Terror attacks, floods damage 85 Airtel Nigeria cell sites

Terror attacks and floods in several parts of Nigeria have damaged 85 installation sites of Airtel Nigeria, part of India's telecom leader Bharti Airtel . The damage has affected operations of 234 sites across the regions where the terror attacks and flooding occurred, Airtel Nigeria's Director of Regulatory Affairs and Special Projects Osondu Nwokoro said in Lagos on Tuesday.

He said 32 sites were damaged by floods, affecting operations of 41 sites across the region, and 53 installation sites were impacted by terror attacks, hitting operations in 193 sites across the Northern part of Nigeria. Nwokoro, who wants Nigeria to declare all telecoms equipment in the country as critical national infrastructure, said the incidents have led to further loss of sites and fiber capacities.

According to him, the armed insurgency in some parts of the North have also hindered the routine preventive 24 hours maintenance of telecoms facilities. He mentioned the states of Adamawa, Gombe, Kano, Bauchi, Borno, Yobe and Kaduna as the worst hit by the terror attacks and cities of Lokoja, Asaba, Ugheli- Patani and Patani-Elele as the worst hit by the flood.

"The disasters have resulted in spiralling costs of maintenance in affected locations to thrice the normal rate, consequently leading to colossal financial losses and dipping revenues," he said. "The loss of capacity occasioned by these threats often affects quality of service delivery and customer experience leading to a drop in Key Performance Indicators (KPIs), he added.

However, Nwokoro assured Airtel Nigeri's subscribers that the company has taken decisive steps to mitigate the damage done to its facilities by sealing facility-sharing agreements with other telecom operators. Airtel Nigeria has also engaged the services of a private security companies to protect its facilities in the troubled states.

Since the beginning of the rainy season, more than 140 people have lost their lives to flooding within the country just as thousands were rendered homeless and farmlands submerged. Radical Islamic sect, Boko Haram, has claimed responsibility for recent attacks on Airtel and other telecoms installations in northern parts of Nigeria.

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Tata Motors can become a $30 bn company: Goldman

Tata Motors shares gain 1.4 percent after Goldman Sachs says the auto maker's market cap has potential to reach USD 30 billion by fiscal 2017, from current value of USD 13.8 billion, and to nearly double its cash flow during these four years.

To get there, Goldman says Tata's Jaguar Land Rover unit would need to move to a new platform for its existing models such as Range Rover and Discovery with a light weight aluminium architecture, thus improving key factors such as fuel efficiency or pricing.

JLR would also need to make inroads into smaller engine and lower priced vehicles, as well as enter more premium segments, Goldman argues.

However, challenges include getting consumers to buy into the brand, tightening regulations in key markets such as Europe, and overcoming macro economic uncertainties such as FX volatility.

Goldman Sachs maintains Tata Motors at 'buy', with a target price at Rs 334.

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Seen huge rise in demand; ARPUs to improve ahead: Dish TV

The deadline for complete switchover to digitization in the four metros ends today . The percentage of digitization in the four Metro cities--Delhi, Mumbai, Chennai and Kolkata - has reached 85 per cent and only 15 per cent is remaining, said the latest government data.

In an interview to CNBC-TV18, Salil Kapoor, COO, Dish TV said that the company has seen massive demand in the last few days. "Our numbers have gone up 10 times in Delhi and 6-7 times in Mumbai." The demand is expected to rise further once the analog connection is totally disconnected.

Dish TV's overall base market share is about 28 percent and month on month basis till August-September, it is about 22-23 percent.

Its average revenue per user (ARPU) increased from Rs 131 in 2010 to Rs 159 in Q2 this year. "ARPUs are expected to boost going ahead. The price increase made six months ago has been easily absorbed. Stability in prices will also help us to increase ARPU," he added.

Below is the edited transcript of Salil Kapoor's interview with CNBC-TV18.

Q: At your end how does it look, more or less covered all the cities in terms of digitisation?

A: We are seeing a huge demand already. In the last about 10 days our numbers have gone up 10 times in Delhi and 6-7 times in Mumbai. We are expecting further increase in numbers because the actual black out is going to happen now.

This is just the tip of the iceberg; there is lots to be done in these four cities. Our main job right now is to arrange as many installers we can from various neighbouring states to meet the demand.

Q: With regards to incremental market share you gained during the entire digitisation process, so in the current metros, which are currently finishing phase I, what about Dish TV's market share stand at vis-à-vis before digitisation and now post digitisation?

A: There is nothing like post digitization. Digitisation is happening it has not ended on or it is not going to end today. There is only a small set of customers who have stepped out to buy the boxes. We have seen 10 times demand growth here. But the actual demand is going to come up when we will see this real switch -off happening.

Real switch-off which will happen tonight, is going to get those people. It will take us some more time to cover up all the demand. What the market share is going to be can only be said after we are through will the process. It will take one month to meet all the demand.

Q: What is the current market share that Dish TV has?

A: The overall base market share is about 28 percent and on a month on month basis till August-September, we are about 22-23 percent. A newspaper article today has stated Dish TV stands to gain maximum and it is on top of the consumer choice as far as buying process during digitisation is concerned, it is the most preferred brand. We look forward to huge demand coming in the next few days.

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Hindalco up 3% on forest clearance for Mahan coal block

Aluminium major Hindalco Industries gained 2.8 percent to Rs 114 after the Essar Energy (a subsidiary of London listed Essar Energy plc) has secured forest clearance for Mahan coal block.

Mahan Coal is a joint venture between Essar Energy and Hindalco Industries.

The stock dropped over 7 percent in last one month and more than 16 percent in one year.

Market capitalisation of the company currently stands at Rs 21,783.86 crore.

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ICICI Bank cuts stake in Firstsource by 11.25%; stks react

ICICI Bank has cut stake in Firstsource Solutions by 11.25 percent to 6.85 percent on October 25, reports CNBC-TV18.
 
At 09:27 hrs Firstsource Solutions was quoting at Rs 12.12, up Rs 0.04, or 0.33%. It has touched an intraday high of Rs 12.27 and an intraday low of Rs 12.07.
 
It was trading with volumes of 85,436 shares. In the previous trading session, the share closed down 2.11% or Rs 0.26 at Rs 12.08.

The company's trailing 12-month (TTM) EPS was at Rs 1.09 per share. (Sep, 2012). The stock's price-to-earnings (P/E) ratio was 11.12. The latest book value of the company is Rs 20.43 per share. At current value, the price-to-book value of the company was 0.59.

However, ICICI Bank was quoting at Rs 1,076.40, up Rs 7.85, or 0.73%.

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GMR seeks to refinance projects at lower costs

GMR Infra is looking to refinance its road and power projects which are nearing completion. The refinancing initiative may cut fund cost by at least 100 bps, say CNBC-TV18 quoting Newswire18. Currently, the consolidated debt stands at over Rs 33000 crore and the average cost of borrowing is around 11%

The firm which operates in highways, power and airport verticals is focusing on operationalising over half-a-dozen assets across its verticals. These will get operational over the next one year and will generate cash flows that will be used to fund investments

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Wal-Mart's investment in Bharti arm as per law: MD

Bharti Enterprises has rejected allegations that it had violated rules in the investment by Wal-Mart Stores Inc in its subsidiary. "(There is) no violation. It is as per the law of the land," Bharti Enterprises Vice-Chairman and Managing Director Rajan Bharti Mittal told PTI.

The Rs 455.8 crore investment by Wal-Mart in Cedar Support Services Ltd, a subsidiary of Bharti Ventures, had come under attack from CPI Rajya Sabha member MP Achuthan, who wrote to Prime Minister Manmohan Singh last month saying it was "illegal" and flouted FDI rules. He further said the government had also asked about it and the company has furnished details.

"We have given them (replies)...We have given our submissions to the government," Mittal said when asked to comment on Department of Industrial Policy and Promotion referring the issue to RBI. When asked for comments about Commerce and Industry Minister Anand Sharma informing the Rajya Sabha in September that Wal-Mart had made the investment in Cedar via its Mauritius arm but the RBI had no FDI data of the same, Mittal said: "I have no idea. We have given everything what is required".

In a letter to the Prime Minister, Achuthan, a Member of the Standing Committee on IT had alleged "the entire FDI has been diverted and illegally invested by Cedar in its 100 per cent subsidiary Bharti Retail Ltd, which is carrying out multi-brand retail operations".

Stating that the fact could be verified from the audited accounts filed by Cedar with Registrar of Companies, the MP had asked the government to "undo this illegal investment immediately; initiate penal proceedings against Wal-Mart and Bharti group under FEMA". Achuthan had further said: "Ban Wal-Mart permanently from India, including its joint venture for the wholesale cash and carry operations with the Bharti Group."

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Cos cautious on hiring, await better eco scenario: Monster

Companies might be cautious in increasing their headcount now but hiring activities will pick up across sectors once the economic conditions improve, according to a leading job portal. Notwithstanding economic uncertainties, Monster.com said that hiring trends are slowly improving in various sectors including real estate and retail.

"Organisations are adopting a cautious approach. That means, when the economic situation improves, we can see an acceleration (in hiring activities)," Monster.com Managing Director (India/MiddleEast/Southeast Asia) Sanjay Modi said. "Companies are putting their faith in the resilience of the Indian economy," he told PTI.

Exuding optimism about recruitment activities, Modi said that companies are hiring for back end as well as customer-facing (front end) jobs. Faced with sluggish economic prospects and tough business conditions, many companies worldwide are adopting a cautious approach in terms of hiring new people. IT, ITeS, production, manufacturing, engineering, construction, real estate, automobiles, logistics and retail, among others, are expected to see better hiring trends, Modi said.

