The Tribune, Chandigarh, India

	Inflation shoots up to 9.89 pc Drivers: Rising food prices n Hike in excise duty on fuel New Delhi, March 15 Inflation zoomed towards the double-digit mark at 9.89 per cent in February, the highest in 16 months, driven mainly by rising prices of essential food items and the hike in excise duty on fuel announced in the Budget. The wholesale price-based inflation shot up 1.34 percentage points in February over 8.56 per cent in the previous month. The figure has already surpassed the RBI's year-end projection of 8.5 per cent in January and "could cross the double-digit mark in March," said Chief Statistician Pronab Sen. Finance Minister Pranab Mukherjee had earlier said the across-the-board hike in excise duty by 2 per cent in the Budget would push up the wholesale price-based inflation by only 0.41 per cent. Among food items, prices of sugar, pulses and potatoes increased by 55 per cent, 36 per cent and 30 per cent, respectively, during the year. The fuel price index shot up by over 10 per cent, mainly on account of higher prices of petrol and diesel. While petrol became dearer by 11.73 per cent, diesel prices increased 8.85 per cent. With inflation slowly spreading from food items to other areas, analysts say the RBI may tighten money supply further by raising interest rates in its April policy. Already, some banks, including ICICI Bank, HDFC group, and the Bank of India have raised interest rates. "To tame inflation, the RBI could raise short-term lending and borrowing rates by 25 basis points each," Crisil principal economist D K Joshi said. Partly withdrawing the stimulus given to the industry during the slowdown, Mukherjee raised the excise duty from 8 per cent to 10 per cent and increased Customs duty on crude and excise duty on diesel and petrol in the Budget. Inflation for food items was at 17.70 per cent in February, while for manufacturing it was 7.42 per cent. Sugar, prices rose 55.47 per cent on yearly basis. "Inflation is primarily driven by food prices, but it is getting more and more generalised," Joshi said. However, the government expects food inflation to cool down in the months ahead as it expects the rabi (winter) crop to be much better. "The Agriculture Minister has said the prospects of rabi crop are good and that will definitely have a positive impact in containing inflation and bringing down the prices," Commerce and Industry Minister Anand Sharma said. Rabi crops will start arriving in the market from April by when the overall inflation could rise to 11 per cent. "Inflation is likely to be at 11 per cent mark by the end of March. I expect the RBI to increase repo, reverse repo (short-term lending, borrowing rates) and Cash Reserve Ratio by 25 basis points each," HDFC Bank economist Jyotinder Kaur said. — PTI Pressure on food prices easing: FM Finance Minister Pranab Mukherjee today said that pressure on food prices was easing, even as the overall wholesale price-based inflation was almost in double digits for February. “I am afraid that we will have to deal with high inflation for some more time. Inflationary pressure on food items have started coming down,” the Finance Minister said, to a query on inflation nearing double digits, on the sidelines of AIMA function here. Wholesale price-based inflation rose to 9.89 per cent in February from 8.56 per cent in the previous month due to increase in prices of certain food items such as sugar and the hike in excise duty on fuel announced last month. — PTI
	Ranbaxy, Takeda settle dispute New Delhi, March 15 Ranbaxy Laboratories today said it had entered into an agreement with Japanese drug maker Takeda Pharmaceuticals for ending the patent litigation regarding diabetic drug Actos. "Under the terms of the agreement, Takeda has granted a non-exclusive royalty free licence to its patent covering Actos," Ranbaxy said in a statement. As per the terms of the agreement, Ranbaxy will be able to launch the generic version of the drug Actos in the US market on August 17, 2012. However, the drug could be launched earlier also depending upon the circumstances. "This agreement will allow Ranbaxy Pharmaceuticals Inc (RPI) to bring to patients with diabetes a generic alternative in this important therapeutic area," RPI vice-president of sales and distribution Jim Meehan. Ranbaxy entered into the agreement along with its US-based wholly-owned subsidiary Ranbaxy Pharmaceuticals Inc, while Takeda also signed the pact with its fully-owned subsidiary Takeda Pharmaceuticals North America. Takeda has simultaneously signed agreements with other players to end the patent infringement litigations pending in US courts regarding Actos which is also known by its chemical name Pioglitazone Hydrochloride and is available in 15 mg, 30 mg and 45 mg strengths. According to market research firm IMS, Actos had reported a sale of approximately $3.4 billion in the US for the 12 months ending December 31, 2009. — PTI
