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Roaming to get cheaper'); document.write('
posted on November 20, 2009 09:54:32 pm'); document.write('
YOGESH MEHENDALE

Mumbai

Nov. 20: After dropping the call tariff to woo customers, the telecom majors have extended their war to the national roaming rates.

In response to the decision of Reliance Commun-ications to reduce national roaming rate to 50 paise per minute, Bharti Airtel on Friday slashed its roaming charges by 60 per cent at 80 paise per minute for all outgoing calls to another network.

According to the experts, the other operators also would follow suit in the next few weeks.

Asserting that the next level of the tariff war has started, Mr Nitin Soni, a telecom analyst at Fitch Ratings, said: "To maintain the existing market share, other telecom operators also will have to slash the rates. Since October, this tariff war has been intensifying and the magnitude of its impact on the revenues and the margins of the telecom companies would reflect in the third quarter results."

In the long term, the impact of the tariff war would be more severe for the new players than for the existing players, as their break-even would be extended by about two years, he added.

A top official of Bharti Airtel, however, feels that the reduction in national roaming rates would increase the talk time and in turn it would increase the revenue for the company.

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Falling dollar won?t hit India'); document.write('
posted on November 20, 2009 09:54:01 pm'); document.write('
AGE CORRESPONDENT

Mumbai

Nov. 20: India is least vulnerable to the depreciating dollar among the four major developing countries ? Brazil, Russia, India and China ? due to its limited exposure to US treasury bonds.

According to Mr Jaganna-dham Thunuguntla, the equity head of SMC Capital, "As of September 2009, out of India?s total forex reserves of $280.34 billion, only 12.81 per cent were invested in the US treasury bonds. However, Brazil has 64.63 per cent of its forex reserves exposed to the US bonds, Russia 29.23 per cent and China 35.15 per cent."

On the back of severe economic recession of 2008, there are serious concerns in the global economic circles regarding increased US fiscal deficit and hence a possible downgrading of US sovereign credit rating.

All this has brought virtual consensus regarding the eventual collapse of the US dollar as the reserve currency of the world.

Mr Thunuguntla, further, said: "This makes countries such as Brazil, China and Russia moare vulnerable than India to any possible US downgrading as these countries have relatively higher exposure to the US treasury bonds. India has reduced its exposure to the dollar to 12.81 per cent in September 2009 from 14.79 per cent in May 2009."

India wants to rechannelise its forex reserves to non-dollar assets and the recent acquisition of 200 tonnes of gold also stren-gthens this view, he added.

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Switching mobile firm will cost Rs 19'); document.write('
posted on November 20, 2009 09:53:37 pm'); document.write('
AGE CORRESPONDENT

New Delhi

Nov. 20: A consumer will pay a maximum of Rs 19 to change his mobile operator while retaining the number under the mobile number portability (MNP), according to a Trai decision.

To implement the MNP, the whole country has been divided into two zones consisting of 11 service areas with two metros in each zone. The telecom department has offered licenses to Syniverse Technologies for rolling out the number portability in the north and western region (Zone 1) and Interconnection Telecom to roll out number portability in the eastern and southern region of the country (Zone II).

According to a senior official in Trai, the telecom operator on whose network the consumer is moving will have to pay the MNP service provider (either Syniverse or Interconn-ection depending upon the service area) Rs 19 per subscriber.

The telecom operator in turn can charge the consumer a maximum Rs 19. In order to gain more market share, the telecom provider is free to charge nothing from the consumer who his moving on its network.

The facility to retain the existing mobile telephone number despite moving to a new telecom service provider helps in increasing the competition between the service providers and acts as a catalyst for the service providers to improve their quality of service, said Trai.

An IDC survey said that 30 per cent subscribers would like to switch their service provider, if they can retain their numbers.

The telecom regulator Trai had earlier proposed that a subscriber should be allowed to change his telecom service provider under the mobile number portability only if he has completed 90 days with it.

A subscriber wishing to port will have to give in writing that he has paid all outstanding bills of the previous operator.

If the subscriber fails to pay the old bills, his connection will be terminated by the new telecom service provider. According to the guidelines for acquiring a new user, the recipient operator, within five days of receiving a written request, has to carry out a subscriber verification.

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Singh targets 9% growth'); document.write('
posted on November 20, 2009 09:51:36 pm'); document.write('
Lalit K Jha

Washington

Nov. 20: The Prime Minister, Dr Manmohan Singh, was confident of India soon returning to nine per cent growth level, helped by resumption in capital flows from developed nations, and hoped that the US economy too would rebound.

"With the entrepreneurial skills of the US business class and the US educational system, I have no doubt that the United States will overcome this temporary setback (economic crisis)," he told The Washington Post ahead of his visit to the US starting November 22.

