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# The Global Intelligence Files

On Monday February 27th, 2012, WikiLeaks began publishing The Global Intelligence Files, over five million e-mails from the Texas headquartered "global intelligence" company Stratfor. The e-mails date between July 2004 and late December 2011. They reveal the inner workings of a company that fronts as an intelligence publisher, but provides confidential intelligence services to large corporations, such as Bhopal's Dow Chemical Co., Lockheed Martin, Northrop Grumman, Raytheon and government agencies, including the US Department of Homeland Security, the US Marines and the US Defence Intelligence Agency. The emails show Stratfor's web of informers, pay-off structure, payment laundering techniques and psychological methods.

## STRATFOR India Country Brief - March 23, 2011

Released on 2012-09-03 09:00 GMT

Email-ID | 5445641
Date | 2011-03-23 16:23:00
From | Anya.Alfano@stratfor.com
To | fred.burton@stratfor.com, Declan_O'Donovan@dell.com, John_McClurg@DELL.com

Basic Political Developments
o A united opposition today mounted attack on Prime Minister Manmohan
Singh over the cash-for- votes scam.
o The turf war over 2G Scam inquiry has refused to die down with the
Joint Parliamentary Committee planning to discuss tomorrow whether the
PAC.
o Unidentified persons threw a 'petrol-bomb' at the residence of a DMDK
candidate for Trichengode in the April 13 Tamil Nadu Assembly polls.
o The Andhra Pradesh High Court today directed the Centre to make public
the eighth chapter of the Sri Krishna Committee report on Telangana
which deals with sensitive law and order issues.
o Three Trinamool Congress MLAs were today suspended from the West
Bengal Assembly till March 25.
o The Telugu Desam Party forced adjournment of the Andhra Pradesh
Assembly without transaction of any business today over the demand of
a Joint Legislature Committee to probe the land allotments in the last
six years.
National Economic Trends
. India's Lok Sabha on Tuesday passed the Finance Bill 2011 after the
Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) walked
out of the House saying it did not want to create a constitutional crisis.
The BJP-led NDA opposition members in the Lok Sabha walked out in protest
against the speaker's decision to not allow a discussion regarding the
PM's response to a Wiki Leak revelation on the cash-for-votes scam.
. Bowing to demands from all around, Finance Minister Pranab
Mukherjee on Tuesday exempted five per cent `misery' tax on healthcare as
Finance Bill 2011 was passed in the Lok Sabha in the absence of
Opposition.
. Morgan Stanley sees its India wealth management assets growing at a
"sustainable pace" of 25 percent a year in the near future as the bank
adds more advisers in the rapidly growing Asian economy, a senior official
said on Wednesday.
Business, Energy or Environmental regulations or discussions
o The Government today approved 14 proposals of foreign direct
investment (FDI),including that of Mauritius based Ghir Investments,
totalling Rs 1,289.85 crore.
o Acropetal Technologies Ltd today announced that it has entered into a
definitive agreement to acquire LineBeyond Inc, USA, and Optech
Consulting Inc, USA.
o Faced with surging raw material costs, Indian car-makers now face
three additional serious challenges, including a shortage of key
components, which could impact their performance this year.While they
could pass on the burden of increased input costs to customers, a
shortage of components, compounded by the March 11 tsunami and quake
in Japan and the Reserve Bank's latest rate hike - which could affect
car financing - have made them jittery over their prospects in the
short-to-medium term.
o U.K.-based business and technology service company Logica is keen on
expanding its business in India.
o The Reserve Bank of India will allow a promoter or a promoter group to
establish new banks if they set up a holding company.
o Saroj Poddar today announced a unified corporate brand 'Adventz' and
said the group will invest $ 2 billion (around Rs 10,000 crore) for
expansion in the next four years.
o The Northern Railway has suffered losses of over Rs 200 crore ($44
million) due to disruption of rail traffic caused by the Jat
community's job quota agitation.
Activity in the Oil and Gas sector (including regulatory)
o Essar Energy Plc sees a significant near-term hit on its product
sharing contracts with Indian state-run oil marketing companies.
Militant Activity/Terrorism (Particularly in Bangalore, Mumbai, Noida, Chennai,
Coimbatore)
o A wanted Hizbul Mujahideen militant Mudassir Nazir Lone was today
arrested from the Batamaloo area of Srinagar.
o As many as 100 National Security Guard (NSG) commandos reached the
city on Tuesday as part of a security set up to prevent any terror
attack during the cricket match to be played on Thursday at the Motera
Stadium between India and Australia.
o Amid reports that underworld don Dawood Ibrahim is planning to target
the Central Bureau of Investigation's (CBI) headquarters here to
"destroy" the documents related to the alleged 2G spectrum scam, the
agency today denied that it has received any such "specific threat".
