NEWS – May 2008
- Liberalised airports policy
The Hindu, Friday, May 02, 2008 - Cement price control under Govt consideration
Business Line, Friday, May 02, 2008 - TRAI wants review of Wi-Max policy
Business Line, Saturday, May 03, 2008 - DoT skews 3G licence rules to biggies’ favour
Financial Express, Monday, May 05, 2008 - Rethinking regulation
Business Standard, Monday, May 05, 2008 - IPO scam: Appellate tribunal sets aside SEBI order on Karvy
Business Line, Tuesday, May 06, 2008 - Infra development onus to remain with govt agencies
Financial Express, Wednesday, May 07, 2008 - We’ll hold margins, cement cos tell Govt
Business Line, Wednesday, May 07, 2008 - Govt mulls proposal to scrap licence fees for landline firms
Business Standard, Friday, May 09, 2008 - Centre would launch de-hoarding drive to curb prices
Financial Express, Friday, May 09, 2008 - New exit scheme mooted for quick disposal of insolvency cases
Business Line, Sunday, May 11, 2008 - Govt to seek annual fee from successful bidders of non-metro airports
Business Line, Monday, May 12, 2008 - TRAI move to open up internet telephony within India
Business Line, Tuesday, May 13, 2008 - Pharma cos with R&D focus may get leeway in pricing
Business Line, Wednesday, May 14, 2008 - DoT wants global 3G bids, to reject TRAI’s proposal
Economic Times, Thursday, May 15, 2008 - MRTPC can’t tell bodies to allot plots: SC
Economic Times, Friday, May 16, 2008 - HC issues notice to govt for filling vacant posts of power tribunal
Business Standard, Monday, May 19, 2008 - Power import policy coming
The Hindu, Monday, May 19, 2008 - Competitive pay for CCI brass may have to wait
Economic Times, Monday, May 19, 2008 - State-run firms in metros to sell only costlier petrol, diesel
The Hindu, Tuesday, May 20, 2008 - SEBI puts on hold upfront margin plan for institution: SC
Business Line, Friday, May 23, 2008 - MRTPC to probe ICICI Bank cheque clearing
Economic Times, Saturday, May 24, 2008 - Telecom industry calls for new convergence policy
Business Line, Sunday, May 25, 2008 - UP mulling Industry Facilitation Act
Business Standard, Monday, May 26, 2008 - Govt may levy cess to bail out oil cos
Financial Express, Tuesday, May 27, 2008 - TRAI cautions DoT against overriding regulatory procedures
Business Line, Wednesday, May 28, 2008 - Trai initiates consultation process to create revenue share for VAS
Financial Express, Thursday, May 29, 2008 - RBI revises funding norms in subsidiaries
Financial Express, Saturday, May 31, 2008
Liberalised airports policy
The Hindu, Friday, May 02, 2008
The policy framework for the development of new airports announced by Union Civil Aviation Minister Praful Patel addresses several critical issues debated in the recent past. They include the question of cities having two airports which came into focus in the context of the ongoing projects in Hyderabad and Bangalore. The policy also seeks to give a new impetus to the setting up of private airports and heliports by empowering the Civil Aviation Ministry and the Directorate General of Civil Aviation (DGCA) to clear the proposals — they need not go up to the Cabinet any longer.
Cement price control under Govt consideration
Business Line, Friday, May 02, 2008
Serious in its intent to rein-in cement prices, the Government is contemplating using a practically abandoned provision of the Industries (Development and Regulation) Act, 1951, which empowers it to regulate prices and supplies of industrial commodities. This provision, Section 18G, continues to be on the statute books but has not been used for almost 19 years after a Cabinet decision in 1989 not to invoke it.
TRAI wants review of Wi-Max policy
Business Line, Saturday, May 03, 2008
In a move that could further delay the introduction of broadband wireless services based on technologies such as Wi-Max, the Telecom Regulatory Authority of India (TRAI) has proposed a review on the spectrum allocation issues, including higher pricing. The review is aimed at bringing some parity between norms governing 3G mobile services and broadband wireless services.
