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UBS opens BPO service centre

UBS AG, a global leader in financial services company, has opened the UBS India Service Centre in the financial district at Khanamet.

The 11.5-acre campus would be an offshore centre for the Swiss company, offering knowledge services, including research and analytics, business process offshoring and IT infrastructure support.

In the first phase, the facility would house 180 staff (with a total capacity of 450 seats). By next year, the capacity would go up to 1,500, said Mr Seth Cohen, Head of the Group's offshoring.

The company has earmarked investments to the tune of 50 million Swiss francs for the facility. Explaining the rationale in setting up the facility in Hyderabad, Mr Cohen said that the huge pool of talented workforce was the important consideration for the company. It was this aspect, and not cost arbitrage, that made the company to look at this site. "It is an outlet for us in attracting talent," he said.

Announcing the launch at a press conference here on Monday, Mr Clive Standish, Chief Financial Officer, UBS, said the company had applied for banking licence. And it was in the process.

Stating that Indian market had come of age, he said the company had a long-term view on the country. He foresaw an increase of interest rates in the US by 0.5 per cent and 0.25 per cent in India.

Later, he called on the Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy.

Lessons from grassroots

The Indian School of Business in Hyderabad has the best faculty picked from all parts of globe to impart the best education. However, when it comes to crucial lessons like Six Sigma Performance and Supply Management Chain or Logistics there can be no better example than the Mumbai dabbawallahs.

Sure the faculty and the students of Indian School of Business, Hyderabad never had such an experience of learning one of the important lessons of business management. For the first time in ISB the Mumbai Dabbawallahs Association was roped in to impart their world renowned Grassroots approach to logistics.

The high profile teachers and the equally high profile students of ISB were recently enlightened by the Mumbai Dabbawallah Association on the theme of Grassroots Approach to Logistics.

Sure the faculty and the students of Indian School of Business, Hyderabad never had such an experience of learning one of the important lessons of business management. For the first time in ISB the Mumbai Dabbawallahs Association was roped in to impart their world renowned Grassroots approach to logistics.

Though the average literacy rate of dabbawallahs is eighth standard while the rest of them are called Thumbs Up (Angootha Chaap), its secretary Gangaram Talekar showed the learned audience through a Power Point Presentation as to how a grassroots approach can also make their example world renowned. The ISB gathering will never forget Gangaram's interpretation of Six Sigma Rating for the best time management.

Laced with humour, the audience appreciated Mumbai Dabbawallahs for their real life examples with thunderous claps. In the two-hour session, the Dabbawallahs Association explained mainly the organisational structure, operations, coding system, war against time among various other aspects.

Prof. Viswanadham N, executive director of ISB explains, "the Dabbawallahs continue to deliver dabbas with amazing precision which they started 114 years back and no wonder they are the best example and study in business management."

Gangaram elaborated "We got this six Sigma thing, which two of our dabbawallahs wanted to know were Sona or Pittal. They were kept in our office cupboard, but later two other gentlemen accompanying us said you were awarded along with Motorola. Motorola, dabbawala, both have la in common so we are bhai bhai".

Johnson said "We have courses in statistics, about three sigma and six sigma. We had learnt in theory but Mumbai Dabbawallas have taught us how to put them into practice."

Viswanadham adds, "When I teach logistics, I teach them about containering, cross stocking, merchant transport, customer satisfaction and delivery. Well, this dabbawallas just do it with fine precision. It is amazing."

Zenotech earmarks Rs 60cr investments

Zenotech Laboratories Limited, which had achieved breakeven last year, would be investing about Rs 60 crore in the current year in product development and new facilities.

According to chairman and managing director Jayaram Chigurupati, Zenotech is fast emerging as a speciality generic injectables company and would be launching five new anaesthesia products in a month.

The company, which started its operations in 2003, currently has 15 chemical oncology products. Refusing to comment on the reports that Ranbaxy Laboratories was likely to acquire 10 per cent of the equity of Zenotech, Chigurupati said that the company was setting up a 100 per cent export-oriented facility at its 50-acre site adjacent to Shapoorji Pallonji Biotech Park near Hyderabad.

At present, Zenotech has a 1.1-lakh sft biologics manufacturing facility at the place.

He said that development of generic biopharmaceuticals and their formulations would continue to remain the main focus for research activities in the company. During 2005-06, the company's turnover stood at Rs 13.5 crore.

New President for HYSEA

Dr Anil K. Jampala, Vice-President of Satyam Computer Services, has been elected President of Hyderabad Software Exporters Association (HYSEA). His election to the post took place at the annual general body meeting of the association recently. Dr Anil will hold the post for two years, a HYSEA press release said here. Mr A.V. Ramam of SSA Global and Mr L. Suresh of Bhrigus have been elected Vice-President and Secretary respectively. Mr Malcolm Wagget, Head of HSBC, had been conferred 'Service to Industry' award at the meeting.

Dacoits in city

Armed dacoits struck at a house at Madhuranagar in Sanjeeva Reddy Nagar early on Sunday and escaped with gold ornaments weighing 30 tolas, Rs. 6,000 cash and other electronic goods. The incident occurred near the house of Superintendent of Police (Intelligence) A. Ravi Chandra.

The five-member gang, suspected to belong to Stuartpuram, unleashed a reign of terror by wielding lethal weapons. They spent three full hours in the house from 2.30 to 5.30 a.m. collecting their booty coolly. Before fleeing they even had a shower! Clad in knickers with 'lungis' and their faces covered with handkerchiefs, the dacoits were conversing in a Telugu accent spoken around Guntur area.

According to the police, the gang entered the house of R. Rajesh, who owns a printing press at Khairatabad, by breaking open window grills with a screwdriver. One offender first entered through the window and opened the bolt of the rear side door. After coming into the house, the gang entered Rajesh's mother Samrajyam's room.

One offender sat on her chest while others encircled her threatening that they would kill her if she raised an alarm. When the elderly woman tried to alert her neighbours, they gagged her mouth and beat her up with the blunt edge of the knife resulting in injuries to her. The intruders then woke up her son Rajesh and daughter-in-law Pavani. They tore a bedsheet and tied their hands and legs with it.

The dacoits later snatched the almirah keys and stole gold jewellery and other valuables, Rajesh told reporters. "They also asked me for liquor or a cool drink. When I told them that I do not consume liquor, they checked a bathroom-cleaning acid bottle kept in a shelf asking whether it was a liquor bottle. They left after taking bath," Rajesh said.

Global workshop on clinical trials

Transworld Institute of Professional Development and Training, a Hyderabad-based non-profit society is organising its second international workshop on clinical trials at Hyderabad. The workshop, being jointly organised by the Indian Pharmaceutical Association (IPA), begins on July 28. Titled 'Compliance in New and Generic Clinical Drug Development', the workshop aims at providing an overview of different issues related to clinical trial compliance during the clinical development of new and generic drugs. According to Transworld, the workshop covers the national and international regulatory framework for clinical compliance, ethics of human subject research, and GCP compliance issues from different stakeholders in clinical trials. One of the key objectives of the workshop is to discuss the important issues that sponsor auditors look into before contracting out the trials, it said.

Christian groups attack IMAX

Christian groups attacked the Prasads Imax theatre, here, where the controversial film 'The Da Vinci Code' was to be released here on Friday.

President of United Front for Dalit Christian Rights G. Alfred said the incident only reflected the growing resentment against the film.

Angry protestors arrived an hour before the scheduled time of the show raising slogans against the film and broke the windowpanes of the ticket counter in the plush multiplex. Dubbing the film "a devil's code", they forced their way in demanding the management to immediately stop the screening.

However, Public Relations Manager of the multiplex Chris Kishen claimed that they had decided to cancel the screening of the film in the morning itself. "We had even put up notices prominently in the theatre, but the protestors did not appear to have seen them," he maintained.

Asked why the screening was cancelled when the High Court had cleared the decks for its release, he said "it being a sensitive issue we did not want to take any risk. Further, with a couple of blockbusters being released the same day and a large number of people thronging the multiplex, we thought it would affect them as also our property."

The Saifabad police booked a case under Section 147(unlawful assembly) and Section 427(damaging property) based on a complaint lodged by security incharge of the multiplex Adinarayana. Archbishop of Hyderabad diocese Marampudi Joji was unavailable for comment as he was in his 'annual recollection', a practice wherein clerics refrain from any kind of communication with others for three days.

President of United Front for Dalit Christian Rights G. Alfred said the incident only reflected the growing resentment against the film. "Different groups are reacting in different ways. We do not know who directed them to do so," he said.

Meanwhile, the State Government is contemplating filing of a writ appeal against the court verdict quashing the ban on the film. With the High Court giving the green signal for the screening on Wednesday and theatres already engaged for this Friday's releases, the film's distributor Sony Pictures had little time to go for a State-wide release and managed to zero in on the Prasads multiplex alone for a low key release.

Science and technology talent crisis

With sectors offering better salaries able to attract talent in the current market-driven economy, science and technology (S&T) is not able to compete effectively in India, despite having a large pool of manpower.

In the next five years there would be a demand for at least 1,000 jobs in research and development (R&D) sector.

If this trend continues concerns are that S&T sector may become weak and devoid of talent. Stating this, the new Secretary, Union Department of Science and Technology (DST), Dr T. Ramasami, argued in favour of creating assured opportunities for talented youth for a career with science.

In the next five years there would be a demand for at least 1,000 jobs in research and development (R&D) sector. Current plans of India towards expansion, inclusion and excellence would demand that career opportunities are expanded to the S&T sector as well, he said while delivering the Prof. Y. Nayudamma Memorial Lecture organised by the Andhra Pradesh Akademi of Sciences here today. At present, about 6,500 students in India graduate annually with doctoral degrees. Estimates reveal that 2,000 of them need to seek careers outside S&T. For an inclusive growth of the country in sectors where excellence was critical, expansion of career opportunities was essential. The S&T departments need to champion for such an initiative by gaining public policy support for S&T, Prof. Ramasami said.

The current S&T ecology does not seem to provide either physical income with career opportunities matching other service sectors or psychic income derived from uninhibited pursuits of passion with science, the former Director of the Central Leather Research Institute (CLRI), Chennai said.

The S&T may need to be de-bureaucratised to feasible levels. There may be a need for innovating and other mechanisms to provide flexible pay and perks for S&T groups. The help of private sector is also required for enabling public institutions retain talent in S&T streams.

Prof Ramasami also suggested the setting up of a Foundation, under one of the S&T departments to increase the reach of technologies to benefit villages in the country. The AP Akademi of Sciences also presented the annual Nayudamma Memorial Gold Medal to Dr G. Thyagarajan, Former Director of CLRI. It honoured Padma awardees for 2006, Dr Harsh K. Gupta, former Secretary, Department of Ocean Development, and Dr Seyed E. Hasnain, Vice-Chancellor, University of Hyderabad.

Prasad EFX behind Krrish's powers

"Krrish will be a path-breaking film as far as the trend of visual effects is concerned," says Rajiv Raghunathan, Senior Line Producer of Prasad EFX, on the eve of the film's release.

A film like Krrish will open a lot of new avenues for visual effects and filmmakers will get bolder in using such technical aid.

The company, Prasad EFX has been making its presence in the films labs, pre and post-production, visual effects, digital video, multimedia and more. It is their team of about 70 technicians from Mumbai, Chennai and Hyderabad that has put together 90 minutes of visual effects for Krrish.

