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60% import tax on sugar from today
Financial Stability panel holds 1st meeting
Citibank fraud: Hero Group exposure Rs 28.75 crore
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RBI starts probe
CFO grilled
Jet, Kingfisher air tickets to cost more
Re ends 2010 on high note, up 26 paise
Registrations begin for cotton exports
Kodachrome retires at 75
ICICI Bank, 2 others raise lending rates
External debt up 12.8%
Oil trade dispute with India solved, says Iran
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60% import tax on sugar from today
New Delhi, December 31 India, the top producer of sugar behind Brazil, had dropped a 60 per cent import tax in early 2009 to overcome an acute domestic supply shortage, triggered by the worst drought in four decades. “The duty free notification lapses on December 31 and from January 1, it automatically reverts back to the old duty structure,” the source told reporters. Trade and government officials say India is poised to produce 24.5 million tonnes sugar in the new season from October, up from 18.8 million tonnes in the previous year.“If required, we can seek a change in the import duty later," said the source.The expectation of higher output has led the government on Dec. 15 to allow unrestricted exports of 500,000 tonnes of sugar. The source also said an order outlining details of the permitted exports would be finalised by next week.On Thursday, New York raw sugar futures closed down 10 percent after posting their biggest intraday percentage decline in more than a decade as investors grabbed for the cash and ran for the exits on 2010. London March white sugar slumped, dropping $65.10, or 7.9 percent, at $761.30 per tonne, far below Wednesday's all-time high at $835.80. India's local sugar futures traded 0.8 percent lower at Rs 2,980 per 100 kg, as higher cane crush weigh on prices. Earlier this week, a panel of ministers extended stocks limit on sugar for three more months until March 31 as crushing got delayed due to unseasonal rains.
— Reuters |
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Financial Stability panel holds 1st meeting
New Delhi, December 31 The issues discussed in the meeting include, functioning of FSDC, state of the Indian economy, economic recovery in the West and implications for India and exchange rate. It was decided that necessary guidelines would be issued for the functioning of FSDC. On the state of the Indian economy, the general consensus was that the nation would be able to sustain its present level of growth. The meeting assessed the signs of economic recovery in the West and came to the conclusion that 2011 could see improvement in the world economy. US could see better growth in 2011. EU could also see positive growth though the sovereign debt crisis and woes of some nations are a matter of concern. In the light of the projected economic recovery, India's exports are likely to improve. It was discussed that currency issues, as is being played out, could have implications for India. The effort to keep the value of currencies artificially low could have adverse impact on the competitiveness of Indian companies both within and outside the country. If nations adopt protectionist measures, it could have serious implications for the world economy as a whole. The meeting was attended by RBI Governor, D Subbarao, Finance Secretary, Ashok Chawla, chief economic advisor, Kaushik Basu, SEBI chairman, C B Bhave, IRDA chairman, J Hari Narayan among others. |
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Citibank fraud: Hero Group exposure Rs 28.75 crore
New Delhi, December 31 There had been reports pegging the Hero group exposure at much higher levels. Shivraj Puri, the alleged mastermind of the Rs 300-crore fraud in Citibank’s Gurgaon branch was arrested on Thursday. In a statement, the Hero group clarified that the exposure of the BML Munjal controlled Hero Group in this case is only via its entities, and is Rs. 28.75 crore. These investments were made as part of routine treasury operation in what seemed like perfectly legal investment options, it said.“Hero Group is disappointed to learn that it has become a victim of the fraud under question”, the statement said. The Hero group is taking action and has also initiated dialogue with relevant authorities and Citibank to recover its dues. It also clarified that Hero Honda Motors Ltd, a part of the Group, has no involvement in any of these investments. |
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RBI starts probe
Chandigarh, December 31 He was replying to a query on whether the RBI had initiated any probe in the multi-crore Citibank scam. Acknowledging that RBI has stepped in with regard to Citibank fraud, he said that either the RBI Governor or the Deputy Governor would make a statement shortly relating to the scam. “Any transaction related to bank certainly we are concerned..most probably RBI Governor or Deputy Governor will issue statement today or tomorrow in this regard,” Gopalakrishna who was here to attend a financial inclusion programme said. The Rs 300 crore fraud had been detected in Citibank’s branch in Gurgaon. The accused, Shivraj Puri, who is the bank’s relationship manager had been arrested in this connection. He allegedly sold investment products to High Networth Individuals claiming they would generate very high returns. According to the Police, Rs 200 crore belonged to corporates including Hero Group and Rs 100 crore to individuals. “Some of the Hero Group entities, along with some others, are victims of the fraud conducted through one of the Citi branches in Gurgaon,” the Group said in a statement earlier in the day. An enquiry is in progress and the next steps will be decided post enquiry, it said. It is also alleged that Puri showed a forged notification of market regulator Securities and Exchange Board of India for obtaining funds from customers.
