New Delhi, September 11
Inflation fell for the third week in succession to close at 12.1 per cent for the week ended August 30 from 12.34 per cent recorded a week earlier.

While food articles prices rose 0.2 per cent, primary articles were up by 0.3 per cent and non-food articles by 0.3 per cent.

Manufactured products recorded a similar rise by 0.3 per cent, while food products rose 1.3 per cent. Fuel, power and light, however, remained unchanged.

Talking about the softening inflation, commerce minister Kamal Nath last week had said the government’s supply-side measures had begun to take effect and inflation should soften from the current levels.

The finance ministry also believes that inflation will come down to a single digit by the end of this fiscal if oil prices keep softening in the international markets.

“If oil prices go below $100 per barrel, the wholesale price index-based inflation will even come down to 5-6 per cent by the end of the current fiscal,” said Arvind Virmani, chief economic adviser in the finance ministry.

He also said that food price inflation has not been that severe in India when compared with the global situation, as prices of primary food articles such as fruits, vegetables, tea and lentils had gone up by 6.04 per cent during the 52-week period ended August 23.

“It is partly because of the nature of our economy, which is still isolated from the global situation, except in one or two commodities like edible oils, as we import some 60 per cent-plus of our overall edible oil requirements,” he said.

Mumbai, September 11
The Indian rupee continued its slide to third straight day and virtually hit a two-year low of 45.57/58 against the greenback today on sustained dollar demand from oil refiners and stronger US currency overseas amid weakness in equity markets.

Domestic currency tumbled 46 paise to closing level last seen on October 12, 2006.

In active trade at the Interbank Foreign Exchange (forex) market, the rupee fluctuated in a range of 45.32-45.58 during the day after resuming sharply lower at 45.35/36 a dollar from its last close of 45.11/12 a dollar.

The US dollar strengthened to a one-year high against the single European currency in overseas markets during the day.

Forex dealers said sustained dollar demand from oil firms in the light of low crude oil prices and inadequate dollar supplies weighed on the rupee sentiment.

They said the fall in rupee was in line with other Asian currencies which also
weakened on concerns that the broader credit crisis would have adverse impact
on world economies.

However, the largest state-owned lender State Bank of India sold dollars at a 45.45 level during the first half of the session, they added.

All major currencies weakened against dollar due largely to increased risk aversion, a leading banker said.

The rupee also remained under pressure because of bearish equity markets and consistent capital outflows, the key driver of the rupee during last year. — PTI

New Delhi, September 11
In a strongly worded letter to the Prime Minister Manmohan Singh, CPM leader and secretary, Center of Indian Trade Union (CITU), Dipankar Mukherjee, has said that government should look at ensuring gas supply by Reliance Industries (RIL) to power major NTPC.

The leader has drawn the attention of the Prime Minister towards the tacit
understanding between the government counsel, officials of the oil ministry
and Reliance Industries.

The understanding between the three parties is very obvious because the government counsel T.S. Doabia made a statement in the Bombay High Court during a hearing on August 21 last in the related RIL-RNRL gas-supply agreement that the power major NTPC had not concluded a final gas-supply agreement with RIL and hence does not have the right over the gas.

Mukherjee has written that NTPC, a government company, is not able to get the gas contracted through international competitive bidding process three years back from a gas source located within the country only because the same is now under the control of a powerful private corporate.

The CPM leader has requested the Prime Minister to institute an inquiry as to how such bungling could be done on an issue involving power generation by NTPC when the country is reeling under severe power shortage.

Later, in a surprising move, the petroleum ministry had asked the government counsel to withdraw his statement when the case was being heard on September 1, 2008 against RIL.

Mukherjee has also brought to light the fact that statements made against RIL by the government counsel had a prior approval of the oil ministry.

Earlier, NTPC chairman had said that RIL-NTPC agreement was a legally valid and
concluded one.

“The statement made by the government lawyer in the RIL-RNRL case is false and misleading. Our lawyers will strongly deny such statements in the court, when the case comes up for hearing,” he said.

The government lawyer’s statements came in the course of legal proceedings between RIL and Anil Ambani Group company RNRL over a disputed contract to supply gas from the KG Basin.

NTPC is fighting a separate, though related, legal battle with RIL over supply of gas from the same source.

New Delhi, September 11
Telecom operator Bharti Airtel today said they hoped to start operations in Sri Lanka by the end of the year, despite the delay in getting interconnection from the local operators there.

Talking to reporters here at the launch of its innovation fund, Bharti Airtel CEO Manoj Kohli said discussions were underway with the Sri Lankan Telecom regulator and the existing operators there relating to the interconnection issue.

“It should be sorted out shortly," he said, adding that Airtel should be in a position to start its operations there before the end of 2008.

Earlier, Bharti Airtel president (mobility) Sanjay Kapoor had said incumbent operators in Lanka were not giving interconnections to the company.

Responding to this, four Sri Lankan operators had issued a joint statement yesterday terming Bharti's allegations as false.

The four operators — Dialog, Hutch, Mobitel and Tigo — had expressed their displeasure on the accusation that they were preventing Airtel’s entry into the Island by not providing interconnection on the same terms as between them.

"As strong believers in competition and the resulting dividends to consumers and market growth, Sri Lanka's mobile operators welcome additional competition," the joint statement had said.

The company claims to have procured the core equipment for the services and is presently mobilising the radio equipment.

Baddi, September 11
FMCG major Amway India is targeting a Rs 1,000-crore turnover by the end of this year by expanding its product portfolio and contract manufacturing facilities.

The company has aggressive plans to introduce new products in its nutrition and wellness segment, besides foraying into the health drink segment.

