Britain is to outline a crackdown on people arriving on student visas Monday as
it bids to tighten its immigration system, described by a minister as "largely out of control".
Prime Minister David Cameron's Conservative party has promised to cut net migration from hundreds of thousands to tens of thousands annually.
Shortly after taking power in May as head of a coalition government, Cameron introduced an annual cap on the number of economic migrants from outside the European Union.
Immigration Minister Damian Green said the government had inherited a system which was "largely out of control" and described the number of foreign students being let in as "unsustainable", in comments quoted by the BBC.
In a speech Monday, he is to call for "smarter immigration controls," according to extracts pre-released by the Home Office.
New Home Office research has revealed that of 186,000 foreign students granted visas in 2004, more than one-fifth were still in Britain five years later. Officials fear many may be working illegally.
The number of visas being issued to students and their dependants had risen to over 300,000 by this year, the figures added.
Green will say that Britain needs "smarter immigration controls -- controls which bear down on the numbers coming and welcome those we really need here."
He will add: "We cannot assume that everyone coming here has skills that the UK workforce cannot offer and we will not make Britain prosperous in the long-term by telling our own workers not to bother to learn new skills as we can bring them all in from overseas."
In separate comments to the Daily Mail newspaper, he added that while the cap on migrants had been "controversial," it was not in itself enough to cut net migration.
He added: "I want a student visa system which encourages the entry of good students to highly trusted institutions but which scrutinises much more closely or cuts out entirely those who are less beneficial to this country."
Wednesday, September 8, 2010
RBI Governor earns less than 5 per cent of top-paid bankers
Source :PTI , New Delhi
In an irony of sorts, RBI gets to approve salaries of all the top-level bankers in the country, but the central bank's top officials themselves get less than 5 per cent of what is paid to the bank chiefs.
An analysis of salaries paid to top officials of Reserve Bank of India and of banks licensed by it to do business in the country shows that RBI Governor D Subbarao's total remuneration is less than not only the chiefs of private sector banks, but also most of the public sector lenders.
The gap is huge with salaries of some of the bank chiefs being over 20-times of what is paid to RBI's Governor, its four Deputy Governors or its seven Executive Directors.
According to the information available from RBI under the Right to Information Act, RBI Governor D Subbarao got a gross salary of Rs 1,28,500 in the month of June 2010. This corresponds to an annual package of little over Rs 15 lakh for RBI Governor, who is a signatory to all the currency notes in the country.
Subbarao is the top-paid executive at RBI, followed by the four Deputy Governors, Shyamala Gopinath, Usha Thorat, K C Chakrabarty and Subir Gokarn, who got a gross salary of Rs 1,11,500 each in the same month. This translates into annual pay of about Rs 13.4 lakh.
RBI's seven Executive Directors were paid Rs 90,271 each in June 2010 -- the latest month for which salary data was available -- giving an annual package of less than Rs 11 lakh.
In comparison, at least 14 top executives at various private sector banks got an annual remuneration of more than Rs one crore in the last fiscal ended March 31, 2010.
Among the public sector banks also, at least ten top executives of various banks including the State Bank of India Chairman OP Bhatt's salary is higher than that of Subbarao.
Bhatt's total remuneration in the fiscal 2009-10 stood at nearly Rs 26.5 lakh.
However, it is the private sector banks who pay the most to their top executives. The pay packages of their top executives exceed by a large margin pay packages of their public sector peers as also RBI's top officials.
HDFC Bank Managing Director Aditya Puri earned Rs 3.40 crore in 2009-10 while ICICI Bank MD and CEO Chanda Kochhar's pay package stood at Rs 2.08 crore during that fiscal.
The government fixes the remuneration for key executives of public sector banks, as also that of RBI's top officials. On the other hand, private banks need a clearance from RBI for salary of their top executives, but currently there is no cap.
RBI in July suggested slashing salaries of CEOs and directors of private banks on poor showing and limiting the annual pay hikes to 10-15 per cent. At around the same time, a panel set up by Finance Ministry had recommended better salaries for public sector bank chiefs.
In an irony of sorts, RBI gets to approve salaries of all the top-level bankers in the country, but the central bank's top officials themselves get less than 5 per cent of what is paid to the bank chiefs.
An analysis of salaries paid to top officials of Reserve Bank of India and of banks licensed by it to do business in the country shows that RBI Governor D Subbarao's total remuneration is less than not only the chiefs of private sector banks, but also most of the public sector lenders.
The gap is huge with salaries of some of the bank chiefs being over 20-times of what is paid to RBI's Governor, its four Deputy Governors or its seven Executive Directors.
