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Rajasthan government steps in by buying large quantities of
onions to boost rates
Wednesday, June 30, 2004. Jaipur : A bumper harvest of the onion crop in Rajasthan has led to a huge fall in prices and eaten into the farmers' profits. After good winter rains last year, Rajasthan is seeing a bumper onion crop this season. But the glut has also led to a sharp fall in prices. Onions, which were sold for Rs 350 to 400 a quintal last year, are now priced between Rs 200 and Rs 250 a quintal. Unlike other crops, farmers say onions cannot be stored for a long time because of which they are forced to go in for a distress sale. The Rajasthan government has stepped in by buying large quantities of onions to boost rates. But the state's intervention has not really stemmed the crisis in the market.
Ashok Leyland plans to set up multi-million dollar plant in Iran
New Delhi : The Hinduja Group flagship firm, Ashok Leyland, is planning to set up a multi-million dollar plant in Iran for assembling CNG trucks and buses. The Ashok Leyland is talking to state-run gas firm GAIL (India) Ltd., and Iranian government for a joint venture for the project which would also involve laying pipelines from gas field to consumption centres and setting up CNG fueling stations. A senior official with Ashok Leyland said : "We will put up an assembling plant near Tehran while GAIL would assist in setting up the CNG distribution network. The Iranian national company will supply natural gas, which will be piped to various cities where it will be compressed and dispensed to automobiles."
SBI will be opening its third branch in Bangladesh shortly
New Delhi : The SBI (State Bank of India) will be opening its third branch in Bangladesh shortly. The Chairman of SBI, A K Purwar, said in the bank's annual report for 2003-04, as part of its business expansion strategy, the bank plans to focus on overseas expansion and infrastructure lending in the current fiscal. The SBI already has presence in Africa and other Asian countries. During 2003-04, the bank started its operations in Chittagong, Bangladesh, Port Elizabeth and Capetown in South Africa. In a bid to restructure its US operations, SBI wound up its downtown service branch in New York and relocated its activities with the New York branch. The banks net profit from overseas operation rose by 21.87 per cent to Rs 156.85 crore (Rs 1.57 billion) in 2003-04 against Rs 128.7 crore (Rs 1.29 billion) in the previous fiscal.
Ministry not in favour of any controls, says Steel Minister
New Delhi : The Steel Minister, Ram Vilas Paswan, allayed fears of the steel industry about a possible regulatory authority. He said the Ministry was not in favour of any controls. Clarifying that the proposal for setting up a regulatory authority for the steel industry was not the idea of his Ministry, Paswan told that the issue was discussed at a recent meeting of the National Steel Consumers Council where consumers forwarded a suggestion to this effect. Prices were determined by national and international market forces, he pointed out. However, Paswan said that consumers' interest was supreme and all steps would be taken to ensure them.
India and US sign letter of intent to enhance cooperation in
biotechnology
New Delhi : India and the US signed a letter of intent to enhance cooperation in research and development in agricultural biotechnology. Under the agreement, the DBT and the USAID will collaborate in creating new partnerships that bring together public and private institutions in the two countries for pursuing projects in agricultural biotechnology. The scope of the pact includes technology development, technology diffusion, bio-safety and related policy activities. The process would involve joint workshops, conferences, scientific exchanges and training of scientists. The US Ambassador, David C Mulford, and the Secretary, Department of Biotechnology (DBT), M K Bhan, signed the document in the presence of the Union Science and Technology Minister, Kapil Sibal.
Government under pressure from Left parties to raise EPF to
12% from existing 9.5%
New Delhi : The Government will decide today whether to change the rate of return given to 83 million subscribers of the EPF (Employees Provident Fund). The government is under pressure from the Left parties to raise the EPF to 12 per cent from the existing 9.5 per cent. However, the government may have to cut the rates to a more realistic 8 per cent. Or to balance conflicting interests, the government may just leave the rates unchanged. The EPF is billed as the safest savings instrument for the Indian working class and its rate of return has always been a politically-sensitive issue.
Prototype plant in Tamil Nadu producing bio-diesel
Sivakasi : A prototype plant in Sivakasi in Tamil Nadu is producing FAME, which is commonly called bio-diesel. Based on a test conducted at IIT Chennai, the Tamil Nadu government has now cleared this for commercial production. With an investment of Rs 2 crore, the production will soon rise to 5,000 litres per day. Commonly available non-edible oil seeds of rubber, neem and mahua are being used to produce bio-diesel. By adding methanol and through a series of esterification process, bio-diesel is produced. R Vijaykanth, Alagarh industries, said : "By this time, we can blend it with normal petrol, diesel. In the future, we are going to increase the quality to match the American standards."
