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Hold open inquiry, Shourie dares govt
France joins issue on A-I decision
Air Deccan’s Delhi-city flight from May 9
Foreign airlines can’t pick stake
New power tariff policy may dilute |
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ONGC gets lucky at 3 places
Signs 4 pacts
Oil PSUs plan 4,600 petrol stations
MCA studying Anil Ambani’s resignation
IBM to cut up to 13,000 jobs
Auto scene
Corporate results
Merck CEO resigns
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Hold open inquiry, Shourie dares govt
New Delhi, May 5 “I am prepared to answer any question and face any inquiry ... my appeal to the Prime Minister and the Finance Minister is that the inquiry should be open,” he said at a press conference, a day after Mr Chidambaram said in the Lok Sabha that Mr Shourie had taken an “active interest” in the disinvestment of the hotel property for Rs 153 crore. “There is an effort to dig dirt. They appointed retired bureaucrat S. Lakshminarayanan, picked by Mr Chidambaram, to look into disinvestment deals,” he said. Demanding that the report of this official be released immediately to find out if anything “improper” had been done, Mr Shourie said the Finance Ministry itself had sent the details of this transaction, cleared by the competent authority. Mr Shourie said the government should release all three reports prepared by advisors on valuation and process of sale by Joint Secretaries to find answer to this. Mr Shourie began by saying that he quite agreed with the remarks of Mr Chidambaram that he took an “active interest” in this particular deal. “I took an active interest in every little task assigned to me be it in disinvestment, Commerce, Planning or Telecom Ministries,” he quipped. On Mr Chidambaram’s statement that two advisers had given two divergent figures on the value of the property and the government went with the lowest, Mr Shourie said there could not be a consensus on valuation. Even some of the biggest business groups — Tatas and Reliance — paid a price for VSNL and IPCL which was much more than the value of the companies at present, he said, adding that these (valuation) were commercial decisions. He also drew attention to the judgement of the Supreme Court in the Balco disinvestment case in which the apex court stated that that value of an asset was the amount which the highest bidder was willing to pay. Mr Shourie said the recommendation to sell Juhu Centaur was made by the Disinvestmnent Commission in 1997 when Mr Chidambaram was the Finance Minister. “As the property was owned by Air-India subsidiary, Hotel Corporation of India, the company did the initial work of sell-off. The Disinvestment Ministry came into the picture when the bids were being invited,” he added. He said the lone bidder had quoted the price of Rs 153 crore for the hotel for which the reserve price was Rs 101 crore and the bid was accepted.
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France joins issue on A-I decision
New Delhi, May 5 French Ambassador to India Dominique Girard expressed the hope that India would consider “comprehensive factors” while going in for 126 fighter planes for the Air Force in which French jets Mirage will be competing. “We are surprised and
disappointed. Airbus definitely has an advantage over Boeing,” Mr Girard told PTI here when asked to comment on the recent decision by India’s international carrier to purchase planes from the American company. This is the first reaction of the French government on the issue which has snowballed into a major controversy, with Airbus suspecting foul play in the deal and Boeing saying that it was ready for any probe. He claimed that Boeing would not be able to deliver all 50 planes on an urgent basis, a requirement of Air-India which could be met easily by the Airbus. Listing other “advantages”, he said Airbus aircraft were competitive in terms of price, were known to Indian pilots and were easy to train on. “It is clear that some factors other than commercial have played a role,” the envoy said, hinting that Air-India’s decision was influenced by the growing Indo-US relations politically. Mr Girard, speaking on the sidelines of the launch of EuroNews channel here, said the disappointment for Airbus was more as the company expected the Air-India order and had even started preparations in this regard.
— PTI
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Air Deccan’s Delhi-city flight from May 9
New Delhi, May 5 Looking at also connecting Delhi with Ludhiana, Air Deccan said that the inaugural price for the flight would Rs 1499 till May 23. The airline would be deploying its new generation 48-seater ATR on the sector. According to a release issued here Air Deccan said that the flight on the Delhi-Chandigarh route would depart at 5.55 am and the return flight would be at 7.15 am. Capt
Gopinath, Managing Director of the Air Deccan airline that the airline had announced the opening of the Chandigarh sector sometime ago, but due to unavoidable reasons could not keep to the schedule and it kept getting delayed. He added that after the Chandigarh sector, the airline was also looking at connecting Ludhiana to Delhi.