"Retail will have an impact all across on logistics, new technology, agro industry. It is going to have a very positive impact," he noted. Monster.com's monthly employment index -- that tracks job demand online -- witnessed a significant uptrend in September. This was mainly account of improving hiring activities in IT, retail, healthcare and engineering sectors.

When asked whether layoffs are happening in the country, he replied in the negative. "Layoffs are always organisation driven. We cannot extrapolate it to industry phenomena," he emphasised.

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United Spirits falls on Diageo deal uncertainty

Shares in United Spirits fall as much as 7.1 percent after Vijay Mallya, who controls the liquor company, told Reuters on Sunday he had not reached a deal to stake a stake to Diageo.

Mallya, who is looking to raise funds for debt-laden Kingfisher Airlines , added he was not willing to sell his "family silver" to rescue the carrier.

On Saturday Mallya had additionally told Reuters he was uncertain whether a deal to sell a stake in United Spirits to Diageo would be struck.

United Sprits shares are down 2.3 percent as of 12:11 p.m., although Kingfisher Airlines gains 4.9 percent, surging for a third day after striking workers agreed to return to work after reaching a deal on delayed pay.

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Jefferies downgrades Hindustan Unilever

Jefferies downgrades Hindustan Unilever to 'underperform' from 'hold' saying the recent growth in revenue would prove "unsustainable" given the highly cyclical nature of the consumer goods sector, while citing "rich" implied valuations.

In particular, Jefferies says Hindustan Unilever may be unable to sustain "exceptionally strong" revenue growth in the soaps and detergent segment seen over the previous five quarters, due to already high penetration levels and rising competition.

Jefferies also raises its tax rate assumptions for fiscal 2013/14 and 2014/15 to 26 percent and 30 percent, respectively, from 24 percent for each year, citing guidance from the management.

Hindustan Unilever down 1 percent, as shares continue to reel from disappointment over its July-September results.

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UB Group shares tumble as chief unsure of Diageo deal

Moneycontrol Bureau

Shares of liquor firm United Spirits and other UB Group firms -- United Breweries and United Breweries Holdings -- tumbled 1% to as much as 17% on Monday after chief Vijay Mallya said he was not sure if a deal with Diageo will be struck.

"Whenever we need to say something we will, we keep discussing but we don't know whether a deal will happen or not," Mallya told Reuters news agency on the sidelines of the Indian Grand Prix on Sunday.

UB Holdings has 18% stake in United Spirits and 24.5% in Kingfisher Airlines. UB Group has huge debt across group companies, including United Spirits, which has over Rs 8,000 crore debt, and so a deal with Diageo, which is in talks to pick a stake in United Spirits, is essnetial.

Last week Kingfisher's management negotiated a settlement with its employees, agreeing to pay 3-months salary by Diwali. According to CNBC-TV18 sources, the airline told the DGCA (Director General of Civil Aviation) that UB Group will fund the airline out of its current mess.

The government has opened the doors for foreign airlines to invest in Indian carriers. However, with no investor in sight to bale out Kingfisher, and the DGCA unwilling to let Kingfisher fly unless there is a proper turnaround plan, the Diageo deal is the only helping hand around the corner for Mallya, who has said he will not sell family silver to fund the airline.

At 13:40 hrs, UB Holdings was down 10% at Rs 118.40, United Spirits plunged 17.3% at Rs 995 and United Breweries declined 1.3% at Rs 725 on NSE. Kingfisher Airlines extended Friday's gains and was up 0.9% at Rs 11.45.

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Wipro up 3% after Credit Suisse upgrades to 'outperform'

Moneycontrol Bureau

Credit Suisse on Monday upgraded software services provider Wipro to "outperform" from "neutral" ahead of its results announcement on Friday, citing low valuations and recent underperformance to peers.

"The stock has significantly underperformed peers and the Indian market over the past 12 months. Given current valuation levels relative to the recent history, we think the risk-return is clearly in favour of buying the stock," analysts Anantha Narayan and Sagar Rastogi said.

Over the past year, Wipro is down 9%, while HCL Technologies and Tata Consultancy Services have risen 40% and 20% respectively.

Narayan and Rastogi admit that they don't see any concrete signs of a pick-up in the company's growth yet and a recovery may still be a few quarters away. But they say few factors -- Wipro's client mining has improved, sales spend has been going up, employee attrition is going down and there is an "anecdotal chatter" of improving deal pipelines -- which can lead to growth pick-up, they said.

At 13:30 hrs, Wipro shares were up 2.7% at Rs 345.15 on NSE.

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Indian companies created 50,000 jobs in US: Burns

At a time when unemployment is a major issue in the US due to its poor economic status, Indian companies through its massive investments in America have created 50,000 jobs in the country, a top US diplomat said.

"Our economic relationship is very much a two way street. Both of us are focused on attracting growth and investment to our shores. Indian owned Tata factory in Ohio puts thousands of Americans to work, part of the over 50,000 jobs Indian firms have created in the US. Opportunities for small, medium and large American businesses in India are staggering," US Deputy Secretary of State William Burns said yesterday.

Burns added that India is being projected as world's third largest economy by 2025. But 90 per cent of India is still without broadband, 80 per cent of India's infrastructure for 2030 hasn't yet been built, according to McKinsey, India plans to invest one trillion dollars on infrastructure in the next five years alone.

Burns praised the recent Indian decisions with regard to next phase of economic reforms.

"Of course, for our companies to provide the technology and expertise to help India prosper, India's government must create an environment that encourages growth," he said.

He added that India's recent easing of some restrictions on Foreign Direct Investment are promising. Indian multi-brand retail, aviation, power grid and broadcasting companies and markets will be more open to investment, technologies and best practises from all around the world. It will be easier to bring food to market.

He emphasised that greater economic openness is not a concession to the US. It is one of the most powerful tools India has to maintain and expand its growth.

Burn Observe that India has no more important partner than US. Total direct investment of US in India in 2000 was USD 2.4 billion which in 2010 get to USD 27 billion. During the same period Indian direct investment in America grew over USD 200 million to nearly USD 5 billion, which is more than a twenty fold increase. So we have never invested in each other's country to such extent.

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Zee, JSPL trade defamation charges against each other

Zee News  today said it has sent a Rs 150 crore defamation notice to Congress MP and industrialist Naveen Jindal, who too had filed a Rs 200 crore case against the media conglomerate claiming the TV channel had tried to extort money from his company.

"Zee News has granted a three-day time period to Mr Naveen Jindal to withdraw all his unsubstantiated and defamatory allegations against Zee News, failing which Mr Jindal would face civil and criminal actions initiated by Zee News," the media house said in a statement here. At a press conference on October 25, Jindal, who is the Chairman of Jindal Steel and Power (JSPL) had claimed that the Zee News group attempted to "extort" Rs 100 crore from the firm for not airing stories against it on coal block allocation.

Jindal had released a CD claiming that it has records of attempts by Zee editors to strike a purported deal with JSPL. On Thursday, JSPL had filed a defamation suit for Rs 200 crore against four executives of Zee at Mumbai High Court. "Notices for which have already been issued to Subhash Chandra, Puneet Goenka, Sudhir Chaudhary and Sameer Ahluwalia of Zee News and Zee Business.

The case is likely to come for hearing next week at Mumbai High Court," the company said. However, Jindal's charges were strongly denied by the Zee group. "Zee News has condemned and completely rejected the doctored evidence produced by Jindal. Zee News sees this as a deliberate attempt to malign the trustworthy television network," the media house said. JSPL is one of the companies named in the CAG report as one of the beneficiaries of the coal block allocation without auction.

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Reebok eyes sales rebound in 2013

Sat, Oct 27, 2012 at 15:36

German sporting goods maker Adidas AG's struggling Reebok brand expects sales to rebound next year, German magazine Wirtschaftswoche reported on Saturday, citing Chief Marketing Officer Matt O'Toole.

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German sporting goods maker Adidas AG's

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Sebi asks investors not to yield to pressure from Saharas

Sebi today advised investors against yielding to any pressure from "Saharas or their agents" for switching over their investments in two Sahara companies -- SIRECL and SHICL -- to other group companies. In August, the Supreme Court had directed SIRECL and SHICL to refund investors' money worth Rs 24,000 crore within three months with 15 per cent interest per annum for violating norms in raising funds from the public.

Noting that the Saharas have not submitted the relevant documents to it, Sebi in a public notice today said the regulator has been receiving complaints from investors of being forced by Saharas to switch to schemes in its other group companies.

In the notice titled 'Don't be forced!!! Dont' be misguided', Sebi has asked investors "not to yield to any pressure from any person, including Saharas or their agents, for converting or switching over their existing investments in the bonds to any of their schemes..." The apex court had said that if Sahara India Real Estate Corp Ltd (SIRECL) and Sahara Housing Investment Corp Ltd (SHICL) fail to refund the amount, then Sebi can attach properties and freeze bank accounts of these companies.

"The Saharas have not submitted the relevant documents to Sebi, as per the order of the honourable Supreme Court. Sebi has been receiving complaints from investors that they are being forced by Saharas/their agents/officials to switch over their investments to other schemes in Sahara Group Companies like Q Shop Unique Products Range Ltd, Sahara Credit Cooperative Society Ltd, etc.

"Some investors have also complained that their investments have been switched over to said schemes of Sahara Group Companies without their consent," the notice said. The Supreme Court in August had said that SIRECL and SHICL should refund the amounts collected through RHPs dated March 13, 2008 and October 10, 2009 along with an interest rate of 15 per cent per annum to Sebi from the date of receipt of the subscription amount till the date of repayment.

