First round of bidding for discovered small fields to begin from July 15
The first round of bidding for discovered small fields will start from July 15 with the last date of bid submission being kept on October 31. Dharmendra Pradhan, Minister of State (Independent Charge) for Petroleum and Natural Gas, said the Ministry will aim to complete the contract signing and award of the fields by maximum January 2017. On offer would be 67 fields clubbed into 46 contract areas. The fields have resources worth Rs. 70,000 crore locked and were previously owned by ONGC and Oil India, Pradhan said. The two companies could not develop the fields because of the small size and unattractive pricing. “Even if they were offered revenue sharing contract, marketing and pricing freedom, which is being offered to the bidders, ONGC and Oil India may not have been able to develop these fields,” Pradhan said after launching the first round of bidding for discovered small fields. Already 130 wells have been dug in these fields and they have 48 million tonnes of in-place oil reserves as well as 38 billion cubic meters of in-place gas reserves. Pradhan said that roadshows for the bidding round will begin in Mumbai on June 6. “To attract and encourage start-up companies in the hydrocarbon exploration and production business, we will also host a roadshow in Bengaluru and keeping in mind our focus on developing eastern India, we will have a roadshow in Guwahati,” the Minister said. Devin Funchess Jersey
Economy on fast-track; need to boost infra, cut logistic costs: Gadkari
In an interview to Bloomberg TV India, Union Road Transport, Highways and Shipping Minister Nitin Gadkari crystal gazes at what was missing in the earlier regimes and what has been achieved by the Modi government in the last two years He also outlines the challenges and the road ahead for the fastest-growing major emerging economy. Starting with a stark slowdown, the NDA government has been able to pull up GDP growth to 7.5 per cent even as the global economy remains feeble and the neighbouring China is in a crisis. The Modi government is decisive, it has a vision and has fast-tracked decision making process, and this has changed the scenario, he says. Excerpts: Two years have passed. . Before we get into some specific things, I want your big picture assessment. Two years down the line, are you satisfied with the overall performance of the government as well as your Ministry? I feel that this is the first time a government is with a vision and a government has a commitment for gaon, gareeb mazdoor and kisaan (village, poor, worker and farmer). And that reflects in the policies. This is a decisive government. Prime Minister Narendra Modi has a vision. The government has a fast-track decision-making process and definitely the scenario has changed. You talk about the coal sector, now we have a surplus there. You talk about the power sector, now we have a surplus. Now you talk about road sector. At a time when the government took charge, road construction was only 2 km per day. Today, it has reached 25 km per day. In the port sector and in inland water sector, things are progressing. In case of agriculture sector, there is no black marketing of urea. There is no lathi charge on farmers because of urea. From last year, urea production is in surplus. So a lot of things are changing. You have given a time period of 60 years to Congress and we are just completing two years. It will not be appropriate to compare our two years with the 60 years of the Congress. I am confident that we have basically changed the track of the economy. Our economy is now on a fast track. We are going to increase employment potential. These will result in increase in GDP. When Manmohan Singh was Prime Minister, the GDP growth rate was 4.5 per cent in FY13 and 4.7 per cent in FY14. Today, the GDP growth is over 7.5 per cent. Agriculture growth has also increased. Still, we are facing a lot of problems. In the last two years, there were a lot of problems, challenges, and some negative things were there. But still our government has succeeded in giving a good vision to the country and we are moving fast. Infrastructure building in different fields, Digital India, Make in India, Start-up India — these are the new visions. Innovation, entrepreneurship, technology and research — these are the things we are focusing on. The way in which the Prime Minister visited different parts of the world, he is recognised as a world leader. There is a lot of respect for the country and for the Prime Minister in the whole world. There are great achievements. We have improved the relations with our neighbouring countries — Nepal, Bhutan and Bangladesh. We have solved the land dispute issue with Bangladesh. But still there are many challenges. You are not only a Union Minister, but also have been the BJP president. And now that the Congress seems to have been restricted to just a few states, what changes, as