To the common man, Human Resource Mangement (HRM) involves responsibility for attraction, selection, training, assessment, and rewarding of employees. Management Guru David Olson Ulrich lists the functions of HR as aligning HR and business strategy, re-engineering organisation processes, listening and responding to employees, and managing transformation and change. But what makes the HR leaders tick? In a new series on HR practitioners, Businessworld.in brings to readers interviews with HR heads of India Inc. We start the series with Rajeev Bhadauria, Group HR Head at Jindal Steel & Power Ltd (JSPL). A career HR professional, Bhadauria believes more in being systemic rather than merely systematic. He also thinks his best is yet to come.What made you choose HR as a profession? I was interested in the human dynamics at the workplace and the issues underpinning areas like productivity, motivation and development. This coupled with the ability to relate with and to influence people inspired me to take up Human Resources as a career option.What has been the biggest achievement of your career? The biggest and the best I do not measure. My scale of evaluation is based not on the ‘big size’ but more importantly on the compelling ‘impact’. As such, there could have been many and many near misses as well. Seamlessly integrate different verticals and systemise things – I believe more in being systemic rather than merely systematic. The best anyways is yet to come.What have been the primary traits/qualities that have helped you attain your present position?Being fair and firm with people, good listening skills, able to see things from a macro perspective and yet not lose sight of the micro. Willing to let go off my ideas and thoughts and not be a prisoner of my own views. Ability to change and keep on changing. Above all being compassionate and empathetic with people.What are the challenges you are facing in your organisation? We are evolving and yet have been hugely successful. Continual change and getting the organisation ready for the next big leap is the challenge today. Continually working towards creating a modern, forward looking and progressive organisation and making it future proof is the obvious challenge in the dynamic world today. What are the steps a company should take to develop and motivate future leaders? Be able to 'walk The talk' as far as talent is concerned. Look at a number of steps like Stretch, Support and Sustain our High Potential employees. Identify talent early and work with them in order to groom them for more challenging assignments. Ring fence the HIPOs in the organization – may sound tautological but prepare them for ‘future’ that is with a paradigm shift rather than a linear extrapolative mind set.The future competencies involve dealing with ambiguity and uncertainty would be of very different kind. Agility, that is being nimble footed and be ready to adapt, upgrade, modify and change would be the real competencies to be developed in future leaders. They should have, amongst others, heuristic capabilities to fathom the future that has yet to come. In our organisation, we have initiated a process of encouraging innovation and entrepeneurship in a big way. We have launched the LEAD (Leadership Exploration and Development) programme in July 2012, targeting a batch of 200 current leaders initially. The programme will deliver on two key fronts, individual development wherein each participant is mentored and coached to develop both his/her professional and personal goals, and to deliver value driving overall businesses excellence.What is your rate of attrition? How do you prevent it? We look at attrition slightly differently. Some attrition is always good as it helps bring some fresh blood. Our focus is on the regretted losses. Our attrition is within single digits and I would say it is healthy. We have a number of programmes aimed at ensuring the engagement of our people such that they would look forward to come to work every morning.How do you retain talent in your company? A slew of measures, primary being : ensuring stretch and challenging assignments for our people, ensuring that all our employees are contemporary, as you need the bulwark of the organization to carry a huge load and not only the top 5 to 10 per cent of the talent. The ideas is to move from looking at employee satisfaction to employee engagement – from motivating to inspiring them. It is inspiration ‘from within’ which will stay ‘from without’ – without any external props. The idea is to move them from being programmed thinking managers to being business leaders with the right perspective.What sets your company apart from other companies as far as work culture goes?We are progressive and do invest in technology as well as an organization which is deep rooted in our Indianness. A great attachment to our Value system and ensuring that people do live by them. And this is something that we have reinforced over the years. We have an open culture where people have easy access to seniors in the organisation. Across the JSPL group, we have started a programme to make one and all understand the organisational values, internalise them and through a unique process of appropriate reward and recognition mechanisms to actualise the same. The LSIP (Large Scale Interactive Process) mode of enabling this with the acronym of ‘POSSIBL’ which with the addition of the word ‘E’ (Energy, Enthusiasm, Engagement and Exuberance of employees) makes it into ‘POSSIBLE’ – leading to the mantra called ‘everything is possible’. The obvious outcome is a feeling in all