India Equity Analysis, Reports, Recommendations, Stock Tips and more!
Search Now
Recommendations
Monday, October 01, 2007
RDAG eyes Cement Sector
Power-to-telecom business house Reliance Anil Dhirubhai Ambani Group (R-ADAG) plans to enter cement manufacturing by setting up a plant near its 4,000MW coal-fired power project proposed at Sasan in east Madhya Pradesh.
The cement plant proposed by R-ADAG will use millions of tonnes of fly ash generated at the power station, billed ultra mega power project for its large capacity, to produce cement. Fly ash is generated while burning coal.
Not only is the cost of cement production using fly ash 5-10% lower than the cost using the traditional clinker-based method, it also saves on transportation and disposal of a material seen as environment-unfriendly.
“They (R-ADAG) plan to set up a cement plant near the newly bagged power project at Sasan to utilize the fly ash generated from the project,” said a senior government official, who did not wish to be identified.
An R-ADAG executive declined details of the cement project. J.P. Chalasani, director, business development, Reliance Energy Ltd, said, “Our company keeps on evaluating various proposals from time to time.” Reliance Energy is the parent of Reliance Power Ltd, the company in charge of the Sasan project.
Ultra mega power projects are expected to see a major expansion of cement manufacturing capacity in India with cement companies such as Grasim Industries Ltd, Ultratech Ltd, Sanghi Cement Ltd, The India Cements Ltd, Zuari Cements Ltd and My Home Industries Ltd already evincing interest in setting up greenfield cement plants in the vicinity of such power stations, as reported by Mint on 26 September.
The size of the R-ADAG cement plant was not immediately known. Going by the amount of fly ash—some 9 million tonnes a year—the 4,000MW power project will generate, the cement plant capacity could be huge. One tonne of cement needs an input of 0.2 tonne of fly ash.
“Depending on the amount of fly ash the projected is expected to produce, R-ADAG can put up a capacity of 45 million tonnes per annum (mtpa). But nobody would want to put up such a huge capacity. The impact of R-ADAG’s move will depend on the size of the unit,” Rupesh Sankhe, an analyst tracking the commodity for ICICI Direct, said.
The cost of setting up a 1mtpa cement capacity is up to Rs400 crore.
The Rs20,000 crore Sasan project was awarded to Reliance Power after it matched the winning bid for the project after the original winning consortium of Lanco Infratech and Globeleq Singapore was disqualified by a government panel on 25 July for violating terms of the deal.
Analysts said by the time the Sasan project goes online, cement capacity in the country may be less beneficial to cement producers, who have enjoyed a 30-34% price rise in different regions in the past year alone. India, the world’s second largest cement market with Rs55,000 crore estimated demand, has a cement manufacturing capacity of 148mtpa.
“The power project is expected to come up only after 2012, when the cement supply is expected to outstrip demand,” Sankhe said.
E.N. Murthy, secretary general of trade body Cement Manufacturers Association, welcomed the capacity addition. “Around 60% of the cement produced in India uses fly ash. In a situation of supply-side constraint, any additional capacity is good news for the industry,” he said.
The government had planned nine ultra mega power projects. While those at Sasan, Mundra in Gujarat, Tilaiya in Jharkhand, Krishnapattnam in Andhra Pradesh, Tamil Nadu’s Cheyyur and Orissa’s Jharsuguda are on track, others at Girye in Maharashtra, Tadri in Karnataka and Chhattisgarh’s Akaltara are yet to take off. Sasan, Tilaiya and Jharsuguda are coal pithead projects and those at Mundra, Krishnapattnam and Cheyyur are based on imported coal.
DLF, Mahindras, Tulip apply for UASL
US firm AT&T in a tie-up with diversified group Mahindras, property developer DLF and IT firm Tulip on 1 October applied for telecom licences on the last date for filing applications, while Hinduja TMT and realty firm Omaxe may submit the necessary documents later in the day.