far as the political discourse in the Parliament, do you perceive? Although the Bankruptcy Bill has been passed, what about some of the pending reforms? Is the climate likely to change Do you feel the Congress will continue to remain the way it was? Do you expect an improvement in relation with the Congress and other parties on the floor of the Parliament? Poverty and unemployment are two very important issues for the country. I sincerely feel that these are still the issues only because of the wrong economic policies, bad and corrupt governance and the visionless leadership of the Congress party. I have serious reservation about the economic policies created during the Congress rule. Now we are facing drought. No drinking water is available in villages. There is no water available for farmers. But the Congress government purchased aircrafts worth ?70, 000 crore. I never understood what the priority was. When there were a lot of private players who were ready to invest in the aviation industry, what was the need for the government to invest ?70,000 crore in purchasing aircraft? This is a wrong economic policy. The country needed a development-oriented government, a transparent government, a corruption-free government and a government with a vision for development. Our government has these qualities. There is no charge of corruption against our government. That’s why the economy is changing. But still there are challenges. World economy is under recession now. China is facing economic crisis. In such a scenario, it is difficult for us to work in our country also. We have to increase our exports, we have to increase investments and foreign investments across sectors. These are the challenges before us. But I always have faith. There are some who convert problems into opportunities and there are some people who convert opportunities into problems. But our government under the leadership of Prime Minister Narendra Modi is confident that we can convert problems into opportunities and we can make India socially and economically strong. I want to request you to tell us about water-bone transport. Since India is a mainland country we continue to get stuck at red lights and we forget that there is no red light in rivers or seas. In the future what is the plan? You are absolutely correct. This sector was totally neglected by the previous government. In China, 47 per cent of
List of smart cities could cross 100, hints Venkaiah Naidu
The number of Smart Cities may end up at more than 100, the government indicated on Tuesday as it announced allowing seven state capitals -Bengaluru, Patna, Shimla, Amaravati (Andhra Pradesh), Thiruvananthapuram, Naya Raipur and Itanagar- to participate in the competition. These capital cities were left out of the mission. Moreover, Meerut and Rae Bareli from UP, both of which had scored similar marks resulting in a tie for the 13th nomination from Uttar Pradesh will also be allowed to submit their plans. Even Jammu and Srinagar from J&K will be allowed to compete. “One city from each of these states will be selected based on the quality of Smart City plans,” urban development minister M Venkaiah Naidu said. Neither Centre nor the UP government was ready to take a decision between Rae Bareli and Meerut considering the political implications. While Rae Bareli is Sonia Gandhi’s constituency, BJP won Meerut Lok Sabha seat in 2014. Responding to what the logic is behind bringing more cities into this competition when the total number of cities and for each state have been capped, Naidu said, “It’s not necessary that all the nominees from states can qualify. So, there will be room for new cities. If we get more budget once the GST is passed, we may go for more cities under this scheme. The list of 100 cities will act as light houses,” he said. Stephen Curry Jersey
‘Expansion of smart cities list to evenly distribute benefits’
Real estate industry experts today welcomed the addition of 13 cities to the list of smart cities, saying it will distribute the benefits of urban development more evenly across the country and drive growth. The Union Government today announced the names of 13 new cities which will be developed under the Smart City Mission. It includes Lucknow in poll-bound Uttar Pradesh, Warangal in Telangana and Dharamsala in Himachal Pradesh. “This is a welcome development as the government has allowed more states and cities to participate in the Smart Cities initiative. It is encouraging to note the participation of more tier-II and III cities, which means that the benefits of urban development and infrastructure creation will be evenly spread across the country,” CBRE South Asia Chairman and Managing Director Anshuman Magazine said. “The release of the list of the next 13 smart cities today brings up the credibility of the government in pushing forth with the smart cities program in a time-bound manner. “The initiative will significantly benefit the economy and the people and help build demand for the industry,” KPMG (India) Partner-Infrastructure and Government Services Jaijit Bhattacharya said. Deloitte India Senior Director Arindam Guha also said the additions are expected to make distribution of smart cities across the states more balanced. “What is more important is what kind of models individual cities will adopt for procurement and implementation,” he said. Dwayne Allen Jersey
