The Tribune, Chandigarh, India

	Operators split over Trai move to revise interconnect charges Tribune News Service New Delhi, May 20 Mobile telecom operators in the country are a divided lot over the Telecom Regulator Authority of India’s (TRAI’s) proposals to regulate Interconnect Usage Charges (IUC). TRAI has sought comments on whether the termination charge, a levy paid by an operator to another service provider on whose network the call ends, should be abolished. Doing away with the termination charge is likely to bring the mobile tariffs down. Currently, operators pay 20 paise a minute as a termination charge and it contributes significantly to the revenues of players, especially the old operators. Airtel and Vodafone had written to TRAI saying that that review would be a deviation from the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) and Supreme Court’s directions on the issue. However, now differences have also emerged on whether the capital expenditure and the operational expenditure should be taken into account, while deciding on the future of the IUC. New operators, who had been given licences in 2008 and are still rolling out their infrastructure, like Etisalat DB, Sistema Shyam, Uninor - are opposing capex-based IUC regime. Mature players in the market said capital expenditure made by telecom operators should be taken into account while determining the new IUC regime. “If the termination charges are not inclusive of all cost incurred, including capex (capital expenditure) and opex (operational expenditure), then it amounts to subsidisation of one operator by the other,” Bharti Airtel said in its comment. Sistema Shyam Teleservices said, “TRAI has consistently excluded capital expenditure to estimate termination charges in earlier calculations. Thus, non-inclusion of capex would be in-line with existing policies.” However, Etisalat DB stated that it supported consideration of only relevant capex for calculating IUC but that it should be scientifically justified as a cost relevant to call termination. Supporting the new GSM operators, the CDMA operator’s body Auspi had earlier said, “We support the TRAI initiative to review the IUC, which will pave the way for further reduction in the telecom tariffs and subsequent benefit to the consumers, particularly in rural areas.” Mature GSM operators control over 90 per cent of the market and the IUC contributes heavily to their revenue.
	Africa wants more business from India Tribune News Service Chandigarh, May 20 African countries are wooing industrialists from North India and want businesses to set up base in the continent. Petrochemicals, pharmaceuticals, services sector and agriculture are the focus areas, although any investment is keenly solicited. Diplomats from Nigeria, Uganda, Mozambique and Tanzania were in the city to participate in a seminar on “Africa: Business Opportunities, Focus: East Africa”. The delegates are offering land at concessional rates, besides government support to new ventures. Over 120 businessmen from the region participated in the seminar. Adebola O Labiran, acting High Commissioner of Nigeria, said that Nigeria looked forward to a more strategic partnership with India. He said Africa’s share in India’s exports rose from 4.1% to 5.8% between 2000-01 and 2009-10. “Indian companies have shown interest to invest in petrochemicals in Nigeria. Nigeria is India’s largest trading partner in Africa and India is Nigeria’s second largest trading partner,” he said. Leluu Omary, First Secretary (Economic & Political), High Commission for the United Republic of Tanzania, said, “The two-way trade volume between Tanzania and India has been steadily rising. Trade volume between the two countries has increased almost seven times from $ 162.03 million in 2001-02 to $1,158.53 million in 2009-10.” Katureebe Tayebwa, acting High Commissioner, Uganda High Commission, and acting High Commissioner of Mozambique, Maria Fatima Phumbe, exhorted industrialists to invest in Africa. India-Africa trade may touch $70 bn by 2015: Sharma New Delhi, May 20 India has become one of the leading investors in Africa with investments touching $33 billion, Commerce Minister Anand Sharma said while inaugurating the India Show in Ethiopia. Sharma is leading the Indian delegation as part of the build-up to the 2nd Africa-India Forum Summit scheduled for May 24-25 May. He added, “India has become one of the leading investors in African countries, with investments in Africa in joint ventures and wholly-owned subsidiaries touching $33 billion mark in diverse sectors like oil & gas, petrochemicals, IT, etc”. — TNS
	ONGC, OIL, GAIL to bear additional subsidy New Delhi, May 20 The government today increased the burden of fuel subsidy payable by upstream oil firms from one-third to 38.8 per cent for 2010-11. Of the Rs 78,159-crore revenue that retailers lost on selling diesel, LPG and kerosene at government-controlled rates, upstream companies ONGC, Oil India and GAIL have been ordered to contribute Rs 30,296.75 crore (38.8 per cent). Traditionally, upstream companies made up roughly one-third (33.33 per cent) of the revenues lost on fuel sales through discounts on crude oil and products they sold to Indian Oil, Hindustan Petroleum and Bharat Petroleum. “We have just being told that our subsidy contribution for 2010-11 will be 38.8 per cent instead of one-third subsidy we had been sharing for past four years,” ONGC CMD A K Hazarika told reporters. ONGC has been ordered to chip in with Rs 24,892.43 crore, OIL Rs 3,293.08 crore and GAIL Rs 2,111.24 crore. “We are giving Rs 3,832 crore more in subsidy that we had projected earlier and our profits will be adversely impacted by Rs 2,000 crore due to this additional subsidy outgo,” Hazarika said. Meanwhile, Shares of the ONGC slipped by 1.17 per cent to settle at Rs 274.05 on the BSE on fears that the move may spook its public offer. Oil India and GAIL too ended the day with losses, while the former lost 0.86 per cent to close at Rs 1,313.45, the latter shed 0.34 per cent to end at Rs 426.60 on the BSE. — PTI
