|
|
|
|
Relief package soon for housing, core sectors
GM to slash up to 31,500 jobs
Tata Motors to shut Pune plant for 3 days
Vodafone’s plea against I-T Dept dismissed
|
|
OilMin official summoned in RIL-RNRL case
MTNL to start 3G services on December 11
3 US automakers seek $34-b aid
SBoP bonanza for SMEs
M&A norms for insurance sector by fiscal-end
Himachal chief secretary meets industrialists
Fitch affirms IVRCL ratings
|
|
Relief package soon for housing, core sectors
New Delhi, December 3 According to sources in the finance ministry, the government is likely to announce the package by the end of this week because it fears that if urgent steps are not taken, the economy could slow down further and the 6-7 per cent growth rate may not be possible. The sources further say that bold measures are being taken in the wake of inflation coming down and the pressure of food and commodity prices easing on the common man. The package is likely to include reduction in interest rate subsidy for housing and auto loans, setting up a special infrastructure fund, interest subsidy for export-dependant sectors (like textiles, handicrafts and leather), besides monetary measures, such as interest rate cuts. Going further, there will also be a reduction in petrol prices, though sources say, that will be a part of another package. The government is likely to provide interest subvention (relief) for low-cost housing. The maximum limit for such loans is likely to be Rs 10 lakh. The realty sector, severely hit by financial crisis and high interest rates, will be permitted to reschedule their overall debt, the sources said. The government is also likely to relax the rules on External Commercial Borrowings to boost investment in the infrastructure and realty sector. The low-cost housing projects would be given a boost by allocating more funds to the National Housing Bank (NHB). NHB, in turn, will use these funds to enhance the refinancing amount to housing finance companies to facilitate affordable housing projects. For the demand-hit export sector, measures that are under consideration include interest subvention and making available credit lines for sectors like textiles, leather, automobiles and handicrafts. Other likely measures include increased spending on infrastructure, special credit window for select sectors like power and roads and enhanced credit period and insurance cover for exporters. On the fiscal front, import duty cuts to protect domestic industry, especially the auto and engineering sectors, from cheap imports may be announced. The government is also likely to extend the period of post-shipment export credit from 90 days at present to about 180 days. Additional export relief measures may include increased duty drawback rates used by exporters to get back duties like excise paid on producing goods for overseas sales. The government may also permit developers of special economic zones to raise funds through the ECB route only for infrastructure development activities, like construction of roads, ports, airports, power generation and water supply. On the monetary front, sources say, the RBI will take a call on the options that include a cut in the repo and reverse repo rates, besides reduction in the CRR in order to provide more liquidity. The reduction of repo rate by 150 basis points, a 200 basis-point cut in the reverse repo rate and a 150 basis-point cut in cash reserve ratio is under consideration. |
|
Chicago, December 3 GM said yesterday it planned to reduce its total US employment from the current level of 96,537 people to between 65,000 and 75,000 salaried and unionised workers by 2012. The total number of US plants would be cut to 38 in 2012 from 47 in 2008. GM has already slashed its workforce nearly in half from the 2000 levels of 191,465 persons. The company operated 59 powertrain, stamping and assembly plants in the United States in 2000. The job cuts were detailed in a report GM presented to Congress in hopes of securing government-backed, low-cost loans. GM said it expects to be "fully competitive" with Toyota on wage costs for "both current workers and new hires" by 2012 due to "additional changes to be negotiated" with its main union, productivity improvements, turnover rates and the planned cuts. A landmark labour agreement reached last year has lowered GM's total costs for new workers to $25 to 35 an hour compared with Toyota's average US labour cost of between $45 and 50 per hour, GM said. "The operating and capital restructuring elements will significantly improve the company's profitability and cash flow for the long term, and enable full repayment of any temporary federal assistance by 2012" in the event US auto sales remain at or above 12 million vehicles a year, GM said in the plan. — AFP
|
|
Tata Motors to shut Pune plant for 3 days
New Delhi, December 3 "Tata Motors' commercial vehicles plant in Pune will take a block closure from December 5 to December 7, 2008," a Tata Motors spokesman said. "This will call for appropriate action from Tata Motors, from time to time, to match production with demand and avoid unnecessary build-up of inventory in the company or with the company's dealers," he added. He further said unavailability of finance, coupled with high interest rates, was forcing customers to postpone purchases across the industry. Earlier, the company had shut the plant for six days from November 21 to 26. However, the spokesperson said that the employees would be paid during "such limited period" closures. Last month, the company had shut down its Jamshedpur unit — the mother plant for its heavy commercial vehicles — twice, first from November 6 to 8 and then for five days from November 25 to 29. The company had also closed down its CV plant in Lucknow for six days from November 10-15, due to slump in demand. TELCON, too, takes
3-day break
Meanwhile, Telco Construct Equipment Company Limited (TELCON), a 60:40 joint venture of Tata Motors with Hitachi, has announced a three-day shutdown at its Jamshedpur unit from tomorrow in view of a slump in demand.
