Promoters thwart DCM takeover bid
R. SURYAMURTHY
New Delhi, April 24: DCM Shriram Industries appears to have thwarted a hostile takeover bid by HB Stockholdings Ltd.
The promoters of DCM Shriram have increased their stake in the company to 40.71 per cent by converting the warrants allotted to them on a preferential basis earlier this month. DCM Shriram has allotted 9,45,000 equity shares of Rs 10 each at a premium of Rs 80 per share.
Sources said the company had informed the Bombay Stock Exchange (BSE) of the board’s decision. “These shares shall rank pari passu (equal in status) with the existing equity shares of the company,” a resolution taken by DCM Shriram said. HB Stockholdings has informed the BSE that it has increased its stake in DCM Shriram to 25.05 per cent through open market purchases.
Apr 17, 2008
Disputed dam sparks Indo-Pak race
R. SURYAMURTHY
New Delhi, April 15: India is planning to speed up work on a dam on the Jhelum to wrest the advantage from Pakistan, which recently awarded a contract for a power project on the river to a Chinese consortium.
The Kishenganga power project in Jammu and Kashmir is to be put on the fast track as it is of strategic importance, junior power minister Jairam Ramesh said.
India and Pakistan have been locked in a dispute over the dam for years. Kishenganga, the largest tributary of the Jhelum, flows across the Line of Control and is called Neelum in Pakistan.
Islamabad’s opposition to Delhi’s proposal to build a dam on the ground that this would impact its hydro-power project downstream has stalled the project so far.
But recently, Pakistan awarded the contract for a $1.5-billion power project on the river to a consortium of China’s Gezhouba Water and Power Company and China National Machinery and Equipment Import and Export Corporation. The 960MW project is to come up in eight years.
R. SURYAMURTHY
New Delhi, April 15: India is planning to speed up work on a dam on the Jhelum to wrest the advantage from Pakistan, which recently awarded a contract for a power project on the river to a Chinese consortium.
The Kishenganga power project in Jammu and Kashmir is to be put on the fast track as it is of strategic importance, junior power minister Jairam Ramesh said.
India and Pakistan have been locked in a dispute over the dam for years. Kishenganga, the largest tributary of the Jhelum, flows across the Line of Control and is called Neelum in Pakistan.
Islamabad’s opposition to Delhi’s proposal to build a dam on the ground that this would impact its hydro-power project downstream has stalled the project so far.
But recently, Pakistan awarded the contract for a $1.5-billion power project on the river to a consortium of China’s Gezhouba Water and Power Company and China National Machinery and Equipment Import and Export Corporation. The 960MW project is to come up in eight years.
Apr 7, 2008
Duty cut high on trade plan agenda
R. SURYAMURTHY
New Delhi, April 6: The foreign trade policy, to be announced on Friday, could make the import of food articles, commodities and metals cheaper, both to check inflation and make industry competitive globally by allowing firms access to raw materials at a lower cost.
To check prices, the government has scrapped import duties on edible oils, banned the export of non-basmati rice, cut duties on maize imports to zero from 15 per cent and extended the ban on pulse export by a year. It has also banned the export of edible oils and scrapped the export refund schemes in steel and cement.
With inflation touching a more-than-three-year high of 7 per cent, the government is expected to boost imports and encourage exports of only those value-added products that do not push inflation.
Analysts said inflation in commodities such as rice and pulses was because of a shortage in the supply of rice of up to 4 million tonnes and pulses of up to 2 million tonnes.
Fiscal measures such as reducing customs duties for a short period of time until prices stabilise will help to bridge the gap between demand and supply. There could be a similar move in metals and metal products.
R. SURYAMURTHY
New Delhi, April 6: The foreign trade policy, to be announced on Friday, could make the import of food articles, commodities and metals cheaper, both to check inflation and make industry competitive globally by allowing firms access to raw materials at a lower cost.
To check prices, the government has scrapped import duties on edible oils, banned the export of non-basmati rice, cut duties on maize imports to zero from 15 per cent and extended the ban on pulse export by a year. It has also banned the export of edible oils and scrapped the export refund schemes in steel and cement.
With inflation touching a more-than-three-year high of 7 per cent, the government is expected to boost imports and encourage exports of only those value-added products that do not push inflation.
Analysts said inflation in commodities such as rice and pulses was because of a shortage in the supply of rice of up to 4 million tonnes and pulses of up to 2 million tonnes.
Fiscal measures such as reducing customs duties for a short period of time until prices stabilise will help to bridge the gap between demand and supply. There could be a similar move in metals and metal products.
Inflation march gathers pace
JAYANTA ROY CHOWDHURY & R. SURYAMURTHY
New Delhi, April 4: Inflation spiralled to a more-than- three-year high of 7 per cent for the week ended March 22, setting alarm bells ringing within the ruling alliance, which decided to crack down on hoarding.
Rising vegetable and cooking oil prices were behind the high rate of inflation.
Vegetable prices shot up by nearly 5 per cent in just one week, while onion prices rose 22 per cent in two months.
Ten years ago, when onion prices rose sixfold, the BJP was voted out of power in two states.
According to Arun Jaitley, spokesperson for the BJP, which now hopes to play the price card in coming elections, “Inflation is a UPA tax on the aam aadmi.”
This year will see elections in Delhi, Madhya Pradesh, Rajasthan, Chhattisgarh, Karnataka and Jammu & Kashmir, while the Lok Sabha polls will be held next year.
Besides onions and vegetables, grain prices have jumped 17-20 per cent, pulses by 20-35 per cent and sugar by over 18 per cent in a little over two months.
Rising food prices have cost politicians their jobs in the past.
“Inflation has always proved to be a vote loser for ruling parties. ‘India Shining’ or ‘aam aadmi’ rarely work in inflationary situations,” said S.P. Gupta, former member of the Planning Commission.
JAYANTA ROY CHOWDHURY & R. SURYAMURTHY
New Delhi, April 4: Inflation spiralled to a more-than- three-year high of 7 per cent for the week ended March 22, setting alarm bells ringing within the ruling alliance, which decided to crack down on hoarding.
Rising vegetable and cooking oil prices were behind the high rate of inflation.
Vegetable prices shot up by nearly 5 per cent in just one week, while onion prices rose 22 per cent in two months.