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Subbarao meets FM ahead of RBI's policy review

Ahead of second quarter review of credit policy, Reserve Bank governor D Subbarao today met Finance Minister P Chidambaram and discussed macro-economic situation.

"I met the finance minister and reviewed macro-economic situation with him," Subbarao told reporters after the meeting here. The RBI will review its monetary policy for the second quarter on October 30.

It is a standard practice for the RBI governor to discuss the state of economy with the Finance Minister before review of the monetary policy. In order to ease the liquidity situation, the RBI in its mid-quarterly monetary policy on September 17 had cut cash reserve ratio - the percentage of deposits banks keep with central bank - by 0.25 per cent.

However, in view of high inflation, the central bank refrained from reducing lending rates. The RBI has made it clear that controlling inflation would be its top priority. In its effort to bring down inflation, the RBI hiked interest rates by 350 basis points between March 2010 and October, 2011.

Industry has been clamouring for a rate cut as it feels that lower interest rate would help kickstart the investment cycle. Industrial output growth has slumped to 0.4 per cent in the April-August period, down from 5.6 per cent in the same period in 2011-12.

The impact of tight money policy and global economic downturn was felt in India as the economic growth in the 2011-12 fiscal fell to a nine year low of 6.5 per cent. In the April-June quarter of the current fiscal, the growth was 5.5 per cent.

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RPower' Sasan project expansion hits green hurdles

Reliance Power 's Sasan ultra mega project expansion plans face hurdles as Ministry of Environment and Forests (MoEF) has sought additional information from the company stating the proposal in the current form is pre-mature.

Sasan Power Ltd, which is implementing Rs 9,805 crore-6x660 MW Sasan Ultra Mega Power Plant (UMPP), had approached the ministry seeking clearance for the expansion of the project by 3X660 MW. "The committee finally decided that the proposal in its present form is premature for recommendation of environmental clearance ...Accordingly, the proposal was deferred," an Expert Appraisal Committee (EAC) under the MoEF said.

Though Reliance Power officials were not available for comment, sources close to the development said the power producer is busy preparing documents that are necessary for clearance. "Whatever information has been sought by the ministry will be provided in November so that the project may be cleared in the subsequent meeting," sources told PTI.

The committee observed that the area is not far from critically polluted Singrauli and therefore decided that action plan for mitigation formulated for Singrauli region needs to be seen and abundant precaution needs to be taken. On the issue of firm coal allotment, it observed that the project promoters have come premature without established source of fuel availability.

The committee noted that the issues raised during public hearing have been more or less addressed but few points need detailed deliberation such as impact on Rihand Reservoir and radio-activity from coal and fly ash. "The Committee therefore decided that not only for the expansion but also for the UMPP the project proponent needs to carry out a long term study of radio-activity and heavy metals contents on coal to be used through a reputed institute," the EAC said.

It said the impact due to withdrawal of large quantity of water by the UMPP cannot be ignored either. 

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Vijay Mallya flies in for Indian GP, slams critics

Embattled Force India team boss Vijay Mallya made his Indian Grand Prix entrance in combative mood on Saturday, lashing local media for their coverage of his business troubles and grounded Kingfisher Airline .

The liquor and aviation tycoon, no longer a billionaire according to the latest Forbes list, flew in from London on his private Airbus after suggestions that he might stay away to avoid having it impounded.

"Was there any doubt about my presence here?" he told Reuters, minutes after walking through the paddock turnstiles with cars roaring around the Buddh circuit as final practice got under way.

Mallya's Kingfisher Airlines had its licence suspended by the civil aviation authorities last week and has not flown since the start of October after a protest by employees, unpaid since March, turned violent.

The airline has never turned a profit and, according to the consultancy Centre for Asia Pacific Aviation, has total debt estimated at about $2.5 billion.

Mallya has not been seen in India for weeks and the airlines troubles, as well as a threat of protests by Kingfisher employees outside the Formula One circuit, have led to speculation about whether he would return for the race.

"You believe that Indian papers have any credibility?," said Mallya, bristling when asked about the recent coverage of his affairs.

"There is no libel law in India so there is nothing you can do to bring them to book," he added, accusing his media critics of 'cooking up sensational headlines daily' and writing nonsense.

"Obviously if I am not at my home grand prix, why should I be anywhere else?"

REBUKES DOUBTERS

Mallya is an important figure in Formula One, a longtime friend of F1 supremo Bernie Ecclestone and sitting on the governing International Automobile Federation's world motor sport council.

He was also instrumental in bringing the sport to the country and co-owns the first and only Indian-licensed team.

"Why should there be even one iota of doubt that I wouldn't be here? I just don't understand it," he said. "Kingfisher Airlines is a Plc. They (the local media) don't understand the concept of a Plc.

"In a Plc where is one man, who might be the chairman, responsible for the finances of the entire Plc? And what has it got to do with all my other businesses? I have built up and run the largest spirits company in the world in this country."

Asked whether he had flown to India on his plane, Mallya vented more frustration.

"You are probably referring to my plane being seized? Wonderful. I don't owe anybody money," he said. "Why should my plane be at risk. It's so stupid."

Mallya also controls United Spirits , which is in talks to sell a stake to UK giant Diageo Plc , and flagship liquor business United Breweries.

Asked about the Diageo talks, Mallya said no deal had been done yet: "Whenever we need to say something we will, we keep discussing but we don't know whether a deal will happen or not," he added.

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United Spirits chief Mallya not sure of Diageo deal

Liquor baron Vijay Mallya does not know whether a deal for UK drinks giant Diageo Plc to take a stake in his United Spirits Ltd will be struck or not, he said on Saturday.

Mallya has been scrambling to raise funds for his ailing Kingfisher Airlines Ltd , and has been in talks with the maker of Johnnie Walker whisky and Smirnoff vodka to sell a stake in United Spirits.

"Whenever we need to say something we will, we keep discussing but we don't know whether a deal will happen or not," Mallya told Reuters on the sidelines of the Indian Grand Prix, which he flew in from London to attend.

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See Rs 4000cr order book by the end of FY13: McNally Bharat

McNally Bharat Engineering has had a steady order inflow and it has won several orders worth Rs 600 crore in the recent past. Deepak Khaitan, Chairman of McNally Bharat Engineering said their order booking was slow last year and there has been a significant increase with a growth of 10 to 15 percent this year. Going ahead, the company is hoping to close the year with a Rs 4000 crore order book.

Khaitan further added that civil construction is going to be the company's largest segment in a few years. Apart from this, urban housing is expected to improve McNally's overall margins.

Here is the edited transcript of the interview on CNBC-TV18.

Q: What is pleasant about calling you and discussing things with you is that you are one of the few companies announcing orders in a fairly regular fashion. You recently won orders amounting to Rs 600 crore, can you tell us what is your order book looking like and how much has it grown in the past quarter or maybe year to date?

A: We had a slow start last year. Our order booking was slow and therefore, sales numbers in the coming year will be moderated. McNally Bharat has been growing at a frantic rate and we expected to maintain the growth but, because of the order booking last year, we are not able to do it this year.

However, we still grew by 10-15 percent in a very competitive infrastructure sector. Our order booking at the moment is around Rs 2,000 crore and we are hoping to close the year at about Rs 4,000 crore. There are a couple of large orders which we are in negotiation with. We hope to have a good order book that will give a good momentum for the year ahead.

Q: If you reach Rs 4000 crore, how much would you have booked in FY13 itself? How does that compare to what you would have booked in FY12?

A: In FY12, last year to date we had booked only Rs 600 crore worth deals. We have also booked orders worth Rs 2200 crore and the big boost is coming from a new vertical which is civil construction. We already have an order book of Rs 900 crore. Out of Rs 2200 coming from civil construction, we hope to take it to about Rs 3000 crore.

More to come.

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KFA has to satisfy DGCA with a viable plan: Ajit Singh

Cash-strapped Kingfisher Airlines employees resumed work on Friday after striking a deal with the management and agreeing to the staggered salary payment schedule proposed by the company. Reports said that many of them have received the salary for the month of March.

Meanwhile, Civil Aviation Minister Ajit Singh said that the airline has to satisfy the Directorate General of Civil Aviation (DGCA) and paying salaries is not enough. "How can I tell you what they would present to DGCA only they would know what he will present. They have to satisfy the DGCA that they have a viable operation plan. They have just paid salaries but there are many dues on Kingfisher be it tax or any other thing," said Ajit.

Airline CEO Sanjay Aggarwal is scheduled to meet the DGCA officials later on Friday to present a roadmap for the revival of the airlines. The airline engineers have to clear aircraft for airworthiness and the company has to prove there is no dispute with employees and that all arrears are being paid. The meeting comes after the striking employees and management shook hands on a stagerred salary payment plan. They have been promised that they will get four months salary before Diwali.

After 25 days of protest, a lockdown and a suspension of license, the airline is limping back towards normalcy. The airline management is expected to meet the DGCA on Friday after its employees finally agreed to return back to work.

All Kingfisher flights have remained suspended since September 30 due to the strike, followed by a lockout from October one and then suspension of their Scheduled Operator's Permit (SOP) or the flying license by aviation regulator DGCA. The license of Kingfisher was issued on August 26, 2003, and is valid till December 31, 2012.
 
The carrier, which early in 2011 had a fleet of 66 aircraft, now has ten including seven Airbus A-320s and three ATR turbo-props. It is saddled with a loss of Rs 8,000 crore and a debt burden of another over Rs 7,524 crore, a large part of which has not been serviced for several months.

This breakthrough came just in time for owner Vijay Mallya to land in Delhi and head straight for the Indian Grand Prix in Greater Noida. The question of course remains whether just the payment of salaries will be enough for Kingfisher to take flight once again?

