General Affairs
Manohar Parrikar Says Formulation Of Policy For Strategic Partnership Soon
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NEW DELHI: Defence Minister Manohar Parrikar today said the ministry will formulate the keenly watched policy for strategic partnership by this month-end after which it will be sent to the Finance Ministry.
He said the final call will be taken by the Cabinet Committee on Security and if all goes well, it should be passed by August-September.
Under strategic partnerships, the government will enter into agreements with private firms in critical sectors of defence manufacturing.
The ministry has formed five-sub groups to have a focused discussion on the subject. They have already given their presentations before the Minister. The five sub-groups are focused on armoured fighting vehicles (AFV), aircraft and helicopters, submarines, ammunition and macro process management of issues.
Even though the private industry was against the policy in the beginning, they have now conveyed their support for the model but made suggestions to make it more open, instead of restricting a sector to a single entity, as was suggested by a high-level committee.
He said the final call will be taken by the Cabinet Committee on Security and if all goes well, it should be passed by August-September.
Under strategic partnerships, the government will enter into agreements with private firms in critical sectors of defence manufacturing.
The ministry has formed five-sub groups to have a focused discussion on the subject. They have already given their presentations before the Minister. The five sub-groups are focused on armoured fighting vehicles (AFV), aircraft and helicopters, submarines, ammunition and macro process management of issues.
Even though the private industry was against the policy in the beginning, they have now conveyed their support for the model but made suggestions to make it more open, instead of restricting a sector to a single entity, as was suggested by a high-level committee.
Arvind Kejriwal Accuses Akali Dal, BJP Of Playing 'Communal Politics'
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GURDASPUR: Close on the heels of AAP legislator Naresh Yadav being booked in connection with an alleged sacrilege incident, Delhi Chief Minister Arvind Kejriwal today accused the ruling Akali Dal-BJP alliance in Punjab of indulging in communal politics.
"Since AAP has emerged as a serious challenge to these communal forces, they (SAD-BJP) are not keeping any stone unturned to defame the party," he alleged while addressing an event organised by Punjab Christian United Front in Gurdaspur.
Violence had erupted after the alleged sacrilege in Malerkotla on June 24 in which a mob even attacked the house of local Akali Dal legislator Farzana Nissara Khatoon, wife of a former Punjab DGP. Several policemen, including a DSP, were injured as about 300-400 protesters hurled stones and torched a car.
Mr Kejriwal said, "If AAP comes to power in Punjab next year, it will not tolerate sacrilege incidents and bring all those who conspired in such inhuman acts to the fore."
"It is shameful that to defame AAP, they (SAD) did not even spare the holy book," he alleged and said, "AAP is not here for the play politics but for the change in the political system."
In Punjab, all sections of the society are fed up with the "mis-governance, rather non-governance" of the SAD-BJP alliance. AAP would be voted to power in the state with a thumping majority, the party's national convener claimed.
"Drugs are being supplied to every nook and corner of Punjab under political patronage. Instead of cracking down on drug suppliers, police is registering fake cases against drug addicts," Mr Kejriwal alleged, adding all such fake cases would be withdrawn after AAP forms government.
He also said, "Once voted to power, we will put Revenue Minister Bikram Singh Majithia behind the bars."
"It will be a fight between AAP and the grand alliance of SAD-BJP-Congress as the latter will contest the polls under a secret understanding," Mr Kejriwal claimed.
Hitting out at Prime Minister Narendra Modi, he alleged "After becoming the Prime Minister, most of the time, Narendra Modi is in flying mode. Whenever he lands in India, he is always in planning mode to disturb the Delhi Government by creating hurdles in the ongoing developmental works."
"Unlike BJP, which rolled out a series of 'dreams' including 'achche din' as poll promises but later on termed those as 'chunavi jumle', AAP believes in fulfilling all its all promises, which is evident in Delhi," Mr Kejriwal claimed.
Prominent among others who addressed the gathering include state convener of AAP Sucha Singh Chhotepur, lawmaker Bhagwant Mann and senior leader Gurpreet Ghuggi.
"Since AAP has emerged as a serious challenge to these communal forces, they (SAD-BJP) are not keeping any stone unturned to defame the party," he alleged while addressing an event organised by Punjab Christian United Front in Gurdaspur.
Violence had erupted after the alleged sacrilege in Malerkotla on June 24 in which a mob even attacked the house of local Akali Dal legislator Farzana Nissara Khatoon, wife of a former Punjab DGP. Several policemen, including a DSP, were injured as about 300-400 protesters hurled stones and torched a car.