AT&T said in a statement it has filed applications with the Department of Telecom for a Unified Access Service License (UASL) to start services in all 22 circles of India.
“This is an important step toward participating in India’s upcoming spectrum allocation proceedings,” it said.
AT&T is extending its partnership with Mahindra Telecommunications Pvt Ltd, through its local unit AT&T India, to apply for the UASL, the company said.
AT&T already has licences to provide NLD and ILD services. Tulip also has NLD and ILD licence.
A Hinduja TMT official said the company will be applying for the license after its board took a decision on it. Omaxe officials also said the company would submit its application.
At least 13 companies have submitted more than 230 applications for telecom licences and most of these are for a pan-India UASL. DLF and Omaxe join other real estate firms Indiabulls Real Estate, Unitech and Parsvnath Developers to apply for telecom licence.
Other companies who have applied for licences include Swan and Cheetah Telecom, JSW Steel, HFCL and Ruias-backed BPL Mobile. The companies rushed to apply for a telecom licence when DoT said on September 24 it will not accept applications after October 1.
Bharti Airtel - in Top 10!
Sunil Mittal-owned Bharti Airtel on Monday became the first Indian telecom company to join the world's top ten operators, with its customer base crossing the 50-million mark in mobile, broadband and wireline services.
"Our next target is to reach 100 million mark by 2010," Bharti Airtel President and CEO Manoj Kohli said here.
The 50 million customers span mobile, broadband and fixed telephone services, with wireless segment estimated to be contributing as much as 96 per cent (47.99 million) of the total base. However, exact figures for the mobile additions in the month of September would be provided by Cellular Operators Association of India in a couple of days.
Bharti Airtel has been adding over two million subscribers every month and had 46.8 million subscribers by the end of August, 2007.
Company's Joint Managing Director Akhil Gupta said: "Most of the susbcribers from the next 50 million would come from rural areas."
He said with this, Average Revenues Per User (ARPU) may fall but it would not decline drastically.
"By acquiring subscribers in rural areas, ARPUs may fall but the usage and revenues increase, so it is not a cause of concern," Gupta added.
For increasing our penetration in the rural areas, we would follow a different strategy which may include providing local content in various languages, simpler tariffs among other things, he added.
The company also plans to make considerable investments in network expansion to establish presence in all towns and over five lakh villages across India by 2010, thereby covering 95 per cent of the the country's total population.
It also plans to start DTH operations by the end of the current fiscal.
However, Bharti did not reveal further details of the DTH venture.
The company would also start its operations in Sri Lanka by the end of March 2008, Kohli said.
Telecom License lock in periods ?
With the queue for telecom licences getting longer by the day, the department of telecommunications (DoT) is planning to introduce a lock-in period to weed out non-serious applicants. Such a lock-in is likely to apply on two counts — exit lock-in and ownership lock-in.
If implemented, a new applicant who is allocated spectrum to launch cellular services will be able to sell out only after operating for a certain number of years. At the same time, its promoters will not be able to sell their stake beyond a certain percentage during this period, despite the foreign direct investment (FDI) limit being at 74%. A final call on this will be taken by the DoT committee set up to formulate pre-qualification norms for applicants and screening guidelines for those that qualify.
When contacted, a government official close to the developments told ET: "There’s no final view since the matter is yet to be taken up by the Telecom Commission. Talks are at a conceptual stage, wherein an exit lock-in will prevent a new universal access service licence (UASL) applicant from exiting the business for a specified period. An ownership lock-in will be more complex as it will entail a defined set of norms that prevents the promoter group in a new licensee company from offloading its stake."
The official said the ownership lock-in will ensure a minimum equity investment in a company that has applied for a mobile licence for a specific period. "There is no decision yet on such a minimum ownership threshold. The matter will be discussed by the Telecom Commission shortly," he said.
