2g spectrum

The 2G spectrum financial scam in the Telecommunications and IT Ministry under A.Raja is
noteworthy as the largest political corruption case in modern Indian history, amounting to a
record $40 billion loss to the Government of India. The modus operandi was devious and
simple enough - a scarce national and natural resource (telecom bandwidth-spe0ctrum) was
grossly undervalued and offered to a chosen few with vested interests, on a dubious 'First-
Come-First-Served' basis, whereas it should have been put under a transparent auction
system, as advised by some law abiding officers in the Department of Telecommunications,
the Ministry of Finance, and even the Prime Minister's Office.

The bandwidth-spectrum allocation of 2G bandwidth had come under criticism for gross
irregularities. An FIR filed by the CBI claims that the allocation was not done as per market
prices, resulting in a scam worth 200,000,000,000 (US$ 4,540,000,000)[3]. However it had
been alleged by Arun Jaitley of Bhartiya Janata Party that the scam is worth around Rs.
1,70,000 crores (US$37.5 billion) . The Comptroller and Auditor General holds A. Raja
personally responsible for the sale of 2G spectrum at dirt cheap 2001 rates in 2008, resulting
the previously mentioned loss of up to Rs. 1.70 lakh crores (US$40 billion) to the national
exchequer. [4] In August, 2010, evidence was submitted by the Comptroller and Auditor
General (CAG) showing that A. Raja had personally signed and approved the majority of the
questionable allocations.[5] Although the political opposition was demanding his resignation
over the 2G spectrum scam, A. Raja initially refused to resign stating his innocence, and this
view was backed by his party president M.Karunanidhi. [6].

The financial scam eventually led to Raja's resignation [7] on the 14th of November, 2010.
There will be further criminal investigation and action on A. Raja with reports being filed by
the Comptroller and Auditor General (CAG) and the Central Bureau of Investigation (CBI).
 Ratan tata
DEHRADUN: Tata Group Chairman Ratan Tata on Monday said he did not enter the airline business
as he was not comfortable with the idea of bribing a minister, as had been suggested by an
industrialist.

He regretted that despite being a pioneer in the airline industry, the group faced enormous problems
in setting up a domestic airlines in collaboration with Singapore Airlines.

"We approached three Prime Ministers also. But an individual thwarted our efforts to form the
airlines," Tata said, recalling how he spurned the suggestion by a fellow industrialist.

He, however, did not name the individual. Amid Tatas' efforts to set up a joint venture with Singapore
Airlines, a fellow industrialist had said: "You are stupid people. The Minister was asking for Rs 15
crore. Why didn't you pay the money?"

Narrating the incident, Tata said, "I did not want to go to the bed knowing well that I set up an airlines
by paying Rs 15 crore."

Ratan Tata's predecessor, JRD Tata, had set up the first commercial airlines of India 'Tata Airlines' in
the 1930s and that was later in the 1950s taken over by the Government and turned into Air India.

After taking over the reins of the group, Ratan Tata had tried at least on three occassion to pursue the
aviation business and accordingly moved the government of the day in 1995, 2000 and 2001.

The last time (2001), it was the BJP government when Tatas and Singapore Airlines withdrew as sole
bidders their joint bid for Air India, citing political opposition to the sale.

Earlier in 1995 and subsequently in 2000, the consortium had made concerted efforts to take stake in
Air India, but the controversies that engulfed disinvestment through a strategic sale in a public sector
undertaking and the unions' agitation prevented materialisation of the bids.

Tata, who took over the group in 1991 and has since overseen the global expansion of the group, said
he doesn't want to change his retirement due in 2012.

"I don't want to change my deadline I set for my retirement. There are lots of sacrifices, one has to
make in terms of personal life. I wanted my life back. I want to enjoy the things that I wanted to do,"
the top industrialist said here.

He said there are two kinds of people, one who goes back home on his own feet, and another who
goes in a box. "I have told my shareholders that I do not want to go back in a box," he said.
 inflation

With China and India accounting for nearly 50% of the world’s economic growth over the past 10
years, investors will have to significantly realign their portfolios in favour of these economies, says
Craig Swanger , ED and head of Macquarie Global Investments .

