 |
|
FM for consolidation of oil sector
Govt proposes parallel marketing of LPG, kerosene
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
FCI plans bonds to raise Rs 20,000-cr
Reliance to expand petro retail network
Rahul to speak
at World Economic Forum Truckers’ stir hits cement unit Tatas to export buses to Senegal
Cairn to raise stake in Indian oil sector
ABB wins Rs 135-cr export order
IT roundup
Sugar prices crash
ICICI Bank net up by 17 pc
|
|
FM for consolidation of oil sector
New Delhi, January 17 The ministry is considering restructuring of petroleum duties, he said while referring to the Lahiri Committee looking into the issue. The committee has suggested bringing down custom duty on crude oil from 10 per cent to 5 per cent, and on petrol and diesel from 15 per cent to 10 per cent. Speaking at Petrotech-2005, an international conference on petroleum, here today he said, “The oil and gas sectors would be further opened for competition, including in retail. The segment requires greater consolidation given the technological challenges that it faces.” The Finance Minister said, “consolidation in the oil sector is required since there is a huge supply-demand gap and the country will be more dependent on oil and gas in this century.” Pointing out that taxes in the sector have to be fuel-neutral and subsidies transparent, Mr Chidambaram said it is a paradox that there are both taxes and subsidies on the same petroleum products. “Taxes and subsidies in the sector are in conflict with each other,” he said, adding that any departure from fuel-neutral taxes and transparent subsidies should be avoided as far as possible. He said the ministry would take up recommendations of the committee with Prime Minister Manmohan Singh. He asked the oil companies to improve efficiency so as to reduce petroleum imports and bring down fuel prices.
Volatile oil prices
Expressing satisfaction over recent fall in inflation to below 6 per cent, the Finance Minister said there is no reason to be complacent even after the fall as global oil prices are still inflationary and have not moderated. “One cheer for inflation coming down to 5.78 per cent in December-end 2004 compared to 6.45 per cent a year ago. We will raise another cheer when the oil prices come down,” he said. Global crude prices had touched $56 a barrel. They are now hovering at over $45. Referring to the volatility in crude prices, he said, “oil prices go down and up. They are deceptive. We are not in a region to sit back comfortably.”
Talking to reporters, the Finance Minister informed that the roadmap of the banking sector has been fine-tuned and would be announced next week. The fine-tuning has been done to allow foreign banks to pick up to 74 per cent equity in Indian private banks. “Please remember that a notification was issued in March 2004 (on allowing FDI hike in private banks). We are now working on the roadmap to safeguard proper working of PSU banks and also to enable greater FDI in private banks,” he said. He said the roadmap was being fine-tuned. Chidambaram had met RBI Governor Y V Reddy on Saturday to discuss mainly the roadmap for banking sector reforms. Reddy also had a meeting with Economic Affairs Secretary Rakesh Mohan to go into the fineprints of the roadmap. The roadmap will effect far-reaching reforms in the banking sector as many of the private banks were facing lack of capital.
|
|
Govt proposes parallel marketing of LPG, kerosene
New Delhi, January 17 “Since LPG and kerosene are subsidised products, there is a visible reluctance to expand in these areas. It has resulted in limited reach to the targeted groups and high level of adulteration and black marketing by the other sector leading to huge financial losses to the oil companies,” said Mr S.C. Tripathi, Secretary, Petroleum, while speaking at the session on “Challenges in oil retail sector” organised by Ficci under Petrotech-2005 today. Mr Tripathi said the oil companies should consider parallel marketing of LPG and kerosene at reduced subsidy rates. It will encourage other consumers to purchase from the open market rather than on the black market. It will also prepare the ground for subsequent policy reforms in the oil sector. “The present policy of oil companies to sell LPG and kerosene on the open market at zero subsidy has discouraged the consumers to buy at the high price. But if the companies could sell kerosene at a price like Rs 12-13 per litre instead of Rs 17 per litre on the open market, it will reduce the pressure on the public distribution system,” he said. At present, the government has allowed the oil companies to sell LPG to the commercial sector at market price, around Rs 200 higher than the subsidised cylinder for the domestic customers. Similarly, kerosene is available at around Rs 17 per litre than Rs 9 per litre price under public distribution system. The CMD of ONGC, Mr Subir Raha, said, “ the vide price difference between different petroleum product has resulted in large-scale adulteration of petrol and diesel, resulting in damage to engines of the vehicles.”
