New Delhi, June 5
Although the common man will suffer with a hike of petrol and diesel prices by Rs 5 and Rs 3, the air traveller is going to benefit from the government’s announcement. After slashing the customs duty on aviation turbine fuel from 10 per cent to 5 per cent, the oil companies IOC, BPCL and HPCL have passed on the benefit to aviation companies by reducing the rates of aviation turbine fuel (ATF) by 4.3 per cent or Rs 3,000 per kilolitre. The oil companies reeling under pressure from rising crude oil prices had raised the ATF by nearly 18.5 per cent 10 days ago.

The finance ministry had yesterday cut customs or import duty on jet fuel to 5 per cent from 10 per cent, resulting in lowering of the price and benefits have been passed on to the consumers, said S. V Narasimhan, director (finance) IndianOil Corporation.

However the airline companies are not enthused by the reduction and say they will still be under pressure on their operations of high crude costs. The aviation companies had introduced a fuel surcharge of Rs 300-550 per ticket to make the customer share the burden of high fuel costs.

There is no question of a rollback on fuel surcharge, said SpiceJet’s chief operating officer Samyukth Sridharan.

Sridharan reasons that fuel prices have shot up by nearly 50 per cent in the last three months and a marginal benefit of 4 per cent will not give them any benefit.

Vijay Mallya’s Kingfisher Airlines said it was studying the impact and would shortly arrive at a decision.

Another private airline, Jet Airways, too, maintained a similar stand saying it was too early to take a view on the matter and that it was studying the issue. “We have seen an increasing number of bankruptcies of airlines the world over and this can happen in India also,” said Jet Airways CEO Wolfgang Prock- Schauer.

Since 50 per cent of the running cost of an airline is jet fuel and its rising price has become a big problem, the CEO pointed out that ATF prices in India were much higher than other countries, primarily due to high taxes levied on them, said Jet Airways CEO.

“We must get substantial relief from the fuel burden in order to close the gap partially and to be viable,” he said, adding that since March they have had four increases and this fuel increase amounts to additional $100 million monthly (about Rs 400 crore) for the industry here. Although the aviation sector stomached a loss of Rs 4,000 crore in the last fiscal, there is not much appetite to bear losses this year, the CEO said.

ATF in Delhi will cost Rs 66,226.66 per kl with effect from today as against Rs 69,227.08 per kl earlier.

Mumbai, June 5
The Maharashtra government is likely to reduce sales tax on petrol and diesel by about 4 per cent so that the price of motor spirits sold in the state comes down by about a rupee, according to sources.

The modalities of reducing sales tax and alternative methods to mobilise resources to make up for the potential revenue loss will be discussed at a Cabinet meeting later this evening, state government sources said.

Maharashtra earns about Rs 6,000 crore by way of sales tax on motor spirits.

Earlier, the Congress party leadership had called upon Chief Minister Vilasrao Deshmukh to reduce sales tax on petrol and diesel in the state so that the burden on the common man is considerably reduced. The state charges 28 per cent sales tax on petrol and diesel while neighboring state of Gujarat charges far lower rates.

Senior officials of the Sales Tax department were called upon to brief senior government officials earlier today as part of the efforts to reduce sales tax on motor spirits in Maharashtra.

Till a few years ago, sales tax on these two commodities was pegged at 33 per cent. However this was reduced as motorists chose to fill up their tanks in neighboring states that charged lower rates.

Briefing reporters earlier today, Maharashtra's finance minister Jayant Patil said the Centre and the oil companies should formulate methods to speed up blending of ethanol with petrol and diesel. The proposal to blend ethanol with petrol and diesel is locked in dispute between oil companies and sugar manufacturers.

Maharashtra’s politicians, who control several sugar co-operatives, are in the forefront to push for blending of ethanol with motor spirits.

This measure, it is believed, would allow sugar companies and co-operatives to improve realisations since ethanol enjoys higher margins than sugar.

New Delhi, June 5
In another attempt to bring the laundering of the black money and terror funding under scrutiny, the government today approved major amendments in the Prevention of Money Laundering Act (PMLA) that would make it mandatory for casinos, credit card payment gateways like Mastercard and Visa, money changers and transfer service providers to report major transactions to Indian authorities.

The Cabinet at its meeting here chaired by Prime Minister Manmohan Singh gave clearance for the amendments which would make it more difficult for certain transactions to go unnoticed. This would also bring under scrutiny the terror financing.

The amendments will enable the government to meet certain domestic needs and international obligations," information and broadcasting minister Priyaranjan Dasmunsi told reporters after the Cabinet meeting.

