The Tribune, Chandigarh, India

	PSUs exempted from 25% public float New Delhi, August 9 In a major relief to PSUs as also to investors from any possible flooding of floating stocks, the government today exempted the listed state-run firms from the mandatory condition of 25 per cent public holding. Instead, these PSUs would have to reach a level of 10 per cent public holding in three years for remaining listed, the Finance Ministry said here. It may be recalled that the government had made it a must for listed companies to divest at least 25 per cent holding for the public from the promoters' stake from the prevailing norm of 10 per cent. But within two months, the stringent condition was diluted in favour of PSUs amid fears that a host of issues, either initial or follow-on offers, could impact the disinvestment programme of the government. "Every listed public sector company shall maintain public shareholding of at least 10 per cent...a public sector company which has public shareholding below 10 per cent on the date of the commencement of the Securities Contracts (Regulation) (SCR) Rules, 2010, shall increase its public shareholding to at least 10 per cent," the Finance Ministry said in its amendment to the norms, issued in June. The Finance Ministry also asked listed private sector firms to increase public stake in them to 25 per cent in three years, as stipulated earlier. "A (private sector) company shall increase its public shareholding to at least 25 per cent within a period of three years from the date of listing of the securities," the revised notification said. Earlier in June, the government had made it mandatory for all listed companies to raise public holding to at least 25 per cent, with a minimum of at least 5 per cent stake a year by promoters to reach the threshold limit. The amendments assume importance, since many experts have criticised the June norms, saying the market does not have the appetite for so many offers and the flurry of issues will dampen market sentiment. "After this amendment, there will be substantial reduction on the number and amount of public issues expected to come to the market. This is a quite sensible and practical decision by the Finance Ministry," SMC Capitals equity head Jagannadham Thunuguntla said. With the amendment to the regulation, there will now be 15 PSUs which will be required to meet the 10 per cent public holding norm, down from 35 which were to meet the 25 per cent norm. — PTI
	Infosys upset over ‘chop shop’ remark Bangalore, August 9 Software giant Infosys today took strong objection to a US senator describing it as a 'chop shop' and asserted that the company was a responsible corporate that creates jobs and provides high quality services across the world "We are distressed with this statement. Infosys is a good corporate citizen, pays its taxes and is law abiding," the Bangalore-based company said. While discussing an immigration bill in the US Senate on Thursday, New York Democrat Charles Schumer had likened Infosys Technologies to a "chop shop". Chop shop refers to shady places of business where people dismantle stolen cars and sell off their parts. Infosys also said the US visa fees are discriminatory and does not help create an open competitive market. "Our strategy is to create jobs in every jurisdiction that we work in. We provide a world class work environment for all employees in every country and we add significant value to our clients, helping them compete effectively in the global marketplace," the company said in a statement here. Infosys, India's second largest software exporter, said it has around 1,300 citizens and permanent residents working for it in the US and had been actively working in the past few quarters to hire over 1,000 additional people. — PTI
	Successor won’t be anti or pro-Parsi: Tata Mumbai, August 9 Dismissing all suggestions that only a Parsi with a Tata name would succeed him, Tata Group Chairman Ratan Tata today said the new incumbent would neither be a pro-Parsi nor an anti-Parsi but the right person. "The Tata Group is an Indian Group and we should not be looking (at it) as a Parsi group. The successor should be the right person and not anti-Parsi or pro-Parsi," he told shareholders at Tata Chemicals' AGM here. The market was rife with speculation that the Tata Group's successor will be from among the Parsi community. Tata further said he stayed off the committee so that it will have the full freedom to take its decision. The committee is mandated to pick the person, who is best equipped to head the group, he added. The $70-billion group has embarked on a global search for a successor to Ratan Tata, who turns 75 in December 2012. "The Tata Group (today) is not the group that Jamsetji Tata formed. Today, its revenues are $70-billion and 70 per cent of this comes from outside India. So we are no longer an India-centric group," Tata said. "The committee members are also concerned as you are to make sure that the company will remain in good hands," Tata told the shareholders. — PTI
	Car sales zoom 38 pc in July Tribune News Service New Delhi, August 9 Domestic passenger car sales jumped by 37.95 per cent in July to 1,58,764 units compared to 1,15,084 units in the same month last year. The Society of Indian Automobile Manufacturers (SIAM), which released the figures today, said motorcycle sales in the country grew by 30.09 per cent to 7,10,621 units during the month under review from 5,46,233 units in the same month last year. Total two-wheeler sales in July increased 30.41 per cent to 9,38,514 units from 7,19,656 units in July 2009. Sales of commercial vehicles jumped by 36.99 per cent to 51,481 units from 37,580 units in the year-ago period, SIAM said. Total sales of vehicles across categories registered a growth of 31.50 per cent to 12,37,461 units in July against 9,41,070 units in the same month last year, it added. Passenger car sales in July were also the best ever attained in a month at 1,58,764 units, beating the previous high of 1,55,600 units in March.
