Wipro Technologies, the global IT services business of Wipro Ltd, has signed a Memorandum of Understanding (MoU) to enable innovation in low carbon technologies, including those in IT and IT services with the UK Trade & Investment (UKTI). Wipro said in a release on Friday that the MoU outlines the manner in which UKTI and Wipro will collaborate within the framework of UKTI’s Global Value Chain programme, to identify areas of joint interest. The MoU will also explore ways to promote closer cooperation between business and academia in India and the UK.

The MoU was signed by Wipro chairman Azim Premji and Peter Mandelson, UK’s first secretary of state and secretary of state for business, at the company’s corporate head office in Bangalore on Monday. Mandelson was accompanied by British deputy high commissioner for Karnataka Richard Hyde and a party of UKTI officials.

“I see this kind of collaboration as leading the way in enhancing trade relations between the UK and India in this critical area where we have much to learn from each other,” Mandelson said. Both parties discussed the UK’s emergence as a global hub for low-carbon solutions and an investment destination for technology companies like Wipro. The MoU also envisages various ways in which the collaboration will be taken forward including joint seminars, networking opportunities and innovative uses of digital media and technology, engaging both business and academic stakeholders.

Wipro has a presence in the UK since 1995 and operates from several offices around the country with substantial existing customer base in the energy & utilities, and retail and financial services spaces. It is now investing in developing its public sector business.

Indian companies paying royalty to foreign firms for technology transfer, use of brand name or trademark will no longer require government approval. This is expected to facilitate greater investment and transfer of technology to India.

In a statement issued on Thursday, the department of Industrial Policy and promotion (DIPP) said payments for technology transfer have been put under the automatic route.
However, these payments will be subject to Foreign Exchange Management (Current Account Transactions) Rules. The relaxation follows a government’s decision to this effect in early November. At present, automatic approval was permitted only for foreign technology transfer involving payment of lump-sum fee of US $ 2 million and royalty of 5% on domestic sales and 8% on exports.
In cases where there is no technology transfer involved, royalty up to 2% for exports and 1% for domestic sales is allowed under automatic route on use of trademarks and brand names of the foreign collaborator.

Above these limits, the proposals were screened by an inter-ministerial body called Project Approval Board (PAB), chaired by DIPP secretary.
Companies will no longer have to bother about such payments, allowing them to attract greater investments. Royalty and technology transfer payments are often associated with purchase of machinery, components, raw materials and intermediates. A free regime will allow better sourcing and limits on payments will not become a constraint.

A suitable post-reporting system for technology transfer/collaborations and use of trade mark/ brand name will be notified separately, DIPP said. This will also cover norms relating to the FEMA rules that have to be complied with by the companies sourcing technology. Over 8,000 approvals have been granted for technology collaborations since 1991 to June 2009.

The expansion of the telecom sector was further consolidated with an increase of 175.41 lakh in the number of telecom subscribers during the month of November 2009. As a result, the total number of telephones in the country is 5,432.00 lakh as on 30th November 2009; as compared to 3741.26 lakh as on 30th November 2008.

The Wireless (GSM+CDMA) segment has registered an increase of 176.39 lakh. The Wire-line segment has declined by 0.98 lakh respectively during the month of November 2009.

Tele-density: The overall tele-density improved further to 46.32% in November 2009 as compared to 32.34% as on November 2008.

Growth trend – Circle wise: In the Wireless (GSM+CDMA) segment, only UP (East) telecom circle added more than nineteen lakh subscribers during November 2009.
In the Wire-line segment, only Delhi telecom circles added above ten thousands subscribers during November 2009.
                       
Broaband Connections:The growth of broadband connections improved further and at the end of September 2009, 7.21 lakh broadband connections were provided. Further, the total number of existing ISP licences is 370 at the end of October 2009.
           
Rural Telephony: Under Bharat Nirman Programme, 408 VPTs were provided in the month of October 2009. Thus, out of the targeted 62,302 villages, a total of 60,208 villages have been provided with VPTs till October 2009.