IMTMA Supports Indian Machine Tools for MSME Tool Rooms

Recently, the Ministry of Micro, Small and Medium Enterprises (MSME) with a view to modernize Tools Rooms and Training Centers had floated a tender with the assistance of the World Bank to acquire CNC Machines, Measuring Instruments and Accessories. 

Indian machine tool manufacturers had bid for this tender. However, none of the Indian machines offered were selected due to some minor deviations from the tender specifications, while international vendors were selected.

In this context, IMTMA is working closely with the Ministry of MSME and other government departments requesting a reconsideration of the offers submitted by Indian manufacturers, who are members of IMTMA. We are hoping that our request will be considered.

About IMTMA

IMTMA was formed in 1946 the year before India got its independence when around 20 machine tool manufacturers joined hands to form an Association. Over a period of over seven decades it has grown in size to have more than 450 members representing around 90% of the organized machine tool and allied equipment manufacturers as on date.

Today, IMTMA is the apex body and single point of contact for the entire machine tool industry of India and plays a critical role in the development of the metalworking industry.

A not-for-profit association, IMTMA’s initiatives range from government advocacy to industry and export promotion, trade fairs and events, training and seminars, technology missions, publication of various industry and technical writings, structuring of regional councils, and development of clusters.

Arabic portal Maktoob acquired by Yahoo!

Internet major Yahoo! Inc. today announced that it has entered into a definitive agreement to acquire Maktoob.com, an online community in the Arab world, with more than 16.5 million users. Though the transaction is expected to be completed in the fourth quarter of 2009, the financial details of the deal is not yet known.

"This acquisition will accelerate Yahoo!'s strategy of expanding in high-growth in emerging markets where we believe Yahoo! has unparalleled opportunity to become the destination of choice for consumers," said Yahoo! chief executive officer Carol Bartz in a statement.

According to Yahoo!, this acquisition will extend its current offerings by adding capabilities to deliver relevant Arabic-language content and services, as well as Arabic versions of Yahoo!'s popular Yahoo! Messenger and Yahoo! Mail services.

"Yahoo! and Maktoob are natural partners and this combination should help energize the Internet market in the region as a whole. We are excited about Yahoo! building a stronger presence in the Middle East and bringing its compelling suite of services to Arab users in Arabic," said Samih Toukan, founder of Maktoob.

While Internet usage in the Middle East has grown more than tenfold since 2000, most markets are still in the early stages of adoption. According to the World Bank, there are more than 320 million Arabic speakers worldwide, while less than one per cent of all online content is in Arabic, said the Yahoo press release.

Maktoob.com was founded in 2000 by Samih Toukan and Hussam Khoury as the world's first free Arabic/English Web-based email service, and since then has grown to be the leading Arab online community in the region.

Keith Nilsson, senior vice president, Emerging Markets, Yahoo!, said, "We see great growth potential in both audience and advertising in the Arab world and combining with Maktoob.com will allow us to quickly build our presence there with high quality products. This is a big win for publishers, advertisers, and consumers in the region."

Yahoo said this acquisition is part of its larger strategy to grow its business throughout the world's emerging markets by connecting consumers with the content and services that matter most to them in their local language.

Following the acquisition, Maktoob.com will become a wholly-owned subsidiary of Yahoo!. Ahmed Nassef, the current general manager of Maktoob.com, will continue to lead the Maktoob.com teams and will report to Keith Nilsson, said the release.

Agencies

Will broadband, mobile be key drivers to economic growth?

Access to affordable high-speed Internet and mobile phone service are key to economic growth and job creation in developing countries, the World Bank said in a report.

The report, Information and Communications for Development 2009, found that for every 10 percentage-point increase in high-speed Internet connections there is an increase in economic growth of 1.3 percentage points.

"Internet users in developing countries increased tenfold from 2000 to 2007, and there are now over four billion mobile phone subscribers in developing countries," said Mohsen Khalil, World Bank group director for global information and communication technologies.

"These technologies offer tremendous opportunities," Khalil said. "Governments can work with the private sector to accelerate rollout of broadband networks, and to extend access to low-income consumers."

The report identified the mobile platform as the "single most powerful way to reach and deliver public and private services to hundreds of millions of people in remote and rural areas across the developing world."

Broadband provides the basis for local information technology (IT) services industries which create youth employment, increase productivity and exports, and promote social inclusion, it said.

"Currently though, few people in developing economies have access to broadband networks," the report said. "In 2007, an average of less than five percent of the population of low-income economies was connected to broadband networks
, and that was mostly in urban centers."

"Access to broadband completes the information foundation for a modern economy and should be a priority in national development plans," said Katherine Sierra, World Bank vice president for sustainable development.

"Governments can play a key role in expanding broadband access by policies and incentives that encourage competition and private investment," she said.

