Manmohan slams Pakistan-based terror

Prime Minister Manmohan Singh on Saturday displayed a willingness to bat on the front foot on cross-border terrorism when he said, in his speech at the United Nations General Assembly here, that progress in resolving the Kashmir issue would require that Pakistan prevent its territory and areas under its control from being used to facilitate terrorism aimed at India.

Striking a strong note before the world body on the eve of his much-vaunted meeting here with Pakistani Prime Minister Nawaz Sharif, Dr. Singh said that even if Pakistan-based “terrorist machinery” were “shut down,” there must be a clear understanding that Jammu and Kashmir was an integral part of India, and in this context there could “never, ever, be a compromise” on India’s territorial integrity.

Epicentre of terror

Though Dr. Singh reiterated that India was “committed sincerely” to addressing this territorial question through bilateral dialogue on the basis of the Shimla Agreement, he underscored India’s persisting concerns at “state-sponsored cross-border terrorism,” particularly owing to the fact that the “epicentre of terrorism in our region is located in our neighbourhood in Pakistan.”

Underscoring some of the wider issues relating to terrorism and the nuclear threat, Dr. Singh said that 25 years after the former Prime Minister, Rajiv Gandhi, put forward a comprehensive Action Plan for a Nuclear Weapon-free and Non-violent World Order, “We must strengthen efforts against nuclear proliferation and pursue time-bound, universal, non-discriminatory, phased and verifiable nuclear disarmament,” and guard against “terrorists and non-state actors gaining access to sensitive materials and technologies.”

A dominant theme in Dr. Singh’s speech was India’s firm belief in multilateralism as the vehicle to tackle a variety of global policy challenges, from universal concerns such as growth and poverty in a post-recession world to specific strategic questions relating to recent developments in Syria, Palestine and Afghanistan.

In the context of multilateralism, Dr. Singh not only flagged India’s successful partnerships with other developing nations in Africa, for example, but also exhorted delegates to press ahead with long overdue reform of the United Nations, including the Security Council.

Dr. Singh said the U.N.’s 70th anniversary in 2015 would be the moment to ensure that “the U.N. is ready for this century by completing the much-needed reforms of the United Nations and its Security Council.”

Along with other BRICS nations, Dr. Singh’s efforts in this mission have gathered some momentum after U.S. President Barack Obama backed India’s bid to become a permanent member of the Security Council during his 2010 visit to India.

However, at the U.N. General Assembly this weekend, Dr. Singh cautioned: “Never has scepticism about the U.N.’s capacity… been higher, or the external environment less propitious for multilateralism.” The U.N. enjoyed the most success when it based its decisions on “the widest possible consent and balancing equitably the needs and responsibilities of nations at different stages… of development,” he said.

The Hindu

Philanthropy has to be spontaneous, can't be forced: Azim Premji

Referring to the issue related to Corporate Social Responsibility (CSR), which has been made mandatory by the new laws that govern companies, IT czar Azim Premji today said philanthropy cannot be forced and it has to be spontaneous.


Premji, founder-Chairman of WiproBSE -0.49 % - India's third largest software services exporter added however that efforts towards social good need to be "meaningful" and the government alone is not responsible for "social good".

"They are trying to force something. It should be spontaneous," Premji said while commenting on the issue of mandatory CSR during his address at the All India Management Association's (AIMA) 40th national convention here.

The billionaire philanthropist added that giving back to the society is important for the growth of a better world, but it should come from within.

Premji said the stipulation of spending 2 per cent of profits should not become a tax at a later stage.

Under the new Companies Act, 2013, all profitable firms with a sizable business will have to spend every year at least 2 per cent of three-year average profit on CSR works.

This would apply to companies with turnover of Rs 1,000 crore and more, or net worth of Rs 500 crore and more, or a net profit of Rs 5 crore and more.

The new rules, which would be applicable from fiscal 2014 -15, also require firms to set up a CSR committee of their board members, including at least one independent director.

However, Premji said: "If things have to change in the society then the involvement of the whole ecosystem is must. One cannot rely on government alone to do social good and one has to become a co-sharer of the goal and the outcome."

