Oil India to invest Rs 12,000 cr in Northeast by 2017

Oil India Ltd said today it plans to invest Rs 12,000 crore in the North East by 2017 on projects, including expansion of exploration work and diversification of business.

Guwahati, Jul 3 : Oil India LtdBSE -2.02 % said today it plans to invest Rs 12,000 crore in the North East by 2017 on projects, including expansion of exploration work and diversification of business.

"We have set a capex target of Rs 19,000 crore for the 12th Five-Year Plan till 2017. Out of this, Rs 12,000 crore will be invested in the North East," Oil India Ltd (OIL) Chairman and MD Sunil Kumar Srivastava told reporters here.

The state-run company will spend Rs 1,982 crore in the North East out of the total investment of Rs 3,581 crore planned for the current financial year.

The company will use the money on activities such as exploring new blocks, diversification, upgrading infrastructure and general corporate purposes, he said.

OIL, which has wind energy projects in Rajasthan, plans to expand its presence in the sector by setting up units in the North East.

"We are conducting a feasibility study in the North East to see the potential of this business. Once we are done with the study and get a positive feedback, we will set up the plants," Srivastava said.

He declined to share details about the time frame and the investment proposed for starting wind projects in the region.

The company has two wind energy plants in Rajasthan with capacities of 13.6 MW and 54 MW.

"As part of our diversification strategy, we are also looking to enter the natural gas segment. We have appointed a global consultant to see the potential of LNG business in India," Srivastava said.

OIL is investing Rs 871 crore to upgrade its pipelines from Duliajan in Assam to Barauni in Bihar.

"We are upgrading and revamping our pipelines. By mid-2015, we replace all our old fuel pumps from Duliajan to Barauni," Srivastava said.

The North East accounts for OIL's entire crude oil output and a majority of its gas production, according to the company's website.

OIL and Oil and Natural Gas Corporation (ONGC) said on June 25 they agreed to jointly buy Videocon Industries' 10 per cent stake in a Mozambique gas field for USD 2.5 billion.

OIL has said it will raise up to USD 900 million in overseas debt by October to pay for its acquisition of a 4 per cent interest in the Rovuma Area 1 offshore block in Mozambique.

Why Your Cuppa Is Costlier

By Debiprasad Nayak and Biman Mukherji

Roberto Schmidt/Agence France-Presse/Getty Images

Rains have come more than three weeks late to much of Assam state, stunting the growth of tea buds and leaves.

Tea prices are on the boil in India because of uneven monsoon rains in the country’s northeast.
The monsoon arrived early over most of India this year, causing death and destruction in the northwest. But the rains have come more than three weeks late to much of Assam state, one of the world’s top tea growing regions.

As a result, temperatures have stayed five to six degrees Celsius above normal, stunting the growth of tea buds and leaves during the crucial months of May and June, a period that usually yields the best quality of tea from shrubs.

“Tea leaves have crumpled and appear reddish,” said Sujit Patra, joint secretary of the Indian Tea Association.

Tea prices have already risen around 10% over the past month. Common varieties of tea are now priced around 130 rupees ($2.18) per kilogram at wholesale markets in Kolkata, industry officials say. They warn prices could rise further.

Weather officials say a low pressure area has affected the distribution of the rains this year, causing floods over northern hill states and an unusually dry spell in the northeast.

Rainfall in Assam and the adjoining state of Meghalaya so far in June is 57% below average, according to the state-run India Meteorological Department. Forecasters expect rains to increase from this week, but that will only limit some of the damage given that tea output in May fell 7% from a year earlier, according to the Indian tea industry officials.

“The total quantity of production is likely to be less this year, but it is difficult to estimate right now,” said D.P. Maheshwari, managing director of Jay Shree Tea and Industries Ltd., one of the largest tea producers in the country.

India is the world’s second-largest tea producer. In 2012, it produced 1.13 million tons of tea. About 80% is consumed within the country.

How To Get Rich In Your Country Of Choice [Infographic]

It's easy! Just inherit gobs of cash.

By Colin Lecher

How do the rich get rich? The answer depends on geography.

This infographic, designed by studio BoldFace and published by Independent Newspapers, breaks down, for various regions, how the rich earned their dough. In the United States, it's a landslide: 67 percent of wealthy survey respondents said they made it big by "savings through earnings." In the Middle East, meanwhile, "inheritance" is just barely the most popular way of striking it rich, with 49 percent of respondents saying they got their dough passed on to them. Since the graphic was published in Irish newspapers, there's also of ton of data on how Ireland's rich accumulated their wealth.

