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FinMin averse to Mexico as partner in airport revamp
DGH gives clean chit to RIL
CCEA okays 5m tonne strategic oil reserves
Protect artisans’ IPRs, says PM
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Incentives announced to attract FDI in
India to add 1,200 MW wind power this year
Govt clears 44 FDI proposals
Yes Bank IPO scam: RBI seeks explanation
Nitish Kumar to woo investment
Govt asks 16 PSUs for special dividend
Oil prices cross $63
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FinMin averse to Mexico as partner in airport revamp
New Delhi, January 6 In a detailed letter written to the Cabinet Secretariat, the ministry while quoting the Committee of Secretaries, which had been given the mandate to advice the eGOM on airport modernisation, has pointed out that top players, who could have been attracted for modernisation of the two airports, are not there in the race. Besides, the bids presented by various consortia lays more stress on the development of non-aeronautical assets rather than aeronautical development. In the letter written a few days ago, the ministry is particularly harsh on ASA, Mexico, the partner chosen by Reliance while putting in its bid. While pointing out that Delhi and Mumbai airports would have attracted more top-class players, “we seem to have managed to land ourselves in a situation where the consultants have chosen two bidders who should get one airport each”. “This is compounded by the fact that of all airport operators in the world, we have chosen Mexico through technical evaluation, and not by competition.” While suggesting that the selection of Mexico without the opportunity of price discovery through competition would seem a sub-optimal outcome from the national perspective, it further points out that an analysis of the financial structure of the deal would show that there is an overwhelming incentive to maximise on non-aeronautical revenues of the airport while there is little incentive to develop the aeronautical assets, except for avoiding the penalties for non-compliance of the mandatory requirements. Incidentally, there is also a controversy surrounding the percentage of non-aeronautical revenue that has been presented in the Reliance-ASA, Mexico, bid. Sources said that while the condition put forward by the ministry was that it should be 40 per cent or more but the bid said that ASA’s revenue was 37 per cent. However, in a letter written by ASA to Finance Minister P. Chidambaram, the company itself states that its non-aeronautical revenue was 26 per cent and that it hopes to exceed it to 41 per cent by 2008. Another condition violated is that while the norms had said that the foreign partner should be a non-OECD (Organisation for Economic Cooperation and Development) country, Mexico is part of this organisation. While suggesting re-bidding for the two airports, the ministry also says that full-fledged re-bidding should not be undertaken but “a quick re-bid among pre-qualified bidders can be concluded in about eight weeks”. It says that re-bidding among short-listed bidders would offer many advantages, Firstly, it would allow all eight bidders to re-group and engage top-class airport operators. Secondly, public controversy associated with the bidding process would be cleaned up. During the re-bidding, it says, the technical parameters can be simplified so that the process is simple, inexpensive and easy to evaluate in a transparent manner and the incentive structure can be modified for establishing a balance between non-aeronautical and aeronautical development. It concludes that if concerted efforts are made for quick re-bidding among the pre-qualified bidders, a significantly superior outcome can be ensured in the interests of the economy, the airport users as well as the bidders. A delay of one or two months should not matter as it helps in awarding a 60-year concession for India’s most important airports on a sound footing, it says. Reports also suggest that the Planning Commission has already worked out an alternative plan in case short re-bidding takes place.
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DGH gives clean chit to RIL
New Delhi, January 6 The Power Ministry had sought Oil Ministry’s intervention to ensure that the Mumbai-based firm meets its commitment of supplying gas from the Krishna Godavari basin fields to the NTPC by 2008. Sources said the DGH, in a letter dated November 29, 2005 explained to the Petroleum Ministry that an 11-month delay in the grant of right of use (ROU) for the Kakinada-Ahmedabad pipeline, which was to transport gas from the KG basin to NTPC plants, was responsible for the production schedule being pushed back by a year to June, 2008. The NTPC has already gone to court against alleged delay on the part of Reliance in signing a gas sales and purchase agreement. The DGH letter said no penal action was warranted against Reliance as there was no delay on part of the firm in submission and approval of commerciality of the Dhirubhai-1 and 3 discoveries — which are envisaged to produce 40 million standard cubic meters per day of gas. According to the DGH Reliance had envisaged ROU and other statutory approval for the gas transportation pipeline by July, 2004, but the approval came only on July 16, 2005. This delay led to a 22-month delay in ordering of long lead critical items and a 24-month delay in the commencement of offshore installation, the letter said.