This is not the first time that the Roshans and the Prasad group have come together. "Rakesh Roshan's father had given music for the films made by our founder L V Prasad," says Rajiv. But he admits that Krrish was a tough act to take up for the Prasad Group. "Rakesh Roshan had the story very clearly drawn. He knew what visual effects he required. When the script was read to us, we realised it was going to be a very challenging task. In fact, we weren't even sure if we would be able to put it together. When we started, we had no clue how to go about it. But I must thank Rakesh Roshan for having so much confidence in us."

The company, Prasad EFX has been making its presence in the films labs, pre and post-production, visual effects, digital video, multimedia and more.

From the promos and the movie stills, it is not very evident that the film has used special effects. Most of the thriller and action scenes appear as though they've been performed by Hrithik without any technical aid. "The idea is to maintain the natural charm of the characters. Special effects are not supposed to look obvious. There are some scenes where you just can't tell whether there's use of special effects or it is simply Hrithik performing," he says, proudly.

The Prasad team is 'extremely happy' with the end result of the eight-month long task of special effects on Krrish. "We didn't compromise anywhere. And that shows. In the film, several reels have visual effects. Partly, because the lead star is a superhero, some of the effects are very much required. But I also believe that Hrithik's personality has a quality which would make people believe that it is all him, no technical interference. And that's the idea," Rajiv explains.

"Most of the visual effects blend into the story very well. The audience will not be able to tell the difference." During the making of the film and the post-production work, Rajiv was impressed with Hrithik's involvement with the technical aspects of the film. "He was very involved with the special effects, and I don't mean just in front of the camera. In Mumbai and Chennai, he has made a great contribution to the post-production work. On the other hand, Rakesh has concentrated on direction. He is a wonderful director to work with. He trusted us completely with the task and gave us the freedom we needed. At every point, we have raised the bar for ourselves and given our very best to every scene. This is only possible when the production house backs you up for your task."

Dressed in a black leather superhero suit, a mask and cape, flying across the city with a mission, Krrish is a delight for kids and adults alike. But it is not just Hrithik and the superhero look that have created the magic.

Carefully, without revealing much, Rajiv says, "We used a combination of software and hardware. We did a body scan of Hrithik to create a model that we have used in a few scenes. When you see the movie, and can't pick the scene where we have used this, is when we'll know we succeeded." For a huge portion of the climax, the team had built a futuristic lab, which took two months to create. "The lab is a part of the climax scene. I can't say much about it, but it is one of the things that will amaze the audience. And it is with the help of Hollywood's Craig Mumma that the special effects look so good."

Rajiv is tight-lipped about the other Bollywood offers that have already started pouring in, but he does mention that the industry has the kind of filmmakers who now know that visual effects are a great investment in making a successful film. "A film like Krrish will open a lot of new avenues for visual effects and filmmakers will get bolder in using such technical aid."

Business Deal of the year

Mergers and Acquisitions are the order of the day for pharmaceutical companies. This financial year has witnessed quite a number of deals, but one name that enjoys top of the mind recall for every one...

The astounding feature of the deal is not the money. It is the fact that DRL managed to walk away with the booty even though it was not the highest bidder.

(not just the pharma fraternity) is the Dr Reddy's Laboratories (DRL) acquisition of Betapharm, the fourth-largest generic pharmaceuticals company in Germany.

The news of this buyout stirred the business community. Not just because the company was bought for Euro 480 million, but also because DRL beat opponents like the Israeli Taro Pharma and Indian biggies like Ranbaxy to the deal.

The astounding feature of the deal is not the money. It is the fact that DRL managed to walk away with the booty even though it was not the highest bidder. The booty here was a stronger presence in Europe, a rich pipeline of 146 products which are already registered in Europe, a strong presence in chronic care category, strong existing relationship with key members of the marketing channel (doctors, chemists, medical salesmen and insurance companies), a strong IP regulatory infrastructure and a fast growing generic company.

The Betapharm deal is also expected to take DRL closer towards its goal of being a $1 billion company by 2008. In contrast to this, Betapharm benefits from DRL's pipeline of innovative products, high quality standards and competitive manufacturing costs. The deal was to be financed up to Euro 80 million through DRL's internal accruals and the remaining by Citibank based on the balance sheets of both the companies.

In an interview, G V Prasad, Executive Vice-Chairman and Managing Director, DRL, stated that after Betapharm, the company has three priority areas. The priorities being-scaling up the US generics business and building critical mass in the UK, accelerating the launch of dermatology business in US and lastly, to accelerate the launch of NCEs through their own sales network and various licensing agreements.

M&A is one of the most crucial decisions by a pharma company and its success lies not in investing large amounts and signing the deal but in the manner it is implemented which is a very crucial step. A successful M&A is characterised by its integration and everyone is looking forward to problem free post buyout integration. How well can this Hyderabad based company started by a scientist merges with a German generics major is a story that will soon unfold. All the eyes are still on Dr Reddy's.

ADP to increase staff count to 2,400

ADP India, the wholly owned subsidiary of Automatic Data Processing, is planning to set up its second centre and hike the headcount of its Hyderabad centre from 1,700 to 2,400 by July next year.

The company is also exploring locations like Pune, Kolkata and Gurgaon for its second centre. The new centre will help expand our vista to North India. We are looking at hiring 500 people at the new centre," ADP Managing Director Shakti Sagar told ET. However, he declined to divulge any investment details.

ADP India is mainly engaged in software development and solution centre services (BPO). "We have three business divisions - employer services, brokerage and automobile dealer solutions. Our software development is part of our client support services for these three business units. It is an effort to enhance the service delivery. We offer software solutions in mainframe , ERP applications, web technologies and testing services ," he said.

In Hyderabad, the company recently moved to an 18,000 sq ft facility. "Last year, the centre recorded 77% growth and this year we expect to register 55% growth," said Mr B Balaji, director of the company.According to him, during the last two years, the Hyderabad centre has grown substantially as it started handling employer services.

"This division contributes 60% of our worldwide revenues. This financial year, ending July 2007, we will increase our headcount by 700," he said. The company is currently busy conducting training and development programmes for its employees.

"Combined attrition rate of our business units (BPO and software development) ranges from 16%-17 %. This is much less than the industry average and we attribute this to the special efforts taken by the management to retain employees. This year, we plan to introduce 100 hour training and development programmes to each associate as against 75 hours last year," he added.

Dr Reddy's prostate cancer drug

Hyderabad-based Dr Reddys Laboratories launched the generic version of Merck & Co's prostate cancer drug Proscar in the US market after the expiry of its patent.

"As per our agreement with Merck, we have the permission to launch our version of the drug in the US if a 180-day marketing exclusivity period was granted to any other company," a DRL spokesperson said from Hyderabad.

According to the deal signed between the two companies earlier this year, DRL would be allowed to distribute and sell the generic versions of the cholesterol reducing drug Zocor and Proscar.

The company had informed the Bombay Stock Exchange that Teva Pharmaceuticals of Israel had been granted the 180-day marketing exclusivity for Finsteride 5 mg, after expiry of Merck's patent on Proscar.

SENSEX on rebound

The Sensex closed above the psychological 10,000-mark as the markets remained in the positive territory on Wednesday. Even though the day began quiet, for a brief spell it went into the red, but towards the closing hours, the pull-back was very evident. The Sensex moved 218 points up at 10,040 and the Nifty was up 62 points at 2,923.

Top gainers at the closing were Dr Reddy's, Reliance Energy, Reliance, Bharti Airtel and ITC. Top losers were Grasim, BHEL, Tata Power, Tata Motors and HDFC Bank.

The recovery on Wednesday was mainly due to broad-based buying by bull operators. Even though the Asian markets traded flat, in India, the markets held up, emerging from the shadows of Tuesday's fall. Stocks across sectors closed higher.

Top gainers at the closing were Dr Reddy's, Reliance Energy, Reliance, Bharti Airtel and ITC. Top losers were Grasim, BHEL, Tata Power, Tata Motors and HDFC Bank. While the mid-cap index was up 3 per cent, the small-cap index was up by 4 per cent. Mid-caps started and finished the day well, but large-caps joined the rally in the last hours of trading. Major stunners in the large-caps were Dr Reddy's and Reliance and even the small-caps did well.

Among mid-caps, tech stocks did well leading with Aftek Info. Other mid-cap stocks that did well were Apollo Tyre, Arvind Mills, IVRCL Infrastructure, JB Chemicals, JK Cements and some of the media stocks such as TV Today Network, NDTV and Mid-Day Multimedia.

Even recent listings such as Gitanjali Gems did very well trading at Rs 158, 4.5 per cent up. Deccan Aviation which has been in the red for the last fortnight, managed to move up 2.5 per cent, trading at Rs 89.

Metal stocks were up 2.5 per cent. Steel stocks traded firm and the key gainers included Sesa Goa Ltd (up 9.1 per cent), SAIL (4.12 per cent) and Tata Steel (2.4 per cent). The bounce-back in the steel stocks was due to the steel ministry giving its approval of the merger of three companies viz., Neelachal Ispat Nigam (NINL), Manganese Ore India (MOIL) and Bharat Refractories (BRL) with steel behemoth SAIL.

With this, SAIL is expected to record revenues of nearly Rs 430 billion as against the current revenue of Rs 328 billion. Besides, its annual production of crude steel is expected to reach 17 m tonnes (MT) from the current 13 MT. NINL, which produces 1.2 MT pig-iron annually, has been promoted jointly by MMTC and the Orissa government. In FY05, NINL had generated profits to the tune of Rs 2 billion and has outlined an investment of Rs 14 bn to expand capacity over the next five years.

Oil and gas stocks were 2.98 per cent up. ONGC traded up at 1.1 per cent, Indraprastha Gas, traded 2 per cent up and IOC was up 1 per cent. But Gujarat Gas remained marginally in the red. Software stocks closed higher, with key gainers including HCL Tech (up by as much as 10 per cent), Infosys, Satyam (both up 3 per cent), TCS (2 per cent) and Wipro (4 per cent). Product lifecycle management (PLM) technologies major, Geometric Software Solutions (GSS) also closed 7 per cent up. This is due to the fact that GSS is all set to acquire an engineering firm for a consideration of $25 million.

The company plans to double its revenues from the engineering division in the current fiscal and the said acquisition would enable it to gain size and compete effectively against larger rivals for outsourcing orders. Also, it will give Geometric a critical toehold in the European and Chinese markets. GSS had earlier stated on numerous occasions that it is looking to acquire a company in the engineering services space that would have revenues in the region of around $10 m. This move was being looked at as being in line with the company's strategy.

Hotel stocks closed higher on Wednesday, and the major gainers here were EIH (up 2 per cent), Indian Hotels (7 per cent) and Taj GVK (1 per cent). Hotel Leelaventure is planning to further increase its room inventory by 40 per cent to 50 per cent in the next 3 years.

The company had earlier announced an expansion of Rs 10 billion for setting up new properties in Chennai, Hyderabad and Pune. This increase in inventory would eventually cost an additional Rs 4 billion. The Chennai property was earlier planned to be a 280-room hotel and the final plan is to make it a 480-room luxury palace hotel.

Brokers are bullish on capital goods, cement stocks and IT. Some brokers are even betting on pharma and a very few on oil stocks. In a survey indicating the kind of stocks they would like to invest in, 16 per cent said they would invest in Index stocks, 53 per cent said on large caps, 29 per cent betted on mid-cap and only 2 per cent said they would punt in small caps.