Mr Kejriwal said, "If AAP comes to power in Punjab next year, it will not tolerate sacrilege incidents and bring all those who conspired in such inhuman acts to the fore."
"It is shameful that to defame AAP, they (SAD) did not even spare the holy book," he alleged and said, "AAP is not here for the play politics but for the change in the political system."
In Punjab, all sections of the society are fed up with the "mis-governance, rather non-governance" of the SAD-BJP alliance. AAP would be voted to power in the state with a thumping majority, the party's national convener claimed.
"Drugs are being supplied to every nook and corner of Punjab under political patronage. Instead of cracking down on drug suppliers, police is registering fake cases against drug addicts," Mr Kejriwal alleged, adding all such fake cases would be withdrawn after AAP forms government.
He also said, "Once voted to power, we will put Revenue Minister Bikram Singh Majithia behind the bars."
"It will be a fight between AAP and the grand alliance of SAD-BJP-Congress as the latter will contest the polls under a secret understanding," Mr Kejriwal claimed.
Hitting out at Prime Minister Narendra Modi, he alleged "After becoming the Prime Minister, most of the time, Narendra Modi is in flying mode. Whenever he lands in India, he is always in planning mode to disturb the Delhi Government by creating hurdles in the ongoing developmental works."
"Unlike BJP, which rolled out a series of 'dreams' including 'achche din' as poll promises but later on termed those as 'chunavi jumle', AAP believes in fulfilling all its all promises, which is evident in Delhi," Mr Kejriwal claimed.
Prominent among others who addressed the gathering include state convener of AAP Sucha Singh Chhotepur, lawmaker Bhagwant Mann and senior leader Gurpreet Ghuggi.
3 Per Cent Reservation To Differently-Abled Persons Must In Government Job: Supreme Court
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NEW DELHI: The Supreme Court has directed the government to give three per cent reservation to persons with disability (PWD) in all services, irrespective of the mode of filling such posts.
A bench of Justices J Chelameswar and Abhay Manohar Sapre observed that it was "disheartening" to note that low numbers of PWD, which was much below three per cent, were in government jobs, years after Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995, came into force.
"We further direct the Government to extend three per cent reservation to PWD in all identified posts in Group A and Group B irrespective of the mode of filling up of such posts," the bench said, while holding as "illegal" the two memoranda issued by the Department of Personnel and Training.
These memoranda, issued in February 1997 and December 2005, had denied the statutory benefit of three per cent quota in identified posts which could be reserved for PWD, falling under groups A and B.
The court's order came on a petition filed by some PWD employees of Prasar Bharati against these memoranda, saying it deprived them of the statutory benefit of reservation under the 1995 Act regarding Group A and Group B posts.
The 2005 memorandum provided for reservation in favour of PWD to the extent of three per cent in all identified posts in Prasar Bharati when these are filled up by direct recruitment.
However, it provided for three per cent reservation in the posts falling in groups C and D irrespective of the mode of recruitment due to which the statutory benefit of reservation in favour of PWD was denied for groups A and B posts as these posts were to be filled up through direct recruitment only.
While holding these memoranda "inconsistent" to the 1995 Act, the bench noted in its verdict, "It is disheartening to note that (admittedly) low numbers of PWD (much below three per cent) are in government employment long years after the 1995 Act. Barriers to their entry must, therefore, be scrutinised by rigorous standards within the legal framework of the 1995 Act."
"Once a post is identified, it means that a PWD is fully capable of discharging the functions associated with the identified post. Once found to be so capable, reservation under Section 33 (of the Act) to an extent of not less than three per cent must follow," the bench said.
"Once the post is identified, it must be reserved for PWD irrespective of the mode of recruitment adopted by the state for filling up of the said post," it said.
A bench of Justices J Chelameswar and Abhay Manohar Sapre observed that it was "disheartening" to note that low numbers of PWD, which was much below three per cent, were in government jobs, years after Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995, came into force.
"We further direct the Government to extend three per cent reservation to PWD in all identified posts in Group A and Group B irrespective of the mode of filling up of such posts," the bench said, while holding as "illegal" the two memoranda issued by the Department of Personnel and Training.
The court's order came on a petition filed by some PWD employees of Prasar Bharati against these memoranda, saying it deprived them of the statutory benefit of reservation under the 1995 Act regarding Group A and Group B posts.
The 2005 memorandum provided for reservation in favour of PWD to the extent of three per cent in all identified posts in Prasar Bharati when these are filled up by direct recruitment.
However, it provided for three per cent reservation in the posts falling in groups C and D irrespective of the mode of recruitment due to which the statutory benefit of reservation in favour of PWD was denied for groups A and B posts as these posts were to be filled up through direct recruitment only.
