‘Falling commodity prices, easing inflation will help RBI consider rate cut’

Mumbai, April 30:  

Amid falling commodity prices and easing inflation, the Ministry of Finance has again pitched for an interest rate cut by the Reserve Bank of India (RBI) in it annual monetary policy on May 3.

“We would be happy if the RBI continues the trend of softening the rates. To what extent, we would leave it to the wisdom of RBI,” Arvind Mayaram, Secretary, Department of Economic Affairs, Ministry of Finance, today said on the sidelines of a conference organised by FICCI-Asian Development Bank in Mumbai.

According to him, it’s not just the fall in commodity prices but inflation has also come down. “It (inflation) is coming down significantly. So we do believe there is some case for positive thinking on the interest rates,” Mayaram said.

In addition, good monsoon with an estimate of rabi crops doing well will further ease inflation, he added.

Inflation-indexed bonds

The Government is likely to issue inflation-indexed bonds (IIBs) next month. “The RBI is working on the details and they will come out with a programme for issuing them,” Mayaram said.

IIBs have been designed primarily to provide instruments to protect investors from inflation and give an instrument which is also productive in nature.

“There is also large demand for gold because it is seen as an inflation-indexed instrument. Therefore, we believe for the middle-class and poor, there should be another instrument which has almost the same characteristics (as gold) which provides them comfort and such that their savings are protected from inflation,” he said.

FDI, FII policies

On FDI and FII policies, Mayaram said the Government was looking at cleaning the definition of FDI and FII flows because “there are some grey areas and there has to be a clear definition”.

“The Government is reviewing the FDI policy. And therefore we need to see the steps to increase the FDI flows which are necessary for the country especially in the light of the fact that our current account deficit runs high and it can only be financed through capital goods,” Mayaram said.

“In capital flows, we would wish there is higher FDI as it is long-term capital…so we need to encourage FDI and try and remove the impediments if any, across all sectors,” he said.

Keywords: Inflation, India's economy, India's GDP growth, inflation, India's GDP forecast, headline inflation, repo rate cut, RBI monetary policy review, Arvind Mayaram,

In a first, Jet Airways to sell 24% stake in Abu Dhabhi’s Etihad for Rs 2,050 crore

  Jet Airways and Abu Dhabi carrier Etihad finally enacted a well choreographed tango, clinching the first foreign direct investment ( FDI) deal after foreign airlines were allowed part- ownership of their Indian rivals.

On Wednesday, the Jet Airways board cleared preferential allotment of shares (at Rs 754 apiece) to Etihad, giving the latter a 24% direct stake in India's second largest airline by market share. Etihad will pay $379 million (about Rs 2,058 crore) for the stake, valuing Jet Airways at $1.57 billion, which is 32% higher than the current market value of the domestic carrier.

Etihad will take two board seats even as Goyal will hold 51% stake and remain non-executive chairman of Jet Airways. The Abu Dhabi airline will separately take majority shares in JetPrivilege, the frequent flyer unit of Jet Airways, for $150 million. It has already paid another $70 million to purchase Jet's slots at London's Heathrow airport.

 By-Kshitij

PGDM-2nd Sem.

Tech Mahindra acquires Sweden-based lab

With an aim to strengthen its lab presence in Europe, Middle East and Africa (EMEA) regions, Tech Mahindra has acquired a Sweden-based Type Approval Lab for an undisclosed amount.

The lab was part of Sony Mobile Communication's internal test function and now will help Tech Mahindra establish its first European test lab with multi-million dollar infrastructure, Tech Mahindra said in a release on Wednesday.

This acquisition will prove to be a key milestone for the European expansion plan and reinforces further company's commitment to be a key player in this space, the release said.

This is the third acquisition the IT firm has made in the last eight months.

The company acquired 100 per cent stake in telecom BPO player Hutchison Global Services for $87 million (about Rs 470 crore) in the first week of September 2012. Three weeks later, the company said that it had picked up 51 per cent stake in Bharti Enterprises' promoted Comviva Technologies.

"The Lund facility will now provide us a strategic Lab presence for EMEA region and for our customers looking to launch their products in EU and rest of the world," the Chief Technical Officer of CanvasM Technology, a wholly-owned subsidiary of Tech Mahindra, Sirisha Voruganti said.

"We look forward to the exciting test engineering competencies and consulting abilities the lab resources will bring to Tech Mahindra's customers," Voruganti said.

This acquisition is in line with Tech Mahindra's plans to lead the test space and the increased focus on Nordics region, it said.

The company along with CanvasM Technology has labs in India and the US certifying more than 800 plus devices, Tech Mahindra said.

AARTI
PGDM 2nd SEM

                Aarushi's death was an accident: CBI

Aarushi's death was an accident and the horrific incident was an outcome of rage, CBI investigating officer AGL Kaul told a Ghaziabad court.

An IBN-Live report says Kaul told the court that Aarushi's father killed his daughter and servant Hemraj after finding them in a compromising position. But he added Rajesh Talwar did not intend to kill Aarushi and her death was an accident.

Kaul said Rajesh hit Hemraj with a golf club when he found them in a compromising position and Aarushi was killed when he attempted a second swing at Hemraj.

The CBI investigator also told the court they could not recover the blood-stained clothes of Aarushi's father and suspect Rajesh and a golf club which he allegedly used for killing her and their help Hemraj.

Kaul, during his cross-examination, hinted that Rajesh Talwar disposed off the blood-stained clothes and the golf club to destroying evidence against himself.

Earlier on April 16, Kaul had said that on the basis of the circumstancial evidence he was convinced that Talwar and his wife Nupur, both dentists, killed their daughter.

He said earlier that during investigation no outsider's entry was found possible inside the house and all the three helps had nothing to do with the murder of the teenaged girl.

Defence lawyer Manoj Shishodia, who cross-examined Kaul, said he presented a contradictory detail of the chain of events on the double murder when the CBI earlier filed a closure report in court.

