General Affairs
Supreme Court Rejects Plea Against UP Government's Pension Scheme For Poor
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The Supreme Court today refused to entertain a plea challenging the Akhilesh Yadav government's 'Samajwadi' pension scheme for the poor.
A bench comprising Chief Justice JS Khehar and Justices DY Chandrachud and SK Kaul said the scheme is meant for the poor and "it is a beautiful one".
The court was hearing the appeal filed by 'Hindu Front for Justice' against the Allahabad High Court order which did not find merit in the plea against the scheme.
It was alleged that it provides 25 per cent reservation for minorities which is not permissible under the Constitution.
A bench comprising Chief Justice JS Khehar and Justices DY Chandrachud and SK Kaul said the scheme is meant for the poor and "it is a beautiful one".
The court was hearing the appeal filed by 'Hindu Front for Justice' against the Allahabad High Court order which did not find merit in the plea against the scheme.
Bihar Chief Minister Nitish Kumar Demands Decommissioning Of Farakka Barrage
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Bihar Chief Minister Nitish Kumar today made a strong demand to the centre to decommission the Farakka barrage, saying it has no utility and causes floods in the state every year.
Mr Kumar also protested against the proposed reservoir at Buxar and in Uttar Pradesh enroute Allahabad-Haldia waterway.
"We had made the demand to decommission Farakka barrage in West Bengal to the previous UPA government. I told this to Prime Minister Narendra Modi also that the Farakka dam is causing heavy siltation in river Ganga which is a major reason for heavy floods every year in Bihar," Mr Kumar told reporters.
"Many experts have also pointed out the disadvantages from Farakka dam and its original engineer from West Bengal involved in construction of the barrage had opposed it and was forced to leave the job," the chief minister said in order to buttress his argument.
"I have made the demand against Farraka barrage at every platform as its a leading cause for deposit of silt in Ganga river and also hampering flow of the mighty river," he said after a "Lok Samvad" (public dialogue) programme.
He said that during the previous UPA government of Manmohan Singh, the state had taken the then Water Resources Minister Pawan Bansal to the barrage to show him how it was causing problem to Bihar and other riparian states.
"During flood last year when PM Narendra Modi had talked to me I had told him about disadvantages accruing from Farraka dam and during a meeting with him explained this in detail also," Mr Kumar said.
Flanked by state Water Resources Minister Rajiv Ranjan Singh Lallan, the Chief Minister said that the barrage has been genesis of floods every year in Bihar. Flood water stayed for a long time in Katihar last year due to siltation caused by Farakka.
"There is no benefit from Farakka dam...get a study done on it," he said.
Asked about West Bengal's stand on the dam, he said that state is also adversely affected by it but "I do not focus on what others say or is doing on this, since Bihar is affected by it grossly we are protesting against the barrage".
Mr Kumar also protested the proposed construction of reservoir at Buxar enroute Allahabad-Haldia national waterways number I.
"Cleanness of Ganga is possible only when there is unhampered flow of its water," he said. Kumar, who visited Punjab's Seechwal village yesterday to see the low cost water treatment developed by environmentalist Sant Balbir Singh Seechewal, said Bihar would take help of the Seechwal model.
Seechewal, and Magsaysay award winner waterman Rajendra Singh have been invited for the two-day national seminar in Patna from February 25 on better water conservation and environment protection, he said.
Mr Kumar also protested against the proposed reservoir at Buxar and in Uttar Pradesh enroute Allahabad-Haldia waterway.
"We had made the demand to decommission Farakka barrage in West Bengal to the previous UPA government. I told this to Prime Minister Narendra Modi also that the Farakka dam is causing heavy siltation in river Ganga which is a major reason for heavy floods every year in Bihar," Mr Kumar told reporters.
"I have made the demand against Farraka barrage at every platform as its a leading cause for deposit of silt in Ganga river and also hampering flow of the mighty river," he said after a "Lok Samvad" (public dialogue) programme.
He said that during the previous UPA government of Manmohan Singh, the state had taken the then Water Resources Minister Pawan Bansal to the barrage to show him how it was causing problem to Bihar and other riparian states.
"During flood last year when PM Narendra Modi had talked to me I had told him about disadvantages accruing from Farraka dam and during a meeting with him explained this in detail also," Mr Kumar said.
Flanked by state Water Resources Minister Rajiv Ranjan Singh Lallan, the Chief Minister said that the barrage has been genesis of floods every year in Bihar. Flood water stayed for a long time in Katihar last year due to siltation caused by Farakka.
"There is no benefit from Farakka dam...get a study done on it," he said.
Asked about West Bengal's stand on the dam, he said that state is also adversely affected by it but "I do not focus on what others say or is doing on this, since Bihar is affected by it grossly we are protesting against the barrage".
Mr Kumar also protested the proposed construction of reservoir at Buxar enroute Allahabad-Haldia national waterways number I.
"Cleanness of Ganga is possible only when there is unhampered flow of its water," he said. Kumar, who visited Punjab's Seechwal village yesterday to see the low cost water treatment developed by environmentalist Sant Balbir Singh Seechewal, said Bihar would take help of the Seechwal model.
Seechewal, and Magsaysay award winner waterman Rajendra Singh have been invited for the two-day national seminar in Patna from February 25 on better water conservation and environment protection, he said.
