New Delhi, September 8
The crucial OPEC meeting to decide over production cut will be held in Vienna tomorrow. The meeting is important for the consumers and oil producers alike. The decline in oil prices in recent weeks from $147 a barrel to $100 level, has been a welcome relief for consumers and a rare piece of positive news in an otherwise bleak economic setting. But for oil producers, increasingly accustomed to rising revenue, the falling prices is becoming a cause of concern.

For OPEC (Oil Producing and Exporting Countries), managing the current slowdown is tricky. Cutting production to stem the price drop could spark a backlash and paint the oil cartel as greedy and short-sighted. Leaving production unchanged may precipitate the decline in prices at a time when oil demand is slowing.

The focus of the debate among OPEC ministers will not be whether there is a need to cut crude oil production, but rather when to cut. There will be a clear divergence within OPEC — between the countries that want to keep oil prices high, such as Iran and Venezuela, and those that want to lower prices to a level where they do not hurt global demand, such as Saudi Arabia. It has to do with getting used to economic wellbeing, and now being forced to cut because market cannot afford, say analysts.

Most countries have laid out massive development plans based on high oil revenue and now those plans will come under a cloud, the analysts say.

Producers have become used to these high prices, which have powered an unprecedented economic boom in the Middle East, Russia and South America. But the cartel is facing a dilemma. On the consumers side, demand for oil in the United States, the world's biggest market, has fallen by about one million barrels a day as a result of high prices, slowing economic growth and credit woes. The economic slump is spreading to Europe, and could also affect Asia, the main driver of oil demand growth. Also, the third quarter of the year is traditionally the time when refineries need less oil as they shut down for their annual maintenance.

India is also facing high inflation and dip in consumption of oil and oil-related products because of exorbitant prices.

Oil prices have slid so far and so fast that the retreat has led analysts and marketmen to predict further puncturing of what they call a speculative bubble. Many analysts don't see a floor at $100, but rather at levels as low as $70 or $80 and some even at $60 levels.

At a recent meeting of producers and consumers in Jeddah, Saudi Arabia pledged to keep pumping full output to bring prices down. The kingdom is OPEC's biggest producer and the group's de facto leader. At the same time, analysts said, the Saudis realise that if they keep their output at the current level, they will create a glut in the market. The kingdom is pumping about 600,000 barrels a day more than its official quota.

OPEC accounts for about 40 per cent of the world's oil production. It does not set prices directly. Instead, its members manage global supplies through production quotas that are periodically assigned to all member countries except for Iraq.

New Delhi, September 8
The idea of imposing cess on big diesel cars is back in reckoning after top petroleum officials last week stated that it was not viable and doable as it was likely to cause dissent amongst people. The government today said it might impose a 25 per cent cess on big diesel cars and charge bulk users, other than railways and state transport corporations, Rs 22 a litre more for diesel as part of a dual fuel pricing policy

“Big car owners do not deserve subsidised diesel. We want them to pay market price but it will be difficult to ask petrol pumps to charge them higher than other vehicles. So it is being debated if a 25 per cent cess on the car price may be imposed on big cars,” a top petroleum ministry official said.

“This is part of a dual diesel pricing proposal the ministry is preparing for the cabinet,” he said. Diesel to industrial users, other than railways and state transport departments, will be sold at market price of Rs 57 a litre. At present, diesel in Delhi costs Rs 34.86 a litre.

Industrial units like power generators in IT industry find subsidised diesel cheaper than freely priced fuel oil and naphtha, pushing demand that has forced refiners import the fuel to meet the requirement.

The idea was to limit sale of subsidised diesel to transport and agriculture sectors only, he said, adding that the petroleum ministry was holding consultations with various stakeholders and would move a cabinet note this month.

While the cess on big diesel cars would give about Rs 150 crore additional revenue annually, charging bulk users higher price would reduce loss of state retailers Indian Oil, Bharat Petroleum and Hindustan Petroleum by Rs 14,000-15,000 crore.

More than half of the projected Rs 1,65,300-crore revenue loss on sale of petrol, diesel, domestic LPG and kerosene this fiscal is on account of diesel sales, the official said.