Convergys : Best Start-up Offshore Center

Convergys Corporation was recently recognized for their work in India, specifically Hyderabad where their Information Management operation was named "Best Start-up Offshore Development Center" by the Hyderabad Software Exporters Association (HYSEA).

The award, presented to multi-national companies in the IT and software-related area, considered company revenues, employment growth, management and the kind of work done at the facility.

Commending the hard work of the over 1,000 employees in Hyderabad, Paresh Shah, General Manager and Managing Director of Convergys' (News - Alert) Information Management operations in India said, "the dedicated IT professionals working here have a diverse set of state-of-the-art technology, product, and management skills-sets that enable Convergys service offerings ranging from software development and systems integration to business continuity services and application maintenance and support."

According a recent release, the Hyderabad employees "assist in supporting more than 100 million active customer accounts for clients around the globe and provide professional and consulting services that offer not just technical, but true operational experience, insight, and expertise across Business Support Systems and Customer Relationship Management to address critical business requirements."

Convergys currently runs nine facilities located across India with over 11,000 employees a great increase from the 200 employees and one contact center first established in New Delhi back in 2001.

A Win for Free speech and expression

The Andhra Pradesh High Court today quashed a government order banning the controversial film "The Da Vinci Code" in the state.

Declaring the ban as null and void, Justice G Raghuram said it was a "highly unreasonable restriction" on the freedom of speech and expression. The court's order came in response to three petitions filed on behalf of the film's distributors.

Setting aside the June one ban order, the court imposed costs to the tune of Rs 10,000 each on petitioners Lakshmi Films and Soni Pictures Entertainment.

Raghuram observed it was not proper on the part of the government to impose a ban on the film just because some individuals and organisations had demanded it.

The court said the authorities who decided to ban the movie did not bother to watch it as is required under the law. Those who raised objections to the movie had no right to compel the government to impose the ban, the court said. Raghuram also observed that the government did not address the likely consequences of its decision in a pragmatic way.

Megasoft in talks to buy VisualSoft

Megasoft Ltd, which has development centres in both Chennai and Hyderabad, is likely to acquire the Hyderabad-based VisualSoft Technologies.

Post acquisition, Megasoft will merge VisualSoft with itself, Both the cos have a few common shareholders

Though the exact details are not known, sources said that bankers/investors have made a strong proposal for a possible merger between both the entities. It is believed that both the companies have a few common shareholders between themselves.

VisualSoft Technologies, which has called off a three-way merger with Applabs Technologies and eSolutions Pvt Ltd recently, is looking out for suitable partners to become a better entity as the company's performance is way off the mark from its promise.

It is believed that iLabs Venture Capital Ltd of Srini Raju and his associates are holding close to 20% stake in Megasoft and little less than 10% in VisualSoft Technologies and said to have plumbed for the possible acquisition and merger. When contacted, Srini Raju of iLabs group declined to comment on the issue. Senior officials of both the companies were not available for comment.

However, sources pointed out that both the entities have reportedly initiated preliminary level of discussion. "Both sides have started initial round of talks. The finer detail of the deal would be known only after the due diligence and valuations are over", sources said.

It may be recalled that ever since VisualSoft Technologies switched over from product development to pure-play IT services, the company's growth has not been on the expected levels.

Hyderabad at World urban Forum 3

World urban Forum in Vancouver Canada is an international event on Urban sustainability. Hyderabad is Being represented at this forum.

Monika Zimmermann, ICLEI, presenting on behalf of T. Krishna Reddy, Mayor of Hyderabad, shared experiences of one of India's largest and the world's fastest growing cities in addressing the gap in urban services delivery. She said privatizing solid waste management and sub-contracting services to local small enterprises and community groups helped increase the serviced area by 25 percent, reduce costs, and generate income in the community.

Ewa Ciuk, ICLEI, outlined the findings of a study on appropriate tools for city strategic planning, emphasized the "eco-city" and participatory approaches. During the discussion, participants focused on: harnessing political leadership; measuring the value of environmental investments; investing in people; long-term planning and immediate action; nuclear energy; and communication with grassroots organizations.

Ramakrisha summarized the session, stating it had produced meaningful options for incorporating environmental dimensions into city planning.

Ascendas "The V" update

Ascendas (India) Pvt Ltd is planning to complete the Phase 5 of its IT space venture 'The V' in Hyderabad by March 2007.

The 13-storeyed building would offer a space of 6.50 lakh sq ft, Mr Jonathan Yap, Chief Executive Officer, said. Addressing a press conference here on Wednesday, he said the new phase, which would offer the companies the 'last mile bandwidth too, would have a six-levelled parking space. The 20-acre fully occupied facility offered a space of one million sq ft, housing 7,500 "highly-skilled IT pros". On the company's expansion plans, he said the company could expand the Rs 1,000-crore fund it launched in September last to develop IT space in India. "It could go well up to Rs 2,000 crore in the next few years," he said.

We are the champions : CM

Chief Minister Rajashekar Reddy Speaking to Financial Express, Illustrates how Hyderabad is becoming a leader of IT and ITES in India

An enviable 64.5 per cent growth rate in software exports, it is a way ahead of the national average of 35 per cent during 2004-05.

I would start by accepting the fact that our achievements so far, in the IT sector is just the beginning. The inroads made by Andhra Pradesh in the IT sector are spectacular with the global giants making a beeline for its capital Hyderabad. Not only Hyderabad, the wave is spreading to the hinterlands as well.

Companies like Satyam, Wipro, ilabs , Kenexa and Visual Soft are vying for space in Vishakhapatnam even as we keep a keen eye on other areas such as Vijaywada, Warangal and Tirupati in a focussed way.

The industry-friendly atmosphere of the state is coming handy for huge investments in IT sector and there is no doubt that Hyderabad has emerged as a final point for the IT evolution. The state government with its pro-active efforts has shown its will to transform the state into a prime investment destination and the fastest growing economy in the country.

With the growth of 51 per cent during 2005-06 in software exports it is clear that Information Technology could retain its top position for the state for the second year in the row. In terms of absolute figures in IT exports, the state continued to be in the fourth position in the country, next only to Karnataka (Rs.37,500 cr), Maharashtra (Rs.15,500 cr) and Tamil Nadu (Rs.13,960 cr).

One more illustration to our significant growth is an enviable 64.5 per cent growth rate in software exports, which we are glad to announce that it is a way ahead of the national average of 35 per cent during 2004-05. It would be worthwhile to recall that the average growth rate of all IT & IT-enabled services companies in the country during the year was only 36 per cent.

With several top IT giants like Microsoft, TCS, UBS, Connexant, Cognizant, Amazon, Patni, Qualcom, Sonata, Wipro, Infosys and Honeywell to name a few expanding their network in Hyderabad a real boom in IT sector is all set to take place

If you take a look at the recent report on IT exports it shows that Andhra Pradesh could keep the pace of progress in the sector with a high rank by maintaining the standards both in terms of quality and quantity.

Global companies around the world have been lured to invest in Hyderabad by the timely and pro-active steps initiated by the efforts of the state government. It should be mentioned that the steps taken by the state government in promoting software industry through its innovative IT policy has starting bearing rich fruits and the rich dividends reaped by it only reinforce our commitment to do more for this sector.

Our vision has it that with our relentless efforts we soon will overtake Bangalore to become number one IT hub of the country. With several top IT giants like Microsoft, TCS, UBS, Connexant, Cognizant, Amazon, Patni, Qualcom, Sonata, Wipro, Infosys and Honeywell to name a few expanding their network in Hyderabad and Visakhapatnam, a real boom in IT sector is all set to take place which will place Andhra Pradesh heads and shoulders above anyone else in making it the real IT haunt.

Facts speak for themselves as our state stands among the top 10 industrialized states in the country with an investment of Rs.75,391 cr after Maharashtra (Rs.1,02,432 cr) and Gujarat(Rs. 78,696 cr) as per the recent analysis of Centre for Monitoring Indian Economy (CMIE) as on January 2006.

It could now be said with propriety that Hyderabad has the potential to become a global outsourcing centre with a sustained growth in all sectors and services with regard to the huge available potential in the form of human resources.

If we look at the following records about IT exports one learns that overall exports from India during 2005-06 were to the tune of Rs 1,00,809 crore. However in terms of growth rate of exports, we feel enthusiastic to state that Andhra Pradesh was far ahead of others. For example while Karnataka and Maharashtra registered a growth rate of only 34 per cent, Tamil Nadu recorded only 29 per cent, as against 51 per cent growth rate achieved by Andhra Pradesh.

Let us talk of investments made in the state. If the previous government could attract only Rs. 3,533 cr during its seven-year rule, I am pleased to state that the present government has attracted Rs 4,341 crore in the first year and Rs. 7,363 crore in its second year.

Not only that, look at our feat at the employment front. At present, about 1,60,000 IT professionals are employed in 1,382 companies in the state. We are not sitting still on our achievements attained so far, as the government has set the target of Rs 69,000 crore for IT exports and employment for more than 3.5 lakh IT professionals by 2009, particularly the rural youth.

I am very confident while stating that in the coming years Andhra Pradesh would not only show impressive growth rate in IT exports, both in terms of percentage and absolute figures but will also retain its top position.

Hyderabad Gems Special Economic Zone

The Gitanjali Group-promoted Hyderabad Gems Special Economic Zone Ltd (HGSEZ), has received the final approval from the central government. The SEZ to be set up at a cost of about Rs 500 crore, is expected to be fully operational by the end of 2008.

The 200 acre park in Shamshabad, will feature an international trade centre, a world class convention centre plus an exhibition area.

The gems special economic zone will also provide a diamond trading bourse along with the regular facilities of an SEZ. The dimond bourse will be the second in the country besides the Mumbai-based Bharrat Diamond Bourse.

The Andhra Pradesh government had sanctioned its approval and handed over the land last year, and work on the first phase had commenced in November last. The state government sold the land at Rs 5 lakh an acre.

The project will see an estimated turnover of Rs 5,000 crore when it is fully operational. Commenting on the approval and the status of SEZ project, Mehul Choksi, CEO of the group said, "The first lot of units, numbering over 20, will start manufacturing jewellery here very shortly." The 200 acre Rajiv Gems Park in Shamshabad in the vicinity of Hyderabad, when complete, will function as a full-scale commercial hub with all the essential services such as legal and courier/freight forwarding services.

The SEZ will feature an international trade centre, a world class convention centre plus an exhibition area. Adding immense value to the park will be a presence of a diamond trading bourse. It is possibly the first park across the country, which will have a manufacturing zone as well as a trading zone.

To facilitate a talent pool, the group is also ensuring a technical institute in the park to guarantee trained personnel for the many units that will come up here.HGSEZ is owned and partly funded by the newly listed group company, Gitanjali Gems Ltd. The SEZ, third of its kind in the country after Surat and Kolkota.

Apart from local Indian DTC sight holders and other diamond & jewellery manufacturing companies, the group is aggressively pushing for some of the big brands in the Gulf, to set up their manufacturing plants in this SEZ.

A New Railway Terminus

People in Hyderabad can dream of a fourth railway terminal in addition to the existing ones at Secunderabad, Kacheguda and Nampally.

