Business Environment Prince Dudhatra 9724949948

8/8/2019 Business Environment Prince Dudhatra 9724949948

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prince dudhatra-9724949948

Welcome Welcome Prince dudhatraPrince dudhatra


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sector towards

economy GDP Growth Rate: 8.5%

Agricultural Sector: 17.5% Industrial Sector: 20% Service Sector: 62.5%


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AgricultAgricult

uraluralSectorSector


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The rainfall of the current year isrecorded 102%. There is a deficit of rainfall in 173 districts

of country. In 67 districts there is normal rainfall.

In 240 districts there is higher rainfall.

The heavy rainfall is recorded in thefollowing states:

Assam, Kerala, West Bengal andGujarat.

The lowest rainfall is recorded in thefollowing states:


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tons of food storage capacitywithin 5 years Minister of State for Agriculture and Food

K.V. Thomas on last Friday said India willadd 17 lakh metric tons of food storage

capacity within a period of five years inorder to prevent the rotting of food grainsthat are stored in the open.

"At least 50 percent of the capacity can bedone by December 2011, the rest by2012. Thus it will be able to improve ourstorage capacity with modern technology

step by step,"


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Groundnut output inGujarat rises by 35.5%.

Gujarat is Indias leading producer of groundnut.

The production was raised from 1.38million tons to 1.87 million tons in thecurrent year.

The basic reason behind this is theexpansion in the area under cultivation

for the groundnut.


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its OMSS(open market sales scheme). Food corporation of India steps up efforts to

clear wheat stock. FCI signs MOU (Memorandum of

Understanding) with NSEL, The agreement isvalid up to 31 st March 2011.

NSEL (National Spot Exchange) will start

conducting weekly auctions from nextWednesday on 20/10/2010.

The floor price of wheat will be Rs. 1252.15 aquintal for ex-go-down sale in Delhi.


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Low stocks to push upturmeric prices again. The production of turmeric in 2008-09

stood at 42 lakh bags where as in theyear 2009-10 it stood at 48 lakh bags.

Turmeric supplies will remain down ataround 11-12 lakh bags till the fresharrivals come around in the month of

January.

Thus there will be shortage of turmeric inthe market and as a result the price willbe increase.


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Sugar mills smell big gainsin global market The sugarcane crop this year is pegged at

around 346 million tons. Sugar output is expected to be not less

than 25.5 million tons as against 19million tons previous year. The price of sugar will be in the range of

Rs. 2470-2500 per quintal.

India plans to export 2 million tons of sugar.

Sugar mills can realise a premium of Rs.

400-500 per quintal in the export.


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lakh tons mark in theFY2011. The target for coffee exports for the fiscal

year is 2.1 lakh tons. In the current year India have exported

1.56 lakh tons in the first 6 months. India sends 70% of its production to theexport market.

The export will be higher because of higher

production and a fall in production inother countries. Thus it leads to asupply-demand mismatch internationally.


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Tea deficit to widen onpest attack, rain. Assam is the leading producer of tea in the

country.

The tea production is declined by 20million kg. in the current year due toheavy rain in Assam and in West Bengal.

The production of the current year is 585million kg.

India is likely to face a shortfall of about60-70 million kg of tea.


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IndustrIndustr

ialial

SectorSector


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industrial sector

towards economy GDP Growth Rate: 8.5%

Industrial Sector: 20%


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CAPITAL GOODS SLOW IIP TO

5.6% IN AUGUST The industrial growth fell down due to

extremely low growth in capital goods. %which includes 9 26 share off IIP index

,The manufacturing sector which. % ,includes 79 4 share of index was the

prime reason for the slow pace of. . % ,growth It was 5 9 in August 2010 where. % .as it was 10 6 in 2009


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In August the growth of capital goods- . % , %was 2 6 only where as it was 72 in.July 2010

The fortune of this segment have been.decided by the cable wire industry

Wire industry had registered an over% .200 rise in July 2010

..Contd


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In August 2009 the industrial growth had. %get the double digits level at 10 2 for the first time since economy was slow in.2008

. %The growth of August was only 5 6, . %which was 15 2 in July 2010

Industrial production growth rate nearly- .halved to a 12 month low of 5 6 per cent,in August pulling down the Sensex by 136

.points

..Contd


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,IP OVER ALL GROWTH OF TWO YEARS


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ARCELOREMITTALS TWO INDIA


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ARCELOREMITTALS TWO INDIAPLANTS UNLIKELY TOMATERIALISE:LAXMI MITTAL

He wants to realize prior plan about plantsetup in India.

