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LPG shortage: Petroleum Ministry calls meeting today
Oil prices, skewed trade impact global economy
Federal Bank takes over Lord Krishna Bank
CST to be 2 pc from next fiscal
Indo-Pak expo from Dec 1
SAIL moves Company Law Board
Hero Honda enters scooter segment
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Jubilant buys US firm for $33.5 m
B Natural to market juices abroad
Govt invites CVs to select independent PSU Directors
BSNL not to shut Tata Tele connections
Electrosteel lists $35 m
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LPG shortage: Petroleum Ministry calls meeting today
New Delhi, October 5 Industry watchers said by citing reports of LPG shortage, many dealers are diverting it to the black market to make easy money. Though the customers have to wait up to one week for refills, the government has failed to deal with the problem. “I agree the situation is quite serious due to the diversion of domestic cylinders to hoteliers, shops, dhabas and auto-owners. We will review the situation tomorrow as the ministry’s directions to the oil companies to supply cylinders to dealers in proportion to their customers have not led to the desired results,” said Petroleum Minister Mani Shankar Aiyar today. Since the government has not increased the domestic LPG cylinder prices under the pressure of the Left Parties, a large number of dealers are diverting domestic cylinders to industry, hotels, autos, shops and private enterprises in the black market,” said an oil marketing company official. Commenting on the LPG shortage, Mr D.H. Paipanandiker, President, RPG Foundation said: “The present subsidy system has created the whole mess. It is a fact that most of the commercial buyers, including five-star hotels, shopping complexes and auto-owners are buying subsidised LPG cylinders from the black market. How can the government expect them to pay the premium price when the same cylinder is available from the supplier at a margin.” “Stop subsidy immediately on domestic cylinders if you want to check the black marketing and deal with the supply crisis,” he said. The government is paying a subsidy of over Rs 100 per cylinder to the domestic customers. With the rise in demand, the government is trying to keep a tab on the fuel supply. Recently, the Petroleum Ministry issued directions to the oil companies to supply cylinders to dealers, considering that a cylinder will be used at least for 21
days. It has also asked them not to release new connections to the present dealers, and to concentrate on rural and semi-urban areas. Officials in oil companies said:“With the onset of the festival season, the demand for LPG has gone up by over 20 per cent but its supply has declined substantially due to the closure of the Reliance refinery till mid -November, leading to the present crisis.” Even in the international market, they said, the prices of butane — used for LPG production along with propane— had gone up after an increased demand in the USA after two hurricanes. Consequently, Indian Oil, HPCL and other oil companies are finding it difficult to meet the domestic demand. After floods in August in many parts of the country, people are facing a severe shortage of LPG, especially in the metros, North -East and some parts of north India.
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Oil prices, skewed trade impact global economy
United Nations, October 5 Growth will decelerate in 2006 to 3 per cent impacting the ability of developing countries to reach the global anti-poverty targets known collectively as the Millennium Development Goals (MDGs), Under-Secretary for Economic and Social Affairs Josi Antonio Ocampo told the Economic and Financial Committee. And the reluctance by some world players to adjust trade and financial imbalances could further add to uncertainty and risk in the world outlook, he said. “At the same time, the broad international economic environment does show some auspicious signs,” Mr Ocampo said, citing robust growth in international trade as well as trade surpluses for some developing countries. He predicted “a major breakthrough” if development commitments are fully met, particularly for sub-Saharan Africa, where aid is expected to double from $25 billion in 2004 to $50 billion by 2010. But other indicators point to a destabilisation of the world economy, including the unravelling of housing prices in developed economies, a significant rise in long-term interest rates, and the reduction in the risk appetite of financial markets, he
said. Mr Ocampo said the global economy had declined measurably during 2005 compared to a strong and broad expansion in 2004, and projections of future growth were fraught with uncertainty and risk. The decline, he added, was due partly to enormous global imbalances, including the rising external deficit of the United States on the one hand, and growing surpluses in the Asian, European and oil-exporting economies on the other.
— PTI
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Federal Bank takes over Lord Krishna Bank
New Delhi, October 5 The Boards of Federal Bank Ltd and LKB today gave their nod to the merger, the second such deal this year among private banks. The loss-making LKB said its Board of Directors met and considered, among other things, the proposal for merger with Federal Bank. “After discussions, the Board gave an in-principle approval to consider the merger of the two banks subject to due diligence, valuation and necessary approvals from the shareholders and the concerned authorities,” it said in a statement here. Banking sources said the proposed acquisition of LKB could be around Rs 300 crore. However, the two banks refused to give details on the quantum of the deal. The synergies are to be derived from the fact that both banks have strong presence in the South, especially Kerala and will expand their customer base. The resultant economies of scale will impart efficiency to the new entity. “The LKB Board decided to take a final view on the structure and process of such merger if the outcome of the due diligence, valuation and other related studies are found acceptable to both the banks and subject to other necessary approvals,” LKB said. Analysts expect the deal to be a stock swap as Federal Bank needs funds for its growth.
