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Food prices push up inflation to 6-mth high
Now, Emaar MGF withdraws IPO
FM confident of 4 pc farm sector growth
Ludhiana steel makers cut rates by Rs 2,900 per tonne
Air India takes on competition
79 items de-reserved from SSI sector
Oil Min seeks legal opinion
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US slowdown not to hit India: Nath
PM’s panel moots urgent fiscal steps
SBI rights issue likely to open on Feb 16
Caparo to build body structure of Nano
Export of non-basmati rice banned
Rupee ends at 2-month low
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Food prices push up inflation to 6-mth high
Cereals, bakery products, salt have pushed up the inflation rate to a six-month high of 4.11 per cent. Based on movement in Wholesale Price Index (WPI), the inflation pierced 4 per cent mark after a gap of six months, justifying the cautious approach adopted by the Reserve Bank of India (RBI) in its quarterly review of the monetary policy last month, despite lobbying by the industry for a cut in benchmark rates. The previous high at 4.4 per cent was recorded for the week ended July 28, 2007. The wholesale price of salt moved by 5 per cent during the week, besides this maize, moong, wheat, bajra and bakery products too have become expensive. Oil price hike that has been kept under control has controlled the inflation rate. Although the index that reflects the prices of fuel remained static because the government refrained from increasing prices of diesel and petrol, the manufactured items and minerals became dearer during the week. Prices of toilet soaps and industrial inputs like caustic soda, synthetic rubber, lime stone and iron ore also saw an upward movement. The inflation data pointed out that index of food items (within the primary articles category) rose by 0.2 per cent over the previous week due to higher prices of maize (3 per cent) and moong, wheat, spices and bajra (1 per cent each). Prices of barley, however, declined by 1 per cent. The index of non-food articles rose by 0.5 per cent due to increase in prices of cotton (2 per cent), castor and groundnut seeds (1 per cent each). However, Copra prices fell by 2 per cent. The group index of minerals moved up by 2.1 per cent due to higher prices of gypsum (62 per cent), lime stone (14 per cent), fire clay (10 per cent) and iron ore (1 per cent). In the manufacturing goods category, the index of food products rose by 0.2 per cent due to higher prices of salt (5 per cent), unblended black tea, bread and buns (3 per cent) and cattle feed, rapeseed and mustard oil and gur (1 per cent each). Prices of imported edible oil and khandsari declined by 2 per cent each, the data said. The transport equipment segment index moved up by 2.5 per cent on account of higher prices of truck chassis (10 per cent) and bus chassis (6 per cent). The index of leather group fell by 1.7 per cent mainly due to 2 per cent fall in prices of western type footwear. The government has revised the inflation rate for the week ended December 14, 2007 to 3.89 per cent from 3.75 per cent reported earlier. |
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Now, Emaar MGF withdraws IPO
Mumbai, February 8 In a statement released to the stock exchanges, Emaar MGF, a joint venture between Dubai's Emaar Properties and India's MGF Development Limited, said it was withdrawing its IPO for the moment and would return to tap the market at a more appropriate time. The IPO had received applications worth only Rs 5,779.36 crore despite reducing its price band earlier this week. This accounted for just about 85 per cent of the book and came mainly from institutional investors and QIBs. The response from retail investors was tepid with barely 225,000 applicants bidding. The company will refund the money paid by applicants in the next 15 days. Unlike Anil Ambani's Reliance Power, Emaar-MGF did not allow retail investors any concession in bid money. Neither were they allowed to bid by paying part payments. In its prospectus, the company had claimed to be one of India's leading real estate developers with a land bank spread across 26 cities across the country. However, analysts had planned the issue and had rated it as comparatively expensive as compared to listed peers like DLF and Unitech. Emaar MGF had entered the capital market on February 1 with an IPO of 10.25 crore equity shares of Rs 10 each to be determined through a 100 per cent book building. The price band was initially fixed at Rs 610-690, which was later brought down to Rs 540-630. The company further reduced its lower band to Rs 530 per share and extended the period of public offer till February 11. The issue was originally scheduled to close on February 6.
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FM confident of 4 pc farm sector growth
New Delhi, February 8 The Central Statistical Organisation (CSO) has estimated that agriculture output would grow at 2.6 per cent this year, against 3.8 per cent last year. Referring to CSO’s advance estimates of GDP for the current year, he said, “We are confident that agricultural growth would be higher than the advance estimates.” “The government will take all steps to ensure a 4 per cent expansion in the farm sector for next 10-20 years,” said the Finance Minister, speaking at a NABARD function here. “Everything can wait except agriculture,” he said, adding that the government was committed to take all measures for growth of the farm sector. Whatever may be the external factor through human intervention and technology it was possible to achieve and sustain a 4 per cent growth in agriculture, he added. The finance minister said the agriculture ministry had reported yesterday that maize and soybean production would be all time high this year, that is not reflected in advance estimates. “I am confident that final growth rate of agriculture would be better,” he said.
