The Tribune, Chandigarh, India

	Ambani Gas Row Govt takes U-turn Says not against family MoU New Delhi, September 1 The government today informed Supreme Court that it was not for declaring the Ambani family settlement "null and void" as prayed earlier and said its policies on gas pricing were without prejudice to power utility NTPC's case against RIL. "It (government) is in no way concerned with the private dispute between (Mukesh-led) RIL and (Anil group firm) RNRL or between the Ambani brothers, but is only concerned with its rights as owner and regulator of natural gas," the Centre said in an application. The interlocutory application, seeking amendment to prayers in the SLP pertaining to Ambani gas dispute filed on July 18, also takes up the cause of NTPC, which is fighting RIL for gas at a committed price of $2.34 per mmBtu. "The rights and obligations between RIL and NTPC cannot be regarded as similar in status to the private arrangement between RIL and RNRL, because of NTPC's status as a public utility and the process involved - i.e international competitive bidding," it said, clarifying that any decision on gas pricing was without prejudice to the power PSU's case. In its July 18 petition, the government had prayed that "(the MoU) should be declared null and void," as it would mean that all gas from the KG basin would be owned and utilised by RIL and RNRL. Asserting its ownership over gas from KG-D6 fields, the government SLP had hit at the Mukesh and Anil Ambani groups for "surreptitiously" appropriating national resources, treating it as personal and family property. "It is not the intention of the government to enter into the arena of private arrangements entered into between parties or question the validity and legality of MoU, lock, stock and barrel," the government said today, while making it clear that it was not seeking any relief "to set at naught" any private family arrangement. The family agreement provided for dividing gas from RIL's KG-D6 fields between RIL and RNRL. The application was filed by the government in accordance with the decision taken by a group of ministers, headed by Finance Minister Pranab Mukherjee, in the face of bitter public battle on gas issue wherein Anil Ambani group is seeking fuel from RIL at the same price as one sought by NTPC. "It has been the unequivocal stand of the government that the approval of the price of sale of gas at $4.2 per mmBtu in respect of (RIL's) D6 block was without prejudice to the rights of NTPC in the pending suit filed by it against RIL before the Bombay High Court," the government said today. The application comes within days of an ad campaign launched by the Anil Ambani group alleging that the government approved price of $4.2 per mmBtu would cost NTPC about Rs 30,000 crore. The government application also sought setting aside of the Bombay High Court decision on RIL-RNRL matter that relates to the interpretation of its gas utilisation policy and provisions of the Production Sharing Contract. — PTI
	Plan panel for free pricing of oil, gas Tribune News Service New Delhi, September 1 The Planning Commission today recommended that prices of petrol, diesel, gas and coal should be freed or linked to international market, a move if accepted would make energy costlier. "Bring pricing of oil, gas and coal to trade parity or competitive marketing basis," the Commission said in a document on the Integrated Energy Policy (IEP) which was placed before the meeting of the full Planning Commission chaired by Prime Minister Manmohan Singh. Noting that the progress on various recommendations of the IEP, approved by Cabinet in December 2008, has been slow, the Commission said, prices of various petroleum goods and coal are still administered. Besides suggesting linking of petrol and diesel prices with international markets, the Commission recommended raising of gas prices by public sector companies. "Natural gas prices of PSUs (are) very low and need revision," it said in a presentation before the meeting which besides Singh and other Commission members was attended by about a dozen ministers, including Finance Minister Pranab Mukherjee, Petroleum Minister Murli Deora and Power Minister Sushilkumar Shinde. Oil marketing companies are suffering losses as the government has not raised the prices of domestic petrol and diesel in line with increase in crude prices in the global market where the costs have shot up to $70-72 a barrel from $34 in December 2008.
