The country's oil companies will lose Rs 225,000 crore in revenue this fiscal on account of spike in crude prices, a situation that calls for an immediate increase in retail fuel prices, Petroleum Minister Murli Deora has told the Prime Minister.
Sources said Deora, who called on Prime Minister Manmohan Singh here, also informed him that there was a limit to state-run oil marketing companies' capacity to absorb oil bonds and contribution by those having upstream operations.
"The upstream contribution during the year can be limited only to Rs 30,000 crore and they have a capacity to absorb oil bonds worth only Rs 35,000 crore. Another Rs 15,000 crore can be absorbed by oil marketing companies.
"This leaves a Rs 145,000 crore gap that has to be bridged with a combination of price increase and duty cuts," a source quoted Deora as informing Singh.
"I don't have anything to say," Deora told reporters when asked about his meeting with the Prime Minister.
Deora also met Chidambaram today but failed to convince him of the urgency to cut import and excise duties to avoid the Rs 2,00,000 crore revenue loss expected on petrol, diesel, domestic LPG and kerosene this fiscal. BPCL and HPCL have cash to buy crude oil only till July while Indian Oil can finance imports till September. The three firms face huge liquidity crisis as they are unable to realise full value of products sold.
Petroleum Ministry is proposing to raise petrol price by Rs 10 a litre, diesel by Rs 5 per litre and that of LPG by Rs 50 per cylinder cut the Rs 580 crore per day loss made by the three oil firms by one-third.
Tuesday, May 27, 2008
IPL bats its way into business school syllabi
MUMBAI: From stadiums to classrooms, IPL fever is raging. After the success of the Indian Premier League— known as much for its marketing glitz as for its cricketing antics—popular B-schools in Mumbai and outside have sought to include the IPL phenomenon in their syllabi.
Narsee Monjee Institute of Management Studies (NMIMS), Vile Parle, plans to rope in financial and marketing experts associated with IPL to train its faculty at a workshop on 'teaching sports management', slated to be held after the IPL tamasha ends. "We plan to offer an elective in sports management. We want the IPL team to help us design the course," said Ramesh Bhat, dean, school of business management at NMIMS. According to him, there's a lot to learn from the IPL's contract arrangements, with remuneration being based on performance.
"IPL has huge implications for the country," said Bhat. The authorities at Mudra Institute of Communications-Ahmedabad (MICA), and S P Jain Institute of Management and Research (SPJIMR) in Andheri also echo his views.
Students enrolled in the executive post-graduate programme in communication management (PGPCMX) course at MICA were recently given an assignment on the economic implications of IPL in the context of the Indian market. "Besides the business aspect, there's also a lot to be learnt in terms of organisational behaviour and leadership skills. While there are a number of team captains who are relatively new, some of the established players have not been able to find their place in the sun," said Hemant Trivedi, chairperson of the PGPCMX course. He plans to introduce a component on IPL in an elective on media and entertainment as well.
For B-schoolers, the IPL's success has underlined just how big a career in sports management could turn out to be. Raghu Chaitanya, a student at MICA, sees immense opportunity in the league. "After all, it's a mix of the two most popular things in the country—cricket and Bollywood," he said.
At the S P Jain Institute, students recently asked their marketing professor to discuss the IPL phenomenon with them. The issue was taken up at a faculty meeting where the dean, M L Shrikant, suggested that IPL could be an integral case study for a business model. Students have been asked to read 'What is Management?' by Joan Margretta and co-relate parts of the book with the IPL success story.
"IPL will help students understand the concept of a business model where there are a number of stakeholders whose interests have to be met," said Shrikant.
According to Bhat, IPL also presents a great career opportunity for management students in the years to come. After all, the GMR group, the infrastructure giant which owns the Delhi team, hired Colonel Vinod Bisht, who was a student of IIM-Ahmedabad's postgraduate programme in public policy and management, as its assistant vice president (operations).
