiran Mazumdar-Shaw, chairman and managing director of Biocon, who apprised the CM about the company's plans for Andhra.
The biopharma major is also acquiring 10 acres of land for the research facility in the biotech park, which is being developed by the Andhra Pradesh Industrial Infrastructure Corporation.
Though the chief minister's office maintained that the investment proposed by the company was about Rs 1,000 crore, Shaw, however told the media that Rs 500 crore (Rs 5 billion) would be invested in the Visakhapatnam facility. The company plans to start work on the Visakhapatnam project in six months.
About 500 employees would be recruited in the first phase, according to Shaw. According to government officials present at the meeting, while the major portion of the investment would go into the proposed biopharma manufacturing project in Vizag, the company would invest about Rs 500 crore in the first phase.
Over 2,000-acre Vizag Pharma City, being jointly developed by Ramkey Group and APIIC, has state-of-the-art facilities, including a common effluent treatment plant, besides park-level environmental clearance from the Centre that will help the company start the project work just in two-three months, official pointed out.
Several companies both local as well as outside the country such as SNF Chemicals of France have already acquired land in the park.
Biocon, which has a vantage position in the global market for generic stations, is focusing on diabetes and cancer drugs and entering into the field of recombinant biologicals such as insulin and monclonal antibodies.
Source : Business Standard

2,500-cr. car unit to come up on city outskirts

HYDERABAD: Hyderabad-based MLR Motors Private Limited is setting up a Rs. 2,500-crore car manufacturing unit on the outskirts of Hyderabad and plans to roll out its entry-level diesel cars in 2009.
MLR Motors, which is headed by B. V. R. Subbu, former president of Hyundai Motor India Limited, will initially invest Rs. 1,250 crores in the car project. This will include an investment of Rs. 500 crores for expansion of the facilities in Lokesh Machines Limited (LML), a leading manufacturer of machine tools and automotive components, which has promoted the motor company.
Lokesh Machines Managing Director M. Lokeswara Rao told reporters here on Friday that the company was planning 900 cc and 1500 cc diesel variants initially and would go in for CNG and petrol variants later.
<137> Daewoo plant
<137>"Plans are afoot to use Daewoo's Surajpur plant partially to roll out the new cars," he pointed out. The defunct Daewoo plant has been recently acquired by Crosslinks, a company that has been promoted by Mr. Subbu and Mr. Ajay Singh of Spicejet. "We have refused the land offered by the Andhra Pradesh Government free of cost but we have paid handsome compensation to the displaced people to acquire land for the car project," Mr. Rao said, adding that the work would begin in April this year.
MLR Motors plans to manufacture most of the car's components, including the engine blocks and gearboxes at the 250-acre ancillary unit coming up near the State capital.
Shareholding pattern
Mr. Rao said he would hold 30 per cent share and Mr. Subbu 21 per cent. The remaining equity would come from private equity partners. He explained how the initial response to his plans to set up a car manufacturing plant was poor. "But in the last two months, 37 leading global design houses came to LML plant expressing their willingness to support the car project," he added. Asked how the proposed car would look, Mr Rao said it would be in tune with the market needs at the time of its launch in 2009. Quizzed further if it be like the Hyunda's Santro or Daewoo's Matiz, the LML chief said: "If our cars are like the two models, who will buy it. The cars will definitely be different."
Source : Hindu

