New Delhi, October 7
Reliance Industries (RIL) in its reply to RNRL’s petition seeking Supreme Court to direct RIL to supply gas as already ordered by the Bombay High Cort yesterday alleged that the RNRL falsely claimed that it won’t make a windfall profit of Rs 50,000 crore at the cost of the government through the contract.

While clarifying its position on the allegation of windfall profits that it will make, RIL has stated that as per the terms of the production-sharing contract (PSC), it would receive a significantly lower profit share as compared to the government.

RIL has already invested over Rs 13,200 crore in exploration of 45 blocks of which only two have resulted in commercial discoveries.

RIL has stated that instead RNRL would make a windfall profit of Rs 50,000 crore at the cost of the government through the contract. RNRL intends do to this as it had stated this in its GDR listing, which was filed in 2006. The listing had stated that RNRL will not supply gas to its affiliated power companies at the MoU price of $2.34 per mmBtu, instead it will be supplied at the prevailing market price which could be much higher than the government-approved cap price of $ 4.20 per mmBtu.

If RNRL and REL start selling gas to power plants at current market price, which is between $ 8-10 mmBtu (assuming current crude oil costs $ 60 per barrel), then the company will make an astronomical profit exceeding Rs 21,000 crore per year.

RIL said the commitment under the 2005 family MoU, to supply 28 million standard cubic metres per day to RNRL, was subject to government approval. As the gas supply envisaged under the MoU between the two companies was conditional, there is no binding obligation to supply gas as the terms remain to be negotiated. 

New Delhi, October 7
Facing a stiff opposition from the telecom companies, especially the private ones, the government today said it would take a considerate view of the telecom regulator TRAI's proposal to bill customers based on per-second usage instead of the prevailing pulse system.

Minister of State for Communications and IT Sachin Pilot today said, “we will take a considerate view on that”.

He was replying to a specific question on the TRAI proposal that the customers be charged for the actual usage instead of the prevalent practice of billing them for a minute even if they use less than that.

Telcos have already expressed their displeasure over the move, which is likely to further benefit the subscriber in one of the world’s fastest-growing telecom markets, which, incidentally, also remains one of the cheapest with the call per minute costing as low as 50 paise.

"It's up to TRAI to take a call on how we proceed. Broadly speaking, we are of the opinion that India is such a large market that there is sufficient competition and we must do everything to ensure that the customer gets the best possible service at the best possible price," the minister said.

Talking during an event in Geneva this week, TRAI chairman J S Sarma said "We may ask all the operators to consider per-second pulse as a mandatory tariff option along with their other tariff plans."

Sarma further said TRAI might soon come out with a consultation paper on the subject and invite suggestions on the new model.

However, the suggestion has not gone down with the telcos as it is likely to hit their revenues. Even though some of them already offer the scheme of per-second billing voluntarily, the telecom operators are of the view that the government should not interfere in the market competition.

The move has been triggered after Tata Docomo recently switched to a 'pay per second' tariff model in a bid to garner subscribers for its new GSM services. With several other new entrants in the GSM market also expected to launch services with competitive packages it is likely put pressure on existing players to follow suit.

However, some feel that such a practice would be bad for the country as a whole because it will create bankruptcy in the telecom sector.

They feel that TRAI must re-examine the proposal, as consumer interest in the long term is not always served by lower tariffs. 

New Delhi, October 7
Over 10 per cent rise of rupee against the US dollar has become a "big worry" for exporters at a time when they saw arrest in sharp decline in the country's exports amidst a hope of recovery.The dollar is trading at below Rs 47, weakening by over 10 per cent from Rs 52.17 in the first week of March 2009.

"The appreciating rupee will have negative effect on exporters, who are already facing lack of orders," Federation of Indian Export Organisations president A Sakthivel said.

He said weak dollar results in falling margins for exporters as their rupee realisations drop, which in turn affects their negotiating power with the global buyers.

"Appreciating rupee is a big worry ... we were getting help from strong dollar," chairman of Council for Leather Exports Habib Hussain said.

Though dollar has seen a sharp decline against major currencies of the world, bulk of India's trade is done through the US currency.Exports have been declining since October 2008 under the impact of recession in the world's major economies. However, the contraction in exports, which dipped by 30 per cent in March and April, reduced to 19.4 per cent in August this year. The government has announced several sops for exporters who contribute about 17 per cent to the country's gross domestic product. — PTI

Brussels, October 7
European Union officials raided the French unit of Ranbaxy Laboratories Ltd, India’s biggest drugmaker, as part of a widened probe of settlements between generic drugmakers and brand-name pharmaceutical companies."We had a visit yesterday and we’re cooperating with the European Commission," Anne Baille, managing director of Puteaux, France-based Ranbaxy Pharmacie Generiques said by telephone today.

The commission also conducted surprise visits in France at Sanofi-Aventis SA, Teva Pharmaceutical Industries and a Novartis AG unit, spokespeople for the firms said yesterday.

The commission, the EU’s anti-trust regulator, said the companies may have abused their dominant market positions or engaged in "restrictive business practices." The inspections mark the third time drugmakers’ offices have been visited since the EU started a probe of the pharmaceutical industry in January 2008.

The EU has focused on whether drugmakers misuse patents and lawsuit settlements to keep less-expensive generic medicines off the market.

