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MUMBAI (CITY)
~6.00
Sensex
Nifty
Dow Jones
Nasdaq
Hang Seng
Nikkei
FTSE
DAX
28,503
8,648
17,749
4,872
23,823
19,254
6,741
11,902
-3.2
-3.2
-0.6
-1.1
-1.4
1.5
-2.5
3.0
3.7
4.4
-0.4
2.9
0.9
10.3
2.7
21.4
3.8
4.5
-0.4
2.9
0.7
8.7
-3.0
4.8
COMPANIES P2
PARASURAMAN QUITS AS
CARLYLE INDIA MD
*Change (%) over previous week , Source : Bloomberg, Compiled by BS Research Bureau
> IN
Commercial mining of
coal to be allowed
BRIEF
AmidtheInternationalMonetaryFund cautioning
Indiaagainstheadwindstoitseconomicgrowth,
FundchiefChristineLagardewillvisitthecountry
fortwodays,startingMonday.Lagardeislikelyto
meetPrimeMinisterNarendraModiandFinance
MinisterArunJaitley.
4>
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
SHREYA JAI
April.
New Delhi, 15 March
Companies such as
Adani
Enterprises,
n the first major step
Reliance
Power
and
towards opening the
Monnet Ispat are likely to
coal mining sector, the
benefit from the move.
government will start alloThese companies plans to
cating coal blocks to state
operate as MDOs were hit
governments for commerwhen the Supreme Court,
cial mining. The move,
in August 2014, cancelled
likely in a month, will put
all coal block allocations
an end to the Centres 41through the past two
year-old monopoly over
decades.
commercial sale of coal.
The coal ordinance has
The coal ministry will
inserted section 3A in the
allot
non-operational
Coal Mines Nationalisation
mines to state governAct to enable joint ventures
| In 1970, the Union government took over
ments for commercial
by central and state govmining and sale of coal for
ernments and their commining, according to the Coal Mining
end use in the iron, steel,
panies, and any other comNationalisation Act
cement and allied sectors.
pany,
for
mining
| Coal ordinance 2014 enables commercial
This will bring business
operations in India in any
mining by Indian and foreign companies,
and revenue to coal-rich
form, either for own constates and private joint ventures
states, which have so far
sumption, sale or for any
received only royalty from
other purpose, in accor| Allocating coal blocks to states likely to begin
private companies mining
dance with a licence grantin a month
coal for captive use.
ed by the state government
| The move will bring business to mining
Non-operational
concerned.
development operators
mines from schedule-I will
The ordinance classifies
be allotted to state governmines and their assets into
| Companies such as Adani Enterprises and
ments to extract coal for
three schedules. The first
Reliance Power to benefit
commercial usage and
has all the 204 mines demarket sale. States could
allocated by the Supreme
then sell this coal to the utilities under their umbrella or Court. Now, mines under this schedule will be allotted
any private company for various end uses, as specified in to states. Subsequently, the government will consider
the ordinance, said a senior official. This is pursuant to commercial mining by private companies.
an enabling provision on commercial mining and sale of
There are 74 mines with specified end use in the
coal in the coal ordinance (special provisions), 2014.
power, steel and cement sectors. These mines are
Sources say the Centre is already in talks with states under the second (42 operational mines) and third (32
to allot mines for commercial use.
mines in various stages of development) schedules. Of
However, a lot will depend on the fate of the ordi- these, the coal ministry has allocated 40 mines with
nance in the Rajya Sabha, which has referred it to a specified end uses to private companies, through an eselect committee. So far, the ordinance has been prom- auction. The government received bids for revenue
ulgated twice.
amounting to ~2.35 lakh crore through 30 years, to
The coal ministry will also issue guidelines for the coal mine-bearing states.
appointment of mining development operators (MDOs)
It is also allocating 42 mines to states and stateby states. It is likely the guidelines will be announced by owned companies for specified end uses.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
NEW HORIZONS
The alleged snooping on Congress vicepresident Rahul Gandhi by an assistant subinspector of the Delhi Police threatens to dent
the Narendra Modi governments reforms
agenda, as the Congress is likely to adopt an
aggressive stance following the incident.
16 >
HAVELLS: GROWING
BRICK BY BRICK
BS SPECIALS ON MONDAY
STATSGURU
Price/earnings
Price/book
KRISHNA KANT
Mumbai, 15 March
COMPANIES P2
Exports likely to
contract in FY15
BUSINESS LAW
BRAND WORLD
14 >
Totargettheyouth,
Frootihaschanged
itslooksandtaste.
