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New Delhi, May 13 Thirteen years after Dr Manmohan Singh made the historic Budget speech that pitch-forked India into the world economy, the original team of reformists are back at the helm, triggering hopes of maintaining continuity in the reforms roadmap. Oil price hike just a few days away
ONGC Videsh completes deal for 2 Electrolux to source lawn-mowers |
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WelcomHeritage at Ooty
IEG apprehends price hike
Berger to sell 84 pc stake in Malta arm
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India Inc says reforms matter, leadership doesn’t
New Delhi, May 13 And unlike many in the political firmament, industry top executives do not have any problems with a leader of foreign origin. Rather, a stable government is a matter of bigger concern for them. “We are not at all concerned about who leads the government. Stability is a bigger concern and I am happy that the mandate is in favour of a stable coalition,” National Association of Software and Service Companies (Nasscom) chief Kiran Karnik told The Tribune. In all likelihood, Dr Manmohan Singh will become the next Finance Minister of the country and assisted by old Cabinet colleague P. Chidambaram, who is expected to get a key economic portfolio. Contrary to the general apprehension, the domestic industry has sent out a bullish signal with most believing that the economic reforms process will not be reversed. “I do not foresee any change in the economic reforms process. The process will remain on track”, Director General designate of the Confederation of Indian Industry (CII), Mr N Srinivasan, said. “The leadership is not an issue with us as long as there is no instability”, Mr Srinivasan said. Apprehensions had been emanating from various quarters about the approach of a non-NDA government with support from Left parties towards the economic reform programme. The new government will assume office in the backdrop of rather robust macro-economic scenario with most recent figures showing a significant recovery in the current fiscal year. In fact, figures released by the Central Statistical Organisation (CSO) showing that GDP grew by a staggering 10.4 per cent in the last quarter in the last fiscal (2003-04). Official figures have shown that for the first time in many years the economy was set to breach the 8 per cent GDP growth figure. Mr Srinivisan said that the industry’s experience with the Left-ruled West Bengal government have been very positive. “The West Bengal government have been very progressive and have been consistently looking at raising the level of economic growth”, the CII DG-designate said. Similar views were echoed by Mr Karnik. “We do not think the economic reforms process will be affected. There is a broad consensus across all political parties on the issue of economic reforms,” he said. The new government, however, is likely to encounter a number of politically-sensitive issues — labour policy, petroleum product pricing and privatisation of the public sector undertakings being among the primary ones. “Privatisation of PSUs and labour policy are two critical issues. But I do not see any problem on that front. The West Bengal government have demonstrated flexibility on the issue of labour policies”, Mr Karnik said. President of Federation of Indian Chambers of Commerce and Industry (FICCI) Y. K. Modi said that even the Left parties would form a formidable component of the new government, as seen in West Bengal, “ the Left parties can be pro-industry and pro investment. The West Bengal government is going ahead with the disinvestment programme”. The labour policy has been a contentious issue with all the parties and not only with the Left, Mr Modi said. “Not much was done by the previous governments on this matter anyway”, he said. At the same time the Nasscom chief was “saddened” by the defeat suffered by Mr N. Chandrababu Naidu in Andhra Pradesh, the poster boy of the Indian IT industry. “I would say I am saddened by the defeat suffered by the Naidu government at the Centre, because of the immense help he has provided to the Indian IT industry. At the same time I would like to add that IT was not the reason for his defeat as some in the media has made it out to be. There were other factors and it was a vote for change,” Mr Karnik said. |
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Oil price hike just a few days away
New Delhi, May 13 After the defeat of Mr Ram Naik, Union Minister of Petroleum in the Lok Sabha elections, the Ministry of Petroleum is finding itself in a tight spot to accept the proposal of the oil companies to hike price of petrol and diesel, besides kerosene and LPG cylinders. The last price revision was announced on December 31, 2003. A senior official in the Ministry of Petroleum disclosed: “We have received written proposals from the oil companies to allow them increase price of petrol and diesel by Rs 3 to 5 per litre, kerosene by Rs 6 per litre and of LPG by Rs 100 per cylinder keeping in view the increase in international crude oil prices. But we will have to wait before the formation of government.” He admitted that international crude oil prices were now hovering around $ 37 per barrel as against around $ 31 per barrel prevailing on January 1 this year. However, he said: “The net profit of major oil companies has also increased from around Rs 10,000 crore in 2002-03 to about Rs 23,000 crore in 2003-04, so the next government can ask oil companies to pass on a share of this profit to consumers before any price hike.” The Petroleum ministry is also considering to propose to the Finance Minister to absorb a portion of price hike, as the collection of oil surcharge imposed in 2002-03, is expected to cross Rs 6,500 crore this fiscal from Rs 6,200 crore last year. The surcharge was imposed presumably to adjust the subsidy bill of kerosene and LPG. Though the subsidy bill on these have come down to just one-third of the amount assumed at that time but the surcharge collection was still continuing at the same rate. Mr R.K. Gulati, secretary, All-India Transporters Association, a body representing over 60 per cent of around 30 lakh truckers across the country, said: “The new government should consider all options before announcing any price hike in diesel or petrol as it would have cascading effect on the economy.” |