— UNI
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CST to be 2 pc from next fiscal
New Delhi, October 5 The decision has been taken on the basis of concurrence of the Union Finance Ministry regarding full compensation for loss of revenue to states on account of reduction in CST, he told reporters after a meeting of the Empowered Committee. It is this decision that prompted Jharkhand to switch over to VAT from January 1, 2006. Jharkhand Finance Minister Raghubar Das said his state had not embraced VAT from April 1 this year since it was not clear whether the state would get compensation after the removal of CST. The Central Sales Tax is slated to be completely removed from 2007-08. Mr Dasgupta also announced the pilot launch of a tax information exchange system (TINXSYS), which is expected to curb the usage of fraudulent statutory forms by dealers to gain tax benefits under CST. Nine states have started the pilot project, he said, adding that 14 states had indicated they would join the system. The system would allow verification of dealer tax identification number and CST number for 10 states of Andhra Pradesh, Assam, Delhi, Haryana, Karnataka, Kerala, Madhya Pradesh, Rajasthan, Tamil Nadu and West Bengal.
— PTI
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Indo-Pak expo from Dec 1
Chandigarh, October 5 Addressing a press conference here today, PHDCCI Punjab Committee Chairman Amarjit Goyal said Punjab Chief Minister Capt Amarinder Singh would inaugurate Ipex-2005 on November 30 evening, while Capt Amarinder Singh’s Pakistan Punjab counterpart Chaudhary Pervez Elahi would be the chief guest at the inauguration. The event, being organised as part of the centenary celebration of PHDCCI, will see participation of traders from various sectors. Giving a presentation on Ipex 2005, PHDCCI Punjab Committee Co-Chairman R.S. Sachdeva said though the bilateral trade between
the neighbours stood at $600 million, India’s exports to Pakistan at $505.44 million in 2004-05 almost doubled in one year from $286 million in 2003-04. The stalls of Indian companies will have on display items such as dyes and chemicals, drugs and pharmaceuticals, plastic and linoleum products, industrial machinery, cement, tyres, tea, medicine, video tapes, cosmetics and viscose fibre. Most of these goods are being currently exported to Pakistan through third markets such as Dubai and Singapore, he said. He said the indirect trade worth $3.5 billion through Dubai and Muscat, should be done directly with India, which would help reduce the cost of doing business.. Besides textiles, trade between Pakistan and India could be increased in other sectors like tea, coffee, textile machinery, chemicals, sports goods, surgical equipment, leather and leather products and iron ore, he added. Opening of trade through Wagah border would not only enhance the bilateral trade but also facilitate and boost India export to other markets beyond Pakistan and Iran, he said. Meanwhile, a delegation of PHDCCI led by Mr Sachdeva will be leaving for Pakistan on October 10 to give a presentation of the event to the industrialists in Karachi, Lahore, Rawalpindi and few other towns to attract more participation.
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SAIL moves Company Law Board
New Delhi, October 5 “We filed an application last week with CLB and the merger would be complete within the next two to three months,” SAIL Chairman V.S. Jain said today. The merger would help us meet the ore requirements which have been growing while the Burnpur plant would be further enhanced and modernised, he said. “We have already chalked out a plan to invest Rs 8,000 crore for modernisation of IISCO. This also includes development of mines which are in the difficult terrain,” SAIL chief said. Mr Jain said a team of Russian experts has already made a survey of these areas. “We are working fast on exploiting the reserves along with keeping high safety and security standards, he said. Union Cabinet had on June 16 cleared the decks for merger of the two PSUs, authorising Ministry of Steel to initiate the process after getting approval of the Board of Industrial and Financial Reconstruction (BIFR). One of the major purpose of the decision was to ensure availability of high quality iron ore to SAIL’s steel plants.
