 |
|
|
‘In principle’ nod to Reliance’s Jhajjar SEZ
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Crores go down the drain
Global outlook uncertain: RBI
Brown calls for radical reforms in WB, IMF
Infrastructure booms, tractor sales down
Richard Branson lobbies to enter domestic aviation
More Gulf routes for pvt airlines soon
Corporate Results
Satyam acquires US firm
|
|
‘In principle’ nod to Reliance’s Jhajjar SEZ
New Delhi, January 21 Sources told The Tribune today that there was a thinking within the government that since the promoters of the three notified SEZs were legal owners of the land in their possession, it could simply withdraw the provisions of SEZ that is applicable to them and allow them to run their units without the tax sops applicable to such special zones. “Centre could scrap SEZs, but in the case of three already notified SEZs, the land is in the possession of the companies and it is not easy to take away their ownership of the land. Some of them have already started operations and have set up captive power units. So, there is no point in asking them to close the unit altogether,” the source said, adding the government would have to adopt a middle path on the notified SEZs as they had become legal entities after notification. As far as other 12 SEZs, which have not been notified so far, there should not be any problem for the government to scrap them. The three SEZs - Cipla’s Meditab Specialities, Peninsula Pharma Research Centre and K Raheja Corp - have acquired land. At Keri, Cipla’s sister concern Meditab Specialities Pvt Ltd has invested about Rs 500 crore in its Pharma SEZ. Goa Chief Minister Digambar Kamat had announced scrapping of all 15 SEZs, including the notified ones, following widespread protests from the ruling Congress and opposition BJP. Kamat has also sent a formal communication to the Centre seeking scrapping of all SEZs in the State. When contacted Union Commerce Secretary G K Pillai said the Goa SEZ issue has been referred to the Law Ministry for its opinion and once the opinion is received the Board of Approvals (BoA), which is likely to meet in February, would take an appropriate decision. Meanwhile, in its sitting today, the BoA accorded formal approvals to 11 SEZ proposals (including two requests for conversion of In-Principle Approvals to Formal Approvals) and in-principal nod to multi-product SEZ by Reliance Haryana SEZ Limited in Jhajjar district. Gems and Jewellery SEZ by Goldsouk International Gems and Jwellery SEZ Pvt Ltd in Gurgaon in Haryana was among the 11 proposals that got formal nod today. While four SEZs in Maharashtra have been cleared by the BoA, three in Uttar Pradesh and one each in West Bengal, Rajasthan and Dadra and Nagar Haveli have also been cleared. |
|
‘Don’t act on rumours, fundamentals strong’
“...thus, the fundamentals in the domestic economy are quite strong... Today’s market fall reflects the continuing uncertainties in the global economy and not any change in the fundamentals of the Indian economy,” the Finance Ministry said in a statement after markets recorded its biggest fall today. The government advised investors to take informed and responsible decisions and not to act on the basis of market rumours or any unwarranted apprehensions. The BSE Sensex fell by 1408.35 points or 7.41 per cent, while the NSE Nifty closed down 496.5 points or 8.7 per cent. The government pointed out that most Asian markets opened the year 2008 on a weak note with participants indulging in heavy selling. Sensex fell by 13.97 per cent this month, the statement said. Singapore’s Strait Times declined by 14.75 per cent, Hong Kong’s Hang Sang by 13.58 per cent and Japan’s Nikkei by 9.29 per cent. To substantiate the point that fundamentals of the economy are strong, it said banks have reported robust investment pipeline and high credit demand.
— PTI |
|
|
Crores go down the drain Ludhiana, January 21 Brokers here said it was the high quantum of fall that had shocked investors. Trading volumes here drastically reduced on account of the fall. At the same time, market experts termed it a right opportunity to buy for long term investors. "A fall was predicted but a decline of 1,400 points, was not at all expected. I did sell a couple of my stocks as several experts are saying that it could come down further but really do not know if it is the correct time to buy or would the market fall further," Varinder Gupta, summed feelings of many. A large number of investors resorted to exit incurring heavy losses. Market experts said the fall, that occurred due to heavy selling by foreign institutional investors (FIIs) and a downtrend in US and Asian markets, was imminent. They said with the Indian market in a phase of consolidation, the bearish trend could continue further. "While accurate prediction of trends is not possible, it is a good opportunity for long-term investors to buy," said Jaspal Singh, former chairman of Ludhiana Stock Exchange Securities. Experts said investors should also keep a watch on performance of mutual funds "The funds that are stable despite market fluctuations are expected to do well in the long run," said a finance adviser.