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Ludhiana steel makers cut rates by Rs 2,900 per tonne
Ludhiana, February 8 The price of ingot, that was around Rs 32,200 per tonne on Monday, today declined to almost Rs 29,300 per metric tonne . Manufacturers of steel, who process scrap and sponge iron procured from outside and supply it to local steel consuming units, had been increasing their rates in proportion to those of the leading steel manufacturers in the country. Within the last three-four months, while steel prices recorded a hike of roughly Rs 7,000 per metric tonne by major steel producers of the country, local steel manufacturers effected a hike of over Rs 4,000 within this period. The owners of induction and furnace units here, who have been participating in the agitation along with other steel consuming industries against leading steel producers for steep price hike, had expressed their inability to control prices stating that the prices of their raw material were dependant on those of leading companies. However, today they effected a reduction in rates. "The reduction of almost 10 per cent is not minor. Local producers had only been trying to make the most of the situation and even though they had no reason to increase their rates, they went ahead and hiked prices," remarked S.C. Ralhan, regional chairman of Engineering Export Promotion Council. Steel consuming industries also alleged that local producers were causing problems for them by resorting to price hike when it was ruining small scale units. However, induction and furnace owners said the price rise or fall was market driven. "We have no control over rates. They are dependent on demand and supply forces. Now that demand has declined, rates have lowered. Besides, internally scrap prices were quite high and they have also softened," said Sandeep
Jain, senior vice-president of Induction Furnace Association of North India.
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NY-New Delhi direct flight
New York, February 8 From the take-off till the touch down at the John F. Kennedy Airport here today, Air India pampered its passengers whether in the first, business or the economy class. With 141 people on board, the aircraft named “Andhra Pradesh” landed to a rousing reception, and the passengers showed little signs of fatigue despite a 15-hour, non-stop journey. Most of the passengers said that Air India had left competitors behind on this route, especially with the introduction of the new Boeing aircrafts. Most said they would like to fly again with Air India, a victory for the airline, which been on the receiving end for various reasons, including service and delays. Air India chairman V. Thulasidas said the carrier would also continue with the daily service here via London. “We will also continue to operate a daily flight on the Ahmedabad-Mumbai-Paris sector. We will, thus have, 28 flights per week to serve New York - twice every day from Mumbai and New Delhi.” The aircraft has been configured to seat 238 passengers, with all having individual monitors for in-flight entertainment. Souravh Sen, co-chairman of Astonfield group, said “Air India has become class apart on this route following the introduction of this flight,” he said while seated inside the first class cabin.
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79 items de-reserved from SSI sector
New Delhi, February 8 The list of 79 items was de-reserved through a notification on February 5 by the Department of Industrial Policy and Promotion under the ministry of commerce. The de-reserved items include among others voltage stabilisers, sewing machines, PVC wires, electric irons, electric kettles, mixers and grinders, electrical light fittings, amplifiers, letter pads, decorative papers, file covers and file board, corrugated fibre board containers, paper napkins, including facial tissues napkins, teleprinter rolls, etc. With this de-reservation, only 35 items will remain in the list of the items, which can be exclusively manufactured, in the small scale sector. The centre had embarked on a major policy measure since the early 1990s for making Indian industry, including its crucial SMEs competitive to unleash its growth potential. One of the crucial measures have been the gradual and calibrated removal of restriction in the form of reservation of items to be exclusively produced in the small scale sector. This policy was initiated to increase the competitiveness of industry, facilitate adequate flow of credit, upgrade technology so that the product produced are of world class and competitive in the global market, enable industry to compete with imports, achieve the economies of scale and promote creation of jobs.