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Foreign airlines can’t pick stake
New Delhi, May 5 “As per the existing policy for foreign direct investment, no direct or indirect equity participation by foreign airlines in domestic airlines is allowed,” Civil Aviation Minister Praful Patel said during question hour. He said the 10th five-year plan had recommended a review of this policy and opening up of the domestic airline industry to foreign carriers with a view to attracting new technology and management expertise. “The Government has not approved this recommendation,” Patel said in reply to a question.
— PTI
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New power tariff policy may dilute Electricity Act
New Delhi, May 5 Since the Left parties have been demanding review of the Electricity Act-2003, The new tariff policy is likely to satisfy them to some extent as it has allowed subsidised electricity supply to the agriculture sector and poor sections of society. However, it is silent on the issue of unbundling of state power utilities. The policy, to be submitted to the Cabinet for clearance soon ,is likely to be announced by month -end. The Power Ministry has claimed that after the clearance of the National Energy Policy, the tariff policy will be a major landmark in power reforms aimed at ensuring electricity to the consumers at reasonable rates, besides ensuring the financial viability of the sector and attracting investments. Prime Minister Manmohan Singh is also taking a keen interest in the policy as the country is facing a severe power shortage in some states, including Maharastra, UP, MP, Gujarat and Bihar. Even in northern states like
Punjab, the peak power shortage has gone up from 8.9 per cent in 2000-01 to 21.9 per cent. In Haryana the shortage has gone up from 3.3 per cent to 10.3 per cent and in UP from 15 per cent to 20.6 per cent in the past five years. On the other hand, the Power Ministry has been forced to scale down its power generation targets for the 10th Plan (2002-07) by over 10 per cent, from 41,110 MW to 36,956 MW. Officials said it would not be easy even to meet the revised targets as power projects of just 10,759 MW capacity have been commissioned so far. The draft tariff policy, a copy of which is with The Tribune, states that in accordance with the National Electricity Act, consumers below
the poverty line, consuming power say up to 30 units per month, may receive special support through cross subsidy. Tariffs for such designated group of consumers will be at least 50 per cent of the average cost of supply. This provision will be re-examined after five years. “Two-part tariffs featuring separate fixed and variable charges and time differentiated tariff may be introduced on priority for large consumers (with demand exceeding 1 MW),” states the draft policy. It is expected to help in flattening the peak demand and implementing various energy- conservation measures. The policy has proposed that the states may consider a “higher level of subsidy for poorer farmers in regions where adverse groundwater table conditions require a larger quantity of electricity for irrigation purposes subject to suitable restrictions to ensure maintenance of groundwater levels.” However, it clearly states that the provision of free electricity will not desirable.
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ONGC gets lucky at 3 places
Mumbai, May 5 The find on the West Coast is 60 km south- west of the Bombay High Field ,the BSE was informed. “This is a
pre-NELP block where the company is the 100% operator. The well was spudded on October 20, 2004, in water depth of 82 meters and completed to a depth of 3,949 meters. Multiple oil & gas bearing sands have been identified in the Panna formation. The deeper object has flowed 4,90,736 cubic meters of gas per day and 2,491 bbl of oil per day though the ˝” choke. The shallower object has flowed 4,51,838 cubic meters of gas per day and 2,045 bbl of oil per day through the ˝” choke,” the release added. The find has opened a new exploration opportunity in sands within the Panna formation off the Mumbai High field, the press note said. On the east coast, the company has made two more gas strikes in its on-going Sagar Samriddhi deepwater exploration campaign. “Well VA-2 in block
KG-OS-DW-IV at a location 35 km off Amalapuram coast was spudded on March 24, 2005, in 689 meters water depth targeting potential meandering channels. This is a
pre-NELP block where the company is the 100% operator. The well has been completed to the target depth of 2,614 meters encountering a total pay thickness of 17 meters. On successful completion, the well flowed 3,26,545 cubic meters of gas per day through the 24/64” choke. This prospect will be integrated to up-scaled exploitation plan of G-l and GS-15 structures where the company is developing India’s first digital oil field in the KG basin,” the press note said. In another location in the KG offshore, drillship Sagar Vijay has emerged lucky the third time in the exploration campaign, according to ONGC. “This
is again a strike in a
pre-NELP nomination block 1G, where the company is the 100% operator. Well G4-4,under drilling at a water depth of 331 meters, is located 38 km from Amalapuram coast,” the press note said.
