Archive for the ‘Economic News’ Category
Human Capital Flight
Human Capital Flight or Brain Drain means the migration of skilled people to other countries. This migration of skilled individuals is due to lack of opportunities, health hazards or may be due to conflicts.
In our country, most of the skilled as well as talented individuals are migrating to other nations due to higher wages and better job opportunities. Since 30 years many dynamic and bright youngsters have migrated mainly to US. Early 1960’s onwards top IIT students emigrated to other nations.
The main advantages of Brain Drain are money remittances helped poverty and reduce in child labour. Development in education, self-employment and enterprises. The money spent more on investment for the development of education, health and housing.
This emigration resulted in innumerous problems also in the public sector and increase in wages of high-skill labour. And there is lack of skilled and talent people in the motherland, who now are the assets …
English language popular in India
India is gaining more popularity in English education and most of the Indians opting their children to learn English education. After Hindi and Marathi languages, now English considered as the third highest medium of instruction for upper primary school students.
The rise is happening so fast that the nationwide enrollment in the upper primary section of English-medium schools has increased by 74% during 2003 to till last year. Growth of English in southern states is raised by 60% for enrollment in English education for the past 3-years.The states like Andhra Pradesh, Tamil Nadu and Maharashtra has become one of the top amongst the rest of the states in enrolling the children’s for English education.
It is observed that, there is a decrease of 83% in Telugu medium of instruction which is ever seen fact in southern states for the decrease in Telugu medium in Andhra Pradesh.
But in north, the growth of …
Arcelor Mittal to sell US steel plant for $1.35bn
The world’s largest steelmaker, Arcelor Mittal, on friday said it had received clearance from the US anti trust anthorities to sell its Sparrows point stell mill for $1.35 billion. The transaction is expected to close in October, subject to oversight and approval by the recently appointed court trustee, a company statement said.
The Europe based steelmaker was ordered by the American anti trust authorities to divest the plant in Maryland, US, early this year. The sale was a condition set by the US competition authorities to allow the merger of Mittal and Arcelor. The plant will be acquired by a joint venture entity sponsored by Esmark Incorporated and Wheeling Pittsburg Corp, with participation by industry and institutional investors. Arcelor Mittal will divest the related railway, intellectual property and other assets associated with the Sparrows point facility as part of the transaction. A rcelor …
Rising Re reins in gold
Rupee appreciation is helping the Indian consumer. While gold prices have touched the roof in the global markets, the domestic prices for precious yellow metal remained at the same level with Indian currency gaining strength.
As dollar continues to weaken against other currencies to weaken against other currencies, gold prices have spurted to cross 28-year-high of $750 perounce. However, in the domestic market the price remained around Rs 9,500 per 10 gram. On Friday, it closed at Rs 9,595 per 10 gram.
The Indian currency has appreciated by over 10% in the last one year against dollar. If this was not the case, the gold would have been quoted around Rs 10,500 per ten gram.
The price of gold is normally fixed in dollar-term. But as the US currency weakened against euro, yen and rupee, rise in prices in these currency are relatively smaller than dollar. This drove the demand of the yellow …
Sensex, Nifty at new high
BSE Benchamark Settles Above 17,000, Nifty Leaps To All-Time High of 5000
The stock market frenzy continued on Thursday with benchmark BSE sensex closing above the 17k-mark and NSE Nifty breaching the 5,000 level for the first time ever as strong buying by foreign funds in IT and metal shares. The sensex ended at a new peak of 17,150.56 with a gain of 229.17 points or 1.35%, while the NSE’s Nifty settled 60.05 points up at a life-time high of 5,000.55.
The sensex had breached the 17,000 level for the first time in Wednesday, but it had closed lower at 16,921.39. After opening firm at 17,059.61 on Tjursday, the sensex touched a record intra-day high of domestic retail investors were seen buying heavly into metal and IT, pushing the two sector indices by over 3%.