Cement prices rise by 14.78% in May in national capital region
New Delhi : The cement prices rose by 14.78 per cent in May in the national capital region. The cement price was at Rs 130-132 per bag in May 2004 compared to Rs 114-115 in the year-ago period. The retail price, however, stood at Rs 150-152 as against the wholesale price of Rs 143. The freight component to retail price was at Rs 5-6 per bag. Procurement price from the railway yard at Ghaziabad stood at Rs 130 for Shree Cement, Rs 134 for Birla Uttam and ACC at Rs 132 last month.
Security and terrorism weigh heavily on minds of foreign investors
New Delhi : India seems to have become a more attractive investment destination this year. However security and terrorism weigh heavily on the minds of foreign investors. These are the findings of a survey carried out by the FICCI (Federation of Indian Chambers of Commerce and Industry), which describes foreign investors as being "extremely bullish" on India as an FDI destination. Infrastructure facilities, barring telecom, are also being described as "bad" by them.
US State of Indiana pays nearly $1 mn to a subsidiary of Tata
India
Washington : The US State of Indiana has paid a whopping amount of nearly one million dollars to a subsidiary of Tata India for cancellation of a controversial contract in November last year despite eight weeks of work done by the Indian firm. The company had originally sought $1.74 million for eight weeks of work. A check of $999,587 was sent by the state administration to Tata America International Corp., the US-based subsidiary of Tata India that had won the $15.2 million Department of Workforce Development Contract last year to upgrade State computer processing unemployment claims.
Government working on integrating Budget and Exim policies
New Delhi : Government is working on integrating Budget and Exim policies to boost exports from targeted sectors. The Commerce and Industry Minister, Kamal Nath, met the Finance Minister, P Chidambaram. The Commerce and Industry Minister said after the meeting : "We had discussions on Budget and Exim Policy proposals to see that both are well integrated so that exports from targeted sectors get a boost." He said : "Heads of export organisations had met me as well as the Finance Minister. We have to see what leverage can be rightly provided to enable export growth."
Sikri underscores need for resolving para-tariff and non-tariff
barriers
Dhaka : The Indian High Commissioner to Bangladesh, Veena Sikri, has underscored the need for resolving para-tariff and non-tariff barriers with a view to promoting Indo-Bangla bilateral trade. Sikri said the "so-called" para-tariff or non-tariff barriers were often based on "nothing but misperceptions, bureaucratic delays and inept handling of problems as and when they arise. She said : "It is crucially important that these issues be resolved quickly and amicably, through regular and frequent dialogue between our respective Commerce Ministries at all levels."
Cabinet Committee of Economic Affairs clears $200 million
OVL's Sudan pipeline project
New Delhi : The Cabinet Committee on Economic Affairs today cleared a $200 million investment by OVL (ONGC Videsh Limited), the overseas subsidiary of the Oil and Natural Gas Corporation (ONGC), for laying an oil pipeline in Sudan in exchange for supplies of crude oil. The agreement between OVL and the Sudan Government is expected to be signed today. The contract for laying the 741 km-long petroleum product pipeline and upgrading of the Khartoum refinery has been given to OVL on a nomination basis by the Sudan Government.
Reliance Industries Ltd finds gas off Orissa coast in Bay
of Bengal
Mumbai : Reliance Industries Ltd has struck gas off Orissa coast in Bay of Bengal. Although Reliance Industries Ltd is planning to invest an additional Rs 2,500 crore in oil exploration and production over next 24-30 months. The Chairman and Managing Director of Reliance Industries Ltd, Mukesh Ambani said the company found estimated recoverable gas reserves of about 4-5 trillion cubic feet at exploration block NEC-OSN-97/2; the find was being evaluated and the certification processes were underway. He said the discoveries had been named Dhirubhai 9, 10 and 11. Reliance had also struck oil in an onshore block in Yemen, in which it had a 25 per cent stake. The company had drilled four wells in this block and three discoveries were made.
GAVL enters into joint venture with ACI to set up animal feed
and poultry business
Mumbai : The GAVL (Godrej Agrovet Ltd) has entered into a joint venture with ACI (Advanced Chemical Industries Ltd) of Bangladesh to set up animal feed and poultry businesses in Bangladesh. The Managing Director, GAVL, C K.Vaidya, said : "We are happy to enter into this joint venture with ACI Bangladesh especially since it is a highly reputed company having diverse businesses that will help leverage this Joint Venture." The Joint Venture is named ACI Godrej Agrovet Private Ltd. The ACI Godrej Agrovet Private Ltd will set up feed mills, poultry breeding, hatchery and poultry rearing operations in Bangladesh.
