We have stalled various projects of national importance on one ground or the other; let us not do the same with Reliance's KG Basin gas.
The Narmada dam assured us of power and water for irrigation of our parched lands. The Tehri project did the same, as did numerous other hydel projects. Indeed, in countries like Canada and the Scandinavian ones, around 90 per cent of the power comes from hydel projects. Yet, a series of litigation as well as agitations, all in the name of protecting the environment, ensured we delayed these projects and, in turn, meant that we had to depend upon more expensive and, ironically, more environmentally-unfriendly thermal power projects. These, and several other such projects, such as a big aluminium one, have been spearheaded by international ‘green’ organisations. The cases have remained in the courts for years, till the Supreme Court set the controversy at rest.
Sadly, we are repeating this behaviour in the case of oil. Huge discoveries of oil and gas have been made in Myanmar and Bangladesh and, it was found, this extended all the way to the Andamans in Indian waters. How important this is can be seen from the fact that, while our dependence on imported oil and gas was just 30 per cent at one time, it is around 75 per cent today. Which is why it is important that a lot more investment is made in exploration and production. For years, this was the exclusive domain of government-owned companies, but once the sector was opened up, there have been many discoveries by private sector players — the biggest, of course, has been Reliance Industries Limited’s (RIL) 80 million metric standard cubic metres per day (mmscmd) of gas in a terrain that is a very tough one, in an area that was prospected and declared dry by a multinational oil giant.
We need to applaud the work done by Reliance Industries and its people, for the work they have done in extremely difficult conditions, in cyclonic seas to provide some relief to India’s energy security. Few other developers have achieved anywhere near the same kind of work, possibly due to the very high costs of drilling and exploration equipment nowadays, or due to the fact that more promising projects are available overseas.
And for this Krishna Godavari Basin gas, the market price could have been a lot higher than what it is at the moment. Instead, the developer and the government benchmarked the price against a lower price — the government then decided that this gas was to be made available to a list of priority sectors first. This would afford them the opportunity to produce power, steel and fertiliser at lower costs and would provide a lot of relief to the exchequer and the economy. The fertiliser and power plants were, till they got the Reliance gas at $4.2 per million metric British thermal units (mmBtu), buying naphtha at $14 for equivalent amounts of gas.
We have to keep in mind as we run to agitate on RIL’s price, that there have been several rounds of the government inviting bidders to participate in the New Exploration Licencing Policy (NELP), but the interest of participating in this highly unpredictable investment is abating — in the last round, no bids were received. I understand there are 170 existing NELP agreements. Can we reopen them at the behest of shareholders and other interest groups as is being demanded in the case of RIL’s KG Basin gas?
I hope that the conspiracy which did not allow hydel or other major projects in India to come up is not allowed to get in the way again. This time, it is not in the form of agitations by the greens, it is being done in a different form. It is being done by raising doubts over what RIL’s production sharing contract (PSC) with the government actually allows, by saying that a family agreement between the two Ambani brothers is more important than the PSC. The idea is to cast a doubt over all PSCs, a move that simply helps those exporting energy to India. How can NELP and the PSC be subservient to a family arrangement?
If it is family arrangements today, it will be some other arrangement the next time around. Environmental and human rights can always be brought in to sabotage other PSC agreements in the future. One of the parties to the agreement has asked for all RIL’s gas contracts to be cancelled, throwing thousands of megawatts of existing generation from existing plants, and also millions of tonnes of cheaper fertiliser production into limbo. All so that the company can be allocated gas at around half the price given to others.
Doesn’t this throw all principles of competition to the winds? And since the price of power is determined through competitive bids (in earlier cases, the cost of fuel was always passed on to customers, never mind what the price of the fuel was), this means the person who gets cheap gas gets windfall profits. And since the government gets a smaller share if the price of RIL gas is dropped by half, this windfall profit will be at the cost of government revenues, the government’s contractual agreements as well as the principles of fair competition.
Exploration and production is a very tricky business, involving huge investments and very high risks of failure, of around 90 per cent or so, I am told. The risk of failure in all such projects has to be borne by the developer. Who will bid for such projects if the NELP and the PSC conditions can be tampered with? It is common knowledge that the fields which are now being offered to bidders are the ones where finding oil/gas is a lot more difficult, risky and expensive. In view of the failure of the last round, we should be debating whether we need to offer improved conditions to attract more developers, not tampering with existing conditions in the name of family agreements that seek to sell gas at a lower price to one company and lower the profits of both the government and the developer.
We need to protect ourselves and realise that our first duty as a country is to secure our energy needs. To do this, we need to strengthen the institutional mechanisms for exploration and production, not mess up existing ones.
source:http://www.business-standard.com/india/storypage.php?autono=363495
Thursday, July 9, 2009
Friday, June 26, 2009
India's richest men join up with Bill Gates for literacy drive in slums
Some of India's richest men have joined forces with Microsoft chairman Bill Gates to launch an ambitious campaign to teach 100 million illiterate Indian slum children to read by the end of 2010.
The task force, which includes British-based billionaires Gopichand Hinduja and L.N Mittal, are expected to lead a fundraising appeal for the campaign at the glitzy Indian Summer Garden Party in Chelsea this weekend.
Its supporters include film director Meera Syal, television comedian Sanjeev Bhaskar, and Gaj Singh, the Maharaja of Jodhpur. Also on board are Indian billionaires Aditya Birla, Keshub Mahindra, Mukesh Ambani, and Dell, the owners of IT giants Google.
Many of them have pledged millions of pounds to the campaign, which is being waged by Pratham, India's largest and most successful charity. The Gates Foundation has donated £9 million, while Google has given a further £2 million.
Their money will fund intensive courses in which the children of poor labourers will be taught how to read and write Hindi for one hour per day for six weeks, by which time they will be able to read stories unaided.
At Kotla Village in East Delhi yesterday, Pratham teacher Manju was reading twelve pre-school children a story to prepare them to learn the Hindi alphabet. Their parents could not afford the books and uniforms they need for government schools, but even if they could, there are simply not enough school places.
Suman Pandey, Pratham's local co-ordinator, said the group was aiming to teach five million children to read in Delhi alone in the next 18 months.
"We have around 42 hours to teach them to read. There's no homework, it's simple rote learning, with 20 children per class," she said.
Since it began its work in 1999, the charity has taught 33 million children basic literacy, several of whom have gone on to university and become community teachers themselves.
Gopichand Hinduja, who is leading the fund-raising appeal, last night told The Daily Telegraph that he hoped the campaign would take poor Indians from the slums and develop them into leaders.
"Indians are all over the world in important positions and it's because of education," he said.
source:http://www.telegraph.co.uk/news/worldnews/asia/india/5637565/Indias-richest-men-join-up-with-Bill-Gates-for-literacy-drive-in-slums.html
The task force, which includes British-based billionaires Gopichand Hinduja and L.N Mittal, are expected to lead a fundraising appeal for the campaign at the glitzy Indian Summer Garden Party in Chelsea this weekend.