India Can Develop A Space Station, Says ISRO Chief
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Indian Space Research Organisation (ISRO) chairman AS Kiran Kumar today said India has the capability to develop a space station, but it needed a long-term approach and ambitious planning. His comment follows ISRO display of technological prowess last week by launching 104 satellites in a single mission.
"We have all the capabilities to set up a space station. The day the country takes the decision, we will 'okay' the project. Just draw a policy and provide us necessary funds and time," Mr Kumar said.
He was in Indore to attend the foundation day ceremony of Raja Ramanna Center for Advanced Technology (RRCAT). "We still talk about what would be the immediate benefits of a manned space mission. That is why the country hasn't made up its mind about when to invest in a space station," he said. A long-term thinking was needed for setting up a space station, he said, adding "the sooner the better".
Mr Kumar said ISRO was also mulling tying up with the industry to enhance the country's satellite launching capability.
Many more satellites were needed to keep a tab on the land and weather conditions and to enhance the communication network, he said.
This would be possible with increase in the number of satellite launches, for which the country needed to enhance the basic infrastructure and reduce the cost of equipment, he added.
The number of companies manufacturing small satellites has gone up across the world, but these companies could not launch them, therefore this area had immense commercial potential and India could tap it by enhancing the launch facilities, the ISRO chief said.
"We have all the capabilities to set up a space station. The day the country takes the decision, we will 'okay' the project. Just draw a policy and provide us necessary funds and time," Mr Kumar said.
Mr Kumar said ISRO was also mulling tying up with the industry to enhance the country's satellite launching capability.
This would be possible with increase in the number of satellite launches, for which the country needed to enhance the basic infrastructure and reduce the cost of equipment, he added.
The number of companies manufacturing small satellites has gone up across the world, but these companies could not launch them, therefore this area had immense commercial potential and India could tap it by enhancing the launch facilities, the ISRO chief said.
India To Open Resident Mission In Rwanda Soon: Vice President Hamid Ansari
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Seeking to give the Indian community in Rwanda a greater push, India will open its resident mission in the Rwandan capital Kigali, a move that will further enhance bilateral ties. "We are great friends (India and Rwanda), and Rwanda has a good population of Indian community here... And, we have had a valid complaint of not having a resident mission in Kigali. So, I must tell you that the government has already taken up the matter and in coming weeks or months, we will have a physical presence of a resident mission here," Vice President Hamid Ansari today said.
Mr Ansari, who is on a five-day visit to Rwanda and Uganda, was addressing a gathering of Indian community in Kigali at a banquet hosted by a diaspora group in his honour. Rwanda has about 3,000 people from Indian community and Mr Ansari said, they are "very purposeful, very entrenched and very well-doing."
"Our relationship should grow further by this week end. Our government is working to build ties and give it more content. And, most important segment of that is this community. So, we want to build up and give you a little more support," he said.
"A delegation of FICCI is also here, consisting of both public and private sector representatives," Mr Ansari said.
Sources said, the decision to open the mission has reached advanced stage and a skeletal set up will be ready in few months.
"Both countries have in principle agreed to open the mission here and modalities are being worked out," the source said.
Mr Ansari also said that RwandAir will soon begin its operations to India.
"Our relationship should grow further by this week end. Our government is working to build ties and give it more content. And, most important segment of that is this community. So, we want to build up and give you a little more support," he said.
"A delegation of FICCI is also here, consisting of both public and private sector representatives," Mr Ansari said.
"Both countries have in principle agreed to open the mission here and modalities are being worked out," the source said.
Mr Ansari also said that RwandAir will soon begin its operations to India.
Elections In BMC, 9 Other Civic Bodies In Maharashtra Tomorrow
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Elections to the cash-rich BMC and nine other civic bodies in Maharashtra, which have virtually turned into a battle of prestige for Chief Minister Devendra Fadnavis, heading the state's first BJP-led government, and Shiv Sena chief Uddhav Thackeray, will be held tomorrow.
Apart from the ten civic bodies, the second phase of polling for 11 Zilla Parishads (ZPs) and 118 panchayat samitis will also be conducted tomorrow.
Dubbed as a "mini Assembly election", over 1.95 crore voters across the state are entitled to exercise their franchise to choose representatives for ten city corporations, while over 1.80 crore people can cast their votes in the ZP and panchayat samiti polls.
"Collectively, 3.77 crore voters are eligible to decide the fate of 17,331 candidates in rural and urban areas, including Mumbai," State Election Commissioner JS Saharia told reporters here, adding that the election machinery is fully geared up to ensure free and fair voting.
Stakes are high for Mr Fadnavis and Mr Thackeray, who have led their respective parties from the front and were involved in a high decibel and no holds barred campaign. Bitter acrimony between BJP and Shiv Sena that are fighting the civic polls separately for the first time in over two decades, marked the electioneering.
Congress, NCP and MNS are also in the fray. Mr Saharia said for the 1,268 seats across the ten municipal corporations, 9,208 candidates are contesting, whereas for 11 ZPs, total 2,956 candidates will try their luck for 654 seats.
For the 1,288 seats across 118 panchayat samitis, total 5,167 candidates are contesting.
"As many as 43,160 polling booths have been set up. There will be 2.76 lakh election staff and equal number of police personnel on the duty," Mr Saharia said.
In Mumbai, the country's financial capital, total 2,275 candidates are contesting for the 227 seats. 92 lakh people are eligible to cast the vote in the megapolis, he said, adding that there will be 7,304 polling stations.