What does QE2 mean for India in the short term as well as over the long run?

Shorter term impact relates to the additional liquidity that will be injected into the US economy. Of
particular interest to Indian investors is the fact that much of this liquidity will, in fact, leave the
country and find its way to more attractive investment climates, such as India. The longer-term
implications are less about the impact per se and more about the fact that the Fed has felt the need
to take such measures. This does not provide encouraging news for long-term investors in the US.
The correlation between the Sensex and the Dow is still very high, particularly in bear markets. So
poor news for the US economy will flow through to the Sensex in one way or another.

uniliver

NEW DELHI: Hindustan Unilever has chalked out an ambitious plan to halve water usage and greenhouse gas
emissions by 2020 as the manufacturer of Surf detergent and Lakme cosmetics launched the Unilever
sustainable living plan across the world on Monday.

For a company whose products are used two billion times a day in nearly 170 countries, small steps could make
a big difference to the environment and, at the same time, save costs, Harish Manwani , chairman of India’s
largest packaged consumer goods company and president, Asia, Africa and Central & Eastern Europe, Unilever,
told ET.

The Unilever sustainable living plan — announced simultaneously in New Delhi, London, Rotterdam and New
York on Monday — targets to halve greenhouse gas emissions, waste production and water usage by the
company and its suppliers, and source all its agricultural supplies such as tea and palm oil from sustainable
sources. The measures will be quantified and be implemented by Unilever CEOs across the world, Mr Manwani
said.

“Chairmen and CEOs of countries, including India , have to deliver. We don’t yet have all the answers on how the
plan will work on all the brands. But it is a 10-year plan and sets out over 50 social, economic and environmental
targets,” he said. Pointing out to specific examples of how the sustainability plan would be linked to brands, Mr
Manwani talked about the company’s low-cost in-home water purifier, Pureit, which does not require electricity or
continuous tap water supply.

The company also plans to help one billion people in Asia, Africa and Latin America improve their health and
well-being by promoting the use of its Lifebuoy soap to change their hygiene habits.

Unilever also plans to launch in Asia and Africa its Comfort One Rinse, a fabric conditioner that enables people to
rinse clothes in one bucket of water instead of three, saving up to 30 litres of water a wash. “If all our laundry
brand users in Asia and Africa use Comfort One Rinse, it would save over 500 billion litres of water a year,” said
Mr Manwani.
Commerce department readies strategy to
double exports

NEW DELHI: The government will roll out a three-year plan to double the country’s exports to $400
billion as it looks to address growing concerns over the burgeoning trade deficit.

The commerce department is preparing a strategy paper that will focus on sectors with growth
potential such as engineering goods, chemicals and pharmaceuticals, commerce secretary Rahul
Khullar said. The paper is expected to be ready in two months.

“The estimated balance of payment gap of $125 billion for the current year is 10% of the GDP (gross
domestic product), which needs to be brought down,” Mr Khullar said on Tuesday at the release of a
study of engineering sector in India and China.

“The strategy paper will look at how, in three years from now, we can ramp up exports from $200
billion to $400 billion,” he said, adding exports need a strong boost to keep the deficit under check.

India’s exports may exceed the $200 billion target in the current fiscal year, after some key sectors
recovered strongly in the last few months. Exports had suffered a big hit in 2008-end due to the
global economic downturn.
The strategy paper will lay down policy measures to support strong growth.

“It is clear that we won’t get that kind of growth in sectors such as tea or coffee,” he said. The
engineering goods sector holds promise with exports expected to touch the pre-crisis level of $45
billion this year.

“To maintain its share in total exports, engineering exports has to grow to at least $90 billion,” Mr
Khullar said, adding that the government would look at suggestions given by the industry to help it
improve competitiveness based on China’s experience.
Government support, high-quality infrastructure and a strong SEZ policy helped Chinese engineering
industry to export $956 billion worth equipment in 2008, compared with $137 billion in 2001, said
Aman Chaddha of industry body Engineering Exports Promotion Council.