The World Bank supports information and communications technology projects in more than 100 countries with a portfolio of more than three billion dollars.

Agencies

World Bank Allots $1 billion for Indian Infrastructure Projects

The World Bank's lending arm, International Finance Corporation (IFC) has allocated $1 billion (Rs.5000 crore approx.) for India for the coming fiscal ending June 2010. "I think we would remain at the one billion dollar figure more or less for the next one or two years," Vipul Bhagat, South Asia Manager-Infrastructure Advisory, IFC said.

It is the infrastructure projects, which will benefit the most as about 50 percent of the total IFC investment in the country will be in this sector. "Infrastructure is a focus area for IFC especially because the Indian government has told IFC to do more in that sector," he added on the sidelines of a book release function organized by the CII and IFC.

The lending body also plans to invest in agriculture and rural development among others. IFC maintains that the economic slowdown has not impacted its investment plans and it faces no liquidity problem.

Agencies

India retains its leadership on global IT export, says World Bank

The World Bank on Wednesday said India leads all countries in exports of information communication technology (ICT) services.

In its latest report 'World Development Indicators 2009', World Bank said India's exports from the ICT sector increased from about $5 billion in 2000 to over $ 30 billion in 2006. This accounts for about 42 per cent of total service exports, it said.

At a time when there is a global recession and hundreds and thousands of people are being laid off, India's software industry employs about 1.6 million people, the report said.

China, though a distant second, is the next largest ICT services trader, with about $5.5 billion in ICT service exports, the report said.

The report said China and India were among the fastest-growing exporters. Export growth was led by manufactures in China and by services in India, it said.

Agencies

India next to US in anti-dumping measures, says World Bank

With protectionism emerging as a major threat to the global trade flow, data compiled by World Bank shows that India is next only to the US in terms of new anti-dumping measures imposed by their respective governments.

Besides, the number of such measures increased substantially in the second half of 2008 in both countries, World Bank has said in its background paper for the G20 Finance Ministers and Central Bank Governors Meeting later this week in the UK.

The US imposed over 20 new anti-dumping measures during the July-December period in 2008, followed by 15 such measures by the Indian authorities.

As per the data compiled by the multilateral lending agency, India took more than 10 fresh anti-dumping measures in the first half of 2008 -- higher than any other country during that period -- while the US imposed less than five such measures.

Other countries where new anti-dumping measures are on the rise include Brazil and Canada, while European Union, South Korea and Egypt saw the number of such initiatives declining in the second half of 2008.

Agencies

World Bank says eight-year ban on Satyam can be reviewed !

Giving some hope to crisis-ridden Satyam, the World Bank has said it could review the eight-year ban imposed on the company provided the software exporter takes "corrective action".

A World Bank official said Satyam has to show it has again become a responsible vendor to do business with, when asked whether the multilateral lending agency would relax the ban on the software exporter.

"The vendor would have to demonstrate (that) corrective action had been taken to address the original causes of the ... ineligibility," a World Bank official from Washington said in an emailed statement.

The official further said action should substantiate that Satyam is "again a responsible vendor with whom the Bank can do business".

The World Bank banned Satyam Computer Services for eight years in 2008 for providing "improper benefits" to Bank staff and for failing to maintain records relating to fees charged for sub-contractors.

Satyam has a strong case for a review of the ban since its old board and management have been changed after its disgraced founder Chairman B Ramalinga Raju admitted to fudging accounts to the tune of Rs 7,800 crore.

Agencies

Teja Raju appointed new CEO of Maytas Infra

Maytas Infra, promoted by Ramalinga Raju, Chairman of Satyam Computer Services and his sons, has appointed Teja Raju as the new Chief Executive Officer of the company. He will be assuming the role of a CEO in addition to he present charge he holds as the Vice President of the company, said a spokeswoman of the company.

The move comes close on the heels of CEO of Maytas Infra P K Madhav's arrest, for allegedly defaulting payments to investors of Nagarjuna Finance Limited (NFL) to the tune of Rs 100 crore. PK Madhav was on the Board when NFL raised money.

"PK Madhav is presently under judicial remand and Teja Raju will be the CEO of the company till the law takes course," said the spokeswoman of Maytas Infra.

Satyam Computer Services was to acquire 51% stake in Maytas Infra, but was aborted following investor's ire to call off the deal. The promotes of Maytas Infra including Ramalinga Raju and his sons hold 36.64 per cent stake in the company.

Nasscom no authority to probe Satyam-WB episode, reacts Som Mittal

Reacting to a request by an IT-BPO union UNITES to conduct inquiry into the Satyam-World Bank fiasco, IT industry body Nasscom on Friday said that it has no authority to look into the matter.

"It is a company-level issue and we do not have any authority to conduct an inquiry into the matter," Nasscom President Som Mittal said, adding that he was yet to received a formal request in this regard.