In municipal corporations excluding Mumbai, there are multi-member wards, where a voter will have to cast his vote for each of the category in the panel. Each panel has more than two wards.
The big poll focus is on Brihanmumbai Municipal Cooperation (BMC), retaining control of which is vital for Shiv Sena as the city has remained its prime political space ever since the party's formation in 1966. Shiv Sena has been in power in BMC for over two decades.
BJP, which had been a junior partner of Sena before it gained the upper hand through the 2014 Lok Sabha and Assembly polls, declined to accept the number of seats offered by the Sena. It has set its eyes on gaining power in BMC, one of the world's largest city bodies, boasting of an annual budget of over Rs. 37,000 crore.
Apart from the ten civic bodies, the second phase of polling for 11 Zilla Parishads (ZPs) and 118 panchayat samitis will also be conducted tomorrow.
Dubbed as a "mini Assembly election", over 1.95 crore voters across the state are entitled to exercise their franchise to choose representatives for ten city corporations, while over 1.80 crore people can cast their votes in the ZP and panchayat samiti polls.
Stakes are high for Mr Fadnavis and Mr Thackeray, who have led their respective parties from the front and were involved in a high decibel and no holds barred campaign. Bitter acrimony between BJP and Shiv Sena that are fighting the civic polls separately for the first time in over two decades, marked the electioneering.
Congress, NCP and MNS are also in the fray. Mr Saharia said for the 1,268 seats across the ten municipal corporations, 9,208 candidates are contesting, whereas for 11 ZPs, total 2,956 candidates will try their luck for 654 seats.
"As many as 43,160 polling booths have been set up. There will be 2.76 lakh election staff and equal number of police personnel on the duty," Mr Saharia said.
In Mumbai, the country's financial capital, total 2,275 candidates are contesting for the 227 seats. 92 lakh people are eligible to cast the vote in the megapolis, he said, adding that there will be 7,304 polling stations.
In municipal corporations excluding Mumbai, there are multi-member wards, where a voter will have to cast his vote for each of the category in the panel. Each panel has more than two wards.
The big poll focus is on Brihanmumbai Municipal Cooperation (BMC), retaining control of which is vital for Shiv Sena as the city has remained its prime political space ever since the party's formation in 1966. Shiv Sena has been in power in BMC for over two decades.
BJP, which had been a junior partner of Sena before it gained the upper hand through the 2014 Lok Sabha and Assembly polls, declined to accept the number of seats offered by the Sena. It has set its eyes on gaining power in BMC, one of the world's largest city bodies, boasting of an annual budget of over Rs. 37,000 crore.
Business Affairs
BSE-listed firms' market capitalisation soars to record high of Rs 117 lakh crore
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The total market value of all the companies listed on BSE soared to lifetime high of over Rs 117 lakh crore on Monday on the back of stock market rally.
The market capitalisation (m-cap) of BSE-listed companies zoomed to Rs 117,27,922 crore ($1.7 trillion). The BSE benchmark Sensex surged 192.83 points to close at nearly five-month high of 28,661.58.
Of the 30-share Sensex pack, 23 scrips ended higher led by TCS and Tata Steel.
"Market strength is expanding led by positive undercurrents from IT, pharma and metals sector. Even though valuation is at a premium, the market is not concerned but rather is accommodating to positive news from stocks and sector specific events," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
As many as 1,709 stocks advanced on BSE today, while 1,132 declined and 198 remained unchanged. Besides, 128 stocks hit their 52-week high. "Though earnings buzz is over, buy back in IT space and expectation of turn around in metal-infra space kept indices north bound," said Anand James, Chief Market Strategist, Geojit Financial Services Ltd.
The total market value of all the companies listed on BSE soared to lifetime high of over Rs 117 lakh crore on Monday on the back of stock market rally.
The market capitalisation (m-cap) of BSE-listed companies zoomed to Rs 117,27,922 crore ($1.7 trillion). The BSE benchmark Sensex surged 192.83 points to close at nearly five-month high of 28,661.58.
Of the 30-share Sensex pack, 23 scrips ended higher led by TCS and Tata Steel.
"Market strength is expanding led by positive undercurrents from IT, pharma and metals sector. Even though valuation is at a premium, the market is not concerned but rather is accommodating to positive news from stocks and sector specific events," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
As many as 1,709 stocks advanced on BSE today, while 1,132 declined and 198 remained unchanged. Besides, 128 stocks hit their 52-week high. "Though earnings buzz is over, buy back in IT space and expectation of turn around in metal-infra space kept indices north bound," said Anand James, Chief Market Strategist, Geojit Financial Services Ltd.
Havells may not be ready for LG, Samsung, Voltas challenge despite Lloyd acquisition
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A day after domestic consumer durables major Havells announced its proposed acquisition of Lloyd consumer durables division for Rs 1600 crore, share prices of both companies fell at the Bombay Stock Exchange. Havells saw an erosion of 2.66 per cent of its its stock price while Lloyd's share price declined 16.75 per cent. Prima facie it is an indication the market has given a thumbs down to the takeover. The consumer durables sector was one of the worst affected by the demonetization exercise of November and the uncertainty regarding a deal of this size at this juncture is perhaps understandable.
