Berlin, October 7
India on Thursday said it has resolved a dispute with the European Union over seizure of Indian generic drugs by some European countries. It will soon withdraw a complaint filed before the WTO on the matter.

"EU has accepted our position and amended its rules. We have got an understanding on this issue," Commerce and Industry Minister Anand Sharma told reporters here on the sidelines of the Ficci-Frauenhofer CEOs Roundtable.

Asked whether India will withdraw its complaint from the WTO, the Minister said: "Yes. We do not want to be in conflict. There has been realisation and we appreciate the steps which have been taken (amending the EU rules). They went to the extent of saying that they were misreading the concerned EU notification." India had dragged the 27-nation European bloc to the WTO after several instances of drug seizure on the high seas of Europe, ostensibly on the ground that the consignments violated EU laws.

However, India insisted that the drugs, which were being shipped to Latin American and African countries, were off- patent and there was no violation of any international law.

At the behest of WTO, officials from the two sides held two rounds of mutual consultations to resolve the disputes which had left a bitter taste for the $20 billion Indian pharmaceutical industry.

Sharma said that India is very firm on the issue of its Intellectual Property Rights (IPR) regime and would not go beyond its domestic legislation. — PTI

New Delhi, October 7
India’s gems and jewellery exports grew 67 per cent in August to $3.1 billion year-on-year due to increased sales in the US and non-traditional markets like Russia and China.

"We have been able to increase our share in the US market to about 32 per cent from 26 per cent earlier," Gems and Jewellery Export Promotion Council (GJEPC) vice-chairman Sanjay Kothari said.

The exporters have been able to capture some market share of Israel and Belgium in the US, he added. The US along with the 27-nation bloc European Union account for over 70 per cent of the country's total gems and jewellery exports.

Exports of cut and polished diamonds exports in August saw maximum growth of 65 per cent year-on-year followed by gold jewellery (49 per cent) and coloured gemstones (14 per cent), according to GJEPC data.

Exports of precious items during the April-August period rose about 62 per cent to $15.2 billion over the same period last fiscal.

The increase in exports is also due to enhanced demand for the Indian items in markets like China and Russia.

The council expects the exports would be about 30-35 per cent in the current fiscal more over the previous year as demand was picking up in the traditional western markets.

In 2009-10, the exports of gems and jewellery were $29.33 billion. — PTI

Mumbai, October 7
A tariff war between Reliance Infrastructure and Tata Power in Mumbai suburbs threatens to derail reforms in the country’s power sector.

Reliance Infra is demanding a uniform tariff rate for Mumbai, alleging that big customers like corporate houses, shopping malls and industrial establishments have moved to Tata Power, denting its profitability.

Till a few years ago, Reliance Infra was depending on big users to subsidise power for its low-end users.

Following Reliance Infrastructure’s complaints, the Maharashtra Energy Regulatory Commission lowered electricity rates for commercial users even as it raised tariffs for residential users. Though this brought down the number of commercial users defecting from Reliance Infrastructure, residential users have protested.

Backing the residential users are the BJP and the Shiv Sena, which took to the streets in protest.

Reliance Infrastructure has accused Tata Power of reducing allocation of power from 762 Mw to 500 Mw for consumers. In response, Tata Power has said said it needed the power for its own retail operations.

Reliance Infra does not generate enough power on its own for its Mumbai operations and has to buy power from third parties and the spot market. “Reliance Infrastructure is forced to buy power from outside at a higher price to keep its consumers free from outages,” the statement said.

According to Reliance Infrastructure, residential consumers will be billed up to Rs 2.96 per unit for every 100 units of consumption. Between 101 and 300 units, the tariff would rise to Rs 5.56 per unit. Between 301 and 500 units, the tariff is Rs 9.16 and those consuming even higher amount of power will be billed up to Rs 10.61 per unit. The tariffs were cleared by MERC a few weeks ago sparking anger.

The Maharashtra government has now announced that it would use its discretionary powers under the Indian Electricity Act, 2003, to intervene and set up uniform power charges for Mumbai city and its suburbs.

Brussels/New Delhi, October 7
The European Commission has slapped a fine of over euro 458 million on the world’s largest steelmaker ArcelorMittal and 16 others for operating a price-fixing cartel for nearly two decades.

"It is amazing how such a significant number of companies abused nearly the entire European construction market for such a long time and for such a vital product. This was almost as if they were acting in a planned economy, " said Joaquín Almunia, Commission VP in charge of Competition.

The Commission is the executive arm of the European Union.

