NEW DELHI l WEDNESDAY l MARCH 14 l 2012 V O L X X X V I I I N O 1 2 2 0 P A G E S I R s 4 . 0 0 READ TO LEAD P 7 P 12 C O R P O R A T E S INFOSYS MAY QUIT BENGAL AS MAMATA TOUGHENS STAND ON GRANT OF SEZ STATUS P U B L I S H E D F R O M : A H M E D A B A D F E P YAHOO SUES FACEBOOK FOR 10 I N T E R N A T I O N A L G A D G E T S Brilliant display in B A N G A L O R E Sony Tablet S C H A N D I G A R H C H E N N A I INFRINGING 10 PATENTS, WEB ADVERTISING IN DISCORD H Y D E R A B A D K O C H I K O L K A T A L U C K N O W M U M B A I P U N E Pfizer, Biocon call off $350-m insulin deal fe Bureau Bangalore, Mar 13 PARTING WAYS ■ $350-million licensing deal giving B In the news INDICES BSE Sensex Closing Up/down 17,813.62 ▲ 69.95 Pfizer marketing rights for Biocon’s insulin products falls flat ■ Companies have cited ‘individual priorities’ as cause for the split ■ Biocon will retain $100 m upfront Kiran Mazumdar-Shaw, Biocon chairman payment by Pfizer, a ‘substantial’ part of another $100 m in escrow, & an additional sum as settlement few months. Pfizer has been going through several changes, and their business priorities have also undergone changes. However, for Biocon, this is still top most priority It, therefore, . ■ Domestic firms for change in compulsory licence model, P5 ■ See Edit: Bayer beware, Page 8 ▲225.95 S&P CNX Nifty 5,429.50 IO-PHARMA firm Biocon and multinational pharma major Pfizer on Tuesday called off a year-old $350-million global alliance to commercialise the Bangalorebased company's insulin and insulinanalogproducts,citing“independentpriorities”. Kiran Mazumdar-Shaw, Biocon chairperson and managing director,toldFE:“Thishasbeen underconsiderationforthepast made sense for us to pursue this independently .” As part of the deal signed in October2010,Pfizerhadmadean upfrontpaymentof $100million, whichBioconretains.Itwillalso receive a ‘substantial’ part of another $100 million held in an escrow account plus an additional settlement amount, she said, withoutrevealingdetails. ■ Continued on Page 2 FM: SBI won’t lend more to Kingfisher State Bank of India has no plan to lend more to Kingfisher Airlines, finance minister Pranab Mukherjee said on Tuesday. Kingfisher had cleared all tax and interest dues up to August 2011, Mukherjee told the Rajya Sabha in a written reply. ■ Page 6 ■ Kingfisher owes Bank of Scotland $21.6 m in overdue lease payments for 10 ATR 72-500 aircraft ■ Disruption in flight schedules being sorted out, says Mallya 2012-13 divestment target R30k cr: FM Finance minister Pranab Mukherjee on Tuesday said that the disinvestment target for FY13 would be R30,000 crore and R25,000 crore for FY14. ■ Page 4 Census figures on home front retell India Story Five bids for Thomas Cook sale; PE funds key to deal Mamata’s fare hike ban limits Trivedi’s options fe Bureau New Delhi, Mar 13 Baiju Kalesh & Debabrata Das fe Bureau New Delhi, Mar 13 Mumbai, Mar 13: At least five entities have shown interest in purchasingtourandtraveloperatorThomasCookIndia (TCIL), which was put up for sale by British parent Thomas Cook, three people familiar with the development said. Tuesday was the last day for bidders to submit their expressions of interest for acquiring the British company’s 77.1% stake in the Indian subsidiary . Private equity funds couldbegame-changersin the deal as former travel and tour management executives and businessmen queue up for money PE . fund Everstone Capital, Dabur group scion Mohit Burman(withPEfundActis and others) and Mercury Travels owner Ashwini Kakkar are learnt to havetoputintheirbids,besides two PE funds. ThomasCookhadappointed Credit Suisse First Bostontosellitsbusiness. “Everstone will support the present management,” a person familiar with the development said. Mercury Travels' Kakkardidnotrespondto messages and calls made to his cellphone. Tata Capital, which planstoofferahostof travel-related services under fully-ownedsubsidiaryTC TravelandServices,issaid tohavesubmittedabid.FE could not independently confirmthisdevelopment. ■ Continued on Page 2 AILWAY minister Dinesh Trivedi will have a tough job when he presents his maiden rail Budget on Wednesday To execute . its expansion plans while keeping passenger fares low, the national transporter needs much more money thantheBudgetoutlayandits own revenue from freight. Trivedi will also have to reckon that the general Budget on Friday might impose a 10% service tax on freight, which could further dent the railways’ ability to