A new ‘telecom scam’, starring Dayanidhi
If you've missed the Tehelka story that got former telecom minister Dayanidhi Maran into trouble, here it is.
What it says, in brief: As minister, he stalled Aircel's efforts to get telecom licences for years. And then after arm-twisting the owners to sell the company to the Malaysian firm Maxis, which his friend owns, he fast-tracked the spectrum approvals. As kickbacks, he got Maxis to invest in two companies run by his family. He benefited to the tune of Rs 700 crore, the magazine alleges. That's a lot, and he must be punished, especially when Kanimozhi, his parliamentarian-cousin accused of pocketing about Rs 200 crore, is already in jail. Dayanidhi is the next on CBI's calling list, Tehelka predicts.
Soon after news broke that Maran, now textiles minister in the Manmohan Singh cabinet, was going to get into a legal battle with Tehelka, stocks of Sun TV Networks fell by 30 per cent and low-cost air carrier SpiceJet by 12 per cent. They recovered a little later in the day. The companies are owned by the Maran family, and run by Dayanidhi's brother Kalanidhi.
Politics is already raging, with Tamil Nadu chief minister J Jayalalithaa demanding Maran's resignation, and the DMK saying a court case isn't grounds enough for him to resign. After keeping mum all of yesterday, the dapper Maran spoke out this morning, saying he owned no shares in the Sun TV Network, in which Maxis had invested. In its rebuttal, Tehelka has dubbed his defence just clever talk because the money went into a company his brother owned.
Prime Minister Manmohan Singh, worried over Baba Ramdev's decision to go on a fast, met his cabinet this morning, and Maran sat in. We don't know how much longer the dapper politician can hold out, now that a big scandal has broken out, but once the quid pro quo is established, he may have no option but to go. Dayanidhi, for those not tuned in to Tamil Nadu politics, is DMK patriarch M Karunanidhi's nephew.
A quick recap: Raja, the DMK leader who succeeded Dayanidhi as telecom minister, also sold spectrum cheap, allegedly causing the nation a loss of about Rs 1.74 lakh crore. He is now in Tihar jail.
By Ramakrishna S R , Yahoo News
Thursday, June 2, 2011
Friday, April 22, 2011
Is PFRDA getting into in a turf war with IRDA?
The Pension Fund Regulatory and Development Authority (PFRDA) now want to regulate of all existing pension schemes from insurance companies after the PFRDA Bill, introduced in Lok Sabha is passed.
PFRDA claims that monitoring all retirement and pension savings products is their mandate. Moreover, the Direct Taxes Code (DTC) too, gives PFRDA the power to approve savings intermediaries eligible for tax sops and prescribe an investment pattern for pension funds.
Life insurers at present own pension schemes in their product portfolio, as they are permitted under Insurance Act, 1938. Moreover, they (pension schemes) contribute a major portion of the insurers' revenue, which also infuses reluctance for the Insurance Regulatory and Development Authority (IRDA) to part with its regulatory powers on pension schemes to PFRDA.
We believe that both PFRDA and IRDA should act in a very responsibly and mature way. Instead of indulging in a regulatory turf war against each other, regulators should mutually settle the matter and come up with solutions which are in the policyholders' interest.
Proving one's mettle over the other and winning more regulatory powers is unhealthy for the industry as a whole. One should overview things at which one is best. So, instead of getting into a tussle, the respective regulators should behave in a mature way which is also in the larger interest of the industry and policyholders.
PFRDA claims that monitoring all retirement and pension savings products is their mandate. Moreover, the Direct Taxes Code (DTC) too, gives PFRDA the power to approve savings intermediaries eligible for tax sops and prescribe an investment pattern for pension funds.
Life insurers at present own pension schemes in their product portfolio, as they are permitted under Insurance Act, 1938. Moreover, they (pension schemes) contribute a major portion of the insurers' revenue, which also infuses reluctance for the Insurance Regulatory and Development Authority (IRDA) to part with its regulatory powers on pension schemes to PFRDA.
We believe that both PFRDA and IRDA should act in a very responsibly and mature way. Instead of indulging in a regulatory turf war against each other, regulators should mutually settle the matter and come up with solutions which are in the policyholders' interest.
Proving one's mettle over the other and winning more regulatory powers is unhealthy for the industry as a whole. One should overview things at which one is best. So, instead of getting into a tussle, the respective regulators should behave in a mature way which is also in the larger interest of the industry and policyholders.
Friday, March 4, 2011
Fake money from Pakistan flooding India
5 Mar, 2011, 12.00AM IST,PTI
Fake money from Pakistan flooding India
WASHINGTON: Counterfeit currency is flooding into India from Pakistan and terrorist and criminal networks are using this money to finance their activities in the country, an official US report has said.
Warning that burgeoning black money, remittance systems and porous border were triggering money laundering at an alarming pace, the International Narcotics Control Strategy of the State Department in its 2011 report said because of prevalence of an informal economy, India had become a significant target for money launderers and terrorist groups.
via:E.T
Fake money from Pakistan flooding India
WASHINGTON: Counterfeit currency is flooding into India from Pakistan and terrorist and criminal networks are using this money to finance their activities in the country, an official US report has said.
Warning that burgeoning black money, remittance systems and porous border were triggering money laundering at an alarming pace, the International Narcotics Control Strategy of the State Department in its 2011 report said because of prevalence of an informal economy, India had become a significant target for money launderers and terrorist groups.
via:E.T
Thursday, January 20, 2011
PETROL ADULTERATION
Recently in Jaggampeta, in East Godavari District, Andhra Pradesh,India, A petrol Bunk owner mixed water to adulterate Petrol. (News from EENADU,District Edition)
It is called height of Innocence or Height of Adulteration?
why our Government is talking about Globalization? de regulating the Petrol prices etc.. etcc.. blahaa , Blahhaaaaa!!
This government does not have the proper mechanism , and proper intention to handle the Petrol Adulteration. The existing mechanism failed in monitoring & controlling the Adulteration.
the government is taking about the global linked pricing system, but quality is village level.
Both should match. or else this government will have to pay a lot in future.
please share your views. G.VENKAT RAO
email: venkatrao.zeevi@gmail.com
It is called height of Innocence or Height of Adulteration?
why our Government is talking about Globalization? de regulating the Petrol prices etc.. etcc.. blahaa , Blahhaaaaa!!
This government does not have the proper mechanism , and proper intention to handle the Petrol Adulteration. The existing mechanism failed in monitoring & controlling the Adulteration.
the government is taking about the global linked pricing system, but quality is village level.
Both should match. or else this government will have to pay a lot in future.
please share your views. G.VENKAT RAO
email: venkatrao.zeevi@gmail.com
Tuesday, January 18, 2011
» China becomes a lender to the world
What is the optimum level of forex reserves that a country should have? We believe that the reserves should be able to provide sufficient cushion for paying import bills and also to service external debt comfortably. Many experts believe that China crossed these landmarks long time back. But still, the accumulation of reserves has not slowed down one bit. In fact, if anything, it has only increased. And these reserves, rather than being a source of pride are beginning to look like embarrassment. For should the value of dollar erode substantially, China's reserves too would take a massive hit. Little wonder, the dragon nation has stepped up its efforts to utilise its huge reserves and it has zeroed in on lending to other countries as one such option.
FT reports that China has actually ended up lending more money to other developing countries than the World Bank over the past two years. It is estimated that while the dragon nation loaned out US$ 110 bn in 2009 and 2010, World Bank could manage to lend about US$ 10 bn less during roughly the same period. We believe that while the move is indeed a smart one, all bets would be off should the dollar start losing value rapidly.
FT reports that China has actually ended up lending more money to other developing countries than the World Bank over the past two years. It is estimated that while the dragon nation loaned out US$ 110 bn in 2009 and 2010, World Bank could manage to lend about US$ 10 bn less during roughly the same period. We believe that while the move is indeed a smart one, all bets would be off should the dollar start losing value rapidly.
» TCS grabs the crown from Infosys
Infosys, so far, has always set the trend when it came to the performance of the IT sector during any quarter. But it has not been the case this time around. Infosys' performance for 3QFY11 was quite tepid as sales and profits grew by a mere 2.3% QoQ and 2.5% QoQ respectively. Just when one thought that the rest of the IT sector is set to report lukewarm numbers as well, TCS came out with robust set of results. TCS witnessed a healthy 13% QoQ and 14% QoQ growth in sales and profits respectively. This was led by double digit growth in volumes and a growth in demand from all geographies. What is more, based on the discussions with its clients, TCS is upbeat about the demand environment going forward too. On the other hand, the Infosys management has remained more cautious with respect to billing rates and the demand recovery in the US and Europe. Of course, Infosys traditionally has always chosen to maintain a cautious stance as far as the outlook is concerned. And so, its growth should probably pick up in the coming quarters. But for the time being, the 'IT crown' certainly belongs to TCS.
Will US Fed need a bailout?
Through the global crisis, banks have been going bust left, right and centre. Some have been allowed to fail while some of the luckier ones were bailed out. But the underlying reason for all of them was the same - liabilities were higher than assets.
Imagine if this were to happen to the world's most powerful central bank. Yes. We are talking about the US Fed. The bank's liabilities have been going up thanks to the rounds of quantitative easing that it undertook. But at the same time, asset creation has lagged behind. The central bank has been using most of its money in buying the treasury bonds. If and when inflation starts to kick in, the value of these bonds would start to take a hit. As a result, experts have started to question - will the US Fed need a bailout in times to come?
