New Delhi, June 4
Within hours of the government announcing a hike in fuel prices, truckers today jacked up freight charges by nearly 15 per cent, a move which will further cascade into the price rise.

All India Motor Transport Congress, representative body of truckers and transporters, is meeting here tomorrow to work out the impact of the rise in fuel prices and announce the new freight charges.

"The freight rate could be hiked between 15 to 20 per cent," All India Motor Transport Congress managing committee member Deepak Sachdeva told PTI.

He said all major transport associations, affiliated with the Congress, would also meet on Saturday to take stock of the situation. However, the transporters within Delhi and NCR region have increased the freight rates by 10 per cent.

"It has become difficult for us to absorb the increase in fuel charges and we have left with no choice but pass on the burden to consumers," said Bajrang Gupta of Deepak Transports.

Mumbai, June 4
The Maharashtra government is coming under pressure from civil society and Opposition leaders to reduce the sales tax on petrol so that the burden on the common man is lightened following the increase in prices of petroleum products.

Residents of Maharashtra pay the highest prices for petrol and diesel since the state levies a whopping 28 per cent sales tax on both petrol and diesel. Apart from the sales tax, an additional surcharge of Re 1 is charged per litre of petrol and diesel in Mumbai to fund the city's road improvement projects.

As a result, Mumbaiites will pay Rs 55.88 per litre of petrol as against Rs 50.54 earlier. Diesel prices, too, will increase from Rs 36.12 to Rs 39.54. Mumbaiites pay a higher price for petrol and diesel as compared to Delhiites despite the city offering lower cost benefits to refiners due to its coastal location.

Dealers in petroleum products say the government can considerably reduce prices by levying a flat sales tax. "If the government freezes the sales tax rate, at say 2006 levels, then the price of petrol and diesel can be brought down by at least Re 1 in Maharashtra," says Ravi Shinde, president, Maharashtra Petrol Diesel Dealers Association.

Maharashtra government sources say, sales tax on petrol and diesel was reduced from 33 per cent to 28 per cent only two years ago and any further reduction would sharply affect the finances of the state government. The 5 per cent reduction in sales tax was undertaken after a government survey showed that outstation truckers used to fill up their vehicles just outside the state's border in order to save on the higher sales tax.

Sales tax on motor spirits is a major revenue earner for Maharashtra.

In the financial year 2007-08 alone, Maharashtra is estimated to have earned slightly below Rs 6,000 crore by way of sales tax on motor spirits.

Sources say at the present rates, Maharashtra's earning from sales tax on motor spirits would be higher by about 10 per cent during the current financial year.

The central government had only last week appealed to the Maharashtra government to reduce the sales tax on motor spirits. The appeal was turned down by the state government on the grounds that such a measure could hit revenues.

New Delhi, June 4
The price hike announced on petrol, diesel and LPG is on expected lines and was unavoidable, said CII president K.V. Kamath. “The reduction in customs duty and specific excise rate is a welcome measure and shows the government’s commitment to share the burden of increased global prices”, he said.

The government had a very difficult task at hand, Kamath said. “A situation of global slowdown, moderating growth in some sectors of the economy, stress on the fiscal deficit and high inflation in the domestic economy presented the government with a tough balancing act. We hope that the growth momentum will not be impacted too hard by the oil situation”, the CII president said.

The PHD Chambers of Commerce and Industry has said that the government should have used this opportunity to end cross subsidisation of kerosene as well. “The poor could be subsidised directly though income coupons or food stamps. Besides, state levies on petrol and diesel also need to be reduced to subdue the impact of the petrol and diesel price hike on industry and economy”.

“The hardening of fuel prices will have a cascading effect on the economy, which is certain to fuel inflation, already ruling at 8 per cent,” said the PHD Chambers.

Assocham president Sajjan Jindal has welcomed the decision of the government to raise the prices of petrol and diesel. He said: “Though it will have some inflationary impact on the economy but the price rise had become absolutely unavoidable in view of sky rocketing crude oil pries globally”.

Jindal said as a result of the price rise, the petroleum companies’ margins would not shrink to the anticipated extent as a good sense has prevailed and the government effected the price rise.

He further pointed out that its adverse impact would be on inflation as the price rise in petroleum products would have cascading effect but the time has come when each one of us should bear the brunt of the increased prices of petroleum products.

Mumbai, June 4
Promoters of three special economic zones (SEZs) who are battling the government of Goa in the courts over their scrapping have received a boost after the Centre refused to denotify the projects.

