SPECIAL COVERAGE
CHANDIGARH

LUDHIANA

DELHI



THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS
B U S I N E S S

Govt frees fertiliser pricing
New Delhi, February 18
The government today approved an increase in the price of the most widely used fertiliser - urea - from Rs 4,830 per MT to Rs 5,310 per MT and partially eased controls on other fertilisers, allowing manufacturers to fix their rates.

Rs 800 cr for aviation firm
ONGC, GAIL to pick stake in China pipeline
New Delhi, February 18
The government has decided to come to the aid of beleaguered National Aviation Co of India Ltd (NACIL) and its Air-India by deciding to infuse an equity of Rs 800 crore in two instalments to tide over its cash flow problem and finance fleet acquisition plans.

Food inflation inches up
New Delhi, February 18
Despite assurances from the government that food prices will soon start coming down, annual food inflation based on wholesale prices again rose to 17.97 per cent for the week ended February 6.



EARLIER STORIES

A woman holds an “HTC Legend” smartphone at the Mobile World Congress in Barcelona on Thursday.
A woman holds an “HTC Legend” smartphone at the Mobile World Congress in Barcelona on Thursday. 
— Reuters

Suzlon bags wind energy project from L&T
Mumbai, February 18
Wind turbine manufacturer Suzlon Energy today said it had received its first ever order from a subsidiary of Larsen and Toubro (L&T) to set up a 8.7-MW wind energy project in Tamil Nadu.

Punjab’s credit flow growth dips
Chandigarh, February 18
A negative growth in the credit flow in Punjab has been witnessed in one year with growth showing a decline of over 9 per cent. Though the year-on-year credit expansion in the state has shown an increase of 13.7 per cent, growth is down by 9.1 per cent between September, 2007-08 and September, 2008-09.

DefExpo
Twin-rotor blade chopper showcased
New Delhi, February 18
Sikorsky has developed twin-rotor blade chopper that will have the ability to fly much faster and higher than normal choppers. It will be able to touch heights of 25,000 feet. The chopper can travel at a top speed of 250 knots (450 kmph) and can be modified to have missiles on board. The project is named “X2 Technology” and several countries have shown interest.

S Tel offers new ISD pack
Shimla, February 18
S Tel has come out with a “Passport” pack which will enable its one lakh subscribers in the state to make calls to major international destinations at less rates.





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Govt frees fertiliser pricing
Vibha Sharma
Tribune News Service

New Delhi, February 18
The government today approved an increase in the price of the most widely used fertiliser - urea - from Rs 4,830 per MT to Rs 5,310 per MT and partially eased controls on other fertilisers, allowing manufacturers to fix their rates.

The decisions, a part of new nutrient-based subsidy (NBS) scheme, was approved by the Cabinet today and will be effective from April 1. The partial easing of control on prices of non-urea fertilisers is the first step by the government towards controlling its spiralling subsidy bill.

At present, the maximum retail price (MRP) of urea is Rs 483 a quintal, while DAP costs Rs 935 a quintal and MOP Rs 445.50 a quintal. Under the NBS, subsidy will be given to nutrients (nitrogen, phosphorus, potash and sulphur) contained in the fertiliser, doing away with the MRP.

Expectedly, farmers are crying foul over this free-float for non-urea fertilisers, saying that their input costs will increase and the only beneficiary will be private fertiliser companies.

The government, however, says the NBS regime will promote balanced fertilisation of the soil and consequently increase agriculture productivity through higher usage of secondary and micro-nutrients. It says that the NBS regime will depict actual demand of fertilisers in the country and promote realistic pricing of fertiliser products in the international market.

The “unshackling of fertiliser industry” is also expected to attract fresh investments in this sector, stated to be highly stressed.

Since farmers will require a certificate for nutrient content in the soil to avail the subsidy, BKU leader Balbir Singh Rajwal, says the move will only increase corruption in state agriculture departments.

