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9/9/2015 NEWS IN MEDIADear all,INDIA INC
Global turmoil is opportunity at home: PM
Prime Minister Narendra Modi today urged India Inc to seize the opportunities thrown up by global turmoil and invest more within the country.On Tuesday, at a specially convened review meeting to discuss the global economic scenario and its impact on India, Modi asked the private sector to substantially increase its investments in the domestic economy and create more jobs within the country.The board-room type meeting, rather than a government affair, was attended by India's top industrialists, including Reliance Industries Chairman Mukesh Ambani, Tata Group Chairman Cyrus Mistry, ITC Chairman YC Deveshwar, and Aditya Birla Group Chairman KM Birla. The heads of the three apex industry chambers — FICCI, CII and Assocham — were also present.
http://www.thehindubusinessline.com/todays-paper/global-turmoil-is-opportunity-at-home-pm/article7630473.ece
INFORMATION TECHNOLOGY
Cabinet nod for spectrum trading likely today
The Cabinet may clear the path for one of the most awaited policies for the telecom industry on Wednesday – spectrum trading.The policy is expected to be in line with recommendations made by the Telecom Commission, which had approved the spectrum trading and sharing guidelines suggested by the Telecom Regulatory Authority of India (TRAI) on June 12. While the spectrum sharing guidelines were approved by the Cabinet on August 12, the guidelines on trading were kept on hold.
http://www.thehindubusinessline.com/todays-paper/cabinet-nod-for-spectrum-trading-likely-today/article7630475.ece
Yahoo!, Hyderabad-based start-up team up for search technology
A search technology developed by a Hyderabad-based start-up has attracted the attention of global digital media and search engine major Yahoo!The 'patent-pending' technology developed by KeyPoint Technologies allows the users to search for things as they type in social media and other places. The search and discovery platform, titled Xploree, would pop up suggestions for places (like eateries), allowing the users to access that service directly.
http://www.thehindubusinessline.com/todays-paper/tp-agri-biz-and-commodity/yahoo-hyderabadbased-startup-team-up-for-search-technology/article7630479.ece
WORLD ECONOMIC REFORM
WEF report – when it comes to 'equal' growth, India's far from shining
As a nation, we love titles and rankings, especially if we — or at least those we can claim as our own — figure somewhere near the top. This is why the Indian spin-off of the Guinness Book of World Records was more popular than the original.A report by the World Economic Forum (WEF), which essentially looks at growth and development from the perspective of equity — of how growth has impacted a society as a whole and not just its creamy layer — is unlikely to figure high in the popularity rankings, simply because India figures very poorly in it.
http://www.thehindubusinessline.com/todays-paper/wef-report-when-it-comes-to-equal-growth-indias-far-from-shining/article7630474.ece
MARKET
Markets make a smart recovery
Banking and metal stocks helped pull the stock markets up from their 15-month depths on Tuesday, amid reassurances from the Finance Minister that the economy is fundamentally strong. The benchmark indices gained over 1.7 per cent, their biggest single-day gain since September 1.The Sensex moved steadily up through Tuesday's trading session, closing at 25,317.87, up 424 points. On the NSE, the Nifty gained 129 points to close at 7,688.25. After the extreme swings of last week, volatility was subdued, with the volatility index closing at 24.5675, down 6.76 per cent. The uptrend trickled down into the broader markets as well, with midcap and smallcap indices gaining over a percentage point each. Foreign investors, however, continued to be net sellers, divesting about Rs.659.67 crore worth of shares. Retail investors were net sellers too, offloading Rs. 65.66 crore worth of equity on the BSE. Domestic institutions bought net equities worth Rs. 447.41 crore through the day.
http://www.thehindubusinessline.com/todays-paper/markets-make-a-smart-recovery/article7630469.ece
BANKING
Rajan did not comment on interest rate: Jaitley
With a fortnight to go for the next monetary policy review, everyone wanted to know which way the RBI Governor Raghuram Rajan will move.The first question posed by mediapersons to Finance Minister, Arun Jaitley, was whether Rajan, who was present at the high-profile meeting, had anything to say on interest rates. Or whether Jaitley has given Rajan any feelers?
http://www.thehindubusinessline.com/todays-paper/tp-news/rajan-did-not-comment-on-interest-rate-jaitley/article7630500.ece
Banks must outsource due-diligence activities with care: EY report
Outsourcing of due-diligence activities by banks to various entities, such as surveyors, financial analysts and other verification agencies, is an Achilles heel for the banking sector, according to an EY report."Lenders rely significantly on the inputs issued by such third parties. Reports are made as a routine with little scrutiny. In some situations the report may be drafted under the influence of unscrupulous borrowers.