employees that there are no problems in life ONLY CHALLENGES – everything is possible. It emancipates us from limitation and inhibition of our own makings.What is the biggest challenge you face when selecting people? Getting the right fit despite having so many in the employment market. There is a war for good talent and it will only get more intense.How do you track employees' satisfaction or dissatisfaction in your company? We do have organizational health surveys which give us an indication, followed by Action Plans which are reviewed with rigour. How important is HR to the bottom line of a company? Our chairman firmly believes that with technology having reached a relative plateau, the only differentiator that we have is our Human Resources – their energy, enthusiasm and engagement. This is vindicated by the fact that we have been ahead of all the targets that we have set for ourselves in setting up our various plants and projects. This would not have been possible without HR being in the drivers’ seat. The parameters of measurement of course would be more of quality rather than quantity alone. How has the downturn affected HR?Mercifully we have been growing even when others have been talking/experiencing of a slowdown. In fact, we have been hiring during this period too and hence I can say that it has positively impacted us. It is during these times that we invest in our people in order to be ready for the boom times.How should HR be integrated with the core line of business?In one word it should be “integrated”. If you do not understand your core business or the value chain of your business you will not be able to contribute to the business. Our HR managers should have a deep understanding of the business and be able to talk the language of the business.A recent survey has questioned HR's actual contribution in an organisation. Would you like to comment on it with particular reference to your organisation? Well, we have evolved and today we have moved up in our contribution to the business. We have been working as partners with the business as we have been able to contribute to the overall productivity of the business by ensuring the right metrics are in place.If you could change three things about HR practices, what would they be?Give up legacy immediately – not all of it, but those that are no longer relevant. Better understanding of finance in HR, ability to change at a faster pace. (As told to Poonam Kumar)
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Companies in India might be rushing in to tap the e-shopping market, but a lot has to be done to encourage consumer and see more transactions. According to Deloitte’s State of the Media Democracy Survey – India 2012 (the Survey), purchasing products is the least online activity done by those surveyed with only 15 per cent saying they shop online. The survey shows that combining online and offline research before deciding what/ where to purchase is important for the majority of consumers. Interestingly, majority of consumers visited websites after watching ads in televisions, newspapers, magazines, or even billboards. And undoubtedly, television is still the reigning emperor and has the most perceived advertising persuasiveness across all age groups.The Internet boom in India continues its growth run. A large majority of consumers, 72 per cent on an average, use search engines on a daily basis. This has been an amazing change compared with the 2009 Survey where only 17 per cent used search engines. Other top activities include emailing (60 per cent) and instant messaging with friends/family (58 per cent). Email is still the most commonly used format for sharing content with others but is particularly low among Millennials, as sharing via social network is their preferred medium. Consumers are actively using the Internet to learn of new products, decide which to buy, and importantly, which not to buy. Millennials are most actively using the Internet to recommend products to others.The second edition of the Survey, commissioned by Deloitte, employed an online methodology among 2006 consumers across all geographies and age groups.It was focused on four generations and five distinct age groups between the ages of 14 and 75. The survey provides a generational ‘reality check’ and a glimpse on consumer preferences, interaction with technology, purchasing trends, response to advertising and a peek into future preferences.As expected Younger consumers are far more comfortable using advanced technologies. They are also more likely to consume media in new formats. For example, nine-in-ten Millennials are using their smartphone as an entertainment device, and a similar proportion say their laptop/desktop PC is more of an entertainment device than their televisionTelevision remains the most common way to consume video, TV content and film, followed by the Internet. However, the proportion of consumers multitasking while watching television is substantial, with the most common activities being emailing, reading, and talking over phone. Television (along with newspapers) is rated as the strongest medium for advertising, with two-thirds saying it’s among their top influences on their buying decisions. About 60 per cent Millennials and 69 per cent Boomers are influenced by ads on TV. Newspapers are a close second, driven by the older age groups (74 per cent of Boomers). The vast majority of consumers continue to read magazines, However, affinity for magazines is considerably lower than TV or newspapers, and they’re regarded as much less influential with regard to advertising.As for