Besides the possible introduction of exit/ownership lock-in periods, the DoT committee set up to put in place new norms to screen applicants is also looking at tightening roll-out obligations, increasing the net worth of companies eligible to apply, and reducing the 90-day deadline for companies to convert their letters of intent (LoI) into licences.
Sources said the options being explored involve raising the net worth to around Rs 2,000 crore from the current Rs 1,300 crore and companies being asked to convert their LoIs into licences within 10 days. Telecom minister A Raja had said recently: "All licences will be scrutinised and limited applications selected."
A global investment banker said "determining a workable ownership lock-in period will be a tough call, since all associated legal and commercial complexities will have to be weighed against the present financing requirements".
With companies making a beeline for cellular licences, DoT has constituted an agency consisting of members from different government departments to establish the actual identities of the promoters and shareholders behind the new applications. "DoT will do its bit to ensure offshore deals in the nature of ‘benami’ transactions do not transpire and there is genuine transparency," said the top government official.
DoT gets 500 applications
The frenzy over telecom licences came to an end on Monday with the tally touching the 500-mark as a number of biggies including AT&T, Hindujas, DLF, Sterlite and Videocon jumped into the fray to tap the world's fastest growing cellular market.
The figure may go beyond 500 as the Department of Telecom (DoT) is still counting the applications received from various companies as the deadline expired today. Nearly 200 applications are estimated to have been submitted today.
A senior DoT official termed the rush of applications as "sheer madness" and the Department would start scrutinising these documents soon. The DoT would screen the applicants once a committee appointed by Communications Minister A Raja comes up with fresh guidelines detailing the minimum net worth, ownership and other crucial aspects of the applicants.
Raja has already said that a select number of applicants would be selected. DoT would be following a two-stage screening process. There are allegations by GSM players' lobby COAI that many applicants are front companies of existing players who are trying to circumvent existing restrictions.
The companies which have sought licence include property developers Parsvnath, Unitech, Indiabulls Real Estate, Omaxe and DLF. Besides, Allianz Infratech, Shyam Telecom, HFCL, BPL, Cheetah, DataCom, Stel, Swan Telecom, Tulip, JSW Steel and Bycell also applied. Ispat Industries, Sify, Moser Baer and Dalmia Group are also believed to have put in applications.
US firm AT&T tied up with diversified group Mahindras and Hinduja Group applied through its subsidiary HTMT Telecom.
Most of the players have sought licences for all the 22 circles in the country. India is the world's fastest growing telecom market and existing players are adding more than eight million subscribers every month.
Nokia to buy Navteq
Nokia Corp is buying US navigation-software maker Navteq Corp for around $8.1 billion, the world's largest mobile phone maker said on Monday.
The deal has been approved by the boards of both companies, according to Nokia.
Under the agreement, Nokia will pay $78 in cash for each Navteq share, including outstanding options.
Chicago-based Navteq maintains digital maps which it licenses to global positioning systems and Web sites. Founded in 1985, it has around 3,000 employees in 168 offices in 30 countries.
Nokia's President and Chief Executive Olli-Pekka Kallasvuo said "location-based services are one of the cornerstones of Nokia's Internet services strategy. The acquisition of Navteq is another step toward Nokia becoming a leading player in this space."
Kallasvuo added that by acquiring Navteq, Nokia "will be able to bring context and geographical information to a number of our Internet services with accelerated time to market."
Jari Honko, an analyst at eQ Bank in Helsinki, said Nokia is "extremely driven" in its strategy to move into mobile services and called Navteq "the most significant player in its field."
"It makes a lot of sense," he said. "This is one of the areas that should become extremely important in the future. ... Nokia could very well build one of its core services around it."
Nifty outshines Sensex
The market extended recent solid gains and both the key indices Sensex and Nifty struck all-time closing highs. But the market came sharply off higher level in late trade after it had struck lifetime high in late afternoon trade. A sharp fall in Reliance Industries (RIL) pulled the market off higher level in late trade.