	Petro surcharge Boon for neighbours, bane for Punjab Ruchika M. Khanna Tribune News Service Chandigarh, March 15 The imposition of 10 per cent surcharge on petrol and diesel by the Punjab government has failed to serve its purpose of yielding additional revenue for the state. Instead, this hike in the surcharge has resulted in a sharp decline in sale of petroleum products. The worst affected have been petrol pumps located in districts bordering Haryana, Chandigarh and Himachal, as they are losing out their customers to retail outlets across the border. With the imposition of the surcharge in Punjab, petrol is cheaper by Rs 5 per litre in neighbouring Chandigarh and by Rs 6 per litre in Haryana, while diesel is cheaper by Rs 0.08-0.30 per litre in Haryana. As a result, over 350 retail outlets located in Mohali, Patiala, Sangrur, Bathinda and Mansa claim that with the sharp differences in price of these petroleum products, their business is now down by over 50 per cent. These dealers say that the maximum fall has been in the diesel sales. Because of this fall in sales in these districts bordering Haryana and Chandigarh, sale of diesel in Punjab in the past one month has come down by 13 per cent. Having lost substantial business, these petrol pump owners are now contemplating a protest against this imposition of surcharge. The price variation in petroleum products sold in Punjab vis- a-vis Chandigarh and Haryana has become higher in the past two months. The VAT on petroleum products was increased from 4 to 5 per cent, a 10 per cent surcharge was imposed and entry tax on lubricants and diesel has led to this price variation. Talking to TNS here today, J P Khanna, president, Punjab Petroleum Dealers Association, said though the state was expecting to earn an additional Rs 500 crore as revenue per annum through surcharge, the drop in sales in the past one month has led to a loss of Rs 50 crore in revenue as VAT. “The government had earlier promised that once the surcharge is imposed, it would replace the octroi that is being charged on these products. Though the surcharge has been imposed, octroi is still being charged,” he rued, claiming that nowhere in the country was octroi being charged on petroleum products.
	Day of deals for big firms Rs 2,035 cr ONGC project for L&T Mumbai, March 15 L&T today said it had bagged a project worth Rs 2,035 crore from ONGC Mangalore Petrochemicals to set up an aromatics complex at Mangalore special economic zone. The aromatic complex will produce products like Paraxylene & Benzene as well as other by products like Hydrogen and LPG, L&T said. The project involves setting up of nine process units and would be ready for commissioning by December 2012, it said. — PTI BHEL wins Rs 3,348 cr contract New Delhi: BHEL today said it had won a Rs 3,348 crore contract to set up 376 MW captive power plant at the upcoming Paradip Refinery Project of Indian Oil Corp in Orissa. BHEL has won a turnkey contract for setting up an energy efficient and environment-friendly 376 MW captive power plant at the upcoming Paradip Refinery Project of IOC in Orissa, a company release said. BHEL’s scope of work in the Rs 3,348-crore project envisages design, engineering, manufacture, supply, erection and commissioning of the captive power plant, in addition to associated civil works, it said. The equipment for the project will be supplied by BHEL’s plants in Hyderabad, Trichy, Ranipet, Bhopal, Jhansi and Electronics Division, Bangalore. — PTI TCS, Air Malaysia ink pact New Delhi: TCS today inked a five-year deal with Malaysia Airlines (MA) for an undisclosed amount. The five-year contract for end-to-end IT infrastructure services will transform the airline’s IT operations to deliver seamless internal customer experience, TCS said in a statement. “One of the key initiatives include fine tuning our IT outsourcing strategy to deliver the required business results at lower cost. At the same time, we will continue to work with our key vendors to maximise service delivery and to pro-actively address other business requirements,” MA chief information officer Faridah Abdul Rahman said. — PTI