DoT skews 3G licence rules to biggies’ favour
Financial Express, Monday, May 05, 2008
It could be curtains for the clutch of new telecom Companies planning to bid for 3G licences. The draft auction plan, prepared by the department of telecommunications for each circle, puts the new and smaller players at a disadvantage. The department will auction five licences for each circle. Companies planning to bid for the 3G licences include NTT.
Rethinking regulation
Business Standard, Monday, May 05, 2008
Conventional theory has it that the road to nirvana lies in removing everyday regulation of a sector from the country’s political masters and handing it over to independent regulators — they’ll be independent enough to take tough decisions like hiking tariffs if need be and will also ensure that service providers don’t fleece consumers. But much of this is simply not true, and in several cases, independent regulators have been as bad, if not worse, than the political dispensation they sought to replace. In any case, since they are all political appointees, perhaps expecting them to be genuinely independent was naïve.
IPO scam: Appellate tribunal sets aside SEBI order on Karvy
Business Line, Tuesday, May 06, 2008
The Securities Appellate Tribunal has set aside SEBI’s disgorgement order on Karvy Stock Broking Ltd in the IPO allotment case. This is in line with SAT’s November 2007 order setting aside the same disgorgement order on nine other entities, including National Securities Depositories Ltd. SAT said that SEBI, in its ex-parte order of November 2006, has violated the principles of natural justice in not calling upon the appellant to show cause why it should not be ordered to disgorge the amount determined in the order.
Infra development onus to remain with govt agencies
Financial Express, Wednesday, May 07, 2008
The government will continue to shoulder the bulk of the investment required for the infrastructure sector, even though it hopes that the private sector would pitch in significantly. “It is our belief and experience that the bulk of the resources for infrastructure would still have to be found through the public sector,” finance minister P Chidambaram said on Tuesday. However the main role of the Asian Development Bank (ADB) as a multilateral development bank should not be diluted by its over-emphasis on non-sovereign loans at the cost of sovereign loans, the minister noted while addressing the annual general meeting of the ADB in Spain.
We’ll hold margins, cement cos tell Govt
Business Line, Wednesday, May 07, 2008
Major cement producers have assured the Government that they would hold their margins to help control inflation but have also asked the Government to facilitate their capacity expansion plans. “The industry pointed out several bottlenecks like delay in obtaining licences for mining limestone, forest clearance, coal linkages and we will clear them. But we have also extracted assurance from the industry that they will hold their margins,” said Mr Ashwani Kumar, the Minister of State for Industry.
Govt mulls proposal to scrap licence fees for landline firms
Business Standard, Friday, May 09, 2008
Two months after the access deficit charge scheme, which compensated Bharat Sanchar Nigam Ltd (BSNL) for its loss-making rural telephony operations, was phased out, the Telecom Commission today discussed a proposal to waive in perpetuity the annual revenue share (licence fee) to be paid by fixed-line service providers in the country. The proposal is aimed at arresting the decline in wire line services growth and spur availability of broadband internet access across the country. The move has been high on the agenda of Communications Minister A Raja for some time now.
Centre would launch de-hoarding drive to curb prices
Financial Express, Friday, May 09, 2008
Expressing concern over the steep rise in the rate of Inflation, Union Minister of State for Industry Ashwani Kumar on Friday revealed that union government with the help of respective state governments would launch a massive de-hoarding drive to control the price rise. “The Prime Minister has already written all Chief Ministers on the De-hoarding drive and steps will be taken to bridge the gap between the whole sale price and retail price to curtail artificial shortage of products in market”, Minister said in Jalandhar adding that Industrialists were told to cooperate with the government and if they would not, government was empowered by the law to take strict action under Essential Commodity Act and Industrial Development Regulation Act to take steps to forcibly regulate the prices.
New exit scheme mooted for quick disposal of insolvency cases
Business Line, Sunday, May 11, 2008
Efficient Exit Scheme (EES) is the new concept proposed by the Corporate Affairs Ministry for quick disposal of liquidation cases. In order to overcome delays in resolving insolvency issues, the Ministry has initiated administrative steps to prepare itself for the scheme, while legislative changes are awaited. A senior official of the Corporate Affairs Ministry said that “initiatives have been taken to strengthen and modernise the offices of official liquidators (OLs), capacity building of existing OLs, computerisation of OLs operations to increase effectiveness, and introduction of e-governance in winding-up process.”