	Govt to import sugar Farmers to get cheaper loans Tribune News Service New Delhi, September 1 Ahead of festival season, there is some bad news on the sugar front. Sugar prices are already touching record high and are expected to rise further. Agriculture Minister Sharad Pawar today said the new sugar season would begin with much lower stocks as the production would be hit by lower sugar recovery from cane after failure of monsoons. Failed monsoon and lower recovery means India will have to extend its sugar- buying spree in international markets. According to estimates, one of the world’s biggest sugar producers and the largest consumer may now have to depend on imports to meet close to one-third of its demand to counter low supply and rising prices. While Pawar said India would be starting the next sugar season from October 1 with a much smaller opening balance in comparison with the previous year, he did not give exact figures. Adding that two to three good sugar seasons are followed by one to two years of less production, he told a conference: “As per initial estimates of sugarcane availability during 2009-10 sugar season, it is expected that the country would require to supplement its domestic availability of sugar with imports”. The annual domestic requirement of India is around 22.5-23 million tonnes and sugar production is expected to drop to 15 million tonnes in 2009-10 from 26 million tonnes a year ago. While 2006-07 and 2007-08 were surplus for India and the country exported six million tonnes of sugar, the production during 2008-09 has not been adequate even to meet the domestic demand of the country. Deficit monsoon and lesser stocks from this season have already set prices spiralling. Retail sugar prices are hovering around Rs 35 per kg and are likely to touch Rs 40 per kg, more than double from a year earlier, in the festival season after fresh imported consignments land here in the next season. Experts, however, say these measures are unlikely to have any significant impact given the expected low production and high global prices. They also call for better incentives for cane farmers who have been shifting to more lucrative crops like wheat and paddy. Sugar industry is also asking the government to lift controls on the sugar sector to correct the demand-supply mismatch. Meanwhile, in order to improve sugarcane crop, the government is thinking of giving concessional loans to sugar factories for passing them to sugarcane farmers at four per cent interest.
	Liquidity influx vital for Maytas, says IL&FS Suresh Dharur Tribune News Service Hyderabad, September 1 The crisis-ridden Maytas Infra, so far promoted by family members of former founder of Satyam Computers B Ramalinga Raju, is expected to achieve financial stability in about a year following change of guard. “After the Satyam scam, no incremental credit was given by the banks to Maytas in the last six months even though it was not involved in the scam as the government enquiry proves it. Infusion of liquidity is the most important thing now,” said Ravi Parthasarathy, chairman of Infrastructure Leasing and Financial Services Limited (IL&FS), the new owner of the beleaguered infrastructure company. IL&FS will pump in Rs 55 crore to revive the company. Efforts would be made to increase the liquidity position for the company, which has reported a loss of Rs 490 crore for the financial year 2008-09, and restore the credibility of stakeholders, Parthasarathy said to reporters here today after attending the board meeting of Maytas Infra, the first after the change of ownership. “Infrastructure will be the engine of growth for Maytas Infra. IL&FS would approach some interested international investors and raise more funds through qualified institutional placement route by the year end,” he said. “Our assessment is that Maytas Infra as a company has not done anything wrong. It suffered due to collateral damage for being in the vicinity of Satyam,” he said. With projects worth Rs 15,000 crore in execution, setting of power plants with a cumulative capacity of 6,000 MW and building three ports, IL&FS, which has been a majority stakeholder in Maytas, has the required the experience required to handle Maytas Infra and its projects. “We want to take Maytas Infra to the next level. Projects are not an issue. The biggest challenge is resource crunch,” Parthasarathy said. Under the impact of the Satyam scam, Maytas Infra lost several projects, including the Rs 12,132-crore Hyderabad Metro Rail project in July this year. The acquisition of the crisis-hit Maytas Infra will cost about Rs 330 crore for IL&FS.