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Signs 4 pacts
New Delhi:
State-run Oil and Natural Gas Corporation (ONGC) has signed four separate contracts for improving operations.
ONGC has signed a contract with M/s BAPEX, Bangladesh, for rig repair jobs. M/s ADCO of Abu Dhabi will be assisting ONGC with advanced drilling technology whereas M/s GNPOC, Sudan, will carry out geochemical surveys, analysis and data interpretation and training of ONGC staff. The oil major has also inked pact with M/s NIOC of Iran for training of personnel in exploration and drilling activities. In a written reply, Petroleum Minister Mani Shankar Aiyar informed Lok Sabha that ONGC has been exploring the possibility of transferring technical know-how, with a special focus on West Asia, Africa and South East Asia.
— UNI
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Oil PSUs plan 4,600 petrol stations
New Delhi, May 5 In addition, he said, the public and private sector firms will invest over Rs 12,000 crore in producing natural gas found in the Krishna-Godavari basin, off the east coast. In a written reply in Lok Sabha, he said IndianOil Corporation (IOC), the country’s largest oil company that has over 10,000 petrol pumps, plans to set up 1,512 bunks in 2005-06 and 294 LPG distributorships (gas agencies). Mumbai-based Bharat Petroleum Corp Ltd plans to add 1,735 petrol pumps while Hindustan Petroleum Corp Ltd has plans to set up 920 petrol stations. IBP, a subsidiary of IOC, would add 500 retail outlets. BPCL would also set up 178 LPG distributorships, HPCL another 375 while IBP would set up 60 gas agencies, he said. India already has over 25,000 petrol stations, probably the highest in the world. Mr Aiyar said private sector Reliance Industries, Essar Oil and Shell India have been authorised to market transportation fuel and they propose to set up 5849, 1700 and 2000 retail outlets, respectively. The three companies together have notched over a 1,000 petrol stations. “However, there is no fixed time-frame for setting up these retail outlets,” he said. To another question, Mr Aiyar said the expenditure incurred by public sector oil firms for marketing petroleum products in 2004-05 was almost at the same levels as the previous year. IOC spent Rs 2,284 crore in 2004-05 (Rs 2,449 crore in 2003-04) HPCL Rs 896 crore (Rs 836 crore), BPCL Rs 1,215 crore (Rs 1,216 crore) and IBP spent Rs 410 crore in 2004-05 (Rs 383 crore in 2003-04). State-owned Oil and Natural Gas Corp will invest Rs 1262.93 crore in developing G1 and GS-15 fields in the basin. “Completion is scheduled for April 2006,” he said in a written reply to a question in Lok Sabha. Mr Aiyar said Reliance Industries Ltd has submitted a development plan for two discoveries, Dhirubhai-1 and 3, with an investment of $ 2.47 billion. “The development proposal plan has also been approved by the Directorate General of Hydrocarbons.” Gas production by RIL is likely to start from August 2008, he said. Out of 14 discoveries made by private firms in KG basin, two have been approved and declared to be commercial. The remaining are under appraisal. “As on April 1, 2005, 24 fields are on commercial production in the Krishna-Godavari onshore and offshore basin.
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MCA studying Anil Ambani’s resignation
New Delhi, May 5 Anil’s resignation and the way it was handled by the IPCL, has in the recent weeks become one of the contentious issues between him and his elder brother, Mukesh Ambani, who is the Chairman of the IPCL as well as the group’s flagship company RIL. The two brothers are engaged in a public bickering over the control of the Reliance empire. More than two months after its board meeting on January 20, the IPCL informed the Registrar of Companies in Gujarat, that Anil had ceased to be Vice-Chairman and Director following his resignation, informed sources said, and pointed out that according to Section 303 (2) of the Companies Act, a company should inform the RoC vide Form 32 “appointment or/and changes among Directors” within 30 days.
