The Tribune, Chandigarh, India

	Oil crisis to have policy implications: FM New Delhi, March 5 Finance Minister Pranab Mukherjee today apprehended rising oil prices following political turmoil in West Asia will have serious policy implications but expressed optimism of dealing with the situation. For a country which imports two-thirds of its crude oil requirement through imports, spurt in rates may spell bad news as the Government will have to make a tough choice between shelling out more subsidy and passing the rise to consumers. “...fragility of recovery of world economy, uncertainty created because of political unrest in West Asia and North Africa have serious implications for Indian policymakers,” Mukherjee told reporters after addressing the RBI board here. Though he refrained from describing the volatility in crude oil prices as ‘explosive’, the Minister said it was ‘deepening the uncertainty’ in the global economic recovery. His comments come at a time when international crude prices have soared above $116 per barrel on account of the political unrest in parts of West Asia and North Africa, including Libya, a major oil exporter and OPEC member. For 2011-12, the finance ministry has estimated Rs 23,640 crore in oil subsidy, lower than Rs 38,386 crore for current fiscal. The government will be required to shell out more money in case the prices rise continues. India’s oil imports grew 7.8 per cent to $7.85 billion in January, taking the import bill during April- January, 2010-11, to $79.95 billion. “I shall assure you, in consultation with RBI, as we have overcome the financial crisis from the mid-1980s, I am confident that we will be able to face the challenges,” Mukherjee said. — Agencies “There is problem of whether the sovereign debt crisis ...(in some countries of) Euro Zone would confine within the countries or it will have its adverse impact in the rest of Europe,” he said. Fast economic recovery in European Union is of great significance for India as the 27-nation bloc accounts for about one-third of its exports, besides source of substantial foreign direct investment. “Rapid and robust recovery of Europe is important for our own,” the minister added. ernment will be required to shell out more money in case the prices rise continues. India’s oil imports grew 7.8 per cent to $7.85 billion in January, taking the import bill during April- January, 2010-11, to $79.95 billion. “I shall assure you, in consultation with RBI, as we have overcome the financial crisis from the mid-1980s, I am confident that we will be able to face the challenges,” Mukherjee said. “There is problem of whether the sovereign debt crisis ...(in some countries of) Euro Zone would confine within the countries or it will have its adverse impact in the rest of Europe,” he said. Fast economic recovery in European Union is of great significance for India as the 27-nation bloc accounts for about one-third of its exports, besides source of substantial foreign direct investment. “Rapid and robust recovery of Europe is important for our own,” the minister added.
	Borrowings will not hit credit flow New Delhi, March 5 Finance Minister Pranab Mukherjee today assured the industry that the government’s market borrowing programme of Rs 4.17 lakh crore for 2011-12 will not disrupt credit flow to the private sector. “I can assure that our borrowing programme, in consultation with RBI, will be in such a manner that there would be no problem for the private sector,” Pranab Mukherjee told reporters here today after meeting the Central Board of Directors of the Reserve Bank of India. The government has lowered its market borrowings target to Rs 4.17 lakh crore for 2011-12 against Rs 4.47 lakh crore estimated in the current fiscal. Experts feel lower government borrowings will have a positive impact on the private sector credit needs.— PTI
	Expanded infrastructure sector list in month New Delhi, March 5 The government today said it proposed to expand within a month the list of industries that will qualify for infrastructure sector related benefits as several businesses like retail and reals estate are seeking the status. “We are close to identifying sectors which are to be brought under infrastructure. We are close to getting that cleared...may be with in a month,” Economic Affairs Secretary R Gopalan said during an industry interaction organised by CII. Besides income tax exemptions, an industry counted in the infrastructure sector, is allowed to borrow funds from overseas. They are even provided easy credit in the domestic banks. The country's poor infrastructure, which is seen a major bottleneck for economic growth, requires an investment of a whopping $1 trillion in the 12th Plan, beginning year 2012 -17. Currently, power, road, ports and industrial parks are among some of the segments that have been included in the infrastructure sector. Retail, real estate and health are the major sectors that are demanding the tag.— PTI
