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Govt worried over high ad
Economy resilient despite oil shock:
ONGC still hopeful on PetroKazakh deal
GAIL to help Haryana set up three
Indo-Pak trade shows 74 pc growth
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IIM alumnus to lead Citigroup’s operations
Bharti inks deal with insurance major AXA
Hero Honda to launch scooters
Gujrat Ambuja seeks $ 100 m loan
FICCI: Business confidence index up
SpiceJet to spread wings
NFL to introduce sulphur-coated urea
Goldman Sachs plans 43-storey HQ near WTC site
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Govt worried over high ad expenditure by oil cos
New Delhi, August 24 This is despite the fact that oil companies have pressed for hike in petrol and diesel prices, claiming that they were going incur Rs 40,000 crore under recovering this year on account of rise in international crude oil touching $ 66 per barrel. Petroleum Minister Mani Shankar Aiyar today said the Petroleum Ministry was perturbed over the unjustified expenditure of the oil companies touching around Rs 800 crore last year on advertising and publicity. “I find it difficult to justify high advertising expenditure of the oil companies in the Parliament while supporting their demand to raise oil prices in the context of rising international crude oil prices,” he observed on the sidelines of a function here today. However, industry sources said after a recent directive from the Prime Minister’s Office (PMO) to cut costs on corporate promotions and huge losses suffered by them during the first quarter of the current fiscal, axe is likely to fall on the advertising expenditure of oil companies. The Petroleum Ministry has directed the oil companies to keep a tab on unnecessary expenditure. Significantly, the advertisement expenses of Indian Oil Corporation (IOC) went up marginally from Rs 112.14 crore in 2003-04 to Rs 113 crore during 2004-05, while that of Bharat Petroleum Corporation went up from Rs 56.24 crore in 2003-04 to Rs 62.56 crore (2004-05). IOC has reportedly spent around Rs 30 crore on sponsoring Indian Oil Cup recently held in Sri Lanka. However, IBP’s expenditure on advertising came down from Rs 5.48 crore in 2003-04 to Rs 2.46 crore (2004-05). The ONGC’s expenditure on advertisement reportedly went down from Rs 43.77 crore in 2003-04 to Rs 26 crore in 2004-05. GAIL’s expenses came down from Rs 26.65 crore in 2003-04 to about Rs 23.6 crore in 2004-05.Hindustan Petroleum Corporation Ltd’s expenses too came down from Rs 58.38 crore in 2003-04 to Rs 38.74 crore (2004-05). Oil companies have, however, maintained that since Reliance and other private players have already started their retail operations this year, so it was not easy for them to maintain their market share without spending adequate funds on brand promotion.
To aid expansion plans
The government will ensure that public sector oil firms stick to their investment targets despite incurring huge losses on fuel sale, Petroleum Minister Mani Shankar Aiyar said today. Refiners Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp, which reported first ever net losses in Q1 of the current fiscal, have planned huge investments in capacity addition, but feared they might have to put it on hold due to cash crunch arising from the government freeze on petrol, diesel, LPG and kerosene prices. “That work (new capacity creation) will continue notwithstanding present troubles. It is part of government policy to ensure that investment targets will not be hit by (fuel) pricing policy,” he said at an ‘Infraline’ seminar here. IOC plans to invest Rs 18,000 crore in a new refinery-cum-petrochemical complex at Paradip in Orissa and expand its Panipat refinery capacity to 15 million tonnes by 2008. BPCL is building a new refinery at Bina in Madhya Pradesh while HPCL has plans for a 9 million tonnes refinery at Bathinda in Punjab. Also proposed is a refinery in Rajasthan.
