New Delhi, March 30
The Cabinet Committee on Investments, which was set up in January for clearing major infrastructure projects, is expected to give its nod for a number of projects within the next three weeks, Planning Commission deputy chairman Montek Singh Ahluwalia has said.

"My hope is that the Cabinet Committee on Investment in the course of next two to three weeks, will demonstrate that a number of (infrastructure) projects can get cleared," he told a seminar organised by SICCI here Friday night.

The committee had met two or three times already, he said. His comments come close on the heels of the CCI in its first decision on March 20 clearing Reliance Industries' producing KG-D6 block and gas discovery area NEC-25.

This was along with three other areas where the defence ministry had either barred oil and gas activity or put stringent conditions on it.

Besides, the Environment and Forests Ministry had also informed CCI that it had initiated steps for speedy approval to infrastructure projects, stuck for want of green nod.

"Domestic energy prices have to be more closely aligned to global prices. Very few of my political colleagues would find it easy to pursuade their audiences. I have addressed group of MPs trying to make this point that in a world in which energy is expensive, you will be shooting yourself in the foot, by trying to keep energy cheap at home," he said.

He said the government had taken a bold step by increasing diesel prices by around 50 paise every month, with a goal to eliminate under pricing of diesel over an 18-month period.

Pitching for a "political consensus" on aligning domestic energy prices with international prices, he said, "if you get that, it would probably be the best things for the Indian economy, in terms of growth potential".

Ahluwalia also said the current account deficit remaining high was a matter of great concern. "We need to move over the next two to three years, in a concerted way, in reducing the fiscal deficit, getting rid of supply constraints and solving the regulatory problems with infrastructure projects." — PTI

New york/san francisco, march 30
Dell Inc warned on Friday that it would be dangerous to take on a lot of debt and remain a public company given its worsening profit outlook, in a sign that it views proposals from Blackstone Group LP and billionaire investor Carl Icahn as fraught with risk.

The No. 3 maker of personal computers published a 274-page preliminary proxy statement to inform Dell shareholders of how a $24.4 billion buyout proposal from founder and Chief Executive Michael Dell and private equity firm Silver Lake Partners was put together, and why it is the best of all the alternatives the company's board had explored.

Icahn has proposed paying $15 per share for 58% of Dell, while Blackstone has indicated it can pay more than $14.25 per share — both deals involve saddling the company with a lot of debt and keeping it on public markets. Silver Lake's $13.65 per share all-cash offer would see Dell go private.

Dell's proxy statement did not directly pass judgment on the Blackstone and Icahn bids, yet it warned that any leveraged recapitalization was risky if the company was to remain public.

"Even when taking into account the certain value distributed to stockholders, (a leveraged recapitalization) would be unlikely to result in an aggregate value exceeding the $13.65 per share merger consideration and would present a number of risks and challenges," Dell said in the statement, referring to its special committee's review.

Such a move would decrease employee, customer and supplier confidence in the company's long-term prospects and potentially limit the company's ability to aggressively implement its long-term business strategy, Dell added. — Reuters

Nicosia, March 30
Big depositors in Cypriot lender Bank of Cyprus will get shares in the bank worth just 37.5 percent of their deposits over 100,000 euros, the country's central bank confirmed on Saturday.

About 22.5 per cent of deposits over 100,000 euros will attract no interest, the bank said in a decree. The remaining 40 per cent will continue to attract interest, but will not be repaid unless the bank does well, it said.

The statement confirmed the details of the plan given to Reuters on Friday by sources with knowledge of the terms.

Cyprus was expected to confirm on Saturday that major depositors in its biggest bank will lose around 60 percent of their savings over 100,000 euros, under a bailout that has shaken European banks but saved the island from bankruptcy for now.

German Finance Minister Wolfgang Schaeuble sought to reassure bank customers elsewhere in Europe, saying in an interview in Germany's Bild tabloid on Saturday that their savings were safe after the Cyprus deal.

European officials have sought to stress that the island's bailout terms were a one off - after a suggestion by Eurogroup chairman Jeroen Dijsselbloem that the rescue would serve as a model for future crises rattled European financial markets.

Initial signs that big depositors in Bank of Cyprus would take a hit of 30 to 40 per cent — the first time the eurozone has made bank customers contribute to a bailout — were already enough to unnerve investors in European banks this week.

But a source with direct knowledge of the terms told Reuters on Friday that the conditions announced on Saturday would give depositors shares in the bank worth just 37.5 percent of savings over 100,000 euros. The rest of such holdings might never be paid back.