Tata Steel, Infosys, Satyam, TCS, Wipro, SBI, BHEL, HDFC, HDFC Bank, ONGC and REL were among the prominent …
Sensex breaches 17000- mark
In volatile trading, led by banking and information technology (IT) stocks, the benchmark Bombay Stocks Exchange (BSE) 30 share sensitive index (Sensex) moved past the 17000mark sevral times on Wednesday, but failed to sustain above the psychological barrier and closed at 16921.39. However, realty and oil and gas stocks were trading under prssure due to selling.
Since the rate cut by the U.S. Federal Reserve by 50 basis points last week, the Indian stock prices were surging ahead as the foreign institutional investing their funds in Indian stocks. The FIIs have pumped in Rs. 14,639 crore ($3.66 billion) in the last five days.
The Sensex went past the 16000-mark with an inflow of $608.60 million on September 19.
The FII investments of $11.013 billion in India stock markets do far this year have surpassed the previous record of $10.792 billion in 2005. Last calender year, FIIs invested $7.805 billion. The total FII investment …
Rupee will be market determined- Chidambaram
Sops may be provided for exporters
The Indian Government is concerned over he rapid rise in the rupee value against the U.S. dollar but will not intervene other than providing some succour to exporters, Finance Minister P. Chidambaram said here.
“It (the rise of the rupee) has some consequences, particularly for exportes,” he told PTI on the over 11 percent rise in the rupee against the greenback this year. If the package given in July was not sufficient, the Government could think of more steps to help them tide over the situation, he added.
Mr. Chidambaram, who also addressed the Peterson Institute for International Economics, said unless the U.S. Government took some steps, India could not do any thing in this regard.
“Our exchange rate has a symbiotic relationship with the exchange rate of the US…
The rupee is stable against the Euro and many other currencies. It is only against the dollar the …
Snippets
Titagarh ind. JV with U.S. firms
The Kolkata-based engineering company Titagarh Industries planning to strike a joint venture between Titagarh Wagons, a group company, and two U.S. companies for making a special type of high capacity railway wagons. The project wntails an investment of $35 million. The wagons proposed to be manufactured by the joint venture may be of aluminium.
Arya launches two-way radio product
Arya Omitalk, the joint venture promoted by the Lalbhai and J.M.Baxi groups launched here on Friday its upgraded GPS-linked two-way radio (walky talky) product with the new Mpower sysytem, making travel safer for BPO staffer and enabling transport officers of the companies keep real-time track of all vehicles on the move.
Firestone and TVS from joint venture
Firestone Industrial Products of the U.S. and Sundaram Industries, a member of the TVS group, have announced an alliance to establish a joint venture for manufacturing and marketing air springs in …
Sharp rise in rupee
The rate cut by the U.S. Federal Reserve set the rupee on fire and it breached its previous nine-year high to end at new peak of 40.20/21 on Wednesday against the U.S. Currrency amind sharp rally in global equities.
In active trade at the interbank foreign exchange market, the domestic unit opened strong at 40.28/30 per dollar against Tuesday’s close of 40.48/49
It later briefly touched a low of 40.35 before ending the day sharply higher at new nine-year peak of 40.20/21, a net rise if 28 paise over the previous close. It also registered a intra-day high of 40.19 a dollar. Previously, it touched a nine-day high of 40.20 in July this year.
Civil aviation can attract $150 b investment
Praful Patel for relaxation of the norms for overseas flights
The Indian civil aviation sector was set to attract around$150 billion investment within the next five years in hardware, infrastructure and allied peripheral segments Union Civil Aviation Ministers, Praful Patel, said here on Friday.
The minister, who was here in connection with the National Management Convention with the National Management Convention organised by the All India Management Association, said that his ministry favoured a relaxation in the norms of allowing airlines to a have overseas flights.
Addressing an informal press meet, he said plans were afoot to offer employees stock option (ESOPs) to the 33′000 employees of the merged entity of Air India and Indian Airlines.
Mr Patel also said that the Inter Ministerial Group was now finalising certain stipulations for facilitating the setting up of facilitating the setting up over the country. He felt thta there should be at least 500 such …
BSNL’s expansion to involve Rs. 23,000 cr. in current year
Ericsson accepts 13 million GSM line tender
BSNL on Friday said it had finalised the contract for 22.75 million GSM lines and Swedish vendor Ericsson had accepted the order for 13.12 million lines, while Nokia-Siemens would be given the balance soon.