According to the information available from RBI under the Right to Information Act, RBI Governor D Subbarao got a gross salary of Rs 1,28,500 in the month of June 2010. This corresponds to an annual package of little over Rs 15 lakh for RBI Governor, who is a signatory to all the currency notes in the country.
Subbarao is the top-paid executive at RBI, followed by the four Deputy Governors, Shyamala Gopinath, Usha Thorat, K C Chakrabarty and Subir Gokarn, who got a gross salary of Rs 1,11,500 each in the same month. This translates into annual pay of about Rs 13.4 lakh.
RBI's seven Executive Directors were paid Rs 90,271 each in June 2010 -- the latest month for which salary data was available -- giving an annual package of less than Rs 11 lakh.
In comparison, at least 14 top executives at various private sector banks got an annual remuneration of more than Rs one crore in the last fiscal ended March 31, 2010.
Among the public sector banks also, at least ten top executives of various banks including the State Bank of India Chairman OP Bhatt's salary is higher than that of Subbarao.
Bhatt's total remuneration in the fiscal 2009-10 stood at nearly Rs 26.5 lakh.
However, it is the private sector banks who pay the most to their top executives. The pay packages of their top executives exceed by a large margin pay packages of their public sector peers as also RBI's top officials.
HDFC Bank Managing Director Aditya Puri earned Rs 3.40 crore in 2009-10 while ICICI Bank MD and CEO Chanda Kochhar's pay package stood at Rs 2.08 crore during that fiscal.
The government fixes the remuneration for key executives of public sector banks, as also that of RBI's top officials. On the other hand, private banks need a clearance from RBI for salary of their top executives, but currently there is no cap.
RBI in July suggested slashing salaries of CEOs and directors of private banks on poor showing and limiting the annual pay hikes to 10-15 per cent. At around the same time, a panel set up by Finance Ministry had recommended better salaries for public sector bank chiefs.
Rich Chinese shun charity dinner by Gates & Buffett
Source : FC : KJM Varma , PTI
Chinese billionaires, who in sheer numbers are second only to Americans, have shunned the invitation of two of the world’s richest men -- Bill Gates and Warren Buffett – to a charity dinner in the Chinese capital later this month for fear of parting with their hard-earned riches.
Fifty of China’s super rich recently received an invitation to a banquet to be held on September 29 with Buffett and Gates, who are on a worldwide mission to persuade the rich to join their campaign for philanthropy.
The duo has so far reported to have convinced 40 US billionaires to donate half of their wealth, worth as much as $125 billion. Reports had emerged that the two are on a mission to persuade wealthy Chinese entrepreneurs to make similar pledges, which scared away
some of them, official Chinese media reported.
“A small number of people declined the invitation to attend, while many of the invitees called to ask whether they would be required to pledge a donation at the dinner,” said Ray Yip, head of the China programme of the Bill and Melinda Gates Foundation, said.
Zhang Jing, the press officer of the foundation, said some of the Chinese entrepreneurs might have shunned the invitations due to busy schedules. “But that does not mean businessmen are afraid of being lobbied to donate their wealth. Some may not make it because of their tight schedules,” she said.
Ye Lei, another official of the foundation, said Gates and Buffett had no desire to urge Chinese tycoons to make such pledges. “The visit has two missions: to advocate philanthropy and to learn about the development of philanthropy in China. They're coming here to see whether in the future there might be some opportunities for cooperation or the establishment of a charitable coalition,” Ye said.
So far two Chinese billionaires -- Chen Guangbiao and Zhang Xin, CEO of Soho China, a real estate developer – have openly confirmed their participation. Chen, a successful businessman, said he was willing to donate all his wealth to charity funds in China when he dies.
He said the hesitation of other wealthy people in China may be due to the fact that Chinese businessmen cannot succeed without the support of state policy, a stable social environment and the hard work of their employees, he said.
Zhang Xin runs China's Beijing Human and Animal Environmental Education Centre, which accommodates 700 homeless dogs, cats and other animals.
From the foundation’s point of view, China appeared the next best place for Gates-Buffett to succeed as this year it emerged second-highest in terms of dollar billionaires in the Forbes list with 64, trailing the US with 117.
“However, numbers don't tell the real story when it comes to philanthropic contributions. Cultural and legal differences suggest that Gates and Buffet will find it extremely hard going here. Perhaps Gates and Buffett should look at their visit as seed-planting time rather than a bountiful harvest,” said Harvey Dzodin, a columnist of Global Times.
