The Tribune, Chandigarh, India

	Tariff value of gold hiked to $521 per 10 gms; imports to be costlier New Delhi/Mumbai, April 2 The government on Tuesday increased the tariff value of gold to US $521 per ten grams, making import of the precious metal in any form costlier. However, the tariff value for silver has been lowered to $920 per kilogram, according to a notification released by the Central Board of Excise & Customs ( CBEC) on Monday. During March, the tariff value — the base price on which the customs duty is determined to prevent under--invoicing and released every fortnight — for gold stood at $516 per 10 grams and for silver at $930 a kilogram. Besides, the government has reduced import tariff value of RBD palmolein to $863/tonne from $874/tonne. The government hiked import tariff value of precious metals following firm price trend in the global market. At present, gold prices are ruling down at $1,597.90 per ounce in Singapore, while silver at $ 27.92 per ounce. The price of was quoted at Rs 30,100, while that of silver at Rs 53,200 per kg in Delhi on Tuesday. Meanwhile, gold futures fell on Tuesday in line with overseas markets and on a firm rupee, with traders getting some respite after the finance minister suggested a hike in import duty on the yellow metal was unlikely. The actively traded gold for June delivery on the MCX was at Rs 29,897 per 10 grams on a firm rupee. Overseas gold held below $1,600 an ounce on Tuesday as a slightly brighter-than-expected reading of euro zone manufacturing activity lifted stock markets, diverting interest from bullion. — PTI/Reuters GOVT unlikely to hike gold duty again: FM Finance Minister P. Chidambaram suggested on Tuesday that the government is unlikely to raise the import tax on gold further to avoid gold smuggling and would instead introduce inflation-indexed instruments to help curb a record current account deficit. In January India raised the import tax on gold to 6% to curb purchases. Its passion for gold, seen by many as a hedge against high inflation, has led to a rise in its current account deficit, which reached an all-time high of 6.7% of GDP in the December quarter. "We did raise tariffs from 4% to 6%, but there are limits to which tariffs can be raised on gold, because if you raise tariffs prohibitively, gold smuggling will increase," Chidambaram told Reuters in an interview. India vies with China as the top global consumer of gold, and with nearly all demand covered by imports, the country's purchases are a major factor in global prices. "Creating inflation-hedged financial instruments is a way out to reduce dependence on imports of gold. RBI and the government are working on inflation-proof, inflation-indexed instruments," he said. — Reuters
	Cyprus finance minister quits, capital controls partly eased Nicosia, April 2 Cypriot Finance Minister Michael Sarris quit on Tuesday after concluding talks with foreign lenders on a bailout that forced the island to slap unprecedented losses on bank depositors in return for aid. The news came after Cyprus announced a partial relaxation of currency controls, raising the ceiling for financial transactions that do not require central bank approval, but keeping most other restrictions in place. Sarris, who was dispatched to Moscow last month but returned empty-handed as Cyprus sought Russian aid after rejecting a European bank levy proposal, said his main goal of agreeing a deal with lenders had been accomplished. He said it was also appropriate to resign since he was among several people under scrutiny by a team of investigators looking into the collapse of the country's banking system. His resignation was accepted by the government. "I believe that in order to facilitate the work of (investigators) the right thing would be to place my resignation at the disposal of the president of the republic, which I did," Sarris said. Before quitting, he said it was not clear when the remaining capital controls would be lifted. The island introduced curbs on money movements when banks reopened on March 28 after a two-week shutdown while the government negotiated a 10 billion euro bailout from the International Monetary Fund and the European Union. Cyprus's status as a financial hub has crumbled in the space of a fortnight after authorities were forced to wind down one bank and slap heavy losses on wealthier depositors in a second in return for the financial aid. Its capital controls are a first for the euro zone, introduced by Cyprus as it strives to prevent a cash drain. BAILOUT TERMS DISCLOSED: A finance ministry decree on Tuesday, the third since controls were first introduced, raised the ceiling on transactions which do not require central bank approval to 25,000 euros from 5,000 euros. It also permits the use of cheques worth up to 9,000 euros per month. Other restrictions introduced last week, including a 300 euro per day cash withdrawal limit and a 1,000 euro limit on the amount travellers can take overseas, remain in place. The decree - signed by Sarris and dated April 2 - is valid for two days. Cypriot officials have said it could take up to a month for restrictions to be fully removed. Cypriot President Nicos Anastasiades, who has been in power for just over a month, says he was forced to accept onerous terms imposed by lenders to avert a default and an exit by the island from the euro zone. Under the terms of the deal, Cyprus will have until 2018 to carry out measures to shore up its finances and begin to receive aid starting in May. — Reuters