|
|
|
Global outlook uncertain: RBI
Mumbai, January 21 “The global financial uncertainties were not entirely unanticipated but, yes, the intensity was not predicted nor was the duration expected... the outlook is far more uncertain now for global situation than before,” he said. In its monetary policy review on January 29, RBI will take into consideration the possible recession in the US and the global financial turmoil emanating from the US sub-prime mortgage crisis. “I think we will pay considerable attention to that subject and the monetary policy statement will take note of it,” he said. A number of global financial institutions such as Citigroup, the world’s biggest bank, have posted considerable losses in the US subprime crisis that erupted in July 2007. US Federal Reserve has already reduced interest rates and is likely to cut rates further to boost investor confidence and prevent the world’s biggest economy from going into recession. However, the rate cut last year led to a surge in capital inflows into emerging markets such as India, sending stock markets to record levels. Fears of a US recession today sent local benchmark BSE Sensex into a tailspin as panic-stricken investors reduced exposure to high-risk investments. On liquidity, Reddy said it had been volatile in the past also. “Sometimes it was tight, sometimes it was very easy. So we have to take a slightly longer term view and not highly contextual view,” he added.
— PTI |
|
Brown calls for radical reforms in WB, IMF
New Delhi, January 21 Brown said such institutions should have a new “early warning” role to head off crises such as Northern Rock and the World Bank should focus more on boosting clean energy and the environment. “We can and must do more to make our global institutions more representative and I support India’s bid for a permanent place, with others, on an expanded UN Security Council. And I support changes to the IMF, World Bank and the G8 that reflect the rise of India and Asia”, Brown said while speaking to business leaders here on the final day of his visit. On changes to the World Bank, Brown said reform of international rules and institutions must be considered to reflect the urgency of tackling global poverty and climate change. “There is an urgent need for financing of environmentally sustainable development. So while we strengthen the World Bank’s focus on poverty reduction, its capacity and global reach should make it also a bank for the environment.” The British Prime Minister added that action on the environment required the setting up of a multi-billion pound global climate change fund to finance low-carbon investment. He acknowledged the impact made by the Indian economy on the world stage and said no global company could be called truly global today unless it had operations based in India. Brown noted that India was making powerful contribution to the world economy. Brown’s audience included such prominent Indian industrialists as Swraj Paul of UK-based Caparo Group, Vodafone CEO Arun Sarin, Bharti Group Head Sunil Bharti Mittal and Virgin Group Chairman Richard Branson. |
|
Infrastructure booms, tractor sales down
Chandigarh, January 21 This downtrend is in spite of the fact that the infrastructure industry is booming, leading to a high demand of tractors for various infrastructure projects. Official sources in the Tractor Manufacturers Association say that though the sale of tractors in the 65 HP and above category (which are used in infrastructure projects) has shown an increase in sales by almost 10 per cent this year, the sale of tractors meant for agricultural use has been at an all- time low. Other than the companies involved in export of tractors and their components - VST, Larsen and Toubro - John Deere and NHI- all other tractor manufacturers have shown a rapid decline in sales. Market leader Mahindra and Mahindra, which has the highest market share of 31.15 per cent, has recorded a negative growth of 5. 40 per cent, while Tafe Group, with the second largest share in the tractor market, has shown a 6. 50 per cent decline in sales. The three major tractor manufacturers from Punjab - PTL, HMT and Sonalika, too, have reported a decline in sales, with the highest downfall being recorded in PTL sales (15.63 per cent). Industry sources point out that the high NPA (over 25 per cent) in the farm sector loans has led to many public sector banks taking extra caution while advancing loans for farm machinery. With increased misuse of these loans for buying either lifestyle goods, or for social functions, banks have tightened their lending norms for this sector. Even the private sector banks are now exercising caution. Prakash Saran, ED, HMT, says a major reason for decline has been the unavailability of finance. “The emerging tractor markets in Karnataka, Tamil Nadu, and Kerala have shown a decline in sales this year, though the sales in these states had been recording an increase in the past three years. Andhra Pradesh is the only state in S. India to have recorded a growth by over 5500 units,” he adds. AM Sawhney, Deputy MD of PTL, says sales in Punjab and Haryana have recorded a marginal increase - 12.51 per cent in Punjab and 15.10 percent in Haryana. |
|
Richard Branson lobbies to enter domestic aviation
