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Transfer global oil price hike to users: Montek
Hyderabad, May 4  
The Planning Commission today said the surge in global oil prices should be passed on to customers, but favoured having some provisions to safeguard the interests of vulnerable sections of the society. “The Planning Commission believes that it is logical to pass on (increase in oil prices to customers) and make special provisions where they are needed,” its Deputy Chairman Montek Singh Ahluwalia told reporters on the sidelines of an ADB seminar here.

Govt faces political hitch in hiking oil price
New Delhi, May 4
Concerned with dilemma of saving the oil marketing companies and the political fallout of the immediate hike in oil prices amid ongoing elections, the government today tried to play down the issue. It said all such reports are totally speculative and the process of consultations with allies and other parties has yet to begin.

NTPC told to run gas-based plants on 
liquid fuel

New Delhi, May 4
In a bid to partially bridge power shortages in northern states, the government has asked NTPC Ltd to run its
gas-based power plants on liquid fuel.

FDI policy evolving: FM
Hyderabad, May 4
Finance Minister P Chidambaram today indicated that India’s FDI policy was evolving to address the concerns voiced by foreign investors.


Finance Minister P. Chidambaram welcomes Vice-Minister of Finance and ADB Alternate Governor for the People’s Republic of China Li Yong in Hyderaba Finance Minister P. Chidambaram welcomes
Vice-Minister of Finance and ADB Alternate Governor for the People’s Republic of China Li Yong in Hyderabad on Thursday — PTI photo





This handout image provided by Heritage Auctions shows a rocking chair that former US President John F. Kennedy kept in his White House apartment.
This handout image provided by Heritage Auctions shows a rocking chair that former US President John F. Kennedy kept in his White House apartment. The chair is likely to sell for more than $1 lakh at an auction to be held on June 7 in Dallas, Texas. — AFP

 

Sharp decline in gold sales
Chandigarh, May4
Blame it on forward trading in gold through commodities exchange, or large-scale buying of gold to convert dollars into the metal by Russia, China and Japan, gold has gone beyond the reach of common man.

ICICI Venture buys stake in Metropolis
Mumbai, May 4
ICICI Venture and Metropolis Health Services Ltd today jointly announced a significant minority stake sale in MHSL for Rs 35 crore to fund the expansion of the company’s geographical reach and entry into related areas of business, MHSL Chairman Sushil Shah said.

Govt to divest stake in Balco
New Delhi, May 4
The government has decided in principal to dispose of its remaining 49 per cent equity stake in Bharat Aluminium Company Limited.

Sintex to bag 74 pc in Indian arm of Zeppelin
Mumbai, May 4
Sintex Industries Ltd said today it will acquire a 74 per cent stake in the Indian arm of Germany-based Zeppelin Mobile Systeme GmbH in tranches.

RPL listing on May 10
New Delhi, May 4
After the successful completion of its public offer, garnering Rs 2,700 crore, Reliance Petroleum Ltd will list its shares on the bourses on May 10 or 11.

S.V. Prasad, CEO, Birla Mutual Fund, and Mr V. Sridar, CMD, UCO Bank, exchange the documents after signing an MoU in Kolkata
S.V. Prasad (left), CEO, Birla Mutual Fund, and Mr V. Sridar, CMD, UCO Bank, exchange the documents after signing an MoU in Kolkata on Thursday for a strategic alliance to distribute and market Birla Mutual Fund products. — PTI

Corporate Results
BPCL net jumps four times
Mumbai, May 4

The state-owned Bharat Petroleum Corporation Ltd has posted a net profit of Rs 1,788.3 crore for the quarter ended March 31, 2006, as compared to Rs 351.4 crore for the same quarter last fiscal, reflecting a jump of 408.90 per cent.

Bank Account
Canara Bank raises PLR by 50
basis point

Mumbai, May 4
Canara Bank has raised the prime lending rate by 50 basis points and hiked its home loan rates. The new rates will come into effect from May 5, the bank said in a statement today.

Havell’s India to expand
Hardwar, May 4
Electrical equipment-maker Havell's India Ltd said it would invest Rs 150 crore over the next three years for introducing new products and to fund acquisition plans.

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Transfer global oil price hike to users: Montek

Hyderabad, May 4
The Planning Commission today said the surge in global oil prices should be passed on to customers, but favoured having some provisions to safeguard the interests of vulnerable sections of the society.

“The Planning Commission believes that it is logical to pass on (increase in oil prices to customers) and make special provisions where they are needed,” its Deputy Chairman Montek Singh Ahluwalia told reporters on the sidelines of an ADB seminar here.