As per its Chief, Mr. Bernanke, this is impossible. In case such a situation should arise, then the bank would just not put its profits back into the treasury as it normally does. The theoretical way out is to sell bonds and suck up the excess liquidity. But this would impact the country's growth rates. Another way to avoid this from happening is to just open up the money printing press and shower notes from the helicopter. We are all aware that Mr. Bernanke is only too happy to resort to the latter method.
Imagine if this were to happen to the world's most powerful central bank. Yes. We are talking about the US Fed. The bank's liabilities have been going up thanks to the rounds of quantitative easing that it undertook. But at the same time, asset creation has lagged behind. The central bank has been using most of its money in buying the treasury bonds. If and when inflation starts to kick in, the value of these bonds would start to take a hit. As a result, experts have started to question - will the US Fed need a bailout in times to come?
As per its Chief, Mr. Bernanke, this is impossible. In case such a situation should arise, then the bank would just not put its profits back into the treasury as it normally does. The theoretical way out is to sell bonds and suck up the excess liquidity. But this would impact the country's growth rates. Another way to avoid this from happening is to just open up the money printing press and shower notes from the helicopter. We are all aware that Mr. Bernanke is only too happy to resort to the latter method.
Tuesday, January 4, 2011
How rich is the Shirdi temple? Very
Press Trust of India, Updated: January 04, 2011 17:05 IST (Via NDTV)
The famous pilgrim centre of Shri Saibaba temple in Shirdi, one of the richest temples in Maharashtra, has ornaments and jewellery worth over Rs. 32 crore and investments running into Rs. 427 crore, according to official documents.
The administration of Shri Saibaba Sansthan Trust (Shirdi), governed by the Managing Committee which was constituted by the Maharashtra Government way back on August 23, 2004 has Kisan Vikas Patras worth more than Rs. 51.71 crore besides Government of India eight-percent Saving Bonds amounting to Rs. 48.15 crore and Rs. 8 crore in non-redeemable bonds of Maharashtra Jeevan Pradhikaran, and Rs. 3.19 crore in various nationalised banks.
It has Rs. 47.82 crore as Trust Corpus Fund.
The temple trust has ornaments and jewellery including Gold worth Rs. 24,41,10,640 crore, Silver--Rs. 3.26 crore; Silver coins-- Rs. 61.2 lakh; Gold Coins--Rs. 1.28 crore and Gold pendants worth Rs. 1.12 crore, the Trust Auditor Sharad S Gaikwad said in its annuul audit for 2009-10 as the annual report was tabled in the State Legislature during its winter session in December 2010 here.
The total worth of the ornaments and jewellery stands at over Rs. 32.23 crore.
The temple has earned a surplus income of Rs. 94.67 crore in year 2009-10 as against Rs. 87.22 crore in year 2008-09.
The total income during the year 2009-10 was Rs. 164.88 crore by way of rent, interest on savings bank accounts, investments and donations against over Rs. 151.51 crore in previous year. The immovable property and buildings are worth Rs. 7.92 crore including the Statue of Saibaba worth Rs. eight lakh, the annual report stated.
The famous pilgrim centre of Shri Saibaba temple in Shirdi, one of the richest temples in Maharashtra, has ornaments and jewellery worth over Rs. 32 crore and investments running into Rs. 427 crore, according to official documents.
The administration of Shri Saibaba Sansthan Trust (Shirdi), governed by the Managing Committee which was constituted by the Maharashtra Government way back on August 23, 2004 has Kisan Vikas Patras worth more than Rs. 51.71 crore besides Government of India eight-percent Saving Bonds amounting to Rs. 48.15 crore and Rs. 8 crore in non-redeemable bonds of Maharashtra Jeevan Pradhikaran, and Rs. 3.19 crore in various nationalised banks.
It has Rs. 47.82 crore as Trust Corpus Fund.
The temple trust has ornaments and jewellery including Gold worth Rs. 24,41,10,640 crore, Silver--Rs. 3.26 crore; Silver coins-- Rs. 61.2 lakh; Gold Coins--Rs. 1.28 crore and Gold pendants worth Rs. 1.12 crore, the Trust Auditor Sharad S Gaikwad said in its annuul audit for 2009-10 as the annual report was tabled in the State Legislature during its winter session in December 2010 here.
The total worth of the ornaments and jewellery stands at over Rs. 32.23 crore.
The temple has earned a surplus income of Rs. 94.67 crore in year 2009-10 as against Rs. 87.22 crore in year 2008-09.
The total income during the year 2009-10 was Rs. 164.88 crore by way of rent, interest on savings bank accounts, investments and donations against over Rs. 151.51 crore in previous year. The immovable property and buildings are worth Rs. 7.92 crore including the Statue of Saibaba worth Rs. eight lakh, the annual report stated.
Wednesday, December 8, 2010
Bankrupting a government
There have been words, sentences and paragraphs written on the Euro zone crisis . There is an article in every daily highlighting how X government has gone bust. How Y government needs to be bailed out. Most of us wonder how a government can become bankrupt. In this article, we try to understand the fundamental reasons as to why this happens.
First, let us understand that the government like any other entity has income and expenditure. The sources of income are predominantly taxes that are imposed by the government. These are the individual taxes, corporate taxes, value added taxes, customs, excise, etc. This income is spent on various things like education, infrastructure, defense, healthcare, etc. The difference between the income and expenditure is called a fiscal surplus, if the difference is positive, i.e., income is more than the expenditure. And this is called a fiscal deficit if the difference is negative, i.e., income is less than the expenditure.
So how can the government have a fiscal deficit? How can they spend more than what they get. The answer to this is the four letter word DEBT. The government takes on debt to meet this difference. This debt can either be raised internally or taken from other countries. The government issues bonds, which is a promise to pay a certain sum at the end of a certain period at a certain coupon rate (interest rate). These bonds are sold to the citizens of the country, i.e., companies, banks, individuals. These can also be bought by other countries or their companies. Thus, the government raises the extra money that they need to fund the gap between their income and their expenditures.
Why can't the government keep issuing debt whenever they face a deficit? Why didn't the governments of Ireland and Greece just keep issuing more bonds? Why did they need other countries to bail them out?
The answer to this is a wee bit complicated. While a government can issue debt, however, someone has to buy this debt. After a while the bond holders start demanding higher coupon rates if they are to buy additional debt. As a result, bond yields start to rise for the country. Eventually as yields start touching new highs, it becomes more and more difficult for the government to issue additional debt. There are 2 reasons for this. One, it is too costly for the government to issue further debt. And two, no one wants to buy their debt.
This is the point of crisis for the government. Now, they are faced with two choices. One is to increase their income by increasing taxes. This is politically difficult as the citizens revolt at the idea of higher tax rates. However, in recent times, countries like the US have adopted higher tax rates though this has made the government quite unpopular.
The other option then is to cut down on their expenditure. The term for this is to ‘adopt austerity measures'. This is not a welcome option at all times as it conveys a wrong signal to the citizens that the government no longer cares for its citizens. But at dire times this is adopted by countries as was seen in the case of United Kingdom.
If the government is unsuccessful at these attempts, then the other option is to declare themselves as in crisis and request for bailouts from other countries. But even in this option, most of the helping countries give guidelines on the ‘austerity measures' that the country needs to adopt for availing the bailout funds. Either away, the existing government kisses away its chances of reelection.
via: Eqmastr
First, let us understand that the government like any other entity has income and expenditure. The sources of income are predominantly taxes that are imposed by the government. These are the individual taxes, corporate taxes, value added taxes, customs, excise, etc. This income is spent on various things like education, infrastructure, defense, healthcare, etc. The difference between the income and expenditure is called a fiscal surplus, if the difference is positive, i.e., income is more than the expenditure. And this is called a fiscal deficit if the difference is negative, i.e., income is less than the expenditure.
So how can the government have a fiscal deficit? How can they spend more than what they get. The answer to this is the four letter word DEBT. The government takes on debt to meet this difference. This debt can either be raised internally or taken from other countries. The government issues bonds, which is a promise to pay a certain sum at the end of a certain period at a certain coupon rate (interest rate). These bonds are sold to the citizens of the country, i.e., companies, banks, individuals. These can also be bought by other countries or their companies. Thus, the government raises the extra money that they need to fund the gap between their income and their expenditures.
Why can't the government keep issuing debt whenever they face a deficit? Why didn't the governments of Ireland and Greece just keep issuing more bonds? Why did they need other countries to bail them out?
The answer to this is a wee bit complicated. While a government can issue debt, however, someone has to buy this debt. After a while the bond holders start demanding higher coupon rates if they are to buy additional debt. As a result, bond yields start to rise for the country. Eventually as yields start touching new highs, it becomes more and more difficult for the government to issue additional debt. There are 2 reasons for this. One, it is too costly for the government to issue further debt. And two, no one wants to buy their debt.
This is the point of crisis for the government. Now, they are faced with two choices. One is to increase their income by increasing taxes. This is politically difficult as the citizens revolt at the idea of higher tax rates. However, in recent times, countries like the US have adopted higher tax rates though this has made the government quite unpopular.
The other option then is to cut down on their expenditure. The term for this is to ‘adopt austerity measures'. This is not a welcome option at all times as it conveys a wrong signal to the citizens that the government no longer cares for its citizens. But at dire times this is adopted by countries as was seen in the case of United Kingdom.
If the government is unsuccessful at these attempts, then the other option is to declare themselves as in crisis and request for bailouts from other countries. But even in this option, most of the helping countries give guidelines on the ‘austerity measures' that the country needs to adopt for availing the bailout funds. Either away, the existing government kisses away its chances of reelection.
via: Eqmastr
Sunday, October 24, 2010
G-20 to aim at market driven exchange rate system
GYEONGJU (SOUTH KOREA): The U.S. won G-20 backing on Saturday to tackle groaning trade imbalances as the world's biggest industrial nations vowed to avoid tit-for-tat currency devaluations.
