The Tribune, Chandigarh, India

	Investors lose over Rs 1.2 lakh cr in a day Huge losses seen in blue-chip stocks like RIL, ITC and TCS Mumbai, February 4 The downslide on bourses today wiped off over Rs 1,22,000 crore from the market wealth, including that of company promoters and public investors, as huge losses were seen in blue-chip stocks like RIL, ITC and TCS. The stock market today plunged sharply with a 441-point fall in the benchmark Sensex, as growing concerns over inflation and rising interest rates led to fears that companies' profitability could be hurt due to surge in raw material prices as also borrowing costs. In the process, the total investors' wealth, measured in terms of cumulative market valuation of all the listed stocks, fell by Rs 1,22,129 crore in a single day to stand at just over Rs 65,00,000 crore at the end of the trading session. This level of investors' wealth was last seen in July 2010 and the overall market valuation has now fallen by over Rs 12,00,000 crore since Diwali on November 5, 2010. On the Diwali day, the Sensex had scaled its record high closing level of 21,004 points, while the total investors' wealth had surged past Rs 77,00,000 crore. Out of the total loss recorded today, the value of promoters' holding in the market plummeted by an estimated Rs 70,000 crore, while the public shareholders lost over Rs 50,000 crore. The public shareholders lost a cumulative amount of more than Rs 35,000 crore in 30 blue chip stocks alone, which constitute the benchmark index Sensex. The promoters' holding in the 30 Sensex stocks fell by over Rs 25,000 crore. Among the biggest stocks, Reliance Industries lost close to Rs 7,800 crore from its market worth, including a loss of Rs 4,300 crore from the value of public shareholding. — PTI
	Cairn-Vedanta deal Govt keeps ONGC out of crucial meet New Delhi, February 4 The government has kept state-run ONGC out of the much-talked about February 6 meeting called to deliberate on approval for the Vedanta Resources' $9.6 billion acquisition of Cairn India. Bill Gammell, CEO of Cairn Energy Plc, which is selling most of its 62.4 per cent stake in the Indian unit to Vedanta, and Cairn India CEO Rahul Dhir will be attending the meeting while Vedanta would be represented by its CEO MS Mehta and CFO Tarun Jain, sources privy to the development said. ONGC, which has stake in most of the 10 oil properties held by Cairn India, including its mainstay Rajasthan block, and has asked government not to approve the sale unless its concerns are addressed, has not been invited for the meeting. The meeting may be stormy as Omkar Goswami, independent director on Cairn India who is part of a two-member committee of independent directors constituted to look into the interest of minority shareholders in the proposed stake sale, would also be present, sources said. The government is prepared to give approval to the deal subject to Cairn/Vedanta meeting certain conditions, including agreeing to ONGC's demand for recovering the Rs 14,000 crore royalty the state firm will have to pay over and above its 30 per cent share from the Rajasthan fields, from sale of oil. Acceptance of the demand would impact Cairn India's valuation as its future profits will go down. Vedanta in a January 28 letter has already sounded oil ministry about it being "challenged by Cairn India's minority shareholders." While ONGC has been kept out of the meeting, Vedanta has been invited for deliberations even though the London-listed mining group has clearly stated that it cannot agree to any condition as it will be "merely a shareholder" of Cairn India after completion of the transaction, the source said. — PTI
	RCF rolls out coaches for Duranto train Bipin Bhardwaj Tribune News Service Kapurthala, February 4 The Rail Coach Factory (RCF) here rolled out 15 coaches for country’s first jerk-free Duranto train to be run on the Mumbai-Secunderabad section last evening. To ensure comfortable journey by the Duranto train, the RCF has manufactured first rake of 15 coaches fitted with Tight Lock Centre Buffer Couplers (TLCBC) imported from Sweden, disclosed Charanjit Singh, Chief Engineer (Mechanical), RCF. RCF Chief Engineer (Design) Ravi Kochak put in his efforts to overcome the problem of jolts in these coaches after receiving a feedback of jerks in Shatabdi, Rajdhani and other Duranto trains. Kochak claimed that the coaches would reach Secundrabad in the next three days and would be put on trial by Research Development and Standard Organisation (RDSO) for three weeks prior to putting into final service. The RCF would also roll out another nine coaches (jerk-free) in coming days and the same would be sent to Secunderabad. He, however, added that during a trial, the railway officials from Secunderabad observed that these coaches were more smooth and comfortable as compared to the coaches of Shatabdi and Rajdhani trains. The RCF has imported 60 couplers with double cushion fitted on both ends of the coach. Kochak said the couplers are used in high-speed trains abroad and were tested by the RDSO in Sweden too. “If the experiment proves successful, the old couplers of all Shatabdi and Rajdhani trains will be replaced with the new design couplers,” he claimed. The cost of one coupler is Rs 2 lakh. He said a Sweden-based company has set up a plant in Chennai to fulfil the demand of the couplers.