Labor/Social Unrest
o As the Jat agitation continues to wreak havoc on the rail traffic in
northern India, Railways today cancelled two important trains
connecting the Union Territory with the national Capital.
Full Text
Basic Political Developments
Oppn mounts attack on PM in LS on cash-for-votes scam
http://www.ptinews.com/news/1453057_Oppn-mounts-attack-on-PM-in-LS-on-cash-for-votes-scam-
New Delhi, Mar 23 (PTI) A united opposition today mounted attack on Prime
Minister Manmohan Singh over the cash-for- votes scam wondering as to how
he could wash his hands of the matter as he had headed the government in
2008 and was the "biggest beneficiary" of the trust vote.
Leader of the Opposition Sushma Swaraj made a stinging attack on Singh in
the Lok Sabha telling him that as head of the government he should take
responsibility instead of making others scapegoat for the omissions and
commissions of his regime.
"It is the habit of the Prime Minister to blame others. If it is price
rise then (Agriculture Minister) Sharad Pawar is responsible, if it is 2G
then (former Telecom Minister) A Raja is responsible and if it is
Commonwealth Games then (Suresh) Kalmadi is to blame," she said.
JPC to discuss PAC probe into 2G scam
http://www.ptinews.com/news/1454106_JPC-to-discuss-PAC-probe-into-2G-scam
New Delhi, Mar 23 (PTI) The turf war over 2G Scam inquiry has refused to
die down with the Joint Parliamentary Committee planning to discuss
tomorrow whether the PAC, chaired by senior BJP leader Murli Manohar
Joshi, has gone beyond its mandate.
After discussing the issue its first meeting tomorrow, the JPC plans to
write to the Public Accounts Committee Chairman about the Committee
confining itself to inquiring issues over which the CAG report has made
its observations.
"We have no quarrel with them. Propriety demands that we will point out to
them. Joshiji is a very senior member of parliament and he also knows
propriety is very important," JPC Chairman P C Chacko said.
Bomb hurled at DMDK candidate's house
http://www.ptinews.com/news/1452908_Bomb-hurled-at-DMDK-candidate-s-house-
Namakkal (TN), Mar 23 (PTI) Unidentified persons threw a 'petrol-bomb' at
the residence of a DMDK candidate for Trichengode in the April 13 Tamil
Nadu Assembly polls, police said today.
The front door, a two-wheeler and window panes were damaged when the bomb
exploded, they said, adding no one was injured.
The candidate, Sampath Kumar and his family, who were inside the house at
the time of the incident last night, have lodged a complaint with police.
Actor Vijayakant's Desiya Murpokku Dravida Kazhagam (DMDK) is contesting
41 seats as part of the Jayalalithaa-led AIADMK combine.
Make eighth chapter of Telangana report public: HC
http://www.ptinews.com/news/1452909_Make-eighth-chapter-of-Telangana-report-public--HC-
Hyderabad, Mar 23 (PTI) The Andhra Pradesh High Court today directed the
Centre to make public the eighth chapter of the Sri Krishna Committee
report on Telangana which deals with sensitive law and order issues.
Justice L Narasimha Reddy of the High Court gave the order on a petition
requesting the court to direct the Centre to disclose the eighth chapter
of the report.
The court observed that the committee was constituted to gather larger
public opinion on carving out a separate state for Telangana region and
the pros and cons of taking a decision on the ticklish issue.
The committee also held an open hearing and interacted with various social
groups and nothing was shown to be secret, it noted.
Three Trinamool Congress MLAs suspended
http://www.ptinews.com/news/1453158_Three-Trinamool-Congress-MLAs-suspended-
Kolkata, Mar 23 (PTI) Three Trinamool Congress MLAs were today suspended
from the West Bengal Assembly till March 25 for indulging in
unparliamentary behaviour and heckling Speaker Hasim Abdul Halim in July
last year.
Firhad Hakim, Arup Biswas and Dibyendu Adhikari were suspended for three
days from today, the Speaker said.
Incidentally, no Trinamool Congress member is attending the Budget
session, the last session before the coming Assembly elections.
On July 29, 2010, the three Trinamool Congress members had brought a
privilege notice against Chief Minister Buddhadeb Bhattacharjee, which was
rejected by the Speaker.
The three members then protested the rejection and this led to commotion
inside the House and also in front of the Speaker's chamber.
On July 30, CPI(M) MLA Rabindranath Mondal and seven other MLAs of Left
Front brought a privilege motion against the three TC MLAs alleging
unparliamentary behaviour and heckling the Speaker.
