US economic and unemployment woes make Indian top tech firms nervous

BANGALORE: Early signs of a potential slowdown in the US, marked by high unemployment and weakening consumer demand, is causing anxiety among India's top tech firms deriving more than half of their business from the world's biggest market for software outsourcing.

Concerns of worsening macro-economic factors including falling housing prices can delay new technology investments by American firms, force outsourcing customers to renegotiate lower billing rates for software projects and could eventually affect the growth forecast for India's $70 billion IT sector if a recession takes shape, experts and company officials say. In an ET poll among five of the top 10 biggest Indian tech firms conducted over past week, two CEOs raised concerns while the remaining three said they remained cautious about a potential double dip.

No filing of tax return for salary and interest income up to Rs 5 lakh

NEW DELHI: As many as 85 lakh salaried tax payers whose taxable income, including salary and interest income, is up to Rs 5 lakh, are not required to file income-tax return from now onwards.

"No income-tax returns is required for salaried persons whose annual annual taxable income including salary and interest is up to Rs 5 lakh. We would shortly notify this," a Central Board of Direct Taxes official said.

However, he said this would not cover income from other sources like house property, capital gains and gains from profession and business.

Adobe appoints Vineet Sood as director for channel business

EW DELHI: Software company Adobe Systems on Wednesday announced appointment of Vineet Sood as Director - Channels and Strategic Alliances for South Asia.

"With his expertise in the channel community, Vineet will play an instrumental role in helping us grow our channel business in the region," Umang Bedi, Managing Director, Sales and Marketing, South Asia, Adobe Systems said in a statement.

Sood will be responsible for driving the channel business for Adobe in the region.

Prior to joining Adobe, Sood served as Director-Channel and alliances with Symantec Corporation for the last seven years. He was also part of the pioneering team at TTL which was instrumental in bringing CDMA to the country, the statement said.

8 JUN, 2011, 05.04PM IST,PTI Indian Air Force inducts upgraded Antonov-32 airlift aircraft

NEW DELHI: Augmenting its airlift capabilities, the Indian Air Force on Wednesday inducted four upgraded Antonov-32 aircraft, which underwent overhauling and technical life extension programme in Ukraine.

"Four of the first batch of five AN-32s that recently underwent 'Total Technical Life Extension', overhaul and re-equipment at Ukraine were inducted with a new nomenclature AN-32RE into the service," a senior IAF official said.

The upgrades would help in extending the life of the aircraft up to and beyond 2025, Air Officer-in-charge Maintenance Air Marshal Joseph Neri said.

The IAF had decided to upgrade the aircraft in 2005 to overcome maintenance challenges due to ageing and obsolescence and finalised the contract with a Ukrainian firm in 2009, they said.

The special features provided in the AN-32RE include modification in cockpit layout, upgraded avionics equipment, noise and vibration reduction enhancing crew comfort, reliability and maintainability of the aircraft.

Under the upgraded project, the life of the aircraft would be increased 25 to 40 years, and 40 aircraft would be overhauled and re-equipped in Ukraine.

The Ukrainian side will supply material and 'transfer of technology' (ToT) for upgrade of 64 remaining aircraft at IAF's No. 1 Base Repair Depot (BRD) at Kanpur.

The upgrade at Kiev is expected to be completed by March 2014 and upgrade at 1 BRD by March 2017.

Gp Capt R C Mohile, who flew back the aircraft to India from Ukraine, said the new navigational equipment in it proved extremely useful and made the complex navigation process involved on the international route easy to negotiate.

Ramdev threatens armed rebellion, Govt issues stern warning

HARIDWAR/NEW DELHI: Threatening an armed rebellion, yoga guru Ramdev today said he will raise a 11,000 force that will be trained to retaliate if authorities crackdown on their anti-corruption campaign, evoking a stern response from the Government which termed it "anti-national".

In Haridwar, Ramdev, who had struck a conciliatory tone on Tuesday, said he will form a force of 11,000 men and women to deal with police and anti-social elements attempting to disrupt his anti-corruption movement.

