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Cement cos told to rein in prices
Gold hits new high at Rs 10,660
Mittal gets US clearance for Arcelor bid
MRTPC order to Monsanto on
Income tax on coop banks to stay
Tata Motors selects WB for Rs 1 lakh
Govt to divest stake in PFC, NMDC
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India, China aim at $100 billion trade by 2015
Commercial banks to implement Basel II norms by March 31
CORPORATE RESULTS
BANK ACCOUNT
Apollo Hospitals
Air Deccan IPO
DLF public offer
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Cement cos told to rein in prices by May 15
New Delhi, May 12 }After experiencing the impact of foodgrain procurement crisis, the UPA government is heading towards another controversial increase in prices of cement that poses serious threat to the booming housing and government infrastructure project. Sensing the possible politicisation of the issue, the government today gave an ultimatum till Monday to the cement manufacturers to bring down prices, which has increased by about 30 per cent over the past few months, crossing Rs 200 a bag in North India. Giving a warning to the cement manufacturers, the Minister of Commerce & Industry, Mr Kamal Nath, today said, “ We want you to tell us by Monday what you are proposing to do. If we do not hear from you within the next three days, the government will have to take necessary steps to control the price rise and to explore other options.” Cement prices are heading northwards due to strong cartel of manufacturers emerged in recent past and backed by spurt in demand in the construction sector and mega infrastructure projects announced by the government. The industry sources said it was expecting prices to firm up still further due to increasing demand from the construction sector, but it may bring down prices marginally for the time being to provide a relief to the government. They admitted that average price of cement bag has increased by Rs 45 to Rs 70 across the country as against about Rs 16 a bag increase in input costs. At present in Delhi, cement prices are hovering around Rs 200 a bag, Rs 202-Rs 203 in Haryana, but about Rs 170 a bag in Rajasthan, where large number of cement manufacturers are based. Meanwhile, the Cement Manufacturers Association said the recent Supreme Court ruling banning overloading in trucks and hike in coal prices have affected the prices. But insiders say, “Apart from strong cement demand in the international market, cartel of manufacturers is operating to jack up the prices.” Notably, the cement industry raised prices by nearly 15 per cent in February this year. Prices have shot up by nearly 30 per cent from February 2005 onwards. Last year, the cost of a cement bag was around Rs 140-175, which has now shot up to a whopping Rs 195-210. The rise in cement prices have badly affected government’s road network and national highway projects as some contractors are not ready to work on the agreed price. The Delhi centre of Builders’ Association of India, an apex body of engineering construction contractors, also expressed concern over the rising cement prices, and demanded that the government appoint a Cement Regulatory Authority to check its price.
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Gold hits new high at Rs 10,660
New Delhi, May 12 With the rising oil prices causing concerns of inflation, investors preferred to buy gold considering it to be a safe haven during such a
crisis. Marketmen said the precious metal might gained more ground as speculators joined the general investment buying, which helped in jacking up the prices. Geopolitcal tensions, weak dollar and marriage season were the favourable factors pushing up the gold prices to dizzy heights. Standard gold and ornaments were higher by Rs.160 each at Rs 10,660 and Rs 10,110 per 10 gram. Sovereign remained in bullish form with the general trend and notched up by another Rs 150 at Rs 8150 per piece of eight gram. Silver ready was unaltered at Rs.21,200 per kilo and weekly-based delivery rose by Rs.165 at Rs.21,925 per kilo. Silver coins were higher by Rs.100 at Rs.24,500 for buying and Rs.24,600 for selling of 100 pieces.