After all-night talks among their senior officials, G-20 finance ministers forged an agreement in South Korea to “refrain from competitive devaluation of currencies” and aim for “more market-determined exchange rate systems.''
South Korean Finance Minister Yoon Jeung-Hyun said the two-day G-20 meeting had laid to rest fears of a “currency war” between struggling debtors such as the U.S. and exporting powers such as China. The outcome will “terminate the controversial currency issue now,” he told a news conference, while conceding that it was “very difficult” for the G-20 to reach agreement.
In a statement, the finance ministers vowed to “pursue the full range of policies conducive to reducing excessive imbalances and maintaining current-account imbalances at sustainable levels.''
The International Monetary Fund won greater power to oversee G-20 commitments. It was tasked with compiling periodic reports that will investigate how a country's economic policies can damage trading partners.
Historic deal
IMF chief Dominique Strauss-Kahn said the G-20 ministers had, in parallel, struck a “very historic” deal to revamp the Washington-based financial watchdog to give China and other emerging powers a greater say.
Under the deal, which has been years in the making, Europe agreed to cede two seats on the IMF board to accommodate developing nations. Brazil, Russia, India and China will all in future rank among the top 10 IMF shareholders.
The G-20 also signed off on a deal for tighter regulation of banks and big finance firms blamed for triggering the global economic crisis, raising the amount of top-quality capital that banks must hold in reserve for a rainy day. — AFP
After all-night talks among their senior officials, G-20 finance ministers forged an agreement in South Korea to “refrain from competitive devaluation of currencies” and aim for “more market-determined exchange rate systems.''
South Korean Finance Minister Yoon Jeung-Hyun said the two-day G-20 meeting had laid to rest fears of a “currency war” between struggling debtors such as the U.S. and exporting powers such as China. The outcome will “terminate the controversial currency issue now,” he told a news conference, while conceding that it was “very difficult” for the G-20 to reach agreement.
In a statement, the finance ministers vowed to “pursue the full range of policies conducive to reducing excessive imbalances and maintaining current-account imbalances at sustainable levels.''
The International Monetary Fund won greater power to oversee G-20 commitments. It was tasked with compiling periodic reports that will investigate how a country's economic policies can damage trading partners.
Historic deal
IMF chief Dominique Strauss-Kahn said the G-20 ministers had, in parallel, struck a “very historic” deal to revamp the Washington-based financial watchdog to give China and other emerging powers a greater say.
Under the deal, which has been years in the making, Europe agreed to cede two seats on the IMF board to accommodate developing nations. Brazil, Russia, India and China will all in future rank among the top 10 IMF shareholders.
The G-20 also signed off on a deal for tighter regulation of banks and big finance firms blamed for triggering the global economic crisis, raising the amount of top-quality capital that banks must hold in reserve for a rainy day. — AFP
Saturday, August 7, 2010
» Indian IT hit by US visa bill
Headwinds from US continue to blow southwards for the Indian IT industry. The US Senate has passed a bill to raise the H1B visa fees. The H1B visa (work visa for US) fees have been nearly doubled from US$ 2,000 to US$ 4,500. The Indian IT industry derives nearly 45-50% of its revenues from its onsite work resources. As per NASSCOM, this will increase the annual visa cost for the Indian IT industry by US$ 200-250 m annually. This will reduce the cost arbitrage that India offers to its clients in US. However, Indian IT firms cannot afford to miss the US markets. It is after all worth almost US$ 30 bn. But it will certainly impact their costs. Interestingly, India's working in the US already pay over US$ 1 bn annually in social security for which we do not get any benefits.
» A homegrown competition to Visa, Mastercard
90% of the time when anyone uses their credit card, they will be using the services of Visa or Mastercard. Whenever 'plastic money' is used at ATMs, malls or for online payments, banks have to pay facilitation fees to these giants for the processing of such transactions.
Well, these two American heavyweights may soon be facing a new competitor. IndiaPay, a new government backed payment processing platform will be launched in the next two years. This new service will help bring down transaction costs significantly. Its development is also being promoted by major Indian and foreign banks in India, as well as the banking regulator. Currently, around 40 m credit and debit cards are in circulation in India. This is only set to boom in the next few years. So, it looks like 'Visa Power' and 'for everything else there is Mastercard' will soon be replaced by a new 'desi' flavor.
Well, these two American heavyweights may soon be facing a new competitor. IndiaPay, a new government backed payment processing platform will be launched in the next two years. This new service will help bring down transaction costs significantly. Its development is also being promoted by major Indian and foreign banks in India, as well as the banking regulator. Currently, around 40 m credit and debit cards are in circulation in India. This is only set to boom in the next few years. So, it looks like 'Visa Power' and 'for everything else there is Mastercard' will soon be replaced by a new 'desi' flavor.
» The biggest hurdle to FDI in India
If India has to grow by 10% plus on a sustainable basis, there has to be considerable development in the country's infrastructure and industry. This also requires substantial long term foreign capital. Thus making foreign direct investments (FDIs) all the more important. But the challenges for this capital to keep pouring in are immense. And one such challenge is land acquisition.
Take the POSCO project in Orissa for example. The state government has been ordered to stop buying land for South Korean steelmaker POSCO's proposed plant. It must be noted that five years ago POSCO signed an initial pact with the Orissa state government to build a plant with a capacity of 12 m tonnes a year at an investment of more than US$ 10 bn. This has now hit a roadblock due to tough forest laws and stiff opposition from the local people. These issues are not new. They have hampered several projects in the past. One needs to look no further than the Tata Nano fiasco in Singur, West Bengal for evidence of this. Thus, the government will have to ensure that problems such as these do not get out of hand lest FDIs begin to slowdown or halt in the future.
Take the POSCO project in Orissa for example. The state government has been ordered to stop buying land for South Korean steelmaker POSCO's proposed plant. It must be noted that five years ago POSCO signed an initial pact with the Orissa state government to build a plant with a capacity of 12 m tonnes a year at an investment of more than US$ 10 bn. This has now hit a roadblock due to tough forest laws and stiff opposition from the local people. These issues are not new. They have hampered several projects in the past. One needs to look no further than the Tata Nano fiasco in Singur, West Bengal for evidence of this. Thus, the government will have to ensure that problems such as these do not get out of hand lest FDIs begin to slowdown or halt in the future.
Orissa appeals against halt order on POSCO
Saturday August 7,2010, 02:00 PM
MUMBAI (Reuters) - The chief minister of Orissa has appealed to the prime minister to allow South Korea's POSCO<005490.KS> to continue work on a giant iron ore project after the environment ministry ordered a halt.
Stopping work at this stage on a proposed $12 billion plant would be counterproductive and affect the investment climate in the country, Naveen Patnaik said in a letter to the prime minister, according to a senior state official, who asked not to be named as he is not authorised to speak to the media.
POSCO, the world's third-largest steelmaker, wants to mine iron ore in the Khandadharnear region of Orissa and signed a memorandum of understanding in June 2005 for the plant, which was to be built in three phases by 2016, with production scheduled to begin by the end of 2011 at the completion of the first phase.
But the project, touted as India's biggest foreign direct investment, has been repeatedly delayed due to protests by farmers who fear losing their land and livelihood.
On Friday, Environment Minister Jairam Ramesh said the state had been directed to stop all work on the project, including land acquisition, as a special committee had found it violated the forest rights act that seeks to protect forest land and settlers.
Ramesh, who has scrapped or delayed clearance for some 100 mining projects, wants to protect India's remaining forest land as part of a strategy to fight climate change.
But that could mean giving up mining about a quarter of the country's mineral reserves.
POSCO required 4,000 acres (1,600 hectares) of land in the eastern state, of which 2,900 acres is forested. Final clearances for acquiring the forested land had been given, but there has been little progress in land acquisition because of the protests.
Top steelmaker ArcelorMittal is also battling delays from allocation of mining licences and protests by villagers in eastern India.
POSCO announced in January it planned to invest more than $7 billion in a new plant in southern India.
MUMBAI (Reuters) - The chief minister of Orissa has appealed to the prime minister to allow South Korea's POSCO<005490.KS> to continue work on a giant iron ore project after the environment ministry ordered a halt.
Stopping work at this stage on a proposed $12 billion plant would be counterproductive and affect the investment climate in the country, Naveen Patnaik said in a letter to the prime minister, according to a senior state official, who asked not to be named as he is not authorised to speak to the media.
POSCO, the world's third-largest steelmaker, wants to mine iron ore in the Khandadharnear region of Orissa and signed a memorandum of understanding in June 2005 for the plant, which was to be built in three phases by 2016, with production scheduled to begin by the end of 2011 at the completion of the first phase.
But the project, touted as India's biggest foreign direct investment, has been repeatedly delayed due to protests by farmers who fear losing their land and livelihood.
On Friday, Environment Minister Jairam Ramesh said the state had been directed to stop all work on the project, including land acquisition, as a special committee had found it violated the forest rights act that seeks to protect forest land and settlers.
Ramesh, who has scrapped or delayed clearance for some 100 mining projects, wants to protect India's remaining forest land as part of a strategy to fight climate change.
But that could mean giving up mining about a quarter of the country's mineral reserves.
POSCO required 4,000 acres (1,600 hectares) of land in the eastern state, of which 2,900 acres is forested. Final clearances for acquiring the forested land had been given, but there has been little progress in land acquisition because of the protests.