magazines – overall, a similar proportion of consumers have read a magazine in the past six months, and household magazine subscriptions are fairly common. However, affinity for magazines is considerable lower than TV or newspapers, and they’re regarded as much less influential with regard to advertisingTrailing Millennials lead the pack everywhere and are the most engaged in a number of media topics, including music, social networking, television, websites, movies, books, apps, videogames and virtual worlds. Conversations about social networking sites and websites have gained tremendously compared with 2009 Survey where the range was 3-4 per cent compared with 45-47 per cent now. Interestingly, newspapers (53 per cent) are the most talked about media topic among consumers, followed by music (47 per cent) and social networking sites (47 per cent) and television shows (46 per cent).Among devices, cellphones/smartphones (82 per cent), desktop (74 per cent), laptop (68 per cent), and digital cameras (61 per cent) are the most commonly owned, while laptops, desktops, and flat panel TV sets also remain the most-valued products. Tablets join the ranks of most valued products, despite low ownership levels. Overall, consumers show a strong interest in convergence of television, internet, video and several contents. The expectation is for being able to access information according to preference anywhere-anytime on their favorite device.
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Who is leading the world now? Until a few years this question was easy to answer. US. EU. China. Any or all of these answers would be deemed correct, even if unacceptable. Today all and none of these answers seem even correct.None of these economic giants are in a position to lead the world. Sure, they are important enough to influence the direction and quality of growth. All of them are not just too weak and beset with their own issues, but they are actually creating problems for the rest of the world.So is anyone really in charge?This question gains importance especially since the outlook for 2013 is not much brighter than the previous years. Some level of uncertainty is reduced with new leadership in China and US. But many troubling trends have been predicted by the members of the Global Agenda Council of the World Economic Forum. The survey can be read here. http://reports.weforum.org/global-agenda-survey-2012/.These members are about 1,000 leaders of civil society, government, media, industry and academia. Divided in groups that cover issues, industries and regions, the network of the councils met for the annual summit in Dubai last week.Not surprisingly issues of climate change, unemployment and inequality are not in the top five concerns. These important issues have been overtaken by issues that are more urgent. The stumbling Eurozone is the biggest concern. Related themes of unstable global economy, global power shifts and scarcity of resources are top worries. The only positive theme is the digital and communications revolution.Unless these worries are addressed and resolved the deeper and long term issues of sustainability and inequality will remain neglected.An interesting aspect of the survey was sifting hype from substance. The council members felt that importance and impact of some issues was overestimated. These include shift towards sustainable energy, rise of social gaming and even the rise in extremism. They felt that a lot of attention was being to these issues while the real problems remained inadequately addressed.The issues that have been underestimated include growing income disparity, increased resource scarcity and cyber risk. The first of these issues arise from population growth and increased per capita consumption of resources. The rich countries club Organisation for Economic Cooperation and Development (OECD) admits that disparity has widened in the past two years. The average income of richest 10 per cent is nine times that of the poorest 10 per cent.To return to the original question now. Who will then address these issues and work towards a solution?The existing mechanism of global governance has lost a lot of credibility. The World Bank Group, the UN and other institutions like WTO seem to be redundant or out of touch with the new reality. More importantly, they are run by US and EU who no longer can claim superiority in matters of world management. Also, the US and EU steadfastly refuse to democratise these institutions. They continue to be run them as fiefdoms. As a result, the newly confident emerging economies are not ready to accept all the solutions offered by these institutions. Without a say in global affairs countries in Africa and Asia will not accept the direction decided by an outdated framework of global governance.BRICS countries feel they don’t need lessons in economic and social management from those responsible for the financial crash and Eurozone crisis.The Group of 20 or G20 was created to create a more inclusive and egalitarian framework for addressing global concerns. But G20 remains more reactive than proactive. It still does not have the statutory standing to drive change.What happens now? The problems have been clearly identified. The solutions can be found. The question of who will get the world together to address these issues remains. The answer to this question will decide the future of global growth and development.(Pranjal Sharma is a senior business writer. He can be contacted at pranjalx@gmail.com)