He claimed the closure report said the clothes that Talwar was wearing were found to be carrying stains of Aarushi's blood but no stains of Hemraj's blood.

Aarushi, 14, was found murdered at her parents' Noida residence May 16, 2008. The body of Hemraj, Talwars' help, was found the next day on the terrace of the house.

The Talwars, who were arrested by the probe agency, are now out on bail.

By-Kshitij

PGDM-2nd sem.

Increasing FDI in insurance sector is top on UPA agenda: FM

 

Increasing foreign direct investment in the insurance sector is top priority for the ruling UPA, finance minister P Chidambaram said on Saturday, hoping that a bill to address the issue will be passed in the upcoming Parliament session.
Responding to questions at the Peterson Institute, Chidambaram appreciated the efforts of the insurance industry in reaching out to the opposition parties and hoped that this would help the political parties understand the issues and thus help in the passage of the bill.
"Parliament opens on April 22. It (Insurance FDI) is right there in top of the agenda. We are stuck on one clause, FDI cap whether it should be 26 or raised to 49. If the principle opposition party comes around, the bill will be passed," Chidambaram said.

"I am keeping my fingers crossed. I sincerely hope that the efforts of the insurance industry in speaking to the opposition will be helpful and I can pass the bill," Chidambaram said.
Noting that without growth there will be neither inclusiveness nor development, he said, "As long as the Congress is at the helm of affairs, I believe that they will accept growth is necessary in order to lead to inclusive development".
"Once you accept that paradigm, you have to accept fiscal deficit, you have to contain inflation, you have to contain expenditure, you have to balance your books to a large extent," Chidambaram said.
Responding to questions, Chidambaram said most state governments have now realised that implementation of the programmes is the key.
"Until about 10 years ago, most state governments were not re-elected. If you were in office for five years, you were more or less certain to be defeated in the next election. That seems to have changed in India in the last 10 years," he said.
"Incumbent governments are getting re-elected. The government in the centre got re-elected in 2009 with a larger number. Since then governments have been re-elected in Gujarat, Madhya Pradesh, Tripura Nagaland, Assam, Mizoram, Meghalaya, and Orissa," he said.

This has vetted the appetite of political leaders and political parties that perhaps defeat is not inevitable, perhaps one can get re-elected for second or third term, Chidambaram added.
"If you look at it closely, governments which are seen to have delivered are the governments that are re-elected. I think this fever of implementation seems to have caught on with more and more state governments. This is a very welcome sign," Chidambaram said.
"What we need to do is to find ways and means to get rid of bureaucratic obstacles, policy obstacles to implementation," he said.
Meanwhile, after the BRICS finance ministers met in Washington on Thursday, Chidambaram said the preparatory work for establishing a BRICS developmental bank would be completed in 12 months so that the final decision on this would be announced by the leaders of Brazil, Russia, India, China and South Africa during their next summit in Brazil.
The Finance Minister of BRICS nations met in Washington on Thursday on the sidelines of the annual Spring meeting of the International Monetary Fund and the World Bank to take the next step towards the establishment of the bank.
"Before we go to Brazil for the next summit, we need to complete our homework. Yesterday BRICS finance ministers met in Washington and we reiterated out commitment to the BRICS bank," the finance minister said speaking at the institute. 

By-Kshitij
PGDM 2nd sem.

 

 

Chidambaram refuses to comment on JPC report

Finance Minister P. Chidambaram on Saturday refused to comment on the JPC draft report which gives him a clean chit in the 2G scam, saying that he has “never been concerned” about the allegations.

“I have never been concerned about these allegations. In fact my concern has been a fraction of the media’s concern,” he told a select group of journalists here.

The Joint Parliamentary Committee has given a clean chit to Prime Minister Manmohan Singh and Mr. Chidambaram on 2G spectrum allocation.

The draft report of the JPC also rubbishes the loss figure of Rs 1.76 lakh crore estimated by CAG, saying it was “ill-conceived”.

The report, which was circulated among members on April 18, before its adoption on April 25, has caused a political storm with former Telecom Minister A. Raja claiming that all decisions were taken in consultation with Prime Minister Singh.

Mr. Chidambaram is currently in Washington to attend the annual spring meeting of the International Monetary Fund and the World Bank.

AARTI

PGDM 2 nd SEM

Nokia launches Lumia 620 to boost up there sales

 

Nokia Lumia 620 can be called a significant improvement over the Lumia 610, which appeared to be a rushed job. In terms of design, both smartphones are quite distinct, but the capacitive Windows buttons is what connects them. The Lumia 620 has more of a rectangular design with well-curved edges. Also, it appears that Nokia was aiming for an edge-to-edge screen approach with the Lumia 620 for it is quite similar to the treatment given to Lumia 820's display.

The Lumia 620 has a backpanel cover, which almost looks like a case tightly hugging the back-side. However, getting this back panel off the body is quite tricky. The easiest way we managed was by putting a thumb on the camera and pushing it ahead while holding the shell's edges on the top with two or three fingers. This back panel is of a single colour and has a matte finish feel. Nokia Lumia 620 comes with dual-colour effect that shows through the shells in Lime Green, Orange, Magenta, Yellow, Cyan, White and Black colours.

All the button controls - volume buttons, power/sleep and camera key, are located on the right side. With a hand-sized form factor, the Lumia 620 fits amazingly well in the palm and is ready for single-handed operation. Curved edges along non-protruding buttons make it easy to quickly slide the device into a pocket. We noted that only the black and white coloured back panel shells seemed to have a matte finish for a slightly better grip.

The Lumia 620 is 115.4 mm tall and 11 mm thick, somewhat thicker than the current generation of smartphones. This smartphone weighs about 127 grams. Lumia 620 carries one of the most comfortable designs, and it fits snugly in one hand.