Outlining the key factors for making CSR successful, he emphasised on the need to define the purpose and scale of CSR activities and choose a focus area.

Premji, however, cautioned against making CSR a substitute for personal philanthropy.

"There should be a distinction between a company activity which is CSR and personal activity that is philanthropy," he added.

Known for his business acumen as well as philanthropy, Premji said the company's and entrepreneur's responsibility to the society are two different issues.

In 2010, Premji had donated 8.7 per cent from his personal stock-holding in Wipro for philanthropy forming the endowment for the Azim Premji Foundation, a not-for-profit organisation set up in 2001.

In February, he announced transfer of 295.5 million Wipro shares worth Rs 12,300 crore held by certain entities controlled by him to an irrevocable trust.

The Economic times

Manmohan-Obama meet boosts defence, nuclear initiatives

Within hours of the White House meeting between Prime Minister Manmohan Singh and U.S. President Barack Obama, the two countries released a joint statement that showcased the breadth of their cooperation as well as highlighted joint naval exercises, promised momentum on investment treaties, reaffirmed their commitment to specific energy-sector projects and counterterrorism strategies.

Among the key initiatives flagged in the joint statement, India particularly welcomed the U.S. offer of membership in its ‘Global Entry’ Trusted Traveler Network programme, a scheme only offered to select countries, which will expedite the entry of approved Indian travellers at the U.S. border.

Despite U.S. officials remarking on several recent occasions that they had “specific concerns” about India’s nuclear liability law, Friday’s joint statement welcomed the announcement that Indian Nuclear Power Corporation of India Limited and U.S. nuclear company Westinghouse had concluded a Preliminary Contract to develop a nuclear power plant in Gujarat. It also reiterated that both nations remained committed to a “full and timely implementation” of the bilateral civil nuclear agreement.

On the subject of fighting terrorism, the two leaders not only agreed to undertake even more cooperation intelligence sharing homeland security cooperation, but they concurred in their strong condemnation of the September 26 terrorist attack in Samba in Jammu and Kashmir. They further called upon Pakistan to “work toward” bringing the 2008 Mumbai terror perpetrators to justice.

Defence cooperation, considered by many to be the “centrepiece” of the bilateral relationship, was applauded by Dr. Singh and Mr. Obama, who said that the way to take this forward in terms of defence technology transfer, joint research, co-development and co-production was by endorsing a Joint Declaration on Defence Cooperation.

Significantly the U.S. President was said to have welcomed India’s decision to participate in the Rim of the Pacific (RIMPAC) naval exercise, which will be hosted by U.S. Pacific Command in 2014.

Another key area of bilateral interest, economic policy, got top billing in the discussions on Saturday. While the usual plaudits were issued on the volume and growth of two-way trade there also appeared to be a renewed vigour in the pursuit of a bilateral investment treaty, negotiations surrounding which appeared to have hit an impasse until recently.

Similarly despite growing international and lobbyist pressure on India to transition to the Montreal Protocol and scale down its use of certain gases the two leaders appeared keen to make progress on this front and agreed to “immediately” convene the India-U.S. Task Force on Hydro fluorocarbons to discuss options that based on “economically-viable and technically feasible alternatives.”

A number of third countries of strategic interest to New Delhi and Washington were also discussed on Friday, it was apparent, and in addition to covering ground on Syria, Iran and East Asia more broadly, Dr. Singh and Mr. Obama revisited the questions emerging on the endgame for Western powers quitting Afghanistan next year.

Specifically, the joint statement reflected a consensus on the view that violent extremists could only be countered by coordinated international support to build the capacity of Afghan National Defence and Security Forces an effort towards which both countries said they would remain committed during the critical transformation decade during 2015-2024.

The tone of the statement of the leaders themselves reflected a sustained warmth and personal chemistry that has been the hallmark of bilateral ties during the tenure of Dr. Singh. Variously the two nations alluded to each other as “partners of first resort” and underscored that their relationship had “crossed a threshold.”

The Hindu

Let zero schemes finance growth, RBI

The RBI has done immense disservice to industrial growth in the short term by asking banks not to offer popular financing schemes for consumer durables dressed up as zero-interest equated monthly instalment (EMI) schemes. Industrial growth has been extremely weak for an extended period and the forthcoming festival season is an opportunity for assorted consumer durable companies to step up their sales.