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Kingfisher management discusses revival plans with DGCA

A day after resolving the impasse over salary issue with its employees, the Kingfisher Airlines top brass discussed revival plans with aviation regulator DGCA here today.

"It was a general meeting. We had a discussion with the DGCA to get a better understanding about presenting the revival plan (of the airline). We will get back to them very soon," airline CEO Sanjay Aggarwal said after a 30-minute meeting with DGCA chief Arun Mishra here.

"We have not submitted any revival plan yet. But we will present it soon. No time-frame has been specified," he said when asked by when they planned to submit their revival plan as well as revocation of suspension of their flying license (Scheduled Operator's Permit) by the DGCA.

The license of Kingfisher was issued on August 26, 2003, and is valid till December 31 this year.

Later, DGCA sources said that Aggarwal and Kingfisher promoter Vijay Mallya would soon discuss among themselves the operational and financial plan for revival of the cash-strapped carrier.

This would include the number of aircraft they have, the routes they want to operate on, apart from financial issues including debt repayment, the sources said, adding they would have to submit a comprehensive plan on all these issues to convince DGCA to revoke suspension of their flying permit.

But resumption of Kingfisher's flights may take at least 3-4 weeks as the airline would have to satisfy the DGCA on safety issues as well as the viability of their financial and operational plans.

Kingfisher employees have already resumed work after a 27-day strike and a 25-day lockout which was lifted by the management as it agreed to pay by December-end four months salary dues to the employees in a staggered manner.

The striking employees had earlier stepped up the heat demanding an immediate settlement while threatening to take their protest to the the upcoming Formula One Grand Prix in which airline promoter Mallya is involved.

"We will now finalize and present our resumption plan to the DGCA and hope to get their concurrence soon," a Kingfisher spokesperson said.

The carrier, which early last year had a fleet of 66 aircraft, now has ten -- seven Airbus A-320s and three ATR turbo-props. It is saddled with a loss of Rs 8,000 crore and a debt burden of another over Rs 7,524 crore, a large part of which has not been serviced for several months.

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Windows 8 to bridge gap between PC, mobile devices

Microsoft launched a radical redesign of its world-dominating Windows operating system, introducing a touch-enabled interface that attempts to bridge the gap between personal computers and fast-growing mobile devices powered by the company's fiercest competitors.

The debut of Windows 8 heralded the biggest change to the system since 1995, when the company first offered built-in Internet support. And with so much riding on it, the overhaul could be Microsoft's most important product since co-founder Bill Gates won the contract to build an operating system for IBM Corp's first PC in 1981.

To succeed, the new version will have to be innovative and elegant enough to attract consumers who've fallen in love with notebook computers, tablets and smartphones running software from Apple and Google.

"What you have seen and heard should leave no doubt that Windows 8 will shatter the perceptions about what a PC really is," Microsoft CEO Steve Ballmer crowed at a New York event to kick off the Windows promotional campaign.

The first PCs and other devices running Windows 8 were to go on sale today.

The software is designed for use on a variety of machines - desktop PCs, notebook computers and tablets, including Microsoft's new Surface tablet, the first computing device the company has manufactured after focusing almost exclusively on software for more than 30 years.

The redesigned operating system represents an attempt to pull off a difficult balancing act as Microsoft maintains its highly profitable heritage in software while trying to get a foothold in the newer, more fertile field of mobile devices.

So far, the booming mobile device market has been defined by Apple's trend-setting iPhone and iPad, Google's pervasive Android software and Amazon's Kindle Fire tablets. Tablets have been undercutting the sales of desktop and laptop computers since Apple released its pioneering iPad in 2010.

Another version of Windows 8 will be released next week for smartphones, which are overwhelmingly dominated by Apple Inc and Google Inc's Android software.

Microsoft is also opening a Windows 8 store featuring applications built to run on the system. The store is similar to the apps stores of Apple and Google and will include many of the same services.

More than a billion PCs currently run on Windows, including 670 million that use Windows 7, the last version of the operating system, released in 2009.

But the owners of most existing Windows machines aren't expected to switch to Windows 8 for at least a year, maybe longer. That means most of Windows 8's early usage will come from consumers, businesses and government agencies that buy new devices with Windows 8 already installed.

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Eyeing topline of Rs 80-100 crore going ahead: Cinemax

Cinemax India has demerged its business into two arms, one dealing with the multiplex business and the other having exhibition rights. The company demerged its exhibition business into a separate entity named Cinemax Exhibition India Limited and Cinemax Properties will now deal with the theaters. Jitendra Mehta, Group CFO of Cinemax told CNBC-TV18, the newly formed Cinemax Properties is mainly going to earn via rent on the theaters and the Nagpur mall business.

The company at present is willing to invest only Rs 8 to Rs 10 crore every year in Cinemax Properties. Mehta expects the second quarter topline to be in line with its Q1 performance. Going ahead, he hopes the topline will range between Rs 80 to Rs 100 crore and the margins are likely to stay at 18 to 20%.

Here is the edited transcript of the interview on CNBC-TV18.

Q: Give us a sense in terms of Cinemax Properties, what exactly does the real estate business contain for Cinemax and what are the projects coming up?

A: It is not really a real estate business. We are operating all the multiplexes and the theaters. Out of these, 9 theaters were owned by us. While the ownership right remained with the company, the entire exhibition business has been demerged to a new company. Therefore, it is not a real estate business at all.

We remain in the multiplex business only. The only thing is, Cinemax Properties is now holding those theaters for which it has ownership rights and the Cinemax exhibition company will be paying rent to Cinemax Properties. The business owns only the theaters and a mall. It is renting out and getting an yield income.

Q: That is the only source of income for Cinemax Properties, some in-house income?

A: Yes, there are three sources of income. One is by letting out theaters. The second source of income is from the Nagpur mall which is also owned by Cinemax Properties. We will be earning rent from the Nagpur mall as well. Thirdly, we have a small wind mill business and we derive some income from the power generated by it.

Q: But that means it is an in-house company which is paying a group company, will it be arms length, will it be a fair payment? How do we ensure all that for a shareholder would be a question of corporate governance, isn't it?

A: Yes. First we drafted the agreement, we kept the rates blank and then we got it independently weighed by an agency asking them to specify whether these terms are at arms length or not. Only on those certifications we finalized our agreement. We assure you that it will be purely at arms length, any transaction between two group companies will always be at arms length.

Q: Why exactly you underwent this restructuring? What is the rationale behind it?

A: The basic rationale was value capturing. When two businesses are combined people get confused, nobody was able to value whether you own the property or you run the multiplex business. The value of the property was not reflected in my valuation at all.

Now, since ownership has remained with one company and the multiplex business is with the other company, both companies will get its own independent right valuation. So to capture value is the only reason why we went for the demerger.

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Sun TV Network wins new IPL franchise bid

Thu, Oct 25, 2012 at 13:42

Sun TV Network today won the Hyderabad franchise of the Indian Premier League for an amount of Rs 85.05 crores per year, putting an end to the process of finding a new team in the wake of the controversial termination of cash-strapped Deccan Chargers.

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Sun TV Network wins new IPL franchise bid

Sun TV Network today won the Hyderabad franchise of the Indian Premier League for an amount of Rs 85.05 crores per year, putting an end to the process of finding a new team in the wake of the controversial termination of cash-strapped Deccan Chargers.

Like this story, share it with millions of investors on M3

Sun TV Network wins new IPL franchise bid

Sun TV Network today won the Hyderabad franchise of the Indian Premier League for an amount of Rs 85.05 crores per year, putting an end to the process of finding a new team in the wake of the controversial termination of cash-strapped Deccan Chargers.

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Sun TV Network today won the Hyderabad franchise of the Indian Premier League for an amount of Rs 85.05 crores per year, putting an end to the process of finding a new team in the wake of the controversial termination of cash-strapped Deccan Chargers.

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Samsung to pay Rs 2K for failing to repair defective mobile

Samsung Electronics India Pvt Ltd has been directed by a district consumer forum here to pay a compensation of Rs 2,000 to a customer for failing to repair a defective mobile sold to him. The North District Consumer Disputes Redressal Forum relied on the receipts issued by the service centre to hold that Samsung's customer care had failed to repair the phone and directed the phone manufacturer to rectify the fault.

"In these circumstance we find that complainant (Pawan Kumar) has proved that the mobile phone purchased by him was defective. In our opinion, ends of justice will be met if opposite parties (Samsung, its dealer and customer care) are directed to repair the mobile phone purchased by the complainant and directed to pay cost and compensation for deficiency in service.

"Accordingly, we direct the opposite parties jointly and severally to put the Samsung mobile phone purchased by the complainant in order and pay Rs 2,000 to the complainant towards the cost and compensation," said the bench presided by Babu Lal. The forum's order came on a complaint by Delhi resident Pawan Kumar, who had alleged that the Samsung phone he had bought for Rs 7,490 on January 22, 2012 was defective as from the day one it did not get charged when plugged in.

He had taken the phone for repairs to Samsung customer care twice but the problem was not rectified, Kumar had said in his complaint. As no one had appeared on behalf of Samsung, its dealer and customer care, despite service of notice, the forum had passed the order ex-parte.

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Honda Cars starts Brio exports to South Africa

Honda Cars India today said it is targetting the Southern African market to push exports and plans to ship 1,600 units of the hatchback Brio by the end of this fiscal.

The company shipped the first lot of 390 units of Brio from here today to South Africa. This is the first model from the company's stable to be exported to that country.

"We are first shipping the Brio to South Africa. We are also looking countries in SADC (Southern African Development Community) such as Tanzania, Kenya, Mauritius and Seychelles," Honda Cars India (HCI) Senior Vice-President Jnaneswar Sen told PTI here.