— PTI
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Economy resilient despite oil shock: Finance Ministry
New Delhi, August 24 In its quarterly review of the trends in receipts and expenditure, which was placed in the Lok Sabha today, the government said the first quarter of the current financial year was
characterised by an “increase in tax buoyancy ( except in Union excise duties), moderation in pace of expenditure and consequent moderation in the deficit levels”. The review said that the government remains committed to “providing adequate support for various public policy objectives”. At the same time, “it intends to shift focus from mere release of
funds (outlays) to actual utilisation for intended purposes (outcomes)”. “Hence, there is a discernible tightening of discipline so as to minimise diversion of government funds for unintended purposes, or parking of these funds outside government accounts,” it said. The government admitted that higher transfer of funds to states as per the recommendations of the 12th Finance Commission, increasing subsidy liabilities and additional funds needed for rural job scheme are likely to “strain” the fiscal situation. Although, rainfall up to July 20 this year was normal in 81 per cent of the meteorological subdivision, “the delayed monsoon had its impact on kharif sowing in some parts of the country”, it said. The comfortable reservoir position augurs well for the rabi crop,” it added. The ministry said industry grew by 10.3 per cent in April-June, with manufacturing clocking 11.2 per cent growth. Inflation gradually came down from 5.7 per cent in the beginning of the year to 4.1 per cent in June-end, it said. While exports grew by 19.5 per cent imports were up by 38 per cent. Forex reserves were at $ 132.9 billion in June- end and the rupee showed signs of appreciation against the dollar. “Equity valuations as measured by Nifty and Sensex, are at all -time highs,” it said, adding that bank credit grew by Rs 60,959 crore in April-June. Exuding confidence about the robustness of the economy, it said “the concerns arising out of high and volatile level of international crude prices and recent natural calamities notwithstanding, the economy has demonstrated considerable resilience.” The fiscal deficit of the Centre was relatively higher at Rs 54,517 crore in April-June 2005-06 compared to Rs 41,681 crore in the same period last year. The deficit was 36.1 per cent of the budgeted Rs 1,51,144 crore. This was relatively higher than 30.3 per cent in the year- ago period. Though the revenue deficit in absolute terms was higher at Rs 47,311 crore in the first quarter of 2005-06 compared to Rs 46,394 crore in the same period last fiscal, it was relatively lower at 49.6 per cent of the budget estimates. It was 60.9 per cent of the budget estimate during April-June 2004-05.
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ONGC still hopeful on PetroKazakh deal
New Delhi, August 24 Lukoil, Russia’s largest oil producer, is a partner of
PetroKazakhstan and has the right to block CNPC’s deal, which ONGC contends was struck through an “unfair” bidding process. The Indian government has, however, stayed out of the PetroKazakhstan affair till now and refused to use diplomatic channels for ONGC. “We are not in it...it is a commercial deal between ONGC and PetroKazakhstan and ONGC is looking at ways to re-enter (the race),” a top official in Petroleum and Natural Gas Ministry said. Top official of ONGC Videsh Ltd, the overseas arm of ONGC, rushed to Moscow yesterday to court Lukoil. ONGC’s contention is that PetroKazakhstan’s acceptance of China National Petroleum Corp’s $ 4.18-billion takeover offer was unfair as the Canadian firm’s financial advisor Goldman Sach had, only on August 19, informed OVL that its bid was the best. Analysts, however, expressed surprise at the Indian government not intervening in the tender norm violation even though it was aware that Beijing put all its weight behind CNPC to get PetroKazakhstan. An industry official said ONGC-Mittal combine had put conditionalities in its bid as PetroKazakhstan faced up to $ 200 million of tax liabilities and wanted a clarity on the liability it might inherit if it succeeded in buying PetroKazakhstan. The Indians are also exploring if Kazakhstan has pre-emptive right on sale of PetroKazakhstan and if it can be used in its favour, he said. Meanwhile, ONGC is all set to invest Rs 3,304 crore for technology upgradation of their ageing oil fields in Assam, which are suffering losses because of operational reasons.
