Support for sports goods, toys, leather in Budget: Nath
New Delhi, February 4
Sports goods, toys and leather sectors in the country, which are hit hard by hardening Rupee against the Dollar, are set to get vital support in the coming Budget, Commerce Minister Kamal Nath indicated here today.

RCom to offer lifetime connection for Rs 199
Mumbai, February 4
Aiming at further mobile penetration in the country, Anil Ambani’s Reliance Communications is gearing up to launch a ‘lifetime’ connection offer for Rs 199 against the company’s current charges of Rs 649, the lowest from any service provider in the country.

Washington, February 4
Google Inc has joined the Internet war by offering its help in any effort to thwart its chief rival Microsoft Corp.'s unsolicited $44.6 billion bid for Yahoo!, the Wall Street Journal reported citing people familiar with the matter.

‘ We trust Yahoo! will join us quickly’ Seattle, February 4 Microsoft Corp said today its $44.6 billion unsolicited offer for Yahoo Inc was priced to make it easy for the company to accept, and it expects Yahoo’s board and shareholders to agree to the buyout quickly. “We think it’s a generous one,” Microsoft Chief Executive Steve Ballmer said in a presentation to investors. “We trust the Yahoo board and the Yahoo shareholders will join with us quickly in deciding to move down an integrated path.” May borrow to fund deal Microsoft Corp may borrow for the first time in its history to fund a portion of its $44.6 billion cash and stock offer for Yahoo Inc, its chief financial officer said on Monday. — Reuters

Google chief executive Eric Schmidt called Yahoo! Inc. CEO Jerry Yang to offer his company's help as Yahoo! assessed its options for responding to Microsoft's aggressive "bear hug" bid, which has sent aftershocks through the media and technology industries. Yahoo!'s board, which conferred by telephone Friday, hasn't taken a position so far and no rival bids have emerged yet, though it remains possible some will, the financial daily said.

However, another news agency report said that Yahoo Inc would consider a business alliance with Google Inc as one way to rebuff Microsoft.

Yahoo! said it had received a procession of preliminary contacts by media, technology, telephone and financial companies. But its sources were unaware whether any alternative bid was in the offing.

The Wall Street Journal said Google itself is considered unlikely to bid for Yahoo! because of regulatory concerns related to their large shares of the search and online advertising markets.

Google could potentially offer money, or guaranteed revenue in return for a Yahoo! advertising outsourcing pact under that scenario, the Journal said.

Even such involvement by Google would likely attract anti-trust scrutiny because of concerns that competition between the two Silicon Valley Internet companies could be reduced, it said.

A Google spokesperson declined to comment on any interest in Yahoo! or contact between the two companies. Google in a blog post said Microsoft's pursuit of Yahoo! "raises troubling questions" about whether it would give Microsoft too much power that could be abused.

Microsoft responded by saying the deal would "create a more competitive marketplace by establishing a compelling No. 2 competitor for Internet search and online advertising".

The Wall Street Journal said a number of technology, media and financial companies have since Friday discussed with Yahoo! and its advisers their possible interest in participating in a bid for the company.

Yahoo! has said its directors would weigh the Microsoft offer and any alternatives, including keeping Yahoo! independent, "and go for best course of action to maximise long-term value for shareholders". — IANS

New Delhi, February 4
This is not the time for any sensible politician to take a decision in a matter that is likely to backfire, it will backfire with inflation increase and will also cause a political backlash, said a government economist when asked about government’s indecision as regards fuel price hike.

Today the government once again deferred the decision on the fuel price hike. A committee headed by the Prime Minister Manmohan Singh, which was to meet this afternoon, has deferred the hike for later this week.

Sources in the Oil Ministry say, “We wanted a cut in customs duty on the products as well as crude oil and also a Re 1 per litre reduction in excise duty on diesel, but don’t think that is happening just now.”

Last week, a group of ministers headed by External Affairs Minister Pranab Mukherjee had left a decision on fuel prices to the Cabinet to decide on the quantum of hike in auto fuel prices necessitated due to the surge in international oil prices.

State run Indian Oil, Bharat Petroleum, and Hindustan Petroleum are together projected to lose over Rs 71,000 cr on the sale of petrol, diesel, LPG and PDS kerosene this fiscal as the government has capped retail prices

Political sources say that it would not be prudent to raise prices of oil products at this point in time as the government would not find any support from its own allies and the opposition. Recently the Left parties and the BJP had said that they were against the oil price increase and instead supported that the government made tax reforms for the oil price structuring.

