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KNOWLEDGE |
BP awards 5-year $ 1.5 billion deal to Infosys, Wipro, TCS, Accenture and IBM
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BP, one of the world's largest oil and gas companies, has awarded 5-year contracts to technology firms Tata Consultancy Services, Infosys, Wipro and IBM for applications outsourcing and technology support. As part of the deal, IBM will manage and run the oil giant's enterprise applications and integrated service desk responsibilities. Tata Consultancy Services today said it has been selected as a strategic IT vendor by BP. Infosys Technologies will manage and operate a large portion of business systems for BP. Wipro Technologies, will
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provide IT applications development and maintenance (ADAM) services for the latter's fuels value chain and corporate businesses globally. Switzerland-based Leysin American School (LAS) has announced an agreement with Sreenidhi International School for establishing the former's first school outside Europe .This joint venture will offer a two-year high school programme leading to tertiary education and also entitle students to pursue part of their curriculum in Europe under exchange programmes with the parent. This project will entail an investment of about Rs 500 million on the campus coming up near the Rajiv Gandhi International Airport by March 2010. The focus of the project is to offer not just specialised study programmes but also to help students evolve into fully rounded persons and prepare them for global careers, Mr K.T. Mahi, Chairman of Sree Group, said. According to the agreement, LES would be involved in operational management, marketing and communication, academic support, student exchange, quality audits and teachers training and masters degree.
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UK varsity's campus in Bhopal
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Leeds Metropolitan University (LMU), UK has tied up with Jagaran Social Welfare Society, Bhopal to open a campus in Bhopal, which would offer undergraduate degree courses approved by the AICTE. The Bhopal campus called Leeds Met India, will be offering internationally recognised undergraduate degrees in Business Management, Retail Marketing, International Hospitality Management and Event Management. The first academic year at Leeds Met India starts September 2009. The new campus in Bhopal is LMUs first off shore campus in South-East Asia. Undergraduate students from Leeds Met India would be eligible for direct admission into postgraduate courses in the Leeds campus. As part of the course, students will also have the opportunity to spend one semester in university at Leeds to complete their study.
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Government allocates Rs 21. 13 billion for IITs, NITs
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The education sector has got a shot in the arm with the Government proposing a full interest subsidy scheme on education loans for poor students pursuing technical and professional courses in approved institutes.It has also allocated Rs 21.13 billion for Indian Institure of Technology(IITs) and National Institute of Technolgoy(NITs) pan-India. To enable students from economically weaker sections to access higher education, it is proposed to introduce a scheme to provide them full interest subsidy during the period of moratorium. The scheme will cover loans taken by such students from scheduled banks to pursue any approved course in technical and professional streams at recognised institutes in the country.
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French Minister criticizes Wipro Over Closure Plan
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French Industry Minister Christian Estrosi criticised Wipro Ltd. directors for considering a closure of an office in France after the Indian company took a tax credit from the government. Estrosi slammed the software company's plan to close an office in Sophia Antipolis, in southern France, after taking a 5 million-euro ($7.35 million) research tax credit from the government. It is "unacceptable for these measures to be twisted," he said, adding that he's asked the company to prove within 15 days that "they are not bosses without scruples." Wipro's Austria-based NewLogic Technologies GmbH subsidiary operates the development centre in Sophia Antipolis, which specializes in wireless communications systems. The facility has about 60 employees.
Christophe Martinoli, Wipro's director general for France. said Wipro wouldn't return tax credits to the French government if the office is closed, as they were granted the period from 2006 through 2008, and "this credit helped us to maintain employment" at the site.
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INVESTMENT AND BUSINESS |
Essar submits formal bids for Shell' refineries
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Essar Energy has bid for three Shell owned refineries in Europe. Shell had put these refineries- a refinery complex in Stanlow in UK, and two others in Heide and Harburg, Germany- on the block to cut capacity and plans to mop up around $2.5 billion from the deal. The company had reported a 70% decline in net profit for the second quarter, and is looking to save costs by shedding idle capacity. The three refineries have a combined capacity to process 18 metric million tonnes per annum (mmtpa) of crude oil. Essar recently acquired a 50% stake in Kenyas oldest refinery, and is eyeing Shells refining capacities to establish a distribution toehold in Europe.
