Long-distance telecom (STD) tariffs are set to become cheaper with regulator Trai announcing on Thursday that access deficit charge (ADC) on domestic calls will be eliminated from April. International calls to India will also be cheaper as Trai has halved their ADC to 50 paise per minute from April 1 to September-end, after which it will be phased out. However this reduction of charges on incoming long distance calls will have no benefit for Indian consumers, but will help consumers in other countries like NRI’s to call their relatives back home at rates lower by 50 paise for every minute of the call. This will also help reduce the grey market calls in the international telephony market due to lower arbitration margins.
Currently, all telcos pay 0.75% of total revenues towards ADC, which is used to support state-owned BSNL’s unviable fixed-line operations in rural India. Private operators who were bearing the burden of paying the charges till now stand to collectively save about Rs 750 crore, for individual subscribers this move will translate into a reduction of about 0.75 per cent on their monthly bills. For example if a mobile user spends Rs 200 a month he will now have to pay Rs 1.50 less. The Cellular Operators Association of India also said that the savings will be passed on to the consumers though it may not result in any significant decrease in tariffs when distributed among 300 million subscribers. Within hours of the Trai announcement, all telcos said they would pass on the savings to subscribers.
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Tata Chem raises Rs 3,400 cr for acquiring US based General Chemical Industrial Products for $1 billion (about Rs 4,000 crore) early this year. The acquisition of General Chemical will make Tata Chemicals the second largest maker of soda ash in the world. Tata Chemicals would raise $850 million (about Rs 3,400 crore) in debt to fund the acquisitions.
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After nine months of negotiation, Tata Motors has finally signed a deal to buy luxury brands Jaguar and Land Rover (JLR) from Ford Motor for $2.3 billion in cash, the largest acquisition by an Indian company in the automobile business. The purchase price is less than half what Ford paid ($2.5 billion each) to acquire the two brands. Ford bought Jaguar in 1989 and Land Rover from BMW in 2000.
There are about 16000 employees on rolls of JLR. Hence, Ford will contribute about US$ 600 million towards Jaguar Land Rover pension plans. The definite agreement brings brands, plants and Intellectual property rights of JLR. The agreement provides for Ford to continue to supply Jaguar Land Rover for differing periods with powertrains, stampings and other vehicle components.
Ford will also supply a variety of technologies, such as environmental and platform technologies. It has committed to provide engineering support, including research and development, plus information technology, accounting and other services. As a transition arrangement, Ford Motor Credit Company will continue to provide financing for Jaguar and Land Rover dealers and customers during a transitional period, which can vary by market, of up to 12 months.
The deal is a fulfillment of Mr Tata’s personal vision and is intended to catapult Tata Motors into the global big league of auto majors. It will also reinforce the global perception of India Inc as a leader in international business, and not just in IT. The acquisition also marks Tata Motor’s leap forward into the global higher end luxury car segment.
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