Display and hardware
Nokia has packed a 3.8 inch touchscreen display that appears to be almost the size of the iPhone 4/4S. However, this 3.8 inch screen 24-bit panel has been constructed using Nokia's own ClearBlack layer for better black colour production by reducing the reflections on the screen. It carries 480 x 800 pixel resolution natively, thereby offering decent 246 pixels per inch density. The screen supports multi-touch and is certainly smaller in comparison to large display devices. The colours look just about fine without the bluesy effect of Amoled. Outdoor legibility of the text and menu options is quite decent. The sharpness and overall image quality did surprise us pleasantly.

About 11 mm thick, the phone does appear slightly stubby, but Nokia has tried to make it appeal to the young crowd. The idea was to pack decent hardware in a cosy shell to make the overall package affordable. The Lumia 620 packs a dual core 1 GHz Qualcomm Snapdragon S4 Plus MSM8227 mobile processor paired with an Adreno 305 graphics chip and 512 MB RAM. Apparently, Nokia has used the same processor, graphics and RAM combination for the Lumia 520 and Lumia 720 devices as well.

Nokia has packed a Near Field Communication chip inside the Lumia 620 back panel so that it can be used with different accessories like the Play 360 wireless speaker. This device gets quite a good bump compared to its predecessor - Lumia 610. Apart from twice the amount of RAM, the Lumia 620 packs 8 GB on-board storage and can support up to a 64 GB micro SD card. Nokia has taken care of audio output with a Dolby headphones sound enhancement feature.

Apart from Bluetooth 3.0 bump, the only surprising change is the lack of stereo FM radio. Other than that, Nokia has packed a GPS chip with A-GPS and Glonass support for faster location lock. 

BY-KSHITIJ

PGDM 2nd sem.

Exports up 6.9% in March; decline 1.7% in 2012-13NEW DELHI:

 Reflecting some recovery in the global markets, India's exports grew for the third month in a row, rising by 6.97 per cent in March though on annual basis it declined 1.76 per cent to 300.6 billion dollars in 2012-13.

Exports in March stood at 30.8 billion dollars compared to 28.8 billion dollars in the same month of previous year.

Imports dipped by 2.87 per cent to 41.16 billion dollars in March, leaving a trade deficit of USD 10.31 billion from 13.5 billion dollars in March last year. In January, it had widened to 20 billion dollars, the second highest figure ever in a month.

However, for 2012-13, the trade deficit grew to 190.91 billion dollards as against 183.3 billion dollards in the previous fiscal.

With a view to boost exports, the government announced several measures in foreign trade policy (FTP) including extension of the popular EPCG scheme to all sectors and sops for Special Economic Zones (SEZs).

Exports had entered positive zone after a gap of eight months in January when it recorded a growth of 0.82 per cent.

Commerce Secretary S R Rao said exports are gradually picking up and hoped the current trend will continue.
"Export performance has started picking up. For March, the export performance has picked by a slightly robust figure as compared to the previous two months. We do expect this trend to continue and we would like to consolidate," Rao said.

He said if the current trend continued, India's exports is expected to grow by about 10 per cent this fiscal.

"...I should assume a minimum of 10 per cent (growth) if trend continues...," he added.

On trade deficit, Rao said that it has come down slightly "which is a good news. Given a very weak performance for major part of the year, I think in the last 3-4 months, we really covered a good deal of ground which is not sufficient but certainly there is progress in exports".

During 2012-13, imports grew by 0.44 per cent to 491.48 billion dollars, leaving a trade deficit of 182.1 billion dollars from 183.3 billion dollars in 2011-12.

Oil imports in March 2013 declined by 16.56 per cent to 13.32 billion dollars. During the previous fiscal, the imports however grew by 9.22 per cent to 169.25 billion dollars from 154.96 billion dollars in 2011-12.

Non-oil imports in March increased by 5.41 per cent to 27.83 billion dollards but during 2012-13, it dipped 3.62 per cent to 322.23 billion dollars.

While announcing sops for exporters, commerce and industry minister Anand Sharma said in 2012-13, India's exports to Asia, Africa and Latin America touched 195.27 billion dollars, accounting for 65 per cent of the total export basket.

"This is indeed a development with significant import as South-South trade is assuming a new dynamics.

"Apart from this, value added exports have got a centrality in our export basket as engineering exports accounted for 57 billion dollars, textiles accounted for 26 billion dollars and pharmaceuticals at 15 billion dollars".