Besides this, political sources say that since the budget exercise is on its way the government will announce whatever hike only in the Budget and not before.

New Delhi, February 4
With a view to make an additional arrangement outside IMF to meet short-term liquidity in Dollar during a balance of payment (BoP) crisis, the finance ministry has proposed a currency swap agreement between India and Japan. Besides, the other reason is that it is a cost-effective tool for achieving strategic objective of demonstrating regional cooperation between the two countries.

In a proposal to enter the exchange, the finance ministry has stated that the swap will be an important milestone to demonstrate India’s commitment to the Look-East policy. This will also foster strategic economic cooperation with Japan, which now accounts for a significant source of capital inflows into the country.

The arrangement to exchange a maximum of $3 billion for domestic currency at the spot rate is to meet temporary BOP problems faced by India or Japan for an initial period of three months.

A section of the finance ministry officials feel that given India’s comfortable BoP position and robust level of reserves, why is there a need for such an arrangement?

However, on its part, the Japanese government has confirmed that any income arising out of swap transaction by the RBI will be exempted from tax in Japan. The interest income arising from the transaction will not be taxable in both countries under the India-Japan double taxation avoidance convention.

In the wake of the Asian financial crisis in 1997, the Government of Japan had initiated currency swap arrangements with many Asian economies under the Chiang Mai Initiative, which enabled the countries to swap domestic currencies for Dollar to avert any BoP crisis. Japan has since concluded such agreements with all the ASEAN countries, but India is the only non-ASEAN country with which Japan wants to have such an arrangement.

Chandigarh, February 4
National Bank for Agriculture and Rural Development (Nabard) has suggested a credit plan of Rs 41,664 crore under priority sector lendings in Punjab, during the year 2008-09. During the state credit seminar organised by Nabard here today, V.Ramakrishna Rao, chief general manager, Punjab and Haryana Regional Office of Nabard, put forth the sector-specific issues to realise the aforesaid credit potential estimates.

The chief secretary, Punjab, Ramesh Inder Singh, was the chief guest on the occasion and released the state focus paper for the year 2008-09. Speaking on the occasion, he said the overall economy of Punjab is growing at a slow pace, while other neighbouring states are taking a lead. Diversification in agriculture, adoption of new technology and immediate steps to deal with the water crisis will help the state’s economy grow rapidly.

Of the Rs 41,664 crore projected, Rs 22,298 crore would be disbursed as crop loan, followed by Rs 4,584 crore as agricultural and allied sector term loan, Rs 6,095 crore as non-farm sector loan and Rs 8,685 crore as other priority sector. Given the fertility of land and asset position of farmers, the fact that Punjab farmers’ need for short-term loan for seasonal agricultural operations would be very high is indicated with crop loan sharing of a whopping 53 per cent. The state focus paper also focuses on the current concerns of the state on agricultural front — deteriorating soil health, falling groundwater table and the need for crop diversification, agro-processing, and modernisation of agri marketing infrastructure.

Issues of rural indebtedness, participatory irrigation management (PIM) launched by Punjab Government, land development, farm mechanisation, plantatation and horticulture (issues like post harvest infrastructure promotion of organic farming etc), agro processing have also been discussed in the paper. Further, the paper also gives a good account of the state’s potential on renewable sources of energy that can be harnessed through credit.

Taking the help of participatory organisations like PRIs, NGOs, farmers’ clubs, SHGs, Nabard wants to organise them into producer group/company. This would help them to pool their land and other resources, reap advantage of scale and gain access to corporate retail outlets with enough produce in hands, hence with good bargaining power. 

New Delhi, February 4
Next time when you hand over the household garbage to the garbage collector, don’t think it as a waste. Indian companies have developed technology, which could convert your biodegradable garbage into organic fertiliser, which could be used in kitchen gardens or in neighbourhood parks.

If you are hotelier, restaurant owner or running a big staff canteen, then conversion of the large quantity of biodegradable garbage that gets generated in your establishment could rather fetch you decent money if you adopt the composting technology, which would convert your garbage into organic fertiliser, in great demand for organic farming.

