New Delhi, August 7
Given the drop in manufacturing activity, the government is taking steps to improve the performance of the manufacturing sector, including the creation of industrial corridors.

Industry Ministry informed the Lok Sabha in a written reply that some measures to improve the performance for the sector include announcement of National Manufacturing Policy (NMP), simplification and rationalisation of the foreign direct investment (FDI) policy and implementation of Delhi-Mumbai Industrial Corridor (DMIC) project.

Some of the additional measures that have been considered necessary by the government for facilitating increase in industrial production include creating a project monitoring cell for stalled infrastructural and industrial projects with high investments and approving commencement of preparatory work on creating Chennai-Bengaluru Industrial Corridor (CBIC), Bengaluru-Mumbai Economic Corridor (BMEC) and Amritsar-Delhi-Kolkata Industrial Corridor (ADKIC).

Several new industrial cities are being unlocked in the DMIC project. The projects are to be implemented in partnership with the state governments. The process of land acquisition and land procurement is in progress in the states of Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra and master planning has started in Uttar Pradesh.

The industrial cities that are coming up include Manesar-Bawal investment region in Haryana, Khushkera-Bhiwadi-Neemrana investment region in Rajasthan, Dadri-Noida-Ghaziabad region in Uttar Pradesh. The industrial cities would be launched with the development of townships which are envisaged to be completed by the end of 2019.

In a related reply, the Industry Ministry informed that a meeting of the High Level Committee on Manufacturing (HLCM) was convened on July 9 to discuss the strategy for boosting competitiveness and output in two sectors - textiles and steel - and for formulating a long-term approach in three strategic industries - civilian aircraft manufacture, electric and hybrid vehicles and advanced materials and composites.

The panel took a decision for the development of civilian aircraft of a 70-100 seater range to begin with, in India. A steering group under NMCC chairman has been tasked with working out the modalities of this programme.

Mumbai, August 7
Scores of small diamond traders across Western India face the prospects of shutting down following the fall of the rupee to below 60/dollar.

As per owners of cutting and polishing units, the fall in the rupee has made it difficult for them to import rough stones which have become expensive. The worst is polishers don’t know if the rupee will stay low several weeks down the line when they are ready to export the cut and polished stones. "Rough stones are 25-30 per cent more expensive as compared to their price earlier this year and if the rupee recovers after some weeks, we will suffer losses," says Amitlal Sanghrajka, who owns cutting and polishing operations in Mumbai and Surat.

According to Sanghrajka, owners of many small units have decided to wait and watch rather than take the risk of importing rough stones.

The buzz among diamond merchants is that scores of units in Surat, which is the hub of cutting and polishing industry, are retrenching employees. In August alone, around 25,000 workers have been rendered jobless, according to traders in Mumbai.

Sources at Zaveri Bazaar, the hub of gold and diamond trade in Mumbai, say many importers have hedged their receivables anticipating the rupee to appreciate against the dollar. These importers are now stuck with huge foreign exchange losses after the rupee fell to more than 61 to the dollar. In addition, the traders who buy polished diamonds from intermediaries have stopped taking delivery as they have to pay in rupees which would eat into their margins.

The positive side to the story is that the big players in the diamond trade are said to be raking in big bucks. These companies with international operations have been able to buy rough stones from global biggies like De Beers well before the rupee's crash. They are reaping a windfall by exporting polished stones against the depreciated rupee.

But with nearly half the trade in the hands of small players, stories of small diamond merchants defaulting on their dues is cropping up at Mumbai's Zaveri Bazaar. At least two traders vanished after they were unable to pay their creditors. Those in the industry are worried that more small players could default throwing the entire industry in a crisis. 

New Delhi, August 7
Oil regulator Directorate General of Hydrocarbons (DGH) has recommended an additional penalty of $781 million on Reliance Industries (RIL), taking the total fine on the company for producing less than projected natural gas from KG-D6 fields to $1.786 billion.

The DGH last month recommended to the Oil Ministry that $781 million of the cost RIL has incurred in KG-D6 fields be disallowed for producing only an average of 26.07 million cubic meters per day of gas as against the target of 86.73 mmcmd in 2012-13.

This will be in addition to $1.005 billion in cost recovery already disallowed for output falling short of targets during 2010-11 and 2011-12, a top official said.

"DGH had in July 22 letter proposed for disallowance of cumulative cost recovery amounting to $1.786 billion ($1.005 billion plus $781 million) up to FY 2012-13 towards creation of excess capacity," he said.

It blamed RIL for not drilling its committed quota of wells leading to fall in production, resulting in a large chunk of production facilities lying unused or under-utilised.

RIL has built infrastructure to handle 80 mmscmd of output but is currently producing less than 14 mmscmd.

As per the production sharing contract, RIL and its partners BP Plc and Niko Resources are allowed to deduct all of the capital and operating expenses from sale of gas before sharing profits with the government. — PTI

New Delhi, August 7
A Parliament panel has asked the government to review its decision to raise natural gas price and come out with a fresh pricing which is more balanced.

It has said the government needs to do a thorough impact study of gas pricing on different sectors of the economy like power, fertiliser, steel and small-scale industries, especially those impacted by pollution control laws.

