New Delhi, June 8
The government has yet again deferred a decision on raising prices of diesel, kerosene and cooking gas, needed to rein in the fiscal gap, government sources said on Wednesday, as it deals with one of the worst political crises in recent years.

It was the third time in two months that Prime Minister Manmohan Sing's government has sidestepped a decision on lifting the state-set prices, fearful of stoking inflation at a time when public anger is running high over high profile graft scandals.

Veteran social activist Anna Hazare and yoga guru Swami Ramdev have launched fasts to force the Congress-led coalition government to take tough measures against corruption, and the government is under fire for breaking up Ramdev’s protest by force.

“The meeting has been put off because of the political crisis,” a source at the oil ministry said.

Raising fuel prices will help the government meet its fiscal deficit target of 4.6 per cent of GDP for 2011-12, given rising crude oil prices and sagging economic expansion that officials say will depress growth in tax revenue.

But it will also stoke inflation, which at 8.66 per cent in April, is above the RBI’s comfort zone of around 5 per cent.

New Delhi has budgeted a fuel subsidy bill of $5.2 billion for 2011-12, assuming oil prices below $100 per barrel. Oil prices are currently above $115 a barrel.

Analysts say an increase of $10 a barrel in oil prices has the potential of increasing the fiscal deficit by around 0.2 per cent of GDP.

The oil ministry source said Oil Minister Jaipal Reddy was pushing for a hike, citing the need for profitability at state-run oil firms which could see a loss $ 40 billion) this fiscal year on sales of subsidised fuel. “For how long can you continue to buy time,” the source said.

The government has allowed state-run oil firms to fix the price of petrol but continues to control the prices of diesel, kerosene and cooking gas to protect the poor and keep inflation in check. — Reuters

New Delhi/Gurgaon, June 8
Production at Maruti Suzuki India Ltd (MSIL’s) Manesar plant remained suspended for the fifth day today as a result of workers strike. The management has ruled out any possibility of accepting the demands of the workers.

“When a union is not even registered, in today’s condition, how can we even think of accepting its demands? There is no demand of the workers which we can accept,” MSIL Chairman RC Bhargava said.

“As there was no production today in the first shift and workers did not resume work in B shift also, there will be a loss of another 1,200 units, taking the cumulative production loss to 4,200 units so far,” it maintained.

“We would want to resolve the strike in a democratic manner, keeping focus on workers’ interests,” Bhargava said, adding: “Any strike is a serious matter, but we would not like to compromise on good governance practices.” He said it was difficult to predict how long would the strike last. “However, discussions are on and we will not look at any short-term solutions,” he asserted.

The sworkers are demanding the recognition of a new union — Maruti Suzuki Employees Union (MSEU) — formed by those working at the Manesar plant, besides retaining contract labourers for the two new units inside the complex.

Bhargava clarified that the decision to sack employees was based on serious threat perception and danger to plant and equipment.

Haryana Industries Minister Randeep Singh Surjewala said: “Maruti is the backbone of our industry. The strike is unwarranted, even though the law gives the workers every right to form one more union.”

Meanwhile, All India Trade Union Congress (AITUC) has said it would stage a ‘satyagraha’ tomorrow outside the plant. — PTI

Ludhiana, June 8
Exporters, especially in engineering, textile and automobile sectors, will struggle to stay competitive as the Duty Entitlement Passbook Scheme (DEPB) will be scrapped from June 30. Using DEPB, exporter scan apply for credit as a specific percentage of freight on board (FOB). After the scheme’s discontinuation, prices will rise and exporters may lose orders from international markets

The DEPB is a part of duty remission scheme for exporters not going through the licencing route and aims to neutralise the Customs duty on imported content of the exported product.

“India’s exports will become un-competitive in the international market. Under the DEPB scheme, we are given re-imbursement of the duties of the product exported. Our products will become 5-6 per cent costlier after the scheme is scrapped. The government needs to provide another scheme in lieu of this scheme,” said DS Chawla, president, United Cycle and Parts Manufacturers Association. ”Withdrawal of the DEBP will have a serious blow to the exports growth momentum achieved in the last few quarters. We should be compensated with other market focus schemes like Focus Market Scheme and Focus Product Scheme,” added Badish Jindal, President of Federation of Punjab Small Industries Association.

The annual loss to the government due to tax incentive has been estimated to stand at Rs 800 crore. With exports having grown 37.5 per cent in 2010-11, the Finance Ministry is not willing to extend the DEPB. Exporters have warned that if the scheme is withdrawn, their shipments would drop to $200 billion in the current fiscal. Overseas shipments in the previous fiscal were $246 billion.

Upkar Singh, joint secretary of Chamber of Industrial and Commercial Undertaking, said.

“All benefits are pre-calculated and given to us by the government to make us competitive in the market. After this scheme is scrapped, we will become un-competitive in the world market. MSME will be worst hit and Indian exporters would require time and capital to develop new products, marketing strategies and refocus on emerging markets to sustain exports growth,” he said.

Mumbai, June 8
India’s largest software company TCS today briefly toppled ONGC as the country's third most valued company with its market capitalisation (M-cap) soaring to over Rs 2.31 lakh crore, driven by a spurt in share price.

Tata Consultancy Services (TCS) claimed the position of third most valued company with over 6 per cent spurt in its share price.