His new strategy.

Arcelormittal had announced a 12 milliontone steel plant in Jharkhand in 2005followed by an identical plant in Orissain 2006.


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Contd

M itta ls o w n e ffo rts to exp an d in C h in a h ave b e en h am p e red b y B e ijin g 's

.in w a rd in vestm en t ru le s

H is a n n ou n ce d on ly to take m in ority sta kes in tw o m ed iu m sized C h in a b ased stee lp rod u cer ra th e r th a n to take

.con tro lo f la rg e ven tu re s

,Last yea r th e com p an y an n ou n ced

p lan to se tu p sm a lle r stee lm ill in

K a rn a taka a n d p rop osed 1 lakh cro re.fo r p ro je cts


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India is world 5 th fifth producer of steel.Production of steel in India (in million ton)-2007-53.12008- 55.2

2009- 56.6ArcelorMittal is now the largest steelmaker inthe world by turnover as well as volume,controlling 10% of the total world steeloutput.

The production of ArcelorMittal are2009- 77.5 million tons.2008- 103.3 million tons.2007- 116.4 million tons.

.Contd


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JAL TO EXPAND CEMENTMANUFACTURING IN GUJARAT

Jaiprakash Associates Ltd has entered in toan agreement with Dighi Port Ltd forsetting up a port based grinding plant in

Kutch.

This is its a second plant in Kutch .

It will receive clinker from its ash basedplant in Kutch.


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The amount of investment Rs.600

crore.Expected production is 5 million

tons/annum.

Th e p rod u ct w illb e ava ilab le to th e.m arket of M ah arash tra an d G oa

..Contd


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. .A n n u a ltu rn ov er R s 1 0 0 0 0 crore

.Th ird la rg est p rod u ce r o f In d ia

/ .In d ia p rod u ce 2 2 4 m illion ton s a n n u m

..Contd


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SUMITOMO TO BUY SUZLONARMS UNIT

Belgium-based Hansen Transmission ,in whichSuzlon energy holds a 26% stake, will sell itsindustrial gearbox making unit to Japansbased Sumitomo heavy industries.

The proposed transaction value Rs.463cr.

Hansen industrial gear box unit is known asindustrial transmissions NV which accountfor almost 16% of the companys revenues.


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Hansen also plans to reduce its turbinegearbox manufacturing capacity by 1100MW from 8700 MW.

Performance fell due to discontinuing

operation at its Edegem plant.

Hansens revenues in the year ended marchdeclined 12 %.Hansens performance fell by poor sellsand low demand from the wind energymarket even as debt on its book remainedhigh.

.Contd.


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ONGC ANNOUNCES TWO NEWOIL & GAS DISCOVERIES

One of its discoveries has been put on toproduction.

An oil discovery in an onland Cauvery Basinblock and the gas in the offshore KrishnaGodavari Basin.

The exploratory well drilled to a depth of 2416meters , flowed oil@300 barrels per day.


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ONGC TO INVEST RS.8,800CRORES IN MUMBAI OIL FIELD The investment is for using a cost effective

technology to maintain output.

Earlier the out put was of 4,00,000 barrelper day which has fallen to 2,10,000barrel per day.


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GEMS ANDGEMS ANDJEWELLERYJEWELLERY


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HistoryHistory Precious gems and jewelry are a part of Indian

tradition and customs.

Gold has traditionally been valued in India as a savingand investment vehicles.

Even today, gold is the second most popular instrument after the bank deposits


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v The Indian gems and jewelry industry is one of the fastest growingsegments in the Indian economy with annual growth rate of approximately 15 %, with export of over $20bn in 2007-08.

vv The gems and jewelry sector accounts for nearly 13% of Indias

total exports.vv According to an ASSOCHAM report released in 2007, the gems and

jewelry industry employs over 1.3 m people directly andindirectly.

v

v The report further states that worldwide, the industry is estimated to be around $130bn, while Indian gems and jewelry market worth$13.5bn.


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India is already the largest diamond cutting and polishing center in the world.

The Indian diamond and polishing industry enjoys

1. 60% value share

2. 82% carat share3. 95% share in terms of numbers of pieces means 9 outof 10 diamonds sold worldwide are cut & polished in India.

Total gems and jewelry export from India stood at $20.88bn for 2007-08 a growth of 22.27% over $17.08bn the previous year as per GJEPC

Advantage to IndiaAdvantag e to India


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The United States and Hong Kong were the largest importer of

gems and jewelry from India, with a share of 26% eachfollowed by UAE at 21%.Gold jewelry exports increased from $5.2bn in 2006-07 to

$5.6bn in 2007-08

The domestic market for gems and jewelry is likely to increaseto $20bn by 2010 and $30bn by 2015

India is the largest consumer of gold in the world, followed by

China and Japan. India consumes nearly 800 tons of gold thataccounts for 20% of world gold consumption, of which nearly600 tons go into making jewelry.

