Current Affairs: Finance & Economy Current Affairs

March 4, 2009 : Indian Young Guns Make world’s first six-core microchip!
India’s brilliant young innovators who are also winners of the latest Nasscom Innovation Awards, Ravishankar (Ravi) Kuppuswamy and a team of professionals have helped the Intel design team develop the world’s first six-core microprocessor. Hailed as the first made-in-India microprocessor, this has been developed by Intel’s design team at Bangalore.
In September 2008, Intel Corporation introduced the new Intel Xeon Processor 7400 Series, formerly code-named ‘Dunnington’. The 7400 Series is the combination of the Penryn microarchitecture and 45nm Hi-k process technology to the Expandable (MP or multi-processor) segment with scaling up to 16 sockets. With up to six processing cores per chip and 16MB of shared cache memory, applications built for virtualised environments and data demanding workloads, such as databases, business intelligence, enterprise resource planning and server consolidation, experience dramatic performance increases of almost 50 per cent in some cases. Intel India Development Center has 2,500 employees from across various groups, but we don’t break down the group numbers. The design and product development took about two years.

March 8 , 2009 : Inflation goes to 30 year Low
Inflation in India drastically fell to a two-decade low of 0.44 per cent in the first week of March as food and fuel items turned cheaper, prompting analysts to say that rate of price rise would soon turn negative. Wholesale price-based inflation declined by 1.99 percentage points from 2.43 per cent during the week ended February 28, fuelling expectations that the Reserve Bank of India would cut interest rates to spur the economic growth.
Inflation fell to a 30-year low of 0.27 per cent during the second week of March even as prices of some essential commodities like cereals and vegetables rose during the period. This will give room to the Reserve Bank of India to take further monetary steps to spur the economy. The index for primary food articles rose by 0.1 per cent as fruit and vegetables, rice, some varieties of pulses, barley, bajra, and maize turned expensive. The food index in the category of manufactured items also rose because maida, sooji, oil cakes, imported edible oil, gur, and cottonseed oil became costlier. Inflation is close to negative territory, something that was witnessed only in the 1977-78.

March 9, 2009 : World’s 10 most admired companies by Fortune Magazine:
Apple is the world’s most admired company, as per the Fortune magazine. Of the 363 companies mentioned in Fortune’s list, 273 are from the United States, 19 are from Japan, and 17 from Germany. Unfortunately, not a single Indian company is on the list. The rankings are based on innovation, people management, use of corporate assets, social responsibility, quality of management, financial soundness long-term investment, quality of products or services and global competitiveness.

March 10, 2009 : India’s 10 most trustworthy companies by Equitymaster
The Tata Group has emerged as the most trustworthy Indian company/business group on financial reporting in a poll conducted among domestic investors. The poll was carried out by equity research firm Equitymaster, in the wake of the accounting fraud at Satyam Computer, to gauge whether there was considerable doubt in the financial statements of Indian companies after the scam at Satyam came to light in January this year.

Other Top Trustworthy Companies are:
2. Infosys
3. HDFC Group
4. Larsen & Toubro
5. Aditya V Birla Group
6. Bharti Airtel
7. Sundaram/TVS Group
8. ICICI Bank
9. Reliance (Mukesh Ambani’s)
10 Reliance (Anil Ambani’s)

