VSNL joins MTNL in net tariff war
New Delhi: The two government-owned Internet service providers, the Videsh Sanchar Nigam Ltd and the Mahanagar Telephone Nigam Ltd, are on the  second round of their tariff war. MTNL has announced a 15 per cent across-the-board reduction on its Internet access rates and VSNL feels it is not to be taken for granted. It is coming out with a similar 15 per cent rate cut. Both the ISPs had, in February 1999, brought down their rates in order to be in competition. VSNL’s director (operations) Amitabh Kumar says if MTNL has reduced its tariff, "we will also reduce tariff by 15 per cent". VSNL is expected to announce its price cut shortly. MTNL is to implement its revised tariff from 13 December, after a formal approval by the Telecom Regulatory Authority of India.

Even as the two main ISPs are engaged in price war, analysts say the private ISPs in the field are slated to come out with similar reduced tariff structures. In fact, a new entrant in the field, Dishnet, whose charge for 10-hour access is a low Rs 1,750 against Rs 2,150 chargedby VSNL and MTNL, has already taken the lead.
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Court tells govt to implement telecom policy
New Delhi: The Delhi high court has asked the government to implement the new telecom policy providing for switching over from licence fee regime to the revenue-sharing arrangement by telecom operators. A division bench of the court said the "migration to the new policy should be implemented in full" in a case filed by Delhi Science Forum. The forum contended that the benefits of reduction in tariff were not going down to the consumers despite switching over to the new regime.
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IDBI plan to reduce NPA
Mumbai: Industrial Development Bank of India is intending to insist on its borrowers with substantial outstandings to pledge 51 per cent of their shares with voting rights with the institution. IDBI is under pressure to reduce its non-performing assets and this is one of the ways to pressure borrowers who owe the financial institution large amount of money. IDBI may also set up an asset reconstruction fund to handle the non-performing assets.
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Good response for IDBI bonds
Mumbai: The Rs 1,200-crore Tier-II issue of Industrial Development Bank of India, which opened on 6 December received a subscription of Rs 900 crore on day 1. The issue has been lapped up by investors mainly on account of brand name. Its coupon rate is also relatively attractive. The options available are five year three month, 12.1 per cent bonds and seven year three month 12.3 per cent bonds. Both the bonds have AAA rating from Crisil.
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FIs, banks to form AMC
Mumbai: Financial institutions and banks are coming together to set up what they call an asset management company to make investments in shares of the public sector undertakings. The institutions which are likely to be sponsoring the asset management company are Industrial Development Bank of India, ICICI, Infrastructure Development Finance Company, Unit Trust of India, Life Insurance Corporation, General Insurance Corporation and State Bank of India besides some public sector banks. The company will function like a mutual fund and raise funds from investors against units. The main aim of the company will be to corner a large chunk of the stake the government is proposing to disinvest in the open market.
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