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India is the second largest investor in UK
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India is now the second largest foreign direct investor in the UK in terms of the number of projects, outdone only by the US, according to the UK Inward Investment Results, 2008-09. With 108 projects, the number of Indian FDI projects rose 44 per cent in the year, replacing Japan as the largest Asian supplier of FDI projects in the UK. Dr Reddys Labs, Hemair Systems, Zanec Soft, IMI Mobile, Value Labs, Sri Jugal Kishore Jewellers, Virtual Marketing, Virinchi, Emsyne, Northgate all from South India are part of record-high new FDI into the UK. Dr Reddys Labs, Hyderabad acquired a small molecules business. Chennai-based Zanec Soft set up an European Union headquarters in London. IT products/services firm Virinchi Technologies, Hyderabad has opened an office in Edinburgh. Emsyne, a Kochi-based IT firm, has also set up an office in London, while Northgate Technologies acquired Reuters high-end data centre infrastructure, through its London-based subsidiary Axill Europe.
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Government clears Michelin's Rs 110 billion FDI proposal
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The Foreign Investment Promotion Board (FIPB) had cleared the proposal under which Compagnie Financiere Michelin (CFM) plans to set up a wholly-owned subsidiary to make radial tyres, tubes and ancillary tyre-related products at the plant, according to an official release.
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The tyre major has formed a new entity - Michelin India Tamil Nadu Tyres Pvt Ltd. Which has proposed an investment of Rs 40 billion over a period of seven years and intends to make a further infusion of Rs 70 billion over a period of three years after the completion of the initial funding, depending on the progress of the project and demand of the tyre market. A Michelin spokesperson said the facility will go on stream within the next three years."The group has decided to invest in a manufacturing facility to produce truck radial and off-the-road tyres in India. Considering the stage of discussions, we hope that this plant will start functioning in three years time," the official added. Michelin considers India as a strategic market and key pillar for its growth in the future, the spokesperson said.
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Cairn Energy set to start production from Rajasthan
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Cairn India , the subsidiary of the Scottish explorer Cairn Energy , one of the most successful foreign explorers in India , has started oil production from Rajasthan - a major milestone for Cairn India. Prime Minister Manmohan Singh formally inaugurated Cairn India's Mangala oil fields in Rajasthan, site of the country's largest oil discovery in two decades. Mangala's peak production of 125,000 barrels per day (bpd) will be reached in the first half of 2010. |
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Accor to invest $130 million in India
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European hospitality major Accor will make equity investment of usd 130 million in India for setting up 50 hotels over the next 2-3 years."We will make equity investment of USD 130 million by 2012 to have 50 hotels with 10,400 room capacity by then. This (USD 130 million) does not include investment by our (joint venture) partners for setting up the investment," |
Accor Asia Pacific Chairman and Chief Operating Officer Michael Issenberg stated . A part of this expense has already been made in five properties currently operational in India. Accor has a JV with real estate developer Emaar MGF and another with aviation and hospitality services group Interglobe in India. It also has project-specific ventures with several companies in the country.
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IKEA drops investment plans in India worth $1bn
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The iconic $ 31-billion Scandinavian home products giant, IKEA, has put on hold its plans to set up 25 showrooms across the country for an investment of around $ 1 billion. In an internal communication IKEA told its stakeholders that Indian investment rules do not encourage it to go ahead with its
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investment plans - at least not in the near future. The country's norms on foreign investments in retail stipulate that the foreign company can hold no more than a 51% stake and must have an Indian partner. As IKEA's distinctive showrooms are like sprawling malls, with flat pack furniture, accessories, bathroom and kitchen items, they require high investment. And IKEA has so far been unable to find an Indian partner with not just deep pockets but readiness to invest a matching amount in a joint venture.
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Tata BP Solar and NXP Semiconductors co-operate to develop solar solutions
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NXP Semiconductors, the independent company founded by Philips, announced a development partnership with Tata BP Solar India Ltd., a joint venture of BP Solar and Tata Power, under which Tata BP intends to use various electronic solutions for solar applications developed by NXP. These solutions have been developed by NXP as per the requirements of Tata BP.
