he government has sought clarification from three private sector telecom operators for not reporting income from selling handsets along with their connections, a union minister said Monday.
"The Department of Telecommunications (DoT) has sought clarification from Bharti Airtel, Vodafone Esar and Idea Cellular for not showing income from bundling handsets along with connections, for the purpose of calculating revenue share payable to the exchequer," Minister of State for Communications and IT Gurudas Kamat told the Lok Sabha.
Kamat said the operators have said that they were not selling handsets directly and hence "there is no revenue earned under this head".
However, the special audit, ordered by the government last week to check whether leading private telecom players misreported their revenues, will take the issue into account, the minister said.
Monday, July 20, 2009
Hearing on Reliance gas dispute adjourned to Sep 1
The Supreme Court Monday adjourned till Sep 1 its hearing on a row between Mukesh Ambani's Reliance Industries and his brother Anil's Reliance Natural Resources over natural gas supplies and asked the two parties to reply to the government stand on the matter.
Commencing the hearing on the petition filed by Reliance Industries that challenges the verdict of the Bombay High Court last month on gas supplies from Krishna-Godavari Basin, off the Andhra Pradesh coast, the apex court declined to pass any interim order.
Chief Justice K.G. Balakrishnan issued notices to power firms such as GMR, GVK and Gautami Power that sought to intervene in the matter on concerns over the impact on the supplies if the fuel is diverted to Reliance Natural Resources at lower rates.
The Bombay High Court had asked Reliance Industries to supply 28 million units of gas to Reliance Natural Resources for 17 years at $2.34 per unit, after assigning 12 million units to the state-run National Thermal Power Corp.
It was also decided during Monday's hearing to club all petitions in this regard when the case comes up before a three-member bench to be set up. The government has sought to join the case as an intervener, amid opposition by Anil Ambani's firm.
"The court said it wants to hear the case with three judges. So it set Sep 1 as the next date. There were no observations, no directions," said Ram Jethmalani, who is appearing as a lawyer on behalf of Reliance Natural Resources.
"One thing is very clear -- the Supreme Court is concerned by the importance of this case," said Harish Salve who appeared on behalf of Reliance Industries and maintained that the court had not stopped Reliance Industries from selling gas to other parties.
"The interpretation doesn't change after the hearing. In fact, let's be clear. I told the court that the arrangements in place would continue. The court said we have not stopped you," Salve said.
He said the crux of the case was whether a family arrangement that was meant to bring parity between two brothers should override sovereign policies when natural gas is now being sold for $4.20 per unit and one party still wants it for $2.34 per unit.
The senior counsel also maintained that the pact between the two brothers could not be broken into bits and pieces. "The agreement said it is subject to company approval, it is subject to government approval. It expressly said so."
But in the reply to the law suit filed by Reliance Industries, the Anil Ambani-led firm has said the petroleum ministry has no role to play in the private gas sharing dispute, certainly not as a party to the row, and that the government will not lose any revenue.
"The petroleum ministry filed the affidavit blatantly and openly in support of Reliance Industries. This affidavit should, therefore, be struck off the records of the Supreme Court," the company said.
Commencing the hearing on the petition filed by Reliance Industries that challenges the verdict of the Bombay High Court last month on gas supplies from Krishna-Godavari Basin, off the Andhra Pradesh coast, the apex court declined to pass any interim order.
Chief Justice K.G. Balakrishnan issued notices to power firms such as GMR, GVK and Gautami Power that sought to intervene in the matter on concerns over the impact on the supplies if the fuel is diverted to Reliance Natural Resources at lower rates.
The Bombay High Court had asked Reliance Industries to supply 28 million units of gas to Reliance Natural Resources for 17 years at $2.34 per unit, after assigning 12 million units to the state-run National Thermal Power Corp.
It was also decided during Monday's hearing to club all petitions in this regard when the case comes up before a three-member bench to be set up. The government has sought to join the case as an intervener, amid opposition by Anil Ambani's firm.
"The court said it wants to hear the case with three judges. So it set Sep 1 as the next date. There were no observations, no directions," said Ram Jethmalani, who is appearing as a lawyer on behalf of Reliance Natural Resources.
"One thing is very clear -- the Supreme Court is concerned by the importance of this case," said Harish Salve who appeared on behalf of Reliance Industries and maintained that the court had not stopped Reliance Industries from selling gas to other parties.
"The interpretation doesn't change after the hearing. In fact, let's be clear. I told the court that the arrangements in place would continue. The court said we have not stopped you," Salve said.