|
|
FCI plans bonds to raise Rs 20,000-cr
New Delhi, January 17 In the long run, FCI is planning to raise Rs 20,000 crore through bonds and Rs 5,000 crore target will be on a pilot basis, he said, adding at least Rs 1,000 crore is envisaged through this route by the end of this fiscal. “The FCI needs at least Rs 26,000 to 36,000 crore market borrowing to lessen the interest outgo on the loans from consortium of banks,” he added. The bonds would attract an interest rate of seven per cent and this would be the most economical way of raising resources as the banks are currently charging 8.15 per cent interest from FCI, he said. “If we are able to arrive at a rate of around six per cent or so for these bonds, we will float Rs 5,000 crore in one go,” he said. While A K Capital has been appointed as the lead manager, I-Sec, UTI Bank, SBI Capital and R K Finance would be the merchant bankers for the bond issue. The entire amount would be though private placement route to banks, financial institutions, mutual funds and pension funds, the official said. The bonds would be listed at the BSE and NSE. Out of the Rs 1,000 crore target this year, Rs 500 crore would be green-shoe option. The country’s nodal food grains procurement agency has now succeeded in raising the funds from banks at a reduced interest rate of 8.15 per cent against more than 11 per cent two years ago. Apparently, the government’s explicit concern on slashing the mounting annual food subsidy, touching Rs 25,800 crore now, has forced the FCI go in for cost cutting on various fronts. And, the interest outgo is the major head worrying the FCI. He said the corporation has engaged US-based consultancy McKinsey for suggesting its downsizing and to curtail overhead costs. McKinsey has already been on the job for past one month, Mr Malhotra said. The salary bill of 51,550 employees was around Rs 1,200 crore a year, besides an expenditure of Rs 1,400 crore on handling wheat and paddy stocks with a total turnover of Rs 68,000 crore. The FCI has already offered a Voluntary Retirement Scheme (VRS), which has been availed by 7,000 officers and about 3,000 labourers.
|
|
Reliance to expand petro retail network
New Delhi, January 17 Talking to The Tribune, he disclosed that the company had already set up 300 retail outlets across the country to sell petrol, diesel and lubricants. Another 1000 are under the construction stage, and will be functional soon. “We do not believe in reducing prices to compete with the public sector oil companies. Rather, we will provide value addition at the outlets like high quality petrol and diesel at the same price,” he said. To ensure the quality and right quantity to the consumers, the company has introduced automation of outlets, electronic monitoring of the entire supply chain by introducing electronic locking of the transport vehicles. “The automation requires Rs 15-20 lakh investment on each outlet besides around Rs 300 crore investment at the network level,” he said adding that Reliance outlets were attracting even farmers from the rural hinterland. The company is also entering into agreements with the bulk purchasers of diesel, like the state transport corporations, said Mr Raghavendran. When asked about the company’s plans for the Northern market, he said,” we are talking with the state transports and other large consumers to sell our material.”
|
|
Rahul to speak
at World Economic Forum Guwahati, January 17 Sources in the Congress High Command in Delhi disclosed that Rahul Gandhi has been invited to take part as a speaker in the convention of World Economic Forum to be held in Geneva between June 24 and 28 this year. The sources informed that altogether 237 under–40 personalities from different walks of life have been invited to take part in the convention in Geneva. Apart from Rahul Gandhi, Dayanidhi Maran and Kumaramangalam Birla, are the other two who have been invited from India for the convention. It may be mentioned that, of late, Rahul Gandhi had been undertaking tours to Bangalore and North-East, where he had been interacting with the students of management institutes and IIT.
|
|
Truckers’ stir hits cement unit Solan, January 17 The Industry Minister, Mr Kuldeep Kumar, while reacting to the 10-day long strike of truck unions at Darlaghat told The Tribune that while the genuine grievances of the truck unions would be considered it would be ensured that such strikes did not send wrong signals to the industrialists. He said the district administration had been strictly directed to resolve the issue at the earliest and end the 10-day old strike at Darlaghat. With all three truck unions joining hands, transporting was adversely hit for the 10th day at the Gujarat Ambuja Cement’s (GACL) premises at Darlaghat. Despite having as many as three rounds of talks, headed by the Deputy Commissioner, Superintendent of Police, officials of the GACL and heads of the three truck unions, no breakthrough has been achieved to resolve the matter. The three unions — SDTO, BLLS and ADKM — are now demanding making rates of clinker and cement at par while transporting clinker to Ropar. The unions alleged that transporting it to Ropar with the prevalent rates had become uneconomical as they were paid less than what they incurred as expenses. Officials of the GACL however contend that since they paid freight charges, which are much higher than the Barmana -based ACC plant and also higher than the government rate, there is a little scope for any further hike. They added that they provided 40 per cent back load to cover up the loss.