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Reliance family demerger
New Delhi, February 8 The family agreement that split Dhirubhai Ambani empire between the two brothers, as has been upheld by the Bombay High Court, had created rights, including claim over majority of the output from RIL’s KG-D6 field, in favour of Anil’s RNRL. The Petroleum Ministry now wants to know if such a move amounted to Assignment of Participating Interest (PI) in the gas rich block, official sources said. As per the Production Sharing Contract (PSC) for KG-DWN-98/3 or KG-D6, assignment of any interest in the contract without prior consent of the Government may result in termination of the contract. RIL is to start producing natural gas from KG-D6 in July but has not been able to sign contracts with consumers due to a restraint order from the Bombay High Court. The ministry sought Law Ministry’s opinion if the government should intervene and become party to the court case between the two brothers over implementation of the family demerger agreement, in the national interest of starting gas output in time. The start of 40 million standard cubic meters per day of gas production from KG-D6 may be delayed if the court ordered restraint on creation of third party interests was not lifted. RNRL claims right of 28 mmscmd as part of the demerger and another 12 mmscmd but will have no plants to utilise gas in July 2008. Trading of gas is not allowed as per government policy. Sources said the Petroleum Ministry was of the view that the government’s Gas Utilisation Policy may impact on the commitments made by RIL. The policy lists out sectors for gas sales in order of priority and new power plants figure last in that order. It fixes priority for gas sales from fields like that of RIL to fertilizer, petrochemical, existing power plants and city gas ventures in that order. — PTI
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US slowdown not to hit India: Nath
Bangalore, February 8 Speaking at an exporters meet organised by the Federation of Karnataka Chamber of Commerce and Industry
(FKCCI) and Federation of Indian Export Organisations (FIEO) here, Nath said the domestic nature of the Indian economy would ensure it was not adversely affected by any US slowdown. He, however, said exporters should be able to visualise the effect of global trends and prepare to address them appropriately. The commerce minister asserted that the second part of the reforms in India would involve bringing the interest rates on par with the global economy and simplifying the tax structure. He also announced that the centre had agreed to initiate a study for the proposed 1,000-km Chennai-Bangalore-Mumbai industrial corridor to boost the economy of the entire region. He was reacting to a demand made by Karnataka Commerce and Industries secretary Rajkumar Khatri, who said the proposed corridor would pass through 20 towns
with high industrial potential. Khatri said the Japan External Trade Organisation
(JETRO) had shown interest in supporting the project. |
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Manufacturing Sector
New Delhi, February 8 The high-level committee, headed by Chairman of the National Manufacturing Competitiveness Council (NMCC) V Krishnamurthy, has submitted its report to the Prime Minister’s Office. “The report of the committee has been sent to the PMO and recommendations made are likely to be implemented in the Budget,” a senior Commerce Ministry official said here. Prime Minister Manmohan Singh had constituted the committee in the wake of recent weaknesses witnessed in the manufacturing sector. Besides suggesting short-term steps, the committee was mandated to recommend long-term measures to ensure that the factory sector continues to grow fast in the next 10 to 15 years. Growth in the industrial production plunged to 5.3 per cent in November this fiscal from 15.8 per cent in the comparable period of 2006-07 following a sharp decline in the manufacturing sector. The six core infrastructure industries also declined to 5.3 per cent in November 2007 from 9.6 per cent a year ago. The manufacturing sector has over 80 per cent weightage in the overall industrial production. — PTI
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SBI rights issue likely to open on Feb 16
New Delhi, February 8 The government will subscribe to its over 59 per cent shares on the last day of the issue, the sources said. When asked whether the current volatility in the stock exchanges would affect the pricing of the issue, the sources said the fluctuation would not impact the offer announced by the bank. Earlier last month, SBI had priced its rights share at Rs 1,590 per share (face value Rs 10 each). Even after decline in its price in the recent days, SBI share was ruling at over 25 per cent premium over the rights issue price. Under the issue, existing shareholders would get one for every five shares they hold. The bank will raise Rs 16,736.31 crore by way of the rights issue, which will be made to the government and other existing shareholders, including GDR holders. It will also issue shares to employees under employees stock purchase scheme.
— PTI |
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Caparo to build body structure of Nano
London, February 8 Selected inner structural panels will be pressed and assembled by Caparo at a new facility in Singur, adjacent to the Tata Nano manufacturing plant in West Bengal. Caparo will supply 60 per cent of these assemblies, with the rest being manufactured in-house by Tatas. To meet Tata's ambitious cost targets, Caparo has installed a new semi-automated production line with zero fault forward quality control systems. "The body technology is relatively conventional, but the manufacturing technology is the result of very sophisticated analysis to ensure high-quality, low-cost production," Caparo Group CEO Angad Paul said today.
— PTI |
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Export of non-basmati rice banned
New Delhi, February 8 The prohibition has been imposed vide an official notification last evening under Para 1.5 of the Foreign Trade Policy, 2004-09 (as amended from time to time). It may be recalled that export of non-basmati rice was prohibited vide notifications no 38 & 44 with effect from October 10, 2007. However, in order to honour the prior commitments of exporters, non-basmati rice exports were being undertaken against valid irrevocable commercial letters of credit as provided in Para 1.5 of the Foreign Trade Policy.
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Rupee ends at 2-month low
Mumbai, February 8 Forex dealers said lack of any major direction due to a holiday in most of the Asian countries on account of Lunar New Year also somewhat impacted negatively on the rupee. A sustained pull-out by FIIs from equities also weighed on the rupee, they added. Meanwhile, the dollar rallied to fresh two-week high against its major rivals on Thursday. The rupee's fall today follows its weakness earlier this week. The local currency ended lower on Monday and Tuesday by 10 paise and 11 paise, respectively.
— PTI |
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New Delhi, February 8