He said the crux of the case was whether a family arrangement that was meant to bring parity between two brothers should override sovereign policies when natural gas is now being sold for $4.20 per unit and one party still wants it for $2.34 per unit.
The senior counsel also maintained that the pact between the two brothers could not be broken into bits and pieces. "The agreement said it is subject to company approval, it is subject to government approval. It expressly said so."
But in the reply to the law suit filed by Reliance Industries, the Anil Ambani-led firm has said the petroleum ministry has no role to play in the private gas sharing dispute, certainly not as a party to the row, and that the government will not lose any revenue.
"The petroleum ministry filed the affidavit blatantly and openly in support of Reliance Industries. This affidavit should, therefore, be struck off the records of the Supreme Court," the company said.
What is the Reliance gas dispute all about?
The raging dispute being heard in the Supreme Court between the companies belonging to the two Ambani brothers, Mukesh and Anil, mainly concerns the supply and pricing of natural gas from the Krishna Godavari basin.
At the core of the dispute is how valid is a family pact reached between the two brothers, brokered by their mother Kokilaben when the Reliance empire was split a few years ago, in deciding the price of gas in which the government, too, has claimed a share.
The fields, off the Andhra Pradesh coast, were won by Mukesh Ambani-led Reliance Industries, and are one of the biggest discoveries made in Asia in recent years. Anil Ambani wants a part of the gas for his group's power plants, based on the family pact.
But the ministry of petroleum and natural gas is not happy with the price at which Anil Ambani has asked for the gas -- between the time the family pact was reached in 2005 and now, hydrocarbon prices have more than doubled.
The government, based on the recommendations of a committee led by the present Finance Minister Pranab Mukherjee, had recommended the price of natural gas from the Krishna Godavari basin at $4.21 per unit.
Last month, the Bombay High Court asked Reliance Industries to supply 28 million units to Reliance Natural Resources for 17 years at $2.34 per unit after assigning 12 million units to the state-run National Thermal Power Corp.
Reliance Industries has challenged this verdict in the Supreme Court, even as the ministry of petroleum and natural gas has joined the dispute as part owner of the gas, and has called for the family pact to be declared null and void.
This stand has been contested by Reliance Natural Resources. It says the dispute has been depicted as one with the government, rather than one between the two companies, adding the government actually has little role to play in it.
All parties have filed their respective affidavits and stated their positions in the Supreme Court before Monday, which was the date fixed for commencement of hearing on what has turn out to be a high-profile corporate battle.
At the core of the dispute is how valid is a family pact reached between the two brothers, brokered by their mother Kokilaben when the Reliance empire was split a few years ago, in deciding the price of gas in which the government, too, has claimed a share.
The fields, off the Andhra Pradesh coast, were won by Mukesh Ambani-led Reliance Industries, and are one of the biggest discoveries made in Asia in recent years. Anil Ambani wants a part of the gas for his group's power plants, based on the family pact.
But the ministry of petroleum and natural gas is not happy with the price at which Anil Ambani has asked for the gas -- between the time the family pact was reached in 2005 and now, hydrocarbon prices have more than doubled.
The government, based on the recommendations of a committee led by the present Finance Minister Pranab Mukherjee, had recommended the price of natural gas from the Krishna Godavari basin at $4.21 per unit.
Last month, the Bombay High Court asked Reliance Industries to supply 28 million units to Reliance Natural Resources for 17 years at $2.34 per unit after assigning 12 million units to the state-run National Thermal Power Corp.
Reliance Industries has challenged this verdict in the Supreme Court, even as the ministry of petroleum and natural gas has joined the dispute as part owner of the gas, and has called for the family pact to be declared null and void.
This stand has been contested by Reliance Natural Resources. It says the dispute has been depicted as one with the government, rather than one between the two companies, adding the government actually has little role to play in it.
All parties have filed their respective affidavits and stated their positions in the Supreme Court before Monday, which was the date fixed for commencement of hearing on what has turn out to be a high-profile corporate battle.
Microsoft India Launches 'Online Services' for Indian businesses
Businesses of all sizes, especially small and medium sized businesses (SMBs) can now save upto 50 percent of their IT-related costs with the launch of Microsoft Online Services. Microsoft India has also announced a free trial period of two-months for the range of services, which include e-mail, collaboration, conferencing and productivity capabilities. Starting immediately, date customers can try the offering at http://www.microsoft.com/online at no charge, allowing them to experience the potential impact Online services can have on their businesses before the commercial launch in October 2009.
4 steps to cost saving with Microsoft online services
Step 1 - log on to www.microsoft.com/india/onlineservices
Step 2 - Choose country and log in with Live id
Step 3 - Add chosen services to shopping cart
Step 4 - After you are notified that your service is set up, use your service.