K Subramanya, CEO of TATA BP Solar, and Rene Penning de Vries, CTO of NXP Semiconductors also disclosed that the two companies have signed a Letter of Intent to roll out the electronics controls products starting 2010. Both companies are looking at a long-term partnership that will see the development of a range of products.
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Hardy Oil and Gas announces spudding of well in D9 block
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Hardy Oil and Gas plc, the international oil and gas exploration and production company and one of the few successful foreign investors in India's upstream sector , has now announced the spudding of the first exploratory well on the Company's D9 (KG-DWN-2001/1) exploration license.
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The exploratory well KG-D9-A1 spudded on 31 August 2009 with the Transocean Rig (Deepwater Expedition) at a water depth of 2,754m. The well will explore the hydrocarbon potential of the Early and Middle Miocene slope fan sands with a planned TD of 4,820 m TVDSS. This is the first exploratory well of the four well minimum work programme in the block. The Group has assembled an attractive portfolio of exploration, development and production assets, has interests in four offshore exploration blocks in India's Krishna Godavari, Saurashtra, and Cauvery Basins and one onshore exploration block in the Assam Basin. It owns a 10% stake each in the Block KG-DWN-2003/1 (D3) and (KG-DWN-2001/1)D9 and produces oil from an offshore field in India's Cauvery Basin. Net average daily production for the first half of 2009 was 543 standard barrels per day from the PY-3 field.
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Audi likely to exceed sales target, may source parts
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Luxury car maker Audi AG, a unit of German car maker Volkswagen AG, has stated that it is likely to exceed its sales target in India in 2009. The firm is also considering sourcing components from the country for its global operations. Audi, which had planned to sell 1,500 cars this calendar year, now says it would be able to sell around 1,700-1,800. In the first eight months of 2009, Audi sold 1,128 cars, 62% more than the year-ago period. Audi has invested €30 million at the Aurangabad, Maharashtra,facility, which it shares with group company Skoda Auto India Pvt. Ltd. Audi assembles the A4 and A6 models at its factory. It now plans to start assembling the Q5 at that facility. Completely built up units are charged 116% import duty. Assembling cars in the country brings that down to 60%.
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Fiat to source auto parts from India
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Italian auto company Fiat is planning to source components worth 1 billion dollars from India by 2010 for its global operations. "Our target is to make India an important sourcing hub," Fiat Group purchasing vice-president, Franco Cavallotti, was quoted as saying. Of the 1 billion dollars, components worth 700 million dollars would be for Fiat India Automobiles, its joint venture with Tata Motors, and the remainder for exports. In India, Fiat has a 50:50 joint venture with Tata Motors and produces passenger cars and power trains at its facility in Maharashtra state.
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Religare-Swiss Re JV part ways
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The proposed health insurance joint venture (JV) between the world's second-largest re-insurer Swiss Re and Delhi-based financial services group Religare Enterprises and has fallen through. Swiss Re is already present in the Indian market through a 26% stake in TTK Healthcare Services, a health insurance third-party administrator.
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Swiss Re continued to explore a health insurance JV said Eileen Lim, director, corporate communications Asia. The company was also awaiting the passage of the insurance bill, which will enable foreign insurance companies to hold 49% in Indian counterparts as against the current 26% stake.
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Amul wants no special deal for EU products
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Taking strong exception to the European Union's request for removal of all dairy products from India's negative list under the Free Trade Agreement (FTA), the Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF)-Amul has urged the commerce ministry to reject the request. The issue came up during the 'Stakeholders' Consultation on India's FTAs with the EU and European Free Trade
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Association' in Ahmedabad on Thursday. Amul representatives claimed that such a step would be detrimental to its businesses in the domestic and foreign markets unless issues of 'large-scale farm level subsidies' and 'market access' were resolved. Another concern for Amul is 'market access', which includes the tariff and non-tariff conditions agreed between the EU and India. Dave said, "EU's insistence on 'traceability', that is, tracing food through the production and distribution chain to identify and address public health risks, is not feasible in India. While EU follows the mass production method, we have 'production by masses' here."