Ten years ago, when onion prices rose sixfold, the BJP was voted out of power in two states.
According to Arun Jaitley, spokesperson for the BJP, which now hopes to play the price card in coming elections, “Inflation is a UPA tax on the aam aadmi.”
This year will see elections in Delhi, Madhya Pradesh, Rajasthan, Chhattisgarh, Karnataka and Jammu & Kashmir, while the Lok Sabha polls will be held next year.
Besides onions and vegetables, grain prices have jumped 17-20 per cent, pulses by 20-35 per cent and sugar by over 18 per cent in a little over two months.
Rising food prices have cost politicians their jobs in the past.
“Inflation has always proved to be a vote loser for ruling parties. ‘India Shining’ or ‘aam aadmi’ rarely work in inflationary situations,” said S.P. Gupta, former member of the Planning Commission.
Apr 3, 2008
Price-bitten Centre faces grain tussle
- Farm lobby calls for higher procurement rates
JAYANTA ROY CHOWDHURY AND R. SURYAMURTHY
New Delhi, April 2: The Congress-led government at the Centre is caught between the devil and the deep sea over grain prices.
Farmer groups and political parties are demanding an increase in the procurement price of wheat even as the Centre is trying to check an inflationary spiral fuelled by rising grain and food prices.
Sukhbir Singh Badal, the head of the Shiromani Akali Dal that rules Punjab, said: “Our farmers should get global prices for the wheat and rice they grow.”
The global price for wheat stands at over Rs 1,800 a quintal and paddy at about Rs 2,800 a quintal. The government had last year set a procurement price of Rs 1,000 a quintal for both and is likely to increase this by offering a bonus of Rs 100 a quintal.
- Farm lobby calls for higher procurement rates
JAYANTA ROY CHOWDHURY AND R. SURYAMURTHY
New Delhi, April 2: The Congress-led government at the Centre is caught between the devil and the deep sea over grain prices.
Farmer groups and political parties are demanding an increase in the procurement price of wheat even as the Centre is trying to check an inflationary spiral fuelled by rising grain and food prices.
Sukhbir Singh Badal, the head of the Shiromani Akali Dal that rules Punjab, said: “Our farmers should get global prices for the wheat and rice they grow.”
The global price for wheat stands at over Rs 1,800 a quintal and paddy at about Rs 2,800 a quintal. The government had last year set a procurement price of Rs 1,000 a quintal for both and is likely to increase this by offering a bonus of Rs 100 a quintal.
Mar 31, 2008
Myanmar message to Bangla
R. SURYAMURTHY
Way out
New Delhi, March 30: India will send a strong message to Bangladesh with a proposed transit transport project in Myanmar.
Earlier this week, the Union cabinet approved the Rs 535.91-crore project that will give the landlocked Northeastern states access to the sea. The project involves the development of the Sittwe port in Myanmar and facilities along the river Kaladan that runs through the Indian state of Mizoram as well as Myanmar and meets the sea at Sittwe.
New Delhi’s move to invest in the Myanmar port assumes significance in the wake of Dhaka’s reluctance to give India access to the Chittagong port, which is closer to the Northeast. The cabinet note, to which The Telegraph has access, said, “Bangladesh has practically held India, especially the Northeast, to ransom by denying transit through its territory.”
New Delhi plans to roll out the red carpet to the vice-chairman of Myanmar’s State Peace and Development Consul, Maung Aye, who will visit the capital on April 4 to formalise the deal. The State Peace and Development Consul is the ruling junta of Myanmar, and Maung Aye is the second highest ranking member of the consul after Than Shwe.
R. SURYAMURTHY
Way out
New Delhi, March 30: India will send a strong message to Bangladesh with a proposed transit transport project in Myanmar.
Earlier this week, the Union cabinet approved the Rs 535.91-crore project that will give the landlocked Northeastern states access to the sea. The project involves the development of the Sittwe port in Myanmar and facilities along the river Kaladan that runs through the Indian state of Mizoram as well as Myanmar and meets the sea at Sittwe.
New Delhi’s move to invest in the Myanmar port assumes significance in the wake of Dhaka’s reluctance to give India access to the Chittagong port, which is closer to the Northeast. The cabinet note, to which The Telegraph has access, said, “Bangladesh has practically held India, especially the Northeast, to ransom by denying transit through its territory.”
New Delhi plans to roll out the red carpet to the vice-chairman of Myanmar’s State Peace and Development Consul, Maung Aye, who will visit the capital on April 4 to formalise the deal. The State Peace and Development Consul is the ruling junta of Myanmar, and Maung Aye is the second highest ranking member of the consul after Than Shwe.
Mar 27, 2008
Debate on export target
R. SURYAMURTHY
New Delhi, March 26: The government is considering a $200-billion export target for 2008-09 in the annual review of the foreign trade policy next month. However, exporters, who are already hit by the rupee’s appreciation, are sceptical about such a high target when the signs of a slowdown in the US economy are looming large on them.
“There has to be a realistic approach in setting the target. This year we are unable to achieve the target, what is the point in setting such ambitious targets,” said D.K. Nair, secretary general of Confederation of Indian Textile Industry.
However, the government is considering an increase in the export target to $200 billion as lower import costs have benefited the sector, which re-exports finished goods, officials said.
The textile sector is one of those hard hit by the rupee appreciation. About four million people in the labour intensive sectors such as textile, leather, marine products and handicrafts have lost their jobs till September.
R. SURYAMURTHY
New Delhi, March 26: The government is considering a $200-billion export target for 2008-09 in the annual review of the foreign trade policy next month. However, exporters, who are already hit by the rupee’s appreciation, are sceptical about such a high target when the signs of a slowdown in the US economy are looming large on them.
“There has to be a realistic approach in setting the target. This year we are unable to achieve the target, what is the point in setting such ambitious targets,” said D.K. Nair, secretary general of Confederation of Indian Textile Industry.
However, the government is considering an increase in the export target to $200 billion as lower import costs have benefited the sector, which re-exports finished goods, officials said.
The textile sector is one of those hard hit by the rupee appreciation. About four million people in the labour intensive sectors such as textile, leather, marine products and handicrafts have lost their jobs till September.
