Telecom major Telenor writes off Rs 3,500 crore India assets

May 1, 2012

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New Delhi, May 1: Norwegian telecom major Telenor on Monday wrote off its remaining fixed and intangible assets in India worth Norwegian Krone 3.9 billion (over $680 million or Rs 3,500 crore) saying "the uncertainty has increased significantly" following the Supreme Court's ruling in February to cancel Unitech Wireless's 22 licences and the recent Trai recommendations on the re-auction of 2G licences and spectrum.

The statement from the company came a day after the company's Asia head Siggve Brekke told TOI that Telenor was considering exiting India if the regulator's recommendations were accepted by the government in their current form.

It joins Sistema and Etisalat in taking a hit on their balance sheets due to their exposure to India. All these companies have been affected by the Supreme Court order. Etisalat had written off around $820 million of its investment, while Sistema, which like Telenor is still to announce a pullout, took a $700 million hit. So, the three companies between them have written off close to Rs 15,600 crore due to their India exposure. Telenor and Sistema have also threatened to initiate international arbitration and seek damages from the government.

The Norwegian firm holds 67% stake in Unitech Wireless which was controversially awarded licences and spectrum by former telecom minister A Raja, who is facing charges of criminal conspiracy and corruption. In February, the company had announced a write down of around $730 million, taking the total to over $1.4 billion (around Rs 7,200 crore at the current exchange rate).

"Telenor is working actively towards Indian authorities to bring forward an acceptable framework for continued operations. As a precautionary measure, Telenor ASA has decided to write down the remaining fixed and intangible assets in India amounting to NOK 3.9 billion. The write down will be included in Telenor's results for the first quarter 2012, to be presented on 8 May 2012. After the write down, Telenor has no further accounting exposure related to India as of 31 March 2012," the company said in a statement on Monday.

In a separate development a few hours later, the Telecom Commission decided to seek certain clarifications from Trai. "We wanted to understand the basis on which this reserve price has been arrived at... what is the likely impact on tariff," telecom secretary R Chandrashekhar said. A ministerial panel is also due to meet on Tuesday to discuss spectrum auction although a final view is expected around mid-May.

On Sunday, Brekke had cited various problems with Trai recommendations, including the rural rollout obligations. "In totality, if this is becoming policy, then the government is forcing us to leave. It's quite clear that it will not work for us... We are willing to write off the Rs 14,000 crore that we have invested," he had said.

Brekke's outburst coincided with petitioning done by the telecom companies to get the government to dilute the proposals. But given the controversy around allocation of scarce natural resources, such as spectrum and coal, below the market price, it is unlikely that the government will risk reducing the floor recommended by Trai.

The telecom regulator has suggested that the government start the auction with a base price of Rs 3,600 crore per megahertz, which translates into over Rs 18,000 crore for 5 Mhz, nearly 10 times higher than what Raja had charged for licence and spectrum.

Brekke was also critical of the move to auction only 5 Mhz spectrum and termed it as a "trial balloon" to set the price level for future rounds.

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News Network
January 24,2020

New Delhi, Jan 24: Although India's Ujjwala programme encouraged adoption of liquefied petroleum gas (LPG) for cooking among the poor, households availing the scheme have not shifted away from using highly polluting fuels like firewood, a study reveals.

The researchers, including those from the University of British Columbia (UBC) in Canada, found that additional incentives to encourage regular use of cooking gas are necessary for a complete transition to clean cooking fuel among poor rural households.

They noted that about 2.9 billion people across Asia, Africa, and Latin America burn solid fuels like firewood to meet their cooking energy needs.

This has significant negative implications for public health, the environment, and societal development, according to the researchers.

Through the Pradhan Mantri Ujjwala Yojana (PMUY), India has provided capital cost subsidies to poor women to adopt a clean-burning cooking fuel or LPG.

The researchers explained that within the first 40 months of the scheme, more than 80 million households obtained LPG stoves.

However, the full benefits of LPG adoption depend on near complete replacement of polluting fuels with LPG, according to a research-based policy brief published in the journal Nature Energy.

The scientists said this cannot be assumed solely on the basis of LPG presence in the household.

"Our research shows that Ujjwala was able to attract new consumers rapidly, but those consumers did not start using LPG on a regular basis," Abhishek Kar, a postdoc at Columbia University in the US, told PTI.