— PTI |
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CFO grilled
Gurgaon, December 31 Brijmohan Lal Munjal-led Hero Group, meanwhile, admitted today that its exposure to the fraud allegedly done by Citibank's Gurgaon branch Relationship Manager Shivraj Puri is to the tune of Rs 28.75 crore and it was done through its entities. Hero Corporate Services Ltd CFO Sanjay Gupta and senior officials of the brokerage firms Religare and Bonanza were called by the police to ascertain the money trail into the whole episode. Gurgaon Police Commissioner SS Deswal said that Gupta was called as part of investigations as a major chunk of the money has gone into brokerage
firms--Religare and Bonanza-- whose officials were also called for questioning.
— PTI |
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Jet, Kingfisher air tickets to cost more
New Delhi/Mumbai, December 31 As global crude prices touched $90 dollars a barrel, state-owned oil firms hiked jet fuel prices from midnight tonight by almost 2 per cent, the sixth straight increase in rates since October. The two airlines today increased their fuel surcharge by Rs 100 for travel up to 750 km and Rs 200 for flights covering a distance of over 750 km. A Kingfisher spokesperson told PTI that the increase in fuel surcharge was necessiated due to the recent hikes in the jet fuel prices. To reflect the recent multiple increases in aviation turbine fuel, the spokesperson said Kingfisher has raised the fuel surcharge on domestic flights from today. Though Jet Airways officials did not confirm the hike, the necessary changes were made on their website. There was no comment from national carrier Air India on the issue. The rise in airfares through a hike in fuel surcharge came in the backdrop of over 25 per cent increase in October- November which saw the Civil Aviation Ministry stepping in and aviation regulator DGCA asking airlines to lower the ticket prices and ensure transparency. ATF rates in Delhi have been hiked by Rs 935 per kilolitre, or 1.99 per cent, to Rs 47,816 per kl from midnight tonight.
— PTI |
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Re ends 2010 on high note, up 26 paise
Mumbai, December 31 Extending the gains for the fourth straight day, the rupee strengthened by 26 paise to close at 44.70/71 a dollar. In fairly active trade at the Interbank Foreign Exchange (Forex) market today, the local unit opened higher at 44.89/90 a dollar from yesterday's close of 44.96/97 but immediately touched the day's low of 44.95. However, sustained rise in domestic stocks helped the rupee to rebound to a high of 44.6550 before concluding the day at 44.70/71 a dollar, a net gain of 0.58 per cent. Sustained dollar selling by exporters and banks as well as weak dollar overseas too boosted the rupee sentiment, dealers said.
— PTI |
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Registrations begin for cotton exports
New Delhi, December 31 The Directorate General of Foreign Trade in the Commerce Ministry has started accepting applications for new registrations, which will be continued till January 6, an official said. Of the 5.5 million bales (of 170 kg each) permitted for the current season, exports have already been transacted for three million cotton bales. A group of ministers had allowed 5.5 million bales for exports during the cotton season 2010-11 (October-September), but exporters failed to ship the entire quantity after unseasonal rains delayed arrivals in the spot market. The entire shipment quota was to be completed by December 15, 2010. The government later decided to give exporters more time to ship the balance cotton. Registration certificates would be issued for up to 1,00,000 bales of cotton on a
single application. Disruption in production of the natural fibre in major growing countries like the US, China and Pakistan due to adverse conditions has pushed the demand for Indian cotton in the international market. India is likely to produce more than 325 lakh bales (170 kg each) of cotton in 2010-11, higher than last year's 295 lakh bales.
