Presented by :

Nagender Singh Shekhawat

Weekly news from 11 Oct- 16 Oct

2010

Tata Motors has a major task at hand—to distance itself from the tag of being the brand preferred by the cab industry. And with Aria, its latest crossover, it’s the brand value and positioning which the company intends to change.

From being the taxi driver’s first choice it wishes to become the rich man’s ride.

Aria surely being in its first generation avatar is spanking new in every aspect, except the engine which has been borrowed from the Safari.

Tata eyes change in brand value

through Aria SUV

Cont..

Aria is a totally non-Tata like plush interior. In fact

from the seats to the dash design to the various

cubbyholes, it seems as if a lot of attention to

details has been given.

Obama India visit: Indian jet deal

may

create 27,000 jobs in US The Obama Administration is eyeing on the

lucrative multi-billion dollar tender for medium multi-role combat aircraft of Indian Air Force as this has the potential to create a whooping 27,000 jobs in the US.

At a time, when unemployment rate continues to be at low ebb and US President Barack Obama is struggling to create fresh jobs; such a deal bagged by an American company could give him a big political boost.

Two major fighter jet manufacturing company -Boeing and Lockheed Martin - are vying for the $10 bn Indian tender; which is expected to raised by the US officials during the November India visit of the US President.

LSE, Reliance Foundation to set

up universities in India

The London School of Economics will

collaborate with Reliance Foundation, run by

the promoters of India's largest corporate

house, for setting up world-class universities

in the South-Asian nation.

It would be a university with global standards.

THE government could replicate the hugely successful 3G airwave auction model in highway projects as it looks to drive down costs and increase transparency amid a raging debate over the new rules for awarding road contracts.

The government raised Rs 1,05,000 crore from 3G and broadband auctions against the target of Rs 35,000 crore. The windfall is expected to help the government contain the fiscal deficit to the target of 5.5% of the gross domestic product.

Some countries have used auction for infrastructure projects. In an oft quoted case, a consortium that included India’s GMR Infrastructure had won the rights for a second airport in Istanbul in 2007 in an open bidding.

The advantage of this method is that it is transparent, efficient and minimises possibilities of cartelisation.

3G auction model for highway

projects mooted

Cont.. The basis of bidding could be the internal rate of return,

with the developer quoting the lowest IRR being awarded the project. The project with the lowest IRR would be the least expensive because of the low margin demanded by the developer.

The auction method can minimise outflows of the government.

The new proposal follows a public spat between the Planning Commission and the roads ministry over the modification to the bidding rule put out by the National Highways Authority of India early this year.

The new rules bar a company from bidding for more projects if it has already won three road projects, but not achieved financial closure. They also impose restrictions on sub-contracting.

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