— PTI |
|
Vodafone’s plea against I-T Dept dismissed
Mumbai, December 3 The division Bench of Justices S Radhakrishnan and Anand Nirgude, however, continued the earlier stay on the I-T Department's show-cause notice for further eight weeks to enable Vodafone file an appeal. Vodafone's representative said that the company would be filing an appeal in the Supreme Court very soon. Vodafone Holdings International, a Netherland-based company, picked up the stake of Hutchisson in Hutchisson-Essar to form the new entity Vodafone-Essar in a $11.2 billion deal in 2006. I-T authorities issued a notice to Vodafone Essar last year for capital gains tax to the tune of around $ 2 billion. Though seller of assets has to pay this tax, I-T expected Vodafone to deduct the tax before making payment to Hutch. Vodafone's lawyer Iqbal Chhagla had argued that Vodafone is a Dutch company, Hutchisson is incorporated in Cayman Islands and Income Tax Act does not apply in such a situation. Secondly, he had argued, a share-purchase did not amount to tranfer of capital assets which could be taxed. The I-T Department held Vodafone liable because it expected the company to deduct capital gains tax while making payment to Hutchisson. — PTI
|
|
OilMin official summoned in RIL-RNRL case
Mumbai, December 3 Petroleum ministry under-secretary S.M. Sundaram will have to appear in the court on December 11, RNRL sources said. RNRL had prayed before the division Bench of Justices J.N. Patel and K.K. Tated for summoning Sundaram for cross examination, said P.V. Rao, head, legal department of RNRL. RNRL has also sought certain documents from the petroleum ministry, which has a role in determining the government's policy on fixation of price of gas produced by private companies. The RIL-RNRL dispute pertains to pricing of gas, among other things, that RIL was to supply to the other for its gas-based power project. On pricing, RIL has been maintaining that it is subject to government's approval. At the last hearing, Sundaram had filed an affidavit saying that price of gas excavated by RIL from Krishna Godavari basin will have to be approved by the central government, though the transaction is between RIL and RNRL. RNRL is opposed to this, saying that the government is only concerned with the price of gas that is government's share as per Production Sharing Contract between government and RIL. While the government-approved price of gas for KG basin is $4.20 per million British Thermal Units, RNRL is seeking the gas at $2.34 mBTU. — PTI
|
|
MTNL to start 3G services on December 11
New Delhi, December 3 According to reports, MTNL could become the first telecom operator to offer 3G services in the country, when it starts its services on December 11. The rollout from MTNL would come even as the government is still to work out the modalities for the auction of the 3G spectrum for the private players. The process, which was initially to be completed by the end of the year has now been pushed forward to be completed by February 2009. However, it is the state-run MTNL and BSNL, who have an upper hand with they having been exempted from the auction process, which anyway has been mired in various controversies. The country has been waiting for long for the 3G services, which would help increase the speed of data transfer through the phones. Earlier, it seemed that the 3G services could hit the huge Indian market by the end of the year but there has been one controversy after another which has been hitting the government policy once it was announced earlier this year. The government, incidentally, is still not clear as to how many players it would allow per circle. While initially the plan was to allow 10 players, which was brough down to five players per circle. However, the latest reports emerging from the DoT says that the number could further come down to three players per circle which could majorly affect the start-up players, who have been looking to finding a footing in comparision to the established players like Bharti, Voddafone, Reliance and Tata Telecommunications etc. There has also been a controversy over allowing of foreign players also and whether the costing of auction as kept by the government would be suitable for them. Experts have been of the view that inhibitive starting up costs for the foreign telecos and the ceiling on the spectrum space available could actually keep them away. DoT has put the ceiling on 5 MHz for which a company can bid and the department itself agrees that a minimum of 10 MHz space would be needed for providing basic services in the 3G segment. Although the DoT had earlier earmarked 60 MHz spectrum for 3G mobile services to accommodate 10-12 service providers, but now reports suggested that a maximum of seven operators are likely to put in their bids. These could include two international players. |
|
3 US automakers seek $34-b aid
Washington, December 3 Faced with worsening financial turmoil and falling sales, the auto majors' business has taken a severe beating and for the past few weeks, who have asked for Federal government assistance. According to the bailout proposals submitted to the US Congress on Tuesday which includes future strategies to make a turnaround, the automakers have sought financial assistance to the tune of $34 billion. General Motors has requested for a loan of $12 billion stating that it might need another $6 billion, Ford has asked for $9 billion whereas one of the worst hit, Chrysler is looking for aid to the tune of $7 billion.
— PTI |
|
|
SBoP bonanza for SMEs
Patiala, December 3 Speaking on the occasion, SBoP managing director A.C.Varma said under this scheme, fresh loans for small and medium enterprises (SMEs) would be sanctioned at concessional rates. The bank will also give across the board concession of 0.50 per cent in interest rates to all customers who avail of the loan facility during this period. There will be lucky draws for the customers who avail loans during the period commencing from December 1 till December 31. Fifty lucky draw winners will be entitled for an additional concession of 2 per cent in interest rates up to March 31, 2010. The bank has set a target of Rs 1,000-crore advances during the campaign. |
|
M&A norms for insurance sector by fiscal-end
New Delhi, December 3 "Given what is happening in the market, it is an opportune time for mergers and acquisitions," IRDA chairman J Hari Narayan said at a function organised by Ficci here. Appropriate guidelines for M&A in the insurance sector was being worked out, he said, adding, "the exposure draft (draft guidelines) would be ready by March 2009". As of now, there are no specific guidelines for M&A activity in the insurance sector in the country. There are 21 life insurance companies and 20 non-life insurance companies operating in the country righ now. Asked about changes in the solvency margin for the insurance sector, the regulator said, it might be imprudent to relax solvency norms in the current situation.
— PTI |
|
Himachal chief secretary meets industrialists
Solan, December 3 She was interacting with industrialists in an interactive session organised by CII at Baddi today. Accompanied by officials from various departments, she assured the industry that issues like improvement in the infrastructure, especially roads, were being followed up with the neighbouring states. She assured the investors that while majority of the work on the Parwanoo-Barotiwala road had been completed, the last stretch of 10 km would be repaired after the winters. |
|
|
New Delhi, December 3
|
Mexican steelmaker to cut 12,000 jobs Rupee stronger Tata Tele in J&K Allahabad Bank branch Metro Cash & Carry store Force Motors to sell stake
|
|||||
|
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Letters | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
