Companies & Sectors
Telecom spectrum auction gets lukewarm response in initial rounds

At the end of the first round, there were no bidders for Delhi, Mumbai, Rajasthan and Kolkata circles, and the auctions has drawn scant interest so far as the base price is much higher than what the companies paid in 2008

 
New Delhi: Telecom spectrum auction in India opened on Monday to a lukewarm response with key circles such as Delhi and Mumbai finding no takers in the initial rounds, reports PTI.
 
There were no applications for pan-India spectrum, the base price for which was set at Rs14,000 crore that the industry said was too high.
 
The Indian government was looking to raise Rs40,000 crore from the auction.
 
At the end of the first round, sources said there were no bidders for Delhi, Mumbai, Rajasthan and Kolkata circles.
 
There was some interest for spectrum for Uttar Pradesh (East) circle at the end of second round in the afternoon.
 
India is divided into 22 telecom circles. Companies can bid for circles that remain unsold in the initial rounds.
 
Sources said the auctions has drawn scant interest so far as the base price is much higher than what the companies paid in 2008.
 
The base price of Rs14,000 crore for 5 MHz of GSM radiowaves or spectrum in all the 22 zones is more than seven times what the companies paid in 2008.
 
Sunil Bharti Mittal, Chairman of Bharti Airtel, the nation's largest telecom company, had last week predicted that the auction would be over on first day itself because of the high base price.
 
Bharti Airtel, Vodafone, Idea Cellular, Telenor and Videocon are bidding for GSM, but there are no bidders for the CDMA spectrum after Tata Teleservcies and Videcon pulled out of the race.
 
The auction will continue till 1930 hours.
 

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Industrial output dips by 0.4% in September

India's IIP contracted by 0.4% in September due dismal show by manufacturing sector and decline in consumer as well as capital goods output

 
New Delhi: Indicating persistent sluggishness in the economy, India's industrial production contracted by 0.4% in September due dismal show by manufacturing sector and decline in consumer as well as capital goods output, reports PTI.
 
Growth in overall factory output, as measured by the Index of Industrial Production (IIP), was 2.5% in September last year.
 
Industrial output in the April-September period this fiscal was 1%, down from 5.1% in the same period in 2011-12, according to the official data released on Monday.
 
Meanwhile the industrial production growth rate for August this year was revised downward to 2.3% from earlier provisional estimates of 2.7% released last month.
 
The output of manufacturing sector, which constitutes over 75% of the index, contracted by 1.5% in September, as against a growth of 3.1% in the same month last year.
 
The production in the manufacturing sector in April- September this year also dipped by 0.4% as against a growth of 5.5% growth in the same period in 2011-12.
 
Capital goods output declined by 12.2% in September, as against a contraction of 6.5% in September, 2011.
 
Output of capital goods contracted in the April-September period by 13.7%, as against growth of 4.6% in the 2011-12 period.
 
However, mining output in September grew by 5.5% as against a contraction of 7.5% in same month last year. The sector's production in April-September was flat as compared to a contraction of 1.6% in a year ago.
 
Consumer goods production was down by 0.3% in September as compared to a growth of 5.7% in same month last year. In April-September period of this fiscal, the growth in the segment was 2.5%, compared to 4.7% in the first half of last fiscal. 
 
In all, 12 of the 22 industry groups in the manufacturing sector showed growth in August.
 
Consumer durables production declined by 1.7% in September, compared to growth of 8.9% in the same month last year.
 
The output of these goods registered a growth of 3.8% during April-September, as against 5.3% in the same period last fiscal.
 
The consumer non-durables output growth was 1.1% in September, as against 2.7% in the same month last year. This segment grew by 1.4% in first half of this fiscal, as against 4% in the same period of 2011-12.
 
The basic goods production growth slowed to 3.5% in September, as against 5.3% the year-ago period.
 
During the April-September period, this segment recorded a growth of 2.9%, compared to 7.3% in the first half of last fiscal.
 
Power generation growth rate slowed to 3.9% in September, compared to 9% in the same month a year ago. The segment grew by 4.6% in the April-September period this fiscal, as against 9.4% in 2011-12.
 

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Higher food prices push up inflation to 9.75% in October

Sugar prices rose 20%, while edible oil and pulses prices went up by 18% and 15% during October thus driving the inflation close to double digit mark

 
New Delhi: Driven by rising prices of food items such as sugar, pulses and vegetables as well as clothing, retail inflation moved closer to the double digit mark at 9.75% in October, reports PTI.
 
It was 9.73% in the previous month, according to the Consumer Price Index (CPI) data released on Monday.
 
The highest rise in prices during the month was recorded by sugar, up 19.6%, year-on-year basis. It was followed by edible oil which turned expensive by 17.9%, while pulses were dearer by 14.9% on the annual basis.
 
Vegetable rates during month increased by 10.7%, while meat and fish and egg rates rose by 12.2%.
 
At the same time, clothing and footwear also witnessed an increase in prices at 10.5% on an annual basis.
 
In urban areas, retail inflation moderated to 9.5% in October, compared to 9.7% in the previous month. However, CPI rose for rural population to 9.9% during the month from 9.8% in the previous month.
 
"All India provisional general (all groups) CPI numbers of October 2012 for rural, urban and combined are 126.7, 122.6 and 124.9 respectively," said Minister of State for Statistics and Programme Implementation (Independent charge) Srikant Kumar Jena.
 
Concerned over the persistent inflation, the Reserve Bank of India (RBI) last month kept its benchmark interest rate unchanged. 
 
However, RBI had reduced cash reserve ratio by 0.25% to infuse additional liquidity, injecting Rs17,500 crore into the financial system.
 
Accordingly, the cash reserve ratio (CRR) or the portion of deposits banks have to park with the RBI now stands at 4.25%, while the repo rate, at which RBI lends to the system, has been retained at 8%.
 
The reverse repo, at which RBI absorbs excess liquidity through borrowings from banks, remains at 7%.
 
Meanwhile, industrial growth has slipped in the negative territory at 0.4% in September, compared to a growth of 2.5% in the same month last year, which indicates persistent sluggishness in the economy.
 

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