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New Steel Policy opens doors to FDI
RIL signs MoU for setting up SEZ in Haryana
Reliance Info, China Telecom to offer direct telecom links
FICCI for ‘proportionality’ norm in farm tariff cut
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China trumps USA as top PC exporter
Bonus eligibility limit hike under study
Iraq's Minister of Oil, Ibrahim Bahr al-Aloum, attends the 138th session of Opec in Kuwait on Monday. — Reuters
photo
Rahul Bajaj: no succession plan for sons
Four LSE Board members retire
FinMin favours enhanced spectrum to CDMA operators
Gold glitters at Rs 8,150
SSS unit opens at Gagret
NEC-HCL jv to invest $5 m at Noida
‘India Calling, 2005,’ shows way to better trade ties
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New Steel Policy opens doors to FDI
New Delhi, December 12 Tabling the policy in the Lok Sabha, Union Steel Minister Ramvilas Paswan said: “In order to achieve the strategic goal of 110 million tonnes of steel production by 2019-20, the industry would need additional capital to the tune of Rs 230,000 crore.” The outstanding advances of the banking sector at the end of 2003-04 were only Rs 26,295 crore, the policy document pointed out. At present, the domestic steel production capacity is around 33 MT as against 233 MT of China. To mobilise such vast resources, the policy has clearly mentioned that FDI would be encouraged. In addition the external commercial borrowing norms would be reviewed periodically to facilitate smooth inflows of debt. The policy, however, expressed concern over the high cost of capital in India compared to that in other nations. In India, the cost of capital annually has been pegged at 11 per cent compared to just 1.4 per cent in Japan, 4.1 per cent in the USA, 4.2 per cent in Germany and the world average of 5 per cent. “Steel is one of the six sectors that figure in the index of industrial production for infrastructure, but the fiscal incentives available to the infrastructure projects are not available to the steel industry. Suitable incentives would, therefore, be devised for the steel industry,” the policy said. The New Steel Policy favours risk-hedging instruments like futures and derivatives in the steel sector. “The cyclical nature of steel industry deters fresh investments due to risks of recession. The mismatch between demand and supply also leads to price volatility witnessed during recent times. Stagnation in the steel prices for long periods followed by sudden spurts also affects the consumers and the infrastructure industry,” it said. Therefore, the efforts of various stakeholders to develop risk-hedging instruments like futures and derivatives would be supported, the policy mentions. With a view to achieving faster clearance of projects, the government has proposed a single-window clearance for large projects, to be followed by statutory clearances by the ministries concerned. The implementation of the policy would be reviewed closely to remove infrastructural, procedural and institutional bottlenecks and to achieve policy coordination among central ministries and state governments.
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RIL signs MoU for setting up SEZ in Haryana
Chandigarh, December 12 The MoU was signed at Haryana Niwas here in the presence of the Chief Minister, Mr Bhupinder Singh Hooda, and Chairman of RIL, Mr Mukesh D Ambani. While Mr Anand Jain, a Director in RIL, signed the MoU on behalf of the company, Managing Director of HSIDC, Mr Rajiv Arora, signed on behalf of the corporation. Reliance Industries has floated a company by the name of Reliance Haryana SEZ (Pvt ) Ltd to set up a multi-product SEZ. The SEZ would be on a scale of standards consistent with the international norms. When asked about the location of the SEZ, Mr Ambani said a feasibility study would be conducted and within two months time the site would be selected. He said the capital cost to develop the SEZ might go up to Rs 40,000 crore. RIL and HSIDC were partners in this infrastructure development project, Mr Ambani said adding that RIL itself would also set up some industries in the SEZ. He said he envisaged industries like the bio-technology industry, IT industry and other next generation industries to come up in the SEZ. Mr Ambani also had a few words of praise for the Chief Minister and said it was Mr Hooda's vision that had prompted his company to come to Haryana. The SEZ would generate plenty of employment for the local people and would help in all- round development of the state and the country as a whole, he added. He said investment would not be a barrier and the results would be visible in 24 to 30 months from now. “Our idea is compete with Singapore, Malaysia and China in attracting investment to the SEZ”, Mr Ambani said. Mr Hooda said he had been to Reliance unit at Jamnagar in Gujarat and had seen for himself how the group had transformed the place. He said he would expect RIL to repeat its feat in Haryana. Out of the total area of the SEZ, 6,500 acre have been earmarked for low-polluting industries, 5,000 acres each for basic infrastructure and commercial
establishments, 3,750 acres for residential area, 1,250 acres each for institutional area, leisure and entertainment. The state Cabinet, had, earlier passed the draft SEZ Bill aimed at promoting and establishing large self-contained industrial townships with world class infrastructure, duty-free enclave and hassle-free environment for export promotion. The draft Bill also laid down the policy for granting certain category of goods exemption from state taxes, levies and duties. Those present on the occasion included Dr A.Shanker, President, Corporate Affairs, RIL, Haryana Industries Minister, Mr Lachhman Dass Arora, Education Minister, Mr Phool Chand Mullana, Transport Minister, Mr Randeep Singh Surjewala and senior officials of the state government.