In addition to the fixed subsidy on nutrients, there will be an additional per tonne subsidy for subsidised fertiliser carrying other secondary nutrients and micro nutrients in formulations approved under FCO, 1985. Provision of additional subsidy for fortified and supplemented fertiliser will encourage production and application of fertilisers carrying secondary and micro-nutrients, the Centre says.

The government will continue to fix the MRP of urea, which has the maximum tonnage consumed nitrogenous fertilisers in the country. The implementation and distribution of the fertiliser will continue to be monitored through the online web based “Fertiliser Monitoring System (FMS).

Since subsidy on subsidised nutrients and consequently subsidised fertilisers will remain fixed, retail prices of subsidised fertilisers at farm gate level will be decided by companies.

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Rs 800 cr for aviation firm
ONGC, GAIL to pick stake in China pipeline
Girja Shankar Kaura
Tribune News Service

New Delhi, February 18
The government has decided to come to the aid of beleaguered National Aviation Co of India Ltd (NACIL) and its Air-India by deciding to infuse an equity of Rs 800 crore in two instalments to tide over its cash flow problem and finance fleet acquisition plans.

The long-pending decision was taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA), presided over by Prime Minister Manmohan Singh, here today.

"The equity infusion had been approved by the group of ministers headed by Finance Minister Pranab Mukherjee. The release of funds will be calibrated to achieving the milestones laid down by the ministerial group," an official spokesperson said.

The company's present paid-up equity capital is Rs 145 crore, which has been found to be grossly insufficient for an aviation company of its size. The fresh equity will also preclude borrowing from the markets at a high cost, officials said.

The airline had posted a loss of Rs 7,200 crore in the last two fiscal years. The induction of fresh equity was approved only after it adopted a turnaround plan.

The carrier has also been asked to take certain steps, which include rationalising manpower and productivity-linked incentives, fully integration of the erstwhile Indian Airlines with Air-India and review of all agreements on technical and operational matters.

The other steps which NACIL has been asked to take are return of all leased aircraft at the earliest, re-deployment of staff to curb infructuous expenditure and closure of all overseas offices where Air-India does not operate.

The aircraft rationalisation plan calls for a reduction in the carrier's fleet size from 146 planes to 105 by March, 2011. Twentytwo aircraft are being removed from the fleet by way of sale, leasing out and return of leased aircraft.

In another decision the CCEA also permitted ONGC and GAIL to pick 12.5 per cent stake in a pipeline that China is building in Myanmar and allowed these to invest another $1billion in fields that will provide gas to be shipped to China through the pipeline.

It allowed ONGC Videsh Ltd to invest $167.84 million in taking 8.35 per cent stake in the pipeline.

GAIL will invest $83.88 million for taking 4.17 per cent stake in the pipeline being constructed by China National Petroleum Corp (CNPC) to transport gas found in block A-1 and A-3 off the Myanmar coast, an official spokesperson said.

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Food inflation inches up

New Delhi, February 18
Despite assurances from the government that food prices will soon start coming down, annual food inflation based on wholesale prices again rose to 17.97 per cent for the week ended February 6.

The annual rise in the index for food articles was 17.94 per cent for the week before, as per official data released by the Commerce and Industry Ministry today.

Prices of essential items continued to move up, with vegetables dearer by 19.56 per cent, potatoes by 38.02 per cent, pulses by 38.04 per cent and fruits by 10.39 per cent over the 52-week period.

The limited data on wholesale price index further showed a sharp rise in the index for primary articles by 16.23 per cent, while that for fuels was up 9.89 per cent.

The annual rate of inflation, based on the wholesale prices index, had risen to 8.56 per cent in January from 7.31 per cent in the previous month, primarily due to galloping food prices. — IANS

Inflation to ease by March-end: RBI

Patna: The Reserve Bank today said it would stick to its projection of inflation standing at 8.5 per cent by the end of the current fiscal, even as the rate of price rise has already breached the central bank's target.

"Monitoring inflation is a continuous process. We still stand by that inflation will be at 8.5 per cent, as projected, by March, 2010," RBI Governor D Subbarao told reporters while replying to a question on the rising inflation rates.