Its supporters include film director Meera Syal, television comedian Sanjeev Bhaskar, and Gaj Singh, the Maharaja of Jodhpur. Also on board are Indian billionaires Aditya Birla, Keshub Mahindra, Mukesh Ambani, and Dell, the owners of IT giants Google.
Many of them have pledged millions of pounds to the campaign, which is being waged by Pratham, India's largest and most successful charity. The Gates Foundation has donated £9 million, while Google has given a further £2 million.
Their money will fund intensive courses in which the children of poor labourers will be taught how to read and write Hindi for one hour per day for six weeks, by which time they will be able to read stories unaided.
At Kotla Village in East Delhi yesterday, Pratham teacher Manju was reading twelve pre-school children a story to prepare them to learn the Hindi alphabet. Their parents could not afford the books and uniforms they need for government schools, but even if they could, there are simply not enough school places.
Suman Pandey, Pratham's local co-ordinator, said the group was aiming to teach five million children to read in Delhi alone in the next 18 months.
"We have around 42 hours to teach them to read. There's no homework, it's simple rote learning, with 20 children per class," she said.
Since it began its work in 1999, the charity has taught 33 million children basic literacy, several of whom have gone on to university and become community teachers themselves.
Gopichand Hinduja, who is leading the fund-raising appeal, last night told The Daily Telegraph that he hoped the campaign would take poor Indians from the slums and develop them into leaders.
"Indians are all over the world in important positions and it's because of education," he said.
source:http://www.telegraph.co.uk/news/worldnews/asia/india/5637565/Indias-richest-men-join-up-with-Bill-Gates-for-literacy-drive-in-slums.html
Thursday, June 25, 2009
Tata Power to stop 500 MW supply to Rel Infra after March 2010
Reliance Infra, under flak after it jacked up electricity charges, received yet another setback today with Tata Power deciding to stop
supply of 500 MW of power to it beyond March 31, 2010.
Tata Power said that it was stopping power supply after March 2010 as Reliance Infra has not entered into any power purchase agreement (PPA) with it.
Currently, Tata Power is supplying power of up to 500 MW to Reliance Infra despite there being no PPA between them.
Tata Power has already communicated to Reliance Infra asking it to make alternative arrangements for power beyond March 31, 2010, a company official told reporters here.
Currently, Tata Power is continuing to supply power to the Anil Ambani-controlled company so that no inconvenience is caused to the citizens of Mumbai, the official said.
Historically, Tata Power has been supplying power to erstwhile BSES (now run by Reliance Infra).
After the Electricity Act came into being in 2003, Tata Power initially pleaded with Reliance Infra to enter into a PPA and now that it has not entered, Tata Power was not interested.
Tata Power was under no obligation to supply power to any entity without a PPA, he added.
source: http://economictimes.indiatimes.com/News/News-By-Industry/Energy/Power/Tata-Power-to-stop-500-MW-supply-to-Rel-Infra-after-March-2010/articleshow/4703053.cms
supply of 500 MW of power to it beyond March 31, 2010.
Tata Power said that it was stopping power supply after March 2010 as Reliance Infra has not entered into any power purchase agreement (PPA) with it.
Currently, Tata Power is supplying power of up to 500 MW to Reliance Infra despite there being no PPA between them.
Tata Power has already communicated to Reliance Infra asking it to make alternative arrangements for power beyond March 31, 2010, a company official told reporters here.
Currently, Tata Power is continuing to supply power to the Anil Ambani-controlled company so that no inconvenience is caused to the citizens of Mumbai, the official said.
Historically, Tata Power has been supplying power to erstwhile BSES (now run by Reliance Infra).
After the Electricity Act came into being in 2003, Tata Power initially pleaded with Reliance Infra to enter into a PPA and now that it has not entered, Tata Power was not interested.
Tata Power was under no obligation to supply power to any entity without a PPA, he added.
source: http://economictimes.indiatimes.com/News/News-By-Industry/Energy/Power/Tata-Power-to-stop-500-MW-supply-to-Rel-Infra-after-March-2010/articleshow/4703053.cms
Wednesday, June 10, 2009
Reliance increases LPG supply to oil companies
Reliance Industries Ltd (RIL) has increased LPG supplies to Indian Oil, Bharat Petroleum and Hindustan Petroleum from its twin refineries at Jamnagar, forcing state-run firms to sell cooking fuel cargoes that they had contracted from overseas suppliers. RIL’s production has to be necessarily sold to state-run firms and is not allowed to export LPG.
At the beginning of 2009 calendar year, RIL had indicated availability of 2.7 million tonnes of LPG from its Jamnagar refineries, but in May the company indicated that an additional 700,000 tonnes was available, a government official said.
“The increase in LPG availability forced cancellation or re-export of planned imports,” he said. “Till now, 200,000 to 300,000 tonnes of contracted LPG has either been re-exported or cancelled. RIL is helping dispose of the contracted cargoes.”
India’s total LPG requirement is around 13 million tonnes but state-run refiners do not produce adequate quantities to meet this demand. RIL supplies 2.7 million and the balance is imported.
RIL spokesperson could not be reached for comments.
The official said RIL had last year told the petroleum ministry and the three fuel retailers that it would cut LPG supplies by up to 1 million tonne to 1.7 million tonne from March 2009. It wanted to crack LPG to produce gasoline (petrol) for export to the US and Europe. Accordingly, the oil firms contracted term supplies of LPG from companies like Saudi Aramco.
But the economic downturn and slowdown in fuel demand in the US and Europe led to reversal of plans to produce more gasoline and instead RIL restored the original LPG production.
The official said RIL’s second refinery at Jamnagar had added to the LPG production and the company had indicated availability of around 3,80,000 tonnes a month of the fuel from June to August.
“The PSUs had to cancel or re-export their contracted LPG cargoes as RIL is not allowed to export the cooking fuel and all of the quantity they produce has to be necessarily sold to the state firms,” the official said.
Reliance Petroleum, a subsidiary of RIL, commissioned its new 580,000 barrels per day refinery in December, adjacent to the parent company’s 660,000 plant, making it the world’s biggest refining complex.
RIL had at the beginning of 2009 said it would supply 2.693 million tonnes of LPG to state refiners, but shortly thereafter raised the volumes to 2.965 milllion tonnes, including supplies from the new refinery. It plans to build a 85,000 bpd alkylation unit that will process butane to produce alkylates with a high octane number. That should enable the firm to produce superior quality gasoline to tap US and European markets.
source:http://www.business-standard.com/india/news/reliance-increases-lpg-supply-to-oil-companies/360732/
At the beginning of 2009 calendar year, RIL had indicated availability of 2.7 million tonnes of LPG from its Jamnagar refineries, but in May the company indicated that an additional 700,000 tonnes was available, a government official said.
