A load of crap from an idle brainPersonal, Movies, Music, IT, India, Singapore, Politics, Fun

With signs of green shoots showing in economies worldwide, India  Inc’s appetite for overseas acquisitions got a fresh lease of life with Reliance Industries’ estimated $10-12 billion offer for a controlling interest in bankrupt LyondellBasell Industries.

The deal by India’s largest private sector company controlled by Mukesh Ambani, if closed, will make it one of the largest petrochemical outfits in the world. It will also be the second largest overseas acquisition by an Indian company, after Tata Steel bought Corus for $13 billion in 2007.

RIL has enough money power to make the deal happen. It has $4 billion in cash and $8 billion in treasury stocks, besides a favourable 0.35:1 debt-equity ratio. It also raised $660 million through treasury stocks sale recently.

In the year to October, Indian comanies acquired overseas assets worth $586 million, a sharp fall from the $13.06 billion in the same period a year ago, according to data from Grant Thornton Deal Tracker.

HSBC believes outbound activity will bounce back. About 70 per cent of HSBC’s pipeline is outbound transactions, which has remained the same as the previous year’s.

Tarun Kataria, managing director and head of corporate, investment banking and markets at HSBC, says India is sitting on the cusp of rapidly growing cross-border M&A activity.

“Indian firms are now well capitalised, are trading at circa 20x multiples, offshore markets are trading at a discount to India and financing is more readily available to Indian corporates than to competing offshore acquirers.”

Rest of the news here

One of my favourite columnist, Ajit Dayal from Equitymaster writes a regular post called “The Honest Truth”.   With little anecdotes and stories, he decodes the complex world of money and finance.  This week’s article harps on the thousands of crores of illegal money stashed in the tax havens worldwide by corrupt Indian politicians and businessmen.

Ajit writes about an imaginary future where the Indian Finance Minister writes to all the bank CEOs, CFOs, Chairmen etc to repatriate the money that they have helped save in their tax havens in countries like Bermuda, Channel Islands, Dubai, Hong Kong, Lichtenstein, Singapore, and Switzerland.

Letter to: All Banks in Hong Kong, Singapore, UAE, UK, USA,

Dear mostly-overpaid CEO:

As you are aware, there are a lot of Indians with a lot of “black” money.
You see them when they visit your art-infested offices or when your mostly-overpaid relationship managers wine and dine them to the tune of “hum kale hain to kya hua, dilwale hain”.

Some of this “black” wealth that they have earned – on which they have not paid any taxes – lies in your bank. It may be in a branch at your head office, or it could be deposited in one of the branches that you have so conveniently set up in countries and jurisdictions which allow you global thugs to indulge in legal theft.
Countries like Bermuda, Channel Islands, Dubai, Hong Kong, Lichtenstein, Singapore, and Switzerland are some of your favourite hiding holes.

We recognise that there are millions of persons of Indian origin who have bank accounts with you because they legitimately work outside India and use these legitimate bank accounts with you to pay their grocery bills and live their daily lives. This letter is not intended to question your relationship with them.

We are interested in accounts which have the following characteristics:

1. they belong to a holder of an Indian passport,
2. who shows his or her residence to be in India,
3. or, if the first two points are not true, where the signing authority over any individual, trust, or corporate account is held by someone with the above two qualifications.

To make your life easier, I am attaching a list of:

1. all Members of Parliament and Members of the Legislative Assemblies in India since 1950 – and the names of their spouses, children, brothers, sisters, and in-laws,
2. the names of the Top 1,000 founders of companies in India – just as an aside we call them “promoters” because most of them promote the corrupt habits of our politicians and bureaucrats
3. the name of the bureaucrats – and their family members – who have had senior decision-making positions at the federal/central and state government levels since 1950,

This list, enclosed in the attached box, is also being published in the newspapers in India. In no way are we suggesting that all – or any – of the people in this list are corrupt or have illegal wealth. But it is a starting point and shows the seriousness of our desire to get some results. Any person named on this list will still enjoy all the travel benefits and other rights as a citizen of India.

In case your bank decides not to cooperate with us, we will ensure that any assets you own in India will be seized and taken over by the Government of India. Till this investigation is completed, there will be a temporary ban on any sales of your shareholdings and other assets in India.

And, since most of your management have been bred on the philosophy of greed and rewards, we will carry on that tradition to ensure that we get your full cooperation in this matter of national importance.
For every account that your bank helps us identify as a haven for “black” money, we will pay you a fee of 2% for helping us find it.
And we will ensure that your bank gets a license to operate in India as a 100% owned subsidiary to tap the growing banking opportunities in India.