The infographic still leaves a couple questions open. How is "wealthy" being defined here? And what can we attribute to the differences: culture, laws, or something else? Either way, go ahead and use this as your field guide to your very own cash-filled swimming pool.

How The Rich Get Rich:  Independent Newspapers/Boldface

Honda Unveils 'CB Trigger' For Northeast India Market

Guwahati, Jun 18 : Country's second largest two-wheeler maker Honda Motorcycle & Scooter India today launched 150 cc motorcycle CB Trigger for the North-East aimed at capturing 20 per cent of the market in this segment in the region.

The CB Trigger is priced between Rs. 70,315 and Rs. 79,900 (ex-showroom, Guwahati), Vivek Taluja, Honda Motorcycle & Scooter India (HMSI) Division Head (Regional Office East), told reporters here.

The bike, which will compete with Bajaj Auto's Pulsar, claims to give a mileage of 60 kilometre per litre.

Talking about sales expectation from this region, Taluja said, "The 150cc category market in the North-East is around 2,600 units per month. We are targetting to capture 20 per cent share with the CB Trigger." The company is currently working on organising a rally from Guwahati in Assam to Tawang via Bombdila in Arunachal Pradesh to give its brand image a boost, and is inviting Honda customers to take part in it, he added.

"We are interested in organising a bike rally in the North-East to strengthen our brand image. We are considering to do it this year," Taluja said.

When asked if it will be for all HMSI buyers, Taluja said, "Usually premium bike owners are more willing to take part in such adventures. We are looking to invite customers who have bought bikes of 250cc or above category." HMSI at present has 17 dealers across the North-East region, and it is adding 3-4 more by the end of this year, he added.

GM India sees North East next growth mkt, aims 8% jump in 2013

GM India is expecting a growth of around eight per cent in its sales in North East market this year even as the overall car segment is witnessing a steep fall.

Guwahati, Jun 17 : General Motors India is expecting a growth of around eight per cent in its sales in North East market this year even as the overall car segment is witnessing a steep fall across the country in the recent months.

"North East is an important and emerging growth market for General Motors. In terms of sales, it contributes as much as 32 per cent of the total sales in the Eastern region with Assam contributing a major part of the share," General Motors India Vice-President P Balendran told PTI.

At present, the North East (NE) contributes three per cent to the total sales of the company annually, he added.

GM India had clocked a total sales of 92,435 units during last year.

When asked about the company's expectation from the NE, Balendran said: "It's growing at a rate of five per cent even in these tough market conditions and is expected to grow around eight per cent overall by the year end of 2013."

Assam contributes the highest at around 60 per cent of overall sales in the North East region.

Talking about the models, he said the small car Beat and the newly launched Sail hatchback and sedan continue to generate good demand in the region.

"All our models, regardless of the fuel type, have significant demand in the North East. In Assam, diesel and petrol both are accepted well," Balendran said.

Car sales in India fell for a record seventh consecutive month in May with a decline of 12.26 per cent, prompting industry body SIAM to caution that the prolonged slump in the market may result in job losses in the automobile sector.

As per SIAM data, domestic passenger car sales in May stood at 1,43,216 units as against 1,63,222 units in the same month of 2012.

GM India, which had set up its first showroom in the region in 2004, is also expanding its network in the NE.

"We have recently opened new showrooms in the cities of Nagaon and Tinsukia. We will shortly open two more new showrooms and service outlets in cities like Tezpur and Jorhat," Balendran said.

Currently, GM India has 14 sales points and service outlets in the North East. The company currently has a warehouse in Guwahati with a total capacity of 350 cars.

The Eastern region for GM India comprise states like Arunachal Pradesh, Assam, Bihar, Jharkhand, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Sikkim and West Bengal.

The company had reported 39.83 per cent increase in its sales at 8,500 units in May 2013 compared to 6,079 units in the same month of 2012.

The sales during May 2013 included 1,506 units of Beat, 2,851 units of Sail, 2,177 units of Enjoy and 1,475 units of Tavera.

North East Biz Team Going to Thailand, Cambodia

By Shobha Roy

Kolkata, Jun 10 :  A 30-member business delegation from North East headed by Union Minister of DoNER Paban Singh Ghatowar will visit Thailand and Cambodia to explore bilateral investment opportunities.

Industry ministers from Assam, Mizoram and Nagaland will also accompany the delegation along with their officials and local entrepreneurs.

The delegation, which leaves for Phnom Penh on June 12 and return to India on June 18, has been organised by the Indian Chamber of Commerce with the participation of the DoNER Ministry, the Indian Embassies and leading chambers of commerce in both the countries, said a press statement issued by the chamber.