While holding these memoranda "inconsistent" to the 1995 Act, the bench noted in its verdict, "It is disheartening to note that (admittedly) low numbers of PWD (much below three per cent) are in government employment long years after the 1995 Act. Barriers to their entry must, therefore, be scrutinised by rigorous standards within the legal framework of the 1995 Act."
"Once a post is identified, it means that a PWD is fully capable of discharging the functions associated with the identified post. Once found to be so capable, reservation under Section 33 (of the Act) to an extent of not less than three per cent must follow," the bench said.
"Once the post is identified, it must be reserved for PWD irrespective of the mode of recruitment adopted by the state for filling up of the said post," it said.
Coal Block Allocation Scam: Court Allows Naveen Jindal To Travel Abroad
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NEW DELHI: Congress leader and industrialist Naveen Jindal, accused in a coal block allocation scam case along with 14 others, was today allowed by a special court to travel abroad from July 7 to 20 for business purposes.
Special CBI Judge Bharat Parashar allowed the plea filed by Mr Jindal seeking the court's permission to go to countries like Greece, Austria and Italy and imposed certain conditions on him.
Mr Jindal was earlier granted bail by the court which had imposed several conditions on him, including that he will not leave the country without the court's nod.
Apart from Mr Jindal, CBI had chargesheeted ex-minister of state for coal Dasari Narayan Rao, ex-Jharkhand chief minister Madhu Koda, former coal secretary HC Gupta and 11 others in the case of alleged irregularities in allocation of Amarkonda Murgadangal coal block in Jharkhand to Jindal Steel and Power Ltd (JSPL) and Gagan Sponge Iron Private Ltd (GSIPL).
Besides them, the other individual accused are - Rajeev Jain, Director of Jindal Realty Pvt Ltd, Girish Kumar Suneja and Radha Krishna Saraf, GSIPL Directors, Suresh Singhal, Director of New Delhi Exim Pvt Ltd, K Ramakrishna Prasad, MD of Sowbhagya Media Ltd and chartered accountant Gyan Swaroop Garg. All these accused are currently out on bail.
Besides the ten accused, five firms -- JSPL, Jindal Realty Pvt Ltd, Gagan Infraenergy Ltd (formerly known as GSIPL), Sowbhagya Media Ltd and New Delhi Exim Pvt Ltd - are also accused in the case.
Special CBI Judge Bharat Parashar allowed the plea filed by Mr Jindal seeking the court's permission to go to countries like Greece, Austria and Italy and imposed certain conditions on him.
Mr Jindal was earlier granted bail by the court which had imposed several conditions on him, including that he will not leave the country without the court's nod.
Apart from Mr Jindal, CBI had chargesheeted ex-minister of state for coal Dasari Narayan Rao, ex-Jharkhand chief minister Madhu Koda, former coal secretary HC Gupta and 11 others in the case of alleged irregularities in allocation of Amarkonda Murgadangal coal block in Jharkhand to Jindal Steel and Power Ltd (JSPL) and Gagan Sponge Iron Private Ltd (GSIPL).
Besides them, the other individual accused are - Rajeev Jain, Director of Jindal Realty Pvt Ltd, Girish Kumar Suneja and Radha Krishna Saraf, GSIPL Directors, Suresh Singhal, Director of New Delhi Exim Pvt Ltd, K Ramakrishna Prasad, MD of Sowbhagya Media Ltd and chartered accountant Gyan Swaroop Garg. All these accused are currently out on bail.
Besides the ten accused, five firms -- JSPL, Jindal Realty Pvt Ltd, Gagan Infraenergy Ltd (formerly known as GSIPL), Sowbhagya Media Ltd and New Delhi Exim Pvt Ltd - are also accused in the case.
US Ambassador Expresses Regret Over Handcuffing Of Emirati Man
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DUBAI, UNITED ARAB EMIRATES: The American ambassador to the United Arab Emirates has expressed regret over the handcuffing of an Emirati man wearing traditional garments in Ohio over terrorism fears.
Ambassador Barbara Leaf said in a Facebook post on today that Emirati national Ahmed al-Menhali endured an "unfortunate incident" when police detained and searched him at gunpoint last week after a hotel clerk raised suspicions he could have links to the Islamic State group.
He was wearing a traditional white kandura, or ankle-length robe, and headscarf at the hotel.
Officials in the Cleveland suburb of Avon have apologized to the man. The Emirates responded to the incident by summoning U.S. Deputy Chief of Mission Ethan Goldrich and warning its citizens to avoid wearing traditional garments when traveling abroad.