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European union seeks settlement of disputes with India
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The European Union has said that it would prefer to resolve two commercial disputes with India without engaging in a legal battle at the World Trade Organisation (WTO). The first dispute involves seizure of Indian generic drugs in transit at some EU-based ports, including Amsterdam, which were bound for certain third world countries, on the grounds of patents infringement. The second is related to levy of duties on foreign liquor by some Indian states, which the EU claims does not conform to international trade norms. Both the issues, if not settled by diplomatic channels, could lead to a fullscale court battle at the dispute settlement board under the WTO, which looks into alleged complaints of unfair trade practices among members countries. The European Union trade commissioner Catherine Ashton said the EU would like to settle the issues outside the ambit of any international legal arbitration. She stressed if India felt that the measures and ideas proposed by the EU to prevent future drug seizures did not work, it could call for establishing a dispute settlement panel at the WTO.
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Commenting on the Union's sensitivities over state levies on imported wines and spirits in India, Ashton said, "We are not at the end of it yet but we are talking. We wanted to get the legal team here before I came here. My preferred solution again is to work this out outside the WTO. Countries always have the right to go into the dispute settlement process. It is only at the back of our mind. Actually, I think, we might be able to sort this out."
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GTZ to conduct eGovernance project
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The German Technical Cooperation and the Ministry of Communication and Electronics are conducting an E governance project that supports SMES in Indian through training in the use of information and communication technologies to address their business problems and to become more competitive. Two different types of SMEs are being addressed -user SMEs that do not belong to the IT sector ( textiles, automotive sector etc) and IT SMEs.
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New tax pact will help India trace black money: Swiss govt
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As India and Switzerland prepare to renegotiate the Double Taxation Avoidance Agreement, the Swiss government has said it was confident that the pact would be finalised by next year and enable New Delhi to seek details about black money stashed in banks there. However, the Swiss Bankers Association's (SBA) has made it clear that India was not welcome there on a name-fishing expedition.
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Total SA pulls out of $10 bn refinery cum petrochem project
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French oil major Total SA has pulled out of the planned $10 billion refinery-cum-petrochemical project at Vizag in Andhra Pradesh. Total has informed us that they will like to put their participation in the project on hold for the time being," an official in the consortium led by Hindustan Petroleum said. The only-for-exports 14 million tons a year refinery was being planned to target South East Asia and Middle East. Fuel demand in Asia was at that time projected to rise by 5 million barrels a day in 10 years but has since slowed. The five-way alliance of state-run refiner HPCL, explorer Oil India Ltd, gas utility GAIL India, Mittal and Total had done a pre-feasibility study for the project and the partners were scheduled to take an investment decision in the second half of 2009.
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EU to open negotiations with India on nuclear energy
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The European Union Council adopted a decision authorising the European Commission to open negotiations on a cooperation agreement between Euratom (European Atomic Energy Community) and India for research and training dealing with the peaceful uses of nuclear energy. The Council represents the 27 governments of the EU, while the Commission is the executive body of the Union.
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TOURISM |
Indo-Belgian trade body signs MoU with Kochi chamber
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The Indo-Belgian Luxembourg Chamber of Commerce and Industry has signed a memorandum of understanding with the Cochin Chamber of Commerce and Industry for promotion of trade, economic and scientific co-operation and other business relations between both the organisations. A seminar was held jointly under the auspices of the MoU in collaboration with the Cochin Custom House Agents Association on the topic Belgium: Gateway to Europe via Antwerp. The seminar highlighted the role of Antwerp Port as a natural gateway to Europe. Speakers pointed out that the port offers complete customer service right from Customs advice, Visa advice and assistance, and companies in Antwerp port that can handle cargo and logistics.
Speakers also expressed the view that the Vallarpadam Container Transshipment Terminal will change the face of Indian logistics. The cargo that is now trans-shipped via Colombo will come to VCTT and this offers a logical route to Europe via Antwerp port.
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Gujarat invites consultants for marketing the state as a tourist destination
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The State of Gujarat has ambitions plans to promote tourism including health torusim as a major economic activity . Accordingly the state has invited primary expression of interest from consultancy firms for working out a blueprint of a strategy to market Gujarat as the most important tourist destination.
