New Delhi, December 31
Initiating the process of allocation of coal mines, the government today invited proposals from PSUs for alloting 17 blocks to them, mostly for captive power plants.

“It has been decided to offer 17 coal blocks (14 coal blocks for end use i.e. for power and three coal blocks for mining) to different government companies/undertaking (central and state),” the Coal Ministry said in a statement.

The development comes in the wake of the government's repeated announcements to make policy for mines allotment transparent, following CAG terming potential losses of Rs 1.86 lakh crore to the exchequer on account of blocks allotment to 57 private firms without auction.

The Ministry of Coal has initiated the process of allocation of coal blocks under the amended provisions of the Mines and Mineral Development and Regulation Act and Rules framed thereunder.

“In the first round, the government proposes to allocate coal blocks to the government companies/undertakings (central and state) for specific end use (power) and coal mining,” the statement said.

The applicants have been asked to submit their proposals by January 30.

The blocks on offer are: Jilga-Barpali, Baisi, Banai, Bhalmunda, Kente and Kerwa in Chhattisgarh, Gowa, Pachwara South and Kalyanpur-Badalpara in Jharkhand, Mahajanwadi in Maharashtra, Kundanali-Laburi, Sarapal-Nuapara, Tentuloi, Chandrabila and Brahamani in Odisha, Gandbahera-Uhhenia block in Madhya Pradesh and Deocha-Pachami-Dewanganj-Harinsingha in West Bengal.

These blocks on offer have estimated reserves of 8.45 billion tonnes.

Under the Rule 4 of auction by competitive bidding of the Coal Mines Rules 2012, the government has decided allocation of suitable coal blocks to the government companies that are authorised to undertake coal mining, the statement said.

Last week, an inter-ministerial panel, which was set up to look into coal block allocations to government firms came out with pre-determined evaluation criteria that include taking into account allotees’ track record of developing the mines given to them.

The criteria include progress of the development of mines given in the past, the coal demand-supply gap of a state and the location of the plants among others.

Earlier, the Coal Ministry had informed the Prime Minister’s Office (PMO) that it would soon issue notification inviting offers from the public sector for allocation of identified coal blocks.

The Coal Ministry had in May identified 54 mines for allocation. Of these, 16 had been earmarked for government firms, 16 for the power sector and 22 for allocation through an auction route.— PTI

New Delhi, December 31
Debt-laden Kingfisher Airlines is set to lose its licence to fly after it failed to convince regulators about how it plans to fund operations under a proposal to get it flying again, a senior government source said.

Kingfisher’s licence is due to expire on Monday, and a request to extend that will not be granted unless the suspended carrier can come up with a revival plan. This will effectively remove one scheduled carrier from Indian skies, at least for now.

Kingfisher Airlines said expiration of its operating licences, was not a cause for concern as the grounded Indian carrier has two years to renew the licence and permits required to fly.

“Despite the impending expiry of its licence tonight, there is no cause for concern as the regulations permit licence renewal within two years of expiry,” the company said in a statement.

It also added that it was “confident” of securing an approval from the Directorate General of Civil Aviation (DGCA) to re-start operations and that it was in the process of replying to concerns raised by the regulator.

Kingfisher, which has not flown since October, owes money to all of them.

The airline submitted a revival plan to the DGCA last week, but that did not provide details of how it will fund operations, aviation minister Ajit Singh said on Wednesday.

Kingfisher officials have not sought an appointment with the DGCA yet, the source said.— Reuters

New Delhi, December 31
The Finance Ministry on Monday sought more information from IKEA for its India investment plans and will take up the Swedish furniture major’s proposal to open cafeterias at its proposed mega retail outlets next week.

“IKEA’s proposal will be taken up next week,” Economic Affairs Secretary Arvind Mayaram said after the Foreign Investment Promotion Board (FIPB) reviewed the application.

The FIPB, headed by Mayaram, has already recommended permission to IKEA to invest Rs 4,200 crore for undertaking single-brand retailing of its products. The recommendation has been forwarded to the Cabinet Committee on Economic Affairs (CCEA) for the final approval.

An official in the Department of Industrial Policy and Promotion (DIPP) said the FIPB has asked IKEA to provide more information regarding its investment plans in India. “No decision was taken today. More information has been sought from IKEA,” Mayaram said.

Following a representation from the Swedish firm, the DIPP had recently forwarded a request to the FIPB for reviewing its November 20 decision giving only part approval to IKEA’s plan.

Batting for IKEA’s proposal, Commerce and Industry Minister Anand Sharma last week had said the government has taken a favourable view on IKEA’s request.

“All the stores globally whether IKEA or some other single brand retailers, where people shop for long time... There are cafeterias inside.”