	Exemption From Collateral Charges Small industries hail RBI’s directive Shivani Bhakoo Tribune News Service Ludhiana, September 1 The Federation of Associations of Small Industries of India (FASII) has welcomed RBI’s directive to the banks to exempt medium and small enterprises (MSEs) of collateral security charges on loan up to Rs 5 lakh. All banks were asked to issue instructions to their branches for strict adherence to the order. FASII members held a meeting with SIDBI officials on this issue in the national Capital recently. President of Punjab Chapter of FASII Badish K. Jindal told The Tribune that under the CGFT Act (loans without collateral up to Rs 1 crore) in the year 2007-08, the number of loans issued were 32,000, which increased to 53,000 in the year 2009-10 till now. The target is to further raise the number to around one lakh. Presently, the total loan amount to MSEs is Rs 90,000 crore and is likely to increase to Rs 1,05,000 crore by year-end. “SIDBI has started an equity partnership scheme in which it will invest around 20 per cent of the project without any interest. For loan up to Rs 5 lakh as instructed by RBI, SIDBI will charge 1 per cent security fee annually, of which 5 per cent will be borne by the bank and rest 5 per cent by the owning unit,” said Jindal. After the RBI directive, the FASII has decided to start a program to help MSEs get the loan. The FASII aims to provide loan to one lakh MSEs this financial year 2009-10, added Jindal. The FASII requested SIDBI to provide data of all banks on quarterly basis to check loan irregularities. It also appealed the RBI through a letter to fix a minimum target of such loans so that it becomes mandatory for every bank to meet that number.
	Auto sales in top gear Tribune News Service New Delhi, September 1 The country’s car makers seem to be insulated against the global downturn. While both Maruti Suzuki India Limited (MSIL) and Hyundai Motor India Limited (HMIL), the country’s largest and second largest car manufacturers, have recorded unexpected increase in sales, even Hero Honda, the largest two-wheeler manufacturer, has reflected record sales. MSIL sold a total of 84,808 vehicles in August 2009, as against 59,908 units in the same period last year, up 41.6 per cent. This includes export of 14,847 units, the highest-ever monthly export in the company’s history. While its domestic sales in A2 segment (comprising Alto, Wagon R, Estilo, Swift, A-Star and Ritz) grew by 39.3 per cent, in the A3 segment (consisting of SX4 and DZiRE), the sales volume rose by 44.1 per cent. During the month, the company also crossed another milestone of 50,000 cumulative exports this fiscal, with A-star, which was introduced internationally in January last, being the main export driver, including to countries like Germany, UK, France and Netherlands. A few days back, the company introduced the Estilo with the improved K-series engine, which is expected to further boost its sales. Meanwhile, HMIL for the first time in many months saw domestic sales outpace the growth in the overseas market. As its cumulative sales grew at a healthy double digit growth rate of 10.8 per cent, domestic sales went up by 12.9 per cent and exports grew by 8.7 per cent. Its total sales for the month stood at 49,521 units against 44,710 units in August last year. The domestic sales accounted for 24,401 units as against 21,610 units in the same period last year while the overseas sales grew from 23,100 units last August to 25,120 units in this period. The country’s largest two-wheeler maker, Hero Honda Ltd, too has reported a 35.88 per cent jump in its sales at 4,15,137 units in August against 3,05,516 units in the same month last year.
	NHPC debut fails to cheer investors Mumbai, September 1 State-run hydro power generator NHPC today made a disappointing debut on the bourses and settled with just two per cent gain over its issue price on the Bombay Stock Exchange. The NHPC shares settled at Rs 36.70, just 70 paise or 1.94 per cent above its issue price of Rs 36 on the BSE. "The overall weakness in the market due to global cues cast a shadow on the listing of NHPC. Moreover, the price of the scrip is not under-valued so there was no rush of investors trying to enter at low levels," Bonanza Portfolio assistant VP Avinash Gupta said. The overall weakness in the broader market and the lack of investor interest led NHPC to lose ground and it plunged to an intra-day low of Rs 36.60. On the National Stock Exchange, the scrip settled with 2.08 per cent gain at Rs 36.75, after touching an intra-day high of Rs 42. — PTI
	PFRDA to launch savings scheme on Dec 1 New Delhi, September 1 Interim pension regulator Pension Fund Regulatory and Development Authority (PFRDA) will launch from December this year its savings scheme, which aims to give greater returns on the deposits, and can be withdrawn fully. “We have decided to launch the savings scheme from December 1 this year. Under this scheme, the customers would be able to withdraw their entire savings,” PFRDA chief D Swarup said. He added that returns on this scheme, known as Tier II account, “are expected to be higher due to our market-linked investment patterns”. — PTI