WTO Director-General in India to hold consultations with
Commerce Minister
New Delhi : The WTO Director-General, Supachai Panitchpakdi, is on a whistle-stop tour to New Delhi to hold consultations with the Commerce Minister, Kamal Nath. They are considering taking on board certain concerns of India and other developing countries on the contentious farm talks. The TWO Director-General and Commerce Minister are expected to discuss ways to move forward in finalising framework agreement at the WTO General Council meeting in Geneva next month. India made it clear that the recent G-20 paper on agriculture provided the "starting point" to break the deadlock on the contentious agriculture issue between developed and developing countries.
Government considering buying back MTNL's shares from market
New Delhi : Government is considering buying back MTNL's shares from the market. This was discussed during a recent meeting chaired by the Communication and IT Minister, Dayanidhi Maran. The Government is considering buying back MTNL's shares as one of the options to pave the way for its merger with another telecom PSU, BSNL, which is not listed on the bourses. Two other options, that of creating a holding company for both the PSUs or offloading about five per cent of BSNL's equity in the market, were also discussed.
Input costs for steel companies likely to go up due to hike in
coal prices
New Delhi : Input costs for Indian steel companies are likely to go up due to a hike in coking coal prices by Australian companies like BHP Billiton and Rio Pinto. Smaller companies, meanwhile, are forced to pick up feedstock at current prices. Indian steel companies rely on coal purchases from spot markets if they face supply disruptions. The situation is also acute with China slashing their coal exports from 100 million tonnes to 80 million tonnes.
Six core infrastructure sectors record 6.7% growth
New Delhi : The six core infrastructure sectors recorded a 6.7 per cent growth in the first two months of this fiscal, 2.4 per cent more than the growth during April-May 2003. The sectors grew at 5.1 per cent in May 2004, one per cent more than the corresponding month last year. According to the official data, the 6.7 per cent growth was driven by petroleum products, which jumped 13.4 per cent during the review period over a mere three per cent during April-May 2003.
US wants opening of markets in India to provide more jobs to
Americans
Washington : The US has said that it does not oppose outsourcing of jobs but would like an opening of markets in India to provide more jobs to Americans. The Assistant Secretary of State, Christina Rocca, said that the administration led by the US President, George W Bush, has made it clear that we do not oppose outsourcing. She said : "What we would like to see in exchange is an opening of markets in India and other countries, which in turn provide more jobs in the US. That is sort of the way it has been formulated."
Prime Minister meets Trade Union leaders today
New Delhi : The Prime Minister, Dr Manmohan Singh, continues his pre-budget meetings today with trade union leaders. This will be the first time that the Prime Minister will be having a formal meeting with trade unions before the budget and it is clear that the unions want to discuss contentious decisions already taken by the UPA government. The Secretary, CITU, W R Varada Rajan, said : "We do not mind private investors building airports in new areas. We are opposed to privatisation of the Delhi and Mumbai airports." The Left trade unions are also worried about how the budget will treat more sensitive issue of labour reforms and returns on small savings.
Asian Paints submits preliminary bid to acquire Israeli firm
Jerusalem : According to the report, Indian paints major Asian Paints has submitted a preliminary bid to acquire up to half of Israeli company, Tambour. However, the talks with Tambour's parent company, Granite Hacarmel Investments, are still at a preliminary stage. There is no negotiations had resulted yet from contacts with the leading Indian company. The Israeli firm has notified the Tel Aviv Stock Exchange that it had received a number of inquiries from companies interested in buying its shares.
RBI keeping close watch on global oil situation
Mumbai : The RBI (Reserve Bank of India) Governor, Y V Reddy, said that the central bank is keeping a close watch on the global oil situation and its impact on domestic prices. The RBI Governor said they would be closely watching the interest rates situation from May 18 till present. He said the interest rates in the developed world had been seen hardening during this period. While saying that he expected the inflationary rise on account of fuel price hike to be in line with RBI's projection of 5 per cent, he added the possible need to reconsider the situation could not be ruled out.
Indo-Thai officials will hold discussions to fine-tune Protocol
on Rules of Origin
New Delhi : According to the report, Indian and Thai officials will hold discussions from June 23-25 to fine-tune the Protocol on Rules of Origin. Both sides have successfully resolved their differences over the issue, which had delayed the implementation of the FTA from March 1. This will be signed in July as part of the Free Trade Agreement between the two countries. Thailand has agreed to value addition of about 40 per cent with change in tariff heading at four-digit level under the Rules of Origin.