	NALCO approves stock split, issues bonus shares Bhubaneswar, March 5 The National Aluminium Company Limited (NALCO) today said it is going for capital restructuring by splitting its equity share of Rs 10 into two equity shares of Rs 5 each. The company approved 1:1 bonus, that is one bonus share for each share held. The decision was endorsed in an Extraordinary General Meeting of shareholders held here today. “By enhancing the number of shares and reducing the price for each share, the float and liquidity of the share shall be enhanced in stock exchanges,” NALCO Director (Finance) & CMD in-charge B L Bagra NALCO, said. "This is also expected to increase the total market capitalisation and enhance value to the shareholders," Bagra added. NALCO's paid-up capital of Rs 644.31 crore now stands enhanced to Rs 1,288.62 crore, without any cash consideration, company sources said. The company has also decided to amend the Article of Association, to make a provision for issue of Employees Stock Options (ESOP), that is shares to its employees, they said. The ESOP is planned to be issued to the executives of the company as part payment of dues to them under Performance Related Payment (PRP), a component of revised pay package. The detailed scheme of ESOP, including price, is however yet to be finalised, sources said. — PTI
	Investor Guidance PPF a/c rules clarified by AN Shanbhag Q: I had opened a PPF account in March 94, which matured in March 2010, with a balance amount of Rs 4 lakh. I was told by the bank official that this amount will earn 8% interest an year till I close the account by March 2011. Accordingly I applied for the closure of my account 23/2/11, as I needed this money for making the payment for the house I had purchased. My account was closed but I was given only Rs 4 lakh and no interest for the period from April 10 to January 11. I was not aware of this rule. The Bank says that nothing can be done and the account stands closed. Can you suggest the best course of action? — K K Goyal A: As per Sec. 9(3) of PPF Act, at its maturity, a PPF account can be continued for a block period of 5 years, with or without contribution. A subscriber, continuing his account with fresh subscriptions, can withdraw up to 60% of the balance to his credit at the commencement of each extended period in one or more installments, but only one per year. On the other hand, the balance can be merely retained in the account without contribution till it is needed. Any amount, in part or full, can be withdrawn in instalments, not exceeding one in a year. The balance will continue to earn interest till it is completely withdrawn. It is unfortunate but true that account officers do not have knowledge of the PPF Rules. This causes a lot of harassment to the account holders who are forced to make several trips to the office. Ultimately the problem gets solved but a lot of valuable time of the officers, leave alone the time of the account holders, is wasted. You will do well to convince the officers at your bank that you are eligible for the interest. In case they refuse, you should approach the nodal office of the bank.
	Aviation Notes Questions persist over conduct of AI officials by KR Wadhwaney The timing of the resignation of three officials - Gustav Baldauf, Stefan Sukumar and Pawan Arora - says it all. All three are said to have resigned as they “felt suffocated” after the Minister of State for Civil Aviation Praful Patel was replaced with V Ravi. Baldauf was Air India’s COO, Sukumar was the chief of training and Arora was AI Express’s COO. The three individuals were being paid Rs 2 and Rs 3 crore a year each. They were getting more salary and perks than the CMD Arvind Jadav. Jadhav had protested and complained at the high-handedness of these officials. In the appointment of three officials and their resignation, questions have risen: 1.Who appointed them? Why were they appointed? Did they deserve the salaries and perks paid? Were they answerable to the CMD or they were answerable to only the minister? What were their achievements for the airline? 2. Now that the individuals have resigned, the airline will save around Rs 10 crore a year. This money should be used to revive the airline. The staff of the national carrier say that a probe should be instituted in their appointment. CIC wants flight diversion details The Central Information Commission is pressing Alliance Air to reveal details on how and why a scheduled flight was diverted to ferry players and others during the Indian Premier League (IPL) last year. It is alleged that the flight was diverted at the behest of a politician’s family with links to the organisers. Due to political pressure, Alliance Air aborted the Delhi-Coimbatore flight causing losses to the airline and also causing inconvenience to 75 passengers. Reports added that an empty aircraft flew to Chandigarh and picked up the Chennai-bound players. RTI officials are seeking transparency in the functioning of the carriers. Interesting facts will tumble out if a dispassionate probe is instituted.