On June 30, the European Commission had fined 17 Prestressing steel producers euro 518.5 million for fixing prices of a type of steel used in concrete. On September 30, the Commission corrected errors in the calculation of the fine, after which the new figure stands at euro 458 million. Prestressing steel comprises of long, curled steel wires used with concrete in construction sites to make foundations, balconies or bridges.

ArcelorMittal was imposed the largest individual fine - over euro 230 million. Besides, the Commission increased the fines for ArcelorMittal Fontaine and ArcelorMittal Wire France by 60 per cent because they had already been fined twice for cartels in the steel sector.

The Commission has fined 17 pre-stressing steel producers a total of over euro 458 million for operating a price-fixing and market-sharing cartel between January 1984 and September 2002 in all the countries that then formed the EU except the UK, Ireland and Greece, the Commission said.

During 18 years, the companies fixed individual quotas and prices, allocated clients and exchanged sensitive commercial information. In addition, they monitored price, client and quota arrangements through a system of national co-ordinators and bilateral contacts, it added. — PTI

New Delhi/Dhaka, October 7
Bharti Airtel will partner telecom gear makers Ericsson and Huawei to expand and manage its mobile network in Bangladesh, where it took control of a mobile carrier this year.

Bharti said it would not share financial details of the contracts with Ericsson and Huawei, but said Ericsson would manage majority of its network capacity in Bangladesh and Huawei would upgrade networks in the eastern part of the country.

Bangladesh's mobile sector has grown rapidly, with subscriber numbers reaching nearly 62 million, up from 200,000 in 2001, helped by fierce competition among the country's six operators and by steady economic growth.

Warid Telecom, in which Bharti bought a 70 per cent stake in January, is the country's fourth-biggest operator with more than 3 million subscribers. Competition intensified in the market following slow growth last year after Bharti's entry.

Bharti, which now operates mobile services in 19 countries across Asia and Africa and says it is the world's fifth-largest mobile carrier by subscribers, last month selected Ericsson, Nokia Siemens Networks and Huawei as its equipment partners for third-generation (3G) mobile services in India.

In March, Ericsson also announced a separate $1.3-billion network expansion contract from Bharti for upgrading Bharti's GSM network in 15 of India's 22 telecom zones. — Reuters

Chandigarh, October 7
The Punjab government today signed a Memorandum of Understanding (MoU) with National Thermal Power Corporation (NTPC) to set up a 2640-Mw coal-based power project at Gidderbaha at Rs 15,000 crore. This will be the biggest thermal power plant in the state and will help in developing ancillary industries and provide employment to thousands.

The MOU was signed by Arun Goel, Principal Secretary Power, Punjab, and IJ Kapoor, Director/Commercial, NTPC. Engineer KD Chaudhri, CMD and Engineer GS Chhabra, Director/ Generation, Punjab State Power Corporation were also present.

It is after 40 years that Punjab has been able to get such a large investment. The government has agreed to facilitate acquisition of land, allocation of water and conveyed in-principle clearance for about 2,316 acres and 125 cusecs of water. A notification under Section 4 of the Land Acquisition Act has been issued.

The plant will comprise 4 units of 660 MW each, to be funded by NTPC.

At least 50 per cent of the power from the plant shall be allocated to Punjab. NTPC has sought long-term coal linkages from the coal ministry. Punjab government will extend co-operation in obtaining the coal linkage for the project.

Punjab State Power Corporation shall provide NTPC with reports, specific studies/investigations rewuired for the project. The cost on these shall be reimbursed by NTPC. PSPCL shall enter into a Power Purchase Agreement with NTPC for purchase of power allocated from the proposed project. The tariff would be as determined by Central Electricity Regulatory Commission.

New Delhi, October 7
Annual food inflation eased in late September on improved supplies, which could soothe the RBI’s concerns that high food prices could spill over to other parts of the economy.

Food prices are a political concern for the ruling Congress party, which faces key state elections this year and next.

Data on Thursday showed the food price index in the year to September 25 rose 16.24 per cent, compared with 16.44 per cent in the previous week, as prices of wheat, pulses and cereals fell and as receding floods improved supplies.

Floods in northern India in late September affected more than three million people and ravaged more than 500,000 hectares of farmland.

The fuel price index for the same period rose 10.73 per cent, similar to the previous week's rise.

Food makes up 14 per cent of the wholesale price index (WPI), while fuel contributes 15 per cent, and a quickening in these components will put upward pressure on the headline figure.

Some analysts see a substantial easing of food prices after November, at the end of India’s festival season.

