Foreign money floods ..Telecom...!!

Foreign money floods big telecom companiesBharti sold 5% stake to a Doha-based firm for Rs 7,080 cr, while Vodafone invested Rs 10,141 cr by buying out its Indian partnersKatya B Naidu  |  Mumbai  

December 25, 2013 Last Updated at 17:52 IST

Top telecom players had a good run with foreign investment this year. More than Rs 17,000 crore foreign money came into the sector, and only into the top telecom operators.  The top most telecom company, Bharti Airtel, sold 5% stake in its company to Doha-based Qatar Foundation Endowment for $1.18 billion (Rs 7,080 crore). British telecom majorVodafone, the parent company of Vodafone India invested Rs 10,141 crore by buying out its Indian partners.  This came after foreign direct investment (FDI) limit rules on telecom were eased. Idea too had conducted roadshows for its qualified institutional placement this year, to raise as much as Rs 3,750 crore. Its existing partner, Malaysian telecom company, Axiata has already said that it will invest in the company to keep up its stake in the company.   This will spur investments from large players, industry expects. While the top three players have to invest in the upcoming spectrum auction early next year, they will also spruce up their networks to make themselves ready for the next wave of telecom growth.  “The time is right for telecom companies to make investments if they have to stay ahead. Telecom companies have to be prepared because the number 1 and number 2 places are severely contested by other challengers,” said Alok Shende, principal analyst and co-founder of Ascentius Consulting. Airtel, which already launched its 4G services in four circles, is also spending on enhancing its network.  The money raised can also help big players consolidate as merger and acquisition norms were relaxed by the government. “Incumbents are doing well but all the other players are suffering. The time is right for big companies to take them over and push out the fringe players,” said Mahantesh Marilinga, senior research analyst at Finquest. Analysts feel that the price has to be right for acquisitions as operators that would come up for sale would be stressed assets with piling debts. Late entrants into the sector had come in at huge premia and might even have to exit at a loss. “Unless two or three players bid for the same asset when the valuation might go up,” said  Marilinga.  Shende also feels that increased interest of foreign players is also because a lot of issues surrounding the telecom sector have been resolved. Many of 2008 entrants into the sector exited the race after the Supreme Court cancelled licences. The few who remained by winning licences back, have ceased being pan-India players like Uninor, MTS and Videocon.  Vodafone has already talked about hiking tariffs, indicating that pricing power has come back to top players. “The spectrum pricing that has come in is also in favour of the top players,” said Shende. The government approved the floor prices of spectrum which were greatly reduced from the auctions in 2012.  Newer opportunities have also started opening up for the sector, especially as many are seeing data growth. “3G started growing from being greenshoots as the uptake has been good. Enterprise market is growing which is good for both Vodafone and Idea,” said Shende.

http://www.business-standard.com/article/companies/foreign-money-floods-big-telecom-companies-113122500511_1.html

COAL TO METHANOL..FUEL ENERGY SOURCE ...!!!

Tatas and Ambanis showed interest in methanol economy: G K Suryaprakash
Interview with Professor, University of Southern California, DornsifeN Sundaresha Subramanian  |  New Delhi  

December 21, 2013 Last Updated at 23:15 IS

Even as Indian policymakers explored options to reduce ballooning fuel bills that were raising the country’s current account deficit and exchange rates, scientist G K Suryaprakash was busy completing his award-winning work, which, if pursued seriously, could resolve the globe’s energy issues. In November, India-born Suryaprakash, who teaches at the University of Southern California, Dornsife, was awarded the $1-million Eric and Sheila Samson Prime Minister’s Prize for Innovation in Alternative Fuels for Transportation. He shared it with his Nobel laureate mentor and colleague George Olah. Their proposal to use methanol to replace fossil fuels and petroleum-based feedstock has caught the interests of some Indian states, as well as the Tatas and Reliance, Suryaprakash tells N Sundaresha Subramanian during a recent visit to Allahabad. Edited excerpts:
Tell us about your work, which won you the prestigious prize that has come to be known as the “Energy Nobel” in Israel.
We believe once we run out of oil and gas, it will be a simple solution for mankind. We call it a KISS concept — keep it simple, silly. When you talk about global warming issues, carbon dioxide (Co2) is seen as the biggest culprit. But you can’t just ban it. Without Co2, there is no life on Earth. Human beings are tied to the carbon cycle. But there is an imbalance in the atmosphere due to excessive Co2 emission because of burning fossil fuel. The way to go is ‘recycle Co2’. It is called carbon capture and recycling. We want to make methanol from carbon dioxide. It is the simplest carbon compound and can be a viable alternative to fossil fuels. You can do all you do (with fossil fuels), with methanaol. Mankind can do it for ever, as long as the Sun is shining. That’s the idea.
If it’s so simple, why has no one done it yet?
Humankind is not mostly reactive. It always reacts to crisis. China is doing it because it has no other choice. It has coal; it converts it into methanol. That is a huge market. Israel is adopting it. They found lot of natural gas in the Mediterranean. They have instituted this prize which we won recently, which is known as the Nobel Prize for alternative fuel.
Is this technology viable today?
It is viable. In Iceland, we are doing it. We are taking geothermal steam and water and making 10 tonnes of methanol a day. The George Olah Renewable Methanol plant is named after my Nobel laureate colleague.
How is India placed to make use of this concept?
India can start it. India has a lot of dry biomass — coconut parts and bagasse, which come from sugar cane husk. We can easily gassify it. Such activities are going on in Sweden, Norway, etc. India can benefit from this. It should do it in a distributive fashion. In a small fashion, locally; then, you can consume the fuel you produce.
But currently, India is grappling with debates over the usage of another alternative fuel,ethanol.
In my view, ethanol is not sustainable; it affects food security. Even the US converts 40 per cent of its valuable corn crop into bioethanol. It is unsustainable. Because of that, cheese and wheat prices have risen in third-world countries.
Has the Indian government shown any interest in the methanol economy?
The Indian government hasn’t shown much interest. But the Karnataka government has. There is an organisation in Karnataka that is looking for sustainable fuel; that has shown interest.
Some corporate groups in India are showing interest in methanol.
The Tatas and the Ambanis have read our book ‘Beyond Oil and Gas: The Methanol Economy’. I had dinner with (Reliance Industries chief) Mukesh Ambani in the big house he has built in Mumbai. He showed an interest. But they come from a petrochemical background; they are business people. They want to see profits. Methanol may not bring you money right away. It is good for the environment.
In the long run, we will make money. I am not interested in making money.
How long is this long run?
Probably, we will convert coal to methanol. China is already doing it. You can stop importing oil. It is good for India; it saves valuable foreign exchange. In the long run, India has this solar potential. You can use that energy to make methanol. It is a flexible concept. Each country, depending on its situation, can make use of it and save money.
How will this distributive model work? Doesn’t it need a government push?
India does well in spite of its government policy. Having said that, this has to happen in a local way. Some people can collect biomass; a small investment can be made in a gassifier. Once you set up a gassifier, it is very easy to make methanol.
Isn’t some kind of a stimulant needed?
There are a lot of sustainable organisations. They can take it up. I would prefer (at the) state level. There is a lot more commitment. The Centre just puts the money and walks away, right? That is not a good idea. I think state governments are a better bet. If local people are not involved, forget it. It’s not going to happen.

http://www.business-standard.com/article/companies/tatas-and-ambanis-showed-interest-in-methanol-economy-g-k-suryaprakash-113122100294_1.html