Modelled on the 'pay-as-you-go' approach, Online Services provide affordability, enhanced productivity, and freedom from hassles of IT deployment. Online Services will allow businesses to stay in touch with customers, associates and teams across geographic boundaries round the clock and provide instant access to information, thereby enhancing efficiency and reducing costs.
"Over 80 percent of the businesses in India are SMBs that are increasingly looking to use world class IT for better business productivity. With tools such as email and collaboration becoming increasingly a must-have in this segment, the pay-as-you-go affordability and freedom from IT administration, Microsoft Online Services offers the much needed respite from financial and logistical hurdles. We encourage businesses to make the best of the free trial opportunity we are launching - and experience the powerful impact of Microsoft Online Services.' said Mr. Sanjay Manchanda, Director, Microsoft Business Division.
"This launch also marks the second phase of Microsoft software plus services vision following the tremendous success we have seen of our hosted offerings including Hosted Exchange and Hosted ERP among Indian enterprises". he added.
Commenting on the launch, Mr. Mohammad Saif, Deputy Director, Consulting - ICT Practice, Frost & Sullivan, South Asia & Middle East said, "Lower TCO and capital expenditure, rapid deployment cycle, and a wide variety of offerings by various global vendors have constituted the driving force for on-demand softwares in India. Increasing awareness about the delivery model and flexibility of trial version have helped in allaying the apprehension of customers and is expected to play a major role in the growth of the on-demand software market, which is expected to grow from the current level of $40 Mn to $800 Mn by 2015, with SME fuelling the growth."
Microsoft Online Services is a part of Microsoft software plus services strategy which provides flexibility and choice of accessing and using software on premise and on Internet as a service. As part of the Microsoft Online Services product family, Exchange Online (for e-mail) and Office SharePoint Online (portals and collaboration) are available separately or as a suite together with Office Live Meeting (for conferencing), Microsoft Exchange Hosted Services and Microsoft Office Communications Online (for instant messaging and presence).
In the coming months, Microsoft Online Services will also provide significant opportunities to a huge ecosystem of partners that will sell, customize and provide consulting, migration and managed services for Microsoft Online Services to Indian small and medium businesses.
4 steps to cost saving with Microsoft online services
Step 1 - log on to www.microsoft.com/india/onlineservices
Step 2 - Choose country and log in with Live id
Step 3 - Add chosen services to shopping cart
Step 4 - After you are notified that your service is set up, use your service.
Modelled on the 'pay-as-you-go' approach, Online Services provide affordability, enhanced productivity, and freedom from hassles of IT deployment. Online Services will allow businesses to stay in touch with customers, associates and teams across geographic boundaries round the clock and provide instant access to information, thereby enhancing efficiency and reducing costs.
"Over 80 percent of the businesses in India are SMBs that are increasingly looking to use world class IT for better business productivity. With tools such as email and collaboration becoming increasingly a must-have in this segment, the pay-as-you-go affordability and freedom from IT administration, Microsoft Online Services offers the much needed respite from financial and logistical hurdles. We encourage businesses to make the best of the free trial opportunity we are launching - and experience the powerful impact of Microsoft Online Services.' said Mr. Sanjay Manchanda, Director, Microsoft Business Division.
"This launch also marks the second phase of Microsoft software plus services vision following the tremendous success we have seen of our hosted offerings including Hosted Exchange and Hosted ERP among Indian enterprises". he added.
Commenting on the launch, Mr. Mohammad Saif, Deputy Director, Consulting - ICT Practice, Frost & Sullivan, South Asia & Middle East said, "Lower TCO and capital expenditure, rapid deployment cycle, and a wide variety of offerings by various global vendors have constituted the driving force for on-demand softwares in India. Increasing awareness about the delivery model and flexibility of trial version have helped in allaying the apprehension of customers and is expected to play a major role in the growth of the on-demand software market, which is expected to grow from the current level of $40 Mn to $800 Mn by 2015, with SME fuelling the growth."
Microsoft Online Services is a part of Microsoft software plus services strategy which provides flexibility and choice of accessing and using software on premise and on Internet as a service. As part of the Microsoft Online Services product family, Exchange Online (for e-mail) and Office SharePoint Online (portals and collaboration) are available separately or as a suite together with Office Live Meeting (for conferencing), Microsoft Exchange Hosted Services and Microsoft Office Communications Online (for instant messaging and presence).