India Steel industries need Rs 75,000 crores to hike production
capacity
Kolkata : The former Steel secretary and President of ISA (Indian Steel Alliance), Moosa Raza, said the fresh capacity addition of 25 million tonne to take the country's steel production to 60 m.t by 2010-12, would come mainly through brownfield expansion at an expenditure of Rs 75,000 crore. He also said for every million tonne of capacity addition, the industry would require an investment of Rs 3,000 crore. Stating that steel production in India currently stood at 35 million tonne, he said that the country's demand would touch about 62 m.t by 2010-12 if the GDP grew at the rate of seven per cent per year. In case of 7.5 per cent growth in GDP, the demand for steel by the time would go upto 64 m.t.
Export-Import Bank of India appoints Citigroup and Deutsche
Bank to sell Euro bonds
New Delhi : According to the report, Export-Import Bank of India has appointed Citigroup and Deutsche Bank to sell its five-year bonds in the overseas market. A senior Exim Bank official said : "The bank has already got RBI (Reserve Bank of India) approval for raising 300 million dollars from overseas market. But the timing and amount of the international bond issue through the foreign banks is yet to be decided." Exim Bank is considering 5-year Euro bonds and has mandated Citigroup and Deutsche Bank as joint lead managers and joint bookrunners for the transaction.
Left parties ask government to roll back hike in petro product
prices
New Delhi : Left parties asked the government to roll back the hike in petro product prices. They also said that promises made in the Common Minimum Programme (CMP) must be adhered to in the financial statement. The Left Parties admitted that they wanted the government to consider rolling back the recent hike in LPG prices. CPI (Communist Party of India) General Secretary, A B Bardhan, said : "We have asked the government to stick to the CMP. We understand that this is a budget only for seven months but we want them to follow in that direction. We have also told them if they could absorb the LPG hike."
No rollback of hike in petro products prices, says Petroleum
Minister
New Delhi : The Petroleum Minister, Mani Shanker Iyer, asserted that there would be "no rollback" of the hike in petro products prices. He said : "Our's is not a rollback government. What has been decided has been implemented." The minister said that a comprehensive review of the crude oil policy would be undertaken soon. Earlier Left Front leaders met the Prime Minister, Dr. Manmohan Singh, and demanded a rollback in the hike. The Left parties have started a campaign to have this removed as they see it as a totally "anti-people" move.
Britain and India decides to give a fresh impetus to increase
bilateral trade
London : Britain and India have decided to give a fresh impetus to increase bilateral trade. The trade crossed over 5 billion pounds last year. A decision in this regard was taken at a 45-minute long meeting between the Commerce and Industry Minister, Kamal Nath, and the British Trade and Industry Secretary, Patricia Hewitt, at her office in the Department of Trade and Industry here.
Uttar Pradesh government signs agreement with Reliance group
for gas-based power plant
Lucknow : The Uttar Pradesh government signed a state support agreement with the Reliance group for the world's largest gas-based power plant to be set up by Reliance energy at Dadri in the State. The agreement was signed by the State Chief Secretary, V K Mittal, and the Reliance energy executive vice chariman, Satish Seth, in the presence of the Uttar Pradesh Chief Minister. Mulayam Singh Yadav, the State Development Council Chairman, Amar Singh, and the Reliance group vice-chairman, Anil Ambani. The first phase of the plant is expected to be commissioned in two years. The Uttar Pradesh would get about 1500 MW power from the plant which would entail an investment of over Rs 11,000 crore.
Coal India announces average 16.7% hike in prices of all grades
of coal
Kolkata : Coal India announced an average 16.7 per cent hike in prices of all grades of coal. The Coal India Chairman, Sashikumar, told that the price revision that was effected after two years was inevitable since international prices had gone up by 100 per cent between August 2002 and June 2004. He said the price increase was also effected due to rise in input costs in the last two years as well as to ensure better demand management by relating "our coal prices to international coal prices." The last price hike was made in August, 2002.
TCS issue size excepts over Rs. 5,000 crores
Mumbai : The Tatas filed a draft document with the SEBI (Securities and Exchange Board of India ) for the IPO (Initial Public Offering) to be made by TCS (Tata Consultancy Services), one of the most closely held companies in the corporate giant's stable. While refusing to commit to when precisely the issue would hit the market, once SEBI approval had been obtained, one of the book runners said that its total size was "expected to be above Rs. 5,000 crores." This makes it the biggest-ever IPO announced by a private company in India, a historic benchmark.