Top steelmaker ArcelorMittal is also battling delays from allocation of mining licences and protests by villagers in eastern India.
POSCO announced in January it planned to invest more than $7 billion in a new plant in southern India.
Solar power gets its day in the sun with national mission support
Saturday August 7,2010, 03:27 AM
After the recent release of the guidelines to operationalise the Jawaharlal Nehru National Solar Mission, the solar energy industry is shining bright with optimism. As new players scramble to make the first moves, the incumbents are determined to stay ahead. While some industry players are scouting overseas for technology, others are hunting for land back home. Every company seems keen to stake a claim to its share of the limelight. All eyes are on the first grid-connected 5-mw solar thermal plant by Acme Tele Power, expected to come up in Rajasthan by September.
The solar mission envisages setting up of 1,300 mw of solar power, including 1,100 mw of grid-connected solar power, 100 mw small-grid and 200 mw off-grid power generation, by 2013. The overall target is to set up 20,000 mw by 2022 in three phases, up from 12 mw of grid connected interactive solar power as on end-June 2010.
Government support has fuelled a spate of initiatives in this sector. RPG Group's power utility CESC is developing a 200-mw solar power project for Rs 2,000 crore near Bikaner in Rajasthan, for which it has acquired 300 acres. Kalyani Group flagship Bharat Forge (BHARATFOR.NS : 336.1 +1.85 ) is planning to install 100 mw of solar power. 40 mw of solar power is being set up by Adani Power in Gujarat. Yash Birla Group's Birla Power Solutions is targeting 125 mw of solar power in Haryana, Uttarakhand, Andhra Pradesh and Rajasthan. Meanwhile, public sector NTPC has targetted generating 300 mw solar power by March 2014. Referring to the indicative list, Anil Lakhina, chairman and managing director, Forum for the Advancement of Solar Thermal, an industry association, says: "The profile of players is impressive. It's time for serious business now."
Committed to help the industry achieve grid parity by 2022, the mission has named NTPC Vidyut Vyapar Nigam to buy power from private developers. For the first year (2010-2011), the Central Regulatory Electricity Commission has fixed the rate for photo-voltaic at Rs 17.91 per unit and for solar thermal at Rs 15.31 per unit. Besides, the power ministry will contribute "relatively cheaper" 1,000 mw of thermal power for bundling with "relatively expensive" solar power to be sold to distribution utilities in order to reduce its cost for end-consumers.
Rajasthan is a favourite destination for solar power producers. Naresh Pal Gangwar, CMD, Rajasthan Renewable Energy Corporation says: "Rajasthan is scoring not only because of good solar radiation and the number of sunny days, but also because of availability of unutilised land in desert areas at cheap rates." Eleven projects with a total capacity of 66 mw cleared by the Centre are expected to come up in in the state in the next year and a half.
Existing solar players are consolidating and expanding. While Tata BP Solar is planning to increase its photo-voltaic cell manufacturing capacity to 180 mw from 84 mw, Moser Baer (MOSERBAER.NS : 64.55 -2.15 ) is expanding capacity to 190 mw from 100 mw. Rajiv Arya, CEO, solar business, Moser Baer India says: "These are exciting times. The government has done its job. It's now up to us to make the most of it to usher in a solar revolution in the country."
Each company is charting its own course. SunBorne Energy, a solar thermal power developer planning solar power plants of 50 mw each in Andhra Pradesh and Rajasthan to begin with, is focusing on indigenous technology. James Abraham, MD & CEO, SunBorne Energy says: "We are keen to add value and cut costs by using indigenous technology."
It's also time to test radical ideas. Norway's Scatec Solar has just set up a 8.7-kWp photo-voltaic power plant and a mini-grid to provide energy to 70 houses in Rampura, Jhansi in Bundelkhand. While Development Alternatives, an NGO, did the groundwork, Bergen Group of Companies executed the project. Rajinder Kumar, CMD, Bergen says: "We need to look at replicating and scaling up such pilot projects."
It's not only manufacturers and developers who are getting their act together. Services providers too are working overtime to tap into the emerging opportunity. While Germany's TUV Rheinland is setting up its seventh worldwide lab for testing solar modules and systems in Bangalore at an investment of 2 million euros, 3TIER, a renewable energy information provider, has launched its proprietary solar prospecting and assessment tools for developers to assess availability and variability of solar radiation in India.
Solar energy events in the country, too, are witnessing renewed interest from industry players from across the world. The recently concluded three-day Solarcon India 2010 in Hyderabad attracted the who's who of the solar PV industry. Says Priyadarshini Sanjay, MD, Mercom Communications India, a subsidiary of clean energy communication consultancy Mercom Capital Group: "The sentiment has improved a lot since the last event and industry players want the government to set even more ambitious targets."
Observers expect the improved sentiment to light up the second edition of Intersolar India, an international solar industry exhibition to be held in in Mumbai December. Conferences are being supplemented by workshops too. The Confederation of Indian Industry is holding workshops on 'Setting up a Grid Connected Solar PV Power Plant' in Delhi and on 'Enabling Financing of Solar Power Projects' in Mumbai this month.
While older conferences get better global traction, first-timers too are riding the optimistic sentiment to book their slot in the newly expanded space. Belen Gallego, founder and director of UK-based CSP Today, is gung-ho about her 1st Concentrated Solar Thermal Power Summit to be held in September in Delhi. Seeing the kind of draw solar energy is getting, even renewable energy events like the Delhi International Renewable Energy Conference (DIREC-2010) to be held in October in Delhi and the International Congress on Renewable Energy (ICORE-2010) to be held in December in Chandigarh are focusing more on solar energy.
Rajneesh Khattar, vice-president, Exhibitions India Group, which is managing DIREC-2010 says: "Thanks to the National Solar Mission, the response from solar power industry is overwhelming and it bodes well for the economy." Adds Jagat S Jawa, director general, Solar Energy Society of India, which is organising ICORE-2010: "Solar is not just the flavour of the season, but is hopefully going to be a permanent favourite." Now, all eyes are focused on achieving the modest target of the first phase of the National Solar Mission. Its achievement opens the gate to attempting the ambitious overall target.
Source: Indian Express Finance
After the recent release of the guidelines to operationalise the Jawaharlal Nehru National Solar Mission, the solar energy industry is shining bright with optimism. As new players scramble to make the first moves, the incumbents are determined to stay ahead. While some industry players are scouting overseas for technology, others are hunting for land back home. Every company seems keen to stake a claim to its share of the limelight. All eyes are on the first grid-connected 5-mw solar thermal plant by Acme Tele Power, expected to come up in Rajasthan by September.
The solar mission envisages setting up of 1,300 mw of solar power, including 1,100 mw of grid-connected solar power, 100 mw small-grid and 200 mw off-grid power generation, by 2013. The overall target is to set up 20,000 mw by 2022 in three phases, up from 12 mw of grid connected interactive solar power as on end-June 2010.
Government support has fuelled a spate of initiatives in this sector. RPG Group's power utility CESC is developing a 200-mw solar power project for Rs 2,000 crore near Bikaner in Rajasthan, for which it has acquired 300 acres. Kalyani Group flagship Bharat Forge (BHARATFOR.NS : 336.1 +1.85 ) is planning to install 100 mw of solar power. 40 mw of solar power is being set up by Adani Power in Gujarat. Yash Birla Group's Birla Power Solutions is targeting 125 mw of solar power in Haryana, Uttarakhand, Andhra Pradesh and Rajasthan. Meanwhile, public sector NTPC has targetted generating 300 mw solar power by March 2014. Referring to the indicative list, Anil Lakhina, chairman and managing director, Forum for the Advancement of Solar Thermal, an industry association, says: "The profile of players is impressive. It's time for serious business now."
Committed to help the industry achieve grid parity by 2022, the mission has named NTPC Vidyut Vyapar Nigam to buy power from private developers. For the first year (2010-2011), the Central Regulatory Electricity Commission has fixed the rate for photo-voltaic at Rs 17.91 per unit and for solar thermal at Rs 15.31 per unit. Besides, the power ministry will contribute "relatively cheaper" 1,000 mw of thermal power for bundling with "relatively expensive" solar power to be sold to distribution utilities in order to reduce its cost for end-consumers.
Rajasthan is a favourite destination for solar power producers. Naresh Pal Gangwar, CMD, Rajasthan Renewable Energy Corporation says: "Rajasthan is scoring not only because of good solar radiation and the number of sunny days, but also because of availability of unutilised land in desert areas at cheap rates." Eleven projects with a total capacity of 66 mw cleared by the Centre are expected to come up in in the state in the next year and a half.
Existing solar players are consolidating and expanding. While Tata BP Solar is planning to increase its photo-voltaic cell manufacturing capacity to 180 mw from 84 mw, Moser Baer (MOSERBAER.NS : 64.55 -2.15 ) is expanding capacity to 190 mw from 100 mw. Rajiv Arya, CEO, solar business, Moser Baer India says: "These are exciting times. The government has done its job. It's now up to us to make the most of it to usher in a solar revolution in the country."
Each company is charting its own course. SunBorne Energy, a solar thermal power developer planning solar power plants of 50 mw each in Andhra Pradesh and Rajasthan to begin with, is focusing on indigenous technology. James Abraham, MD & CEO, SunBorne Energy says: "We are keen to add value and cut costs by using indigenous technology."
It's also time to test radical ideas. Norway's Scatec Solar has just set up a 8.7-kWp photo-voltaic power plant and a mini-grid to provide energy to 70 houses in Rampura, Jhansi in Bundelkhand. While Development Alternatives, an NGO, did the groundwork, Bergen Group of Companies executed the project. Rajinder Kumar, CMD, Bergen says: "We need to look at replicating and scaling up such pilot projects."