Dr Singh will be the President, Mr Barack Obama?s, first official state guest and would, among other things, seek to operationalise the India-US civil nuclear deal clinched during the presidency of Mr George W Bush.

"Our export growth rate has sharply declined. The flow of capital has also been affected," he said, referring to the global economic crisis of last year.

"But more recently, capital has started coming back to our country. Before the crisis, our growth rate was at 8.5 per cent to nine per cent per year. This year, it will be about 6.5 per cent. In two years, we should go back to nine per cent growth rate," Dr Singh said.

India?s economic growth fell sharply to 6.7 per cent in 2008-09 after three years of over nine per cent expansion, largely on collapse in investments and fall in exports. Responding to questions on the economic crisis, the Prime Minister was optimistic of US? reco-very from last year?s crisis. He was of the view that India?s banking system was far better regulated. "We don?t allow our banking system to invest heavily in those types of assets which finished the US banks."

To questions whether he has made a difference to India as a Prime Minister and "what will your legacy be?", Dr Singh said: "I hope I?ve made some difference. That?s for posterity to judge." ? PTI

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Anytime shopping drives Indians to e-commerce'); document.write('
posted on November 20, 2009 09:51:34 pm'); document.write('
Sangeetha Chengappa

Bengaluru

Nov. 20: The ongoing uncertainty on the outlook of the global economy certainly does not seem to have dampened Indian Internet shoppers\' enthusiasm.

They continue to shop using payment cards online, says the latest Visa e-Commerce Consumer Monitor.

Around 2,294 Internet users aged between 18 to 49 from Australia, China, India, Japan, South Korea and Singapore were interviewed from April to

June 2009, of which 400 Internet users were from India.

\'Freedom to shop anytime,\' \'the ability to compare prices and save money,\' and \'save time\' were the top three reasons for Indian respondents to shop online.

While respondents from Asia Pacific spent an average of $2,526 per consumer over the last 12 months Indians spent an average of $2,086 in the same period.

Mr Uttam Nayak, the country manager (South Asia), Visa said, "At least one in three respondents are satisfied with the security of online payment systems. We are focused on promoting a safe online payment environment and this is reflected in our cardholders\' positive outlook toward online payment."

While music was the most popular online category for Indians, they spent much more on travel-related items online.

"Travel remains attractive for many consumers even as the global economic outlook remains cautious," Mr Nayak said.

"Being able to search for a good deal, compare prices and save money is definitely a driver for consumers to go online."

Interestingly, 51 per cent of the Indian respondents are shopping more on overseas e-commerce websites (especially the United States) for books, software and artefacts that are not available in India; they also find it is cheaper to purchase products and services from the American websites as they offer better discounts, said Mr Pankaj Rajurkar, associate director (business development), Visa India.

Despite the positive incidence of cross-border shopping in India, Indians are more concerned about the security of online cross-border shopping as compared to the other Asia Pacific respondents (55 per cent vs 45 per cent for Asia Pacific average).

The study indicates that amongst those who are concerned about using payment cards online, the key source of confidence for them would be reassurance by the bank that they could use their payments cards online (60 per cent).

Indian Internet users will have many new avenues to transact online in the near future.

For instance, in the areas of Education (IIT allowed applicants to pay admission fees for entrance exams by credit card this year), utility bill payments as well as entertainment (buying movies, paying cable operator bills etc), noted Mr Rajurkar.

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India may lose English edge to China'); document.write('
posted on November 20, 2009 09:50:16 pm'); document.write('
PAWAN BALI

New Delhi

Nov. 20: Is India slowly losing its edge over China in terms of its English-speaking population? The linguistic expert, Mr David Graddol, who has been commissioned to research this subject by the British Council said that the number of people speaking English in China could surpass the numbers in India in the coming decade.

"It (can) no longer be assumed that India has more English speaking people than China," Mr Graddol said. He said that China got committed to impart English language in its primary schools in 2001.

"The results are visible in the classrooms. I visit schools in most of the big cities of China and had conversations in English with students of 10-years of age. So, it appeared to be effective at least among the middle-class and in the urban areas," said Mr Graddol.

Asked whether the number of English-speaking people in China could surpass those in India in the next decade, Mr Graddol replied: "The trajectory that it is on at the moment suggests that it will. I say that because India has so far not been able to successfully increase the people?s reach to English language."

He said that the private schools in India are teaching English in an effective manner. "But to teach English properly in the vernacular medium schools has not taken off effectively," added Mr Graddol.