	SC refuses bail to Raju Legal Correspondent New Delhi, March 15 The Supreme Court today refused to grant bail to Satyam founder Ramalinga Raju, placed under judicial custody on January 10 last year after a scam involving thousands of crores had come to light. “He is the main accused and is likely to influence the witnesses,” a Bench headed by Chief Justice KG Balakrishnan observed before rejecting his bail plea. “Not for the time being” was the response of the Bench, which included Justices Deepak Verma and BS Chauhan, when senior counsel TR Andhyarujina sought bail, arguing that his client could not be kept in jail for such a long time. More than 1.6 lakh documents and 670 witnesses would have to be examined in the case and all this would take time and as such his client should be granted bail, the counsel said. The Bench, however, maintained that it was not inclined to the plea as Raju had committed a “serious crime.” Nevertheless, the court allowed him to withdraw the plea and approach it at a later stage.
	3G auction: No bid on day 1 New Delhi, March 15 No bid was submitted on the first day today for participating in 3G spectrum auction, while most of the top telecom players said they would do so only on March 19 — the last day. According to sources in the Department of Telecom, no application was received today. When contacted the top four mobile players - Bharti Airtel, Vodafone Essar, Reliance Communication and Tata Teleservices - said they would submit their bids on March 19, the last date for submission of applications. — PTI
	Big leap for Reliance Com Wireless users cross 100-m mark Tribune News Service New Delhi, March 15 Reliance Communications (RCom) today said its wireless users had crossed 100 million. A company official said the additions came from both subscribers in the GSM and CDMA platforms. "We will reach the next 100 million in the next 1,000 days," said Anil Dhirubhai Ambani, chairman of the ADAG. At the end of January, Reliance Communications' total subscriber base stood at 96.6 million. "The landmark 100 million mobile customer base makes us the youngest telecom operator to achieve this milestone in such a short span. Reliance Communications pioneered the mobile revolution in India and since then we have been the front-runner of telecom innovations in the country. As we take the leap to achieve the 200 million mark, we will lead it from the front with more customer-centric innovations and service approach, Ambani said. RCom is planning to roll out CDMA mobile broadband network offering Internet speed up to 3.1Mbps beyond 60 cities within the next 100 days, taking the total number of cities covered to 125 offering mobile broadband service.
	HCC buys 66 pc in Swiss firm Mumbai, March 15 HCC today acquired a controlling stake in Swiss real estate firm Karl Steiner AG in an all-cash deal for around Rs 150 crore (Swiss Francs 35 million), a move that will pave way for the company to enter the European and Gulf markets. The acquisition, though subject to regulatory approvals, is also expected to help Hindustan Construction Company (HCC) enter the high-rise building construction segment. It expects to close the deal by the first quarter of FY’11. “We agreed to acquire a 66 per cent stake in Karl Steiner AGKarl Steiner AG (KSAG) to enter the high-rise building construction arena,” HCC chairman and MD Ajit Gulabchand said. As a part of the deal, HCC would acquire the remaining 34 per cent stake in KSAG from its sole owner Peter Steiner in 2014. Until that time, he will remain a minority shareholder and fully support HCC’s management of KSAG as vice-chairman. However, the shares will be sold at a pre-agreed price based on KSAG's earnings achieved between 2010-2013, Gulabchand said. Post-acquisition, KSAG will use the funds raised by capital increase for its Swiss operations, and the growth of the company's core business in India's growing residential and commercial construction market. This strategic fit will also open the Swiss and European market to HCC's E&C business and will help procure greater access to technology and EPC (Engineering, Procurement and Construction) capability," the HCC chief said. — PTI