Malkajgiri is nearer to Secunderabad station and was well connected. Once the station transforms into a terminus, trains bound to Delhi from Bangalore and Mumbai could pass through the station without touching Secunderabad.

Both the Secunderabad and Hyderabad railway divisions are likely to submit the proposals this week to the South Central Railway headquarters and a decision is expected in February next along with the Railway Budget.

While the Secunderabad division has proposed the Moulali railway station, the Hyderabad division is projecting the Malkajgiri station for consideration.

Even if the Railway Board does not consider the proposal of the Hyderabad division's bid for Malkajgiri as the fourth terminal, passengers of the division stand to benefit since the existing station at Malkajgiri will soon be transformed into a passenger terminal at an estimated cost of Rs.1 crore.

"Besides proposing the Malkajgiri station for the fourth terminal, we are determined to transform the station into a passenger terminal, which now has only one pit line for goods trains. With the Seetaphalmandi Cord line, the station will be handy to reduce the traffic at Secunderabad," says Hyderabad Divisional Manager Vandana Singhal.

On the advantages of the Malkajgiri station over the Moulali station, she said the former was nearer to Secunderabad station and was well connected. Once the station transforms into a terminus, trains bound to Delhi from Bangalore and Mumbai could pass through the station without touching Secunderabad.

On the other hand, Secunderabad division had already appointed RITES (Rail India Technical and Economic Services), a public sector unit, as consultants for surveying the conditions at Moulali station. Availability of vast Railway land and workshops near Moulali station make it accessible in terms of operational measures. "Secunderabad division has registered a growth in passenger traffic by 10 per cent and most trains ply from the Kazipet side," says Secunderabad Divisional Manager Sudhir Mital.

V-Guard's amusement park in Hyderabad

Kerala-based V-Guard group will launch two more amusement parks of global standards Hyderabad. The group, which has commenced preliminary work after conducting an in-house feasibility study of the project, expects the parks to become operational by the end of 2008.

As part of its mega diversification plans, the group started its first venture in the amusement industry in Kochi in April 2000, followed by Bangalore in October 2005.

The proposed park would be within the city limits and the decision on the site would be taken soon. The construction work on the parks would be completed so as to commence operations within two years.

They added that the group had planned to introduce more high-tech rides in order to attract young crowd. According to the feasibility study, Hyderabad does not have a good amusement park. Hence, the company plans to fill the gap to provide wholesome entertainment to the middle-class.

Sources said that as part of V-Guard's two-way strategy to diversify and develop, the company plans to introduce more home appliance products and develop its marketing network in north India, especially in Uttar Pradesh, New Delhi and Haryana.

In the home appliances division, which is the mainstay of the group, a home security system would be introduced within three months. The new product, which is based on electronic technology, would be launched in the Kerala market. A host of other household products are also on the cards. V-Guard registered a turnover of Rs 225 crore in 2005-06 and is targeting a turnover of Rs 280 crore during 2006-07.

Global Geospatial Community Meet at HICC

On the occasion of 10 years of Map India series of conferences, GIS Development is announcing a global meet of geospatial leaders known as Map World Forum. To policy to user oriented themes at global level.

Robert M. Samborski, Executive Director, Geospatial Information & Technology Association (GITA), in his support message says, "We take great pride in joining a very distinguished group of partners and sponsors from around the world to contribute to what will be an extraordinary event in Hyderabad".

Extending his welcome to global geospatial community to participate in Map World Forum, Kapil Sibal, Hon Minister of Science and Technology, Government of India says 'India is now being seen as a hub of economic activity globally. The Indian Government is committed that this economic leadership should also be visible in the area of science. Keeping this in mind, we have planned to create the 'Map World Forum', which will try to bring the global leadership in geospatial sciences at one mega forum. This platform will be a rare opportunity where for the first time the various leading organisations, both public, private and scientific research associations, will come under one roof to discuss the challenges and opportunities for the geospatial science and technology growth and its role for human development in the next decade'.

Associations and representative bodies in Geospatial community have pledged their active support to Map World Forum. Mark Reichardt, President, Open Geospatial Consortium (OGC) in message puts across, "The Open Geospatial Consortium, Inc., as the world's leading geospatial implementation standards development organization is proud to be part of Map World Forum". Prof. Milan Konecny, President, International Cartographic Association (ICA), says, "ICA welcomes Map World Forum as a platform for fruitful cooperation between various geo disciplines to solve urgent problems of contemporary world". Ian Dowman, President, International Society of Photogrammetry and Remote Sensing (ISPRS), on Map World Forum says, "This meeting is an excellent opportunity for international organisations involved in the production and use of geospatial data to come together and discuss the challenges and opportunities which face the industry". Peter Holland, President, Permanent Committee on GIS Infrastructure for Asia and the Pacific (PCGIAP), in his message says, "Map World Forum, undoubtedly one of the largest events of its kind, showcases the expertise and cutting-edge technology of this geospatial community". Robert M. Samborski, Executive Director, Geospatial Information & Technology Association (GITA), in his support message says, "We take great pride in joining a very distinguished group of partners and sponsors from around the world to contribute to what will be an extraordinary event in Hyderabad".

Map World Forum has been receiving overwhelming response since its inception and more than fifty high profile geospatial leaders have agreed to participate in the International Advisory Board various stakeholders from academia, industry, public organisations, and non-governmental professional associations.

The Map World Forum will have four Plenary Sessions, twelve Seminars and four Workshops. It will feature an Editors' Forums, a Students' Forum and a Poster Gallery as well in addition to many industry user meets. It will have about 75 exhibitors displaying their products and services from across the world in over 35,000 Sq. Ft. of covered space. Above two thousand and five hundred delegates are expected to participate in this conference.

The Map World Forum takes pride to announce its Media Partners, Directions Mag (US), Geo World (US), GIM International (The Netherlands), Geo:connexion (UK) and Position (Australia). Editors of the Media Partners would participate in Editors' Forum and contribute in overall design of the Conference agenda.

The industry sponsors for Map World Forum are Leica GeoSystems and Rolta India as Platinum Sponsors, Digital Globe as Gold Sponsor and Speck Systems as Silver Sponsor. Many more companies are likely to join the Map World Forum very soon.

About GIS Development

GIS Development promotes and propagates the usage of Geographic Information Science, Technology and Applications in various areas of development, worldwide and Asia in particular. It assists community and government in developing their productivity, policies and management capabilities by facilitating knowledge transfer in the domain of geographic information. It fosters the growing network of those interested in geo-informatics and encourages the exchange of scientific know-how through its key platforms: Magazines, Portal, Conferences and Training.

Map World Forum

http://www.MapWorldForum.org

http://www.GISdevelopment.net

Air France to fly here

Air France will operate three weekly flights from October 30 to Chennai using its own aircraft.

The service is currently operated on a code-share basis with Delta Air Lines aircraft and crew. These flights will also be sold by Delta Air Lines. The flight will be operated using an Airbus A340 seating 291:30 in laEspace Affaires and 261 in Tempo. Schedules will be well-suited to passengers with short connections at Paris Charles de Gaulle (CDG) on their way to and from other Air France destinations.

In addition, Air France will increase capacity on other flights between Europe and India with seven weekly flights from Paris to Bangalore instead of five. The Paris-Mumbai route will be operated using Boeing 777-300s with 310 seats instead of the Boeing 777-200s with 270 seats operated last winter.

In all, Air France's capacity to India will be increased by 27 per cent. Together, Air France and KLM will offer 42 weekly frequencies (instead of 36 last year) to Bangalore, Chennai, Delhi, Hyderabad and Mumbai.

Au contraire : No Power for the Powerful

Power minister Shabbir Ali was in town on Monday, but did not come to office. Ask why? There was no power in his office for the best part of the day.

But in the typical system of hierarchy in babudom air-conditioners of some higher officials were kept going using inverters.

Ali was not alone - at least 14 ministers including finance minister K Rosaiah, home minister Jana Reddy and tourism minister Geeta Reddy were affected by the black out.

The power shutdown - caused by a transformer burst - lasted from 12-30 in the noon to 5 pm. Also facing the wrong end of the power cut was the public affairs advisor to the chief minister, K V P Ramachandra Rao. "Work in the Secretariat came to a grinding halt although there are inverters and UPS on which computers can run.

Departments of revenue, municipal administration, panchayati raj, rural development, information technology, industry and commerce, disaster management, minority welfare, irrigation, roads and buildings and backward classes welfare among others were hit by the Monday midday blues.

Information technology and communication department officials were left fuming as they were working on preparations for a review meeting by the chief minister on Tuesday. Many ministers operating from the affected blocks were spared as they are away campaigning for the panchayat polls.

But in the typical system of hierarchy in babudom, air-conditioners of some higher officials were kept going using inverters. But lower rung officials did not have even the comfort of fans.

Further, three lifts in the 'D' block including a VIP lift were not working. Many officials working in different departments left early, citing power failure as the reason. When contacted, information and public relations officials in typical fashion ducked.

"It was only a technical problem that was sorted out by evening," said an official not knowing how to explain the situation. Shabbir Ali could not be contacted. His cell phone was picked by his private secretary B S Rashid who said that his 'saheb' was busy.

"They can't rectify a power failure in the Secretariat for five hours, so you can well imagine the situation in the rural areas," an analyst said. - Times of india

New formula for land acquisition

Amid controversies over land acquisition for the proposed Outer Ring Road (ORR), the Hyderabad Urban Development Authority (Huda) is toying with the idea of making farmers as partners in development to go ahead with the acquisition.

Under the new scheme, at least 1,000 acres of private land would be acquired for constructing 13 mega junctions and 10 radial junctions along the 162-km-long Outer Ring Road (ORR).

The authorities believe this would enable farmers to fetch the market value for their land and the process will also go smoothly.

At the initial stage, the Huda received positive response from several groups of farmers. Except for objections on one or two issues, the farmers are said to be showing interest in the scheme.

Instead of paying compensation to land owners, the Huda would make them partners in development so that there would be no scope for controversy over the acquisition. The Huda would make three parts of the acquired land.

One part would be used for the proposed project, second would be developed and handed over to the land owners. The Huda will make use of the third and small portion of the land for its own use.

As per the draft plan of the Huda, 50 per cent of the farmers' land would be used for the proposed project, 40 per cent would be developed and returned to them and the urban body would retain the rest, 10 per cent.

The Huda ignored the land acquisition formula proposed by Satish Magar, an expert on land settlements whose formula was successfully implemented by civic authorities in Pune.

The Huda authorities found Magar's formula could click in Pune, but it would not be suitable for Hyderabad and its surrounding places. However, the authorities have not revealed what Magar had proposed to them.

Under the new scheme, at least 1,000 acres of private land would be acquired for constructing 13 mega junctions and 10 radial junctions along the 162-km-long Outer Ring Road (ORR).

As per the draft plan of the Huda, 50 per cent of the farmers' land would be used for the proposed project, 40 per cent would be developed and returned to them and the urban body would retain the rest, 10 per cent.

Meanwhile, negotiations are being held between authorities and the representatives of farmers. "We hope that a suitable scheme would be formulated, which would enable the government to go ahead with their projects as well as protect the interests of the farmers," N Ramachandraiah, a farmers' representative told Times of India.

BSNL to connect all villages by 2007

The Bharat Sanchar Nigam Limited (BSNL) would connect all villages through 'individual satellite telephone' network by March 2007 in the country, its Chairman and Managing Director A K Sinha said on Monday.