— PTI
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IBM to cut up to 13,000 jobs
San Francisco, May 5 Mr Ben Reitzes, an analyst with UBS in New York, said the job cuts could result in up to 50 cents a share in after-tax savings. That amounts to 10 per cent of the profit analysts expect from the IBM in 2005. The IBM shares rose more than 1 per cent in after-hours trading to $78, up 92 cents from their regular session closing price. The IBM said it expected to take a charge against second-quarter earnings between $1.3 billion and $1.7 billion to cover costs of the reduction. Mr Bob Moffat, IBM’s senior vice-president of supply chain integration, declined to specify which countries or office locations were targeted for cutbacks, but said they would be concentrated in Europe. The company said it planned to cut between 10,000 and 13,000 jobs starting in the second quarter, representing roughly 3 per cent to 4 per cent of the workforce at the end of
2004. — Reuters
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Tatas to tap goods market with Ace
Bangalore, May 5 “The mini-truck ‘Ace’ is going to be a “sensational product” and create a new category of segment in trucks in the country, Tata Motors Executive Director Commercial Vehicles business Ravi Kant told reporters here. The price of the vehicle will be announced by Tata Group Chairman Ratan Tata at a function here tomorrow. Tatas have invested Rs 180 crore in R&D, plant and machinery for Ace, Tata Motors President (Pune works) P M Telang said, adding the plant has a capacity to produce 30,000 units per year, which could be expanded to 60,000 with marginal investment. He said the firm plans to sell 30,000 units in the first year. The mini-truck gives mileage of 18 km per litre. Sales of three wheelers in India has grown from about one lakh units per year in 1990-91 to about three lakh units per annum, Ace project manager Girish Wagh said. Variant of Libero
Close on the heels of the launch of Crux S, motor cycle maker Yamaha Motors India today expanded its product range in the executive segment launching Libero LX, a variant in its 100cc Libero series, for Rs 46,566 (ex-showroom Delhi). “With the launch of Libero LX now and Crux S last month, we have embarked upon an aggressive marketing strategy by giving fresh look to our bikes and expect to tap a larger commuter base in the Indian two-wheeler market,” said H Yanagi, CEO and Managing Director, Yamaha Motors India.
Mahindra sales rise
Indian utility vehicles and tractor maker Mahindra and Mahindra (M&M) Ltd today said its vehicle sales grew by just one per cent in April. The Mumbai-based auto firm said total sales in the domestic and export market in April were 10,640 units compared to 10,536 units a year ago. Mahindra said it sold 8,525 utility vehicles and exported 238 vehicles last month. The company said its tractor sales, including domestic and exports, in the past month rose 45.5 per cent at 6,321 units against 4,345 in the year-ago month.
Eicher sales up
Commercial vehicle maker Eicher Motors Ltd today said its April sales rose 25 per cent to 1,171 units from 935 units a year earlier. Sales in April would have been even better but for the implementation of the value-added tax as well as new emission norms, Eicher Motors, which makes commercial
vehicles, tractors, motorcycles and auto components said. — Agencies
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Corporate results
New Delhi, May 5 The IT company’s consolidated sales grew 33 per cent during 2004-05 over the last year to touch Rs 481 crore. For the quarter ended March 31, its consolidated net profit rose 42 per cent to Rs 30 crore over the corresponding quarter of the last fiscal while sales grew 28 per cent to Rs 130 crore over the fourth quarter of the last fiscal. On standalone basis, FSS posted 40 per cent growth in net profit to Rs 108 crore during 2004-05. Sales grew 33 per cent to Rs 476.1 crore over the last year. In the fourth quarter of 2004-05, the company posted 42 per cent growth in net profit to 30 crore. HDFC net up 18 pc
Housing Development Finance Corporation Ltd (HDFC) has posted 18.68 per cent growth in its consolidated net profit at Rs 1,124.04 crore for the year ended March 31, 2005 as against Rs 947.04 crore for 2003-04. The board has recommended a dividend of Rs 17 per share for the year ended March 31, 2005. The audited net profit and total income for the quarter ended March 31, 2005 stood at Rs 347.79 crore (Rs 297.97 crore in Q4 of 2003-04) and Rs 955.81 crore (Rs 827.14 crore), respectively, it added.
— PTI
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Merck CEO resigns
New York, May 5
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ZTE keen on Manesar Strides buyout Rights issue Bonus shares |
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