Ambassador Barbara Leaf said in a Facebook post on today that Emirati national Ahmed al-Menhali endured an "unfortunate incident" when police detained and searched him at gunpoint last week after a hotel clerk raised suspicions he could have links to the Islamic State group.
Officials in the Cleveland suburb of Avon have apologized to the man. The Emirates responded to the incident by summoning U.S. Deputy Chief of Mission Ethan Goldrich and warning its citizens to avoid wearing traditional garments when traveling abroad.
Business Affairs
Telcos to spend Rs 1 lakh cr for spectrum over next 2 yrs: Crisil report
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Telecom companies are expected to shell out Rs 1 lakh crore for snapping up spectrum during the forthcoming auctions and a little over one-third of this capex will be spent this fiscal year itself, says a report.
Half of this amount will be externally funded over the next two years and almost 75 per cent of this will be spent by private telcos, said the report by rating agency Crisil.
"In the current fiscal, the outgo towards spectrum acquisition will be Rs 37,000 crore of the Rs 1 trillion.
Though this is lower than the budgetary estimates of around Rs 56,000 crore, this still is a significant outgo for an industry reeling under Rs 4 trillion of debt as of March 2016," the report said.
The government plans to put on the block over 2,300 MHz of spectrum across seven frequency bands at the auction expected to be held over the next few months. This also makes the highest quantity of airwaves that's being sold at one go.
"Unlike previous auctions, operators this time do not face business continuity issues. Yet we expect reasonably healthy participation because incumbents will ramp up their 3G and 4G spectrum holdings ahead of Reliance Jio's entry.
"Telcos are already facing increased network congestion in circles with high data consumption like key metros, which account for 60 per cent of the data traffic," Ajay Srinivasan, a Director at the rating outfit, said.
"Therefore, augmenting network capacity and spectrum holdings will be critical for maintaining their competitive position. Overall, telcos are expected to fork out Rs 1 trillion."
Crisil expects bidding in the 700 MHz to be extremely selective with players preferring the less pricey 1800 MHz.
About half of the spectrum put on the block in the 1800 MHz and the 2100 MHz, and most of it in the 800 MHz and the 900 MHz, would be lapped up, while bidding interest in the 2300 MHz and 2500 MHz is expected to be limited (lower the frequency band, the higher is its efficiency to carry long- distance signals).
Top three telcos, which cumulatively account for three -fourths of the revenues, are expected to share 55-60 per cent of the total spending at the auctions.
"Large telcos are cumulatively likely to spend Rs 1.2 trillion over the course of the current and next fiscals on spectrum payouts as well as network augmentation," said Srinivasan.
With profitability and operational cash flows of the sector projected to come under pressure with Jio entry, reliance on external funding is set to increase, he added.
Telecom companies are expected to shell out Rs 1 lakh crore for snapping up spectrum during the forthcoming auctions and a little over one-third of this capex will be spent this fiscal year itself, says a report.
Half of this amount will be externally funded over the next two years and almost 75 per cent of this will be spent by private telcos, said the report by rating agency Crisil.
"In the current fiscal, the outgo towards spectrum acquisition will be Rs 37,000 crore of the Rs 1 trillion.
Though this is lower than the budgetary estimates of around Rs 56,000 crore, this still is a significant outgo for an industry reeling under Rs 4 trillion of debt as of March 2016," the report said.
The government plans to put on the block over 2,300 MHz of spectrum across seven frequency bands at the auction expected to be held over the next few months. This also makes the highest quantity of airwaves that's being sold at one go.
"Unlike previous auctions, operators this time do not face business continuity issues. Yet we expect reasonably healthy participation because incumbents will ramp up their 3G and 4G spectrum holdings ahead of Reliance Jio's entry.
"Telcos are already facing increased network congestion in circles with high data consumption like key metros, which account for 60 per cent of the data traffic," Ajay Srinivasan, a Director at the rating outfit, said.
"Therefore, augmenting network capacity and spectrum holdings will be critical for maintaining their competitive position. Overall, telcos are expected to fork out Rs 1 trillion."
Crisil expects bidding in the 700 MHz to be extremely selective with players preferring the less pricey 1800 MHz.
About half of the spectrum put on the block in the 1800 MHz and the 2100 MHz, and most of it in the 800 MHz and the 900 MHz, would be lapped up, while bidding interest in the 2300 MHz and 2500 MHz is expected to be limited (lower the frequency band, the higher is its efficiency to carry long- distance signals).
Top three telcos, which cumulatively account for three -fourths of the revenues, are expected to share 55-60 per cent of the total spending at the auctions.