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Decades after politics divided countries, economics is bringing them together. Like Pakistan and India, former British colonies in East Africa are working hard at economic integration. The last few months saw a transformative change in India and Pakistan's economic relations. After the British left, the two countries were left squabbling and warring. Now they plan to make money together.A similar change is sweeping through eastern Africa. Uganda, Kenya and Tanzania emerged from British rule in the early '60s. Tanzania became independent in 1961, Uganda in 1962 and Kenya in 1963. Under the British control, these countries operated as East Africa and had deep economic ties fostered by imperial powers. So much so that the East African Currency Board managed a common currency. It was linked to the British currency.For about a decade after independence, the three countries maintained the economic integration of East Africa. But the unity of the east African countries began to disintegrate from the '70s. After Idi Amin came to power in Uganda in 1971, the relations between the three countries deteriorated.Over the next few years, the three countries developed into three difference economies. Uganda became a dictatorship with all business decided by one leader. Amin threw out the Asian trading community that was integral to the economy. Tanzania turned towards socialism as the influence of USSR grew. Only Kenya remained an open market economy.After decades of decline and slow growth, Uganda and Tanzania are back on the path of economic transformation.East Africa is stronger, bigger and better organised. The East African Community was formed in 2000 and later Rwanda and Burundi also became members.The integration of the region into a strong economic entity has picked up a strong momentum now. Uganda is celebrating 50 years of freedom next week and all debates are about growth and job creation. A strong and vocal civil society is forcing anti-corruption measures.More than divisive politics, it is inclusive economics that is driving change. "Economic integration of east Africa is inevitable," Cris Rwakasiisi, Senior Presidential Advisor, tells me in Kampala. "This region has a history of working as an single economic entity. And now the leaders realise that there is a future too in economic integration."India has a great role to play in the economic integration. The Chinese are busy offering easy credit to access the mineral resources of East Africa. India can make its presence felt by sharing knowledge and investing in skill creation.Indian traders and artisans have been coming to East Africa for over a century. Those linkages can be developed further to boost the economic growth of the region.After all, India is also re-discovering the pleasures of doing business with neighbours. (Pranjal Sharma is a senior business writer. He can be contacted at pranjalx@gmail.com)
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What makes a person effective at workplace? This question has tormented humanity for an eternity. Thankfully, advances in management research, especially in understanding role of intelligence and personality, over the last two decades throw some light on this issue. What does effectiveness mean? For people at workplace, this can be seen as either a) short-term job performance or b) long-term success in a chosen career. It is important to understand that success can be real or perceived achievements that have resulted due to one’s own work experiences. Real achievements are generally seen from an outsider perspective. For example, income, occupational status, employability etc. In contrast, the perceived achievements are internal to the person. Job satisfaction is probably the most important intrinsic measure of achievement. In a research study that tracked an entire cohort of people in US across their lifespan, from early childhood to retirement, researchers explored what predicts career success. Career success was defined as intrinsic to the person (job satisfaction) and extrinsic (income and occupational success). The big takeaway was that cognitive intelligence (often referred to as IQ) is the single most important predictor of external success. After controlling for intelligence, or amongst people having similar intelligence level, personality played a crucial role in explaining career success. First things first! The importance of intelligence has been related to almost all outcomes in life (career, school). If intelligence defines career success, are organisations proactively choosing the right employees? The short answer is yes. How is intelligence measured? Multiple tests and techniques exist! However, intelligence is typically measured by the various entrance tests, grades in school, and the entrance exams and so on. Some of these tests are more accurate than others in predicting intelligence in much the same way as some thermometers are more accurate than others in measuring the temperature. What is important is to realize that these tests do attempt to capture the “true” intelligence level of an individual. Second, let’s focus on the personality dimensions that are crucial for success. Evidence suggests that all the personality dimensions can be classified under an umbrella typology of five-factor model also known as “Big-five”. This model has been replicated across various cultures, has a genetic basis and remains fairly stable over time. In short, these five personality labels are conscientiousness, extraversion, agreeableness, neuroticism, and openness to experience. Conscientiousness is associated with one’s self-control and need for