Govt to seek annual fee from successful bidders of non-metro airports
Business Line, Monday, May 12, 2008
In a departure from the method followed for modernisation of Delhi and Mumbai airports, the Government will seek an annual fee which will accelerate by a fixed per cent every few years from the successful bidders selected for modernisation of 24 non-metro airports. In Delhi and Mumbai, the Government had decided on the successful bidders on the basis of the highest revenue share offered.
TRAI move to open up internet telephony within India
Business Line, Tuesday, May 13, 2008
Making cheaper calls from a PC to a phone in India could soon become a reality, with telecom regulator TRAI on Monday seeking views from the industry and experts on the issue of allowing ISPs to provide internet telephony to call landline or mobile subscribers, within the country. The move is expected to boost competition in the national long distance segment and trigger further drop in STD tariffs.
Pharma cos with R&D focus may get leeway in pricing
Business Line, Wednesday, May 14, 2008
Indian drug companies that meet a slew of criteria, including approval of at least one of their manufacturing facilities by two reputed foreign regulatory authorities, may become eligible to a Gold Standard certification from the Government. This would entitle them to claim a 200 per cent Maximum Allowable Post-Manufacturing Expense (MAPE) component while fixing the product prices in respect of 354 life saving drugs proposed to be brought under the control regime.
DoT wants global 3G bids, to reject TRAI’s proposal
Economic Times, Thursday, May 15, 2008
Offering a lifeline to global telcos who want to enter India via the third generation (3G) route, the department of telecom (DoT) is all set to reject sector regulator TRAI’s revised recommendations that only existing telcos be allowed to bid for 3G spectrum. DoT sources say that the government will announce a new set of 3G guidelines by the month-end, which will allow for international competitive bidding for allocating spectrum for 3G mobile services.
MRTPC can’t tell bodies to allot plots: SC
Economic Times, Friday, May 16, 2008
The Supreme Court on Wednesday ruled that monopoly watchdog MRTP Commission is not empowered to direct authorities to allot plots to claimants and can only award compensation for such lapses. A bench comprising Justice Tarun Chatterjee and Justice HS Bedia said that under the MRTP Act, there are provisions for conducting inquiries. Section 36D read with Section 12A and 12B lay down powers of the MRTP Commission in dealing with instances of unfair trade practices. However, none of the provisions seem to indicate that the Commission has the power to direct an authority to deliver possession to a claimant, the court has said.
HC issues notice to govt for filling vacant posts of power tribunal
Business Standard, Monday, May 19, 2008
The Delhi High Court has sought response from the Centre on a petition seeking direction to the government to take steps to fill up the vacant posts of energy tribunal APTEL. A Division Bench comprising Justice Manmohan Sarin and Justice Manmohan issued notices to the Centre and member (energy), Planning Commission, seeking them to be expeditious in appointing the Chairperson and members of the Appellate Tribunal for Electricity (APTEL).
Power import policy coming
The Hindu, Monday, May 19, 2008
With the Indo-U.S. civilian nuclear deal hanging in the balance, the government is framing a policy for importing power from neighbouring countries including Pakistan to overcome the peaking shortage, say highly placed sources. Work on the policy is being expedited. For, although India considers Nepal, Bhutan and Myanmar a natural market for hydroelectricity, competition could be round the corner.
Competitive pay for CCI brass may have to wait
Economic Times, Monday, May 19, 2008
The brass at the Competition Commission of India (CCI) would get the highest pay scale existing for civil servants, but they may have to wait for a more attractive pay packet which other regulators such as SEBI offer. The government has decided to offer the chairman and members of CCI a pay scale similar to a secretary to the government of India.
State-run firms in metros to sell only costlier petrol, diesel
The Hindu, Tuesday, May 20, 2008
Lakhs of vehicle owners in metropolitan cities and major towns will now have to shell out Rs.3 to Rs.4 a litre more for “buying petrol and diesel” as State-run Oil Marketing Companies (OMCs) have “decided” to sell only expensive “branded premium fuel” at these places. The move, which probably has the blessings of the Petroleum Ministry, comes after the continued refusal of the government to hike prices of petro products despite repeated representations by the OMCs and the skyrocketing crude oil prices in the international markets, which touched a record $128 per barrel on Monday.