In the coming months, Microsoft Online Services will also provide significant opportunities to a huge ecosystem of partners that will sell, customize and provide consulting, migration and managed services for Microsoft Online Services to Indian small and medium businesses.
Sunday, July 19, 2009
49 per cent FDI in print media safe: Ambika Soni
With the media reeling under the financial crunch, Information and Broadcasting Minister Ambika Soni has backed increasing FDI (foreign direct investment) in print media to 49 per cent, saying "it is safe".
"I think it is a good suggestion," Soni said in an interview when asked about her views on increasing FDI in print media from 26 per cent to 49 per cent.
"We already have 26 per cent FDI. A large number of newspapers and the entire journalist fraternity is for the infusion of more capital into print media so that they can have better working conditions, and the media is facing a financial crunch," she said.
"I feel 49 per cent is safe. It would not give control to someone from outside," she said.
Soni, however, stressed that the government will consult all stakeholders before taking this crucial decision. "But this is something about which I would like to talk to those who are not of the same view," she said.
Soni's remarks indicated the UPA government's interest in raising the FDI ceiling in print media from 26 percent to 49 per cent as recommended by the Telecom Regulatory Authority of India (TRAI) in its recent report.
The 49 per cent FDI, as proposed by TRAI, also covers foreign institutional investors. TRAI has also recommended a raise in the ceiling for cable networks from the existing 49 percent to 74 percent and for FM radio, from the existing 20 percent to 49 percent.
The proposed hike in FDI is being opposed by some media houses, but the government is looking at the issue afresh in the light of the capital crunch that small and medium newspapers are facing.
"I think it is a good suggestion," Soni said in an interview when asked about her views on increasing FDI in print media from 26 per cent to 49 per cent.
"We already have 26 per cent FDI. A large number of newspapers and the entire journalist fraternity is for the infusion of more capital into print media so that they can have better working conditions, and the media is facing a financial crunch," she said.
"I feel 49 per cent is safe. It would not give control to someone from outside," she said.
Soni, however, stressed that the government will consult all stakeholders before taking this crucial decision. "But this is something about which I would like to talk to those who are not of the same view," she said.
Soni's remarks indicated the UPA government's interest in raising the FDI ceiling in print media from 26 percent to 49 per cent as recommended by the Telecom Regulatory Authority of India (TRAI) in its recent report.
The 49 per cent FDI, as proposed by TRAI, also covers foreign institutional investors. TRAI has also recommended a raise in the ceiling for cable networks from the existing 49 percent to 74 percent and for FM radio, from the existing 20 percent to 49 percent.
The proposed hike in FDI is being opposed by some media houses, but the government is looking at the issue afresh in the light of the capital crunch that small and medium newspapers are facing.
Nissan bets big on India for global operations
Japanese auto giant Nissan Motor Co is betting big on India not only for manufacturing cars for domestic and overseas markets but also for sourcing components for its global operations.Nissan will be rolling out three different variants of its hatchback and sedan models, as well as a multipurpose vehicle (MPV), from five plants across the world, one of which is coming up at Oragadam, 55 km from here.
According to Nissan general manager (communications) Fernando Menezes, the company plans to have India as its global sourcing hub for components not only for those models but also for vehicles made elsewhere.
Menezes said Nissan is exploring what components could be sourced from India.
The other plants are located in Thailand and China while the locations of the remaining two are yet to be decided.
"The idea is to roll out one million vehicles, that is, 25 percent of the company's current annual sales, from the five plants," said Menezes.
"Sixty percent of the components that go into the three models are interchangeable providing a huge competitive component sourcing opportunity," Menezes told IANS.
All the three global models built on a single platform are expected to roll out of the Indian plant next May.
The company plans to ship out 110,000 units from the Indian plant from 2011 onwards and later increase the export to 180,000 units to more than 100 countries.
Under the single platform formula, the basic or core design and bulk of the components remain the same across several models, but changes are made in some areas to offer a differentiated product.
Automobile manufacturers the world over, including India's Tata Motors, have started following the single platform model to reduce design and manufacturing cost, said V.G. Ramakrishnan, senior director of Automotive and Transportation Practice at business research and consultancy Frost and Sullivan.
Citing the case of Tata Motors that launched Indica, Indigo and Indigo Marina built on the same platform, Ramakrishnan said: "The chassis and some other components may be tweaked based on the need."
Ford India's diesel Ikon is powered by the same engine that powered its Fiesta diesel, while Tata Motors' Indica Vista uses Fiat's engine.
Nissan's Menezes declined to spell out whether the three models will be powered by the same engine, saying: "The engine will depend on what an individual market demands. Other than the engine there are many parts in a vehicle that are interchangeable."