"Large telcos are cumulatively likely to spend Rs 1.2 trillion over the course of the current and next fiscals on spectrum payouts as well as network augmentation," said Srinivasan.
With profitability and operational cash flows of the sector projected to come under pressure with Jio entry, reliance on external funding is set to increase, he added.
HSBC 'overweight' on India, 2016-end Sensex target at 28,500
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Global brokerage firm HSBC on Monday upgraded India to the 'overweight' status, citing improving domestic indicators and more realistic earnings expectations.
It has also raised its Sensex target for 2016-end to 28,500 from 26,000.
"We move India to overweight (from neutral)," HSBC said in a research note, adding that India is a relatively defensive market (least driven by global factors) in an increasingly uncertain investment world.
According to HSBC, domestically, India is one of the most convincing growth stories.
GDP growth is accelerating, budget deficit has narrowed, high frequency data points are picking up, and the recent earnings season points to improvement in demand.
"We believe India equities deserve to trade at higher multiples than the historical average due to several reasons improving macro position, relatively defensive characteristics in times of increasing risks to global growth, and decline in cost of equity," HSBC said.
The report noted that after a slow start in sowing, most crop categories with the exception of cotton and oilseeds are showing strong progress and this should help contain food inflation to some extent as well as increase rural purchasing power and income.
Moreover, implementation of the Seventh Pay Commission's recommendations is seen to act as another catalyst for consumption in India.
"We prefer consumption to investment in India as there are specific catalysts for consumption as we mentioned, while private capex, an important component of investment, remains muted," HSBC said.
Key risks to this view are poor monsoons, a sharp rise in inflation, slower-than-expected economic growth impacting the corporate business environment and earnings, and acute risk aversion in global markets.
Global brokerage firm HSBC on Monday upgraded India to the 'overweight' status, citing improving domestic indicators and more realistic earnings expectations.
It has also raised its Sensex target for 2016-end to 28,500 from 26,000.
"We move India to overweight (from neutral)," HSBC said in a research note, adding that India is a relatively defensive market (least driven by global factors) in an increasingly uncertain investment world.
According to HSBC, domestically, India is one of the most convincing growth stories.
GDP growth is accelerating, budget deficit has narrowed, high frequency data points are picking up, and the recent earnings season points to improvement in demand.
"We believe India equities deserve to trade at higher multiples than the historical average due to several reasons improving macro position, relatively defensive characteristics in times of increasing risks to global growth, and decline in cost of equity," HSBC said.
The report noted that after a slow start in sowing, most crop categories with the exception of cotton and oilseeds are showing strong progress and this should help contain food inflation to some extent as well as increase rural purchasing power and income.
Moreover, implementation of the Seventh Pay Commission's recommendations is seen to act as another catalyst for consumption in India.
"We prefer consumption to investment in India as there are specific catalysts for consumption as we mentioned, while private capex, an important component of investment, remains muted," HSBC said.
Key risks to this view are poor monsoons, a sharp rise in inflation, slower-than-expected economic growth impacting the corporate business environment and earnings, and acute risk aversion in global markets.
Cooling comfort at workplace can up productivity by 12%: IIMA
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Worker productivity can be enhanced by up to 12 per cent by increasing the level of cooling comfort at workplace, according to a study by Indian Institute of Management-Ahmedabad (IIM-A).
The study, 'Heat stress and its effect on psychological aspects of workers in India,' was conducted by IIM-A faculty members Dheeraj Sharma and Rajesh Chandwani.
"Heat stress can not only cause physical health hazards but also have negative impact on the mental and psychological health of workers. Hence, the state and the centre, policy makers, employee welfare bodies and organisations should address the issue immediately," the faculty members said here today.
"With the Centre emphasising on the growth of manufacturing sector through the Make In India initiative, we need to pay more attention to the effect of increasing temperatures on worker productivity and health," Sharma said.
"Our study attempts to quantify the improvement in productivity that can be gained through establishment of cooling solutions at indoor workplaces. According to our study, worker productivity can be enhanced by up to 12 per cent by increasing the level of thermal comfort at workplace."
"The optimal temperature for worker performance may vary.
However, in tropical countries, most of the studies have found that optimal range of ambient temperature (air temperature of an environment) for enhanced worker productivity is about 25-30 degrees Celsius," Chandwani said.
The faculty members said regulatory bodies should encourage environment friendly and feasible measures such as deploying high capacity industrial coolers and solar panel driven cooling system to enhance worker efficiency.
Textile industry, bakeries and steel among other sectors need to monitor the ambient temperature at workplace regularly.