Mid-cap and small-cap indices touched all-time highs today. Market breadth was strong. European markets were trading in red. Asian markets were firm today.
The 30-shares BSE Sensex ended up 37.52 points or 0.22% at a fresh closing high of17,328.62. It had hit a fresh all-time high of 17,425.34 in late afternoon trade. It hit a low of 17,144.58 in the day.
The broder based S&P CNX Nifty today scoared over Sensex. Nifty ended up 47.6 points or 0.95% at a fresh closing high of 5,068.95. It hit an all-time high of 5089.30 today. Nifty's near 1% rise was much higher than Sensex's 0.22% gain.
The BSE Mid-cap index rose 106.21 points or 1.43% to 7,528.64. It hit a all-time high of 7554.54 today. The BSE Small-cap index rose 84.59 points or 0.93% to 9,184.52. It hit an all time high of 9,218.52 today. Both these indices outperformed Sensex.
Sectoral indices on BSE displayed mixed trend., BSE Health Care Index (up 1.42% at 3,837.15),BSE TecK index (up 0.39% to 3,780.54), BSE Oil and Gas Index (up 1.26% at 9,682.95) ,BSE PSU index (up 1.97% to 8,363.25), outperformed the Sensex.
BSE Capital Goods Index (up 0.06% at 14,688.96), BSE IT Index (down 0.64% at 4,598.11), BSE Metal Index (down 0.33% at 13,899.77), BSE Consumer Durables index (down 0.83% to 4,764.56), Bankex (down 0.78% to 9,395.78) BSE Realty index (up 0.04% to 9,181.83), and BSE FMCG Index (down 0.47% at 2,151.10), BSE Auto Index (down 0.3% at 5,316.33) were underperformers.
In opening trade, the market had come off higher level soon after a firm start as political concerns took centrestage wth CPI (M) veteran Jyoti Basu on Saturday, 29 September 2007, ruling out the possibility of any compromise on the issue of Left’s opposition to the Indo-US nuclear deal. It had firmed up again later. The market had opened a firm note after tame US inflation data reinforced expectations of another cut in US interest rates.
While the operationalisation of the nuclear deal has been put on hold by the government pending the findings of a committee, it cannot be stalled forever.
The Communists want the government to defer the Indo-US nuclear accord by six months and have warned of a political crisis if it is implemented. The committee set up of the government to look into Left Front’s concerns over the deal is scheduled to hold its next meeting on 5 October 2007.
On the flip side, political turmoil arising from nuke deal will not impact India’s basic economic fundamentals though some infrastructure projects may get delayed. India’s economy is expected to post strong growth for a long period of time mainly due to favourable demographics.
BSE clocked a turnover of Rs 7197 crore compared to Friday (28 September 2007)'s Rs 7,951.21 crore.
Nifty October 2007 futures were trading at 5062.95, at a discount of 6 points or 0.01% to the spot price of 5,068.95.
NSE F&O clocked a turnover of Rs 61,451.29 crore today, 1 October 2007 compared to a turnover of Rs 56,998.5 crore on 28 September 2007.
Out of the 30 share Sensex stocks, 15 advanced and the rest declined.
Market breadth was strong on BSE: 1605 scrips advanced, 1126 declined while 343 scrips remained unchanged.
India’s largest private sector company by market capitalisation and oil refiner, Reliance Industries (RIL) was down 0.3% to Rs 2,289.35. The stock was volatile today. It moved between a low of Rs 2264.25 and high of 2327.80.
Reliance Retail, a subsidiary of the Mukesh Ambani-promoted Reliance Industries, has reportedly, sacked 400 staff in West Bengal due to its inability to start operations following stiff opposition from political parties and local traders. RIL had earlier laid off 1000 staff in Uttar Pradesh.
