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Oil prices stain economy in 2004
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HP fauna to woo tourists
Dwarka eyes retail jewellery market
Ozone sues HLL, says ad not fair
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Oil prices stain economy in 2004
New Delhi, December 30 Even though the country is headed by an eminent economist, Dr Manmohan Singh, it seems amazing that the country has not come up with a National Energy Policy — a roadmap to meet the growing needs of developing economy through alternative and affordable energy sources — that can help the country compete in the global economy and generate jobs for youth. It is high time that the government ponders as the country’s dependence on oil imports has surpassed over 70 per cent of requirements and the nation is power-starved despite huge hydel and solar power potential. The crude oil prices in the international market, that were hovering around $ 23.31 per barrel for Indian basket of oil imports in March 2004, crossed $ 36 per barrel by May 2004, but the NDA government continued to postpone the decision to increase domestic prices that would have affected the sheen of its India Shining election campaign. Consequently, the Manmohan Singh-led government had to take one of the most unpopular decisions of declaring substantial hike in petrol and diesel prices, the moment it took over the charge at the Centre in May. It resulted in a lot of hue and cry, and Petroleum Minister Mani Shankar Aiyar had few takers, when he talked of “sharing the burden among the oil companies, government and consumers.” The oil prices continued to rise in the international market and even crossed $ 50 per barrel, later stabilising around $ 40 per barrel. The increase in diesel and petrol prices by over Rs 5 per litre just within January-November period impacted almost every segment of the economy. The RBI and Finance Minister were forced to “lower their GDP growth projections from around 8 per cent to around 6.5 per cent for the current financial year.” The government, which had come to power on the back of its promise to protect “the interests of Aam Aadmi,” had to face the criticism from all corners, including the Left and Opposition in and outside the Parliament. Though Petroleum Minister stuck to his stand of not increasing kerosene prices — the fuel used by millions in the rural areas to lighten their kutcha houses and ignite fire in their chullahs yet he faced the ire of middle -class women, who had to shell out over Rs 40 extra to buy a LPG cylinder for their kitchen. Due to increase in the diesel prices, the Indian Railways announced a freight hike of over 7 per cent, resulting in rise of steel, cement and all other goods that led to rise in prices of these goods, thus affecting all sections of the society. By passing on the increase in crude oil prices, the government has indeed protected the “balance sheets of the oil companies and the dividend of their shareholders.” But millions of farmers in the rural hinterland, already hit by the delay and fall in monsoon rainfall, and voters in urban constituencies found it unconvincing that government could not force “the state government to share the burden by lowering sales tax on oil products, touching over Rs 40,000 crore, annually. Or the domestic oil producer, ONGC whose net profit is increasing at the cost of consumers. The Centre and the state governments are collecting over Rs 1 lakh crore as taxes from the oil sector annually, thus contributing to rise in oil prices. Prime Minister later set up a committee headed by Planning Commission member Kirit Parikh to come out with the National Energy Policy covering conventional and non-conventional energy sources. Industrial associations are crying foul that lack of “adequate energy at affordable price” is severely affecting the growth in the agriculture, manufacturing and service sector thus leading to loss of million of jobs for the youth and wealth worth billions of dollar.
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IOC steps up aircraft refuel services
New Delhi, December 30 The services have been set up in parts of Tamil Nadu, Nagapattinam, Tuticorin and Myladuthurai besides Nellore in Andhra Pradesh and the Andaman and Nicobar Islands. “We have already positioned backup manpower and fuel storages at these places to help fuel the aircraft involved in search and rescue as well as relief measures,” said Dr N.G. Kannan, Director (Marketing), IndianOil and Managing Director. Till the situation is normal, IndianOil will continue to operate a non-stop refuelling system with adequate manpower and material support. In just three days, IndianOil Aviation Service has undertaken over 275 refuellings while emergency support and fuels for transportation and cooking have all been moved to the disaster struck areas. Joint teams from both IndianOil and IBP are coordinating the relief efforts. In the Andaman and Nicobar Islands, IndianOil is the only oil company having a storage and marketing infrastructure. While there has been damages to the Port Blair and Car Nicobar fuel storage and aviation fuel facilities, the operations have been restored and uninterrupted fuel supplies are being made and even LPG supplies from the company’s bottling plant have started, Mr Kannan said. Back-up emergency relief teams with additional supplies, manpower and other resources have been rushed in from Kolkata, he added. IndianOil is also coordinating the relief provided by other oil companies in Chennai, Cuddalore, Nagapattinam, Colachel, Tuticorin, Akkur and Sembanar Koil in Tamil Nadu, Ongole, Vizag and Krishna district in Andhra Pradesh and Pondy and Karaikkal in Pondicherry. IndianOil has opened collection points for those who intend to contribute clothes, blankets and utensils to the Tsunami affected people.
