New Delhi, February 19
BP Plc, Europe's second biggest oil company, and Reliance Industries will invest US $5 billion in developing untapped gas reserves in the D6 block in the Krishna Godavari basin off India's east coast as the partners attempt to reverse the fall in gas production.

The D6 block is jointly operated by the two energy companies and was expected to contribute up to a quarter of the gas supply for Asia's third-largest economy, but output from the block has been declining.

Besides detailing $5 billion investment plan over the next 3-5 years, BP chief executive Bod Dudley and Reliance Industries chairman Mukesh Ambani in their first joint meeting with Oil Minister M Veerappa Moily may have also discussed the dispute with the Comptroller & Auditor General over audit of spendings in the flagging KG-D6 gas block.

Dudley and Ambani in the meeting that lasted nearly an hour, briefed Moily of plans to develop 4 trillion cubic feet of gas reserves in the KG-D6 where production has dropped to about 19 million standard cubic metres per day, which is less than a third of 62 mmscmd peak hit in 2010.

The duo, flanked by BP India head Sashi Mukundan and Reliance Industries executive director P.M.S. Prasad, updated Moily of "joint future plans in India, including the KG D6 block enhancement plan designed to increase production from the block", Reliance Industries and BP said in a joint statement.

While the investment in the new reserves, that lie in satellite fields surrounding the currently producing the Dhirubhai-1 and 3 (D1&D3) gas fields and the MA oil and gas field, will take 3-5 years, RIL-BP plan to augment current production next year by upgrading facilities at the D1&D3 and MA fields.

"They briefed (me) about their investment plans. I encouraged them to invest more to help in India's energy security," Moily stated.

Moily, who was joined by oil secretary Vivek Rae at the meeting, assured expeditious decision making. He, however, refused to say if Reliance Industries and BP raised the issue of the CAG's second round of audit of KG-D6 spendings.

"You should focus on positive news rather than running after controversies," he remarked when asked if differences between RIL and the CAG over the scope of second round of audit were discussed at the meeting. — PTI/Reuters

Mumbai, February 19
Joining the low-fare war triggered by budget carrier SpiceJet last month, full service carrier Jet Airways on Tuesday kicked off another round of bloodletting among domestic airlines by slashing fares by more than 50 per cent. It announced special fares as low as Rs 2,250 for a single journey across its domestic network.

The airline has put two million seats on over 450 daily flights across 57 destinations on sale, for six days effective Tuesday under the offer, a Jet website said. Passengers purchasing these tickets can travel anytime upto December-end this year for tickets booked from Tuesday.

The airline has introduced four different slabs for these one-way fares, based on the travel distance and the fares are inclusive of all taxes.

"This nationwide low-fare sales offer is a goodwill gesture to our loyal guests who will now be able to plan and schedule their travel much in advance, especially during the holiday seasons, while benefiting from these special fares," Jet Airways Group chief commercial officer, Sudheer Raghavan, said.

Under the offer, the fare up to 750 km is priced at Rs 2,250, while for 750-1,000 km it is Rs 2,850. Similarly, fares for destinations between 1,000 and 1,400 km are pegged at Rs 3,300 and above 1,400 km destinations are priced at Rs 3,800, the airline said.

Earlier, SpiceJet had put one million seats on sale for Rs 2,103 apiece early January which generated a massive response from passengers.

Shortly after Jet Airways announced low fares on some routes, low fare airline Indigo joined the fray with fares as low as Rs 490 on the busy Mumbai-Delhi sector. Indigo has however kept its offers low-key and travel agents have not yet been intimated about the new rates, sources said.

The airfare war kicked off last month when SpiceJet put on sale one million seats at an all-inclusive fare of Rs.2,013 for any domestic flight between February 1 and April 30, considered the lean season by the trade. Aviation regulator Director General of Civil Aviation then warned other airlines from following suit. After a period of silence, Jet Airways announced its decision to join the fare war.

New Delhi, February 19
The BSE Sensex posted its biggest gains of the month on Tuesday, as investors picked up software services exporters such as Infosys that have recently under-performed and defensive shares such as Hindustan Unilever.

Shares have recovered after hitting their yearly lows on Friday, although the mood remains largely cautious ahead of the 2013/14 budget, to be unveiled on February 28.

Traders say a plan that seeks to narrow the country's fiscal and current account deficits would be key in reviving share markets that have largely fizzled out this month.

"Some game-changing reforms in area of deficit management is expected from budget," said Deven Choksey, MD, KR Choksey Securities, calling gains on Tuesday more liquidity-driven than a genuine rally.

The BSE Sensex rose 0.69 percent, or 134.64 points to end at 19,635.72, marking its biggest daily percentage gain since January 25, and a recovery after ending Friday at its lowest close of the year.

The 50-share Nifty rose 0.70%, or 41.50 points, to 5,939.70, also posting its biggest daily gain since Jan 25.

Shares of software services exporters were among the day's leading gainers on continued hopes earnings will improve in the fiscal year starting in April on the back of an improving global economy.

TCS rose 1.28%, after falling 2.1% since hitting a record high on February 14. Infosys shares rose 1.45% after falling 1.1% over the previous two sessions compared with a flat performance in the Nifty.

Defensives shares that have underperformed markets this year also gained. Hindustan Unilever gained 1.4% after falling 10.4% this year as of Monday's close. — Reuters 

New Delhi, February 19
Ruling out price hike in the near term, the country’s largest carmaker, Maruti Suzuki India said Tuesday it is expecting a sales growth of about 6% in the current financial year ending next month.

“We think that this (fiscal) year Maruti will grow by about 5.5 to 6 per cent,” Maruti Suzuki chairman R.C. Bhargava said on the sidelines of the India-UK CEO Forum in New Delhi.

On whether there will be price hike in the coming months, he said: “I don’t see price hike taking place.” The cost of owning a car is going up largely because of fuel prices, he said.

Last month, Maruti Suzuki India increased the prices of its vehicles across models by up to Rs 20,000 to offset the pressures of adverse currency fluctuation.

The company sells a variety of models, starting from M800 to imported Kizashi at a price range starting from Rs 209,000 and going up to Rs 17.52 lakh, (ex-showroom, Delhi).

Asked about growth prospects for the next fiscal, Bhargava said: “This year continues to be difficult for the sector. Next year, probably, the growth will be flat.”

Since October, car loans rates of private banks have actually fallen by 2% and lowering of interest rates by 2% has not led to higher sales, he added. The growth rate will not improve very much unless the FY2014 budget does something for better investment sentiment, he said.

On budget expectations, Bhargava said: “We’re not in favour of sops but complete measures like GST (goods & services tax) that will create a lot of good sentiment... We don’t really get growth from sops because it’ll temporarily boost sales. But it cannot give long term industrial growth.”

He also said the growth will also depend on the election result of 2014. “...Because if you have a coalition government and driven by the same kind of coalition dharma which the PM has mentioned then you will have difficult time again,” he said.

On labour trouble issues facing the sector, Bhargava said, “If the economy and demand continues to be stagnant and industry finds it difficult to meet, it could give rise to more labour troubles. But if the economy picks up again, people will start getting jobs.”

On whether he expects excise duty increase in case of diesel price hike in the budget, Bhargava said that as the subsidy on this fuel is going to go away in the next few months, there is no point in raising the duty. — PTI