When asked how many units of Brio the company is looking to export to the SADC market, he said: "By end of March next year, the target is 1,600 units." Sen said Brio, which is rolled out from the company's Great Noida plant, has 90 per cent localisation.

"We are producing 2,500 per units of the Brio per month and the exports will also come from this," he said.

HCI has been focussing on neighbouring countries in the SAARC region for exports. In the last 14 years, the company has exported a total of 1,028 cars, including City, Jazz and Accord, to SAARC region. Now it has added Brio to the export portfolio.

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Cut red-tape, initiate long-term reforms for growth: Lobet

Jean Michel Lobet, private sector development specialist, World Bank explains to CNBC-TV18 that reduced formalities and implementation of long-term reforms was the key to boost growth in India and improve its ranking in the World Bank's Doing Business Index.

Also Read: World Bank index ranks India at 132 for slow reform-process

Below is an edited transcript of the analysis on CNBC-TV18.

Q: India's low ranking has been unchanged. India continues to be at 132, but over the past several months it seems to be at the forefront of carrying out reforms. What explains the low ranking and is there any silver-lining at all as far as this report is concerned with regards to India ?

A: For the last eight years, India has implemented 17 reforms and has dramatically improved its investment climate as measured by Doing Business in such a way that it is amongst the 28 economies around the world that have improved the most over the last 8 years.

So, this is very encouraging news and if we only take into consideration the last 12 months the ranking of India has remained stable. We have also recorded an important reform in the area of construction permits with the simplification of the process to obtain a construction permit.

Q: What are the measures that Indian can carry out in the long and short term that will help improve ranking on this study?

A: Countries that have successfully improved in the Doing Business Report have followed a dual strategy of simplification of regulatory processes which makes it easier for small and medium-sized entrepreneurs to conduct business with reduced formalities which creates more jobs and initiating complex, institutional and long-term reforms such as making the courts more efficient and responsive.

All these create a better sense of confidence for investors because they know that the courts are efficient. These are the type of initiatives that can be undertaken in the future.

Q: If India does manage to improve on some of the parameters that you have talked about, how much would you think that would add to the GDP?

A: A few years ago in India, a study found that progressive elimination of the licence regulating entry and production in industry led to a 6-percent increase in the registration of new firms. This proves that small initiatives in reducing procedures have an important impact on creation of more companies, jobs and ultimately, increase economic growth.

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Chhattisgarh aims at Rs 10000 cr investment in solar energy

Chhattisgarh Government has set an ambitious target of attracting Rs 10,000 crore worth of investment in the solar energy sector in the near future.

Talking to reporters here today, Chief Minister Raman Singh said the government has formulated a clear and comprehensive policy which envisages seeking Rs 10,000-crore investment in the sector.

The sector has immense potential to generate large scale employment. A solar energy plant with Rs 10-crore investment has the potential to create nearly 500 jobs, he said. On the other hand, a thermal power plant with Rs 10,000-crore investment generates just around 700 jobs, he said. Chhattisgarh, which yesterday unveiled a new policy for the solar energy sector, is committed to reduce dependence on coal to meet its power needs, Singh said.

In the long-term, the tribal-dominated state wants to embrace energy sources like solar in a big way as they are clean and environment-friendly, the Chief Minister added.

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BPCL imposes over Rs 87 lakh fine on gas agency

Bharat Petroleum Corporation Limited (BPCL) has imposed a fine of over Rs 87 lakh on a gas agency in the district for alleged irregularities in supply of cylinders.

The gas agency at Chandkhuri village was allegedly involved in black marketing of domestic gas cylinders and supplying it to commercial establishments on fake cards made in the name of villagers, a BPCL official said. BPCL imposed the fine of Rs 87.57 lakh on the dealer when the matter came to light following investigation by the Food Department of the state government. A case has been registered against the owner of the agency, who is absconding, police said.

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Kingfisher succumbs to pressure, to pay Oct salary to staff

Apparently succumbing to pressure from its employees demanding clearance of salary dues, Kingfisher management on Wednesday said it would expedite payment of October salary ahead of Christmas and claimed that "most" of them had agreed to resume work from Friday.

In a fresh letter to the striking staffers, airline CEO Sanjay Aggarwal said, "We have received several requests asking for status of salary for the duration of partial lock-out period and asking for salary in December 2012 to be paid one week earlier than December 31, 2012.

"I am pleased to confirm that as a goodwill gesture the company will pay full October salary to all employees and we commit to paying the same prior to Christmas, 2012."

Counter to the employees' claims that a majority of them were opposed to the offer made by him earlier, Aggarwal claimed that "most" of them had sent their confirmation to resume duty from October 26. "We request the rest of you to send your acceptance at the earliest," he said.

When contacted by PTI, Aggarwal refused to divulge the source of cash flow for the airline to manage the salary payment.

The employees have been on strike since September 29 demanding payment of salary dues since March this year. The strike had led to the company declaring a lockout from October one, which was followed by suspension of their Scheduled Operator's Permit by aviation regulator DGCA.

The airline employees, who held meetings in Delhi, Chennai, Bangalore and Mumbai, had yesterday rejected the offer of payment of three months' salaries in a staggered manner as part payment of dues and insisted that it should be paid in lumpsum.

However, its Mumbai-based pilots had said they were ready to accept the deal offered by the management as a condition to resume work. Salaries have been pending for seven months.

Aggarwal had yesterday sent out emails to individual employees offering them three months salary by Diwali in mid-November, saying if they accepted the offer, they should send an acceptance note and resume work from Friday, which was objected to by the protestors.

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Kingfisher needs to give sound plan, govt can't: Ajit Singh

Civil Aviation Minister Ajit Singh has refused to intervene in the Kingfisher Airlines mess. He said Kingfisher is a privately owned company and so the government can't intervene and make the airline pay staff salaries. He also said that the payment alone will not be enough to make Kingfisher fly.

"It is a private company, doesn't come under any ministry. Yes they have a problem, but the government cannot interfere. The Kingfisher problem is very big. They have to give a very sound plan to the government that they can pay taxes and their dues," Ajit Singh said.

Also Read: Kingfisher crisis continues as staff wants 4 months salary

Kingfisher's efforts to take off crash landed after it's 6,000 plus employees, who haven't been paid in the past seven months, refused the management's offer of three months' salary before Diwali. They say it's an eyewash and want chairman Vijay Mallya to come to the talking table.

The Aviation Minister also said that the payment alone will not be enough to make Kingfisher fly.

Speaking to IBN18 Editor-in-Chief Rajdeep Sardesai, Kingfisher employee Subhash Chandra Mishra said, "I believe in Dr Mallya, but not in Sanjay Agarwal or Hitesh Patel, because many times they have gone wrong. In the past 13 months, we have got only five salaries. How can you trust them?"

Kingfisher Airlines CEO Sanjay Agarwal on Monday said that the partial lockout of the crisis-hit airlines had been extended till October 25 from the earlier date of October 23. The airline company on Monday held a closed-door meet with its employees' union in Mumbai and offered to pay three months' salary before Diwali.

What brought Kingfisher Airlines down?

The airline company was Chairman Vijay Mallya's muse. He chose to run it himself, even deciding to interview air hostesses, pilots and other staff members himself. So did this obsession lead to the company's decline? Apart from Mallya, few others were allowed to run the show. Smallest decisions had to wait for the Chairman's go-ahead, say management insiders.

However, the real crumble began with the acquisition of Air Deccan for which Mallya paid over Rs 550 crore. In a mad rush to fly international, the deal was struck but young Kingfisher was not able to cement the marriage. The low cost model of Deccan clashed with the premium Kingfisher product, resulting in total failure and ultimate grounding of Deccan.

Insiders have also pointed to poor financial management as the other big example. Mallya brought in financial heads at the UB Group to run the show at Kingfisher Airlines. Rivals like Indigo, on the other hand, hired airline finance experts. People used to running a liquor business were unable to grapple with the low-margin airline business.

Mallya borrowed heavily from banks led by the State Bank of India (SBI). The airline which never made profit since the time it launched in 2003 had many takers. Experts say banks could not refuse as it was promoted by India's top liquor brand. Then came the 2008 fuel crisis. Fuel prices skyrocketed but Kingfisher continued to expand. It continued to lease aircraft for its foreign services, despite passenger traffic showing signs of a slowdown.

Leadership was the final nail in the coffin. Mallya never had a professional CEO run his airline. When he got one, it was too little too late. Sanjay Agarwal joined Kingfisher when the airline was already in a tailspin.

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Idea shares gain on margin improvement

Shares in IDEA Cellular gain 1 percent on Tuesday, despite what analysts call a mixed set of quarterly results, as investors are comforted by the improvements in margins.

Idea said consolidated net profit rose to 2.4 billion rupees for its fiscal second quarter ended in September from 1.06 billion rupees a year ago.

Also Read: Idea Cellular Q2 net profit up 2.5% at Rs 240 cr

Morgan Stanley says a 200 bps fall in quarter-on-quarter sales and marketing costs as a percentage of revenue has improved EBITDA margins by around 70 bps to 26.8 percent.

However, the investment bank says results were largely weaker than expected on the back of falling Q-o-Q revenue and weak traffic that weighed on EBITDA.

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KFA shares fall 4.6% after staff rejects salary offer

Shares of Kingfisher Airlines tumbled by 4.6 per cent on the bourses in the morning trade after the employees rejected the airline's offer of payment of three months' salary. The scrip of the debt-laden carrier fell by 4.59 to hit the lower circuit limit of Rs 10.40 in the opening trade on the BSE.