“The increase in LPG availability forced cancellation or re-export of planned imports,” he said. “Till now, 200,000 to 300,000 tonnes of contracted LPG has either been re-exported or cancelled. RIL is helping dispose of the contracted cargoes.”
India’s total LPG requirement is around 13 million tonnes but state-run refiners do not produce adequate quantities to meet this demand. RIL supplies 2.7 million and the balance is imported.
RIL spokesperson could not be reached for comments.
The official said RIL had last year told the petroleum ministry and the three fuel retailers that it would cut LPG supplies by up to 1 million tonne to 1.7 million tonne from March 2009. It wanted to crack LPG to produce gasoline (petrol) for export to the US and Europe. Accordingly, the oil firms contracted term supplies of LPG from companies like Saudi Aramco.
But the economic downturn and slowdown in fuel demand in the US and Europe led to reversal of plans to produce more gasoline and instead RIL restored the original LPG production.
The official said RIL’s second refinery at Jamnagar had added to the LPG production and the company had indicated availability of around 3,80,000 tonnes a month of the fuel from June to August.
“The PSUs had to cancel or re-export their contracted LPG cargoes as RIL is not allowed to export the cooking fuel and all of the quantity they produce has to be necessarily sold to the state firms,” the official said.
Reliance Petroleum, a subsidiary of RIL, commissioned its new 580,000 barrels per day refinery in December, adjacent to the parent company’s 660,000 plant, making it the world’s biggest refining complex.
RIL had at the beginning of 2009 said it would supply 2.693 million tonnes of LPG to state refiners, but shortly thereafter raised the volumes to 2.965 milllion tonnes, including supplies from the new refinery. It plans to build a 85,000 bpd alkylation unit that will process butane to produce alkylates with a high octane number. That should enable the firm to produce superior quality gasoline to tap US and European markets.
source:http://www.business-standard.com/india/news/reliance-increases-lpg-supply-to-oil-companies/360732/
Monday, June 8, 2009
Shiv Sena workers protest Reliance power tariff hike
Police today resorted to baton charge to disperse the Shiv Sena workers who disrupted traffic on the Western Express Highway protesting hike in electricity charges by Anil Ambani-promoted Reliance Energy Ltd (REL) in suburban Santacruz here.
Sena’s agitation against the tariff hike of REL turned violent after its workers pelted stone at REL’s headquarters on the Andheri-Kurla road and also tried to set a police vehicle on fire.
REL, which distributes power to around 2.6 million consumers in city’s western suburbs, has asked for an average tariff hike of 5 per cent across all the categories of consumers from power regulator Maharashtra Electricity Regulatory Commission (MERC).
According to Jitendra Janawade, a local Sena leader, the agitation was not just against the proposed tariff hike. Recently REL replaced old meters with the Chinese-made ones which has put additional burden on the consumers who have started receiving 30 per cent higher bills. “And once your bill increases, the company also asks for additional security deposit which is a double whammy for the common man,” he said.
Janawade, however, held the police responsible for the agitation turning violent, saying as the delegation of senior leaders was inside REL’s premises discussing the grievances of consumers, with senior company officials, police resorted to baton charge on the peaceful demonstrators. This angered the Shiv Sainiks and common people, who had joined the agitation, and some incident of stone pelting took place.
Sena leaders also raised the issue in the state Assembly and demanded immediate suspension of the police officials who ordered the baton charge.
Meanwhile, a senior REL official said “while we have proposed only an average 5 per cent hike, Brihanmumbai Electric Supply and Transport (BEST), which is controlled by Sena and distributes power in the island city, has asked for a tariff hike of 52 per cent”. “It is ironical that activists of the same party are holding agitation against us,” he said.
source:http://www.business-standard.com/india/news/shiv-sena-workers-protest-reliance-power-tariff-hike/360503/
Sena’s agitation against the tariff hike of REL turned violent after its workers pelted stone at REL’s headquarters on the Andheri-Kurla road and also tried to set a police vehicle on fire.
REL, which distributes power to around 2.6 million consumers in city’s western suburbs, has asked for an average tariff hike of 5 per cent across all the categories of consumers from power regulator Maharashtra Electricity Regulatory Commission (MERC).
According to Jitendra Janawade, a local Sena leader, the agitation was not just against the proposed tariff hike. Recently REL replaced old meters with the Chinese-made ones which has put additional burden on the consumers who have started receiving 30 per cent higher bills. “And once your bill increases, the company also asks for additional security deposit which is a double whammy for the common man,” he said.
Janawade, however, held the police responsible for the agitation turning violent, saying as the delegation of senior leaders was inside REL’s premises discussing the grievances of consumers, with senior company officials, police resorted to baton charge on the peaceful demonstrators. This angered the Shiv Sainiks and common people, who had joined the agitation, and some incident of stone pelting took place.
Sena leaders also raised the issue in the state Assembly and demanded immediate suspension of the police officials who ordered the baton charge.
Meanwhile, a senior REL official said “while we have proposed only an average 5 per cent hike, Brihanmumbai Electric Supply and Transport (BEST), which is controlled by Sena and distributes power in the island city, has asked for a tariff hike of 52 per cent”. “It is ironical that activists of the same party are holding agitation against us,” he said.
source:http://www.business-standard.com/india/news/shiv-sena-workers-protest-reliance-power-tariff-hike/360503/
Sunday, June 7, 2009
Telecom firm to pay for net goof
Finding Reliance Communication deficient in services, UT consumer forum directed it to pay Rs 10,000 as compensation for harassment
along with Rs 2,500 as litigation costs to Tejbir Kaur of Sector 46. The forum also added that Reliance was duty bound to adjust Rs 9,345 and Rs 330 received by it.
According to the complaint, Kaur had purchased internet connection for a year from Reliance for Rs 9,375, but after two months she allegedly found out that hers was an old connection because of which it terminated. She was then reportedly given a new number with the assurance that the amount already paid by her would be transferred into the new account. She, however, alleged that it was not done, rather she received legal notices for non-payment of bills. She took up the matter with concerned officials but when her requests fell on deaf ears, Kaur moved a complaint under Consumer Protection Act. Denying allegations, Reliance in its reply stated that Kaur did not make any payment besides that for the ‘get started kit’. It added that it did not have any policy of adjusting the amount of one connection against any other.
After going through documents placed before it, the forum, headed by Jagroop Singh Mahal, said that the telecommunication company did not produce any evidence to suggest that the receipt (of Rs 9,375) with Kaur was issued to some other person and not her, suggesting the one produced by her as fake. “An adverse inference should be drawn against the company for not producing relevant documents
as evidence,” the forum held.
source: http://timesofindia.indiatimes.com/Chandigarh/Telecom-firm-to-pay-for-net-goof/articleshow/4618435.cms
along with Rs 2,500 as litigation costs to Tejbir Kaur of Sector 46. The forum also added that Reliance was duty bound to adjust Rs 9,345 and Rs 330 received by it.