March 10, 2009 : The 24 richest Indians in Forbes’ list of world’s richest people.
The world’s richest are getting poorer. Last year there were 1,125 billionaires in the world. This year the number has fallen to 793. When it comes to the India, Reliance Industries chairman Mukesh Ambani and NRI steel baron Lakshmi Mittal lead the dwindling number of Indians in the Forbes’ list of world’s richest people. China has beaten India with a maximum number of billionaires from Asia, it has 28 richest people in the list. Last year India had the largest number of billionaires from Asia in the Forbes list. Many lost their billionaire status as India’s stock market crashed last year. About 29 Indians are out of the billionaires’ list, says Forbes magazine.
1. Mukesh Ambani (Global rank 7 with $19.7 billion)
2. L N Mittal (Global Rank 8 with $19.3 billion. He was the world’s 4th richest person last year)
3 : Anil Ambani (Global Rank 34th with total wealth of $10.1 billion) He was last year’s biggest billionaire gainer and this year’s biggest loser, the Forbes magazine said, adding that his fortune is down $32 billion, as shares in Reliance Communications fell by two-thirds.
4 : Sunil Mittal (Global Rank 59 with $7.7 billion)
5 : Azim Premji (Global Rank 83 with $ 5.7 billion )
6 : Shashi and Ravi Ruia ( Global Rank 86 with $ 5.6 billion )
7 : K P Singh (Global Rank 96 with $ 5 billion)
8 : Kumar Mangalam Birla (Global Rank 124 with $4.2 billion)
9 : Adi Godrej (Global rank 183 with $3.3 bilion)
10 : Dilip Shanghvi (Global Rank 205 with $3 billion)
11 : Savitri Jindal (Global Rank 234 with $2.7 billion )
12 : Malvinder and Shivender Singh ( Global Rank 246 with $2.6 billion )
13 : G M Rao : Global Rank 318 with $ 2.2 billion
14 : Micky Jagtiani : Global Rank 334 with $ 2 billion
15 : Gautam Adani : Global Rank 397 with $ 1.8 billion

March 16, 2009 : LIC Agreement with Punjab National Bank
Life Insurance Corporation (LIC) of India has entered into a strategic agreement with Punjab National Bank (PNB) to enable the bank’s customers to have access to the wide range of products of LIC. The agreement was signed in the presence of LIC Chairman T. S. Vijayan and the bank’s Chairman and Managing Director K. C. Chakrabarty at a function on March 16, 2009. LIC has so far tied up with 31 banks through corporate agency model and with banks through referral model for developing banc assurance.

March 21, 2009 : M& M sign Mou with Bank of Baroda:
Mahindra & Mahindra has signed a memorandum of understanding with Bank of Baroda for vehicle finance. Customers can avail themselves of a loan up to 85 per ent of the on-road price of the vehicle with a tenure of up to five years, says a release.
March 21, 2009 : MOU between Nasscom and ACTI of Chile
Information technology trade bodies of India and Chile, National Association of Software and Service Companies (Nasscom) and ACTI (The Chilean Association of Information Technology Companies )groups information and communication technologies companies in our country., signed a memorandum of understanding here on March 21, 2009 to further business opportunities and facilitate mutually beneficial partnerships.

The President of Chile, Michelle Bachelet, who recently visited India , described the IT revolution in India as a result of the country finding and developing talent. Chilean and Indian companies could work together in Chile to create “global products with a Chilean identity” and wanted Indian companies to “take advantage” of the strengths of that country. Chile had “one of the most open economies in Latin America.”

Making it clear that the Chilean delegation here was on furthering ties across a cross section of business and civil society outfits, Dr. Bachelet said that the delegation that had accompanied her was “not a typical delegation.” The number of government functionaries was small and comprised entrepreneurs, persons from across the political divide and elected representatives.

March 23, 2009: Govt issues oil bonds worth Rs 10,000 cr :
The government has issued bonds worth Rs 10,000 crore to oil marketing PSUs to compensate them for selling some petroleum products at below the cost price. While Indian Oil Corporation will get the highest Rs 5,817.27 crore of special bonds, Bharat Petroleum Corporation will receive Rs 2,144.32-crore bonds and Hindustan Petroleum Corporation will be issued bonds worth Rs 2,038.41 crore. The bonds will carry an 8 per cent coupon rate and will mature in 2026, the government said in a statement. The investment in these bonds will not be counted as statutory investment which banks have to make in government and other securities

March 23, 2009 : Tata Nano, the much-awaited ‘People’s Car’ from Tata Motors, was launched in Mumbai
Tata Motors on March 23, 2009 commercially launched its people’s car, Nano, promising to stick to the Rs 100,000 price tag for the base model. The promise that has been made to sell the car at around Rs 1-lakh would be kept despite the fact that commodity prices had shot up, Ratan Tata said, adding that the fall in commodity prices now may provide some cushion. The delivery of the first lot of Nano cars will begin in early-July, he said, adding that applications for booking of the car would be available in 30,000 locations in 1,000 cities across India. The four-door car, Nano has a 623cc engine and a mileage of 23.6 km per litre. It is available in 3 different versions, including one with air-conditioning. Contrary to the criticism it faced pre-launch, Tata Nano meets safety standards and emission laws. As promised by Tata Group chairman Ratan Tata, the base version of the Nano has been priced at Rs 100,000 or about $2,000. This price, however, will be for the first 100,000 cars. Thereafter the price might rise.