Oil cos initiative
On the initiative of Petroleum Minister Mani Shankar Aiyar, public sector oil companies today announced to donate Rs 55 crore, perhaps largest amount by any sector so far, to the Prime Minister Relief Fund for tsunami-affected areas. It includes Rs 15 crore each from ONGC and IOC, Rs 7.5 crore each by HPCL and BPCL, followed by Rs 5 crore by the Gail. Chennai-based CPCL and Kochi-based KRL have decided to donate Rs 2.5 crore each. Employees of oil companies have also decided to contribute one day’s salary to the PM relief fund.
Bankers’ aid
ICICI Bank and Bank of Baroda will donate Rs 5 crore each to the Prime Minister’s Relief Fund (PMRF) as part of their contribution towards the relief and rehabilitation work in South India for those affected by the tsunami. In addition, ICICI employees will donate one day’s salary to aid the relief and rehabilitation work, the bank said in a release here today. Union Bank of India has contributed Rs 2 crore and so has Central Bank of India. Meanwhile, public sector Hyderabad-headquartered Andhra Bank has instructed its branches to issue DDs free of charge drawn in favour of PMRF and the Chief Minister’s Relief Fund. All contributions made to both the Relief Funds will be transferred to the accounts free of cost, Bank Chairman and Managing Director T S Narayanasami said in a statement here.
IBM benevolence
The US computer giant IBM Corporation will install a complete management information system (MIS) to help coordinate relief work in Tamil Nadu. The corporate has sent a team to the worst tsunami-hit Nagapattinam district in coastal Tamil Nadu. The zonal relief commissioner, Mr. Vivek Hariharan, said today, “They are installing a complete system for all rehabilitation centres to obtain daily data.” He said, “The system will map the data on a matrix to ensure that demand for relief materials and their supply match each other. They have already reached here.” The IBM volunteers will be given police wireless sets and will be deployed in rehabilitation centres. They will constantly monitor information flow and inform the control room about specific demands from various areas following which supplies will be dispatched to meet the demand. A control room has been set up at the Nagapattinam Collectorate, 250 km south of here. The installation of a management information system is expected to facilitate the coordination of the massive relief distribution exercise, which is currently seen as somewhat disorganized and haphazard. In fact, people who needed relief urgently were not the first ones who were getting relief supplies.
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SMEs dress up to tap post-quota market
Ludhiana, December 30 “Presently we are not lagging behind in terms of quality. In fact, the quality that we are supplying is among the best that places China behind us when it comes to catering the high-end fashion and middle mass market that form around 30 per cent of the total market share,” says Mr Chaman Dhanda, CEO and managing partner, Aranz Clothing. SMEs admit they are on a weaker platform in comparison to China when it comes to pricing. “Mass production and the resultant economies of scale lead to lower pricing of products and that is where we still lag behind,” says Mr Parveen Korpal of De-Mark, adding, “Globally, mass market captures almost 70 per cent of the total share and China will primarily cater to that segment.” Claiming that they would be able to supply the latest of designs and high-quality entrepreneurs say recently they had invited experts from Netherlands who had confirmed “excellent quality” production. However, even in Ludhiana it is only one-third of the total SMEs that would be able to cater to the high-end and middle segments. Entrepreneurs say they will manage to have some share in global mass market as well. “In this segment, it will be sub-contracting that would be largely prevalent and would help SMEs.” With textile quota ending from January 2005 onwards SMEs are fast gearing up to combat stiff competition they will face from other countries. “The very nature of small and medium enterprises becomes a disadvantage since it does not allow them to direct heavy budgets towards areas like marketing and advertising, which are assuming increasing importance in present era,” opines Mr Sudarshan Jain of Sarjeevan Knitwear. He says such enterprises, the number of which is around 10,000 in Ludhiana, have an average turnover of around Rs 3 crore to Rs 4 crore each. Mr Vinod Thapar of Knitwear Club, that has over 500 members, disclosed that the club had put in place a sub-contracting exchange that contains data of some 200 manufacturers for the buyers. He said the club plans include names of even those who are not its members to facilitate easy data access to buyers, resulting in a wider exposure to entrepreneurs here.