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URBAN EXCELLENCE |
States told to speed up urban mission projects
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The Government has warned of a tough stance on release of further installments to States or cities that have lagged far behind in the implementation of projects under Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The Minister for Urban Development, Mr S. Jaipal Reddy, while addressing the annual meeting of Urban Development Secretaries and Principal Secretaries of states, also expressed concern over the slow pace of implementation of reforms by some States and asked them to consider preparing a reforms implementation action plan. Referring to his Ministrys efforts to tap the international financial institutions like the World Bank, Mr Reddy said that States should also chip in with increased budgetary support to the urban sector. He emphasised that the states must also leverage funds under the mission to avail themselves of credit from financial institutions and approach capital market.
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JNNURM bus deadline extended up to December
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The Government has extended the deadline to procure buses under the Jawaharlal Nehru National Urban Renewal Mission till December. The decision comes in the wake of State governments being able to procure about 50 per cent of the orders so far against the earlier target of 14,695 buses. The previous deadline was June 30. Till now, orders for 8,686 units have been placed. Since many orders were sanctioned last month and as late as the last week of June, it was not possible for the States to place orders in such a short time. We have now sanctioned 15,260 buses for 61 mission cities. Except for four cities in Gujarat Surat, Rajkot, Vadodara and Porbandar all major cities are participating in the programme. The major beneficiaries of the programme are likely to be Tata Motors and Ashok Leyland whose sales had taken a hit owing to the slowdown in economy.
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118 cities to get new buses with government help
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With an aim to spruce up urban transport services and at the same time provide a stimulus to the economy, the government will provide assistance to 118 cities in acquiring a new fleet for their bus transport systems. At the same time, UPA's flagship scheme Jawaharlal Nehru National Urban Renewal Mission (JNNURM) may be extended to 28 more cities having a population of 500,000 and more, at an additional cost of Rs 250 billion to the centre. The 118 cities, having a population above 200,000 , could acquire nearly 7,500 buses at a total cost estimated to be around Rs 20 billion .
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Master plan soon for Hyderabad
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The Andhra Pradesh Government is in the process of preparing a master plan to strengthen infrastructure in Hyderabad, including removal of traffic bottlenecks and road widening works, as part of its efforts to make it a world-class city. The master plan is expected to be ready in three months. The governments efforts just got a boost with the just released IFC-World Bank report on Doing Business in India 2009 showing that Hyderabad is ranked second to Ludhiana as the most preferred destination of businessmen in India. The parameters on which the report was prepared include starting a business, dealing with construction permits, registering property, trading across borders and enforcing contracts.
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World Bank approves loan for electricity transmission and distribution in Haryana
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The World Bank has approved a US$330 million loan, designed to strengthen the electricity transmission and distribution system in the state of Haryana in support of the state's broader goals of
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sustainable and inclusive growth. With installed available generation capacity of 4,680 Mega Watt (MW), Haryana has a power shortage ranging between 400-600 MW in off-peak hours and between 1,200-1,500 MW in peak hours resulting in a peak deficit of about 26-36 percent. The Haryana Power System Improvement Project aims to improve the availability, efficiency, and accountability of electricity supply in the state of Haryana through strengthening of transmission and distribution systems. The transmission component includes priority investments to increase electricity transfer capability and the institutional strengthening of HVPN (Haryana Vidyut Prasaran Nigam Limited). The distribution component constitutes the first phase of Haryana's program to improve customer service, distribution efficiency, and accountability in its urban centers. Under this component, DHBVN (Dakshin Haryana Bijli Vitran Nigam) will strengthen the distribution networks in Gurgaon, Faridabad, and Charkhi Dadri by raising voltage levels, bifurcating overloaded feeders, building a new sub-station, and setting up customer care centers. The loan from the International Bank for Reconstruction and Development (IBRD) has a 30-year maturity which includes a 5-year grace period.
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Ministry of Urban Development launches a building programme
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The Ministry of Urban Development has launched a massive capacity building programme under JNNURM in response to an urgent need to professionalise and strengthen the skills of municipal functionaries. Based on the implementation experience s and lesion learnt in the first round of a targeted Rapid Training Program, Moud has prepared an action plan for capacity building of the remaining mission period . A model of decentralised capacity building of the Mission cities through a partnership of Regional hubs and network institutions has been proposed for operationalising the action paln . The regional hubs are envisaged as key players in the above scheme of delivery of capacity building services.
JNURM has invited expression of interest from agencies for undertaking the responsibility of operation as regional capacity building hubs for the proposed eight regions comprising 6-10 cities each .
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