NEWS – FEBRUARY 2008
- Rel, Tata seek to raise power tariff
The Economic Times, February 01, 2008 - Steel prices hiked prices by up to Rs 2,500/t
The Business Line, February 02, 2008 - ‘Private players may be allowed as pension fund managers’
The Business Line, February 02, 2008 - Orissa, first driver of power reforms, takes a backseat
The Financial Express, February 03, 2008 - The need for a proper regulatory body
Business Standard, February 04, 2008 - Low cost carriers under MRTPC lens
The Business Line, February 05, 2008 - Debate needed on energy pricing policies: PM
The Indian Express, Thursday, February 07, 2008 - Meet on Competition Act highlights industry concerns
The Business Line, February 07, 2008 - Revisiting bank regulation to deal with failures
The Economic Times, February 07, 2008 - Apex power regulator without head for a year
Business Standard, February 08, 2008 - Hoda panel report on inspector raj soon
Financial Express, February 08, 2008 - President clears forward contracts amendment ordinance
The Business Line, February 09, 2008 - New drug policy may not widen price control list
The Economic Times, February 09, 2008 - DoT backs 2G spectrum auction
The Economic Times, February 09, 2008 - User fees, airport charges make flying a costly affair
The Economic Times, February 09, 2008 - Compete on un-level playing field, PM tells biz leaders
The Business Line, February 10, 2008 - TRAI may set FDI norms for broadcasting, cable services
The Business Line, February 10, 2008 - Budget likely to ease merger of private airlines
The Business Line, February 10, 2008 - Net telephony stays free as law ministry rejects Trai proposal
Financial Express, February 11, 2008 - Teri summits: more talks less action
Financial Express, February 11, 2008 - Bid to strengthen power grievance redress system
The Hindu, Tuesday, February 12, 2008 - Regulate the regulators to ensure higher standards
The Economic Times, February 13, 2008 - State Govts queue up for a broadcast show
The Business Line, February 14, 2008 - Rollback of steel prices difficult, say producers
The Business Line, Thursday, February 14, 2008 - Petrol price goes up by Rs 2, diesel Re 1
The Business Line, Friday, February 15, 2008 - Steel cos to roll back prices
The Business Line, February 15, 2008 - New Company Law Bill to be introduced in budget session
The Hindu, Sunday, February 17, 2008 - Auction of spectrum legally possible, says Finance Ministry
The Business Line, February 17, 2008 - The call of competition
The Business Line, February 18, 2008 - Bharti overtakes BSNL in NLD segment
The Business Line, February 19, 2008 - Ranbaxy to challenge order in transfer pricing case
The Financial Express, February 21, 2008 - Allow FM radio channels to broadcast news: TRAI
The Financial Express, February 22, 2008 - HDFC, CBoP OK 1:29 swap ratio for merger
The Financial Express, February 25, 2008 - Consumer-driven NPPA web to snare errant drug cos
The Economic Times, February 29, 2008
Rel, Tata seek to raise power tariff
The Economic Times, February 01, 2008
Reliance Energy, Tata Power and BEST have sought Maharashtra Electricity Regulator Commissions (MERC) approval to hike power tariff in their respective distribution areas in the state. The proposal to increase tariff by 10-15%, if approved, will hit consumers in Mumbai and across the state. The utilities submitted their proposals during the second week of January, and MERC will begin public hearing soon. The move comes after state owned utility Maha Vitran sought MERC nod to raise tariffs.
Steel prices hiked prices by up to Rs 2,500/t
The Business Line, February 02, 2008
ajor domestic steel producers have increased prices by up to Rs 2,500 per tonne across various products. This is the second time that steel manufacturers have revisited prices in as many months. In January, while the public sector companies increased prices by Rs 500 to Rs 1,500 per tonne, private companies hiked prices by Rs 500 to Rs 1,000 per tonne.
‘Private players may be allowed as pension fund managers’
The Business Line, February 02, 2008
Private players may be allowed to operate as pension fund managers, Mr D. Swarup, Chairman of the Pension Fund Regulatory Development Authority (PFRDA), said on Friday. But this development would take place once the PFRDA Bill is passed by Parliament, he added. Under the New Pension Scheme, the pension fund regulator has already appointed State Bank of India (SBI), UTI Asset Management Company (UTI-AMC) and the Life Insurance Corporation (LIC) as pension fund managers through a competitive bidding process.