	Britain woos Indian industrialists London, February 4 Wooing Indian investments, British Prime Minister David Cameron has said the UK is one of the easiest places to do business and raise capital. "Britain is one of the most open economies in the world, one of the easiest places to come and invest, to come and do business, to come and own a business, to come and raise capital and we want to make it even more open, even more welcoming," Cameron told a forum of business leaders of the UK and India here yesterday. Speaking at the first meeting of the India-UK CEO Forum at Number 10, Downing Street he said, "This is for me to listen to what the CEOs are saying about what needs to change in Britain to make us more attractive and what needs to change in India to increase the flows of investment both ways." He added that the India-Britain relationship is strong, "but could be much, much stronger". The British Prime Minister accompanied by a large business delegation had visited India in July last year. Addressing the forum, Tata group Chairman Ratan Tata said the UK-India trade and investment relationship has significant unrealised potential. "However, I feel our trade and investment relationship has significant unrealised potential given the synergies possible between the two countries - such as what we could achieve by leveraging the technology and manufacturing capabilities in the UK, to serve the global market," he said. — PTI
	‘India, UK trade potential untapped’ London, February 4 The UK-India trade and investment relationship has significant unrealised potential, given the synergies possible between the two countries, Tata Sons Chairman Ratan Tata has said. Speaking at the first meeting of the India-UK CEO Forum yesterday at Number 10, Downing Street, Tata said: “The UK has a special place in the hearts and minds of Indians and Indian industry. However, I feel our trade and investment relationship has significant unrealised potential given the synergies possible between the two countries — such as what we could achieve by leveraging the technology and manufacturing capabilities in the UK, to serve the global market,” he said. Tata, who is also the co-chair of the forum, said he hoped the UK-India CEO Forum “is able to help build trade and investment between the two countries to a level approaching its potential and we intend to look at a range of sectors and ideas on how this could be facilitated by government and industry from both countries, working together.” Bilateral trade between India and the UK amounted to over 11 billion pounds in 2009. Last year, exports from the UK to India increased by 38 per cent vis-a-vis the previous year, while 17 per cent of India's exports to the EU went to the UK. There are around 700 Indian companies with investments in the UK and the UK garners more than 50 per cent of Indian investment into Europe.— PTI
	Banks directed to focus on financing farm equipment Ruchika M. Khanna Tribune News Service Chandigarh, February 4 The future policy on farm mechanisation will focus on financing of specialised post-harvest equipment and machines. The move will not only help in reducing the crop loss and give value addition to agriculture produce, but also give a fillip to the farm equipment financing by banks. The policy, which was discussed during the state credit seminar for Punjab held here recently, will also help in promoting diversification in agriculture. With the central and state governments now focusing on diversification from cereal-based to horticulture and other high-value commercial crops, the demand for post-harvest equipment is likely to increase. It is learnt that Nabard has informed all banks that various farm implements like multi-crop thresher, seed drill, rotavator bed planter, tractor-mounted sprayer, potato digger, caster thresher, sugarcane cutter planter and reaper binder (including with cutter bar), have now been included for financing by banks. This would mean good business opportunity for banks as well, especially in Punjab, where there has been a decline in financing farm equipment. While releasing the projections for financing during the coming fiscal, Nabard has estimated that at least 50,287 units of this post-harvest equipment would be required for financing in the state, which in turn would require a bank loan of Rs 47,204.14 lakh. Farm mechanisation in the state has essentially been only about tractors. The major farm machinery in Punjab is tractors (4.92 lakh), threshers (3.50 lakh), power tillers (3 lakh) and cane crushers (25,000). But now there has been saturation in farm mechanisation because of ineffective use and poor off-farm custom hiring works. Nabard has also asked banks to finance tractors only to farmers groups/cooperatives, while undertaking credit counselling of farmers and encouraging them to go in for group loans. It has also asked banks to exercise caution while financing second-hand tractors after taking into account the useful economic life left of a tractor before working out a repayment schedule. It is estimated that 22,248 tractors (including second- hand and refurbishment) would be required in the state in 2011-12, having a credit requirement of Rs 82,899.29 lakh.