Cont.


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India is also emerging as the worlds largest trading center for gold targeting $16bn by 2010

Branded jewelry is likely to be the fastest growing segment indomestic sales. The sector is expected to grow at 40% annually

to touch $2.2bn by 2010The export industry mainly comprise of small to large unit based

in various special economic zones (SEZs) , export processingzones (EPZs) in Chennai and Noida and Santacruz Electronic

Export processing zones (SEEPZ) in Mumbai, supplying primary diamond studded jewelry. More SEZs are on the anvil.

Cont.


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DiamondsDiamondsIndia has long history of diamond mining and several diamonds,

including KOHINOOR, were produced here.In fact, till 1725 India was the only producer of diamonds in the

world.

The Golconda mines were world famous and even today , aGolconda diamond fetches a very high price in the internationalmarket.

Today diamonds are mined only at Pannain Madhya Pradesh by National Mining Development Corporation.


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India does not contribute much to the world market in termsof rough diamonds.

India exported rough diamonds worth $566m in 2007-08It is world leader in cutting and polishing of diamondswith export worth $14.18bn in 2007-08.

m p o r t s o f R u f f D i a m o n dAfricaRussia.U S

Europe

Most of the processing of diamonds takes place in SURAT

in GUJARAT and in JAIPUR in RAJASTHAN.


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RetailRetail sector sector The Indian gems and jewelry market continues to be dominated

by the unorganized sector.There are over 2.5m jewelry shops in India and most of them are

family run.Market for branded jewelry is likely to be worth $2.2bn in 2010

according to McKinsey report. Now a days more and more jewelry houses are entering the

branded jewelry sector and it has become organized sector.According to report released by Technopark advisor on the

changing retail landscape in India. The jewelry and Watches is pegged at about $13.70bn expected to register a 12% growth by2012 touching $23.60bn.


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Reliance Retail is planning to enter into jewelry retail sector. It

will open 400 to 500 jewelry retail outlets across the country.Damas India, part of one of the largest jewelry retail outlets in the

world , is adding 16 new stores to the 12 stores it currently has inIndia.

Swarovski, the global crystal goods manufacturer and marketer, plans to set up 30 stores , up from the current 13.

Gold Souk India has plans for opening 100 souks in 100 months.Kiah also increase its retails from 15 stores to 45 stores in India.


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Government InitiativesGovernment InitiativesGovernment lowered import duty on platinum from $13.82 per 10

gram to $5.03.Exempted rough colored precious gems stones from custom duty at

the first stage itself, instead of claiming reimbursement later.Duty free import of consumable for metals other than gold and

platinum up to 2% of freight on board(F-O-B) value of export.Import of gold of 18 carat and above under the Replenishment

scheme.Setting up SEZs and gems and jewelry parks to promote investment

in the sector.


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In 2007 govt. abolished import duty on polished diamonds.The export of colored gemstone on consignment basis has been allowed.The limit of speed post parcel for jewelry increased from$50000 to

$75000.100% FDI allowed through automatic route and 51% FDI allowed for

single brand retail outlets.To reduce the transaction cost for the diamond sector, testing facility at

International Diamond Laboratory (IDL), Dubai, has beenincorporated in the list of laboratory/certifying agencies.

Categorization of exporters as One to Five Star Export Houses has beenchanged to Export Houses and Trading Houses with rationalizationand change in export performance parameters.

N dN t d


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New trends New trendsWith 10 fold increased in the number of working women in the

country. Jewelers are making special efforts to cater to trendy youngworking women. Companies have introduced new lines of wearableand affordable jewelry.

Swarovski, which already has a strong presence in the Indianfashion scene, has on offer a line called Passages of Night,starting at $74.012.

Gitanjali Gems Asmi line has a collection called Corporate andGraduates, which accounts for as much as 50-60% of the sale of the entire line.

Tanishq, TATAs jewelry brand has a line called Everydays,includes gold and diamond pendants, earrings, necklaces andrings. It contribute 10% of all Tanishqs sales.


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News NewsBharat Diamond Inaugurates 'World's largest Diamond Bourse'

The Bourse will take this resilient nature of the Indianindustry to establish India as a true 'InternationalDiamond Trading Hub'

Bharat Diamond Bourse (BDB) will be inauguratingthe World's Largest Diamond Bourse on the 17th of October, 2010 in Mumbai.