Note : Other Least Expensive Cars of the World:

Chery QQ3: Chery Automobile, the Chinese car manufacturer, is a name to reckon with in the Chinese passenger car industry. Its Chery QQ3 is a city car that hit the market in 2003. In China, it is sold for 29,000-50,000 Remnibi, while internationally it is priced at $5,000.

Maruti 800 : The most popular entry in the small car segment in India since 1983, Maruti 800 has wooed Indians for over two decades. Manufactured by Maruti Suzuki India Ltd, Maruti 800 came as a breath of fresh air after Ambassador and Fiat. This four-seater has an 800cc engine, great fuel efficiency and low maintenance cost. Tagged at $5,200, it is available in both AC and non-AC versions. Maruti 800 has great fuel efficiency and very low maintenance cost. The small size and low turning radius of the car makes it easy to drive in the heavy traffic of big cities. It is also exported to a number of countries in South

Merrie Star : Made by China-based Geely Automobile, Merrie Star is a four-door sedan. Priced at $5,500, it was launched in 2005 and is popular amongst the middle-income families and first time buyers in China. It is produced in Geely’s Ningbo, Zhejiang factory, China. It has an engine size ranging from 1.0 to 1.3 litres. Geely exports this model to Southeast Asia and Africa.
March 23, 2009 : GE Hitachi signs MoUs with NPCIL, BHEL for nuclear reactors
GE Hitachi Nuclear Energy (GEH) announced on march 23, 2009 about the signing of two agreements with the Nuclear Power Corporation of India (NPCIL) and Bharat Heavy Electricals Limited (BHEL) . GE Hitachi Nuclear Energy is a world-leading nuclear technology and services provider, and has signed separate agreements with Mumbai-based NPCIL, Indias only nuclear utility operating 17 reactors, and New Delhi-based BHEL, the countrys leading manufacturer and supplier of power generation equipment and components. The two government-owned companies are helping Indias efforts to expand power generation from nuclear energy in the worlds largest democracy more than tenfold over the next two decades-from 4.1 GW today to 60 GW by 2032. Under the preliminary agreements, GEH will begin planning with NPCIL and BHEL for the necessary resources in manufacturing and construction management for a potential multiple-unit Advanced Boiling Water Reactor (ABWR) nuclear power station. The 1,350-MW ABWR technology is the worlds only commercially proven Generation III reactor design, with the first two of the four units entering service in 1996 and 1997 and four additional units under construction today. The MOUs were signed after GEH executives recently led a US nuclear industry trade delegation to India to explore potential opportunities to partner with local companies on future nuclear plant projects.

March 25, 2009: Govt okays BRPL merger with IOC
The government has approved the merger of Bongaigaon Refinery and Petrochemicals Ltd (BRPL) with Indian Oil Corporation (IOC).BRPL shareholders to get four shares of IOC for every 37 held Currently, IOC holds 74.46% equity in BRPL.

March 26, 2009: IPL Signed Rs 8200-Crore Deal With MSM
IPL (Indian Premier League) has signed a new nine-year agreement with Multi Screen Media (MSM, formerly Sony) and World Sport Group (WSG), declaring the two as the Official Broadcast Partners of the Indian Premier League, up to 2017. The deal was closed at a whopping sum of Rs. 8,200 crore. With the second season of DLF-IPL starting from April 18, in South Africa, all the 59 scheduled matches would be brought live on SET Max, by MSM.

