23.07.2007

• I answered two of your shout-box queries in a kind of longish way. Take a look at the answers in today’s Discover It blog here.
• Indo US nuclear deal
• The agreement seems to have been hammered out finally by both the sides.
• The 30 page document that the negotiators have drafted, has to be approved by the Indian and US governments.
• The approval process in India typically will follow this path: It will first be reviewed by the AEC (Atomic Energy Commission). Then it goes to the PM and gets final approval from the Cabinet.
• National Authority to regulate blood collection
• The government has decided to set up a NBTA (National Blood Transfusion Authority) to regulate blood collection and distribution system in the country.
• Exon-Florio Act of the US
• It arms the US government with powers to block acquisition of any American company by a foreign investor. It was there on America’s statute book since 1988.
• Countries like China, Canada, Australia and Thailand also have similar laws to check foreign investments.
• India also is thinking of coming out with a similar enactment. This is contemplated with a view to block takeover if there is threat to national security.
• What is meant by patois?
• The word is used to describe a language considered as nonstandard. Depending upon the instance, it can refer to jargon or slang, as well as to pidgins, creoles, dialects, and/or other forms of native or local speech. In many cases, class distinctions are drawn between those who speak patois and those who speak the standard or dominant language.
• Factoring
• If you want to know what is ‘factoring’ in business, you have an excellent article explaining it in today’s ET. It is published on page 7.
• Factoring is a service whereby the provider, known as the Factor, offers to take up the accounts receivable (collection of the money for goods and services sold) – in the form of invoices raised – on behalf of the seller, for a fee. This frees up the seller to focus on other aspects of his/her business. It becomes particularly important for small and medium businesses who may not have adequate working capital to work with large corporate buyers.
• The problems that ‘factoring’ is encountering right now in India include:
• Absence of clearly defined regulations that recognize factoring.
• The comfort level of buyers is another issue that factors have to contend with.
• Globally factoring is a growing business with a cumulative turnover of 1.3 trillion Euros last year. India’s share in this is very small at 3.6 bn Euros.
• Derivatives
• These are financial instruments whose value is based on another security. Options and futures, for instance, are financial instruments used in derivatives transactions.
• Investment norms for life insurers and non-life insurers in India
• At present, life insurers have to invest 50% of their investible assets in government securities, 15% in infrastructure bonds and similar instruments while holding a discretionary control, subject to conditions, on 35% of the assets.
• General insurers’ discretionary quota stands at 45% of the investible assets.
• There are about 16 companies in the life segment and 15 in the non-life segment in India.
• Energy Conservation Building Code
• This is being made mandatory for all new commercial buildings from the next financial year.
• The power ministry is targeting to bring down power consumption by commercial buildings to below 40% of the current usage. If fully implemented, this could help in saving 1.7 bn units annually.
• The Energy Conservation Act, 2001 which came into force on March 1, 2002 is aimed at making India an efficient user of energy and the ECBC under the Act is aimed at achieving total energy efficiency in buildings and establishments.
• The code is applicable to buildings with demand greater than 500 KW.
• The overall share of the commercial sector in electricity consumption is about 7 to 8%. It has been growing at a rate of about 12% over the last few years.
• Some challenges being faced by India include:
• Though it is witnessing a massive economic upturn in recent times, the country with 17% of the world’s population, still accounts for only 1.8% of the world’s income.
• Of its over 1 bn inhabitants, approximately 300 to 350 mn are below the poverty line, 75% of them in rural areas.
• Agriculture still employs over 60% of the population, but accounts for only 22.6% of GDP.
• Due to heavy and increasing population burden on the land, land holdings in most parts of the country are small and fragmented, making agricultural practices economically unviable.
• F1 racing: European Grand Prix
• Watched this race on TV? It was really inspiring. Actually F1 races will present to the layman a picture of high-tech and well-prepared teams making lot of brouhaha over something that appears a bit innocuous. When the gizmo (the car) is high-tech, when it has no tethers on fuel consumption and when it is backed by top-class mechanics to look into its health continuously, what is the big deal about driving such a vehicle fast? At least this is what I thought, until yesterday, when I had a chance to watch this particular race. It was all raining and the visibility was so poor that it is a miracle that the 13 cars that remained in the race survived any crash at all.
• In the end anyway what matters is winning. And for us remembering who won the race. It was Fernando Alonso of McLaren team that won the race.
• The race was held at Nurburgring.