— PTI
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Mittal gets US clearance for Arcelor bid
Amsterdam, May 12 Mittal Steel also reported today a 17 per cent rise in first quarter operating income to $1.017 billion from the last quarter of 2005 on sales of $8.430 billion. The steelmaker proposed earlier this week to sweeten its 20 billion euros ($25.44 billion) bid for Arcelor, provided Arcelor's Board ended its resistance to a takeover and recommends a revised bid. ''The (US) Department of Justice has not issued a request for additional information and documentary material ... in connection with the transaction,'' Mr Mittal said in a statement. The US Justice Department, however, continued to investigate an area of overlap between the two companies' operations in North America. Mr Mittal said its intention to sell Arcelor's recently acquired Canadian unit Dofasco to ThyssenKrupp would satisfy possible concerns by the department. Mittal wants to sell Dofasco partly to finance the Arcelor acquisition, but Arcelor has transferred Dofasco's ownership to a special Dutch foundation to hinder Mittal's move. Meanwhile, Arcelor today reported a better-than-expected profit of euro 761 million for the first quarter, down 20 per cent on the same period last year as steel prices fell and the cost of oil rose. Analysts surveyed by Dow Jones Newswires had expected Arcelor to post a 27 per cent fall in net profit to euro715.5 million, from euro 934 million a year earlier. Arcelor said it expects selling prices to pick up in the second quarter.— Agencies
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MRTPC order to Monsanto on Bt cotton prices
Hyderabad, May 12 A PIL was filed by the state government before the MRTP Commission in January this year against Monsanto and other seed companies, challenging the heavy charge of royalty. Monsanto was alleged to be imposing unreasonable trait value, royalty of Rs 900 per 450 gm of Bt cotton seed. The press note said an injunction has been granted against the Monsanto company, restraining them from imposing such a high cost, and directed them to charge royalty reasonably, as they are charging in the USA and China. PTI adds from Delhi: Meanwhile, Monsanto today said it will appeal against the MRTPC order that directed it to fix lower prices for genetically modified seeds in the Supreme Court. "This interim ruling is beyond the Commission's jurisdiction and inconsistent with the laws of India and the MRTP Act. Mahyco Monsanto Biotech India Ltd would appeal against the decision in Supreme Court shortly," MMB Managing Director M K Sharma said.
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Income tax on coop banks to stay
New Delhi, May 12 Replying to queries in the Lok Sabha, he said the “ government is serious about strengthening cooperative banks across the country most of which are today afflicted by corruption, lack of good governance and accountability.” The state governments, he said, had been asked to sign MOUs with the Centre to get funds for restructuring these banks. Rejecting the demand of some members for waiving income tax imposed on the profit of cooperative banks, the Finance Minister said: “Out of over one lakh cooperative banking institutions, the tax would be applicable only to 2,284 banks as the primary agricultural credit societies (PACS) and primary co-operative agriculture and rural development banks (PACS) are outside the net.” Since the tax has to be paid only by the profit-making banks, he said, the withdrawal of the exemption would be applicable only to 1,682 banks as per the latest figures available. Notably, the Cooperative Bank Employees’ Association has given an ultimatum to the government to withdraw tax. The Finance Minister informed the bank employees that 98 per cent of the co-operative banking institutions would be out of the tax net and they should not be misled by vested interests.
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Tata Motors selects WB for Rs 1 lakh car project
Kolkata, May 12 Mr Bhattacharjee, who had a meeting with Tata Motors Managing Director Ravi Kant in the morning, said the company has finally selected West Bengal for setting up the plant which would manufacture the Rs 1 lakh car. Industry Minister Nirupam Sen said the company would take a decision within 10 to 15 days on selection of site.
— PTI
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Govt to divest stake in PFC, NMDC
New Delhi, May 12 The government has decided to disinvest 5 per cent of its 100 per cent equity holding in the PFC, Minister of State for Finance S. S. Palanimanickam said in the Lok Sabha. Apart from this, the government has also decided to sell off 15 per cent of its equity holding in the NMDC where its present holding is 98.34 per cent. It will be carried out through ‘’offer for sale’’ in the domestic market. The disinvestment in the PFC would be through piggy-back on the public issue being done by the PFC, the minister added.
— UNI
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India, China aim at $100 billion trade by 2015
New Delhi, May 12 “We are setting a new target of $100 billon that should be achieved by 2015” said Mr Yu Ping, Vice- Chairman of the China Council for the Promotion of International Trade (CCPIT) at Ficci today. Interacting with business delegates, he said during the past 10 years, China and India had developed into powerful economic forces in Asia, but to take up the bilateral trade to a higher level some concrete steps would have to be taken. Mr Ping called for lifting of trade barriers, further opening up of the market, and coordination between the government and entrepreneurs to further accelerate the level of trade ties. Welcoming the delegates, Mr Sunil Kant Munjal, past president, CII and Managing Director and CEO, Hero Corporate Services Ltd, stated that India was excited about the potential of increasing economic links with China and optimistic about achieving the target of $100 billion by 2015. Mr Munjal stated that the setting up of the Indo-China CEO Forum, as announced in the CII meeting with Chinese Minister of Commerce, Mr Bo Xilai in Delhi in March this year, was expected to add further impetus to the process.