Similar movement was seen on the National Stock Exchange, where stock dropped by 4.61 per cent to touch its lowest permissible limit for the day of Rs 10.35. Kingfisher had yesterday offered its striking employees staggered payment of three months' salary dues before Diwali in mid-November in a bid to get them back to work but a section of employees rejected the offer prolonging the 23-day impasse.

Also Read: Kingfisher needs to give sound plan, govt can't: Ajit Singh

Under the deal offered by the management, the salary dues of one month would be paid in 24 hours, another month's installment in seven days and the third installment before Diwali on November 13, sources had said, adding that efforts would be made to clear fourth installment by December. The operations of Kingfisher remain disrupted since September 30, first due to a strike by its engineers and pilots, then the lockout declared by the management which was followed by suspension of its flying permit by Directorate General of Civil Aviation (DGCA) on Saturday.

Shares have dived more than 30 per cent since Kingfisher has been grounded. Meanwhile, the BSE's benchmark Sensex slipped by 20 points to trade at 18,773.73 points.

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Govt penetration claim on digitisation wrong: cable body

A body of cable operators has contested the government's claim of 87 per cent digitisation in four metros, claiming that it drastically reduced the number of cable television connections to prove higher penetration.

"The claim is not true as Ministry of Information and Broadcasting has reduced the cable connection estimate in the four metros from 1.33 crore to just 68.40 lakh in three months," Cable Operators Digitisation Committee convenor Swapan Chowdhury told PTI here.

"In a meeting with I&B officials it was estimated that the combined cable connections of all four metros was 1.33 crore. Yet in a subsequent meeting in September the number suddenly was reduced to just 68.40 lakhs," he said. The Information and Broadcasting ministry had in a press release on Friday claimed that 81 per cent figure had been reached in Cable TV digitisation and said if the figures of Direct to Home connections were added 87 per cent Digitisation had been achieved in the four metros.

He said that the previous estimate was based on feedback provided by the cable operators' body and claimed that the reduced figure was incorrect. "This was done deliberately to prove digitisation a success at the cost of consumers," he said. He claimed that confusion prevailed in all aspects of digitisation from MSOs to local cable operators to consumers.

"Still there is no agreement between broadcasters and MSOs. Neither the MSOs nor the cable operators have signed any agreement," he said. Unable to convince Telecom Regulatory Authority of India to revise the unviable tariff order announced in April, the cable operators had approached appellate authority TDSAT for a respite.

"Hearing is complete and we expect the order any day and then only the next course of action can be decided. The tariff announced by Trai is next to impossible because of higher cost for digitisation," Chowdhury said. Moreover, he said, consumers were not able to know about the final cost with the Trai help desk unable to provide clarity and information except saying television without set top boxes would be blacked out.

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LT Finance buys FamilyCredit for Rs 120cr

L&T Finance Holdings has acquired auto finance company FamilyCredit from its French parent for Rs 120 crore. The company has entered into an agreement with Societe Generale Consumer Finance on 19 October to buy 100% of FamilyCredit, the company informed BSE on Monday.

FamilyCredit had a loan book of approximately Rs 1,287 crore, of which two-wheeler financing constituted 53% and car financing 35% as on 30 June. It has 53 branches in 16 states in India, a presence in more than 1,400 dealer outlets, and more than 400,000 customers, N Sivaraman, President and Whole-time Director at L&T Finance Holdings told CNBC-TV18.

He sees the two-wheeler financing business growing at 25-30% in the next two-three years.

Sivaraman says the company has Rs 300 crore of additional cash lying on its balance sheet, which it may use for "selectively buying assets". 

Earlier in May, the company had acquired the mutual fund business of Fidelity to expand its presence in the space. Sivaraman says Fidelity buy has received SEBI approval.

Below is the edited transcript of Sivaraman's interview with CNBC-TV18. 

Q: Can you take us through the details of the contours of this acquisition? How are you funding this Rs 120 crore and how will this add to the current business of L&T Finance Holding?

A: We have about Rs 250 crore of book in the auto loan segment. With this acquisition consolidates and takes us to a total level of about Rs 1,600-1,800 crore  of overall loan book size, which becomes one step towards becoming a material player in this segment. Family Credit comes with around 53 branches and presence in about 1,500 locations, which is important prerequisite for us to be successful in this business.

With our own 100 plus branches and about additional 11 branches which are not overlapping, we create a reach which is going to get far wider than what Family Credit had. The current book size is about Rs 1,300 crore with about 53 percent of book coming in from two wheelers and about 33 percent coming in from auto cars.

Given the way the demographics are evolving in the country and the penetration of two wheeler financing to increase over a period of time as people want to own higher sized vehicle, definitely there is going be to be a large opportunity and should grow in excess of abut 15-25 percent in the next three-five years. This becomes an important opportunity for us and helps us scale up and become a fairly sized consumer financing player as well in the country.

This company has got a capital adequacy of about 16 percent for the Rs 1,300 crore balance sheet and acquisition of Rs 120 crore definitely need substantial value for us in that position. This will further be enhanced with synergy benefit which is by integrating various branches plus the use of centralised operation facility that they have build. Our own ability to bring down the borrowing cost will all make it really value for us overall.

The book quality is good, almost the entire old book has been fully provided for. Also the sourcing quality has been consistently improved. We think all of this will be extremely valued accretive for us.

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Rain Commodities to buy Ruetgers for $915 m

Industrial group Rain Commodities has agreed to buy German coal tar distilling company Ruetgers from Nordic private equity firm Triton for 702 million euros.

The sale of Ruetgers, a maker of industrial pitch, oils and resins for use in aluminium smelters and the steel industry, is expected to close in the first quarter of 2013, Triton said in a statement on Monday.

Bankers familiar with the process have said that investor Pamplona had been in advanced talks to buy the business for more than 600 million euros, but walked away from the talks.

Triton had also been in talks with prospective buyers such as chemicals company Himadri in Asia, where the coal tar industry is growing fastest, they said.

As Triton struggled to strike a deal it prepared to take a dividend out of the German firm, a move that revived the interest of prospective trade buyers, banking sources said this month.

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Unity Infra. - A company with strong systems procedures

 

In an exclusive interview with moneycontrol.com's Kingshuk Mukherjee, Abhijit Avarsekar, Vice Chairman, MD & CEO - Unity Infraprojects Limited describes the various challenges that the company overcame to become a one of the market leaders in their industry and the road map for growth of his company.

Below is the transcript of the exclusive interview

Q:What are most important parameters when you decide to bid for critical / large important projects in India?

A: Credibility of the prospective  client in terms of financial soundness and business ethics,  size of the project; level of competition;  type of contract, scope of work, geographic location, payment schedule and profit margins are the most important parameters that we consider while bidding for major projects. Besides this order-book status and availability of resources also impact  decision making. 
 
Q:How big is the market for EPC projects in Western India?

A:Western India has continually attracted business houses and investors in view of positive commercial environment. Also states like Gujarat / Rajasthan spend significant amount of  money on public projects  .That way opportunities are robust in western part of country. 
 
Q:How do you maintain margins in the highly competitive roadways / transport vertical?

A:Key to success is to look for slightly complex projects and also for markets/geographies which are less crowded. Also one needs to team up with capable local associates. We are successfully executing Railway projects in remote places like Jharkhand and Manipur with the same strategy.
 
Another strategy is look for bigger "Design and Build" packages of Metros/Freight Corridors/IRCON where competition is less. We have been able to be within striking range of Delhi Metro and JnK rail tunnels with this game plan and going forward we are confident of making a breakthrough in Kochi and Ahmedabad metro.
 
Q:What have been the key takeaways from executing various projects across the length and breadth of India?

A: A string of successful contracts one after the other, each of increasing ticket size and complexity led Unity being recognized as a market leader in India. In this process, we have developed a good team of internal resources and external associates which helps us in maintaining growth momentum. 
 
Q: What would you describe as the key challenges you face when competing with the big players in the infrastructure business?

A: Resources, financials, credentials and technical requirements for pre-qualification matter while competing with big players for big ticket project. To dodge these challenges, we already have established strategic tie-ups with like-minded and capable partners to qualify for big ticket initiatives .Also lot of thrust has been placed to augment in-house capabilities in new sectors like Metros , Water Resources, Hydro-carbon.
 
Q:What is your strategy to consolidate and strengthen the company's position in the existing verticals of Buildings, Transportation and Water?

A: Unity Infraprojects has emerged as a pan-India company from being a Mumbai- and Maharashtra-centric entity. With over 3 decades of experience in the infrastructure space Unity has developed its expertise and proven execution capabilities. We are professionally managed company that believes in profitable, sustainable, and enjoyable long-term relationships with its all its key stakeholders--including employees, customers, shareholders, suppliers, local communities members. Over these years we have developed long term relationships with our clients, which would help us further to enhance order inflows with bigger ticket size in the infrastructure sector.
 
Q: What plans do you to expand into newer geographies?

A: We have already made our presence in the Nepal and Bangladesh. Besides these we are looking for EPC opportunities in Middle East and African markets. In domestic market we have recently opened up in states like Gujarat,MP, Bihar, Jharkhand, Orissa and we need to strengthen our roots in these states.
 
Q: Which verticals or sectors do you see as the most promising in terms of growth for the next decade?

A: Railways, Hydro-electric and Lift Irrigation, Oil and Gas.
 
Q: What is your competitive edge while competing with the bigger players in the industry?

A:Our edge essentially lies in being able to work with a lean structure and optimal utilization of resources. That helps us in keeping overheads low. Also our ability to rope in local associates helps.
 
Q: How do you plan to retain and attract talent?

A: Best way to retain and attract talent is to connect with employees at personal level, mentor them and align them with bigger picture of organization.
 