 AARTI

 PGDM 2 nd SEM

The rise and rise of tomorrow’s Prime Minister Narendra Modi

olitician in independent India has been demonised in such a relentless, Goebbelsian manner as Narendra Modi, and no politician has withstood it with as much resilience and courage as him, notwithstanding the entire Central government, influential sections of the media machinery and civil society arraigned against him. His dark patch started with the unfortunate Godhra train massacre and the ensuing communal riots in Gujarat in 2002, where several innocent people lost their lives. A train carrying non-violent harmless karsewaks were set on fire and nearly 60 persons were burnt to death. Understandably, but regrettably, this provoked retaliation and mayhem resulting in many innocent members of the minority community losing their lives and suffering other indignities. It is equally true that the desire for revenge did paralyse the will of some law enforcement agencies, including some prosecutors and judges. Serious steps had to be taken to restore the confidence of the victims of revenge in the legal and judicial system of the state. Today, vast sections of civil society see in Narendra Modi the next Prime Minister of India. I hope he will plant more visible footprints on the international seashore. He has to speak of peace and a durable solution to the Kashmir problem with the rulers of Pakistan. The most diabolical role was played by the Congress government at the Centre. A bogus commission was appointed to whitewash the Godhra tragedy to establish that the attack on the train was not the result of a conspiracy of some evil minded Muslims, but an accidental stove fire. This serious crime by the Congress government was fully exposed when a Special Investigation Team appointed by the Supreme Court made their own independent investigation and reiterated that the burning of the pilgrims was a concerted plan by those who must have known that it will inevitably lead to retaliation and atrocities against the minorities, a finding fortified by recent court judgments. Their evil calculations proved to be right. Obviously, the planners wanted India to get a bad name, its national unity and integrity shaken and its defence against scheming neighbours enfeebled. The unfortunate riots were followed by the state elections, the results of which made the psephologists run for cover. One is reminded of a story, which may well be apocryphal, but is fairly apposite and bears repetition. The Viceroy of India, Lord Linlithgow, wanted to hold an open air reception in Simla and sought, and received, the assurance of the weather bureau that there wouldn't be any showers on that day. But while strolling on the mall, he encountered a farmer and his donkey. Proletarian as he pretended to be, he struck up a conversation with him and made the same enquiry. The farmer looked at his donkey and said, "Whenever my mate's ears shake the way they are doing now, it just pours." The Viceroy made light of the donkey signal, but his evening party was a big fiasco. In anger, he had the weather station removed to faraway Pune as punishment. I hope the media will never again mess with Narendra Modi or Gujarat elections. Modi won a landslide victory, which even he and his followers could not have imagined or hoped for. I congratulated him for his brilliant victory, but I sincerely advised him that he should wear a look of absolute humility; he should publicly own that something had seriously gone wrong and that he should loudly proclaim that India could never go forward and retain its independence and sovereignty unless Hindus and Muslims were locked in an embrace of love and mutual understanding. He must declare his firm resolve to bring back to the minorities a feeling of absolute security and an assurance of every kind of protection by the powers of the state. Modi thought out and reasoned his strategy and since then his stature has risen manifold to heights rarely attained before. Today, vast sections of civil society see in him the next Prime Minister of India. I hope he will plant more visible footprints on the international seashore. He has to speak of peace and a durable solution to the Kashmir problem with the rulers of Pakistan. He must project himself as a great democratic leader of the world and a fighter for human rights and justice the world over. On the domestic front, I am proud to see him winning Muslim hearts by presenting to them the real Hindutva, which even the Supreme Court had to acknowledge and admire. Let not the real Hindutva be confused with its counterfeit version, which unfortunately gains currency during the course of electoral battles. AARTI PGDM 2 ND SEM

U.S. investigators hunt for clues in marathon bombingOfficials said more than 100 people were wounded by the devices, which were packed with gunpowder and shrapnel to maximise injuries, according a senior law enforcement official briefed on the investigation who declined to be named.
"I saw people who looked like they had their legs blown off. There was a lot of blood over their legs. Then people were being pushed in wheelchairs," said Joe Anderson, 33, a fisherman from Pembroke, Massachusetts, who had just run the race holding a large U.S. flag.
Some victims would require further surgery in the coming days, said Peter Fagenholz, a trauma surgeon at Massachusetts General Hospital.
"We're seeing a lot of shrapnel injuries" from small metal debris, Fagenholz told reporters outside the hospital. Doctors treated 29 people, of whom eight were in a critical condition.
An eight-year-old boy was among the dead, the Boston Globe reported, citing two law enforcement sources briefed on the investigation. A two-year-old was being treated at Boston Children's Hospital for a head wound, the hospital said.
White House officials and investigators said it was too early to say whether the Boston attacks were carried out by a foreign or homegrown group or to identify a motive.
The attack was the worst bombing on American soil since far-right militant and U.S. citizen Timothy McVeigh set off a massive truck bomb that destroyed the Federal Building in Oklahoma City in 1995, killing 168 people.
Two years earlier, Islamist militants bombed the twin towers of the World trade Center, killing six people and wounding more than 1,000.
President Barack Obama said those responsible would "feel the full weight of justice" and the White House said it was handling the incident as "an act of terror".
The Federal Bureau of Investigation was leading the manhunt on Tuesday, alongside battery of federal, state and local law enforcement agencies.
"It is a criminal investigation that is a potential terrorist investigation," said Richard DesLauriers, the FBI special agent in charge for Boston.
Agents searched an apartment in the Boston suburb of Revere late on Monday, local media reported but did not elaborate.
MAJOR CITIES ON ALERT
Many runners were heading for the finish some four hours into the race when the first bomb detonated, sending up a fireball and smoke from behind cheering spectators and a row of flags representing the countries of participants.
World-class runners had long finished the race but the initial blast, followed moments later by a second, caught scores of other competitors and spectators.
The blasts put police on alert in major cities across the United States, including in Washington, D.C., and New York City, sites of the September 11 attacks.
The annual Boston Marathon, held since 1897, attracts an estimated half-million spectators and some 20,000 participants every year.
Organizers in the British capital said the London Marathon would go ahead on Sunday despite the Boston attack, but security was being reviewed.
German Chancellor Angela Merkel Joined world leaders in condemning the blasts.
"Nothing can justify such an insidious attack on people who had come together for a peaceful sports event. I hope that the person or people guilty (of this attack) can be brought to justice," she said in a statement (Reporting by Scott Malone; Aditional reporting by Reporting by Pritha Sarkar, Patrick Johnston, Martyn Herman and David Cutler in London and Gareth Jones in Berlin; Writing by Andrew Heavens; Editing by Jon Boyle)



AARTI
PGDM 2 ND SEM

Facebook eyes expansion of Home to Apple and Microsoft phones

 Facebook is in talks with Apple and Microsoft about bringing a version of its Home mobile software to phones running on iOS and Windows Phone,

Facebook Home launched two weeks ago on the Android platform, but Facebook director of product Adam Mosseri has told Bloomberg talks are ongoing with Apple and Microsoft about expanding Home to other platforms.
The nature of Home, which overlays a Facebook layer over the native operating system, means Apple and Microsoft are likely to be reticent to agree to allow Facebook Home on their operating systems.
Henry Arkell, social response director at Manning Gottlieb OMD, points out that allowing Home onto iPhones would, in effect, see Apple "relinquishing control of ads, and you would think it would be something iAds would do instead".
Facebook has already announced it is introducing ads into the "cover feed" feature of Home, but is yet to announce if ads will be integrated into other features such as Chat Heads.
Mosseri explained to Bloomberg: "We’ve shown them [Apple and Microsoft] what we’ve built and we’re just in an ongoing conversation.
"It may or may not be Home. We could also just bring some of the design values to the iOS app. That might be how it ends up. Or we could build just the lock screen. Maybe then it’s not called Home, it’s called something else."