|
|
Tatas to export buses to Senegal New Delhi, January 17 The order has been sanctioned by the Finance Ministry through Exim Bank under the new partnership for the African Development (NEPAD) Scheme. A Line of Credit Agreement was signed today between Ambassador of Senegal in India Amadou Bocoum and R. M. V. Raman, Executive Director, Exim Bank of India. The first shipment of buses to Senegal will move out in the first week of February. Tata Motors, with revenues of over $ 3.5 billion, is a flagship company of the Tata Group. It is the world’s fifth largest medium and heavy commercial vehicle manufacturer and produces more than 150 commercial vehicle models with a range of light, medium-to-heavy-duty trucks, buses and tractor-trailers. Tata Motors is the second largest player in the domestic passenger car market in India.
|
|
Cairn to raise stake in Indian oil sector
New Delhi, January 17 Addressing a session at Petrotech-2005, Mr W. B. B. Gammel, CEO of Cairn Energy, said, “Cairn’s management had and still has a vision for the oil and gas potential in India. We believe that it is an area that has significant potential to be unlocked and field discoveries greater than 100 million barrel oil equivalent.” He expressed confidence about finding significant hydrocarbon reserves in India. Operating in India for the past 10 years, Cairn’s gross investments in the country exceed $ 1.25 billion. During the last decade, the company has drilled more than 100 wells in the country, brought four exploration fields on stream, made first deepwater discoveries on the east coast and struck oil in Rajasthan.
|
|
ABB wins Rs 135-cr export order
Bangalore, January 17 A key win is a turnkey order for four new 220/66/20kV outdoor air insulated substations for power distribution. The project, scheduled for completion in around 18 months, includes design, procurement, manufacturing & supply of equipment for all substations. ABB will also be supplying power transformers, instrument transformers, outdoor circuit breakers, medium voltage switchgear and control & relay panels from its manufacturing facilities at Vadodara, Nashik and Bangalore. ABB India has also received orders from the West Asia region for supply of medium voltage 33 kV outdoor circuit breakers from its global sourcing facility in Nashik. “ABB’s leading edge power technologies and globally recognised manufacturing capabilities in India, combined with our proven engineering and project execution competencies have been decisive factors in these successes”, said Ravi Uppal, Vice-Chairman and Managing Director, ABB India. “They will help augment our strong order book as well as reinforce ABB India’s strategic focus on exports and growing reputation in the international market” he added.
|
|
IT roundup New Delhi, January 17 “Of the 1,000 persons, we will hire this year, 500 will be stationed in Noida and an equal number in Bangalore,” iGate’s Chief Executive Officer Phaneesh Murthy told a news conference here. “We see increasing traction in the marketplace for our integrated delivery model. The expansion is in line with our plans to build the required capability and scale that we need for going forward,” he said. In the October-December quarter, the company won two large integrated technology and operations deals. The expansion will take the company’s headcount in Noida to 850 while in Bangalore, its workforce will grow to 1,700. In Chennai too, iGate plans to take the headcount to 850 from 350 at present. In all, the company has 3,700
employees. iGate is currently in the process of completing second phase of its 14 acre integrated technology and operations campus in Bangalore. “The second phase in Bangalore will be completed by the first week of March,” Mr Murthy
said. TiE in Dubai Indian entrepreneurship is well-accepted and welcomed in the United Arab Emirates, where the first major gathering of the Dubai chapter of The Indus Entrepreneurs
(TiE) was opened by Education Minister Sheikh Nahayan bin Mubarak Al Nahayan yesterday.
TiE Dubai President Hari Padmanabhan said its panel of experts extends advice on turning Dubai’s strategic position in the transit route between India and the United States into a business and manufacturing advantage. Ms Padmanabhan said Dubai can truly develop into a melting pot of the expertise and entrepreneurship that has thrived and grown to great proportions as in the US. Started in 2003, Dubai-based TiE is part of the global organisation of nearly 42 chapters in 10 countries, which shares the members experience in setting up companies as they have done when it was formed in the Silicon Valley in 1992. — Agencies
|
|
Sugar prices crash
Mumbai, January 17 Prices of small and medium grades plummeted by Rs 60 and Rs 100 per quintal, respectively, from their level of the last two weeks. Price for small grade was Rs 1,826/1,855 per quintal and for medium grade Rs 1,855/1,908. Local bulk buyers were cautious in view of the huge unsold stocks at the domestic godowns in APMC markets.
— UNI
|
|
|
|
bb
Café Coffee Aktiebolaget SKF NCDEX Airtel Clinic All Clear SunSensors Loan carnival Appointed |
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Mailbag | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
New Delhi, January 17
In
video:
Chidambaram says government is preparing roadmap for reforms in
banking sector. (
Guwahati, January 17