India is the new China at world's biggest wireless fair

By Georgina Prodhan and Santosh Menon
BARCELONA (Reuters) - The mobile telecoms industry turned its focus on India at this year's 3GSM trade fair and away from China, after years of talking about little else but China's huge market and potential third generation licences.
Vodafone's $11 billion deal to buy a controlling stake in India's fourth-biggest mobile phone firm, Hutchison Essar, announced on the eve of fair, set the agenda as those participants who had not already done so woke up to India's potential.
With 150 million subscribers but market penetration of still only 15 percent, India is already the world's fourth-biggest mobile market behind China, the United States and Russia.
It is also the fastest-growing major market and is expected to overtake Russia this year. At its current growth rate, there will be half a billion mobile subscribers in India by 2010.
Mobile group Orange was one of Vodafone's rivals that looked on with some envy at 3GSM in Barcelona this week, with Chief Executive Sanjiv Ahuja saying he could follow Vodafone's lead.
"India is a fast-growing market, and if a right opportunity emerges at the right kind of valuation, we would look at it," he told Reuters in an interview.
Although analysts said near-term multiples made it look as though Vodafone had paid a high price for Hutchison Essar, most agreed the deal was a no-brainer for the UK operator.
Meanwhile, Indian carriers such as top mobile operator Bharti Airtel said they were keen to expand abroad.
Bharti Airtel Chairman Sunil Bharti Mittal told Reuters in an interview the company was in "hot pursuit" of overseas telecoms acquisitions.
ALL QUIET ON THE CHINESE FRONT
There was little noise at the fair, on the other hand, about China, which in past events was often likened to a hare against India's tortoise. Top Chinese players such as China Mobile and China Unicom were nowhere to be seen.
Western telecoms equipment makers, who had talked in past years about the opportunities to be opened up by China's awarding of third-generation licences, appeared to have grown tired of the subject.
"I've given up trying to predict when the licences will be awarded," Qualcomm Chief Executive Paul Jacobs told Reuters in an interview at 3GSM. "It heats up; then it cools off."
A couple of tens of thousands of subscribers are currently taking part in trials in China using the home-grown TD-SCDMA third-generation standard, which was accepted as an international 3G standard as long ago as 2000.
The world has been waiting since then for the Chinese government to award licences so that the construction of commercial networks can start. For several years now, the awards have been seen as imminent.
As recently as November, Tang Ru'an, vice president of the Datang Group, which is the lead developer of the Chinese standard, told an industry forum that this February, 18 months before the Beijing Olympics, would be the last possible date to have something in place.
The 3GSM fair would have been an ideal forum for such an announcement, but instead the China Pavilion housed just a few minor firms and attracted little attention.
Lin Cheng, European president of Chinese telecoms equipment maker ZTE Corp., told Reuters in an interview at the fair: "I think the government wants to make sure it chooses the right standard. Third-generation is still improving."
But he said it would take at least five to 10 years to deploy the standard across the vast country.
Many industry observers noted that newer and better wireless standards will have been introduced long before then, such as WiMAX and 4G technologies which are due to start commercial operations as early as this year, and that China's own 3G standard is increasingly looking "too little, too late".
Source : Retures

Delhi airport's $1.94 bln revamp begins

By Nigam Prusty
NEW DELHI (Reuters) - Work started on Saturday on a project that will enable New Delhi airport to handle 37 million passengers a year by 2010, more than double its current capacity, aviation officials said.
The 85-billion rupee ($1.94 billion) revamp will see a third terminal building constructed in the next three years and a new runway by 2008 to ease congestion at the airport.
The new runway -- the airport's third landing strip -- would be one of Asia's longest at 4,430 metres (14,530 feet) and would allow Airbus A-380 super jumbos to land, Delhi International Airport Pvt. Ltd. (DIAL) said.
Work will be completed before the Commonwealth Games open in New Delhi in Oct. 2010.
The DIAL is a consortium in charge of developing, maintaining and operating New Delhi's Indira Gandhi international airport.
"With the completion of this airport, Delhi will boast of a world class airport which would not only cater to growing aviation traffic, but also serve as a benchmark for other airports," DIAL managing director Srinivas Bommidala said in a statement.
India's booming economy and reforms have led to around half a dozen private airlines starting operations in the past three years, putting tremendous pressure on airports in big cities like New Delhi and Mumbai.
Passengers often have to spend over an hour in the air as planes hover overhead airports, waiting to land, and complain of poor infrastructure and facilities.
"We will see that infrastructure does not remain a bottleneck to India's economic growth," Sonia Gandhi, head of the ruling Congress Party, said after unveiling the plaque that marked the start of construction of the new terminal building.
Analysts say creaky infrastructure may impede a rise in India's economic growth rates to double digits in coming years.
The economy is set to grow at 9.2 percent in the year ending March 2007.
Passenger traffic is set to grow at 20 percent annually for the next 10 years and domestic airlines would need at least 400 new planes by 2012 to the meet such growth.
DIAL, a joint venture of India's GMR Infrastructure Ltd., German airport operator Fraport and the state-run Airports Authority of India, won the rights in February 2006 to develop New Delhi airport.
Source : reuters

