The Tribune, Chandigarh, India

Premium petrol, diesel sales dip over 60 per cent
Ruchika M Khanna
Tribune News Service

Chandigarh, August 18
With petrol prices having risen by almost Rs 16 a litre and diesel having shot up by over Rs 8 per litre, in the past one year, consumers in North India are in no mood to buy the even more expensive premium versions of these fuels.

Once marketed aggressively by all oil marketing companies as being the most efficient fuel available, sale of premium version of petrol, diesel have fallen sharply in the region over the past one year.

The sale of premium petrol has come down by over 60 per cent, in Punjab, Himachal Pradesh, Chandigarh and Jammu and Kashmir.

Till last year, the three state run oil marketing companies had been aggressively marketing these fuels as they tend to make more profit on the sales of these fuels.

With a difference of Rs 6.30 per litre between normal diesel and blended diesel, and a difference of almost Rs 3 per litre between the normal petrol and blended petrol, the price sensitive consumer seems to have altogether dumped these blended fuels in favour of the normal fuels.

Data suggests that till last year, over 30 per cent of total fuel sale in this region comprised of these premium fuels.

Their sale is now down to just 2 per cent of total diesel sale and less than 5 per cent of total petrol sale.

A senior official in Indian Oil Corporation (IOC) said that the sale of their premium petrol, Xtra Premium, is down from 4,700 kilo litres per month last year to just 1,600 kilo litres per month now.

In the case of blended diesel, Xtra Mile, the sales have come down from 2,800 kilo litres per month last year to just 284 kilo litres per month now.

Officials in the oil marketing companies, while requesting anonymity, said that the state taxes (mainly excise) was too high on these blended fuels.

Though the state government reduced VAT on the normal fuels recently, they have not brought down any tax on these blended fuels. With the price of these touching an all time high now, consumers have given it a thumbs down.

Gold hits peak of Rs 26,840; deters physical buying

Mumbai, August 18
Gold futures extended gains to hit a new peak on Thursday following a rally in overseas markets, and a weaker rupee, which made the yellow metal expensive, deterring physical buying ahead of a slew of festivals and weddings, dealers said.

The most-active gold for October delivery on the Multi Commodity Exchange hit a record high of Rs 26,672 per 10 grams, before trading 0.98 per cent higher at Rs 26,840.

Global gold rose for a fourth day, driven by unease over the lack of a solution to the European debt crisis and sluggish growth in the developed world that has shaken investor confidence in stocks, bonds and hard currencies.

The rupee remained weak in afternoon trades on Thursday as negative local shares and oil importers' dollar demand weighed.

Record high prices kept physical activity muted, continuing a weak trend in sales so far in the month.

"It is not very good, seasonal impact is there. Prices are high for people to re-stock," said a dealer with a private bank in Mumbai.

Gold demand from India, the world's biggest consumer, will gain pace with the advent of the festival and wedding season.

However, imports in the quarter to June rose 59 percent to 267 tonnes, data from the World Gold Council showed. — Reuters

Hero MotoCorp appoints SK Munjal as Joint MD

New Delhi, August 18
Two-wheeler maker Hero MotoCorp (formerly Hero Honda) today said it has appointed Sunil Kant Munjal as Joint MD. In a filing to BSE, the company said Munjal has been appointed to the post for five years with effect from August 17.

Last week, the company launched its new brand identity after ending a 26-year-old joint venture with Honda.— PTI

Honda launches new Jazz, price begins at Rs 5.5 lakh

New Delhi, August 18
Japanese auto giant Honda today launched a new version of its premium hatchback Jazz in India, slashing the price by over Rs 1.5 lakh from the existing model as it looks to increase sales in a fiercely competitive compact car market.

The company, which is present in India through a joint venture with the Siel Group, launched the new Jazz at prices ranging from Rs 5.50 lakh to Rs 6.06 lakh (ex-showroom, Delhi). The old Jazz was priced between Rs 7.12 lakh and Rs 7.56 lakh.

Honda Siel Cars India (HSCI) Senior Vice-President (Sales and Marketing) Jnaneswar Sen said the company has been able to cut the prices of the Jazz through various cost efficiency measures to address consumer demands in a very tough market. "It is a competitive market and competition is increasing day by day," he told reporters here.

"We have set up the engine block and cylinder heads at our Tapukara plant in Rajasthan. The engine for Jazz and the upcoming small car Brio is same, and we are expecting good sales volume for Brio. So, economies of scale has also played a role in passing on the benefit to Jazz customers," Sen said.— PTI

ICICI Bank launches two fixed interest home loan products

Mumbai, August 18
ICICI Bank today launched two home loan products, which give borrowers the option of having a fixed interest rate for up to the first two years of a loan. "Fixed income rates will shield customers from frequent changes in home loan interest rates and protect them from any rise in interest rates over the next one or two years," a bank statement issued here said.

The Reserve Bank has raised its key short term rates a record 11 times since March, 2010 in order to tame inflation.

The headline inflation for July 2011 stood at 9.22 per cent, much above RBI's comfort.

Under the new scheme, a borrower will pay an interest of 10.50 per cent for a home loan under Rs 25 lakh for the one year fixed interest rate and 10.75 per cent per annum for the two year fixed product, it said.

On completion of fixed interest rate period, loans will turn floating in nature and will be linked to the bank's base rate, it said, adding that borrowers will also have to pay a margin above the base rate, which will be decided at the time of loan sanctioning.

The new products will be available from tomorrow, the statement.