The zero-down-payment, zero-processing-fee, zero-interest EMI schemes an increasing number of companies offer on a variety of products are good for both consumers and for companies. The RBI's move scuppers this opportunity to a large extent.

It is not the case that consumers are unaware that these financing schemes entail real costs on account of interest and documentation. They are aware that credit card-issuing banks charge a financing cost that product companies bear, to tempt consumers with "zero" offers. But this is not their concern. Nor should it be the RBI's. If the RBI is worried about the rates banks offer, it is welcome to examine the banks' books and ascertain if any rule is being violated.

Why should the bank regulator interfere with the behavioural economics at work when consumers prefer "zero" finance options on a higher price that bundles financing cost with the product price to the transparencyof a lower product price and an explicit overlay of financing cost? Nor are consumers irrational. The cost would be lower, when borne by the company for multiple transactions all together, than when financing is offered to individual consumers.

The only beneficiary from the RBI's move is the buyer with sufficient purchasing power to not need a financing scheme, now that the product would be priced lower, taking out the financing cost by which price had been marked up earlier. Product sales and industrial growth would suffer, for the benefit of a tiny elite. This is a fetish for transparency that benefits no one except bean counters at the RBI. The RBI should withdraw these strictures gracefully and wish the economy a Happy Diwali.

source:Economic Times

Google's Motorola eyes BlackBerry employees

With Blackberry shedding staff in its hometown of Waterloo, Ontario, other tech companies, including Google's Motorola Mobility unit, are moving to take advantage of a growing pool of local talent. 

Motorola Mobility said it plans to set up a new hub in Waterloo, located about an hour's drive west of Toronto. 

"We have a small space right now and we're looking to grow considerably," said Derek Phillips, engineering director for Motorola Canada. 

He declined to specify the number of new hires expected, but said the company was seeking computer science and engineering talent. 

Google acquired Motorola Mobility last year in a $12.5 billion deal that gave it ownership of a large portfolio of communications patents. It has since moved to revamp the company's money-losing mobile phone business. 

Google separately has its existing Canadian development headquarters in Waterloo, which boasts an in-office slide. 

The company is one of hundreds of tech players with a presence the city, attracted in part by graduates of the University of Waterloo's highly ranked computer science, engineering and technology programs. 

The vast majority of local technology companies are small startups looking to make a splash such as the one BlackBerry, then called Research in Motion, made after it pioneered pocket email in the 1990s. 

But times have changed for BlackBerry, which said on Friday that it would cut about 4,500 workers, more than a third of its global workforce, and post a quarterly loss of nearly $1 billion. 

The job cuts are expected to strike a blow to the city and regional economy, given the knock-on-effect on retailers, the property market and local service providers. 

The latest layoffs follow other cuts over the past three years as Blackberry bled market share to competitors such as Apple Inc and phones that use Google's Android operating system. 

On Monday, BlackBerry said it agreed to sell itself for $4.7 billion to a consortium led by its biggest shareholder, Fairfax Financial Holdings Ltd. 

It is unclear if the sale, if it goes through, will result in further job cuts. 

Start-ups hiring

Phillips did not link Motorola's expansion to BlackBerry's troubles, but said the local talent pool was key to the area's appeal. 

"The goal is to try to get just as many people who are interested to come out and hire as many people as we can. I think as long as we can find really good people, we will find a way to hire them," he said. 

The hiring is not expected to come close to replacing the hole left by the BlackBerry cuts. But members of the local technology community noted that Motorola is not the only one looking to expand in the region. 

Mobile payments company Square Inc plans to establish a permanent office in the area in 2014, spokeswoman Lindsay Wiese told Reuters. 

Avvey Peters, head of external relations at Communitech, a non-profit that bills itself as a regional hub for the tech sector, said she knew of about 1,000 job vacancies in the industry. She estimates the sector employs about 30,000 people. 