It's not only manufacturers and developers who are getting their act together. Services providers too are working overtime to tap into the emerging opportunity. While Germany's TUV Rheinland is setting up its seventh worldwide lab for testing solar modules and systems in Bangalore at an investment of 2 million euros, 3TIER, a renewable energy information provider, has launched its proprietary solar prospecting and assessment tools for developers to assess availability and variability of solar radiation in India.
Solar energy events in the country, too, are witnessing renewed interest from industry players from across the world. The recently concluded three-day Solarcon India 2010 in Hyderabad attracted the who's who of the solar PV industry. Says Priyadarshini Sanjay, MD, Mercom Communications India, a subsidiary of clean energy communication consultancy Mercom Capital Group: "The sentiment has improved a lot since the last event and industry players want the government to set even more ambitious targets."
Observers expect the improved sentiment to light up the second edition of Intersolar India, an international solar industry exhibition to be held in in Mumbai December. Conferences are being supplemented by workshops too. The Confederation of Indian Industry is holding workshops on 'Setting up a Grid Connected Solar PV Power Plant' in Delhi and on 'Enabling Financing of Solar Power Projects' in Mumbai this month.
While older conferences get better global traction, first-timers too are riding the optimistic sentiment to book their slot in the newly expanded space. Belen Gallego, founder and director of UK-based CSP Today, is gung-ho about her 1st Concentrated Solar Thermal Power Summit to be held in September in Delhi. Seeing the kind of draw solar energy is getting, even renewable energy events like the Delhi International Renewable Energy Conference (DIREC-2010) to be held in October in Delhi and the International Congress on Renewable Energy (ICORE-2010) to be held in December in Chandigarh are focusing more on solar energy.
Rajneesh Khattar, vice-president, Exhibitions India Group, which is managing DIREC-2010 says: "Thanks to the National Solar Mission, the response from solar power industry is overwhelming and it bodes well for the economy." Adds Jagat S Jawa, director general, Solar Energy Society of India, which is organising ICORE-2010: "Solar is not just the flavour of the season, but is hopefully going to be a permanent favourite." Now, all eyes are focused on achieving the modest target of the first phase of the National Solar Mission. Its achievement opens the gate to attempting the ambitious overall target.
Source: Indian Express Finance
Sunday, July 18, 2010
Gujarat Reclaim (CMP=867)- For Long Term Investors
19 Jul 2010, E.T
Gujarat Reclaim & Rubber Products (GRRP) is likely to see an increase in demand for its recycled rubber with natural and synthetic rubber prices soaring. Being the industry leader, its expansion plans are likely to offer great growth opportunities as acceptance of recycled material increases. Considering its attractive valuations, stable financials and growth prospects, long-term investors can consider this stock.
Business: Established in 1974, GRRP is into processing and reclaiming rubber from scrap of tyres and its components or other rubber products for different applications in both tyre and non-tyre rubber products. Nearly two-thirds of its sales go to tyre manufacturers. It has plants at Ankleshwar, Panoli and Solapur with a total capacity of 45,000 tonnes with full capacity utilisation.
GRRP supplies to leading tyre manufacturers such as Ceat, MRF, Apollo Tyres, JK Tyre and Bridgestone. More than half of its revenues come from exports. The company has also set up a power plant in Ankleshwar for captive consumption. The reclaimed rubber industry in India is a mix of 125 small and medium-scale manufacturers.
Growth drivers: At a time when natural rubber prices are ruling at their all time high, the demand for reclaimed rubber is on rise. The company is not only expanding capacities, but also plans to raise prices gradually.
In December 2009, the company added 6,000 tonne capacity at its Panoli plant, full benefits of which will be available in FY11. The company also has plans to expand its existing plants apart from setting up new units in strategic locations. The company is currently in the process of tying up Rs 63 crore loan to fund these expansions, which could come up over the next couple of years.
The price of reclaimed rubber stagnated at around Rs 35 per kg in the past two years after steadily rising in the last decade. With sharp rise in natural rubber prices, the demand for reclaimed rubber is likely to increase enabling the producers to increase the prices.
In the past three years, the proportion of reclaimed rubber in tyres has gone up from 3% to 5%, which is expected to increase to 10% within five years.
Financial: The first nine months of FY10 were stagnant for the company, but the fourth quarter registered a sharp 58% jump in net sales with a 54% jump in profits. The lower base effect and additional capacity at Panoli plant were the key reasons behind the spurt. In the past 5 years, the net sales of the company grew at a CAGR of 25.5% while the net profit grew at 26.2%.
The company has a healthy track record of generating cash flows and paying dividends. In the past three years, the company has consistently brought down the debt-equity ratio to below 0.45 as on March 2010. The company’s return on capital employed has averaged at around 40% in the past five years.
Valuations: At the current market price the stock is trading at a P/E of 8.6. The company is expected to generate earnings per share of Rs 125 for FY11, which translates in a one year forward P/E of 6.9. Low liquidity, however, remains a key concern as the scrip had an average daily traded volume of 480 shares in the past one month.
Gujarat Reclaim & Rubber Products (GRRP) is likely to see an increase in demand for its recycled rubber with natural and synthetic rubber prices soaring. Being the industry leader, its expansion plans are likely to offer great growth opportunities as acceptance of recycled material increases. Considering its attractive valuations, stable financials and growth prospects, long-term investors can consider this stock.
Business: Established in 1974, GRRP is into processing and reclaiming rubber from scrap of tyres and its components or other rubber products for different applications in both tyre and non-tyre rubber products. Nearly two-thirds of its sales go to tyre manufacturers. It has plants at Ankleshwar, Panoli and Solapur with a total capacity of 45,000 tonnes with full capacity utilisation.
GRRP supplies to leading tyre manufacturers such as Ceat, MRF, Apollo Tyres, JK Tyre and Bridgestone. More than half of its revenues come from exports. The company has also set up a power plant in Ankleshwar for captive consumption. The reclaimed rubber industry in India is a mix of 125 small and medium-scale manufacturers.
Growth drivers: At a time when natural rubber prices are ruling at their all time high, the demand for reclaimed rubber is on rise. The company is not only expanding capacities, but also plans to raise prices gradually.
In December 2009, the company added 6,000 tonne capacity at its Panoli plant, full benefits of which will be available in FY11. The company also has plans to expand its existing plants apart from setting up new units in strategic locations. The company is currently in the process of tying up Rs 63 crore loan to fund these expansions, which could come up over the next couple of years.
The price of reclaimed rubber stagnated at around Rs 35 per kg in the past two years after steadily rising in the last decade. With sharp rise in natural rubber prices, the demand for reclaimed rubber is likely to increase enabling the producers to increase the prices.
In the past three years, the proportion of reclaimed rubber in tyres has gone up from 3% to 5%, which is expected to increase to 10% within five years.
Financial: The first nine months of FY10 were stagnant for the company, but the fourth quarter registered a sharp 58% jump in net sales with a 54% jump in profits. The lower base effect and additional capacity at Panoli plant were the key reasons behind the spurt. In the past 5 years, the net sales of the company grew at a CAGR of 25.5% while the net profit grew at 26.2%.
The company has a healthy track record of generating cash flows and paying dividends. In the past three years, the company has consistently brought down the debt-equity ratio to below 0.45 as on March 2010. The company’s return on capital employed has averaged at around 40% in the past five years.
Valuations: At the current market price the stock is trading at a P/E of 8.6. The company is expected to generate earnings per share of Rs 125 for FY11, which translates in a one year forward P/E of 6.9. Low liquidity, however, remains a key concern as the scrip had an average daily traded volume of 480 shares in the past one month.
Tuesday, July 13, 2010
Small units to get more bank funds
MUMBAI:Micro, Small and Medium Enterprises (MSMEs) will soon have access to adequate funds with the initiative taken by the central government to increase the credit availability to the sector.
Speaking at a seminar organized by the Maharashtra Pradesh Congress Committee (MPCC) here on Tuesday, Union Finance Minister Pranab Mukherjee said the government was trying to remove obstacles in the growth path of the MSMEs.
“The Prime Minister's task force on MSME has submitted its report in January and has recommended an agenda for immediate action to cover all areas including credit, marketing, labour, technology, skill development and taxation. The Prime Minister's Council on MSME will now be regularly monitoring the implementation of the recommendations,'' he said.
It is estimated that in terms of value, the MSME sector accounts for about 45 per cent of the manufacturing output and around 40 per cent of the total exports of the country.
It employs an estimated 60 million people spread over 26 million registered and unregistered enterprises. There are 1.5 million registered units, out of which 95 per cent are micro enterprises and about 4.7 per cent are small enterprises.
However, unlike larger companies, the MSME sector does not have access to alternative avenues of raising capital, “despite its commendable contribution to the gross domestic product (GDP), exports and employment,'' he said.
The Finance Minister pointed out that there were a host of problems relating to registration and credit rating which needed to be sorted out before successful listing. “There has been a general grudge that commercial banks mainly give priority to the corporate sector with better credit rating and provide credit at below prime lending rates.
But with the switch over to lending on the basis of base rate from July 1, their lending would be transparent and hopefully the small scale and medium size enterprises would get more banking funds at favourable rates.''
The Small Industries Development Bank of India (SIDBI) is the principal financial institution for the promotion, financing and development of industry in the small scale sector and to co-ordinate the functions of the institutions engaged in the promotion and financing or developing industry in the small scale sector. NABARD has also undertaken similar initiatives focusing on rural enterprises.