Q: What is your vision for Unity in next 5 years?

A: We want to emerge as a company with strong systems and procedures. Once that is done things like topline growth, profitability and employee satisfaction will automatically emerge.
 
Q: What lessons have you learnt in managing growth especially during slowdowns?

A: The most important lesson is to build a strong support system of stakeholders around you which includes employees, associates and financial institutions

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Over 15 Kingfisher Airlines planes not fit to fly: Sources

In fresh trouble for cash strapped Kingfisher Airlines, at least 15 planes leased to them have been stripped clean, the leasing company sources told CNN-IBN. The 15 aircraft have been stripped of crucial parts at various airports and have been declared not fit to fly.

Sources said that inspection of two aircraft in New Delhi found the passenger and cockpit interiors cleaned out. Airport authorities refused to take away aircraft till all dues are paid. Just seven Kingfisher aircraft are currently fit to fly.

Also Read: Kingfisher shares drop after licence suspension

Facing the real possibility of a shut down, Kingfisher Airlines management is slated to hold talks with its 4000 employees on Monday in Mumbai. Three days back the Directorate-General of Civil Aviation (DGCA) suspended its licence - putting the airline in further jeopardy. The employees have been seeking payments of all pending dues - they haven't been paid for seven months. But the management has so far offered just a month's salary. Sources said that if talks fail on Monday, striking employees will launch a nationwide protest and try and confront Chairman Vijay Mallaya at the F1 track in Greater Noida, where the races begin on October 26.

The DGCA had issued show-cause notice on October 5, to the liquor baron Vijay Mallya-owned airline asking why its flying licence should not be suspended or cancelled as it was not adhering to its flight schedule and "abruptly cancelling its flights time and again during the last 10 months", causing great inconvenience to the travelling public. The DGCA had given the airline a 15-day time to reply to its notice, which was to expire on Saturday.

Kingfisher was issued an airline licence on August 26, 2003. It was actually issued to Air Deccan which was bought over by Kingfisher. It is valid till December 31, 2012.

The sources said Kingfisher was on cash and carry by most service providers and the government did not want a situation where the airline re-starts operations and then keeps flying in fits and starts, as has been happening since last year-end. In the latest instance, its pilots and engineers went on strike from September 30 to protest against non-payment of salary since March. The airline then declared a lockout on first till October 4 and then extended it till October 20. It as further extended till October 23 on Friday.

Kingfisher, once India's second-biggest airline, last week extended what it has described as partial lock-out until October 12. India recently allowed foreign airlines to buy a maximum 49 per cent stake in local carriers, a move long lobbied for by Kingfisher, although no airline has publicly expressed an interest in investing in Kingfisher.

Kingfisher has been saddled with a huge loss of Rs 8,000 crore and a debt burden of over Rs 7,000 crore, a large part of which it has not serviced since January. Several of its aircraft have been either taken away by its lessors or grounded by the Airports Authority of India for non-payment of dues during the past few months. Kingfisher's net loss in 2010-11 was Rs 1,027 crore and it doubled to Rs 2,328 crore in 2011-2012. The airline also owes money to 17 banks.

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KFA need more credible plan to stay afloat: KPMG

Amber Dubey, head aviation, KPMG shares his views after DGCA suspended KFA licence.

Below is the edited transcript of his interview to CNBC-TV18.

Q: What is your initial reaction to the cancellation of this licence? Do you think that things have come to an end for Kingfisher with regards to the operations now?

A: This was unfortunate but it is not unexpected. We had been expecting it for sometime. Already there were speculations but this action now actually puts an end to that speculation.

Q: How do you think the event will progress from hereon? What would be the time line and events that could follow post the suspension of the licence?

A: Now they have to come back with even more credible plan as to how they plan to revive the airline and he DGCA will consider it that with a magnifying glass. If it does not meet scrutiny then their licence will be finally revoked and that could be an end.

Q: What would be the credible plan that could be submitted by Kingfisher at this point in time with regards to a possible bleak revival if there is a chance of it?

A: It has to acknowledge the current realities and for that licence you have to have at least five operational aircrafts. We have to first acknowledge that things have gone back and now from here we are going to pull it back. Unfortunately, now the employees will have to be asked to leave. The routes have to be chosen very carefully it could just be the trunk routes and then start the business. Track it every three months, six months and then gradually ramp it up to 10 aircrafts, 15 aircrafts and so on. The plan has to be very simple and credible. Which That anyway is going to through a lot of scrutiny by DGCA.

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Fares may go up with KFA's suspension: Ajay Prasad

Ajay Prasad, former aviation aecretary, says that in this situation is very difficult for Kingfisher to make a comeback. They do not have a winter schedule; it will be difficult to retain their employees. Kingfisher haven't yet been able to give any concrete plan as to how they are going to pay the salaries and with out that it sounds very difficult for them to make a quick comeback.

Below is the edited transcript of his interview.

Q: Safety is their predominant concern? Do you think at this point there is a possibility for Kingfisher to revive operations?

A: Today's development was not totally unexpected. In this situation is very difficult for Kingfisher to make a comeback. They do not have a winter schedule; it will be difficult to retain their employees. Kingfisher haven't yet been able to give any concrete plan as to how they are going to pay the salaries and with out that it sounds very difficult for them to make a quick comeback. Kingfisher promoters and the management has to do massive amount of work in terms of recapitalization, whole new management strategy and a business plan to see whether it comes back and then as a passenger one would look forward to making a reappearance if it can.

Q: How long does a suspension continue and what would possibly lead to a cancellation of the licence completely? What would the difference be in terms of this seriousness of a cancellation of licence vis-à-vis just a suspension at this point?

A: Cancellation is a very definitive step which prevents the airline from doing any further business. A suspension as it has happened at this moment still gives an opportunity. If the DGCA has asked Kingfisher if he can still come up with a viable plan to satisfy them that the air worthiness of the aircraft will be maintained, the integrity of the schedules will be maintained and credible or kind of operation would be continued. If they are able to satisfy the DGCA on these account then this suspension can be revoked and the airline can continue to fly again.

Q: What would now be the dynamics that would play out in the aviation industry itself? What would it mean in terms of hikes, fares going forward and how exactly do you think it could possibly be control considering that now we definitely do not have one player in the Indian market?

A: In the last few days when the winter schedule for 2012-2013 was announced and Kingfisher didn't have any flights in that schedule already it was well known in the industry that there will be 19 percent shortfall in the number of seat availability as compared to the previous year. So, this will distort demand and supply position. With 19 percent lower seats being available I see the prices, the airfares moving up by all the other airlines and this has also been a little further compounded by both Air India and Jet Airways scaling down to some extent their operations. I see the fares going up and it is rather ironical to say so but it will help the bottom-line of the other airlines which are working.

Q: How lucrative do you think can FDI in aviation would be at this point because we haven't really heard of anything concrete come through with regards to a possible opportunity for a foreign player actually picking up stake in the Indian aviation companies. Do you think that it is possibly too soon and may be we will possibly hear something more concrete going forward?

A: We have to look at this decision in its proper perspective. FDI in aviation was allowed up to 49% even before this. The only restriction was that foreign airlines could not invest in Indian domestic carriers. This restriction has been removed. It has come at a time when most of the Indian carriers are in difficult financial situation. So, any investor from abroad who wants to put in money will have to do a due diligence.

He may see whether what are the possibilities of getting returns from their investment and only then very cautiously they would proceed to go ahead in this area. There are a few good candidates among the Indian carriers which in the near future would attract some foreign investments, but it will take time because this is a process where a lot of work will have to be done by the investors and the domestic carriers here to make themselves more attractive to investors abroad.

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'Decision may help Kingfisher arrange funds'

Aviation regulator DGCA today suspended the flying licence of Kingfisher Airlines  after the beleaguered airline failed to come up with an adequate reply to the showcause notice. Kingfisher also could not provide a viable plan for its financial and operational revival and resolve the impasse with its employees over payment of their salary dues.

Jitendra Bhargava, former ED of Air India said it is a beneficial decision taken by DGCA. According to him, this will help owner Vijay Mallya to arrange for some money and ensure that his employees are paid. However, it is up to the government now to decide whether the licence will be kept under suspension or will be cancelled altogether.

Bhargava further added that Kingfisher has already accumulated a lot of debt and it can no longer borrow money from banks. Therefore, the situation is not at all rosy for the company at the moment.

Here is the edited transcript of the interview on CNBC-TV18.

Q1: Your initial take with regards to the developments on Kingfisher?

A:I have maintained that it is a very beneficial decision taken by DGCA for Kingfisher. Perhaps, Vijay Mallya was not being able to take a call on suspending operations. Government has in a way facilitated that. Now Mallya can go ahead and look for ensuring that he can get adequate resources to put the airline back, in case it is feasible. Alternately, the government will have to take a call on whether to keep the licence under suspension or cancel it altogether.

He can take his time get the money, ensure that the employees get paid, all the other vendors get paid and perhaps start on a clean slate. That to me looks inevitable; it looks an impossible thing at the moment because the debt on its balance sheet is too huge. Banks are unlikely to lend anymore money; I don't think he will be able to get enough money from his own resources to put in. Overall, it doesn't sound a very rosy picture for Kingfisher.

Q: I wanted to get in a point which an aviation expert was talking about earlier, that the minimum amount which would possibly be needed in order to start operations would possibly be five operational planes etc. Considering that they do not have any sort of working capital, even if they do get to that point in terms of starting operations on a minimal basis, how sustainable do you think that would be?

A: I don't think there is any chance of a sustainable venture under the banner Kingfisher. Business model of Kingfisher has been flawed. Five aircraft stipulation is a government stipulation for any airline to have a licence and that is a different thing. We are talking in terms of money.