Subbarao's statement implies that inflation would now ease as it stood at 8.56 per cent in January.

He, however, said it was difficult to predict a precise road map now "but we expect that inflation will moderate by July, 2010." — PTI

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Suzlon bags wind energy project from L&T

Mumbai, February 18
Wind turbine manufacturer Suzlon Energy today said it had received its first ever order from a subsidiary of Larsen and Toubro (L&T) to set up a 8.7-MW wind energy project in Tamil Nadu.

The company has bagged an order from L&T Infrastructure Development Projects Ltd, a subsidiary of L&T, to operate and maintain a 8.7 MW wind energy project, Suzlon said in a filing to the Bombay Stock Exchange.

The project is likely to be completed by March 30, 2010, the filing added.

The company has not disclosed the financial details of the order.

“This order underlines Suzlon’s unique value proposition - offering expertise across the value chain from concept to commissioning of wind projects, helping clients like L&T achieve energy security and mitigate carbon emissions, ultimately creating sustainable business,” Suzlon Energy Ltd President-Business Development (India) IC Mangal said.

The power generated from this project would be wheeled for captive use at L&T facilities in Tamil Nadu under an energy wheeling agreement with Tamil Nadu Electricity Board.

“Our investment with Suzlon in wind energy is based not just on lower cost of power, but also the environmental aspects - conserving resources and helping mitigate climate risks,” L&T’s Developmental Projects Sector Executive Vice President K Venkatesh said.

Shares of Suzlon were trading at Rs 73.30 on the BSE, down 0.07 per cent from previous close. — PTI

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Punjab’s credit flow growth dips
Ruchika M. Khanna
Tribune News Service

Chandigarh, February 18
A negative growth in the credit flow in Punjab has been witnessed in one year with growth showing a decline of over 9 per cent. Though the year-on-year credit expansion in the state has shown an increase of 13.7 per cent, growth is down by 9.1 per cent between September, 2007-08 and September, 2008-09.

These facts emerged during the 110th State Level Bankers Committee meeting (SLBC) for Punjab held here today. It was revealed that as against a growth of 22.8 per cent between September 2007-08, growth has come down to 13.7 per cent between September 2008-09. The gross credit in the state increased from Rs 62,108 crore in 2007 to Rs 76,290 crore in September, 2008, whereas the total advances were just Rs 86,758 crore between September 2008-09.

The main reason for the negative growth in advances in the state has been poor credit offtake in the micro and small enterprises in Punjab. It is learnt that the credit offtake in this category witnessed a negative growth of 23.3 per cent. As compared to a growth of 44.2 per cent in during September, 2007-08, growth came down to just 20.9 per cent in September 2008-09.

Bankers, who had come here for review, deliberated that the main reason for negative growth in advances to MSMEs was that the recommendations, made by the RBI Working Group for micro and small enterprises sector, have not been implemented by the Punjab government. It is learnt that though these issues were discussed during the special meetings of SLBC on MSMEs, little had been done by the state government to boost MSMEs and rehabilitate viable sick units. The main issues which are pending with the state government include giving preferential treatment to MSMEs for providing uninterrupted power supply, subsidy on DG sets, etc.

The only good sign in credit expansion has been a 28.1 per cent growth in the agriculture advances between September 2008-09, as compared to a growth of 14.2 per cent in advances between September 2007-08.

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DefExpo
Twin-rotor blade chopper showcased
Tribune News Service

New Delhi, February 18
Sikorsky has developed twin-rotor blade chopper that will have the ability to fly much faster and higher than normal choppers. It will be able to touch heights of 25,000 feet. The chopper can travel at a top speed of 250 knots (450 kmph) and can be modified to have missiles on board. The project is named “X2 Technology” and several countries have shown interest.

Tulip equipment for Army

Tulip telecom, a Delhi-based company having a German partner, has said it had the capability to provide network connectivity to Army equipments and it would be similar as being used by NATO. Networking of all field equipment is one of the key tasks with the Indian Army that has floated a request for information for the $4 billion deal. It will provide picture of the surrounding battle field to the soldier on the ground. Any sort of equipment, be it of US or Russian origin, can be made to connect with each other seamlessly.