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ONGC Videsh completes deal for 2 Sudan blocks
Mumbai, May 13 With conclusion of the transaction for Blocks 5A and 5B, OVL now owns a 26.12 per cent stake in 5A and 24.5 per cent stake in 5B, the ONGC informed the stock exchange here today. The exploration blocks are located adjacent to the Greater Nile Oil Project, where OVL had acquired 25 per cent stake in March, 2003, from Talisman Energy Inc of Canada, it said. OVL will partner with Malaysian company Petronas and Sudanese national oil firm Sudapet for block 5A exploration. For exploration in block 5B, OVL will partner with Petronas, Sudapet and Swedesh oil company Lundin Petroleum AB. Two major discoveries were made in block 5A and over 200 million barrels of oil reserves have already been established, it added. An interim development plan is currently being prepared for starting oil production from these fields, it said. Meanwhile, the ONGC’s offshore package insurance policy premium came down sharply to $ 24.537 million per year from $ 36.587 million as insurance risk surveyors upgraded the oil gaint rating to “acceptable”. The lower insurance premium, from May 11 was achieved by the ONGC due to comprehensive and sustained actions to enhance safety in all facilities and operations and the claim-free record in last three years. Earlier, the ONGC obtained a single comprehensive package insurance policy to cover offshore and onshore risks but it segregated the two risks last year. |
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Electrolux to source lawn-mowers from India
New Delhi, May 13 The company has awarded orders of components worth Rs 58.5 crore to Indian vendors including NRB Bearings, Abilities Pistons, Sunbeam, Goetze, Oswal Electricals, Jhalani Impex, Bajaj Motors, Highway Industries and Kalyani Forge. More Indian vendors are under active consideration by the company. The company officials said the Electrolux factories in Sweden, Italy, USA and Australia will be sourcing components from India. The company has identified India as the sourcing base for its outdoor division that makes garden and forestry equipment like chain-saws, riders, lawn-mowers and lawn-tractors. Mr Nick, vice-president, purchasing (Asia Pacific), AB Electrolux, said: “We are impressed by the quality and performance standards of Indian vendors. They today qualify our partners in our global growth strategy. Going forward, we are confident that our sourcing from Indian suppliers will increase manifold.” He said the company had set up an international purchasing office (IPO) in India last year to source raw materials, components and finished goods for its global manufacturing operations. Later, the Electrolux also organised a national vendor selection and sourcing meet, in association with Auto Components Manufacturers Association of India (ACMA) to select vendors from across the country. |
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WelcomHeritage at Ooty
Chandigarh, May 13 WelcomHeritage made its first foray into the South by signing three properties, owned by the Mysore royal family — the Fernhill Palace and Regency Villas at Ooty and Rajendra Villas at Mysore. The latter is at present closed for renovation and expected to be ready in October. The WelcomHeritage chain plans include the tying up of 50 properties by the end of 2004. Locations being explored are Goa, Kerala, Gujarat, the North-Eastern states, Orissa, Hyderabad and Pondicherry. |
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New Delhi, May 13 It said an upward inflationary pressure would result from increase in prices of primary commodities, rise in world oil prices and high growth in money supply. “The inflation rate based on WPI hovers around 4.4 per cent, despite a rise in the prices of food articles. Average inflation for the fiscal year, 2003-04, stood at 5.5 per cent backed by an increase in the domestic demand and rise in the fuel prices in the international market,” the IEG said in its ‘Monthly Monitor’ for April, 2004. Besides, a rise in the external demand, as reflected in the high growth rate of exports, and expected rise in domestic demand will also put an upward pressure on the inflation rate. The WPI rate was 4.4 per cent in April, 2004, compared to 4.3 per cent in March, 2004. The prices of manufactured products increased by 5.9 per cent on the back of sharp rise in prices of sugar (14.1 per cent) and iron and steel (34.2 per cent). Primary article prices, however, grew moderately by 2.4 per cent due to fall in the prices of fruits and vegetables. The CPI inflation rate is expected to be around 4 per cent for the next three months. The IEG said two factors that can create shocks for the economy through supply side are the monsoon and world oil prices. The Met Department has predicted a normal monsoon for 2004. Based on its new eight parameter statistical model, the IMD’s forecast for this year’s rainfall is 100 per cent of the long run average of 88 cms. The IEG said good rainfall for the second consecutive year would help to sustain the long-run growth in the agricultural sector. But the world oil prices have gone up to 37 $ a barrel and is very much above the OPECs upper limit of $ 28 a barrel and sooner or later domestic oil prices would have to be adjusted. — UNI |
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Berger to sell 84 pc stake in Malta arm
New Delhi, May 13 An agreement to this effect has been signed between BIL and Van Gee Bee Ltd and its associates. Berger International would receive a consideration of around 1.8 million for the sale of its stake in BPM. Recently, BIL, the Singapore-based subsidiary of Asian Paints, entered into a technical consultancy and advice arrangement with Berger Paints Pakistan.
— UNI |
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