The PMLA was enacted in 2002 but amendments have become necessary in wake of rising threat of misusing legitimate financial enterprises and channels to fund terrorist activities

Incidentally, the government has been examining records of more than 600 financial transactions that it believes could be linked to terror funding and other suspicious activities in the country and the region.

This has been done following a list forwarded by the Financial Intelligence Unit, set up by the finance ministry in 2006 to monitor money laundering and terror financing.

The list forwarded to the Intelligence Bureau, Research and Analysis Wing, regulators and departments, including the Central Board of Direct Taxes, Securities Exchange Board of India and the Reserve Bank of India includes suspicious transactions, including hundreds of cases of suspected terror financing and doubtful foreign remittances.

The amendment Bill, which is expected to be placed in Parliament in the Monsoon Session, has proposed a comprehensive definition for "casinos" to be included in the amended PMLA.

While no central legislation allows any casinos to function in India, two states - Goa and Sikkim-have passed state laws that enable legalised functioning of gambling resorts in the geographical boundaries of the states.

Reports suggested that once the amendments have been passed, cash that are taken to a casino to purchase chips and later for a casino cheque would have to be reported to monetary authorities in India.

New Delhi, June 5
Planning Commission deputy chairman Montek Singh Ahluwalia today said inflation would ease in next four months due to various measures taken by the government, even as petroleum price hike would add 0.5 per cent to the rate of price rise.

Ahluwalia also said economy was on the way to achieve 8 per cent target and this would not be affected by increase in prices of petrol, diesel and LPG from today. “It (inflation) would depend on the world prices, but it would be lower than the current level four months down...

The direct effect of what has just been done (petroleum price hike) will probably be about 0.5 per cent. But if the other measures we have taken, that start bringing down inflation, I hope it will not go to double digit,” he told reporters here. — PTI

New Delhi, June 5
The finance ministry has restricted tax holidays to only new refineries run by public sector firms and has barred units under construction by private sector companies like Essar Oil from the benefit.

The finance ministry on May 30 notified eight projects like IndianOil’s Paradip refinery, HPCL-Mittal’s Bhatinda unit and Bharat Petroleum’s Bina plant for extending seven-year holiday from payment of income tax.

Besides 15 million tons Paradip refinery, six million tons Bina project and nine million tons Bhatinda unit, it also listed Oil and Natural Gas Corp’s 3,000 barrels per day (bpd) and 1,500 bpd mini-refineries at Gandhar in Gujarat and Tatipaka in Andhra Pradesh, official sources said.

Other projects eligible for tax breaks include phase-III expansion of Mangalore refinery, new Visakh refinery expansion of Hindustan Petroleum and expansion of IOC’s Panipat refinery.

The seven-year income tax holiday to refineries will be available before March 2012 only if they are owned by public sector company or built by companies where state-run firms have 49 per cent stake.

For the refineries to be eligible for the tax sops, they should have been notified before May 31, 2008, and only eight projects have been notified, sources said.

These conditions have kept out refineries planned by Essar Oil at Vadinar in Gujarat, Nagarjuna Oil at Cuddalore in Tamil Nadu and Cals Refineries at Haldia in West Bengal out of the tax benefit purview. — PTI

New York, June 5
Diversified Indian conglomerate Tata group has emerged as the world’s sixth most reputed company, but the country’s most valued firm Reliance Industries (RIL) failed to make the grade.

Tata group leapfrogged over 100 positions from last year’s 124th rank in the annual ‘Global 200: The world’s best corporate reputations’ list compiled by US-based Reputation Institute.

The global list, which includes 10 other Indian companies, has been topped by Japanese auto maker Toyota, followed by US-based internet search giant Google, Sweden’s Ikea, Italy’s Ferrero and another American firm Johnson & Johnson.

The Ratan Tata-led group is joined by India’s second largest software exporter Infosys Technologies in the top 50 league at 14th position.

However, at least nine other Indian firms, which were among 600 companies considered in a survey to prepare the list, could not make it to the final 200. These firms include Mukesh Ambani-led RIL, the country’s biggest by revenue among private sector firms and overall largest in terms of market value.

Other Indian companies that were considered for the list but failed to make the cut include the biggest private sector lender ICICI Bank, top private and public sector telecom firms Bharti Airtel and BSNL, IT giant Wipro, Birla group’s Grasim Industries, tobacco-to-consumer goods conglomerate ITC as well as two state-run firms - BPCL and Air India.

Besides Tata and Infosys, other firms that made to the top 200 list include Maruti Udyog Ltd, State Bank of India, Hindustan Lever, Hero Honda Motors, Life Insurance Corp of India, Bajaj Auto, ONGC, Mahindra and Mahindra and Indian Oil Corp.