Opportunities would be explored in areas like agriculture, mining and tourism among others where South East Asia is known to be strong.

China Eyes Northeast India's Rs 350 cr Mosquito Net Market

Absence of local entrepreneurs in the sector has always left the potential to be enjoyed by traders from Bangladesh. China is now gradually replacing Bangladesh.

Siliguri, Jun 4 : Highly diversified topography with dense network of water streams, deep forests and thus moist climate have kept India's North East region as highly Malaria prone. And this propensity hosts a potential of Rs 350 Crore per annum market of looming polymer based mosquito net or producing its raw material monofilament out of downstream items from major Petrochem units.

But, absence of local entrepreneurs in the sector has always left the potential to be enjoyed by traders from Bangladesh. China is now gradually replacing Bangladesh.

Despite all efforts, malaria propensity is increasing in the region every year with higher percentage of malignancy following entry of new variants of the pathogen into the picture. There are many reasons behind it- accepted West Bengal health department officials.

"Due to this high propensity, entire NE region is a traditionally heavy mosquito net using zone, perhaps the highest in world. And there lies the annual potential of over Rs 350 crore," said officials from Haldia Petrochemicals Ltd(HPL).

But, "Against Eastern Region's annual consumption of near 10,000 Metric Tones (MT) of monofilament, local production lies even below 400 MT. Naturally we used to trade Bangladesh filaments and loomed net both here at high scale to meet the demand vs local production gap," said Mr J. Burman, importer of monofilament from Bangladesh. Apart from filament, there is severe shortage of looming units too in eastern India.

With a major bend in the trend, now Chinese filament and nets are replacing products from Bangladesh. "Though it may not be as durable as Bangladeshi or Indian products, Chinese filaments or loomed nets give at least 50% higher profit margin," said Mr B Saha, importer of Chinese nets.

Interestingly, "It is not too tough to utilize this potential by developing local units," said HPL officials. According to HPL documentations, from the initial price of near Rs 100 per kg, monofilament allows very high percentage of value addition in all the stages like net looming, tailoring etc. A moderately sized looming unit costing Rs 2 crore only can handle around 30 MT a month and generate near 80 employments.

But, there is another side of the story too. "Though profitable, being a very labour intensive one, these units are bound to remain under pressure of trade unionism in Bengal and that is too tough to," said members of Plastic Federation of North Bengal, reluctant to be named.

India's Startup Companies Lacking Guardian 'Angels'

Indian entrepreneurs are struggling to find investors as venture capitalists increasingly shy away from risk. Only five percent of startups get funding.

It is seen as a land of entrepreneurs, economic growth and huge business potential, but India appears to be failing its promising startup companies which are struggling to find investors.


While there is no lack of ideas among the country's vast young population, funding is declining from venture capitalists and rich "angel" investors, as they are known, who are often crucial to a young firm's success.

"Risk-taking appetite from investors is low," said Internet entrepreneur Nameet Potnis, who is trying to address the problem by setting up Nurtured.in, a platform to connect startups with early-stage investors.

"It is easy to set up an online business in India but very difficult to do business," he told AFP.
Three decades after businessman N.R. Narayana Murthy and six other Indians sat around a kitchen table and formed leading IT outsourcer Infosys, the country is yet to create a favorable business environment for new entrepreneurs.

Just five percent of thousands of Indian startups get funds from sources external to friends and family, analysts say.

It is one of the toughest countries in the world for a start-up to flourish, according to a 2012 report by US-based research firm Startup Genome.

Venture capitalists invested $1.09 billion through 222 deals in 2011, but this dropped by 30 percent to $762 million through 206 deals in 2012, according to researchers at Venture Intelligence, based in southern Chennai city.

The decline could not come at a worse time for the young Indian professionals and business graduates who are risking branching out on their own, after losing or quitting lucrative jobs amid the global downturn.

India's own economic growth slowed to an estimated 5.0 percent for the fiscal year that ended March, its slowest rate in a decade, but that has not deterred many youngsters from trying to turn their ideas into businesses.

Some of India's well-established start-ups include Nasdaq-listed online travel firm makemytrip.com, shopping website Flipkart and digital entertainment company Hungama.

In recent years, ventures have branched into areas as varied as pet care, gaming, restaurant guides and e-learning, and the startup bug is spreading into smaller Indian cities.

"More companies are coming up and not that much... money is being put in," said Sampad Swain, an entrepreneur who founded "Instamojo", which helps to sell digital downloads.

Jubin Mehta of Yourstory.in, an online site which tracks startups and entrepreneurs, said venture capitalists tend to look over 200 ideas before investing in one.