By-Kshitij
PGDM 2nd sem.

 

AirAsia India plan may face queries at FIPB

As Tony Fernandes tweets about finding a CEO, the proposal needs to clear a key hurdle before proceeding

 

AirAsia has said it will hold a 49% stake in the proposed joint venture with Tata Sons. Photo: Reuters

Also Read

• AirAsia India begins headhunting
• Ratan Tata, Bhatias meet Ajit Singh for AirAsia India

 The aviation ministry is likely to seek clarifications on the proposed joint venture between AirAsia Bhd and Tata Sons Ltd when the airline project comes up for clearance by the Foreign Investment Promotion Board (FIPB) on Wednesday.

Meanwhile, the venture is pushing forward with a recruitment drive and AirAsia’s Tony Fernandes said he had selected a chief executive officer (CEO), although his candidacy would have to be confirmed by the Tatas. He didn’t reveal the person’s identity.

FIPB is scheduled to discuss the $30 million proposal to set up AirAsia India.

“There are some key questions which they should have answered before seeking these clearances,” said an aviation ministry official who declined to be named. These relate to the definition of how the investments should be allowed, he said, while adding at the same time that these issues weren’t likely to be a deal breaker.

According to the department of industrial policy and promotion (DIPP), foreign airlines are being allowed to invest “in the capital of Indian companies, operating scheduled and non-scheduled air transport services, up to the limit of 49% of their paid-up capital”.

The ministry is likely to tell the FIPB meeting that the AirAsia-Tata proposal is neither an airline nor a company, said the official. “So where is the investment going to come in? It’s our job to tell them what is the process as far as civil aviation is concerned. They can take the law ministry’s views if they have a disagreement,” he said. However, “it’s no big deal”, the official said, adding, “The project is not going to be stopped but there could be procedural issues.”

The ministry is also likely to point out that the foreign direct investment (FDI) policy was relaxed in the DIPP note of 20 July, which made the case that FDI was required for existing debt-laden Indian airlines to get a new window of funding.

He said the Tatas should have first got a licence and then invited foreign investment. AirAsia declined to comment on the matter.

Former industry secretary Ajay Dua said, however, that FIPB can approve a foreign investment proposal before the company is incorporated in India.

“If they kill the Tata-AirAsia venture they will permanently put a stop to any FDI in Indian aviation,” said Mohan Ranganathan, a member of the government-appointed civil aviation safety advisory council. “If an airline with four-five aircraft is sending rival airlines and the aviation ministry in panic mode, it doesn’t speak well of our policy.”

Fernandes said on Tuesday that he had selected the head of the airline’s proposed joint venture in India, although he tweeted later that the Tatas would need to sign off on the choice. “I have selected our CEO for AirAsia India,” Fernandes tweeted.

AirAsia India has started approaching top aviation executives in India as it puts together a management team, Mint reported Monday citing two people familiar with the matter.

AirAsia representatives declined to comment. Mint could not contact Fernandes.

AirAsia has said it will hold a 49% stake in the proposed joint venture, Tata Sons will own 30% and Arun Bhatia of Telstra Tradeplace Pvt. Ltd will hold the rest. In February, Fernandes had said his proposed airline will focus on the Indian domestic market, with Chennai as the main hub. The AirAsia venture plans to start flights at the year-end with three-four planes and an initial investment of about $30 million. It will operate from Chennai and focus on providing domestic connectivity to smaller cities, a statement by the Malaysian airline said last week.

Fernandes is of Indian descent; his father was from Goa.

The proposed venture marks the return of the Tata group to aviation. State-run Air India Ltd emerged from Tata Airlines, which began flights in the 1930s. The government nationalized the airline in 1953.

SHIV KUMAR 

PGDM 2 nd sem

Bajaj Auto launches ultra-low-cost car RE 60

Bajaj Auto Ltd recently announced that the company is planning to roll out 5,000 units of its four-seater "quadricycle" codenamed RE-60. Although Bajaj has an in-principle go-ahead from the government, commercial production would happen only after a government-appointed committee submits its report. Powered by a one cylinder petrol engine, the RE-60 is claimed to return a mileage of 35 kmpl. Slotted between a three-wheeler and a car, the RE-60 would create a new segment called ‘quadricycle.’

 

By-Kshitij

PGDM-2nd

Infosys shares slump 18% on weak revenue outlook, TCS, Wipro fall

Infosys Ltd, India's No. 2 IT services exporter, forecast lower revenue outlook for growth than analysts had expected for this fiscal year, citing a challenging global economy. The forecast sent its shares tumbling nearly 18 percent.
The company said it expects dollar revenue for the fiscal year that began this month to grow between 6 percent and 10 percent. Most analysts had estimated that Infosys would set a target for revenue growth of as much as 12 percent.
Infosys has been focusing on stepping up sales, with a willingness to sacrifice margins, to help it win business and halt its loss of market share.
For about two years, Infosys, a bellwether of India's $108 billion IT services sector, had been losing market share to more aggressive rivals such as industry leader Tata Consultancy Services Ltd (TCS) and No. 4 HCL Technologies Ltd .
The rough patch was caused in part by the challenge of implementing its "Infosys 3.0" push for revenue through the development of its own software platforms, to differentiate its services from those of its competitors, amid sluggish demand from clients in its core western markets.
"The forecast looks quite conservative, which is a concern. The fiscal 2013 was also not very good for Infosys," said K.K. Mital, CEO for portfolio management services at Globe Capital in New Delhi.
"This looks like company specific problem. Even mid-cap companies are expected to perform better than this."
Consolidated net profit for the fiscal fourth quarter ended March 31 was 23.9 billion rupees ($438 million), compared with 23.16 billion in the same period a year earlier. Revenue for the quarter rose 18 percent to 104.5 billion rupees.
That compared with an average estimate of 23 billion rupees in a survey of 18 analysts by Thomson Reuters I/B/E/S. Revenue was expected to have risen 21 percent to 107 billion rupees.

