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6 Economy & Business
Groundwater needs to be met
from SIPCOT: Coca Cola
ERODE (TN), MARCH 6 /--/ With mounting opposition to
the proposed Coca Cola plant at Perundurai over fears that
use of groundwater by it would deplete groundwater levels, the company has clarified that it would meet its needs
from Small Industries Promotion Corporation of Tamil
Nadu (SIPCOT) in that town.
"HCCB (Hindustan Coca Cola Bevegares Pvt Ltd) has no
plans to extract groundwater at any stage for any use in the
operations at Perundurai and intends to take water from
SIPCOT to meet the industrial water requirement," Kalyan
Ranjan, Vice President, Public affairs and Communication,
HCCB said.
He said treated waste water would be discharged outside
the plant premises and excess water would be utilised for
'onland for Irrigation' within the premises.
Ranjan said in a press release that the state-of-the-art
Greenfield manufacturing unit at SIPCOT Industrial
Growth Centre, Perundurai, at an investment of about Rs
500 crore, would manufacture beverages including juices
and packaged Drinking Water, for which 71.3 acres has been
allotted by SIPCO T. He pointed out that the company had
held a stakeholders meeting on December 11, last year in
which all stakeholders had participated and had their
doubts clarified. A detailed response was also submitted by
HCCBPL to the District Collector giving the factual position.
The company claimed that it has implemented several
environmental practices over a period of time in water conservation, wastewater management and solid waste management across its plants, which would be replicated at
Perundurai. It has been constantly engaging with various
stakeholders and was open to discuss all issues in an open
and transparent manner and allay apprehensions that some
stakeholders might have, he said. Yesterday most shops and
business establishments in Perundurai and nearby
Chennaimalai had remained closed in response to a one day
hartal call given by all opposition parties, barring AIADMK,
against the plant. Residents of these towns had protested
against the plan to set up the unit in the area and had also
written to the Centre, the Environment Ministry and state
Chief Minister. The villagers had contended that the
groundwater level in the towns would be depleted if the
factory was allowed to come up. Further a huge quantity of
waste from the factory would be discharged in the drains,
affecting water courses. (PTI)
Viacom18 rebrands five
ETV regional GECs as Colors
MUMBAI, MARCH 6 /--/ Entertainment network Viacom18
has extended its flagship Hindi general entertainment channel (GEC) 'Colors' to the regional markets by rebranding five
of its regional GECs from the ETV stable.
Prism TV, a wholly-owned subsidiary of TV18, broadcasts five regional GECs -- ETV Bangla, ETV Marathi, ETV
Kannada, ETV Oriya and ETV Gujarati.
With this branding, ETV Marathi, ETV Gujarati, ETV
Kannada, ETV Bangla and ETV Oriya will soon don the
Colors identity, Viacom 18 said in a statement.
"Subject to receipt of mandatory regulatory approvals,
Viacom Inc through its subsidiary Nick Asia will acquire
a 50 per cent interest in the five regional GECs, while TV18
will continue to own the remaining 50 per cent," the company said.
The rebranding of the regional GECs will augment the
Colors' franchise, while facilitating higher resonance for the
regional channels vis-a-vis competition.
"Almost 59 per cent of the people converse in regional
languages as the primary language. Today regional channels
command the second largest viewership. The move will help
us make a foray into key regional markets as we nurture and
monetise the bouquet across platfor ms," Viacom18 Media
Group chief executive Sudhanshu Vats said.
He further said the new regional programming line-ups
have been developed to suit the regional audience's taste.
"Through its unique shows and voice, Colors has become
the preferred destination for differentiated storytelling in
the Hindi mass entertainment channel space. In consonance
with this approach to content, the new regional programming line- ups have been evolved to suit the socio-cultural
ethos of the respective regional markets," Vats added. (PTI)
THE ECHO OF INDIA SILIGURI
Saturday March 7, 2015
Rajan says CPI target band
could tighten in 5-10 yrs
MUMBAI, MARCH 6 /--/
Reserve Bank Governor
Raghuram Rajan has said
the target band for retail inflation could tighten much
further in the future as the
central bank becomes more
comfortable with it.