Addressing the presspersons here, he said 14,000 villages would be connected through the satellite telephone network at the cost of Rs 150 crore.

At least one telephone would be installed in the villages, where there was no access to phone facility. Despite the network being costly, BSNL would collect nominal charges from the users, he added.

The 'triple play,' a video service on demand, internet and telephone at single point service would be launched in Chennai and Pune in two months, Mr Sinha said, adding that while the content would be provided by the partners, BSNL would provide network facility for the service.

The BSNL was also planning to expand its mobile netwrok by providing six crore mobile phone connections in the next three years, he added.

Military satellite for IAF

In view of the growing importance of satellite network in the armed forces, the Indian Air Force (IAF) is planning to acquire 'military satellite' with the assistance of Defence Research and Development Organisation (DRDO), Vice-Chief of Air Staff Air Marshal, Ajit Bhavanani said on June 19 2006.

Addressing a programme of the 'Aero Space Manufacturers Association' organised by Aeronautical Society of India here, he said an exclusive military satellite would provide information, which was inevitable for defence forces to utilise modern weapons.

Air Marshal Bhavanani said air space power, particularly in the area of civil and military aviation, would lead to the growth of the country.

The IAF would acquire Air Borne Warning and Control System (AWACS) and Un-manned Air Vehicles (UAVs) from the DRDO at the earliest, he added.

Aero Space Park in Hyderabad

The Aeronautical Society of India (ASI) chairman, V K Saraswat, on Sunday announced that an 'Aero Space Park' would be set up here with an investment of Rs 30,000 crore in next three years.

Addressing the press here, Saraswat, who is also the Director of Research Centre, Imarat (RCI), said the park would be set up with the public and private partnership (PPP) in which about 50 aerospace manufacturing industries would participate as share-holders. The ASI and industrialists had taken up the issue with the government, he added.

Stating that the government was also keen to set up the park to boost the aviation industry and allied sectors, he said the proposed park would be set up in 500 acres of land to be acquired from the government at a reasonable rate.

Saying that the ASI would move as a catalyst in setting up the park, Saraswat said it was holding talks with the industrialists to have a stake in the park and start the works at the earliest.

Ratings reinforce Hyderabad as tech hub

Hyderabad's stature as an emerging technology hub was reinforced by well known Internet technology publication, Red Herring, which listed three twin-city companies in the 'Eight Indian Startups to Watch'.

Bangalore and Delhi figure with two startups each, while Tiruvanthapuram has one. The article begins with the punch line. 'The nation continues to flex its growing tech muscle.

India is also starting to exhibit new strengths in areas such as semiconductor design, clean tech, biotech, gaming, consumer Internet, and mobile technology and content. Some startups are offering unique solutions for India's burgeoning domestic market, others are targeting global markets.

Hyderabad's Hellosoft gives cheap microprocessors a makeover to function like an expensive digital signal processor for mobile phones, personal digital assistants, game consoles, among others. Hellosoft has already won the 2006 Frost & Sullivan award for product innovation of the year.

Now Pos Online Services is offering free voicemail over the Internet for users in countries with connectivity but poor literacy. 'Tens of thousands of users in countries such as China, Vietnam and South Korea have already registered for the service', it said. Frost & Sullivan analysts say the service has the potential to challenge text e-mails.

The third, Ocimum Biosolutions, sells software tracking tools to research labs. It also deals in contract research and manufactures tools to understand the interactions among genes. Deloitte ranked Ocimum at 55 among the 500 fastest growing technology companies in Asia-Pacific.

Bangalore's Ascendus Technologies aspires to be the largest online training platform for business executives. Another startup from Bangalore, Softjin Technologies custom makes electronic design automation tools for semi conductor designers. Tiruvanthpuram's IBS specialises in transportation and logistics.

The two Delhi startups are Converge Labs and Drishtee. Converge Labs markets 'm-commerce', which enables transactions over mobiles. Drishtee has installed more than 3,000 Internet kiosks in North India to cater to rural entrepreneurs. This facility also enables rural population fill forms and lodge complaints.

Introducing Mehboob Nagar, Nalabonda

The fringes of Hyderabad will soon sport a new look. This area along with others like Mehboob Nagar, Nalabonda and others, will be part of a new city that the Hyderabad Urban Development Authority, HUDA, is planning.

It will come up on either side of the Outer Rind Road. HUDA will set up about 10 big projects, these include software, hardware and nanotechnology parks and already, the big developers have arrived. The Rahejas, IGM, Lanco Group, DLF, Unitech, GVK and others will invest about Rs.4,500 crore to put up integrated townships in these areas.

According to Project Director, Outer Ring Road, Peeyush Kumar, "The whole objective of this project is that beyond 25-30 kms, newer areas will be accessible. You have a international airport and you have faster connectivity through this corridor." He is very confident, that any international investor will feel happy to come and set up an integrated township, from where people can walk to work and to school. People will have all amenities in these townships, he states. One kilometre on either side of Outer Ring Road, has been designated a Growth Corridor. Construction has already begun and the first phase will be ready by the end of next year, which will be complete with integrated townships. Clearly the outskirts of Hyderabad will never be the same again.

IT budget for City companies Increase

The total IT budget for majority of small and medium businesses (SMBs) based out of Hyderabad is around Rs 50 lakh per year and is likely to increase marginally by five per cent, according to a study by ACNielsen in association with Computer Society of India.

The focus areas for Indian SMBs in the technology area are IT staff training and data protection and security

The study on technology roadmap for SMBs states that inadequate budget and lack of key technical skills within IT are some of the key hindrances for IT growth. The top technology priorities for city-based SMBs are enabling and enhancing e-commerce, enhancing client relationship management and automating the supply chain, it adds. The study covers SMBs in eight cities, according to which the overall IT spends of SMBs are likely to increase.

The focus areas for Indian SMBs in the technology area are IT staff training and data protection and security. SMBs operating in IT/ITeS sector are likely to increase their IT budget the most in the next two years followed by SMBs operating in the pharma sector.

The spend by Indian SMBs on IT infrastructure was Rs 2,1369.9 crore in 2005, the study states. The most common barriers to IT adoption, according to the SMBs, are inadequate budget and lack of alignment between business goals and IT efforts. The study polled SMBs across sectors like manufacturing, transport and logistics, pharmaceutical, hospitality and travel and IT-ITeS.

Meanwhile, ACNielsen has convened an eight-city conference on the technology roadmap for small and medium businesses in India. The conference has started from Mumbai and is scheduled to be held in Hyderabad on June 20.

Thereafter, it will be held in Bangalore, Chennai, Delhi, Ahmedabad and Kolkata. This conference will serve as a platform for SMBs to learn about the latest offerings and innovations in the technology field, a press release said.

Movie theatres go digital

The digital mode of cinema, which is popular in places like Mumbai, Bangalore and Chennai, is now entertaining audiences in Hyderabad with 15 cinema halls in the State Capital screening digitally mastered high quality movies.

After winning accolades of movie-buffs from Nizam area, digital cinema is making its forays into Andhra and ceded (Rayalaseema) areas of the State.

These films will be uploaded to a central server and later distributed online to the cinema halls equipped with the receiving systems. The whole system is encrypted to prevent piracy.

Theatres in rest of the State too are in the pipeline to replace their age-old projectors with new ones enabling cine goers to experience the difference. Fixing film reels to the projector and changing them every half-an-hour will be passe in theatres. Once the digital projection system is installed, movies will be downloaded through satellite.

UFO Moviez, a Mumbai-based digital cinema network, which has plans to create the largest chain of cinema houses across the country, clinched a deal with a couple of local theatres to convert them into digital cinema halls. If everything goes well, people of the city will watch Raviteja-starrer 'Vikramarkudu' in the digital format, followed by Chiranjeevi-starrer 'Stalin.' A couple of theatres in Kurnool and Kakinada will also be digitised soon. Our plan is to introduce digital technology in at least 450 theatres across the State in the next six months, says T. Rama Mohan Rao, dealer for UFO Moviez in Andhra Pradesh.

UFO will obtain a no-objection certificate from film producers to digitise their films in MPEG 4 format. These films will be uploaded to a central server and later distributed online to the cinema halls equipped with the receiving systems. The whole system is encrypted to prevent piracy.

Metro rail to launch January 2009

City's first metro rail will operate from January 2009. The works of the Mass Rapid Transit System (MRTS) will begin from December 2006 and all the three proposed corridors will be opened for the public by the end of December 2010.

A meeting of the six consortia of the MRTS and the government officials was held on 16 june 2006 to discuss the project. Speaking to the media, municipal administration and urban development secretary S P Singh and MCH additional commissioner (traffic and transportation) N V S Reddy said the total project cost has been calculated to be Rs 7,986 crore including taxes, which comes around Rs 1,300 crore.

"Of the total project cost, about 35 per cent will be shared by both the Centre and the state government. While the Centre will bear 20 per cent to 25 per cent, the state government will bear 10 per cent to 15 per cent," said S P Singh.

The Centre would give its share in the form of cash during the different phases of the project while the state government would provide the land. The Build Operate and Transfer (BOT) developers, who will invest 65 per cent in the project, will be permitted to operate trains and collect revenue on tickets and through advertisements for 35 years and later the entire project would be handed over to the state government.

Singh said it was not yet decided whether to give all the three corridors to one consortium or more. But the developers have been vying for multiple consortia to complete the project without any delay, the secretary said.

Meanwhile, the state government has decided to float the Hyderabad Metro Rail Corporation to coordinate among the developers. The corporation would be functional from the second week of August.

Additional commissioner N V S Reddy said the process of identification and earmarking of government land for stations, depots and workshops has already begun and it would be finalised by July 2006.

The BOT developers, who were prequalified for the bids, will have to prepare both the technical and the financial bid documents and submit them to the state government by September 15, 2006. Bids would be finalised by the end of November 2006, he said

Motorola on hiring spree

Motorola Inc plans to increase its R&D investment in India by 10-15 per cent year-on-year, Padmasree Warrior, Executive Vice President and Chief Technology Officer, said here on 16 June 2006.

Motorola has six R&D centres in Bangalore and Hyderabad employing over 2800 engineers and its investment in technology has grown from $50 million in 2002 to $85 million in 2005

Motorola has six R&D centres in Bangalore and Hyderabad employing over 2800 engineers and its investment in technology has grown from $50 million in 2002 to $85 million in 2005. Almost 40 per cent of the software used in Motorola phones worldwide is designed in India.

According to Mohan Kumar, Vice President and General Manager, Embedded Products and Systems Division, Motorola would raise its headcount in India to 4,000 from the current level of about 3,500 by the end of the year.

Ms. warrior said India needed to move to more advanced technology and skip intermediate steps such as 3G by leapfrogging to 4G or wireless broadband.

After launching the sub-$40 handsets in India in April 2005, Motorola was now planning to introduce $30 handsets as well. She said the Q Phone that was launched by the company in the U.S. on June 1 would be available in India shortly.

The story of Anuradha Acharya

Anuradha Acharya, Ocimum Biosolutions' founder, plans to turn it into $100 million company by 2010.

Ocimum Biosolutions bagged the Nasscom IT innovation award 2005, and was ranked 55 in the Deloitte Technology Fast 500 Asia-Pacific 2005 list.

