The Tribune, Chandigarh, India

	Govt manages to succeed with ONGC share sale Stake sale fetches Rs 12,666 crore: Pranab New Delhi/Mumbai, March 1 After some hiccups and a late government intervention, the sale of the government's 5 per cent stake in ONGC through an auction finally managed to sail through, garnering estimated proceeds of over Rs 12,600 crore to partly meet the disinvestment target for this fiscal. Finance Minister Pranab Mukherjee termed the stake sale as a "great success". "Our latest figure (from auction of ONGC shares) is now Rs 12,666 crore, which comes to 98.3 per cent subscription," he told reporters late in the night. The auction, however, faced some initial hiccups as at the end of the auction 1530 hrs only final bid tally was only for 29.22 crore shares against the 42.77 crore offered for sale at a minimum price of Rs 290 a piece. During the day, the bourses updated bids every half- hour, but stopped doing so 10 minutes before the close of the auction at 1530 hours. Hectic parleys were held for over four hours after the end of the auction process and a final tally of the bids remained elusive for that time. Late in the night, top finance ministry officials confirmed that the share sale had been a success and the government has raised the desired proceeds from the auction. After putting the final bid tally after the end of the auction at about 22.9 crore shares, as against total offer size of 42.77 crore shares, the stock exchanges also later said that the issue has got fully subscribed in the auction, where the floor price was fixed at Rs 290 a piece. Speaking to reporters, Additional Secretary in Department of Disinvestment Siddharth Pradhan said that the issue has got fully subscribed and the market regulator Sebi has been asked to look into the technical glitches due to which some bids could not get registered. Till about 9 pm, the stock exchange data continued to show that the issue had failed to receive the desired bids. As reports earlier in the day were not encouraging with bids worth only about Rs 8,500 crore, the government appears to have nudged the public sector giants, including LIC, to pitch in with their bids and help the issue sail through. The government, which had set a target to raise Rs 40,000 crore through disinvestment in the current fiscal, had been able to raise just over Rs 1,100 crore prior to the ONGC issue. — PTI
	Subsidy on key fertilisers cut Tribune News Service New Delhi, March 1 The government decided on Thursday to cut the quantum of subsidies on decontrolled fertilizers — phosphatic (P) and potassic (K) — for fiscal 2012-13 whereby the total subsidy outgo for the key fertilizers would be reduced by more than 20 per cent. The decision was taken at a cabinet meeting chaired by Prime Minister Manmohan Singh, at which the rates for other fertilizers were also approved. In another decision the cabinet also approved the proposal of the agriculture, ministry and the agricultural research & education department for extension of closing the date of the national agricultural innovation project to June 30, 2014 with no cost escalation. The cabinet approved the per kilogram nutrient based subsidy (NBS) rates for fertilizer nutrients, namely, nitrogen (N), phosphate (P), potash (K) and sulphur for FY2012-13 at Rs 24, Rs. 21.804, Rs 24 and Rs 1.677, respectively. The subsidy on N, P and K has been fixed at Rs 27.15 per kg, Rs 32.33 per kg and Rs 26.76 per kg, respectively, under the nutrient based subsidy policy. The subsidy has been cut due to the strengthening of the rupee and bearish global prices. The subsidy bill of P and K fertilizers alone is seen to touch Rs 52,000 crore this fiscal, officials said. Under the NBS regime introduced from April 1, 2010, retail prices of 22 varieties of P and K fertilizers are freed. The government fixes subsidy on nutrients like N, P and K, which is linked to the import parity price of fertilizers, diammonium phosphate (DAP) and muriate of potash (MoP). Subsidy is reimbursed to fertilizer firms for selling the indigenous or imported crop nutrients at lower price to farmers. Officials said accordingly the subsidy on diammonium phosphate (DAP) and muriate of potash (MOP) would be Rs 14350 per metric tonne and Rs 14,440 per metric tonne, respectively. Per metric tonne subsidies on other P and K fertilizers covered under the nutrient based subsidy policy will be based on the nutrient content in that grade.
	Farmers sore over move Vibha Sharma/TNS New Delhi, March 1 The government’s decision to bring down the quantum of subsidy on decontrolled fertilizers — phosphatic and potassic — for fiscal 2012-13 has not gone down well with farmers, who claim that the move will result in an increase in the cost of production, which is already “touching the sky due to escalated costs of diesel, labour, pesticides and seeds”. “Seriously objecting” to the cut in subsidy rates, Confederation of Indian Farmers Association secretary general P Chengal Reddy said the move would lead to additional losses to farmers. “In the recent past the cost of DAP increased from Rs 400 to Rs 1,000 and labour costs by Rs 300. Prices of diesel, pesticides and seeds have all gone up and it costs the farmers more than Rs 1,350 to produce a quintal of paddy. The reduction in P and K subsidies means the cost of production will increase by at least Rs 50 per quintal,” he says. Sources said it was because of strengthening of the rupee and bearish global prices that the fertilizers ministry had recommended reduction in subsidies. According to officials, at the announced rate, total subsidy outgo for the P&K fertilizers for the financial year 2012-13 will be reduced by more than 20 per cent.