“The government has taken...note of the representation that IKEA has made in this regard and a favourable view has been taken so that we accept their global model and the process of FIPB’s formal approval is currently underway,” he had said.

Sources said besides furniture, the Scandinavian firm in its original application had sought government approval to sell items such as textile products, consumer electronics, leather products, lifestyle products, and food and beverages to be served at its restaurants and cafes.

The firm had envisaged an investment of Rs 10,500 crore in single-brand retail trading after India allowed 100% FDI in the segment.— PTI

New Delhi, December 31
The global financial uncertainties forced the government in 2012 to finally show animal spirit in liberalising FDI policy amidst objections from Opposition parties with as many as seven sectors being further opened up during the period.

The government liberalised the FDI policy in sectors, including multi-brand retail, single-brand retail, commodity exchanges, power exchanges, broadcasting, non-banking financial institutions (NBFCs) and asset reconstruction companies (ARCs).

During the 10-months of this year, foreign direct investment (FDI) contracted by 33% to $21 billion as against $31 billion in the same period last year. The government officials, however, expect the country to receive more FDI in 2013 in the wake of several important announcements.

“We expect that 2013 will be good for FDI and India will be able to attract more foreign investments,” an official in the Commerce and Industry Ministry said.

Sharing similar views, Crisil chief economist DK Joshi said the government will have to push for more reforms in order to get higher investments.

“2012 was not good due to international and domestic matters. But things are likely to improve in 2013,” Joshi said.

To revive investors’ interest in India in the wake of global financial uncertainties Prime Minister Manmohan Singh in June had said the nation should “reverse the climate of pessimism...Revive the animal spirit in the country’s economy.”

The government, which was severely criticised by industry for policy paralysis this year, opted for big-bang reforms and allowed politically-risky 51% FDI in multi-brand retail and 49% investment by foreign airlines in the aviation sector. Foreign institutional investors (FIIs) were also allowed to invest up to 23% in commodity exchanges without seeking prior approval of the government.

Among the decisions, FDI in multi-brand retail came in limelight as the government hard to strive hard to get the better of opposition in the Parliamentary debate that entailed voting on the issue. This decision will allow global retail giants like Walmart to open stores in India.

FDI ceiling in asset reconstruction companies has been increased to 74% from 49%, a move aimed at bringing more foreign expertise in the segment. The government also took steps to discourage import of sub-standard machinery. The Department of Industrial Policy and Promotion also decided that the consolidated FDI circular will be announced every year instead of six-monthly basis.— PTI

New Delhi, December 31
The growth rate of eight core sector industries declined to 1.8 per cent in November, from 7.8 per cent in the same month last year, due to drop in production of coal, natural gas and cement.

The eight core sector industries had registered eight-month high growth of 6.5 per cent in October 2012.

The decline in growth in November, 2012, was due to negative growth witnessed in coal, natural gas and cement sectors and drop in growth rates of electricity, steel and petroleum refinery products, according to the official data released on Monday.

The cumulative expansion of the eight industries —crude oil, natural gas, cement, coal, electricity, steel, petroleum refinery products and fertilisers — was down at 3.5 per cent in April-November 2012 against 4.8 per cent in the same period last year.

The eight industries have a weight of 37.9 per cent in the overall Index of Industrial Production (IIP).

Production of natural gas and coal contracted by 15.2 per cent and 4.4 per cent, respectively in November. Cement output too shrunk by 0.2 per cent as against 17 per cent growth in the same month last year.

Steel and electricity production slowed to 6 per cent and 2.3 per cent, respectively. In the same month last year, it was 10.5 per cent and 14.4 per cent in that order.

Petroleum refinery output also slowed down to 6.6% against to 11.2% last year.

However, production of fertiliser and crude oil grew by 5 per cent and 0.8 per cent in November respectively. — PTI

New Delhi, December 31
Wipro today said its shareholders have approved the company’s plans to hive off non-IT business into unlisted arm.

“The shareholders at the court convened meeting held on December 28 have approved the scheme of arrangement between Wipro Ltd (demerged company), Azim Premji Custodial Services Pvt Ltd (resulting company) and Wipro Trademarks Holding Ltd (trademark company),” it said in a BSE filing.

Following the announcement, Wipro’s shares jumped 1.34% from its previous closed on the BSE to Rs 396.50.

A total of 393 shareholders were present at the extra-ordinary general meeting, including 18 from promoters and promoter groups, the filing said. The company has about 235,598 shareholders.

Wipro had announced last month that it will demerge its non-IT businesses like Consumer Care & Lighting into a new company to focus exclusively on information technology.

Wipro Ltd will continue to remain a publicly listed company. The unlisted firm will be called Wipro Enterprises and include Wipro Consumer Care & Lighting, Wipro Infrastructure Engineering and Medical Diagnostic Product & Services business. — PTI