SAYANTANI KAR
reports
Is online transaction
truly online?
Theinitialprocesstocommencea
financialtransactionstillrequires
paperworkanddocumentation.
Thiswillnotchangeuntilacentral
repositoryandcommondemat
accountsareinplace. PRIYA NAIR &
TINESH BHASIN report
10 >
stocks do well.
In the past, such peaks have been followed
by periods of under-performance by banking
and financial stocks. Overall, however, financials have been out-performing the broader
market since early 2007, resulting in a steady
rise in their index weight. In March 2006,
financials accounted for 17.6 per cent of the
Nifty companies combined free-float (nonpromoter) market capitalisation.
Many say financials and other high-beta
stocks could be hit first if foreign capital
inflows to India decline. Banking and financial stocks have been the biggest gainer of
the strong FII (foreign institutional investment) inflow into India. If the trend reverses
or the flows moderate, it could adversely
affect valuations in the sector and pull down
the broader market, says Dhananjay Sinha,
head (institutional equity), Emkay Global
Financial Services.
In the past year, pharmaceutical companies, too, have been a net contributor to the
market rally, outperforming the broader market. The National Stock Exchange pharma
index has risen 63 per cent in the past 12
months, helping the Nifty touch a new high
during the year. The top four pharma companies in the country account for 6.4 per cent of
the Nifty, against 5.9 per cent a year earlier and
2.3 per cent five years ago.
Analysts attribute this to the strong operational and financial performance of Indian
pharma companies on the back of higher
exports to the US.
Turn to Page 4 >
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ILLUSTRATION:
AJAY MOHANTY
alsoholds17percentstakeinTamilNadu
Petro Products, a manufacturer of linear
alkylbenzene,heavyalkylbenzene,heavy
normal paraffin, epichlorohydrine, caustic soda, chlorine, ammonium chloride
and hydrochloric acid; Manali Petrochemicals, in which the holding company
has 40 per cent stake, produces propylene oxide, propylene glycol and polyols.
ItalsoholdsstakeinGreenstarFertilizers,
which manufactures phosphatic fertilisers.AMInternationalwhollyownsWilson
International, a trader of upstream and
downstreamproductsrelatedtofertilisers.
When contacted, Muthiah confirmed there was a proposal to set up a
plant in the US but declined to give
details. Sources close to the company
said the move was an attempt by the
MA Chidambaram group scion to chart
a new and distinct course for the group
he had inherited.
Sources said construction of the
plant was likely to begin in the last quarter of 2015 and be completed in about 30
months. AM Agrigen Industries plans
to tap a mix of global investors, apart
from roping in companies with which it
will have offtake agreements for ammonia to fund the project. The bulk of the
investment will come from the groups
holding company, AM International.
The company will look to leverage
the US highest-density inter- and intrastate natural gas pipeline network,
besides low and stable prices because of
abundant supply of natural gas, a key
raw material for producing ammonia.
AM Agrigen, which will produce ammonia for customers in the US and Europe,
thinks manufacturing in the US is more
cost-efficient than in India, thanks to
the availability of cheap gas there.
Muthiahs proposed investment is
seen as substantial, considering Indian
companies total foreign investment
stood at about $2 billion globally as of
January this year, according to Reserve
Bank data.
Companies
in India
across
industries,
have been
using Oracle
Cloud for a
myriad of
business
applications.
Today, both
large
Niraj Kaushik
enterprises
Vice President Applications
Oracle India
and SMBs
are relying on cloud technologies to
modernize their computing needs.
Cloud is rapidly gaining acceptance
as the new model for enterprise
computing in India and Oracle is
witnessing a strong demand for these
solutions, said Niraj Kaushik, Vice
President Applications, Oracle India.
According to Forbes, two-thirds of
Indian CIOs are expecting the majority
of their information technologies to run
on the cloud by 2015. Airtel Learning,
Apollo Hospitals, Jabong.com, Intel,
Aditya Birla Management Company,
Maruti Motors, Hero MotoCorp,
BigTree Entertainment, Sonata
Software, Myntra.com, Kalpataru,
NetApp India, Adobe Systems, Haier,
Thomas Cook, Natures Feast, Sudhir
Gensets are some enterprise
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help Indian enterprises realize the
benefit of cloud, Oracle is hosting an
exclusive conference, Oracle
CloudWorld, in Mumbai on 7th April.
The attendance to CloudWorld is by
Invitation only.