"Roughly 500 start-ups come up each month. And less than five percent -- only about 25 -- receive external funding," he said.

Kulin Shah, an entrepreneur and former venture capitalist, said angel investors have become more demanding in the current economic climate, trying to avoid getting their money blocked in ventures for too long.

Angels are increasingly unwilling to fund firms that are clones of foreign start-ups or face intense competition, such as online car rentals, car pools and best-deal ventures, Shah said.

But too much caution can prevent investors spotting a hit, such as Nischal Shetty's Twitter application "justunfollow", which has more than three million registered users including 10,000 paid customers.
When he set it up three years ago, he generated revenues from day one despite a lack of enthusiasm from external investors.

"Angels asked me: how will you make money from this?" he said.

There are a few signs of hope for budding entrepreneurs.

In southern Kochi city, a massive glass-and-metal campus called "Startup village" is nurturing young engineers and aims to launch 1,000 Internet and mobile firms in 10 years.

Nasscom, an IT trade body, says start-ups are a "critical pillar" of the industry and last month launched "10,000 start-ups", a program which will shortlist and help fund as many ventures in the next 10 years.

"We have to create an environment where early-stage funding comes in," Nasscom president Som Mittal said at the program's launch.

Tatas Ties Up With Cardamom Growers; Looks To Northeast For Turmeric

New Delhi, Apr 2 : Tata Global Beverages today announced a partnership with cardamom growers from South India to market the latter's produce, the first time the Tata group firm has undertaken such an initiative.

The firm also said it planned to expand such partnerships and will work with turmeric growers from North East India.

"There is a great deal of difference in prices that consumers pay and what go to farmers. There is a need to stabilise the prices. Through our expertise in marketing and distribution, cardamom growers will get immense benefit," company's Vice Chairman R K Krishna Kumar told reporters here.

The company today announced a packaging, marketing and distribution tie up with South Indian Green Cardamom Company (SIGCC), which launched a new brand 'Spice Mist' for selling cardamom and black pepper.

"We have entered into an MoU with SIGCC. Under the agreement, they pay us a marketing fee for packaging, logistics and warehouses to sell their products. This initiative is not for profit purpose, but it is an endeavour of the Tata group to give back to the society," Krishna Kumar said.

Tata Global Beverages Managing Director and CEO Harish Bhat claimed this is the first time in India that any whole spice is being sold under a "proper brand".

"This is also for first time that any Tata group firm is experimenting with spices. We will test market the brand in Delhi, Chandigarh, Hyderabad and Madurai, and depending upon customers' response, we will launch it nationally," he added.

Asked about expanding the spice portfolio, Kumar said the company is looking at other products like turmeric.

"North-east is very large and high quality turmeric comes out from that region. We are looking at this product," he said.

He said the launch of branded turmeric by the Tatas will take some time and it may happen next year.

SIGCC is a company of spice growers, mainly for cardamom, and comprises about 1,500 shareholders, who are also the planters having 1-50 acres of individual land parcels.

SIGCC Executive Director G Vinayaga Moorthy said with better sale prices and higher realisation, the company will take part in auction of spices of other growers as well.

SIGCC Director Sam Mathew Kalarickal said growers have approached the Indian government to safeguard domestic cardamom producers from possible cheap imports of the spice from Guatemala in the American continent.

"We have requested the government to incentivise domestic production or put higher import duty. The cost of production of Indian cardamom is higher than Guatemala, so we will not be able to match them on price," he said, adding import from the nation is likely to start very soon.

Tata Global Beverages is an integrated beverage business unit of the Tata Group. Its brands include Tata Tea, Tetley, among others.

Yes Bank, IFC to set up PE fund for Northeast India

The fund will invest in small and growth enterprises across sectors such as tourism, infrastructure and healthcare

By Deepti Chaudhary

The corpus of the fund has not been decided yet. Photo: Priyanka Parashar/Mint

Mumbai, Feb 1 : Yes Bank Ltd and the International Finance Corporation (IFC), a member of the World Bank Group, on Thursday signed a memorandum of understanding to jointly create a private equity (PE) fund that will invest in companies in the northeastern states.

The fund will invest in small and growth enterprises across sectors such as tourism, food and agribusiness, infrastructure, healthcare, education and affordable housing in the largely neglected region.

It will make the investments through equity shares, debentures, convertibles and equity-related instruments.

The corpus of the fund has not been decided yet.

“IFC’s work to increase access to capital for small entrepreneurs in northeast India will help support inclusive growth in a low-income area—one of our top priorities,” said Jin-Yong Cai, IFC’s executive vice-president and chief executive.