Mar 26, 2008
BP to Spice up refinery
R. SURYAMURTHY
New Venture
New Delhi, March 24: BP will enter into a strategic agreement to supply crude oil to Spice Energy for the 5-million-tonne refinery at Haldia being set up by CALS Refineries. Spice Energy is the holding company of CALS.
Sources said officials of the two companies had finalised the memorandum of understanding and would strike the deal soon.
BP, formerly British Petroleum, will supply 2.5 million tonnes of heavy crude and a similar quantity of light crude to the Haldia refinery.
CALS Refineries will produce aviation turbine fuel, LPG and petroleum coke for the domestic market. It also plans to produce petrol and diesel for export, which BP is interested in buying out.
R. SURYAMURTHY
New Venture
New Delhi, March 24: BP will enter into a strategic agreement to supply crude oil to Spice Energy for the 5-million-tonne refinery at Haldia being set up by CALS Refineries. Spice Energy is the holding company of CALS.
Sources said officials of the two companies had finalised the memorandum of understanding and would strike the deal soon.
BP, formerly British Petroleum, will supply 2.5 million tonnes of heavy crude and a similar quantity of light crude to the Haldia refinery.
CALS Refineries will produce aviation turbine fuel, LPG and petroleum coke for the domestic market. It also plans to produce petrol and diesel for export, which BP is interested in buying out.
Mar 22, 2008
oil hunt
Locals tap global gurus for oil hunt
R. SURYAMURTHY
FULL STEAM
New Delhi, Jan. 1: Several Indian companies are holding talks with oil multinationals for making joint bids in the seventh round of auction for oil and gas blocks.
For this round, the government will give additional weights if domestic companies tie up with multinationals having experience in deep sea exploration and production of oil.
There is a possibility of the world’s largest publicly traded oil and gas company, ExxonMobil, America’s Chevron Corporation and UK giant BG bidding for 57 blocks along with Indian partners, sources said.
R. SURYAMURTHY
FULL STEAM
New Delhi, Jan. 1: Several Indian companies are holding talks with oil multinationals for making joint bids in the seventh round of auction for oil and gas blocks.
For this round, the government will give additional weights if domestic companies tie up with multinationals having experience in deep sea exploration and production of oil.
There is a possibility of the world’s largest publicly traded oil and gas company, ExxonMobil, America’s Chevron Corporation and UK giant BG bidding for 57 blocks along with Indian partners, sources said.
Indian Oil
Indian Oil to hire for exploration
R. SURYAMURTHY
New Delhi, Jan. 7: State-run Indian Oil Corporation, which is planning to venture into domestic oil and gas exploration and production, is increasing its staff strength.
Sources said the company planned to recruit about 50 people at all levels to foray into the exploration and production (E&P) business.
The company plans to bid for small blocks under the seventh Nelp (New Exploration Licensing Policy) round.
Officials said the small blocks would offer the IOC an opportunity to participate on its own as the company had not managed to acquire assets as an operator due to the technical criterion prescribed.
R. SURYAMURTHY
New Delhi, Jan. 7: State-run Indian Oil Corporation, which is planning to venture into domestic oil and gas exploration and production, is increasing its staff strength.
Sources said the company planned to recruit about 50 people at all levels to foray into the exploration and production (E&P) business.
The company plans to bid for small blocks under the seventh Nelp (New Exploration Licensing Policy) round.
Officials said the small blocks would offer the IOC an opportunity to participate on its own as the company had not managed to acquire assets as an operator due to the technical criterion prescribed.
Fuel
Crude surge fuels bailout move
R. SURYAMURTHY
Deora: Action time
New Delhi, Nov.1: As global crude prices simmered near the $100-per-barrel-mark, petroleum minister Murli Deora today held separate meetings with Prime Minister Manmohan Singh and finance minister P. Chidambaram over a fresh bailout package for oil marketing PSUs.
In the meetings, Deora sought equitable sharing of the crude burden among the government, the oil marketing companies and consumers.
In tandem with the global price, the Indian basket of crude has shot up to $84.31 per barrel. The Indian crude is a mix of Dubai and Brent crude in the ratio of 61:39.
R. SURYAMURTHY
Deora: Action time
New Delhi, Nov.1: As global crude prices simmered near the $100-per-barrel-mark, petroleum minister Murli Deora today held separate meetings with Prime Minister Manmohan Singh and finance minister P. Chidambaram over a fresh bailout package for oil marketing PSUs.
In the meetings, Deora sought equitable sharing of the crude burden among the government, the oil marketing companies and consumers.
In tandem with the global price, the Indian basket of crude has shot up to $84.31 per barrel. The Indian crude is a mix of Dubai and Brent crude in the ratio of 61:39.
Hunt
Centre warms up to oil hunt drill
R. SURYAMURTHY
Under the hammer
New Delhi, Dec. 2: The government is likely to launch a fresh round of oil-and-gas-block auctions after the winter session of Parliament that ends on December 7.
These auctions are part of the government’s new exploration and licence policy, and the upcoming auctions are the seventh in the series.
The auctions will be the largest-ever with 60 oil and gas blocks on sale. Of these blocks, 30 are onshore, 15 are shallow water and 15 deep water and ultra-deep water blocks.
R. SURYAMURTHY
Under the hammer
New Delhi, Dec. 2: The government is likely to launch a fresh round of oil-and-gas-block auctions after the winter session of Parliament that ends on December 7.
These auctions are part of the government’s new exploration and licence policy, and the upcoming auctions are the seventh in the series.
The auctions will be the largest-ever with 60 oil and gas blocks on sale. Of these blocks, 30 are onshore, 15 are shallow water and 15 deep water and ultra-deep water blocks.
Resort
DLF to up stake in Aman parent
R. SURYAMURTHY & GARIMA SINGH NEOGY
New Delhi, Nov. 28: DLF Ltd, India’s largest property developer, plans to raise its stake in Silverlink — the holding firm for global luxury resorts chain Aman Resorts — to almost 100 per cent.
DLF, which has already taken a majority stake in Silverlink, “will buy out other shareholders within a month or so”, said sources close to the deal.
Negotiations are under way with other partners in Silverlink to buy out their holdings.
The KP Singh-owned DLF has already bought the stake that Lee Hing Development — a Hong Kong-based property fund — held in Silverlink.