February 15, 2007

Tata Steel to raise Rs 11,000 cr equity, public issue likely

Tata Steel Ltd is set to further dilute its equity to raise funds for the acquisition of Anglo-Dutch steel-maker Corus Group Plc and a public issue of Tata Steel equity is the preferred route right now. According to sources close to the developments, the company plans to raise around $2.5 billion (Rs 11,000 crore) by diluting its equity.
The total money to be raised for the Corus deal is $12.5 billion (Rs 55,000). Of this, a special purpose vehicle has been set up in London to raise another $8.5 billion directly as debt. This will be a non-recourse debt against the cash flow of Corus.
The remaining $4 billion (Rs 17,600 crore) will be raised by Tata Steel Ltd. ABN Amro and Standard Chartered are arranging a debt of around $1.5 billion (Rs 6,600 crore). This debt will be on the Tata Steel balance sheet and the interest to be paid out for this debt will affect the Tata Steel revenues to that extent. The remaining $2.5 billion (Rs 11,000 crore) will be raised as equity. Sources said Rs 11,000 crore was such a huge sum that the company would have to utilise all avenues of raising finances, including promoters equity, preferential allotment and public offering of its shares.
Tata Steel spokesperson, however, refused to comment. “The details of the financing for the Corus deal will be announced by the end of the month. We cannot say anything more right now,” he said.
While the financing is already in place, a lot of Indian banks are eager to jump on to the bandwagon. However, only some large banks such as the State Bank of India and ICICI Bank, who have the ability to lend in foreign currency, will be able to participate in the process. The Tata Steel scrip closed at Rs 438.55 on the national Stock Exchange on Wednesday, up 1.43 per cent from Monday’s close.

Tata Steel to raise Rs 11,000 cr equity, public issue likely

Tata Steel Ltd is set to further dilute its equity to raise funds for the acquisition of Anglo-Dutch steel-maker Corus Group Plc and a public issue of Tata Steel equity is the preferred route right now. According to sources close to the developments, the company plans to raise around $2.5 billion (Rs 11,000 crore) by diluting its equity.
The total money to be raised for the Corus deal is $12.5 billion (Rs 55,000). Of this, a special purpose vehicle has been set up in London to raise another $8.5 billion directly as debt. This will be a non-recourse debt against the cash flow of Corus.
The remaining $4 billion (Rs 17,600 crore) will be raised by Tata Steel Ltd. ABN Amro and Standard Chartered are arranging a debt of around $1.5 billion (Rs 6,600 crore). This debt will be on the Tata Steel balance sheet and the interest to be paid out for this debt will affect the Tata Steel revenues to that extent. The remaining $2.5 billion (Rs 11,000 crore) will be raised as equity. Sources said Rs 11,000 crore was such a huge sum that the company would have to utilise all avenues of raising finances, including promoters equity, preferential allotment and public offering of its shares.
Tata Steel spokesperson, however, refused to comment. “The details of the financing for the Corus deal will be announced by the end of the month. We cannot say anything more right now,” he said.
While the financing is already in place, a lot of Indian banks are eager to jump on to the bandwagon. However, only some large banks such as the State Bank of India and ICICI Bank, who have the ability to lend in foreign currency, will be able to participate in the process. The Tata Steel scrip closed at Rs 438.55 on the national Stock Exchange on Wednesday, up 1.43 per cent from Monday’s close.

February 11, 2007

Indian GSM carriers signed up over five million new users in January

MUMBAI (Reuters) - Indian GSM carriers signed up over five million new users in January, taking their total user base to 110.5 million, a telecoms industry body said on Friday.
The Cellular Operators' Association of India, which represents 9 carriers offering wireless services based on the widely prevalent GSM platform, said 5.03 million users signed up in January, compared with 4.63 million in December.
Call rates of as low as 2-3 U.S. cents a minute are luring customers in the world's fastest-growing wireless services market, where less than 14 percent of the country's billion-plus population own a mobile phone despite rapid growth.
The mobile user base of Bharti Airtel Ltd., India's top provider of such services, rose to 33.7 million after it added 1.76 million customers.
Second-ranked GSM firm Bharat Sanchar Nigam Ltd. lured 823,813 new customers, boosting its user base to 24.44 million.
Hutchison Essar Ltd. added 1.11 million customers, lifting its user base to 24.41 million.
Source : Reuters