According to the complaint, Kaur had purchased internet connection for a year from Reliance for Rs 9,375, but after two months she allegedly found out that hers was an old connection because of which it terminated. She was then reportedly given a new number with the assurance that the amount already paid by her would be transferred into the new account. She, however, alleged that it was not done, rather she received legal notices for non-payment of bills. She took up the matter with concerned officials but when her requests fell on deaf ears, Kaur moved a complaint under Consumer Protection Act. Denying allegations, Reliance in its reply stated that Kaur did not make any payment besides that for the ‘get started kit’. It added that it did not have any policy of adjusting the amount of one connection against any other.
After going through documents placed before it, the forum, headed by Jagroop Singh Mahal, said that the telecommunication company did not produce any evidence to suggest that the receipt (of Rs 9,375) with Kaur was issued to some other person and not her, suggesting the one produced by her as fake. “An adverse inference should be drawn against the company for not producing relevant documents
as evidence,” the forum held.
source: http://timesofindia.indiatimes.com/Chandigarh/Telecom-firm-to-pay-for-net-goof/articleshow/4618435.cms
Wednesday, June 3, 2009
RCOM may show loss of Rs 2k cr on AS-11 norms
Reliance Communications would have reported a Rs 2,255-crore loss for the fiscal year that ended in March, had it accounted for foreign
exchange differences as per Accounting Standard 11. The telecom firm which opted to comply with Part I of Schedule VI of the Companies Act, reported a Rs 5,908-crore profit, according to a report prepared by the company’s auditors, BSR.
According to the review report which, as per norms, was sent to RCOM’s board and to exchanges, BSR said: “Had the company accounted for the relevant foreign exchange differences, in accordance with the said standard (AS-11), the profit for the quarter would be lower by Rs 809 crore and profit for the year would change to a loss of Rs 2,255 crore.”
BSR is the Indian affiliate of the global accounting firm KPMG. RCOM capitalised the forex differences on amounts of liabilities and borrowings related to acquisition of fixed assets acquired abroad, in accordance with the Companies Act.
When contacted, a RCOM spokesman said: “The statement of accounts are in full compliance with the applicable provisions of the Companies Act of 1956. The same has already been detailed in the notes to the accounts, while declaring the annual results over a month back, on April 30, 2009”.
This is a practice that is commonly adopted by most Indian companies. In its report, BSR also said: “Nothing has come to our attention that causes us to believe that the accompanying statement of unaudited financial results, prepared in accordance with accounting standards, has not disclosed the information required to be disclosed.” According to auditors, companies typically adopt the Schedule VI, under the Companies Act, when they acquire fixed assets.
Under AS-11, losses are accounted with the profit and loss account, instead of being capitalised, which implies accounting with the balance sheet.
RCOM said it is currently pursuing “aggressive capex plans which include significant expansion of nation-wide wireless network. The company has funded these initiatives primarily by long-term borrowings in foreign currency and foreign currency convertible bonds.”
RCOM also said that “in compliance with the Schedule VI of the Companies Act, 1956 and on the basis of legal advice received by the company, changes to the amount of liability and borrowings related to the acquisition of fixed assets consequent upon short-term fluctuations in foreign exchange rates upto March 30, 2009, are adjusted in the carrying cost of fixed assets.”
source:http://economictimes.indiatimes.com/News/News-By-Company/RCOM-may-show-loss-of-Rs-2k-cr-on-AS-11-norms/articleshow/4610784.cms
exchange differences as per Accounting Standard 11. The telecom firm which opted to comply with Part I of Schedule VI of the Companies Act, reported a Rs 5,908-crore profit, according to a report prepared by the company’s auditors, BSR.
According to the review report which, as per norms, was sent to RCOM’s board and to exchanges, BSR said: “Had the company accounted for the relevant foreign exchange differences, in accordance with the said standard (AS-11), the profit for the quarter would be lower by Rs 809 crore and profit for the year would change to a loss of Rs 2,255 crore.”
BSR is the Indian affiliate of the global accounting firm KPMG. RCOM capitalised the forex differences on amounts of liabilities and borrowings related to acquisition of fixed assets acquired abroad, in accordance with the Companies Act.
When contacted, a RCOM spokesman said: “The statement of accounts are in full compliance with the applicable provisions of the Companies Act of 1956. The same has already been detailed in the notes to the accounts, while declaring the annual results over a month back, on April 30, 2009”.
This is a practice that is commonly adopted by most Indian companies. In its report, BSR also said: “Nothing has come to our attention that causes us to believe that the accompanying statement of unaudited financial results, prepared in accordance with accounting standards, has not disclosed the information required to be disclosed.” According to auditors, companies typically adopt the Schedule VI, under the Companies Act, when they acquire fixed assets.
Under AS-11, losses are accounted with the profit and loss account, instead of being capitalised, which implies accounting with the balance sheet.
RCOM said it is currently pursuing “aggressive capex plans which include significant expansion of nation-wide wireless network. The company has funded these initiatives primarily by long-term borrowings in foreign currency and foreign currency convertible bonds.”
RCOM also said that “in compliance with the Schedule VI of the Companies Act, 1956 and on the basis of legal advice received by the company, changes to the amount of liability and borrowings related to the acquisition of fixed assets consequent upon short-term fluctuations in foreign exchange rates upto March 30, 2009, are adjusted in the carrying cost of fixed assets.”
source:http://economictimes.indiatimes.com/News/News-By-Company/RCOM-may-show-loss-of-Rs-2k-cr-on-AS-11-norms/articleshow/4610784.cms
Tuesday, June 2, 2009
Crime Branch seizes 200 forms
Crime Branch sleuths today conducted surprise checks in offices of various cellphone companies and seized 200 customer application forms belonging to Reliance Telecom, Aircel and Airtel.
SSP, Crime, JP Singh said as part of investigations we confiscated 200 customer application forms from the offices of Reliance Telecom, Aircel and Airtel to see whether the SIM cards issued against these forms reached the correct and genuine subscribers or landed in the hands of unscrupulous elements.
“We know that SIM cards of various companies were being issued without proper verification and in some cases by forging documents,” he said. However, no arrests were made today, he added. The Crime Branch had already arrested three dealers yesterday.
Source:http://www.tribuneindia.com/2009/20090602/j&k.htm
SSP, Crime, JP Singh said as part of investigations we confiscated 200 customer application forms from the offices of Reliance Telecom, Aircel and Airtel to see whether the SIM cards issued against these forms reached the correct and genuine subscribers or landed in the hands of unscrupulous elements.