Reliance Energy (REL) galloped 11.94% to Rs 1,349.40. It struck an all time high of Rs 1,385 today. It was the top gainer from the Sensex pack. Reliance Power, the Anil Ambani group firm, in which REL holds 50% stake, will raise $2-$2.5 billion in the country’s largest power sector IPO. Reliance Power, which is implementing a clutch of large power generation projects across the country, will sell 10-15% to the public and institutions in the coming months to fund various projects.
State-run power producer NTPC rose 6.49% to Rs 206 on hopes of higher valuation after Reliance Energy's proposed initial public offering of its subsidiary Reliance Power. It touched an all-time high of Rs 207.90 today.
ONGC rose 4.09% to Rs 997.10. It hit an all time high of Rs 1,015 today.
Reliance Communication (up 4.48% to Rs 611.90) was another major gainers from the Sensex pack.
State Bank of India (down 2.93% to Rs 1,893.50) was the top loser amongst the Sensex pack. ITC (down 1.98% to Rs 185.95,Bajaj Auto (down 2.19% to Rs 2,484.10), Bharat Heavy Electricals (down 2.1% to Rs 1,990.05) and, HDFC Bank (down 2.44% to Rs 1,404) were the major losers amongst the Sensex pack.
Reliance Capital rose 14.15% to Rs 1,808.65 on BSE, on continued buying interest. It hit an all time high of Rs 1,850.95.
IT bigwigs like Infosys (down 0.19% to Rs 1,893.10), TCS (down 1.72% to Rs 1,038.55), Satyam (down 0.17% to Rs 442.75) , Wipro(down 1.28% to Rs 453.95) edged lower.
Among side counters, Binani Industries (up 20% to Rs 270), Spentex Industries (up 20% to Rs 34.50), Hatsun Agro Products (up 20% to Rs 259.55), Brady & Morris (up 20% to Rs 229.40) and SPL Polymers (up 20% to Rs 7.56) spurted.
India's third-biggest motorbike maker TVS Motor rose 1% to Rs 70.75 even after its sales declined 29% to 1,15,091 two-wheelers in September 2007, over September 2006.
Mahindra & Mahindra was up 1% to Rs 759.20 on reports that the group is planning to hive off its logistics division into a seperate company. Mahindra & Mahindra reported 25% rise in sales to 19,871 units in September 2007 over September 2006.
Maruti Suzuki India India's biggest car maker declined 0.7% to Rs 991.75 on recording 13.5% rise in sales to 67,448 vehicles in September, 2007 over September 2006.
Gulf Oil Corporation soared 3.4% to Rs 1538.25 on reports the firm is in talks with infrastructure and real estate funds for investments in the company’s mining and construction verticals.
Sterlite Optical Technologies rose 1.73% to Rs 241.20 after acquired 58.70% holding in equity share capital of Sterlite Infrastructure (SIPL). With this investment, SIPL has become subsidiary of the company. SIPL is into business pertaining to infrastructure projects and telecommunications.
Kavveri Telecom Products rose 4.29% to Rs 159.15. It said on Monday, 1 October 2007, it had acquired the technology, intellectual property rights and patents of cellular infrastructure base station Antenna Line of erstwhile Sigma Wireless, Ireland from US-based PCTEL Inc.
AVT Natural Products was up 7.45% to Rs 98.85 after it announced Friday, 28 September 2007, commencement of marigold flower processing unit AVT Bio-Products in Heilongjiang Province of North East China.
Compact Disc India down 2.5% to Rs 87.70. It announced today before the market hours that meeting of the board will be held on 15 October 2007 to consider the rights issue.
Dr. Reddys Laboratories was up 1.46% to Rs 658.45 after it announced on Friday, September 28, 2007, it has expanded its operations in the ASEAN region with the opening of its 41st overseas office in Manila, Philippines.
Bajaj Auto, India's second-biggest motorcycle maker declined 2.19% to Rs 2484.10 after its sales declined 23% to 2,32,496 units in September 2007 over September 2006.
