New Delhi, May 28
The core group of ministers headed by external affairs minister Pranab Mukherjee met this morning to deliberate over the issue of hike in oil prices. The deliberations, ministry officials say, included studying all options like increasing prices of specific fuels like petrol and diesel, rolling back taxes like excise and customs duties, implications of the loss of revenue on economic programmes of the government in the coming year, the sufficiency of issuing of oil bonds in the coming year where losses are going to be in the range of Rs 1,80,000 crore, the estimated rise of crude and the course of action to be taken in the future to meet the rise, increasing borrowing limits of the oil companies, impact of rising rupee in the coming year etc. The strong rupee is an area of concern for the oil companies as this adds to exchange loss.

The meeting was attended by finance minister P Chidambram, oil minister Murli Deora, deputy chairman of Planning Commission Montek Singh Ahluwalia.

Sources say, the meeting was meant only for deliberations ahead of the Cabinet meeting on economic affairs to be held on Thursday. The purpose of the meeting was to study all possible options before any decision can be taken and this decision lies with the Prime Minister Manmohan Singh and UPA chairperson Sonia Gandhi.

As regards the options studied, sources say the demand from oil companies is a hike of Rs 10 per litre in petrol prices, Rs 5 a litre on diesel and Rs 50 per cooking gas cylinder.

Regarding cut in the excise duties, the oil ministry has suggested halving of duties, which would contribute around Rs 30,000 crore as against Rs 60,000 crore estimated in 2008-09.

The government is also said to have studied the option of oil bonds for the year 2008-09, which are estimated to be around Rs 180,000-2,25,000 crore. This will be met by finance ministry, which is ready only to bear 47 per cent i.e. Rs 84,600 crore, ONGC and GAIL will contribute around Rs 35,000 crore approximately, and the rest is to be shared between oil marketing companies and citizens.

The deliberations also included as to what will happen if the price of crude goes higher than what is estimated and the impact on economy as a whole i.e. increase in oil import bill, effect of price rise if undertaken on inflation, impact of high oil prices on prospect of industrial growth in the coming year, impact on direct oil consuming sectors like fertiliser, power, and petrochemicals etc. 

New Delhi, May 28
State-run refiner and retailer, IndianOil Corporation (IOC) will only be able to afford to buy crude at the current rates until the end of September, IOC chairman S. Behuria said today while announcing the results of the company. He said: “we do have funds by way of reserves and cash but our borrowing limit will come under pressure after September 2008”.

Meanwhile, the company has posted a first- ever net loss of Rs 414 crore for the fourth quarter ending March 31, 2008, as compared to a net profit of Rs 1,503 crore in the same quarter last year. However, the company has made a net profit of Rs 6,963 crore for the year ended March 31, 2008, as against Rs 7,499 crore in the previous fiscal. However, when compared to 2005-06, the profit has seen an increase. In 2005-06, the profit stood at Rs 4,915 crore.

The board of Indian Oil has also decided to put on hold all expansion plans in the future to meet the distressed situation. The only expansion that will be carried out will be that of Paradip Refinery, which has taken off, said B.N. Bankapur, executive director, refineries, IOC. The board has also decided to increase the borrowing limit of the company from present Rs 40,000 crore to Rs 80,000 crore, which will be taken up in the AGM for shareholders approval.

The IOC board has also declared a dividend of 55 per cent against last year, when the company had declared a 130 per cent dividend 50 per cent interim dividend .

Though the turnover of the company has increased by 12 per cent to Rs 2,47,479 crore over last year, the net under-realisation of the company has also increased and stood at Rs 9,774 crore as against Rs 2,190 crore in 2006-07.

Indian Oil’s contribution to the exchequer by way of taxes, dividends, cess etc has increased to Rs 62,668 crore in 2007-08 as compared to Rs 56,164 crore .

Consolidated total income for the year has increased to Rs 2,32,000 crore from Rs 2,03,000 crore for the year ended March 31, 2007.