Maruti has been ranked at 77th, SBI at 107th, HLL (now renamed as HUL) at 131st, Hero Honda at 147th, LIC at 161st, Bajaj Auto at 169th, ONGC at 186th, M&M at 191st and IOC at 199th position.

The survey was conducted on 600 largest companies from 27 countries, out of which 200 were selected for the list. — PTI

Chandigarh, June 5
Having tasted success in the cluster development programme in Gurgaon, Faridabad and Ludhiana, CII (northern region) will carry the programme forward this year by setting up clusters of engineering and textile industry in Amritsar and of information technology in Mohali.

Outlining the roadmap for the CII (northern region) for this year, newly elected chairman Salil Singhal said CII is committed to enhance the competitiveness of the region and develop business opportunities for the industry. The cluster development programme had ensured that the industry pools its resources and in turn maximised their profits, he said, adding that they were now planning to have six cluster development programmes, including Amritsar and Mohali.

Singhal said the focus areas for the industry body would be on manpower development and upgradation of ITIs. “We will lay greater focus on infrastructure - power physical connectivity, water and urban development. The idea is not just to strengthen the inter-state infrastructure, but also the intra-state infrastructure,” he added.

He said the other key focus areas this year would be agriculture development by organising agri-conclaves and tourism by organising tourism conclaves. “We are also actively involved in giving shape to the industrial policy in Punjab and Rajasthan. As a premiere industrial body, we are also pursuing labour reforms with the state governments in the region,” he said. 

Chandigarh, June 5
Jay Retailing and Merchandising, promoters of The Loot chain of retail stores in the country, is on an expansion spree. The company plans to pump in Rs 100 crore in its business in the next three years to set up their multi-brand stores across India.

Talking to The Tribune here today, managing director of the company Jay Gupta said they were planning to increase the number of their retail stores from the present 32 to 100 by the end of the financial year. “We have one lakh square feet of retail space operational and another one lakh square feet of space will be added this year. We are focusing on expanding our reach in small towns and cities. In Punjab, we plan to open 10 retail outlets by the end of this year,” he said, adding that two outlets in Amritsar and Jalandhar are already operational.

The Loot retails about 100 brands like Pepe Jeans, Puma, Reebok, Fila, CAT, ID, Red Tape, Marco Ricci, Nautica, Adidas, Nike, Bossini and international brands like Banana Republic, GAP, Old Navy and Mercedes. “In October this year, we will be introducing the prêt line of designer brands like Ragahvendra Rathore, besides launching a new in-house brand called Road,” said Gupta.

He said this year the company would double its turnover to Rs 100 crore, from the last year’s turnover of RS 51 crore.

BRIEFLY

M&M buys Engines Engineering
MUMBAI: Mahindra & Mahindra on Thursday said it has acquired $12-million Italian two-wheeler designing firm Engines Engineering for an undisclosed amount. “M&M has signed an agreement with Engines Engineering, agreeing to acquire 100 per cent stake in Engines Engineering,” the company said. The acquisition would enable M&M to penetrate into the markets of Europe, China and Russia. — PTI

Stanchart’s Platinum card
MUMBAI: Standard Chartered on Thursday launched Manhattan Platinum Card to offer both cash back and rewards as a standard feature on the same card to its customers. The card would offer 5 per cent cash back on all departmental stores and supermarkets and five reward points per Rs 100 for all other spends, the bank said. — PTI

Carrier to hike product prices
NEW DELHI: Air conditioning major Carrier India on Thursday said it would increase prices of its different products by 3-5 per cent on the account of rising input costs. The company said the price hike would be on its range of residential, light commercial and commercial air-conditioning products due to increase in global prices of copper, steel and plastic. — PTI

Ericsson, Apollo tie-up
CHENNAI: Ericsson and corporate hospital group Apollo Telemedicine Networking Foundation (ATNF) on Thursday signed a agreement to take telemedicine to the remote corners of the country. As per the MoU, ATNF would provide expertise in telemedince through ‘HSPA’ network provided by the telco, Ericsson (India) president Mats Granryd said here on Thursday. — PTI

SBI strike deffered
CHANDIGARH: The strike by SBI officers, scheduled for Friday, has been deferred. In a press release sent here on Thursday, Vijay Magon, general secretary of State Bank of India Officers Association, said an understanding had been reached between the management and the All India State Bank Officers Federation —TNS

PNB’s new circle head
Chandigarh: Rohtash Kumar has joined as circle head, Punjab National Bank, (Chandigarh Circle), comprising PNB network of branches in Chandigarh, Panchkula, Ambala and Yamuna Nagar districts of Haryana replacing R.D. Kailey, who has been transferred to circle office, Dehradun. Kumar joined PNB in 1972 and since then has worked in different capacities and held various senior-level positions. —TNS