"Going forward, we will
seek to bring inflation to the
mid-point of the band of 4+/
-2 per cent provided for in
the monetary policy framework agreement, i.e., to 4 per
cent by the end of a two-year
period starting FY17," Rajan
had told analysts on Wednesday after he surprised the
markets with a 25 bps policy
rate cut citing supporting
data prints.
Answering a question
from an analyst, Rajan had
explained further, "Given
that this is a process (the recently signed monetary
policy framework agreement between the Reserve
Bank and the government)
that is just starting, we have
somewhat wide bands
around it. "My belief is, as
we get more comfortable,
and I am talking in the fiveto-ten year scenario, these
bands could tighten. But for
now, we think these are appropriate (at 4 per cent by
FY17)," Rajan had said.
Explaining the view further, he said, "The way we
think about this 4 per cent
mid-point is that if we really
look at the industrial countries they are seeking, for
the most part, a 2 per cent
nominal interest rates and if
we say on top of that we
have a 2 per cent productivity advantages as we catch
up in growth then a 4 per
cent inflation rate on our
side will tend to keep our
nominal exchange rate at
pretty much a level vis-a-vis
industrial countries.
"So, that is really the
thinking behind why 4 per
cent. It is also that previous
committees have gone into
this in great detail and they
have suggested that 4 per
cent may be comfortable for
us to try and reach. But, also,
given that this is a process
that is star ting, we have
somewhat wide bands
around it," Rajan had said.
On the real rates, he
said, "As far as the level of
real rates goes, I have said
repeatedly that, at this point
in the cycle, 1.5-2 percent
real is probably appropriate."
Under the monetary
policy framework agreement signed by the RBI and
the government on February
20 to set up a monetary
policy committee that will
give an inflation targeting to
the RBI, the central bank has
to keep the retail inflation in
a 2-6 per cent band starting
from April 2016, which
means that CPI inflation target stands at 4 per cent.
The RBI has glide path of
6 per cent for 2015 and 5 per
cent for January 2016. Inflation for January stood at 5.11
per cent and analysts are expecting it to hover around 5.5
per cent in February.
Rajan had said RBI will
seek to bring the inflation
rate to 4 per cent by the end
of a two-year period starting
2016- 17. When probed how
much support the RBI needs
from the government to
achieve this target, Rajan
said the comfort should be
taken from the government's
willingness to move to an inflation targeting model.
"That is our framework,
and the government has to
be supportive in this process. And it has been in the
past," Rajan had said.
India not taking action
against notorious markets: US
WASHINGTON, MARCH 6 /--/ India has not taken meaningful and effective action against notorious markets like
the Nehru Place in New Delhi where counterfeit products
are openly sold, the US has alleged. "Numerous markets in
India have appeared in past Lists, with no identified meaningful, effective response by the Indian government," the
US Trade Representative (USTR) said in its 'Out-of-Cycle
Review of Notorious Markets' report released on Thursday.
"The United States continues to raise the importance of IPR
protection and enforcement with India, underscoring the
need to combat counterfeiting and piracy in both online and
physical markets," it said. "The United States encourages
India to take sustained and coordinated enforcement action
at the Nehru Place (New Delhi), previously-listed markets,
and numerous other non-listed markets in its territory," the
USTR said. The report highlights certain physical and
online markets around the world that are reported to engage
in and facilitate substantial copyright piracy and trademark counterfeiting that harms US businesses and undermines American workers. "American innovation fuels our
economy. Intellectual property protects the contributions
and livelihoods of the 40 million Americans whose jobs are
supported by intellectual property-intensive and associated
industries," USTR Mike Froman said. "The theft we're shining a light on today is detrimental not only to creators and
inventors, but also to consumers, who may be deceived and
even endangered by Notorious Markets engaging in counterfeiting and piracy. "Our commitment to underscore the
protection of intellectual property rights has produced real
results, and today's action is another important part of that
effort," he said. (PTI)
Britain seeking quick
sale of RBS bank: Report
Policy rates touch neutral,
sees no cuts till 2017: Nomura
MUMBAI: With the second
surprise 25 bps repo rate cut
by the Reserve Bank on
March 4, the policy rates
have reached neutral and
the average policy rate over
the next three years should
be around 7.4 per cent, says
a report.
