• TRAI to get teeth in effort to improve cell services
• SEZs to get leeway in power distribution
• Road map for wireless licences in the offing
• Foreign airlines’ FDI bid crashes again
• DoT to seek MCA’s views on Loop Telecom again
• MRTPC to make way for CCI from Sept
• SC to decide if premier petrol and diesel attract excise duty
• Creeping acquisition guideline to stay put
• Wockhardt sells 10 hospitals to Fortis
• According to sources, govt will empower regulator TRAI to temporarily suspend an operator’s licence or levy on it a hefty penalty for not meeting minimum standards. Once this crucial change is made in the powers of the regulator, it would be able to effectively rein in errant operators. Govt is currently studying the punitive powers that overseas regulators have in this regard. The move comes in wake of frequent complaints from consumer organisations about cellular service quality. (FE)
• The commerce ministry is learnt to be pushing for removal of licensing requirements needed to distribute power to factories, business outsourcing units, software developers and social infrastructure like hospitals and malls located inside SEZ . The power and commerce ministry are learnt to be in the advanced stages of inter-departmental talks in this regard and hope to present the proposal for Parliament's approval in the winter session. However, a SEZ developer will have to obtain a licence if it wants to distribute power outside the zone. (FE)
• According to sources, govt will soon set up a committee to prepare a road map for issuing long-term wireless licences to mobile operators, broadcasters and other private and public captive users like the defence forces, security agencies and the police. The move may see a complete overhauling of the Wireless and Planning Coordination wing of the DoT and a gradual shift towards delicensing of wireless (spectrum) licences. (FE)
• According to sources, Govt has put on hold aviation ministry’s plan to let foreign carriers own 25% in Indian Airlines on security considerations and chaotic global aviation scenario. The civil aviation ministry had sent a proposal to the DIPP for allowing foreign carriers to invest in domestic airlines to facilitate liquidity at the loss-making domestic airlines. The move was aimed at making liquidity available for loss-laden domestic carriers. (ET)
• DoT is learnt to be considering approaching Ministry of Corporate Affairs (MCA) once again to look into the alleged violation of telecom licence guidelines by Loop Telecom, a new entrant linked to the Essar group. The move is aimed at ensuring that any show-cause notice or quasi-legal process by DoT withstands judicial scrutiny at a later stage. Reserve Bank of India (RBI) and Central Bureau of Investigation (CBI) have already said that there is no explicit violation of policy and there is no criminal angle to the case. (ET)
• Monopolies and Restrictive Practices Commission (MRTPC), country’s fair trade regulator for four decades, would begin the process of giving way to the new Competition Commission of India on September 1, 2009. The Ministry of Corporate Affairs is set to notify Section 66 of the Competition Act in September, which will lead to repealing the Monopolies and Restrictive Trade Practices Act of 1969. (ET)
• Supreme Court has decided to examine whether the process of addition of multi-functional additives (MFAs) to petrol and diesel and retailing them as premium brands amounts to manufacturing for the purpose of imposition of excise duty. The Central Excise department has approached the apex court challenging order of the Customs, Excise &Service Tax Appellate Tribunal (CESTAT) on the issue stating that CESTAT has erred in holding that blending of motor spirit (MS) with MFA does not amount to manufacture and thus failed to consider the fact that blending of MS with MFA gives rise to a product, Speed, with distinct brand name and usage. (ET)
• Govt and SEBI have decided against rolling back a temporary measure taken in October 2008 that allowed promoters with 51% or more to raise their stake to 75%, which was due for a review this year. The move has major ramifications on how the govt and SEBI will go ahead with a plan that requires companies to have a 25% public float to remain listed—a proposal finance minister Pranab Mukherjee highlighted in this year’s budget speech. (ET)
• Habil Khorakiwala-promoted Wockhardt Hospitals has agreed to sell 10 of its hospitals to Fortis Healthcare for Rs 909 crore, in the biggest healthcare deal in the country. The acquisition narrows the gap between Fortis and the largest Indian healthcare player, the Apollo group, and also reduces the debt burden for Wockhardt Hospitals. The deal includes eight functioning hospitals of Wockhardt and Rs 190 crore towards capital for two under construction. The acquisition will enable Wockhardt Hospitals to clear Rs 500 crore it had borrowed earlier to expand its business. (ET)
