When his design didn’t find takers nationally, Narendra Modi went local. A few years ago, the Gujarat chief minister was at an international summit. When a session on energy crisis cast light on solar power , Modi thought of the Rann of Kutch in his home state, where the land was endless and the sun’s heat relentless. He wondered: could countries blessed with sunlight form a solar alliance, led by India, to mainstream this promising source of power?
He wrote to Prime Minister Manmohan Singh, with a broad concept of such an entity. He called it ‘Sun-Son’ — offspring of the sun. The Prime Minister’s Office acknowledged the proposal, but left it at that. So, Modi turned inwards. He asked his trusted lieutenants, energy minister Saurabh Patel and principal secretary S Jagdeesan, for a plan to turn the state into a hub in solar power.
The maiden expression of that vision came in January 2009, when Gujarat became the first Indian state to launch a solar-power policy. Several states followed suit. Like Gujarat, they also showed a long list of companies interested in generating solar power. But, unlike them, Gujarat is following through with an unmatched sense of purpose.
This June, it signed power purchase agreements (PPAs) — an operational and financial commitment from both the state and the developers — with 21 companies to generate 365 MW of solar power. At an estimated capital cost of Rs 15 crore per MW of solar capacity, that’s a likely investment of about Rs 5,500 crore. And supply is expected to begin by December 2011.
By all markers, Gujarat is the clear leader in solar power. Other states, notably Tamil Nadu and Rajasthan, have installations or commitments of a capacity in double digits. At an all-India level, the National Solar Mission, launched by the Centre in November 2009, has set a target of 1,000 MW target for 2013. In other words, Gujarat is on its way to rolling out one-third, probably more, of what the Centre is targeting for all of India in the next three years.
“Gujarat has the most aggressive plans,” says Ratul Puri, executive director, Moser Baer India , a sister company of which is setting up three solar plants of 15 MW each in the state. The plans also have a big idea: integrate solar into Gujarat’s power ecosystem by simultaneously smoothening both the demand and the supply sides.
On the supply side, Gujarat is incentivising developers by announcing solar tariffs for 25 years. The Gujarat Electricity Regulatory Commission (GERC), the state distribution arm, has fixed tariffs for the two kinds of solar technologies. And, many say, the rates are generous to developers.
The first technology is photovoltaic (PV) cells. Here large, solar panels made of silicon are erected on land in such a way that sunlight falls directly on them, and gets converted into power. Solar producers in Gujarat using the PV technology will get Rs 15 per unit for the first 12 years and Rs 5 per unit from year 13 to year 25. By comparison, thermal and hydro cost Rs 4-6 per unit.
Tuesday, November 2, 2010
RBI rate hike may impact economic growth: Industry
NEW DELHI: India Inc today expressed apprehensions that the RBI's decision to hike short-term lending and borrowing rates could lead to higher interest rates and impact the growth momentum of the economy.
Industry chambers Ficci, CII and Assocham asked the Reserve Bank to strike a good balance between maintaining the country's growth and managing inflation.
"The move could have an impact on interest rates and the cost of borrowing, which in turn could affect areas which are still to pick up and come full stream," Ficci Secretary General Amit Mitra said.
Echoing Mitra, Assocham President Swati Piramal said that the policy rate hikes are likely to increase lending as well as deposit rates of banks immediately.
However, CII was of the opinion that the banks would not immediately raise the lending rates.
"We are reassured by the RBI's statement that it is unlikely to increase rates again in the near future," CII Director General Chandrajeet Banerjee said.
In the RBI's mid-year policy review, it announced an increase of 25 basis points in key short-term lending and borrowing rates to 6.25 per cent and 5.25 per cent respectively, to tame high inflation.
Headline inflation stood at 8.6 per cent for August, while the food inflation at an elevated 13.75 per cent for the week ended October 16.
The RBI retains GDP growth forecast at 8.5 per cent for 2010-11. In the first quarter of 2010-11, the economy grew at 8.8 per cent.
Ficci said the policymakers' focus be on extending growth which would lead to greater employment.
Industry chambers Ficci, CII and Assocham asked the Reserve Bank to strike a good balance between maintaining the country's growth and managing inflation.
"The move could have an impact on interest rates and the cost of borrowing, which in turn could affect areas which are still to pick up and come full stream," Ficci Secretary General Amit Mitra said.
Echoing Mitra, Assocham President Swati Piramal said that the policy rate hikes are likely to increase lending as well as deposit rates of banks immediately.
However, CII was of the opinion that the banks would not immediately raise the lending rates.