— PTI
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GAIL to help Haryana set up three gas-based
Chandigarh, August 24 Haryana Chief Minister Bhupinder Singh Hooda would be laying the foundation stone of a 1,000-MW gas-based power plant at Faridabad tomorrow. Another 1,000 MW gas-based power plant would be set up at Hisar, besides the 500 MW in Yamunanagar. Sources in GAIL disclosed that the company planned to lay pipelines from Dadri to Faridabad and Hisar at a cost of Rs 3,000 crore each for supplying gas to these 1,000 MW gas -based power plants. Negotiations are on with various parties like the Jindal Group and the Tatas for setting up these two plants. The laying of the pipeline would also facilitate pumping of gas to the Panipat refinery, it is learnt. The MoU on the 500 MW gas-based power plant at Yamunanagar is yet to be signed though discussions on the same are also on between the Haryana Government and the GAIL authorities. The government would also be setting up a 500 MW coal-based power plant at Yamunanagar in collaboration with Reliance. Gail authorities had a meeting with Secretary, Power of Haryana today where modalities for setting up these plants in the state were discussed. Meanwhile, the Punjab Government is now interested in a 1,800 MW power plant at Doraha, instead of the proposed 1,000 MW. With this, the requirement of natural gas would also go up to 8 million cubic metre per day. GAIL would be extending its Dadri-Panipat gas pipeline to Ludhiana via Sangrur to meet the demands of the proposed power plant in Doraha, a GAIL official said. The Ministry of Petroleum and Natural Gas has cleared the proposal received from the Punjab CM conveying GAIL’s participation of up to 10 per cent stake in the proposed project with PSEB. The initial investment on the Doraha project will be more than 3,000 crore.
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Indo-Pak trade shows 74 pc growth
New Delhi, August 24 It is expected that this positive trend will continue, although it is difficult to quantify the actual potential. Mr Kamal Nath, Minister of Commerce and Industry, visited Pakistan to attend the Fourth Meeting of the SAARC Commerce Ministers held in Islamabad on November 22 and 23, 2004.
— UNI
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SBI arm wins cybersquatting case
Chandigarh, August 24 The judgement, a notification of which was received earlier this week, was delivered by the administrative tribunal constituted by the World Intellectual Property Organisation (WIPO), Geneva. Established in 1998, SBI Card and Payment Services Private Limited is a joint venture between GE Capital Services, the largest issuer of private label credit cards in the world, and the State Bank of India (SBI), the largest Indian bank. SBI holds 60 per cent stake while GE 40 per cent. The venture offers a range of credit cards — SBI Classic Card, SBI Gold Card, SBI International Card, SBI Doctors Card. It also has a number of city affinity cards (SBI Kolkata Card, SBI Mumbai Card, SBI Delhi Card, SBI Hyderabad Card, SBI Bangalore Card), commanding sales of over one million. It all began when Domain Active Pty Limited, an Australian entity, floated a website on the domain name, www.sbicards.com, and even ‘tricked’ financial big–time entities like Chase Manhattan into advertising on the site. The SBI arm, which had already registered the domain name with Fabulous.Com Pty. Ltd, lodged a complaint on March 16 at the World Intellectual Property Organisation (WIPO), Geneva. The WIPO Administrative Panel found that the Australian entity’s website could have attracted potential attention from the public because of its affiliation with SBI Cards’ products and services. At the same time it created a risk of confusion with the products/services and trademark as to the source, sponsorship, affiliation or endorsement of its website. The panel’s independent verification showed that the current use of the Australian firm’s website, www.sbicards.com, was practically the same. The panel held that the respondent (Domain Active Pty Limited) “has registered the disputed domain name in bad faith”. Talking exclusively to The Tribune from New Delhi, Mr Rodney D. Ryder, who represented SBI Cards, said that it was a clear case of cyber fraud and cybersquatting. “The judgement has come as big relief. No penalty could, however, be imposed on the errant firm since at WIPO we have not been able to evolve a consensus on what should be the proper damage/compensation amount as the cases involve the jurisdiction clause,” he said.
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IIM alumnus to lead Citigroup’s operations
New York, August 24 Mr Ajay Banga (45), who was hitherto an Executive Vice-President of the global consumer group and President of the retail banking North America organisation, will occupy the post in the wake of Mr Marjorie Magner leaving the group to focus on the academic world or philanthropy. Mr Banga, who was instrumental in the launch of Pizza Hut and KFC in India, had so far been responsible for branch banking, commercial banking, commercial real estate, commercial financing and leasing, mortgages, student loans and the Primerica Financial Services distribution channel, the Citigroup website said.
