New Delhi, November 7
The Central Board of Trustees of the Employees Provident Fund Organisation (EPFO) today deferred a decision till next month on the interest rate to be given to four crore subscribers for 2006-07 .

"Members representing employers, employees and the government expressed their views. The Board decided that the details of income and funds might be re-examined to find out if any distributable surplus was available," Labour Minister Oscar Fernandes told reporters here.

The issue would be taken up again at the next meeting to be held on December 10, he said, adding that "we would like to arrive at a decision on the EPF rate at that meeting".

Trade union leaders, who attended the meeting said the government was keen on reducing the interest rate to 8 per cent.

Mr Fernandes said a sub-committee of the EPFO was looking into the matter and the government would take a view only if there were difficulties in arriving at an agreed rate.

An 8.5 per cent interest rate would lead to a deficit of around Rs 454 crore and with the EPFO’s reserve funds used up in paying artificially higher EPF rates, it would not be possible to pay more than 8 per cent this year, said a note circulated among the Board members.

However, an 8 per cent interest rate would help the EPFO break even and generate a marginal surplus of Rs 17 crore.

The Board members were of the view that to stick to the existing 8.5 per cent rate, the government would have to compensate the EPFO for the deficit incurred.

The EPF rate was slashed to 8.5 per cent for 2005-06 from 9.5 per cent earlier. On account of 8.5 per cent, the deficit amounted to around Rs 365 crore, which was met from its own resources.

Consequent upon the government notification, the total payout was estimated to be Rs 6,889.04 crore as the interest to its four crore subscribers for 2005-06 against its projected interest income of Rs 6,523.15 crore.

The EPFO had a corpus of Rs 72,000 crore till March ,2004, which grew to Rs 79,000 crore by March, 2005.

He said the sub-committee had given an interim report in this regard and the final report was expected in a couple of weeks.

On amendments to the EPF Pension Scheme, including an increase in the age for pensioners from 58 to 60 years, the Labour Minister said he would meet union leaders within a week to decide the issue.

New Delhi, November 7
Petroleum Minister Murli Deora today ruled out a cut in the retail prices of petrol and diesel unless the global crude price dips to $52 per barrel. He said oil firms were still losing Rs 2700 crore per month on fuel sale.

"There is no proposal to reduce the petrol and diesel prices. What I have said is that we are studying the impact of falling international oil prices and will consider a reduction only when all losses on fuel sales are wipped off," Mr Deora told reporters here.

Petroleum Secretary M.S. Srinivasan said oil companies were still suffering losses on diesel, LPG and kerosene sale and the fall in the international oil prices has helped them make marginal profits only on petrol.

"The four sensitive products of petrol, diesel, LPG and kerosene make up 66 per cent of the total volume of petroleum products. Of this, petrol accounts for only 8 per cent and the rest 58 per cent were still being sold at a price below cost," he said.

While on petrol, oil firms were making a profit of more than Rs 4 per litre, they were incurring a loss of Rs 1.62 per litre on diesel. On kerosene, they were losing Rs 14.75 per litre and Rs 102 per LPG cylinder.

A decision to cut the petrol and diesel prices, which were raised on June 5 by Rs 4 and Rs 2 a litre, respectively, would depend on the extent of oil bonds the government would give to the oil companies to cover losses on LPG and kerosene sale and the contribution to be made by upstream firms such as the ONGC, he said.

The government is to issue oil bonds worth Rs 28,300 crore to oil marketing companies such as the IOC, BPCL and HPCL for the full fiscal and issued the first tranche of bonds worth Rs 5,000 crore last month. Two more tranches of a similar amount are likely to be issued in November-December to cover the losses on LPG and kerosene in the April-September period.

New Delhi, November 7
The ONGC today signed a pact with the Hinduja Group for sourcing liquefied natural gas (LNG), but failed to arrive at another agreement for acquiring oilfields abroad.

The public sector oil giant inked an MoU with Hinduja Group firm Ashok Leyland Projects Services Ltd (ALPS) to form a company, which would scout for LNG in Iran, Qatar, Kuwait, Libya, Oman, Saudi Arabia and UAE, company officials said.