"I appeal that 20 young men from every district should come here. We will train them in both shahstra (vedas) and shastra (weapons)," Ramdev, who is continuing his hunger strike, told his followers here.

The yoga guru said, "We will prepare 11,000 men and women so that next time we do not lose any battle at Ramlila Maidan in Delhi".

Both the Government and the Congress reacted sharply to Ramdev's move.

Home Minister P Chidambaram when asked about Ramdev's call, said, "by making that statement, he has exposed his true colours and true intentions. Let him do so and the law will deal with that..You have to observe some discipline".

"It is anti-national and we have to take action," said V Narayanswamy, Minister of State in the Prime Minister's Office.

Congress said Ramdev's call for an armed rebellion is a serious issue and hoped that the government will take appropriate action to uphold the Constitution and maintain law and order.

2G scam case: Anil Ambani allowed to meet 2 ADAG officials in Tihar

NEW DELHI: Reliance ADA Group Chairman Anil Ambani has been allowed to meet two senior exectives of his parent company now lodged in Tihar prison who were arrested in connection with 2G scam case.

"We have granted permission to Anil Ambani to meet two of his Reliance executives now lodged in our prison. He will meet them after sunset," Neeraj Kumar , DG Tihar Prisons, said.

Ambani is expected to meet Gautam Doshi and Hari Nair who work for his parent company, the Anil Dhirubhai Ambani Group.

Three top officials of Reliance ADA Group Gautam Doshi (the company's Managing Director), Surendra Pipara and Hari Nair have been accused of conspiracy and abetment of cheating in 2G spectrum allocation scam.

"Gautam Doshi and Hari Nair who are lodged in Jail no. 3 have been allowed to meet Anil Ambani. Surendra Pipara is in AIIMS," he said.

The three top officials of Reliance ADA Group have already completed 55 days of stay in the Tihar prison since April 20 after a special CBI court rejected their bail plea in the scam.

Real estate prices soar in Delhi, NCR

NEW DELHI: Real estate prices in some localities of the national capital skyrocketed by 20 to 27 percent in the first quarter of the current fiscal as compared to the corresponding period of 2010-11, an industry report said Wednesday.

"Property prices for Delhi have seen escalation if we compare per square feet prices of quarter (Q)1-11 over Q1-10. Key localities - Sarita Vihar and Rohini - have seen 27 percent and 20 percent appreciation in prices compared to prices over Q1-10," said a report by online real estate trade portal 99acres.com.

According to the report, the upward price sentiment would continue as the prices on average are growing by 15 percent.

"If the present trend continues we'll see price stability in Delhi going forward. But, as of now I do not see any price reduction happening in the Delhi market," said Vineet Singh, business head of 99acres.

The report said that South Delhi locality Sarita Vihar's PSF prices increased by 27.60 percent at Rs.8,110 as compared to Rs.6,356 in the like period of 2010-11, while north Delhi-based Rohini's PSF prices appreciated by 25 percent.

This is followed by Patparganj at a PSF price rise of 21.68 percent. Other localities like southwest Delhi-based Dwarka sub city's PSF price also grew by 28 percent in sector-11 and sector-2.

Realty prices in suburban national capital region like Noida and Gurgaon also increased due to operationalisation of metro rail services.

Prices per square feet in sector 110 and sector 93 of Noida also moved up by 16 percent and 11 percent as compared to prices in the corresponding period of last fiscal, said the report.

"Gurgaon witnessed an upward trend in property prices. Properties located on the Sohna Road and DLF City phase IV have seen the highest appreciation in prices by 46 percent and 42 percent, respectively, in Q1-11 over Q1-10," the report said.

Online PF account details from July 1

KOLKATA: The Employees Provident Fund Organisation (EPFO) today said account details would be available online from July 1.

"You can watch the account balance of your PF online from July 1," Assistant PF Commissioner Kanchan Roy said at an interactive session at Bengal National Chamber of Commerce and Industry.

"This indeed would be a great help to about 5 crore PF subscribers in India ," he said.

EPFO plans to replace PF account number with unique identification number, a move which will help in speedy transfer of a subscribers' funds in case of job change and allow them to track their accounts online.

