The Tribune, Chandigarh, India

	Resource allocation process must be competitive: CII New chief outlines 5-pronged strategy for 10% growth Sanjeev Sharma Tribune News Service New Delhi, April 25 New CII President B Muthuraman has said that to sustain the country’s growth rate, the process of allocation of natural resources should be made transparent and competitive. He has also called for improvement in quality of governance. Muthuraman, who is also the MD of Tata Steel, was addressing his first press conference as CII chief. The remarks will add to the huge debate in the country over the graft and discretionary powers of the government in allocation of natural resources like land, mines, mineral blocks, gas reserves - among others. Muthuraman said that enhancing transparency, efficiency and sustainability in allocation and pricing of natural resources would be of pivotal importance. He added simplification of rules and procedures for transparent operations, reforming police, judicial and electroral politics was necessary for improving governance, he added. CII has outlined a 5-pronged strategy for 10% growth focused on fast track implementation of 100 mega projects, targeting manufacturing growth at 12%, creating a common market, improving investment climate and better mechanism for allocation of natural resources. A code of conduct would be developed on integrity and transparency members would be encouraged to adopt the code. A CII task force on integrity and transparency in governance, chaired by Adi Godrej, president-designate, CII was to lead the industry body’s efforts in this area. The CII chief said it was important to have a prioritised focus on affirmative action, employability and governance. Future growth is expected from the bottom of the pyramid and faster inclusive growth and development is pivotal for sustaining high GDP growth. Emphasising the need for affirmative action, Muthuraman said that the CII Code of Affirmative Action had received an encouraging response and that the experience so far would help scale this number to 2,000 in the coming year. The CII body would be encouraged to conduct a Biennial Diversity Survey, persuade CII members to disclose affirmative action efforts and institute CII awards for SC/ST entrepreneurs and industry members, who have excelled in affirmative action efforts. Improving investment climate was presented as another major area of reform that needs attention, as India is still perceived as a difficult place for doing business, observed the CII President. He announced setting up of CII- State Government taskforces to work on improving investment climate as several state government laws and procedures create regulatory hassles and inhibit investments, he added. This year, six states would be covered and would be scaled up to cover other states in the coming years.
	RIL told to stop KG gas supply to non-core users New Delhi, April 25 Admonishing the defiant Reliance Industries, the Petroleum Ministry has ordered the Mukesh Ambani-run firm to immediately stop natural gas sales to non-core users like Essar Steel. Citing the May, 2010, Supreme Court ruling that upheld the government’s right to frame gas utilisation policy, the ministry last week wrote to Reliance directing it to first supply natural gas from its KG-D6 fields to priority sectors like fertiliser and power, official sources said. Reliance is producing around 50 million cubic metres a day of gas from its eastern offshore KG-D6 gas block, just enough to meet contracted demand of priority sectors - urea manufacturing units, power plants, LPG extraction plants and city gas distribution companies. It had refused to abide by the ministry's previous order that wanted the fuel to go to sectors like steel, refineries and petrochemical only if there was any gas left after meeting demand of core sectors. Non-core sponge iron plants, petrochemicals units and oil refineries have cornered 13.13 mmscmd out of the 60.76 mmscmd of KG-D6 gas that the government had allocated in 2008 and 2009. With production dipping to around 50 mmscmd, a worried Oil Ministry wanted the fuel to first go to core sectors. But Reliance has refused to follow the dictat and has continued to follow the July, 2010, policy of pro rata allocation, translating into proportionate cuts in supplies to all consumers, including urea-making plants and electricity generation units, they said. — PTI