The toughening of the terms will send a clear signal that the bailout means the end of Cyprus as a hub for offshore finance and could accelerate economic decline on the island and bring steeper job losses.

There is no sign for now, however, that ordinary customers in other struggling euro zone countries like Greece, Italy or Spain are taking fright. "Cyprus is and will remain a special one-off case," said Schaeuble, one of the main architects of the eurozone's response to a debt crisis now in its fourth year.

"The savings accounts in Europe are safe." "Together in the Eurogroup we decided to have the owners and creditors take part in the costs of the rescue — in other words those who helped cause the crisis”, he added.

"Cyprus's economy will now go through a long and painful period of adjustment. But then it will pay back the loan when it is on a solid economic foundation."

ANGRY: Cypriot President Nicos Anastasiades said on Friday that the 10-billion euro ($13 billion) bailout had contained the risk of national bankruptcy and would prevent it from leaving the euro.

Cypriots, however, are angry at the price attached to the rescue — the winding down of the island's second-largest bank, Cyprus Popular Bank, also known as Laiki, and an unprecedented raid on deposits over 100,000 euros. — Reuters

New Delhi, March 30
Broadcasters, especially those in the news, movies, music and sports genres are up in arms against the latest Telecom Regulatory Authority of India (TRAI) order capping the standardized advertisement duration for all channels at 12 minutes an hour.

The move from the telecom sector regulator would hit hard the revenues of these broadcasters, including the news broadcasters and some others who have already paid huge sums to acquire blockbuster movie rights.

The TRAI order would throw up a scenario where these broadcasters would find it difficult to recover costs.

TRAI had first come out with the regulation in May last year, which had created a major stir among the broadcasters who opposed it and also challenged the order in the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) leading to a stay on the norm.

However, TRAI’s latest notification on Standards of Quality of Service (Duration of Advertisement in Television Channels), has maintained standardized advertisement duration at 12 minutes, as stated under the advertising code of the Cable Television Networks Rules (CTNR) 1994.

According to industry estimates, the move will impact advertising revenues of broadcasters by up to 40 per cent.

Reports said that the Indian Broadcasting Foundation (IBF) has raised the matter with the ministry of information and broadcasting and along with the News Broadcasters Association urged the government to ensure the regulation is kept in abeyance till digitization is implemented across the country.

The News Broadcasters Association said that the order will put "most sweeping and intrusive controls" on broadcasting firms, which are already operating in a very challenging business environment.

"The economic slowdown of 2008 has not been corrected even today and advertising has been slow and at unimaginably low rates," the News Broadcasters Association said in a statement. Despite the phase one of digitization being implemented with effect from November 1, 2012, the benefits have not yet accrued to broadcasters, particularly news broadcasters, it said.

It said that these, “Regulations have been issued at a time when news channels are facing an unfriendly business environment. Dependence on advertising remains absolute, with about 90 per cent of revenues coming from it”.

Carriage fees continue to be high and most news broadcasters do not get subscription revenues. Through the last year or so, news organizations have not received any advertising from DAVP (Directorate of Advertising and Visual Publicity), which has cut rates to levels 75 per cent lower than five years ago. All these factors have ensured most news channel companies face losses on an annual basis, it said.

“The recent regulations reveal a clear lack of understanding of the problems on the ground and the environment the industry operates in. The regulations, if implemented, would force many news organizations to shut, taking away our democratic right to inform and educate, independent of the government. With the general elections looming ahead, it would appear this is an attempt to muzzle the media by taking away its ability to operate independently,” it adds.

Chandigarh, March 30
Punjab will soon have private market yards, producer consumer markets and commodity specific special markets. With the state legislative assembly passing the Punjab Contract Farming Bill recently, the stage is all set to bring radical changes in marketing of agricultural produce and ensuring higher returns to farmers.

Though the benefits of the new Contract Farming Act will not accrue immediately, farmers, especially those involved in farming of cash crops, will begin to reap the dividends of this landmark act by the next rabi marketing season.

The state government has allowed contract farming for 108 items, to ensure better marketing of agricultural produce as well as ensure higher income to farmers who take up contract farming.

Sources close to the Punjab Mandi Board said with the passing of this contract farming bill, stage has been set to open private market yards, where the buyer can buy the produce directly from the farmer, without having to pay the market fees, commission to arhtiyas (commission agents) and the rural development fund.

"Since the buyer will save on these taxes, he will be passing on this benefit to the farmer, who will thus get a higher price for his produce," said a senior official.