Andhra Assembly stalled over JLC for 6th day
http://www.ptinews.com/news/1453696_Andhra-Assembly-nbsp-stalled-over-JLC-for-nbsp-6th-day-
Hyderabad, Mar 23 (PTI) The Telugu Desam Party forced adjournment of the
Andhra Pradesh Assembly without transaction of any business today over the
demand of a Joint Legislature Committee to probe the land allotments in
the last six years.
This was the sixth day that the issue has rocked the Assembly. The
government today said it would consider the demand for JLC only if
Opposition allowed discussion on the issue in the House first.
The TDP, however, remained adamant, saying it wanted nothing but a JLC.
TDP MLAs stormed the Speaker's podium soon after proceedings began, and
shouted slogans, which led to first adjournment for half an hour.
But order could not be restored after the House reassembled. Officiating
Speaker, Nadendla Manohar, then adjourned the proceedings till noon.
National Economic Trends
Lok Sabha Passes Finance Bill
http://www.rttnews.com/Content/IndianNews.aspx?Id=1581474&SM=13/23/2011
1:27 AM ET
(RTTNews) - India's Lok Sabha on Tuesday passed the Finance Bill 2011
after the Bharatiya Janata Party (BJP)-led National Democratic Alliance
(NDA) walked out of the House saying it did not want to create a
constitutional crisis.
The BJP-led NDA opposition members in the Lok Sabha walked out in protest
against the speaker's decision to not allow a discussion regarding the
PM's response to a Wiki Leak revelation on the cash-for-votes scam.
Terming the walkout as rather unfortunate, Finance Minister Pranab
Mukherjee said the Opposition parities have missed an opportunity to lend
their voice and expertise to influence public policy in the larger
national interest.
While moving the Finance Bill, Mukherjee announced a reduction in dividend
distribution tax threshold for foreign companies to 26 percent from 50
percent and cut the basic customs duty on completely knocked down
automobile kits, containing a pre-assembled engine, gear box or
transmission assembly, to 30 percent from the proposed 60 percent.
Mukherjee also rolled back a proposed five percent tax on healthcare,
which many called the misery tax, and provided some relief to ready-made
garment manufacturers by enhancing the abatement available for levy of
taxes on some branded garments and textile made-ups to 55 percent from 40
percent on the retail sale price.
The Finance Bill was later cleared by the Lok Sabha through a voice vote.
FM rollbacks `misery tax' on healthcare
ENS Economic Bureau
http://expressbuzz.com/finance/fm-rollbacks-%E2%80%98misery-tax%E2%80%99-on-healthcare/258910.html
First Published : 23 Mar 2011 03:38:29 AM IST
NEWDELHI: Bowing to demands from all around, Finance Minister Pranab
Mukherjee on Tuesday exempted five per cent `misery' tax on healthcare as
Finance Bill 2011 was passed in the Lok Sabha in the absence of
Opposition.
"I have decided to exempt the new levy in its entirety, both in respect of
services provided by hospitals as well as by way of diagnostic tests until
goods and service tax (GST) comes into force," said Pranab Mukherjee who
was flooded with representations against what was described as "misery"
tax in the form of five per cent service charge on air conditioned
hospitals with 25 or more beds and diagnostic tests.
"The proposed levy on healthcare has raised considerable anxiety in this
House and outside. The purpose of the levy was not merely to mobilise
revenue. It was to pave the way for the introduction of the Goods and
Services Tax.
He also went on to reduce custom duty on raw silk from 30 to five per cent
and gave excise relief to small scale readymade garment firms.
Wrapping up discussion on the Finance Bill, Mukherjee regretted the
absence of Opposition in the House. The BJP had led an opposition walkout
as it wanted discussion on WikiLeaks exposure on cash for vote scandal
before the passage of Finance Bill. The Finance Minister said his budget
had given priority to economic growth momentum and the government
introduced amendment to bring Goods and Services Tax regime. Three more
bills - the revised Pension Fund Regulatory and Development Authority
Bill, the Factoring and Assignment of Receivables Bill and the State Bank
of India (subsidiary banks laws) Amendment Bill - are in the offing.
Mukherjee stressed on fiscal consolidation and said that spending beyond
means was unacceptable as he outlined the need to reduce deficit to 2.5
per cent and revenue deficit to zero.
Some of the other changes made were reducing dividend distribution tax
(DDT) limit for foreign companies to 26 per cent. The excise duty for
completely knocked down (CKD) automobile kits has been reduced to 30 per
cent from 60 per cent.
M. Stanley sees India wealth assets growth, to add staff
2011-03-23 17:50:00
http://www.sify.com/finance/m-stanley-sees-india-wealth-assets-growth-to-add-staff-news-others-ldxrOhbdfdb.html
Morgan Stanley sees its India wealth management assets growing at a
"sustainable pace" of 25 percent a year in the near future as the bank
adds more advisers in the rapidly growing Asian economy, a senior official
said on Wednesday.