A graduate in technology with a Master of Science in physics - with a wide range of degrees to her credit, this young entrepreneur from Hyderabad may seem like someone who has checked out different things before finding her calling.

But that has not stopped Anuradha Acharya of Ocimum Bio-solutions from experimenting. Acharya, the chief executive officer of Ocimum, a $3 million life sciences R&D enabling company, has plans to add an MBA to her already impressive credentials. "Later, probably from Harvard..," she muses.

Acharya was born in a Marwadi family in Rajasthan. "But my family was totally into academics, though I always had an entrepreneurial streak. My father used to pay us for small chores around the house and I used to do a lot them, from painting chairs to ironing clothes, just to earn that extra rupee," she says.

Not that academics was not her cup of tea. Acharya did her graduation from IIT-Kharagpur, and had decided right then to set up her own business. So she joined companies like Mantiss Information and SEI Information Technology to learn the tricks of running an organisation.

Later, P Sujata, a friend and a co-founder of Ocimum with over 15 years of experience in molecular biology and biotechnology, helped her zero in on the bioinformatics sector.

Using their personal funds, Acharya and her husband set up Ocimum in 2000. "But the going was tough as we could find very few people with a background in life sciences and IT," reminisces Acharya.

Having trained its sights on Bio-IT, micro-arrays and research services, Ocimum today has more than 200 clients including Ranbaxy and Dow AgroSciences.

It bagged the Nasscom IT innovation award 2005, and was ranked 55 in the Deloitte Technology Fast 500 Asia-Pacific 2005 list.

Ocimum is now trying to raise $5.5 million to acquire other promising start-ups in the sector. "By 2010, I want Ocimum to be a $100 million company," says Acharya. "And a billion dollar company sometime later."

Dr Reddy's challenge Novartis patent

Dr Reddy's Laboratories (DRL) has moved a US court challenging a Novartis patent on Alzheimer's drug Rivastigmine tartrate (brand name is Exelon). First hearing on the challenge is in October 2008, sources said. Rivastigmine tartrate goes off-patent in 2014.

The move comes in the wake of completion of the NCE (-1) (which means completion of four years for approved product by any innovator company). According to sources, besides Dr Reddy's, Sun Pharma and Watson Pharma have also filed patent challenge petitions for the same drug.

"If these companies prove better efficacy of the drug, they will get the approval to market the product," they clarified. However, they said that it is too premature to predict who will get the first-to-market status. The drug, if approved for Dr Reddy's, is expected to be launched in 2008.

IT salaries reach new heights, but...

Satyam Computer has sharply increased its employee payout this year with an average salary increase of 19%, against 11% last year. And this Hyderabad-based IT company is no exception.

The increases appear to be particularly high at mid levels, where talent scarcity is becoming pronounced, and in smaller companies, for whom retaining talent has become extremely challenging.

Many infotech companies in India have offered higher salary increases during the increment season of April-May this year, compared to what they did the year before. The increases appear to be particularly high at mid levels, where talent scarcity is becoming pronounced, and in smaller companies, for whom retaining talent has become extremely challenging.

iGate has announced an average increment of 16% this year against 13% last year. TCS has increased it by 15% this year, four percentage points higher than a year ago; HCL has hiked it by 15% as against 12% last year. Mid-sized companies like Subex Systems have been giving 20% hikes across the board for the last two years, while its top performers have got a 30-35 % increment.

According to Ajit Issac, country manager (India and Middle East), Adecco Peopleone Consulting, companies are facing a shortage of talent, a situation that is being aggravated by the aggressive hiring by MNCs. "But despite the high pay packet structure in MNC companies, India still offers a low cost arbitrage which in turn has forced Indian biggies to push up their salary levels," he says.

"The issue now is how long will we be able to maintain these levels of increases. The general cost factor is becoming a concern"

Infosys' average hike this year is said to be roughly the same as last year, at 12-15 %, but the hikes for the top performers is a whopping 30%, against about 8% at lower levels. T V Mohandas Pai, HR head of Infosys, explains this difference on the grounds that "supply at the entry level remains good, but the supply of mid-level people is challenging" Wipro, which will announce its increments only later this year (it had given an average hike of 12% during Q3 of last fiscal), is expected to follow a similar strategy. Pratik Kumar, HR head at Wipro, says when there are constraints on the budget, it's important to differentiate top performers from the average.

While most employees are likely to rejoice at such salary increases, companies are far from enthusiastic. "The issue now is how long will we be able to maintain these levels of increases. The general cost factor is becoming a concern ," says Sudhakar Balakrishnan, director and COO of Adecco India. Gautam Sinha, CEO of TVA Infotech, says in the salary game, everybody is a loser, considering particularly that billing rates have not gone up dramatically.

pple Computer quit India recently, apparently on account of cost concerns. SAP chief executive officer Henning Kagermann was quoted earlier this year as saying that India was getting expensive and the company was therefore beginning to look elsewhere for expansion.

These are not happy signs, and the message is: India needs desperately to increase its talent pool.

Outsourcing Could Save the World : IBM Chief

IBM CEO Sam Palmisano says his multi-billion dollar investments in offshore production facilities are part of a campaign to transform the company from classic multinational (read: evil, exploitive, outdated, bad for world peace) into "a new actor" known as "the globally integrated enterprise."

The GIE, says Palmisano, is a benevolent form of industrial organization that creates lasting wealth and meaningful jobs around the world. It can even disarm terrorists - figuratively, at least. Sounds like a corporation your mother could love, even if she's a raving anarchist. But is this really why IBM is spending $6 billion in India?

Sticking with the old MNC model, he says, inspires protectionism against the West or, in the worst case, nightmarish acts of terrorism.

Not entirely. IBM is facing stiff competition from foreign tech services rivals like TCS, Wipro and Infosys. These Indian vendors are able to pay workers pennies on the dollar compared to what they would earn in the U.S. Despite their low wages, these guys could build you an SOA architecture or Web services interface faster than you can say Hyderabad. If IBM is to remain competitive, it's got to get in on this action. And that's exactly what it's doing by hiring thousands upon thousands of Indian techies.

Still, while Palmisano will never be confused with Karl Marx or Frantz Fanon, his recognition that the organization of a typical multinational mirrors colonialist political structures - and thus needs to change lest it suffer the same fate--is both enlightened and refreshing, coming as it does from a company whose previous CEO famously said "The last thing we need is a vision."

In Palmisano's view, the chief difference between the classic MNC and the new, globally integrated enterprise is that the former sets up shop in new markets mostly just to sell stuff and send money back to the home office. Local personnel are limited to low level production and sales functions. The GIE, on the other hand, invites and encourages locals to fully participate at all levels, depending on their skills and talents. Hence, IBM's India operations carry out advanced R&D that's crucial to its future. Indian managers have opportunities throughout the company--and not just within India.

Proving that CEOs love their children too, Palmisano says he wants to make IBM a GIE not solely because it's an efficient way to organize a company that does business around the world. Sticking with the old MNC model, he says, inspires protectionism against the West or, in the worst case, nightmarish acts of terrorism. "Left unaddressed, the issues surrounding globalization will only grow. People may ultimately elect governments that impose strict regulations on trade or labour," writes Palmisano. "Worse, they might gravitate toward more extreme forms of nationalism, xenophobia and anti-modernism."

To be sure, IBM's push into India (and China and South America) is chiefly about taking costs out of its operations. It's what efficient corporations are supposed to do. But shouldn't we also applaud Palmisano's recognition of the fact that a company with the size and scope of IBM has responsibilities that go well beyond pleasing Wall Street?

Sensex records big gain

Sensex climbed nearly seven percent, posting the biggest-ever single day gain after a three-day slide on the 16th of June 2006.

Bulls assumed charge and roared in after getting knocked severely for three straight days. nvestors rushed to mop-up stocks as they found valuations attractive after a sharp correction of over 29 percent from its all-time high of 12,671.11 May 11.

The barometer BSE Sensex settled well below the 9,000 level, for the first time this year. Having resumed upbeat on the back of an Asian recovery, the Sensex settled 133 points in the red, on 8,929.44, and viciously swung 790 points between vital tops and bottoms.

Dealers said software services firms and auto makers led the rally on the index, with bellwether Infosys Technologies rising nearly 10 percent to Rs.2,728.25, and top exporter Tata Consultancy Services Ltd. up 4.5 percent to 1,554.35. 'It was an absorbing session from start to finish. The BSE Sensex vaulted a record-breaking 615.62 points after three consecutive bearish sessions,' said a market analyst.

'The benchmark index after surging almost 4 percent at the opening at one point of time, came all out all to finish on 9,545.06, a rally of 6.89 percent from beginning to the end. A recovery across global markets, including Asia, only added to the market sentiment,' he said.

The market-breadth, which had been negative when it slumped, was positive Thursday, with 1,691 shares advancing, against 681 that declined. Only 46 scrips remained unchanged. The BSE clocked a turnover of Rs.30,000 million, much higher than Tuesday's Rs.26,920 million.

Alliance Semiconductor sells land for $3.1m

Alliance Semiconductor Corp. said Wednesday that one of its wholly-owned subsidiaries has agreed to sell a parcel of land near Hyderabad, India, for about $3.1 million.

Santa Clara-based Alliance said its subsidiary received a deposit equal to approximately $870,000. If the sale is not completed by July 24, the agreement will terminate and Alliance's subsidiary will retain a portion of the deposit. In addition, Alliance said it entered into two separate purchase agreements for the sale of assets relating to its memory business units. The company earlier sold its analog and mixed signal business unit for about $9.25 million, and its systems solutions business unit for $5.8 million.

Karvy global Offers Online Monitoring

Indian outsourcer Karvy Global Services Ltd. will offer its customers free online monitoring and measurement of its services delivery. The new service gives Karvy, a recent entrant in business process outsourcing (BPO) services, an important differentiator from its competitors, said Arthur Flew, chief executive officer of the company.

Karvy, of Hyderabad, India, has tied up with MetrixLine Inc., a Sunnyvale, California, company specializing in delivering real-time metrics for outsourced processes. India's revenue from call centers and BPO grew 37 percent to US$6.2 billion in the country's fiscal year to March 31, according to the National Association of Software and Service Companies (Nasscom) in Delhi. The figures released this month by Nasscom include revenue of both Indian subsidiaries of multinational companies and those of Indian outsourcing companies.

As the Indian BPO industry expands at a fast pace, there have been concerns that service levels and quality could drop. One of the key problems in monitoring service level agreements (SLAs) is that the client does not have an accurate way of measuring the performance and quality of its service provider, according to Flew. The way metrics are usually handled is that the vendor puts together some statistics and spreadsheets for the customer, Flew said. " At the end of the day, I present to my client partially what I would like him to see," he added.

The service introduced by Karvy will give customers online access through a portal to the way their processes are being handled, including information on whatever performance they would like to measure, Flew said. Karvy has licensed the software from MetrixLine, and integrated it with its own infrastructure. MetrixLine's web-based technology extracts disparate, distributed data from multiple data stores and builds immediate metrics, benchmarks, baselines, scorecards and trend comparisons, the company said. The service has already been tested with a few clients, Flew said.

Microsoft hires 1000th employee

Microsoft India Development Centre (MSIDC), which recently recruited its 1000th employee, said on Wednesday it plans to double headcount over the next three years.

This is an aggressive target by any standards, considering it took the world's biggest software maker eight years to reach 1000-employee mark at MSIDC, which is Microsoft's second product development centre outside Redmond.