The replacement of PF account number with the UID number will be done after inter-connecting all regional and sub offices of the EPFO by March, 2012.

Citi pegs FY'12 GDP growth at 8.1%, optimistic about H2

MUMBAI: Citigroup today said it expects India's economic growth to pick up in the second half of FY 12 on increased investments and was maintaining its overall GDP growth projections for the economy at 8.1 per cent for the current fiscal.

"We expect FY 12 to be a year of two halves. In the first half, between April and September, we expect growth to come in the 7.5-7.8 per cent range. We are hoping for recovery in the second half," Citi Investment Research's Managing Director and Economic and Market Analyst Rohini Malkani told reporters here.

One of the "main assumptions" for maintaining the 8.1 per cent GDP growth target, Malkani said, is an upswing in investments during the second half of the current fiscal.

It being the last year of the 11th Five Year Plan (2007-12), investments would go up while corporates, a majority of whom have not shelved their investment plans, will also invest, she said.

The comments come within ten days of data for January- March 2011 quarter showing GDP growth slowing down to 7.8 per cent, which in turn, led to scepticism over the growth outlook for FY 12 and whether the Government will be able to achieve its budgetary target of a GDP growth of 9 per cent.

A deceleration in investment, as observed in the January- March quarter, will bring the GDP growth down to 7.2 per cent for FY 12, she said.

On the fiscal deficit front, Malkani said, there will be a "slippage" and it could go up to the 5.1 to 5.50 per cent level from the budget target of 4.6 per cent.

China warns US debt-default idea is 'playing with fire'

SINGAPORE: U.S. Republican lawmakers are "playing with fire" by contemplating even a brief debt default as a means to force deeper government spending cuts, an adviser to China's central bank said on Wednesday.

The idea of a technical default -- essentially delaying interest payments for a few days -- has gained backing from a growing number of mainstream Republicans who see it as a price worth paying if it forces the White House to slash spending, Reuters reported on Tuesday.

But any form of default could destabilize the global economy and sour already tense relations with big U.S. creditors such as China, government officials and investors warn.

Li Daokui , an adviser to the People's Bank of China, said a default could undermine the U.S. dollar, and Beijing needed to dissuade Washington from pursuing this course of action.

"I think there is a risk that the U.S. debt default may happen," Li told reporters on the sidelines of a forum in Beijing. "The result will be very serious and I really hope that they would stop playing with fire."

China is the largest foreign creditor to the United States, holding more than $1 trillion in Treasury debt as of March, U.S. data shows, so its concerns carry considerable weight in Washington.

"I really worry about the risks of a U.S. debt default, which I think may lead to a decline in the dollar's value," Li said.

The U.S. Congress has balked at increasing a statutory limit on government spending as lawmakers argue over how to curb a deficit which is projected to reach $1.4 trillion this fiscal year. The U.S. Treasury Department has said it will run out of borrowing room by Aug. 2.

If the United States cannot make interest payments on its debt, the Obama administration has warned of "catastrophic" consequences that could push the still-fragile economy back into recession.

"It has dire implications for the economy at a time when the macro data is softening," said Ben Westmore, a commodities economist at National Australia Bank.

"It's just a horrible idea," he said. Financial markets are following the U.S. debate but see little risk of a default.

U.S. Treasury prices were firm in Europe on Wednesday, supported by a flight to their perceived safety on the back of the Greek debt crisis and worries about a slowdown in U.S. economic growth.

Marc Ostwald, a strategist with Monument Securities in London, said markets were working on the assumption that the U.S. debt story "will go away". But nervousness would grow if a resolution was not reached in the next five to six weeks.

'WOULDN'T HAPPEN'

The Republicans' theory is that bondholders would accept a brief delay in interest payments if it meant Washington finally addressed its long-term fiscal problems, putting the country in a stronger position to meet its debt obligations later on.

But interviews with government officials and investors show they consider a default such a grim -- and remote -- possibility that it was nearly impossible to imagine.