New Delhi, May 28
The government today decided to give fertiliser sector top priority in allocation of natural gas to be produced from fields like Reliance Industries' eastern offshore KG-D6 block.

An Empowered Group of Ministers (EGoM) headed by external affairs minister Pranab Mukherjee decided that for 2008-09 fiscal demand of existing gas-based fertiliser plants would be met first from production from fields like KG-D6, official sources said.
After fulfilling the unmet demand of fertiliser units, gas will be allocated to existing gas-based power units.

The EGoM decided on gas utilisation only for the current fiscal and that for future would be decided later.

Reliance's KG-D6 field will bridge the gap between demand of 43.169 million standard cubic meters per day and the current supply of about 29 mmscmd. It will then supply 18 mmscmd gas to power plants.

"Fertiliser sector has been accorded the top priority and after today's decision it will get first preference on gas to be produced from fields operated by private firms," fertiliser minister Ram Vilas Paswan told reporters after the meeting.

Besides the unmet demand of gas-based plants, about 6.5 mmscmd gas will be given to naphtha run plants that will convert to gas next year. Another 3.16 mmscmd gas would be allocated in 2010 to plants currently fired by fuel oil. Eight shut fertiliser plants will get 14.7 mmscmd gas by 2011-12, Paswan said.

Sources, however, said the EGoM has only decided to allocate gas coming into production by year end to existing gas fired fertiliser and power plants. For plants converting from liquid fuel to gas, allocation will be decided later. — PTI

New Delhi, May 28
In a partial victory for Ranbaxy Laboratories in its patent litigation against Pfizer, an Australian court has ruled in the Indian company's favour in a case relating to cholesterol-lowering drug atorvastatin (Lipitor).

The court at the same time also ruled that a proposed Ranbaxy generic product under a different patent infringed Pfizer's basic Lipitor patent (number 601981).

The Australian Federal court in Victoria had ruled that one of Pfizer's patent was invalid for in-utility, false suggestion and misrepresentation in obtaining the grant of Australian patent 628198, Ranbaxy said in statement.

"We are pleased with this decision as it advances the entry of Ranbaxy's generic atorvastatin in Australia to May 18, 2012 ," Ranbaxy's senior vice-president, Global Intelle ctual Property Jay Desmukh said.

The court, however, upheld Pfizer's appeal on the exclusivity of its basic patent covering atorvastatin, the active ingredient in Lipitor. It found that a proposed Ranbaxy generic product would infringe Pfizer's basic Lipitor patent (number 601,981).

The ruling, the culmination of a lawsuit filed in 2005 by Ranbaxy, preserves Lipitor's patent coverage in Australia through May 2012. Ranbaxy can appeal the decision.

"The Australian decision will not impact ongoing Lipitor patent actions in other countries, including the United States. It will continue to vigorously defend against challenges to its intellectual property," Pfizer said in a statement. — PTI

New Delhi, May 28
Come June 1 and airlines around the world will switch to near 100 per cent e-ticketing though small quantities of the paper variety will continue to be issued.

"Globally, 96.8 per cent of airline tickets issued from June 1 will be of the electronic variety. India will be 95 per cent compliant, rising gradually to 100 per cent," Ankur Bhatia, managing director of the Indian arm of global ticketing major Amadeus, told reporters here Wednesday.

"Only those airlines that do not have a BSP (billing and settlement plan) in place will be able to issue paper tickets and they are in the process of migrating to the new system," he added.

Currently, it costs an airline $5-9 to issue a paper ticket. E-ticketing will thus result in global savings of $3 billion every year, said Bhatia, who is also the executive director of the diversified Rs 2.5 billion ($60 million) Bird Group that has a pan-India presence in the country's aviation and hospitality space.

Amadeus India pioneered e-ticketing in the country five years ago and today, 56 per cent of all electronic tickets issued in India are through its system.