Govt concerned over inefficient use of Air India planes
Vibha Sharma/TNS

New Delhi, August 18
The government today admitted that the Air India’s fleet of 125 aircraft was not being utilised to its optimum level. Even long-haul aircraft like A-330, which some of the international airlines fly for 14 to 16 hours, was logging only about eight hours everyday,

The government is now coming out with a plan for maximum utilisation of the aircraft which are flying for less hours, Minister of State in the PMO V Naraynasamy today said, responding to a question on NACIL fleet in the Rajya Sabha on behalf of Civil Aviation Minister Vyalar Ravi.

He said the reason bigger aircraft like A330 were flying lesser than their capacity because they were being used on the Europe route, where there was heavy competition. “We would like to improve the flying hours of these aircraft. This is one of the items, which is matter of concern for the government…,” he said

Underutilizing the aircraft also means less competition for private airlines.

While Air India operated some of the aircraft for as less as 6.3 and 7.7 hours, last year, with the daily utilisation of eight types of aircraft in its fleet averaging to around 9.7 hours.

According to the minister, the daily utilisation for Jet Airways was 12.20 hours, Kingfisher 10.45 minutes, Spicejet 12 hours, Indigo 11.40 hours and Goair 13 hours.

ED notice to two Loop telecom firms in 2G case

New Delhi, August 18
The Enforcement Directorate has issued show cause notices to two Loop telecom firms for alleged violation of foreign exchange laws to the tune of about Rs 384 crore in connection with the 2G scam.

The Directorate had earlier slapped various charges of FEMA violations on Loop Mobile India Ltd and Loop Telecom Ltd and the adjudicating authority now has accepted the complaints filed by the investigators of the case, ED sources said.

The Adjudicating Authority in this case is the Special Director of ED based in the national capital. The ED has already filed complaints to the tune of over Rs 4,300 crore against top telecom firms allegedly involved in the scam, they said Sources in the Directorate said notices issued to the companies are for a part of the violations and more notices will follow.

"These contraventions are done by the said company in not reporting the receipt of funds from abroad within the stipulated period of time to RBI and in not reporting issue of shares to foreign investor within stipulated period of time," the ED said.— PTI

Airtel to sponsor Indian F1
The event is scheduled for October 30 in Greater Noida
Tribune News Service

New Delhi, August 18
The country’s largest telecom operator Bharti Airtel today announced that it will be the title sponsor for the first Formula One sporting event in India October 30. Sanjay Kapoor (CEO - India and South Asia, Bharti Airtel) and Bernie Ecclestone (Formula One Group CEO) together also unveiled the official logo of Airtel Grand Prix of India to be hosted at Buddh International Circuit in Greater Noida ( Uttar Pradesh , India ).

"Right through its growth path, Airtel has been associated with speed, performance, calculated risks and excitement, the very words that spring to mind when you think of Formula One," said Kapoor.

"Hence it is only natural that Airtel and Formula One together bring to life the dreams of million of passionate sports enthusiasts in India, giving them the opportunity of a lifetime to watch the very first Airtel Grand Prix of India in person," he added.

The event will put India on the prestigious list of countries on the global F1 map.

The company however did not disclose financial details of the agreement reached with F1. "Such events do not come cheap, we see value for investment. A leader like us must take lead for a sponsorship like this," Kapoor said.

The company said it will come up with a host of additional offerings, including F1 exclusive mobile applications, and initiatives for customers soon.

Korean envoy meets Punjab CM

Chandigarh, August 18
Korean Ambassador Joong Keun today called on Punjab Chief Minister Parkash Singh Badal and evinced keen interest in setting up automobile and electronics industry in the state.

Taking part in the deliberations during a meeting with Badal here, Keun said that the Korean government had already signed an comprehensive Economic Cooperation Agreement with India which has resulted in huge volumes of trade to the tune of $17 billion thereby registering an increase of 42 per cent.

The visiting envoy impressed upon Badal to tie up with world-acclaimed Korean companies like Hyundai Motors, LG Electronics, Samsung besides Steel Giant Posco to set up their units in Punjab as these companies had already put up their several manufacturing units in the country.

He said the investment scenario in Punjab were very much conducive and extended all support and cooperation on behalf of the Korean government. Responding to the offer made by the visiting

Korean envoy, Badal said that a special team of senior officers led by his Principal Secretary DS Guru would immediately tie up with these companies so that these proposals could be formalised.— PTI

Haryana to auction govt securities worth Rs 500 crore on Aug 23

Chandigarh, August 18
The Haryana Government has notified the sale of Haryana Government Stock (Securities) of 10-year tenure worth Rs 500 crore. A notification to this effect has been issued by the Finance Department, Haryana. The auction of the government stock will be conducted by the Reserve Bank of India at its Mumbai Office on August 23. The proceeds will be utilised for financing capital expenditure for development programmes.

Bids for the auction should be submitted in electronic format, on the Negotiated Dealing System (NDS) on August 23. The competitive bids should be submitted electronically on the NDS between 10.30 a.m. and 12.30 p.m. and non-competitive bids between 10.30 a.m. and 11.30 a.m.

The government stock up to 10 per cent of the notified amount of the sale will be allotted to eligible individuals and institutions subject to a maximum limit of one per cent of the notified amount for a single bid as per the Revised Scheme for non-competitive bidding facility in the auctions of state govt Securities of the General Notification.

The auction results shall be displayed by the RBI on its website the same day. Successful bidders will make payments on August 24 by cash, banker’s cheque or pay order or demand draft payable at RBI Mumbai or New Delhi or a cheque drawn on their account with RBI, Mumbai Fort or New Delhi.

Interest will be paid half yearly on February 24 and August 24. — TNS