AARTI
P GDM 2nd SEM
 

M&M to launch Vibe hatchback priced at Rs 6 lakh next month to take on Maruti Swift, Hyundai i20

Mahindra & Mahindra will launch a hatchback on the Verito platform next month as the country's top utility vehicle maker looks to find a place in the Indian car market as well.

The new car, the Vibe, will be priced competitively with the diesel version at around `6 lakh, a person aware of the company's plans said. It will take on Maruti SuzukiSwift, Hyundai i20 and Volkswagen Polo among others.

Pravin Shah, chief executive, automotive, at M&M, said, "The entry into the compact car segment gives us an opportunity to learn more about the Indian car market and expand the customer base."

The Verito Vibe will sport the same 1.5-litre Renault diesel engine that powers Verito and will be less than four metres in length to attract lower excise duty of 12%. Larger cars need to pay 24-27% excise.

After its break-up with Renault in mid 2010, Mahindra & Mahindra re-launched the Logan as Verito in April 2011. A refreshed version of Verito was launched in August last.

The company sel ls around 1,500 Veritos per month. Industry experts say that by getting into the hatchback segment, M&M is trying to de-risk its utility vehicle business, which accounts for 45% of the firm's automotive sales, which includes pickups and commercial vehicles. M&M currently accounts for 47% the utility vehicle market in India.

"By launching products on the Verito platform, M&M is exploiting the platform strategy to get additional volumes," VG Ramakrishnan, MD at Frost & Sullivan consultancy, said. "Mahindra will by no means be a large car player in the near future. It requires huge investments," he said.

During April-February 2013, M&M's car sales fell 12% to 14,133 cars while its UV sales rose 32% to 2.39 lakh units.

The new car has been completely developed, designed and styled by M&M engineers. 

By-Kshitij

PGDM-2nd sem. 

Not even offered a cup of tea, says Sahara chief after appearing before SEBI in refund case

who has been at loggerheads with the Securities and Exchange Board of India (Sebi) over refunding an estimated Rs24,000 crore to more than three crore investors, was questioned by officials of the market regulator regarding his assets and those of three other top executives of the conglomerate at the Bandra-Kurla complex in Mumbai on Wednesday.

Roy , who was with the officials for about an hour, said after the meeting that he had submitted his list of assets to Sebi. "I was asked whether we have any assets apart from the one (already) disclosed and whether I wish to add anything. I replied saying the assets which I declared are the only ones I have," said Roy.

The Sahara boss claimed that his assets include gold jewellery worth Rs.3 crore, Rs.34 lakh in cash and bank balance and fixed deposits worth Rs.1.59 crore. He further claimed to have taken advance of Rs11 crore for buying sugar mills at Badauli, Uttar Pradesh, and that he has no immovable property in his name.

Roy, who also alleged that Sebi is not serious about returning Rs.5,120 crore deposited with it by Sahara to the investors, said that he was not even offered tea during the meeting.

The ongoing battle is over Sahara companies Sahara India Real Estate Corporation (SIREC) and Sahara Housing Investment Corporation Limited (SHICL) selling bonds to the investors to raise Rs25,000 crore, which came under Sebi's scanner in 2010.

"I told them about my concern that those who are yet to get the money ... in the last seven months, you have not taken any initiative. Where is the money that can be distributed to the investors? Not just that, you have also not taken any efforts to verify the investor details as well," said Roy.

Roy said that when he asked when the investors would get their money back, Sebi officials had no reply. "I have requested them to kindly look into these two things - verification and paying the investors their money back - seriously. Until the verification is complete, our money would be stuck with them. Sebi is not taking any action on that front. Start the verification so that the money can be released/distributed," said Roy.

Sebi is dragging its feet on the issue, Roy added. "Those who have not got the money their money is with Sebi while those who have received payment have got it from the company. I don't want to talk of refunds now. Now, Sebi should refund the money on a priority basis. Sebi should give priority in repayment to those who have not been paid for the last seven months but is sitting quiet."

Roy alleged that Sebi is on a witchhunt against him and instead of giving funds to investors, it is indulging in a media trial. "They are involved in a media trial and doing all kinds of things day and night," said Roy.

Meanwhile, the economic offences wing (EOW) of the Mumbai police has started a preliminary inquiry in to allegations that the Group has been intimidating its investors. Sources in the EOW confirmed that an inquiry has started.

According to sources, the chief secretary has been forwarded letters written by investors, who have claimed that they are being intimidated by Sahara.

AARTI
PGDM 2 nd SEM

Wal-Mart employee finds and returns $20,000 to customers

Ever see someone drop a $20 bill on the street? Pocketing it can be mighty tempting. Now, put yourself in the shoes of 32-year-old Wal-Mart employee Bismark Mensah, who stumbled upon an envelope with $20,000 inside.

Mensah, who makes $9.19 an hour at the Wal-Mart in Federal Way, Wash., didn't just return the cash to Leona Wisdom and Gary Elton -- he sprinted after the couple to catch them before they drove off. The Seattle Times recently did a profile on Mensah. The incident occurred last October.
After he gave Wisdom the envelope, Mensah said, "She was like 'Wow! Tears are coming out." Mensah said the grateful woman tried to offer him a reward but he refused. The money was going to be used for a down payment on a house, according to the Seattle Times. They had cash because they didn't want to wait for a personal check to clear.