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HP fauna to woo tourists
Shimla, December 30 Taking a cue from states like West Bengal, Madhya Pradesh and Uttaranchal, where wild life sanctuaries, parks and zoos attract lakhs of tourists from all over the world, the government has made up its mind to focus towards this area. All prime properties of the forest department, which can be a viable option from tourism point of view, will be identified. “The government is already considering having wildlife resorts and the matter will shortly be taken up at the top level,” confirmed Mr G.S. Bali, Tourism Minister. He added if need be permission in this regard would be sought from the Centre. He added that this was a new area where the government was keen to promote tourism as Himachal has a rich flora and fauna. Different areas of the state falling is varied zones are home to a number of highly endangered and rare species of animals and birds like the snow leopard, western tragopan, mountain quail, monal pheasant, cheer peasant and snow cock. “Apart from having a rich bio-diversity, we clearly have the advantage of cool climes and virgin areas, which are practically untouched by urbanisation,” says a forest official. A development report on
Himachal Pradesh, prepared by the Planning Commission, also makes a mention of the state government venturing into this area, terming it a very bold step. “As part of our disinvestment policy we are no doubt withdrawing from the over-saturated tourist destinations like Shimla and Kulu Manali but would like to step into the unexplored areas like Sangla in Kinnaur or parts of Lahaul-Spiti and wildlife sanctuaries, which are ecologically very fragile,” remarked Mr Bali. The state has 32 wildlife sanctuaries and two national parks, having a large variety of mammals, birds and reptiles.
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Dwarka eyes retail jewellery market
Chandigarh, December 30 The much-fragmented jewellery market is still virgin as big brands have a miniscule share in the huge untapped market. An extensive study by the US Foreign and Commercial Service reveals that Indian jewellery market is poised for a boom by estimated business of $ 1,070 million within next two years, says Mr. K.B. Goyal, Managing Director of Dwarka Gems and Jewellery. The consumption of gold, diamonds and other jewelleries are moving northwards undeterred by its rising prices. So the concept of retail chains is shaping up to usher in a new era in the Indian jewellery market. Mr Goyal, who is expecting that branded jewellery market would grow by 55 per cent annually, is now eyeing jewellery market in the north with a plan to set up 22 new outlets, including Ludhiana, Jalandhar and Amritsar. “The opening of 22 retail outlets across the nation will be spread over the next few years. Initially we would concentrate mainly on the northern part. Out of the two outlets slated to open within the next few months, one at Chandigarh has already started and the other one would shortly be opened at Ludhiana, he told The Tribune over the phone. As of now, says Mr Goyal, branded segment accounts only for three per cent of the untapped market thus leaving the scope for national brands to cash in. According to Mr Goyal, India has ‘democratised’ diamonds, which in the past were the exclusive preserve of only the rich and famous.
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Ozone sues HLL, says ad not fair
Mumbai, December 30 The notice requires HLL to, among other things, publish an equal-sized advertisement tendering an apology for the misleading claims and extend a written assurance of not using the said advertisement again. Prior to the notice, Ozone Ayurvedics had registered strong protest over an allegedly defamatory advertisement that appeared in two leading dailies. HLL’s ad claiming greater efficacy over rival brands was based on a study conducted on a sample of 30 women for each of the creams. Both legal and medical experts agree that the only way such a claim can be made is when all conditions are exactly the same.
— UNI
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