"We are reassured by the RBI's statement that it is unlikely to increase rates again in the near future," CII Director General Chandrajeet Banerjee said.
In the RBI's mid-year policy review, it announced an increase of 25 basis points in key short-term lending and borrowing rates to 6.25 per cent and 5.25 per cent respectively, to tame high inflation.
Headline inflation stood at 8.6 per cent for August, while the food inflation at an elevated 13.75 per cent for the week ended October 16.
The RBI retains GDP growth forecast at 8.5 per cent for 2010-11. In the first quarter of 2010-11, the economy grew at 8.8 per cent.
Ficci said the policymakers' focus be on extending growth which would lead to greater employment.
Motorola launches Android handset Flipout at Rs 15,990
NEW DELHI: Mobile phone maker Motorola Mobility India today launched its new Android-based handset 'Flipout' in the Indian market, priced at Rs 15,990.
"We further enhance our smartphone portfolio in India with a unique and trendy form factor for the young at heart with the Motorola Flipout . It merges Motorola's design heritage with Android capabilities to deliver a unique smartphone form factor," Motorola Mobility India Country Head Faisal Siddiqui said.
The Android-powered handset has a QWERTY keypad and is equipped with 2.8-inch screen, 3 mega pixel camera and expandable memory up to 32 GB.
Android is a mobile operating system, which was initially developed by Google and later by the Open Handset Alliance (OHA), a consortium of 50 hardware, software and telecom companies.
It allows developers to design applications independent of the handset type and users can download over 70,000 applications like games, music, music players and location-based services.
"We further enhance our smartphone portfolio in India with a unique and trendy form factor for the young at heart with the Motorola Flipout . It merges Motorola's design heritage with Android capabilities to deliver a unique smartphone form factor," Motorola Mobility India Country Head Faisal Siddiqui said.
The Android-powered handset has a QWERTY keypad and is equipped with 2.8-inch screen, 3 mega pixel camera and expandable memory up to 32 GB.
Android is a mobile operating system, which was initially developed by Google and later by the Open Handset Alliance (OHA), a consortium of 50 hardware, software and telecom companies.
It allows developers to design applications independent of the handset type and users can download over 70,000 applications like games, music, music players and location-based services.
Kamath qualified to step into my shoes: Murthy
fosys co-founder NR Narayana Murthy, who is set to retire from the company in August next year, saysICICI Bank chairman KV Kamath is qualified enough to take on his role as Infosys’ non-executive chairman, but the decision of the nominations committee will be final. He says IT expertise is not required to be a non-executive chairman of the software company. In an interview with ET NOW, Mr Narayana Murthy also talks about the SKS Microfinance controversy and his thoughts as an investor. Excerpts:
As Infosys founders retire, how challenging is the transition to the next crop of leaders?
The key challenge will be to ensure that one of the founders should be present when the CEO position goes to a non-founder to ensure value systems remain intact. That responsibility will rest on the shoulders of one of the founders. In any case, the CEO will be an internal candidate and there is a lot of management bandwidth.
Will you be more comfortable with an insider being selected for the chairman’s post?
My being comfortable does not matter. What is important is the executive management must be comfortable with the leader and vice versa. I am sure the nominations committee will select such a person who the management is comfortable with.
KV Kamath has been on the board of Infosys as well. Do you see him as someone who could step into your shoes?
KV Kamath is an extraordinary person. I have seen him transform ICICI from a development financing institution to a universal bank. He is clearly one of the most dynamic business leaders of the country. But again, it is for the nominations committee to decide on who the next chairman should be, I shouldn’t be pre-empting its choice. Therefore, though I have unqualified respect and admiration for KV Kamath, the final decision should be left to the nominations committee.
But you do feel he has the requisite qualifications and pedigree for this job?
There is absolutely no doubt about it.
Will the IT expertise of the person selected as chairman matter?
The position of chairman is to ensure the board performs effectively unless it’s an executive chairman who will be involved with day-to-day functioning. Therefore, I am not too sure if we require an IT expert to be a non-executive chairman.
Will the name selected by the nominations committee be binding?
Yes. I think so. The nominations committee is responsible for selecting the next chairman and, therefore, its suggestion will be binding.
On another note, a US senator referred to Indian IT companies as chop shops. Did the remark dismay you?
If somebody who knew what we were doing or had an industry view or were a respected analyst, we would be worried. But somebody who has no idea what this industry is all about and the kind of infrastructure we have built here and in 70 other countries, makes such a statement, we should be charitable to such a person. All of us, when we get older, tend to do things that are not the best. Once in a while our logic lapses, our memory lapses, we tend to say things we don’t mean. So I’d say let’s look at it in that spirit.
