New Delhi: Amid the row in the US over outsourcing, a study has found that big companies such as the Essar Group, HCL Technologies Ltd, Tata Group, Mahindra and Wipro Ltd have generated over 30,000 jobs for US citizens in recent years.
Tata Group alone employs 19,000 Americans and has invested over $3 billion (Rs12,963 crore), besides operating 16 businesses in US, a report by US-India Business Council (USIBC) and industry body FICCI said. Indian employers and their American workers contribute billions of dollars to the federal, state and local treasuries by way of wages, corporate taxes, payroll taxes and income taxes, the study said.
About 12 Indian companies, including Essel-Propack, ITC Kitchens of India, Ranbaxy Laboratories Ltd, Satyam Computer Services Ltd and Wockhardt Hospitals Ltd, are making a sizeable impact on the US economy, the report said.
With a presence in nearly a dozen states like Arizona, Colorado, Florida, Missouri, New York and Texas, Essar’s American operations generated more than $110 million in revenues last year and has employed about 7,200 people till now, which would increase to 8,500 by next year.
Lopsided procurement may harm open market
New Delhi: Heavy wheat procurement in Madhya Pradesh and Rajasthan, which are going to polls later this year, could reduce the availability of the grain in the open market, leading to a possible rise in prices, said Planning Commission member Abhijit Sen.
Pointing out that significant amount of wheat has been procured by the governments of certain states where production has fallen, Sen said: “The consequence is that in many of these states you will find less wheat in the market.”
Sen said there could be problems in states such as Madhya Pradesh and Rajasthan, as wheat procurement has increased significantly despite dip in output. “This year a lot of procurement has taken place from states which are not traditionally wheat procurement states. About a million tonne has come from Rajasthan, nearly 3 million tonnes, or mt, are going to come from Uttar Pradesh and 2.5 mt have come from Madhya Pradesh. And about half-a-million tonne each has come from Bihar and Gujarat,” he said.
Panel to review Chinese equipment quality
Mejia, West Bengal: The Central Electricity Authority, or CEA, has formed a technical committee to look into the quality issues of plants and equipment supplied by the Chinese companies engaged in installing thermal power plants in India. The technical committee, formed by the CEA to review performance in implementation of power projects in Sagardighi, Yamuna Nagar and Durgapur, is set to submit its report soon, Union minister of state for commerce and power Jairam Ramesh said here on Sunday. “Chinese power equipment suppliers are undoubtedly one of the cheapest globally, but we need to find out the quality aspect of the equipment supplied by these companies. The report will act as a reference for companies intending to offer projects to them,” he said. Chinese companies working in the power sector here are DongFang Electric Corporation, or DEC, and Shanghai Electrical. The minister was here to witness “drum-lifting” of Damodar Valley Corporations, Mejia Thermal Power Stations, MTPS, unit VIII of 500MW. The “drum-lifting” refers to physical installation of the boiler on a platform.
UAE cancels debt owed by Iraq, appoints envoy
Abu Dhabi: The United Arab Emirates (UAE) cancelled all its Iraqi debt on Sunday and moved to restore a full diplomatic mission in Baghdad by naming a new ambassador, Abdullah Ibrahim al-Shehhi, currently envoy to India. The move is part of a recent warming between Iraq’s Shiite-led government and its mostly Sunni Muslim neighbours. Washington has pushed Gulf states like the UAE to restore ties with the war-torn country. Jordan named an ambassador last week, and Kuwait and Bahrain say appointments are imminent. The Emirates’ official news agency quoted the country’s president as saying the UAE was cancelling all $4 billion (Rs17,284 crore) in debt owed by Iraq. The announcement came as Iraqi Prime Minister Nouri al-Maliki was visiting the Emirates. An Iraqi government spokesman, Ali al-Dabbagh, confirmed his government was notified of the debt cancellation.
Biocon to hive off research unit
New Delhi: Bangalore-based Biocon Ltd plans to hive off its research and development (R&D) activity to a separate entity as a part of its focus on innovations. The company also looks to set up a dedicated greenfield facility to manufacture tablet formulations.
“Biocon is setting up an R&D company which will focus on discovery and innovation programme,” Biocon chairperson and managing director Kiran Mazumdar-Shaw said in an emailed interview. She said that the research and development entity would be a 100% subsidiary of Biocon.
In the recent past, many large pharmaceuticals firms in the country have hived off their R&D businesses into new companies in order to attract strategic investments in the high cost drug development and delivery sector.
Pharma majors, including Sun Pharmaceutical Industries Ltd, Wockhardt Hospitals Ltd and Ranbaxy Laboratories Ltd, have announced hiving off their R&D arms, while Nicholas Piramal India Ltd has announced it would separate its generic business and would concentrate on R&D. Shaw said Biocon is also looking at setting up a greenfield tablet formulation manufacturing unit.
Second Cong MLA quits to join BJP in Karnataka
Bangalore: Karnataka’s ruling Bharatiya Janata Party, or BJP, upped the ante on its political rivals on Sunday by netting yet another opposition legislator—its fourth in two days—in an attempt to strengthen its position in the legislative assembly.
The latest entrant into the party is J. Narasimhaswamy, son of Congress parliamentarian R.L. Jalappa and his party’s legislator from Doddaballapura, a constituency on the outskirts of Bangalore city. A day earlier, Congress legislator from Karwar, Anand Asnotikar and two Janata Dal (Secular), or JD(S), legislators Balachandra Jarkiholi and Shivanagouda Naik resigned from their membership in the assembly to join the BJP. The move, which will lead to by-elections in the state where assembly elections concluded in May, has caused a setback to the Congress and JD(S).
“They (BJP) have been challenging openly that they will break the Congress and JD(S). Now they have done it,” said Merajuddin Patel, JD(S) state president. He added that the “mining lobby” was behind these defections.
Patel was referring to the three ministers from Bellary, B. Sriramulu and the two siblings G. Janardhana Reddy and G.Karukanara Reddy who hold considerable clout in the BJP. The Reddy-run Obulapuram Mining Co. in Andhra Pradesh while Sriramulu is a director in the firm.
Idea to seek shareholder nod for allotting shares
Mumbai: India’s fifth largest mobile telco with 26 million subscribers, Idea Cellular Ltd, said on Sunday it will seek shareholders’ approval for allotment of over 46 million equity shares to Telekom Malaysia International Bhd (TMI). for about Rs7,290 crore. The board of directors has issued a notice to hold an extra-ordinary general meeting (EGM) of the shareholders on 30 July for this purpose, the company said in a filing to the Bombay Stock Exchange or BSE.
The shareholders would decide on the issue of allotting equity shares of Rs10 each for cash at a premium of Rs146.96 per share to TMI India, the wholly-owned subsidiary of TMI Mauritius Ltd, on preferential basis, it said. TM International would pick up less than 15% stake in Idea Cellular. On Friday, shares of the company closed at Rs88.35 on the BSE, up 1.32% from the previous close.