“Maybe a few billionaires will step forward and make the pledge in front of the bright lights and cameras but if recent history in China is any indication, not all pledges are fully redeemed after they are made. When the spotlight is turned off, so, it seems, are many contributors,” he said and asked the Chinese government to come forward with tax concessions for charity work like in US in other countries.
“The Gates-Buffett delegation should be talking not only to the people at the top of China's rich list, but to the people in the government who are considering changes in the tax laws,” he said.
Chinese billionaires, who in sheer numbers are second only to Americans, have shunned the invitation of two of the world’s richest men -- Bill Gates and Warren Buffett – to a charity dinner in the Chinese capital later this month for fear of parting with their hard-earned riches.
Fifty of China’s super rich recently received an invitation to a banquet to be held on September 29 with Buffett and Gates, who are on a worldwide mission to persuade the rich to join their campaign for philanthropy.
The duo has so far reported to have convinced 40 US billionaires to donate half of their wealth, worth as much as $125 billion. Reports had emerged that the two are on a mission to persuade wealthy Chinese entrepreneurs to make similar pledges, which scared away
some of them, official Chinese media reported.
“A small number of people declined the invitation to attend, while many of the invitees called to ask whether they would be required to pledge a donation at the dinner,” said Ray Yip, head of the China programme of the Bill and Melinda Gates Foundation, said.
Zhang Jing, the press officer of the foundation, said some of the Chinese entrepreneurs might have shunned the invitations due to busy schedules. “But that does not mean businessmen are afraid of being lobbied to donate their wealth. Some may not make it because of their tight schedules,” she said.
Ye Lei, another official of the foundation, said Gates and Buffett had no desire to urge Chinese tycoons to make such pledges. “The visit has two missions: to advocate philanthropy and to learn about the development of philanthropy in China. They're coming here to see whether in the future there might be some opportunities for cooperation or the establishment of a charitable coalition,” Ye said.
So far two Chinese billionaires -- Chen Guangbiao and Zhang Xin, CEO of Soho China, a real estate developer – have openly confirmed their participation. Chen, a successful businessman, said he was willing to donate all his wealth to charity funds in China when he dies.
He said the hesitation of other wealthy people in China may be due to the fact that Chinese businessmen cannot succeed without the support of state policy, a stable social environment and the hard work of their employees, he said.
Zhang Xin runs China's Beijing Human and Animal Environmental Education Centre, which accommodates 700 homeless dogs, cats and other animals.
From the foundation’s point of view, China appeared the next best place for Gates-Buffett to succeed as this year it emerged second-highest in terms of dollar billionaires in the Forbes list with 64, trailing the US with 117.
“However, numbers don't tell the real story when it comes to philanthropic contributions. Cultural and legal differences suggest that Gates and Buffet will find it extremely hard going here. Perhaps Gates and Buffett should look at their visit as seed-planting time rather than a bountiful harvest,” said Harvey Dzodin, a columnist of Global Times.
“Maybe a few billionaires will step forward and make the pledge in front of the bright lights and cameras but if recent history in China is any indication, not all pledges are fully redeemed after they are made. When the spotlight is turned off, so, it seems, are many contributors,” he said and asked the Chinese government to come forward with tax concessions for charity work like in US in other countries.
“The Gates-Buffett delegation should be talking not only to the people at the top of China's rich list, but to the people in the government who are considering changes in the tax laws,” he said.
RBI mulls deregulation of interest rate on savings
Source :PTI : Sep 08 2010 , Mumbai
The Reserve Bank today it will soon set up a working group to examine the
possibility of deregulation of interest rates on savings account.
"Deregulation of interest rate is on our radar. A working group will soon be set up to examine the possibility of deregulating of interest rates," RBI Deputy Governor Usha Thorat said while addressing a banking conference organised by FICCI and IBA here.
"We have to examine whether the de-regulation can help bring more people into the formal banking system," Thorat said.
At 3.5 per cent per annum, interest on savings accounts is the only regulated rate in the banking system currently and a highly contentious one given its impact on the common man.
For achieving the goal of financial inclusion, there is a need for a higher number of tie-ups between banks and the non-bank finance companies (NBFCs) to have better delivery systems to ensure better last mile connectivity, Thorat said.
Thorat also said that the apex bank is in the process of "tweaking" regulations on securitisation to ensure the growth of the securitised market in an orderly manner.
Banks should also ensure that there is no excessive borrowing, as such borrowings can lead to the formation of bubbles which can deter stability, she said.
Looking at the high growth in credit in recent years, Thorat advised banks to do more "forward looking provisions" to cover their non-performing assets (NPAs) whose increase is "inevitable" in the future.
