New Delhi, March 31
Finance Minister P.Chidambaram today expressed hope about the stability of interest rates despite the hardending of liquidity situation in the country, adding that the RBI would take corrective steps to address the issue.

Talking to reporters on the sidelines of a Punjab National Bank function, he said: “Interest rates will remain attractive to both depositors and borrowers. And the RBI is seized of the issue (of liqudity). I am totally confident that the RBI will address the issue of supply side of the credit.”

Asserting that bank credit was the lifeline of the economy, he said,“the rising demand for credit reflected growth potential of the economy and, through interest rates, banks would balance the demand for and supply of credit.”

He pointed out that the RBI had already taken the first step to tackle liquidity by allowing banks to raise NRI deposit rates by 25 basis points.

Admitting that there is a mismatch between the demand for and supply of credit, he said deposits had grown at the rate of 16 per cent this fiscal so far while the lending growth had been 30 per cent. Ways and means had to be found to bridge this gap and keep up the investment rate to continue a high growth rate. The central bank is scheduled to announce its quarterly monetary review on April 18.

Mumbai, March 31
Reliance Infocomm today announced a sharp reduction in ISD tariffs. The company said it was cutting phone rates by as much as 69 per cent making Reliance Infocomm the cheapest ISD producer in the country.

The rates would be effective across all plans and schemes for both pre-paid and post-paid subscribers, the company said. Under the new Reliance Infocomm plans calls to the US, Canada, Europe, Australia, New Zealand and SE Asia have been reduced to Rs 6 per minute from the present Rs 14.25 under all ‘One Nation’ plans.

Under other plans, the rates would be Rs 7.20 per minute from Rs 12.99 to 14.25 per minute earlier.

Calls to the Gulf, West Asia and Africa have been brought down to Rs 8 per minute from Rs 17.25 under ‘One Nation’ plans while under other plans the rates have been slashed to Rs 9.99 per minute from Rs 17.25 to 19.99 per minute.

Other Anil Ambani-controlled companies Reliance Natural Resources Ltd and Reliance Communication Ventures Ltd today said they have got shareholders’ approval for increasing their Foreign Institutional Investors (FII) limit to 74 per cent.

In separate notices to stock exchanges, RNRL and RCoVL said the shareholders, through postal ballot, have also approved tapping foreign markets to raise funds and enhancing borrowing limit to Rs 10,000 crore.

The two recently-listed firms got shareholders’ consent to issue securities including ADRs, GDRs, bonds and debentures in a way that it does not increase the subscribed equity share capital of the companies by more than 25 per cent.

The increase in their authorised share capital to Rs 1,500 crore from Rs 650 crore and issuing shares to its staff under an Employees Stock Option Scheme up to 5 per cent of its total shares, was also approved through the postal ballot.

The two companies also plan to shift their registered headquarters from Maharashtra to Goa, the note added. 

Bangalore, March 31
Bharat Earth Movers Limited (BEML), a public sector firm dealing with construction and mining equipment and transport vehicles for the defence sector, plans to raise Rs 500 crore through a public issue during the second quarter of this financial year.

The company has sent its proposal to the government and the same is being examined by the Ministries of Defence and Finance, its Chairman and Managing Director VRS Natarajan said here today.

Talking to newspersons here, Mr Natarajan said the company will offer 50 lakh shares to the public and the issue price will be determined through the book building process.

He said the money being raised would help to fund the company’s expansion and diversification plans.

The government holds 61 per cent of the equity in BEML, while the public, banks and financial institutions hold the rest. As a result of expanded equity, the government holding will be reduced to about 55 per cent with 2.25 crore shares.

BEML’s Chairman and Managing Director VRS Natarajan said the company proposed to foray into contract mining and decided to forge a joint venture to exploit high business potential projected in this segment.

In the proposed joint venture, a Hyderabad-based mining company would hold 46 per cent stake, an Indonesian firm 9 per cent and BEML 45 per cent.

“Business has surged ahead in all three areas — mining and construction, defence, and railway and metro,” he said.