Needless to say, you will be regulated by a proper regulator – the venerable Reserve Bank of India – and not by some tin-pot regulators like the SEC in USA and the SIB in UK that have fallen asleep on the job.
But that should not worry you – there are so many ways to make money without compromising on ethics.

Thank you for your support and, if you need any clarifications, please do not hesitate to call me directly on my mobile.

With regards,

The Finance Minister of India.

P.S.: you will see that my name is missing from the list, and the name of a few other very well known people. Let’s keep it that way. I will discuss with you when we next meet in Davos, Switzerland. Ssshhh till then.

To read the archives of Ajit’s Honest Truth, click here.

+++

For all that they claim, when it came to the crunch, the only man standing was Manmohan Singh and his convictions. When history will be written, Manmohan Singh will be credited with 2 of the most path breaking changes in the history of India.

• Liberalizing the economy in the 90s as Finance Minister with Prime Minister PV Narasimha Rao.

• Breaking the shackles of nuclear isolation in 2008

Its an envious stature for a person who was always mentioned as the “reluctant PM” unlike so many of his detractors and rivals who believe the PM’s post is god given for them.

Encyclopedias of data are around to stress either sides of the nuclear deal.  Only time will tell who was right or wrong. As of now, let’s see how this deal will affect India.

The deal with the US entails India to continue with its dual path of nuclear technology; for both military as well as civilian uses (energy, medical, space etc).  The nuclear reactors for civilian purposes will be open to IAEA inspections.  The reactors meant for military purposes will be out of bounds for the IAEA. India can buy / tie-up for nuclear material and technology from any country.   In fact, India has already signed a treaty with France that has given it unlimited access to technology as well as reprocessing of the spent fuel.  A similar deal with Russia is expected to be signed when the Russian President, Dmitry Medvedev visits India in December. India can still pursue its nuclear weapons technology without any hindrance. In short, the world now, has the 6^th declared nuclear power in the form of India.

If India explodes a nuclear bomb (for testing purposes)

The US will stop all nuclear co-operation.  India will have to return all the fuel given to it till then.  There will be a one year cooling down period where both parties (India & USA) will talk, deliberate and break heads on how to go along or if not they should part.  During this one year period, if they reach a deal, they continue or else its all over between them.

How does this affect India’s deal with France (already signed, details yet to be released) or Russia (details of which will be available only after the December signing), will be only known in some time to come.

India’s position on nuclear testing

Soon after the nuclear testing in 1998, the Vajpayee led BJP government declared a unilateral moratorium over further testing.  The Vajpayee government assured the world, that it would keep its promise of keeping a lid on further testing.  So, that demolishes all the opposition that BJP has over testing.  The Congress government has merely reiterated what the BJP government had proclaimed in 1998.  Its an accepted fact that India no longer needs any more testing (according to scientists and the party in power in 1998).  Any more noise that the BJP makes over this issue is just plain politicking which can be ignored.

Economic benefits for India due to the nuclear deal

• The agreement could open up around $27 billion in investments in 18-20 nuclear plants over the next 15 years, according to the Confederation of Indian Industry.

• By 2030, the overall economic benefits that will accrue to India’s economy as a result of nuclear trade could touch $500 billion, says Imagindia Institute, an Indian lobby group.

• The deal is expected to double nuclear power’s share in India’s electricity supply to five to seven per cent in the next two decades.

• With nuclear fuel in short supply, India’s nuclear power plants are running at 55 per cent of their capacity of about 4,000 megawatts.

• India’s electricity supply, about 15 per cent short of demand in peak hours, will get a boost after the deal, but any new nuclear power plant may take a decade to be completed, leaving the country dependent of coal and liquid fuels.

• Indian media say the country’s monopoly Nuclear Power Corp has tentatively picked four suppliers, including US-based Westinghouse Electric and France’s Areva, for planned new projects. Westinghouse is a unit of Toshiba Corp. Areva said on Monday that it hoped to sign a contract with Indian authorities to deliver two advanced EPR reactors.

• India is also reported to be negotiating with General Electric, Hitachi and Russia’s atomic energy agency Rosatom.

• Russia is already building two 1,000 megawatt reactors at Kudankulam in the southern Indian state of Tamil Nadu as part of a deal signed in 1988. Indian officials say the two countries will begin discussions on a multi-billion dollar agreement to build four more nuclear reactors in Kudankulam which has been delayed because of international restrictions against New Delhi. Russian nuclear reactors cost up to $2 billion each but India could expect to get a hefty discount on such a major deal, as Russia competes with the United States for influence in India.