Orissa, first driver of power reforms, takes a backseat
The Financial Express, Sunday, February 03, 2008
After over a decade since Orissa pioneered power sector reforms in the country, the state is struggling to stabilise the process. A cause for worry is that the state government itself seems reluctant to put in place the reform process. The state government owns the Orissa Power Transmission Corporation Ltd (OPTCL) and the Orissa Hydro Power Corporation Ltd (OHPC), two key players. However, the way the two utilities are being managed has become a matter of concern.
The need for a proper regulatory body
Business Standard, February 04, 2008
An overview of Indian regulations and regulators highlights the absence of a proper regulatory philosophy, coupled with an ad-hoc approach, based often on short-term considerations. A regulatory body is created under a statute, thereby making the regulator autonomous, but accountable to the legislature. The regulations have to be structured and enforced in a manner that is in public interest, aiming to create an effective regulatory and policy environment.
Low cost carriers under MRTPC lens
The Business Line, February 05, 2008
Cracking its whip on low-cost airlines, the Monopolies and Restrictive Trade Practices Commission (MRTPC) has initiated an investigation on possible cartelisation by such carriers. Taking a suo motu action, MRTPC has directed its investigative arm Directorate General of Investigation and Registration (DGIR) to probe the role of carriers along with their umbrella organisation, Federation of Indian Airlines (FIA), in fixing air ticket fares.
Debate needed on energy pricing policies: PM
The Indian Express, February 07, 2008
Concerned over ‘distortions’ that have crept into the country’s energy pricing policies, Prime Minister Manmohan Singh on Thursday said a national debate was needed on the issue. “Can we afford to persist with the distortions that have long crept into our energy pricing policies? Are we contributing to environmental degradation through some of our energy pricing policies? he asked at the Delhi Sustainable Development Summit in New Delhi.
Meet on Competition Act highlights industry concerns
The Business Line, February 07, 2008
Cartels and monopolies do exist in the Indian economy in various sectors, Mr Prem Chand Gupta, Union Minister of Corporate Affairs, said while addressing a conference on the Competition Act organised by the Bombay Chamber of Commerce & Industry on Wednesday. The sectors the Minister mentioned in this context were cement, tyre, transportation and civil aviation.
Revisiting bank regulation to deal with failures
The Economic Times, February 07, 2008
How to deal with bank failures — and how to prevent these in the first place — remain important concerns despite decades of experience with bank regulation. Closing down a failed bank is the most unattractive option in dealing with bank failure. Banks have huge informational capital that is lost when a bank is liquidated. That is why bank liquidation is far less common than bank rescue — a 1995 study showed that 73 out of 105 failing banks were rescued, only 31 were liquidated.
Apex power regulator without head for a year
Business Standard, February 08, 2008
The power regulator’s office may have been functioning “normally” without a chairperson for almost a year, but industry executives see this as the Central government’s lack of seriousness towards the body and the power sector. The last chairperson of the Central Electricity Regulatory Commission, Ashok Basu, demitted office in March 2007 but the government has not been able to find someone for the post.
Hoda panel report on inspector raj soon
The Financial Express, February 08, 2008
A committee headed by Planning Commission member Anwarul Hoda is expected to submit its report on reforming ‘inspector raj’ to the Prime Minister’s Office (PMO) soon. “The committee has almost formalised the report and is expected to submit the report to PMO soon,” a senior official of the department of industrial policy and promotion (DIPP) said.
President clears forward contracts amendment ordinance
The Business Line, February 09, 2008
The Forward Contracts (Regulation) Amendment Ordinance to provide autonomous status to the commodity market regulator Forward Markets Commission (FMC) has been promulgated by the President, Ms Pratibha Patil. With the enactment of the ordinance, the FMC will now have ‘search and seizure’ rights, besides power to levy penalty, regulate intermediaries such as collateral manager, a clearing house, introduce options trading and derecognise and supersede associations.
New drug policy may not widen price control list
The Economic Times, February 09, 2008
Drug makers worrying about a possible widening of government control over drug prices in the new pharmaceutical policy under consideration may get some relief. A ministerial panel reviewing the new drug policy is likely to decide against expanding the scope of price controls in the sector beyond the current level. It is likely to keep the share of price controlled brands in the market at the current level of about 20% to 25%.
DoT backs 2G spectrum auction
The Economic Times, February 09, 2008
Now, the Department of Telecommunications (DoT) is willing to try out auctions, but only for allocation of additional chunks of spectrum to existing players. It still wants to stick to the traditional, administrative method for allocating the initial chunk of spectrum that an operator would get along with the operating license.
User fees, airport charges make flying a costly affair
The Economic Times, February 09, 2008
Expectations of air travellers that privatisation of Indian airports will bring in efficiency and make air travel cheaper seem to be completely misplaced. User fees and recovery of infrastructure charges by concessionaires on fuel, baggage handling will be passed on to passengers, thereby increasing the cost of air travel.