Slump in LNG prices delays production at Mozambique gas field
Production at the Mozambique gas field, in which Indian state firms have 30% interest, will get delayed by about three years with the first output likely only in 2021, as plunging gas prices cast a shadow on investment decisions and make buyers scarce. “It’s aclassic chicken and egg situation,” said a source with direct knowledge of the matter. “Gas purchase agreements can’t be finalised quickly as the final investment decision (FID) hasn’t been made, and an FID can’t be made because there is no visibility on who will buy the gas.” At the heart of this complex situation is the massive three-fourths drop in liquefied natural gas (LNG) prices in two years. A supply glut has brought down spot LNG prices to about $4.25 per unit, upending the market rules and leaving buyers and sellers with little pricing certainty with which to strike long-term deals. Many of those caught in long-term expensive deals prefer spot cargoes these days. The Mozambique project, however, is not unique in this as many other projects globally face the same stress brought on by the price crash. To be sure, the Mozambique project has entered into preliminary agreements with several buyers for its natural gas. But those agreements haven’t entered the final, binding stage since, according to a source, buyers first want to see investment commitment from the promoters of the Mozambique field. Another source said the investors in the project are hesitant in committing to long-term deals at current prices and are therefore delaying the project. The FID for the project is now expected only by the end of 2016, according to the source. The output would start only in 2021, he said. The first LNG from the project was expected by 2018, Oil and Natural Gas Corporation ( ONGC) had said while announcing its first stake buy in the project in June 2013. ONGC and Oil IndiaBSE -0.31 % had jointly agreed to purchase 10% participating interest from VideoconBSE 0.63 % Mauritius Energy Ltd for $2,475 million in Rovuma Area-1block in Mozambique with an estimated recoverable reserves of 35 to 65 trillion cubic feet. Just two months later, ONGC agreed to buy additional 10% stake from Anadarko for $2,640 million. Bharat Petroleum CorporationBSE 0.85 % had entered the project in 2008 with a 10% stake. Anadarko Petroleum Corporation, with its 26.5% interest, is the operator of the block. According to the source quoted above, $5-6 billion has already been invested in the Mozambique project and another $25 billion is further needed. Marcus Gilbert Authentic Jersey
FSSAI to remove potassium bromate from food additives list
After a CSE study claimed that bread contains cancer-causing chemicals, Food regulator FSSAI today said it has decided to remove potassium bromate from the list of permitted additives while it is examining evidence against potassium iodate before restricting its use. A report by NGO Centre for Science and Environment (CSE) said that nearly 84 per cent of 38 commonly available brands of pre-packaged breads, including pav and buns, tested positive for potassium bromate and potassium iodate, banned in many countries as they are listed as “hazardous” for public health. “A scientific panel had recommended removal of potassium bromate from the list of additives. So we have already decided to take it out from the list. Soon it will be notified,” Food Safety and Standards Authority of India (FSSAI) CEO Pawan Kumar Agarwal told . “As far as potassium iodate is concerned, we are examining the evidence and soon a decision will be taken,” he added. According to sources, in January FSSAI had decided to remove potassiun bromate from food additives list and had even issued a draft notification. According to CSE, potassium bromate typically increases dough strength, leads to higher rising and uniform finish to baked products, while potassium iodate is a flour treatment agent. CSE has also urged food regulator FSSAI to ban the use of potassium bromate and potassium iodate with immediate effect and prevent their routine exposure to Indian population. Reacting to the CSE report, Health Minister J P Nadda said, “We are seized of the matter. I have told my officials to report to me on an urgent basis. There is no need to panic. Very soon we will come out with the (probe) report.” In its report, CSE claimed that while one of the chemicals is a category 2B carcinogen (possibly carcinogenic to humans), the other could trigger thyroid disorders but India has not banned their use. Quoting Food Safety and Standards (Food Product Standards and Additives) Regulations, 2011, CSE said the maximum level of use of potassium bromate and/or iodate in bread is set at 50 ppm. The maximum level of use of potassium bromate in flour for bakery is 20 ppm, while that of potassium bromate is 20 ppm in maida (refined wheat flour), if used for bakery. Jimmie Foxx Authentic Jersey
