Himachal cancels MoU with L&T
Shimla, July 24
The Himachal Government has cancelled the MoU signed for the Broh-Shind plant with Larsen and Toubro.

HP credit deposit ratio up
Shimla, July 24
Himachal Pradesh has registered a satisfactory improvement in the credit deposit ratio that has touched 47.55 per cent for the year 2005-06.

Essar reopens 350 petrol pumps 
New Delhi, July 24
Essar Oil Ltd, India’s second largest fuel retailer, has reopened about 350 petrol pumps it was forced to shut down due to heavy losses on matching the petrol and diesel prices with hugely subsidised public sector rates.

Now submit IT returns at post offices
New Delhi, July 24
Ahead of last day for filing income tax returns July 31 approaching, the government today designated around 2,000 post offices across the country to accept the returns from July 26 onwards. This will be in addition to IT offices, banks and special help centres set up by the IT department.

Dena Bank net up at Rs 18.49 cr
Mumbai, July 24
Dena Bank has posted a net profit of Rs 18.49 crore for the first quarter ended June 30, 2006, as against the loss of Rs 189.30 crore for the same period last fiscal. Dena Bank Chairman & Managing Director P. L. Gairola said here today that the operating profit for the quarter which was Rs 124.07 crore for the quarter ended June 30, 2005, had marginally declined to Rs 117.18 crore mainly due to lower treasury earnings.

Hindujas buy out IVECO in Ashok Leyland
New Delhi, July 24
The Hinduja Group said today it had bought IVECO’s stake in commercial vehicle maker Ashok Leyland and Ennore Foundries.

Matrix to expand in Punjab
Chandigarh, July 24
Matrix Cellular (International) Services will retail its SIM cards through exclusive shops at all international airports across the country, besides tying up with a chain of money changers for promoting Matrix SIM cards to their customers. Matrix will also expand its retail operations in Ludhiana, besides setting up an office in Amritsar by the month end.

CORPORATE RESULTS
Nahar Ind to invest Rs 800 crore
Net profit jumps to Rs 19.29 crore in Q1
New Delhi, July 24
Nahar Industrial Enterprises Ltd (NIEL), the flagship company of Nahar Group of Ludhiana with interests in spinning, weaving, fabric, garments and sugar has announced to invest Rs 800 crore in the textile division, besides putting up a 53-MW co-generation power project,” said Mr Kamal Oswal, Vice-Chairman and Managing Director, here today.

Haier Telecom launches mobile phones

Geneva, July 24
The talks among six key World Trade Organisation (WTO) member countries to liberalise global trade collapsed today, with India attacking the developed countries for not offering substantial cuts in farm subsidies.

“Talks have failed. All negotiations have been suspended,” Commerce Minister Kamal Nath told reporters.

The meeting, called by WTO Director-General Pascal Lamy, was the latest attempt to revive the stalled talks after the failure of the Mini-Ministerial earlier this month. The fate of the next meeting, scheduled for July 28-29, was not clear.

“It could take anywhere from months to years,” Mr Nath said on the possibility of resumption of talks.

Without naming the US, Mr Nath said in a statement earlier at the meeting that “unfortunately one member is unable to make any effective reduction in trade distorting subsidies, but at the same time is insisting that developing countries open up their markets to provide access to their subsidised products”.

The talks at the informal trade negotiations committee of the WTO failed after a marathon 14-hour meeting between representatives of the six nations - Australia, Brazil, Japan, the European Union and the US, besides India.

“I speak with sadness and a sense of loss. The development in the G-6 meeting have highlighted that there is little ground for convergence on the core issues of the Doha Round as of now,” the minister said.

“We cannot accept opening of our markets for subsidised agriculture products,” Mr Nath said after the meeting that was called by Mr Lamy.

The crisis recalled a similar breakdown in 1990 during the previous round of free trade negotiations the Uruguay Round.

That round, launched in 1986, was only finished in 1993. Yesterday’s negotiations failed to make progress in the key area of farm subsidies, known as domestic support, where the US is under pressure to make further concessions.

Meanwhile, the US said the EU and other WTO members that it calls “protectionist” had not done enough to lower farm tariff barriers to allow it to move further on subsidies.

“We won’t give up ... (but) unfortunately it became clear that a “Doha Light” is the preferred option of some,” said US Trade Representative Susan Schwab ahead of tomorrow’s final meeting.

Diplomats have said failure by the six, who have already made several “last ditch” bids for a deal, would leave the 149-state WTO without enough time to complete the complex details of a global free trade treaty by the end of the year.