However, an agreement for a similar venture with Gulf Oil Corporation for pursuing exploration projects in West Asia could not be reached over differences on shareholding pattern.

ONGC is to hold 49.98 per cent stake in the venture with ALPS, which will get 48.02 per cent. The remaining 2 per cent would be held by banks and financial institutions.

Officials said for the JV with Gulf Oil, Hinduja Group was seeking a majority stake, which was not acceptable to the state-run company.

Officials said ONGC was keen to leverage the clout of Hindujas in Gulf region, particularly in Iran and Qatar, to source LNG for its proposed Rs 25,000-crore Mangalore integrated project that includes an LNG import terminal, a 1,445 MW power plant and a basic petrochemical complex. — PTI

Mumbai, November 7
The RBI has allowed banks to increase their lending to Indian joint ventures or subsidiaries for funding their overseas expansion.

RBI doubled the limit of banks for extending credit and non-credit facilities to Indian JVs and wholly-owned subsidiaries abroad to 20 per cent of their capital funds.

The decision to enhance the prudential limit was taken to facilitate the expansion of Indian corporates' business abroad, the central bank said in a circular to all banks.

The limit of 20 per cent of the unimpaired capital funds (Tier I and II capital) from the existing limit of 10 per cent would be applicable only to JVs where the Indian company has at least 51 per cent stake.— PTI

New Delhi, November 7
Keen on an ambitious reforms agenda, Nepal wooed Indian investors assuring them of a conducive atmosphere and sought assistance in developing the Himalayan Kingdom's infrastructure, tourism, water resources, agro-business and other sectors.

Visiting Nepali Deputy Prime Minister and Foreign minister K.P. Sharma Oli allayed apprehensions of Indian business of uncertain conditions as many of them had pulled out in the wake of the Maoist violence and security-related problems.

Significantly, India and Nepal have agreed to hold technical-level talks on the 6,000-MW Mahakali-Pancheshwar hydel power project, which has been lying dormant for more than nine years. The decision to carry forward the work was taken at the talks between External Affairs minister Pranab Mukherjee and Mr Oli.

"We have agreed to schedule technical-level talks on the Pancheshwar project at an early date," the spokesperson of the External Affairs Ministry told mediapersons here.

The project was to be constructed jointly by India and Nepal as per an agreement signed in June, 1997.

Besides generating a large amount of power, the project will also help irrigate about 10 lakh hectares of land in India and one lakh hectares in Nepal.

"A conducive atmosphere now exists in Nepal and we encourage investments from India," Mr Oli said later at a session organised by the CII here today.

While aiming to have an annual trade target of $5 billion in the next five years compared to $2 billion at present, Mr Oli said Indian investors could play a meaningful part in both manufacturing and services sectors. While extending his government's full support and cooperation, Mr Oli made it clear that there would be expeditious clearance of investment proposals.

India's ambassador to Nepal S.S. Mukherjee said India recognised the importance of the economic partnership and accepted its responsibility. 

New Delhi, November 7
India and Italy have agreed to set up a joint working group (JWG) for economic cooperation and to step up efforts to boost bilateral trade and investment. The first meeting of the group will be held in New Delhi in January, 2007.

An official statement said the decision had been taken at the 17th session of the India-Italy Joint Commission for Economic Cooperation, which met in Rome yesterday, under the co-chairmanship of Mr Mr Kamal Nath, Union Minister of Commerce and Industry, and his counterpart, Ms. Emma Bonino, the Italian Minister of International Trade.

Both sides have agreed to focus efforts at building stronger commercial links in the textiles, garments, leather goods, auto components, gems and jewellery sectors..

The commission also decided to increased importance to small & medium enterprise (SME) linkages, which would enlarge the scope of the business-to-business engagement between the two countries and widen the trade basket.

The Italian Government has decided to designate India as the focus country for 2007.

The next meeting of the Joint Commission shall be held in New Delhi in 2007.

New Delhi, November 7
The Association of South-East Asian Nations (ASEAN) and India will shortly design a regulatory framework in relation to biotechnology products, said Union Science & Technology Minister Kapil Sibal today.