“We know that SIM cards of various companies were being issued without proper verification and in some cases by forging documents,” he said. However, no arrests were made today, he added. The Crime Branch had already arrested three dealers yesterday.
Source:http://www.tribuneindia.com/2009/20090602/j&k.htm
Thursday, May 14, 2009
Exit Polls: A non-event for market!
The gust of wind pumped by exit poll results failed to move the markets. Market participants are not taking any positions based on exit
Poll results. The wise market men remain on the tenterhooks as to the outcome of election result on May 16. However, the market is expected to see a buying spree on the back of a probable market fall, consequent to election results.
Exit polls conducted by various agencies forecast a highly fractured mandate wherein Left parties fail to emerge as a king maker with a loss of tentative 20-25 seats as compared to 2004 election results. Though waning of Left support base is normally cheered at the street, which refuse to get swayed by exit poll results and does not take a call till the final results.
“Although exit poll results are in the lines with market expectations, it is too premature to take a call from exit polls, which most of the time proves wrong,” said Krish Shanbhag, head - research, Antique Broking.
Exit Poll Results:
| | CNN-IBN | Times Now | Star News | UTVi | Headlines Today |
| UPA | 185-205 | 198 | 202 | 195 | 191 |
| NDA | 165-185 | 183 | 193 | 189 | 180 |
| Third Front | 110-130 | 112 | 101 | 113 | 134 |
| Others | 23-83 | 50 | 47 | 46 | 38 |
“Moreover, market indices are expected to correct by 10-15 following election results. FIIs are just waiting for that opportunity to take greater exposure in Indian equities as the worst is over.”
Going through the annals of history, one can see that the track record for exit polls is dismal. In 2004, NDTV predicted 165-185 seats against UPA and 260-280 seats against NDA. Results showed, UPA got 218 and NDA - 181.
Said Vinod Sharma, head - research, Anagram Stock Broking, “If you believe like many on the street, that the polls do not tell you the right story, back your conviction by buying calls when the markets fall. At the end of the day, irrespective of whosoever comes, when the international rally seems to be coming to an end, there is little motivation to hang on to stocks.”
Wednesday, May 13, 2009
Myths about Mukesh Ambani's house Antilia
The absurd thing about the house Antilia is it has a staff of 600 for maintenancework. That gives a ratio of 1:100 for people living in the house and those who are paid to take care of it. The six lucky (?) ones are the man himself, his wife, his 3 children and his mother Kokilaben. The family will be movingin from their old home ‘Sea Wind’ which was a 14 floor building at Cuffe Parade.
In fairness, Mukesh Ambani bought the property in 2002. So he has not spent anywhere close to the $1 billion people are now valuing the property at. And it is not just him, plenty of other rich tycoons have indulgedin their residences. Two people who immediately come to mind are Mittal & Gates.
Source:http://aavaas.com/2007/11/04/mukesh-ambanis-new-house-anthill/
In fairness, Mukesh Ambani bought the property in 2002. So he has not spent anywhere close to the $1 billion people are now valuing the property at. And it is not just him, plenty of other rich tycoons have indulgedin their residences. Two people who immediately come to mind are Mittal & Gates.
Source:http://aavaas.com/2007/11/04/mukesh-ambanis-new-house-anthill/
Monday, May 11, 2009
Tatas reputed than Google, MS: survey
They may not be as big as their global peers in terms of revenue and profits, but Indian companies are top of the lot in terms of their reputation, as per a study that has ranked Tatas as more reputed than the likes of Google, Microsoft, Coca-Cola, GE and Walt Disney.
Noting that the world looks to “corporate India to find trust, admiration and good feeling,” the US-based brand and reputation management consulting firm Reputation Institute has named five Indian firms among the top-50 in its annual list of the world’s most reputed companies.
While the global list has been topped by Italy’s chocolate maker Ferrero, Sweden’s retailer IKEA, and Johnson &Johnson in the US, the Tata group has been ranked 11th.
Among Indian companies, Tatas are followed by SBI (29), Infosys (39), Larsen & Toubro (47) and Maruti Suzuki (49th).
There are 22 other Indian companies on the list of 600 largest companies, ranked in terms of their reputation.
“Corporate India has the best reputed companies. Of the 27 Indian companies ranked among the 600 largest in the world, almost 90% received scores above the global mean, withfive ranking among the Top 50,” the Reputation Institute saidin its annual study for 2009.
Only the US had more number of companies in the top-50 (17 companies), the report noted. In terms of overall presence also, the US had five times the number of companies in the list than India.
The list is made on the basis of admiration, trust and good feeling that consumers have towards a company.
Other Indian companies on the list include—Hindustan Unilever (70th rank), ITC (96), Canara Bank (103), HPCL (112), Indian Oil (113), Wipro (117), Reliance Group (133), Mahindra & Mahindra (138), Bharti Airtel (164), Bank of Baroda (175), BPCL (176) and Punjab National Bank (178).
The report did not clarify whether the Reliance group means the Mukesh Ambani Group or Anil Ambani group of companies. The report revealed that corporate trust is higher in the emerging markets, while companies in industrialised markets are trusted less.
“Proportionally, the largest companies in Brazil, Russia, India and China (Bric) enjoy a stronger emotional connection with consumers than the largest companies in the industrialised world,” it added.
Out of the 289 companies from the US, Japan, the UK, France and Germany, 45% have reputations below the global average, while only 34% of the 142 companies from Bric nations have below-average reputations, with Chinese companies dragging down the...
source: http://www.financialexpress.com/news/Tatas-reputed-than-Google-MS-survey/457115/
Thursday, May 7, 2009
Hearing on Anil Ambani's yacht case today
The Bombay High Court on Wednesday adjourned the hearing of petition challenging seizure of a yacht belonging to Ammolite Holdings, an associate company of Anil Dhirubhai Ambani Group.
ADAG's lawyer, senior advocate Aspi Chenoy, sought time for filing reply to customs' affidavit. The yacht, reportedly a gift by ADAG head Anil Ambani to his wife, was purchased by Ammolite Holdings, an associate of ADAG, last October. It has been chartered by Reliance Transport and Travels Ltd, another ADAG company.
In February, customs seized it for alleged duty evasion.
ADAG claims that the Yacht, named `Tian', was not imported into India, but it is a ship with foreign flag which can sail in international as well as Indian waters, so there was no question of paying any import duty.
Division bench of Justices F I Rebello and J H Bhatia will hear the ADAG lawyer on May 8.
source:http://www.hindustantimes.com/
ADAG's lawyer, senior advocate Aspi Chenoy, sought time for filing reply to customs' affidavit. The yacht, reportedly a gift by ADAG head Anil Ambani to his wife, was purchased by Ammolite Holdings, an associate of ADAG, last October. It has been chartered by Reliance Transport and Travels Ltd, another ADAG company.
In February, customs seized it for alleged duty evasion.