At the height of the SKS Microfinance controversy your office clarified you had a chat with Vikram Akula and advised the company to be fair and transparent. As a champion of corporate governance are you disappointed by the standards of corporate governance in that company, given that you have made an investment in SKS?
I am the chairman of the advisory board which is yet to be formed. Now, advisory board is a council that meets once or twice a year. It is a council that will provide advice when asked for, it’s not a council that goes and performs line duties unlike the statutory board which is responsible for the governance of the company. Because I am not on the statutory board, I do not know the details of what has happened. All that I told Vikram, like I tell my colleagues at Infosys, was to be open, honest and fair in all transactions dealing with everyone of the stakeholders.
As Infosys founders retire, how challenging is the transition to the next crop of leaders?
The key challenge will be to ensure that one of the founders should be present when the CEO position goes to a non-founder to ensure value systems remain intact. That responsibility will rest on the shoulders of one of the founders. In any case, the CEO will be an internal candidate and there is a lot of management bandwidth.
Will you be more comfortable with an insider being selected for the chairman’s post?
My being comfortable does not matter. What is important is the executive management must be comfortable with the leader and vice versa. I am sure the nominations committee will select such a person who the management is comfortable with.
KV Kamath has been on the board of Infosys as well. Do you see him as someone who could step into your shoes?
KV Kamath is an extraordinary person. I have seen him transform ICICI from a development financing institution to a universal bank. He is clearly one of the most dynamic business leaders of the country. But again, it is for the nominations committee to decide on who the next chairman should be, I shouldn’t be pre-empting its choice. Therefore, though I have unqualified respect and admiration for KV Kamath, the final decision should be left to the nominations committee.
But you do feel he has the requisite qualifications and pedigree for this job?
There is absolutely no doubt about it.
Will the IT expertise of the person selected as chairman matter?
The position of chairman is to ensure the board performs effectively unless it’s an executive chairman who will be involved with day-to-day functioning. Therefore, I am not too sure if we require an IT expert to be a non-executive chairman.
Will the name selected by the nominations committee be binding?
Yes. I think so. The nominations committee is responsible for selecting the next chairman and, therefore, its suggestion will be binding.
On another note, a US senator referred to Indian IT companies as chop shops. Did the remark dismay you?
If somebody who knew what we were doing or had an industry view or were a respected analyst, we would be worried. But somebody who has no idea what this industry is all about and the kind of infrastructure we have built here and in 70 other countries, makes such a statement, we should be charitable to such a person. All of us, when we get older, tend to do things that are not the best. Once in a while our logic lapses, our memory lapses, we tend to say things we don’t mean. So I’d say let’s look at it in that spirit.
At the height of the SKS Microfinance controversy your office clarified you had a chat with Vikram Akula and advised the company to be fair and transparent. As a champion of corporate governance are you disappointed by the standards of corporate governance in that company, given that you have made an investment in SKS?
I am the chairman of the advisory board which is yet to be formed. Now, advisory board is a council that meets once or twice a year. It is a council that will provide advice when asked for, it’s not a council that goes and performs line duties unlike the statutory board which is responsible for the governance of the company. Because I am not on the statutory board, I do not know the details of what has happened. All that I told Vikram, like I tell my colleagues at Infosys, was to be open, honest and fair in all transactions dealing with everyone of the stakeholders.
Gold may get costlier by 24% on Dhanteras over last year
EW DELHI: Gold is likely to be expensive by 24 per cent to over Rs 20,000 per 10 gram in the national capital on Dhanteras, a day considered auspicious for buying the precious metal, as compared to year-ago period, according to the Delhi Bullion Market.
Gold prices were ruling at Rs 16,200 per 10 gram and Rs 12,070 per 10 gram on the Dhanteras day in 2009 and 2008, respectively, the trade data showed.
Presently, gold prices are ruling firm at Rs 19,925 per 10 gram, almost close to the record level of Rs 20,120 set on October 15.
"Prices of the precious metal have been on the rise in the last couple of months and on the Dhanteras day, too, gold may further firm up to over Rs 20,000 per 10 gram," Delhi Bullion Market President Surender Jain told PTI.
The rally in gold prices is more due to global cues than the domestic demand, which is expected to be normal on November 3 -- the Dhanteras day, when jewellers register the highest gold sales in a year, he said.
"High prices may deter buyer's spirit to buy gold in big volumes, but demand would definitely be there for gold coins in smaller denomination," Chandni Chowk Jewellers Association Secretary Bishan Seth said.
