New Delhi, January 8
The government today removed restriction on imports of hot-rolled steel, which is mainly used in the automobile and consumer durable industries, giving a big relief to these sectors from rising raw material prices.

A notification to this effect has been issued by the Directorate General of Foreign Trade.

The government had put the mother steel product in the restricted category in October 2008, which meant that the users required an import licence from the government.

Experts said the government was allowing free imports as the domestic demand was picking up and steel prices had gone up by 10-14 per cent in the last 45 days.

During April-December 2008-09, the imports of this product were worth $2.33 billion. Steel demand has seen a sharp rise from different manufacturing industries, particularly from the automobile and consumer durables sector.

The requirements of automobile industries have gone up as the sector has witnessed an impressive 68 per cent annualised growth in sales in December 2009.

The steel industry is not perturbed over the development. “It will not impact steel prices,” Ispat Industries managing director Vinod Mittal stated.

“Even when imports of HR coil were in restricted category, the imports did not fall...and now also we don't expect any change," JSW Steel joint managing director Seshagiri Rao said.

After falling by over 60 per cent to about $400 a tonne amid demand slump last year, globally steel prices are now hovering at about $ 500 a tonne.

Domestic prices had too crashed to about Rs 20,000 a tonne level and are now hovering around Rs 30,000 tonne mark. — PTI

New Delhi, January 8
Prime Minister Manmohan Singh today expressed optimism that India would clock 9-10 per cent growth in a couple of years, reflecting the strong economic revival after slowing down due to global financial turmoil.

“We are equally optimistic of returning to sustained growth of 9-10 per cent in a couple of years,” the Prime Minister said while inaugurating the Pravasi Bharatiya Divas, a gathering of Indian diaspora, here.

After registering 9 per cent growth in three straight fiscals starting from 2005-06, the economic expansion declined to 6.7 per cent in the last fiscal due to the impact of severe global financial crisis. However, signs of revival started showing after the stilums given by the government to spur the economy.

Echoing the Prime Minister, Finance Minister Pranab Mukherjee later said growth may touch 9-10 per cent in the years to come, with the economy now looking up as stimulus given by the government had started paying dividends.

He exuded confidence that the economy would clock a growth of 7.75 per cent this fiscal.

Economy grew a surprising 7.9 per cent for the second quarter of the fiscal, giving credence that economic revival is on a strong wicket. Besides, industrial production grew 10.3 per cent in October and exports reversed a 13-month slide to post over 18 per cent growth in November. — PTI

New Delhi, January 8
A day after billionaire LN Mittal's stinging remark that India was not prepared for mega investments, senior Cabinet minister Kamal Nath today said the criticism was valid, but only in relation to mining sector.

Taken aback by the attack, the Orissa government promised early clearances to mega steel projects, including Mittal's.

The developments assume importance in the backdrop of Mittal voicing his frustration at his Rs one lakh crore projects in Orissa and Jharkhand not taking off. The billionaire industrialist yesterday said India was not prepared for mega projects.

"I think there is a force in his point where mining is concerned. He is talking about the various approvals which are required by the mining sector. So there is a valid point he made which the government has to look at," Transport Minister Kamal Nath said here.

Nath was Commerce and Industry Minister when Mittal first announced his intention to set up greenfield plants in India in 2005. In the meanwhile, Orissa Finance Minister PC Ghadai said: “There will be opposition for political purposes. In a democracy it happens. But the government is making all efforts to give land. Be it Posco or ArcelorMittal, discussions are on.” — PTI

Chandigarh, January 8
The Income Tax Department has issued draft assessment orders to two multinational companies - Vodafone Essar and Pepsi Food Limited - for payment of tax (assessment year 2006-07) on their incomes amounting to a whopping Rs 1,124 crore.

The draft assessment orders were issued after the I-T officials disapproved deductions claimed by the companies. Sources said Vodafone Essar had shown its income for 2006-07 as nil after seeking deductions to the tune of Rs 393 crores under Section 80 IA.

Sources said the company had also not deducted TDS (tax deduction at source) on access charges. This amount reportedly worked out to be Rs 320 crore for 2006-07.