http://www.thehindubusinessline.com/todays-paper/tp-money-banking/banks-must-outsource-duediligence-activities-with-care-ey-report/article7630458.ece
Bad loans mainly due to diversion of funds
Diversion of funds to unrelated business or fraud, lapses in initial borrower due diligence, and inefficiencies in the post-disbursement monitoring process are the main reasons for the bad loans predicament of banks, according to an EY report.Around 87 per cent of the more than 110 respondents from the banking sector believe that the rise in NPAs/stressed assets is due to diversion of funds to unrelated businesses or frauds.
http://www.thehindubusinessline.com/todays-paper/tp-money-banking/bad-loans-mainly-due-to-diversion-of-funds/article7630457.ece
FDI
Cabinet may decide on automatic FDI route for white-label ATMs
The Union Cabinet is likely to take up the long-pending proposal for allowing foreign and domestic companies with manufacturing units in India to sell their products online through e-commerce platforms.It may also consider allowing 100 per cent foreign direct investment (FDI) in white-labelled Automated Teller Machines (ATM) — those set up by private non-banking entities — under the automatic route.
http://www.thehindubusinessline.com/todays-paper/tp-news/cabinet-may-decide-on-automatic-fdi-route-for-whitelabel-atms/article7630499.ece
BUSINESS
Fair play: World Bank to vet report on ease of doing business in States
India will get a report that ranks States according to the 'ease of doing business' vetted by the World Bank in order to avoid accusations of bias from States that fare poorly."We have finalised the report from our end, but it will now be sent for international vetting as we want to avoid controversies," confirmed an official from the Department of Industrial Policy & Promotion (DIPP).The DIPP has evaluated States on various parameters that assess the ease of doing business and ranked them accordingly.
http://www.thehindubusinessline.com/todays-paper/tp-news/fair-play-world-bank-to-vet-report-on-ease-of-doing-business-in-states/article7630504.ece
VISA
Indonesia may offer Indians visa on arrival
The Indonesian government is planning to include India under its Free Visa on Arrival programme. "Currently we are offering Free Visa on Arrival to 43 countries. In the second phase, we plan to include India and that will happen by January," Arief Yahya, Indonesia's Tourism Minister, told BusinessLine ."India is an important market for us. So far, since January, we have received 240,000 Indian visitors and we hope to achieve the targeted 270,000 by December," he added.
http://www.thehindubusinessline.com/todays-paper/tp-news/indonesia-may-offer-indians-visa-on-arrival/article7630505.ece
POWER SECTOR
Power sector data, an area of darkness
Since 2001, the accumulated loss of electricity distribution companies has been comparable to 2 per cent of India's GDP. Clearly, repeated bailouts, investment programmes and reform efforts have not affected losses. In March 2015, accumulated losses were estimated at Rs. 2.5 lakh crore.The 2011 report under the chairmanship of VK Shunglu is perhaps the only effort in recent times to assess the distribution companies' (discoms') financial predicament. Among other contributions, the report presented a comprehensive review of accounts which, significantly, highlighted the poor quality of financial data.
http://www.thehindubusinessline.com/todays-paper/tp-opinion/power-sector-data-an-area-of-darkness/article7630526.ece
E-COMMERCE
E-commerce — where consumer is king
Over the last couple of years, e-commerce has changed consumer experience almost irretrievably. E-commerce companies are redefining how customers buy and manufacturers sell; today even a housewife running a small establishment from home can approach a global audience of buyers. E-commerce companies compete with conventional consumer goods companies in attracting customers to their sites.With time, and the growing success of the model, the reservations about e-commerce have faded. Consumers have seen the power of competitive pricing, the convenience of buying at the click of a button, and the ease with which goods can be returned or exchanged. It is these aspects of e-commerce that have made it the next best thing to happen to the consumer retail industry, after the opening up of foreign direct investment (FDI).
http://www.thehindubusinessline.com/todays-paper/tp-opinion/ecommerce-where-consumer-is-king/article7630525.ece
AGRICULTURE
Falling farmgate prices of milk seen squeezing dairy sector investments
Falling prices of milk at the farmgate is becoming a cause for concern. For, this can not only affect farmer incomes but also stress the industry's ability to invest and survive, said National Dairy Development Board (NDDB) Chairman T Nanda Kumar.Though there won't be any shortage of milk, the Board is worried that the situation will hit the growth rate this year.Poor rainfall in several parts of the country could add to the woes of dairy farmers.
http://www.thehindubusinessline.com/todays-paper/tp-info-tech/falling-farmgate-prices-of-milk-seen-squeezing-dairy-sector-investments/article7630448.ece
Refineries cut rates of imported oils on weak cues
Soyabean oil and palmolein declined by Rs. 7 and Rs. 1 for 10 kg each in Mumbai as refineries slashed their rates and other edible oils remained steady.Vikram Global Commodities quoted Malaysian super palm at Rs. 470.