	Investors turn to silver for better returns White metal breaches Rs 74,000 mark Ruchika M. Khanna Tribune News Service Chandigarh, April 25 The zooming prices of silver over the past 45 days has led to a ‘silver rush’ among investors. With the metal continuing its winning streak today, backed by global cues and aggressive buying by speculators, many small investors are now diversifying their investment portfolio by investing in silver. Silver prices today touched a new high of Rs 74,600 per kg, an increase of Rs 2,300 per kg. Silver coins, too, touched record levels of Rs 80,500 per 100 pieces (for buying) and Rs 81,500 for selling. The rally in silver has been continuing for almost two months now. However, in the last seven trading sessions, silver has gained Rs 11,000 per kg. Amar Singh, head, Commodities and Currencies, Research and Business Development, Aditya Birla Money, said that silver had outperformed gold in giving returns. He added its cheaper price compared to gold had also contributed to its attraction. “In 2005, gold was trading at Rs 6,000 per 10 gm and silver at Rs 10,000 per kg. Now, gold is trading at Rs 22,380 per 10 grams, while silver prices have breached the Rs 74,000 mark today. This has certainly led to an increase in investors’ appetite for silver,” he said, adding that they would still advise investors to tread with caution. The high prices have also meant that the metals have gone out of the common man’s reach. Hence, speculators have now started looking at silver as an investment option, leading to a spurt in volumes of silver being traded on the commodity exchanges as well. However, there is hardly any physical purchase made by the retailers and investors. Naveen Mathur, associate director, commodities and currencies, Angel Broking, said, “Its not just that the bigger lots of silver (30 kg each) that are being traded, but mini lots of 1 kg each too are being traded. The contract for May is already touching Rs 71,600 levels, which makes it an attractive option,” he said.
	Maruti declares 150 pc dividend Tribune News Service New Delhi, April 25 Riding high on increased income, the country’s largest car maker Maruti Suzuki India Ltd (MSIL) today announced a 150 per cent dividend for its shareholders. As the total income from operations during the fourth quarter ending March 31, 2011, increased by 18.93 per cent to Rs 10,092.18 crore from Rs 8,485.83 crore in the same period previous fiscal, the Indian arm of the Japanese carmaker Suzuki Motor Corp raised the dividend by 30 per cent from the previous year dividend of 120 per cent. The company, however, reported a marginal rise in its net profit for Q4 of the last fiscal at Rs 659.86 crore. The company had posted a net profit of Rs 656.55 crore in the corresponding quarter of 2009-10 fiscal. During the quarter, the company's total automobile sales stood at 3,43,340 units compared to 2,87,422 units in the year-ago period, up 19.46 per cent. Due to the apparent increase in input costs and fall in exports for the entire 2010-11 financial year, MSIL's consolidated net profit declined by 9.23 per cent to Rs 2,382.37 crore from Rs 2,624.64 crore in FY10. The consolidated total income from operations during the last fiscal went up by 24.75 per cent to Rs 37,578.48 crore from Rs 30,122.51 crore in 2009-10. The company sold a total of 12,71,005 vehicles in FY11 as against 10,18,365 units in the previous fiscal, up 24.81 per cent. The exports for the year have fallen by six per cent, affected by the uncertain economic conditions of Europe and that the Japan crisis has not quite affected the company's operations. Meanwhile, Shares of Maruti Suzuki India rose by over 1 per cent on the BSE, after the company reported a marginal rise in net profit for the quarter ended March 31, 2011, at Rs 659.86 crore. The scrip of the country's largest car maker, settled higher by 1.53 per cent at Rs 1,326.55 on the BSE. In intra-day trade, the stock went up by 2.17 per cent to touch a month's high of Rs 1,335. On the NSE, Maruti Suzuki's shares closed with a gain of 1.38 per cent at Rs 1,325. — PTI
	DB Realty appoints additional directors Mumbai, April 25 Real estate company D B Realty today said it had appointed Krishna Murari Goenka and Usman Balwa as Additional Directors of the company with effect from April 21, 2011. In a filing to the Bombay Stock Exchange, D B Realty said, "The Board of Directors of the company at a meeting held on April 21 has appointed Krishna Murari Goenka (Father of Vinod Goenka, Promoter) and Usman Balwa (Father of Shahid Balwa, Promoter) as Additional Directors of the company with effect from April 21.” Further, the company has also taken on record in the same meeting the resignation of Michael McCook, from directorship of D B Realty, it said. Meanwhile, a Delhi Court had on April 20 rejected the bail pleas of five corporate executives, including Swan Telecom Director Vinod Goenka, named by CBI as one of accused in the 2G scam. Following the court order, all the five executives were arrested by the CBI and taken to Tihar Jail in the national capital. D B Realty had said its managing director Vinod Goenka not getting bail in the 2G spectrum scam will not have any impact on company's operations. Swan Telecom (Etisalat DB) is a joint venture between DB Realty and UAE-based Etisalat. DB Realty's former managing director Shahid Balwa is already in Tihar jail in the 2G spectrum case. — PTI
