Today's Biz Bit

• Govt has announced the guidelines for 3G services, introduction of mobile number portability (MNP) and broadband wireless access (BWA) services spectrum (popularly called WiMAX). Govt plans to award 3G spectrum for 5 players per circle in the first phase, though for spectrum-scarce cities like Delhi and Mumbai, only two to three 3G service providers may be allowed. DoT has set a reserve price for a pan-India 3G licence at Rs 2,020 crore, which is the minimum price a company must pay for these frequencies. Also, new entrants, successful in their 3G bids, must acquire a telecom licence at Rs 1,651 crore, over and above their bid price. International players will have to furnish proof that they are experienced in providing 3G services. One slot of 3G frequencies will be reserved for the MTNL and BSNL, who will not participate in the auction but will match the price of the highest bidders. They will be given the 3G spectrum immediately. Govt proposes to conduct 3G airwaves auction by year-end. As for MNP, DoT will within a fortnight issue a RFP for selecting 2 centralised operators to administer and implement the service. (ET)
• According to sources, FM has proposed to shorten the period of trading used to compute the price at which equity shares could be issued in global markets. The intention is to compress it to the higher of the two months’ average price (from the current six months) or 15 days average price preceding the decision to issue shares overseas. FM also wants to remove the requirement for closing prices to be calculated one month before shareholders decide to raise capital abroad. (ET)
• According to sources, the FM has sought views of concerned departments — banking, insurance and postal — on making PAN mandatory for instruments such as bank account, insurance products, financial instruments sold by postal department like National Savings Certificate, Indira Vikas Patra, in line with finance minister P Chidambaram’s budget 2008-09 announcement. Suitable threshold limits would be provided for quoting of PAN especially for postal savings instruments. (ET)
• Govt is learnt to be planning to ensure dedicated express rail and road connectivity for future greenfield airports by making mandatory connectivity by mass rapid transit system to airports a part of the airport’s master plan. The move comes in wake of connectivity problem being faced by people to reach the newly-commissioned Hyderabad and Bangalore airports. (ET)
• According to sources, IRDA may reduce the mandatory solvency margin from 150% to 100% soon thus effectively reducing insurance company’s promoters’ quantum of infusion of funds into their insurance ventures. (ET)
• Bombay High Court has, in a recent case, filed by Retailers Association of India challenging the provision to levy 12% service tax on commercial rentals as unconstitutional, granted interim relief from payment of service tax on rents of immovable property till final order in this regard is issued by SC. (ET)
• Defence Minister AK Antony has released Defence Procurement Policy of 2008 (DPP 2008) which will govern defence procurements over next two years and shall supersede the earlier DPP-2006. The new policy will take effect from September 1 this year. The new offset policy permits foreign vendors to bank offsets towards a future contract liability which banked offsets can be utilised against any tender that is issued within two years of the date when offsets were banked. If a foreign vendor joins an offset-related partnership with a private Indian company, the Indian partner will not need a defence-manufacturing licence from the Ministry of Defence (MoD). The new policy also waives offset liabilities on any procurement under the fast-track procedure, which is employed when Indian needs defence goods in an emergency. Another step in the DPP-2008 is a two-year "roll-on acquisition plan", in which procurement projects do not lapse at the end of a financial year; instead, they are included in the next years Annual Acquisition Plan. Another important decision in the DPP-2008 grants procurement powers to the military for purchases up to Rs 50 crore; and the defence secretary can sanction up to Rs 75 crore worth of purchases. (BS)