How will he garner enough resources to pay the existing vendors, ensure that the companies from whom he has taken the aircraft on lease are paid? He is regarded by the industry as a serious player and not something that he can start operations and again forced to be suspending operations. DGCA in my opinion has a crucial role to play.

If Vijay Mallya can submit a proposition which is sustainable, which shows that he has a steady flow of money coming in and only then should this suspension be revoked. Otherwise, there are hard tines for Kingfisher.

Q: What according to you is the way forward now? What do you think will be the next step that we could see possibly from the DGCA and may be even from the lenders at this point in time? Do you think that liquidation of assets, whatever is remaining on Kingfisher's books etc would now come to a point where there would be liquidation of assets?

A: If you look at it, in the last 6-8 months Mallya has tried his best. Now there is a sense that a lot of crony capitalism goes on and as a result of it no hard decisions were taken 6-8 months ago. In my opinion, the most logical course would have been for Vijay Mallya to have suspended his operations 7-8 months ago. He wouldn't have sustained so many losses. He has only added up to the losses in the last 7-8 months without giving any promise to the industry that he can ensure Kingfisher's survival.

As far as DGCA is concerned, I do not know whether DGCA has stipulated in today's order that Vijay Mallya is given four weeks time to submit his proposal which will be reviewed by DGCA. In case it is an open ended kind of a thing, it is again a wrong thing for the DGCA to have done because you cannot be playing with the market for too long in this scenario.

We have noticed that the existing carriers have dropped their capacity by 19% in the winter schedule vis-à-vis the winter schedule of last year. What impact will it have on the fares for the traveling public? This is something that the government needs to answer, DGCA needs to answer, they cannot be mute spectators to what is happening in the industry and in the market.

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Indian Bank confident to lower its NPAs

In this quarter, Indian Bank posted rise in NPAs and worsening of asset quality, However, the management is confident that the bank is geared up to make more cash recoveries and going forward the NPAs will reduce. 

TM Bhasin, CMD, Indian Bank, says that gross NPA as on March 31 2012 was 2.03 percent and net NPA was 1.33 percent. We have been able to maintain the asset quality at 2.06 percent gross and 1.33percent net. In the first half, cash recovery of Rs 353 crore has been made. The bank is fully geared up to make more and more cash recoveries and up gradations. Going down the line the gross NPA should be less than 2 percent and net NPA should be less than 1.3 percent.

The restructured amount for power loans stands to around Rs Rs 2,300 crore in our balance sheet. The loans have been restructures at better rates and our rate of interest on these has gone up from 11.50 percentto 12.75 percent. These loans are further guaranteed by the concerned state government. So, there is no concern on this. This quarter restructured book has not gone up very significantly.

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Indian Hotels tries to woo Orient-Express with 40% premium

Indian Hotels hopes to be third-time-lucky when it comes to acquiring Orient-Express Hotels. Indian Hotels vice-chairman RK Krishna Kumar says that the latest USD 1.2-billion bid should win the day as it is at a handsome 40 percent premium.

He also told CNBC-TV18's Menaka Doshi that he expects to fund the acquisition by selling non-core assets. "In the previous two attempts at making the offer, no specific price was put on the table."

Also Read: Retiring Ratan Tata makes bid for hotel group

Below is an edited transcript of the interview on CNBC-TV18.

Q: Now you are hoping a 40 percent premium to the current stock price is going to go in your favour?

A: We believe that it's a healthy and rich price. Now it is really up to the board of the company and this is not a hostile bid.

Q: But was it solicited?

A: No, it is not solicited. We don't expect to be solicited every time. If we wanted to make a hostile bid, we could have gone straight to the shareholders and made a bid. We think that this offer is very good for Orient Express and for the Taj group. It is up to the board of that company to take a decision.

Q: The last time they rebuffed you saying that didn't want the acquisition to help enhance the non-performance of Indian Hotels' foreign units. I am just wondering why you think you have a chance yet again given the nature of the rebuff?

A: I don't think we should really be too concerned about this year not being profitable for one particular hotel or for the Orient Express Group. This should be seen in a larger strategic context. We are bringing two great brands together.

Q: Are you not concerned about the fact that the economy is in a very difficult phase? The hospitality business is not doing very well and you are doing a transaction that is heavily leveraged?

A: We expect to be able to bring down leverage quite significantly over a period of year. There are specific plans that we have drawn up to reduce the leverage and a lot of it is quite possible for us to do.

Q: Can you share the amount of money offered for this deal and how you hope to bring the leverage down? What impact it will have on the Indian Hotels' balance-sheet?

A: We are talking about divestments of some assets which are not core. I was saying that this is a more strategic issue and it has got a certain amount of leverage.

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Kingfisher Airlines asks for more time, lockout extended

All eyes are on Kingfisher Airlines which faces suspension of its license on Saturday after it failed to reply to any of the questions posed in the Directorate General of Civil Aviation (DGCA) show cause notice.

Instead, the airline has asked for time to reply in person to the notice. The DGCA is mulling what steps should be taken next with a team of legal experts. A decision is likely to be taken in the next few days. DGCA sources said that they are unlikely to cancel Kingfisher Airline's license. Meanwhile, no resolution seems to be in sight to the airline's deadlock with its striking employees.

In a statement, the debt-ridden airline announced that that it has extended it's ongoing lockout to October 23. Meanwhile, Kingfisher itself remains hopeful of being able to resume operations by November. In a statement issued, it said, "Kingfisher Airlines Ltd has extended the partial lockout until October 23, 2012. We had a positive meeting with employee representatives on October 17 and are hopeful of reaching common ground when we meet again next week. Currently, we anticipate resuming operations on November 6, subject to our resumption plan being reviewed and approved by the DGCA."

Reacting to the airline's reply, official sources said the DGCA was consulting legal experts on what action - suspension or cancellation of flying licence - could be taken against Kingfisher for failing to resolve the 21-day impasse with its employees over non-payment of seven-month salary dues and resuming operations. "We will take a view on this very soon, probably within a couple of days," a source said, replying in affirmative when asked whether suspension was on the cards. Among the options could be suspension of flying licence or give them some more time."

The DGCA had issued show-cause notice on October 5, to the liquor baron Vijay Mallya-owned airline asking why its flying licence should not be suspended or cancelled as it was not adhering to its flight schedule and "abruptly cancelling its flights time and again during the last 10 months", causing great inconvenience to the travelling public. The DGCA had given the airline a 15-day time to reply to its notice, which was to expire on Saturday.

The official sources made it clear that Kingfisher could not resume operations till the DGCA gave the final clearance. The beleaguered carrier did not mention extension of the

lockout in their "open-ended" reply to DGCA, they said, adding that the airline, in its letter, sought more time to prepare a response to the DGCA notice but did not give any deadline.

Kingfisher was issued an airline licence on August 26, 2003. It was actually issued to Air Deccan which was bought over by Kingfisher. It is valid till December 31 this year.

Suspension of flying licence, which is generally until further orders, would entail immediate halt to all bookings on the entire Kingfisher network as well as through travel

agents, the sources said.

Whenever the airline approaches DGCA that they were ready to resume operations, the regulator would satisfy itself that the airline was fully prepared to fly, including preparedness of the staff to operate flights, the airline's capacity to pay for the operations and all safety measures. In case of cancellation of the licence, the airline would have to start afresh, apply to the ministry for a licence and complete the entire long-drawn official, legal and technical processes and get all regulatory approvals.

In its reply, the airline blamed industrial unrest for not being able to operate its flights. It also claimed its good safety record and on-time performance over the years and

welcomed government's decision to allow foreign airlines to pick up stake in Indian carriers. In the final paragraph, Kingfisher's Executive Vice President Hitesh Patel said the company needed more time to give a proper reply to the DGCA show-cause notice and sought permission to appear in person to respond to other queries by the regulator. But it did not give any time-line.

The sources said Kingfisher was on cash and carry by most service providers and the government did not want a situation where the airline re-starts operations and then keeps flying in fits and starts, as has been happening since last year-end. In the latest instance, its pilots and engineers went on strike from September 30 to protest against non-payment of salary since March. The airline then declared a lockout on first till October 4 and then extended it till October 20. It as further extended till October 23 on Friday.

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Cable connections halved to prove digitisation success

In order to prove successful its cable TV digitisation programme from November 1, the Union Government's projection of cable connections in Kolkata area has been halved from the actual subscriber base in just three months, cable operators claimed.

"In June, senior officials of the Ministry of Information and Broadcasting in a meeting had projected cable connections in Kolkata at 38 lakhs, but in a subsequent meeting in mid-September they reduced the number to 19 lakhs," Cable Operators Digitisation Committe convenor Swapan Chowdhury told PTI.

"They have done the same in all other metros too. The I&B department has reduced the number of cable households to show high digitisation penetration," he claimed.

According to our estimation, the number of cable connections in Kolkata will be close to 40 lakh, he said adding it also threw up the fact that so far only 35 per cent consumers had opted for set top boxes.

"With the reduction in the number of cable households the digitisation penetration from I&B will just get double to 70 percent," Chowdhury said. He alleged that confusion and uncertainity prevailed in all aspects of digitisation from MSOs to local cable operators to consumers.

Still there is no agreement between broadcasters and MSOs. Neither the MSOs nor the cable operators has signed any agreement, he said. Unable to convince Telecom Regulatory Authority of India to revise the tariff order announced in April, the cable operators had approached appellate authority TDSAT for a respite.

"Hearing is complete and we expect the order any day and then only the next course of action can be decided. The tariff announced by TRAI is next to impossible to operate in higher cost environment under digitisation," Chowdhury said.

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