The Tribune, Chandigarh, India

	Exports grow by 22.5% in August New Delhi, September 15 Exports grew by 22.5 per cent to $16.64 billion in August compared to the same period last fiscal, a senior Commerce Ministry official said today. Imports, too, jumped by 32.2 per cent year-on-year to $29.7 billion in August, Commerce Secretary Rahul Khullar told reporters here. "Export growth is relatively slow, well below the level of 2009. From next month onwards hopefully, you should see growth at the level of 2008," Khullar said. During April-August this fiscal, exports posted a growth rate of 28.6 per cent to $85.27 billion on a year-on-year basis. Imports during the April-August period grew by 33.1 per cent to $141.89 billion. The country's trade deficit widened to $13.06 billion in August compared to the year-ago period. For the April-August, 2010, period, the trade deficit amounted to $56.62 billion. — PTI
	PACL stake sale unlikely to meet deadline Ruchika M. Khanna Tribune News Service Chandigarh, September 15 The Punjab government may find it difficult to complete the disinvestment process of Punjab Alkalies and Chemicals Limited (PACL) by the end of October, the deadline set for the job. With the technical committee for disinvestment deferring the decision for empanelment of two companies in the panel, the disinvestment process could be delayed. Official sources informed TNS that a meeting of the technical committee was held here yesterday, wherein 12 of the 14 companies (that had submitted their proposals to participate in the disinvestment of the public sector undertaking), were empanelled. These include Nirma, Surya Pharma, KUDOs Resources, KLJ Resources, Amtek Auto, Goyal MG Gases, Panoli Intermediates (India), Lords Chloro Alkali, Jay Polychem (India), Jai Prakash Associates, Grasim Industries and Bhushan Power and Steel. The request for qualification (RFQ) proposals submitted by two of the companies - Nectar Lifesciences and DCM Shriram Credit & Investments - has been deferred because of some technical deviation from the RFQ. “We have now referred their case to the Cabinet Committee on Disinvestment, which will decide if these companies can be empanelled for the disinvestment of PACL,” informed a senior state government official. This could mean a delay in the winding up of the disinvestment process. It is only after the bidders have been identified that they will be asked to submit their financial bids. Based on these financial bids, the eligible bidder will be chosen for disinvestment. Official sources say that the state government is in hurry to sell PSIDC’s 44.26 per cent stake in the company, so that the money thus generated could be used by it to meet its losses. PACL has been running in losses for some time now. Even during the first quarter of the current financial year, the company reported a loss of over Rs 4.70 crore. Considering the strategic location of the PACL manufacturing facility at Naya Nangal and its fixed assets, many top companies are interested in taking over 44.26 per cent stake in the company.
	PSIEC land for IT companies Chitleen K Sethi Tribune News Service Chandigarh, September 15 In a bid to ease out the acute dearth of land for the setting up of bases of IT companies in Mohali, the state government today decided to use over 70 acres of land available with the Punjab Small Industries and Exports Corporation (PSIEC). Almost 73 acres of land of the corporation had been offered to IT giants Wipro and TCS to set up base here. However, in the absence of any response from the two companies it was decided today that a part of this land be offered to other companies and the rest divided into industrial plots for allotment to IT and IT- related industries. This was decided in a meeting of Industries Minister Manoranjan Kalia with the Chief Minister Parkash Singh Badal today. TCS and Wipro were to be given this land in 2005 but the state could not fulfil its promise due to pending litigation. Following the end of the court case, this chunk of land was handed over back to the Industries department. The state government wrote to the two companies informing them that the land was available and in case they were still interested they could pursue their offer with the government. However, the CM was today informed that these two companies had not shown any interest in this land and it could be used for other purposes. The Principal Secretary, Industries, SS Channi, said 25 acres out of these 73 acres would now be kept aside to be offered to a big IT company, which can set up an anchor unit here. Another 10 acres would be kept aside for the setting up of an IT Park. It was decided that almost 10 per cent of the land would be retained by the PSIEC for commercial use to set off the subsidy that the government might have to give while allotting land to the IT companies to set up base on these chunks of land. “There would be 10 1-acre plots on 10 acres of this land, another 20 of 2,500 square yards on another 10 acres and 50 of 1,000 square yards each on another 10 acres which would be allotted according to the Industrial Policy,” Channi said.