Last year, IFC provided a $75 million loan to help Yes Bank expand its network to reach undeserved people, small and medium enterprises, and agricultural borrowers in India.

Bajaj Auto Looking To Emerge Market Leader in Northeast

Guwahati, Jan 18 : Bajaj Auto is looking to emerge as the market leader in Northeast India. Presently around 40,000 bikes are sold in Northeast India in a month.

President (motorcycle business) of Bajaj Auto, K. Srinivas who was in Guwahati on Thursday said around 8.6 lakh bikes are sold monthly across the country. "Northeast India is a big market of sports bike and commuter bikes."

He said presently Bajaj auto accounts for 37 percent of bike market of Northeast India. " With our new launches we will emerge market leader here."

Business Lessons From a Former Gang Member

Ryan Blair didn’t get off to a good start. At age 16, when most kids born into a middle-class household are starting to wonder which colleges they want to apply to, he was sitting in a jail cell in Los Angeles, the result of his 10th arrest as a juvenile.

In the previous few years, he’d left the family house because of his father’s meth addiction and violent behavior, spent almost a year living in a toolshed in his half-sister’s backyard, and joined a gang. (He’s got the tattoos to prove it.)

His numerous siblings had already spent a collective decade doing hard time, and Blair seemed a good bet to join the family club. Luckily, that last stint behind bars—26 days—scared him straight.

Fast-forward a few decades. Owner of a sprawling home in the Hollywood Hills, Blair today is the chief executive officer of ViSalus Sciences—seller of Body By Vi, a weight-loss and fitness challenge program.

The company is on track to hit $600 million in revenue in 2012. (He sold ViSalus, which he founded, to Blyth (BTH) in 2008.) While he never went to college, he’s still got a résumé an MBA would kill for: as a self-made millionaire, a serial entrepreneur (he’s founded half a dozen other companies over the past decade), and a New York Times bestselling author of a fast-paced guide to entrepreneurship, Nothing to Lose, Everything to Gain: How I Went From Gang Member to Multimillionaire Entrepreneur. Bloomberg Businessweek caught up with Blair to find out what he learned on the streets that helped him succeed in business.

Don’t Let Anyone Steal Your Milk
“The new guy in jail gets tested right away, usually by someone walking up and demanding their milk at lunch. If you give it away without a fight, you’ve got tough times ahead. The same thing goes on in business every day: People are always trying to get their hands on your equity or get money out of your company, whether it’s by renegotiating agreements or hitting you with lawsuits. You have to stand up for yourself and your principles. Because if you allow one person to steal your milk, others will follow.”

Make People Earn Your Trust
“A lot of times in business, your natural inclination is to trust everyone, in particular potential business partners, financing partners, and the like. That’s a mistake. You never trust a brand-new person on the streets, and I use the same philosophy now as I did then: You have to earn my trust, and I am constantly verifying people’s intentions and motives.”

The Strongest Guy Isn’t the Most Powerful Person in the Room
“The one with the most influence is. This is as true in the boardroom as it is in a street gang. You might be the primary equity holder in a company you founded, but watch out for an influential board member who’s gunning for you. They can take you out just as easily as a guy with a gun.”

Street Smarts Trump Book Smarts Any Day
“If you want to impress me, don’t throw rhetoric, résumés, or buzzwords my way. Tell me a practical vision you have for getting the job done, whether it’s in leadership, management, or processes.”

Get My Name Right
“There are plenty of people in my old neighborhood who didn’t want me to succeed. And there have been plenty of people since with their fancy degrees and who have done it all by the book that don’t appreciate my route to success. Talk about me all you want—good or bad—because I’m not paying attention. But just get my name right, will you?”

Cement Prices in Northeast To Increase

Guwahati, Oct 30 : After two sharp cuts, prices of Cement manufactured in Northeast India are likely to increase by Rs 20 to 25 per bag.

The increase in the price is attributed to lack of continuous coal supply, increase in the prices of Gypsum besides increase in the cost of diesel.

The government of India has waived-off the off-season discount of 10 percent on railway fare and even service tax of 3.69 percent has been imposed from October 1, 2012.

Sources added that there is every possibility for a hike in cement prices of Rs 20-25 per bag in near future.

New Inland Water Transport Route From Northeast Faces Hurdles

By Santanu Sanyal

The diversion of North-East bound cargo through Sittwe, Myanmar, is likely to benefit the North-Eastern states, especially Mizoram, Nagaland and Manipur. — A. Roy Chowdhury

Inland Waterways Authority is bullish on the project in Myanmar because India’s bid to transport goods to the North-East through Bangladesh has not been much of a success.