However, gold rates are unlikely to decline below Rs 19,500 per 10 gram in the short-term considering uncertainty in the currency market and performance of other assets in the global market, he observed.
India, the world's largest consumer of gold, imported 34.8 tonnes of precious metal in September, up by 30 per cent from 26.8 tonnes in the previous month, according to the Bombay Bullion Association.
It said the demand in October would be higher due to the festive season.
The World Gold Council , which represents leading gold mining firms across the globe, said in its latest report that it would expect gold demand to pick up further in the fourth quarter of this year on the back of the main festive season.
Gold prices in India are rising in rupee terms due to its appreciation against the US dollar, it said.
While bullion experts said gold sales during Diwali is likely to improve in anticipation of further jump in rates. Prices of the precious metal have risen currently by more than four folds from Rs 4,500 10 ten gram on the Dhanteras day in 2000.
Gold prices were ruling at Rs 16,200 per 10 gram and Rs 12,070 per 10 gram on the Dhanteras day in 2009 and 2008, respectively, the trade data showed.
Presently, gold prices are ruling firm at Rs 19,925 per 10 gram, almost close to the record level of Rs 20,120 set on October 15.
"Prices of the precious metal have been on the rise in the last couple of months and on the Dhanteras day, too, gold may further firm up to over Rs 20,000 per 10 gram," Delhi Bullion Market President Surender Jain told PTI.
The rally in gold prices is more due to global cues than the domestic demand, which is expected to be normal on November 3 -- the Dhanteras day, when jewellers register the highest gold sales in a year, he said.
"High prices may deter buyer's spirit to buy gold in big volumes, but demand would definitely be there for gold coins in smaller denomination," Chandni Chowk Jewellers Association Secretary Bishan Seth said.
However, gold rates are unlikely to decline below Rs 19,500 per 10 gram in the short-term considering uncertainty in the currency market and performance of other assets in the global market, he observed.
India, the world's largest consumer of gold, imported 34.8 tonnes of precious metal in September, up by 30 per cent from 26.8 tonnes in the previous month, according to the Bombay Bullion Association.
It said the demand in October would be higher due to the festive season.
The World Gold Council , which represents leading gold mining firms across the globe, said in its latest report that it would expect gold demand to pick up further in the fourth quarter of this year on the back of the main festive season.
Gold prices in India are rising in rupee terms due to its appreciation against the US dollar, it said.
While bullion experts said gold sales during Diwali is likely to improve in anticipation of further jump in rates. Prices of the precious metal have risen currently by more than four folds from Rs 4,500 10 ten gram on the Dhanteras day in 2000.
Vijay Mallya offers $4 mn apartments in Bangalore
MUMBAI: Billionaire Vijay Mallya , owner of the world’s second-largest liquor company, is razing his ancestral home in Bangalore to build $4 million apartments as the number of people rich enough to afford them grows.
United Breweries Holdings , which owns controlling stakes in Mallya’s liquor, beer and airline units, and Prestige Estates Projects are jointly developing the 4.5 acre (1.8 hectare) plot in the technology hub, home to Google Inc., Microsoft Corp. and Infosys Technologies Ltd. Construction will start in December, Irfan Razack, chairman of Prestige, said on Wednesday after the developer’s shares debuted.
Demand for luxury apartments in India is rising as the biggest rally in stocks in 18 years in 2009 boosted the ranks of the affluent in the thirdfastest growing major economy.
Mukesh Ambani, India’s richest individual , will move into a 27-storey skyscraper in south Mumbai that cost $2 billion to build and is the world’s most expensive home, according to Forbes Magazine. “There is now considerable demand for high-end apartments in Bangalore, and it is led by the senior management class, corporate houses, non-resident Indian businessmen and high-networth individuals,” said Anuj Puri, Mumbai-based chairman of Jones Lang LaSalle Meghraj, the local unit of the world’s second-largest commercial property broker .
The combined net worth of the nation’s 100 wealthiest people climbed to an all-time high of $300 billion this year, equivalent to a quarter of the country’s gross domestic product, according to Forbes. India’s wealthy may almost double their assets to $6.4 trillion over the next five years as economic growth swells their ranks, Credit Suisse Group AG said in its global wealth report.
United Breweries Holdings , which owns controlling stakes in Mallya’s liquor, beer and airline units, and Prestige Estates Projects are jointly developing the 4.5 acre (1.8 hectare) plot in the technology hub, home to Google Inc., Microsoft Corp. and Infosys Technologies Ltd. Construction will start in December, Irfan Razack, chairman of Prestige, said on Wednesday after the developer’s shares debuted.