“I don't expect food prices to come down substantially before the festival season, as there is too much of inflationary expectation due to the festival demand,” said NR Bhanumurthy, an economist with New-Delhi based think-tank National Institute of Public Finance and Policy.

Headline inflation stood at 8.5 percent in August, above the RBI's comfort zone of 5-6 per cent and compared with end-March projection of 6 per cent. — Reuters

New Delhi, October 7
Cairn Energy today secured the approval of shareholders for sale of majority stake in its Indian arm to London-listed Vedanta Resources, but the closure of the deal is still contingent on certain conditions. About 99 per cent of the 94.89 crore shareholders unanimously approved the sale of 40-51 per cent stake in Cairn India to Vedanta Group, a Cairn Energy Plc spokesperson said.

"We are pleased that Cairn Energy shareholders have approved the proposed transaction with Vedanta. This is an important step in the process towards completion (of the deal)," he said from Edinburgh where the company's general meeting was held today.

The shareholder approval meant that ONGC, which partners Cairn India in several of its properties including the giant Rajasthan oilfield, will not be able to to make a counter offer now or exercise its pre-emption right. But the Cairn-Vedanta deal is far from conclusion. — Reuters

BRIEFLY

Rs. 15,000 cr for rural telephony
Singapore: India has chalked out an ambitious plan to connect all the villages through telephony and Internet at an investment of Rs 15,000 crore, Sam Pitroda, an adviser to Prime Minister Manmohan Singh, said on Thursday. "A note for this investment will be sent to the Cabinet very soon," Pitroda, adviser to the PM on Public Information Infrastructure and Innovations, said. The investment woould come from Rs 24,000-crore accumulated from the Universal Service Fund, he added. — PTI

SAIL achieves best-ever sales
New Delhi: Steel Authority of India Ltd (SAIL) on Thursday said it has achieved the best-ever July-September quarter sales of 3.17 million tonnes on account of higher intake by the construction and manufacturing sectors. "Sales growth in Q-2 was mainly due to higher intake by the construction and manufacturing sectors...in comparison to sales in the previous quarter, SAIL achieved a growth of 30.8 per cent," the company said. — PTI

Jet, GMR Airport proposals deferred
New Delhi: The government on Thursday deferred a decision on giving approvals to Jet Airways' proposal for QIP and GMR Airports' plan for a foreign investor in the Bangalore Airport. Earlier this month, the FIPB cleared six foreign direct investment proposals worth Rs 5.46 crore. The statement did not list any reason for the decision. — PTI

Italian luxury brands target India
New Delhi: Fondazione Altagamma, a body of luxury brands of Italy, on Thursday said many of the country's top companies will be giving a big push to strengthen presence in India and will soon be announcing investments. “A number of Italian brands will announce their investments for expanding and strengthening presence in India," Fondazione Altagamma, ED Armando Branchini said. — PTI

BHEL bags `3,700-cr order
New Delhi: State-owned BHEL on Thursday said it has bagged a Rs 3,700-crore from Karnataka Power Corporation for setting up the 700-Mw Bellary Thermal Power Station in Karnataka. The project will be set up on a turn-key basis. — PTI

Pantaloon Retail to raise Rs. 750 cr
Mumbai: Pantaloon Retail (India) on Thursday said it has approved the proposal to raise Rs 750 crore in one or more tranches by issuing equity shares or any other financial instrument to be finalised later.The board of directors have taken a decision to this effect. — PTI

Prestige Group eyes Rs. 1.2K-cr from IPO
Mumbai: Real estate firm Prestige Group is eyeing Rs 1,200 crore from its Initial Public Offering (IPO) scheduled to hit the market on October 12. The issue will close for subscription on October 14. The Bangalore-based company has fixed the price band of the IPO at Rs 172-183. — PTI

Airtel digital TV slashes STB prices
New Delhi: Airtel digital TV, the DTH arm of Bharti Airtel, today slashed price of set top boxes (STBs) to Rs 999, a move that will further fuel the competition in the DTH space. Tata Sky had slashed prices of STBs to Rs 999 last month and the move might compel other players to follow suit as operators eye huge sales. — PTI

RBI relaxes loan recast norms for cos
New Delhi: The Reserve Bank of India on Thursday relaxed norms governing restructuring of loans given to corporations, granting promoters more time to repay their share of funds to the bank. "...The promoters could be allowed to bring in 50 percent of their sacrifice, i.e. 50 percent of 15 percent, upfront and the balance within a period of one year," the RBI said in a notification. The RBI said besides cash payment, the promoter can also bring in contribution in the form of de-rating of equity, conversion of unsecured loan brought by the promoter into equity and interest free loans. — Reuters