Govt to soon decide on Apple’s single brand retail proposal
Government will soon take a call on the proposal of iPhone and iPad maker Apple for setting up single brand retail stores in the country. “We are looking at the proposal and will soon decide about Apple’s proposal for setting up of single brand retail,” a senior government official said. The company has sought exemption from the local sourcing norms as the US-based giant makes state-of-the-art and cutting edge technology products for which local sourcing is not possible. The proposal is being considered by the Finance Ministry as to whether the company can be provided exemption from 30 per cent local sourcing norms for undertaking single brand retailing of products having state-of-the-art and cutting edge technology, the official added. Single brand retailers are also allowed to take e-commerce route for such trading. At present, 100 per cent FDI is permitted in the sector. But beyond 49 per cent, the Foreign Investment Promotion Board’s (FIPB) permission is required. The company sells its products through Apple-owned retail stores in countries like China, Germany, the US, the UK and France, among others. It has no wholly-owned store in India and sells its products through distributors such as Redington and Ingram Micro. In January, Apple had filed proposal seeking permission for single-brand retailing and sell products online but due to certain gaps in the application, Department of Industrial Policy and Promotion (DIPP) had sought more information from the US-based technology giant. As a result, the company again resubmitted its application in March. Chris Carson Jersey
More challenges than cheer for Apple chief Tim Cook on Asia tour
With slowing iPhone sales in China, Apple Inc is having to take India more seriously, but investors hoping for a stock price fillip from CEO Tim Cook’s week-long Asia trip instead were given a taste of the daunting challenges that lie ahead. The second leg of Cook’s trip, to India, the world’s third-largest smartphone market, comes at a crucial time as Apple battles slowing growth in China, its second-biggest market. But the challenges suggest it will be years before India is anything close to a major earnings pillar for the US tech giant. “With China saturating, everybody has no choice but to look at India, and Apple’s rivals have been strengthening there in the last two years. Apple is playing catch-up,” said Ville-Petteri Ukonaho, a senior analyst at Strategy Analytics. While the numbers in India suggest huge potential – fewer than two in every 10 of the country’s 1.3 billion people have a smartphone – the world’s fastest growing major market operates differently to other markets where Apple has enjoyed stellar growth and high margins. Apple’s traditional model is to sell its phones at full price to local telecoms carriers, which then discount them to users in exchange for charging them for data as part of a multi-month contract. Not so in India. “In India, carriers in general sell virtually no phones and it is out in retail – and retail is many, many different small shops,” Cook told analysts recently. “Because smartphones there are low-end, primarily because of the network and the economics, the market potential has not been as great,” added Cook, likening India to the Chinese market 7-10 years ago. In meetings with India’s two largest carriers, Bharti Airtel and Vodafone, Cook discussed ways to work more closely to sell iPhones, including whether a contract pricing model could work in India. He said Apple sees opportunities to expand in the market as operators roll out 4G services. “The trip was more about understanding the Indian market, but was also about signaling to the world that Apple has arrived in India,” said Vishal Tripathi, research director at Gartner. PRICE SENSITIVE Another challenge for Apple is how to be a premium-end player in a low-income market. “In India, incomes are so low that not many customers appreciate the full value of the Apple ecosystem, and it will take a lot more effort for Apple to sell the Macs and iPads in Indian stores compared to China,” said Strategy Analytics’ Ukonaho. India is a more price sensitive market than China, and Apple’s relatively expensive iPhones are out of reach to most Indians, who on average live on less than $3.10 a day according to World Bank data. With per capita income of $1,570 as of 2014 and the average smartphone selling for less than $90, a third of the global average, India’s market growth is predominantly led by cheaper phones. High-end smartphones – costing from $300 – make up only 6 percent of the market, or just 6 million units, according to Morgan Stanley. Rebuffed by India’s government in its plan to import and sell used, refurbished iPhones, Apple has seen only slow growth in a market dominated by Samsung Electronics and Chinese brands. That issue was not resolved in talks with Indian Prime Minister Narendra Modi – which a Modi aide called “extremely successful” – and government officials have pressed Apple to set up manufacturing facilities in India, said officials involved in discussions, a move that would create jobs and boost Modi’s “Make in India” initiative. “Now it’s for Apple to talk about their plans,” the Modi aide said. Apple declined to comment on what Cook achieved on his Asia trip. MORE MARKETING Apple’s brand awareness ranks 10th in India, trailing Samsung, Sony, Blackberry and some local rivals. Almost half of respondents in a Morgan Stanley survey said they do not know Apple. While Apple is likely to double its share in the $400-plus segment to 40 percent, it “has to significantly increase its store presence, ramp up marketing, and add local content,” the brokerage said in a recent note. A first Apple retail store in India is unlikely to open its doors until next year at the earliest. In internal meetings, Cook stressed how Apple wants to increase its retail operations in India and work with re-sellers to make its products available more widely. “We’ve been hiring for India retail and distribution for the last few months, and Tim’s message was that we need to double down on that,” said an Apple official in India. In China, where iPhone sales slumped in January-March and some online entertainment services were suspended, Cook also had little to cheer investors. At meetings with Chinese officials, Cook emphasized Apple’s contributions to China’s economy – creating jobs, generating revenue and paying taxes – said people familiar with the matter. His visit came just days after Apple announced a $1 billion investment in a local ride-hailing app firm, a move Cook says will help Apple better understand China. But when he asked about the shutdown of online services and emphasized that Apple had followed procedures in establishing those services, he was told only that China would look into it, the people said. Kevin Johnson Womens Jersey
IIM-A asks Flipkart to guarantee jobs of recruits, says Rs 1.5 lakh compensation for late joining unaccepatable
Days after Flipkart told new campus recruits it was deferring their joining dates to December from June due to a restructuring exercise, the Indian Institute of Management, Ahmedabad, sent a strongly worded email to the company urging Chief Executive Officer Binny Bansal to guarantee that the candidates do indeed have a job when the date of joining is finalised. The letter was addressed to Bansal, Chief People Officer Nitin Seth and Executive Chairman Sachin Bansal among others. The email, a copy of which ET has, suggested that the delay should be shortened and said the compensation of Rs 1.5 lakh offered by Flipkart was “utterly unacceptable.” Compensation should be in the form of a monthly payment starting June and not as a lump sum as joining bonus or arrears, it said. IIM-Ahmedabad placement committee Chairperson Asha Kaul asked the Flipkart management to schedule a conference call in the next few days, “where all the relevant stakeholders can engage to reach a mutually acceptable solution”. Flipkart told ET that it has written to Kaul saying that it’s taking on all the students it has hired but it wouldn’t be able to increase the compensation while pointing out that this isn’t the first time campuses have faced such a situation. To be sure, while Flipkart may be the biggest ecommerce campus recruiter to postpone joining dates, B-schools and engineering colleges have seen others in this space deferring or even withdrawing offers of late. The IIM email pointed out that students need to repay loans and had turned away “multiple opportunities that the campus had to offer”, adding that most students had chosen Flipkart over other well-reputed recruiters because of the strength of its brand. “The decision to defer the date of joining, coming as it does so close to the earlier promised date of June 2016, is sure to make this talent pool regret their decision of joining your company. Talented students fresh out of campus, on the eve of starting successful careers, feel cheated,” it said. While restructuring calls for tough decisions in an organisation, “the matter of campus hiring could have been handled much better with campuses forewarned well in advance and engaged as partners in this decision making”. This is likely to have an impact on future campus hiring drives. “Future engagement of Flipkart with B-school campuses is bound to get affected as a relationship based on mistrust and lack of transparency can never be mutually beneficial,” the email said. The letter has been forwarded