ADAG claims that the Yacht, named `Tian', was not imported into India, but it is a ship with foreign flag which can sail in international as well as Indian waters, so there was no question of paying any import duty.
Division bench of Justices F I Rebello and J H Bhatia will hear the ADAG lawyer on May 8.
source:http://www.hindustantimes.com/
Wednesday, May 6, 2009
BSE Sensex extends rise, up 50 pct from 2009 low
The BSE Sensex rose more than 6 percent on Monday afternoon, taking gains to over 50 percent from a 2009 low in early March, as strong risk appetite on a brighter outlook for the global economy lifted markets across Asia.
At 1:38 p.m., the 30-share BSE index was up 6 percent at 12,086.97 points, with all stocks gaining.
The 50-share NSE index was up 5.1 percent at 3,652.70.
source:http://in.reuters.com/article/businessNews/idINIndia-39396420090504
At 1:38 p.m., the 30-share BSE index was up 6 percent at 12,086.97 points, with all stocks gaining.
The 50-share NSE index was up 5.1 percent at 3,652.70.
source:http://in.reuters.com/article/businessNews/idINIndia-39396420090504
Friday, May 1, 2009
Powerless in Delhi: At home, on roads too
If you live in south, central or east Delhi, soaring mercury is not going to be the only worry for you this summer. With BSES, the
discom that serves these areas, failing to meet the rising power demand, people living in these parts of the capital seemingly have no option but to sweat it out through seven to eight hour long power outages everyday.
State power department sources told TOI the situation was not in their control and loadshedding had to be carried out to protect the national grid. "There is little loadshedding in north Delhi colonies as NDPL have arranged for sufficient power to meet summer demand. On the other hand, BSES has not applied for open access on time nor has been proactive in signing power exchange agreements. Most of BSES's tie ups have also not come through on time, and now its customers are suffering long power cuts,'' said a senior official.
Though, sources said, as the poll day approaches there could be some respite in short run. State power department officials claimed to have tied up for 579MW extra for the capital that would be made available from May 1. "The Central government has allocated 302MW power from Central sector generating stations. Besides, 277MW power has been arranged by discoms through banking arrangement with Maharashtra (63MW), Himachal Pradesh (100MW), Madhya Pradesh (45MW) and Rajasthan (69MW). From Friday, the situation will improve,'' said a spokesperson from Delhi Transco.
BSES, meanwhile, claimed it had made adequate tie-ups for the summer. It blamed "Grid situation'' for the power outages and said that it could not be hold responsible for failing to keep up with the rising power demand. "During the last few days, Delhiites have been facing some inconvenience on account of intermittent and unplanned outages. It is important to mention that these outages took place despite BSES making more than adequate arrangements to meet the power demand for the summer. Outages are taking place due to low frequency, massive overdrawal and technical faults with plants,'' said a BSES spokesperson.
Power demand has been rising sharply in Delhi and the peak load on Wednesday, 3681 MW, was the highest for this season. Experts expect demand to reach around 4,500 MW this summer. They said the only way Delhi could avoid outages was to achieve self-sufficiency in power generation. The state government has promised to get it by 2010 with three big power projects on their way in time for the Commonwealth Games.
In colonies fed by BSES Rajdhani and BSES Yamuna, the shortfall in demand was around 300MW. South Extension, Jungpura, Shivalik, Patparganj, Mayur Vihar, Vasundhara Enclave, RK Puram reported at least six to eight hour long outages. "When there was no power for over two hours, I called up discom helpline but was put on hold for over 20 minutes. It was ridiculous. We feel so helpless every summer and nothing ever changes,'' said an angry resident in Mayur Vihar.
source: http://timesofindia.indiatimes.com/Delhi/Powerless-in-Delhi-At-home-on-roads-too/articleshow/4469132.cms
discom that serves these areas, failing to meet the rising power demand, people living in these parts of the capital seemingly have no option but to sweat it out through seven to eight hour long power outages everyday.
State power department sources told TOI the situation was not in their control and loadshedding had to be carried out to protect the national grid. "There is little loadshedding in north Delhi colonies as NDPL have arranged for sufficient power to meet summer demand. On the other hand, BSES has not applied for open access on time nor has been proactive in signing power exchange agreements. Most of BSES's tie ups have also not come through on time, and now its customers are suffering long power cuts,'' said a senior official.
Though, sources said, as the poll day approaches there could be some respite in short run. State power department officials claimed to have tied up for 579MW extra for the capital that would be made available from May 1. "The Central government has allocated 302MW power from Central sector generating stations. Besides, 277MW power has been arranged by discoms through banking arrangement with Maharashtra (63MW), Himachal Pradesh (100MW), Madhya Pradesh (45MW) and Rajasthan (69MW). From Friday, the situation will improve,'' said a spokesperson from Delhi Transco.
BSES, meanwhile, claimed it had made adequate tie-ups for the summer. It blamed "Grid situation'' for the power outages and said that it could not be hold responsible for failing to keep up with the rising power demand. "During the last few days, Delhiites have been facing some inconvenience on account of intermittent and unplanned outages. It is important to mention that these outages took place despite BSES making more than adequate arrangements to meet the power demand for the summer. Outages are taking place due to low frequency, massive overdrawal and technical faults with plants,'' said a BSES spokesperson.
Power demand has been rising sharply in Delhi and the peak load on Wednesday, 3681 MW, was the highest for this season. Experts expect demand to reach around 4,500 MW this summer. They said the only way Delhi could avoid outages was to achieve self-sufficiency in power generation. The state government has promised to get it by 2010 with three big power projects on their way in time for the Commonwealth Games.
In colonies fed by BSES Rajdhani and BSES Yamuna, the shortfall in demand was around 300MW. South Extension, Jungpura, Shivalik, Patparganj, Mayur Vihar, Vasundhara Enclave, RK Puram reported at least six to eight hour long outages. "When there was no power for over two hours, I called up discom helpline but was put on hold for over 20 minutes. It was ridiculous. We feel so helpless every summer and nothing ever changes,'' said an angry resident in Mayur Vihar.
source: http://timesofindia.indiatimes.com/Delhi/Powerless-in-Delhi-At-home-on-roads-too/articleshow/4469132.cms
Tuesday, April 28, 2009
IPL Teams: Mukesh gets Mumbai, Kolkata to SRK
The high-profile Indian Premier League (IPL) on Thursday received an overwhelming response with some of India’s top industrialists like Mukesh Ambani and Vijay Mallya and film stars Shah Rukh Khan and Preity Zinta winning bids to own teams in the Twenty20 venture.
After prolonged suspense, BCCI Vice President and Chairman of the IPL Governing Council Lalit Modi disclosed the names of the winning bidders, who shelled out staggering amounts to be owner of the city-based teams.
Reliance Industries Chief Mukesh Ambani pipped Vijay Mallya to win the bid for the Mumbai team for USD 111.9 million.