March 26, 2009 : ICICI Prudential ties up with PNB:
Indian private life insurance company ICICI Prudential Life tied up with the state-run Punjab National Bank (BSE:532461) to collect premium from the policy holders. The tie-up will allow the policy holders to pay premiums at the 4,600 branches of PNB. ICICI Prudential has already sold 9 million policies since inception and was expecting to cross the 10 million mark in the next three to four months.

What is ICICI Prudential ?
ICICI Prudential is a joint venture between ICICI Bank holding 74 per cent and UK-based financial services group Prudential Plc with 26 per cent stake.

26 March 2009: Tata Tea to buy 51 per cent in a Russian packaging and distribution company Grand
Known for its acquisition-led strategy, India’s second-largest branded tea company, Tata Tea, has tied up with the European Bank for Reconstruction and Development (EBRD) to buy 51 per cent in a Russian packaging and distribution company called Grand. Russia is the world’s largest tea market by volume after the UK and India. Grand is Russia’s second-largest tea importer, accounting for 15 per cent of imports. The size of the deal was not disclosed.Tata Tea will take a 33.2 per cent stake in Grand through one of its overseas subsidiaries and EBRD 17.8 per cent. The remaining 49 per cent will stay with the founding promoters led by Alexander E Borisov. The acquisition is subject to several conditions, including regulatory approvals, and is expected to be complete in the first half of 2009.

March 27, 2009 : RIL signed gas sale-purchase deal with 12 Fertilizer Firms
On March 27, 2009, Reliance Industries Limited,signed a gas sale-purchase deal with 12 fertilizer firms. These fertilizer firms are going to receive the first produced gas from the offshore Krishna-Godavari (KG) D6 fields. The field is situated on the east coast and within few days, oil and gas extraction from the field will start. The twelve fertilizer firms include: Indian Farmers Fertilizer Cooperative (Iffco), Krishak Bharti Cooperative (Kribhco), Tata Chemicals, Indo Gulf Fertilizer, National Fertilizer, Chambal Fertilizer, Gujarat State Fertilizer, Rashtriya Chemical Fertilizer, Nagarjuna Fertilizer and Sriram Fertilizer.

March 27, 2009 : Govt clears 26 FDI proposals worth over Rs 1,000 cr
The government On march 27, 2009 cleared 26 FDI proposals worth Rs 1,042.91 crore, including one by broadcaster Neo Sports, which will bring in Rs 258.53 crore worth of foreign investment. According to a statement issued by the finance ministry, Neo Sports Broadcasting’s FDI will be in uplinking and broadcasting ‘non-news and current affairs’ television channels. The company will issue fresh equity or equity-linked instruments to bring in foreign funds on recommendations of the FIPB. However, the government has rejected three proposals, including that of Bank of Nova Scotia of Canada, which was to undertake wholesale trading and hedging in precious metals.

March 31, 2009 : BHEL gets Rs 345 crore order for Steam Generators from NPCIL
It was a significant breakthrough in the Nuclear Power Segment for Bharat Heavy Electricals Limited (BHEL) when they got the first-ever order for Steam Generators for New Rating 700 MWe Nuclear Sets. This order has been placed on BHEL by Nuclear Power Corporation of India limited (NPCIL) for Kakrapara Atomic Power Project (KAPP) in Gujarat. It reinforces BHEL’s market leadership in the supply of indigenously-developed state-of-the-art equipment for nuclear power projects.
BHEL is also presently executing several contracts for NPCIL for equipment supply and erection, which are in various stages of progress. This includes a prestigious contract for supply, erection and commissioning of the complete conventional island for the first Prototype Fast Breeder Reactor (PFBR) of 500 MW rating, being set up by Bharatiya Nabhikiya Vidyut Nigam Ltd (BHAVINI) at Kalpakkam in Tamil Nadu.
BHEL has been a major partner in NPCIL’s vision to achieve self-reliance in nuclear energy. Its association with NPCIL began in 1970 with the development of technology and manufacture of prototype channel covers and heavy water headers. Over the years, BHEL has supplied various types of critical equipment on the primary side for several Nuclear Power Projects in India. The development of indigenous vendors has ensured long term support to Nuclear power stations in case of problems and to facilitate easy availability of spares for the life of the plants.