Such organisations should provide for cooling solutions, wherever feasible, to reduce the workplace ambient temperature, they said.
They suggested the organisations regularly monitor the employees' morale and psychological state at workplace and provide facilities such as drinking water and hydrating solutions, and ensure appropriate clothing for preventing heat -related health hazards like dehydration.
Worker productivity can be enhanced by up to 12 per cent by increasing the level of cooling comfort at workplace, according to a study by Indian Institute of Management-Ahmedabad (IIM-A).
The study, 'Heat stress and its effect on psychological aspects of workers in India,' was conducted by IIM-A faculty members Dheeraj Sharma and Rajesh Chandwani.
"Heat stress can not only cause physical health hazards but also have negative impact on the mental and psychological health of workers. Hence, the state and the centre, policy makers, employee welfare bodies and organisations should address the issue immediately," the faculty members said here today.
"With the Centre emphasising on the growth of manufacturing sector through the Make In India initiative, we need to pay more attention to the effect of increasing temperatures on worker productivity and health," Sharma said.
"Our study attempts to quantify the improvement in productivity that can be gained through establishment of cooling solutions at indoor workplaces. According to our study, worker productivity can be enhanced by up to 12 per cent by increasing the level of thermal comfort at workplace."
"The optimal temperature for worker performance may vary.
However, in tropical countries, most of the studies have found that optimal range of ambient temperature (air temperature of an environment) for enhanced worker productivity is about 25-30 degrees Celsius," Chandwani said.
The faculty members said regulatory bodies should encourage environment friendly and feasible measures such as deploying high capacity industrial coolers and solar panel driven cooling system to enhance worker efficiency.
Textile industry, bakeries and steel among other sectors need to monitor the ambient temperature at workplace regularly.
Such organisations should provide for cooling solutions, wherever feasible, to reduce the workplace ambient temperature, they said.
They suggested the organisations regularly monitor the employees' morale and psychological state at workplace and provide facilities such as drinking water and hydrating solutions, and ensure appropriate clothing for preventing heat -related health hazards like dehydration.
Brent trades below $50 on economic concerns, demand worries
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Crude prices dipped in early trading on Tuesday, with Brent falling back below $50 per barrel as economic concerns took centre stage with many analysts saying oil demand will stall later this year.
International benchmark Brent crude oil futures were trading at $49.95 per barrel at 0030 GMT, down 15 cents from their last settlement. US West Texas Intermediate (WTI) crude futures were down 39 cents at $48.60 a barrel.
Analysts said that concerns over the global economy were weighing on the outlook for oil demand and on prices.
"The deterioration in the global economic outlook, financial market uncertainty and ripple effects on key areas of oil demand growth are likely to exacerbate already-lacklustre industrial demand growth trends," British bank Barclays said in a note to clients.
JPMorgan also said in its latest oil market outlook that "macro-economic risks may weigh on oil prices", although the US bank added that oil prices would still likely rise between this year and the next as stocks are drawn down, and political risk and maturing oil fields tighten the market.
JPMorgan said it expected Brent and WTI to average $47.30 and $46.66 per barrel respectively this year and $56.75 a barrel for both in 2017. That's an increase of $2 each for 2016 and $1.75 a barrel for both benchmarks for 2017, compared with the bank's previous forecast.
In the latest sign of a glut in refined products, which traders say will reduce orders for crude oil, which is the most important refining feedstock, several tankers carrying gasoline-making components have dropped anchor off New York harbour, unable to discharge as onshore tanks are full.
Crude prices dipped in early trading on Tuesday, with Brent falling back below $50 per barrel as economic concerns took centre stage with many analysts saying oil demand will stall later this year.
International benchmark Brent crude oil futures were trading at $49.95 per barrel at 0030 GMT, down 15 cents from their last settlement. US West Texas Intermediate (WTI) crude futures were down 39 cents at $48.60 a barrel.
Analysts said that concerns over the global economy were weighing on the outlook for oil demand and on prices.
"The deterioration in the global economic outlook, financial market uncertainty and ripple effects on key areas of oil demand growth are likely to exacerbate already-lacklustre industrial demand growth trends," British bank Barclays said in a note to clients.
JPMorgan also said in its latest oil market outlook that "macro-economic risks may weigh on oil prices", although the US bank added that oil prices would still likely rise between this year and the next as stocks are drawn down, and political risk and maturing oil fields tighten the market.
JPMorgan said it expected Brent and WTI to average $47.30 and $46.66 per barrel respectively this year and $56.75 a barrel for both in 2017. That's an increase of $2 each for 2016 and $1.75 a barrel for both benchmarks for 2017, compared with the bank's previous forecast.