dependability, achievement and planning. Not surprising, empirical evidence strongly supports the notion that your best performers at workplace are highly conscientiousness. Neuroticism (or its opposite emotional stability) is related to two interrelated factors: one dealing with anxiety (e.g. prone to stress, instability), and other with one’s well-being (e.g. depression, and personal insecurity). Extraverts are sociable, more outgoing and active. Agreeable people are cooperative and likeable as they are easy to get along. Finally, openness to experience denotes a person of intellect and unconventionality (e.g. imaginative, nonconforming). In the study mentioned above, conscientiousness predicted both intrinsic and extrinsic career success while neuroticism negatively predicted extrinsic success. Given that your intelligence and personality gives you a clue as to whether you have the raw material to succeed in the workplace, can you really change them? Evidence suggests they are quite stable. If you do not have the “correct” personality, do not despair. For those who are going into the job market, you should think about a career that will mesh well with your personality. For those who are already in your job, do not worry. You can take proactive “intervention” to improve your chances to survive and succeed in the workplace. If you procrastinate a lot and are unplanned, it is time to start planning a bit. If you fit the description of a highly neurotic person, can you do something to reduce some stress? Plan ahead to reduce anxiety.What do we know? Intelligence, conscientiousness, and to a lesser extent neuroticism, are valid predictors of job performance across all categories of job. Other three big three factors do predict success in specific occupations. For example, extraversion is considered helpful in managerial occupations especially those focused on sales. Agreeableness predicts teamwork.In order to be successful at workplace, you should capitalise on your innate personality and intelligence. If you are gifted, make the most of it. If you are not naturally gifted, don’t give up. All you need is a plan in place to overcome obstacles and you can be confident of a great career in whatever you choose to do! (The author is assistant professor - organizational behaviour, Indian School of Business)
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Steel Authority of India’s board, in its 40th annual general meeting held on 21st September, okayed the enabling approvals needed for the buyback of shares. The buyback route was a move sought by the government as an alternative to disinvestment which is part of its plans for raising up to Rs 40,000 crore from cash-rich PSUs. Through this method the PSU can purchase about 5 per cent of shares held by the government. The government currently holds 85.82 per cent in SAIL which has cash and bank balances Rs 6,415.70 crore (as on 31st March 2012). At a current market price of Rs 92.55, the government would earn about Rs 1,640 crore. The buyback however, has received a lukewarm response from most PSUs. And though SAIL’s board may have cleared the proposal, they are not ready to implement it yet. Chairman C. S Verma said they would review the market conditions before commenting on a probable date for the buyback. In terms of financials, SAIL reported the highest ever turnover of Rs 50,348 crore in 2011-12. Its profit, however, fell by 27 per cent compared to 2010-11. Profit before tax is currently Rs 3,543 crore while profit after tax stood at Rs 5,151 crore. This, Verma says, is largely due to the depreciation of rupee against the dollar as well as a rise in coking coal prices. The company lost Rs 900 crore due to the decline in dollar-rupee parity. Coking coal prices have gone up from average $213 during 2010-11 to $288 per million tonne during 2011-12. But with decreasing demand from economies like China, coking coal prices are expected to soften over the year. Steel prices too, have been on a downward trend. Globally, prices of long products decreased from $655 per tonne to $608 per tonne since April 2012. Flat product prices decreased from $640 per tonne to $548 per tonne. Domestic prices of flat products decreased by Rs 3,500 per tonne to Rs 35,000 per tonne. Prices of long products prices fell by Rs. 3400 per tonne to Rs 44,000 per tonne. Verma however, is optimistic about the future. “Whatever adverse conditions could have happened, have happened. We have made all necessary provisions (to arrest the decline in profits). The worst is over,” he said. Among the factors he believes will buoy India’s steel industry is the demand which has gone up by 6.9 per cent between April and August 2012. “Ultimately, India is going to be the demand centre... They (China and developed economies) are all saturated,” said Verma. India’s per capita consumption per annum stands at just 55 kg compared to the world average of 200 kg. Our production in August 2012 grew by 2.6 per cent whereas the global figure was minus 1.0 per cent. The chairman will leave on 22nd September for a week-long trip to US to scout for coal assets. He will be accompanied by the secretary of steel DRS Chaudhary He did not however comment on the specifics only saying that the mines would include those in Virginia. This trip is part of the International Coal Ventures Pvt Limited (ICVL) agenda. ICVL was formed in 2009 as a joint venture between Coal India, SAIL, RINL, NMDC and NTPC. Its aim was to acquire 500 million tonnes of overseas coal assets by 2020. The joint venture is yet to score ownership of a single coal block abroad.