	January exports up 10% to $25.3 bn, trade gap widens New Delhi, March 1 India's exports grew 10.1 per cent in January at $25.34 billion, official data showed Thursday, widening the monthly trade deficit to $14.76 billion. The rate of growth in exports has improved in January, compared to 6.76 percent increase seen in December and 3.87 percent in November. But is is still substantially lower than the average for April-January at 23.47 percent. Fragile economic conditions in Europe and the US have been impacting exports. The cumulative value of exports for the period April-January increased to $242.79 billion as compared to $196.63 billion during the corresponding period of previous year, according to data released by the ministry of commerce and industry. The government has targeted increasing exports to $300 billion in the fiscal ending March 31. However, analysts say that given the sharp decline in exports growth in the third quarter of the fiscal, it may not be possible to achieve the target. The more worrying trend is a sharp increase in imports despite moderation in exports growth, which has widened the trade deficit. In January, imports rose 20.25% to $40.1 billion. India’s trade deficit during April-January was at $148.66 billion and the government expects this to go beyond $160 billion for fiscal 2011-12. — IANS
	Battle for C&W (W) looms as Tata eyes bid Mumbai/London, March 1 India's Tata Communications is considering a bid for Cable & Wireless Worldwide in a move that could set up a takeover battle for the $1.2 billion British telecoms group with mobile phone giant Vodafone. Troubled C&W Worldwide has fixed telephone lines that can be used to relieve pressure on mobile networks, and provides voice, data and other services to major British firms such as Next , Tesco and United Utilities. It also has an international cable network connecting more than 150 countries, as well as five offices and 150 customers in India, which analysts said could be of particular interest to Tata Communications. A successful bid by Tata would be the biggest British acquisition by an Indian firm since sister company Tata Motors bought Jaguar Land Rover for $2.3 billion in 2008. The Indian company, part of the tea-to-technology Tata Group conglomerate, said in a regulatory filing on Thursday its plans for an all-cash bid were "at a very preliminary stage", adding it would decide on whether to make an offer by March 29. Vodafone said in February it was in the early stages of looking at a bid for C&W Worldwide, which has performed dismally since it split from the Caribbean-focused Cable & Wireless Communications in March 2010. Shares in C&W Worldwide, which has issued a string of profit warnings and is now on its third chief executive, rose more than 25 percent in early London trade on hopes of a bidding war. C&W Worldwide issued a statement noting Tata's interest. A spokesman said the company had not received an approach. — Reuters
	Gold crashes to near 6-mth low; down by Rs 920 on global cues New Delhi, March 1 Gold prices hit a near six-month low on Thursday by losing Rs 920 to Rs 28,140 per 10 grams, due to brisk selling by stockists after the metal recorded a steep fall in international markets. Selling pressure gathered momentum after the yellow metal in overseas markets suffered heavy losses, sparking a major sell-off in the local market here, pushing it down to a level seen on September 7 last year, traders said. Similarly, silver paired all the gains it made in yesterday's trade by losing Rs 2,200 to Rs 58,300 per kg, as speculators offloaded their position for monthend settlements on the Multi Commodity Exchange. The trading sentiment in gold dampened as in global markets it fell by US $100 to trade below to hit the $1,700 an ounce level on signs that the US Federal Reserve will refrain from offering more monetary stimulus to boost the US economy. In New York last evening, gold tumbled by $100, or 5.6 per cent, to $1,688.40 an ounce, the lowest level since January 25. In addition, retail customers here refraining from purchasing gold at existing higher levels, also dampened the trading sentiment to some extent. On the domestic front, the gold of 99.9% and 99.5% purity tumbled by Rs 920 each to Rs 28,140 and Rs 28,000 per 10 grams, respectively. Sovereigns followed suit and declined by Rs 50 to Rs 23,500 per piece of 8 grams. In a similar fashion, silver ready nosedived by Rs 2,200 to Rs 58,300 per kilogram and weekly-based delivery by Rs 1,570 to Rs 59,600 per kg. — PTI
	Vedanta offers Rs 16k cr for govt’s stake in HZL, Balco New Delhi, March 1 Sterlite Industries has offered to pay Rs 16,000 crore to buy government stakes in Hindustan Zinc (HZL) and Bharat Aluminium Co (Balco), in which the majority holding was acquired by the Vedanta group about a decade ago. "The government had asked us if we’d be interested to take its stakes in HZL and Balco. We answered in the affirmative. According to the prevailing market price, we’ve offered Rs 16,000 crore for buying the stakes. That was in January," the chairman of the $70-billion metal and mining conglomerate, Anil Agarwal, told PTI. He said the price Vedanta has quoted for buying residual stakes in HZL was based on a month's average stock price of the zinc producer. Vedanta had acquired government's 51% stake in Balco in 2001 during the NDA regime for Rs 551 crore.The government still has 29.54% stake in Hindustan Zinc and 49% holding in Balco. The government does not seem to be happy with the valuation quoted by Vedanta and an empowered group of ministers which is looking into the matter had favoured a status quo till a fair valuation is arrived at. Agarwal said since January Vedanta did not receive any communication from the government and against this backdrop, it would not be possible for him to give any timeframe when the deals would be through. "This isn’t in my hands. It’s up to the government," he said when asked to project a timeline. Vedanta group company Sterlite Opportunities and Ventures (SOVL) holds 64% stake in HZL. SOVL had initially acquired 26% stake in HZL in 2002. — PTI
	‘Objectionable’ content removed, Google tells court New Delhi, March 1 US-based search engine giant Google Inc on Thursday told a Delhi court it had already removed alleged “objectionable” contents from its webposts as it was aware of its responsibility as a service provider. The company, in a written statement filed before administrative civil judge Praveen Singh, denied the allegation that it projected Indian culture in poor light. The statement said that Google Inc was aware of its responsibilities as a service provider and has a system to ensure that "rights and interests" of all relevant parties were well protected. The Internet major said the alleged objectionable contents were removed after its Indian subsidiary Google India brought them to the notice of the service provider. — PTI