Time Technoplast was up 1.82% to Rs 705.20 after it said on Monday, 1 October 2007 it bought a 74% stake in battery maker NED Energy for Rs 50.30 crore.
ICSA India declined 1.19% to Rs 1,676.55 after it secured work orders for a total contract value of Rs 93.47 crore from Chhattisgarh State Electricity Board, Raipur.
Lancor Holdings surged 7.12% to Rs 452 after its board approved share split from the face value of Rs 10 each to Rs 2 each.
MIRC Electronics up 12.98% at Rs 24.80 on reports that two of the three founders of the firm have broken off with the third and started talks with rival Videocon and Future Capital to sell a substantial stake in the main holding company that holds stake in the MIRC Electronics
HTMT Global rose 1.06% to Rs 434.45 after it said it will participate in applying telecom license.
India's top motorcycle maker, Hero Honda Motors declined 1.56% to Rs 733.15 even after it reported 4.3% rise in sales to 3,14,567 in September 2007 over September 2006.
Asian markets extended their recent rally on Monday, 1 October 2007. South Korea's Seoul Composite (up 0.83% at 1,962.67, Singapore's Straits Times (up 1.32% at 3,755.22) and Taiwan's Taiwan Weighted (up 0.13% to 9,488.50) and Japan's Nikkei (up 0.36% at 16,845.96 after it opened on a weak note) edged higher.
European markets, which opened after the Indian markets, slipped into the red again after Indian markets closed today. Earlier, European markets had recovered from a subdued start. Germany’s DAX (down 0.14% to 7,850.33), UK’s FTSE 100 (down 0.15% to 6,457.50) and France’s CAC (down 0.44% to 5,670.79) edged lower.
US stocks and bonds slipped as the dollar fell to a record low on Friday, 28 September 2007, amid concerns that US economic growth would continue to slow. The Dow Jones industrial average lost 17.31 points, or 0.12%, at 13,895.63. The Standard & Poor's 500 Index fell 4.63 points, or 0.30%, at 1,526.75. The Nasdaq Composite Index fell 8.09 points, or 0.3%, to 2,701.50.
US crude for November 2007 delivery lost $1.23 to settled at $81.65 a barrel on Friday, 28 September 2007, below its all-time high of $83.90.
Sensex ends marginally above 17,300
Despite opening on a positive note, weak global cues and steadfast rupee climb saw the Sensex enter into negative territory. As selling gained momentum, the index shed over 146 points and nearly slipped below 17,150 before a bout of recovery saw it trim its losses. A positive close in most of the Asian markets and a sustained buying in energy, cement, and capital goods stocks helped the market enter into positive territory by afternoon. The market witnessed volatile trades for the later part of the trading session, but held firm above the 17,300 level. Substantial buying support in heavyweight, pharma, and oil and gas stocks led the Sensex surge to touch the day's high of 17,425. The Sensex finally wrapped up the session at 17,329, up 38 points. The Nifty ended the session at 5,069, up 48 points.
The market breadth was positive. Of the 2,840 stocks traded on the Bombay Stock Exchange (BSE), 1,637 stocks advanced, 1,131 stocks declined and 72 stocks ended unchanged. Most of the sectoral indices closed with gains. The PSU metal index rose by 1.97% followed by the BSE HC index (up 1.40%) and the BSE Oil & Gas index (up 1.26%).
Heavyweights led the upsurge in the market. Energy stocks were in the limelight on firm buying support. Reliance Energy vaulted 11.94% at Rs1,349 and NTPC jumped 6.49% at Rs206. Among the other major gainers Reliance Communication shot up by 4.48% at Rs612, ONGC increased by 4.09% at Rs997 and Cipla soared by 3.43% at Rs189. Ambuja Cement added 2.47% at Rs147, Grasim Industries gained 2.45% at Rs3,600 and Dr Reddy's Lab moved up by 1.68% at Rs660. Select counters, however, finished on a weak note. SBI shed 2.93% at Rs1,894, HDFC Bank dropped 2.44% at Rs1,404, Bajaj Auto declined by 2.19% at Rs2,484 and BHEL lost 2.10% at Rs1,990.