SEBI puts on hold upfront margin plan for institution: SC
Business Line, Friday, May 23, 2008
SEBI on Monday said that it has decided to keep in abeyance the requirement of upfront margining for institutional trades, which was supposed to commence on June 16 this year. The regulator said this was being done in the light of difficulties expressed by the market participants. SEBI had imposed margining on cash transactions for institutional investors on a T+1 basis for institutional investors, starting April 21 this year. This was supposed to move to upfront margining in June.
MRTPC to probe ICICI Bank cheque clearing
Economic Times, Saturday, May 24, 2008
Monopolies and Restrictive Trade Practices Commission (MRTPC) has called for an investigation against private sector banking major ICICI Bank for clearing cheques with discrepancies, but not crediting the money to the accounts of depositors. According to official sources, the Commission has asked its investigating arm DGIR (director general of investigation and registration) to inquire into the matter and submit a report within 60 days.
Telecom industry calls for new convergence policy
Business Line, Sunday, May 25, 2008
The telecom industry on Saturday urged the Government to bring out a comprehensive convergence policy to deal with changing technology. At the Global Telecom Summit organised by Assocham, Mr T.V. Ramachandran, Chairman, ITU Regional Working Group for Private Sector issues said, “New convergence policy is due for long, as the Government has rolled out only its policy initiatives on issues relating to convergence in bits and pieces. Likewise, the policy for content access and IPTV are yet to be framed.”
UP mulling Industry Facilitation Act
Business Standard, Monday, May 26, 2008
In a significant initiative to create an investor-friendly environment, the Uttar Pradesh government is finalising an Industry Facilitation Act for prescribing fixed time schedule to set up new industrial units in the state. Also, in a bid to attract investments for the development of Bundelkhand region, the State government is favourably inclined to announce a “package of incentives”, informed Jacob Thomas, principal secretary, Industrial Development (SSI and Exports).
Govt may levy cess to bail out oil cos
Financial Express, Tuesday, May 27, 2008
A cess or surcharge on income tax and corporate tax may be levied to bail out oil firms reeling under high global oil prices as Petroleum Ministry’s proposal to raise petrol price by Rs 10 a litre, diesel by Rs 5 per litre and that of LPG by Rs 50 per cylinder finds few takers. The new proposal follows Finance Minister P Chidambaram’s reluctance to cut duties on crude oil and petroleum products unless alternate source of revenues are identified.
TRAI cautions DoT against overriding regulatory procedures
Business Line, Wednesday, May 28, 2008
The Telecom Regulatory Authority of India (TRAI) has cautioned the Department of Telecom against taking any decision on policy matters without consulting it. In a note written to Mr Siddhartha Behura, Secretary, Department of Telecom; TRAI’s Chairman, Mr Nripendra Misra, said that the recommendations of the regulator is required according to existing laws and DoT should keep this in mind to avoid any legal complications.
Trai initiates consultation process to create revenue share for VAS
Financial Express, Thursday, May 29, 2008
Faced with constant pressure from the value added service (VAS) providers, the Telecom Regulatory Authority of India (Trai) on Wednesday initiated a consultation process to create a revenue share structure between them and the mobile access service providers. It has been a constant complain of VAS operators that though they provide features like content and other services like ringer tunes etc to mobile operators in the absence of a proper regulatory structure, lose out in terms of revenue to the mobile operators.
RBI revises funding norms in subsidiaries
Financial Express, Saturday, May 31, 2008
The norms governing the treatment of banks’ investment in their subsidiaries and associates, and the investments by the banks’ subsidiaries and associates in their parent banks, have been reviewed by the Reserve Bank of India. RBI has decided to revise the norms on Friday, both under the Basel-I and Basel-II Frameworks. The investments of a bank in the equity as well as non-equity capital instruments issued by a subsidiary, which are reckoned towards its regulatory capital as per norms prescribed by the respective regulator, should be deducted at 50 % each, from Tier I and Tier II capital of the parent bank, while assessing the capital adequacy of the bank on ‘solo’ basis, under the Basel-I Framework.