R. SURYAMURTHY & GARIMA SINGH NEOGY
New Delhi, Nov. 28: DLF Ltd, India’s largest property developer, plans to raise its stake in Silverlink — the holding firm for global luxury resorts chain Aman Resorts — to almost 100 per cent.
DLF, which has already taken a majority stake in Silverlink, “will buy out other shareholders within a month or so”, said sources close to the deal.
Negotiations are under way with other partners in Silverlink to buy out their holdings.
The KP Singh-owned DLF has already bought the stake that Lee Hing Development — a Hong Kong-based property fund — held in Silverlink.
Africa-India
Funds bait for African oil
R. SURYAMURTHY
New Delhi, Nov. 4: The government is planning to give financial assistance to oil-rich African countries in return for access to crude and gas reserves.
Such a strategy is in the light of a flare-up in the global price of crude that has made it necessary for the country to look beyond West Asia for its supplies.
India imports 75 per cent of its crude requirements, with 73 per cent coming from West Asia and 16 per cent from Africa.
This approach is similar to the one being followed by China. Recently, the Democratic Republic of Congo, which has one-tenth of the world’s copper reserves, gave a Chinese company a majority stake in a mining joint venture as well as mineral rights, in return for a $5-billion loan.
R. SURYAMURTHY
New Delhi, Nov. 4: The government is planning to give financial assistance to oil-rich African countries in return for access to crude and gas reserves.
Such a strategy is in the light of a flare-up in the global price of crude that has made it necessary for the country to look beyond West Asia for its supplies.
India imports 75 per cent of its crude requirements, with 73 per cent coming from West Asia and 16 per cent from Africa.
This approach is similar to the one being followed by China. Recently, the Democratic Republic of Congo, which has one-tenth of the world’s copper reserves, gave a Chinese company a majority stake in a mining joint venture as well as mineral rights, in return for a $5-billion loan.
Trade woes
Exporters present wish list to stop job loss
R.SURYAMURTHY
New Delhi, Dec. 16: Exporters are in favour of a long-term policy against the rising rupee.
In the absence of such norms, there will be heavy job losses, they said.
Hit by the appreciation of the rupee against the dollar, exporters have retrenched 30,000 regular employees and 100,000 contract labourers.
They have suggested a corpus to refinance banks for covering their hedging charges.
The dollar rates that are relevant for some schemes should also be fixed, according to Ganesh Kumar Gupta, president of the Federation of Indian Export Organisations (Fieo).
R.SURYAMURTHY
New Delhi, Dec. 16: Exporters are in favour of a long-term policy against the rising rupee.
In the absence of such norms, there will be heavy job losses, they said.
Hit by the appreciation of the rupee against the dollar, exporters have retrenched 30,000 regular employees and 100,000 contract labourers.
They have suggested a corpus to refinance banks for covering their hedging charges.
The dollar rates that are relevant for some schemes should also be fixed, according to Ganesh Kumar Gupta, president of the Federation of Indian Export Organisations (Fieo).
Export
Budget hope for exports
R. SURYAMURTHY
New Delhi, Jan. 22: The budget is expected to provide relief to labour-intensive export units as the appreciation of the rupee against the dollar has forced them to retrench a large number of workers.
Officials said the country was unlikely to meet the export target of $160 billion for the fiscal and would fall short by about $10 billion. For the April-November period of 2007-08, exports grew 22.08 per cent to $98.38 billion against $80.59 billion in the corresponding period of the previous year.
They said the recently constituted high-powered group under V. Krishnamurthy, the chairman of the National Manufacturing Competitiveness Council, could suggest steps to boost export.
R. SURYAMURTHY
New Delhi, Jan. 22: The budget is expected to provide relief to labour-intensive export units as the appreciation of the rupee against the dollar has forced them to retrench a large number of workers.
Officials said the country was unlikely to meet the export target of $160 billion for the fiscal and would fall short by about $10 billion. For the April-November period of 2007-08, exports grew 22.08 per cent to $98.38 billion against $80.59 billion in the corresponding period of the previous year.
They said the recently constituted high-powered group under V. Krishnamurthy, the chairman of the National Manufacturing Competitiveness Council, could suggest steps to boost export.
Crude
Modi, Goldman give oil panel a headache
R. SURYAMURTHY
Mukherjee: Balancing act
New Delhi, Dec. 25: The discussions at next week’s meeting of the group of ministers on fuel prices will be in the backdrop of Gujarat poll results and a Goldman Sachs projection of a surge in the global price of crude.
The victory of BJP’s Narendra Modi in Gujarat has made the Congress jittery, while the US investment bank’s forecast spells more worry for policy-makers.
In its oil forecast for 2008, Goldman has said that prices could reach $105 per barrel and rule at an average level of $95.
R. SURYAMURTHY
Mukherjee: Balancing act
New Delhi, Dec. 25: The discussions at next week’s meeting of the group of ministers on fuel prices will be in the backdrop of Gujarat poll results and a Goldman Sachs projection of a surge in the global price of crude.
The victory of BJP’s Narendra Modi in Gujarat has made the Congress jittery, while the US investment bank’s forecast spells more worry for policy-makers.
In its oil forecast for 2008, Goldman has said that prices could reach $105 per barrel and rule at an average level of $95.
Fuel price
Fuel panel for token price hike
R. SURYAMURTHY & JAYANTA ROY CHOWDHURY
Deora: Rising curve
New Delhi, Jan. 18: The group of ministers on fuel is believed to be in favour of recommending a marginal hike in the price of petrol by about Rs 1 a litre.
The view emerged yesterday at the meeting of the ministers and will be discussed with other Congress leaders. If cleared by the political leadership, the ministers may approve the hike at their meeting tomorrow.
This is expected to push inflation up marginally, said top officials. Inflation rose to a four-month high of 3.79 per cent for the week ended January 5 compared with 3.50 per cent in the previous week.
R. SURYAMURTHY & JAYANTA ROY CHOWDHURY
Deora: Rising curve
New Delhi, Jan. 18: The group of ministers on fuel is believed to be in favour of recommending a marginal hike in the price of petrol by about Rs 1 a litre.
The view emerged yesterday at the meeting of the ministers and will be discussed with other Congress leaders. If cleared by the political leadership, the ministers may approve the hike at their meeting tomorrow.