	Credit policy review today Tribune News Service Mumbai, September 15 The RBI will announce its mid-term review of its monetary policy tomorrow. It would be first mid-cycle review since the last quarterly review of the monetary policy announced on July 27. The opinion on the street is divided on whether the apex bank will raise interest rates. While some bankers feel that interest rates should remain unchanged, others say inflation is still a concern and the central bank may tighten liquidity to rein in galloping food inflation. OP Bhatt, chairman, State Bank of India, felt that the status quo would continue. "Overall inflation was showing signs of moderation and RBI might pause interest rate hikes," investment bank Nomura added. However, Abheek Barua, Chief Economist, HDFC Bank, felt that inflation at around 10 per cent is still a cause for concern and liquidity tightening is likely to continue. A few analysts predicted that the apex bank would hike repo and reverse repo rate by 25 basis points.
	Cairn steps up efforts to get nod for Vedanta deal Mumbai, September 15 Cairn India has set up a panel of independent directors to look at issues pertaining to minority shareholders in the takeover deal by Vedanta Resources, even as its UK parent kept up efforts to convince the government on the transaction. The two member committee comprises Omkar Goswami and Edward Story. "We (me and Story) are truly independent in the sense that we are not concerned with either buyer (Vedanta Resources) or seller (Cairn Energy)," Goswami said at the company's AGM here. The other two independent directors on Cairn India board are also on board of London-listed Vedanta Resources. Cairn India Chairman and Cairn Energy chief executive Bill Gammell said his firm will seek "all necessary approvals from the government" for sale of between 40 and 51 per cent stake in Cairn India to Vedanta. Gammell, who last week wrote to oil ministry seeking formal approval in case of seven exploration blocks Cairn India had won in New Exploration Licensing Policy, will meet Oil Secretary S Sundareshan in New Delhi tomorrow. Oil Ministry is apprehensive about Vedanta's lack of oil experience but Gammell said Cairn India as a company with its current management will continue to exit even after sale of Cairn Energy's 40 to 51 per cent stake to Vedanta. "This is a corporate transaction involving change of shares at the corporate level. Cairn India is about its people and their expertise. The knowledge and expertise resides in these people and not in Cairn Energy Plc," he told reporters when asked if Vedanta's lack of experience in oil business may become a stumbling block to obtain regulatory approvals. Gammell had met Sundareshan immediately after announcing the deal with Vedanta last month but the oil ministry was unconvinced, making it amply clear that Cairn Energy will have seek formal nod before it can even apply its mind. Market regulator SEBI is yet to approve the open offer made by Vedanta Group to Cairn India shareholders. Billionaire Anil Agarwal-led Vedanta is buying Cairn Energy Plc's 40-51 per cent stake in Cairn India and has made an open offer for an additional 20 per cent stake --which will take the deal size to up to $9.6 billion. — PTI
	National Automotive Authority by Dec Tribune News Service New Delhi, September 15 The government is working out the modalities for setting up a National Automotive Authority (NAA) which would help bring about a synergy in the automotive sector by improving the relationship between the Indian automotive industry and the government, besides promoting research and development work on automobiles in the country. The new body, which is expected to be in place by the end of this year, will interact with various ministries, including Ministry for Heavy Industries, Ministry of Environment and others with the intention of promoting more R&D initiatives on automotive industry in the country. It would have representatives from the above mentioned ministries besides those from the Road Transport and Highways ministry, Science and Technology, Urban Development and others and would work under a “suitable technocrat”. The government is proposing to set up the NAA on the lines of similar bodies that exist in countries like China and Japan and the body with about 30 members would function as an autonomous entity. There will be four regular members and industry representatives besides all seven directors of vehicle testing institutes forming a part of this body. The NAA would not only work towards the development of India-specific vehicle standards but also enable in depth research in certain subjects. It would also help standardise emission levels, specially in the two-wheelers where they are very different for Indian vehicles when compared to European standards.