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Industrial output growth
touches 8.2% in October
Ministry de-allocates two more coal blocks allotted to 5 PSUs |
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Retail inflation up at 9.9% in November
NMDC issue: Govt to get at least
Rs 5,900 crore
‘Lobbying disclosure doesn’t reflect improper conduct in India’
RBI eases KYC norms
Norms to protect investors from flash-crash soon
Panasonic’s eco ideas factory opened
PFC to issue tax-free bonds
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Industrial output growth
touches 8.2% in October
New Delhi, December 12 Although the number was unexpectedly higher, markets were also not too excited about it and ended in the red. Low base and festive demand helped IIP to clock its fastest growth in about a year. According to Crisil Research, at a broad-based level, barring mining and quarrying, the growth across all other sectors has been good. Even at the use-based level, with the exception of basic goods, growth has been robust in the sectors in October with consumer durables clocking a growth of 16.5 per cent. However, it is too early to believe that this type of buoyancy will sustain going forward, says Crisil. “As the current industrial slowdown is both well entrenched and broad based, it will take a while for industrial growth to recover. Therefore, we expect industrial output growth to remain at muted levels during the remaining months of this fiscal,” it said. The positive number has poured water on the hopes of a RBI repo rate cut. Krishnamoorthy Harihar, Treasurer, FirstRand Bank said while it has to be seen whether this was more a result of the Divali season or a more sustainable trend, this development has clearly led to a bit of receding of repo rate cut hopes in the market. The markets would now expect a CRR cut to address the liquidity situation, which could breach Rs 1 lakh crore this month after the advance tax outflows exit the system. The skew was aided by festivals falling in different months. Kotak Securities, Head of Private Client Group Research, Dipen Shah said the IIP for October came way above expectations, mainly aided by strong uptick in the manufacturing sector, which grew by 9.6% as against a 1.5% contraction during the previous quarter. Shah said although a large part of this positive surprise can be attributed to the low base last year due to festivals falling in different months, it does give a signal of bottoming out of the index. However, this high rate of growth is not expected to be sustainable in near future. “The IIP number failed to excite the markets as they likely focused on the impact of this data on RBI’s interest rate decision next week. We believe that, the RBI will not reduce rates at the mid-quarter policy review next week,” he added. However, the industry is not convinced of a turnaround just yet. The Confederation of Indian Industry (CII) said in a statement that apart from the base effect, another factor to be kept in mind is that every year, prior to the festive season IIP picks up and then there is a drop. Therefore, it would be too early to say that a turnaround is underway. Chidambaram sees green shoots
Encouraged by the 8.2 per cent growth in industrial output in October, Finance Minister P Chidambaram today said that it reflected emergence of "green shoots" in the economy. "I am very encouraged by the indications of the green shoots in the economy in terms of production. IIP figures are very encouraging,” he said. "Let's see what the next four months bring us. Investments are taking place, capacity is being created and consumption is happening in consumer durables and non-durables,” the Minister said. — PTI |
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Ministry de-allocates two more coal blocks allotted to 5 PSUs
New Delhi, December 12 The five PSUs have been sent the notices for deallocation of the mines for unsatisfactory progress in development of the coal blocks and end-use plants. The Coal Ministry, in its letter to the five PSUs, has told them that the coal blocks were being deallocated on the basis of recommendations made by the inter-ministerial group (IMG) on the coal allocation. The government has also forfeited 50% bank guarantee provided by the allocatees at the time of allotment. While the Baitarani West coal block was allocated to Orrisa Hydro Power Corporation (OHPC) jointly with Gujarat Power Corporation Ltd (GPCL) and Kerala State Electricity Board (KSEB), and the Naini block was awarded to two other PSUs — Gujarat Mineral Development Corporation (GMDC) and Pondicherry Industrial Promotion Development & Investment Corporation Ltd (PIPDIC). In its letter to OHPC jointly with GPCL and KSEB, the Coal Ministry said in view of the unsatisfactory progress in development of coal mine and end-use plants and taking into account all factors, “the IMG recommends that the coal block may be deallocated in accordance with the terms and conditions of the letter of allocation.” The IMG noted that the allocation letter provides for 50% deduction linked to milestones and 50% to the guaranteed production, once production commences. In view of this the IMG recommends that 50% of the bank gurantee related to development of the coal block may be forfeited. The recommendation of the IMG has since been considered and accepted by the government and accordingly, “Baitarni West coal block allocated to GPCL, KSEOHPC is deallocated.” The company shall not be eligible for allocation of coal block in lieu of the de-allocated coal blocks. The bank guarantee (BG) as per recommendation of the IMG to the extent of Rs 37.50 crore be invoked and be deposited with the government. Remaining gurrantee amount may be returned. The ministry noted that in case of Naini block, the IMG held that site for end-use plant of GMDC was yet to be finalised and the development of the coal block is still at the stage of obtaining a prospecting licence. It observed the progress and investment in respect of the coal block as well as end-use plants is negligible. Accordingly, Naini coal block is de-allocated. The bank surety to the extent of Rs 32.5 crore be invoked. NOTICES SENT
The five PSUs have been sent the notices for deallocation of the mines for unsatisfactory progress in development of the coal blocks and end-use plants. |
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New Delhi, December 12 The highest price rise in November was seen in the oil and fats segment with an annual inflation of 17.67%, as per the Consumer Price Index data released today.— PTI |
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NMDC issue: Govt to get at least Rs 5,900 crore
New Delhi, December 12 Against the offer for sale of 39,64,71,600 shares, or 10% of the government's stake in the company, the offer has received 45,67,70,509 bids at an indicative price of Rs 149.11 per share till late afternoon, according to data available with bourses. Indicative price is the volume weighted average price of all the valid or confirmed bids. The government had set the floor price for the offer at Rs 147 apiece. NMDC's shares today settled at Rs 154.25, 3.17 per cent down over the previous closing. Actual bids may be even higher as stock exchanges are yet to complete the compilation of data of all the bids. NMDC has kept one-fourth of the issue reserved for mutual funds and insurance companies. — PTI