compete with theroadsector,towhichithas lostsubstantialmarketshare. Two high-level panels that T HE past decade was witness to India’s all-round growth story with increased housing, mobile, telephone and television penetration, a jump in vehicle ownership and increased electrification, according to the findings of Census 2011. According to the HouselistingandHousingCensus data (also known as first phase of Census 2011) released on Tuesday, the 54% jump in urban housing in India has translated into an overall addition of 80 million census houses in 2011 which is 33% more than the 2001data.Thishasledtothe reductioninhousinggapin India in the last 10 years. Also, with 67% households using electricity, the rural-urban gap in electricity usage has narrowed in the last 10 years. On the communication front,thereisa16%increase in the number of television THE 54% JUMP IN URBAN HOUSING IN INDIA HAS TRANSLATED INTO AN OVERALL ADDITION OF 80 M CENSUS HOUSES IN 2011 sets in the country in the last decadewhilethepenetration of mobilephonesis59per100 households.Accordingtothe first phase Census 2011 report, 63% of Indian households have telephone/mobile facility with a majority , (82%) in urban area and 54% in rural area. The report points out that the last decade witnessed about a 15pointdeclineintheuseof radioandtransistors. In modes of transport, 21%householdsownedtwowheelers while 5% owned four-wheelers. “There is an increase of 9 points in twowheelerand2pointsinfourwheelers compared to 2001 numbers,” the report said. ■ Continued on Page 2 ៑ EUROZONE OKAYS GREEK AID PACKAGE, EDIT P8 DEMANDS DEEPER SPANISH DEFICIT CUT Time to soak in grandiose promises Severe underachievement of Railway targets isn’t for want of capital K Vaidya Nathan A SPECIAL FEATURE ON INDIA AVIATION WITH TODAY’S ISSUE India THE EXPRESS GROUP THE FINANCIAL AVIATION INTERNATIONAL SPACE EVERYONE IS FLYING I PUNE MUMBAI NEW DELHI KOLKATA LUCKNOW HYDERABAD KOCHI CHANDIGARH CHENNAI AHMEDABAD BANGALORE e SOARING NUMBER GLOBAL ECONOMY, AVIATION INDUSTRY DESPITE A DISMAL OFFERS HOPE TO OF FLYERS IN INDIA e,from2001to2011,th grown160 NTHEpastonedecad volumeof airtrafficinIndiahas thecountryintothe percent,catapulting passenger leagueof topfourcountriesby ndJapanbeingthe volume—US,Chinaa thgoesontoshowthe nthatthe otherthree.Thegrow . potentialof aviationinIndia,give onpeopleperaircraft countryhas2.89milli volume,thecounIn terms of passenger end,with2011netting consistentupwardtr passengers, try has seena or 60.7milliondomestic month—up 74 engersper 16percent growth, averaging outat5.1millionpass els. the robust percentfrom2006lev market fundamentals, Ministry of Given the strong continue. The a comis expected to rate of growth statement envisages the ‘Vision 2020’ cent in Civil Aviation’s around 15 per growth rate of pound annual its enters2012facing next five years. f industry reAtthe same time,Indianaviation gessincetheadvento mostcriticalchallen environmentof slowingGDP and Amid an forms in 2004. be toensureyields challengewill growth,the key maintained. capacity reprofitabilityare ses it industryin 2012wouldbe Anupsideforthe theindustryrecogni fare increases,as and be profitable ductions and 10-12percentgrowth 2.5billion. isbetterto havea at 17-18per centand lose$ positive instead of growing tyof airlines will also havea Improvedprofitabilierators. last impactonairportop passenger growth in the carriers The most dramatic by the low-cost was witnessed cent and 18 month of 2011 IndiGo, 31 per the Cenby SpiceJet and estimates by (LCC), driven , according to also reJet Airways per cent respectively Aviation (CAPA). the month. Air tre for Asia Pacific per cent in of 10.1 per growth of 24 ported strong passenger growth double-digit India reported cent of LCCsheld50per cent in the month. CAPAestimates, from 46.6per According to in December2011,up thedomesticmarket Page 2 Continued on centin November2010. Risingtrafficneedsmore andbetter airports 68,000 CRORE ARE IN AIR TRAFFIC, RS THE 12TH PLAN DUE TO AN INCREASE spaceis DEVELOPMENT DURING sitpointsif availabilityof anddelaysin REQUIRED FOR AIRPORT anissue.Congestion someof the aircargoterminalsinhave majormetroairports conthe airports are operationsin d uite important.Also, becomechronic. liablesuppli“India’simageasare arketsiscruerininternationalm nthe ciallydependentupo f aircargo performancelevelso try .Investterminalsinthecouneforupgramentsneedtobemad capacityand dation/expansionof processes/sysmodernisationof