http://www.thehindubusinessline.com/todays-paper/tp-info-tech/refineries-cut-rates-of-imported-oils-on-weak-cues/article7630449.ece
Food safety regulator to facilitate milk testing
Food Safety and Standards Authority of India (FSSAI), has decided to facilitate setting-up of infrastructural facilities for milk and milk products testing. This comes just as festival season is round the corner, when the sale and consumption of milk and milk products is the highest.The food safety authority believes that these facilities will enable bulk as well as individual consumers to have easy access to testing equipment to ensure the quality of milk and milk products bought is up to required standards, it said on its website.
http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/food-safety-regulator-to-facilitate-milk-testing/article7630542.ece
TAX
Black money: Taxman to compulsorily file court case if illegal
Taking a tough stance against blackmoney, the CBDT has directed the Income Tax department to mandatorily launch court cases against people found to be holding stash funds and tainted assets abroad and consider "compounding" of such offences only at a later stage. The apex policy-making body of the tax department has recently issued a directive in this regard to all I-T offices in the country after the latter raised 'doubts' over the applicability of the provisions of the "Compounding of Offences" under the Income Tax Act, 1961 in these cases.
http://www.deccanchronicle.com/150908/business-latest/article/black-money-taxman-compulsorily-file-court-case-if-illegal
STATE
Tata Power to invest Rs. 450 cr in Karnataka
Tata Power Company Ltd, Strategic Engineering Division (Tata Power SED), will invest Rs. 450 crore over the next one year, at its new 50-acre Vemagal facility in Kolar district of Karnataka.It will create an integrated digital design-to-manufacturing facility for systems engineering and integration.Karnataka Chief Minister Siddaramaiah laid the foundation stone for the facility on Tuesday.
http://www.thehindubusinessline.com/todays-paper/tp-news/tata-power-to-invest-rs-450-cr-in-karnataka/article7630492.ece
After two postponements, TN all set to host global investors meet
Tamil Nadu officials are heaving a sigh of relief now that the Global Investors Meet 2015 is finally happening, after being postponed twice.Originally, the event, with a budget of Rs. 100 crore, was to be held in October 2014. But it was postponed after Chief Minister J Jayalalithaa was forced to step down following her conviction on corruption charges in September last.
http://www.thehindubusinessline.com/todays-paper/tp-news/after-two-postponements-tn-all-set-to-host-global-investors-meet/article7630501.ece
How to 'Make in India' remains a big challenge
Expressing their desire to co-produce and co-develop in India, Israeli defence majors such as Rafael, Elbit and IAI on Tuesday said there were many challenges that needed to be addressed in the defence sector."How to 'Make in India' remains a big challenge," said Uzi Melamed, Corporate Offset and Industrial Cooperation Director, Rafael. He was speaking at an international seminar on Strategic Defence Co-operation between India and Israel, organised by industry chamber FICCI.
http://www.thehindubusinessline.com/todays-paper/tp-news/how-to-make-in-india-remains-a-big-challenge/article7630502.ece
PM asks industry to take risk, invest; India Inc wants rate cut
Prime Minister Narendra Modi on Tuesday asked India Inc to increase risk-taking appetite and step up investments even as industry leaders pressed for interest rate cut and more policy action to improve ease of doing business."Prime Minister has said that industry must take risk and increase investments...we must go out and invest. Industry has a role to play," CII president Sumit Mazumder told reporters after the meeting of Prime Minister with CEOs, bankers, economists and bureaucrats on the global economic slowdown.
http://www.deccanchronicle.com/150908/business-latest/article/pm-asks-industry-take-risk-invest-india-inc-wants-rate-cut
India needs to create jobs for rapid pace of GDP growth: Dell CEO
India needs to create jobs in order to maintain its rapid pace of GDP growth and set up world-class universities to attract top domestic and international firms that look for educated and talented workforce, Dell Inc. Chairman and CEO Michael S Dell has said.In his address to 200 CEOs here, Dell also spoke of a very competitive startups ecosystem in India, which has left many countries behind in this regard. "India is purely in the green category and gets an A or A+ of creating entrepreneurs." "India needs to create jobs if it wants to maintain its rapid pace of GDP growth. It has enormous natural resources in terms of young population, particularly in the IT sector which has a bright future in India," he said."Healthcare, energy, natural resources, any of these areas of constraints, I think IT and technology are big part of the solutions," said Dell at an event, 'Up close with Michael Dell,' organised by ASSOCHAM last night.
