New Delhi, October 21
The politicians want to gain political mileage out of slashing oil prices for the forthcoming elections. “Unfortunately, the oil prices have not touched a level where the government can afford to slash a penny,” said an economist, when asked about the domestic oil price cut.

This could well be true as the government at this point of time needs more revenue to meet the supplementary demands that are coming up like fertiliser subsidy of Rs 38,863 crore, farm loan waiver of Rs 15,000 crore, Pay Commission outgo of Rs 20,000 crore, Rural Employment Guarantee (NREGS) Rs 10,500 crore.

The revenue to meet these expenses comes from the sale of petrol and petroleum products. So, even if oil prices are coming down, the government’s expenses have ballooned through various outgoes and oil revenue will be required to meet these expenses, say economists.

In this light, finance minister P Chidambaram today told Parliament that there could be no immediate cut in petroleum prices. However, he said there could be a review if global crude prices fall below $67 a barrel. Today, the international crude oil prices are ruling at $74 per barrel.

“Our administered prices of petrol, diesel, LPG and kerosene are based on Indian basket calculated at $67 a barrel. Reduction in crude oil prices has helped but not helped to the point where we can roll back the prices,” said the finance minister in reply to a discussion on the supplementary demands for grants.

“We sincerely feel that the prices will come down. When that comes down, the government at appropriate time will take appropriate decision,” he said.

Reflecting on the credit crisis, he said “at the moment the need is to stimulate economy. The RBI's move to cut short-term lending rate, and mandatory deposit requirements of banks (CRR) is intended to stimulate the economy.”

Meanwhile, petroleum minister Murli Deora also ruled out an immediate reduction in petrol, diesel and domestic LPG prices in step with softening of international oil prices.

"You will have to wait for that," he told reporters when asked if fuel prices are likely to be cut.

New Delhi, October 21
The reason for the stock market fall is getting apparent and will get clearer as the days go by. Unfortunately, it will bring more pain for the common man who has invested in stocks and mutual funds.

Market regulator SEBI has compiled a list of around 33 foreign institutional investors (FIIs) who have gone short in the stock market. Short-selling involves selling of stocks by investors who do not own these stocks.

According to information, these FIIs have shorted stocks worth $3 billion, estimated to be around Rs 200-300 crore.

Market sources say there is a possibility of a cartel between Indian and foreign FIIs, who have together shorted the market as the fall of the indexes (BSE and NSE) is becoming more and more certain, given the nervousness of financial crisis.

FIIs have already done enough damage to Indian stocks as they have already taken out $12 billion from the Indian stock market, driving the Sensex down from 21,000-level to sub 10,000-level.

The regulator had yesterday said the lending and borrowing activity of FIIs was being monitored and, if necessary, stronger measures would be taken by SEBI. In addition to this, SEBI had disapproved overseas lending and borrowing activity of FIIs and the consequent selling pressure in the cash market in India.

Marketmen say that FIIs registered in India have lent nearly Rs 300 crore to offshore FIIs in Singapore and Hong Kong stock exchanges for short-selling during October 10-15 period.

Many entities in these exchanges, who were not registered in India, had borrowed these stocks and have recently shorted.

The stocks are mainly of blue chip companies, especially those who have withstood the pressure of falling Sensex.

The fallout of this act could be that big stocks could now start falling as there will be a selling pressure developing on them.

The common man, who thinks that market will improve from here, is likely to get trapped in this act and suffer from making investments at these levels, say sources.

London, October 21
World stocks stumbled in the attempt to put in gains for the third day in a row on Tuesday as Wall Street futures turned down on economic fears.

European stock markets had been in positive territory as investors bet governments would succeed in ending the credit crisis and in controlling the global economic downturn.

But fears about the deteriorating global economy after tech bellwether Texas Instruments warned of slowing sales turned things down.

The dollar, meanwhile, hit a 1-1/2 year high against major currencies, including the euro. Sentiment in Europe and Asia was boosted overnight by comments from US Federal Reserve chairman Ben Bernanke, who backed government spending as a fresh measure to boost the US economy.

MSCI's all-country world stock index, a broad measure of global stock market performance, was flat to lower after gaining for two days in a row. — Reuters

Gurgaon, October 21
Car manufacturer Maruti Suzuki India Limited inaugurated its next-generation KB-Series engine plant here today, which they claim to be highly fuel-efficient.

With this introduction, the company has become the first one to introduce fuel-efficient vehicles in the country.

The new series engine is another significant initiative undertaken by the company towards offering the latest technology to its customers.

While talking to The Tribune, Shinzo Nakanishi, managing director, Maruti Suzuki India, said, "The 998-cc engine has been carefully designed to be environment-friendly and fuel efficient with its light weight construction and innovative technologies to improve combustion and minimise friction. The Smart Distributor Less Ignition (SDLI) system with dedicated plug top coils, high-pressure semi-return fuel system and advanced injectors for superior atomisation provides uniform and optimised combustion for better performance.”

"The new engine series is also an important step towards attaining the target sales of a million units in the domestic market by 2010-11," he added. The KB series engine will be mounted on the forthcoming model, A-Star.

