Washington/New Delhi, August 8
India may be among one of the countries which could lose preferential trade benefits granted by the US as the Congress complained that these countries were not adopting a stand that is beneficial for solving the stalemate in WTO talks.

United States Trade Representative Susan Schwab has said that Washington wanted to determine whether certain countries should be excluded from the Generalised System of Preferences programme which grants duty-free treatment for goods from 133 developing countries.

The review follows complaints from Capitol Hill that countries like India and Brazil, which avail trade benefits, have not been helpful in efforts to achieve agreement in the Doha Round of global trade talks.

Chandigarh, August 8
Hero Honda has called off its Rs 600- crore project in Himachal Pradesh, which will now set up in Uttaranchal at an investment of Rs 1900 crore.

Senior officials of the company said that the company had been issued a letter of allotment for a 275-acre industrial plot in the Hardwar Integrated Industrial Estate by the State Industrial Development Corporation of Uttaranchal. The plant, with an initial capacity of five lakh units, would be operational by May, 2007. By the end of 2010, the plant would have a capacity to manufacture 1.5 million units a year.

Initially, Hero Honda had planned to set up the plant near Baddi in Himachal Pradesh. In June this year, the Himachal Government had granted initial permission to the company to set up the plant through the Single Window Clearance Authority.. The company was allotted about 1800 bighas of land.

However, the project ran into controversy as the land allotted to it was forest land and would have attracted provisions under the Forest Conservation Act (FCA) and Net Present Value (NPV). Under pressure from the Opposition and environmentalists, the government of Himachal Pradesh asked Hero Honda to look for an alternative site. “We had offered them land in Baddi, Barotiwala or Swarghat. Had the project been set up in the state, it would have boosted industrial expansion,” said Himachal Industries Minister Kuldeep Kumar.

Company sources said that with because of the sops offered by the Uttaranchal Government over and above the tax benefits offered to hill states, like creating proper infrastructure near the site, would help the company maximise its profit margins. “The new plant will enable the company to cater to the future market demands.

“ In the first ‘phase, we will invest Rs 300 crore, and the investment will be increased to Rs 1900 crore by the time the project is complete in 2010,” said a senior official. Other than the plant for manufacturing the bikes, ancillary units, too, would be set up there, he added 

New Delhi, August 8
The government said today the oil market companies had been granted freedom to hike the prices of petroleum products every month keeping in view the rise in the international crude prices.

“The government has permitted autonomous adjustments in fuel prices by the public sector oil marketing companies every month. The oil marketing companies have so far not effected any adjustments in prices since the last price increase on June 6, 2006,” Minister of State Dinsha Patel informed the Rajya Sabha today.

Despite an unprecedented rise in the international prices, he said, the government did not increase the prices of PDS kerosene and LPG to protect the interest of common man and the weaker sections of society.

The total burden on account of the escalated international prices of crude was estimated at Rs 73,500 crore for the current year. The government along with oil companies had decided to absorb over 87.5 per cent of this burden, leaving only the balance 12.5 per cent to be borne by the consumers by way of an increase in the petrol and diesel prices, the minister said.

The Union Cabinet had on June 5 raised the petrol and diesel prices by Rs 4 and Rs 2 per litre, respectively, and given autonomy to public sector retailers to raise the prices when the Indian basket of crude stays above $70 a barrel for a month.

Officials said the average price of Indian basket of crude at the time of last hike was $66-67 a barrel. However, the July average stayed well over $71 a barrel but public sector oil firms decided not to pass on the surge on August 1, when the monthly revision was due. During current month, the Indian basket has averaged over $73 per barrel, officials said.

The government is to issue oil bonds worth Rs 28,300 crore for the current fiscal to partly compensate the revenue loss on selling petrol, diesel, LPG and kerosene below their production costs.

The minister said the oil marketing companies were expected to implement the marker system in kerosene all over the country by October. Under the proposed system, the marker will be dosed in kerosene at the terminals/depots of the companies. Later, diesel and petrol samples would be drawn, he said, to detect whether the same had been adulterated with the marked kerosene. In the case of adulteration, punitive action would be taken. 

New Delhi, August 8
The government may permit Reliance Industries Limited (RIL) to export surplus LPG from the west coast and allow it to import on the deficit east coast to make huge savings on freight cost.

"RIL's domestic realisation should at least equal their export realisation failing which they should be allowed to export a part of their production, after meeting their domestic obligations," a Petroleum Ministry note said.

Currently, export of LPG is not permitted and RIL has to sell LPG produced at its Jamnagar refinery in Gujarat to public sector oil marketing companies. During the lean demand period of April-September, oil companies do not take the entire RIL produce.

"It is also a fact that the export option is better economically for RIL in view of the prevailing high prices in the international market, while domestically the prices are controlled and RIL is not compensated for domestic sales as the PSUs are for their under-recoveries," the note said.

At a recent industry meeting convened by the Petroleum Secretary, RIL President P Raghavendran suggested that RIL may be allowed to import LPG in the deficit east coast and export equivalent quantum of LPG from the surplus Jamnagar refinery.

Currently, LPG is moved from west to east coast and involves huge freight and accepting RIL's suggestion would save Rs 900 ($20) per tonne.— PTI

Kolkata, August 8
Tata Tea Ltd is eyeing acquisitions in the USA for entering the beverages sector in a big way, Vice-Chairman R.K. Krishna Kumar said today.