There are some genuine concerns. Lloyd has relatively modest operating margins in high single digit as against Havells 25 per cent plus. The joint balance sheet will see the margins decline, never a comforting thing for an investor--potential or otherwise. With the acquisition, the company is foraying into segments that has highly competitive global firms like LG, Samsung as also some domestic heavyweights like Voltas. Competing against them may take a toll and drag Havells profitability further.
Yet, it is not without its merits. Havells is highly profitable, has a strong balance sheet and a cash in hand of nearly Rs 1400 crore. So any fears on funding is somewhat unfounded. Raising a debt of Rs 500-700 to fund it should not be an issue for a firm that has such diversified interests. Its core business of cables, switchgears and lighting is on a solid ground. This is also not the first time when the company is undertaking a large acquisition. In 2007, it had acquired Netherland's SLI Sylvania that made it the fourth largest lighting business firm in the world. So it knows how to manage and handle this sort of a deal.
In the air conditioning segment, which is the main stay of Lloyd, the company brings with it a network touch point of 7000 and 275 service centres. The latter is the highest in the industry. It is well penetrated in the rural markets, a segment expected to grow robustly as a result of government's increased spending in the hinterland. In the room AC category in India, Lloyd has a market share of 11 per cent in FY 2016 which was 3 percentage points more than in the previous fiscal. For any company to start from scratch and attain a scale of this sort, it would take a lot of investment and time. Typically for any acquisition, Havells has got it on a canter.
"The proposed acquisition is in line with our objective of driving domestic expansion and owning a brand and distribution oriented asset. We would leverage and extend the trust associated with Brand Havells to consumers, dealers, vendors of Lloyd and create a similar recognition in consumer durables segment," says Anil Rai Gupta, Chairman & Managing Director, Havells India Limited. "We believe Lloyd is undergoing a journey similar to Havells of the past and we could combine together our consumer insights to accelerate its pace of growth. This acquisition gives us an opportunity to serve consumers with a much wider range of products, both in electrical and electronic goods space."
The company's diversification is not restricted to Llyod alone. Just a few days back, it ventured into the personal grooming category--a nascent but fast growing segment in India. This acquisition is a bold statement of intent. But beyond the obvious advantages, there are some latent problems with Lloyd's product portfolio. Among its peers, its line up of energy efficient air conditioners is not that great and companies like Voltas, LG, Samsung, Carrier, Hitachi and Blue Star have a claer edge in this. In the other two segments--TV and washing machines--the company has struggled to garner much traction with marketshare of less than 5 per cent.
"In various aspects, Lloyd isnt a finished product. Its presence in the AC market is significant but there may not be an upside to margins in future because its R&D is not one of the best and it is against top global firms," says an analyst. "Havells does not have much expertise in this field so they have to really bring in some experts to steer the ship. It does not look like a great deal but Havells Lloyd combination does have potential."
A day after domestic consumer durables major Havells announced its proposed acquisition of Lloyd consumer durables division for Rs 1600 crore, share prices of both companies fell at the Bombay Stock Exchange. Havells saw an erosion of 2.66 per cent of its its stock price while Lloyd's share price declined 16.75 per cent. Prima facie it is an indication the market has given a thumbs down to the takeover. The consumer durables sector was one of the worst affected by the demonetization exercise of November and the uncertainty regarding a deal of this size at this juncture is perhaps understandable.
There are some genuine concerns. Lloyd has relatively modest operating margins in high single digit as against Havells 25 per cent plus. The joint balance sheet will see the margins decline, never a comforting thing for an investor--potential or otherwise. With the acquisition, the company is foraying into segments that has highly competitive global firms like LG, Samsung as also some domestic heavyweights like Voltas. Competing against them may take a toll and drag Havells profitability further.
Yet, it is not without its merits. Havells is highly profitable, has a strong balance sheet and a cash in hand of nearly Rs 1400 crore. So any fears on funding is somewhat unfounded. Raising a debt of Rs 500-700 to fund it should not be an issue for a firm that has such diversified interests. Its core business of cables, switchgears and lighting is on a solid ground. This is also not the first time when the company is undertaking a large acquisition. In 2007, it had acquired Netherland's SLI Sylvania that made it the fourth largest lighting business firm in the world. So it knows how to manage and handle this sort of a deal.
In the air conditioning segment, which is the main stay of Lloyd, the company brings with it a network touch point of 7000 and 275 service centres. The latter is the highest in the industry. It is well penetrated in the rural markets, a segment expected to grow robustly as a result of government's increased spending in the hinterland. In the room AC category in India, Lloyd has a market share of 11 per cent in FY 2016 which was 3 percentage points more than in the previous fiscal. For any company to start from scratch and attain a scale of this sort, it would take a lot of investment and time. Typically for any acquisition, Havells has got it on a canter.
"The proposed acquisition is in line with our objective of driving domestic expansion and owning a brand and distribution oriented asset. We would leverage and extend the trust associated with Brand Havells to consumers, dealers, vendors of Lloyd and create a similar recognition in consumer durables segment," says Anil Rai Gupta, Chairman & Managing Director, Havells India Limited. "We believe Lloyd is undergoing a journey similar to Havells of the past and we could combine together our consumer insights to accelerate its pace of growth. This acquisition gives us an opportunity to serve consumers with a much wider range of products, both in electrical and electronic goods space."