Increased global oil prices are anyway being paid by the country, he said to buttress his argument.

He said duties should be reduced to compensate for increase in international prices only if there is general surcharge on duties so that revenue is not lost and there is no adverse impact on fiscal deficit.

Yesterday, Finance Minister P Chidambaram had said any decision on raising petro prices could be taken only after consulting UPA allies.

“It is no longer an economic issue but a political one when oil prices cross $50 to $60 a barrel,” Mr Chidambaram had said.

He said the government has to consult its allies before taking any such decision. “It is for the Petroleum minister to meet them. So far it has not been done,” he added.

RBI Governor Y V Reddy had also said yesterday the Government has to take some decision on oil prices pass-through, which is not dependent on the daily movement of oil prices.

International oil prices are ruling at over $70 a barrel, but India, which imports 70 per cent of its crude oil, has not raised petroleum prices in 2006.

Dr Ahluwalia also said the recent hike in short-term interest rates would not put any adverse pressure on the Indian economy.

“It is the long term interest rates, which have detrimental impact on the economy and the recent rise was in short-term interest rates,” he told reporters.

HSBC country head and CEO Naina Lal Kidwai also said there was no upward pressure on interest rates since there is ample liquidity in the system.

So far as HSBC is concerned, it has not taken any decision on revising interest rates on lines of major PSU banks, she added.

Recently, PSU banks like SBI and PNB raised benchmark prime lending rates as well as home loan rates. The move was followed by HDFC as well.

Dr Ahluwalia also said all evidence suggests that states are not spending as much money as they are provided for in the budget. They are spending around 70 per cent of the allocation, he added.

However, the issue should also consider the facts that some orders might have been placed in some states but there are delays in clearing bills, which might reflect in unspent amount of money. — PTI

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Govt faces political hitch in hiking oil price  
Tribune News Service

New Delhi, May 4
Concerned with dilemma of saving the oil marketing companies and the political fallout of the immediate hike in oil prices amid ongoing elections, the government today tried to play down the issue.

It said all such reports are totally speculative and the process of consultations with allies and other parties has yet to begin.

Finance Minister P. Chidambaram, who is currently in Hyderabad to attend Asia Development Bank’s annual meeting tried to play down the reports regarding hike in oil prices shortly.

Officials in the Petroleum Ministry admitted that though oil marketing companies have been pressing upon the government for the past many days demanding to pass on the hike in international crude oil prices to the consumers, yet the Petroleum Minister has still to take the Cabinet and allies in confidence on the issue.

The final decision is expected to be taken by the Prime Minister after consulting the Left parties, and the final hike in petrol and diesel prices will depend upon the election results as well. The government is unlikely to touch kerosene prices, and will only marginally increase LPG prices.

“The average price of oil products’ basket for India has increased from $55.7 per barrel in April 2005- March 2006 period to $67.15 a barrel by April 2006. The highest price in May has touched $71.13 a barrel, thus increasing by around $15 per barrel. The oil companies are claiming that the under recovery due to delay in decision would be around Rs 75,000 crore this year, said a senior official in the ministry.

The sources maintain that armed with the recommendations of the Rangarajan Committee, the government may issue oil bonds to oil marketing companies in proportion to the hike in global oil prices, besides asking the upstream and downstream companies to subsidise the oil marketing companies and lastly resorting to hike of Rs 2-3 per litre hike in petrol and diesel prices.

Oil companies have demanded to compensate the under recovery of Rs 9.80 on petrol, Rs 10 on diesel and about Rs 16 on kerosene per litre besides Rs 125 on LPG cylinder. Since the oil marketing companies have not suffered net losses in the ‘balance sheets’ the government is expected to ask them to bear a part of the burden.

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NTPC told to run gas-based plants on liquid fuel

New Delhi, May 4
In a bid to partially bridge power shortages in northern states, the government has asked NTPC Ltd to run its gas-based power plants on liquid fuel.

“NTPC has been told to run its gas-based power plants of Dadri, Anta and Auraiya on liquid fuel,” Central Electricity Authority Chairman Rakesh Nath said on the sidelines of a conference here.

He said although the cost of generation from oil or naphtha would turn out to be about Rs 6.50 to 7.0 per unit, this higher cost would be billed to those states, which are overdrawing from the northern grid.

Running these plants on liquid fuel could generate an additional 150-200 MW, he said, adding this would help improve the situation in the region.

Such an arrangement is already in place in the western region, where NTPC is running its Kawas and Gandhar plants in Gujarat on naphtha for meeting peak-hour requirements, he said.