Non-availability of skilled manpower is one of the key hurdles faced by MSME units and Mr. Mukherjee said that to promote skill development, the Prime Minister's Council on National Skill Development laid down the core governing principles for operating strategies for skill development. The Council has a mission of creating 50 crore skilled persons by 2020 and the National Skill Development Corporation which started functioning in October 2009, has targeted creating 15 crore skilled manpower.
“As a political entity, we have a responsibility to create awareness in the small scale sector and MSMEs. They are not aware of the facilities available to them. We should create an awareness campaign as the entire paradigm of development has changed and inclusive growth to participative growth,'' said Mr. Mukherjee.
via:HINDU
Speaking at a seminar organized by the Maharashtra Pradesh Congress Committee (MPCC) here on Tuesday, Union Finance Minister Pranab Mukherjee said the government was trying to remove obstacles in the growth path of the MSMEs.
“The Prime Minister's task force on MSME has submitted its report in January and has recommended an agenda for immediate action to cover all areas including credit, marketing, labour, technology, skill development and taxation. The Prime Minister's Council on MSME will now be regularly monitoring the implementation of the recommendations,'' he said.
It is estimated that in terms of value, the MSME sector accounts for about 45 per cent of the manufacturing output and around 40 per cent of the total exports of the country.
It employs an estimated 60 million people spread over 26 million registered and unregistered enterprises. There are 1.5 million registered units, out of which 95 per cent are micro enterprises and about 4.7 per cent are small enterprises.
However, unlike larger companies, the MSME sector does not have access to alternative avenues of raising capital, “despite its commendable contribution to the gross domestic product (GDP), exports and employment,'' he said.
The Finance Minister pointed out that there were a host of problems relating to registration and credit rating which needed to be sorted out before successful listing. “There has been a general grudge that commercial banks mainly give priority to the corporate sector with better credit rating and provide credit at below prime lending rates.
But with the switch over to lending on the basis of base rate from July 1, their lending would be transparent and hopefully the small scale and medium size enterprises would get more banking funds at favourable rates.''
The Small Industries Development Bank of India (SIDBI) is the principal financial institution for the promotion, financing and development of industry in the small scale sector and to co-ordinate the functions of the institutions engaged in the promotion and financing or developing industry in the small scale sector. NABARD has also undertaken similar initiatives focusing on rural enterprises.
Non-availability of skilled manpower is one of the key hurdles faced by MSME units and Mr. Mukherjee said that to promote skill development, the Prime Minister's Council on National Skill Development laid down the core governing principles for operating strategies for skill development. The Council has a mission of creating 50 crore skilled persons by 2020 and the National Skill Development Corporation which started functioning in October 2009, has targeted creating 15 crore skilled manpower.
“As a political entity, we have a responsibility to create awareness in the small scale sector and MSMEs. They are not aware of the facilities available to them. We should create an awareness campaign as the entire paradigm of development has changed and inclusive growth to participative growth,'' said Mr. Mukherjee.
via:HINDU
Tuesday, June 15, 2010
BOC India strikes all-time high on delisting plan
BOC India was locked at 20% upper limit at Rs 287.45 at 12:35 IST on BSE, after the company's overseas parent said it plans to delist equity shares of BOC India from the stock exchanges in India.
The company made this announcement during trading hours today, 15 June 2010.
The stock hit a high of Rs 287.45 so far during the day, which is a record high for the counter. The stock hit a low of Rs 239 so far during the day. The stock had it a 52-week low of Rs 140.05 on 6 July 2009.
The company's equity capital is Rs 85.28 crore. Face value per share is Rs 10.
Linde Holdings Netherlands, a part of the promoter group of BOC India, has proposed to voluntarily delist the equity shares of the BOC India from the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the Calcutta Stock Exchange (CSE). The total holding of the foreign parent in BOC India is 89.48%.
The delisting will be done in accordance with the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009. The floor price for the purpose of the delisting offer is Rs 225.29.
BOC India's net profit jumped 372.8% to Rs 23.83 crore on 61.4% rise in net sales to Rs 255.28 crore in Q1 March 2010 over Q1 March 2009.
The company made this announcement during trading hours today, 15 June 2010.
The stock hit a high of Rs 287.45 so far during the day, which is a record high for the counter. The stock hit a low of Rs 239 so far during the day. The stock had it a 52-week low of Rs 140.05 on 6 July 2009.
The company's equity capital is Rs 85.28 crore. Face value per share is Rs 10.
Linde Holdings Netherlands, a part of the promoter group of BOC India, has proposed to voluntarily delist the equity shares of the BOC India from the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the Calcutta Stock Exchange (CSE). The total holding of the foreign parent in BOC India is 89.48%.
The delisting will be done in accordance with the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009. The floor price for the purpose of the delisting offer is Rs 225.29.
BOC India's net profit jumped 372.8% to Rs 23.83 crore on 61.4% rise in net sales to Rs 255.28 crore in Q1 March 2010 over Q1 March 2009.
MMTC jumps 22% on bonus, stock-split plan
MMTC surged 22.3% to Rs 34,887 at 11:12 IST after the company said its board will consider bonus issue and stock split on 29 June 2010.
The stock hit a high of Rs 37,999 and a low of Rs 34,230.15 so far during the day. The stock had hit a 52-week high of Rs 40,000 on 14 December 2009 and a 52-week low of Rs 25,600 on 13 July 2009.
The large-cap state-run trading company has an equity capital of Rs 50 crore. Face value per share is Rs 10.
The board will also consider audited financial results for the year ended March 2010 on the same day.
MMTC's net profit rose 147.60% to Rs 98.95 crore on 253.50% increase in net sales to Rs 17230.05 crore in Q4 March 2010 over Q4 March 2009.
The stock hit a high of Rs 37,999 and a low of Rs 34,230.15 so far during the day. The stock had hit a 52-week high of Rs 40,000 on 14 December 2009 and a 52-week low of Rs 25,600 on 13 July 2009.
The large-cap state-run trading company has an equity capital of Rs 50 crore. Face value per share is Rs 10.
The board will also consider audited financial results for the year ended March 2010 on the same day.
MMTC's net profit rose 147.60% to Rs 98.95 crore on 253.50% increase in net sales to Rs 17230.05 crore in Q4 March 2010 over Q4 March 2009.
Godawari Power & Ispat (GPIL) Power & steel to lift numbers
15 Jun 2010, 0009 hrs IST,Abhineet Singh,ET Bureau
Godawari Power & Ispat (GPIL) is one of the few small-cap steel companies that have run ahead of the Sensex despite the recent correction in metal stocks. In the past one year, its stock price has appreciated by nearly 60% against a 15% rise in the Sensex during the period.
Raipur-based GPIL is an integrated steel manufacturer and has a dominant presence in the long-product segment, especially mild steel wires. Besides, the company produces sponge iron, steel billets and sells surplus power from its heat recovery-based power plant.
The stock is currently on a declining trend in line with the movement in steel stocks. However, the selloff doesn’t seem to be directly related to its financial performance, as the company continues to show a strong revenue and profit growth. In the March ’10 quarter, the company’s revenues were up 37% to Rs 254 crore while net profit jumped two-and-a-half times to Rs 22.6 crore.
Going forward, operating margins are expected to improve, as the company plans backward integration through mining of iron ore and coal.
It is also venturing into value-added steel products and is setting-up an iron ore pelletisation plant to convert ore fines into pellets, which can be used as a raw material for making sponge iron as replacement of sized-iron ore. The company is currently implementing a 0.6-million-tonne iron ore pelletisation plant at its existing unit and plans to set up a similar unit in a joint venture in Orissa.
The company is also focusing on efficiency improvement in its manufacturing operations. The company has achieved about a 75% recovery of waste heat from flue gas of sponge iron kiln and utilisation, which is nearly three times the industry average. This has enabled it to produce more power without incurring additional costs and has helped improve operating margins.
The company plans to set up a 2-mt cement plant at a cost of Rs 628 crore and has acquired 1,235 acres of land in Chhattisgarh. The company may need to raise debt to fund the project, which may stretch its balance sheet in the medium term.
At its current market price,(CMP=210) the stock is trading at a P/E multiple of around 11 and looks attractive. With a low debt on its book, the company can go for further capex without straining its finances. Improving margins in both steel and power segments will add to the earnings in the forthcoming quarters.
Via: E.T
Godawari Power & Ispat (GPIL) is one of the few small-cap steel companies that have run ahead of the Sensex despite the recent correction in metal stocks. In the past one year, its stock price has appreciated by nearly 60% against a 15% rise in the Sensex during the period.
Raipur-based GPIL is an integrated steel manufacturer and has a dominant presence in the long-product segment, especially mild steel wires. Besides, the company produces sponge iron, steel billets and sells surplus power from its heat recovery-based power plant.
The stock is currently on a declining trend in line with the movement in steel stocks. However, the selloff doesn’t seem to be directly related to its financial performance, as the company continues to show a strong revenue and profit growth. In the March ’10 quarter, the company’s revenues were up 37% to Rs 254 crore while net profit jumped two-and-a-half times to Rs 22.6 crore.
Going forward, operating margins are expected to improve, as the company plans backward integration through mining of iron ore and coal.
It is also venturing into value-added steel products and is setting-up an iron ore pelletisation plant to convert ore fines into pellets, which can be used as a raw material for making sponge iron as replacement of sized-iron ore. The company is currently implementing a 0.6-million-tonne iron ore pelletisation plant at its existing unit and plans to set up a similar unit in a joint venture in Orissa.