"This definitely is significant for us," said Srini Koppolu, MSIDC vice-president and managing director, who has been at the helm from the days it was a 20-man operation in 1998, working out of a rented pent-house flat in the up-market Banjara Hills.

"The growth may seem to have been slow. But that is because it is built to last," said Koppolu in an interview to DNA Money. "We are not here for cost reasons but for the right people which is the key for long-term sustenance," he added.

Beginning with just two products when it was set up, the MSIDC is involved in the development of over 50 products now. Also, it has more than 100 patents to its credit.

Goa tops, Hyderabad follows

Among key business and leisure destinations in India, hotels in Goa topped the occupancy charts with an occupancy rate of 88.9% in the month of April this year compared to 74.1% in April 2005. Hyderabad was second with an occupancy rate of 82.2%. However, this was actually a decline from an occupancy rate of 85.5% recorded in April 2005.

Similarly, Pune, which scored as the third highest on the list saw its occupancy rate decline to 81% from 87.7% in the corresponding period the previous year. Delhi also witnessed declining occupancies from 81% in April 2005 to 80.2% in April 2006.

However, a whopping 34.5% growth in average room rates (ARRs) ensured that the cash registers kept ringing. According to research analyst with Pioneer Intermediaries Amol Rao, "The increase in the ARRs was more than the decrease in occupancies." During April 2006, hotels in ten cities across India increased their ARRs by a whopping 35% from Rs 5,592 in April 2005 to Rs 7,563 in April 2006. This led to a healthy 34% increase in the revenue per available room (RevPAR).

Bangalore recorded the highest RevPAR at Rs 9,736. Hyderabad and Delhi followed in second and third positions with RevPARs of Rs 6,629 Rs 6,558 respectively. But ARRs are set to rise even further.

NASSCOM plans graduate test

INDIA'S leading software industry association will put the country's graduates through a special test in a bid to unearth top talent for the lucrative outsourcing sector.

About 1.3 million people are employed in India's outsourcing industry, which clocked revenues of $US6.3 billion ($8.4 billion) in the past financial year to March 2006.

The National Association of Software and Service Companies (NASSCOM) says it will begin its Assessment of Competence tests in November after completing a pilot phase involving 6000 students last month.

"The critical area of concern is talent," NASSCOM president Kiran Karnik told reporters in the southern hi-tech city of Bangalore, home to more than 1500 foreign and domestic technology companies.

"There's no shortage in absolute numbers. There are more than three million graduates passing out of colleges every year and 400,000 engineers," Karnik says. "Of these only a very small percentage are employable. "In the next four years we expect a shortage of 500,000 people in the outsourcing sector," he says. "The test will improve the quality of the people we get."

Students will be able to take the test on the internet. The tests, developed jointly by consultancy Hewitt Associates and NASSCOM, will assess the analytical, logical and English skills of potential employees. "The key issue we're looking at is how to make people employable. This test is a benchmark and it is the first of its kind in the outsourcing sector anywhere in the world," says Sunil Mehta, vice-president of the software body.

"It integrates industry requirements with university and college courses. "About 100,000 people are expected to take the test in the first year," he says. About 1.3 million people are employed in India's outsourcing industry, which clocked revenues of $US6.3 billion ($8.4 billion) in the past financial year to March 2006. "It is expected to grow between 27 and 30 per cent this year," Karnik says.

Lanco the company to watch

The Hyderabad-based Lanco Group has restructured its operations and hopes to complete the process by month-end with Lanco Infratech Limited becoming its flagship holding company.

The new company - Lanco Infratech Limited - will have 14 Special Purpose Vehicles (SPV), according to the Rs. 2,200-crore Lanco Group Chairman, L. Madhusudhan Rao.

Lanco hills is one of the largest mixed developments in India, An exclusive feature will be its 90-level residential tower, the tallest in India.

Speaking to journalists from Hyderabad on Saturday after a visit to the 368 MW gas-based Lanco Kondapalli power plant near here, Mr. Rao said, PricewaterhouseCooper, Morgan Stanley and a leading legal firm were assisting the Lanco Group in restructuring its activities.

The different SPV's were now taking care of the ongoing projects in power, construction, manufacturing and information technology sectors. He said the Lanco Group had so far promoted seven independent power projects, of which five - Lanco Kondapalli, Rithwik Energy Systems Limited, Clarion Power Corporation Limited, Lanco Infratech Limited, ABAN Power Company Limited - with 509 MW capacity were operational.

Two more projects - Lanco Amarkantak and Hydro Power companies - with a capacity of 2,000 MW were in the process of being established. It has acquired 74 per cent stake in Nagarjuna Power, based at Mangalore, Karnataka. He exuded confidence that by 2010, the company would have 4,500 MW capacity.

Lanco has bagged a power project at Anpara in Uttar Pradesh and was bidding for two more mega power projects of 4,000 MW capacity each at Sasan in Madhya Pradesh and Mundhra in Gujarat. "We will rope in strategic partners to bid for the ultra-mega projects," Mr. Rao said. While the Lanco Kondapalli project was now facing shortage of gas supply, the company is in talks with Reliance, British Gas Company and Gujarat Petroleum Corporation, which have reserves in the Krishna Godavari basin, to provide dedicated supply. Lanco Kondapalli has capacity to add another 740 MW. A decision on the expansion would be taken once gas supplies get firmed up.

Referring to diversification into the construction sector, Mr. Rao said an integrated township, Lanco Hills, spread across 100 acres providing space for offices, residential, retail and commercial activities was coming up in Hyderabad. "It is one of the largest mixed developments in India at over 18 million sq. ft. Another feature at Lanco Hills will be its 90-level residential tower, the tallest in India".

The Lanco Group entered the information technology business through Lanco Global Systems Limited to provide complete IT solutions.

Sania inaugurates tennis centre in London

Sania Mirza might still be groping for success in her second year on the WTA circuit but that has not affected her popularity as a youth tennis icon as the Indian star was invited to inaugurate a tennis centre.

Sania, who is here to play in the WTA Tier III DFS classic, declared open the state-of-the art tennis facility at harborne hill school in Edgbaston, Birmingham, yesterday. Andy Wright, head teacher of Harborne hill school said, "it is absolutely brilliant to have Sania Mirza here today to open the courts officially. It is a big lift for the school, the sport and is fantastic for the area."

Sania, world number 41, said it was a humbling experience for her. "It is really nice that tennis is catching up all over the world. It is great that they are trying to get tennis as one of the main games after cricket or football in England and India, so as a tennis player I have a responsibility to make the game grow in anyway I can.

"There have been a lot of girls now picking up tennis rackets and say 'i want to play tennis'. It's nice to know that people look up to and they want to be like you one day," she said.
Sania also sounded confident about her first round game against Ukrainian Alona Bondarenko.

HSBC has plans to expand

The HSBC has plans to expand its business in Andhra Pradesh leading to generation of an additional 3,000 jobs by 2008. This was reportedly conveyed by Malcolm Wagget, Chief Operating Officer, Global Resourcing, South Asia, HSBC, to Chief Minister Y. S. Rajasekhara Reddy when he called on the latter on Tuesday.

Two of HSBC's six facilities in South Asia are located in Andhra Pradesh. Situated in Hyderabad and Visakhapatnam, these facilities employ over 7,000 professionals and this number is likely to go up to 10,000 by the end of 2008.

According to Mr. Wagget, the HSBC has also set up its software development centre in the city that will employ over 1,500 software professionals in two years. Mr. Richard Farrand will take over as COO, South Asia of HSBC from Mr. Wagget, who is retiring on July 1 after a four-year-long stint in the city. The Chief Minister assured the incoming COO of all possible support from his Government to the HSBC in expanding its operations in the State.

Cancer hospital to be centre of excellence

The MNJ Institute of Oncology and Regional Cancer Centre, the premier Government hospital in the city, will be developed into a centre of excellence during the 11th five-year plan (2006-2010).

A press note issued by the Chief Minister's office on Tuesday said that the Government will spend Rs. 55 crores for the development of the hospital by installing three more linear accelerators, computer tomography (CT) stimulator, MRI and Positron Emission Tomography (PET) CT. Once these are in place, the MNJIO & RCC will become one of the five major cancer institutes in the country.

The Institute, which is into its golden jubilee year, has received Rs. 6.50 crores for establishing a CT scan and a Gamma camera during 2005-06. It has also placed orders for a high energy linear accelerator at a cost of Rs. 6 crores to perform advanced procedures like intensity modulated radio therapy (IMRT) and a second HDR Brachytherapy unit treatment planning system (TPS) for gynaecological cancers.

Besides, the State Government has allocated Rs. 8 crores for the construction of a golden jubilee block in 2006-07, Rs. 3 crores for expanding the Surgical Oncology Department and Rs. one crore for establishing the oncology research wing. Presently, about 10,000 new cancer cases are being registered at the institute whose existing facilities are being stretched to the maximum.

AP power sector gets top rating

The Andhra Pradesh power sector has been assigned "First rank" for its overall performance in 2005-06 in the Crisil rating exercise commissioned by the Ministry of Power, Government of India.

For the third time, the State has been awarded top rank, following it up in FY 2003, 2005 and 2006. The rating is based on the performance of the power utilities. All utilities are in profit and the tariffs for consumers have not been increased. In fact, high-tension industrial consumer tariffs are lower and the tariff subsidy from the Government is decreasing, an official press release said.

Massive reduction in T&D losses (at 20.1 per cent) by the end of 2005-06 was mainly responsible. During the rating exercise, AP utilities scored due to reduction in aggregate technical and commercial losses, improved cash coverage of costs, generation PLF, availability of transmission lines, employee productivity and timely debt servicing of loans.

The State Government will be presented with the award on July 13 in New Delhi, the release said.

The benefits of the power sector reforms is being felt directly by the consumers, including one crore rural and 20.04 lakh agriculture consumers.

During 2005-06, AT&C losses were reduced to 18.79 per cent in 2005-06. Around Rs 1,300 crore was invested in rural development out of Rs 2,013 crore in 2005-06.

The industrial sector witnessed 23.4 per cent growth and the revenue reached Rs 11,857 crore during 2005-06. The benefits of improved efficiencies were passed on to the consumers by keeping domestic power tariffs constant in spite of inflationary cost increases in establishment costs and fuel prices.

Tech Mahindra on recruitment drive

Tech Mahindra, India's 8th largest software exporter is on a massive resurgent mood.For its domestic and overseas centres, it plans to recruit 3,500 software engineers in support of its expansion plans.

Tech has applied for land to expand in Pune, Hyderabad and Bangalore.

Last year, they recruited 1300 engineers who will join from this year. This year they plan to hire 3500 freshers and also 400 experienced professionals every month. They have also applied for expansion of our centres in Pune (15 Acres), Hyderabad (15 acres) and Bangalore (15 acres). It has acquired lands of around 60 acres in various centres and development work is expected to be completed in next two years.

Tech has recruited 60 freshers from Dhirubhai Ambani Institute of Information and Communication Technology (DAIICT) and Nirma Institute of Technology (NIT). It will also visit another six to seven engineering institutes. The recruits will be based in its centres in India and overseas. Currently, the head count at Tech is around 11,700 which has more than doubled from 5,617 in 2005.

Out of the total existing staff 1,000 is based in UK and 300 in the US. Tech had a turnover of $280 mn in 2005-2006 while in terms of profit it was US$ 53 mn from US $23 mn in the previous year.