This is expected to push inflation up marginally, said top officials. Inflation rose to a four-month high of 3.79 per cent for the week ended January 5 compared with 3.50 per cent in the previous week.
Crude boils
Oil duty recast on the boil
R. SURYAMURTHY
New Delhi, Feb. 18: The government is considering a duty rejig for petroleum products to bridge the gap between global crude prices and domestic retail prices that persists despite last week’s rise in petrol and diesel prices.
This is also expected to send the right political message to the electorate before the assembly polls this year and the general elections later.
Officials said last week’s price hike of Rs 1 per litre of diesel and Rs 2 for a litre of petrol would bridge only Rs 840 crore of the Rs 71,000-crore gap between costs of fuels and their prices.
Though oil bonds — which is the debt that the government incurs to subsidise fuel prices — will cover about 57 per cent of the gap, a large deficit still needs to be addressed.
R. SURYAMURTHY
New Delhi, Feb. 18: The government is considering a duty rejig for petroleum products to bridge the gap between global crude prices and domestic retail prices that persists despite last week’s rise in petrol and diesel prices.
This is also expected to send the right political message to the electorate before the assembly polls this year and the general elections later.
Officials said last week’s price hike of Rs 1 per litre of diesel and Rs 2 for a litre of petrol would bridge only Rs 840 crore of the Rs 71,000-crore gap between costs of fuels and their prices.
Though oil bonds — which is the debt that the government incurs to subsidise fuel prices — will cover about 57 per cent of the gap, a large deficit still needs to be addressed.
SEZ
SEZ gives voice to farmers
R. SURYAMURTHY
New Delhi, Jan. 6: Indian Farmers Fertilisers Cooperative Limited (Iffco) is setting up a special economic zone (SEZ) in Andhra Pradesh that will process agricultural produce and house other farm-based industries.
Called Kissan SEZ, the facility comes at a time of a raging debate on farmlands being used for industrial purposes. The multi-product zone will be in Nellore district of the state. This is Iffco’s first initiative in infrastructure development.
According to S.K. Jhakhar, chairman of Iffco, “This will not only boost industrialisation in the area but also benefit the local people, particularly the farmers.”
R. SURYAMURTHY
New Delhi, Jan. 6: Indian Farmers Fertilisers Cooperative Limited (Iffco) is setting up a special economic zone (SEZ) in Andhra Pradesh that will process agricultural produce and house other farm-based industries.
Called Kissan SEZ, the facility comes at a time of a raging debate on farmlands being used for industrial purposes. The multi-product zone will be in Nellore district of the state. This is Iffco’s first initiative in infrastructure development.
According to S.K. Jhakhar, chairman of Iffco, “This will not only boost industrialisation in the area but also benefit the local people, particularly the farmers.”
Gas
Public sector gas price hike in pipeline
R. SURYAMURTHY
Boiling over
New Delhi, Dec. 24: The government is planning to increase the administered price of gas to $2.5 per million British thermal unit (mBtu) from $1.9, a move that will raise production costs of fertiliser and power units.
This is almost half of the floor price fixed by the government for gas produced by Reliance Industries from the Krishna-Godavari basin.
Officials said the petroleum ministry was considering the recommendations of the commerce ministry’s Tariff Commission, which has favoured an increase in the price of gas. The issue could come up before the cabinet in early January.
R. SURYAMURTHY
Boiling over
New Delhi, Dec. 24: The government is planning to increase the administered price of gas to $2.5 per million British thermal unit (mBtu) from $1.9, a move that will raise production costs of fertiliser and power units.
This is almost half of the floor price fixed by the government for gas produced by Reliance Industries from the Krishna-Godavari basin.
Officials said the petroleum ministry was considering the recommendations of the commerce ministry’s Tariff Commission, which has favoured an increase in the price of gas. The issue could come up before the cabinet in early January.
Farmers
Credit fillip for farmers
JAYANTA ROY CHOWDHURY & R. SURYAMURTHY
Rangarajan: Rural reach
New Delhi, Feb. 5: The government wants state-run banks to increase their rural reach and persuade farmers to trade expensive loans from moneylenders for cheaper credit from them.
This follows a report that says nearly 73 per cent of Indian farmers have no access to banks and co-operatives and some 51 per cent don’t get credit at all.
State-run banks are being asked to improve their city-to-village branch ratio in favour of villages.
Banks who are leaders in certain districts should work towards the goal of 100 per cent coverage of farmers.
JAYANTA ROY CHOWDHURY & R. SURYAMURTHY
Rangarajan: Rural reach
New Delhi, Feb. 5: The government wants state-run banks to increase their rural reach and persuade farmers to trade expensive loans from moneylenders for cheaper credit from them.
This follows a report that says nearly 73 per cent of Indian farmers have no access to banks and co-operatives and some 51 per cent don’t get credit at all.
State-run banks are being asked to improve their city-to-village branch ratio in favour of villages.
Banks who are leaders in certain districts should work towards the goal of 100 per cent coverage of farmers.
Sick units
Centre takes over 4 tea gardens
R. SURYAMURTHY
New Delhi, Feb. 8: The Centre has taken over four tea gardens, two each in Bengal and Kerala, and called for expressions of interest from interested parties to run them.
This is the first time Section 16(E) of the Tea Act 1953 has been invoked to take over gardens. Section 16(E) allows the Tea Board to take over gardens that are lying closed for more than three months and find new owners.
The EoIs have been invited for two gardens in Jalpaiguri — Chinchula owned by Shimansu Vyaparik Kendra and Bamandanga Tondoo owned by Tondoo Tea Co. The two gardens in Kerala are Peermade and Lone Tree, both controlled by Peermade Tea Company in Idukki district.
R. SURYAMURTHY
New Delhi, Feb. 8: The Centre has taken over four tea gardens, two each in Bengal and Kerala, and called for expressions of interest from interested parties to run them.
This is the first time Section 16(E) of the Tea Act 1953 has been invoked to take over gardens. Section 16(E) allows the Tea Board to take over gardens that are lying closed for more than three months and find new owners.