The shortages in northern region, including the national capital, are in the range of 3,000-4,500 MW and the Centre as well as power regulator CERC has already warned states such as Uttar Pradesh, which are heavily overdrawing from the grid.

Power Secretary R.V. Shahi has convened a meeting of energy secretaries of all northern states to discuss the issue on May 6, while Central Electricity Regulatory Commission would hear a petition against Uttar Pradesh for overdrawing electricity from the northern grid on May 9. — PTI 

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FDI policy evolving: FM
Tribune News Service

Hyderabad, May 4
Finance Minister P Chidambaram today indicated that India’s FDI policy was evolving to address the concerns voiced by foreign investors.

“I know that some concerns are being voiced about our FDI policy. Our FDI policy, like any other policy, is an evolving policy,” Mr Chidambaram told the delegates at the Annual Meeting of the Asian Development Bank (ADB) here.

Stating that India’s growth has been largely fuelled by domestic savings, he, however, accepted that FDI would play an important role in not only stepping up the investment rate but also in enabling transfer of technologies and the globalisation of Indian firms.

Foreign investors, who are already doing business in India, have had a satisfactory business experience in this country, he said, citing a BCG study, which said the average return on capital employed for MNCs was 19 per cent.

“I understand that all European and American banks operating in India are more profitable here than their global average,” he said.

Stressing that the investor confidence in India is at an all-time high today, he quoted A.T. Kearney and World Investment Report, 2005, which ranked India as the second most attractive investment destination among transnational corporations.

India’s growth performance of the last decade and half after the economic reforms ranks among the top six in the world growth league, while in purchasing power parity (PPP) terms, the growth puts India among the top four in the world.

By 2025, there could be more than 200 million new people earning incomes above $15,000 and household savings have moved up to 29 per cent of the GDP, Mr Chidambaram said.

Later, speaking at a seminar, he said, the services exports from India would touch $150 billion by end of the decade.

“The 25 to 30 per cent annual growth in services exports will continue in the next six years, and that will take the ‘invisible’ exports to about $150 billion by the end of the decade,” he said.

Quoting Dr Jeffrey Sachs, Mr Chidambaram said India was meeting almost 70 per cent of the world BPO market requirements. 

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Sharp decline in gold sales
Ruchika M. Khanna
Tribune News Service

Chandigarh, May4
Blame it on forward trading in gold through commodities exchange, or large-scale buying of gold to convert dollars into the metal by Russia, China and Japan, gold has gone beyond the reach of common man. Even as the lustrous metal inched closer to touch the 10,000 mark (per 10 gm) today, sale of gold jewellery has been at an all-time low in the region.

Jewellers in Ludhiana, Jalandhar and Ambala — the three cities accounting for highest trading of gold in the region, say that the hike in prices has led to a sharp decline in sales. In fact, the consumers who had invested in gold earlier, are the ones who are now selling it and making a neat profit.

Mr Sanjiv Dhanda of Dhanda Jewellers, Ludhiana, informed TNS that sale of gold jewellery had dropped by almost 80 per cent since May last year. "In Ludhiana, 10-15 kg of gold ornaments were traded each day last year. This has dropped substantially in terms of actual gold trading, though because of the price hike, the amount involved in trading has remained unchanged".

Mr Jagdish Kumar Jain of Gujranwala Jewellers, Jalandhar, says, "In terms of weight, sales have declined by 40 per cent. Even NRIs, who come here to look after their property through the year, are not buying much jewellery. Rather, there has been a 10 per cent increase in those selling off the gold, in order to make profit," he said.

Ambala, which is an important destination for buying jewellery, especially among people in surrounding areas of Punjab, Haryana, and Himachal Pradesh, too, is witnessing a slump in sales. On an average, gold worth Rs 1 crore is traded here daily. Mr Naresh Aggarwal, secretary of Sarafa Association, Ambala City, said the rising prices of gold was not a seasonal phenomenon, but a result of large-scale speculation in the metal, through commodities exchange.

Explaining the phenomenon, Mr Anand Sekri, president of the Ludhiana Jewellers Association, said forward trading and converting of their foreign exchange in gold by Russia, China and Japan, had led to the increase in prices.

"The daily consumption of gold in India is two tonnes, of which 40 per cent is bought in South India. China, Japan and Russia are buying 4-5 tonnes of gold daily. With these countries stocking the metal, and no other country willing to release its stocks in the market, the prices will continue to soar. In the near future, gold prices could actually go over Rs 12,000 per 10 gm," he said.