The company is also focusing on efficiency improvement in its manufacturing operations. The company has achieved about a 75% recovery of waste heat from flue gas of sponge iron kiln and utilisation, which is nearly three times the industry average. This has enabled it to produce more power without incurring additional costs and has helped improve operating margins.
The company plans to set up a 2-mt cement plant at a cost of Rs 628 crore and has acquired 1,235 acres of land in Chhattisgarh. The company may need to raise debt to fund the project, which may stretch its balance sheet in the medium term.
At its current market price,(CMP=210) the stock is trading at a P/E multiple of around 11 and looks attractive. With a low debt on its book, the company can go for further capex without straining its finances. Improving margins in both steel and power segments will add to the earnings in the forthcoming quarters.
Via: E.T
Sunday, May 23, 2010
Local content to shine in solar photo-voltaic projects
The Ministries of New and Renewable Energy (MNRE) and Power plan to make it mandatory for solar power developers to source crystalline silicon-based modules from domestic manufacturers.
However, they can import solar cells for manufacturing these modules for the photovoltaic (PV) projects.
This provision will be in the soon-to-be notified guidelines by the Ministries for implementation of the solar power projects under the Jawaharlal Nehru National Solar Mission (JNNSM).
An official source said, “This is to ensure that the domestic industry gets a boost. The decision has been taken after consultations with all the stakeholders. The intent is to encourage both new technology and the domestic manufacturing sector.” It is desirable that more units are set up in the country to allow competition in the first phase of the Mission (from November 2009-March 2013), the official said. In Phase I, the target is to set up 1,300 MW of solar power, out of which 1,100 MW will be grid-connected and 200 MW off-grid. Industry players such as Tata BP Solar and Moser Baer, that are manufacturers of cells as well as modules, have been expressing concern on allowing import of solar cells.
The players argue that there is enough cell capacity in India at present to cater to the requirement under Phase-I of the Mission.
Tata BP, Moser Baer, Indo Solar, XL Telecom & Energy and Solar Semiconductor have been traditionally manufacturing and exporting solar cells and modules to Europe, Japan and the US. The players are slated to have a total capacity of 750 MW by the year end.
Stating that all cell and modules produced in India are available for sale in India in line with the WTO agreement, the industry officials said, “Domestic manufacturers have no export obligation forcing them to sell abroad. If they have been selling abroad so far, it is because of the non-existence of a proper grid-connected solar market in India. Mandatory domestic content should not be limited only to Phase-I but for the entire JNNSM projects covering Phase II and Phase III as well. This will ensure that the Indian PV manufacturing capacity expands in line with the rising targets of the Mission.”
The Government will notify the guidelines for the next phases after the guidelines for the first phase are announced.
However, they can import solar cells for manufacturing these modules for the photovoltaic (PV) projects.
This provision will be in the soon-to-be notified guidelines by the Ministries for implementation of the solar power projects under the Jawaharlal Nehru National Solar Mission (JNNSM).
An official source said, “This is to ensure that the domestic industry gets a boost. The decision has been taken after consultations with all the stakeholders. The intent is to encourage both new technology and the domestic manufacturing sector.” It is desirable that more units are set up in the country to allow competition in the first phase of the Mission (from November 2009-March 2013), the official said. In Phase I, the target is to set up 1,300 MW of solar power, out of which 1,100 MW will be grid-connected and 200 MW off-grid. Industry players such as Tata BP Solar and Moser Baer, that are manufacturers of cells as well as modules, have been expressing concern on allowing import of solar cells.
The players argue that there is enough cell capacity in India at present to cater to the requirement under Phase-I of the Mission.
Tata BP, Moser Baer, Indo Solar, XL Telecom & Energy and Solar Semiconductor have been traditionally manufacturing and exporting solar cells and modules to Europe, Japan and the US. The players are slated to have a total capacity of 750 MW by the year end.
Stating that all cell and modules produced in India are available for sale in India in line with the WTO agreement, the industry officials said, “Domestic manufacturers have no export obligation forcing them to sell abroad. If they have been selling abroad so far, it is because of the non-existence of a proper grid-connected solar market in India. Mandatory domestic content should not be limited only to Phase-I but for the entire JNNSM projects covering Phase II and Phase III as well. This will ensure that the Indian PV manufacturing capacity expands in line with the rising targets of the Mission.”
The Government will notify the guidelines for the next phases after the guidelines for the first phase are announced.
SBI to lend Rs 20,000 cr for 3G funding
State Bank of India (SBI) will be lending Rs 20,000 crore for telecom companies to pay for licences for the Third Generation (3G) mobile services.
“The rate of interest will be decided in one-to-one talks with the operators to whom we will be lending,” said Mr O.P. Bhatt, Chairman, told newspersons after inaugurating a SBI branch at Rajiv Gandhi International Airport here on Saturday.
The 3G funding would impact the liquidity of the bank in a big way.
“As on March 31, 2010, we have Rs 40,000 crore liquidity. About 50 per cent of this would go for 3G funding,” Mr Bhatt said.
The telecom operators who won the licences for 3G bandwidth would have to pay about Rs 68,000 crore to the Government.
On the business focus, he said the first focus of the bank would be in retail – home loans and auto loans in particular – followed by the corporate sector. “We are expecting a 20 per cent credit growth this year,” he added.
“The rate of interest will be decided in one-to-one talks with the operators to whom we will be lending,” said Mr O.P. Bhatt, Chairman, told newspersons after inaugurating a SBI branch at Rajiv Gandhi International Airport here on Saturday.
The 3G funding would impact the liquidity of the bank in a big way.
“As on March 31, 2010, we have Rs 40,000 crore liquidity. About 50 per cent of this would go for 3G funding,” Mr Bhatt said.
The telecom operators who won the licences for 3G bandwidth would have to pay about Rs 68,000 crore to the Government.
On the business focus, he said the first focus of the bank would be in retail – home loans and auto loans in particular – followed by the corporate sector. “We are expecting a 20 per cent credit growth this year,” he added.
Insurers face Rs 450-crore hit
BS REPORTER / Mumbai May 23, 2010, 23:39 IST (Business Standard)
Private insurers led by Reliance General are expected to take a hit of around Rs 450 crore from the Air India Express plane crash in Mangalore. The companies had earned a premium of around Rs 110 crore from Air India this year.
This was the first time that private insurance companies had provided a comprehensive cover to the country's national carrier. Earlier, public sector players led by New India Assurance provided the cover.
Apart from Reliance General, HDFC Ergo, Iffco Tokio and Bajaj Allianz were part of the consortium. Like any large risk, the general insurance companies had reinsured the risk, with Sumitomo being the lead reinsurer, a first for the company. ICICI Lombard had also participated as a reinsurer.
Insurance industry sources said that the claim would arise from both hull and liability cover taken by the airline. Insurers and reinsurers are likely to see a claim of $90 million to $100 million (Rs 395 to 450 crore). The crash would lead to a hull loss of $50 million (Rs 225 crore). Though payout towards liability depends on the profile of the passengers, industry sources said it could be of the order of $40 million (Rs 180 crore).
When asked to comment, a company spokesperson said: “The Reliance General-led consortium is the insurer for Air India’s fleet of aircraft. However, as a policy, we do not comment on individual policy details or specific customer claims.”
Apart from the private players, General Insurance Corporation, the designated Indian reinsurer and the world’s fifth largest player in the aviation space, is also likely to face a hit. It had reinsured 14 per cent of the risk of $8.59 billion (around Rs 39,000 crore), while ICICI Lombard’s share was 3 per cent. A senior GIC executive said that the reinsurer's liability from the accident will be around $6 million (around Rs 27 crore).
Private insurers led by Reliance General are expected to take a hit of around Rs 450 crore from the Air India Express plane crash in Mangalore. The companies had earned a premium of around Rs 110 crore from Air India this year.
This was the first time that private insurance companies had provided a comprehensive cover to the country's national carrier. Earlier, public sector players led by New India Assurance provided the cover.
Apart from Reliance General, HDFC Ergo, Iffco Tokio and Bajaj Allianz were part of the consortium. Like any large risk, the general insurance companies had reinsured the risk, with Sumitomo being the lead reinsurer, a first for the company. ICICI Lombard had also participated as a reinsurer.
Insurance industry sources said that the claim would arise from both hull and liability cover taken by the airline. Insurers and reinsurers are likely to see a claim of $90 million to $100 million (Rs 395 to 450 crore). The crash would lead to a hull loss of $50 million (Rs 225 crore). Though payout towards liability depends on the profile of the passengers, industry sources said it could be of the order of $40 million (Rs 180 crore).
When asked to comment, a company spokesperson said: “The Reliance General-led consortium is the insurer for Air India’s fleet of aircraft. However, as a policy, we do not comment on individual policy details or specific customer claims.”
Apart from the private players, General Insurance Corporation, the designated Indian reinsurer and the world’s fifth largest player in the aviation space, is also likely to face a hit. It had reinsured 14 per cent of the risk of $8.59 billion (around Rs 39,000 crore), while ICICI Lombard’s share was 3 per cent. A senior GIC executive said that the reinsurer's liability from the accident will be around $6 million (around Rs 27 crore).
Monday, May 10, 2010
Four Indian state-run banks will get 15 billion rupees
dt: 10-may-2010
Four Indian state-run banks will probably get 15 billion rupees ($330 million) as part of their recapitalization, the Press Trust of India reported, citing unidentified people that it didn't identify. The government may give Vijaya Bank 7 billion rupees, while UCO Bank may get 3 billion rupees. Central Bank of India (CBOI IN) and United Bank of India may get 2.5 billion rupees each, the news agency said. No timeframe was given in the report.