The company's diversification is not restricted to Llyod alone. Just a few days back, it ventured into the personal grooming category--a nascent but fast growing segment in India. This acquisition is a bold statement of intent. But beyond the obvious advantages, there are some latent problems with Lloyd's product portfolio. Among its peers, its line up of energy efficient air conditioners is not that great and companies like Voltas, LG, Samsung, Carrier, Hitachi and Blue Star have a claer edge in this. In the other two segments--TV and washing machines--the company has struggled to garner much traction with marketshare of less than 5 per cent.
"In various aspects, Lloyd isnt a finished product. Its presence in the AC market is significant but there may not be an upside to margins in future because its R&D is not one of the best and it is against top global firms," says an analyst. "Havells does not have much expertise in this field so they have to really bring in some experts to steer the ship. It does not look like a great deal but Havells Lloyd combination does have potential."
Tata Tele-Reliance communications merger talks: Another threat to Reliance Jio after Vodafone-Idea?
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Tata Teleservices and Reliance Communications' share saw a hike of at least 10 per cent on Monday amidst news of the merger talks between the two. According to media reports, Reliance Group Chairman Anil Ambani has met the newly appointed Tata Sons Chairman N Chandrasekaran to talk about the possible merger of Reliance Communications with the Tata Group.
Last month, Britain's Vodafone Group also confirmed that it is in discussions with the Aditya Birla Group about a possible merger of its India unit with Idea Cellular, which would create India's largest telecom company.
Bharti Airtel and Idea Cellular stocks rose 1.66 percent and 2.55 percent, respectively. While Reliance Communications rose 4.37 per cent, the Tata Teleservices (Maharashtra) stock rose 6.62 percent on the BSE.
These big mergers could reshape the entire telecom sector scenario. Here's all you need to know about the massive union:
- If Tata Tele, Reliance Communications deal happens, it will create the third largest entity in the industry with around 260 million subscribers. "Nothing has been finalised yet," the Economic Times quoted sources as saying that the issue regarding NTT Docomo's exit from Tata Tele needs to be resolved. The source also added that there are a few hurdles such as Tata Tele's debt of about Rs 30,000 crore.
- Reliance Communications is already on the verge of finalising the agreement to merge Aircel Ltd into its own business. It will also soon be merged with Systema Shyam Teleservices, the owner of MTS services.
- Meanwhile, Idea Cellular and Vodafone India are reportedly looking to seal their proposed merger within a month. The merged entity of Vodafone-Idea has potential to emerge as the market leader in terms of wireless subscribers. Vodafone and Idea are in the second and third spot currently, while Bharti Airtel is number one.
- Top five service providers have over 80 per cent of the market share of the total broadband subscribers. Vodafone-Idea entity would become the leader in the category, overtaking Bharti and Reliance Jio.
- However, the biggest hurdle to the merger will come in form of regulatory approvals and practical implementation challenges, warn industry experts who, among other issues, cite breach of revenue marketshare and spectrum caps in five of the 22 telecom circles.
- Since its entry in India in 2007, Vodafone has become number two operator in the country, but its journey has been tumultuous as it is locked in a legal battle with the government over a USD 2 billion retrospective tax claim over its acquisition of Vodafone India from Hutchison in 2007.
- Both the mergers, if it they happen, will further intensify the tariff war, say industry experts. Backed by Mukesh Ambani, Reliance Jio Infocomm is offering free voice calls and data till March and has notched up 74 million users. It has already invested over USD 25 billion and is investing another Rs 30,000 crore (USD 4.8 billion).
Tata Teleservices and Reliance Communications' share saw a hike of at least 10 per cent on Monday amidst news of the merger talks between the two. According to media reports, Reliance Group Chairman Anil Ambani has met the newly appointed Tata Sons Chairman N Chandrasekaran to talk about the possible merger of Reliance Communications with the Tata Group.
Last month, Britain's Vodafone Group also confirmed that it is in discussions with the Aditya Birla Group about a possible merger of its India unit with Idea Cellular, which would create India's largest telecom company.
Bharti Airtel and Idea Cellular stocks rose 1.66 percent and 2.55 percent, respectively. While Reliance Communications rose 4.37 per cent, the Tata Teleservices (Maharashtra) stock rose 6.62 percent on the BSE.
These big mergers could reshape the entire telecom sector scenario. Here's all you need to know about the massive union:
- If Tata Tele, Reliance Communications deal happens, it will create the third largest entity in the industry with around 260 million subscribers. "Nothing has been finalised yet," the Economic Times quoted sources as saying that the issue regarding NTT Docomo's exit from Tata Tele needs to be resolved. The source also added that there are a few hurdles such as Tata Tele's debt of about Rs 30,000 crore.
- Reliance Communications is already on the verge of finalising the agreement to merge Aircel Ltd into its own business. It will also soon be merged with Systema Shyam Teleservices, the owner of MTS services.
- Meanwhile, Idea Cellular and Vodafone India are reportedly looking to seal their proposed merger within a month. The merged entity of Vodafone-Idea has potential to emerge as the market leader in terms of wireless subscribers. Vodafone and Idea are in the second and third spot currently, while Bharti Airtel is number one.
- Top five service providers have over 80 per cent of the market share of the total broadband subscribers. Vodafone-Idea entity would become the leader in the category, overtaking Bharti and Reliance Jio.
- However, the biggest hurdle to the merger will come in form of regulatory approvals and practical implementation challenges, warn industry experts who, among other issues, cite breach of revenue marketshare and spectrum caps in five of the 22 telecom circles.