Diesel demand in April-July had grown by 18 per cent, with bulk of the growth coming from industrial users like power plants.

Chandigarh, September 8
A strong surge by the domestic Information Technology (IT) market has kept the momentum going for the Indian IT industry, with the sector recording a 34 per cent growth in 2007-08 as against 27 per cent in 2006-07.

This surge has taken the total domestic IT market to Rs 99,018 crore in 2007-08, reversing a decade-old trend of export industry growing faster than the domestic market.

The overall Indian IT industry grew 29 per cent in 2007-08 to report revenue of Rs 2,88,810 crore. Exports, contributed largely by software and services, accounted for nearly two-thirds of the revenue at Rs 1.89 lakh crore, and grew at 27 per cent compared to 35 per cent growth recorded during 2006-07.

A survey conducted in this regard by Dataquest, a publishing from CyberMedia, says 2007-08 also saw the rupee upstaging the dollar and the domestic market grew faster than the export market for the first time in the Indian IT history. CyberMedia chairman Pradeep Gupta said, “Despite the downturn and the challenging economic climate, the top IT services companies managed to keep growth up and their margins intact”.

He said within the domestic IT market, the hardware industry (comprising personal computers, servers, peripherals, networking and storage products) contributed one-half of the revenue — Rs 49,589 crore. The rest was contributed by domestic IT services — Rs 26,756 crore (28 per cent growth) and software Rs 12,179 crore (27 per cent growth) BPO Services (voice only) contributed Rs 8,600 crore (65 per cent growth) and training Rs 1,894 crore (51 per cent growth).

The survey also revealed that over two million notebooks were sold during this period, registering a growth of 59 per cent, growing at twice the rate of desktops. Notebooks now form nearly one-fourth of the 8.25 million personal computers sold in the year.

According to Dataquest, the improved showing by domestic hardware segment is because of the spread of computing to smaller towns and cities of India as well as the rise in small businesses.

The kingpins of the Indian domestic IT services are IBM with Rs 1,051 crore in revenue followed by Wipro Infotech with 850 crore, HP with 843 crore, TCS/CMC with 770 crore and HCL Infosystems with 330 crore and Tulip Telecom with 318 crore.

But there were some sectors that slowed down as well. The IT services exports, for instance, grew by 26 per cent in 2007-08 as compared to 39.9 per cent growth in 2006-07.

Chandigarh, September 8
Subhiksha stores in the region are running dry. It is not just the fruits and vegetables that have gone missing from the stores, but also the grocery items, toiletries and medicines.

According to information available with The Tribune, the company has not been replenishing stocks in its stores since two weeks now. As a result, most of the stores in Punjab, Haryana and Chandigarh, now present a barren look. Information received from across the region revealed that while the stock position in Subhiksha mobile stores was satisfactory, the retail stores were not getting adequate supply of fruits and vegetables, groceries and toiletries.

Sources say that other than the commonly used vegetables like potatoes and onions, the stores are not stocking other vegetables.

Subhiksha, with its USP of supplying goods at discounted rates, has found a huge market in the region. But, repeated problems of supply constraints are hampering its growth story here. Though the company officials claim that the supply chain has been temporarily cut so as to upgrade the IT system and redesign its stores, sources say that the company has run into trouble with its suppliers over payment issues, which has affected its supply chain. Last week, the company’s stores in Delhi and the National Capital Region, too, were facing a supply constraint after the vegetable traders in Azadpur Mandi refused to supply them material over the company’s failure to release their dues on time.

Officials of the company, however, rubbish these claims and say that the supplies will be restored by the end of the month. “We are trying to upgrade our IT system and going to SAP. Since the shift to SAP requires that the stock piles are reduced to a certain level, we are deliberately bringing down the stock levels. Once the IT system is upgraded by the end of this month, we will refurbish the stocks,” said a senior company official.

Mrinal Roy, president, Subhiksha (North India), said there was no problem over payments to the suppliers. “We have ample funds at our disposal, and are in fact looking at expansion. We are looking to increase our stores from 110 across Punjab and Haryana to 200 by the end of this fiscal. We are also planning to enter Himachal Pradesh and Jammu and Kashmir by opening 20 stores in the two states,” he added.