The business in India, however, faces challenges due to the lack of a
large pool of qualified people to manage assets of wealthy individuals,
Leslie Menkes, a Singapore-based managing director for the Wall Street
bank's private wealth management arm, told Reuters.
"We have a strategic plan to expand our footprint and continue to grow the
business," he said. "I believe there are many successful wealthy
individuals and families here in India that have never had a discussion
with a world-class sophisticated wealth manager."
Asia, home to more than 3 million millionaires, has become a battleground
for private banks as global and Asian players compete for market share in
a region that is fast outpacing the United States and Europe in economic
growth.
But the competition for wealth management talent in fast-growing Asian
markets such as India is becoming cut-throat, with a slew of global banks
vying with the local financial institutions for a bigger share of the
market.
"I see talent as a capacity constraint for the industry," Menkes said.
"That is a structural challenge that India is facing in wealth management
with the fact that so many players are coming here and there are only a
finite number of really good people."
Business, Energy or Environmental regulations or discussions
Govt clears 14 FDI proposals worth Rs 1,290 cr
http://www.ptinews.com/news/1453399_Govt-clears-14-FDI-proposals-worth-Rs-1-290-cr-
New Delhi, Mar 23 (PTI) The Government today approved 14 proposals of
foreign direct investment (FDI),including that of Mauritius based Ghir
Investments, totalling Rs 1,289.85 crore.
The Foreign Investment Promotion Board (FIPB), however, deferred decisions
on 27 proposals, including that of Essar Capital Holdings and Forbo
Holding AG, Lindenstrasse, Switzerland.
"Based on the recommendations of FIPB...Government has approved 14
Proposals of FDI amounting to Rs 1289.855 crore," an official statement
said.
The FIPB , which falls under the Finance Ministry, gave its nod to Kolkata
based Dhunseri Investments FDI proposals worth Rs 715 crore. The company
had proposed to issue and allot equity shares to the non-resident
shareholders consequent upon demerger.
Ghir Investments got the approval of the Board for induction of foreign
equity in an investing company. The Mauritius based company proposes to
bring in FDI worth Rs 530 crore.
Acropetal acquires LineBeyond Inc, Optech Consulting Inc
http://www.newkerala.com/news/world/fullnews-174299.html
Bangalore, Mar 23: Acropetal Technologies Ltd today announced that it has
entered into a definitive agreement to acquire LineBeyond Inc, USA, and
Optech Consulting Inc, USA.
While LineBeyond was valued at USD five million, Optech is valued at USD
seven million, according to a release here.
Acropetal Technologies Ltd acquires 100 per cent of LineBeyond and 70 per
cent of Optech Consulting Inc at present. The cost of acquisition of these
companies is USD 4.9 million each.
Announcing the acquisition, Mr Ravi Kumar, CMD Acropetal Technologies Ltd,
said ''these acquisitions mark an important milestone in Acropetal's long
term goals of sustained growth in the healthcare segment. LineBeyond is a
critical acquisition with its strong suite of products and market reach
that will enhance our presence in US healthcare markets. Optech is
perfectly placed for providing cutting edge solutions that cater to the
needs of multiple industries.'' Bangalore-headquartered Acropetal
Technologies Ltd, recently listed on NSE and BSE, was recognised as a
global leader in Information Technology (IT) outsourcing services.
Car-makers face challenges from Japan crisis, rate hikes
http://www.thehindu.com/business/Industry/article1563904.ece
Faced with surging raw material costs, Indian car-makers now face three
additional serious challenges, including a shortage of key components,
which could impact their performance this year.
While they could pass on the burden of increased input costs to customers,
a shortage of components, compounded by the March 11 tsunami and quake in
Japan and the Reserve Bank's latest rate hike - which could affect car
financing - have made them jittery over their prospects in the
short-to-medium term.
"Yes, the industry is facing problems, but we are taking it as a big
challenge. We think this is a passing phase - we see light at the end of
tunnel," General Motors India Vice-President P. Balendran told PTI here.
A shortage of critical components, many of them sourced from Japan where
many automobile facilities, besides others, have been damaged by the
powerful quake and tsunami has made the going tough for the industry,
which is likely to find it difficult to meet its sales targets, he said.
"Frankly, it is difficult to meet earlier projected (sales) figure this
time. A shortage of components, including tyres, casting and steel, has
made things difficult," he said.
The hike in key rates by the Reserve Bank, which is expected to push up
interest rates on auto loans, could deter potential buyers, Mr. Balendran
said.
The General Motors executive said, "It is difficult to predict a timeline
for the problems to be resolved."
Home-grown auto major Mahindra & Mahindra is confident of the long-term
potential of the industry, but feels the sector is likely to be stymied by
the Japan crisis and RBI rate hike in the short-term.