The EoIs have been invited for two gardens in Jalpaiguri — Chinchula owned by Shimansu Vyaparik Kendra and Bamandanga Tondoo owned by Tondoo Tea Co. The two gardens in Kerala are Peermade and Lone Tree, both controlled by Peermade Tea Company in Idukki district.
Exports
More export reliefs before budget
R. SURYAMURTHY
Time to smile
New Delhi, Dec. 26: The government is likely to announce another round of sops to exporters before the budget, which could include reimbursement of state-level taxes.
Officials said the reliefs could be announced after receiving the recommendations of a committee appointed by the Prime Minister, which is working on a long-term strategy for exporters who have been hit hard by the rising rupee.
The officials said the Centre could soon call a meeting of state finance ministers to discuss the reliefs.
R. SURYAMURTHY
Time to smile
New Delhi, Dec. 26: The government is likely to announce another round of sops to exporters before the budget, which could include reimbursement of state-level taxes.
Officials said the reliefs could be announced after receiving the recommendations of a committee appointed by the Prime Minister, which is working on a long-term strategy for exporters who have been hit hard by the rising rupee.
The officials said the Centre could soon call a meeting of state finance ministers to discuss the reliefs.
Futures Trade
Plea to lift wheat futures ban
R. SURYAMURTHY
Free flow
New Delhi, Feb. 4: The Forward Markets Commission (FMC) will approach the government to lift the ban on four agricultural commodities — rice, wheat, urad and tur.
It will also push for policy changes to enable investment by banks and mutual funds in the futures markets.
Commission chairman B.C. Khatua told The Telegraph, “From data available, one can say that futures contract prices are correct indicators of the actual price situation ahead. Prices do not go up or down because of the futures contract.”
R. SURYAMURTHY
Free flow
New Delhi, Feb. 4: The Forward Markets Commission (FMC) will approach the government to lift the ban on four agricultural commodities — rice, wheat, urad and tur.
It will also push for policy changes to enable investment by banks and mutual funds in the futures markets.
Commission chairman B.C. Khatua told The Telegraph, “From data available, one can say that futures contract prices are correct indicators of the actual price situation ahead. Prices do not go up or down because of the futures contract.”
Fuel Price
Panel tilts towards fuel tax reduction
R. SURYAMURTHY
RESCUE MEASURES
New Delhi, Nov. 25: The group of ministers on fuel prices is likely to recommend cuts in taxes and will try to insulate consumers from the surge in global crude price that is poised to cross $100 a barrel.
Government officials are pressing for a marginal increase in prices, but this will depend on the political climate. Set up by Prime Minister Manmohan Singh, the group of ministers is headed by external affairs minister Pranab Mukherjee and will submit its plans within a month.
R. SURYAMURTHY
RESCUE MEASURES
New Delhi, Nov. 25: The group of ministers on fuel prices is likely to recommend cuts in taxes and will try to insulate consumers from the surge in global crude price that is poised to cross $100 a barrel.
Government officials are pressing for a marginal increase in prices, but this will depend on the political climate. Set up by Prime Minister Manmohan Singh, the group of ministers is headed by external affairs minister Pranab Mukherjee and will submit its plans within a month.
Old Age Fund
Oil bonds knock on EPFO door
JAYANTA ROY CHOWDHURY & R. SURYAMURTHY
New Delhi, Jan. 27: The government plans to allow the Employees Provident Fund Organisation (EPFO) and other pension funds to invest in oil and food bonds, with the aim of giving them new instruments to shore up declining earnings.
This move, analysts said, will also help to perk up the bond market in the country. However, an EPFO board member expressed doubts about the move.
Senior finance ministry officials said the procedural hurdles that prevented the entities from investing in oil and food bonds issued to state-run oil marketing companies and the Food Corporation of India (FCI) were being removed.
JAYANTA ROY CHOWDHURY & R. SURYAMURTHY
New Delhi, Jan. 27: The government plans to allow the Employees Provident Fund Organisation (EPFO) and other pension funds to invest in oil and food bonds, with the aim of giving them new instruments to shore up declining earnings.
This move, analysts said, will also help to perk up the bond market in the country. However, an EPFO board member expressed doubts about the move.
Senior finance ministry officials said the procedural hurdles that prevented the entities from investing in oil and food bonds issued to state-run oil marketing companies and the Food Corporation of India (FCI) were being removed.
Bike
Firms rev up for electric bikes
R. SURYAMURTHY
A two-wheeler by Global Automobiles at the Auto Expo. Picture by Prem Singh
New Delhi, Jan. 14: Two-wheeler makers in the country are keen on electric bikes.
These bikes run on electricity that is derived from batteries recharged from electrical outlets.
With soaring fuel prices, firms expect a good demand for such bikes.
To win converts, manufacturers are also spicing up their offerings.
Take TVS Motors’ concept vehicle X-Fossil — which can move at speeds of 140 kilometres per hour and go from zero to 100 in just 3.2 seconds.
X-Fossil is loaded with high-tech components and coloured white.
R. SURYAMURTHY
A two-wheeler by Global Automobiles at the Auto Expo. Picture by Prem Singh
New Delhi, Jan. 14: Two-wheeler makers in the country are keen on electric bikes.
These bikes run on electricity that is derived from batteries recharged from electrical outlets.
With soaring fuel prices, firms expect a good demand for such bikes.
To win converts, manufacturers are also spicing up their offerings.
Take TVS Motors’ concept vehicle X-Fossil — which can move at speeds of 140 kilometres per hour and go from zero to 100 in just 3.2 seconds.
X-Fossil is loaded with high-tech components and coloured white.
Learning
George Telegraph set to expand
R. SURYAMURTHY
LOTS TO LEARN
New Delhi, Feb. 20: Calcutta-based George Telegraph plans to invest about Rs 100 crore in expansion activities.
The institute will set up centres to cash in on the lack of trained manpower in emerging sectors such as retail, pharmaceutical and accountancy.
Group director Subrata Dutta said the retail salesman course was introduced to cater to the needs of the retailing industry, which was growing at the rate of 30 per cent per annum. The institutes will come up in Jamshedpur, Cooch Behar, Sonarpur and Barasat this year.
R. SURYAMURTHY
LOTS TO LEARN
New Delhi, Feb. 20: Calcutta-based George Telegraph plans to invest about Rs 100 crore in expansion activities.