"We also took the initiative to train CISF (Central Industrial Security Force) personnel (responsible for security at airports) to identify bona fide travellers. We have so far trained 6,000 personnel," Bhatia said.

Detailing the benefits of e-tickets, he said they improved efficiency as no paperwork was involved and allowed for greater and seamless interlining for travellers headed for multiple destinations.

"Besides, it's much safer as you don't have to carry a bulky paper booklet around," Bhatia added.

"E-ticketing has also spawned the start up of travel portals like cleartrip.com and makemytrip.com that are one-stop travel shops in the true sense of the word," he pointed out.

In India, at least, the new regime will result in an unexpected spin-off.— IANS

Mumbai, May 28
Leading auto maker Tata Motors today said it plans to raise up to Rs 9,770 crore through a host of fund- raising initiatives, primarily to finance the $2.3-billion buyout of British luxury brands Jaguar and Land Rover.

The company plans to raise about Rs 7,200 crore through three simultaneous but separate rights issues, including an issue of equity shares worth up to Rs 2,200 crore.

Tata Motors would raise about Rs 2,000 crore through a rights issue of 'A' equity shares carrying differential voting rights of one vote for every 10 'A' equity shares and another Rs 3,000 crore from a rights issue of five-year 0.5 per cent Convertible Preference Shares (CCPs).

The CCPs would be optionally convertible into 'A' equity shares after three years but before five years from the date of allotment.

On completion of the three rights issues, Tata Motors plans to raise about $500-600 million (approximately Rs 2,569 crore) through issue of securities in foreign markets.

These fund raising proposals are mainly for financing the Jaguar-Land Rover acquisition, which is expected to be completed shortly, Tata Motors said in a filing to BSE.

The proposals were approved by the board of directors in their meeting today.— PTI

Carlsbad (California), May 28
Microsoft Corp has said that its next operating system will be made for touch-screen applications, an alternative to the computer mouse.

Microsoft CEO Steve Ballmer unveiled the iPhone-like touch-screen feature at The Wall Street Journal's "D: All Things Digital" conference, calling it "just the smallest snippet" of the Windows 7 operating system slated for release in late 2009.

A Microsoft employee showed possible applications like enlarging and shrinking photos and navigating a map of San Diego by stroking the screen.

Microsoft chairman Bill Gates framed the new feature as an evolution away from the mouse.

"Today almost all interaction is keyboard-mouse," Gates said. "Over years to come, the role of speech, vision, ink — all of those — will be huge." Microsoft's top two executives defended the company's last operating system, Vista, while acknowledging missteps.

Gates said he has never been 100 per cent satisfied with any Microsoft product, and that the company prides itself on fixing shortcomings in later versions. — AP

Ludhiana, May 28
The latest processor from Intel's stable, named Atom, would be launched in the coming two to three months in India. Slated for a worldwide launch in Thailand on June 3, the micro chip would facilitate speedy Internet connectivity in net books, net tops and mobile Internet devices.

"The product would revolutionise connectivity on the move. We already have demand coming even prior to the launch and are hopeful of its success in India, too," said Sandeep Aurora, director sales and marketing, South Asia, Intel, while talking to The Tribune.

"It is aimed at providing speedier connectivity on smaller devices like net books."

Aurora said to make Atom available, Intel had tied up with more than 50 hardware manufacturers.

Talking about growth, Aurora said the company recorded 23 per cent growth last year. Punjab has been one of the high growth areas recording an annual of over 30 per cent, he said.

Attributing this rise to increased awareness, he said: "Initiatives on making people aware of latest technologies has generated high demand in Punjab where people are quite receptive".

Intel is also aggressive on expanding its network in the state.

He said the company was working with the government to spread its 'world ahead message' that focussed on providing connectivity, access, education and content to the next one billion customers worldwide. To carry forward its 'PC benefit' message to customers, the company would conduct PC parties, roadshows and other events.