About 99 per cent of its softwares are exported. Recently rechristened as Tech Mahindra from Mahindra British Telecom, the company is undergoing a transformation and addressing new players in the telecom ecosystem and service lines. It will also launch intellectual property leakage solution, informally called Inte-leak soon. It has also ventured into media digital rights management solution.

100m pounds UK grant for health sector

The Andhra Pradesh Government would get a grant of 100 million pounds (about Rs 860 crore) from DFID (Department for International Development, the UK) for bolstering the health sector in the State.

The Government would have the flexibility in using the funds to suit the requirements of the sector. It could be used for meeting the fund gaps, strengthening the delivery systems and roping in the self-help groups.

Addressing a press conference here on Monday, Mr K. Rosaiah, Minister for Finance and Health, said officials from the Government had held discussions with the DFID representatives recently.

Besides, the Government would seek Rs 165 crore from Nabard to develop health infrastructure. Keeping in mind the alarming level of accidents on the highways, the Health Ministry had decided to set up 37 trauma care centres at important Government hospitals situated along the national highways.

Nellore district had been sanctioned a Regional Cancer Centre and trauma care centre. Dr I.V. Subba Rao, Principal Secretary (Health), said blood banks and blood storage units would be opened in 79 hospitals.

The Minister, who held a review meeting on Sunday, directed the officials to take precautionary measures to check the spread of diseases in the rainy season. He said the Government had approved 20 medical colleges (ayurveda-12, homoeopathy -6, and unani - 2) in the private sector.

A mega techno-residential township

The Lanco Group has sewn up plans for a mega techno-residential township of 18 million sq ft that would come up in a 100-acre site near here with an investment outlay of about Rs 3,600 crore.

The company is planning a 90-storey building, which could potentially be the tallest such structure in the country. Since this comes in a special zone, clearances would be formality, the company said....... Apart from developing 16 residential towers each of about 30 levels, this project will host a mega mall complex and two hotels - a five-star and a four-star one.

The Lanco group Chairman, Mr L. Madhusudhan Rao, told that the magnitude of the project was such that this will effectively create a larger capacity than the existing Hitec City area near here, where a majority of the IT companies have set up shop. The project, to be taken up through a strategic partner, would be completed within three years.

"We plan to unveil the project in August, and a leading Mumbai-based designer has been roped in for its design. The company expects to tap into other metros following up on their capability to handle infrastructure projects," Mr Rao said. Giving an overview of the mega office-cum-township project named Lanco Hills, Mr Rao said that this would be a mixed development project that will have a built-up space of about 18 million sq ft, featuring top-notch office space, residential facilities and large recreation zones.

The company is planning a 90-storey building, which could potentially be the tallest such structure in the country. Since this comes in a special zone, clearances would be formality, the company said.

With regards to the office space, the company is planning 12 towers each of up to 20 levels that would be custom designed for IT and IT-enabled services (ITES) companies and this would form part of the Knowledge Corridor that the State Government is in the process of developing, he said. Apart from developing 16 residential towers each of about 30 levels, this project will host a mega mall complex and two hotels - a five-star and a four-star one. The mall will have a built up space of about two million sq ft, with multi-level parking space.

In all, the township will have 7.5-million sq ft. of office space and 8 million sq ft of housing facility in addition to the mall and hotel complexes.

Sales tax on petrol, diesel reduced

The Andhra Pradesh Government has decided to lower the sales tax on petrol and diesel, which would result in a drop in their prices. The Chief Minister, Dr Y.S. Rajasekhara Reddy, took the decision on Saturday, while reviewing the recent hike in fuel prices at a high-level meeting with Finance and Commercial Taxes officials.

He ordered that the commercial taxes/sales tax should be reduced from 34 per cent to 33 per cent on petrol and from 23 per cent to 22.25 per cent on diesel; this means a reduction of 40 paise for petrol and 22 paise for diesel per litre.

Accordingly the price of petrol and diesel per litre in the State would be Rs 52.86 and Rs 35.76, respectively. This measure will provide a relief of Rs 135 crore per annum to the people.

Begumpet airport is choking

Airlines seeking to schedule new flights in and out of Hyderabad during peak hours are unlikely to get slots: the Begumpet airport is already operating the maximum number of flights during peak time. In what should be music to the ears of the votaries of Hyderabad's development, the Begumpet airport witnessed a stunning growth of 45 per cent in domestic traffic during the last six months.

At present, Begumpet handles nearly 200 flights in a day. About 16 to 18 flights take off and land in an hour on the runway during peak hours. The maximum flights the airport can handle in a day is 300.

While this has meant 50 per cent increase in revenue for the AAI, if the same growth continues, the airport will be choking soon. The new Shamshabad airport is slated to be operational only in April 2008. Peak hours in airlines parlance extend from 7 am to 9 am and 5.30 pm to 7.30 pm. In this scenario, airlines seeking to introduce additional flights will have to settle for off peak hours, which mean afternoons or even late in the night.

Spice Jet which started with three flights a week in November now operates two flights daily. Hyderabad is leading the race leaving behind Pune, Bangalore and Chennai and has emerged as the favourite destination for airliners. Air Deccan has plans to operate new flights to Rajahmundry, Visakhapatnam, Vijayawada and Pune from the city soon. According to Captain G R Gopinath, managing director of Deccan Airways, Hyderabad airport is already facing congestion.

At present, Begumpet handles nearly 200 flights in a day. About 16 to 18 flights take off and land in an hour on the runway during peak hours. The maximum flights the airport can handle in a day is 300.

Mir alam tank turns 200

Mir Alam Tank, abutting the Nehru Zoological Park, off the Hyderabad - Bangalore highway completed 200 glorious years on Thursday, over 125 of these in ensuring a continuous reliable drinking water supply to the denizens of the now old Hyderabad, till the time Osman Sagar and Himayat Sagar reservoirs were built.

Water of this tank was said to be so pure and sweet that people who got used to it much like the 'Gandipet ka pani' in the later years, would carry it in special containers whenever they went out of Hyderabad on tour. Quite a contrast indeed, for the much-neglected historically important tank has now virtually turned into a cesspool full of domestic sewage and industrial waste endangering the flora and fauna of the zoo.

The tank is named after Mir Alam Bahadur (Syed Abdul Khasim), a nobleman of Hyderabad who went on to become Prime Minister during the reign of Nawab Sikander Jah, the third Nizam of Hyderabad. According to Mohammed Safiullah, managing trustee of the Deccan Heritage Trust, Mir Alam was among those who led the Nizam's forces in the battle against Tipu Sultan. It was from the share of the treasure he got from Srirangapatnam that he built the tank.

Mir Alam laid the foundation for the tank bearing a distinct French design stamp, on July 20, 1804, as a plaque still lying in a corner shows. It was completed in about two years on June 8, 1806. It is a French marvel in a way, as the arched granite wall looks small but holds plenty of water. In the planning stage, even Monsieur Raymond, credited with setting up of Gunfoundry near Abids was also involved.

Datastrip shortlists Hyderabad

Datastrip, a provider of personal identification and verification technology, is mulling a manufacturing facility in India. Hyderabad and Bangalore have been shortlisted as potential locations in this regard. Datastrip is a privately held group of companies operating from the UK and USA. Addressing the media, Steve Blackmore, chief executive officer of Datastrip, said, "We already have manufacturing facilities in the US and China. However, we are keen on setting up a manufacturing base in India as well. We hope to take a decision in a few months' time."

Company officials declined to divulge the investment that it would involve. The company intends to start manufacturing in India to be "closer to the market". According to Blackmore, "The Indian market is very exciting now as technology and infrastructure upgradation is gathering momentum." Datastrip in collaboration with BrickRed provides end-to-end solutions for transport applications like driving license and vehicle registration certificates, national ID cards, social security cards and the likes. Company officials have also initiated talks with Andhra Pradesh chief minister Y S Rajasekhara Reddy with regard to some of its solutions.

"With the number of airports increasing, we see a huge potential for our solutions in India as these can be used in checking passports and visas," Blackmore added.

MCH serious about fire safety

The Municipal Corporation of Hyderabad has given a month's time for all high-rise buildings above 18 metres in height in the twin cities to install fire safety equipment. It has also warned that failure to do so would attract stiff penalty including seizure of buildings if need be.

MCH Additional Commissioner (Planning & Projects) K. Dhananjaya Reddy said 144 high-rises including some Government buildings have been issued notices to make their structures fire proof. This was in addition to about 60 such buildings given notices earlier.
Mr. Reddy, who held a review meeting with nearly 120 building owners on Thursday, said there was good response from stakeholders and the need to adopt fire safety norms has been accepted by all.

While some owners have already complied with the checklist of safety devices and equipment, some have sought more time to procure and install the necessary equipment. Static tanks, fire hydrant systems, sprinklers, fire extinguishers and the likes comprised the list. About 15-20 Government buildings too have asked to take up adequate measures.

About 10 teams comprising of officials from the MCH and Fire Safety Department had earlier inspected all the high-rise buildings, both commercial and residential, to check for fire safety aspects and submitted a report. Notices were being issued following these reports.

The same teams will inspect the high-rises after a while to check them for fire safety worthiness, officials said. Chief City Planner B. Purushothama Reddy and Regional Fire Service Officer Rajendra Prasad participated in the meeting.

Deloitte employees do social work

About 3,500 employees of Deloitte and India, participated in a major social work initiative and dedicated about 30,000 hours of voluntary service, touching about 30,000 lives.

This is part of a social event Impact Day and is amongst a major voluntary service. This encompassed about 21 different social activities. Inspired by Munnabhai's Jaadu Ki Jhappi, as part of the Salaam Namaste activity, volunteers showed their gratitude to the sweepers of the Municipal Corporation of Hyderabad and drivers of the Road Transport Corporation. They carried with them little thank you Jute Bags that had sweets, biscuits and some stationery.

ORR's great, what about the toll?

Every time you travel on the proposed Outer Ring Road (ORR), you may have to shell out a fee for using the roadway. Toll gates will be in place on nearly 45 per cent of the 162 km ORR stretch.

However, there would be no toll gates on the ORR stretch to be completed in phase-I, connecting Gachibowli and Shamshabad. Huda will be constructing the phase-I with its own money.

Moreover, the ORR might be stretched to three phases instead of two decided earlier. The Hyderabad Urban Development Authority (Huda) is planning to split the existing phase-II works into two parts and the final portion of the road would be completed on the basis of build-operate-transfer (BoT) model, sources said.

The works relating to the latest proposal of ORR phase-III would be handed over to successful bidders, who will have to set up toll gates on a stretch of ORR whose length would be decided once the Huda gets the nod to the latest proposal. However, the authorities are proposing that the toll gates be set up on at least 70-km stretch.

The authorities would decide the number of toll gates or toll booths to be permitted on the ORR based on the length of works and estimated cost of the project. However, there would be no toll gates on the ORR stretch to be completed in phase-I, connecting Gachibowli and Shamshabad. Huda will be constructing the phase-I with its own money.

Of the 162-km ORR, 24 km will be covered during phase-I. Consultants have reportedly suggested to Huda to divide the 132-km length of phase-II into two portions, splitting the ORR works into three phases.

Further, the officials suggested that the works of at least half portion of 132 km be handed over to private companies on the BoT model. The pr