	PM dedicates Bina Refinery to nation Bina (MP), May 20 Prime Minister Manmohan Singh today dedicated the world-class, 6 million-tonnes per annum Bina Refinery to the nation here today. He added the country was on track for ramping up refinery capacity 27 per cent to 238 million tonnes by 2012. The Bina refinery was set up by Bharat Oman Refineries Ltd, a joint venture promoted by Bharat Petroleum Corporation Ltd with 26 per cent equity participation by Oman Oil Company and about 1 per cent by the Madhya Pradesh government. Petroleum Minister S Jaipal Reddy said the Bina Refinery was equipped with latest technology and has the flexibility to process all types of crude oil. — PTI
	Tata Steel to cut 1,500 UK jobs London, May 20 Tata Steel's European unit Corus said on Friday it will cut around 1,500 jobs in northern England as part of a restructuring of its long products unit, which supplies clients including builders and miners. Like others in the industry, Tata Steel has faced a margin squeeze since last year, as the price of raw materials increases but demand from sectors like construction remains muted. Tata Steel said the planned shake-up to refocus its business on high-value markets would involve closing or mothballing parts of its Scunthorpe plant in northern England as it cuts costs. "The continuing weakness in market conditions is one of the main reasons why we are setting out on this difficult course of action. Another is the regulatory outlook," Karl-Ulrich Koehler, Chief Executive of Tata Steel's European operations, said. "EU carbon legislation threatens to impose huge additional costs on the steel industry." He added there was also uncertainty over further carbon cost increases from the UK government, which he warned risked undermining competitiveness. The job cuts could also affect operations in Teeside, northern England.— Reuters
	Europeans race to nominate IMF chief Brussels/Washington, May 20 European leaders raced on Friday to nominate a successor for fallen IMF chief Dominique Strauss-Kahn before a G8 summit in France next week, with French Finance Minister Christine Lagarde in pole position.German Chancellor Angela Merkel all but endorsed Lagarde on Friday, telling a Berlin news conference: "Among the names mentioned for the IMF succession is French Minister Christine Lagarde, whom I rate highly." But diplomats said some European Union countries questioned whether the highly regarded corporate lawyer, who would be the first woman to head the IMF, could be anointed before a special court for ministers decides next month if she should be investigated in a pending French legal case. Since Strauss-Kahn’s resignation, EU governments have rushed to find a European replacement before emerging nations, which have long demanded a bigger say in running the IMF, can mount a bid. Jean-Claude Juncker, who chairs euro zone finance ministers, and Italian Prime Minister Silvio Berlusconi endorsed Lagarde on Thursday. — Reuters Strauss-Kahn gets bail Former IMF chief Strauss-Kahn will leave jail on bail on Friday and be placed under round-the-clock house arrest after being indicted for the alleged attempted rape of a New York hotel maid last Saturday. He denies the charges and has vowed to prove his innocence. The package of conditions set by a judge on Thursday to let him leave jail - $1 million cash bail, a $5 million insurance bond and house arrest at a New York apartment under armed guard and electronic monitoring - was due to be signed on Friday.
	Forex reserves down by $2.042 bn Mumbai, May 20 The country's forex reserves slid for the second consecutive week falling by $2.042 billion to $307.49 billion on the back of a decline in the foreign currency assets. The total foreign exchange reserves had gone down by $3.98 billion to $309.54 billion in the previous reporting week. Foreign currency assets, the largest component of the total reserves, fell by $1.98 billion to $276.14 billion for the week ended May 13, the Reserve Bank said in its weekly data released today. Foreign currency assets expressed in US dollar terms include the effect of appreciation or depreciation of the non- US currencies such as the euro, pound and yen, held in the reserves, the Apex bank said. India's gold reserves were unchanged at $23.79 billion during the reporting week, the data said. Both the special drawing rights (SDRs) and reserve position in the IMF also witnessed a decline during the week, the RBI said.— PTI
	Mamata to return 400 acres in Singur Kolkata, May 20 In her first major policy decision, West Bengal Chief Minister Mamata Banerjee today announced that her government would return 400 acres from the abandoned Tata Motors plant at Singur to farmers who unwillingly parted with their land. "The first decision taken in the Cabinet is to return 400 acres from the abandoned Tata Motors plant in Singur. If the Tatas are willing, they can set up the factory on 600 acres," she said at her maiden press conference after holding the first Cabinet meeting at Writers' Buildings. To whether she would make the agreement between the Tatas and the previous Left Front government public, she said, "We have asked for a copy of the agreement. The agreement will be made public. I believe in transparency." — PTI