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Amid a plunging Indian economy, many economists and academicians believe that a second generation policy reforms can only save the dipping economy. While recognising the importance of reforms, the Government of India only recently has shown the political will to push things through and launch 'big-ticket’ reforms. The reforms including allowing FDIin multi-brand retail, aviation, and broadcast sectors and disinvestment in four PSUs mark a complete shift from government’s dilly-dallying on the reforms front.Coming in a backdrop of scams, policy paralysis, high inflation, plunging growth, surging budget deficit, and credit downgrade risk, the reforms offer a ray of hope to boost investments, employment, and growth in the Indian economy by reviving investors’ sentiment and attracting foreign investments.The Indian airline sector comprises six scheduled airlines –IndiGo, Jet, SpiceJet, Air India, GoAir and Kingfisher. The sector is currently reeling under high taxes, rising fuel prices and high airport charges. All airlines except IndiGo declared losses in the year ended March 2012.In a landmark decision, the Government of India has set aside its earlier policy of not allowing foreign airlines to have any stakes in the Indian airlines, has now decided to allow foreign airlines to invest up to 49 per cent in Indian carriers. This decision may result in foreign airlines taking stakes in Indian carriers or setting up new airlines in collaboration with Indian partners.The beneficiary Indian carriers are expected to get access to capital, global connectivity, technology, management and operational best practices. Increased competition may lead to better offerings, greater efficiency, cheaper airfares and more choice to the passengers.According to KPMG, the long-term outlook of India’s aviation market is quite positive. Its growing economy, large middle class and low air travel penetration indicate a high growth potential. Emirates is looking at a 52 per cent increase in the number of weekly seats on the India sector. Lufthansa has just inked a strategic alliance with Jet Airways which allows each airline to sell seats on the other’s network. Qatar Airways, Etihad, Singapore Airlines and AirAsia have also indicated their expansion plans for India.Allowing FDI for global airlines may lead to significant action over the next 12-18 months.•Domestic airlines like SpiceJet and GoAir with relatively good financial and operational performance are likely to attract a lot of attention. In case of Kingfisher, though the valuations are low, its high debt, accumulated losses and low asset base (fleet size is down from 66 to around 14) are likely to be a dampener. Jet and IndiGo have high foreign holding already and their promoters have not indicated any intention to divest their stake at the moment. Air India is currently out of bounds for global investors.However, there are risks associated with FDI in aviation as well.FDI by foreign airlines would not be through the automatic route. Each application would be scrutinised by security agencies and relevant government ministries. The chairman and two-third of the board of directors in the joint venture need to be Indians.There are voices of dissent from certain political parties and Indian carriers that global airlines, withtheir deep financial muscle, may indulge in predatory undercutting of airfares. Further, issues of national security and anti-competition behavior may be used to scuttle entry for certain airlines.Most of these issues are likely to be clarified when the government lays down the detailed rules and procedures for approving FDI applications.The Way ForwardInterested global airlines need to develop their India strategy and commence discussions with Indian carriers at the earliest. Those who plan to enter India by way of a new start-up may need to assess the risks involved and look for suitable joint venture partners. Airlines can also limit their exposure by taking a non-scheduled operator licence instead. There are many strategic options.Domestic airlines may need to get their documentation and data-room in order and be ready for multiple enquiries from interested parties. They may need to evaluate the offers from various interested parties and take a final call. They have time on their hands and can drive a good bargain.