Speaking to reporters on the sidelines of the Tata Tea annual general meeting here, he said the USA was the key market for the beverages business out of which exports could be made to Europe, Russia and then China.

The Tata Tea group, which also includes Tata Tea (GB) Limited of the UK, was aiming at a combined turnover of Rs 7,000 crore in the next three years from Rs 3,000 crore at present.

Mr Krishna Kumar said that the Tata Tea group was looking at both inorganic and organic routes for growth. The company was looking at an acquisition which was bigger than Tetley of the UK.

Mr Kumar said that Tata Tea, although a plantation company, would now focus more on the beverages segment.

Meanwhile, Tata Sons Ltd, which has interests across businesses, including automobile, steel, power, finance, beverage, IT and hospitality, is keen on raising its holding in group companies, but denied the move stemmed from fear of hostile takeovers.

“We are not scared of any hostile moves,” Tata Sons Director K. Krishna Kumar told reporters here, adding that the intention was to consolidate holdings in various group firms. Cross-holdings in various companies were also being looked into and “these would be restructured,” he said. However, some strategic cross-holdings would remain in the interest of the country and shareholders.

In July, Tata Sons increased its stake in Tata Steel through the preferential route — a development that followed Tata Sons Chairman Ratan Tata’s address to shareholders at that company’s AGM that the only safeguard against hostile takeovers was to increase the promoter’s shareholding. Mr Tata told shareholders at Tata Tea’s annual general meeting here today that there were ways and limits to raise holdings in the company. However, the company was not planning any open offer at the moment.

In this context, Mr Krishna Kumar, who is also the Vice-Chairman of Tata Tea, said: “We would like the group’s holding to go up to 50 per cent.” At present, Tata Sons and other group companies’ holding in Tata Tea is 28 per cent.— PTI 

Amritsar, August 8
The local chapter of the Confederation of Indian Industry (CII) stated that the extension of tax holiday to Himachal Pradesh would once again trigger flight of capital out of the border areas.

The convener of the CII, Mr Gunbir Singh, said here today that it was indeed a cruel joke with the industrialists of this region which had been pressing for a similar package for the past many years. He said the industry had suffered many blows, including black period of militancy during 80's and 90's besides two wars with Pakistan and not to mention the holocaust of Partition.

The Punjab Pradesh Beopar Mandal urged the Chief Minister Amarinder Singh to request the Centre to grant tax concessions to the state on a par with HP.

Mr Arun Kapoor, president of the Micro Nutrient Manufacturers Association, lamented that the Central Government was ignoring one of the most important industrial zone of the country.

He pointed out that the government had even failed to pay the long-pending capital subsidy due to the industry for almost a decade now. 

New Delhi, August 8
Following concerns expressed by the UPA chairperson over the adverse impact of India’s free trade agreements with various nations, the government has set up a committee headed by Planning Commission member Anwarul Hoda.

The committee will look into measures to shield domestic manufacturers from the impact of the inverted duty structure arising out of free trade agreements.

The committee will look into the problems arising from the inverted duty structure (where duty on inputs is higher than finished products) arising out of various trading agreements and suggest ways to address it.

The committee will also have a look at the trading agreements in force and those in the pipeline, stated a statement issued by the government today.

The committee has been formed because the inverted duty structure would put an additional burden on Indian manufacturers and make their products cost-ineffective.

The industry chambers and associations that are facing problems on account of the fact that raw material is being imported at a higher duty than the finished product due to trade agreements have been asked to send their views to the committee by August 18.

New Delhi, August 8
After A V Birla Group took full control of Idea Cellular, the company has successfully refinanced a loan of Rs 4,224 crore — one of the largest refinancing arrangement in the recent times.

"The refinancing arrangement will help the company save Rs 80 crore annually as the refinancing has been done at a competitive rate," Mr Vikram Mehami, CEO, Idea Cellular, said.

The refinancing of the loan was lead managed by the IDBI and a host of banks, including HDFC, UTI Bank and Exim Bank, participated in the exercise, Mr Mehami said.

The company plans to invest about Rs 2,300 crore in the existing operations of eight circles and has also applied for a licence for all the remaining 12 circles to have a pan-India presence.

Idea is currently offering services in Haryana, Uttar Pradesh (west), Delhi, Gujarat, Maharashtra and Goa (one circle), Madhya Pradesh and Chhattisgarh (one circle), Andhra Pradesh and Kerala and has received a licence for Himachal Pradesh, UP (east) and Rajasthan.

Company officials said services in the three circles of Himachal Pradesh, UP (east) and Rajasthan, where the company has invested over Rs 600 crore, would start before Divali this year. — PTI 

London, August 8
Mittal Steel today announced details of the sell-out right that entitles the remaining shareholders of Arcelor to sell their shares to the company within three months following the end of the ongoing subsequent offering period.

The remaining shareholders of Arcelor may sell their shares solely for cash which the Luxembourg Commission de Surveillance du Secteur Financier has indicated was the fair price of the all-cash consideration to be offered in the sell-out proceedings. The shares can be sold from August 18 to November 17.— PTI