Above info courtesy: IBNlive

This is not to count the approximate generation capacity of 60,000 MW of power by nuclear means by the year 2030 and the billions of dollars of technology exchange between India and the other countries in Space technology, Medicine, Science and other high tech industries.

Why is the Left against the deal?

Simply because their masters in China have paid them to behave that way.  The Left (CPI – CPM) never had any issues with China being a nuclear power or their nuclear testing. They sided with China during the 1962 war.  Its just natural that the mongrel is being faithful to the master.  The Commies have problems with everything US and when asked why they were not complaining against the Indian deal with France, they had no comments.  That simply shows how hollow their ideology is.  They love to oppose for the sake of opposing.

Why is BJP against the deal?

Because they just cant believe that a person who was so reluctant to be the Prime Minister has pulled off the deal.  Its a known fact that the BJP was on the verge of signing the NPT deal and giving away the nuclear sovereignty on a platter.  Even though the BJP was in power when the nuclear testing happened, its the Manmohan Singh government that has brought India out of a 34 year nuclear isolation.  They simply can’t accept the fact that their Iron man (sic) LK Advani, the perennial PM in waiting couldn’t get a chance to negotiate the deal.  Its a plain and simple case of the fox that didnt get the grapes and declared it sour.

Why the SP is in favour of this deal?

The Amar Singh – Mulayam Singh combo of Samajwadi Party needed someone to cling on to.  The Mayawati government was hot on the heels of the SP duo in UP fostering cases of corruption against them, hence the temporary deal with Congress.

So, will the Congress win the elections on this issue?

NO.  They wont.  The Indian electorate still loves mandir, masjid, gurudwara, church, SC, ST, OBC, hindutva, swadeshi, sycophancy, religion, region, family kinda politics.  And then they wonder why the country is so screwed up.

+++

A good writeup by Parsa Venkateshwar Rao Jr on the sheer neglect of Science in India.

Everything about the Large Hadron Collider (LHC) at the European Nuclear Research Centre (CERN) in Geneva is big. The money spent on the project — $3.8 billion — is big. Thousands of scientists, thousands of instruments are part of this mega project.

The 27-km tunnel is the longest for a project of this kind. The instruments which line the tunnel are a few thousand in number, especially the super-sensitive, super-precision magneto-detectors which are key to the success of the super-duper experiment ever in theoretical physics. It is here that Indians make their dramatic appearance, though it is kind of a bit role in the lavish drama. Fifty per cent of those magneto-detectors have been engineered by Indian scientists, right from conception to execution and installation.

What is overlooked in all this number crunching of the elementary kind is that beyond the big budget, big site-laboratory, big instruments and big teams of scientists is that it all stems from a big idea — what is the source of the universe. Without the pioneers’ passion to cross the frontiers of knowledge, to go back to the ancient beginnings — now reckoned to be approximately 13.7 billions years or so — the whole enterprise would be a titanic empty shell.

Consider what nuclear means for most informed Indians? It just brings to mind nuclear power, nuclear bombs, nuclear medicine, not necessarily in that order. But very rarely would it also connote in the minds of these people the teasingly infinite, infinitesimal universe of sub-atomic particles.

Indians will be able to cross this mental frontier if they can stop thinking of science in terms of its utility, in terms of visible technology and its benefits to India.

Click here for the full article

+++

Indian tennis ace Leander Paes and Zimbabwe’s Cara Black won the mixed doubles crown at the season-ending Grand Slam on Thursday. The fifth seeded Indo-Zimbabwean pair beat the American-British pairing of Liezel Huber and Jamie Murray 7-6, 6-4 in the final.

The triumph increased Paes’s  tally of Grand Slam crowns to eight. In 1999, Paes had partnered Mahesh Bhupathi and Lisa Raymond to win the men’s doubles and mixed doubles crowns at Wimbledon.

American brothers Bob and Mike Bryan won their seventh Grand Slam men’s doubles crown Friday, defeating India’s Leander Paes and Czech Lukas Dlouhy 7-6 (7/5), 7-6 (12/10) to take the US Open title. The Bryans, who ran through the tournament without losing a set, previously won Slam crowns at Roland Garros in 2003, the US Open in 2005, Wimbledon in 2006 and the Australian Open in 2006 and 2007.

The defeat denied Paes a chance at a US Open doubles double, having already claimed the mixed crown with Zimbabwe’s Cara Black. Paes had claimed such doubles in 1999 at Wimbledon and the French Open, partnered with American Lisa Raymond in mixed and compatriot Mahesh Bhupathi in the men’s doubles.

The victory enables the Bryans to move back into the world number one ranking from second.

News and pictures courtesy: AFP, Daijiworld

+++