Science 'can lift India's poor' .......says president Dr Abdul Kalam

India's hopes of becoming an economically developed nation by 2020 depend on its continuing to drive forward through science and technology, the country's president Dr Abdul Kalam has said.
Mr Kalam, himself a former scientist, said that nearly a quarter of the country's population could be moved out of poverty if the government continued to back technology as the source of growth.
"That means about 230m out of a billion people will have been lifted up," he told BBC World Service's Discovery programme.
"The growth of the economy is very important - and if the growth of the economy is important, so is science and technology, because it drives this growth."
Economic key
Dr Kalam, who in 2002 became India's 11th president, was formerly an aeronautical engineer and father to the country's missile programme.
"Science brings two changes in life," he said.
One is a way of thinking - it elevates people.
"The second is that, as science transforms technology, it brings faster development to the nation. That's how, from 1947 onwards, science and technology became the top priority for all the governments."
Following the country's independence from Britain, India's first Prime Minister, Jawaharlal Nehru, described science as "one of the keys to economic development."
Dr Kalam explained that science had come to India's aid before - in 1953, when it was struggling with famine and required shipments of wheat to come in.
At that time, scientists and political leaders came together and decided to develop new methods of driving agriculture, he said. The result was 200m tonnes of domestically-produced food.
To aid the development of science in modern world, bureaucracy and government regulation has been relaxed, and Indian science and technology has moved in a new way. There is now, President Kalam argues, an ambition for Indian scientists to achieve as much at home as they do abroad.
Dr Rahunath Mashelkar, president of the Indian National Science Academy, said that the so-called "brain drain" had "always haunted us" - but that now, changes are taking place.
"During the last three years, more than 30,000 top-class professionals - scientists and engineers - have come back to the country," he added.
More than 200 multi-nationals have now set up research and development centres in India, including IBM, Microsoft, Shell, and General Electric.
"India is gradually becoming the land of opportunity," Dr Mashelkar said.
"The latest Intel chip is not being designed in the US - it's being designed in Bangalore."
'Three Ds'
But what is also of interest is the precise type of science being looked at.
For reasons that remain debateable, Indians have tended to excel in mathematics and physics, while life sciences have lagged behind.
But as biosciences become ever more important globally, the country is making efforts to restore the balance.
India is also looking over its north-eastern border, and the challenge coming from China.
China is India's rival for political influence, for manufacturing contracts, and also a rival in the worlds of science and technology.
"Countries like China are romping, whereas we are walking," Dr Mashelkar said.
"The kind of commitment and investment China has made is spectacular. They are giving their top 10 universities $125m. At the end of the day, they are saying they want 100 universities to be among the top 500 in the world.
"That kind of investment is something that, unfortunately, has not happened in India."
He added, however, that he believes India will ultimately triumph - owing to what he called the "three Ds."
"Firstly, democracy - which allows you to think freely.
"Secondly, demography - 55% of our people were born within the last 30 years. So we will have an enormous working population at a time when the rest of the working world is going to age.
"And the third is diversity. You need to be diverse to be innovative and creative, and we have phenomenal diversity."
But for President Kalam, there need not be such direct competition.
He told Discovery that his message is that an evolved, enlightened society - based on Indian ideas - can lead to "a peaceful, prosperous and happy planet."
"It's a three-dimensional approach, involving education with a value system, religion transforming into spirituality, and the most important, economic development for societal transformation in all the nations," he explained.
"The global implementation of this three-dimensional approach, in an integrated way, will lead to a peaceful planet yet."
Source : BBC

Let us improve relations, says Prodi

CHENNAI: Calling India a strategic partner, Romano Prodi, Prime Minister of Italy, said the two countries must start their level of engagement from scratch to "something substantial."
Speaking at a roundtable meeting with CEOs, organised by the Confederation of Indian Industry (CII) here on Saturday, Mr. Prodi said, "We must use all our instruments in order to improve our relationships." The Italian Prime Minister ticked "ignorance" as the reason for the hardly significant level of trade between the two nations, and said banks had a major role in facilitating cooperation among Small and Medium Enterprises (SMEs) on both sides. Conceding that there were attitudinal and cultural problems among the stakeholders, he said the SME sector was the backbone of the Italian economy.
Italy is strategic to the whole of the European continent, he said, adding that its ports and proximity to the Mediterranean would enable entrepreneurs to establish warehouses. Though his country considered infrastructure, tourism and other fields as potential areas of growth and cooperation, the sector deserving top priority would be mechanical instruments and machine tools, he said. Mr. Prodi also said Chennai was the focal point of the Indian economy.
New reality
Emma Bonino, Italian Minister for Trade, said, "We are fully reconciled with the new reality of India as a key political and economic player — not just in Asia." India was an important strategic player on the global scene and an essential partner for international stability, she said, adding that Italy appreciated this as an "irreversible reality."
The major role India has assumed on the economic and trade scene is fully reflected by the crucial influence it exerts on the World Trade Organisation (WTO) negotiations, she said. Pointing out that the year 2007 has been marked as "Special Year for India," Ms. Bonino said, "for the European Union and for Italy in particular, India is a partner of choice — one with whom we feel comfortable at the prospect of developing more intensive and closer economic and trade relations."
Italian firms have know-how, design skills and technology to offer to India in crucial manufacturing sectors. CII chairman R. Seshasayee said the forum would strive to elevate the level of engagement between the countries and added that entrepreneurs in India were now advocating removal of obstacles and were not looking for protection. He said the time had come to push for a European Union-India economic cooperative treaty.
Ram Shahaney, former president of CII, said the economic cooperation between the nations was not satisfactory, and added that the current visit of Mr. Prodi would give a thrust to a quantum increase in trade.
Source : Hindu