to placement cells at several other B-schools including IIMCalcutta, IIM-Bangalore, IIM-Indore, Faculty of Management Studies, Delhi, TA Pai Management Institute and Tata Institute of Social Sciences, asking them if they would be interested in joining the call. The move comes as Flipkart tries to contain its burn rate, even looking to trim fixed costs, of which employee compensation forms a significant chunk. Also, profitability is now taking precedence over last year’s mantra of growth at any cost, for which it needed to recruit in droves. The company has already put high-profile hires on the backburner and is not aggressively looking to add more executives to its ranks, relying more on existing staff to fill senior roles. “We have hired a lot in the last 18 months. There are a few critical positions opened on the hiring side based on specific needs we have which we continue to do. What we have is great internal talent,” Binny Bansal told ET on Monday when asked about recruitment plans. Flipkart told placement cells and campus hires on Friday that the company has been restructuring its businesses in the past few months. In line with this, the new recruits will start working toward larger company goals from “day one”. But change of this scale meant time and effort, which is why it was delaying the joining date, Flipkart said. The move came as a shock to students, who’d been expecting to start work next month at typically high wage levels. “For some roles, Flipkart was paying a Rs 20 lakh-plus (annual) package (and) joining in December means losing out on over Rs 10 lakh,” said a B-school placement team member. “A joining bonus of Rs 1.5 lakh can’t make up for it.” When asked whether Flipkart had responded to the email, Kaul said: “We would not like to comment at all at this stage.” Other B-schools said they would be getting in touch with the company and decide on the course of action. “Some students may want to look for alternatives,” said the placement head of another top IIM. Hires from the Indian Institutes of Technology have also received the same communication deferring joining dates. “We will understand the company’s point of view and then take a collective decision,” said an IITDelhi placement official. Stanley Cup Authentic Jersey
Another Valley hire quits, this time at Snapdeal
Anand Chandrasekaran, Snapdeal’s chief product officer, on Tuesday joined the growing tribe of prized Silicon Valley hires who quit Indian unicorns within a year of signing up. Chandrasekaran had joined Snapdeal from telecom major Airtel but it was his stint at Yahoo, US that was the attraction for the Delhi-based online marketplace when he was brought on board. Roping in Chandrasekaran was also seen as Snapdeal’s answer to Flipkart hiring ex-Googler Punit Soni as CPO three months earlier (in June last year). Soni recently left Flipkart after the company could not provide him a clear role after its senior-level management reshuffle. “Anand has decided to move out of Snapdeal and pursue entrepreneurial interests. Anand has done some stellar work on the product side at Snapdeal. His insights and attention to detail have helped us traverse quickly towards launching and improving products at Snapdeal. We wish Anand the very best for his entrepreneurial journey ahead,” a Snapdeal spokesperson told TOI in an emailed response. Over the last one year, leading ecommerce companies like Flipkart, Snapdeal, Zomato scouted for tech talent in the Valley, luring them to India with fat pay cheques. Peeyush Ranjan, head of engineering, and Soni hogged the limelight when they joined Flipkart, while Zomato roped in former Facebook employee Namita Gupta as CPO. Gupta too left after spending less than a year at Zomato in July last year. Tanmay Saxsena, who replaced Gupta at Zomato after spending over a decade in the Valley, has also left the online restaurant discovery platform to join healthcare startup 1mg. “There are two key reasons for Valley talent to leave after short stints: First, this is a different environment than Valley and there are cultural differences. Second, all of them are overpriced for the role they were hired for. Scenario a year back was different but now the companies are tightening their spends as funding crunch is a reality,” Kris Lakshmikanth, CMD at Head Hunters India, said. Chandrasekaran was heading the product division for Snapdeal, Freecharge, Shopo, Exclusively, among others. His exit adds to the continuous churn at Snapdeal, which saw many top-level exits over the past year, including Srinivas Murthy, senior VP marketing; Rajan Kant who headed strategy; Aakash Moondhra, CFO; Amitabh Misra, chief technology officer, among others. In fact, earlier this month Rahul Taneja, who was vice-president and head of category management at Snapdeal, resigned to join rival Jabong. Meanwhile, Freecharge elevated its COO Govind Rajan as CEO while the incumbent, Kunal Shah, will take over the role of chairman.