Narsee Monjee Institute of Management Studies (NMIMS), Vile Parle, plans to rope in financial and marketing experts associated with IPL to train its faculty at a workshop on 'teaching sports management', slated to be held after the IPL tamasha ends. "We plan to offer an elective in sports management. We want the IPL team to help us design the course," said Ramesh Bhat, dean, school of business management at NMIMS. According to him, there's a lot to learn from the IPL's contract arrangements, with remuneration being based on performance.
"IPL has huge implications for the country," said Bhat. The authorities at Mudra Institute of Communications-Ahmedabad (MICA), and S P Jain Institute of Management and Research (SPJIMR) in Andheri also echo his views.
Students enrolled in the executive post-graduate programme in communication management (PGPCMX) course at MICA were recently given an assignment on the economic implications of IPL in the context of the Indian market. "Besides the business aspect, there's also a lot to be learnt in terms of organisational behaviour and leadership skills. While there are a number of team captains who are relatively new, some of the established players have not been able to find their place in the sun," said Hemant Trivedi, chairperson of the PGPCMX course. He plans to introduce a component on IPL in an elective on media and entertainment as well.
For B-schoolers, the IPL's success has underlined just how big a career in sports management could turn out to be. Raghu Chaitanya, a student at MICA, sees immense opportunity in the league. "After all, it's a mix of the two most popular things in the country—cricket and Bollywood," he said.
At the S P Jain Institute, students recently asked their marketing professor to discuss the IPL phenomenon with them. The issue was taken up at a faculty meeting where the dean, M L Shrikant, suggested that IPL could be an integral case study for a business model. Students have been asked to read 'What is Management?' by Joan Margretta and co-relate parts of the book with the IPL success story.
"IPL will help students understand the concept of a business model where there are a number of stakeholders whose interests have to be met," said Shrikant.
According to Bhat, IPL also presents a great career opportunity for management students in the years to come. After all, the GMR group, the infrastructure giant which owns the Delhi team, hired Colonel Vinod Bisht, who was a student of IIM-Ahmedabad's postgraduate programme in public policy and management, as its assistant vice president (operations).
Myanmar junta extends Suu Kyi's house arrest
YANGON: Myanmar's junta extended the house arrest of opposition leader Aung San Suu Kyi on Tuesday, a home ministry source said, a move likely to dismay Western nations who promised millions of dollars in aid after Cyclone Nargis.
The source, who asked not to be named, said a government official drove to Suu Kyi's lakeside Yangon villa to read out the six-month extension order in person. Her latest year-long detention order had been due to expire on Tuesday.
The 62-year-old Nobel laureate, whose National League for Democracy (NLD) party won a 1990 election landslide only to be denied power by the army, has now spent nearly 13 of the last 18 years under some form of arrest.
Her latest period of detention started on May 30, 2003 "for her own protection" after clashes between her supporters and pro-junta activists in the northern town of Depayin.
Earlier, the junta arrested 20 people trying to march to Suu Kyi's home.
Although few expected Suu Kyi to be released, the extension is a timely reminder of the ruling military's refusal to make any concessions on the domestic political front despite its grudging acceptance of foreign help after the May 2 cyclone.
The source, who asked not to be named, said a government official drove to Suu Kyi's lakeside Yangon villa to read out the six-month extension order in person. Her latest year-long detention order had been due to expire on Tuesday.
The 62-year-old Nobel laureate, whose National League for Democracy (NLD) party won a 1990 election landslide only to be denied power by the army, has now spent nearly 13 of the last 18 years under some form of arrest.
Her latest period of detention started on May 30, 2003 "for her own protection" after clashes between her supporters and pro-junta activists in the northern town of Depayin.
Earlier, the junta arrested 20 people trying to march to Suu Kyi's home.
Although few expected Suu Kyi to be released, the extension is a timely reminder of the ruling military's refusal to make any concessions on the domestic political front despite its grudging acceptance of foreign help after the May 2 cyclone.