The study analysed LPG sales data for over 25,000 consumers, including PMUY beneficiaries, as well as general rural LPG consumers in Koppal district of Karnataka.

The scientists employed data covering all LPG purchases of PMUY beneficiaries through their first year in the programme.

They also assessed the general rural population's purchases during their first five years as consumers to assess the effect of experience on use.

The findings estimate that an average rural family needs to purchase five 14.2 kilogramme-cylinders annually to meet half of their cooking needs.

However, the study said just seven per cent of PMUY beneficiaries in Koppal purchased five or more cylinders annually, suggesting that the beneficiaries seldom use LPG.

The general (nonPMUY) consumers in this region use on average two times more LPG cylinders than PMUY beneficiaries, the researchers noted.

Yet, only 45 per cent of nonPMUY consumers use five or more cylinders per year -- even after several years of experience with LPG, they said.

The team assessed price and seasonal factors affecting LPG use among the general population over a three-year period.

It found that LPG consumers are sensitive to price and seasonality -- LPG cylinder refill rates are lower in the summer when agricultural activity is limited, and cash is scarce.

"There was no scheme incentives to promote use, except general LPG subsidies which is available to all, including the urban middle class," said Kar, who was a Ph.D. scholar at UBC when the research was published.

"If there is no additional income, what cost would a poor family on an already tight budget cut to pay for an extra expense on a regular basis.

"Ujjwala has started the scheme of 5 kg-cylinder in response, but the impact of that on LPG sales is still publicly unknown," he said.

These findings, the researchers noted, suggest the need for additional measures to promote regular LPG use for all rural populations.

Although the finding come from a single district in Southern India, it may also apply to other areas with similar socio-economic conditions, they said.

A more expansive evaluation of PMUY would help design targeted incentives to transform infrequent users to regular users, according to the researchers.

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News Network
February 3,2020

Bengaluru, Feb 3: India's manufacturing activity expanded at its quickest pace in nearly eight years in January with robust growth in new orders and output, a private survey showed on Monday, suggesting the economy may be getting back on firmer footing.

In response to the jump in sales, factories hired new workers at the fastest rate in more than seven years.

If sustained, the improvement in business conditions could point to a gradual economic recovery in coming months, as forecast by analysts in a Reuters poll last month, after growth slowed to a more than six-year low in the July-September quarter.

The Nikkei Manufacturing Purchasing Managers' Index , compiled by IHS Markit, jumped to 55.3 last month from 52.7 in December. It was the highest reading since February 2012 and above the 50-mark separating growth from contraction for the 30th straight month.

"The PMI results show that a notable rebound in demand boosted growth of sales, input buying, production and employment as firms focused on rebuilding their inventories and expanding their capacities in anticipation of further increases in new business," Pollyanna De Lima, principal economist at IHS Markit, said in a news release.

A new orders sub-index that tracks overall demand hit its highest level since December 2014 and output grew at its fastest pace in over seven and a half years, pushing manufacturers to hire at the strongest rate since August 2012.

Meanwhile, both input costs and output prices rose at a slower pace, indicating overall inflation may have eased after hitting a more than five year high of 7.35% in December, although probably not below the Reserve Bank of India's medium-term target of 4%.

That might keep the central bank, which cut its key interest rate by a cumulative 135 basis points last year, on the sidelines over the coming months.

"To complete the good news, there was also an uptick in business confidence as survey participants expect buoyant demand, new client wins, advertising and product diversification to boost output in the year ahead," added De Lima.

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News Network
March 10,2020

Thiruvananthapuram, Mar 10: Senior Congress leader Shashi Tharoor on monday thanked PM Narendra Modi  for extending birthday wishes to him in malayalam.

"Thank you, Prime Minister Narendra Modi, for this elaborate birthday greeting in shudh sahitya Malayalam! Am touched by your thoughtfulness," Tharoor tweeted with a picture of the letter from Modi.

In another tweet, the Congress MP also posted its translation, that reads,

Tharoor, who is an MP from Thiruvananthapuram, turned 64 on march 9.

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SmR
 - 
Tuesday, 10 Mar 2020

Is he next Scindia waiting to board the BJP ship?

 

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