"Certainly everybody's watching. Everybody's feeling for individuals who either have been laid off or are going to be," she added. "The local ecosystem created BlackBerry, not the other way around."

source:Times of India

Ford CEO leading race to head Microsoft: Report

 Ford CEO Alan Mulally has reportedly emerged as the lead candidate for the top seat at Microsoft.

Technology website AllThingsD said that Mulally has vaulted to the forefront of the candidates being considered to replace retiring Microsoft chief Steve Ballmer.

Earlier, there were reports that at least three of the top 20 investors in Microsoft want a turnaround expert to succeed Ballmer and have urged the technology giant's board to consider Ford Motor CEO Alan Mulally and Computer Sciences Corp CEO Mike Lawrie for the job.

Investors are keen on Mulally and Lawrie as both have histories of successfully turning around companies.

Under a succession plan at Ford outlined last November, Mulally, 68, is expected to stay on as CEO until at least the end of 2014. However, according to reports, Mulally may step down sooner than planned if he gets an interesting offer.

Microsoft recently inked a deal to buy Nokia's phone business. The deal also brings Stephen Elop, who ran Microsoft's business software division before jumping the ship in 2010, back to the company. Elop too is said to be among the list of contenders to succeed Ballmer.

source:Times of India

Tata Teleservices, Sistema and Aircel in merger talks

Tata Teleservices, Russia's Sistema JSFC and Aircel, controlled by Malaysia's Maxis, are in exploratory talks for a three-way merger to create India's third-largest telecom company by subscribers, said three persons familiar with the development. 

If the transaction materialises, it will allow the companies to cut costs, share infrastructure and pool capital. 

Deal could be complicated

It will create a combined entity with 13.5 crore subscribers. 

A person with direct knowledge of the development said a three-way merger would be complicated and will take some time to fructify. "There was a fair amount of discussion between Tata Teleservices and Sistema. The discussion between Tata Teleservices and Aircel is very new. These are early days," he said. 

Tata Tele, Sistema, Aircel in initial merger talks Another person familiar with the development said, "I know that a few weeks ago, the three companies were trying to put together this idea of a merger." Both these people declined to be named as the talks are confidential and still developing. 

Both Tata Teleservices, which is 26% owned by Japan's largest mobile company NTT DoCoMo, and Aircel have been struggling to pare their debt - around Rs 23,000 crore and Rs 22,000 crore, respectively. Standard Chartered Bank is advising Aircel on its debt-restructuring exercise. 

Sistema, on the other hand, is cash rich and would be the dominant shareholder if the three companies agree to merge. The company, which is partly owned by the Russian government and operates in India through a joint venture with Shyam Telecom, has identified consolidation as the route to growth in the Indian market. 

"The Indian telecom market was ready for consolidation and one shouldn't be surprised to see more than two operators come together," Sistema Global Chief Financial Officer Vsevolod Rozanov told ET recently. "One could expect the top seven players to shrink to just four and that foreign investors will lead the consolidation of this market." 

Rozanov, however, declined to comment on a specific query on the merger talks involving Sistema Shyam Teleservices (SSTL) with Tata Teleservices and Aircel. 

Spokespersons for both Aircel and Tata Teleservices said they would not comment on market speculation. 

Sistema Shyam's pan-India licence to offer CDMA services in 22 circles was cancelled by the Supreme Court last year. But the company won back airwaves for eight states earlier this year and now has more than 9 million customers. 

The government will shortly announce revised M&A guidelines for the sector, a move that is expected to trigger a shakeout in the industry. But foreign operators such as Sistema are concerned that the new policy might make it compulsory for the buyer to pay an additional amount to the government for the acquired airwaves, thereby increasing the total acquisition cost. Industry experts said consolidation was the way forward and any deal would be a win-win for the three companies. 

"Sistema will receive CDMA footprint of Tata and can strengthen its voice subscribers while Aircel and Tatas can cut their expenditure by pooling their capital and share infrastructure," said BK Syngal, senior principal at Dua Consulting. 

The country's leading telcos are also preparing for a wave of consolidation. Last week, SingTel chief Simon Israel urged Bharti Airtel, in which it holds a 32.34% stake, to lead such moves in the Indian telecom market while a few days before him, Vodafone India CEO Martin Pieters said he saw his company as the natural consolidator.

source:Times of India