Monday, May 26, 2008
Rolta to buy US IT biz intelligence co
MUMBAI: Mid-size technology services and IT engineering firm Rolta is learnt to be close to acquiring a US based IT firm in the area of business intelligence.
The firm has been searching for an asset that will add to its skills on the IT side and complement its core strengths in geographic information systems (GIS) and engineering.
In a strategy that is not dissimilar to Wipro’s ‘string-of-pearls’ acquisitions, the firm is building up skills in the areas it is not very strong and where it wants to grow, through acquisitions.
Earlier this year, it had acquired Broech Corporation, an IT company specialising in ERP applications and Oracle database technologies, for $45 million. The acquisition of a business intelligence software firm is a natural extension to this.
While database technologies help to organise information in form that can retrieved and used easily, business intelligence software help in mining this information, and provide a variety of value-add through statistical and analytical tools for intelligent decision making. Prior to this, in 2007, Rolta had acquired a firm in web-GIS systems called Orion Technology Inc.
Rolta’s primary strengths are in GIS and engineering, and GIS-related works contribute nearly 50 per cent to its revenue.
IT services contribute only about 18 per cent of its revenues, but in a recent interview Rolta chairman and managing director Kamal K Singh had said this would go up to 20-25 per cent of revenues in a few years.
“We have drawn up a five-year plan according to which our revenues should touch $ 1 billion by 2010-11. GIS revenues will stay more or less constant and probably come
The firm has been searching for an asset that will add to its skills on the IT side and complement its core strengths in geographic information systems (GIS) and engineering.
In a strategy that is not dissimilar to Wipro’s ‘string-of-pearls’ acquisitions, the firm is building up skills in the areas it is not very strong and where it wants to grow, through acquisitions.
Earlier this year, it had acquired Broech Corporation, an IT company specialising in ERP applications and Oracle database technologies, for $45 million. The acquisition of a business intelligence software firm is a natural extension to this.
While database technologies help to organise information in form that can retrieved and used easily, business intelligence software help in mining this information, and provide a variety of value-add through statistical and analytical tools for intelligent decision making. Prior to this, in 2007, Rolta had acquired a firm in web-GIS systems called Orion Technology Inc.
Rolta’s primary strengths are in GIS and engineering, and GIS-related works contribute nearly 50 per cent to its revenue.
IT services contribute only about 18 per cent of its revenues, but in a recent interview Rolta chairman and managing director Kamal K Singh had said this would go up to 20-25 per cent of revenues in a few years.
“We have drawn up a five-year plan according to which our revenues should touch $ 1 billion by 2010-11. GIS revenues will stay more or less constant and probably come
Reliance leads race for UK-based co.
NEW DELHI: Reliance Communications is likely to emerge a front runner to acquire UK-based Global Virtual Network Operator Vanco, a move that would offer the Indian company a virtual network in various parts of the world.
According to sources, the negotiations are in the last stage and the deal could be closed by week-end. Although the final price of the deal is not known, at its peak the market cap of Vanco stood at $800 million. 12 international players are in the fray including AT&T, BT, T-System, NTT and private equity firms like Platinium and Oakley.
According to sources, the negotiations are in the last stage and the deal could be closed by week-end. Although the final price of the deal is not known, at its peak the market cap of Vanco stood at $800 million. 12 international players are in the fray including AT&T, BT, T-System, NTT and private equity firms like Platinium and Oakley.
Reliance Communications, MTN open negotiations
MUMBAI: Reliance Communications Ltd said on Monday that it has entered into exclusive negotiations with MTN Group, after bigger rival Bharti Airtel said at the weekend it had ended takeover talks with the South African firm. ( Watch )
"Reliance Communications and MTN Group have agreed to enter into exclusive negotiations with respect to a potential combination of their businesses," Reliance Communications said in a statement.
The two firms, which are in negotiations, have agreed to an exclusivity period of 45 days, the statement said.