- Since its entry in India in 2007, Vodafone has become number two operator in the country, but its journey has been tumultuous as it is locked in a legal battle with the government over a USD 2 billion retrospective tax claim over its acquisition of Vodafone India from Hutchison in 2007.
- Both the mergers, if it they happen, will further intensify the tariff war, say industry experts. Backed by Mukesh Ambani, Reliance Jio Infocomm is offering free voice calls and data till March and has notched up 74 million users. It has already invested over USD 25 billion and is investing another Rs 30,000 crore (USD 4.8 billion).
TCS board goes for share buyback; Rs 16,000 crore approved at Rs 2,850 per share
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The board of members of TCS on Monday approved a proposal to buyback up to 5.61 per cent equity shares at a price not exceeding Rs 2,850, aggregating Rs 16,000 crore.
In a filing to BSE the company said the board members have approved buyback of "5,61,40,351 equity shares for an aggregate amount not exceeding Rs 16,000 crore (hereinafter referred to as the "Buyback Size") being 2.85 per cent of the total paid up equity share capital, at Rs. 2,850"
"The buyback is proposed to be made from the shareholders of the company on a proportionate basis under the tender offer route using the stock exchange mechanism in accordance with the provisions contained in the SEBI (Buy Back of Securities) Regulations, 1998 and the Companies Act, 2013 and rules made thereunder," the company said.
The announcement comes at a time when some Indian IT companies are caught in controversies regarding shareholders' concerns. The Tata Consultancy Services stock rose 4 per cent on Monday after its board of directors approved a proposal to buyback up to 5,61,40,351 equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore.
The buyback size does not include any expenses incurred or to be incurred for the buyback like filing fees, advisory fees, public announcement publication expenses, printing and dispatch expenses, and other incidental and related expenses, the company said.
Earlier this month, IT services major Cognizant Technology Solutions Corp, announced that it would do share buybacks worth $3.4 billion over two years. The announcement came even as Infosys squashed speculations that it was considering a Rs 12,000 crore share buyback program.
While share buybacks in itself isn't anything new, this is not a common phenomenon in the till recently fast growing IT services sector. Most technology services companies enjoyed double-digit growth rates till recently. However, technological shifts and changes in buying patterns have meant that their growth prospects have dimmed considerably, with most of them recording barely double-digit growth. In the past, companies required large amounts of capital as they kept adding people and business. That isn't true anymore. Cognizant by implementing a buyback seems to be concurring with this assessment on growth prospects.
The board of members of TCS on Monday approved a proposal to buyback up to 5.61 per cent equity shares at a price not exceeding Rs 2,850, aggregating Rs 16,000 crore.
In a filing to BSE the company said the board members have approved buyback of "5,61,40,351 equity shares for an aggregate amount not exceeding Rs 16,000 crore (hereinafter referred to as the "Buyback Size") being 2.85 per cent of the total paid up equity share capital, at Rs. 2,850"
"The buyback is proposed to be made from the shareholders of the company on a proportionate basis under the tender offer route using the stock exchange mechanism in accordance with the provisions contained in the SEBI (Buy Back of Securities) Regulations, 1998 and the Companies Act, 2013 and rules made thereunder," the company said.
The announcement comes at a time when some Indian IT companies are caught in controversies regarding shareholders' concerns. The Tata Consultancy Services stock rose 4 per cent on Monday after its board of directors approved a proposal to buyback up to 5,61,40,351 equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore.
The buyback size does not include any expenses incurred or to be incurred for the buyback like filing fees, advisory fees, public announcement publication expenses, printing and dispatch expenses, and other incidental and related expenses, the company said.
Earlier this month, IT services major Cognizant Technology Solutions Corp, announced that it would do share buybacks worth $3.4 billion over two years. The announcement came even as Infosys squashed speculations that it was considering a Rs 12,000 crore share buyback program.
While share buybacks in itself isn't anything new, this is not a common phenomenon in the till recently fast growing IT services sector. Most technology services companies enjoyed double-digit growth rates till recently. However, technological shifts and changes in buying patterns have meant that their growth prospects have dimmed considerably, with most of them recording barely double-digit growth. In the past, companies required large amounts of capital as they kept adding people and business. That isn't true anymore. Cognizant by implementing a buyback seems to be concurring with this assessment on growth prospects.
Deloitte study finds potential in digital payment products with emerging middle class focus
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Ever since Narendra Modi government announced the demonetization of currency notes of Rs 1,000 and Rs 500 denomination, there has been a vigorous push towards the promotion of digital payments. Existing schemes were prioritized, new plans and incentives for digital transactions were announced.
While the government's plan was to attract as many citizens as possible into the digital fold, it might have failed to focus on an easy target - the middle class in small towns across India.
A report prepared by global consultancy Deloitte, released during a CII event in Delhi on February 16, could be handy for the government's future plans, as it specifically looks at "decoding the unexplored middle", through a study on digital financial services for the emerging middle class in tier 2, 3 and 4 centres in India.
And the prescriptions are not directly meant for the government, but for the digital financial service providers - the banks, payment wallets, credit card service providers etc. - to make their products better suit the needs of the customer. By sweetening these efforts through government intervention, digital inclusion can only be faster.