The Rahejas, Cipla and a third promoter, Peninsula Pharma Research Centre, who had begun work on three SEZs that were already notified have moved the Panaji bench of the Bombay High Court challenging the state government's decision to scrap the projects.

The Goa government ordered the promoters to stop work on the projects and even threatened to arrest managers of the three companies if work on the projects were not stopped. Mobs led by different politicians also ransacked the premises of the three companies to force them to halt all work on the projects.

However, after the Central government refused to denotify the three SEZs, their counsel approached the court and sought permission to resume work. The court has now asked the Goa government to file a response in two weeks.

The Digambar Kamat government is now facing embarrassment and has asked the Centre to review its stand. "We are firm in our decision and there is no going back on our stand," Kamat told reporters in Goa today. Kamat had scrapped all 12 SEZs in Goa on last New Years' Eve in response to public protests. However, the other nine SEZs were only on the drawing boards and the government could get away with their scrapping.

Cipla, which is building its huge Meditab SEZ near Verna in South Goa, had already invested crores of rupees in the project. The Rahejas, too, were in the process of building the Mindspace IT SEZ when the stop work order came.

Meanwhile, the proposal to scrap the SEZs is receiving strong support from the opposition BJP as well. BJP leader Manohar Parrikar, who is also the leader of the Opposition, said the Chief Minister failed to sway his party colleagues at the Centre to scrap the SEZs in Goa.

Parrikar had earlier stated that the entry of outsiders who come to stay in Goa for long periods should be regulated.

Islamabad, June 4
Iran will mediate between India and Pakistan to end a deadlock on the issue of transit fees to be paid by New Delhi for gas transported through a $7.5-billion pipeline to be built by the three countries.

Iranian president Mahmoud Ahmadinejad has constituted a four-member committee of officials to hold talks with Pakistan and India on the transit fee issue. He has given the panel 45 days to settle the issue between the two countries and submit a report to him, sources in Pakistan's petroleum ministry told the Daily Times.

Pakistan and Iran were set to sign a bilateral gas sale purchase agreement (GSPA) for the Iran-Pakistan-India gas pipeline project by May 31 but would now sign the pact after the Iranian committee resolves the transit fee issue between Pakistan and India, the sources said.

Pakistan and India too could sign a gas transit fee agreement when the GSPA is signed by Iran and Pakistan, they said.

Former Pakistan petroleum minister Khwaja Asif and his Indian counterpart Murli Deora had announced after talks here on April 25 that the gas transit fee issue would be addressed within a short period of time but no progress has been made as yet in the matter, the sources said.

The sources said India had offered a gas transit fee of 15 cents per million British thermal units (MMBTU) whereas Pakistan had demanded 60 cents per MMBTU. They added that India had subsequently agreed to pay 30 cents per MMBTU as transit fee.

The sources said the Indian team led by Deora had assured the Pakistani authorities that approval would be sought from the competent authority and a decision conveyed to Pakistan in a week's time. However, Pakistan has not received a response from India so far, according to the report.

The committee now formed by the Iranian President will work to resolve the issue, the sources said.

India also wants Pakistan to charge a fixed transit fee for the lifetime of the project. However, Pakistan has turned down this demand and is of the view that the determination of the transit fee should be based on gas sales price in line with international standards, the report said.— PTI

New Delhi, June 4
The Department of Telecom (DoT) having charted out the rules for the allotment of the 3G spectrum, reports suggest that a large number of foreign players looking at operating in India may also be allowed to bid for a space in the spectrum.

Overlooking the suggestions of the telecom operator TRAI, which suggested that the auction may be kept for the existing players only, reports said that besides the foreign players even those who had lost out on not getting the licences in the past would get a look in.

According to reports, as many as 342 aspirants, including AT&T, DLF and Deutsche Telecom-MoserBaer may get to bid for 3G spectrum.

The DoT is understood to have mooted the proposal to allow those who had applied for licences between September 25, 2007 and October 1, 2007, to participate in the next generation 3G mobile telephony services.

However, despite having laid down the rules, reports said that DoT is also sceptical that existing players may go to court for allowing foreign players to participate in the 3G spectrum auction. This, the department feels, would further delay the process.

An internal note circulated by the DoT says that if a non-licence holder gets 3G spectrum (radio frequency) on the basis of auction, it will be given a licence. There are 342 applications pending for grant of licence on first-come-first-served basis and these applicants may also go to court and delay the process.

DoT wants to allow foreign players to participate in the auction with the basic idea of increasing its profitability. It feels that international competitive bidding, as suggested by the finance ministry, would increase the competition and thus bring larger revenues during spectrum allocation.