After A-Star, the all new, light-weight, engine series will be progressively introduced in other models as well over a period of next 3-5 years. The new engine will also power the export version of A-Star. The company plans to commence exports of this model in early 2009.

The KB-Series engine, while fully complying with the prevalent BS III norms, is ready to meet the future emission norms in the country. The engine meets the Euro V norms for the export model of A-Star. The KB engine plant has an installed annual capacity of 240,000 engines.

The new engine will be manufactured in the state-of the-art, fully integrated manufacturing facility inside the Gurgaon Plant. Meanwhile, the company has committed to set up an R&D centre and testing ground at par with Suzuki Motor Corporation, Japan.

Chandigarh, October 21
Setting aside all claims of 100 per cent financial inclusion in Punjab, the State Level Bankers Committee (SLBC) of the state said this would be considered as achieved only when the unserved sections of the society were brought to the bank’s fold on an enduring basis.

Coming down heavily on bankers, Dr K.C. Chakrabarty, CMD, Punjab National Bank, said mere opening of bank accounts would not serve the purpose of total financial inclusion. He said the task force should bring the real picture in next meeting.

The bankers had earlier contended that they had managed to achieve a 100 per cent financial inclusion in rural Punjab, by opening no-frills accounts.

He said success in financial inclusion would be gauged only when the banks in the state were able to turn around the over 60 per cent population from non-institutional sources to institutional finance sources.

Punjab has the third highest rural indebtedness (average indebtedness of over Rs 41,500) in the country. Majority of farmers still rely on private moneylenders for their financial needs.

Endorsing Dr Chakrabarty’s views, regional director of RBI, Dr J Sadakadulla, said only when these unserved sections would be credit-linked, there would a total financial inclusion.

“We have conducted an independent evaluation of the 100 per cent financial inclusion claim in Punjab (by opening of accounts).

The report, which has been submitted to us recently, is based on a survey of two districts — Mansa and Gudaspur.

This report shows that 98.48 per cent inclusion has been achieved in Mansa and 95.43 per cent in Gurdaspur. We also conducted this survey in all 12 districts of Himachal Pradesh and found financial inclusion to the extent of 97.83 per cent,” he added.

Thus the need of the hour, added Dr Chakrabarty, was to expedite the use of IT-enabled business correspondent and business facilitator model.

The farmers can subscribe to this service by paying Rs 250 for a three-month contract. A six month contract will be available for Rs 500 and a 12 month contract for Rs 850.

Mumbai, October 21
The Bombay High Court today allowed the central government to implead itself in the RIL-RNRL case on gas supply after Anil Ambani group company Reliance Natural Resources Ltd said it had no problem to the government being a party in the matter.

The hearing of the case is now likely to continue after Diwali vacation. Earlier, Reliance Natural Resources Ltd was opposed to allowing government to intervene, but its counsels today said they have withdrawn their opposition. Reliance Industries had already said they do not mind government being made a party.

Mukesh Ambani-led RIL and Anil Ambani's RNRL are locked in a dispute over terms of gas supply master agreement, whereby RIL is to supply gas for RNRL's power projects.

Earlier, the division bench of Justices J N Patel and K K Tated had said that it would like to finish the hearing before Diwali, so that judges could write the judgment during the vacation.

But now with the government entry into the litigation, hearing may not get over before Diwali vacation.

While RIL and RNRL are squabbling over the price of gas, government counsel had earlier endorsed RIL's stand that price must have government's approval.

Court will pass the formal order impleading the government as the third party to the case tomorrow. — PTI

BRIEFLY

Rupee steady at 49
Mumbai: The Indian rupee on Tuesday ended steady at 49.00/49.01 against the greenback as dealings in the exchange market were lacklustre due to a strike by the RBI employees. Despite consolidation in equity markets, the domestic unit moved in a range of between 48.9500 and 49.1550 during the day. — PTI

RCom, IT majors in pact
New Delhi: Reliance Communications (RCom) on Tuesday announced a strategic alliance with leading IT giants Acer, Asus, HCL, Intel, and Lenovo to offer branded laptops powered by Intel’s ‘Atom’, absolutely free with its hi-speed Internet data card service Reliance NetConnect. It would offer a laptop free with unlimited internet package with price as low as Rs 1,500 per month (excluding service tax) for two years. — TNS

Rs 641-cr contract for BHEL
New Delhi: State-run power equipment maker Bharat Heavy Electricals on Tuesday said it has bagged Rs 641-crore contract for setting up a 412 MW hydro electric plant from Satluj Jal Vidyut Nigam Ltd. The project is situated at Rampur on the downstream of the 6x250 MW Nathpa Jhakri HEP and will use the de-silted water discharged by that project. — PTI

Manpower Inc buyout
New Delhi: Human resource services firm Manpower Inc on Tuesday said it has acquired 26 per cent stake in its Indian subsidiary Manpower Services India for an undisclosed amount, taking its total shareholding to 100 per cent. Manpower Inc bought the 26 per cent stake from ABC Consultants and with this the global HR giant now owns the Indian arm completely, thereby making Manpower India its fully-owned subsidiary, a company statement said. — PTI