Tata Teleservices signs infrastructure sharing agreement with BSNL
Tata Teleservices Ltd has said that it has signed a master services agreement with State-run Bharat Sanchar Nigam Ltd (BSNL) for sharing passive infrastructure over 15 years. No financial details were provided.
 
“This agreement has the potential to not just speed up our network expansion and rollout process, but would also have a substantial impact in terms of reduced costs,” said AG Rao, chief technology officer, Tata Teleservices.
 
Earlier in July the State-run telecom giant has said that it hopes to generate revenues of about Rs10 billion within a year from sharing its infrastructure with other telecom companies, a concept which telecom companies are eying to reduce their costs to mitigate the impact of the global slowdown.
 
BSNL has around 40,000 telecom towers across the country. However, its financial performance has been dwindling due to competition and wage costs. Especially, BSNL's profit has declined on account of increase in employee costs following the implementation of pay commission recommendations and fall in its fixed line services.
 
As per the agreement, BSNL will provide its existing sites—including operation and maintenance services—to Tata Teleservices on a shared basis. The agreement will be applicable to both Tata Teleservices and Tata Teleservices (Maharashtra) Ltd in India’s 22 telecom circles.
-Yogesh Sapkale [email protected]
 

 

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Public sector banks foray into new domains
Gone are the days when public sector banks (PSBs) in India were just about dull, cramped office spaces. In the past one decade, PSBs in India have come a long way, competing in arenas which were earlier the domain of private and foreign banks in India. PSBs are now active in retail fee income, money transfers and online trading—among other activities. An important stronghold of foreign banks was ship finance. This area too is now witnessing entry of PSBs.
 
Before the global meltdown, foreign banks were the main source of loans for shipping companies in India. Today, domestic banks are being considered for ship finance by major shipping companies in India like the Shipping Corporation of India (SCI) and Essar Shipping. “The liquidity in India is far more reassuring and available rather than offshore banks at present,” said V Ashok, director, Essar Shipping Ports and Logistics Ltd.
 
Bank of India, one of the major PSBs in India, has also reported an increase in the number of shipping companies approaching it for loans in the past two years. “We have financed two new shipping companies last year. Given the number of shipping companies in India, two new companies is a good addition,” said V Rajaraman, general manager, large corporate (credit), Bank of India.
 
“Availability of foreign exchange, loss of appetite by foreign banks, durability of relationship and the confidence that PSBs offer are the main reasons,” Rajaraman added.
 
Except SBI Capital Markets, the investment subsidiary of the State Bank of India, investment banking in India has been strongly dominated by private and foreign banks like Citigroup, Morgan Stanley, Merrill Lynch, and Deutsche Bank. However, in the past few years PSBs like Punjab National Bank (PNB) and Union Bank are also entering this new domain. Union Bank announced plans in 2008 and PNB announced plans in September 2009.
 
“One reason why PSBs could enter investment banking is because a lot of times, government companies want to have some PSBs among their bankers. This would help them get an additional fee and also expand their portfolio as they can participate in mergers and acquisitions, both overseas and domestic,” said Gautam Mehta, analyst, KRChoksey Shares and Securities Ltd.
 
Loan syndication is another arena where PSBs are making their presence strongly felt. Earlier, dominated by SBI Capital Markets, IDBI Bank and Axis Bank, the loan syndication business has witnessed entrants like Allahabad Bank, Bank of India, and Corporation Bank. Union Bank is also planning to foray into syndication, with the setting up of a syndication team already in process. Corporation Bank has recently set up a syndication desk.
 
“PSBs will do a lot in the loan syndication sector as it involves large amount of loans. Loan syndication is generally done for large projects like power and infrastructure. With the government supporting infrastructure through private- public partnership, PSU banks have room to grow,” added Mehta.
 
K Unnikrishnan, deputy chief executive, Indian Banks’ Association, attributes the transformation in PSU banking in India to the financial improvement of these banks since 2003. “After the slump of the mid-1990s, the non-performing asset levels for PSBs went up. The government had to pump in a lot of capital to keep them afloat. At the turn of the century, all the PSU banks had consolidated their financial position. In the last six years, their financial position has improved tremendously. Earlier, if they wanted funds, the Reserve Bank of India (RBI) would have refused on the grounds of low capital adequacy ratio. Now that their capital adequacy is quite comfortable, they are in a better position to look for expansion. India’s trade and exports have increased in the past six-seven years which need to be supported by strong, large banks,” said Unnikrishnan.

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Pilots strike keeps Air India grounded: AI says no fresh bookings
The country's national carrier—Air India has stopped accepting fresh bookings on domestic flights till further notice, after its operations were affected by pilot's strike.
 
Arvind Jadhav, chairman and managing director, Air India said, “All morning flights of Air India will remain cancelled till we come to some arrangement."
 
"A total of 180 Air India pilots have reported sick," he said.
 
Air India has cancelled nine international and 37 domestic services after 87 pilots reported sick, the airline said in a statement.
 
Talks between the management and the striking executive pilots Monday failed to break the deadlock over the issue of cut in perks. The striking pilots are protesting against the cut in the productivity linked incentives (PIL). They are likely to intensify their agitation.
 
Meanwhile, M Madhavan Nambiar, civil aviation secretary said, “Air India management has not taken any decision on the cut of PLI or any allowance for the unionised section of employees. Decision regarding the executive employees will be taken only after the committee set up to look into this matter examines all aspects in consultation with employees."
 
"Though the Government support is coming, it must be linked to a problem turnaround plan including cost cutting and revenue enhancement," Nambiar said in a statement.
 
Private airlines have been asked not to increase fare and tariff in view of the agitation by Air India’s pilots, Nambiar added.
 
Air India on 24th September approved the PLI cut that would affect over 7,000 employees. The cut applicable to all officers, including top management personnel in various management disciplines will range from 25% for those getting PLI of Rs10,000 or less per month and 50% for those receiving PLI or flying related allowances of Rs200,000 or more per month. The cut for those receiving PLI of Rs10,001 to Rs25,000, Rs25,001 to Rs50,000 and Rs50,001 to Rs200,000 will be 35%, 40% and 45%, respectively, the release said.
 
Earlier in September, Jet Airways, India's second largest carrier was forced to cancel about 206 flights including 32 on international routes, due to pilot's strike.
-Yogesh Sapkale with Amritha Pillay [email protected]
 

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nipu kumari

7 years ago

hi i am looking for the jobs in air lines

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