The liquor baron, however, won the bid for the Bangalore team for USD 111.6 million.
Actor Shah Rukh Khan, joining hands with Juhi Chawla and Jay Mehta, won the bid for the Kolkata team for USD 75.09 million.
Fellow actor Preity Zinta and her boy friend Ness Wadia won the bid for the Mohali team for USD 76 million.
Among others, GMR Holdings won the bid for the Delhi team (USD 84 million), India Cements bagged the Chennai team (USD 91 million), Deccan Chronicle bid successfully for the Hyderabad (USD 107.01 million) outfit and Emerging Media won the bid for the Jaipur team for USD 67 million.
The bids of the ICICI, Sahara and Futures Group were disqualified, Modi said.
India Cements bagged the Chennai team (USD 91 million), Deccan Chronicle bid successfully for the Hyderabad (USD 107.01 million) outfit and Emerging Media won the bid for the Jaipur team for USD 67 million.
The bids of the ICICI, Sahara and Futures Group were disqualified, Modi said.
“We can say that all the hard work fructified and the IPL is here to stay,” Modi said.
Asked if Shah Rukh was bidding just to use cricket as a means to promote his films, Modi said, “Shah Rukh loves cricket and that’s why he invested his money. It has got nothing to do with film promotion. We have heard similar complaint in the past but the board never endorsed those views”.
He also dismissed suggestions that there was a conflict of interests in Indian Cement, which has BCCI treasurer N Srinivasan as a shareholder, becoming a team owner.
“Mr Srinivasan is just a stakeholder there and he is not the owner. So there is no such conflicts of interests,” he said.
Modi admitted some of the contracted international players would skip the twenty20 tournament which begins on April 18 owing to national commitments but said the pool was big enough.
“A team needs only four players from abroad and we already have a huge number of them contracted with us. You will have enough of them from the day one,” he said.
In all, 59 matches would be played over 44 days with ICC umpires officiating the games, which would be broadcast live on SET Max, Modi said.
“We already have 80 contracted players and their auction would start soon,” Modi said.
Each franchise would consult with the IPL Governing Council before naming the teams and discussing revenue sharing, he said.
source:http://www.expressindia.com/latest-news/IPL-Teams-Mukesh-gets-Mumbai-Kolkata-to-SRK/265098/
After prolonged suspense, BCCI Vice President and Chairman of the IPL Governing Council Lalit Modi disclosed the names of the winning bidders, who shelled out staggering amounts to be owner of the city-based teams.
Reliance Industries Chief Mukesh Ambani pipped Vijay Mallya to win the bid for the Mumbai team for USD 111.9 million.
The liquor baron, however, won the bid for the Bangalore team for USD 111.6 million.
Actor Shah Rukh Khan, joining hands with Juhi Chawla and Jay Mehta, won the bid for the Kolkata team for USD 75.09 million.
Fellow actor Preity Zinta and her boy friend Ness Wadia won the bid for the Mohali team for USD 76 million.
Among others, GMR Holdings won the bid for the Delhi team (USD 84 million), India Cements bagged the Chennai team (USD 91 million), Deccan Chronicle bid successfully for the Hyderabad (USD 107.01 million) outfit and Emerging Media won the bid for the Jaipur team for USD 67 million.
The bids of the ICICI, Sahara and Futures Group were disqualified, Modi said.
India Cements bagged the Chennai team (USD 91 million), Deccan Chronicle bid successfully for the Hyderabad (USD 107.01 million) outfit and Emerging Media won the bid for the Jaipur team for USD 67 million.
The bids of the ICICI, Sahara and Futures Group were disqualified, Modi said.
“We can say that all the hard work fructified and the IPL is here to stay,” Modi said.
Asked if Shah Rukh was bidding just to use cricket as a means to promote his films, Modi said, “Shah Rukh loves cricket and that’s why he invested his money. It has got nothing to do with film promotion. We have heard similar complaint in the past but the board never endorsed those views”.
He also dismissed suggestions that there was a conflict of interests in Indian Cement, which has BCCI treasurer N Srinivasan as a shareholder, becoming a team owner.
“Mr Srinivasan is just a stakeholder there and he is not the owner. So there is no such conflicts of interests,” he said.
Modi admitted some of the contracted international players would skip the twenty20 tournament which begins on April 18 owing to national commitments but said the pool was big enough.
“A team needs only four players from abroad and we already have a huge number of them contracted with us. You will have enough of them from the day one,” he said.
In all, 59 matches would be played over 44 days with ICC umpires officiating the games, which would be broadcast live on SET Max, Modi said.
“We already have 80 contracted players and their auction would start soon,” Modi said.
Each franchise would consult with the IPL Governing Council before naming the teams and discussing revenue sharing, he said.
source:http://www.expressindia.com/latest-news/IPL-Teams-Mukesh-gets-Mumbai-Kolkata-to-SRK/265098/
Reliance Petroleum posts Rs84 crore profit
Mukesh Ambani-led Reliance Petroleum Ltd (RPL) on Thursday said it has reported a net profit of Rs84 crore and a net turnover of Rs3,678 crore for the quarter ended 31 March 2009.
The company started commercial production from 15 March. Hence, figures for the year-ago period were not available.
The total expenditure during the quarter amounted to Rs3,564 crore, RPL said in a filing to the Bombay Stock Exchange (BSE), adding that “the total capital employed by the company is Rs33,982 crore.”
Shares of the company reacted positively to the news and were trading at Rs109.60, up 2.72% in the late afternoon trade on the BSE.
Last month, the boards of Reliance Industries Ltd (RIL) and RPL had approved the merger of both the entities which created one of the largest petrochemical firms of the world.
“RPL refinery has achieved startup and successful stabilization of its operations within a short period of time. The proposed merger with RIL would lead to a globally competitive and industry leading refining business and create sustainable value for shareholders,” RPL chairman Mukesh Ambani said.
During the quarter, RPL had commissioned a SEZ refinery at Jamnagar with a capacity of processing 3.6 million tonnes of crude.
The company started commercial production from 15 March. Hence, figures for the year-ago period were not available.
The total expenditure during the quarter amounted to Rs3,564 crore, RPL said in a filing to the Bombay Stock Exchange (BSE), adding that “the total capital employed by the company is Rs33,982 crore.”
Shares of the company reacted positively to the news and were trading at Rs109.60, up 2.72% in the late afternoon trade on the BSE.
Last month, the boards of Reliance Industries Ltd (RIL) and RPL had approved the merger of both the entities which created one of the largest petrochemical firms of the world.
“RPL refinery has achieved startup and successful stabilization of its operations within a short period of time. The proposed merger with RIL would lead to a globally competitive and industry leading refining business and create sustainable value for shareholders,” RPL chairman Mukesh Ambani said.