owing temstocatertothegr eedsimmerequirements.Thisn ervention,” diateandeffectiveint thereporthasnoted. ending2012 Bythefinancialyear privateairbeginningfrom2007, haveinvestportoperatorswould uding dabout$7billionincl d MARKETING FEATURE EXPRESS WEDNESDAY, MARCH 14, 2012 INTERVIEW MIKHAIL A.POGOSYAN ORPORATION PRESIDENTOFUNITEDAIRCRAFTC ‘INDIA’S AIR TRAFFIC IS CLOSELY TIED TO ITS ECONOMIC GROWTH’ President of Mikhail A. Pogosyan, India, a longIn an interview, says that aviation United Aircraft Corporation, of Russia in military time strategic partner important and prospective very cooperation, is a civil products market for UAC’s delivered the years since Russia the Indian It has been 10 variant to first Sukhoi Su-30MKI India has been your Air Force. What been our key experience? decades India has HAL is You know that for in multiple programmes.AndIndia. strategic partner projects in partner in many and our long-standing scientific, engineering together we’ve Along with solid of our cooperation, team production basis working multicultural created the effectively all the programme tasks.The resolve through that is capable to we’ve been accumulating new to our positive experience is now transferred decades of partnership such as FGFA and MTA.The programs ambitious joint programme is constantly side and Sukhoi Su-30MKI the Indian now together with developing and discussing the Su-30MKI we are Rosoboronexport upgrade package. market for is a potential Do you think there 100 in India? Aircraft the Sukhoi Superjet indeed.We, at United big potential It is a good question regard India as a 100 as Corporation (UAC), newest Sukhoi Superjet is currently market for Russia’s mainline jet, which well as MC-21, our Page 2 under development. Continued on Spain's economy minister Luis de Guindos (L) is greeted by Luxembourg's prime minister and Eurogroup chairman Jean-Claude Juncker at a Eurogroup meeting in Brussels. ■ P10 TC ups ante as SP calls on CPM Nistula Hebbar New Delhi, Mar 13 P RIME Minister Manmohan Singh will need more than dinner diplomacy to woo coalition partner Trinamool Congress (TC) and a resurgent Samajwadi Party The . TMC, which kept off a dinnerhostedbySinghforUPA allies, is planning to sit on a dharna inside Parliament premisesonMarch15,aday before the Union Budget. Meanwhile, the UPA's outside supporter SamajwadiPartycreatedaflutter by taking the first step to build bridges with the Communist Party of India (Marxist). Accompanied by son and UP chief ministerdesignate Akhilesh Yadav, SP chief Mulayam Singh Yadav on Tuesday visited CPI(M) headquarters AK Gopalan Bhavan here to meet general secretary Prakash Karat. Samajwadi Party president Mulayam Singh Yadav looks on as son and Uttar Pradesh chief minister-designate Akhilesh Yadav greets CPI(M) general secretary Prakash Karat during a meeting at the CPI(M) headquarters in New Delhi on Tuesday The TC, which has demanded a special package forWestBengal,ispeevedat what it says is the neglect of the state. “This is our genuine demand,” said a party MP Its MP Kalyan Banerjee . has filed a notice in Parliament to amend item 91 in the President’s address, which pertained to the National Counter Terrorism Centre (NCTC), an issue that has not found favour with the SP either. TC’s Derek O’Brien confirmed that a similar notice would be moved in the Rajya Sabha too when the motion of thanks for the President’s address is moved there. ■ Continued on Page 2 R Dinesh Trivedi, railway minister studied the railways’ affairs — the Sam Pitroda committee and the Anil Kakodkar committee — said the world’s third-largest rail network would need R9 lakh crore to modernise, expand and upgrade safety Over 100 pro. jects, including partnerships withprivatefirms,arestalled for want of resources and poor project planning. At its apex levels, realisation has dawned that it’s time railways is transformed into a commercial enterprise while fulfilling social obligations. Trivedi, a pilot by qualification, must steer the railways to good health without support from his predecessor and party chief Mamata Banerjee. The West Bengal chief minister, known for her uncompromising ways, vetoed any move to raise passenger fares, which now account for less than a third of revenue. What could come in handy for Trivedi is the recent hike in freight rates, which is expected to generate additional receipts of R20,000 crore a year. ■ Continued on Page 2
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