In her address, Thorat laid a greater stress on rating agencies and asked them to provide "holistic approach" while rating as it has a direct link to the bank's assets.
She also highlighted the need for development finance institutions to launch more risk mitigant like the the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) which offers collateral-free loans for the benefit of small farmers, landless agricultural labourers, those engaged in allied activities related to agriculture and ones affected by natural calamities.
The Reserve Bank today it will soon set up a working group to examine the
possibility of deregulation of interest rates on savings account.
"Deregulation of interest rate is on our radar. A working group will soon be set up to examine the possibility of deregulating of interest rates," RBI Deputy Governor Usha Thorat said while addressing a banking conference organised by FICCI and IBA here.
"We have to examine whether the de-regulation can help bring more people into the formal banking system," Thorat said.
At 3.5 per cent per annum, interest on savings accounts is the only regulated rate in the banking system currently and a highly contentious one given its impact on the common man.
For achieving the goal of financial inclusion, there is a need for a higher number of tie-ups between banks and the non-bank finance companies (NBFCs) to have better delivery systems to ensure better last mile connectivity, Thorat said.
Thorat also said that the apex bank is in the process of "tweaking" regulations on securitisation to ensure the growth of the securitised market in an orderly manner.
Banks should also ensure that there is no excessive borrowing, as such borrowings can lead to the formation of bubbles which can deter stability, she said.
Looking at the high growth in credit in recent years, Thorat advised banks to do more "forward looking provisions" to cover their non-performing assets (NPAs) whose increase is "inevitable" in the future.
In her address, Thorat laid a greater stress on rating agencies and asked them to provide "holistic approach" while rating as it has a direct link to the bank's assets.
She also highlighted the need for development finance institutions to launch more risk mitigant like the the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) which offers collateral-free loans for the benefit of small farmers, landless agricultural labourers, those engaged in allied activities related to agriculture and ones affected by natural calamities.
Tata Steel to raise $4.5-5.5 billion loan to refinance debt
Source: Reuters Sep 08 2010 , Kolkata
Tata Steel, the world's No. 7 steelmaker, is in talks with banks to raise
between $4.5 bn to $5.5 bn loan to refinance debt at its European unit
corus, its managing director said on Wednesday.
"We are in talks with bankers for refinancing our European loans," H.M. Nerurkar told reporters.
The company had said last month it was looking to refinance existing debt based on the extension of the period and flexibility of terms. It had reported net debt of $9.5 bn at the end of the June quarter.
Nerurkar did not name or quantify the banks with which the company was in talks and also did not specify any timeframe.
Last month, Tata Steel lagged market estimates for its June quarter profits and said it expected industry fundamentals to remain cautious in the second half of the 2010/11 financial year.
Tata Steel's European operations account for two-thirds of its global capacity of about 30 mn tonnes, while the Indian operations contribute a quarter. It also has units in South East Asia and Africa.
DENIES SALE IN S AFRICA
Nerurkar denied media reports on Tuesday that Tata Steel was considering selling assets at its South African unit Tata Steel KZN, which it set up in 2006.
"We have no plans whatsoever to sell the South African assets," he told reporters. "We are currently looking at stabilising the operations there and scouting for ferro chrome mines for securing raw material sources."
The South African plant, which has an annual capacity of 150,000 tonnes, produces high carbon ferrochrome and charge chrome.
The company also expects to start work on a greenfield plant at Orissa in eastern India, by October, Nerurkar said.
Tata Steel plans to set up a 6 mn tonnes steel plant at Kalinganagar in Orissa, and has already placed orders for equipment and services for the project.
Shares in Tata Steel pared losses after the news of the fundraising. At 0703 GMT, the stock was trading at 580 rupees, up 0.6 percent in a Mumbai market up 0.2 percent.
Tata Steel, the world's No. 7 steelmaker, is in talks with banks to raise
between $4.5 bn to $5.5 bn loan to refinance debt at its European unit
corus, its managing director said on Wednesday.
"We are in talks with bankers for refinancing our European loans," H.M. Nerurkar told reporters.
The company had said last month it was looking to refinance existing debt based on the extension of the period and flexibility of terms. It had reported net debt of $9.5 bn at the end of the June quarter.
Nerurkar did not name or quantify the banks with which the company was in talks and also did not specify any timeframe.
Last month, Tata Steel lagged market estimates for its June quarter profits and said it expected industry fundamentals to remain cautious in the second half of the 2010/11 financial year.
Tata Steel's European operations account for two-thirds of its global capacity of about 30 mn tonnes, while the Indian operations contribute a quarter. It also has units in South East Asia and Africa.