— PTI
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Hero Honda enters scooter segment
New Delhi, October 5
Announcing the launch of scooter model, Mr Pawan Munjal, Managing Director, Hero Honda Motors Ltd, said: “With the entry in scooter market, we are completing our portfolio in the two-wheeler market. The company is targeting to sell one lakh scooters in the first year, that will be formally introduced in the market by mid-November and the price will be announced later.” “With Honda Motors in the scooter market, marketing is growing impressively. And with the loyal 13 million Hero Honda motor cycle households, we see a great opportunity to sell scooters to a section of them, aspiring to buy a two-wheeler for women,” he said. With a mileage of over 50 km per litre on road, he said, the gearless Pleasure will be aimed at the expanding women market. Its features include ABS body, variomatic transmission and high pulling power. Pleasure will help Hero Honda, said Mr Munjal, cater to a much wider customer base, thereby strengthening its undisputed leadership position in the two-wheeler industry. Self-start will be offered as a standard feature in the scooter. The company also unveiled its new offering in the 150-cc motor cycle segment — Achiever — further adding to its already strong product portfolio. The company will sell the 150-cc Achiever motor cycle at an introductory price of Rs 47,900 in New Delhi. Talking to the reporters, Hero Honda Marketing Head, Mr P.S. Sunder, said: “The company aims to sell 1 lakh units of Achiever in one year, starting December 2005. We have enough capacity to manufacture scooters at two plants of the company. We will soon announce our plans for the third plant.” From today, Hero Honda also started offering buyers a discount of Rs 1,001 on all its motor cycle models.
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Jubilant buys US firm for $33.5 m
New Delhi, October 5 ‘’It provides an established and robust business platform for the rapid growth and development of Jubilant’s clinical research business,’’ the company said in a statement here. Jubilant provides products and services to the global life sciences industry and reported revenues of $ 270 million in the fiscal 2004-05. “This acquisition offers a great opportunity to Jubilant to strengthen its position as a preferred outsourcing partner to pharma companies. Integration of Jubilant Clinsys, our Indian CRO, with Target will enhance business potential in the area of data management and clinical research services,’’ Jubilant Chairman and Managing Director Shyam S. Bhartia said.
— UNI
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B Natural to market juices abroad
Chennai, October 5 Speaking at the launch of one-litre tetrapack juices and yogurt here, Managing Director of the company A. Nandaa Kumar said: “We have received orders from Malaysia and Singapore. We will also shortly export our products to Eastern Europe and Africa.” Mr Kumar, said 200 ml tetra pack natural juices and yogurts were already being marketed in the domestic market. The company has good sales in north India. “We are the first in the country to introduce apple and orange flavoured non-fat
cholesterol free yogurt. These are in high demand abroad,” he said. The one- litre tetrapack products were now packaged in Vietnam but these would be packaged in India by early next year, said Mr Kumar. Mr Kumar said the consumption of various kinds of juices in India was increasing at the rate of 40 per cent each year.
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Govt invites CVs to select independent PSU Directors
New Delhi, October 5 Sources said the guidelines issued in March, 2004, had said that senior bureaucrats — having served not less than 10 years as Joint Secretary, or
university Professors, technocrats, institute heads and corporate leaders — could be appointed as independent Directors on the PSU Boards. The minimum educational qualifications for non-official Directors is the graduation degree and they should be between 45-65 years of age. The department has decided to expedite the process of formation of the panel from which independent Directors can be selected as the SEBI deadline for filling half of the positions on the Boards of listed companies is drawing near. At present there are close to 47 listed PSUs, including 18 banks.
— PTI
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BSNL not to shut Tata Tele connections
New Delhi, October 5 “All field units are requested not to encash the bank guarantee and further not to disconnect the interconnection provided to Tata Teleservice and Tata Teleservices (Maharashtra),” BSNL said in a letter to all Chief General Managers of various circles. BSNL’s decision comes in the wake of the Supreme Court’s order last week, which directed the PSU not to disconnect interconnection or encash the bank guarantee, subject to deposit of Rs 10 crore by two private firms within two weeks. According to BSNL’s estimates, Tatas have to pay about Rs 300 crore as fee for enjoying interconnection provided by the state-run company for the Tata Walky phone service. The fee, called Access Deficit Charge, became applicable following the telecom tribunal re-classifying Walky as a limited mobile service. “All field units are again requested to intimate the monthwise amount of the supplementary bills raised to Tatas as the information is required to file the reply in the Supreme Court in this case by October 10,” BSNL said. — PTI
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Electrosteel lists $35 m GDR on LSE
New Delhi, October 5 Electrosteel, a leading manufacturer of ductile iron pipes and fittings, has also offered a green-shoe option of raising another $5 million in the next 30 days. “We are delighted to welcome Electrosteel Castings to the PSM. We look forward to welcoming many more companies to PSM,” Tracey Pierce, Head, International Business Development at the London Stock Exchange, said in a statement.
— PTI
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Jet inks deal
New Delhi, October 5
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