He said the proposed cars will be lighter and more fuel-efficient but will not have Nissan's newly developed fuel injection systems for small capacity petrol engines.
The hatchback that will be rolled out next May will replace Nissan's existing March (sometimes called Micra) model.
Referring to the upcoming plant in India, Menezes said 70 percent of the construction work has been completed.
A major chunk of the 350 billion yen ($3.72 billion) that Nissan will invest on expansion will be in its Indian plant owned by Renault Nissan Automotive India, a 50:50 joint venture the Japanse company has with French car maker Renault.
The joint venture was supposed to roll out 200,000 cars on an investment of Rs.4,500 crore by each partner.
Renault has suspended its Indian investment since then owing to the economic slowdown, but Nissan is going ahead with its India plans.
Meltdown makes Indian firms smarter
A dramatic meltdown after boom years globally has made Indian firms smarter in employee engagement and talent management, which will help it grow faster when recovery begins, predicts a study by global consulting firm Deloitte.
"Indian companies across sectors are trying to make the best of tough times and preparing for growth opportunities when the economy picks up. Unlike in the West where firing is the norm, our study shows Indian firms are focussing on talent management and cost cutting," Deloitte director P. Thiruvengadam told IANS.
A cross-industry dipstick survey on employee engagement in recessionary times by Deloitte's human capital advisory services found Indian firms were in a wait-and-watch mode without retrenching, but trying to balance both employee and operational costs.
Of the 130 firms approached for the survey, 65 participated, including 22 multinationals.
"Companies are focussing on their ability to attract, develop and retain top talent to remain viable and competitive in the short and long terms. Though campus offers have trickled down, selective hiring is taking place. Employees are being involved in cost management, quality and client servicing," Thiruvengadam said quoting the findings.
Of the participant firms, 44 percent represented TMT (technology, media and telecom), 27 percent manufacturing, seven percent FMCG (fast moving consumer goods), five percent pharma and 27 percent others.
The study found companies implementing metrics to determine return on investment on human resources. Investment in proprietary knowledge and technological upgrade is continuing, albeit slower than during the boom times.
"Lower attrition has turned out to be a boon, as firms are able to retain talent by setting higher performance benchmarks, with stringent measures and quarterly monitoring. By recruiting consultants and freelancers, firms are able to save on employee benefit costs," Thiruvengadam said.
The eight-week survey said companies were substituting lucrative bonus and international travel with opportunities for advancement and flexible working hours to retain employees.
"Smart firms have turned inward, consolidating operations, rationalising requirements and optimising resources to ride the slowdown," Thiruvengadam said.
The survey also found companies were not cutting back on training programmes but only reducing training costs. The focus is on empowering employees with multi-skills to handle different tasks and building a strong leadership pipeline.
"Indian companies across sectors are trying to make the best of tough times and preparing for growth opportunities when the economy picks up. Unlike in the West where firing is the norm, our study shows Indian firms are focussing on talent management and cost cutting," Deloitte director P. Thiruvengadam told IANS.
A cross-industry dipstick survey on employee engagement in recessionary times by Deloitte's human capital advisory services found Indian firms were in a wait-and-watch mode without retrenching, but trying to balance both employee and operational costs.
Of the 130 firms approached for the survey, 65 participated, including 22 multinationals.
"Companies are focussing on their ability to attract, develop and retain top talent to remain viable and competitive in the short and long terms. Though campus offers have trickled down, selective hiring is taking place. Employees are being involved in cost management, quality and client servicing," Thiruvengadam said quoting the findings.
Of the participant firms, 44 percent represented TMT (technology, media and telecom), 27 percent manufacturing, seven percent FMCG (fast moving consumer goods), five percent pharma and 27 percent others.
The study found companies implementing metrics to determine return on investment on human resources. Investment in proprietary knowledge and technological upgrade is continuing, albeit slower than during the boom times.
"Lower attrition has turned out to be a boon, as firms are able to retain talent by setting higher performance benchmarks, with stringent measures and quarterly monitoring. By recruiting consultants and freelancers, firms are able to save on employee benefit costs," Thiruvengadam said.
The eight-week survey said companies were substituting lucrative bonus and international travel with opportunities for advancement and flexible working hours to retain employees.
"Smart firms have turned inward, consolidating operations, rationalising requirements and optimising resources to ride the slowdown," Thiruvengadam said.
The survey also found companies were not cutting back on training programmes but only reducing training costs. The focus is on empowering employees with multi-skills to handle different tasks and building a strong leadership pipeline.
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