DENIES SALE IN S AFRICA
Nerurkar denied media reports on Tuesday that Tata Steel was considering selling assets at its South African unit Tata Steel KZN, which it set up in 2006.
"We have no plans whatsoever to sell the South African assets," he told reporters. "We are currently looking at stabilising the operations there and scouting for ferro chrome mines for securing raw material sources."
The South African plant, which has an annual capacity of 150,000 tonnes, produces high carbon ferrochrome and charge chrome.
The company also expects to start work on a greenfield plant at Orissa in eastern India, by October, Nerurkar said.
Tata Steel plans to set up a 6 mn tonnes steel plant at Kalinganagar in Orissa, and has already placed orders for equipment and services for the project.
Shares in Tata Steel pared losses after the news of the fundraising. At 0703 GMT, the stock was trading at 580 rupees, up 0.6 percent in a Mumbai market up 0.2 percent.
KEC buys US firm SAE Tower for Rs 446 crore
Source: Rupesh Subhash Janve : FC:Sep 07 2010
After a two-year break in the US, the Rs 17,000 crore RPG group has finalised acquisition of America’s largest manufacturer of steel towers used in power transmission. KEC International, an RPG group company, has inked a deal to acquire SAE Towers Holdings from private equity firm ACON Investments for $95 million (approximately Rs 446.5 crore). The deal is a cash-free and debt-free one and will give KEC access to the US, Canada and Latin American markets.
SAE is a profitable firm with an estimated turnover of $137 million and an EBITDA of $19 million and an EBITDA margin of 14 per cent as compared to 9-10 per cent for KEC.
“We see the US as a huge opportunity for us as valuations are good and the business is flat. So we will look at more acquisitions in that market across sectors that the group operates in including IT,” said Harsh Goenka, chairman, RPG Enterprises.
The acquisition of SAE is expected to close by the end of this month on a cash-free, debt-free basis, and will be EPS accretive from 2010-11, the company said in a statement. Since SAE has approximately $16 million of debt on its balance sheet, KEC will effectively pay $79 million (Rs 353.46 crore).
“The deal will strengthen KEC's foothold in the markets of North America and Latin America where transmission and distribution spends are increasing,” Goenka, who is also the chairman of KEC International, told reporters in Mumbai on Tuesday. RPG group is also looking at Europe for acquisitions across the businesses.
Meanwhile, KEC expects to raise debt from the international market to fund the acquisition. “The acquisition will be through a combination of internal accruals and equity. Since interest rates are lower in the international market than in the domestic market, we may go for fund raising from the international market,” Ramesh Chandak, MD and CEO of KEC, said.
A top KEC officials said that the company had a free cash flow of around Rs 70 crore last year. The figure is expected to be higher this year. “We don’t think we’ll have any issues raising debt in the international markets,” a KEC official said.
After a two-year break in the US, the Rs 17,000 crore RPG group has finalised acquisition of America’s largest manufacturer of steel towers used in power transmission. KEC International, an RPG group company, has inked a deal to acquire SAE Towers Holdings from private equity firm ACON Investments for $95 million (approximately Rs 446.5 crore). The deal is a cash-free and debt-free one and will give KEC access to the US, Canada and Latin American markets.
SAE is a profitable firm with an estimated turnover of $137 million and an EBITDA of $19 million and an EBITDA margin of 14 per cent as compared to 9-10 per cent for KEC.
“We see the US as a huge opportunity for us as valuations are good and the business is flat. So we will look at more acquisitions in that market across sectors that the group operates in including IT,” said Harsh Goenka, chairman, RPG Enterprises.
The acquisition of SAE is expected to close by the end of this month on a cash-free, debt-free basis, and will be EPS accretive from 2010-11, the company said in a statement. Since SAE has approximately $16 million of debt on its balance sheet, KEC will effectively pay $79 million (Rs 353.46 crore).
“The deal will strengthen KEC's foothold in the markets of North America and Latin America where transmission and distribution spends are increasing,” Goenka, who is also the chairman of KEC International, told reporters in Mumbai on Tuesday. RPG group is also looking at Europe for acquisitions across the businesses.
Meanwhile, KEC expects to raise debt from the international market to fund the acquisition. “The acquisition will be through a combination of internal accruals and equity. Since interest rates are lower in the international market than in the domestic market, we may go for fund raising from the international market,” Ramesh Chandak, MD and CEO of KEC, said.
A top KEC officials said that the company had a free cash flow of around Rs 70 crore last year. The figure is expected to be higher this year. “We don’t think we’ll have any issues raising debt in the international markets,” a KEC official said.
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