New Delhi, July 15
Transport disruptions due to monsoon and high fuel cost increased food inflation to 12.81 per cent for the week ended July 3, heightening the likelihood of RBI raising short-term rates in its July review.

However, inflation for fuel and related items fell to 14.27 per cent in the week compared to over 18 per cent in the previous week due to base effect.

Since inflation is calculated year-on-year, relatively higher figures last year make the prevailing prices look smaller in comparison.

Economists attribute the 0.18 percentage point rise in food inflation from 12.63 per cent in the previous week to transport hassles and the hike in fuel prices. This broke the two-week declining trend in food inflation.

Rice, wheat, pulses, onions - all turned costlier in the range of 0.03-3.80 per cent on week to week basis.

However, potatoes became cheaper by 0.85 per cent and fruits by 0.91 per cent.

Tomatoes, which have become exorbitant over the period, however, did not see any change in prices.

Prime Minister's Economic Advisory Council member Govinda Rao said, "The marginal jump (in food inflation) was expected. The hike in fuel prices has definitely led to a jump in the transportation costs. The fuel price hike will take time to be reflected fully."

Economic think tank ICRIER director Rajiv Kumar said the effect of the fuel price hike has not come fully and one has to wait for the next few weeks to see it arrive.

"Rise (in food inflation) is due to seasonal factors like rain and transportation hassles during the monsoon. The new crop is also yet to come," he said.

He expected RBI to go for a 25 basis points hike in the short-term lending and borrowing rates at its July 27 meet. — PTI

New Delhi, July 15
The competition in the compact car segment is set to intensify with the Japanese automaker Nissan last night launching its much-awaited compact car Micra, aggressively priced between Rs 3.98 lakh and Rs 5.29-lakh (ex-showroom Delhi).

The launch could also trigger off a price war in the premium hatchback segment. The company has already received over 2,000 bookings ever since it opened on May 25 last.

The car has a 1.2-litre petrol engine and develops 75bhp of power. It is the first car in the small segment to offer driver airbag as standard on the basic variant also. The basic variant also sports a drive computer and tilt adjustable steering.

Equipped with multiple first-of-its-kind features, including intelligent key with immobilizer, a push-button engine start-stop system and electric foldable mirror besides other safety and luxury features. Micra will be available in three variants - entry model XE (Rs 3.98 lakh), mid-level XL (Rs 4.69 lakh) and top-end XV (Rs 5.29-lakh).

The company promises a fuel efficiency of 18.06 km a litre.

Interestingly, Nissan has adopted a uniform pricing policy across the country to offer a fair and equitable benefit to customers all over India.

Micra is being produced at the Chennai plant of its joint venture with French parent Renault - Renault Nissan Automotive India Pvt. Ltd. The joint venture is investing Rs 4,500 crore in the plant, which will have an annual capacity of up to 4 lakh units annually. In the first year, 80,000 units of Micra will be produced for domestic and export markets. The car will be exported to over 100 nations, including Europe, the Middle-East and Africa.

New Delhi, July 15
Decks have been cleared for the merger of State Bank of Indore with its parent State Bank of India, with the Cabinet approving the consolidation of the country's largest lender today.

"Cabinet gave its nod to the merger of State Bank of Indore with SBI," Information and Broadcasting Minister Ambika Soni told reporters.

This will be the second merger of an associate bank with the SBI after a similar exercise with the State Bank of Saurashtra in August 2008.

The merger proposal was approved by the central board of SBI last year. Following this, the Centre also gave an in-principle approval. SBI holds 98 per cent stake in State Bank of Indore.

SBI has already announced a share swap ratio of 34:100 for the merger. It has agreed to give 34 shares of SBI for every 100 shares of State Bank of Indore held by minority shareholders. For this purpose, SBI would issue up to over 1.16 lakh shares of face value of Rs 10 each to minority shareholders of State Bank of Indore.

SBI had also said that the issued capital of SBI would increase from Rs 634.96 crore to a maximum of Rs 635.08 crore after the merger. — PTI

Mumbai, July 15
The country's top software exporter, Tata Consultancy Services, today reported a 24.25 per cent jump in its June quarter profit at Rs 1,906.07 crore over the year-ago period.

The IT major had reported a net profit of Rs 1,533.94 crore in the first quarter of last fiscal.

Nawanshahr, July 15
Punjab Industries and Commerce Minister Manoranjan Kalia today announced the setting up of a second IT Park in the state at Railmajra in Balachaur sub-division here today.

During a ‘bhoomi pujan’ function at the site, the minister said 12.11 acres of land had already been acquired and was now in possession of Punjab Infotech. He said the project would be ready by December this year.

Punjab Infotech managing director RK Verma informed that five plots, each of 1,000 and 2,000 square yards, had been opened for allotment under the government’s general scheme at Rs 4,000 per square yard. He said the last date for receipt of applications is August 16, the details of which were provided at the website www.punjabinfotech.gov.in.

Principal Secretary Industries and Commerce Punjab Dr SS Channy announced that as per the Knowledge Industry Policy, the plot holders would get subsidies on capital investment, exemptions from zoning restrictions, conversion charges, electricity duty, stamp duty and registration charges. He said a gross permissible floor-area ratio of 300 per cent would also be allowed.

The strategic location of the park is of mutual advantage even for the Rayat-Bahra group that has an engineering college just a kilometer away. Chairman of the group Gurvinder Singh Bahra offered to dedicate another 50 acres of land for the purpose from its 300-acre campus. The IT Park also has its proximity to the Indian Institute of Technology at Ropar.

Punjab Infotech has also signed MoU in this context with Rayat-Bahra Group. The group has offered to provide services of transportation, shopping complex, well-equipped seminar halls, banking and ATM facilities, medical facilities, sports and recreational facilities to companies operating at the IT Park.

Punjab Infotech chairman Harjit Singh Grewal said SMEs could avail the opportunity to start-up companies, while young entrepreneurs, students and faculty of Rayat-Bahra group could utilise centre for incubation of their ideas into viable technology and product innovations. 

Chandigarh, July 15
The Apex Chamber of Commerce and Industry, Punjab, yesterday said private investment in the power generating sector was likely to take a hit as some states across the country were blocking efforts by the power generators to sell power outside the boundaries of their states.

PD Sharma, president of the association, said Punjab was likely to face a grim situation because of this development. “Punjab purchases power from different states to the extent of 2,000-3,000 MW. This purchase is worth around Rs 5,000 crore. Punjab produces only 3,000-3,500 MW. Thus, Punjab depends on outside power to the extent of 50 per cent of its requirement,” he said.

He added that the Central Electricity Regulatory Commission (CERC) has observed that if left unchallenged, this tendency could be disastrous. “The CERC has urged the Central Government to take urgent steps for moving the Supreme Court against the moves of some states. The investment in the private sector of power generation will be hit hard,” he pointed out.

Sharma said various provisions of the Electricity Act, 2003, gives state governments extraordinary powers to prevent export of power outside the states. “Punjab mostly depends upon power from other states. If this tendency is not checked, Punjab will be in trouble. So can be the case for many other states. Punjab is not likely to get its own power in the near future. For the time being, the orders issued by some states are restrictive to prevent captive units and private plants from selling electricity outside the state on the grounds that there is a power deficit,” he said.