Addressing the media here, newly appointed Chairman and Managing Director Kuldeep. Goyal said: “the order for 22.75 million lines has been finalised and Ericsson has accepted the Letter of Intent for 13.12 million lines. Work is to be completed in 12 months and the LoI for 9.62 million lines is being issued to Nokia (Siemens) shortly.”
The awarding of these contracts would end the yearlong capacity crunch in its mobile services, which was causing it a loss in the subscriber base. The PSU will invest Rs. 22,880 crore in 2007-08 for expansion of its telecom services. About Rs. 7,417 crore will go towards mobile services, while fixed, WLL and broadband and …
Fortis Healthcare buys into Malar Hospaitals
Subsidiary IHL and Oscar Investments pick up 53 p.c
The International Hospital Ltd. (IHL), a Fortis Healthcare Ltd of the Ranbaxy group, along with Oscar Investments Ltd., has entered into an agreement to buy equity shares of Malar Hospitals.
In a notification to the Bombay Stock Exchange, Fortis has informaed that its subsidiary IHL and Oscar Investments would together acquire 39 lakh equity shares from the promoters of Malar Hospitals. This represents 28 percent of its present paid-up equity capital.
Under the agreement, the two outfits will also be given 46.66 lakh shares, representing 25.10percent of the fully expanded voting equity capital , by way of preferntial allotment, consequent to conversion of loan into equity. As a result, Fortis Healtj’s stake in Malr Hospitals will go up to 53.10 percent.
The notification however is silent on the acquisition price. Following this, IHL and Oscar Investments will come out with an open offer to conform …
RINL profit at Rs. 1,363 crore
To double capacity to 6.3 tonnes
Rashtriya Ispat Nigam Ltd. (RINL) the holding company of Visakhapatnam Steel Plant, earned a net profit of Rs.1,363 core for 2006-07 This was informed by the Chairman-cum-Managing Director, P.K Bishnoi, at the 25th annul meeting of the company held here on Monday. He said the company had embarked on an expansion programme for doubling its capacity from three million tonnes to 6.3 millon tonnes to 6.3 million tonnes with the objective of not only increasing the scale of operations but also meting the customers requirements. or dering for plant and equipment of major packages was already completed. Efforts were on for acquiring state-of-the-art technology in expansion areas and linkages for raw materials security were being explored, he said.
He said that the funding for the expansion would be from internal resources and debt. The Corporate plan 2020 for the company had been finalised aiming to take …
Govt plans to divest 4.75 pc stake in NTPC via IPO
Trough the public offer it expects to raise around Rs 6,000 crore
New Delhi, Aug 30: India’s biggest power generation facility, National Thermal power Corp (NTPC) will soon see major change in its shareholding pattern. The government plans to divest 4.75 percent of its stake in NTPC Ltd, through a public offer that could fetch it nearly Rs 6,000 crore. Power Ministry, acting on a request from the state-run firm has approached the Department of Disinvestment in Ministry of finance for approval of a Follow on public offer (FPO) of 4.75 percent shares, offer sources said.
In February 2004, the government allowed NTPC to go for an IPO of 10 percent of its paid-up capital in one or more stages to augment resources. The company chose to go for an IPO of 5.25 percent, leaving balance 4.75 percent of approved IPO for later date. …
GMR to invest Rs 35,000 Crore in five year for expansion
New Delhi, Aug 30: Infrastructure major G M R Group, which has undergone organizational restructuring is likely to invest Rs 35,000 core in the next five years for expanding in various sectors such as airports and power at home and abroad. “Our advisor’s have working with us to chart out future plans for us in areas such as power, airports and SEZs. We have already formulated a strategy, which will see us expanding both in India and overseas,” GMR Group Chairman G M Rao said.
He said the group was actively pursuing all possible opportunities in India and abroad. The group, which is currently working on major projects in power, airport and SEZs in India, is now looking to take up similar endeavours abroad, he said.
“For instance, in Turkey we are already presrnt in the airport project, and if the power sector is opened up there we will partake in …
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