"Commodity prices have been increasing in the last few months and now the
Japan calamity will affect supplies of auto components. The rate hikes by
the RBI could add to the industry's woes," said Mahindra & Mahindra
President (Automotive) Pawan Goenka.
The RBI recently hiked both the repo and reverse repo rates by 0.25 per
cent each to 6.75 per cent and 5.75 per cent, respectively, for the eighth
time since March, 2010.
This, in turn, is likely to push up cost of loans for customers.
Auto majors like Honda Siel Cars India and Tata Motors have already
indicated that they would be upping their product prices from April 1 to
offset rising input costs and more are expected to follow suit.
Vijay Kedia, the director of three-wheeler maker Atul Auto, said, "Imports
of some automobile components from Japan will be affected in the
short-term. The growing (auto) industry is sandwiched between surging
input costs and meeting increasing demand."
Following the rate hikes, he said, there could be a slackening in demand.
"People will not be encouraged to buy more vehicles through financiers
this time due to the recent rate hikes by the central bank. It may slow
down demand in the coming weeks."
Admitting that the present situation was "challenging", Ford India
President and Managing Director Michael Boneham exuded confidence that the
tough times would be "short-lived".
"The Indian auto industry, in general, is clocking an unprecedented growth
in sales. Though the Japanese tsunami and the RBI rate hikes present
challenges to the industry, it will be able to overcome them," he said.
Logica keen to expand business
http://www.thehindu.com/business/article1562163.ece
U.K.-based business and technology service company Logica is keen on
expanding its business in India as many European clients have set up
operations in the country. At present, Logica has 12-15 clients in areas
such as banking and finance, energy and utilities and telecom sectors. It
offers assorted services such as payment, liquidity management solutions,
smart metering and telecom services.
In addition, the company offers 24x7 support to over 80 customers across
India. While Bangalore and Mumbai support the domestic market, Chennai
represents global work.
In an interaction with this correspondent, Logica Chief Executive Officer
Andy Green said there were over 4,200 employees in Bangalore and Chennai.
Last year, the headcount grew by 16 per cent. The total staff strength
across the globe is 39,000. Out of which 6,000 were in offshore locations
and the balance in onshore locations. Nearly 135 clients were supported
from offshore. The European market accounted for a major chunk of all
work. Nearly 60 per cent of the offshore work came from non-U.K. clients
and 40 per cent from the U.K.clients. Though there was growth in every
part of the world, faster growth was coming from non-English speaking
countries, he said.
Mr. Green said nearly 60 per cent of the revenue was generated from
non-U.K and non-U.S. clients (Scandinavia, France, Germany and the
Netherlands). Logica was following a blended delivery model (German,
Indian, Finnish, the Philippines and Morocco).
Regarding segregation of work, he said 60 per cent was non-English
speaking countries (Finland, Sweden, the Netherlands, Germany, France and
Portugal) and 10 to 15 per cent of offshore work happened in India, the
Philippines and Morocco.
On the challenges in the European market, he said the company had to take
a call between the blended delivery model and the offshore model.
Generally clients' intimacy would come with culture. As far as European
culture was concerned, it wanted data privacy and protection.
Similarly there were cost related issues in the U.S. and Europe. Wage
rates were higher in Norway and Germany than in the U.S. But the setback
in the U.S. was that people were moving to Europe and a lot of top level
American executives did not want to take up lower level jobs.
Similarly, the European market was three to four times more costly than
the Indian market.
On the economic slowdown in Europe and its impact on the offshore market,
he said the German and Swedish markets were doing well.
The company would enter the high growth market at the right time. There
was good business in Brazil and the Middle East, he said.
RBI sets holding company rider for bank licence
http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/rbi-sets-holding-company-rider-for-bank-licence/articleshow/7767474.cms
NEW DELHI: The Reserve Bank of India will allow a promoter or a promoter
group to establish new banks if they set up a holding company, which will
own the bank and all other financial services companies regulated by the
central bank or other financial sector regulators.
The holding company structure is described in the draft guidelines that
the central bank has sent to the finance ministry last week. The
guidelines are not final but provide a clue to its thinking. The norms
governing new banks will be made public once the finance ministry
responds.
Such a structure is aimed to ring fence the regulated financial services
activities of an industrial house, including the new bank, from other
activities such as manufacturing and trading that are not regulated by
financial sector regulators.
In his Budget speech, the finance minister had said the Reserve Bank of
India would release a set of rules governing new banks before March 31.
The rules will come into force only after a public discussion.
A number of conglomerates such as the Tatas, the Aditya Birla Group and
Mahindra and Mahindra are keenly awaiting final guidelines, which are
likely to be released by the end of this month, as many have shown
interest in starting a bank in India. The draft guidelines refer to
conglomerates as promoter groups.