"Based on our inflation
and growth forecasts, and
the RBI's inflation targets, we
estimate that the average
policy rate over the next
three years should be
around 7.4 per cent as the
policy rates have reached
neutral," Japanese brokerage Nomura said in a note.
It can be noted that Governor Raghuram Rajan took
the markets and analysts by
surprise within two months
by reducing the short term
lending rates by 25 bps to 7.5
per cent on March 4 after a
tion, and exchange rate appreciation as the key reasons for the policy action.
He also said two factors
justified the inter-meeting
action -- weak growth and
the global trend towards easing; and the need to offer
guidance on how it will im-
similar inter-meeting cut on
January 15. Rajan cited
lower inflation, credible and
high quality fiscal consolida-
plement the new flexible inflation targeting mandate.
The economists, however, said they see "a risk of
another 25 bps cut this year",
but have maintained its baseline view of no further cuts.
"In our view, with growth
shifting higher, the government already focused on reviving growth by kick-starting public investment in infrastructure, inflation is
likely to stabilise at 5-5.5 per
cent and external risk factors growing, the case for incremental monetary policy
easing no longer exists, if
the RBI is serious about 4 per
cent inflation," its economists said. (PTI)
LONDON, MARCH 6 /--/ Britain is looking to sell the Royal
Bank of Scotland as quickly as possible, Chancellor George
Osborne has told the Financial Times. Osborne told the newspaper yesterday he hoped to sell the bank "as quickly as we
can get rid of it" after the May general election, and that the
public "want to see they get their money back" but that it
could take years. RBS is about 80 per cent owned by the British government after it stepped in to bail out the bank with
USD 70 billion of public money in 2008 at the height of the
financial crisis, the world's biggest bank bailout. Despite
major restructuring and thousands of job cuts the bank has
since reported losses of almost 50 billion pounds. RBS announced in February it would hugely reduce its investment
banking operations worldwide, and Osborne told the Financial Times he regretted not imposing a radical restructuring on the bank earlier. (AFP)
News In Brief
India, Lanka discuss FTA
COLOMBO, MAR CH 6 /--/ Ahead of Prime Minister
Narendra Modi's visit here, India and Sri Lanka have discussed the implementation of a free trade pact and stepping
up economic cooperation while addressing issues of trade
imbalance. Discussions on economic issues were held between the Sri Lankan side and a visiting Indian trade delegation headed by Commerce Secretary Rajeev Kher.
Enhanced Indian investments in Sri Lanka would boost
the island's export capacity and promote links with product and supply chains in the Indian market, the Indian trade
delegation told Sri Lankan counterparts.
Lodha bond sale plan
MUMBAI, MARCH 6 /--/ Premium realty developer Lodha
Group has relaunched its USD 350-million five-year dollar
denominated international bond issue, which was called off
early December following tepid investor response. It may
be recalled that the leading city-based developer, which has
launched the first Trump Tower in the country last year, had
called off its USD 350 million overseas dollar bond sale programme on December 5 last year after it got poor investor
response.
The new lexus city car concept is on display during the second press day at the Geneva International motor show
China giant Fosun takes 5% in Thomas Cook
HONG KONG, MARCH 6 /
--/ Chinese conglomerate
Fosun International announced Friday it had
bought a five per cent stake
in UK-based tour operator
Thomas Cook in its latest
foray into the travel market.
The move comes less
than a month after it
snapped up 92.8 per cent of
French holiday resorts
group Club Med.
A statement to the Hong
Kong stock exchange, where
Fosun is listed, said the com-
pany had bought the stake,
worth 91.8 million pounds
(USD 140 million), at 125.59
pence per share.
"The Group intends to
purchase further Thomas
Cook shares on the open
market at the appropriate
time," the statement said,
adding that the company
was seeking to take its stake
to around 10 per cent.
Thomas Cook shares
rose sharply on the London
Stock Exchange today, up
14.5 per cent to 138 pence af-
ter 10 minutes of trading.
Fosun shares closed
slightly up at HK 12.78 (USD
1.65), a rise of 0.18 per cent.
