New Delhi, July 11
Rising fuel prices coupled with increasing interest rates have had a negative impact on the automobile industry. The Society of Indian Automobile Manufacturers (SIAM) has lowered the vehicle sales growth forecast for FY’12 to 11-13 per cent from 12-15 per cent announced earlier.

As the domestic passenger car sales grew by 1.62 per cent to 1,43,370 units in June, 2011, SIAM also predicted a lower growth of 10-12 per cent during 2011-12, as against 16-18 per cent announced earlier.

SIAM president Pawan Goenka said, "Increase in interest rates has been higher than what we had thought three months earlier... Fuel price rise is more than what we had anticipated".

Goenka added, “We are sitting at a threshold where if interest rates go up further, it will have a devastating impact on the industry. The three biggest concerns at present for the industry are lower general sentiment due to lower GDP forecast and various scams, higher finance rates and increasing fuel prices.”

Stressing that the industry will grow at a double-digit rate, It, however, said India became the top growing passenger car market in the world during the January-June period this year.

Two leading carmakers, Maruti Suzuki and Tata Motors, did not see good growth.

New Delhi, July 11
Maruti Suzuki India Ltd (MSIL) has starting bookings for the refurbished Swift to be launched by August-end. Existing booking holders also have an option to switch-over

The new model, which would has major changes carried out in the interiors, would be priced a little higher than the existing model.

MSIL has stopped the production of the present model and would supply the remaining stock to those customers who do not opt to switch over to the newer version.

Swift, which is available now in petrol, diesel and CNG versions and is priced between Rs 3.9-5.5 lakh, sells close to 12,000 units every month.

With rising fuel prices, the company has also ensured that the new Swift would be more fuel efficient.

The car will come with 1.2-litre petrol and 1.3-litre diesel variants and would be lighter and return better mileage than the current generation Swift.

The new car comes with a plastic petrol tank to reduce weight.

Maruti is also preparing to launch a new Swift Dzire, which will be cheaper and will probably hit the market by early 2012.

New Delhi, July 11
Shaken by the 13-day strike at Maruti Suzuki's Manesar plant that led to losses of about Rs 630 crore, SIAM has called for labour reforms to allow layoffs of permanent employees during a slowdown, but with adequate unemployment benefits.

"Labour reforms is high on agenda of SIAM for quite some years. We don't have any policy on laying off during slowdown. Labour problems hamper the employment prospects of permanent staff," President Pawan Goenka told reporters here. "...so something similar is needed here. Permanent employees have to grow. The law should give the flexibility to handle the number of people during slowdown,” he said.— PTI

New York, July 11
Eight Indian companies have made the cut in the list of world's 500 largest companies compiled by Fortune magazine, with Indian Oil finding a place in the top 100 and Reliance Industries in 134th spot.

Of the eight, five are state-run entities. Indian Oil has risen 27 places. Mukesh Ambani-led Reliance Industries has also improved its ranking from previous year’s 175 to 134.

Other Indian companies in the list are Bharat Petroleum (271), State Bank of India (291), Hindustan Petroleum (335), Tata Motors (358), ONGC (360) and Tata Steel (369).

Fortune’s global list of world’s 500 largest companies for 2011, compiled on the basis of latest annual revenue figures, is topped by retail giant Wal-Mart Stores. The retailer had annual revenues of $421,849 million.

The 2010 list also featured the same eight Indian companies. In the latest ranking, except State Bank of India, all other entities have improved their positions.

Last year, State Bank of India was at the 282 spot, followed by Bharat Petroleum (307), Hindustan Petroleum (354), Tata Steel (410), ONGC (413) and Tata Motors (442).

Wal-Mart Stores is followed by Royal Dutch Shell ($378,152 million) and Exxon Mobil ($354,674 million) at second and third positions, respectively.

Indian Oil raked in annual revenues of $68,837 million while that of Reliance Industries stood at $58,900 million.

Bharat Petroleum had revenues of $34,102 million, while State Bank of India netted $32,450 million in revenues. The revenues of Hindustan Petroleum's stood at USD 28,593 million, Tata Motors ($27,046 million), ONGC ($26,945 million) and Tata Steel ($26,065 million).— PTI

Chandigarh, July 11
Punjab National Bank may take the subordinated debt route to raise its capital adequacy ratio (CAR). The bank is expected to raise Rs 2,000 crore from bonds by the end of this fiscal.

The country’s second largest bank is also looking at increasing its international presence. After achieving success in its UK operations, it is now looking at opening a branch in Canada through the subsidiary route, and a new representative office in Sydney.