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ICICI Venture buys stake in Metropolis
for Rs 35 crore

Mumbai, May 4
ICICI Venture and Metropolis Health Services Ltd (MHSL) today jointly announced a significant minority stake sale in MHSL for Rs 35 crore to fund the expansion of the company’s geographical reach and entry into related areas of business, MHSL Chairman Sushil Shah said.

‘’ICICI Venture bought the minority stake in MHSL because, we believe that the healthcare sector in Asia , specifically India, is on the verge of witnessing a growth trajectory,’’ said Mrs Renuka Ramnath, CEO & MD, ICICI Venture.

The stake sale in MHSL was a precursor to the company going for an initial public offer.

MHSL, a pioneer in the referral laboratory concept and founded in 1981.— UNI

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Govt to divest stake in Balco

New Delhi, May 4
The government has decided in principal to dispose of its remaining 49 per cent equity stake in Bharat Aluminium Company Limited (Balco).

According to sources in the Ministry of Mines, the government had appointed State Bank of India (SBI) Capital Markets Ltd as independent valuer in December last to determine the fair value of the relevant shares. SBI Capital Market had already submitted its valuation report in the last week of January this year.

Balco paid a dividend of Rs 5.4053 crore to the government for the year 2003-04.

The shares are to be sold at a price higher than their fair value and unit sale price.—UNI

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Sintex to bag 74 pc in Indian arm of Zeppelin

Mumbai, May 4
Sintex Industries Ltd said today it will acquire a 74 per cent stake in the Indian arm of Germany-based Zeppelin Mobile Systeme GmbH in tranches.

The company has signed a share purchase agreement with Zeppelin Mobile System India Ltd (ZMI), its German parent, for acquiring the stake in tranches, Sintex said.

ZMI is engaged in the business of designing and commissioning of shelters. It also designs sophisticated polyurethane foam- based shelters and structures for the telecom sector, mobile hospitals, refrigerated bodies and other multi-purpose shelters. — PTI

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RPL listing on May 10

New Delhi, May 4
After the successful completion of its public offer, garnering Rs 2,700 crore, Reliance Petroleum Ltd will list its shares on the bourses on May 10 or 11.

Sources in the know of the devlepment said the allotment of the shares have been completed and it would be listed on the Bombay Stock Exchange and National Stock Exchange.

The company, whose maiden IPO opened on April 13 and closed on 20, had offered 45 crore shares to the public. — PTI 

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Corporate Results
BPCL net jumps four times

Mumbai, May 4
The state-owned Bharat Petroleum Corporation Ltd (BPCL) has posted a net profit of Rs 1,788.3 crore for the quarter ended March 31, 2006, as compared to Rs 351.4 crore for the same quarter last fiscal, reflecting a jump of 408.90 per cent.

The company said its total income has increased from Rs 16,110.8 crore in Q4 FY 04-05 to Rs 21,430.0 crore for Q4 FY 05-06.

It has posted a net profit of Rs 129.8 crore for the year ended March 31 (FY 05-06) as compared to Rs 965.8 crore for the year ended March 31 (FY 04-05). Total income has increased from Rs 59,421.4 crore in FY 04-05 to Rs 72,825.9 crore for FY 05-06.

Merck profit up

Merck Ltd has posted 98.09 per cent increase in net profit to Rs 18.54 crore for the quarter ended March 31, 2006, as compared to Rs 9.35 crore for the corresponding quarter previous year.

The company said its total income has increased by 40.28 per cent to Rs 107.43 crore for Q1 FY 2006 from Rs 76.58 crore in Q1 FY 2005.

Sales grew by 38 per cent to Rs 101.5 crore and the profit before taxes grew by 112 per cent to Rs 31 crore.

Century Textiles

Century Textiles & Industries Ltd has posted a net profit of Rs 25.21 crore for the quarter ended March 31, 2006, as compared to Rs 42.54 crore for the quarter ended March 31, 2005, a fall of 68.74 per cent.

Announcing the results, the company said its total income (net of excise) has increased from Rs 695.86 crore in Q4 FY 04-05 to Rs 727.80 crore for Q4 FY 05-06.

It has posted a net profit of Rs 109.05 crore for the year ended March 31, 2006 (FY 05-06) as compared to Rs 109.63 crore for the year ended March 31, 2005 (FY 04-05). Total Income (net of excise) has increased from Rs 2525.07 crore in FY 04-05 to Rs 2685.52 crore for FY 05-06.

The Board of Directors of the company has recommended dividend of 30 per cent on paid-up equity share capital for the year ended March 31, 2006 as against 25 per cent paid in the previous year on equity shares of Rs 10 each. The dividend will be made payable on or after July 17, 2006.