A few days ago, Bhupinder Prasad, Chairperson, Inland Waterways Authority of India (IWAI), visited Sittwe, the capital of Rakhine in Myanmar, to inspect the port development work there.

In March 2009, the Ministry of External Affairs appointed IWAI as the consultant to a port development project at Sittwe. This followed a framework agreement between the India and Myanmar in April 2008 to develop Sittwe port on the mouth of the Kaladan river as an alternative IWT (inland water transport ) route to move goods to and from India’s North eastern region through Mizoram.

Work in phases

The project, known as Kaladan Multimodal Transit Transport Project, is being funded by the Ministry of External Affairs and has three components. First, construction of a port at Sittwe, undertaking dredging and installing navigational aids to make the Kaladan river navigable over its 158-km long stretch from Sittwe to Paletwa in Chin in Myanmar and construction of an IWT terminal at Paletwa and building six barges of 300-tonne capacity each to facilitate transportation of goods along the stretch.

The second component involves upgrading the highway from Paletwa to Myeikwa near the Indo-Myanmar border in Mizoram covering a distance of 125 km. The entire stretch will be within the Myanmar territory. The third component presupposes construction of a 100-km long road from the border to Lawngtlai in Mizoram, which is located on the National Highway 54.

On-time delivery

IWAI is responsible for the implementation of the first component estimated to cost Rs 342 crore. The detailed project report (DPR) prepared by Rites in 2003 was revised and updated to suit IWAI’s requirements. IWAI entrusted the job to Essar Projects India Ltd in May 2010, while the actual work started in December.

“The progress of port development and other associated work at Sittwe and other places is satisfactory,” Prasad told Business Line on her return from the project site recently. “Nearly 30 per cent of the job is over and, hopefully, our portion of the job will be complete by December 2013. The Government of Myanmar as well as the local people are extending full cooperation. We’re very happy,” she added.

It has been learnt that Myanmar has provided the required land free of cost for port development work. The requirement, however, has not been much so far — about six hectares in Sittwe and another three hectares or so at Paletwa.

The IWAI Chairperson sounded bullish about the project, more so because India’s bid to transport goods to the North-East through Bangladesh has not been much of a success.

“Although we have a 40-year-old protocol on transit and trade with Bangladesh, our bid to have transit facility to move cargo by barges to Assam, Tripura and other parts of the North-East through Bangladesh met with limited success. The protocol route is used almost entirely for bilateral trade dominated by vessels carrying Bangladesh flag and hardly anything for the transit trade,” she said. “We, therefore, critically need an alternative transit facility for our people in the North-East.”

Benefit for North-East

It was felt that the diversion of North-East bound cargo through Sittwe would benefit the North-Eastern states, especially Mizoram, Nagaland and Manipur.

Prasad was particularly emphatic about the movement of containerised cargo on the proposed route. “This will be in line with the current international practice,” she said. “Also, goods transported in containers will be fully protected from safety and security point of view.”

But the problem is that the issue of movement of containers is not incorporated either in the bilateral agreement or in the DPR and for this reason the Ministry of External Affairs is yet to take a call on it, although the Myanmarese authorities are believed to be enthusiastic about it. “We have taken up the matter with our External Affairs Ministry which is yet to respond,” Prasad said.

But then, the port will not be able to function even if IWAI’s part of the job is completed within the scheduled time. This is because the construction of road, both within Myanmar and India, is also critical for the project.

The work on the 125-km-long road between Paletwa and Myeikwa near Mizoram on the Indo-Myanmarese border is yet to start. The Ministry of External Affairs has got a DPR prepared separately for this stretch and, as inquiries reveal, a reputed Myanmarese company with proven track record will most probably be given the job. However, nothing has been finalised as yet.

The construction of the 100-km-long road within India from the Indian side of the Indo-Myanmarese border to Lawngtlai on NH 54 has started.

The entire job has been divided into three sections and given to three Indian firms and is being implemented by the Ministry of Roads and Highways.

Nargesh Keisham: A Manipuri Entrepreneur

Imphal, May 17 : Young entrepreneurs in the state are coming up with innovative business models that not only generate employment and revenue, but serve a larger social purpose, like prevention of global warming.

Nargesh Keisham is one such young man. Founder and Chairman of Sui Generis Inc that produces caffeine free Cymbopogon Cytratus tea, he started his venture in 2006 by planting several lemon grass saplings in half an acre of land.

The caffeine free tea is fast gaining popularity in the local market due to its medicinal properties.