The stocks of Vijaya Bank Ltd. gained 3 percent to 56.25 rupees. Uco climbed 2.2 percent to 71.85 rupees. Central Bank rose 1.1 percent to 149 rupees, while United Bank advanced 1.6 percent to 80.9 rupees. today
Four Indian state-run banks will probably get 15 billion rupees ($330 million) as part of their recapitalization, the Press Trust of India reported, citing unidentified people that it didn't identify. The government may give Vijaya Bank 7 billion rupees, while UCO Bank may get 3 billion rupees. Central Bank of India (CBOI IN) and United Bank of India may get 2.5 billion rupees each, the news agency said. No timeframe was given in the report.
The stocks of Vijaya Bank Ltd. gained 3 percent to 56.25 rupees. Uco climbed 2.2 percent to 71.85 rupees. Central Bank rose 1.1 percent to 149 rupees, while United Bank advanced 1.6 percent to 80.9 rupees. today
Friday, April 16, 2010
Gold adulteration with Iridium & Ruthenium
Your wedding jewellery may not be as pure or as precious as you think it is. Goldsmiths across India have taken to adulterating the precious metal
with iridium and ruthenium, and are getting away with it, as until recently the metals failed to show up on all purity checks. It's an alchemist's dream, and the practice is becoming increasingly commonplace if you go by the stocks of the 'duplicate' metals at even the smallest of karigar workshops.
Both iridium and ruthenium belong to the platinum family of metals, and when mixed with gold, do not form an alloy but sit tight in the yellow metal. What makes the adulteration even more alarming is that the metals do not replace silver and copper, which are added to the gold during the jewellery-making process to harden the soft, malleable yellow metal. As Saumen Bhaumik, general manager (Retailing) at Tanishq put it, ''The two metals manage to camouflage as gold.''
TOI tested three pieces of jewellery, and all had some amount of either iridium or ruthenium lurking inconspicuously with the gold. A 22-carat gold bangle bought in 2003 from a century-and-a-half-old jeweller—who has since then expanded from Mumbai to other parts of the country—when tested at the Indian Institute of Technology-Bombay, had 3% iridium in it. A gold chain bought from a shop in Bangalore in 2002 when tested at another city-based centre had 2.39% ruthenium, while a pair of earrings from Kerala was found to be adulterated with 4.65% of iridium.
On an average, a piece of jewellery or a bar of gold contains nearly 5-6% of the adulterant, and manufacturers—wholesalers and retailers across India—are aware of how rampant this notorious practice is. Consumers, however, are the biggest losers as they have been kept in the dark. ''Most machine-made jewellery contain these adulterants. Overnight, these manufacturers hit the jackpot,'' said Suresh Hundia, president of The Bombay Bullion Association (BBA).
The situation came to head when several refineries across India noticed that the gold bought from the market, which when melted, contained a high percentage of adulterants. ''Some refineries complained that a blackish substance kept floating in the aqua regia (mixture of hydrochloric acid and nitric acid, which can dissolve gold). Moreover, if they bought 1kg of gold, they were losing 50-60gm after refinement. At the time, they didn't know where the rest of the gold was getting lost,'' said a Bureau of Indian Standards (BIS) official.
The practice was especially rampant between 2004 and 2006, when there were few checks and balances. Traditional jewellers who checked the purity of gold by rubbing it on a touch-stone, said Bhavesh Sonawala from National Refineries Private Limited, ''had no clue about either iridium or ruthenium''. There was also very little awareness on hallmarking. (Hallmark is a purity certification of gold articles in accordance with Indian Standard specifications.) To add to the problem, XRF machines that are used to test the purity of gold were not calibrated to identify iridium and ruthenium. It was only after an alert from the trading community that BIS conducted a survey in markets across the country and found an extensive use of iridium and ruthenium in gold. ''In 2006, we issued a circular to all hallmarking centres to re-calibrate their XRF machines to look for iridium and ruthenium,'' said the BIS official. The results of this survey were never made public. That is when the BBA also started checking for iridium and ruthenium ''So, even hallmarked gold sold between 2001 and 2006 could be of dodgy quality,'' said a member of city-based hallmarking centre.
Several jewellers believe that the damage has already been done. During this period, tonnes of gold had already exchanged hands and consumers were unknowingly investing in 'spurious' jewellery.
By then, the word had spread, and the demand for iridium and ruthenium began to climb. When plotted on a graph, prices of gold, iridium and ruthenium could be seen moving along the same path. For instance, on January 12, 2004, international rate for gold stood at $142.56 for 10gm; the same quantity of iridium was priced at $27.97 and ruthenium at $13.83. In two months, iridium shot up to $73.95 and ruthenium was selling at $21.86—both for 10gm each. All the three metals touched their all time high in February-March 2007; gold was priced at $311.44, iridium was $144.69 and ruthenium was being sold at $273.3.
''This was largely because there was an unprecedented demand for both iridium and ruthenium from all kinds of people dealing in gold across India,'' explained B H Mehta, proprietor of Varsha Bullion and Elemental Analab Hallmarking centre, a Bureau of Indian Standards (BIS)-approved hallmarking centre.
Even now, as per data from the BBA, only 46% of gold sold in India is hallmarked; the percentage is even lower in tier two cities and villages, which make up close to 70% of India's gold consumption. It is paradoxical, but both iridium and ruthenium have now become such high-priced substances that buyers get both these adulterants tested too, just to ensure that the metals are not adulterated with another cheaper substance.
with iridium and ruthenium, and are getting away with it, as until recently the metals failed to show up on all purity checks. It's an alchemist's dream, and the practice is becoming increasingly commonplace if you go by the stocks of the 'duplicate' metals at even the smallest of karigar workshops.
Both iridium and ruthenium belong to the platinum family of metals, and when mixed with gold, do not form an alloy but sit tight in the yellow metal. What makes the adulteration even more alarming is that the metals do not replace silver and copper, which are added to the gold during the jewellery-making process to harden the soft, malleable yellow metal. As Saumen Bhaumik, general manager (Retailing) at Tanishq put it, ''The two metals manage to camouflage as gold.''
TOI tested three pieces of jewellery, and all had some amount of either iridium or ruthenium lurking inconspicuously with the gold. A 22-carat gold bangle bought in 2003 from a century-and-a-half-old jeweller—who has since then expanded from Mumbai to other parts of the country—when tested at the Indian Institute of Technology-Bombay, had 3% iridium in it. A gold chain bought from a shop in Bangalore in 2002 when tested at another city-based centre had 2.39% ruthenium, while a pair of earrings from Kerala was found to be adulterated with 4.65% of iridium.
On an average, a piece of jewellery or a bar of gold contains nearly 5-6% of the adulterant, and manufacturers—wholesalers and retailers across India—are aware of how rampant this notorious practice is. Consumers, however, are the biggest losers as they have been kept in the dark. ''Most machine-made jewellery contain these adulterants. Overnight, these manufacturers hit the jackpot,'' said Suresh Hundia, president of The Bombay Bullion Association (BBA).
The situation came to head when several refineries across India noticed that the gold bought from the market, which when melted, contained a high percentage of adulterants. ''Some refineries complained that a blackish substance kept floating in the aqua regia (mixture of hydrochloric acid and nitric acid, which can dissolve gold). Moreover, if they bought 1kg of gold, they were losing 50-60gm after refinement. At the time, they didn't know where the rest of the gold was getting lost,'' said a Bureau of Indian Standards (BIS) official.
The practice was especially rampant between 2004 and 2006, when there were few checks and balances. Traditional jewellers who checked the purity of gold by rubbing it on a touch-stone, said Bhavesh Sonawala from National Refineries Private Limited, ''had no clue about either iridium or ruthenium''. There was also very little awareness on hallmarking. (Hallmark is a purity certification of gold articles in accordance with Indian Standard specifications.) To add to the problem, XRF machines that are used to test the purity of gold were not calibrated to identify iridium and ruthenium. It was only after an alert from the trading community that BIS conducted a survey in markets across the country and found an extensive use of iridium and ruthenium in gold. ''In 2006, we issued a circular to all hallmarking centres to re-calibrate their XRF machines to look for iridium and ruthenium,'' said the BIS official. The results of this survey were never made public. That is when the BBA also started checking for iridium and ruthenium ''So, even hallmarked gold sold between 2001 and 2006 could be of dodgy quality,'' said a member of city-based hallmarking centre.
Several jewellers believe that the damage has already been done. During this period, tonnes of gold had already exchanged hands and consumers were unknowingly investing in 'spurious' jewellery.
By then, the word had spread, and the demand for iridium and ruthenium began to climb. When plotted on a graph, prices of gold, iridium and ruthenium could be seen moving along the same path. For instance, on January 12, 2004, international rate for gold stood at $142.56 for 10gm; the same quantity of iridium was priced at $27.97 and ruthenium at $13.83. In two months, iridium shot up to $73.95 and ruthenium was selling at $21.86—both for 10gm each. All the three metals touched their all time high in February-March 2007; gold was priced at $311.44, iridium was $144.69 and ruthenium was being sold at $273.3.
''This was largely because there was an unprecedented demand for both iridium and ruthenium from all kinds of people dealing in gold across India,'' explained B H Mehta, proprietor of Varsha Bullion and Elemental Analab Hallmarking centre, a Bureau of Indian Standards (BIS)-approved hallmarking centre.
Even now, as per data from the BBA, only 46% of gold sold in India is hallmarked; the percentage is even lower in tier two cities and villages, which make up close to 70% of India's gold consumption. It is paradoxical, but both iridium and ruthenium have now become such high-priced substances that buyers get both these adulterants tested too, just to ensure that the metals are not adulterated with another cheaper substance.
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