Compete on un-level playing field, PM tells biz leaders
The Business Line, February 10, 2008
The Prime Minister, Dr Manmohan Singh, has said business leaders must learn to play on the pitch they were given, and urged them to compete on un-level playing fields and prove themselves. Speaking at the Mahindra United World College of India (MUWCI) here on Saturday, Dr Singh said that boys and girls from modest social and economic backgrounds who secured admissions in the best institutions of the world had shaped the image of Brand India across the globe.
TRAI may set FDI norms for broadcasting, cable services
The Business Line, February 10, 2008
The telecom regulator is all set to prescribe FDI norms for all broadcasting and cable services, including Direct to Home and Cable services. TRAI will be issuing a consultation paper within the next fortnight calling for stakeholders’ views on FDI norms in broadcasting and cable services. It hopes to review existing norms, debating the merits of setting uniform FDI and FII levels, and to discuss whether these should be uniform across segments or whether sub-segments should be identified to create level playing fields for services across platforms and technologies.
Budget likely to ease merger of private airlines
The Business Line, February 10, 2008
Budget 2008-09 may come up with fiscal measures to encourage consolidation among private players in the domestic aviation sector. Indications are that the Government would make available the benefits of carry-forward and set-off of accumulated losses and unabsorbed depreciation to private-sector airline operators going in for a merger with other such entities.
Net telephony stays free as law ministry rejects Trai proposal
The Financial Express, February 11, 2008
You can keep using the likes of Skype, Yahoo and MSN to make free international calls as the law ministry has rejected a Telecom Regulatory Authority of India (Trai) proposal that foreign Internet telephony firms be made to register in India, seek permission from the department of telecommunications (DoT) and host their websites in the country.
Teri summits: more talks less action
The Financial Express, February 11, 2008
Despite of all the round table discussions, the deadlock between the developing and the developed nations over the greenhouse gas emission reduction issue continues. The Energy and Resources Institute (Teri)’s Delhi Sustainable Development Summit (DSDS) recently invited a high-level delegation comprising heads of states, environment ministers, government officials and representatives from top corporates to chalk out a concrete strategy, mitigating the impact of climate change. However, no consensus could be reached.
Bid to strengthen power grievance redress system
The Hindu, February 12, 2008
To reach out to consumers in its area of operation, power distribution company BSES is trying to strengthen its grievance redress mechanism. The company has launched a new initiative — Bijli Vivad Samadhan Samiti — to address the grievances of consumers. These samitis would be constituted in all 19 divisions of BSES Rajdhani Power (BRPL) Limited. To be headed by a retired judge or eminent public figure and assisted by senior BSES officials, these cells will offer a platform for consumers with a grievance.
Regulate the regulators to ensure higher standards
The Economic Times, February 13, 2008
Generally it is said that market failure is so common that governments must intervene with regulations to protect the public. Actually, regulations are required even when there is no market failure. Competition needs to take place within a framework of rules, otherwise the mafia will triumph everywhere by virtue of competitiveness in violence. We do not want polluters, adulterators and crooks to have a competitive advantage over others. Hence regulation and regulators are an inescapable part of any liberal democracy. However, regulatory failure is as common as market failure.
State Govts queue up for a broadcast show
The Business Line, February 14, 2008
After political parties, it is State Governments that are now smitten by the broadcast bug. The glamour, power and reach of media today has induced a host of State Governments – from Delhi and Punjab to Tamil Nadu and Andhra Pradesh – to line up before the Ministry of Information and Broadcasting for launching radio and cable TV ventures. The Ministry has so far received requests from Delhi Government wanting to start a radio channel and from the Tamil Nadu Government to set up a multi-system operator (MSO)/cable distribution network.
Rollback of steel prices difficult, say producers
The Business Line, February 14, 2008
The major domestic steel producers feel that the possibility of a roll back of the prices looks difficult in the current scenario of spiraling input costs. It is learnt that the Steel Ministry has called for another meeting with the major producers on the issue on Thursday. The first meeting between Ministry officials and the major producers was held on Tuesday when the industry representatives presented their reasons on the recent increase in prices.
Petrol price goes up by Rs 2, diesel Re 1
The Business Line, February 15, 2008
The timing could not have been more perfect, a Valentine’s Day gift for state-owned oil marketing companies (OMCs). The Government, after several weeks of dilly-dallying, on Thursday decided to hike the retail selling prices of petrol and diesel by Rs 2 and Re 1 a litre, respectively, effective Thursday midnight. The decision will benefit oil companies by Rs 840 crore in value terms for the remaining part of the current fiscal.