Mr Raman Roy, a pioneer among India?s BPO industry and head of Quattro BPO Solutions said that if the nu-mber of people speaking En-glish in China is more than India?s, it could increase the competition. "But in China, I have struggled to order even a cup of tea in English. I don?t know where these English-speaking people go as you can?t find them when you go there," Mr Roy said.

However, he added that if the number of English-speaking people in China is actually increasing, then it is a good news and "I will open a centre there".

The Nasscom president, Mr Som Mittal, said that due to this India is unlikely to lose its edge in the IT/ITES business. "English is one of the elements (of the outsourcing business). Indian IT companies have better technical capability, mature processes and are moving up the value chain," Mr Mittal said.

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Gold hits Rs 17,500 milestone'); document.write('
posted on November 20, 2009 09:50:02 pm'); document.write('
New Delhi, Nov. 20: Continuing its record setting spree, gold on Friday surged by Rs 100 and touched a new high of Rs 17,500 per 10 gram in the bullion market here on heavy buying by jewellery makers amid firming global trend.

Silver coins also rose to an all-time high of Rs 34,200 for buying and Rs 34,300 for selling of 100 pieces, recording a significant rise of Rs 200.

Analysts said that gold prices might touch Rs 18,000-level here once physical buying starts in the overseas market ahead of the Christmas season.

The yellow metal, which moves in tandem with the international trend, got support from firming global cues rather than physical buying for the current marriage season, said Mr Mahesh Verma of OM Sons Jewellers.

The yellow metal in the overseas markets rose to $1,154 an ounce.

Some of the investor funds were seen shifting from volatile equities to bullion, boosting gold prices.

The precious metal commenced its upward journey ever since the Reserve Bank of India bought 200 tonnes of gold from the International Monetary Fund, raising fears that some more central banks may follow suit.

The major transaction took place at a time when the market was passing through a hectic marriage season buying.

Besides, a firming global trend due to the greenback?s weakeness overseas has boosted the demand for the yellow metal as an alternate investment.

? PTI

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SKS to raise Rs 1,300cr'); document.write('
posted on November 20, 2009 09:47:47 pm'); document.write('
AGE CORRESPONDENT

Chennai

Nov. 20: Hyderabad-based SKS Microfinance is planning to raise Rs 1,300 crore through banks and the capital market debt instruments in the current fiscal for its incremental fund requirements.

The company will mainly come out with debt instruments like rated paper, non-convertible debentures and commercial pool assignments.

The fund requirement for the current fiscal was estimated at Rs 7,000 crore. Of this, the microfinance company has already raised Rs 3,700 crore.

The chief financial officer of SKS Microfinance, Mr S. Dilli Raj, said that the company has deployed Rs 10,538 crore and its loan outstanding is around Rs 3,400 crore and the company is planning to close the current fiscal with total outstanding of Rs 4,700 crore.

On the product front, the company is piloting with cell phones and solar lights. "Both these pilot projects are successful and we will fund our members for buying these products, but we will not sell or distribute the products," he said.
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NTPC top IPP in Asia'); document.write('
posted on November 20, 2009 09:47:33 pm'); document.write('
AGE CORRESPONDENT

Hyderabad

Nov. 20: The state-run thermal power major NTPC Ltd has been ranked the No.1 Independent Power Producer (IPP) in Asia and No. 10 in overall performance am-ong the energy companies in Asia, by Platts, a division of the reputed McGraw-Hill companies. Globally, the PSU major has been adjudged number two Independent Power Producer and No 73 in overall performance. The award was received by Mr A.N. Mishra, additional general manager and STA to the chairman and managing director, at a Platts Top 250 Global Company Rankings Award ceremony held in Singapore recently.

The rankings have been based on four key metrics ? asset worth, revenues, profits and return on investment. In 2008-09, NTPC generated 206.9 billion units of electricity ? 28.6 per cent of the total power generated in the country. It had a revenue of Rs 45,272 crore and net profit of Rs 8,201 crore. On March 31, 2009, the asset base of NT-PC was Rs 1,05,224 crore.

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No import of rice for now, says Centre'); document.write('
posted on November 20, 2009 09:47:17 pm'); document.write('
New Delhi, Nov. 20: Against the backdrop of rising global prices, the government on Friday decided against rice import stating it has enough stocks to manage demand despite a shortfall of 15 million tonnes in Kharif production.

"We are not importing (rice). We have adequate stocks. We will review if there is any need (in future)," the commerce and industry minister, Mr Ana-nd Sharma, told reporters here after a meeting of the empowered group of ministers (eGoM) on food.

The eGoM, headed by the finance minister, Mr Pranab Mukherjee, decided to scr-ap the three tenders, totall-ing 30,000 tonnes, floated by the state-owned trading firms ? MMTC, STC and PEC.

