India shifting from BPO to KPO
Mumbai: India is transiting from being major business process outsourcing (BPO) hub and will emerge as a $17 billion knowledge-outsourcing destination by 2010, states an industry study.

A study released by the Confederation of Indian Industry (CII), says, "India could emerge as a global knowledge process outsourcing (KPO) hub as the business requires specialised knowledge in respective verticals and the country's large number of engineering and technical institutes are geared to address the manpower demand."

Independent reports say that an increasing number of companies in the US and the UK have started migrating complex processes to India. This is happening mainly for two reasons. Firstly, companies who have had a good quality service experience with Indian BPOs are open to increasing their exposure by moving higher-end processes and, secondly, there has been an entry of a host of niche players that are getting into tasks different from the ones that have built the industry.

These players are moving away from doing simple data entry and repetitive tasks, and are focusing on areas that require specific domain skills.

BPOs are moving up the value chain and getting into financial services, equity research, commercial mortgage processing & underwriting, financial statement analysis, and actuarial assistance are emerging as new domains for which processes are being outsourced to India.

For example, BPO companies and their employees need to possess good understanding of the US and UK equities, insurance and real estate market, US GAAP accounting rules and IRS tax laws, etc. These new areas are expected to grow at a compounded annual rate of 46 per cent translating into an opportunity worth $16 billion by 2010.

The CII study India In The New Knowledge Economy estimates that the KPO business is expected to register 46 percent annual growth to reach a staggering $17 billion by 2010.

Pharmaceuticals, biotechnology, and ICT, besides legal support, intellectual property research, design and development for automotive and aerospace industries are some of the areas where India's strength lies.
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India may slap penal duties on US products
New Delhi: Trade ties between the US and India are straining. Now the commerce department is planning to slap penal duties on American goods in retaliation against the Byrd Amendment.

As the World Trade Organisation (WTO) has approved sanctions against the US, which has not yet repealed the Byrd Amendment, the Indian government is identifying products from the US, which can be subjected to additional duties in India.

According to the Byrd Amendment, US government distributes revenues to American companies obtained from anti-dumping duties. The WTO has ruled that the move is not in conformity with norms.

Sources said steel bars, PET films, shrimps, steel wire rope, preserved mushrooms, elastic rubber tape, carbon steel plates, steel pipes & tubes, sulfanilic acid and silico manganese are among the Indian products suffering anti-dumping duties in the US.
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Gail asks AP-based IPPs to look for alternate fuel
Hyderabad: Gas Authority of India (GAIL) has requested independent power producers (IPPs) in Andhra Pradesh to look for alternative arrangement to supplement the gas supplies in case of any possible shortage of gas availability. Gail is finding it difficult to meet the gas requirement of the existing IPPs in AP.

According to Gail with the decision taken by the ministry of petroleum and natural gas in December 2004, the current availability of 7 mmscmd will be supplied among all consumers with firm allocations in the KG basin area including new IPPs like GVK Industries, Konaseema Power, Gauthami Power and Vemagiri Power.

Gail is also holding talks with the ministry of petroleum and natural gas, ONGC as well as the joint venture operators in Ravva Satellite fields to step up their production till such time the major discoveries in the Krishna-Godavari (KG) basin area materialise, the company further said.
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Power sector shortfall to be lessened by end of 2007
Mumbai: The Indian power sector at present reeling under severe coal shortage, will have an additional production of 40 million tonne (mt) by the end of 2007.

The the state-run National Thermal Power Corporation (NTPC), Damodar Valley Corporation (DVC), West Bengal State Electricity Board (WBSEB), West Bengal Power Development Corporation (WBPDC), Punjab State Electricity Board (PSEB), Karnataka Power Corporation Ltd (KPCL), Chhatisgarh State Electricity Board (CSEB), Jindal and Tenughat Power Company have projected that, they would be able to launch production during July 2005 and December 2007 from the captive mine blocks.

The companies made these projections at a meeting held on Friday with the power secretary RV Shahi.
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Ports to initiate proceedings against debtors
Government departments and public sector companies owe Rs 741 crore, Rs 275 crore and Rs 117 crore to Kolkata Port, Mumbai Port and Jawaharlal Nehru Port Trust (JNPT) respectively, in dues.

Shipping, road transport and highways minister TR Baalu has said that in certain cases legal proceedings have been initiated to recover the dues.

He also said private companies owed Rs 604 crore to Mumbai Port as dues.
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Indian lenders to pay GE-Bechtel $305 m
Mumbai: Indian lenders have agreed to pay GE and Bechtel a sum of $305 million against claims of $460 m towards non-debt, equity and contractual obligations in the Dabhol power project.

Of this amount, Bechtel and its affiliates would get $160 m and nearly $145 m would be paid to GE and its affiliates.

GE and Bechtel would then cooperate with National Thermal Power Corporation (NTPC) and GAIL India on all technical issues for the restart of phase-I and the completion of phase-II.

After the payment, GE and Bechtel would cooperate on the transfer of interests in the now-fallen Dabhol Power Company (DPC) held by Offshore Power Production (OPP) to the special purpose vehicle (SPV) being floated by the Indian lenders, NTPC and GAIL.
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