Fundraising

The new political combination at the Centre seems to be favouring Anil Ambani group of companies, which is a clear statement by the stock price movement of the company. The day SP announced its support to UPA led government, the market capitalisation of Anil's holdings in six companies increased by 24% to Rs 1,41,415 crore. That means, he became richer by almost Rs 27,000.

The new political equation at the Centre is making existing GSM players worried at the possibility that a slew of policy measures may be proposed aimed at stifling their growth and to benefit Amar Singh’s friend in CDMA business.

According to media reports, Mr Amar Singh, MP and leader of the Samajwadi Party, had earlier written to the Prime Minister to impose a fee on operators. If this proposal is finalised then companies like Bharti Airtel, Vodafone and Idea Cellular may end up paying out at least Rs 10,000 crore.

3G spectrum allocation policy that recently set differential terms. While for the GSM players it introduced auction route, for CDMA services (RCOM is a leading player), it said players with largest subscriber base would get the scarce spectrum. Only after hue and cry the ministry has now agree to look into this issue again.

Telecom regulator TRAI on Wednesday said the government criteria of subscriber base for allotment of 3G spectrum to CDMA operators like RCOM and Tatas is against the principle of equity.

Media reports also says that the UPA regime is favouring Anil Ambani led Reliance Capital by giving it the mandate to manage Provident Fund, saying the government was paying the "cost" for support it got to win the trust vote last week.

The reported late selection of Reliance Capital as one of the fund managers is an indication of the cost of support to the government. CPI also questioned the rationale for handing over crores of rupees of workers' funds to corporate for speculation in stock markets.

The government had announced on inclusion of three players - ICICI Prudential, HSBC and Reliance Capital - to break the over 50-year-long monopoly of State Bank of India even though Central Board of Trustees had not shortlisted the Anil Ambani group firm for the purpose.

The Cabinet has early last week okayed a proposal which would enable Reliance Power to divert its surplus coal from Singrauli mines in MP allocated for Sasan Ultra-Mega Power Project to its Chitrangi Power project in the same state. As per norm, any surplus coal generated from captive (for power projects) coal blocks becomes a property of the Central Government that then disposes it through its PSU Coal India Limited.

Article Source: ArticlesBase.com - Fiddly Gain of Adag From New Political Combination at Centre