Tata Consultancy Services briefly topples ONGC to become India's third most valuable company

MUMBAI: India's largest software company TCS on Wednesday briefly toppled ONGC as the country's third most valued company with its market capitalisation soaring to over Rs 2.31 lakh crore, driven by a spurt in share price.

Tata Consultancy Services (TCS) claimed the position of third most valued company with over 6 per cent spurt in its share price.

The scrip opened on a bullish note on the Bombay Stock Exchange ( BSE . at Rs 1,169 and then surged to touch an intra-day high of Rs 1,182.30, thereby increasing the market valuation of the company to Rs 2,31,402 crore.

ONGC dropped to the fourth position with a market capitalisation of Rs 2,30,220 crore.

Reliance Industries and Coal India with M-cap of Rs 3.10 lakh crore and Rs 2.57 lakh crore, respectively, remained the top two most valued companies, according to the data available with BSE.

At the close of market hours, however, TCS share prices lost its initial gains, bringing down its M-Cap to Rs 2.30 lakh crore, a tad below ONGC's which retained the No. 3 position.

"The fundamentals of TCS are looking quite good, the management is also very optimistic about its future prospects, besides, the information technology sector as a whole is also showing strength," Ashika Stock Broking Research Head Paras Bothra said.

There has been a downslide for ONGC which once used to be the most valued company. It lost its pre-eminence position to Reliance Industries first, and later Coal India also overtook it. Now, though for a brief time, TCS's M-Cap has zoomed past ONGC's.

Commenting on the oil and gas major's downfall, SMC Global Securities Strategist & Head of Research Jagannadham Thunuguntla said, "The recent hike in oil subsidy burden on upstream companies from 33 per cent to 38 per cent is definitely making ONGC investors jittery."

"This has resulted in ONGC losing substantial market capitalization of Rs 23,600 crores post the announcement of increase in oil subsidy burden on 17th May, 2011," he added.

IT major Infosys was at the fifth place with a m-cap of Rs 1.65 lakh crore today, followed by ITC at Rs 1.50 lakh crore, State Bank of India (Rs 1.45 lakh crore), NTPC (Rs 1.44 lakh crore), Bharti Airtel (Rs 1.43 lakh crore) and ICICI Bank (Rs 1.20 lakh crore).

PSUs may hike petrol price by Rs 0.50 per litre from June 16

EW DELHI: State-owned oil firms may hike petrol price by about Rs 0.50 per litre from June 16 as last month's steep increase in rates is not enough to cover the cost of raw material (crude oil).

"If there are no (political) pressure, we would like to hike petrol price from midnight of June 15 and 16," a top official of Indian Oil Corp (IOC), the nation's largest fuel retailer, said here.

IOC and its sister PSUs had on May 15 raised petrol price by Rs 5 per litre, the biggest hike ever.

"Even after that hike, we were losing Rs 4.58 per litre. After including VAT, the desired increase at retail level in Delhi came to Rs 5.50 a litre," he said.

The desired hike in price has been calculated based on the average crude oil price of the first fortnight of May. However, from June 1, which takes into account the average of second half of May when international rates moderated, IOC is losing Rs 1.15 per litre. After including VAT, the desired hike in Delhi would be Rs 1.35 a litre.

"We will have to take a view (on hiking petrol price) next week," he said. "The government is not compensating us for selling petrol at below international cost since June 2010 when its pricing was freed."

Though the government had freed petrol pricing from its control, state-owned retailers have been informally being guided by 'advice' from the oil ministry. They did not hike rates in the run-up to the assembly elections in five states, including West Bengal and Tamil Nadu.

On diesel , the official said, the company was losing Rs 12.64 per litre. After adding VAT, the desired increase in rates in Delhi is Rs 14.22 per litre.

Similarly, on domestic LPG it is losing Rs 381.14 per cylinder and Rs 27.47 a litre on PDS kerosene.

"We are losing Rs 256 crore per day on selling the three fuel at government controlled price. At this rate, we will end the fiscal with a revenue loss of Rs 89,300 crore.

The industry (IOC, Bharat Petroleum and Hindustan Petroleum) are likely to see Rs 160,568 crore of revenue loss in 2011-12 fiscal.