Sharath upsets second seed

Achanta Sharath Kamal’s commanding performance saw the country’s number one player upset second-seed Zi Yang 11-5, 11-3, 11-5, 8-11, 10-12, 11-9 to reach the semi-finals of the ITTF Pro Tour Indian Open.
The 24-year-old was aggressive from the start. Picking up his opponent’s serve, Sharath played at a pace that never allowed Yang to find his rhythm. After edging through the close fourth game, Yang began to use Sharath’s pace to attack and won the fifth. But the Commonwealth Games champion held forth in the next, sealing it with a strong serve.
He will meet Subhajit Saha in tomorrow’s semi, who beat Soumyadeep Roy, 11-6, 11-4, 10-12, 11-8, 6-11, 5-11,12-10. In the other semi-final, top seed Ning Gao meets Croatia’s Roko Tosic.
Among the women, Poulumi Ghatak beat Yue Sun in straight games. She meets second seed Meng Yu Yu. The other clash is between top seed Bei Bei Sun and Lu Ma Mung.
Source: Indian Express

Tamil lessons to be spiced up in Singapore

The Tamil Language Learning and Promotion Committee is introducing activities targeted at students from the pre-school to junior college levels."It is not possible to change a fundamental social trend like the fall in usage of mother tongues," the group's chairman S. Iswaran was quoted as saying by The Straits Times.But by reaching out to the young, an interest in the language may "possibly last a lifetime", said Iswaran, minister of state for trade and industry.The city-state's population is predominantly Chinese, but six percent are Indian.Among the activities planned to spice up language lessons are study trips to Tamil Nadu in India and Tamil language forums for parents.A soon-to-be launched website will enable parents to download podcasts of nursery rhymes in the language, the report said.
Source : HT

India to rein inflation from 2-yr high - Chidambaram

By Anurag Joshi
MUMBAI (Reuters) - The rise in India's inflation rate is due to strong growth and robust consumer demand but the government would use all possible measures to control the price rise, the finance minister said on Saturday.
The benchmark wholesale price inflation rate rose to a two year-high of 6.58 percent in late January, adding to expectations that last week's interest rate rise would be followed by further measures to calm prices.
The spike in inflation could not have come at a worst time for the ruling Congress Party as it faces polls in three states later this month and the government is keen get the rate back to its own comfort level of around 5.0 percent.
"GDP is rising at more than 9 percent. Year-on-year credit growth is little over 30 percent and money supply is close to 21 percent," Finance Minister Palaniappan Chidambaram told reporters.
"This is an unusual combination of factors. The government is determined to take all steps to moderate inflation. We have done it before and we are confident of doing it again."
Fearing a backlash in the elections, the ruling coalition headed by the Congress Party cut import duties on items ranging from cement to capital goods to palm and sunflower oils in January to check the rise in inflation.
For its part, the central bank announced a 50 basis point increase in the cash reserve ratio in December, which lowered the amount of funds banks had available for lending.
It followed this by raising its short-term lending rate by 25 basis points to 7.50 percent on Jan.31. But it left its borrowing rate unchanged at the quarterly policy review.
The central bank has said getting inflation down to its target range of 5.0-5.5 percent at the end of the financial year in March 31 is a policy priority.
The Reserve Bank of India was monitoring developments and could use all of its policy instruments including raising the cash reserve ratio to contain inflation, deputy governor Rakesh Mohan said on Friday.
The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it has covers a larger number of products and is published weekly.
Growth in India, Asia's fourth-largest economy, has averaged 8.3 percent in the past three years, leaving ports, roads and power generation overstretched. The government estimates the economy will grow 9.2 percent in 2006/07, its fastest pace in nearly two decades.
Source : Reuters

February 06, 2007

Sania to pair with Mahesh

Mahesh Bhupathi and Sania Mirza will pair up for the mixed doubles event at this year's French Open and Wimbledon.It will be the first time they play a grand slam together, though they had won the Afro Asian gold in 2003. The news was confirmed by Bhupathi who was attending a training session at his tennis academy in Nagpur. Sania has played doubles with Leander Paes and won the doubles gold at the Doha Asiad.