— PTI
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CCEA okays 5m tonne strategic oil reserves
New Delhi, January 6 Storages would be built over nine years and operating the stockpile would cost about Rs 90 crore per annum, Defence Minister Pranab Mukherjee told reporters after the CCEA meeting here. Storage facilities capable of holding 15 days of domestic demand would be built in three locations and would be completed in nine years, he said. “The project will enhance the energy security of the country, particularly during short-term oil disruptions,” a government statement said. The proposal was first approved by the government two years ago, but a decision was pending from the petroleum ministry on the cost of building the facility. The storage facilities would be managed by the Oil Industry Development Board (OIDB), a government body set up to provide loans and grants for activities such as exploration, refining, transportation and the storage of oil. A government statement said the Cabinet also decided that Indian Strategic Petroleum Reserves Ltd, which is owned by state-run Indian Oil Corp., would be made a subsidiary of the OIDB. The subsidiary company will implement and manage the strategic reserve. The strategic storages would be built at Mangalore and Vizag by Indian Strategic Petroleum Reserves Ltd (ISPRL), a subsidiary of the OIDB. ISPRL would implement and manage the strategic crude oil storages. India imports 73 per cent of its crude oil requirement and spent Rs 83,000 crore in 2004-05 on crude oil imports. The strategic reserves are envisaged as an insurance against any disruption in supplies.
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Protect artisans’ IPRs, says PM
Greater Noida, January 6 The Prime Minister said he was happy to note that IECM, like Delhi Metro had been completed on time and without any cost escalations. He hoped that the development potential of Noida would be fully exploited by the Uttar Pradesh Government and the Centre in future years. Responding to local MP Ashok Pradhan's request for an international airport at Greater Noida and extension of Metro link to it, Dr Manmohan Singh said these legitimate aspirations of the area would be met in due course. India, PM said, has a long and rich tradition for handicrafts and handloom textiles, which our craftsmen and artisans have inherited from their forefathers. But, the country had missed the opportunity after independence to showcase these products at global level. He said there was a need of sensible policies for the development of the industry. Earlier, Union Textile Minister Shankar Sinh Vaghela informed that in the textile sector, an investment of Rs 7,350 crore was sanctioned in 2004-05, which was 123 per cent of previous year's outlay. He said since the inception of this scheme, a total of Rs 35,000 crore had been sanctioned for different segments of the textile industry. Mr Amar Singh, Chairman, Uttar Pradesh Development Council, said Uttar Pradesh's share in national export was Rs 7,000 crore, which was half of the total exports of the country. PTI
adds: Asserting that India was on the "threshold of a new era" in the textiles sector, Dr Manmohan Singh cautioned that the country must take steps to protect the intellectual property of its weavers, artisans and designers. "We must evolve strategies to guard against piracy. Both government and business should work together to protect the intellectual property of our weavers, our artisans and our designers in the way that the developed world protects its products," he said.
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Incentives announced to attract FDI in food processing sector
New Delhi, January 6 As part of the official initiatives, the Budget of 2004-05, allowed under Income Tax Act, a deduction of 100 per cent of profit for five years and 25 per cent of profits for the next five years in case of new agro processing industries had been set up to process, preserve and package fruits and vegetables. Excise duty of 16 per cent on dairy machinery had been reduced to zero for the promotion of dairy processing industries while excise duty on meat, poultry and fish has been reduced from 16 per cent to 8 pc. Excise duty on food grade hexane used in edible oil industry was reduced from 32 per cent to 16 per cent and for value addition in palm oil sector, customs duty on refined palm oil was fixed at 75 per cent whereas the same for crude palm oil remains at 65 per cent. The Budget also abolished excise duty of Re 1 per kg on refined edible oil and Rs 1.25 per kg. on vanaspati and customs duty on refrigerated vans reduced from 20 per cent to 10 per cent. The government has also extended institutional and human resources support by setting up 12 food-processing training centres (FPTCs) to provide training to rural entrepreneurs in different parts of the country. Ninety entrepreneurial development programmes (EDPs) were launched to give training to 1,800 potential entrepreneurs. Besides, a financial assistance amounting to Rs 45 crores sanctioned for 171 FPI units attracting investment of about Rs 270 crore from private sector. Two new food parks, one each at Adoor in Kerala and Murshidabad in West Bengal have been set up. Additional nine food parks have been made partly operational taking the total of such food parks to 22.