Tommy Hilfiger to be sold for $ 3bn

New York/New Delhi, March 15
Phillips-Van Heusen will purchase Tommy Hilfiger BV in a cash-and-stock deal worth about $3 billion (2.2 bn Euros), creating one of the world's largest apparel makers with a combined revenue of $4.6 billion.

Both companies, which have good presence in India, have entered into a definitive agreement for the proposed deal. In a statement today, Phillips-Van Heusen said the buyout would create a "one of the world's largest and most profitable apparel companies, a global business with combined revenue of approximately $4.6 billion".

The transaction includes 1.92 billion euros in cash and 276 million euros worth stocks of Phillips-Van Heusen. The firm would also assume liabilities of Tommy Hilfiger worth 100 million euros. In India, Van Heusen brand is operated by Aditya Birla group firm Madura Garments.

Madura Garments did not reply to e-mail queries and phone calls to seek response about the deal, while Tommy Hilfiger India chief execitive Shailesh Chaturvedi was unavailable for comment. Phillips-Van Heusen already owns brands such as Calvin Klein and Izod and produces apparel under licence for names such as Kenneth Cole Reaction and Donald Trump. — PTI

M&M to split stock

Mumbai, March 15
Mahindra & Mahindra today said it had got the approval of its shareholders go in for stock split.

The shareholders passed a resolution to this effect through postal ballots with requisite majority, Mahindra & Mahindra said.

The shareholders gave their permission to sub-divide every Rs 10 ordinary equity share into two ordinary shares of Rs 5 each, it said.

The shareholders also gave their nod for amending Clause 5 of the memorandum of association of the company required for this purpose, it said. — PTI

BRIEFLY

NMDC FPO at Rs 285
New Delhi: NMDC today said it had fixed the issue price of its follow-on public offer of 33.22 crore equity shares at the lower end of the price band at Rs 300 a piece. Besides, the Navratna PSU had offered a 5 per cent discount to retail investors and employees at Rs 285 per share, NMDC said in a filing to the National Stock Exchange. — PTI

Anand quits Lifespace
Mumbai: Mahindra Lifespace Developers today said its chairman Anand Mahindra had resigned from his position and announced the appointment of Arun Nanda as the non-executive chairman of the company. Anand Mahindra has submitted his resignation to the board from the position of the chairman and a director of the company to take effect from March 15, Mahindra Lifespace said. The board has accepted his resignation. — PTI

Deal for ARSS Infra
Mumbai: ARSS Infrastructure Projects today said it had bagged orders worth Rs 207.86 crore from various vendors for construction-related works. The company has bagged an order worth Rs 36.09 crore for road improvement under Vijaywada-Ranchi corridor, ARSS Infra Projects said. Further, the company had bagged projects worth Rs 171.77 crore from various firms for infrastructure development, it said. — PTI

NFL signs MoU
NANGAL: NFL has signed an MoU with the Department of Fertilisers for the fiscal year 2010-11. VK Sharma, chairman and managing director, NFL, and S Krishnan, secretary (fertilisers) signed the MoU. As per the MoU, the company has targeted production of 32.31 lakh MT of Urea. The MoU lays stress on financial performance, agriculture extension and promotional activities, improved energy consumption, safety and environment, R&D and corporate social responsibility. — TNS

Rs 50,000 discount on Logan
NEW DELHI: At a time when most automakers have gone for a price rise following the excise duty hike in the Budget, dealers of the troubled Mahindra Renault across the country are offering up to Rs 50,000 discounts on sedan Logan. Similarly, a Guwahati-based dealer said discount of Rs 18,000 will be available on diesel version and Rs 50,000 on petrol variant. — PTI

Venus Remedies gets patent
New Delhi: Venus Remedies on Monday said it had received a product patent for its antibiotic drug Sulbactomax in the country. "The company has been granted another product patent by the intellectual property office for Sulbactomax, out of its patent basket of 341 patents filed globally," Venus Remedies said. The company had filed its patent application for the drug in 2004. — PTI