14.12.2006

• Relaxation of foreign flight norms for airlines
• At present domestic airlines need to possess an experience of 5 years of operations to be eligible for taking up flight operations to foreign countries.
• Government is set to relax this requirement to three years.
• Tatas’ Corus acquisition
• The 515 pence a share proposal values Corus at over 7.5 times the operating profit.
• Mittal Steel valued Arcelor at 6 times the operating profit.
• Thus the Tatas’ bid for Corus is much higher than what Mittal paid for the Arcelor deal.
• World’s oldest watch making company
• Vacheron Constantin, set up in 1755 in Switzerland.
• The annual broadband wireless equipment market opportunity in India is pegged at around $4.5 bn by 2012.
• India’s travel market:
• India’s online travel market is placed at $800 mln.
• India’s total travel market (offline and online) is kept at $13.5 bn.
• Info about CRR (Cash Reserve Ratio)
• In June 2006, when the RBI Act was amended, the floor level of bank’s CRR which was kept at 3% was abolished along with the discontinuation of payment of interest on the sums parked with RBI.
• RBI has been paying 3.5% interest on cash balance above 3% and up to 5% -- known as eligible cash balances – w.e.f September 18, 2004.
• India’s diplomatic relations with Israel
• Were established in 1992.
• Our Professor’s (TT Ram Mohan) advice on stock markets
• It is tempting to believe that the Indian stock market will generate comparable returns over the coming decade.
• The returns of the past seven years imply a risk premium of around 17%.
• If we go by the experience worldwide, there is just a 10% chance that the returns will be sustained in the coming decade.
• Gas pricing
• Gas sold under the APM (Administered Pricing Mechanism) is made available at about $3 per mmBtu
• Gas sold by private companies or joint ventures is available in the range $4 to $5 per mmBtu.
• Spot cargoes of LNG are available at $8 to $9 per mmBtu.