These Steam Generators shall be manufactured at the Trichy plant of BHEL. The Steam Generators are to be designed, manufactured and tested according to American Society of Mechanical Engineers (ASME Sec.III Standards). The detailed design including design analysis like Thermo Hydraulics, Stress Analysis etc. are to be carried out by BHEL

April 1, 2009 : World Economy Growth Projected 2.1%
The GDP growth in the developing world will slow to a projected 2.1 percent in 2009 from 5.8 percent in 2008, according to the latest World Bank estimates. The Bank has more than halved its November 2008 projection of 4.4 percent growth in developing countries in 2009, reflecting the rapid deterioration of global financial and economic conditions. The new Global Economic Prospects update also notes that global growth is expected to contract by 1.7 percent this year. This would be the first decline in world output since World War II. The GDP is projected to decline by 3 percent in OECD countries and by 2 percent in other high-income economies.

April 1, 2009 : Huge Turmoil in Streets of London and across Europe against G-20
Anti-capitalist demonstrators kicked off a 6-day-long protest from against G-20 summit started from April 4, 2009. The protests attempt to express their anger and helplessness over financial mismanagement that led to the global meltdown. A group of more than 150 organisations are taking part in the protests to demand against job cuts, poverty and more control on the finance sector and revive the economy. Anti-capitalist and environmental protestors conducted a ‘mass street party’ dubbed as ‘Financial Fools Day’. The protest organized by a group called ‘G-20 Meltdown’, featured carnival parades against the financial culprits. There were scuffles between protesters and the police in London. ‘Hang a Banker’ and ‘Storm the Banks’ are some of the slogans of the G20 protestors.

April 1, 2009 : What did our Prime Minister Say in G-20, “Shun protectionism”
Prime Minister Manmohan Singh urged the world economies to continue with stimulus packages till 2010 and avoid all kinds of protectionism, including in the financial sector, to battle the global economic slowdown.

April 2, 2009 : HCC gets 688.06 crore order for Punatsangchhu-I Hydro Electric Project in Bhutan:
HCC (Hindustan Construction Company Ltd), India’s leading construction and infrastructure company has bagged Rs.688.06 crore order for Package MC3 of 1200MW Punatsangchhu-I Hydro Electric Project in Bhutan. The Punatsangchhu-I Hydro Electric Project is located on river Punatsangchhu in Wangdue Phodrang Dzongkhag in Western Bhutan.

The project involves the construction of a Head Race Tunnel (From Surge Shaft end), Surge Shaft, Butterfly Valve Chamber, Pressure Shafts, Power House and Tail Race Tunnel including Hydro-Mechanical Works. The project will be completed in 66 (Sixty Six) months.

HCC has successfully constructed over 23 per cent of India’s hydel power generation capacity, including several challenging hydel power projects in the Himalayan regions. HCC has constructed Head Race Tunnel & Surge Shaft for India’s largest commissioned Nathpa Jhakri Hydro Electric Project (1500MW); Underground Powerhouse & Tunnel for Chamera Hydro Electric Power Project, Stage I. HCC is currently executing nine Hydro Electric Power Projects including four Hydro Electric Projects in J&K;, two in Himachal Pradesh and one each in Uttarakhand, Sikkim and West Bengal.

HCC is a leading construction and infrastructure development company with a rich heritage of experience. The company specializes in large-scale infrastructure development and developing new age construction technologies. The Company has
managed and executed several technically complex and high value projects across segments like transportation, power generation infrastructure, marine projects, oil & gas pipeline constructions, irrigation & water supply, utilities and urban infrastructure.Mr. Vinayak Deshpande is President & Chief Operating Officer of HCC.