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‘Lobbying disclosure doesn’t reflect improper conduct in India’
New Delhi, December 12 "The allegation that a routine US lobbying disclosure reflects improper conduct on our part in India is false," a Bharti Walmart spokesperson said. "This disclosure has nothing to do with the political or governmental contacts with Indian government officials. It shows that our business interest in India was discussed with US government officials — along with 50 or more other topics during a period of three month," the spokesperson said. On Tuesday, the government had agreed to an inquiry but did not give in to Opposition demands for a judicial probe or an inquiry by the Joint Parliamentary Committee. According to lobbying disclosure reports filed by Walmart with the US Senate, the retail giant said it had paid $25 million over four years to the US lawmakers to help gain access to foreign markets including India. "These allegations are entirely false. In accordance with the US law, US companies are required to disclose the issues and expenditures associated with the lobbying on a quarterly basis," a Bharti Walmart spokesperson said. "Under the US law, on a quarterly basis, all companies which meet certain time and expenses thresholds, are required to disclose issues and expenditures spent, including staffing cost, association dues, and payments to consultants, in connection with contacts with the United States government." The spokesperson sais this was not unique to Walmart. “All organisations which expend more than $11,500 annually on lobbying activities and employ at least one lobbyist, who must register and file the quarterly reports.” “Our Washington office naturally had discussions with the US government officials about a range of trade and investment issues that impact our businesses in the US and worldwide and disclosed this in accordance with the law," the spokesperson said. Confident things will work out : CEO
Walmart CEO Mike Duke has said he will be "patient" and is confident that things will get worked out in India for the company. "I still believe that in India things will get worked out. I am confident that (India) is a country that has such an opportunity to help both the farmers, those that are producing products for consumers all the way through the supply chain to the consumer," Duke said at an event. — PTI |
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RBI eases KYC norms
Chandigarh, December 12 In its directions to all scheduled commercial banks, local area banks and all India financial institutions, the RBI has said getting an introduction from an existing customer of a bank for opening a bank account is no longer mandatory. Banks have been directed that in case the customer fulfills all conditions of the KYC norms, the banks should not insist on introducers. The RBI has also ruled that Aadhaar would now be accepted as a document required to open an account. Banks have been told that if the address provided by the account holder is the same as that on Aadhar letter, it may be considered as a proof of residence and identity. Banks may also accept NREGA Job Card as an ‘officially valid document’ for opening of an account without the limitations applicable to ‘small accounts’.With these accounts being included in the Prevention of Money Laundering Rules, the instructions of seeking introduction for accounts too stand withdrawn.
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Norms to protect investors from flash-crash soon
Mumbai, December 12 It can be recalled on October 5, there was a massive 900-point flash crash of the benchmark Nifty which wiped out nearly Rs. 10 trillion of investor wealth. Following the flash-crash, trading was halted for about 15 minutes. A report of SEBI ordered probe is awaited. The NSE claimed there was no technical glitch in its system and blamed the crash on erroneous orders worth over Rs 650 crore for multiple trades by broker C in various stocks at low prices on behalf of an "institutional client". Panel to frame rules for foreign investors
SEBI today said it has appointed a committee under ex-Cabinet secretary K M Chandrashekhar to frame a single set of guidelines for all types of foreign investors. The committee will suggest ways to simplify the investment process for all overseas entities like foreign institutional investors, foreign venture capital investors (FVCIs), qualified financial/institutional investors (QFIs), and NRIs, among others, and also to strengthen surveillance over them. "Why should we have various routes for foreign investment? Why should we have sub-accounts, ODIs, FIIs and QFIs and NRIs and all that? In consultation with the government, we have decided to combine these various routes which are present today into one single route. "And three-four days ago, we set up a committee under former Cabinet secretary K M Chandrashekhar to look into this," SEBI chairman UK Sinha said. — PTI |
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Panasonic’s eco ideas factory opened
Jhajjar, December 12 Panasonic Corporation’s Asia Pacific and Middle East Asia unit managing director Yori Hisa Shiokawa said the factory has an initial manufacturing capacity of over 10 lakh sets of air conditioners and 4 lakh sets of washing machines per annum. Haryana CM Bhupinder Singh Hooda has inaugurated the factory. — TNS
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PFC to issue tax-free bonds
New Delhi, December 12 The bonds carry a coupon rate of 7.69 % for 10 years and 7.86% for 15 years. Retail investors can invest up to Rs 10 lakh. The bonds shall be issued in both physical as well as in dematerialised form. The company intends to utilise the issue proceeds for lending purposes, debt servicing and working capital requirements and not for any specified project. |
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New Delhi, December 12
New Delhi, December 12
Even as the Opposition pressed for its demand for an independent probe into disclosures on lobbying made by Walmart for gaining market access in India, the Indo-US joint venture of Bharti Walmart today came out to defend itself, clarifying that money for lobbying was not used for Indian contracts.
"The allegation that a routine US lobbying disclosure reflects improper conduct on our part in India is false," a Bharti Walmart spokesperson said.
The markets' watchdog SEBI today said guidelines to prevent flash markets crash like what happened on the NSE in October and protect the interests of investors will be in place within a few days. "I expect the final guidelines to safeguard the interests of investors due to flash crashes in a few days," SEBI chairman UK Sinha said on the sidelines of a function.