Mumbai, September 8
ADAG group company Reliance Big Entertainment has acquired a majority stake in the US-based Willow TV, which is in the business of streaming live over the Internet major cricket events from across the world, a statement released here today said.

According to Reliance Big Entertainment, the Sunnyvale, CA- based Willow TV has a following among South Asians, Australians, South Africans and English cricket fans.

"The acquisition of Willow TV is in line with our strategy to strengthen our presence in the global markets and reinforce our Group's presence in new media. Not only is there considerable scope to expand the size, scale and scope of Willow TV portal, we are also looking at launching a Video-Box Service which will seamlessly integrate cricket, movie and television content on the television screen which would give our audience great choice and enhanced viewing experience. There is a considerable synergy between cricket from Willow TV, movies from Bigflix.com, and telecom services from Reliance Communications," Reliance Big Entertainment president Rajesh Sawhney said in a statement.

Willow TV co-founders Vijay Srinivasan and Sameer Mehta added, "We are very happy to be a part of the Reliance ADA Group and excited at the prospect of scaling up the business manifold. There is complete convergence of vision between Willow and Reliance Big Entertainment. The synergies from the ecosystem will enable us to offer a significantly superior product to our consumers across three screens: PC, Mobile and TV."

New Delhi, September 8
At a time when Internet and broadband penetration in the country remains one of the lowest in the world despite India being the second largest market for mobile phone services, Bharti Airtel has announced its collaboration with Hewlett-Packard (HP), in a combined effort to promote broadband and PC penetration.

Under the scope of the partnership, Airtel will offer consumers a broadband connection at discounted entry cost with every HP and Compaq notebook and desktop. This alliance is a key initiative by the two industry leaders to further enhance broadband and PC penetration levels in the country. 

Announcing the collaboration, Deepak Srivastava, CEO-North, Telemedia Services, Bharti Airtel, said, “At Airtel, it is our consistent endeavour to look at innovative and exciting ways that help our customers derive the most out of their broadband experience. The synergies of the Airtel-HP alliance will leverage the symbiotic relationship between the PC and broadband, spurring uptake of best-in-class content and an enhanced boarding experience for both existing and first-time users. This initiative will further enhance our leadership in the broadband space, and is an excellent value for money proposition for our customers.” 

According to Rajiev Grover, director, consumer products, HP PSG India, “As the market leader in the Indian PC space, we have continuously worked towards creating an enabling ecosystem by not only creating a diverse product range, but also to create relevant offerings appealing for the dynamic market. With this unique partnership with Airtel broadband service, we have gone a step beyond adding value to the ultimate PC experience that HP has to offer. As more and more consumers log onto the Internet for e-commerce, entertainment and gaming, P2P sharing and for downloading applications, this tie up will enable the user to get more from his PC.” 

Under the offer, Airtel would be offering customers buying any HP Compaq notebook an Airtel broadband connection that would include zero security deposit and installation fee, free Wi-Fi connection and discounts on broadband rental for up to 14 months.

Guwahati, September 8
Two premier tea research institutes of India and Sri Lanka have signed an MoU for cooperation in research and modernisation of tea processing methods and machinery.

The MoU was signed between Tea Research Institute (TRI) of Sri Lanka, the world’s oldest and largest tea research centre, and Tocklai Experimental Station (TES) of Tea Research Association (TRA) at the TES complex at Jorhat in Upper Assam.
The 12-member Sri Lankan tea delegation to TES in Jorhat was led by the island country’s plantation minister D.M. Jayaratne accompanied by the chairman of the TRI, G Jayawardane. The MoU was inked by the TEA chairman C. S. Bedi and his Sri Lankan counterpart G Jayawardane.

TES director Mridul Hazarika has informed that MoU was focused on collaborative research and development works between the two institutions on certain areas of common interests. He said both institutes had agreed to work in collaboration in generating data on pesticide residue in tea, control of pests, plant breeding, germ plasm exchange, automation on tea factory, machinery developments and some other areas.

From now onwards, there will be intensive scientists’ exchanges programmes between the two premier tea research institutes. There will be joint research on maximum residue limits (MRLs) with particular reference to copper and sulphur levels in made tea in view of rising concern among global buyers.