Fearing that the image of the Indian IT firms globally will take a beating following the Satyam fiasco, IT-BPO union UNITES has urged Nasscom to institute an inquiry in association with the World Bank on Satyam,which has been banned from doing business with the bank for eight years.

"We want the inquiry to look into the possibility that some vested interests, who want to tarnish the good name and reputation of the Indian IT companies," Prithviraj Lekkad, President, UNITES Professionals India told PTI.

Nasscom and the government would have to decisively intervene and get to the bottom of the World Bank findings on Satyam and clear the fair name of Indian firms, including Satyam, and the integrity of the staff working for them abroad, he added.

The Bank had said on December 23said, "Satyam was declared ineligible for contracts for providing improper benefits to Bank staff and for failing to maintain documentation to support fees charges for its sub-contractors.

Within two days of the Bank's announcement, Satyam had formally requested the World Bank to immediately withdraw those statements and asked it to "issue a new statement apologising to Satyam for the harm done to the company due to the Bank's actions."

Source: Agencies

World Bank rejects Satyam's demand for an apology

The World Bank has rejected Satyam Computer Service’s demand to withdraw a statement by which the organisation imposed an eight-year ban on any business with the IT major.

Satyam Computers had earlier asked the international lender for an apology for its statement on the IT major's failure to give proper documentation on fees charged for sub-contractors, and asked the Bank to withdraw the statement.

"The Bank stands by its statement issued on its Indian website on December 23," the India spokesperson of the World Bank Sudip Mazumder said.

The World Bank had said on December 23 said that "Satyam was declared ineligible for contracts for providing improper benefits to Bank staff and for failing to maintain documentation to support fees charges for its sub- contractors."

Asked if the Bank would apologies as demanded by Satyam, he said any comment if at all had to come from the headquarters in Washington, but the Bank stands by its statement.

He said "It will be in appropriate to comment on Satyam's statement since I have not received it or read it."

It is important to note that these developments are based out of our headquarters in Washington and are not related to Bank's India Programme," Mazumder said.

Within two days of the Bank's announcement, Satyam had formally requested the World Bank to immediately withdraw those statements and asked it to "issue a new statement apologising to Satyam for the harm done to the company due to the Bank's actions."

Satyam, which is already reeling under a crisis over aborted acquisition of two firms promoted by family of Chairman Ramalinga Raju, advised the Bank that the IT firm would evaluate all options in view of both the Bank's "inappropriate" public statements and its response to Satyam's requests.

"Satyam usually does not comment publicly on matters involving our customer relationships. However, the inaccuracy and inappropriateness of the World Bank's public statements regarding Satyam has forced us to issue this brief statement in order to set the record straight," it added.

The issue will now come up for discussion at the December 29 Board meeting of the company, against which the Bank has imposed an eight-year ban.

Source: Agencies

World Bank warns of a very deep global recession

Economic growth prospects for both high income and developing countries have deteriorated substantially and the deep global recession cannot be ruled out, the World Bank said on Tuesday.

The international banking crisis that erupted in September 2008 after more than a year of less acute financial turmoil has substantially reinforced the cylical downturn that was already under way, the bank said a report devoted to assessing economic prospects for 2009.

``Following the insolvency of a large number of banks and financial institutions in the United States, Europe and the developing world, financial conditions have become much tighter , capital flows to developing countries have dried up and huge amounts of market capitalization have evaporated,'' the bank said.

The bank predicted world economic growth will be 2.5 per cent in 2008 and 0.9 percent in 2009. It said developing countries will likely grow 4.5 percent next year, down from 7.9 per cent in 2007, while growth in high income countries will turn negative.

Even if the strong measures governments took to restore confidence in the international banking system work and credit begins to thaw, a number of developing countries are likely to be subjected to substantial strains, possibly including bank failures and currency crises, the bank said.

``In these very uncertain circumstances,” the bank said, ``policy makers must place a premium on reducing the likelihood of domestic turmoil by reacting swiftly and forcefully to emerging difficulties, including, if necessary, seeking assistance from the International Monetary Fund.'''

The IMF provides rescue packages to countries experiencing financial crises while the bank, its sister institution, lends money or makes grants for development projects.

``People in the developing world have had to deal with two major external shocks, the upward spiral in food and fuel prices followed by the financial crisis, which has eased tensions in commodity markets but is testing banking systems and threatening job losses around the world,'' said Justin Lin, the bank's chief economist ``Urgent steps are needed to help reduce fallout from the crisis on the real economy and on the poorest.''

In response to the crisis the bank said it was increasing its support for developing countries, through new spending commitments of up to $100 million over the next three years. The bank said its private sector arm, the International Finance Corp, would help by providing trade financing, helping banks recapitalize or aiding infrastructure projects facing financial distress.


Source: Agencies