Over 3.39 crore Ispat Industries shares changed hands on the BSE followed by Reliance Natural Resources (3 crore shares), Tata Teleservices (1.99 crore shares), IKF Technologies (1.85 crore shares) and Himachal Futuristic Communications (1.80 crore shares).
Valuewise, Reliance Energy registered a turnover of Rs556 crore on the BSE followed by Reliance Capital (Rs492 crore), Reliance Natural Resources (Rs282 crore), Reliance Industries (Rs204 crore) and Reliance Communications (Rs190 crore).
Mad rush for telecom licenses
US telecom giant AT&T Inc. is all set to begin a new innings in India. This time, AT&T will partner diversified auto major Mahindra & Mahindra Ltd. (M&M). The two have reportedly applied for telecom licenses in all 22 circles.
It may be recalled that in December 2004, AT&T sold its stake in Idea Cellular to Indian partners the Tata Group and Aditya Birla Group.
AT&T filed the application with Department of Telecommunications (DoT), in partnership with Mahindra Telecommunications Pvt. Ltd., a part of the M&M.
"This is an important step toward participating in India's upcoming spectrum allocation proceedings," AT&T said in a statement.
Indian regulations allow Foreign Direct Investment (FDI) of up to 74% in the telecom sector.
Separately, real estate companies DLF and Omaxe, IT solutions firm Tulip IT and cable television provider Hinduja TMT applied for telecom licences on the last date for filing applications.
AT&T and Tulip already have licences to provide National Long Distance (NLD) and International Long Distance (ILD) services in India.
DLF and Omaxe join other real estate firms like Indiabulls Real Estate, Unitech and Parsvnath Developers in applying for telecom licenses. Over the last few weeks, the DoT has received about 250 new applications for new universal access service licences.
Earlier, a newspaper reported that the DoT was planning to introduce a lock-in period to eliminate non-serious players, amid a mad rush among companies to obtain new telecom licenses before the window closes today.
As per the proposed lock-in conditions, a company will be able to sell telecom licenses only after operating for a certain number of years. At the same time, promoters will not be able to reduce their shareholding beyond a certain limit.
Some industry analysts say the scramble for getting new telecom licences is due to telecom regulator TRAI's latest recommendation that the number of players in a circle should not be capped.
TRAI has also recommended that the current norm of allocating 2G spectrum based on the number of subscribers should be increased several times before existing players are allocated fresh spectrum.
If these TRAI recommendations are accepted by the DoT, then several new applicants will be eligible to get spectrum to launch telecom services.
However, some experts are of the view that the rush for telecom licences is aimed at making a quick buck by first getting the licences and then selling the same to overseas players at a hefty premium.
To get to the bottom of the matter, the DoT is believed to have set up an agency to establish the actual identities of the promoters and shareholders behind the new applications for telecom services.
Telecom Minister, A Raja, said on Sept. 24, that the ministry will prepare a fresh set of guidelines for grant of licences to new applicants. "I have asked DoT secretary, DS Mathur to form a committee to frame guidelines for grant of licence to new applicants,” Raja said.
Trading Calls
Buy Reliance Energy with a stop loss of Rs 1120 for a short-term target of Rs 1350.
Buy Ranbaxy Laboratories with a stop loss of Rs 418 for a short-term target of Rs 504.
Buy RNRL with a stop loss of Rs 75 for target of Rs 135.
Buy Reliance Capital with a stop loss of Rs 1474 for target of Rs 1874.
Disclaimer: Wild targets, may go wild ! Its your money, think, research and invest!
Subscribe to:
Posts (Atom)