In the latest sign of a glut in refined products, which traders say will reduce orders for crude oil, which is the most important refining feedstock, several tankers carrying gasoline-making components have dropped anchor off New York harbour, unable to discharge as onshore tanks are full.
L&T Infotech aims to double revenues in 3-4 years
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L&T Infotech said it is targeting to double its revenues in the next three to four years through acquisitions and organic growth.
"We will be doubling the revenues in the next 3-4 years," L&T Group's Executive Chairman AM Naik said at a roadshow ahead of its IPO.
The company had posted a topline of $887 million in 2015-16. Over the last five years, its revenues have grown 17-18 per cent, but dropped to 13-14 per cent during last fiscal due to slowdown in the performance of the oil and gas sector because of depressed commodity prices.
Naik said the over Rs 1,200 crore to be raised through the offering, which will be the third public issue from the diversified Group, will be deployed for acquisitions and working capital requirements.
For acquisitions, the company will focus on the North American and European markets which contribute a bulk of its revenues at present, L&T Infotech Chief Executive and Managing Director Sanjay Jalona told reporters.
He, however, declined to give any futuristic guidance and answer queries on the size of the acquisitions or the technologies it will focus on.
Jalona said there will be a "negligible impact" from the UK's exit from the European Union as the country contributes only about 2 per cent of the company's revenue.
Europe contributes 17 per cent of its overall revenues, of which 11 per cent comes from the Nordic countries (Denmark, Finland, Iceland, Norway and Sweden, including their associated territories) alone, he said.
Jalona said the Brexit vote, which will entail separation of businesses between the UK and continental Europe for its clients, may well turn out to be a business opportunity for the outsourcing sector.
"...as companies separate from the UK and the EU it would be an opportunity...but only time will tell us," he said.
Meanwhile, Uday Kotak of Kotak Mahindra Group, among the lead managers for the IPO, said despite multiple "obituaries" written about the IT segment over the years, the sector continues to be attractive as it has shown resilience in the face of challenges.
Kotak attributed the jump in the primary market issuances, which touched a nine-year high in the quarter to June, to the quality of the issues and the pricing. "Quality IPOs, which are well priced, are best way of expanding the primary markets."
Naik said the company has chosen to offer shares at a lower valuation to increase the retail investors' interest, for whom it is also giving a discount of Rs 10 per share.
He added L&T wants to grow the investor interest in the scrip, which will lead to a better price discovery post-listing as well.
Reminiscing from the days of formation of the IT firm, Naik said the engineering, procurement and construction major spun it off into a separate unit to arrest attrition.
He said between 1985 and 2000, the company lost 10,000 skilled manpower to IT "bodyshops" across the world and it is at this juncture that it decided to branch out and win business as a standalone entity.
Serving external clients, beyond the L&T Group, would entail lucrative career opportunities for the staff who get to work from client locations across the world, he said.
This branching out, and further splitting of the business, has helped the Group have two companies with a combined revenue of over $1.5 billion, he said.
L&T Infotech's issue will hit market on July 11 with its initial public offer that can fetch up to Rs 1,243 crore.
The price band for the offer, entailing sale of 1.75 crore shares, has been fixed at Rs 705-710 per scrip.
L&T Infotech said it is targeting to double its revenues in the next three to four years through acquisitions and organic growth.
"We will be doubling the revenues in the next 3-4 years," L&T Group's Executive Chairman AM Naik said at a roadshow ahead of its IPO.
The company had posted a topline of $887 million in 2015-16. Over the last five years, its revenues have grown 17-18 per cent, but dropped to 13-14 per cent during last fiscal due to slowdown in the performance of the oil and gas sector because of depressed commodity prices.
Naik said the over Rs 1,200 crore to be raised through the offering, which will be the third public issue from the diversified Group, will be deployed for acquisitions and working capital requirements.
For acquisitions, the company will focus on the North American and European markets which contribute a bulk of its revenues at present, L&T Infotech Chief Executive and Managing Director Sanjay Jalona told reporters.
He, however, declined to give any futuristic guidance and answer queries on the size of the acquisitions or the technologies it will focus on.
Jalona said there will be a "negligible impact" from the UK's exit from the European Union as the country contributes only about 2 per cent of the company's revenue.
Europe contributes 17 per cent of its overall revenues, of which 11 per cent comes from the Nordic countries (Denmark, Finland, Iceland, Norway and Sweden, including their associated territories) alone, he said.
Jalona said the Brexit vote, which will entail separation of businesses between the UK and continental Europe for its clients, may well turn out to be a business opportunity for the outsourcing sector.