The idea about having a joint research initiative took root when a delegation of TES had visited Colombo last year to attend an international tea convention. The TES director informed that well defined modalities would be worked out soon to set the MoU on the roll.

Addressing the function held at the TES for signing of the MoU, the Sri Lankan plantation minister Jayaratne hoped that the joint research would be focused in improving quality of tea produced in both countries so that better prices were realised in the global market.

In recent years, Indian tea is facing stiff competition from tea produced in Sri Lanka and Kenya in the global market in respect of quality and prices. 

BRIEFLY

New Delhi
Ketan Parekh gets bail: The Supreme Court on Monday granted bail to Ketan Parekh in the Rs 47-crore Canfina Mutual Fund scam case in which the stock broker was sentenced to a one-year jail term. In the 1992 scam, Canbank Financial Services was duped of over Rs 47 crore by Parekh and others. In April this year, Justice V. M. Kanade, heading the special court for trial of offences relating to transactions under the Securities Act, convicted them for criminal conspiracy, misappropriation of funds and cheating. — TNS

GM forms new Co for salesi: US carmaker General Motors on Monday said it has created a separate entity for its sales and distribution activities in India as a part of restructuring and realignment of the company's corporate structure. "As a part of the restructuring and realignment of its corporate structure, GM India is transferring its sales, marketing and distribution activities to the new entity, while all manufacturing activities will remain with General Motors (India)," the company said in a statement.— PTI

Infotech Enterprises plan: Infotech Enterprises Ltd on Monday said its US subsidiary would acquire a California-based design services provider Time to Market Inc., the company said in a statement without disclosing the deal amount. In a related move, the company will also buy TTM India Pvt Ltd. — UNI

Mumbai
SRF acquires Thai firm: Technical textile manufacturer SRF Ltd on Monday said it has completed the acquisition of Thailand-based Thai Baroda Industries (TBIL) for Rs 100 crore. In a filing to the Bombay Stock Exchange SRF Ltd announced the closure of the acquisition of TBIL. "All financial dues as per the restructuring plan have been paid," the SRF Group subsidiary said.— PTI

TCS joint venture: Tata Consultancy Services (TCS) on Monday said it would incorporate a joint venture firm for which it has entered into an agreement with state-run NTPC, NHPC and Power Finance Corp to operate a national level power exchange. The JV company would be registered as a public limited company with an authorised capital of Rs 50 crore for setting up the power exchange to provide neutral and transparent electronic platform for power trading.— PTI

Philips buyout: Global provider of healthcare, lifestyle and lighting Royal Philips Electronics on Monday announced that it has reached an agreement to acquire Mumbai-based Alpha X-Ray Technologies. The company hopes to close the deal in the fourth quarter of 2008 which is subject to certain contractual and other conditions such as regulatory approvals, a press release issued here said.— PTI

Chennai
Leyland-Nissan in pact with TN govt: Hinduja Group flagship company Ashok Leyland and Japanese automobile major Nissan on Monday signed an agreement with the state government for setting up a manufacturing facility here to roll out 1.90 lakh light-range vehicles. Leyland also plans to set up a heavy vehicle factory with a capacity of one lakh vehicles per year. An MoU for these projects, with an investment of Rs 4,150 crore was signed by these companies with the Tamil Nadu government.— PTI

Karnal
Bombay Dyeing plan: Bombay Dyeing is all set to launch new range of products under its brand 'Blossom' and also roll out designer clothes, festival gifts and wedding kits, besides introducing a noble concept of organic and bacteria-free bed sheets. The new products would be available through chain of 500 showrooms across the country, including 10 in Haryana. This was informed by Amit Malhotra, general manager of the company, after inaugurating a new showroom here. — TNS

Chandigarh
Swaraj tractors’ sales up: Punjab Tractors Limited, a subsidiary of Mahindra & Mahindra, has significantly consolidated its position in the tractor industry in August. For the month of August, domestic sales of Swaraj tractors rose to 2,779 units as compared to 1,663 units sold in the same period last year.As many as 49 units were exported during the month, as against 38 units for the same period last year, said A.M. Sawhney, deputy managing director. — TNS