Mumbai, January 11
Growing for the second straight month, exports touched $14.6 billion in December - highest in the past 15 months - helped by an uptick in demand for merchandise in the western markets.

The exports grew by 9.4 per cent to $4.6 billion (around Rs 66,400 crore) in December over the previous month on the back of strong growth in pharma, engineering and auto components sectors, Commerce and Industry Minister Anand Sharma said today.

“We have registered exports of $14.6 billion in December, which is a growth of 9.4 per cent over November.

Sectors that have contributed to the growth are pharma, engineering, automotive components and chemicals,” Sharma told reporters at Bancon conference here.

Exports in November 2009 had increased to $13.19 billion from $11.16 billion a year ago marking a trend reversal of decline that had set in since October 2008 due to widespread recession in key global markets.

Although the country's exports have moved to a positive terrain in the past two months, the economy is yet to recover from the losses resulted from 13 months of continuous fall in exports, Sharma said, adding that export-growth was expected to maintain momentum moving ahead.

However, the government cannot be complacent upon the positive numbers as this could be on account of base-effect, Sharma said. "We have to see the overall scenario," he said.

On rising food prices, Sharma said zooming food price-inflation remains as a major concern to the government and in some cases there had been speculative build ups.

The minister, however, ruled out importing wheat and rice in the immediate future.

However, various measures taken by the policy makers are expected to yield results in the foreseeable future, he said. Attributing the current surge in food inflation partly to high sugar prices, the minister said the government has taken a number of steps to ease the inflationary situation.

Also, given the ‘good prospects of rabi crops’, the government is hopeful is that food prices will come down in the near future, Sharma said.

New Delhi, January 11
The government is learnt to have decided to allow only three private players to offer 3G mobile services for which the spectrum would be auctioned next month and the successful bidders would be asked to pay 100 per cent of the bidding amount in March this year.

"In the case of 3G auction, the government has decided to assign by auction up to 3 blocks of 5x2 Mhz of paired in the 2.1 Ghz band in each of the 22 circles," said the draft notice inviting application (NIA). The NIA is the legal document containing all relevant information for the bidders.

The said amount of spectrum will be in addition to the one 2x5 Mhz block already allocated to BSNL and MTNL.

In view of spectrum being vacated by the defence in tranches, the successful bidders would be alloted the air waves simultaneously in September to start 3G services.

Winning bidders will deposit 25 per cent of the bid amount within five calender days from the date of auction and remaining (75 per cent) within 15 calender days, according to the draft NIA. The auction is expected to he held on February 12. The NIA is believed to have stipulated September 2, 2010 as the date for commercial launch.

Department of Telecom official were not available for comments on the timing of the NIA to be made public so that applications can be invited formally from the prospective bidders. But sources said it would be issued this week.

Telecom Minister A Raja had earlier said four private players will be allowed to offer 3G services. But lack of immediate availability of radio waves from defence made DoT go for 3 players. The draft said the last date of inviting applications is January 25. Pre-qualification of the bidders will be held on February 5 and the mock auction to start on February 9 and 10.

3G spectrum is also available for Rajasthan, Assam and North East which was not earlier on the list of auction due to unavailability of the radio waves, according to the draft. — PTI

New Delhi, January 11
Vintage cars, some of which are more than a 100 years old, were a major source of attraction at Auto Expo that concluded here today.

The Heritage Motoring Club of India (HMCI) was behind the initiative. Some of these beauties were almost a century old but had been so preserved and restored by their owners that they hold their own against their modern day cousins.

The main purpose behind this is to stimulate public interest and restoration and collection of vintage classic automobiles, officials of the club said. Curiosity over how auto engineering has evolved over a century attracted several motor car enthusiasts to the HMCI stall. Visitors came to see yesteryear beauties such as Buick Series 90L, Jaguar XK120, Mercedes 180 Pontoon and Mustang 1966.

Visitors were able to see some of the old beauties that included a Fiat 1,500 cc Phaelon (1920), Chevrolet Master (1934), Lagonda M45 (1934), Dodge Convertible (1939), Ford GPA Amphibian (1942), Bentley Saloon (1947), Jaguar VII Saloon (1952), Chevrolet BelAir (1957), Mercedes 230 (1967) and Triumph Spitfire (1970).

The expo reflected the growing importance of India in the automobile world and saw as many as 10 global launches. The Auto Expo is now being compared to the show at Detroit that got underway there today. 

Mumbai, January 11
Reliance Industries Limited (RIL) today sold shares to mop up $764 million, the third sale in four months that has created a warchest of over $2 billion for its bid to acquire the bankrupt petrochemical firm LyondellBasell.

In a block deal today, RIL sold as many as 3.3 crore treasury stocks at Rs 1,050 a piece, a discount of nearly five per cent to Friday's closing, and raised Rs 3,465 crore ($764 million).

This followed the 2.59-crore treasury stocks it sold last Monday fetching Rs 2,675 crore. Last September too, it had sold 1.5 crore shares raising Rs 3,188 crore.

These three sales have resulted in the Mukesh Ambani-led company raising over Rs 9,300 crore ($2.5 billion) in cash.

RIL, last week, had raised its bid for LyondellBasell to $13.5 billion from the initial $12 billion offered in November. Credit rating agency Moody's said following today's sale, the company had cash of around $4.5 billion and treasury shares worth about $6.5 billion.

"The company is effectively building up a warchest to fund the expansion opportunities. Moody's thus expects RIL to progressively use its increased financial flexibility for acquisitions, rather than use the proceeds of the share sale to pay down debt," Moody's lead analyst Ivan Palacios said.