According to Harshad Gandhi, spokesperson of ‘Developmental and Eco Friendly Enterprises’ (DECENT), a non-profit body aiming to address urban waste and related issues, waste handling agencies have not been able to keep pace with the growing urban municipal solid waste, which is currently estimated at 115,000 tons per day from 5100 plus Indian cities having a population of one lakh or more.

“As much as 52 per cent of all waste generated is organic and can be converted into compost. Farmers in rural India are keen to restore the depleted carbon content and overall soil health of their farmlands. Composting of organic waste will serve both the needs,” Gandhi told The Tribune here.

The Municipal Local Bodies are spending a huge sum, sometimes exceeding 30 per cent of their total revenues, on garbage collection and disposal. However, in most municipalities 10 per cent to 40 per cent of the garbage is not cleared everyday.

“The composting plant will require just about 800 sq feet of land for segregation of the garbage and for its composting,” he said emphasising that adoption of this technology would not only make the task of solid waste management easier for municipal authorities, it would generate massive employment for poor and illiterate.

However, we are caught in a vicious circle of low demand for composting equipment, which results in limited production that in turn leads to high operational cost. Burdened further with taxes of 16 per cent excise and 12.5 per cent VAT the price of our eco-friendly equipment becomes unaffordable, lamented Gandhi.

“The tax component on a composting unit priced at Rs 3,90,000 clubbed with customer, user education and marketing costs comprises nearly 2/3rd of its selling price,” he said adding DECENT has given a memorandum to Union Finance Minister P Chidambaram seeking levy of zero per cent excise on composting plant and allied equipment and machinery.

New Delhi, February 4
Tata Motors, currently in talks with Ford Motor to acquire British marquees Jaguar and Land Rover (JLR), today said there was no discussion with partner Fiat for sharing of JLR’s technology.

“Tata Motors, which is engaged in focused and detailed negotiations with Ford on the Jaguar Land Rover business, clarifies that the company has had no discussions with Fiat on deployment of technologies developed by Jaguar and Land Rover,” the Mumbai-based company said in a statement.

The company is in advanced round of discussions with Ford to take over the Jaguar and Land Rover brands globally.

“Tata Motors is pleased by the progress in the discussions with Ford to date and hopes that both the parties can reach an agreement in the forthcoming weeks,” the statement said.

Though Tata’s have not revealed what would be their strategy for the two marquees in case it successfully acquires them, reports in the British media suggested that the company’s partner in India-Italy’s Fiat, was hoping to get access to JLR’s technology for its own products. — PTI

New Delhi, February 4
Sports goods, toys and leather sectors in the country, which are hit hard by hardening Rupee against the Dollar, are set to get vital support in the coming Budget, Commerce Minister Kamal Nath indicated here today.

“Sports goods, toys and leather exports sectors are the thrust areas for the government as they are employment generating sectors. The government will give all-possible support to these sectors to make it competitive globally,” Nath said after releasing a reference book for Indian leather exporters titled “Indian Leather Exports-Prospects and Problems” here.

Referring to the Leather Sector, he proposed setting up of a Leather Design Institute in the country on the PPP (private public partnership mode) to increase the export potential of Indian leather goods.

Sports goods, toys and leather exports sectors have been hit hard by not only hardening of Rupee against the US dollar, but also due to considerably high excise duty and countervailing duties.

“Due to the current scenario exports from these sectors have fallen and fears of huge lay-off is growing,” K Elangovan, executive director of Council of Leather Exports told The Tribune on the sidelines of the book release function.

Mumbai, February 4
Aiming at further mobile penetration in the country, Anil Ambani’s Reliance Communications is gearing up to launch a ‘lifetime’ connection offer for Rs 199 against the company’s current charges of Rs 649, the lowest from any service provider in the country.

The soon-to-be-launched service would enable subscribers to make a call at 99 paise per minute to others, company’s President (Wireless) S P Shukla told PTI here.

Reliance Communications, which has a subscriber base of 41 million as on December 31, 2007, hopes to add a “significant” number of subscribers to its fold with this offer.

“Going forward, we hope to have more than half of our customers under the lifetime fold,” Shukla said, adding that this offer would also help the company to significantly increase its topline. The offer would not have any linkage with handsets and subscribers can use any handset to avail the offer, he said. — PTI