According to officials, discrepancies to the tune of Rs 115 crore had also been revealed on transfer of rights shares by Vodafone Essar. In addition, scrutiny of the company’s books had shown diversion of interest bearing funds of Rs 48 crore to group concerns, including Aircel and Hutchison Essar South Ltd, for the same period.

Some other discrepancies have also been revealed and after taking them into account Vodafone’s income for 2006-07 was calculated to Rs 919 crore as against nil shown by them. Similarly, in case of Pepsi Food Ltd, the authorities have disallowed deductions of Rs 33.6 crore claimed by the company on account of expenses incurred on advertisement for the global rights on cricket tournaments sponsored by Pepsi Cola International. The deductions were rejected on the plea that Pepsi Cola had the advertising rights only for 2003-04 and 2004-05 and not for 2006-07 as claimed.

According to sources, as against returns filed by Pepsi Food Ltd on income of of Rs 16 crore, the I-T officials have assessed their income to be Rs 205 crore for 2006-07.

Though the corporate office of both Vodafone Essar and Pepsi are not in the region, their tax returns are being filed here. The draft assessment orders were issued by Additional Commissioner Income tax (Range I) Rajeshwar Yadav. PK Chopra, Chief Income tax Commissioner (North West region), said while the department had issued draft assessment order to Pepsi and Vodafone, they could file their objections before the Dispute Resolution Panel.

New Delhi, January 8
Realty and infrastructure major Ansal API is all set to launch an industrial park in Ludhiana. It would be Punjab’s first green international business park.

The industrial hub, christened as Hampton Court Business Park, will house only environment-friendly industrial units from sectors such as IT, apparel, sports goods, auto parts and electrical goods.

The park, which will come up in a 45 acre area, will have over two million sq ft built up area and will be wi-fi enabled complex. It will also have state-of-the-art integrated complex management system, facility management system and a business centre.

According to senior officials of the company, individual units will have the choice of acquiring plots of different sizes while using the common facilities and services on a sharing basis. The company will develop the facilities and provide common services. The initial investment in the project is estimated to be at the cost of Rs 250-300 crore.

Ansal API’s decision to launch the business park in Ludhiana is aimed at tapping into the unmet need of the city’s new generation entrepreneurs to upgrade their manufacturing facilities to a sophisticated, international business environment. This would not only facilitate optimum quality production but also open more business avenues in the global market.

According to Deepak Sachdeva, COO, Ansal API, the Hampton Court Business park will have world=class infrastructure facilities, including warehouse facility, multi-purpose exhibition halls, labs with CAD/CAM facilities, training centres and a convention centre.

Jaipur, January 8
Reliance Life Insurance has launched 17 new unit-linked plans to cater to individuals of all age groups.

“These new products are in line with our strategy to enhance our product portfolio and target customers who are conversant with the capital market and are looking at better alternatives amongst market linked products,” Reliance Life Insurance president Malay Ghosh said here yesterday. — PTI

BRIEFLY

Rupee down 8 paise
Mumbai: Snapping its four-day rally, the rupee on Friday fell from its 15-month high and closed eight paise down at 45.75/76 against the US currency following weak equities amid dollar short coverings after recent heavy sell-off. — PTI

RIL raises bid for Lyondell
New Delhi: RIL has raised its offer for LyondellBasell Industries to $13.5 billion, but may have to sweeten it further as the board of the bankrupt Netherlands-based chemicals maker appeared unlikely to accept the improved offer. RIL raised its valuation of the world's third-largest chemicals maker to about $ 13.5 billion from $12 billion initially put forward in November, sources said. — PTI

Kodak plans 100 stores
Mumbai: Kodak India plans to open 100 Kodak Express stores in the country over the next two years, with an estimated investment of Rs 15 crore, a company official said. "We plan to open 100 Kodak Express stores by 2012 with an investment of Rs 15 lakh per store. Our main focus will be major metros and tier II cities," Kodak India's vice-president (Marketing) PN Raghuvir said here. — PTI