BDB was set up for the primary objective of establishingnecessary infrastructural facilities for promotion of exportof diamonds including diamond jewellery from India andthus provide all support and service facilities so as toeventually make India an International Trading Centrefor Gems and Jewellery .


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Indias stride to be Global hub in Gems & JewelleriesIndias stride to be Global hub in Gems & Jewelleries

In the financial year ended March 2010, gem and jewelleryexports from India registered a huge 18.23% growth, and stoodat USD 29.433 billion. Our industry contributes nearly 16.67%of the country's total merchandise exports.

Of this, the cut and polished diamonds segment still has a lion'sshare of 61.97%. Exports of cut & polished diamonds for FY

2009-10 stood at USD 18.244 billion. India has nowconsolidated its leadership position in this segment, with arising share of the overall market.


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Significantly, gold jewellery, which offers tremendous growth potential achieved an increase of 10.69 % and at USD 9.680

billion, stands second accounting for 32.88% of total exports.Exports of coloured gemstones during 2009-10 were recorded atUSD 286.80 million showing an increase of 9.70%.


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Gems, jewellery exports up 67% in AugustGems, jewellery exports up 67% in August

%India`s gems and jewellery exports grew by 67 in. - -August to USD 3 1 billion year on year due to-increased sales in the US and non traditional

.markets like Russia and China

``We have been able to increase our share in the US% % ,market to about 32 from 26 earlier `` Gems and( ) -Jewellery Export Promotion Council GJEPC Vice

.Chairman Sanjay Kothari said

``The exporters have been able to capture some ,market share of Israel and Belgium in the US `he.added


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Exports of cut and polished diamonds exports in August sawmaximum growth of 65% year-on-year followed by gold

jewellery (49%) and coloured gemstones (14%), as per theGJEPC data.The exports of the precious items during the April-August period

increased by about 62% to USD 15.2 billion over the same

period last fiscal.The increase in exports is also due to enhanced demand for the

Indian items in markets like China and Russia.The council expects the exports would be about 30-35% in the

current fiscal more over the previous year as demand was picking up in the traditional western markets.


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ServiceServiceSectorSector ,CSBangalore


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Service sector towardseconomy GDP Growth Rate: 8.5%

Service Sector: 62.5%


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RBI to Head Sub-Committee that wouldact as first stop for dispute redressal

The purpose of sub-committee is to financial stability anddevelopment.

RBI have made sub-committee i.e. financial stability anddevelopment council.

FSDC acts as co-ordination arrangement it is alright but at the same

time they should ensure autonomy of individual regulators. It will be responsible for financial stability and regulatory co-

ordination


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It would be stop for sorting out any discord between the

regulators, addressing the concern that councilundetermined the autonomy of the financial regulators.This sub-committee will have all regulations and senior

finance ministry officials as members and RBIgovernor and the chairman.

The strength of FSDC depends much on the technicalcapability of its team.

FSDC has lot of potential but it will be able to deliver will depend on the technical capability of its team.


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TRAI to frame norms to in creasemobile phone tariff transparencyIt will help customers to informed choices about their

mobile plans.

The guideline will also aim to bring operators who issuemisleading tariff advertisement.

Because the mobile operators do not provide the

adequate information about their plans.

TRAI wants that all tariff related issue should be

determined by market force.


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Right now mobile phone company can offer up to 25

different tariff plans in a circle.

TRAI is contemplating a reduction in this cap.

Its logic is that too many tariff plans confuses thecustomers and makes it difficult for them to makeinformed choice.

According to TRAI if there are large number of tariff plans the mobile company should give description tothe subscribers.


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Gold vending ATMs may become areality in IndiaIndians might soon get a chance to buy gold from ATMs, as

Germany's Ex Oriente Lux AG is in talks with Indian entities for setting up gold dispensing automated machines in India.

The official did not provide details about the ongoing talks. TheGold ATM , known as 'Gold to go', made its debut in Abu Dhabiearlier this year.

"Gold to go originated as an opportunity born out of the turmoil of the financial crisis". Ever since the global financial meltdown in2008-09, gold prices have been on the rise, as more investors areseeing the yellow metal as a safe investment.


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LIC Housing seeks to boost tier-IIcapital LIC Housing Finance could consider boosting the tier-II capital this year. According to RR Nair , director

and chief executive officer (CEO) at LIC HousingFinance, the companys capital adequacy ratio is at14%.