	Film industry meets FM with Budget wish-list Tribune News Service New Delhi, February 4 The film and cinema industry today requested the government not to levy multiple taxes on the sector and facilitate the sector’s digitalisation though fiscal incentives. A delegation of the media and entertainment industry met Finance Minister Pranab Mukherjee along with Information and Broadcasting Minister Ambika Soni. The delegation submitted its recommendations for the Budget. Later, in a press release, the FICCI said it had also suggested to the finance minister to grant 10-year tax holiday to animation, visual effects, gaming and comic sector. Countervailing duty levied on unexposed cinematographic films should also be withdrawn. FICCI also suggested that VAT and service tax should not be levied simultaneously on copyright services to avoid multiple taxation. Tax Deduction at Source (TDS) computed on income accrued from film production should be done away with and the entertainment tax should be rationalised and made uniform across all states. The industry also demanded that entertainment tax be moved to the Concurrent list. The industry said cable industry must be granted infrastructure status. Customs duties on set top boxes should be minimised to bridge and tax holiday should be provided for its manufacture. Custom duty on digital equipment should be brought to zero.
	TRAI asked to evolve new norms on mobile interconnectivity New Delhi, February 4 The Supreme Court today directed the Telecom Regulatory Authority of India (TRAI) to evolve a new set of revenue sharing norms and other regulations on interconnectivity among operators for carrying calls of one network to others. A bench of Chief Justice S H Kapadia asked to bring the new Interconnect Regulation on Mobile termination charges and carriage charges within 4 months of consultations with stake holders. The bench, which also included justices KS Radhakrishnan and Swatanter Kumar, asked TRAI to evolve the new norms and regulations as per the directives of sectoral tribunal, Telecom Disputes Settlement and Appellate Tribunal (TDSAT). — PTI
	Gurdaspur MP wants a Sikh to head P&SB Tribune News Service Chandigarh, February 4 Gurdaspur Member Parliament Partap Singh Bajwa has appealed to Prime Minister Manmohan Singh to appoint a Sikh as the Chairman and Managing Director (CMD) of the Punjab and Sind Bank. In a letter to the Prime Minister Bajwa added that the PMO’s query on why the post should be reserved for a Sikh had shocked all communities, including the Sikh The MP said the bank has been functioning without a CMD for six months. He added the government should stick to the principle of appointing a Sikh as its CMD according to the prevalent practice. He said this was justified due to the bank’s distinct geographical presence and the service the institution rendered to the minority community. Bajwa requested the PM to fill up the vacancy immediately and end speculation.
	Corporate Results Cipla net dips 19.5 per cent New Delhi, February 4 Drug firm Cipla Ltd today said its net profit declined by 19.49 per cent to Rs 232.69 crore for the third quarter ended December 31, 2010, primarily due to high expenses at its Indore plant and rupee appreciation. Total income of the company rose to Rs 1,579.36 crore for the third quarter, compared to Rs 1,456.34 crore in the same period previous fiscal. Air India posts operating surplus Air India today said it has posted an operating surplus for the second month in a row with flights to 106 out of 179 destinations registering cash profit in December. The ailing national carrier posted Rs 49.48 crore worth of operating surplus as against Rs 21.66 crore in November, an Air India spokesperson said. Hindustan Copper State-run Hindustan Copper today reported 69 per cent jump in net profit to Rs 80.72 crore for the December quarter on high prices of the metal amidst global demand-supply mismatch. Net sales dipped to Rs 307.17 crore from Rs 322.97 crore in the same quarter last fiscal. ING Vysya Bank Private sector lender ING Vysya Bank today reported a 37.02 per cent increase in its net profit to Rs 83.01 crore for the quarter ended December 31, 2010. The bank's total income, however, declined to Rs 857.51 crore in the third quarter of 2010-11, from Rs 873.25 crore in the year-ago period. — PTI