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The much talked about 2G mobile phone spectrum auction ended in a damp squib on 14 November with half of the airwaves on offer remaining unsold and government getting just about one-third of the targeted revenue. The tepid response to the auction will also mean that the government will find it difficult to meet the revised fiscal deficit target of 5.3 per cent of GDP. The scant interest in the 2G auction was attributed to high base price. The spectacular flop of the 2G spectrum auction also raises questions over the presumptive loss of Rs 1.76 lakh crore cited by the Comptroller and Auditor General of India (CAG) in 2010 for giving away spectrum at rates fixed in 2001. The 2012 2G auction rates were fixed in accordance with the price garnered in the 3G auction as the benchmark. According to preliminary estimates, leave aside the Rs 40,000-crore target, the government received bids worth a "much-less" than Rs 10,000 crore (Rs 9,800 crore) in an auction that ended in two days, a far cry from the 35-day bidding for the 3G spectrum in 2010 that got it Rs 67,719 crore.Further, as the government has promised to refund the licence free paid in 2008, the net gain to the exchequer may be almost nil. The government was targeting Rs 28,000 crore from the sale of 2G spectrum in the GSM band. The CDMA sale was over before it started as the two contenders withdrew form the auction. Videocon and Idea won spectrum in 7 circles while Telenor got spectrum in 4 circles. Airtel and Vodafone won spectrum in one circle each. None of the five companies in fray bid for a pan-India spectrum for which the reserve price was set at Rs 14,000 crore for 5 Mhz of airwaves. Metro cities of Delhi and Mumbai, which accounted for 40 per cent of the base price of Rs 14,000 crore for 5 MHz of 2G spectrum, drew no bids at all. Bids in most of the circles were around the base price with the exception of Uttar Pradesh East and West besides Bihar. In fact, the auction got extended into the second day only on back of interest in Bihar circle. Bihar Drives DemandEarlier, the second day of auction had started at 0900 hours on 14 November on the back of demand for spectrum in the Bihar telelcom circle. As per the data made public, the last round of Day 1 (on November 12) saw bids for spectrum only in Bihar circle. Or else it would have ended on 12 November itself. Five telecom operators -- Bharti Airtel, Vodafone, Telenor-promoted Telewings, Videocon and Idea Cellular -- had applied for participating in the auctions. The bidding for spectrum in the 1800MHz band was muted on the Day One as expected. At the end of the first day of bidding, seven rounds were completed and the government received bids worth Rs 9,280 crore only. That is less than the amount that a single nationwide operator would need to pay at Rs 14,000 crore as the base price. Of the 176 slots that were on offer, there was demand for only 98 slots. The auction will continue on 14 November. There was fight for spectrum in UP East circle, which has 11 slots (of 1.25MHz each) on offer. Telewings (the new entity of Telenor), Videocon Telecommunications and Idea Cellular are in the fray for spectrum in the circle. New players or companies, whose telecom permits were impacted by Supreme Court judgement that cancelled 122 licences, are required to bid for minimum of four blocks. Existing players can bid for maximum of two blocks. The government has also assured to provide additional blocks of spectrum in all circles, except Delhi and Mumbai, if required by new players or companies for them to qualify in the auction. The government had put on auction a substantial part of the spectrum that was freed from Supreme Court in February this year cancelling 122 mobile permits issued by the then Telecom Minister A Raja to nine telecom players in 2008. (With input from PTI)
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