Today he employs 50 people and produces 3000 tea packets monthly.

Keisham is optimistic about the growth of his company and has plans to expand his venture too.

' In another 7 to 8 months, we will be in a position to produce 1-lakh packets in a month. Then there will be around 200 or more employees. In the coming 5 years we are going to produce 10 lakh products per month and we will be generating around 5000 employment opportunities,'he said.

Sui Generis Inc. owns large tracts of land and grows Lemon Grass, Patchouli, Sandalwood and Jatropha.

It is also venturing into extraction of oil from Lemongrass that has medicinal usage and is used in perfumes and cosmetics.

In about five years, Nargesh has made it big and is a source of inspiration for the youth.

' My vision in this company is that we can generate a lot of employment for the youth of Manipur so that it will also change the economic scenario of the region,' said T. H. Ranjan, COO of the company.

The workers are happy at Sui Generis and are able to look after their families with the money that they earn.

' I have learnt many things about these products. I am earning well and have enough for my household and enough for my personal expenditure,' said Indu Devi, a worker at the company.

Nargesh was also behind the 'Plant a Million Tree Campaign' in Manipur.

He is now trying to market his products across the country.

Singapore Seeks To Strengthen Business in Northeast

Guwahati, May 10 : Singapore foreign minister K Shanmughan on Wednesday said his country wanted to strengthen business in the northeast with hospitality and tourism as the major potential areas of cooperation.

"Assam and the northeast are generally not identified as business destinations, but the region has a lot of potential," Shanmugam, who is on a day-long trip here, said while addressing local industry leaders and senior government officials.

"It is heartening to know that the security situation is improving in the region. The region is exciting from the point of view of the hospitality sector and we believe there is opportunity for Singapore business houses to tap the potential of hospitality in this region," he said.

Singapore, one of the founding members of Asean, is also looking at the northeast as a bridge between it and India. "We think Assam and the northeast has potential beyond investment destinations. There is also the issue of connectivity," he said.

"There are plans within the Asean to establish strong connectivity between the north and south and I know that the Indian government is also looking to connect the northeast to some of the Asean countries. These plans have to be taken further," Shanmugam said.

He said another India-Asean car rally, on the lines of the one undertaken in 2004, is being planned. "We are planning another car rally. This time it will culminate in Guwahati," the minister said.

Shut Down Air India? Who Else Will Fly To Northeast India?

Airlines in the red, rising airfares and a sick industry - civil aviation minister and Rashtriya Lok Dal chief Ajit Singh may have run into rough weather in his new job, but the pressures of his work sit lightly on him.

He tells Shobha John that though this happened because of too-fast growth, it's a passing phase as aviation is at take-off stage with a growing middle-class demand and great potential in tier 2 and 3 cities.

Airport charges in Delhi have been hiked greatly. What's the use of privatization if passengers are going to be burdened further?

These charges go up over a five-year period. For the last three years, they didn't . So the airport is trying to recover them now and there will be a steep rise. Meanwhile, in less than two years, user development fees will be non-existent.

Air India has been given a Rs 30,000 crore equity infusion. Will it give the much-needed impetus for a turnaround ?

AI's equity and interest rate ratio was skewed. Its interest burden should go down by Rs 1,000 crore a year with this infusion. But don't forget, this is a service industry and the customer is king. AI has to change its culture. It had an excellent reputation but we have to infuse fresh spirit. Of course, the merger of AI and IA created problems. But there will be parity in pay scales between both after implementation of the Dharmadhikari report. And no one will be laid off.

What are your plans for AI's turnaround ?

We have set stringent milestones. We cannot keep pouring public money into AI. With Rs 43,000 crore debt, no one will buy this airline. Its ontime performance has to go up from the present 72% to 90% in two years, passenger load factor should be 73% by 2015 and teams will be appointed for speedy monetization of its assets, be it property or paintings. They will decide whether to lease or sell them.

We hope to generate Rs 5,000 crore in 10 years this way. As regards fleet utilization and yield, by 2013-14 , the difference between AI and the market leader should not be less than 3% and 5% respectively. And while its employee/ plane ratio is considered high, it's similar to airlines in France and the UK.

Also, don't forget the services AI offers --ground handling and engineering MRO (maintenance, repair and overhaul) facilities. With both expected to be hived off, AI can service other airlines too.

But there are calls for AI to be shut down.

We cannot shut it down. If we did, what would happen to connectivity to the north-east ? Who would do the uneconomical routes? People don't realize the consequences of shutting down AI. This is not a free-market enterprise.

Will FDI in aviation take off or flounder like in retail?