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Reliance Info, China Telecom to
Mumbai December 12 The current arrangement of routing calls between the two countries via the US and Europe is not only expensive, but it also results in loss of signal quality, a statement by Reliance Infocomm said. Reliance Infocomm will now route communications traffic between India and China on a global network of its sister company FLAG Telecom.
— PTI
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FICCI for ‘proportionality’ norm in farm tariff cut
New Delhi, December 12 FICCI has emphasised the need for concrete and usable provisions for ‘special products’ and ‘special safeguards mechanism’, a significant reduction in agricultural support provided by developed countries, plugging the loopholes of “box shifting” through the tightening of criteria for Blue Box support measures. Besides, it has asked tighter discipline for Green Box - to explore the possibility of placing a ‘cap’ on such support and abolition of all forms of export subsidies latest by 2010 with sufficient ‘front-loading’. Notably, the draft Hong Kong text has reaffirmed the commitment to the Doha mandate on agriculture. On Non-Agricultural Market Access
(NAMA), FICCI has emphasised that India has to maintain flexibilities as “stand-alone” provisions and ensure that there is no trade-off between flexibilities and tariff reduction formula. On services, FICCI said there was urgent need to explore other approaches for services negotiations. “The member-countries need to adhere to certain qualitative parameters in each mode of supply of service. Across all sectors, these would require certain minimum commitments by all member-countries in all four modes of supply, which would reflect a significant improvement over the existing commitments,” it said. FICCI sought the removal of commercial presence requirements and discriminatory treatment by developed countries in mode-1 and said all MFN exemptions taken by members in Mode-1 need to be addressed. As regards special & differential treatment, FICCI pointed out that special and differential treatment (S&D) provisions should be designed to facilitate the integration of developing and least-developed countries into the world economy, and to provide countries at different levels of development support and flexibility in their obligations so as to be able to achieve economic growth.
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China trumps USA as top PC exporter
Paris, December 12 China exported $ 180 billion worth of so-called ICT goods in 2004, compared with US exports of $ 149 billion, the OECD, a free-market agency funded by 30 countries, said. OECD officials said that China was likely to take the top spot in 2005 too but hard proof would take many months to collect. The USA was the world leader in 2003 with $ 137 billion worth of exports of ICT goods, followed by China with $ 123 billion, the OECD said. “The data show a shift towards more trade between China and other Asian countries, with a corresponding decline in ICT imports to this region from the European Union and the USA,” it said. China’s Lenovo Group Ltd has long dominated the Chinese computer market, the world’s second largest, but it burst onto the world stage this year as the third-biggest maker of computers with the purchase of International Business Machines Corp.’s PC business, behind Dell Inc. and Hewlett-Packard Co.
— Reuters
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Bonus eligibility limit hike under study
New Delhi, December 12 “A proposal to amend the Payment of Bonus Act, 1965, to revise the eligibility limit of bonus from Rs 3,500 to Rs 7,500 per month and the calculation ceiling from Rs 2,500 to Rs 3,500 per month as per the recommendation of the 2nd National Commission on Labour is under consideration of the government in consultations with all concerned,” Labour Minister K Chandrasekhar Rao said during question hour. The current salary limit for receiving bonus by the employees of a factory and every other establishment employing 20 or more persons is Rs 3,500 per mensem, he said. Mr Rao, however, did not specify a definite time-frame for clearance of the proposal.
— PTI
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OPEC trims output, formal ceiling unchanged
Kuwait, December 12 The Organisation of the Petroleum Exporting Countries (OPEC) supplier of a third of the world’s oil, has been pumping at a 25-year high in response to near record prices and calls from big consumer nations worried about the cost to economic growth. “Now we are preparing ourselves for the second and third quarters of next year because in these two quarters demand is usually less,” Libyan Energy Minister Fathi Omar Bin Shatwan told reporters after the meeting. All OPEC members had agreed to keep their 28 million barrel per day ceiling unchanged, but rein in excess to keep strictly within that limit, Shatwan said, meaning a reduction of 200,000-300,000 bpd. The ceiling excludes Iraq. “We have to comply with the ceiling now, and maybe we will discuss a cut in the future,” he said. “We call it compliance — we don’t call it a cut.” OPEC countries have grown accustomed to prices near record highs. But some in the cartel are worried that the good times could end with the spring thaw. Demand normally slips and oil stocks build in the second quarter. Prices consequently slide. Ministers will meet on January 31 in
Vienna. — Reuters
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Rahul Bajaj: no succession plan for sons
New Delhi, December 12 “There are no succession plans,” Mr Bajaj told PTI from Pune. Earlier in March, Bajaj Auto had decided to elevate Rajiv — the elder of the two — to the post of Managing Director for a five-year term effective April 1, 2005. On the other hand, Sanjiv — an Executive Director (Finance) at the company — manages the company’s international operations and exports, finance, costing, legal services, and treasury operations, among other responsibilities. He is also on the Board of Directors of Bajaj Auto Finance Ltd, a separate listed entity and into NBFC. Mr Bajaj said the Rs 6,500 crore cash-rich company was also looking at a demerger to carve out a separate investment company. He said the group’s other company, Bajaj Auto Finance, would raise up to Rs 940 crore through equity shares, debentures and warrants.