Mr Natarajan said BEML is planning to open operations in Morocco and Indonesia in the near future in partnership with local industry to address the markets in the region. It has already opened two offices at Singapore and Shanghai.

BEML, he said, is diversifying into new business area by opening two new divisions — technology and trading.

Mr Natarajan said the Board of Directors has approved a capital expenditure of Rs 160 crore during 2006-07.

He said Rs 125 crore is being sought from the Union government for setting up a research and development unit in Bangalore for complete indigenisation of metro coaches as well as expansion of other infrastructure to cater to the upcoming Metro system in Bangalore and other cities.

BEML expects to get an order for supply of 130 coaches from Bangalore Metro as and when the project materialises.

Mumbai, March 31
A consortium of Indian oil firms which include Videocon, GAIL, BPCL and HPCL, has won an exploration block in Oman for $50 million.

Block 56 had potential reserves of 4 billion barrels of oil, according to the consortium. Australia’s Oilex NL is the other partner in the consortium.

While the Australian company holds 25 per cent interest in the venture, Videocon and GAIL hold 25 per cent each. Bharat Petroleum Corp. Ltd. and Hindustan Petroleum Corp. Ltd hold the rest.

The consortium has also bid for the bigger Block 58.

GAIL now holds a participating interest in 16 exploration blocks. Of these, sevenare on-land blocks and nine are offshore blocks. The various consortium partners of the company in the 16 blocks are ONGC, GSPC, Gazprom, OIL, IOC, Hardy Exploration & Production, Enpro Finance Private Ltd., ENI India Limited, Jubiliant, GGR Canada, Daewoo, OVL, Korea Gas, Oilex, Videocon, BPCL and HPCL. GAIL’s participating interest in these blocks varies between 10 and 80 per cent.

New Delhi, March 31
Over 70 companies have evinced interest in the 55 Indian oil and gas blocks offered under the 6th round of New Exploration Licensing Policy (NELP-VI) for exploration and production.

Speaking at the road show held at Houston (US), Petroleum Minister Murli Deora said that the response of US companies has not been encouraging in the past which should change as there has been sea change in the policy framework and investment environment in India.

A Petroleum Ministry statement said, the current offer comes in the midst of several hydrocarbon discoveries particularly after the launched NELP. NELP has resulted not only in trebling area under exploration acreage but has also led to 30 hydrocarbon discoveries adding about in-place reserves of 515 million metric tonnes of oil and oil equivalent gas.

It said the response to the road show was highly exciting as 72 international companies including 32 E&P companies participated in the show.

The companies included ExxonMobil, Chevron Texaco, Conoco Phillip, BHP (Australia), Anadarco, Shell, BG, Cairn Energy, Occidental, Geoglobal Resources (Canada), Western Geophysical, GS Technologies and Marathon, Seata Resources.

The Minister referred to the Petroleum and Natural Gas Regulatory Bill (PNGRB), which was passed by the Parliament recently, and said that the initiative add to the stability in policy framework. He assured his fullest commitment to the transparency, speedy decision making, providing all facilitation to the companies participating in the E&P sector in particular and petroleum sector in general.

He also had one-on-one meeting with the Chairman and CEO of ExxonMobil, Mr Rex Tillerson, along with Mr M.S. Srinivasan, Secretary (P&NG), Petroleum Secretary, said that there is a level-playing field with equal opportunities to all in the NELP regime.

In his address, Mr Joe Neuhoff, Director for Energy and Environmental Industries, US Department of Commerce, extended support to the companies deciding to invest in the Indian hydrocarbon sector in general and E&P sector in particular.

Mr Deora is leading a high-level delegation, which is in Houston, to hold the road show for promoting investment/participation in the 55 exploration blocks, which include 24 deepwater blocks, six shallow water blocks and 25 onshore blocks. This offer covers the highest ever acreage of 352 thousand sq km., nearly 12 per cent of the Indian sedimentary area. 

New Delhi, March 31
India’s external debt has dropped to $119.20 billion by December last year from $124.20 billion in September, 2005 after redemption of India Millennium Deposits (IMDs).

