INDIA INTELLIGENCE REPORT

 

Business & Economy

Business as usual, say
IT firms in Chennai

What is India News Service, Friday, 31 December 2004, 2000 hrs IST


Clients of major Indian information technology firms are not panicking, nor have clients cancelled or rescheduled their planned visits to meet vendors in Chennai following the tsunami wave that hit the city on December 26, according to sources in software companies. 

Clients were, however, curious to know whether the tsunami affected their work that is outsourced from vendors and done in the city. 

The executive team management and respective account managers in various companies clarified that there was no effect on the development centres due to tsunami, said a source. 

Some clients enquired about the well being of employees in the development centres, the source said. 

Immediately after the tsunami strike, IT firms started issuing frequent updates to their clients on the effects of the waves. 

Clients were assured that their work was not affected in the city, and that there was nothing to worry, said an official in Satyam Computer Services Ltd, which has some development centres in the city.


Anil proposes bonus issue but the board says no: Details of the crucial Reliance Industries Ltd (RIL) board meeting in Mumbai on Monday available on Thursday indicate that Anil Ambani had made a diversionary move to stall the proposal for buyback of shares, but found himself up against the board. 

Permanent pension body in place: The government today issued an ordinance to establish a full-fledged Pension Fund Regulatory Development Authority to oversee pension management. 

Indian lessor can lower airline costs: With the air transport market picking up sudden pace, there is need for a strong lessor to cater to the financial needs of Indian carriers, according to ATR. The dominant turboprop player here hopes to sell at least 50 of its small planes over the next five years.

FLAG Tele trains legal gun on VSNL: FLAG Telecom, the global telecom carrier of the Reliance group, will initiate arbitration proceedings against Videsh Sanchar Nigam Limited.

Market takes a breather, down 45 points: The Bombay Stock Exchange (BSE) sensex snapped a five sessions gaining streak and ended 45 points down at 6523 points on Thursday as the expiry of the December future contracts and fresh alert to all areas hit by the killer tsunami, sparked heavy selling.

Oil companies dig coffers to provide relief: ONGC and IOC have contributed Rs 15 crore each to the Prime Minister\92s Relief Fund for the rehabilitation of those hit by Sunday\92s death wave.

Govt mulls restrictions on exports of iron ore: The government is \93actively considering\94 ways to restrict export of high-quality iron ore and may go in either for canal.

Decision on A-I\92s 50 aircraft buying plan next month: The government is in the process of giving clearance for 18 Boeing 737-800s, to be inducted by A-I for their low cost airline.

MFs still to reach out to retail base: Though 2004 was a stellar year of sorts for the mutual fund industry, it would be remembered as one where the objective of enlarging the retail investor base remained pure rhetoric. 

ICICI Bank warns of rate pressures: ICICI Bank has said a sharp and sustained rise in interest rates could adversely affect its business and financial performance. 

Karnataka Cabinet for fresh pact on infrastructure project: Nandi Infrastructure Corridor Enterprise is not keen on making any changes in the agreement already signed with the government.

VAT regime from April 1, asserts Chidambaram: Rejecting an "all or nothing'' or "feast or famine'' approach, the Union Finance Minister, P. Chidambaram, on Thursday asserted that the State-level value added tax (VAT) regime will come into force on April 1, 2005.


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