The Tribune, Chandigarh, India

	Food inflation rises to 17.65 pc New Delhi, April 22 Food inflation rose to 17.65 per cent in the second week of April as essential items such as milk and rice remained costly. This may push the overall inflation to double digits. The Reserve Bank on Tuesday raised key rates to squeeze money supply in order to tame inflation. The 0.43 percentage points rise in food inflation during the week ended April 10, from 17.22 per cent a week earlier, may provide more ammunition to the Opposition to turn the heat on the government. The main Opposition BJP, yesterday, held a rally in the national capital to protest the unrelenting rise in prices. However, certain food items such as potatoes turned cheaper by over 30 per cent during the week because of a supply glut in many markets. Onion prices fell by over six per cent year-on-year. However, prices of pulses were up 28.77 per cent, that of milk by 22 per cent, fruits by 18.81 per cent, wheat by 11.18 per cent and rice by 9.33 per cent. Analysts said food inflation would ease once the rabi (winter) harvest hits the markets by the middle of May and signs of a normal monsoon are indicated by the Meteorological Department, which will come out with the forecast tomorrow. "We have to see the monsoon outlook to understand how it will ease out the inflationary expectations. Monsoon will decide the future trajectory of food inflation," Yes Bank chief economist Shubhada Rao said. Axis Bank Economist Saugata Bhattacharya said good rabi crops could bring about some moderation in food inflation. "Monsoon will play a deciding factor," he added. Many economists fear that rising food prices will further push overall inflation further up, as manufactured products and fuel items are also witnessing inflationary pressure. "WPI inflation will remain around 10 per cent in April. If the pressure on food prices remain, inflation will move up," Crisil principal economist DK Joshi said. Many analysts feel rising inflation may prompt further tightening of the monetary policy by the apex bank. "If the WPI remains sticky around 10 per cent it might prompt RBI to react. RBI is of the view that inflation will come down, if it doesn't RBI will not hesitate to act in between policies," Joshi said. The RBI too has hinted of further actions before the next policy review to tackle rising inflation. — PTI
	UP power corp to set up 1,980 MW plant Tribune News Service Lucknow, April 22 The Uttar Pradesh Power Corporation Limited (UPPCL) today signed a memorandum of understanding (MoU) with Bajaj Hindustan Limited to set up a 1,980 MW thermal power plant in Lalitpur distict of Bundelkhand area, which will pass on 90 per cent of its production to the state. The MoU was signed between UPPCL chairman and managing director Navneet Sehgal and Bajaj joint managing director Kushagra Bajaj in the presence of state Energy Minister Ramveer Upadhyaya and Chief Secretary Atul Gupta. The proposed power project would be set up on 1,500 acres of land at Mirchawar village, approximately 60 km from the Rajghat Dam in Lalitpur. It is expected to start production in 2015. The energy policy announced by the state government last year had allowed sugar mills to set up coal-based projects at their units. A number of mills, including Bajaj, had submitted proposals. Two days ago, the state cabinet had approved a proposal allowing Bajaj Mills to set up plants of 90 MW each at its five sugar mills in the state. The MoUs for these were also signed today. The state would start getting power from these units from 2011, said Sehgal. Earlier, NTPC was to set up a proposed 4,000 MW coal-based thermal power project in Lalitpur. It was to be implemented by a joint venture company to be floated by the NTPC and the state government, with each partner holding 50 per cent equity. It was proposed to be funded by 70 per cent borrowing from the financial institutions and 30 per cent to be borne by the state government. However, sources claim that the agreement did not work out due to disagreement in the power sharing formula. While the NTPC quoted central government rules to claim that it could not give more than 50 per cent of the power generated to the state government, the UP government was not ready to accept as little as 50 per cent.