— PTI |
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Kodachrome retires at 75
New York, December 31 Dwayne’s Photo, a small family business in a small prairie-bound city of Parsons in Kansas, was the last place in the world where Kodachrome could be processed and developed. Kodak announced in June 2009 that it would stop making the chemicals needed for the process, but had committed to supply Dwayne's until the end of 2010. The machine yesterday was finally shut down to be sold for scrap. After its launch in 1935, Kodachrome became the first commercially successful colour film, but the rise of digital cameras has meant sales have declined sharply. “Demanding both to shoot and process, Kodachrome rewarded generations of skilled users with a richness of colour and a unique treatment of light that many photographers described as incomparable even as they shifted to digital cameras,” The New York Times reported. Before the unit was shut down, dozens of nostalgic visitors and thousands of overnight packages have visited Dwayne's Photo. Bharat Nathwani, 65, a Los Angeles pathologist, lamented that he still had 400 unused rolls. "I might hold it, God willing that Kodak sees its lack of wisdom." "It's more than a film, it's a pop culture icon," said Todd Gustavson, a curator from the George Eastman House, a photography museum in Rochester in the former residence of the Kodak founder. "If you were in the postwar baby boom, it was the colour film, no doubt about it." For all of its magic, Kodachrome is a complex film to manufacture and an even more complex film to process, Kodak said. The film's reaction to light and treatment of colour meant its images had a unique depth and contrast. Pictures such as Steve McCurry's portrait of an Afghan Girl, used on the front of National Geographic Magazine in 1985, have ensured its prolonged popularity, London-based The Telegraph said. At the peak, there were about 25 labs worldwide that processed Kodachrome, but the last Kodak-run facility in the US closed several years ago, then the one in Japan and then the one in Switzerland. Since then, all that was left has been Dwayne’s
Photo. — PTI |
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ICICI Bank, 2 others raise lending rates
New Delhi, December 31 The revision will make corporate and consumer loans, including those for homes and auto, expensive for new borrowers. Besides ICICI, private sector lenders Kotak Mahindra Bank and Dhanlaxmi Bank also increased base rates. ICICI Bank has announced an increase of 0.5 per cent in the Base Rate with effect from January 3. The revised rate will be 8.25 per cent as against 7.75 per cent at present, the bank said . It said that with effect from July 1, 2010, interest rates on new loans and advances, including consumer loans, are determined with reference to base rate.
— PTI |
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External debt up 12.8%
New Delhi, December 31 According to a Finance Ministry statement, external debt stood at $262.3 billion at the end of March 2010 and increased by $33.5 billion during the April-September period. In fact, rupee appreciation led to rise in external debt by USD 6.3 billion, or 18.8 per cent of the total increase, during the period. The long-term debt rose by 9.5 per cent to $229.8 billion, while short-term debt increased by 25.8 per cent to $66 billion during the first half. Amongst the components of long-term debt, which accounted for nearly 80 per cent of the total debt, the share of commercial borrowings stood at 27.8 per cent.
— PTI |
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Oil trade dispute with India solved, says Iran
Tehran, December 31 “By changing the currency for oil transaction between Iran and India the problem was solved,”said Khaledi. However, sources in the Indian industry said that talks had not been
resolved and would continue. — Reuters |
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The government will slap a 60 per cent import tax on sugar from January 1, a government source said on Friday, reflecting good output prospects from the world's top consumer of the
sweetener. India, the top producer of sugar behind Brazil, had dropped a 60 per cent import tax in early 2009 to overcome an acute domestic supply shortage, triggered by the worst drought in four decades.
New York, December 31