During the quarter, RPL had commissioned a SEZ refinery at Jamnagar with a capacity of processing 3.6 million tonnes of crude.
Wednesday, April 22, 2009
Ambani yacht ‘flounders’ on customs duty
A luxury yacht chartered by a subsidiary of the Reliance-Anil Dhirubhai Ambani Group (R-Adag) that was seized by Indian customs earlier this year will not be released until Rs28 crore customs duty is paid in full and a bank guarantee of an additional Rs15 crore is provided by the firm, a senior customs official said.
The luxury yacht named Tian, purportedly a gift for Tina Ambani from her husband, R-Adag promoter Anil Ambani, was seized in February by the central intelligence unit of the customs department in Mumbai following a probe that began in January. The customs official mentioned earlier, who declined to be identified because the matter has not yet been resolved, said the yacht had been seized “due to non-payment of duty. It was illegally brought to India and was used without paying duty.”
“Till now the department has received a draft of Rs25 crore from a representative of R-Adag,” the same official told Mint. “The investigation is still on and the department will release the yacht once the dues are recovered.” The department has also asked R-Adag to deposit a bank guarantee of Rs15 crore before it releases the yacht. The official said this was routine procedure pending a probe with the bank guarantee serving as collateral for any penalty that could be imposed.
The customs department has alleged that the yacht’s final destination according to its shipment papers was Colombo, Sri Lanka; it was to be unloaded at Mumbai from where it was to sail to Colombo.
According to the department’s investigation, the Tian was purchased in mid-2008 from an Italian yacht maker by Ammolite Holdings Ltd, a Channel Islands-based associate firm of Reliance Capital Ltd and brought to India on 31 October under a charter agreement with Reliance Transport and Travels Pvt. Ltd, an R-Adag company. The Channel Islands are located off the French coast of Normandy.
Reliance Transport and Travels later took permission from port authorities to park the yacht in Mumbai for a few days before it sailed to Colombo. The customs department has alleged that the yacht did not leave for Colombo for over three months and was instead being used in India without paying duty. Duty is usually paid at the destination—in this case, Colombo.
Another customs official familiar with the case and who also did not want to be identified alleged that Tina Ambani had taken the yacht to Goa during New Year celebrations. However, in its reply to the customs department, Reliance Transport and Travels has claimed that the yacht sailed to Goa to test a repaired generator in late December 2008 and returned on 2 January.
In response to Mint queries, an R-Adag spokesperson said: “We have already communicated our stance to the concerned authorities.”
The funds for the charter came from a Singapore-based firm, Gateway Net Trading Pte Ltd. Ammolite Holdings, according to the customs official mentioned in the first instance, is a small firm with “share capital of $100,000 (Rs50.4 lakh today),” while Gateway Net Trading is an associate firm of Reliance Communications Ltd, also an R-Adag company.
In a letter to the customs department dated 18 February 2009, Ammolite Holdings and Reliance Transport and Travels have denied evading customs duty. In the letter, which has been reviewed by Mint, Ammolite Holdings said: “The yacht was duly and validly brought into Indian waters in compliance with all laws and regulations with the permission of the customs department.”
Ammolite Holdings and Reliance Transport and Travels have also said the Rs25 crore paid was a voluntary deposit “to demonstrate bonafides and to avoid any unwarranted or unpleasant consequences”. The two firms have also requested the department to release the yacht and refund the money.
The yacht—a Custom Line 112 Next, 34m flying-bridge fibre glass vessel—has been valued at about Rs100 crore by customs authorities. A July 2008 report in this newspaper had estimated the price of the yacht at Rs200 crore.
source: http://www.livemint.com/2009/04/21234138/Ambani-yacht-8216flounders.html?h=B
The luxury yacht named Tian, purportedly a gift for Tina Ambani from her husband, R-Adag promoter Anil Ambani, was seized in February by the central intelligence unit of the customs department in Mumbai following a probe that began in January. The customs official mentioned earlier, who declined to be identified because the matter has not yet been resolved, said the yacht had been seized “due to non-payment of duty. It was illegally brought to India and was used without paying duty.”
“Till now the department has received a draft of Rs25 crore from a representative of R-Adag,” the same official told Mint. “The investigation is still on and the department will release the yacht once the dues are recovered.” The department has also asked R-Adag to deposit a bank guarantee of Rs15 crore before it releases the yacht. The official said this was routine procedure pending a probe with the bank guarantee serving as collateral for any penalty that could be imposed.
The customs department has alleged that the yacht’s final destination according to its shipment papers was Colombo, Sri Lanka; it was to be unloaded at Mumbai from where it was to sail to Colombo.
According to the department’s investigation, the Tian was purchased in mid-2008 from an Italian yacht maker by Ammolite Holdings Ltd, a Channel Islands-based associate firm of Reliance Capital Ltd and brought to India on 31 October under a charter agreement with Reliance Transport and Travels Pvt. Ltd, an R-Adag company. The Channel Islands are located off the French coast of Normandy.
Reliance Transport and Travels later took permission from port authorities to park the yacht in Mumbai for a few days before it sailed to Colombo. The customs department has alleged that the yacht did not leave for Colombo for over three months and was instead being used in India without paying duty. Duty is usually paid at the destination—in this case, Colombo.
Another customs official familiar with the case and who also did not want to be identified alleged that Tina Ambani had taken the yacht to Goa during New Year celebrations. However, in its reply to the customs department, Reliance Transport and Travels has claimed that the yacht sailed to Goa to test a repaired generator in late December 2008 and returned on 2 January.
In response to Mint queries, an R-Adag spokesperson said: “We have already communicated our stance to the concerned authorities.”
The funds for the charter came from a Singapore-based firm, Gateway Net Trading Pte Ltd. Ammolite Holdings, according to the customs official mentioned in the first instance, is a small firm with “share capital of $100,000 (Rs50.4 lakh today),” while Gateway Net Trading is an associate firm of Reliance Communications Ltd, also an R-Adag company.
In a letter to the customs department dated 18 February 2009, Ammolite Holdings and Reliance Transport and Travels have denied evading customs duty. In the letter, which has been reviewed by Mint, Ammolite Holdings said: “The yacht was duly and validly brought into Indian waters in compliance with all laws and regulations with the permission of the customs department.”
Ammolite Holdings and Reliance Transport and Travels have also said the Rs25 crore paid was a voluntary deposit “to demonstrate bonafides and to avoid any unwarranted or unpleasant consequences”. The two firms have also requested the department to release the yacht and refund the money.
The yacht—a Custom Line 112 Next, 34m flying-bridge fibre glass vessel—has been valued at about Rs100 crore by customs authorities. A July 2008 report in this newspaper had estimated the price of the yacht at Rs200 crore.
source: http://www.livemint.com/2009/04/21234138/Ambani-yacht-8216flounders.html?h=B
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