— UNI
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Bharti inks deal with insurance major AXA
New Delhi, August 24 AXA group, which manages assets worth $ 1 trillion worldwide, will hold 26 per cent stake in the proposed company ‘Bharti AXA Life Insurance Company Limited’. The two companies will invest about Rs 500 crore over the first three to four years of operation, which is expected to start from the first half of 2006, subject to the necessary approvals from IRDA, FIPB and other statutory bodies. The agreement was signed by Bharti Chairman Sunil Bharti Mittal and Axa Asia Pacific Holdings group chief executive Les Owen. “India is a growing economy. It is going to be among the top 20 insurance markets in the next 10 years. We want to cash in on that opportunity,” he said.
— PTI
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Hero Honda to launch scooters
Kolkata, August 24 Mr Atul Sobti, Executive Director (Business Operations) of Hero Honda, told reporters here that the company could hardly afford to ignore the one million-plus per annum scooter market in India. Mr Sobti said that to start with, Hero Honda would produce relatively low volumes, and the price point would be below Rs 40,000.
— PTI
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Gujrat Ambuja seeks $ 100 m loan
Hong Kong, August 24 Gujarat Ambuja hired ABN Amro Holding, Bank of America Securities Asia, Calyon, Citigroup, DBS Group Holdings and ING Groep to arrange the three-year loan, which is scheduled to be signed on August 29, said Mr Jayesh Doshi, Vice-President of treasury at the company. Gujarat Ambuja is borrowing to cut costs. Gujarat Ambuja will pay interest of 0.45 percentage point more than the London interbank offered rate for the three-year loan.
— Bloomberg
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FICCI: Business confidence index up
New Delhi, August 24 The expectation index in the first quarter of this fiscal stood at 74.8, representing a marginal increase from 73.6 in the fourth quarter last fiscal. The optimism on the part of Indian business is such that it is braving higher costs by capitalising on economies of scale and enhancing efficiency to sustain its margins, said the survey. The findings are based on responses from 478 companies.
— PTI
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SpiceJet to spread wings
New Delhi, August 24 Mr Siddhanta Sharma, Chairman of SpiceJet, told The Tribune here that there was no move to exit and that there were no talks under way with any prospective buyer. “There has been no talk with anybody, including the Hindujas. May be they (Hindujas) are expressing their personal interest. But nobody has approached us and the company has no information. We are also not looking at coming up with a public offer as we are already a listed company,” he added. In the recent past there has been intense speculation that there may be some changes in the ownership structure of SpiceJet, with several suitors said to be interested in the
airline. He said the airline planned to raise close to Rs 400 crore ($90 million) through the FCCB issue to fund its planned acquisition of 20 next-generation Boeing 737-800 aircraft. “We hope to close the FCCB issue by
September. The funds will be principally utilised to fund the airlines plan to acquire 20 Boeing aircraft that we have committed to,” Mr Sharma said. The airline is presently operating 20 flights per day.
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NFL to introduce sulphur-coated urea
New Delhi, August 24 The company has manufacturing plants in Bathinda, Nangal, Panipat, and
Vijaypur.
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Goldman Sachs plans 43-storey HQ near WTC site
New York, August 24 Goldman Sachs said earlier this year it wouldn’t move to a site across from the World Trade Centre site because a proposed tunnel for vehicles beneath ground zero would send traffic too near the building’s entrance. The company also expressed concerns over other traffic and security plans at the site. State officials dropped plans for the tunnel, and city and state leaders spend months trying to persuade Goldman Sachs to remain in downtown Manhattan, seeing the financial services behemoth as a crucial piece in rebuilding the area’s business district. An additional $ 600 million in Liberty Bond financing was approved earlier this month for the $ 1.6 billion project. Goldman Sachs also receives $ 115 million in state and city incentives to remain downtown, according to an official press note.
— AP
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Oil above $ 66 mark Saudis nod to SBI entry IPO price Allahabad Bank’s scheme for elderly SBoP branch |
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