We urge government to reconsider LPG price hikes, says CPI
leader
New Delhi : The allies of the Congress-led UPA (United Progressive Alliance) government have sent mixed signals to the hike in fuel prices. On Tuesday, the government had hiked petrol prices by Rs 2 per litre and diesel prices by Rs 1, besides raising LPG prices by Rs 20. Thus petrol in Delhi now costs Rs. 35.71 a litre, diesel Rs. 22.74 and LPG Rs. 261 a cylinder. The prices in Chennai will be Rs. 38.96 for petrol, Rs. 25.35 for diesel and Rs. 268.10 a cylinder. Announcing the decisions, the Petroleum Minister, Mani Shankar Aiyar, said the additional burden on the economy due to the rise in international oil prices since September last year was estimated at Rs. 18,000 crores annually. The burden has thus been shared by all stakeholders -- the Government, the marketing companies and the consumer -- with special measures taken for the vulnerable sections of society. The Left parties seem to have adopted a cautious stand for now. The CPI (Communist Party of India) leader, D Raja, said : "We are happy that kerosene prices have not been hiked but we urge the government to reconsider LPG price hikes." The CPI-M (Communist Party of India-Marxist) said the Centre's decision not to touch import duties on petroleum products will lead to an anomalous situation, increasing the burden of the people. The CPI-M politburo said : "The 10 per cent import duty on crude oil and 20 per cent notional import duty on petroleum products have brought about an anomalous situation, which increases the burden on the people."
Air Sahara announces 10% fare hike with effect from June 21
New Delhi : Air Sahara announced a 10 per cent fare hike with effect from June 21 following an increase in the Aviation Turbine Fuel price. Jet Airways had made a similar announcement. Air Sahara officials said the hike in the fares was necessitated due to the increase in ATF price for the past one year. Air Sahara is the second private airline to announce a hike in its domestic sector.
Car sales goes up by 9.88% in second month of this fiscal
New Delhi : Car sales went up by 9.88 per cent in the second month of this fiscal with Maruti and Tata Motors propelling the growth even as Hyundai slowed down the overall sales last month. Bus and truck sales, an indication of economic growth, soared 50 per cent at 23,432 units against 16,626 units in May last year. Two-wheeler sales in India, the second-biggest market after China, posted a rise of 3.70 per cent as motorcycle and step-through sales grew by 4.05 per cent at 3.61 lakh units while scooter and scooterette sales dipped 1.32 per cent at 70,444 units. Moped sales, however, shot up 14 per cent to 25,633 units.
GlaxoSmithKline and BWIL approve proposed merger between two
companies
New Delhi : Drug makers GlaxoSmithKline Pharmaceuticals and Burroughs Wellcome India Ltd (BWIL) have approved the proposed merger between the two companies. 99.43 per cent of the shareholders approved the amalgamation scheme. Now, GSK is just one step away from completing the procedural requirements of BWIL merger. The boards of both companies had met in March this year and approved a share swap ratio of 14 GSK shares for every 10 held by BWIL shareholders. The merger will be effective on a retrospective basis from January 1, 2004, according to GSK officials.
Union Budget will be presented on July 8
New Delhi : The Budget session of Parliament will begin from July 5 and the Finance Minister, P Chidambaram, will present the Union Budget for 2004-05 on July 8 at 11 a.m. (I.S.T.) in the Lok Sabha. The decision was taken at a meeting of the Cabinet, chaired by the Prime Minister, Dr Manmohan Singh. The budget session will get underway from July 5. The economic survey will be tabled on the seventh, while Railway Minister Lalu Yadav will present his ministry's budget on the sixth. During the session, both Houses of Parliament may go into recess from July 24 to August 15 to enable department-related Standing Committees to consider the 'Demands for Grants' of the respective ministries and prepare their reports.
Government extends term of 12th Finance Commission by five
months
New Delhi : The Government extended the term of the Twelfth Finance Commission by five months till December 31 this year. The Commission, headed by C Rangarajan, was scheduled to submit its report by July 31 but could not complete it due to the General Elections. The extension was decided at the meeting of the Union Cabinet, chaired by the Prime Minister, Dr Manmohan Singh. The Commission could visit only 16 states by the end of February this year. The visits to the remaining 12 states had to be postponed due to the elections.
New drug policy on anvil, says Rehman Khan
Chennai : The Union Minister of state for Chemicals and Fertilisers, Rehman Khan, said that a new drug policy was on the anvil and that the present levels of subsidy being offered for fertilisers would continue even after the budget. He said : "Revival of sick Public Sector Undertakings would be the first priority and disinvestment the last, as per the CMP (Common Minimum Programme) of the UPA (United Progressive Alliance) government". He said that he had reviewed the drug pricing policy together with the Union Chemicals and Fertiliser Minister, Ram Vilas Paswan.
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