New Delhi, January 21 Branson met Commerce and Industry Minister Kamal Nath twice on this tour and renewed his proposal to enter the domestic aviation sector that is closed to foreigners. “I had dinner with the minister last night... I twisted his arm, (but) I do not know whether I have broken it,” he told reporters on the sidelines of Brown’s breakfast meeting here with industry leaders from the UK and India. He said he spent 15 years “lobbying to get international flights to and from India.” His airline, which operates London-Delhi flights, has plans to induct the largest aircraft A380 in three years in the Indian sector. Branson, whose business interests include aviation, telecom and railway, said that he would be back in the three weeks to make big announcements on his different Indian ventures, including in telecom. Without giving details on his India telecom plans, he said: “Negotiations are at a very advanced stage.” He said consolidation among the private airlines has already begun in India. Branson listed Indian carrier Jet Airways as his close competitor. “Jet Airways, I suspect is the best airline in India and we will do our best to make sure Virgin India is even better.” He asked governments not to put protectionist rules to prohibit businesses from operating in each other’s country. |
|
More Gulf routes for pvt airlines soon
New Delhi, January 21 Reports emanating from the Ministry of Civil Aviation suggest that some additional routes would be available to private Indian carriers soon. As has been the case with the other countries where India has revised its existing air bilateral pacts, reports suggest that New Delhi would be holding talks with a number of Middle-East countries for increasing the number of flights to and fro. The government has already opened up Kuwait, Oman, Qatar and Bahrain to private sector air operators in this year when the ban on non-state-owned carriers to fly there was lifted. Earlier, only the public sector Air India and India (before its merger) were allowed to fly to the Middile East destinations in an effort to provide them with additional support. The Gulf route was the second-largest revenue generator for Air India among its global routes. In 2005-06, the carrier earned over Rs. 15.91 billion from this sector. Jet Airways while starting flights to Muscat and Doha, has also added Kuwait and Bahrain as a destination from cities such as Kozhikode, Kochi, Mumbai and Delhi. Private airlines have also applied for permission to fly to Abu Dhabi and Dubai that was not granted by the government earlier but once the bilateral pacts are revised they could be flying to these destinations. |
|
|
Corporate Results
Delhi, January 21 Kotak Mahindra Bank
Kotak Mahindra Bank has posted more than double increase in consolidated profit after tax of Rs 363.73 crore for the quarter ended December 31, 2007, as compared to Rs 169.57 crore in the same period a year ago. Total income of the group increased by 108 per cent to Rs 2,482.71 crore for the quarter ended December 31, 2007, the bank informed the BSE. Meanwhile, Kotak Mutual Fund today announced a tax-free dividend of Rs 6 per unit on a face value of Rs 10 per unit in Kotak Opportunities. Neyveli Lignite
Neyveli Lignite has posted a 33.94 per cent increase in net profit at Rs 204.48 crore for the quarter ended December 31, 2007, as compared to Rs 152.66 crore for the same period last year. Its total income has increased from Rs 642.82 crore for the quarter ended December 31, 2006, to Rs 816.09 crore for the quarter ended December 31, 2007, thereby registering a 26.95 per cent increase. Bharat Forge
Bharat Forge today reported a 7.79 per cent decline in consolidated net profit at Rs 70.95 crore for the quarter ended December 31, 2007, as compared to Rs 76.95 crore in the corresponding quarter last year. However, the total income of the group increased by 6 per cent to Rs 1,099.43 crore for the quarter ended December 31, 2007, from Rs 1,037.09 crore in the same quarter previous fiscal, the company informed the
BSE. Balmer Lawrie
Balmer Lawrie and Co Ltd has posted a 6.22 per cent increase in its net profit at Rs 30.39 crore during the third quarter of this fiscal ending December 31,2007, as against Rs 28.61 crore recorded during the corresponding period last year. The total income for the quarter rose by nine per cent at Rs 350 crore from Rs 321 crore for the last year. The net profit and the total income for the nine month period stood at 66.18 crore and Rs 1,076 crore respectively. HDFC Bank
HDFC Bank has posted a impressive 45.23 per cent increase in its net profit to Rs 429.36 crore for the quarter ended December 31, 2007, as compared to Rs 295.64 crore for the same period last year. Its total income has increased by 64.35 per cent from Rs 2,072.23 crore for the quarter ended December 31, 2006, to Rs 3,405.79 crore for the quarter ended December 31, 2007. Jindal Stainless
Jindal Stainless Ltd today posted a 55.24 per cent decline in net profit at Rs 50.6 crore for the quarter ended December 31, 2007, as compared to Rs 113.05 crore in the corresponding period last year. Its total income has decreased from Rs 1,451.38 crore for the quarter ended December 31, 2006, to Rs 1,366.3 crore for the quarter ended December 31, 2007, thereby registering a 5.86 per cent fall, it said. Finolex net dips
Finolex Industries today posted a marginal decline of 5.72 per cent in net profit at Rs 21.57 crore for the quarter ended December 31, 2007, as compared to Rs 22.88 crore in the same quarter of 2006. The total income rose by 32.26 per cent to Rs 484.53 crore for the third quarter ended December 31, 2007, from Rs 366.34 crore in the same quarter a year ago, the company said in a filing to the BSE.
— PTI,UNI |
|
Satyam acquires US firm
Mumbai, January 21 Meanwhile, Satyam Computers has announced that it earned Rs 2,195.56 crore as revenue during the third quarter representing an year-on-year increase of 32.2 per cent and a sequential increase of 8.1 per cent.
— PTI |
Emmar MGF Appointed ONGC tie-up L&T order Ballarpur Inds Reliance Energy |
|||||
|
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Mailbag | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
New Delhi, January 21