	Hafed to ramp up capacity to boost basmati exports Ruchika M. Khanna Tribune News Service Chandigarh, August 9 With an eye on export market, Haryana State Co-operative Supply and Marketing Federation Limited (Hafed) is planning to increase its capacity for rice milling. It is setting up a new state-of-the-art rice sheller at Tohana, and upgrading its existing plant at Taraori. It is learnt that Hafed has earmarked a sum of about Rs 27 crore for this purpose. With the cooperative entering the USA market for retailing its two brands of basmati, it has become imperative for Hafed to have fully-mechanised, state-of-the-art rice shellers. Thus, the new sheller, with a capacity of shelling six metric tonnes of basmati an hour, is being set up at Tohana. This will cater not just to the export market, but also for the domestic market. Talking to TNS here today, Anil Malik, MD, Hafed, said the new plant is likely to be commissioned next year. “We have already set aside Rs 24 crore for this plant, and we hope to cash in on the next paddy season in 2011. Besides, we are also upgrading the rice sheller at Taraori at an estimated cost of Rs 2.60 crore. This will have state of art sortex machines, which will ensure that grains uniform in colour and length are packed for the export and hig-end domestic market,” he added. It is only recently that Hafed has entered into the export market for retailing its own brand of basmati in the USA. “We have already dispatched two consignments (of 22 metric tonnes each) to the USA, and a third consignment is on its way. By the end of this year, we are hoping to export about 400 metric tonnes of basmati to the USA,” he said.
	Unorganised Sector Workers Govt to contribute Rs 1,000 in every NPS account Tribune News Service/PTI New Delhi, August 9 The government today approved a Rs 1,000 per annum pension assistance to unorganised sector workers to inculcate the habit of savings among this population of over 300 million. Under the 'Swavalamban Scheme', the government would contribute Rs 1,000 per year to every New Pension System (NPS) account of 40 lakh such workers over four years starting this fiscal. The assistance is subject to the beneficiary contributing any amount between Rs 1,000 to Rs 12,000 per annum, according to an official statement. Initially, 10 lakh workers would be covered each year over the four years ending 2014-15. "A higher level of New Pension System (NPS) enrolments from the informal sector will ensure old age income security for such subscribers in their post-retirement phase and, therefore, decrease the burden of the government on social security in the future," said the statement issued after the Cabinet meeting here. Under the scheme, the government would provide Rs 1,000 crore over a period of four years to 2013-14. Initially, the government had launched the NPS for central government employees joining service from January 1, 2004, but from May 1 last year it was extended to all citizens. However, it received a lukewarm response and only around 8,000 subscribers joined the scheme in 14 months. The government would also provide about Rs 100 crore to the Pension Fund Regulatory and Development Authority (PFRDA) for promotional and developmental activities for enrolment and contribution collection under the 'Swavalamban' scheme. Finance Minister Pranab Mukherjee in his Budget speech this year had announced to launch the 'Swavalamban' scheme in the current fiscal. A large number of India's 300 million informal sector workers are highly vulnerable to old age poverty because they have traditionally been excluded from formal pension provisions.
	Bill to resolve regulators’ disputes passed Tribune News Service New Delhi, August 9 Parliament today approved a key legislation for a mechanism to resolve disputes between different financial regulators after Finance Minister Pranab Mukherjee allayed the Opposition’s apprehension that the government wanted to interfere with the functioning of the Reserve Bank of India (RBI) and other financial regulators. “It is an ad hoc arrangement and not a knee-jerk reaction,” he told members in the Rajya Sabha, adding that the government was still working on a permanent body to settle inter-regulator disputes. The Securities and Insurance Laws (Amendment and Validation) Bill was passed by the Lok Sabha last week and got the Upper House’s approval this evening. The legislation provides for a joint mechanism, to be headed by the Finance Minister, to resolve disputes between different financial regulators. Before the dispute is sent to the joint mechanism, it would go to a high-level coordination committee headed by the RBI Governor. The Finance Minister said the government had to issue an ordinance on June 18 providing for such a mechanism following the turf war between different regulators like SEBI and insurance watchdog IRDA over the jurisdiction on ULIP. He, however, made it clear that the government could not remain a silent spectator if the regulators kept quarrelling like ‘petulant children’, saying it was not in the interest of the economy. Mukherjee said with the growing economy, there would be more regulators in different sectors and there was possibility of inter-regulator disputes. For resolving inter-regulator disputes, the government had already floated a discussion paper on the proposed Financial Stability Development Council (FSDC).
	IOC to buy gas from RIL Manish Sirhindi Tribune News Service Panipat, August 9 The Indian Oil Corporation will soon be buying natural gas from Reliance Industries (RIL) to replace costlier fuels at the Panipat refinery to increase its profits. The IOC is ready with Dadri-Panipat gas pipeline for which natural gas from D6 block in Krishna Godavari (KG) basin, which is being operated by RIL will be made available. The IOC had planned to convert its feedstock from fossil fuel to natural gas. It was in 2007 that the IOC had been permitted by the Union government to construct a 132-km gas pipeline from Dadri to Panipat at an estimated cost of Rs 350 crore. The corporation will buy 1.6 million cubic metres of natural gas a day from RIL to replace costlier fuels. The IOC currently uses crude oil or fuel oil for operating the refinery. GAIL gas, a subsidiary of GAIL India, will transport the gas. According to sources in the refinery, an Empowered Group of Ministers had allocated 5.384 mmcmd of gas from KG-D6 to public and private sector refineries against their demand for 22.8 mmcmd. IOC had demanded 6.58 mmcmd of gas for its Gujarat, Mathura and Panipat refineries, but as refineries were allocated less than one-fourth of its demand, the state-owned firm was given 1.6 mmcmd. The official said Panipat refinery will be getting about 0.8 mmcmd a day and the rest will be used at Koyali refinery.