Demand for luxury apartments in India is rising as the biggest rally in stocks in 18 years in 2009 boosted the ranks of the affluent in the thirdfastest growing major economy.
Mukesh Ambani, India’s richest individual , will move into a 27-storey skyscraper in south Mumbai that cost $2 billion to build and is the world’s most expensive home, according to Forbes Magazine. “There is now considerable demand for high-end apartments in Bangalore, and it is led by the senior management class, corporate houses, non-resident Indian businessmen and high-networth individuals,” said Anuj Puri, Mumbai-based chairman of Jones Lang LaSalle Meghraj, the local unit of the world’s second-largest commercial property broker .
The combined net worth of the nation’s 100 wealthiest people climbed to an all-time high of $300 billion this year, equivalent to a quarter of the country’s gross domestic product, according to Forbes. India’s wealthy may almost double their assets to $6.4 trillion over the next five years as economic growth swells their ranks, Credit Suisse Group AG said in its global wealth report.
Suit to soup: Indian MBAs serve as waiters in UK
LONDON: A young Indian immigrant, Sultana from Hyderabad — she has a masters in business administration from a British university — is working as a waitress. ''Unfortunately, I'm not getting the chance I was expecting.
That's why I'm here in a fast food restaurant,'' she said in a radio programme on Sunday. She added, ''Most of my friends work in fast food restaurants because they're not getting (what) they deserve for what they studied.'' Others are employed as night-time security staff.
With UK barely out of a crippling recession and with unemployment nearing 2.5 million, good jobs are hard to come by.
A tough-talking home office minister, Damian Green, said, ''Those coming into the UK under the highly skilled migrant route should only be able to do highly skilled jobs. It should not be used as a means to enter the low skilled jobs market.'' He went on, ''While it's important that low-skilled jobs are filled, there are hundreds of thousands of British people who could be doing them instead of a migrant.''
Such workers are categorized as Tier-1 immigrants under a points-based system started in 2008 by the previous Labour party government. This was tailored to attract ''the brightest and best''. Indians who graduate or complete post-graduate studies in a British university also fall into the Tier-1 classification and are permitted to remain in the UK for up to two years to acquire professional experience.
But there is a hint that the system introduced by Labour could be altered. It will also form the foundation of an immigration cap to be imposed by the present Conservative party and Liberal Democrat coalition administration effective from April 2011; and which is expected to be announced soon.
There are wider concerns among UK authorities that the Tier-1 post study work route is being exploited by some migrants who provide bogus qualifications to obtain visas .
However, the Left-oriented Institute for Public Policy Research (IPPR) said,''Damian Green is on shaky ground in implying that highly skilled migrants coming to the UK under Tier-1 are entering the low skilled job market in significant numbers over a sustained time period.''
It further said, ''It looks very much like an attempt to justify a drastic reduction in Tier-1 visa numbers under the proposed cap.'' It could undermine Britain's economic recovery, it warned.
That's why I'm here in a fast food restaurant,'' she said in a radio programme on Sunday. She added, ''Most of my friends work in fast food restaurants because they're not getting (what) they deserve for what they studied.'' Others are employed as night-time security staff.
With UK barely out of a crippling recession and with unemployment nearing 2.5 million, good jobs are hard to come by.
A tough-talking home office minister, Damian Green, said, ''Those coming into the UK under the highly skilled migrant route should only be able to do highly skilled jobs. It should not be used as a means to enter the low skilled jobs market.'' He went on, ''While it's important that low-skilled jobs are filled, there are hundreds of thousands of British people who could be doing them instead of a migrant.''
Such workers are categorized as Tier-1 immigrants under a points-based system started in 2008 by the previous Labour party government. This was tailored to attract ''the brightest and best''. Indians who graduate or complete post-graduate studies in a British university also fall into the Tier-1 classification and are permitted to remain in the UK for up to two years to acquire professional experience.
But there is a hint that the system introduced by Labour could be altered. It will also form the foundation of an immigration cap to be imposed by the present Conservative party and Liberal Democrat coalition administration effective from April 2011; and which is expected to be announced soon.
There are wider concerns among UK authorities that the Tier-1 post study work route is being exploited by some migrants who provide bogus qualifications to obtain visas .
However, the Left-oriented Institute for Public Policy Research (IPPR) said,''Damian Green is on shaky ground in implying that highly skilled migrants coming to the UK under Tier-1 are entering the low skilled job market in significant numbers over a sustained time period.''
It further said, ''It looks very much like an attempt to justify a drastic reduction in Tier-1 visa numbers under the proposed cap.'' It could undermine Britain's economic recovery, it warned.
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