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Commercial banks to implement Basel II norms by March 31 Mumbai, May 12 Commercial banks in India will start implementing Basel II with effect from March 31, 2007, ''though, a marginal stretching beyond this date cannot be ruled out in view of latest indications of the state of preparedness,'' Ms Gopinath said. It has also been decided that banks in India will initially adopt the Standardised Approach (SA) for credit risk and the Basic Indicator Approach (BIA) for operational risk, the Deputy Governor informed, pointing out, ''The prime considerations while deciding on the likely approach included the cost of implementation and the cost of compliance.'' Pointing out that the RBI has tried to ensure that the banks have suitable risk management framework oriented towards their requirements dictated by the size and complexity of business, risk philosophy, market perceptions and the expected level of capital, Ms Gopinath said, ''Risk Based Supervision (RBS) in 23 banks has been introduced on a pilot basis.'' ''By opting to migrate to Basel II at the basic level, the RBI has considerably reduced the Basel II compliance costs for the system,'' she said, adding that ''in a way, the elementary approaches which have been identified for the Indian banking system are very similar to the Basel I methodology.'' Describing as ''not an entirely correct assessment'' that the implementation of the elementary levels of Basel II would significantly increase the cost of regulatory compliance, the RBI Deputy Governor admitted that while some additional capital would be required, the cushion available in the system, which at present has a Capital to Risk Assets Ratio (CRAR) of over 12 per cent, provides for some comfort. While the banks have also started exploring various avenues for meeting the capital requirements, the apex bank has already issued policy guidelines enabling issuance of several instruments by the banks such as innovative perpetual debt instruments, perpetual non-cumulative preference shares, redeemable cumulative preference shares and hybrid debt instruments so as to enhance their capital raising options. ''With a view to have an objective assessment of the true cost of implementation of Basel II, banks would be well advised to institute an internal study to make a true assessment of the costs involved exclusively for the elementary approaches,'' Ms Gopinath said, adding that the feedback received from the banks is that ''they do not see Basel II implementation as a costly proposition.'' — UNI
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Blue Star net up 21.45 pc
Mumbai, May 12 Total income rose to Rs 399.97 crore in the fourth quarter during 2005-06 as against Rs 319.49 crore in the year-ago period, up 25.19 per cent, the company informed the BSE. The total income stood at Rs 1,178.62 crore for the year 2005-06 as against Rs 930.92 crore for the year 2004-05. Voltas Ltd
Voltas Ltd has posted a 3.94 per cent rise in net profit at Rs 23.73 crore in the quarter ended March 31, 2006, as compared to Rs 22.83 crore for the corresponding period last fiscal. The company’s Board recommended a dividend of Rs 6 (60 per cent) on equity shares of Rs 10 each for the year 2005-2006, Voltas said. A decision to split the equity shares of the company in the ratio of 1:10 has also been recommended at the meeting where shares of the face value Rs 10 each would be split into 10 shares of Re 1 each. The total income also rose to Rs 522.91 crore during the fourth quarter ended March 31, 2006, as against Rs 492.53 crore during the same quarter last fiscal up 6.16 per cent.
— PTI
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BoB hikes interest on home, retail loans
Mumbai, May 12 The bank had earlier raised its prime lending rate (PLR) from 10.5 per cent to 11 per cent with effect from May 1. Accordingly, rate of interest on housing loans, under floating rate options, has been increased by half a percentage point across-the-board. Besides housing loans, rates have also been raised by 50 bps on all retail loan products. Deutsche Bank
Deutsche Bank announced the launch of its new service 'Star Alliance' in India, through which its customers who visit overseas can withdraw money free-of-cost from 30,000 ATMs in 40 countries. ''Our overseas customers require money and for their convenience we have brought out a special service 'Star Alliance'. Through this facility, they can withdraw money from 30,000 ATMs in 40 countries free- of-cost. This is the first-of-its-kind in India and we are happy and proud to bring this service to India,'' Deutsche Bank (India) Retail Banking Head and MD Ajay Bimphet told reporters here last night. The bank has tied up with five foreign financial institutions for this special service.— Agencies
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Apollo Hospitals
Mumbai, May 12
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New Delhi, May 12
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DLF public offer
New Delhi, May 12
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PFL buys 55 pc in UK media co
Seax Leather Inflation up RBI bar Unitech Ltd Narayana Murthy Grand debut |
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