SOURCE : NDTV

Sania to pair with Mahesh

Mahesh Bhupathi and Sania Mirza will pair up for the mixed doubles event at this year's French Open and Wimbledon.It will be the first time they play a grand slam together, though they had won the Afro Asian gold in 2003. The news was confirmed by Bhupathi who was attending a training session at his tennis academy in Nagpur. Sania has played doubles with Leander Paes and won the doubles gold at the Doha Asiad.

SOURCE : NDTV

PM Manmohan Singh kicks-starts India's new NFL season

A country of more than a billion people, but a national team ranked 157th in the world.
The football equation in India does not add up.
And yet in the 50s and 60s, India won gold medals at the Asian Games, finished fourth in the Olympics and even qualified for the World Cup.
The problem is, that in a huge country, football is confined to a few regions.
Calcutta (Kolkata), the former capital of British India, is the centre of the game.
The Calcutta derby, Mohan Began against East Bengal, is a match to rival anything Rangers and Celtic can throw up. Goa has the bug, thanks to its previous rule by the Portuguese.
But elsewhere, football comes in a distant second to cricket.
"As cricket grew, interest in football declined," says Novy Kapadia, India's top football writer.
"Fewer states were actively promoting the sport, so Indian football couldn't take advantage of the country's huge population, with the numbers supporting and playing the game dwindling.
"And there's been years of neglect in both infrastructure and youth development."
Watching a second-tier game in the Delhi local league, it is hard to argue with that assessment.
Fewer than 100 people have turned out to watch. The standard of play is poor, and so is the pitch.
But there are plans to revitalise football in India.
NK Bhatia, secretary of the Delhi Soccer Association, says his region has been chosen for a pilot project to be launched by Fifa and the All India Football Federation next month.
"Football will be restructured at the grassroots level," he says.
"We've already conducted coaching for our school teams, 45 teams participated at the ages of 10 to 13 and 13 to 16. And we'll conduct a college league, for youth development.
"After that we'll develop into a semi-professional league, and then into fully professional."
Coaches, funded by Fifa and the Asian Football Confederation, will be placed with the clubs and every club in the Delhi league will have to have properly licensed trainers, and proper facilities at their grounds.
A similar project is already underway in the state of Manipur.
So that is the future, what about now?
India's National Football League, which is only 11 years old in its current form, is getting a new boost from television.
Zee Sports, a relatively new sports channel, has signed a 10-year deal with the AIFF to cover all Indian games and it plans to entice more viewers by offering a much slicker product.
"Ten years is a long time for a football contract," says Gary Lovejoy, the Chief Operating Officer of Zee Sports.
"The reason it is so long is that there is so much to do to develop the game here. There was little point in having Indian Football rights for just three years."
Lovejoy is an Englishman who has worked in sports television for most of his career.
He wants his product, visually at least, to match the best that Europe has to offer.
"We want to make Indian football look decent in the face of the high-quality production standards you get from the Premier League," he says.
"We're now covering football with up to 13 cameras, whereas previously the rights holder in India had gone down to four or five cameras, which simply was not good enough."
European leagues, and especially the Premiership, or EPL as it is known in India, are increasingly popular, especially with the young, urban middle classes.
Lovejoy wants to tap some of that interest and convert it to the Indian game.
The problem is that while the television coverage might be getting slicker, the standard of play in the Indian NFL is still far short of that served up by the likes of Manchester United and Barcelona.
And outside the football hotbeds of Bengal and Goa the intensity of support is simply not there.
Kapadia has a suggestion: "There are many states in India which don't have a club culture, so allow them to field an XI which would have massive support because of regional pride."
There are lots of plans to bring Indian football up to the standard to be expected of a nation of more than one billion people.
They are all a long way from fruition, but do not think India is lost to football just yet.
source : BBC