The key finding of the report is that mere creation of digital infrastructure and providing access - the current focus of the government - may not be sufficient to give digital financial service providers the ability to capture emerging middle class (EMC) markets. The study defines EMC as a section of households with an annual income between Rs 1,50,000 to Rs 10,00,000. The key to attract this segment lies in earning the trust of and delighting the customer through simple, clear, easy to understand, real and intuitive products, services or experiences, the report suggests.
The report identifies six value propositions for industry stakeholders to make the transition from digital enablement to digital empowerment happen.
It calls for a combination of existing and innovative technology driven channels including the smart phones. Demographics based offerings is another suggestion. Approach towards customer profitability instead of product level profitability has been proposed. Handholding and financial literacy through organizations like NGOs, trade bodies etc have also been suggested.
The report highlights the need for larger stakeholder participation in making the government's digital push, a success.
It should be noted that a committee of Chief Ministers headed by Andhra Pradesh Chief Minister Chandrababu Naidu, has already proposed various incentives for consumers and merchants in the form of cash back on digital spends, discounts on government payments via digital means, incentives to banking correspondents (BCs) and small merchants for encouraging digital transactions.
The government had also announced two schemes - Lucky Grahak Yojana for consumers and Digi-Dhan Vyapar Yojana for merchants to attract general public and facilitate significant behavioural change among public towards digital transactions.
Ever since Narendra Modi government announced the demonetization of currency notes of Rs 1,000 and Rs 500 denomination, there has been a vigorous push towards the promotion of digital payments. Existing schemes were prioritized, new plans and incentives for digital transactions were announced.
While the government's plan was to attract as many citizens as possible into the digital fold, it might have failed to focus on an easy target - the middle class in small towns across India.
A report prepared by global consultancy Deloitte, released during a CII event in Delhi on February 16, could be handy for the government's future plans, as it specifically looks at "decoding the unexplored middle", through a study on digital financial services for the emerging middle class in tier 2, 3 and 4 centres in India.
And the prescriptions are not directly meant for the government, but for the digital financial service providers - the banks, payment wallets, credit card service providers etc. - to make their products better suit the needs of the customer. By sweetening these efforts through government intervention, digital inclusion can only be faster.
The key finding of the report is that mere creation of digital infrastructure and providing access - the current focus of the government - may not be sufficient to give digital financial service providers the ability to capture emerging middle class (EMC) markets. The study defines EMC as a section of households with an annual income between Rs 1,50,000 to Rs 10,00,000. The key to attract this segment lies in earning the trust of and delighting the customer through simple, clear, easy to understand, real and intuitive products, services or experiences, the report suggests.
The report identifies six value propositions for industry stakeholders to make the transition from digital enablement to digital empowerment happen.
It calls for a combination of existing and innovative technology driven channels including the smart phones. Demographics based offerings is another suggestion. Approach towards customer profitability instead of product level profitability has been proposed. Handholding and financial literacy through organizations like NGOs, trade bodies etc have also been suggested.
The report highlights the need for larger stakeholder participation in making the government's digital push, a success.
It should be noted that a committee of Chief Ministers headed by Andhra Pradesh Chief Minister Chandrababu Naidu, has already proposed various incentives for consumers and merchants in the form of cash back on digital spends, discounts on government payments via digital means, incentives to banking correspondents (BCs) and small merchants for encouraging digital transactions.
The government had also announced two schemes - Lucky Grahak Yojana for consumers and Digi-Dhan Vyapar Yojana for merchants to attract general public and facilitate significant behavioural change among public towards digital transactions.
General Awareness
Report Finds India as the World’s Largest Arms Importer in the Last Four Years
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According to a report released by Stockholm International Peace Research Institute (SIPRI) on February 20, 2017, India emerged as the world’s largest importer of major arms during 2012–16.
- As per the report, India accounted for 13 percent of the global total sales.The total volume of international transfers of major weapons has grown continuously since 2004 and increased by 8.4 per cent between 2007–11 and 2012–16
Key Highlight of the Report
According to the data, in Asia, India increased its arms imports by 43 percent between 2007–11 and 2012–16 which is far greater than the imports by its rivals China and Pakistan.
- Between 2007 and 2011, India accounted for 9.7% of global imports which is still more than any other country.
- Major arm suppliers to India include Russia, USA, European states, Israel and South Korea.
- The report said that India faces serious geopolitical threats from its nuclear-armed rival Pakistan and China’s rising military strength.
- Though the ‘Make in India’ program has been launched by the Indian government to encourage local arms production, India’s domestic defence sector is not capable of meeting growing requirements.
- vi.They spend a lot of time and money trying to develop weapons in India and things just go hopelessly wrong. This leaves India dependent on foreign imports
- The report stated that the increase in the import of arms was driven by high demand especially in Middle East and Asia. In South East Asia, the imports grew up by 6.2 percent from 2007–11 to 2012–16.
- In Middle East, during 2012–16, Saudi Arabia was the largest importer of arms and increased by 212 percent compared with the previous five years. It accounted for 8.2 percent of global arms imports.
- Qatar arms import went up by 245 percent during the period.
- As per the report, Middle East doubled its imports. Between 2007–11 and 2012–16 arms imports by states in the region rose by 86 percent and accounted for 29 percent of global imports in 2012–16.
- Besides, Vietnam was another in South East Asia that made a big jump with its arm imports increasing 202 percent in 2012-16. It was the 10th largest importer in South Asia. Vietnam was the 29th largest importer in 2007-2011.
- The repost said that while China is increasingly adopting indigenous products as a substitute of arms imports, India is still dependent on weapons technology.