Steel cos to roll back prices
The Business Line, February 15, 2008
After raising prices in the first week of February, major domestic steel producers have agreed to a partial roll-back in the prices of thermo mechanically treated (TMT) bars and rounds by Rs 1,000 per tonne and hot-rolled (HR) coils by Rs 500 per tonne with immediate effect. The roll-back decision came after a meeting between the major producers and the Union Minister for Steel, Chemicals and Fertilisers, Mr Ram Vilas Paswan, on Thursday. Steel producers had a meeting with Ministry officials on Tuesday, but that meeting remained inconclusive.
New Company Law Bill to be introduced in budget session
The Hindu, February 17, 2008
The New Company Law Bill, undergoing finishing touches, will be introduced in the budget session of Parliament, Corporate Affairs Minister, Shri Prem Chand Gupta said on Saturday. Addressing the plenary session on ‘The corporate affairs of India: The way forward’ at the Federation of Indian Chambers of Commerce and Industry’s (FICCI) annual general meeting, Mr. Gupta said: “The new law will promote shareholders’ democracy, replace the ‘approval-based system’ with a system of responsible disclosures, promote good corporate governance and effective protection of investors.”
Auction of spectrum legally possible, says Finance Ministry
The Business Line, February 17, 2008
The Union Finance Ministry has told the Department of Telecom that allocating spectrum through an auction process was legally possible. The opinion of the Finance Ministry is in contrast to the stand taken by the Communication Ministry, which had earlier ruled out auction on the grounds that it was illegal.
The call of competition
The Business Line, Monday, February 18, 2008
This one seems to be a David versus Goliath confrontation in the making yet again. The only difference is that there are many Davids and Goliaths in this story. The battle this time is between the existing large pan-Indian operators such as Bharti Airtel, and six new companies that have been recently given letters of intent (LoIs) for new telecom licences. Soon after receiving the LoIs, these six companies — Spice Telecom, Shyam Telelink, BPL, Videocon, Swan and Unitech — declared war on the incumbents, to grab a larger share of the booming cellular market in the country.
Bharti overtakes BSNL in NLD segment
The Business Line, February 19, 2008
One more bastion held for long by a Government owned company has fallen to the private operator. Bharti Airtel has overtaken State-run Bharat Sanchar Nigam Ltd as the largest national long distance service provider in terms of revenue. According to a report from the Telecom Regulatory Authority of India, Bharti is now the largest STD service provider with revenues of Rs 709 crore during the quarter ending December 2007.
Ranbaxy to challenge order in transfer pricing case
The Financial Express, February 21, 2008
Pharma major Ranbaxy Laboratories will move the Delhi High Court against the Income Tax Appellate Tribunal order relating to an under-assessment of income to the tune of Rs 224.5 crore in a transfer pricing case. The ITAT while rejecting the contention of Ranbaxy maintained that the company had under-assessed its income by the said amount during 2004-05 by not pricing appropriately goods and services sold to sister concerns abroad.
Allow FM radio channels to broadcast news: TRAI
The Financial Express, February 22, 2008
Broadcast regulator TRAI recommended that FM radio operators should be allowed to broadcast news and suggested increase in Foreign Direct Investment (FDI) to up to 49 per cent. At present, there is a 20 per cent ceiling on FDI in FM radio space and TRAI recommended that 26 per cent foreign investment can be allowed in radio channels that want to broadcast news and 49 per cent in non-news FM stations.
HDFC, CBoP OK 1:29 swap ratio for merger
The Financial Express, February 25, 2008
Paving the way for the creation of the country’s largest private sector bank in terms of branch network, the boards of HDFC Bank and Centurion Bank of Punjab (CBoP) today approved the share swap ratio 1:29 for their proposed merger. This means for every 29 shares of Re 1 each held in Centurion Bank of Punjab, the country’s fourth largest private sector bank, a shareholder will receive one share of Rs 10 of HDFC Bank, the second largest lender in private sector.
Consumer-driven NPPA web to snare errant drug cos
The Economic Times, February 29, 2008
Chemicals and fertilisers minister Ram Vilas Paswan on Thursday started a new online initiative aimed at resolving customer complaints on medicines. Under the initiative, consumers would be able to file complaints against an individual or an organisation through the price watchdog National Pharmaceutical Pricing Authority (NPPA) Website. Based on this, the authority would initiate action within 30 days. “Those consumers whose complaints are found to be genuine would also get cash reward of Rs 1000,” Mr Paswan said here at a function.