The rating agency also did not see any immediate impact on the company's ratings and stable outlook.

RIL created treasury stocks after it merged Reliance Petroleum with itself in 2002. With today's sale, the Petroleum Trust holds about 12 crore treasury shares worth over Rs 13,000 crore at the current market price. Treasury stock are shares of a company which are not issued to the public and are kept in the companies treasury to be used to create extra cash when needed.

Experts believe RIL might be ready to cough up more for a deal with the Netherlands-based company, which could create a global energy and chemicals giant, with annual revenues estimated at nearly $ 80 billion.

Under the revised offer, RIL offered to buy about $2.2 billion in new stock and support a separate $2.8 billion rights offering by Lyondell to take the company out of bankruptcy. Most of the remaining payment would be in cash.

The Rotterdam-headquartered group, world's 3rd largest independent chemical company, would give RIL petrochemical plants, two oil refineries and access to the US fuel market. — PTI

New Delhi, January 11
A battle has erupted over rising prices, particularly sugar. The UPA today blamed the Mayawati government for high retail prices of the sweetner. However, Agriculture Minister Sharad Pawar could not “predict” when prices would finally be controlled.

“If the states cooperate then I am sure sugar prices can be tamed. I am not an astrologer who can predict when things will fall in place,” Pawar said, raising heckles of the BJP, which demanded to know from the Prime Minister, steps taken to “contain and bring down” the skyrocketing prices of essential commodities.

Pawar remaining non-committal on rising prices and blaming states for the current mess is not expected to be taken kindly by the UPA constituents, particularly the Congress that recently admonished him indirectly for issuing irresponsible statements on price rise. Under attack on making “irresponsible” statements on prices from the Congress, the Agriculture Minister is also expected to face flak at the Cabinet Committee on Prices, scheduled tomorrow.

Interestingly while Pawar claimed the UP government was not cooperating with the Centre in controlling sugar prices, earlier the state government had blamed Pawar for rise in sugar prices, saying sugar factories had paid for importing sugar but imports had not reached yet.

The UP government had imposed a ban on processing of imported raw sugar since a farmers’ protest over cane prices in November.

Pawar said imported raw sugar was lying at Kandla port for more than two months as the state was not allowing millers to process. “When there is insufficient availability in the country, in such situation, if they would have processed, per month additional 2.5 lakh tonne would have become available and this would have brought down prices,” he said.

Selling at a price ranging above Rs 45 per kg in retail markets, more than double from the level in January 2009, sugar is going to assume the centre stage at the CCP.

Meanwhile, Pawar said the Centre might extend the white sugar import window up to December to help increase availability and contain prices of the sweetener. His ministry is also considering relaxing import conditions to allow millers of Uttar Pradesh to refine imported raw sugar in other states as UP has banned its transportation and processing. Pawar said he had already written to UP government for lifting the ban on raw sugar processing.

Price rise, particularly of sugar, is proving to be a bitter pill for the UPA government and in the past 20 days the Agriculture Ministry have held at least two rounds of meeting with importers to remove hurdles in imports, if any. 

Bangalore, January 11
Karnataka Chief Minister BS Yeddyurappa today set a three-month deadline to his officials to give all clearances to the proposed mega steel plant being planned by ArcelorMittal in Bagalkot with an investment of Rs 30,000 crore.

Speaking to reporters here, Yeddyurappa said he discussed the project details with Chief Secretary SV Ranganath and asked him to ensure that all the required clearances are granted within three months to the world’s largest steel company.

The steel giant’s chief Lakshmi N Mittal has himself appreciated the speed with which the state acted on approving the project when the two met in New Delhi last week, said Yeddyurappa.

“There are a lot of assurances from Karnataka, and there is also a clear commitment from them. We are very impressed with the kind of support and cooperation we are receiving from the state administration,” Mittal said after meeting Yeddyurappa.

ArcelorMittal had signed MoUs with Orissa and Jharkhand as early as 2005 for setting up identical 12mtpa plants in the two states involving Rs one lakh crore, but the projects are yet to take off due to land acquisition problems, among others.

“Really not satisfied” was how Mittal had reacted when asked about the progress of the Jharkhand and Orissa projects.

Around 4,000 acre would be allotted by the Karnataka Industrial Area Development Corporation for the Mittal project which also includes a 750 MW power plant.

Karnataka cleared the Mittal proposal on January 5, said Yeddyurappa, adding, the 6mtpa plant will create a direct employment potential for 10,000 persons.

Besides the ArcelorMittal project, the state has also approved an investment proposal from the South Korean steel major Posco to setup plant in the state, whose projects in Orissa is also yet to take off since signing the MoU in 2004. —PTI 

BRIEFLY

Airtel DTH ad misleading, says Tata Sky
New DelhI: DTH major Tata Sky has approached the Advertising Standards Council of India seeking action against its competitor Airtel Digital’s ad campaign, alleging that the advertisement was misleading. The campaign ‘Dil Titli by Bharti Airtel’s DTH arm and the ad claimed that the service provided superior picture quality because of MPEG4 and DVBS2 technologies .— PTI

Navi Mumbai airport project
Lavasa (Maharashtra): Tenders for the proposed Navi Mumbai airport are likely to be floated in the next six months and the project is “very much on track”, Civil Aviation Minister Praful Patel said on Monday. — PTI

Tax holiday on gas
New Delhi: ONGC has asked for restoration of seven-year income tax holiday on production of natural gas, and inclusion of the environment-friendly fuel in the proposed GST regime. ONGC said the Income Tax Act allowed a seven-year exemption from payment of income tax to an undertaking engaged in production of mineral oil - crude as well as gas. — PTI