Satyam in time plea for SEZs
Mahindra Satyam has sought more time from the authorities to set up its three special economic zones (SEZs) in Andhra Pradesh.
“We have decided to go slow on infrastructure and expansion because of global economic recession in IT, in particular. The company is in the process of analysing the worldwide economic situation to amend the expansion plans appropriately,” Mahindra Satyam said.
The board of approval for special economic zones, headed by commerce secretary Rahul Khullar, will take up the matter on February 11.
Satyam Computer Services, now called Mahindra Satyam, plans to develop three SEZs — at Hitec City and Bahadurpally (both in Hyderabad) and Thotlakonda (near Visakhapatnam) — in Andhra Pradesh.
The three proposed tax-free zones have already been given an extension, which would lapse in June.
The company said it had completed the first phase of the 12-hectare SEZ at Hitec City, with a built-up area of 2,41,064 square feet.
“We spent Rs 78 crore on this. Work for the second phase is in progress and is likely to be completed by September. We expect exports to commence by the end of next fiscal,” the company informed the board of approval.
The zones that get in-principle approval have to complete land acquisition within a year of approval, while a formally approved SEZ with land under possession has to make the tax-free enclave operational within three years.
Officials said the new management of the company, which is reviewing Satyam’s past activities, wanted to go slow on the SEZs as there was no demand for space.
The SEZ Act of 2005, which became effective from February 10, 2006, gave units within the zone and their developers certain tax benefits.
Under the act, developers are entitled to 100 per cent tax exemption on profits for 10 years on the trot during the first 15 years of operations.
Units are entitled to a 100 per cent tax exemption on export profits during the first five years of operations and 50 per cent exemption for the next five years.
From the 11th to the 15th year, the units are eligible for a 50 per cent waiver on reinvested profits.
So far, extensions have been granted to 105 developers. More than Rs 1 lakh crore has been invested in around 100 SEZs.
The BoA has so far notified 335 SEZs, while 147 have got in-principle approvals.
Feb 1, 2010
Jan 31, 2010
NTPC to import coal
NTPC Ltd plans to import coal directly, starting next fiscal.
“We plan to import 15-16 million tonnes of coal directly from next year,” R.S. Sharma, chairman and managing director of NTPC, told The Telegraph.
The government had nominated state-run MMTC to import 12.5mt coal on behalf of NTPC last year.
The tender, reissued at the end of August, faced delays and affected production at some NTPC units.
NTPC’s total coal requirement during 2009-10 is estimated at 150 million tonnes.
The power producer is also close to striking a coal block deal in Mozambique or Indonesia to secure its coal supplies.
Earnings boost
NTPC is targeting at least Rs 2,400 crore by selling power in the open market in the next few years. It is creating 2,000mw of fresh capacity, including two units of 500mw each at Farakka and Korba.
“These two units will generate at least 8 billion units of power. Even if we sell the power at Rs 1.5 per unit, we earn a revenue of Rs 1,200 crore. Another Rs 1,200 crore will come when the additional 1,000mw of merchant power generation is set up,” NTPC director (commercial) Inderjit Kapoor said today on the sideline of the company’s upcoming FPO roadshow in Calcutta.
NTPC Ltd plans to import coal directly, starting next fiscal.
“We plan to import 15-16 million tonnes of coal directly from next year,” R.S. Sharma, chairman and managing director of NTPC, told The Telegraph.
The government had nominated state-run MMTC to import 12.5mt coal on behalf of NTPC last year.
The tender, reissued at the end of August, faced delays and affected production at some NTPC units.
NTPC’s total coal requirement during 2009-10 is estimated at 150 million tonnes.
The power producer is also close to striking a coal block deal in Mozambique or Indonesia to secure its coal supplies.
Earnings boost
NTPC is targeting at least Rs 2,400 crore by selling power in the open market in the next few years. It is creating 2,000mw of fresh capacity, including two units of 500mw each at Farakka and Korba.
“These two units will generate at least 8 billion units of power. Even if we sell the power at Rs 1.5 per unit, we earn a revenue of Rs 1,200 crore. Another Rs 1,200 crore will come when the additional 1,000mw of merchant power generation is set up,” NTPC director (commercial) Inderjit Kapoor said today on the sideline of the company’s upcoming FPO roadshow in Calcutta.
Jan 28, 2010
Fuel prices await rule tweak
Fuel prices may change more frequently with shifts in global crude values, while the burden on consumers will be different for petrol, diesel, kerosene and LPG
These far-reaching changes can figure in the report of the Kirit Parikh panel on fuel prices, which will be tabled soon.
Officials said the huge fiscal deficit and the need to improve the health of the PSU oil firms might force the government to take some harsh measures based on the recommendations of the panel.
However, not all the recommendations will be accepted given the rising inflation and the fact that fuel prices are a politically sensitive issue.
As part of a differential pricing strategy, the burden will be most on users of petrol while it will be least for kerosene. Pricing norms will also be applicable to diesel and LPG.
Instead of hiking prices at one go, sources said, the panel can recommend a series of increases over specific time periods. Besides, to arrive at the prices for, say, the next 15 days or a month, the panel may propose taking the average of the previous six or three months, meaning a marginal rise in prices.
The suggestion of dual pricing for diesel — one linked to global crude prices for bulk users, and another for retail consumers — may not come through as it can result in black marketing. “Dual pricing, if applied, may also lead to leakages and diversion of resources for which effective and strict implementation is needed,” the sources said.
They said for domestic LPG cylinder and kerosene the panel could recommend a targeted subsidy mechanism through smart cards as it would not only reduce the subsidy burden but also directly provide benefits.
The panel is also trying to drop the ad hoc discounts that upstream oil firms such as ONGC, Oil India Limited and GAIL (India) Limited give to the public sector refiners.
Instead, a special tax would be levied on them whenever crude prices moved beyond a level, and the corpus distributed among the refiners.
Fuel prices may change more frequently with shifts in global crude values, while the burden on consumers will be different for petrol, diesel, kerosene and LPG
These far-reaching changes can figure in the report of the Kirit Parikh panel on fuel prices, which will be tabled soon.
Officials said the huge fiscal deficit and the need to improve the health of the PSU oil firms might force the government to take some harsh measures based on the recommendations of the panel.
However, not all the recommendations will be accepted given the rising inflation and the fact that fuel prices are a politically sensitive issue.
As part of a differential pricing strategy, the burden will be most on users of petrol while it will be least for kerosene. Pricing norms will also be applicable to diesel and LPG.
Instead of hiking prices at one go, sources said, the panel can recommend a series of increases over specific time periods. Besides, to arrive at the prices for, say, the next 15 days or a month, the panel may propose taking the average of the previous six or three months, meaning a marginal rise in prices.
The suggestion of dual pricing for diesel — one linked to global crude prices for bulk users, and another for retail consumers — may not come through as it can result in black marketing. “Dual pricing, if applied, may also lead to leakages and diversion of resources for which effective and strict implementation is needed,” the sources said.
They said for domestic LPG cylinder and kerosene the panel could recommend a targeted subsidy mechanism through smart cards as it would not only reduce the subsidy burden but also directly provide benefits.
The panel is also trying to drop the ad hoc discounts that upstream oil firms such as ONGC, Oil India Limited and GAIL (India) Limited give to the public sector refiners.
Instead, a special tax would be levied on them whenever crude prices moved beyond a level, and the corpus distributed among the refiners.
Jan 25, 2010
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