The draft guidelines sent to the finance ministry stipulate that companies
and promoters considered eligible for banking licence by RBI would have to
set a wholly-owned non-operative holding company (NOHC), which needs to be
registered as a finance company with RBI, and will be governed by a
separate set of prudential guidelines.
But the draft rules say groups that derive 10% of their 'income' from
broking or real estate shall not be eligible. This may hit the plans of
financial services companies with big brokerage units seeking to enter
banking.
NOHC will not be permitted to borrow funds for investing in group
companies or "undertake activities which banks are permitted to undertake
departmentally". Simply put, it will just be a vehicle to hold investments
in all regulated financial sector entities on behalf of the
promoter/promoter group for regulatory and prudential comfort.
The central bank has also suggested that the proposed banks will have to
maintain arm's length relationship with promoter group entities, their
business associates and their suppliers and customers.
"The whole concept behind these draft guidelines is to ensure that
systematically important financial institutions, which are granted banking
licences, do not endanger the banking institution in the country," said a
senior official involved in framing the guidelines.
To ensure this, it has suggested that the exposure of the bank to any
entity in the promoter group shall not exceed 10% and the aggregate
exposure to all the entities in the group shall not exceed 20% of the
paid-up capital and reserves of the bank. All exposures to promoter group
entities will have to be approved by the board.
Adventz Gr to invest $ 2bn in 4 yrs; eyes $ 5 bn turnover
http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/engineering/adventz-gr-to-invest-2bn-in-4-yrs-eyes-5-bn-turnover/articleshow/7771424.cms
NEW DELHI: Saroj Poddar-led Group companies, including Zuari Industries,
Texmaco and Paradep Phosphates , today announced a unified corporate brand
'Adventz' and said the group will invest $ 2 billion (around Rs 10,000
crore) for expansion in the next four yeaRs
"We have planned a capital outlay of $ 2 billion (around Rs 10,000 crore)
in the next four years to expand our businesses across the twenty one
companies in the Adventz Group," Zuari Industries Ltd Managing Director
Suresh Krishnan told PTI.
He said the group was targeting a turnover of $ 5 billion in the next five
yeaRs
"Currently, the Group's turnover is around $ 2.5 billion, which is likely
to go up to $ 3 billion in the next fiscal. Over a period of five years,
we are looking at a figure of $ 5 billion," he said.
Of the total investment planned, a majority of funds will be utilised for
setting up of a new fertiliser plant in Karnataka and for acquiring assets
in the fertiliser business.
The group's flagship firm, Zuari Industries, will be setting up a Rs 5,000
crore gas-based urea plant in Karnataka with an annual capacity of 1.3
million tonnes a year. It will be built near the Dabhol-Bangalore gas
pipeline project, which is expected to complete by 2012-13.
Other focus areas of the group will be retail, real estate, besides the
financial services and brokerage business.
"Over the next few years, we would look at consolidating out position in
the diverse range of businesses that we are in," Krishnan said.
The group today announced re-positioning of its 21 firms, including joint
ventures and subsidiaries, under one umbrella brand 'Adventz'.
"We are in the process of finalising the marketing and promotional plan
for the new identity," he said.
All the products and services offered by the group companies will bear the
new logo and brand name going ahead.
The Adventz group operates in areas such as fertilisers, heavy industry,
engineering services, consumer durables, real estate and financial
services.
The main companies in the group are Zuari Industries (fertilisers and
agriculture services), Texmaco Rail and Engineering Ltd, Adventz Infra
World Ltd , Style Spa Furniture among others.
'SBI-State Bank of Indore merger in public interest'
http://www.ptinews.com/news/1453349_SBI-State-Bank-of-Indore-merger-in-public-interest--Govt
New Delhi, Mar 23 (PTI) The acquisition of State Bank of Indore by the
State Bank of India (SBI) last year was made in public interest, the Rajya
Sabha was informed today.
The merger is in "overall public interest," Minister of State for Finance
Namo Narain Meena said while replying to the debate on the State Bank of
India (Subsidiary Banks) Amendment Bill, 2010 in Rajya Sabha.
"Now, they (State Bank of Indore customers) can deposit and withdraw money
from all the branches of State Bank of India," he said.
The Upper House later passed the bill seeking to omit all references to
the State Bank of Indore, which was acquired by the SBI in July last year.
Railways loses over Rs 200 crore due to Jat agitation
http://economictimes.indiatimes.com/news/news-by-industry/transportation/railways/railways-loses-over-rs-200-crore-due-to-jat-agitation/articleshow/7771216.cms
NEW DELHI: The Northern Railway has suffered losses of over Rs 200 crore
($44 million) due to disruption of rail traffic caused by the Jat
community's job quota agitation, said an official here.