I am hopeful. We want other airlines to invest here. The commerce ministry hasn't got any objections in this regard . FDI in retail is different as it affects far more lives than aviation does.

Detractors say FDI is being brought in to favour Kingfisher.

People said the same thing when we allowed import of ATF ( aviation turbine fuel). But which was the first airline to do so? SpiceJet. Policies aren't meant for one airline alone. Already, there is 100% FDI in cargo and 74% in non-scheduled operations. Routes will also be vetted by the home ministry, so where's the problem? We've also given licenses to eight regional airlines.

You said Kingfisher can't be closed down just because it's making losses . But shouldn't tougher action be taken if passengers suffer?
Yes, Kingfisher didn't stick to its promises twice but when the government said it won't bail it out, the airline came around. It needs capital infusion but it's for the owner to decide.

But the real reason for floundering airlines is high ATF prices and sales tax on it. If Chhattisgarh and Kerala can reduce sales tax from 32% to 4%, why can't others?
We have appealed to states but haven't got much response. We will keep at it. States should realize that reduced sales tax will increase business and tourism.

Some foreign carriers want to increase flights to India after exhausting their bilateral rights. Will India ask for similar rights?

We have given the okay for 250 new flights to countries such as Kazakhstan and in a few months, this will go up to 400. Until India exhausts its bilateral rights, we won't give more to foreign airlines. India should have become a major aviation hub by now.

Maruti Ertiga Launched; Expects Growth in Northeast India

Guwahati, Apr 13 : The country's largest carmaker Maruti Suzuki India (MSI) is looking at a double-digit sales growth in the north eastern market in 2012-13.

"We expect the car market to grow by at least 10 per cent nationally this fiscal. Similarly, we are also expecting a similar jump in our sales including in the north eastern states," MSI Chief General Manager (Parts & Accessories) Amitava Roy said.

He was speaking on the sidelines of the launch of the company's multi-purpose vehicle 'Ertiga' here. The company had sold over 36,000 units of its various models in the north eastern states in 2011-12. Its compact car 'Alto' contributed to over 40 per cent of the total sales.

"We are also looking at ramping up our dealership network in the region along with rest of India," Roy said without quoting any figures. MSI currently has 19 retail outlets and 12 e-outlets in the North East.

Roy said MSI expected the Ertega to perform well in Assam and the north eastern region. MSI formally made its foray into the multi-purpose vehicle segment with the launch of Ertiga at an introductory price of up to Rs 8.81 lakh (ex-showroom Guwahati). The car would be available in both petrol and diesel variants.

"This is a family vehicle but for multiple purposes and we are tyring to create a new segment with the Ertiga," Roy said. The Ertiga will be in the same MPV segment as Toyota's 'Innova' and Mahindra & Mahindra's 'Xylo'.

RBI To Compensate Banks For Loss in Northeast Service

Shillong, Mar 26 : Having prioritised to provide banking service to the people of North-East, Reserve Bank of India had decided to compensate commercial banks for revenue loss in the process, RBI officials said on Friday.

"RBI will compensate 100 percent revenue loss to banks for five years as an incentive to push banking inclusion in the region," Deputy General Manger RBI, T Jamang told PTI here on the sideline of an annual payment conference of RBI here.

The parameters set by RBI was that each village or cluster of nearby villages with a population of 2000 people should have a banking facility by March 2012, he said.

However, relaxation would also be given in certain areas in which the population is more than 1000 and more, Jamang said.

"Our intention is to have villages covered by way of banking correspondent and mobile individuals to sensitise people and have them included in banking services," the RBI official said.

Further, the official said the RBI is working on a strategy to improve e-banking penetration in the region which is aimed at giving people easy access to banking.

"We would like to give people mobile banking facilities in which banking transaction need not take place at the banks but at their fingertips," he said.

US Keen To Invest in Northeast India

Guwahati, Feb 27 : United States Ambassador Peter Burleigh on Saturday said trade missions from his country will visit the north eastern region soon to explore possibility of investment in key sectors.

"Trade missions of US to India's major cities are going on and we are in the process of expanding it to other areas including the north east," he told reporters here.

"We are learning about increasing business opportunities in the N E region and American companies have shown interest for investments," the envoy, who is on a visit to Assam and Arunachal Pradesh, said.

Climate change and renewal of energy were being focussed on by the USA, Burleigh said his country was, however, open to collaboration in almost all major areas of interest. "We are open to exploring virtually any area for investment."

USA was currently participating in a conservation programme at Kaziranga National Park in Assam, he said and expressed satisfaction at the 'amazing' pace of development activities taking place in the state and its congenial atmosphere for investment.