The Tribune, Chandigarh, India

	Industry grows by 16.7 pc in Jan New Delhi, March 12 India's factory production grew 16.7 per cent in January on robust manufacturing activity, lending optimism of a faster economic recovery, although the impact of the partial rollback of stimulus is yet to percolate. Growth in January is, however, slower than December's 17.6 per cent expansion. "For the two consecutive months, there has been high growth. Perhaps, it indicates that the manufacturing sector is going to make substantial contribution to growth and it (economy) is on the path of fast recovery", Finance Minister Pranab Mukherjee said commenting on the industrial output data. In February, Mukherjee announced higher excise duty - applicable on the manufacturing sector - besides raising Minimum Alternate Tax on the corporate sector and duties on crude oil - which could temper industrial activity. "As a conservative person I will like to wait for one more month figure. But signal is quite clear and it is encouraging", Mukherjee said, adding that with the high industrial output it would be possible to achieve 7.2 per cent economic growth in 2009-10, as projected by the government. Higher output in January, when stimulus was in place, can be attributed to 17.9 per cent and 14.6 per cent expansion in manufacturing and mining sectors, respectively. "I think the economy is doing very well...we have weathered an extraordinary crisis...now we are well set to get back to 8.5 per cent (GDP growth) in 2010-11 and hope to see a nine per cent growth after that," Planning Commission deputy chairman Montek Singh Ahluwalia said while talking to reporters in Mumbai. The Central Statistical Organisation projected the economy to growth by 7.2 per cent in 2009-10, which many analysts feel, would be difficult to achieve in view of the 6 per cent recorded during the third quarter ending December. The growth rate was 6.1 per cent in first quarter (April-June) and 7.9 per cent in second quarter (July- September). Mukherjee, in the Union Budget for 2010-11, partially rolled back the stimulus by raising excise duty by 2 per cent to 10 per cent and taxes on petroleum goods that pushed up the prices of petrol and diesel by more than Rs 2.5 a litre. As these levies came into effect from the midnight of February 26, the impact of higher taxes on demand of manufactured goods and industrial output would be visible during March and subsequent months. Industry chamber Ficci said, "If the current trend is sustained over the next few months, the industrial sector would contribute significantly more to the overall growth rate". — PTI
	High-powered panel for GST on cards Tribune News Service Chandigarh, March 12 The Government of India will have to work out a compensation package for states like Punjab, Haryana and Maharashtra, who tend to lose a lot of revenue when a uniform tax code in the form of Goods and Services Tax is imposed. While Punjab and Haryana are bound to suffer losses on account of purchase tax being done away with, Maharashtra, too, will suffer a revenue loss of almost Rs 8,000 crore after the GST comes into place and octroi is rolled back. Punjab and Haryana tend to lose Rs 1,000 crore each by way of purchase tax and the two states have been vehemently opposing the move to abolish this tax once GST regime comes in place. S Dutt Mazumdar, special secretary, Central Board of Excise and Customs (CBEC) and member Central Excise, Ministry of Finance, said in order to iron out these issues, the government is contemplating a proposal to set up high-powered Committee headed by the Union Finance Minister and State Finance Ministers as Members. This committee will ensure that once GST is implemented, no state shall impose any tax arbitrarily on any item unless discussed and decision taken by the proposed committee. Mazumdar was addressing the 27th National Conference on GST organised by ASSOCHAM here today. He said it was estimated that once the GST would be fully implemented, the current base of assesses would touch 50 lakh from the existing base of 9.6 lakh with the assumption that the threshold limit both for the centre and states shall be Rs 10 lakh. Though initially, a flawless GST is not possible but over a period of time, corrective measures will be taken. Once implemented, not only the tax rate will come down from the current level of both centre and state from 27 per cent drastically but the revenue of both centre and states are likely to go up and there was no possibility of the total collection being hit. He also said though the Centre was keen to bring petroleum products and alcohol under the GST net, the states are vehemently opposing the same but the Centre government has to take a view on this.