The end-year deadline for concluding the Doha round has been dictated by the 2007 expiry of special US presidential powers to negotiate on trade.

The round has been billed as a once-in-a-generation chance to boost global growth and lift millions out of poverty.

The G6 countries account for some three quarters of world trade and represent a wide range of commercial interests.

Washington says its offer to reduce subsidy limits by 60 per cent is significant but trade rivals argue the cuts leave real spending unaffected.

Diplomats said EU Trade Chief Peter Mandelson spelt out how close Brussels could get to the level of tariff and subsidy cuts demanded by developing countries. “But that was not enough for the US,” said another diplomat. — PTI/Reuters

Kolkata, July 24
The SBI has approached the Finance Ministry for floating a rights issue to meet core capital requirements in the coming years, its Managing Director T. S. Bhattacharya said today.

Mr Bhattacharya said that since the government holding would not be allowed to go down below 51 per cent, the other option was to float a rights issue for which the government had to subscribe to.

While the government holding in the bank was 59.73 per cent, the balance was free floating. However, he said the bank would be able to meet the Tier I capital requirements till 2008 by way of ploughing back profits. The bank would raise Tier II and foreign currency bonds to meet additional capital requirements, Mr Bhattacharya said, adding that the SBI was targeting 25 per cent asset growth in the next few years.

New Delhi, July 24
In one of the largest overseas takeover deals by a textile firm, Spentex Industries today announced acquiring Uzbek spinning firm Tashkent-To’yetpa Tekstil LLC for about $81 million (Rs 350 crore approx).

Spentex will acquire two manufacturing facilities located in Uzbekistan’s capital Tashkent and in To’yetpa, which are the largest manufacturing units in Central Asia, Spentex Managing Director Mukund Choudhary told reporters.

The two units have an installed capacity of 2,20,000 spindles and weaving capacity of 236 air jet looms, he said, adding that the deal has made Spentex India’s largest spinning firm with an installed capacity of over 5,70,000 spindles.

The acquisition follows the recent takeover by GHCL of UK-based Rosebys at $40 million. Spentex had also recently acquired Indo Rama Textiles for Rs 220 crore.

Mr Choudhary said the company would pay $81 million over a period of four years. Spentex has formed a subsidiary, Spentex Tashkent Toyetpa in Uzbekistan for the transaction, which would be funded by a mixture of internal accruals, equity and borrowings.

Besides, the Uzbekistan Government has given Spentex a number of incentives such as 15 per cent discount on raw cotton, exemption from corporate tax, customs duty and VAT.

Spentex will have to pay 6 per cent of income tax as compared to other exporters’ 12 per cent.

The two facilities of Tashkent-To’yetpa Tekstil LLC were a part of Uzbeg Kabool, a subsidiary of Korean textiles giant, Kabool Textiles. When Uzbeg Kabool went bankrupt, TTTL was incorporated by the Uzbekistan Government in 2005. — PTI

Shimla, July 24
The Himachal Government has cancelled the MoU signed for the Broh-Shind plant with Larsen and Toubro.

The action was taken for the failure of the company to take steps to implement the project. The MoU was signed in 1995 The company was also granted 292 hectare of land on lease for the project. However, before signing the lease deed it got the allotment transferred in the name of Ultra Tech Company. Work was not started despite repeated extensions of the MoU.

A notice was served on the company to show cause why the MoU should not be cancelled. The reply submitted was not found satisfactory, making the government cancel the MoU.

Fresh bids will now be invited to award the project which has been hanging fire for the past over two decades. Meanwhile, Lafarge, a global cement-manufacturing giant with 132 plants, is in race with six other companies for the Al Sindi cement project in Mandi district. The project was initially awarded to the Grasim Cement Company but subsequently the memorandum of understanding (MoU) was cancelled and fresh offers were invited.

Shimla, July 24
Himachal Pradesh has registered a satisfactory improvement in the credit deposit ratio that has touched 47.55 per cent for the year 2005-06.

This was stated by the Chief Secretary, Mr S.S. Parmar, while inaugurating the 104th HP state level bankers’ committee meeting here today. “The banks should provide easy, cheap and accessible credit to the entrepreneurs, especially in the area of power, tourism and education which would help in further improvement of the credit deposit ration,” he stated.

Mr Parmar said UCO Bank had adopted Sirmaur district.

Mr V.Sridar, Chairman and Managing Director of UCO Bank, and Convener, State Level Banker’s Committee, said “The banks have extended a total credit of Rs 2917.81 crore to various sectors during 2005-06”. The banks had provided Rs 801.48 crore to the agriculture sector, Rs 345.61 crore for small-scale industries and Rs 1247.24 crore to the services sector during 2006-07, he added.