The scrip opened on a bullish note on the Bombay Stock Exchange at Rs 1,169 and then surged to touch an intra-day high of Rs 1,182.30, increasing the market valuation of the company to Rs 2,31,402 crore.

ONGC dropped to the fourth position with a market capitalisation of Rs 2,30,220 crore. Reliance Industries and Coal India with M-cap of Rs 3.10 lakh crore and Rs 2.57 lakh crore, respectively, remained the top two most valued companies, according to the BSE.

At the close of market hours, however, TCS share prices lost its initial gains, bringing down its M-Cap to Rs 2.30 lakh crore, a tad below ONGC's which retained the No. 3 position.

"The fundamentals of TCS are looking quite good, the management is also very optimistic about its future prospects, besides, the information technology sector as a whole is also showing strength," Ashika Stock Broking Research Head Paras Bothra said.

There has been a downslide for ONGC which once used to be the most valued company. It lost its pre-eminence position to Reliance Industries first, and later Coal India also overtook it.

Now, though for a brief time, TCS's M-Cap has zoomed past the oil marketing behemoth’s. — PTI

New Delhi, June 8
The month of May witnessed the highest number of private equity investment deals in more than three years, attracting $1.4 billion, a global consultancy firm says.

According to Grant Thornton, PE deal values amounted to $1.14 billion through 43 deals in May, 2011, compared to $0.26 billion by way of 15 deals during the corresponding month last year.

"PE investment volume has witnessed a significant upsurge during May, 2011, with the highest number of deals after more than three years," Grant Thornton India Partner and National Leader – Valuation Services C G Srividya said, adding that "there have been several large-sized deals with four investments valued at over $100 million." In May, 2011, 43 PE investments were witnessed, whereas in May, 2010, the figure stood at 15 and in May, 2009, the level was just a meagre 13 transactions.

On the merger and acquisition front, there were deals worth $4.22 billion last month by way of 55 transactions, as against $8.11 billion through 52 deals in 2010, the report said.

The PE investment value so far this year stands at $4.03 billion, around twice the level it was a year ago ($2.65 billion), whereas the total M&A deal value so far this year is comparable to last year. — PTI

New Delhi, June 8
Telecom equipment firm Huawei India today unveiled three smartphones — IDEOS X5, IDEOS X2 and IDEOS Chat — with prices upward of Rs 8,000.

IDEOS X5 is a smartphone for the young professional, while IDEOS X2 is a sleek touch screen mobile targeted at the youth and IDEOS Chat has a touch screen as well as Qwerty keypad, Huawei said.

"It is an opportune time for us to launch our new and exciting range of IDEOS smartphones whether its the X5, X2 or the Chat. We will continue to bring the latest, smartest and most technologically advanced handsets for our consumers at accessible prices," Huawei said. — PTI

New Delhi, June 8
Infosys Technologies has acquired the software solutions business of Gen-i, as part of its partnership with the Telecom New Zealand Group firm.

As part of the deal, Infosys has offered positions to Gen-i's more than 110 employees and contractors, who will continue to be based in Auckland, Wellington and Christchurch, Infosys said.

These employees, who are primarily senior developers, technical architects and consultants, will take the Infosys' New Zealand team to over 150 people, it added.

The company said it also plans to immediately hire an additional 15-30 people there. No financial details were disclosed. — PTI

New Delhi, June 8
Giving shape to his succession plan, Max India founder Chairman Analjit Singh today said he would step down as the Managing Director of the company and has appointed a professional, Rahul Khosla, for the position.

"Well...it is momentous, it is landmark...In companies where families have significant single largest shareholding, it is not the typical pattern, because typically...this position is occupied by somebody from within the family," Singh told PTI.

"So, this is one more step and maybe a very large final step in that direction...to get the management of the board governed company in the hands of a younger more able more experienced manager," he added. — PTI

BRIEFLY

People above 60 may get Old Age Pension
New Delhi: The government plans to lower by five years the existing age bar of 65 for getting Indira Gandhi Old Age Pension to benefit lakhs of people across the country. Besides, there is a plan to double the quantum of pension to people above 80. These proposals are likely to come up before the Union Cabinet at its meeting here tomorrow, official sources said. — PTI

Airtel launches 3G in J&K
Srinagar: Bharti Airtel today launched its 3G services in Jammu and Kashmir starting fron Srinagar. Powered by 160 sites in the Srinagar district alone, Airtel 3G services will gradually be launched across the entire state. “With this customers in Kashmir will now be able to join three million plus Airtel customers across India who are already enjoying a host of unique services,” said Shashi Arora CEO Upper North Mobile Services Bharti Airtel. — TNS

Jet Airways chief on IATA board
New Delhi: Jet Airways Chairman Naresh Goyal has been re-elected to the prestigious Board of Governors of the International Air Transport Association (IATA) from 2011 to 2013, at the 67th Annual General Meeting held at Singapore. — TNS

Adani Power sychronises Mundra plant
CHANDIGARH: Adani Power Ltd, a subsidiary of Adani Enterprises, India’s leading integrated infrastructure conglomerate, on Wednesday announced a successful synchronization of its second supercritical unit of 660 megawatt (MW) at 
its state-of- the-art power plant in Mundra, in Kutch district of Gujarat, taking its total generation capacity to 2,640 Mega Watt. — PTI