The Brussels-based commission said in a report in July that companies use a variety of techniques to delay the introduction of generics "for as long as possible." The spokesman of Tokyo-based Daiichi Sankyo Co., Japan’s third-largest drugmaker having a controlling stake in Ranbaxy, wasn’t able to immediately comment. — Bloomberg 

Chandigarh, October 7
The new industrial policy, approved by the Punjab Cabinet yesterday, seems to have failed to cut ice with industry in the state. Plagued by a severe power shortage, inadequate infrastructure and adverse taxation regime, the industry feels that the policy has nothing to offer.

The majority view on the new industrial policy is that the interests of existing industry have not been kept in mind while announcing the policy. The slew of incentives offered are only meant for attracting fresh investment. Industrialists rued that nothing has been done to give a fillip to their growth or stem the migration of industry from Punjab to the neighbouring states of Himachal Pradesh, Jammu and Kashmir and Uttarakhand.

Talking to TNS here today, Amarjit Goyal, CMD of Modern Steels, Mandi Gobindgarh, said the new policy was basically a fine-tuning of the Industrial Policy, 2003. “The policy nowhere addresses the biggest problem being faced by the industry today - that of power shortage. Though the incentives are being offered to the IT and agro industry, but you have to protect your own industry,” he said.

RS Sachdeva, co-chairman of Punjab Committee of the PHD Chamber, said there was nothing to cheer about the policy as it offers little incentives. “A holistic approach for coordinated development of small, medium and large industries has been lacking. The only thing that it harps on is that the Industries Department will act as a facilitator for getting various clearances for new projects,” he said.

SC Ralhan, regional chairman of the Engineering Export Promotion Council said, “This policy reads like an election manifesto, promising only sops. What actually happens and when it happens remains to be seen”.

However, SP Oswal, chairman of Vardhman Group, felt that even if there was nothing to cheer about for the local industry, the policy is knowledge industry and worker-oriented. “Though the existing industry does not need stimulus, but incentives like power availability need to be addressed,” he said. 

Srinagar, October 7
J&K Chief Minister Omar Abdullah has sought the involvement of Kashmir business groups outside the country to invest in the restructuring of tourism and related state infrastructure.

“Time has come for all top Kashmiri entrepreneurs and companies to avail the opportunity of public-private partnership and invest liberally to rebuild tourism and other related infra structure in Kashmir,” he said, while interacting with world reputed Ashai Group here yesterday.

The Group has not only worked in Los Angles in USA and other parts of the United States but also taken up mega projects in Dubai and other developed countries.

The Group informed that it had earmarked $5 trillion for infrastructure development and if the Jammu and Kashmir Government created more congenial atmosphere for investment through public-private partnership avenues, maximum portion of these funds can be attracted to the state.

The CM said since the Group mostly comprised of Karshmir-origin executives, their personal involvement in the restructuring of tourism-oriented infrastructure was required so that the state, particularly the Kashmir Valley, is able to provide world-class tourist facilities.

The group informed that it was into talks with the Hilton-Marriot Group for the opening of their branches in the state. The presentation proposed the development of a 1,000-acres garden city, Drang area in Tangmarg, strawberry area of Gulmarg, Tourists Reception Centre in Srinagar, and Gulmarg base station. It advised the preparation of an integrated restructuring master plan that could be merged with the plan of a particular area.

BRIEFLY

RIL to issue bonus shares
MUMBAI: Mukesh Ambani group firm Reliance Industries on Wednesday said it would issue one bonus share for every share held in the company. RIL board of directors recommended issuance of bonus shares in the ratio of one equity share of Rs 10 each for each share held. The board has also declared a dividend of Rs 13 per fully paid-up equity share of Rs 10 of the company to the shareholders. — TNS

A goldsmith displays a gold nugget after creating it in his workshop in Karachi on Wednesday. Gold struck an all-time high on Wednesday for the second time in as many days as the dollar weakened further, taking copper and crude oil up. — Reuters

Reliance Life Insurance
NEW DELHI: Boosted by its AUM crossing the Rs 10,000-crore mark, Reliance Life Insurance, an Anil Ambani Group company, is aiming for a four-fold rise in assets under management in the next four years. “The AUM has crossed Rs 10,000 crore mark in Sept ’09,” Sam Ghosh CEO Reliance Capital, the holding company of Reliance Life Insurance, said. The private insurer is targeting an AUM of Rs 30,000 crore by 2012 and further to Rs 40,000 crore by 2013. — PTI

Rel Mobile’s BlackBerry Tour
NEW DELHI: Telecom major Reliance Mobile on Wednesday partnered Canadian firm Research In Motion (RIM) to launch BlackBerry Tour smartphone for its CDMA customers in the country. BlackBerry Tour, a 3G-enabled smartphone, will be available nationally from October 12 for Rs 27,990. The BlackBerry could be pre-booked from October 7 till October 31. Pre-bookers would get two months of free BlackBerry Internet Service. — PTI

BSNL’s 3G service
SANGRUR: State-owned telecom service provider BSNL has announced that it would soon launch its 3G service in Sangrur. Of the proposed 70 mobile phone towers in the district, six have already been installed while the remaining would be installed shortly. — TNS