New Delhi, May 28
In an apparent effort to maintain its market share in the wake of increasing competition, Hyundai Motor India has announced the launch of two extended warranty schemes for its customers in the country.

The two schemes, power train and comprehensive extended warranty scheme, would be available for all customers owning Hyundai i10, Santro, Getz Prime (petrol), Accent and Verna for a period of five years, the company said in a statement here.

The schemes would be available to the owners of Hyundai cars for their cars with minimal cost implications, it added.

The comprehensive extended warranty scheme provides full protection for the car, right from mechanical and electrical parts to engine and transmission for a period of five years or 1,00,000 km, whichever is earlier.

The other partial extended warranty scheme by the name of 'power train' would cover only the engine and transmission parts at a minimal cost for a similar period of five years or 1 lakh km, whichever is earlier.

Mumbai, May 28
The Indian rupee gained 23 paise at 42.73/74 against the US dollar today, cutting short a two-day falling string as demand for greenback petered out amid easing oil prices.

At the Interbank Foreign Exchange (forex) market, the local currency resumed firm at 42.87/88 per dollar from its last close of 42.96/97 per dollar and gradually moved upwards on exporters' dollar sales and petering out demand.

Meanwhile, global crude oil prices were trading around $129 a barrel in Asian trade today after hitting a record high of $135 level last week.

Dealers said oil refiners and other importers, which normally buy dollars at the month-end for import payments, slowed down dollar purchases during the day on expectations of a further fall in global oil prices.— PTI

BRIEFLY

Reliance Money in China
Hong Kong: Anil Dhirubhai Ambani Group firm Reliance Money on Wednesday announced its foray into Hong Kong and China with the launch of a bouquet of financial services for retail investors in these markets. The financial product distribution firm launched operations here through a tie-up with local brokerage firm Goldride Securities, thus becoming the first Indian broking and distribution company to offer such products in this region.— PTI

M&M to invest Rs 2,000 cr
Mumbai: Indian conglomerate Mahindra group today said it planned to invest Rs 2,000 crore into its automotive business. The investment would be done in the current fiscal, the group's chief financial oficer (CFO) Bharat Doshi said here.— PTI

Gold drops in London
London: Gold fell for a second consecutive day in London trading as crude oil plunged, diminishing the appeal of the metal as a hedge against inflation. Gold fell $13.47 or 1.5 per cent to $892.98 an ounce in London. Gold for August delivery fell $16 to $896.80 on the Comex division of the New York Mercantile Exchange.
— Bloomberg

Unitech gets spectrum in AP
New Delhi: Real estate major Unitech, which has pan-India telecom licence, said on Wednesday its subsidiary has received spectrum to roll out services in Andhra Pradesh. Department of Telecom (DoT) has alloted 4.4 Mhz of spectrum in 1800Mhz band in Andhra Pradesh services area, the company said in a notice to BSE.— PTI

Minda bags VW contract
Mumbai: Minda Industries, an auto electrical parts maker, on Wednesday said it has bagged orders worth Rs 50 crore from German carmaker Volkswagen for the supply of lamps for its upcoming models in India. The company informed the Bombay Stock Exchange about the orders that entail supply of headlamps and rear combination lamps for the car models.— PTI

Jaihind bags Rs 206-cr order
Mumbai: Engineering and construction firm, Jaihind Projects, on Wednesday said it has bagged an order worth Rs 206.53 crore from Gujarat State Petroleum for installation and construction services.— PTI

Infosys in pact with BBVA
New Delhi: Infosys Technologies on Wednesday said it has signed an agreement to implement Finacle Universal Banking Solution at financial services group BBVA. BBVA, one of the top 15 global banks, plans to invest 5.6 billion euros in the technology over the next three years and its 'innovation and transformational' plan, launched in 2007, aims at improving cost efficiencies and productivity. — UNI