Privately-owned Fosun,
which is based in Shanghai
and controlled by Chinese
billionaire
Guo
Guangchang, is a diversified conglomerate with interests ranging from media to
pharmaceuticals and mining.
The statement from the
company said that the move
would "capitalise on the in-
creasing demand for international leisure travel".
"The investment in Thomas Cook complements
other recent investments of
the Group in the sector, providing opportunities for further value creation," it said.
Thomas Cook said the
partnership with Fosun
would see further development of some hotels and
broaden access to the Chinese tourism market in the
medium term, according to
Bloomberg News. (AFP)
China invites Japan to join AIIB
BEIJING, MARCH 6 /--/
China has invited Japan to
join the Asian Infrastructure Investment Bank, a
brainchild of the Communist nation for which 27
countries including India
have signed up to be its
founding members.
The chance to be an
Asian Infrastructure Investment Bank (AIIB) founding
member is available for all
Asian countries including
Japan by March 31, Chinese
Finance Minister Lou Jiwei
told a media briefing here
on Friday.
Japanese government
has been updated with the
result of talks among the
bank's current founding
members, Lou said.
"They told us they are
considering. Whether Japan
will join, we do not know. It
is Japan's own decision," he
said. Japan, Australia and
South Korea have not joined
the AIIB and the US has expressed reservations over
its transparency. India has
joined the initiative to set up
the Bank floated last year
by China to step financing
of infrastructure projects in
the region. The bank to be
headquartered in Beijing is
expected to be operational
this year.
The authorised capital
of AIIB is USD 100 billion
and the initial subscribed
capital is expected to be
around USD 50 billion. The
paid-in ratio will be 20 per
cent, according to the MOU.
The bank together with
BRICS Development Bank
and USD 40 billion Silk
Road development fund established by China was expected to fund large
number of infrastructure
projects in the region.
Lou said some European
countries, including major
ones, have expressed the intention to join it. But current
founding members agree
that AIIB will consider
Asian countries first and the
membership of countries
outside the region will be
the next step, he said.
Currently 27 countries
have confirmed to join AIIB,
an initiative proposed by
China. Vice Finance Minister Zhu Guangyao told media Tuesday that the bank
will be set up within 2015.
"It is hard to predict how
many countries will join in
the future. It is not up to
China but all founding
members," Lou said.
Without naming any
country, Lou said some countries wanted to get privileges, but such issues have to
be discussed and finalised
by all the founding members. (PTI)
10,000-sq-metre roof top
farm makes waves in China
BEIJING, MARCH 6 /--/ This 10,000-square-metre farm
in southwest China's Chongqing Municipality may look ordinary at first glance.
But this is an exceptional farm situated on top of a
sprawling factory that manufactures doors. It is big enough
that a tractor is needed to help with farming. The factory's
staff grow crops there, as well as raise poultry and livestock.
90% of traffic through
mobile services: Myntra
BENGALURU, MARCH 6 /--/ Myntra.com, India's leading online fashion retailer, Friday said that 90 per cent of
its traffic is being generated through mobile devices. It said
close to 85 per cent of this traffic is driven by Android, iOS
and Windows platfor ms, and interestingly, over 50 per cent
of the mobile traffic is coming from Tier II & III cities.
IBM to provide IT solutions to Gati
NEW DELHI, MARCH 6 /--/ Tech giant IBM Thursday
said it will provide IT solutions to supply chain logistics firm
Gati Kintetsu Express (Gati KWE).
Gati has chosen IBM Commerce solution to help online
retailers meet the rising consumer demand for efficient delivery of products, the US-based firm said in a statement.
According to market estimates, Indian eCommerce market
is expected to grow 37 per cent to touch USD 20 billion this
year, the firm added.
Ortel IPO raises Rs 175 crore
NEW DELHI, MARCH 6 /--/ Cable TV services provider
Ortel Communications Thursday closed its IPO by raising
an estimated Rs 175 crore, even as the shares reserved for
high net-worth investors and retail investors remained under subscribed. The IPO funds raised include Rs 46 crore
from anchor investors. The IPO received bids for 71,23,125
shares against an offer of 94,42,575 scrips, reflecting a subscription of 0.75 times, data available with the National Stock
Exchange showed. (PTI)