"The government does not want to buy at such high prices," a source said addi-ng the option of imports th-rough government channels of exporting countries rem-ains open.

The three firms had recei-ved bids earlier this month with a price range of $372-598 per tonne. The landed price of these bids at the ports works out to be Rs 18-28 per kg against the average domestic price of Rs 22-25.

The sources said that glo-bal prices have been impacted after India entered the market.

The eGoM decision agai-nst rice imports, though an about-turn from the earlier government announcement, is being viewed in the trade circles as a strategy to cool the spiralling international price. They said, the government may again enter the market at an appropriate time.

Earlier this week, both Mr Mukherjee and Mr Sharma had spoken about the government move to import rice in view of production shortfall and rising food prices. ? PTI

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BEE label must from January 7'); document.write('
posted on November 20, 2009 09:46:48 pm'); document.write('
Coimbatore, Nov. 20: Refrigerators, transformers, ACs and tubelights would be brought under the man-datory labelling of the Bur-eau of Energy Efficiency (BEE) from January 7, a top BEE official said on Friday.

The Bureau has already issued notification in this regard and refrigerators up to 460 litres, ACs up to two tonnes, tubelights and all kinds of transformers would be covered under the mandatory BEE labelling, its director-general, Mr Ajay Mathur, said.

Pumps and motors, colour television sets, LPG stoves, and electric storage water heaters would be under voluntary labelling, which depending on the market response would be converted into mandatory labelling category, he added.

The electric items like pumps and ceiling fans were already in the category of voluntary labelling mechanism. The Bureau is working to bring some more pro-ducts, like washing machi-nes, mobile chargers, set top boxes, inverters, diesel pu-mp sets, computers, laptops, fax machines and printers under mandatory labelling, which would become operational in other two years.

Mr Mathur said by implementing these labels the nation can save a minimum 10,000 MW power annually. ? PTI

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Numeric to set up 1 MW solar project

AGE CORRESPONDENT

Chennai

Nov. 20: Numeric Power Systems Ltd, the largest UPS manufacturer in the country, is planning to set up a 1 MW solar project in Coimbatore with an investment of Rs 25 crore.

Outlining its entry into the solar power, the Numeric managing dire-ctor, Mr R. Chellappan, said, "We are the pioneers in solar energy system and eight of our manufacturing plants are partly powered by solar energy." The company will buy solar cells from suppliers in Japan and Germany and configure panel modules and assemble at the proposed Coimbatore facility.

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Banks hiked liquidity in ?09'); document.write('
posted on September 21, 2009 03:07:49 pm'); document.write('
Mumbai, Sept. 21: Banks kept aside more capital against various risks during 2008-09 with their capital adequacy ratio increasing to 13.98 per cent from 13.01 per cent a year ago, as they became selective owing to the global financial crisis.

Private banks had higher capital adequacy ratio at 15.23 per cent during 2008-09 against nationalised banks? 13.24 per cent.

Analysts said as banks slowed down their lending and became too selective in advancing loans to risk areas, capital adequacy ratio, which is the amount of capital that banks keep aside against various kinds of risks, showed a rising tendency.

As per the RBI report Profile of Banks 2008-09, the capital adequacy of ICICI Bank stood at 15.53 per cent compared to 13.97 per cent in the previous year.

Similarly, capital adequacy of HDFC Bank stood at 15.69 per cent in 2008-09 against 13.60 per cent in the previous year.

Among the state-run lenders, State Bank of India?s capital adequacy ratio stood at 14.25 per cent in 2008-09 against 13.54 per cent in 2007-08, while capital adequacy of Punjab National Bank was 14.03 per cent at the end of last fiscal against 13.46 per cent in the previous year.

Capital adequacy ratio of Canara Bank also rose to 14.1 per cent in 2008-09 against 13.25 per cent in 2007-08, while for Bank of Baroda, it stood at 14.05 per cent compared to 12.94 per cent in the previous year.

Overall, the capital adequacy ratio of nationalised banks rose to 13.24 per cent in 2008-09 against 12.13 per cent in the previous year while SBI and its associates banks increased to 13.96 per cent against 13.21 per cent in the previous year.

The capital adequacy ratio of foreign banks also rose to 14.30 per cent in 2008-09 against 13.08 per cent in the previous year.

Among the foreign banks, Citibank?s capital adequacy ratio increased to 13.23 per cent in 2008-09 compared to 12 per cent in the previous year while for Standard Chartered Bank, it rose to 11.55 per cent in the last fiscal compared to 10.59 per cent in the previous year.

The capital adequacy ratio of HSBC Bank also rose to 15.31 per cent in the last fiscal. ? PTI
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