TRAI, on the other hand, feels that 3G auction should be kept for the existing players only as they would be in a better position to roll out the services faster and with better equipment.

New Delhi, June 4
The ministry for information and broadcasting has accepted the final recommendations by Telecom Regulatory Authority of India (TRAI) on the draft radio policy that permits a satellite radio service provider to hold the permission of channels also.

Among its various recommendations submitted to the ministry, TRAI has found acceptable the government's proposal in the draft policy on restrictions on news and advertisements in satellite radio service. The ministry, however, has carried out some modifications before accepting the final recommendations.

Satellite radio service refers to distribution of single or multi- channel radio programmes by using a satellite system which provides encrypted digital radio signals direct to the subscribers' receiver sets. The ministry had earlier requested TRAI on March 11 to give its comments on the draft policy guidelines.

According to reports, the guidelines would make a distinction between provision of satellite radio service (i.e. carriage of radio channels) and provision of content (radio channels) to such satellite radio service providers.

As such two different types of licence or permission have been provided for in the draft policy.

One type of licence is for providing the satellite radio service for carriage and broadcasting of channels, while the other licence entitles permission holder to get registration for satellite radio channels, which he will in turn provide satellite radio service operator for broadcasting.

TRAI incidentally, has also recommended for auctioning the licence if the number of eligible applicants exceeds the number of licences being offered depending on the availability of spectrum.

Shimla, June 4
The Satluj Jal Vidyut Nigam (SJVN), which was accorded the coveted mini ratna status last month, has been upgraded as a Schedule ‘A’ public sector undertaking by the Government of Inida.

It fulfilled all criterion laid down by the Department of Public Enterprise and qualified the qualitative and quantitative parameters like investment, capital employed, net sales, profits, employees, and also factors of national importance, complexities of problems faced, level of technology adopted, prospects for expansion and diversification and competitiveness to get the nod for elevation to a Schedule ‘A’ PSU.

The upgradation is in recognition of the achievements of the corporation in successful implementation, commissioning and operations of the country’s largest 1,500MW Nathpa-Jhakri Power Station, excellent financial performance and continued improvement in performance under the targets of memorandum of understanding. The upgraded status will help SJVN in further improving its operations as well as expansions.

The company's Nathpa-Jhakri Hydro Power Station has been consistently improving power generation since coming into full commercial production in May 2004. During 2007-08, it generated 6,432 million units of energy while during 2006-07, it had achieved 6,014 million units. In 2005-06, the power generation was only 4,104 million units and in 2004-05 it was 5,147 million units.

For the year 2006-07, it posted a net profit of Rs 732 crore and for 2007-08 the net profit was likely to be Rs 715.75 crore (provisional).

It has already paid an interim dividend of Rs 136 crore to the equity partners, Government of India (Rs 102 crore) and the state (Rs 34 crore).

BRIEFLY

Jet flights to Dubai
Dubai: Jet Airways will start daily direct flights to Dubai from New Delhi and Mumbai by next month, said Naresh Goyal, company chairman. India's largest private airline also hopes to start flights to Jeddah and Riyadh in Saudi Arabia, pending clearance from authorities. — UNI

SRF buy-back offer
Mumbai: Tyre cord maker SRF Ltd on Wednesday announced an open offer to buy back about 43.75 lakh shares worth Rs 70 crore. It would pay Rs 160 for each fully paid-up equity share of Rs 10, the company said in a filing with the Bombay Stock Exchange.— PTI

Jindal Power pact
Mumbai: Jindal Steel & Power on Wednesday said it has signed an agreement with the Jharkhand government for setting up a power project in the state at an estimated cost of Rs 11,880 crore. Jindal Power has entered into a memorandum of understanding with the Jharkhand government for setting up 2,640 MW (4X660MW) power project in the state at an investment of Rs 11,680 crore, the company said in a filing to the Bombay Stock Exchange.— PTI

LG hikes prices
Mumbai: Electronics major LG Electronics India has announced a price hike of 7-10 per cent of its product categories like monitors and optical storage devices. The increase in prices will be done in a phased manner, starting with 3 per cent with immediate effect, a press release issued here said.— PTI

Audi’s A4 sedan in July
Mumbai: German luxury car maker Audi on Tuesday said it would launch A4 sedan in July. The A4 is a mid-size sedan with a length of 4.70 metres. Audi said in a statement that it was accepting orders for A4 at its dealerships in Delhi, Gurgaon, Chandigarh, Pune, Hyderabad and Bangalore. The car is priced at Rs 29 lakh. — PTI