This was stated by Yoginder Singh, vice-president, Amway India, here today.

“We are banking on new product launches to ensure that the company zooms from Rs 807-crore turnover in 2007 to Rs 1,000- crore turnover this year. The great value product range, launched in March this year and aimed at the mass segment, will also help us grow by almost 25 per cent this year,” he said.

He said their contract manufacturing partner here, Sarvotham Care, was planning to expand its facility at an estimated cost of Rs 30 crore.

“This plant, which manufactures 80 per cent of all Amway products, will expand all product manufacturing lines (personal and home care, cosmetics and nutrition and wellness), as this plant is already running to its optimum capacity,” he said.

He said the growth drivers for the company would continue to be the nutrition and cosmetic products.

“This year, Amway India had also launched heathcare products for children — banana, chocolate and strawberry drink supplements, besides chewable tablets.

“Though the maximum revenue (Rs 100 crore) for the company in India is earned by the protein powder sold under Nutralite brand, we are looking forward to introducing Double X (a diet supplement rich in minerals) in India.

“This is the company’s growth driver amongst the nutrition products across the world,” he added.

The approval was given for the implementation of Rs 774-crore global positioning system (GPS) aided project.

New Delhi, September 11
GMR Energy plans to invest over Rs 10,000 crore in setting up a 2,000-3,000 MW nuclear power plant in the country in the next between 5 and 7 years, a company executive said today.

"We have held talks with equipment as well as fuel suppliers and will firm up a plan in the next one years time," GMR Energy executive vice-president Avinash R Shah told reporters here. GMR Energy is a unit of GMR Infrastructure Ltd.

Shah said the company has hired very experienced people from state-owned Nuclear Power Corporation, including former CMD M.R. Srinivasan, for its nuclear foray.

"Right now it is at planning and preparation stage. In the next six months to one year, we should have a broad plan in place," he said.

GMR is in talks with equipment and fuel suppliers in France, United States and Korea for the power plant, he said.

"We may get a strategic partner (with nuclear technology) but I cannot say anything more now."

He said GMR Energy, which currently has 800 MW of thermal power generating capacity, may list in the next 1-2 years.

"We have projects to take up the capacity to 4,500 MW in about five years from now," he said.

Of the under construction projects, 1,500 MW would be hydroelectric power — two in India and three in Nepal.

Two coal-based power plants adding 2,200 MW capacity are under construction in Orissa and Chattisgarh. — PTI

Bangalore, September 11
IT major Infosys today reiterated it would have to rethink and relook into investment plans in West Bengal, but said it had taken no decision on the matter yet.

"We are yet to take any decision. I said we will have to relook and rethink because we are concerned about the safety of our employees," said T V Mohandas Pai, member of the Board, Infosys, on the sidelines of a function to announce renewal of LIC group insurance cover to its employees.

On reports that the Chief Minister of West Bengal had got in touch with Infosys and assured them of the state government's support and cooperation, he said: "These are very encouraging remarks."

Speaking about the economic scenario, he said the prices of oil had come down and that "will have tremendous impact on creating new growth impulses again".

He said that the sub-prime crisis was wading through and with the US treasury having taken over mortgage giants Freddie Mac and Fannie Mae, "I think, we have passed the turning point. We have to wait and watch".

There will be some stability in the financial markets, he hoped. — PTI

BRIEFLY

RIL falls below Rs 2,000
Mumbai: Shares of Reliance Industries on Thursday slipped below the Rs 2,000 level on the bourses on heavy selling by foreign funds and retail investors, triggered by weak global cues. RIL opened on a weak note and then lost further ground and touched an intra-day low of Rs 1,995 on the Bombay Stock Exchange, a dip of Rs 88.55 from its previous closing price. — PTI

Lakshmi Overseas, PTC in pact
Mumbai: Punjab-based Lakshmi Overseas Industries on Thursday said the company has entered into an agreement with PTC India, a government initiated public-private partnership firm for selling 'green power' generated from its 30 MW biomass-based plant. The pact was signed for five years. The agreement will come into effect from October 1, it added. — PTI

HPCL in pact with Renuka Sugars
Mumbai: State-run refinery Hindustan Petroleum Corporation Ltd (HPCL) on Thursday said it would form a company in joint venture with Shree Renuka Sugars Ltd to set up an integrated sugar plant in Maharashtra. A MoU has been signed under the agreement, HPCL said in a filing to the Bombay Stock Exchange. — PTI

Power project in Bihar
Mumbai: Country's largest power producer NTPC Ltd along with Bihar State Electricity Board will set up a coal-based power project, with a capacity of 1,980 MW, in Bihar. The company has entered into a joint venture with Bihar Electricity Board in this regard. — PTI

Stake in Newgen Software
New Delhi: SAP Venture, the venture capital arm of SAP, has picked up a minority stake in product company Newgen Software for an undisclosed amount. The strategic investment by SAP Venture will help Newgen to widen its client base and enter new geographies, according to company sources. — PTI

Canadian trade office in A’bad
Toronto: Taking its economic ties with India forward, Canada has announced that it would open a trade office in Ahmedabad. The announcement was made by Prime Minister Stephen Harper while delivering a key note speech at a function organised by the Indo-Canada Chamber of Commerce (ICCC) here on Wednesday. — PTI

Okaya plans unit in India
New Delhi: Global battery and inverter major Okaya Power is planning to set up a manufacturing plant in India with an investment of Rs 50 crore. The 8.4 lakh annual capacity sealed maintenance-free (SMF) batteries plant would be set up in Himachal Pradesh and is expected to begin commercial production by November this year, Okaya said. — PTI