http://www.deccanchronicle.com/150908/business-latest/article/india-needs-create-jobs-rapid-pace-gdp-growth-dell-ceo
T.N. all set for a big leap forward
Committed to a new growth model, Tamil Nadu plans to take a big leap forward in industrial growth with Wednesday's Global Investors Meet (GIM) by firming up investments worth over Rs. 1 lakh crore.Across 12 sectors, companies and even countries have committed the investment, with the State government promising faster clearances of proposals and improving infrastructure, especially in the power sector. Of the investments promised, 40 per cent will come from the manufacturing sector and another 40 per cent from the energy sector, sources say. About 10 per cent investment will be by IT and ITES companies.
http://www.thehindu.com/todays-paper/tn-all-set-for-a-big-leap-forward/article7630718.ece
JSW Energy buys JP Ventures power unit for Rs. 9,275 crore
The Sajjan Jindal-controlled JSW Energy on Tuesday said that it has fully acquired Himachal Baspa Power Company Ltd, a subsidiary of Jaiprakash Power Ventures Ltd, for Rs. 9,275 crore. JSW also signed an agreement to buy a 500 MW thermal power plant in Bina, Madhya Pradesh.The proceeds will help Jaiprakash Power Ventures and its parent Jaypee Group pare their huge debt levels.
http://www.thehindubusinessline.com/todays-paper/tp-news/jsw-energy-buys-jp-ventures-power-unit-for-rs-9275-crore/article7630491.ece
AB to shift some depts to Amaravati
Andhra Bank officials have informed Chief Minister N. Chandrababu Naidu that they will shift a few departments initially to the new capital, Amaravati and later explore the opportunity of setting up headquarters there.During a meeting with the officials, Mr. Naidu asked Andhra Bank General Manager, Ajay Gupta to explore the possibility of setting up its headquarters at Amaravati .
http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/ab-to-shift-some-depts-to-amaravati/article7632005.ece
Philips unveils web-enabled lighting in India
Targeting the upper middle class and middle class in India, lighting solution provider Philips Lighting has launched its latest solution in India.The solution termed Philips Hue is an intelligent web-based LED lighting solution with Internet of Things concept, which allows users to control home lighting anytime, anywhere.
http://www.thehindu.com/todays-paper/tp-business/philips-unveils-webenabled-lighting-in-india/article7630693.ece
Rural-urban education divide narrows
The gap between rural and urban India in education has narrowed notably in the decade leading up to 2011, according to the recently-released Census figures. The Census shows that in 2011, 26.46 per cent of the total urban population was attending classes compared to 25.76 per cent in non-urban areas. The resulting gap of 0.7 percentage points was much lower than 4.59 - the corresponding figure in 2001.
http://www.business-standard.com/article/economy-policy/rural-urban-education-divide-narrows-115090900004_1.html
Marble importers-hawala operators nexus alerts FinMin
The Department of Revenue (DoR) fears that a minimum import price (MIP) for marble higher than its international price is leading to black money coming into India through hawala route or stashing away of the money in tax havens.To curb it, DoR has asked the director general of foreign trade (DGFT) to consider doing away with the steep MIP on marble which stands at $325 a tonne. The government has imposed MIP, which is nearly double the international market price of about $150 a tonne, to protect the domestic industry which employes a large number of poor people. The revenue department has based its recommendations on the special investigative team (SIT) report flagging the issue.
http://www.business-standard.com/article/economy-policy/marble-importers-hawala-operators-nexus-alerts-finmin-115090801440_1.html
EMPLOYEES MATTER
EPFO mulls further reduction in admin fee charged from firms
In a move that could substantially reduce the financial burden of around 800,000 employers, the Employees' Provident Fund Organisation (EPFO) is considering a further cut in the administrative fee it charges companies. The industry has called for a reduction in the administrative fees as this is a part of the employers' contribution towards the EPFO.The EPFO is planning to reduce the administrative fee from 0.85 per cent to 0.65 per cent of the monthly basic salary. The Union labour ministry had already reduced the administrative charges from 1.10 per cent to 0.85 per cent with effect from January this year.
http://www.business-standard.com/article/economy-policy/epfo-mulls-further-reduction-in-admin-fee-charged-from-firms-115090900005_1.html
EPFO might allow pledging of PF contributions to buy low-cost houses
EPFO's trustees will consider a proposal to allow its subscribers to pledge their future PF contribution to buy low-cost houses, in a meeting scheduled on September 16.The EPFO's apex decision-making body, the Central Board of Trustees will consider the report of the expert committee on housing facility for the subscribers, according to the agenda of the meeting. The committee has unanimously recommended a scheme to facilitate subscribers to buy houses where they will get an advance from their PF accumulation and will be allowed to pledge their future PF contribution as EMI payment.
http://www.business-standard.com/article/economy-policy/epfo-might-allow-pledging-of-pf-contributions-to-buy-low-cost-houses-115090800632_1.html
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