"The railways has suffered huge losses worth several crores of rupees per
day due to the agitators blocking railway tracks and stopping the trains'
movement," a senior Northern Railway official told IANS.
According to the official, the railways was still assessing the quantum of
losses suffered during the agitation. The overall losses may be in the
range of above Rs 200 crore, as the protests still continue in the states
neighbouring the national capital.
Industry experts also concurred that the overall losses suffered by the
railways during the Jat reservation agitation has been in the range of Rs
200 crore.
"We are still calculating the losses...if you see there are many kinds of
losses not only operational, but also penalties on freight delays that we
have to pay," the official said.
The official added that the freight traffic, in particular, has suffered
and the transportation of perishables and on-time performance of the
railways has been hit severely.
"It always happens, like in the Gujjar agitation (for reservation in
Rajasthan). Even at that time, the essential commodities carried by trains
got affected, thereby impacting their availability and prices," official
added.
Commodities that routinely get affected by the train disruptions include
vegetables, milk, coal and petroleum products, whose supply may be
affected in the short term.
Industry experts feel that passenger and freight train disruptions in
north India will impact local commodity prices with cost of certain
perishable products going up. Electricity and fuel shortages may also be
faced.
"The overall economic impact of this would be in the range of Rs 200
crore, while due to the disruptions, the commodity prices may go up
locally," Vishwas Udgirkar, senior director, Deloitte in India, told IANS.
According to him, the railways has not only suffered quantitative but also
qualitative loss with its image as a reliable means of transport being hit
due to the increasing frequency of protests stopping train movements.
"Every time people want to protest, they will hit at the most sensitive
part of today's life, which includes the railways. The frequencies of such
incidents are going up and that is worrisome," he said.
According to officials, 66 trains were cancelled Wednesday, a day after
Jat agitators blocked the movement of 71 more trains.
More trouble seems to be in store as the Jat agitators have threatened to
block all rail links between the national capital and other cities,
including Agra, Kanpur and Ambala, from March 28.
Train disruptions by the agitating Jat community have been frequent in
Hisar, Jind and Bhiwani districts of Haryana.
The protests also spread to western parts of Uttar Pradesh, where train
services were hit ever since the agitation started March 5. But the state
government March 18 removed agitators blocking railway tracks following a
court order.
Activity in the Oil and Gas sector (including regulatory)
Essar Energy supply contracts may take a hit in near term
http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/essar-energy-supply-contracts-may-take-a-hit-in-near-term/articleshow/7767874.cms
MUMBAI: Essar Energy Plc sees a significant near-term hit on its product
sharing contracts with Indian state-run oil marketing companies, which are
seen lowering their fuel buy from the London-listed firm once their new
refineries become operational and the existing ones are upgraded.
"We supply close to 7 million tonne of refined fuel products to IOC, HPCL,
and BPCL, but now we expect a 5-6% impact on these supply contracts in
2011-12," said a senior Essar Energy official.
The three state-run oil marketing companies - Indian Oil Corporation
(IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum
Corporation (HPCL) - are building new refineries in Paradip, Bina, and
Bhatinda, respectively. IOC is conducting upgradation at its existing
refineries in Haldia and Panipat while HPCL is also sprucing up its
Vishakhapatnam refinery.
"Once our new refinery in Bina comes online, we will definitely reduce the
volume of petrol, diesel, and LPG (liquefied petroleum gas) that we buy
from Essar and others," said BPCL's director - finance SK Joshi. However,
he said given the rising demand projections in the domestic market, BPCL
will continue to source fuel from outside.
"Once the phase 1 of expansion at Vadinar (refinery in Gujarat) is
complete, it will see a production of 18 mmtpa. Then BPCL's Bina and
HPCL's Bhatinda are also slated to come online this year. So we could see
a temporary fuel surplus in the near future," Essar Energy CEO Naresh
Nayyar, said in a conference call from London, on Monday.
BPCL's Bina refinery will have an initial capacity of 6 million tonne per
annum (mtpa), while HPCL's Bhatinda refinery will start with a production
of 9 mtpa and the company is also planning to double output from
Vishakapatnam refinery to 15 mtpa. IOC has already upgraded its Haldia and
Panipat refineries to 7.5 mtpa and 15 mtpa, respectively, while its new
refinery at Paradip will have a production capacity of 15 mtpa. On Essar's
retail plans, the official said, "We will be going slow on our plans to
expand our retail outlets given the uncertain regulatory environment."
He was echoing what Nayyar had said on Monday, that the sudden spike in
global crude oil prices and the government's slow progress on deregulating
diesel are major roadblocks to Essar's plans to open 1,700 outlets by
March 2011. "We have no choice but to pull the brakes on our retail plans
for now as competition with PSU firms is becoming completely unviable,"
Nayyar had said.