	Lyondell ties up $3.2-bn debt New York, March 12 Having rejected Mukesh Ambani-led Reliance Industries' takeover bid, global petrochemicals giant LyondellBasell today announced tying up $3.25 billion worth of funds and securing court approval for its bankruptcy-exit restructuring plan. The company said the court has approved its $450-million pact with the creditors, under which they were to support the company's reorganisation plan. Following the court's approval for Lyondell's reorganisation plan, it would be sent to the company's creditors for their nod. Last month, Lyondell said its unsecured creditors had approved the $450-million settlement, which increases the amount they can recover from $300 million planned earlier. Earlier this week, Lyondell rejected a $14.5-billion takeover bid from Reliance Industries, saying its own reorganisation plan was superior to the offer made by the Indian firm. Weighed down by massive debts, LyondellBasell's US operations and one of its European holding companies had filed for Chapter 11 bankruptcy protection in 2009. The bankrupt petrochemical firm plans to sell senior secured bonds on a private placement basis and borrow through a senior term loan. It also plans to raise $2.8 billion in a rights offering. The net proceeds from the sale of the notes, together with borrowings and proceeds from a $2.8 billion (nearly Rs 12,703 crore) rights offering, would be used to come out from bankruptcy and to repay and replace certain existing debts, the company said. The court also approved the company to commence the "rights offering to holders of its secured debt, who will be receiving rights under the plan," Lyondell said. Lyondell will seek to list its shares on the New York Stock Exchange once the reorganisation plan becomes effective. As per the court filing, Lyondell would sell 263.9 million Class B shares, most of which will be sold in a rights offering backstopped by private equity firms Apollo Management, Ares Management and Access. — PTI
	MNP to be delayed by at least 3 months New Delhi, March 12 The mobile number portability, which enables subscribers to retain their numbers while changing operators, is likely to be delayed by at least another three months till July as a system is not yet in place to roll out the service. This was decided at an internal meeting of the Department of Telecom (DoT) today, sources said, adding the service may see light of the day earliest by July this year. Given the number of operators and as many as 12 billion calls per day, the system has to be in place and this may take some more time, they said. Asked whether by July the service will come into effect, sources said this would be the minimum period required for implementing the service. The government had earlier given the deadline of March 31 for implementing MNP across the country. Minister of State for Communications and IT Gurudas Kamat had earlier informed the Rajya Sabha that the March 31 deadline for MNP would not be met. “Since all networks are not likely to be completely ready by March 31, the deadline is not likely to be met,” he had said. Operators are required to carry various activities, including technical augmentation and upgradation of networks, carrying out required installation verification tests, establishing links with MNP operators and conducting inter-operator test. After the service providers are ready with their own inter-operator test results, a complete acceptance test is to be carried out by DoT across the networks of all the concerned service providers in all the service areas before MNP service is implemented. The revised time line will be announced soon after ascertaining the status from all the stakeholders and reasonable time required for acceptance testing, so that no network problem in call processing or completion, surfaces out after MNP services are launched, sources added. The earlier date for introducing MNP was December-end 2009 in the metros and the category A circles. But, with the DoT being unable to meet this deadline, it had then announced that this facility would be rolled out simultaneously across the whole country after March 31, 2010. — PTI
	Hero Honda keen to set up unit in HP Ambika Sharma Solan, March 12 Hero Honda has finally expressed interest in setting up a manufacturing plant in Himachal with its project manager Ajay Sinha sending a written request to the Commissioner (Industries) for making available about 400 to 500 acre of land. The unit plans to invest about Rs 2,000 crore which also includes about Rs 1,000 crore worth ancillary units. Commissioner Industries Manoj Sharma while admitting to the development said they would offer a patch of about 100 acre of land already identified and assessed by the department initially. He added that the plant was on the look out for three to four plots of 100 acre each which could be located in a periphery of about 10 km. The group was keen to invest in Sirmaur as it was close to their existing unit at Haridwar. The plant had two other units in Haryana and this will be their fourth unit. The department had already started looking for more land. The plant management had made a visit to some of the sites in February after which they have expressed keenness to invest here. The group planned to employ about 4,000 persons while 6,000 more could find employment in its several ancillaries which would come along . As per their initial projections an estimated 125 MW of power would be used for these operations. It is worth mentioning that the auto major had earlier too expressed interest in investing in Himachal but the project had run into rough weather following non-availability of adequate land. The group which dominates the 100 cc segment with its bikes passion and plans to expand their operations and was therefore on the look out of adequate land.
	Spectrum Row SC refuses to intervene New Delhi, March 12 The Supreme Court today declined to interfere with the adverse findings of the Delhi High Court against the Department of Telecom and Union Minister A Raja in the allocation of 2G spectrum. "We make it clear that the findings reached by the High Court is not interfered with in this particular case," a bench of Justices B Sudershan Reddy and SS Nijjar said. It, however, recorded an undertaking from the Attorney General G E Vahanvati that the government has not rejected the application of telecom company S Tel seeking allotment of licences for its operation. The apex court declined to interfere with the adverse findings after former Union Minister Subramanaiam Swamy, appearing in person, opposed the Centre's plea for disposing of the SLP filed by it in the wake of an understanding reached between the Ministry and S Tel company. The Delhi High Court had earlier on a petition from S Tel slammed the government for advancing the cut-off date for spectrum allocation allegedly benefitting select companies. — PTI
	Etihad to expand Indian operations Dubai, March 12 Abu Dhabi-based Etihad Airways is looking to expand its operations in India as the airline continues on its growth plan aiming to reach 100 destinations by 2020 from its current 65, the company's chief executive has said. Etihad CEO James Hogan said his company is using a variety of methods to reach a broader segment of the Indian market to help fuel future growth. "This is the first time we've had a major advertising campaign in India. It's a market where we see very strong potential," he told Gulf News. Etihad already serves eight destinations in India, including two cargo routes. Last year, the company launched an aggressive media campaign targeted at the Indian travellers residing in India and abroad. The campaign included a partnership with the matrimonial website Shaadi.com, linking users to Etihad's booking portal based on their travel plans. Unlike its older regional competitors, the six-year-old Etihad has had the benefit of starting from scratch, which has helped it survive the economic recession. — PTI
	Bajaj family to up stake in BHIL New Delhi, March 12 Industrial house Bajaj family will raise its stake in group's holding company Bajaj Holdings & Investment Ltd (BHIL) and funds for this would be garnered by part-sale of stakes in other group firms, family patriarch Rahul Bajaj said today. "We will increase our stake (in BHIL). We will sell some shares in group companies and then increase the holding (in BHIL)," Bajaj told PTI. He, however, declined to give details how much stake the promoters plan to hike in BHIL or in which group companies the family members will sell stake. — PTI