	56 Indian cos in Forbes’ Global 2,000 list New York, April 22 As many as 56 Indian companies, including Reliance Industries and State Bank of India, have been named among the world’s 2,000 most powerful listed companies, according to US magazine Forbes. The ‘Global 2000’ list of the biggest and most powerful companies worldwide has been topped by US banking giant JPMorgan Chase and is followed by General Electric, Bank of America and ExxonMobil. Among Indian high performers, Mukesh Ambani-led Reliance Industries leads the pack and has been ranked at the 126th place in the global list. Other Indian companies named in the list include State Bank of India (130), ONGC (155), ICICI Bank (282), Indian Oil (313), NTPC (341), Tata Steel (345), Bharti Airtel (471), Steel Authority of India (502), Larsen & Toubro (548) and HDFC Bank (632). The global rankings span 62 countries, with the US (515 members) and Japan (210 members) dominating the list as usual, although the number of companies from developing nations in the Global 2000 is fast increasing. This year, the countries that gained the most ground are mainland China (113 members), India (56 members) and Canada (62 members), the magazine said. Forbes’ ranking of the world’s biggest companies used an equal weighting of sales, profits, assets and market value to rank companies according to size and this year’s list reveals the dynamism of global business. “In total, the Global 2000 companies now account for $30 trillion in revenues, $1.4 trillion in profits, $124 trillion in assets and $31 trillion in market value. All metrics are down from last year, except for market value, which rose 61 per cent,” Forbes said. Two companies from the Anil Ambani Group, Reliance Communications (742) and Reliance Infrastructure (1,702), have also made it on the list. Other Indian companies named on the list include state-owned Punjab National Bank (695), Tata Consultancy Services (741), HDFC (783), Infosys (807), DLF (923) and Hero Honda Motors (1,571). — PTI
	Australia sees big business potential in North India Ruchika M. Khanna Tribune News Service Chandigarh, April 22 Punjab, Haryana and Himachal Pradesh are big markets for exploring business initiatives with Australia. With the three states being strong in agri-business, manufacturing sector, tourism and hospitality, Australia is looking at a huge opportunity for business in this region. Talking to TNS here this evening, Michael Carter, trade commissioner, Australian Trade Commission, said because of good opportunities for trade between North India and Australia, they are setting up a trade office in Chandigarh. “We are not just looking at North India as an export destination, but also as a destination for Australian businessmen to have their outward investments. The trade office will also act as a facilitator for Indian businessmen to invest and start business in any part of Australia,” he said, adding that Australian trade offices are also being set up in Jaipur, Pune, Ahemdabad and Kochi. Carter said Australia is looking at exporting coal, gold and copper, agri-products like wheat and pulses, besides wool, wine and processed food and beverages. It is also seeking investment from business houses here in agri-business, information technology, financial services, tourism and hospitality sector in Australia. “There is a huge opportunity for agri-business, especially in Australian almonds and financial services sector for businessmen in North India to invest in Australia,” he said. He said the bilateral trade between India and Australia was to the tune of $21 billion (goods worth $17 billion are exported to India and goods worth $4 billion are exported from India to Australia). “Though the trade between the two countries, mainly in items like coal, gold and copper is growing at almost 20 per cent a year, we are expecting an overall growth of 10 per cent in bilateral trade between the two countries,” he said.
	Air India delays staff salary by a month New Delhi, April 22 State-owned Air India delayed payment of March’s salary to its employees by a month as it had to meet year-end expenses for various purposes, Parliament was informed today. “The salary for the month of March, 2010, was paid to the employees of Air India on April 7, 2010,” Minister of State for Civil Aviation Praful Patel said in a written reply in the Lok Sabha. The above postponement was necessitated due to committed March year-end payments to oil companies, Airports Authority of India, foreign and Indian vendors, and because of repayment of loans, Patel said. He said the government was continuously monitoring the financial position and restructuring plan of Air India. Replying to another question, the minister said Air India had decided to close its offices at Lahore and Karachi in Pakistan due to the lack of operations from these cities. — PTI