New Delhi, July 24
Essar Oil Ltd, India’s second largest fuel retailer, has reopened about 350 petrol pumps it was forced to shut down due to heavy losses on matching the petrol and diesel prices with hugely subsidised public sector rates.

EOL Chief Executive (Marketing) Raj K Varma on July 13 wrote to the company’s franchisees, asking them to reopen shut outlets and commission about 450 petrol pumps under construction immediately on completion.

The company has 517 petrol stations, of which about 350 had shut down in April and the Mumbai-based firm temporarily halted commissioning of new outlets.

Essar suffered a loss of Rs 2.50 per litre on petrol and Rs 4.50 a litre on diesel, despite pricing them higher by Rs 2.50 per litre as compared to the retail selling prices of public sector oil firms - IOC, BPCL and HPCL.

“Effective July 16, 2006, because of a further increase in international prices, this is expected to increase to Rs 3.50 per litre on petrol and Rs 5.50 per litre on diesel,” he wrote.

The government is making good the losses made by public sector oil firms by issuing oil bonds and asking upstream firms like the ONGC and refiners like CPCL and MRPL to bear a part of the burden. “However, no such assistance is being provided to us and our representations in this regard, so far, have not borne any fruit,” Mr Varma wrote.

Essar has redrafted terms for the franchisees paying them 12.5 per cent ad-hoc compensation per annum on the total investment made in the petrol pump, besides 5 per cent lease rental.

The closure of 350 outlets had seen Essar’s petrol and diesel sales drop by about 95 per cent in June this year. Mr Varma said the franchisees would continue to get a special commission up to June and the new payment terms would come into effect from July 1.— PTI

New Delhi, July 24
Ahead of last day for filing income tax returns July 31 approaching, the government today designated around 2,000 post offices across the country to accept the returns from July 26 onwards. This will be in addition to IT offices, banks and special help centres set up by the IT department.

“As many as 2,000 post offices throughout the country have been designated to accept the IT returns from July 26 onwards. There will be no charges for availing of this facility,” Chairperson of the Central Board of Direct Taxes (CBDT) M.H. Kherawala told reporters here.

She said for individuals and HUFs not having income under the head “Profits and gains from business or profession” (i.e. in the case of individuals and HUFs having income only from salary or house property or capital gains or other sources), the due date for filing of return of income will remain July 31, 2006.

The tax payers should not wait for the extension of the deadline for filing returns.

Meanwhile, the department has extended the deadline for filing tax returns to October 31 from July 31, for those filing non-auditable accounts.

Non-auditable accounts are furnished by those businesses which have annual turnover of up to Rs 40 lakh and those professionals having income up to Rs 10 lakh per annum.

The Finance Ministry today notified new return forms Form No. 1 for corporate tax payers, Form No. 2 for non-corporate tax payers having business income, and Form No. 3 for non-corporate tax payers not having business income and Form No. 3B for fringe benefits.

Ms Kherawala said in order to enable the taxpayers to familiarise themselves with the new return forms and compile the information called for therein, the government has extended the due date for furnishing return of income and return of fringe benefits for assessment year 2006-07 from July 31, 2006 to October 31, 2006 in all cases of non-corporate taxpayers (including partners of the firms and charitable trusts and institutions).

Mumbai, July 24
Dena Bank has posted a net profit of Rs 18.49 crore for the first quarter ended June 30, 2006, as against the loss of Rs 189.30 crore for the same period last fiscal. Dena Bank Chairman & Managing Director P. L. Gairola said here today that the operating profit for the quarter which was Rs 124.07 crore for the quarter ended June 30, 2005, had marginally declined to Rs 117.18 crore mainly due to lower treasury earnings.

For the quarter ended March, 2006, the operating profit was Rs 175.27 crore while the capital adequacy ratio (CAR) stood at 10.46 per cent, well above the regulatory minimum of 9 per cent despite a robust growth of over 28 per cent in the loan book. Business mix was improved by 18.83 per cent to Rs 39,349 crore for the first quarter of 2006 from Rs 33,115 crore last year. The total deposits increased by 13.65 per cent to Rs 24,171 crore .— UNI

New Delhi, July 24
Nahar Industrial Enterprises Ltd (NIEL), the flagship company of Nahar Group of Ludhiana with interests in spinning, weaving, fabric, garments and sugar has announced to invest Rs 800 crore in the textile division, besides putting up a 53-MW co-generation power project,” said Mr Kamal Oswal, Vice-Chairman and Managing Director, here today.