The institute will set up centres to cash in on the lack of trained manpower in emerging sectors such as retail, pharmaceutical and accountancy.
Group director Subrata Dutta said the retail salesman course was introduced to cater to the needs of the retailing industry, which was growing at the rate of 30 per cent per annum. The institutes will come up in Jamshedpur, Cooch Behar, Sonarpur and Barasat this year.
Top race
Big queue for top NTPC post
R. SURYAMURTHY
New Delhi, Nov. 20: The government has started the search for the next chairman of the National Thermal Power Corporation (NTPC). The term of the present incumbent, T. Sankaralingam, will expire in April.
Sources said the Public Enterprises Selection Board (PESB) had prepared a shortlist of 13. Those in the fray include K. Ramachandran Pillai, A.K. Chaudhari and H.K. Sharma.
While Pillai is chairman of the National Textile Corporation, Chaudhari heads National Buildings Construction and Sharma is the boss of Satluj Jal Vidyut Nigam.
R. SURYAMURTHY
New Delhi, Nov. 20: The government has started the search for the next chairman of the National Thermal Power Corporation (NTPC). The term of the present incumbent, T. Sankaralingam, will expire in April.
Sources said the Public Enterprises Selection Board (PESB) had prepared a shortlist of 13. Those in the fray include K. Ramachandran Pillai, A.K. Chaudhari and H.K. Sharma.
While Pillai is chairman of the National Textile Corporation, Chaudhari heads National Buildings Construction and Sharma is the boss of Satluj Jal Vidyut Nigam.
Steel plan
Mesco on expansion spree
R. SURYAMURTHY
STEEL WILL
Kalinganagar (Orissa), Feb. 5: Mesco Steel Group plans to invest $2.8 billion in expanding its steel making capacity to 10 million tonnes (mt) by 2014.
It also plans to foray into wire rods, steel rebars and slabs to cater to the booming infrastructure segment.
Mesco Steel will invest around $1.2 billion in Mideast Integrated Steels Ltd to turn Mideast’s pig iron plant into a steel facility of 3.5mt capacity.
It has an 88.5 per cent stake in Mideast.
Mesco Steel managing director Rita Singh said another $1.6 billion would be invested in the other group company, Mesco Kalinga Steel Limited, to set up a 3mt steel plant in the first phase, which could be later expanded to 5mt.
R. SURYAMURTHY
STEEL WILL
Kalinganagar (Orissa), Feb. 5: Mesco Steel Group plans to invest $2.8 billion in expanding its steel making capacity to 10 million tonnes (mt) by 2014.
It also plans to foray into wire rods, steel rebars and slabs to cater to the booming infrastructure segment.
Mesco Steel will invest around $1.2 billion in Mideast Integrated Steels Ltd to turn Mideast’s pig iron plant into a steel facility of 3.5mt capacity.
It has an 88.5 per cent stake in Mideast.
Mesco Steel managing director Rita Singh said another $1.6 billion would be invested in the other group company, Mesco Kalinga Steel Limited, to set up a 3mt steel plant in the first phase, which could be later expanded to 5mt.
Power cap
Power units face project cap
R. SURYAMURTHY
New Delhi, Nov. 15: The government is considering a cap on the number of mega power projects to be awarded to an industrial house.
Many companies have petitioned Union power minister Sushil Kumar Shinde for such a limit after Anil Ambani’s Reliance Power bagged the Sasan project in Madhya Pradesh, while emerging the lowest bidder for the Krishnapatnam project in Andhra Pradesh.
Reliance Power is also in the race for the Tilaiya project in Jharkhand.
R. SURYAMURTHY
New Delhi, Nov. 15: The government is considering a cap on the number of mega power projects to be awarded to an industrial house.
Many companies have petitioned Union power minister Sushil Kumar Shinde for such a limit after Anil Ambani’s Reliance Power bagged the Sasan project in Madhya Pradesh, while emerging the lowest bidder for the Krishnapatnam project in Andhra Pradesh.
Reliance Power is also in the race for the Tilaiya project in Jharkhand.
Nano effect
Bike makers make power statement
R. SURYAMURTHY
New Delhi, Feb. 3: The Rs 1-lakh car may be the next big thing on the Indian roads, but bike makers remain unfazed by its entry.
Global players such as Yamaha, KTM and Kawasaki plan to launch high-end models in the country and are confident that their offerings will be lapped up by bike aficionados.
Rajiv Bajaj, managing director of Bajaj Auto, said, “Those who go for these high-end bikes want power and performance. Those who are looking for fuel efficiency can go in for the low-end bikes.”
According to Murad Ali Baig, an auto expert, “High-end bikers are sporty and not Nano targets.” Nano is the Rs 1-lakh-car of the Tatas.
R. SURYAMURTHY
New Delhi, Feb. 3: The Rs 1-lakh car may be the next big thing on the Indian roads, but bike makers remain unfazed by its entry.
Global players such as Yamaha, KTM and Kawasaki plan to launch high-end models in the country and are confident that their offerings will be lapped up by bike aficionados.
Rajiv Bajaj, managing director of Bajaj Auto, said, “Those who go for these high-end bikes want power and performance. Those who are looking for fuel efficiency can go in for the low-end bikes.”
According to Murad Ali Baig, an auto expert, “High-end bikers are sporty and not Nano targets.” Nano is the Rs 1-lakh-car of the Tatas.
zip, zap, zoom
2-wheeler fingers crossed
R. SURYAMURTHY
New Delhi, Jan. 10: The people’s car may not have scared fellow four-wheelers on the road but one segment doesn’t like it at all — the zip, zap, zoom brigade.
Two-wheeler makers are clearly nervous, though they are not yet scrambling to jazz up their old “horses”.
Bajaj Auto managing director Rajiv Bajaj said two-wheelers had their “own market” and “do not compete” with cars. “In fact, we are launching motorcycles priced higher than the Rs 1-lakh car launched today.”
But he was worried. “We have to see how the Tata Nano performs,” he added.
R. SURYAMURTHY
New Delhi, Jan. 10: The people’s car may not have scared fellow four-wheelers on the road but one segment doesn’t like it at all — the zip, zap, zoom brigade.
Two-wheeler makers are clearly nervous, though they are not yet scrambling to jazz up their old “horses”.