Raymond net down

Textile major Raymond Limited today reported a decline in its net profit at Rs 34.99 crore for the fourth quarter ended 31 March 2006, a fall of 7 per cent as against the same period last year.

The fall in net profit is due to the increased tax provision of Rs 9.58 crore as compared to 'nil' in the same quarter of the previous year, a statement released here said.

The Board has recommended a dividend of 50 per cent.

The company reported a 45.5 per cent increase in net profit at Rs 121 crore for the year ended 31 March, 2006 as against Rs 83.15 crore for the last fiscal. — Agencies

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Bank Account
Canara Bank raises PLR by 50 basis point

Mumbai, May 4
Canara Bank has raised the prime lending rate (PLR) by 50 basis points and hiked its home loan rates. The new rates will come into effect from May 5, the bank said in a statement today.

It said the lending rate has been increased to 11.25 per cent from 10.75 per cent.

The floating interest rate on housing loans has been revised to 9 per cent for all periods from 8.5 per cent. Fixed housing loans rate has been revised to 9.5 per cent from 9.25 per cent for loans of up to 5 years tenure. For loans of more than 5 years tenure, the interest rate has been increased to 9.75 per cent from 9.5 per cent.

Corporation Bank

The Corporation Bank has increased the interest rates offered on domestic term deposits by 0.25 per cent to 0.50 per cent.

For term deposits of less than Rs 1 crore, the revised rates are 4.50 per cent for a maturity period of 15-45 days, 5.25 per cent for 46-90 days and 5.75 per cent for 91-179 days.

The revised rates for 180 days to less than a year are 6 per cent, for a year to less than three years are 6.50 per cent, for three years to less than five years are 7 per cent and for five years and above are 7.25 per cent.

For senior citizens, deposits for tenures of 91 days and above will fetch an additional interest of 0.75 per cent over the above rates, a statement released by the bank said here. The revised rates are effective from 1 May, 2006.

Punjab & Sind Bank

The Punjab and Sind Bank today said it has raised its Benchmark Prime Lending Rate (BPLR) to 11.5 per cent from the earlier 11 per cent.

Accordingly, the rate of interest on advances linked with BPLR will go up by 0.5 per cent, a statement released here said.

The bank has, however, decided not to pass on the effect of the hike in BPLR to small scale industries and small and medium enterprises, which the bank has identified as thrust areas for lending.— Agencies

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Havell’s India to expand

Hardwar, May 4
Electrical equipment-maker Havell's India Ltd said it would invest Rs 150 crore over the next three years for introducing new products and to fund acquisition plans.

"We have outlined a capex plan of Rs 150 crore for further expansion and acquisitions," Havell's India Ltd Director Anil Gupta said here.

He said the company would leverage on its strengths and introduce new products in the electrical equipment space.

On acquisitions, Mr Gupta said, "Havell's India is already in talks with a Greek company and would look to expand in both organic and inorganic ways in the near future."

Meanwhile, the company inaugurated its new 2.4 million fans per annum plant at Hardwar today. PTI

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BRIEFLY

Oak invests $30 m in GCI
Bangalore, May 4
Venture capital firm Oak Investment Partners has infused $30 million equity funding in IT service provider Global Consultants Inc (GCI) to pick up a minority stake in the business. GCI officials said the proceeds would be used to expand the company’s existing offshore delivery capacity and service capabilities in India as well as acquire strategic offshore and service-oriented technology firms. “We decided to partner with Oak because of their tremendous track record of helping portfolio companies plan and execute aggressive growth strategies,” Chairman and CEO of the $200- million GCI Hiten Patel said here today. — PTI

Siemens buyout
Mumbai, May 4
Siemens Ltd has completed the acquisition of a 50 per cent equity stake in Flender Ltd for Rs 67.8 crore. Flender is now a Siemens company along with its manufacturing unit located at Kharagpur, West Bengal, the company said. It has acquired a 50 per cent stake in Flender from Babcock Borsig Ltd. Flender is one of the leading players in the industrial gearboxes segment with revenues of around Rs 85.7 crore for the year ended September 30 last year. — UNI

Ford Fiesta
New Delhi, May 4
Ford India, a wholly-owned subsidiary of the Ford Motor Company, today announced its plans to introduce its new model Fiesta 1.4 SXi Duratorq diesel, in select markets. The growing demand for the Fiesta and Ikon has buoyed the company to launch the new model, which will be available only in Andhra Pradesh and Punjab. — UNI
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