Addressing a press conference organised by the CII, he said : “If India and ASEAN collaborate, the benefits from two industries - biotechnology and agricultural and processing industry - will accrue to all of them,” said Mr Sibal. This could be done through the creation of a common India - ASEAN Science & Technology Development Fund.

The minister stated that plans were afoot to establish an India-ASEAN Institute for Intellectual Property for building human resource capacities and training to serve the ASEAN region.

The European Union was in a process of setting up 15 per cent of the entire S&T fund in which all European countries would also be involved, he said. Other areas of collaboration were space, ICT, construction, pharmaceuticals, and agriculture for food security.

“Initiative for knowledge is a precursor for development,” said the Malaysian minister. The quality of education in India provides greater potential for the ASEAN region in the country. 

Mumbai, November 7
Supreme Petrochem and Supreme Industries Ltd will together invest Rs 1,415 crore over the next five years in Maharashtra to set up manufacturing units for plastic products.

The companies signed a MoU in this regard with the Maharashtra Government here today.

"The venture takes care of multiple issues. The company has tied up with local ITI units to generate local employment.

Secondly, it is in tune with our policy of developing backward regions of the State," Chief Minister Vilasrao Deshmukh said.

Of the total investment, Supreme Petrochem would invest Rs 1,115 crore over the next five years for setting up a styrenes complex in Nagothane of Raigad district with a production capacity of 4.9 lakh tonnes.

Supreme Industries would pump in Rs 300 crore in coming three years for producing 1,50,000 tonnes of plastic per annum at a manufacturing plant in Jalgaon district. 
— PTI

New Delhi, November 7
The government is expecting about $1 billion investment in exploration of gas trapped below the coal seams in nine areas, contracts for which were signed here today.

A consortium led by Anil Ambani Group companies RNRL and REL with GeoPetrol signed production- sharing contracts (PSC) for four coal-bed methane (CBM) blocks, where it committed to invest at least Rs 100 crore in first of the three phases of exploration.

Australia's Arrow Energy-led group, that include state-run gas firm GAIL (India) Ltd, committed $500-600 million investment in 20 years in exploration of CBM in its three blocks.

Coalgas Mart-Deep Industries joint venture signed the PSC for two blocks.

The Cabinet Committee on Economic Affairs had on September 29 awarded 10 coal-bed methane blocks, but contracts for only nine have been signed as the agreement for one block with BP of UK has not been firmed up, official sources said.

Speaking on the occasion, Petroleum Minister Murli Deora said before the signing of today's nine CBM contracts, 16 blocks had been awarded in two previous rounds of auction.

"Results in some of the blocks have exceeded our expectations and three operators have established in-place gas reserves of over six trillion cubic feet," he said.

"The first commercial production of CBM in the country is expected to commence in 2007," he said. 

New Delhi, November 7
Corruption was less prevalent in India this year than a year ago, which helped the country earn a better ranking in the Corruption Perception Index released by Transparency International (TI) yesterday.

The country, which scored 3.3 out of 10 in the perceived level of corruption, moved up to the 70th rank from 88 last year, while Finland emerged as the least corrupt nation with an overwhelming score of 9.6.

Haiti finished at the bottom of the index (163rd rank) with a score of 1.8.

"The marginal improvement in India has been brought about by the untiring efforts of the civil society organisations and the Right to Information Act, which came into effect on October 12, 2005, is a big step toward countering corruption," said a release by Transparency International India.

While Pakistan is ranked at 142 with a score of 2.2, US is ranked 20th in the list with a score of 7.3 along with Chile and Belgium at the same position.

India shares the 70th rank with nine other countries, including China, Brazil and Egypt, all of whom have scored an identical 3.3 in a scale of 10 (lesser score implying more corruption).

TI's Corruption Perception Index is a composite index which draws its conclusion from multiple expert opinion survey polls that compiled perceptions of public sector corruption from across 163 countries.

A total of 12 agencies acted as source to the survey which includes World Bank, Political and Economic Risk Consultancy, UN Economic Commissions for Africa, World Economic Forum and World Markets Research Centre.

The survey in India were conducted in 11 public departments, of which it was classified into two groups namely the monopolistic type like that of police and judiciary and the competitive type like that of education and hospitals. — PTI