Bajaj Auto managing director Rajiv Bajaj said two-wheelers had their “own market” and “do not compete” with cars. “In fact, we are launching motorcycles priced higher than the Rs 1-lakh car launched today.”
But he was worried. “We have to see how the Tata Nano performs,” he added.
Power cut
Land hurdle to big power projects
R. SURYAMURTHY
Core issues
New Delhi, Nov. 27: The government’s ambitious mega-power-project programme has been hit by problems relating to land acquisition, coal supply and environment.
Officials in the power ministry said the Tamil Nadu government was finding it difficult to acquire land at a reasonable rate for the Cheyyur project, prompting it to rein in on plans for a second project.
Maharashtra, too, is finding the going tough with land, while the Karnataka government is facing a barrage of criticisms on environment for its Tadri project.
R. SURYAMURTHY
Core issues
New Delhi, Nov. 27: The government’s ambitious mega-power-project programme has been hit by problems relating to land acquisition, coal supply and environment.
Officials in the power ministry said the Tamil Nadu government was finding it difficult to acquire land at a reasonable rate for the Cheyyur project, prompting it to rein in on plans for a second project.
Maharashtra, too, is finding the going tough with land, while the Karnataka government is facing a barrage of criticisms on environment for its Tadri project.
Wheels of change
Lalu to load budget train with sops
R. SURYAMURTHY
New Delhi, Feb. 22: The railway budget, to be announced on Tuesday, is set to pamper the common man, with either no change in fare or a small cut.
Buoyed by a booming freight business, the railways could also come up with a slew of modernisation and expansion plans as well as proposals for public-private partnerships.
With Lok Sabha polls in 2009, railway minister Lalu Prasad, presenting his fifth budget, is expected to make full use of the opportunity to woo the electorate by announcing big-ticket concessions for farmers, railway workers and students.
New trains, extending existing ones to new destinations and raising the frequency of others are also on the agenda.
R. SURYAMURTHY
New Delhi, Feb. 22: The railway budget, to be announced on Tuesday, is set to pamper the common man, with either no change in fare or a small cut.
Buoyed by a booming freight business, the railways could also come up with a slew of modernisation and expansion plans as well as proposals for public-private partnerships.
With Lok Sabha polls in 2009, railway minister Lalu Prasad, presenting his fifth budget, is expected to make full use of the opportunity to woo the electorate by announcing big-ticket concessions for farmers, railway workers and students.
New trains, extending existing ones to new destinations and raising the frequency of others are also on the agenda.
Morning cuppa
Strategy to enliven tea
R. SURYAMURTHY
Ramesh: Action front
New Delhi, Jan. 21: The Centre has asked the Bengal government to allow horticulture and tourism in sick tea gardens to make them financially viable.
“The problems faced by the financially weak tea gardens are enormous and need to be addressed at the earliest. The way out is to make them financially viable,” said Jairam Ramesh, minister of state for commerce.
“The Bengal government should allow five per cent of the garden land for horticulture and tourism to prevent them from turning sick,” Ramesh said. For this, the state government will have to amend the land ceiling act as the existing law debars any such activity beyond 24 acres.
R. SURYAMURTHY
Ramesh: Action front
New Delhi, Jan. 21: The Centre has asked the Bengal government to allow horticulture and tourism in sick tea gardens to make them financially viable.
“The problems faced by the financially weak tea gardens are enormous and need to be addressed at the earliest. The way out is to make them financially viable,” said Jairam Ramesh, minister of state for commerce.
“The Bengal government should allow five per cent of the garden land for horticulture and tourism to prevent them from turning sick,” Ramesh said. For this, the state government will have to amend the land ceiling act as the existing law debars any such activity beyond 24 acres.
Money from Islamabad
Ministry roots for FDI from Pak
R. SURYAMURTHY
New Delhi, Feb. 10: The commerce ministry has proposed foreign direct investment (FDI) from Pakistan on a case-by-case basis.
Jairam Ramesh, the minister of state for commerce, has written a letter to external affairs minister Pranab Mukherjee for support to allow FDI from Islamabad.
“If FDI from Pakistan is allowed on a case-by-case basis through the normal FIPB (Foreign Investment Promotion Board) route, security concerns can be addressed,” Ramesh said in the letter.
R. SURYAMURTHY
New Delhi, Feb. 10: The commerce ministry has proposed foreign direct investment (FDI) from Pakistan on a case-by-case basis.
Jairam Ramesh, the minister of state for commerce, has written a letter to external affairs minister Pranab Mukherjee for support to allow FDI from Islamabad.
“If FDI from Pakistan is allowed on a case-by-case basis through the normal FIPB (Foreign Investment Promotion Board) route, security concerns can be addressed,” Ramesh said in the letter.
Pay Hike
Govt sees 25% pay hike
R. SURYAMURTHY
New Delhi, March 2: Central government employees could expect an about 20-25 per cent salary hike in the Sixth Pay Commission recommendations.
However, the commission is unlikely to recommend an increase in the retirement age by two years from the present 60 years, sources said.
They said the commission could propose an increase in the house rent allowance for government employees as the employees depended largely on private accommodation where rents are escalating.
R. SURYAMURTHY
New Delhi, March 2: Central government employees could expect an about 20-25 per cent salary hike in the Sixth Pay Commission recommendations.
However, the commission is unlikely to recommend an increase in the retirement age by two years from the present 60 years, sources said.
They said the commission could propose an increase in the house rent allowance for government employees as the employees depended largely on private accommodation where rents are escalating.
Market Mantra
Weak markets fail to scuttle PSU issue plan
R. SURYAMURTHY
New Delhi, March 10: The UPA government is pressing ahead with its agenda of listing public sector units (PSUs), despite a bear run in the markets and signs of a slowdown in the US economy.
Exploration firm Oil India could come out with an initial public offering (IPO) as early as next month followed by National Hydroelectric Power Corporation Limited (NHPC) in July-August.
R. SURYAMURTHY
New Delhi, March 10: The UPA government is pressing ahead with its agenda of listing public sector units (PSUs), despite a bear run in the markets and signs of a slowdown in the US economy.
Exploration firm Oil India could come out with an initial public offering (IPO) as early as next month followed by National Hydroelectric Power Corporation Limited (NHPC) in July-August.