Talking to The Tribune here today, KR Kamath, CMD of the bank, said current CAR of the bank at 12.46 per cent would help in achieving 20 per cent growth. “So, in order to increase our CAR, we might have to raise funds through bonds by the end of this year. But this will happen only after the interest rates soften. I expect that the interest rates would soften by the end of this year, which may be a suitable time for us to enter the market and raise capital,” he said.

On high interest rates, Kamath said though the rising interest rates were due to high inflation, increasing the interest rate is a temporary measure to control it. “Those having taken home loans and auto loans over a longer gestation period need not worry, as the interest rates will come down and the net effect will not be much,” he said.

Aiming at 25 per cent growth in total business in the current financial year, the bank would focus on increasing its revenue from international operations through the establishment of subsidiaries, branches, representative offices or joint ventures.

Following the successful operations in the UK the bank is planning to establish a branch in Canada through the subsidiary route. PNB is also planning to upgrade its representative office in Oslo (Norway) to a full- fledged branch.

Mumbai, July 11
Months after the Union Ministry for Environment and Forests cleared the proposed airport at Navi Mumbai with a number of riders, the project is stuck in red tape.

The City and Industrial Development Corporation (CIDCO), which is overseeing construction of the airport, is still waiting to hear from the Environment Ministry and the Forest department in Maharashtra regarding proposals to mitigate damage caused by the project. "Only when the proposals are cleared can we float global tenders inviting foreign companies to bid for constructing the airport," a senior CIDCO official said.

One of the most important conditions imposed on CIDCO is compensating for the 161 hectares of mangroves that will be lost to the airport project.

The agency has submitted a proposal to plant mangroves on more than 678 hectares of land to compensate for the loss.

The body has prepared plans to rehabilitate 3,000 families spread over 10 settlements in seven villages that come within the proposed airport area. CIDCO has also been asked to prepare a baseline survey of avian fauna in the area.

The conditions imposed by the MoEF also includes preparation of a plan to prevent flooding of low-lying areas around the airport and a master plan for surface drainage following the diversion of the river Ulwe.

Chandigarh, July 11
High demand and poor availability of chana (chickpea) have managed to push up its prices over 30 per cent. The surge in prices has upset household budgets.

In most cities of the region, black chana is now available for Rs 42-45 a kg from Rs 32-35 per kg in the beginning of the month. The highest increase in price has been witnessed for Kabuli chana (white chickpea), which is now selling at Rs 85- 90 per kg now from Rs 60-65 in the beginning of July.

“The increase in price of chana is substantial. We have little option but to cut down on the consumption, so as to maintain our household budget,” rued Hema Rani, who runs a canteen in a private educational institution at Barwala, near Panchkula.

The price of the chana dal , too, has seen a jump of almost 25 per cent, with prices going up from Rs 32 per kg., to Rs 40 per kg. now. The gram flour (besan) price, too, has jumped from Rs 40 per kg. to Rs 50 per kg. as of date. Chana traders say that the increase in price is because of low arrivals from the chana producing states, as this is the end of season.

Chana is produced in Madhya Pradesh, Rajasthan, Uttar Pradesh, Maharashtra, Andhra Pradesh, Karnataka and Gujarat. With arrivals decreasing now, the prices have begun to firm up, said a chana wholeseller from Ludhiana. He added prices were likely to go up further. He also said that chana was also doing well at the futures market.

“With traders expecting prices to go up further, chana is one of the favourite commodities for investment on the commodity exchanges,” he added.

Futures market looking up
Chana is now one of the favourite commodities for investment on the commodity exchanges, said a Ludhiana-based trader.

London, July 11
India was the third largest investor in Britain during 2010-11 with 97 new projects, generating several jobs in a country facing recession and major job losses, according to official figures released.

"Among the high growth markets, India and China are still the two principal sources of inward investment by project numbers," an official report titled by 'UK Inward Investment Report 2010-2011' released by the UK Trade and Investment said.

An example of India's growing investment in Britain is Tata Steel and Australia's Dyesol's recently announced expansion of their 11 million pounds collaborative R&D project in Flintshire to develop the world's first continuously manufactured dye-sensitised photovoltaic product on steel, for building applications.

Peter Strikwerda, managing director of Tata Steel Colors, said: "This project forms a key part of our strategy to develop a new range of functional coated steel products. The expansion takes it from pilot line phase into a pre-industrialisation phase.”— Reuters

New Delhi, July 11
Apart from compensating the displaced people through profit-sharing and royalty, the mining firms will have to bear a combined cess up to 12.5 per cent on the royalty paid to states and the Centre, as per the new mining bill.

