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Economic Times Weekly News

DIPP against foreign airlines buying stake in Indian carriers

The industry ministry is not in favour of allowing foreign airlines to buy stake in Indian carriers on the ground that the sector is sensitive.

Besides, the view in the Department of Industrial Policy and Promotion (DIPP)is that no other major country permits investment by foreign airlines into their domestic operators.

A section of the domestic airlines industry, facing huge financial crunch, has been demanding opening up the sector to foreign airlines.

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According to the existing policy, while 49 per cent FDI and 100 per cent NRI investment is allowed in domestic airlines, there should not be any direct or indirect participation by any foreign airlines.

Industry sources said that a foreign carrier, with deep pockets, could play havoc with the domestic market by artificially lowering the price of air travel and cut down competition.

Sahara makes $2-bn bid to buy MGM Studio

Sahara India Pariwar, an Indian conglomerate with real estate and media holdings, says it has made a $2-billion bid to buy the debt of struggling Hollywood studio Metro-Goldwyn-Mayer Inc.

The new offer, comes a day after MGM said it had gotten another extension on an agreement to put off interest payments on about $4 billion in debt until October 29.

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The studio has rights to the James Bond franchise and owns half of the upcoming movies based on JRR Tolkien's “The Hobbit”.

It is facing possible bankruptcy but has several suitors, including Spyglass Entertainment, Time Warner Inc and Lions Gate Entertainment Corp.

Motorola hopes to launch tablet computer by early 2011

Mobile phone giant Motorola is looking at launching its tablet computer early next year, as the firm hopes to expand its product line beyond cell phones.

Motorola would not roll out a tablet until the technology is ready.

Apple said in June that it has sold three million of its iPad tablets.

Samsung Electronics unveiled its seven-inch Galaxy Tab in the US market today, while Dell too launched a five-inch tablet.

Green clearance for Vedanta suspended

The National Environment Appellate Authority (NEAA) suspended the environmental clearance given to Vedanta’s mining project in the eco-sensitive Niyamgiri Hill.

It is the home to the primitive Dongria Kondh tribe, in Orissa’s Kalahandi district.

The NEAA had earlier cleared Vedanta on April 28, 2009.

On Thursday, it suspended the clearance questioning the authenticity of the project’s environmental impact assessment (EIA) report.

Latest buzz in the Indian IT sector

India has said 'protectionist tendency" in the United States would deepen recession and delay global economic recovery.

America’s worsening economic climate and incendiary political rhetoric could end up hurting the fortunes of India’s $50-billion outsourcing industry as US firms start avoiding overseas contracts fearing a backlash from skittish politicians.

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