— PTI
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Four LSE Board members retire
Chandigarh, December 12 This scheme will ensure that 50 per cent of the members of the LSE Board will be shareholder directors (who are not traders), 25 per cent from among the traders; and 25 per cent from among the public. With this, shareholders (who are brokers) will have to divest 50 per cent of shares. This will thus infuse new life into the LSE, and convert it from a “not for profit” organisation to a profitable organisation. Four of the oldest broker members in the LSE Board — Mr Jaspal Singh, Mr Rajnish Garg, Mr Manoj Sarna and Mr Shobhit Sabharwal retired from the Board in today's meeting. They will later be replaced by public interest directors. Till today, the LSE Board had six broker members, four public interest directors, a Registrar of Companies, Principal Secretary, Industries, and an Executive Director as its members. “The Securities and Exchange Board of India (SEBI), had, earlier asked that the scheme be implemented latest by December 15, 2005. We have tentatively decided on adopting this scheme on December 15, and reconstitution of the Board is a leap in this direction," said Mr H.S. Sidhu, Executive Director, LSE. Trading in LSE is little for some time now, after many companies, which were listed with either the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE) along with the LSE, decided to delist from the LSE. At present, around 250 companies are listed with the LSE. “Once the scheme comes into effect, trading in the stock exchange will resume, as investments will not remain blocked for long periods,” said Mr Sidhu.
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FinMin favours enhanced spectrum to CDMA operators
New Delhi, December 12 "CDMA operators are entitled for allotment of additional spectrum for existing services under their present licence conditions," the Budget Division of Department of Economic Affairs, Ministry of Finance, said while commenting on the spectrum-related issues. At present, the spectrum allocation is linked to service area and subscriber base and due to this the CDMA operators have been getting virtually half the spectrum compared to their counterparts. Meanwhile, state-run BSNL has stepped up efforts to grab a bigger share of rising broadband demand in the country with the PSU planning to provide Fibre-to-the-Home (FTTH)-based broadband services for offering next generation services to its subscribers. BSNL started broadband services in January 2005 with the 'ADSL' systems. We are now planning to offer broadband service on fibre also by using the FTTH systems, a senior BSNL official said adding the PSU today issued a tender to procure FTTH equipment for providing the next generation broadband services to its
customers. — PTI
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Gold glitters at Rs 8,150
New Delhi, December 12 Gold rose to a 24-year high in Asia as fund managers added the precious metal to their portfolios and as Japanese traders increased buying. The overseas markets remained bullish since October and jumped 14 per cent, as investors bought bullion as a hedge against inflation and as an alternative to underperforming stocks and forex markets.
— PTI
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SSS unit opens at Gagret
Gagret (HP), December 12 The company has inaugurated its greenfield facility for manufacturing batteries here with Rs 16 crore investment. "We have already invested Rs 16 crore in phase I for setting up the battery manufacturing plant here which has an annual production capacity of 7.5 lakh batteries. We will further invest Rs 9 crore in the phase II to manufacture SMF batteries," company MD Rakesh Malhotra said here. He added that company would invest about Rs 3 crore to augment the capacity of power electronics plant, located in Baddi district with an annual capacity of 10 lakh of UPS/inverter. When asked about the funding for the expansions, he said it would be mainly through internal accruals. With the new plant in operation, the company, with a present annual turnover of Rs 180 crore, aims to increase it to Rs 380 crore.
— PTI
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NEC-HCL jv to invest $5 m at Noida
New Delhi, December 12 The
facility would provide a single-window view over all NEC-HCL operations in the high-end offshore-led software engineering solutions in network and security, embedded software, hardware design, R and D, high performance computing and mobile technology. "We believe that working with an Indian IT giant like HCL, we will be able to add value to our business and contribute in our growth strategy," NEC System Technologies Ltd President and NEC Corporation Executive Vice-President Toshihiko Takahashi said.
— PTI
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‘India Calling, 2005,’ shows way to better trade ties
Dubai, December 12 The history of Indo-UAE relations in particular is not new, but the “India Calling, 2005,” summit opened new vistas of opportunities in joint ventures in trading, tourism, finance, information technology and other sectors. First Deputy Chairman of the Dubai Chamber of Commerce and Industry Abdul Rahman Saif Al Ghurair said the GCC countries were the second largest trading partners of India with an annual trade turnover of about $ 10.27 billion.
— UNI
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