- China’s share of global defence imports fell to 4.5 percent of the global total between 2012 and 2016 from 5.5 percent between 2007 and 2011.
- Among the African region, Algeria was the largest importer across Africa while in the sub-Saharan Africa Nigeria, Sudan and Ethiopia were all the leading importers of arms.
Largest Exporters According to the Report
Among the leading exporters of arms, the United States of America was the top arms exporter in the world which increased its exports by 21 percent compared with 2007–11.
- Out of the total exports made by USA almost half of its arms exports was made to the Middle East.
- Russia was placed as the second largest exporter that increased its exports by 23 percent selling its arms to four countries of India, Vietnam, China and Algeria.
- China also increased its sale of arm exports which supplies to France and Germany.
- The report also found that the only country which cut down on its arms exports is Germany which over a five-year period decreased its exports by 36 percent between 2007–11 and 2012–16.
- The five biggest exporters, the United States, Russia, China, France and Germany, together accounted for 74 per cent of the total volume of arms exports.
About Stockholm International Peace Research Institute (SIPRI)
SIPRI is an international institute in Sweden, that deals with research work into conflict, armaments, arms control and disarmament.
- SIPRI provides data, analysis and recommendations based on open sources to policymakers, researchers, media and the interested public.
- The SIPRI Arms Transfers Database contains information on all international transfers of major weapons including sales, gifts and production licences to states, international organizations and armed non-state groups from 1950 to the most recent full calendar year, 2016.
- SIPRI data reflects the volume of deliveries of arms and not the financial value of the deals.
- As the volume of deliveries can fluctuate significantly year-on-year, SIPRI presents data for 5-year periods, giving a more stable measure of trends.
According to a report released by Stockholm International Peace Research Institute (SIPRI) on February 20, 2017, India emerged as the world’s largest importer of major arms during 2012–16.
- As per the report, India accounted for 13 percent of the global total sales.The total volume of international transfers of major weapons has grown continuously since 2004 and increased by 8.4 per cent between 2007–11 and 2012–16
Key Highlight of the Report
According to the data, in Asia, India increased its arms imports by 43 percent between 2007–11 and 2012–16 which is far greater than the imports by its rivals China and Pakistan.
- Between 2007 and 2011, India accounted for 9.7% of global imports which is still more than any other country.
- Major arm suppliers to India include Russia, USA, European states, Israel and South Korea.
- The report said that India faces serious geopolitical threats from its nuclear-armed rival Pakistan and China’s rising military strength.
- Though the ‘Make in India’ program has been launched by the Indian government to encourage local arms production, India’s domestic defence sector is not capable of meeting growing requirements.
- vi.They spend a lot of time and money trying to develop weapons in India and things just go hopelessly wrong. This leaves India dependent on foreign imports
- The report stated that the increase in the import of arms was driven by high demand especially in Middle East and Asia. In South East Asia, the imports grew up by 6.2 percent from 2007–11 to 2012–16.
- In Middle East, during 2012–16, Saudi Arabia was the largest importer of arms and increased by 212 percent compared with the previous five years. It accounted for 8.2 percent of global arms imports.
- Qatar arms import went up by 245 percent during the period.
- As per the report, Middle East doubled its imports. Between 2007–11 and 2012–16 arms imports by states in the region rose by 86 percent and accounted for 29 percent of global imports in 2012–16.
- Besides, Vietnam was another in South East Asia that made a big jump with its arm imports increasing 202 percent in 2012-16. It was the 10th largest importer in South Asia. Vietnam was the 29th largest importer in 2007-2011.
- The repost said that while China is increasingly adopting indigenous products as a substitute of arms imports, India is still dependent on weapons technology.
- China’s share of global defence imports fell to 4.5 percent of the global total between 2012 and 2016 from 5.5 percent between 2007 and 2011.
- Among the African region, Algeria was the largest importer across Africa while in the sub-Saharan Africa Nigeria, Sudan and Ethiopia were all the leading importers of arms.
Largest Exporters According to the Report
Among the leading exporters of arms, the United States of America was the top arms exporter in the world which increased its exports by 21 percent compared with 2007–11.
- Out of the total exports made by USA almost half of its arms exports was made to the Middle East.
- Russia was placed as the second largest exporter that increased its exports by 23 percent selling its arms to four countries of India, Vietnam, China and Algeria.
- China also increased its sale of arm exports which supplies to France and Germany.
- The report also found that the only country which cut down on its arms exports is Germany which over a five-year period decreased its exports by 36 percent between 2007–11 and 2012–16.
- The five biggest exporters, the United States, Russia, China, France and Germany, together accounted for 74 per cent of the total volume of arms exports.
About Stockholm International Peace Research Institute (SIPRI)
SIPRI is an international institute in Sweden, that deals with research work into conflict, armaments, arms control and disarmament.
- SIPRI provides data, analysis and recommendations based on open sources to policymakers, researchers, media and the interested public.
- The SIPRI Arms Transfers Database contains information on all international transfers of major weapons including sales, gifts and production licences to states, international organizations and armed non-state groups from 1950 to the most recent full calendar year, 2016.
- SIPRI data reflects the volume of deliveries of arms and not the financial value of the deals.
- As the volume of deliveries can fluctuate significantly year-on-year, SIPRI presents data for 5-year periods, giving a more stable measure of trends.
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