The proposal to levy cess, which can put an additional burden on miners across different sectors, was cleared by the Group of Ministers last week, a senior mines ministry official said.

"They will be required to pay up to 10 per cent cess to state governments on the royalty payment, while 2.5 per cent levy will be charged by the Centre as cess," the official added.

It was one of the proposals which was placed before the GoM, headed by Finance Minister Pranab Mukherjee, which had approved landmark deal for those displaced or affected by the mining activities.

The draft bill— which provides 26 per cent profit-sharing with displaced people by coal mining companies -- has been cleared in the backdrop of growing resentment among the tribals and farmers affected by mining.

For non-coal miners, the new law will provide for payment to the displaced an amount equivalent to royalty paid to the state government.

According to the industry body, the Federation of Indian Mineral Industries (FIMI), this would further affect the profitability of the mining companies anywhere between Rs 12,000 crore and Rs 15,000 crore.— PTI

Mumbai, July 11
Capital market regulator Secutiries & Exchange Board of India (SEBI) today said Limited Liability Partnerships (LLPs), a hybrid between a partnership firm and company, can get membership of stock exchanges.

Following requests from various stock exchanges to permit LLPs to be admitted as members to enable them to get registration as stock brokers, SEBI said "stock exchanges may consider granting membership to LLPs".

The Securities Contract Regulation Rules, 1956 (SCRR) is only clear on Limited Liability Companies (LLC) and partnership firms being eligible to be admitted as members of stock exchanges.

SEBI said that in this context it may be stated that LLPs are akin to LLC and partnership firms.

It asked stock exchanges to make necessary clarificatory amendments to the relevant bye-laws, rules and regulations for the implementation of the decision.

The Parliament has put in place a legal framework for LLPs. As per the latest data, there were 5,501 registered LLPs in the country.— PTI 

What is an LLP?

An LLP is a corporate business vehicle that provides benefits of limited liability while allowing its members the flexibility of organising their internal structure as a partnership firm.

BRIEFLY

Apollo Tyres sets up hub in Dubai
Dubai: Apollo Tyres has set up a new West Asia operations hub in Dubai, it has been announced here. Satish Sharma, Apollo Tyres' Chief of Operations in India, said the West Asia currently accounts for almost a third of the company's revenues from tyre exports out of India and Dubai is the region's biggest tyre distribution hub. — PTI

P&S Bank pays `36.61 cr dividend
Chandigarh : Punjab & Sind Bank has paid Rs 36.61 crore dividend to the Government of India for the financial year 2010-2011. P.K. Anand, Executive Director of the bank, presented a cheque of the dividend to Pranab Mukherjee, Union Finance Minister of India. — TNS

Allahabad Bank opens branch in Bahal
Chandigarh: Allahabad Bank has opened a branch with ATM facility at Bahal in Bhiwani district of Haryana. J.P. Dua, Chairman and Managing Director of the bank, inaugurated the branch.— TNS

M&M not to buy Scooters India
New Delhi: Mahindra & Mahindra on Monday said it has decided not to acquire the over 95 per cent stake in the beleaguered PSU firm Scooters India at present. M&M President (Automotive and Farm Equipment Sectors) Pawan Goenka said not participating in the race to acquire Scooters India does not mean that M&M would never look at the option in the future. —PTI

Zee Entertaintment promoters pledge shares
New Delhi: Zee Entertainment Enterprises Ltd (ZEEL) today said seven of its promoter entities have pledged over 11 crore shares of the company. A total of 1,10,985,852 shares have been pledged till June 30. The shares pledged account for 11.35 per cent of the total number of outstanding shares of ZEEL, according to a filing to the Bombay Stock Exchange. – PTI

Essar Oil posts `469 cr profit
New Delhi: Essar Oil on Monday reported a net profit of Rs 469 crore for the first quarter ended June 30 on the back of higher refining margin. Sales rose 37 per cent to Rs 16,478 crore from Rs 12,048 crore in Q1 of FY 2010-11. —PTI

J&K Bank gives 260% dividend
Srinagar: J&K Bank held its AGM here on Saturday in which the shareholders approved payment of an all-time high dividend of 260 per cent, equivalent to Rs 26 per share to shareholders. CEO Mushtaq Ahmad, said the bank had set a target of business worth Rs 1,00,000 crore with a net profit of Rs 1,000 crore by March 2013. — TNS