Maintenance cart for aircraft

Bangalore-based Maini Group has developed electrically operated “Feri - Rapid Maintenance Cart” & “Tow Truck - 8 Ton Tugger” that is suited for towing a range of combat aircraft and small to medium utility aircraft and helicopters. This was formally launched by John Brooks , President , Northrop Grumman International.

Expo concludes

The 6th international DefExpo 2010 concluded here on Thursday has been successful, said the Indian Defence Ministry. Over 1,26 lakh visitors included 85,000 business visitors. The four-day event was the largest ever Defence exposition in Asia. Over 650 companies from about 35 countries displayed weapon systems for Army and Navy, the ministry said.

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S Tel offers new ISD pack

Shimla, February 18
S Tel has come out with a “Passport” pack which will enable its one lakh subscribers in the state to make calls to major international destinations at less rates.

The Passport pack will be available from yesterday for Rs 24 making it the cheapest ISD value pack in the market.

The rate for call to Malaysia, Hongkong, Singapore, USA, Canada & UK and Thailand will be just 5 paise per second and for Bangladesh, Nepal , Pakistan, Kuwait, UAE, Yemen and Saudi Arabia 11 paise per second. — TNS

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BRIEFLY


Raj Rajaratnam, billionaire founder of the Galleon Group, a major hedge fund, leaves Manhattan federal court on Wednesday in New York. An October trial date in New York has been set for him, who is charged with the history's largest hedge fund insider trading case.
Raj Rajaratnam, billionaire founder of the Galleon Group, a major hedge fund, leaves Manhattan federal court on Wednesday in New York. An October trial date in New York has been set for him, who is charged with the history's largest hedge fund insider trading case. — AP

Bonus share by Castrol
MUMBAI:
Castrol India on Thursday said its net profit rose by 71.91 per cent to Rs 80.8 crore for the quarter ended December 31, 2009. The company also announced that it will issue bonus shares to its shareholders. Total income for the December quarter increased to Rs 615.5 crore from Rs 547 crore in the same period last year, Castrol India said in a filing to the Bombay Stock Exchange. — PTI

Reliance Webstore
NEW DELHI:
Reliance Anil Dhirubhai Ambani Group has diversified into direct selling of telephony products and services under its retail arm Reliance Webstore and is eyeing a revenue of Rs 110 crore in the first year. Currently RADAG sells telecom products and services under its retail arm Reliance Webstore Ltd, which has 234 Reliance World Stores. — PTI

Jet direct flight to SA
JOHANNESBURG:
Jet Airways is to introduce daily flight to South Africa from April 15, expanding its overseas network from Europe, US and the Gulf to the African continent. India’s growing economy and its large market present a huge opportunity for South Africa, said Nikos Kardassis, CEO of Jet Airways. The Jet Airways will be the second Indian airliner to operate to the region after Air India. — PTI

Newby Teas
NEW DELHI:
Newby Teas on Thursday announced its foray into the estimated Rs 7,500-crore Indian branded tea market with plans to introduce about 150 varieties within the next three years. The Indian arm of the company, Newby India has already invested about Rs 25 crore in setting up a research and packaging facility in Kolkata with a capacity of about 360 tonnes per day. It will be investing about Rs 20 crore in the next fiscal to ramp up its overall operations in India. — PTI

Man Infra IPO
NEW DELHI:
The initial public offer of Man Infraconstruction has received good response from investors and got subscribed 2.50 times on its opening day on Thursday. The public issue of construction firm received total bids for 1.16 crore shares against 46.53 lakh stocks on offer, data till 1500 hrs with the NSE shows. — PTI

REC FPO opens today
NEW DELHI:
REC’s follow-on-offer opens on Friday which the analysts said would fare better since the floor price is substantially lower than the market price. The floor price for the FPO is fixed at Rs 203 which is nearly 8 per cent lower than the prevailing market price. — PTI

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