The Parliamentary Standing Committee on Finance headed by BJP leader Yashwant Sinha in its report on economic implications of revision of natural gas pricing has recommended that the transition from a regulated to a fully market-based system should be staggered.

However, there were some dissent letters to the panel’s report from members, including Sanjay Nirupam, Dharmendra Yadav, Naresh Agarwal and Yogendra Trivedi.

The report said the government needs to rethink certain elements in the pricing formula suggested by the Rangarajan panel, which only serves to push the Indian gas price higher than it ought to be. It also advocated a cap on the suggested price under the formula and there should be a ceiling price so that gas producers are not allowed to reap unlimited gains.

Since the gas pricing will have implications for power tariffs, the panel said state governments also need to be consulted. “Instead of hurrying with decisions carrying wider import and ramifications for the country, broader consultative process involving all stakeholders should be put in place”, it said.

Noting the differences in the government on the issue, the report said, “Divergence in views within the government can’t be ignored on such a major issue and valid concerns expressed by key economic ministeries of the government like power, fertiliser and steel should be fully addressed before finalising the policy”.

Sanjay Nirupam of the Congress in his dissent note said for no apparently justifiable reason the report was adopted in undue haste despite the fact that it is to be implemented with effect from April 2014.

Mumbai, August 7
Following the grant of additional powers by the Central Government recently, market regulator SEBI has kicked off a major restructuring drive by unveiling plans to hire more officers.

The regulator said it was hiring 75 officers in addition to the 600 already on its rolls. According to the agency, they will be recruited as Grade A Officers who will have to appear for a written examination followed by an interview.

These officers are likely to be posted in different parts of the country as SEBI plans to open more offices as part of its expanded role.

Recently, the government enacted an ordinance to empower SEBI to crack down on non-banking finance companies and unlisted companies that come up with ponzi schemes with an aim to cheat investors. The decision to grant additional power to SEBI follows the crash of West Bengal's Saradha group of companies where thousands of investors have lost crores of rupees.

"SEBI always faced a problem of shortage of manpower and we have begun the process of remedying this," said a SEBI official.

Last year, SEBI hired international consultant Oliver Wyman, who recommended that the agency required at least 1,000 officers for effective functioning.

According to officials, the main recommendation of the consultant was that SEBI work towards increasing the depth of the Indian capital markets so that more household savings are channelled into this method of investment. 

New Delhi, August 7
HDFC Bank has raised benchmark lending rate by 0.2 per cent, a move which will make auto, corporate and other loans linked with base rate or the minimum lending rate costlier.

“The base rate of the bank has been increased to 9.80 per cent from 9.60 per cent with effect from August 3,” HDFC Bank treasurer Ashish Parthasarthy said.

Base rate is dependent on cost of deposit which has gone up in the recent past both on account of RBI measures and increase in short-term deposit rates, 
he said. — PTI

New Delhi, August 7
The Reserve Bank of India today said it imposed a fine of about Rs 5.6 lakh on State Bank of India (SBI) for violation of currency chest norms. "The RBI has imposed a penalty of Rs 5,62,555 on July 12, 2013, on SBI for violation of the terms of agreement with RBI for opening and maintaining currency chests," the central bank said. — PTI

BRIEFLY

Re closes at fresh low of 61.30/$
Mumbai: After two days of gains, the rupee tumbled 53 paise to a fresh closing low of 61.30 against the dollar amid bearish local stocks and renewed dollar demand from importers. The local currency was also dragged lower by indications that the US Federal Reserve would taper its bond-buying programme. Fresh capital outflows added to the negative sentiment on the rupee, a dealer said. —PTI

Gold tumbles by Rs 280
New Delhi: Gold prices fell for the third straight day by losing Rs 280 to Rs 28,340 per 10 grams in the national caital on Wednesday on heavy selling by stockists driven by a weak global trend. Silver also fell by Rs 695 to Rs 41,410 per kg on poor offtake by industrial units and coin makers. — PTI

Su-Kam rooftop solar products
Chandigarh: Su-Kam Power Systems on Wednesday launched a range of rooftop solar products for Punjab. The products are designed to meet the power needs of a wide range of consumers, starting from small households to large institutions. It has launched rooftop products in the capacities ranging from 250 VA to 500 KVA. — TNS

Kalyan Jewellers forays into Punjab
Chandigarh: Jewellery retail chain, Kalyan Jewellers will inaugurate its first showroom in Mohali and 51st in India on August 25. This will be followed by two more showrooms in Amritsar and Ludhiana. This was announced by TS Kalyanaraman, chairman, Kalyan Jewellers, here on Wednesday. — TNS

Godrej Properties to raise Rs 700 cr
New Delhi: Realty firm Godrej Properties said on Wednesday it will raise up to Rs 700 crore by issuing 2.15 crore shares to existing shareholders through rights issue at a discount of around 30 per cent. The company would issue 8 shares for every 29 shares held by shareholders as on the record date, which is August 20. The issue price has been fixed at Rs 325 per share, which is almost 30% less than the current market rate. — PTI