He said that the maximum benefit will be reaped by those farmers who grow crops other than wheat and paddy. He added they were contemplating setting up private market yards in public private partnership mode.

This Act, in a way, has also set the stage for allowing the foreign direct investment in multi brand retail. Though the Akali-BJP government has been vehemently opposed to foreign direct investments in retail, the passing of this bill will actually make it easier for the multi national companies to directly buy the agriculture produce from farmers in Punjab.

Punjab financial commissioner (development) G.S. Sandhu said the new bill was part of the agricultural marketing policy.

"Though contract farming was allowed in Punjab, there was no legal framework under which contract farming could be done. This exposed the farmers to exploitation. But with the passing of the bill, the interests of the farmers and buyers will be protected as contract contract farming will be regulated through a legally enforceable agreement between the buyers and producers," Sandhu said.

Kolkata, March 30
IT major Infosys said Saturday it would weigh options, including making the proposed West Bengal campus into a domestic development centre, after the state denied it the SEZ status with assurance of alternate benefits.

"If you look at the other companies which are already here, they are already enjoying the SEZ benefits. May be there is some other opportunity for us, may be a part of the business which we can focus on the 'domestic market'. We will see. Those are options we need to look at," Infosys co-chairman S Gopalakrishnan said today. He was speaking about the firm’s investment plans for their proposed 50-acre campus in Bengal that remained a nonstarter due to stand-off concerning SEZ status for over two years.

"After we discuss with the government, we’ll continue discussions to find other ways”, he said. — PTI

My query is about the continuation of PPF after the post maturity I read in your column that such continuation has to done by filing Form H. In my case, I have continued my account post maturity but have not filed the H-Form within one year of the maturity period. We were not at all intimated by the Head post Office about the expiration. Can you advise on the way forward? — Dixit

You should file Form H immediately. Better late than never. We hope that your late filing of Form-H is accepted by the deposit office. Let them know that you would like to get the account regularized. The bank may have a certain procedure which you will have to comply with

I have sold my house last year in April, however the transaction is not complete and I will receive all the money by April this year. I have earned long-term capital gains on this sale of Rs 20 lakh. Can I invest the money in bonds now to claim tax benefit? Since when are the six months counted, is it from initial agreement date or completion of agreement. — Ramani

Any tax on long-term capital gains can be saved by investing the capital gain amount in bonds under Section 54EC of the Income Tax Act. Also, there is a limit of Rs. 50 lakh per financial year on investment in such bonds. The clock starts ticking from the date the property gets transferred to the buyer and not from the date you receive the entire money.

What is the potential risk in investing in an equity index fund (other than price)? — Rahul

The risk in investing in an index is not different than what you undertake by investing in any other equity oriented fund. It is just that an index fund is passively managed whereas the others are actively managed equity funds. However, both index funds as well as a traditional actively managed equity fund are subject to stock market risks and returns. In other words, in the case of an index fund, your loss or profit will never be more than that of the underlying index whereas in the other case, depending upon the fund management expertise, profit or loss may be more or less than that of the index.

BRIEFLY

New Delhi
Gold, silver prices down on sluggish demand
Both the precious metals, gold and silver, ended lower on Saturday due to sluggish demand at prevailing higher levels amid absence of any market moving factor from the global front. While gold fell by Rs 130 to Rs 30,070 per 10 grams, silver lost Rs 700 at Rs 53,500 per kg on reduced offtake by jewellers and industrial units. Traders said sluggish demand at prevailing higher levels in the absence of any market moving factor from overseas due public holiday in bullion markets, mainly dampened the sentiment. They said the demand also dried up in the domestic markets due to off marriage and festival season. On the domestic front, gold of 99.9% and 99.5% per cent purity fell by Rs 130 each to Rs 30,070 and Rs 29,870 per 10 grams, respectively.

tuticorin, tamil nadu
Sterlite's copper smelter unit in TN shut down
The Tamil Nadu Pollution Control Board on Saturday ordered the closure of Sterlite Industries Ltd's copper smelter unit here in the wake of alleged noxious gas leak from it. The board, under instructions from district collector Ashish Kumar, issued a notice directing the Vedanta group company to close the plant, officials said. "We received an order from the Pollution Control Board on Friday, asking us to close down the plant immediately and we have started the process to shut down. The closure will be completed in a day or two depending on the processes going on," said an official from Stelite Industries in Tuticorin. TNPCB officials were not immediately available for comment. The gas leak caused mild suffocation, sore throat and eye irritation to several people.