"...as companies separate from the UK and the EU it would be an opportunity...but only time will tell us," he said.
Meanwhile, Uday Kotak of Kotak Mahindra Group, among the lead managers for the IPO, said despite multiple "obituaries" written about the IT segment over the years, the sector continues to be attractive as it has shown resilience in the face of challenges.
Kotak attributed the jump in the primary market issuances, which touched a nine-year high in the quarter to June, to the quality of the issues and the pricing. "Quality IPOs, which are well priced, are best way of expanding the primary markets."
Naik said the company has chosen to offer shares at a lower valuation to increase the retail investors' interest, for whom it is also giving a discount of Rs 10 per share.
He added L&T wants to grow the investor interest in the scrip, which will lead to a better price discovery post-listing as well.
Reminiscing from the days of formation of the IT firm, Naik said the engineering, procurement and construction major spun it off into a separate unit to arrest attrition.
He said between 1985 and 2000, the company lost 10,000 skilled manpower to IT "bodyshops" across the world and it is at this juncture that it decided to branch out and win business as a standalone entity.
Serving external clients, beyond the L&T Group, would entail lucrative career opportunities for the staff who get to work from client locations across the world, he said.
This branching out, and further splitting of the business, has helped the Group have two companies with a combined revenue of over $1.5 billion, he said.
L&T Infotech's issue will hit market on July 11 with its initial public offer that can fetch up to Rs 1,243 crore.
The price band for the offer, entailing sale of 1.75 crore shares, has been fixed at Rs 705-710 per scrip.
General Awareness
Prime Minister signed $1 billion deal with United States for Four Poseidon- 8I Longrange Surveillance and antisubmarine warfare aircraft
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The India-US strategic bilateral cooperation is being tightened after signing $1 billion deal by Prime Minister to acquire four Poseidon as part of US arms deal to India
Highlights:
Acquisition of Poseidon:
Cabinet Committee on Security headed by Prime Minister has signed acquirement of four Poseidon -8I longrage surveillance and antisubmarine warfare aircraft
Induction of Aircraft:
The Four Poseidon aircraft built with radars and weapons will be joined with the first eight such aircraft introduced by the Navy in 2013-15 under a $2.1 billion deal
Features of Poseidon 8I:
- The Navy have been utilizing eight P-8Is, built with dangerous Harpoon Block- II missiles, MK-54, Lightweight torpedoes, rockets and Depth charges
- It will keep an intelligent hawk eye view over the entire Indian Ocean Region to oversee Chinese Submarine forays over the last two years
- Operating range of 1,200 nautical miles
- Provide the reach and flexibility to undertake vigorous maritime surveillance and intelligence gathering missions
- Navy using the technology can detect threats and extended the support to neutralize them
The Cabinet Committee on Security had already accorded the deal to acquire 145M-777 ultra-light howitzers from the US, in the same the CCS has approved the current deal.
The Army required these 155mm/39 Calibre howitzers which are operated to threatened high altitude areas along the 4,057 km Line of Actual control with China
US under secretary of Defence Frank Kendall is leading a top Pentagon-industry delegation to New Delhi for further discussion
- The India-US strategic bilateral cooperation is being tightened after signing $1 billion deal by Prime Minister to acquire four Poseidon as part of US arms deal to India
Highlights:Acquisition of Poseidon:
Cabinet Committee on Security headed by Prime Minister has signed acquirement of four Poseidon -8I longrage surveillance and antisubmarine warfare aircraftInduction of Aircraft:The Four Poseidon aircraft built with radars and weapons will be joined with the first eight such aircraft introduced by the Navy in 2013-15 under a $2.1 billion dealFeatures of Poseidon 8I:- The Navy have been utilizing eight P-8Is, built with dangerous Harpoon Block- II missiles, MK-54, Lightweight torpedoes, rockets and Depth charges
- It will keep an intelligent hawk eye view over the entire Indian Ocean Region to oversee Chinese Submarine forays over the last two years
- Operating range of 1,200 nautical miles
- Provide the reach and flexibility to undertake vigorous maritime surveillance and intelligence gathering missions
- Navy using the technology can detect threats and extended the support to neutralize them
The Cabinet Committee on Security had already accorded the deal to acquire 145M-777 ultra-light howitzers from the US, in the same the CCS has approved the current deal.The Army required these 155mm/39 Calibre howitzers which are operated to threatened high altitude areas along the 4,057 km Line of Actual control with ChinaUS under secretary of Defence Frank Kendall is leading a top Pentagon-industry delegation to New Delhi for further discussion
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