The tier-II capital includes undisclosed reserves,revaluation reserves, general provisions, hybridinstruments and subordinated term debt. He said

that there was no plan to raise equity. The companycould consider the equity option only if it gets into acapital-intensive business like retail banking.


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INDIA HEALTH COVER FORPOOR ATTRACTS WORLDINDIAS ambitious public health insurance

scheme covering 19 million poor families isnow going global ,after recommended it for

the rest of the world.Many countries such as Indonesia , Pakistan ,

Bangladesh , Nepal , Nigeria and Ghana areenjoying of this scheme.

Maldives has just three hospitals to get a

substantial number of patient from the


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Other countries in Asia and Africa with sizablenumber of people have interest of the Indian

scheme .

It provides cash treatment up to Rs. 30,000annually to a family of five at empanelledgovernment and private hospitals throughsmart cards.

It is the smart card driven fool proof technology, which makes the scheme unique.

The biometric card has the fingerprint at the

LOANS NEW ASSETS CLAASS


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LOANS NEW ASSETS CLAASSFOR RICH

Securitizations of loans to small self-helpgroups, that started a few month ago.

It is beginning to open a window of riches forthe wealthy who get 8 -9 % on investmenton bonds and other fixed income-yieldinginstruments .


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LAUNCHES ULIPSBI has launched third unit linked insurance

plan (ULIP).It is available at an affordable yearly premium

starting from Rs.15000 onwards .

The product has been design to cater toinvestment and protection needs the middleand low income segments the product isexempted from medical examination.

,f TCIL' 30% t k i


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,cr for TCIL's 30% stake insubsidiary Bharti Airtel, Indias largest TELCO by both

revenues and customers, may have tofork out more than Rs 1,800 crore to buyout Telecom Consultants of Indias (TCIL)30% stake in its subsidiary BhartiHexacom, which offers mobile services insix northeastern states.

DoT also accepted the finance ministrysrecommendations that a reserve price befixed for TCILs stake in Hexacom in a fairand transparent manner before going in

for the sale which must be conducted


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Global &Global &EditorialEditorial

NewsNews

Nobel Prize winner in


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Nobel Prize winner inEconomics, 2010 Americans Peter Diamond and Dale

Mortensen, and British-CypriotChristopher Pissarides, have won the2010 Nobel economics prize.

At a time when unemployment rates formany OECD countries are rocketing, itmay seem only timely that their work onhow unemployment, job vacancies and

wages are affected by regulation andpolicy, received recognition. The trios conclusion is that searching for

jobs and stabilising the labour market cantake up so much time and resources that

Wikipedia preloaded on


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Wikipedia preloaded ondevices Wikipedia Foundation Inc. is planning a

Pilot project to make its online Wikipediaencyclopedia available as an offlineresource on low cost mobile phones andpersonal computers.

The main aim of Pilot project is to build off

line reach so that people can access iteven when they do not have internetaccess.

CNOOC TO INVEST $ 2 16


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CNOOC TO INVEST $ 2.16bn in US shale oil field

The first big investment by a Chinese firmin US onshore oil reserves.

CNOOC Ltd. will buy a stake in Chesapeake

Energy Corp. shale oil and gas acreage inSouth Texas, spending a total of $2.16 bn.over the next two years.

China National Petroleum Corp. andCanadas Encana Corp. to set up a jointventure to exploit reserves in BritishColumbia.


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S PRESIDENT BARACK OBAMA WILL TAK/ , .6 11 TOUR STAY AT TAJ

The US President Barack Obama is going tovisit Mumbai s Iconic Taj Mahal hotel on

.November 5

President Obama will also visit locations of/26 11 terror to express solidarity with the

.victims of the carnage

Some serious issues to be discussed during this visit are reservations being expressed in ,India s IT industry about outsourcing the

tightening of visa rules and the nuclear issue

.also figures in the wide ranging etc


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When India and US take into account,global issues China is important,regional power therefore India

will exchange notes with China on.these discussions


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:S TO RAKE UP YUAN AT G20 MEETSUMMERS

The G20 represents a group of 20 Finance Minister andCentral Bank Governors of Countries both developed and

- .emerging who discuss on key issues on Global Economy, , , , , ,They are US UK INDIA AFRICA CHINA JAPAN GERMANY

.so on,The most important agenda in the upcoming G20 meeting

.is the China s exchange rate policy

The United States and many other countries wants China - ,to allow its currency the Yuan to rise which wouldlead to a reduction in the country s exports and help a

.rebalancing of the global economy


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Article A WHOLE SOME RECIPE A WHOLE SOME RECIPE


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