Mensah, who immigrated from Ghana in 2012, had been helping the couple load their purchases in their car. After they began to drive off, he spotted the envelope in the cart. He could tell what was in the envelope because it had a clear address window.
Was he tempted, even for a little bit? "My conscience wouldn’t allow it," he told the Seattle Times. "I couldn’t even drive home if I did that." Wisdom said she called Wal-Mart twice to make sure management was aware of Mensah’s honesty.
The selfless move earned Mensah a commendation from his employer. He was recently given Wal-Mart’s national 2013 “Integrity in Action Award.”
While this may seem like a one in a million occurrence, the Web is full of examples of people going out of their way to be honest. Late last year, an Austrian bus driver returned a bag with over 

By-Kshitij
PGDM-2nd

 

Tata Consultancy Services to buy French IT firm Alti

Tata Consultancy Services, India's top software services provider, will buy privately held Alti SA of France for 75 million euros an acquisition that highlights the industry's growing interest in France and Germany.The French provider of business management software services had revenues of 126 million euros in 2012 with customers in financial services, manufacturing and utilities.
"This acquisition underlines our long-term, strategic commitment to France, which is the third largest IT services market in Europe," TCS CEO N. Chandrasekaran said in a statement.
India's leading IT firms are looking to reduce their reliance on Britain as they expand in Europe. European companies are also seen as increasingly open to sending IT work to centres in India as it can help them cut IT costs by as much as 70 percent.
Europe, including Britain, is TCS's largest market after the United States.
TCS will report its fiscal fourth quarter and annual results on April 17.
© Thomson Reuters 2013


AARTI
PGDM 2ndSEM

Patience the key as car marketers look to ignite the industry's electric dream

With sales of electric vehicles continuing to stall, Alex Brownsell explores what brands should do to win over sceptical UK consumers.

Renault Zoe: major electric vehicle launch

When David Cameron visited Nissan's plant in Sunderland to herald the launch of production of its Leaf electric vehicle (EV) last week, the prime minister used the trip to promote growth in the UK manufacturing sector.
Of the major manufacturers, Renault-Nissan has invested most in an electric future, and chief executive Carlos Ghosn has boldly predicted that, come 2020, some 10% of all the company’s sales will come from EVs. However, much like the troubled state of the UK economy, Nissan’s Leaf appears a green shoot in an otherwise barren landscape.
To say UK sales of electric vehicle (EV) have stalled is an understatement: with only an estimated 3,000 EVs on the road, the market for fully electric-powered cars is yet to get moving at all. Since 2008, successive UK governments have invested millions of pounds in grants and subsidies to encourage the take-up of EVs and installation of much-needed charge points, with only modest success.
Some brands, including Toyota, have subsequently scaled back plans for EV launches, focusing on other forms of hybrid engine technology in the absence of the requisite demand and infrastructure. For Toyota, that has meant opting against offering its eQ and RAV4 models in the UK.
Nik Pearson, a spokesman at Toyota, explains that, along with anxiety over battery technology and range, the infrastructure required for running EVs "is not yet ready for mass use". He adds: "People need time to come to understand any new power train, but it’s a challenging economy so it’s going to take longer than expected. It’s quite a complicated message to communicate and a challenge for automotive marketers."
As well as a lack of necessary infrastructure, most consumers are being put off by the high prices of EVs, argues Ben Lane at transport consultancy Eco Lane. "The price differential is still too large for the mass market, and that needs to be addressed," says Lane. "You either look into grants and rebates, or simply wait until the cost of batteries comes down."

Lift the handbrake

In an effort to lift the handbrake on EV sales, the Society for Motor Manufacturers and Traders (SMMT) is looking to partner government with automotive brands for an ad campaign promoting the benefits of the new technology. The key, according to SMMT head of communications Keith Lewis, is to change perception of the cars "from novel to normal".
Lewis denies that take-up of EVs has been slow, insisting that with any new technology it "takes a while for things to pick up". He adds: "There were no grand plans for 20% of all new car sales by 2013 to be electric vehicles. We’ve got infrastructure issues to look at, and these [types of products] always start on the expensive side. It is part of a gradual process."
General Motors-owned Vauxhall, which has rolled out its Ampera plug-in hybrid model (right) last year, is also planning for slow but steady growth. Ian Allen, manager of environmental strategy and Ampera at Vauxhall, says the brand deliberately kicked off marketing for Ampera some 18 months before the product went on sale to tackle a "gap in knowledge" among consumers.
He claims a combination of work by manufacturers to "dispel the myths" around EV performance and educational campaigns led by government will help provide the "endorsement" needed to convince consumers. However, the most important type of marketing, he argues, is experiential – in other words, allowing drivers to try out EVs. "Seeing is believing," he claims.
Consultant Ben Lane agrees more needs to be done to get consumers to test drive EVs. "Research shows that those people who get into electric cars think about them more favourably afterwards. There should be 20 to 30 EVs in every major UK city, from different manufacturers, where people can turn up and give them a go."
However, for others, it is simply a matter of waiting until a critical mass of major brands join the fray. Former Land Rover marketing chief Jim Campbell, now managing director of consultancy Sutherland Campbell International, is expecting a surge of EV sales in the coming years, as manufacturers like Ford and BMW release cars using the new technology.
"Countries like the US and Germany are ahead, but in the longer term there will be a lot more EVs on UK roads," says Campbell. "There’s a lot of misinformation out there, but the main issue is there aren’t many products on the market. People are brand loyal. Even as soon as the end of 2015, I can see this big discussion about EV sales being over."
Strange as it may seem in a world where new technology is taken up with greedy anticipation, all parties agree it will take some years before EVs are a common sight in the UK. But, with the right marketing messages and a lot of patience, those green shoots and leaves may well grow into something altogether more promising.