— UNI
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India to add 1,200 MW wind power this year
New Delhi, January 6 Players like Reliance, ONGC and HPCL have shown keen interest in entering the sector. Almost all new wind power projects are coming up in the private sector, confining the government’s role to that of a catalyst, providing technical guidance and financial assistance. The new projects would be set up, he said, in states like Rajasthan, Tamil Nadu, Maharashtra, Gujarat and the North-East. Mr Gokhale added 24 projects had been identified in various states for the setting up of biomass
projects. These projects are being 90 per cent financed by the Centre.
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Govt clears 44 FDI proposals
New Delhi, January 6 Finance Minister P Chidambaram has given the go-ahead to Swiss company Bycell Holding AG for setting up a wholly-owned subsidiary in India at an investment of Rs 457 crore for offering GSM-based cellular services. The Foreign Investment Promotion Board (FIPB) has also approved UK-based CDC Group Plc's plan to invest Rs 74 crore for picking up stake in an asset reconstruction company to be floated by Corporation Bank and ING Vysya Bank. Standard Chartered Bank has also obtained the green signal for floating a ARC. Citigroup Venture Capital of Mauritius will invest Rs 11.49 crore to pick up stake in textile company Spentex Industries.
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Yes Bank IPO scam: RBI seeks explanation
Pune, January 6 “Prompt action will be taken in a matter of days,” he said. Under the new policy of transparency, any penalty imposed or any action taken against the bank would be put in public domain, Reddy said. The RBI had detected a large number of fake accounts in both private and public sector banks, which were opened primarily with an eye on money laundering. The IPO scam came to light last year when private sector `Yes Bank’ launched its IPO, which saw one Roopalben Panchal of Ahmedabad opening multiple fake demat accounts and subsequently raising finances on the shares allotted to her.
— PTI
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Nitish Kumar to woo investment
Patna, January 6 Agro-based industries, food processing with a major focus on “Lichchi” and sugarcane, religious tourism, BPO and IT and health are some of the prime areas in which the NDA Chief Minister would seek investment. Before leaving for Hyderabad, Mr. Nitish Kumar said he expected a new Bihar to emerge within 18 months with better infrastructure, including roads and power, besides checking the perennial flood problem. The announcement of “single window clearance\” through the Investors` Board formed yesterday, tax concessions and other benefits for the ailing sugar industry and reduction of VAT on 28 select items from 12.5 per cent to 4 per cent were part of Mr. Nitish Kumar`s measures to send strong positive signals to the prospective investors. Mr Nitish Kumar is scheduled to address NRIs on January 8, followed by interaction with some NRIs on January 9 after the Prime Minister inaugurates the conclave tomorrow.
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Govt asks 16 PSUs for special dividend
New Delhi, January 6 The 10 companies that were summoned by the Finance Ministry included BHEL, BSNL, Coal India Ltd, GAIL, MTNL, Nalco, Neyveli Lignite Corporation, NMDC, Oil India Ltd and SAIL. The meetings would be held with officials of Hindustan Aeronautics Limited, NTPC, Power Finance Corporation, Rural Electrification Corporation, Shipping Corporation of India and Nuclear Power Corporation of India Limited on
Monday. — PTI
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Oil prices cross $63
London, January 6 US February light crude climbed 75 cents to $63.54 a barrel by 1220 GMT (1750 IST). US crude prices have posted gains of more than $5 since late last week, led by fresh investor money flowing into the
market seeking to capitalise on the strength of commodities. — Reuters
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PNB merges RRBs in Haryana, UP Forex reserves fall by $6.844 b Inflation down Shivam Investments Punj Llyod LIC stake in Britannia Rel Info offer |
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