	Leyland-Nissan to roll out LCV in 2011 New Delhi, April 22 The Hinduja Group yesterday said the joint venture between flagship company Ashok Leyland and Nissan would roll out a light commercial vehicle (LCV) in 2011. "Things (JV with Nissan) are on schedule and everything is moving along. The first LCV will be rolled out in 2011," Hinduja Automotive executive vice-chairman V Sumantran told reporters here. He said the partners are "along the way in designing the vehicle", but declined to share further details. The two firms had earmarked an investment of Rs 2,300 crore for setting up a joint production facility near Chennai. — PTI
	IMF backs monetary policy by RBI Washington, April 22 The International Monetary Fund (IMF) has said the tightening of monetary policy by India is an 'appropriate' step, as the country is faced with high inflation and needs to consolidate the fiscal measures initiated during the slowdown. "India is relatively more closed, and has relied on stimulus to support growth. The main challenge will be to ensure durable fiscal consolidation, including by implementing fiscal and other structural reforms," Abdul Abaid, senior economist in the World Economic Studies Division of the IMF, said here yesterday. He said in relation to other countries in the Asian region, India has high inflation, and the tightening of monetary policy currently under way is appropriate. — PTI
	Corporate Results Sterlite net up 65 pc Mumbai, April 22 Telecom transmission solutions provider Sterlite Technologies today said its net profit rose by 65 per cent to Rs 72 crore for the fourth quarter ended March 31, 2010, over the same period last year. Net revenues of the company rose to Rs 662 crore for the quarter ended March 31, from Rs 577 crore in the same period previous fiscal, Sterlite Technologies said. The board of directors have proposed a final dividend of Rs 0.50 per share on the face value of Rs 2 per share to the shareholders, awaiting shareholders approval. M&M Financial Mahindra & Mahindra Financial Services today said its consolidated net profit rose by 31 per cent to Rs 144 crore for the fourth quarter ended March 31, 2010, over the same period last year. Total income rose to Rs 483 crore for the fourth quarter ended March 31, from Rs 402 crore in the same period previous fiscal. ACC Cement Cement manufacturer ACC Ltd today posted a consolidated net profit of Rs 392.87 crore for the quarter ended March 31. However, due to the company's acquisition of a 100 per cent stake in Encore Cement & Additives, as well as acquisition of 100 per cent equity in National Limestone Company, in the last financial year, the results for the quarter ended March, 2010, are not comparable with the corresponding period of the previous fiscal, ACC said. Net sales of the company stood at Rs 2,240.37 crore for the March quarter, while the same was Rs 2,163.99 crore during the corresponding period of the last fiscal. — PTI
	Spectrum Allocation Raja ready to face probe Tribune News Service New Delhi, April 22 The ghost of 2G spectrum distribution seems to be following Telecom Minister A. Raja where ever he goes. After clarifying in the Lok Sabha on Monday and asserting that there was no loss to the exchequer at the time of the spectrum distribution in early 2008, the Telecom Minister today faced uneasy questions in the Upper House also. As a result Raja informed the members in the Rajya Sabha that he was ready to face any scrutiny. Facing allegations of giving spectrum to new telecom operators at throwaway prices, Telecom Minister said, “I am aware that there is a CBI case on 2G spectrum and we are ready to face any scrutiny,” he said. There are allegations that the process of 2G licences distribution bundled with start-up spectrum in early 2008 caused a whopping over Rs 26,000 crore loss to the exchequer. Raja had on Monday asserted that there was no loss to the exchequer due to allocation of 2G spectrum to some telecom companies in 2008. “2G spectrum is only alloted to the Unified Access Services licencees as per the service licensing conditions, subject to availability of spectrum,” Raja had said. Raja’s assertion came in the wake of the apex auditor CAG seeking explanation from the Department of Telecom on various issues, including distribution of licences and allotment of spectrum. The Comptroller and Auditor General of India had sent a note to DoT seeking clarification on whether the decision to advance the cut-off date to give licences to new companies was arbitrary and that has resulted in a loss of a whopping over Rs 26,000 crore to the government. Nine new companies, including Unitech, Shyam Sistema, Datacom, Swan Telecom, Loop Telecom were given licenses in 2008 at Rs 1,658 crore along with start-up 4.4 MHz spectrum, while Anil Ambani-led RCom and Tata Teleservices were allowed dual technology to offer mobile services. Later, Swan Telecom and Unitech sold off their equity to foreign investors at huge profits leading to a political storm also. With regard to the ongoing 3G spectrum allocation, Raja said, “I would like to say that the 3G spectrum auction is an open process, and the Central Vigilance Commission and other agencies are monitoring it.”