MD JAVED ALAM
PGDM 2ND SEMESTER

KFC mirrors McDonald's with launch of mobile payment system

KFC is mirroring McDonald's and Starbucks by launching a "mobile wallet" service in a move to drive up customer numbers.

KFC: launches mobile payment system in association with Airtag

The fast-food company is piloting its first mobile and web app for ordering and paying for food across 10 of its sites in the UK
If successful, it will be rolled across more of its restaurants, both in the UK and internationally.
The service is called KFC Fast Track and the app has been built by a company called Airtag.
According to Forest Research, it is estimated that mobile payments will reach $90bn (£60bn) by 2017
.Last year, Starbucks struck a deal to integrate the technology of Square, the mobile payments start-up from Twitter co-founder Jack Dorsey, into its US stores.
In 2011, McDonald's rolled out contactless card payments across its 1,200 UK restaurants in a bid to steal a march on its competitors.
AARTI
PGDM2ndSEM

Aditya Birla cos, Idea and its arm asked to pay Rs 3,900 cr in tax

In what could be the first attempt by the income-tax department to bring corporate demergers under the tax net, two AdityaBirla group companies—Idea Cellular and AdityaBirla Telecom — have been asked to pay Rs3,900 crore in taxes for the demerger of the telecom business that took place in 2009.


"The I-T department is treating the transfer of licence, assets and liabilities from Aditya Birla Telecom Ltd to Idea CellularBSE -2.73 % as a slump sale, which is subject to capital gains tax," a person close to the development told ET NOW, which was the first to report the development. Idea Cellular has been issued a tax demand order of Rs1,500 crore on business income arising out of the transfer of telecom licences and other assets from Aditya Birla Telecom as part of the demerger, while ABTL, which is a subsidiary of Idea Cellular, has been served with a tax demand of Rs2,400 crore. Idea confirmed that it had received the tax orders, but said the demands are not justified.
"They are inconsistent with established tax laws and past precedents. The company believes the demands are unjustified and based on an erroneous interpretation of the current tax laws and the facts of the case," the 111 telco said, adding that it will challenge the orders. Tax experts buy Idea's argument, and say using the provisions of the General Anti-Avoidance Rules (GAAR) on court-approved demergers will set a wrong precedent. "The law was amended to make mergers and de-mergers taxneutral, if they complied with certain conditions. Attempts by the tax office to tax such transactions will only be a negative move at a time when restructuring is a business inevitability," said DineshKanabar, deputy CEO of KPMG India. In 2009, ABTL transferred its telecom licence for the Bihar circle, along with other assets and liabilities, to its parent, Idea Cellular.

Both the Gujarat and Bombay High Courts approved the arrangement, which valued the transaction atRs2,069 crore. "The transaction involves a scheme of restructuring between a wholly owned subsidiary and a parent company with the sole objective of administrative consolidation of a telecom licence of one service area in the parent company, without any financial transaction or transfer of funds," Idea said.

Kalpesh Desai, Partner at BMR & Associates, said the new approach of the I-T authorities would make business reorganisations tougher for companies. "The Indian revenue authorities seem to have taken a view that all transactions must be implemented at arms length price even if these are merely internal group reorganisations (without any 'real' income).

This approach will increase the risk for group reorganisations and increase transaction costs." Parthasarathi Shome, who was appointed by the government to review the controversial GAAR provisions, said in his panel's final report, "An illustrative list of tax mitigation or a negative list for the purposes of invoking GAAR, as mentioned below, should be specified- for instance amalgamations and de-mergers (as defined in the Act) as approved by the High Court." 

AARTI

PGDM 2nd SEM

Arvind Kejriwal to end fast tomorrow

AAP leader Arvind Kejriwal will break his indefinite fast against "inflated" power and water bills tomorrow on the 15th day of his protest after launching the second phase of 'Civil Disobedience Movement'.
Announcing his plans on Friday, Kejriwal invoked Anna Hazare in his speech and expressed his wish to break the fast after receiving a glass of juice from the 74-year-old activist with whom he had split last September on the question of the anti- corruption movement taking a political plunge.
Hazare, however, would not be able to come to Delhi tomorrow as he was on his nation-wide tour, Kejriwal said.
Two AAP leaders Manish Sisodia and Kumar Vishwas had met Hazare yesterday who is in Haryana and invited him to come to Delhi to break Kejriwal's fast. Hazare expressed his inability to come to Delhi, but wrote a letter appealing Kejriwal to end his fast.
As part of the launch of the second phase, the Aam Aadmi Party activists will visit every ward and reconnect power and water connections disconnected by authorities for non-payment of bills, Kejriwal told his supporters after breaking the fast which started on March 23.
"After that, tomorrow evening the activists will assemble here and I will break my fast. I will be only breaking my fast but the movement, the protest will go on," Kejriwal said.
"I wanted to break my fast by accepting a glass of juice from Anna Hazare but he cannot be here tomorrow because of his tour. Though he would not be present here, I have his blessings," he said.
Hazare had visited Kejriwal at the protest site in north- east Delhi's Sunder Nagri on March 29 and had urged him to end his fast.
Later, Kejriwal also got the support of activists Aruna Roy and Medha Patkar, who had differences with him over his stand on the Lokpal Bill and anti-corruption movement entering politics, emphasising the need for a CAG audit of private discoms in Delhi.
He said 10.5 lakh people have signed the petition saying that they will not pay the power bill.
"Does that mean they will stop paying power bills? No. But this is just the beginning. Everyone in Delhi upset with inflated power bills," the AAP leader said.
 AARTI
 PGDM 2 nd SEM

IIMT COLLEGE  HAD ORGANISE A STAR NIGHT ON 2nd APRIL

PREETI CHAUHAN
PGDM 2nd SEM