	Mauritius offers to be business platform between India, Africa Port Louis, April 25 Mauritius today said it could become a launching pad for India’s business interests in the African continent as President Pratibha Patil met the island nation’s Prime Minister Navinchandra Ramgoolam here. “We believe that Mauritius can be used as a business platform between India and Africa,” Ramgoolam said after his meeting with Patil. Describing the meeting with Patil as ‘productive’, he said ‘both sides discussed several issues of common interests’. Mauritius accounts for over 40 per cent of FDI into India. The offshore sector in Mauritius has proven to be an important source for routing of FDI into India, largely because the Double Taxation Avoidance Convention (DTAC) between the two countries gives considerable advantage (particularly in terms of Capital Gains tax liability) to investors using the ‘Mauritius route’ for investing into India. As per the Department of Industrial Policy and Promotion, during the period 1991 to 2008 FDI inflows from Mauritius to India was $32.65 billion, amounting to 44 per cent of the total FDI into India over this period. Mauritius was the single-largest source of Foreign Direct Investment into India during the period April 2008 to February 2009, with FDI inflows from Mauritius to India amounting to $10.1 billion. Patil said she was happy that a business delegation from India will be joining her to explore opportunities in Mauritius. “I look forward to my participation in the Business Meet during my stay here, to listen to views from the captains of industry from both sides, and encourage them to participate in our bilateral economic exchanges,” she added. — PTI
	I-T Dept seeks additional 22k staff New Delhi, April 25 To provide teeth to the investigation against black money, Income Tax Department hit by staff shortage today said it has sought an additional 22,000 staff to strengthen its various operations Besides, the tax department will redeploy its existing manpower towards intelligence gathering, investigations and prosecutions. The Central Board of Direct Taxes (CBDT) is restructuring its organisational structure to focus on scrutiny of high value tax cases, a senior finance ministry official said. “We have asked for an additional 22,000 staff in different cadre to strengthen our investigations and intelligence,” the official said. Currently, the CBDT is operating with a staff of about 47,000 against the sanction of 58,000. As such, with computerisation and increasing trend of e-filing of I-T returns, staff engaged in scrutiny of forms and other related task, will have time to focus on investigations and intelligence gathering and help in tracking blackmoney. In India, on an average one IT official scrutinises 150-200 returns against international best practices of 60 cases Earlier, the scrutiny of I-T returns was done on basis of proposals by assessing officers. However, with computerisation in the last 10-years, manual selection has been replaced by Computer-Assisted Scrutiny System (CASS). “The I-T department is witnessing an increasing number of new methods used by various entities to hide their income, generate blackmoney and even launder funds to foreign location,” the official said adding that is why we need more people, including officers. — PTI
	FinMin to meet PSU bankers today New Delhi, April 25 The Finance Ministry will hold annual performance review of public sector banks here tomorrow to discuss various aspects, including non-performing assets and financial inclusion. The meeting will be chaired by Financial Services Secretary Shashi Kant Sharma, as Finance Minister Pranab Mukherjee is busy with ongoing Assembly elections in five states. The meeting will take stock of the financial performance of the banks during the financial year ended March 2011. According to sources, the Finance Ministry will deliberate on non-performing assets, agriculture loan, credit to infrastructure sector and matters related to human resources in the public sector banks. — PTI