"We are ... in exclusive negotiations to achieve a partnership, which would provide investors, customers and the people of both companies a global platform for exponential growth," Chairman Anil Ambani said in the statement.
Bharti Airtel on Saturday said it had called off talks after MTN proposed a new structure which it said would have seen the Indian firm becoming a unit of MTN. The two groups had hoped to create the world's sixth-largest mobile operator with more than 130 million subscribers in about two dozen countries.
Analysts said the news was likely to weigh on shares of Reliance Communications.
"The reason investors didn't like talk of the Bharti-MTN deal was the price, and now Reliance Communications will have to pay a price that is at least equal to, or higher than what was being talked about for Bharti," said Arun Kejriwal at investment advisory KRIS.
Media and analysts had speculated that Bharti was eyeing a 51 per cent stake in MTN or engineer their merger in a deal that would value MTN at up to $50 billion.
"Reliance Communications and MTN Group have agreed to enter into exclusive negotiations with respect to a potential combination of their businesses," Reliance Communications said in a statement.
The two firms, which are in negotiations, have agreed to an exclusivity period of 45 days, the statement said.
"We are ... in exclusive negotiations to achieve a partnership, which would provide investors, customers and the people of both companies a global platform for exponential growth," Chairman Anil Ambani said in the statement.
Bharti Airtel on Saturday said it had called off talks after MTN proposed a new structure which it said would have seen the Indian firm becoming a unit of MTN. The two groups had hoped to create the world's sixth-largest mobile operator with more than 130 million subscribers in about two dozen countries.
Analysts said the news was likely to weigh on shares of Reliance Communications.
"The reason investors didn't like talk of the Bharti-MTN deal was the price, and now Reliance Communications will have to pay a price that is at least equal to, or higher than what was being talked about for Bharti," said Arun Kejriwal at investment advisory KRIS.
Media and analysts had speculated that Bharti was eyeing a 51 per cent stake in MTN or engineer their merger in a deal that would value MTN at up to $50 billion.
Musharraf summons Pakistan budget session
ISLAMABAD: President Pervez Musharraf on Monday summoned the budget session of Pakistan's parliament on June 2 during which the PPP-led coalition government is expected to table a package of constitutional reforms aimed at clipping his wings.
Following the nod from Musharraf, the National Assembly secretariat issued a formal notification for the holding of the budget session from June 2. Before the presentation of the budget on June 7, the National Assembly will debate key political, constitutional and security issues.
However, it was not immediately clear whether the government planned to table a package of constitutional reforms aimed at clipping Musharraf's sweeping powers before the budget.
Pakistan People's Party co-chairman Asif Ali Zardari on Sunday unveiled the package which will take away the President's powers to dissolve the parliament and appoint the three service chiefs.
Finance Minister Naveed Qamar told reporters in Karachi that the first budget to be presented by the new PPP-led government will be "pro-poor" and contain various measures aimed at addressing the fiscal deficit.
The budget will not have any "big surprises" and there will be no new taxes for the salaried class, he said, adding there will also be no surprises for the stock market as the budget would be framed after consulting all stakeholders in the capital market
Following the nod from Musharraf, the National Assembly secretariat issued a formal notification for the holding of the budget session from June 2. Before the presentation of the budget on June 7, the National Assembly will debate key political, constitutional and security issues.
However, it was not immediately clear whether the government planned to table a package of constitutional reforms aimed at clipping Musharraf's sweeping powers before the budget.
Pakistan People's Party co-chairman Asif Ali Zardari on Sunday unveiled the package which will take away the President's powers to dissolve the parliament and appoint the three service chiefs.
Finance Minister Naveed Qamar told reporters in Karachi that the first budget to be presented by the new PPP-led government will be "pro-poor" and contain various measures aimed at addressing the fiscal deficit.
The budget will not have any "big surprises" and there will be no new taxes for the salaried class, he said, adding there will also be no surprises for the stock market as the budget would be framed after consulting all stakeholders in the capital market
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