According to a press statement issued by Ministry of Finance, “The contraction in external debt outstanding at end-December 2005 was essentially brought about by a drop in external commercial borrowings reflecting redemption of IMDs of $5.5 billion.” 

Component-wise, long-term debt outstanding at $110.3 billion at end-December 2005 showed a fall of $5.49 billion over the quarter due to lower stock of commercial borrowings. Short-term debt increased by 6.3 per cent over the quarter to 8.931 billion on account of a rise in trade credits.

Increase in trade credits was attributed to larger import growth during the current fiscal year so far.

As regards their share in total debt stock, Non-Resident deposits accounted for 27.9 per cent of the total debt at end-December 2005.

India’s foreign currency reserves including foreign currency assets of the RBI, gold, SDRs and Reserve Tranche Position in the International Monetary Fund stood at $137.2 billion at the end of December 2005.

“The external debt management policy of the Government continues to be one of caution, focussing on raising loans from least expensive sources preferably with longer maturity profiles, accelerating growth of exports, monitoring of short-term debt, keeping commercial debt under manageable limits and encouraging non-debt creating capital flows,” the statement said. 

Foreign currency assets of the RBI were of the order of $131 billion as on December 31, 2005, providing a cover of around 110 per cent to total external debt stock.

US dollar continues to be the major currency of denomination in India’s external debt portfolio. The share of US dollar in the debt stock of the country has, however, declined from 54.3 per cent at end-March 2002 to 44.6 per cent at end-December 2005.

Kolkata, March 31 
In a new twist to the ongoing war between the West Bengal Government and NRI industrialist Purnendu Chatterjee for the control of Haldia Petrochemicals Limited, the state government has now offered to either sell its entire stake to Chatterjee or buy his stake to settle the dispute.

The West Bengal Industrial Development Corporation (WBIDC) today submitted the new proposal before the Company Law Board. The WBIDC said it was willing to sell its entire stake to the Chatterjee Group or same buy the entire stake held by TCG and its affiliates in HPL.

The WBIDC said on a CLB appointed date it could make the offer to buy TCG shares or sell its shares to TCG at a price not lower than Rs 28.80. It also insisted in its proposal that if TCG was willing to buy its shares the transaction should be completed within 14 days from the date of offer failing which TCG would be obliged to sell its entire stake to the WBIDC. — PTI

Chandigarh, March 31
Godrej Agrovet plans to open about 40 Godrej Aadhar stores (agri services- cum- rural retail stores) in Punjab and Haryana in 2006- 07. Over 250 such stores will be set up in the two states within five to seven years with an investment of Rs 200 crore, Executive Vice- President of Godrej Agrovet R. S. Vijan said here today. He was here after inaugurating two retail stores at Jagraon (Ludhiana) and Malsian (Jalandhar).

“As of now, there are 22 Aadhar stores in India, including eight in Punjab and Haryana. Punjab and Haryana is an important market for the company, and over 250 stores (from a total of 1000 stores planned across India) will be opened here,” he said.

The stores are being opened in two formats - as hubs (10,000 sq. feet area) and as spokes (2000 sq. feet area). During the first quarter of this fiscal, spokes would be opened at Hoshiarpur, Tarn Taran, Patti, Kaithal and Fatehabad. The first business hub would be opened at Barnala shortly.

Mumbai, March 31
Gold prices shot up by a whopping Rs 290 to end at a new historic closing high of Rs 8,490 and silver zoomed by a massive Rs 1,650 and closed at an all-time high of Rs 17,405 on the bullion market here today due to heavy stockists’ buying following a steep rally in global prices.

Standard gold (99.5 purity) started the day on a new intra-day high of Rs 8,520, but later softened due to lack of necessary follow-up, but ended at a new closing high of Rs 8,490, showing a remarkable rally of Rs 290 over the previous close of Rs 8,200.

Similarly, pure gold (99.9 purity), after a record high start at Rs 8560, softened and finished at a all-time closing high of Rs 8530, also showing a huge rally of Rs 290 over the previous close of Rs 8240. The previous record high for standard gold was Rs 8230 touched on February 3.