Discussing the impact of the fall in production at Japanese refineries due
to the recent earthquake and tsunami, Nayyar had said, "As a result of the
ongoing crisis in Japan, we in India saw a sudden spurt in refining
margins and we see this trend continuing in the latter part of the year
too."
Militant Activity/Terrorism (Particularly in Bangalore, Mumbai, Noida, Chennai,
Coimbatore)
Wanted Hizbul Mujahideen militant arrested
http://www.ptinews.com/news/1453126_Wanted-Hizbul-Mujahideen-militant-arrested-
Srinagar, Mar 23 (PTI) A wanted Hizbul Mujahideen militant Mudassir Nazir
Lone was today arrested from the Batamaloo area here, police said.
Lone, wanted in several cases, was arrested from Batamaloo bus stand by
the sleuths of Special Operations Groups (SOG) of local police, they said.
The militant was also an accused in a contractor killing case.
Last week, police had arrested six militants of the HM outfit in
connection with attempting to revive the group in north Kashmir's
Baramulla district," officials said.
With these arrests, police claimed to have solved the killing of the
contractor.
Contractor Nazir Ahmed Lone was murdered over business rivalry by the
militants, who were paid money by Abdul Hamid.
100 NSG commandos in Ahmedabad for India-Australia match
Published: Wednesday, Mar 23, 2011, 15:10 IST
http://www.dnaindia.com/india/report_100-nsg-commandos-in-ahmedabad-for-india-australia-match_1523291
As many as 100 National Security Guard (NSG) commandos reached the city on
Tuesday as part of a security set up to prevent any terror attack during
the cricket match to be played on Thursday at the Motera Stadium between
India and Australia.
The commandos have been sent by the Centre to help the local police in any
untoward situation.
Of these 100 commandos, 15 are officers, while six are senior officers.
Police sources said that they are camping at a private hall in Sola police
station jurisdiction. The NSG commandos will not be deployed but will be
on a stand by to tackle any terror attack.
"The centre send the commandos as a precautionary step and to help in
prompt action in case of any untoward incident," said police commissioner,
Ahmedabad city, Amitabh Pathak. However, he also said that even though
there are no specific intelligence inputs as far as terror alerts are
concerned, the government did not want to take any chance.
A meeting was held till late evening at the commissioner's office to
decide the action plan and optimum use of the NSG, in case of any untoward
incident.
The commandos are deployed at a place from where they can act promptly in
case of any untoward incident, sources said.
Meanwhile the city police have already geared up for the security during
the match. Police deployment has already been done at and near Motera
Stadium as well as near the hotel where the players are staying.
CBI denies receiving threat from Dawood gang
New Delhi, March 23, 2011
http://netindian.in/news/2011/03/23/00011969/cbi-denies-receiving-threat-dawood-gang
Amid reports that underworld don Dawood Ibrahim is planning to target the
Central Bureau of Investigation's (CBI) headquarters here to "destroy" the
documents related to the alleged 2G spectrum scam, the agency today denied
that it has received any such "specific threat".
"Non-specific threat perceptions are often received by the CBI owing to
the nature of job of the agency," a CBI spokesperson said, adding that no
"specific threat" from a person or group has been received.
The official said if there were any threat, the inputs were passed on to
the appropriate agency (Home Ministry) for necessary confirmation or
action.
The reports said Dawood Ibrahim's gang D-Company was planning to target
the CBI headquarters in an attempt to destroy all documents relating to
the ongoing probe into the 2G spectrum issue.
The reports added that Mumbai-based CBI officials have passed on this
information to the investigators handling the case.
The spokesperson said that security was already tight on the CBI premises
and has been further strengthened recently.
Labor/Social Unrest
Jat stir: Delhi-Chandigarh Shatabdi among cancelled trains
http://www.ptinews.com/news/1453987_Jat-stir--nbsp-Delhi-Chandigarh-Shatabdi-among-cancelled-trains-
Chandigarh, Mar 23 (PTI) As the Jat agitation continues to wreak havoc on
the rail traffic in northern India, Railways today cancelled two important
trains connecting the Union Territory with the national Capital.
The morning Shatabdi Express from Kalka/Chandigarh to New Delhi and the
return service from the national capital in the evening have been
cancelled till March 25, when the situation would be reviewed, a Northern
Railway spokesman told PTI here today.
The Delhi Sarai Rohilla -Chandigarh/Kalka Himalayan Queen has also been
cancelled till March 25. The train provides a connection to the tourists
headed for Shimla in Himachal Pradesh as passengers arriving by this train
board the narrow gauge train Himalayan Queen from Kalka to Shimla.