April 10, 2009 : India, Asia’s 4th most corrupt nation
Corruption has gripped countries across the world. India is no execption. Many bribery and corruption scandals have tarnished India’s image over the years. Across Asia, several countries still see rampant corruption at all levels exposing the nexus between political parties and corporate houses. India, with a score* of 7.21 on the corruption index, is the fourth most corrupt nation in Asia, according to a survey by the Political and Economic Risk Consultancy (PERC).
Following are the other Rank Holders:
Rank 1. Indonesia
Rank 2: Thailand
Rank 3: Cambodia
Rank 4 : India
Rank 5 : Vietnam
Rank 6: Philippines

April 13, 2009: How Tech Mahindra won the Satyam bid
Ending the three-month ordeal of about 50,000 employees, Tech Mahindra on April 13, 2009 emerged as a top bidder with an offer of Rs 58 a share for a 31 per cent stake in beleaguered Satyam Computer, beating a strong rival Larsen & Toubro. Tech Mahindra would acquire the stake in an all-cash deal, followed by an open offer for a 20 per cent stake to take management control of the company. No immediate comment could be obtained from either Tech Mahindra or L&T.; After evaluating the bids, the government-appointed board of Satyam Computer on April 13, 2009 announced that “its board of directors has selected Venturbay Consultants Private Limited, a subsidiary controlled by Tech Mahindra Limited as the highest bidder to acquire a controlling stake in the company, subject to the approval of the Company Law Board.

April 15, 2009 : RBI knows banking better than US Fed: Says Nobel laureate Stiglitz
Nobel laureate Joseph Stiglitz complimented the Reserve Bank of India last week for resisting pressures to deregulate the banking sector. Stiglitz, a professor at Columbia University, said one reason India is “one of the least dark spots” in the gloomy global economic scenario is that its central bank has resisted such moves. Stiglitz said India had largely averted a crisis that felled the United States because India’s central bank did not act like its counterpart in the United States.

April 16, 2009 : Inflation 0.18%
Inflation eased to 0.18 per cent, a new low in over 30 years, although vegetables cost 25 per cent more than it did a year ago and so did other food items – making it a political scoring point in Parliamentary polls underway from April 16, 2009. Inflation fell by 0.08 percentage points during the week ended April four against 0.26 per cent in the previous week, but a number of food articles such as pulses, cereals, processed fish, common salt, tea, coffee, tobacco, soft drinks and liquor turned dearer, besides vegetables.

April 20, 2009: Top 10 Fortune 500 companies
Exxon Mobil tops the Fortune magazine’s list of the 500 biggest publicly traded companies with a whopping revenue of $442.85 billion. As a result of the financial crisis that is sweeping countries across the globe, overall earnings of the Fortune 500 companies fell by 85 per cent to $99 billion in 2008. While Exxon was the world’s most profitable company earning $45.2 billion in profit in 2008, recession-hit financial services companies Citigroup and Bank of America were out of the top 10 list this time. From a regional marketer of kerosene in the US to becoming the largest publicly traded petroleum company in the world, Exxon has come a long way. Exxon’s brands are Exxon, Esso and Mobil. Rex W. Tillerson is the chairman and CEO of Exxon Mobil. Fortune’s report was based on based on overall revenue earned by these companies.

April 21, 2009 : RBI cuts short-term rates
Reserve Bank of India on April 21, 2009 cut short-term lending (repo) and borrowing (reverse repo) rates by 25 basis points. In its annual credit policy for 2009-10, the RBI reduced the repo rate to 4.75 per cent and reverse repo to 3.25 per cent with immediate effect, while retaining other key rates like the cash reserve ratio, the percentage of deposits that banks keep with the central bank. In view of the ongoing global economic slowdown, the central bank has pegged the economic growth rate forecast for the current fiscal to 6 per cent, against 6.5-6.7 per cent estimated for 2008-09.

April 23, 2009 : 15 women CEOs of Fortune 500 majors
This year the Fortune magazine lists 15 women CEOs up from 12 in 2008. The list includes PepsiCo’s India-born CEO Indra Nooyi and three newcomers — Yahoo’s new CEO Carol Bartz, Dupont CEO Ellen Kullman, and BJ’s Wholesale Club CEO Laura Sen. According to the Fortune magazine, “From healthcare to food to retail to technology, these 15 women show what it takes to lead some of the world’s biggest companies.” Patricia Woertz, President and CEO of Archer Daniels Midland Company Ranks 27 in Fortune List

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