	ANALYSIS Big Pharma down, not out, after Indian patent blow London/Mumbai, April 2 Stung by a landmark patent defeat, Western drugmakers will be wary about launching new products in India, but they cannot afford to quit a country tipped to be the world's eighth largest market for medicines by 2016. Makers of patented drugs will in future have to get more creative about doing business in India, including striking deals with local firms to sell cheaper versions of their drugs, industry experts believe. The Supreme Court’s decision on Monday not to allow a patent on Novartis AG's cancer drug Glivec angered but did not surprise US and European drug companies, given past intellectual property (IP) setbacks. And it is unlikely to send them rushing for the exit. "India is too big to ignore," said Amit Backliwal, who heads South Asian operations for leading healthcare information provider IMS Health. "Companies will definitely get cautious, and it definitely means a change in their business model, but I don't think they will pull out." On paper, there is huge potential in India's rapidly growing $13 bn-a-year drugs market, which is driven these days by chronic diseases such as diabetes as well as infections. So far, though, it has failed to become a money-spinner for the world's top pharma companies, despite a new law in 2005 allowing drug patents for the first time. Innovative patented drugs make up no more than 5% of sales, according to IMS, and they have been under siege after a series of rulings allowing generics firms to over-ride patents for cancer drugs like Bayer AG's Nexavar. New Delhi has pulled no punches in its fight with Big Pharma, both by raising the bar for patents and being ready to issue so-called compulsory licences that open the door for cheap generics when patented drugs are deemed unaffordable. In the face of such hurdles, some companies are already building new business models. Roche Holding, for example, plans to offer cutprice versions of two blockbuster cancer drugs Herceptin and MabThera under an alliance with Indian generics firm Emcure Pharmaceuticals. It is a scheme that Ajay Kumar Sharma, associate director of pharma/biotech practice at business consultancy Frost & Sullivan, believes other drugmakers could now emulate. CALCULATED RISK: India's stance on IP has long been a thorn in the side of Western business, prompting calls by Pfizer Inc and other US firms last month for more pressure on the country to reform policies that can block US exports. The argument cuts little ice in India, where officials see differential pricing - steep discounts for less well-off markets - as an obvious option for western firms. — Reuters
	Honda to invest Rs 2,500 cr in India by 2014 New Delhi, April 2 Japanese auto giant Honda announced on Tuesday it would invest Rs 2,500 crore in India by 2014 to enhance its manufacturing activities, including setting up a new car assembly line. As part of its plans, the wholly-owned subsidiary of the company, Honda Cars India Ltd, will set up a car assembly line, a diesel engine component unit and a forging plant at its Tapukara facility in Rajasthan. "India is a strategic market for us and it is a strategic base for our local procuring business... We will invest Rs 2,500 crore to expand production capacity of the Rajasthan plant," Honda Motor Co managing officer Yoshiyuki Matsumoto told reporters here. After completion, the Tapukara plant will have an installed capacity to roll out 120,000 cars every year, he added. With setting up of the new assembly line at Tapukara, Honda Cars India's total installed capacity will be 240,000 units annually, considering the Greater Noida plant. The new assembly line and the forging plant is expected to generate 2,200 jobs by 2014. Meanwhile, the company today unveiled a new 1.5 litre diesel engine, which will be fitted first in the upcoming sedan Amaze. Matsumoto also said the company will launch diesel variant of all its future models in India. — PTI
	India eyes trade pact with Eurasia customs union New Delhi, April 2 India, Russia, Belarus and Kazakhstan are exploring the possibilities for a Comprehensive Economic Cooperation Agreement (CECA). India’s Commerce & Industry Minister Anand Sharma and Viktor Khristenko, chairperson of Eurasian Economic Commission, Tuesday agreed to start negotiations for the agreement during a bilateral meeting here. "India is of the view that the need for CECA with the customs union, comprising Russia, Belarus and Kazakhstan, is a well established concept. We have expressed our desire to begin the negotiations for it," Sharma said after the meeting. Sharma suggested setting up a joint study group for the comprehensive economic pact. "Both sides agreed to discuss the terms of reference for the joint study group, composition of joint study group and fixing the time frames for the submission of the joint study group report in June 2013 when Sharma visits St. Petersburg for the International Economic Forum," the commerce & industry ministry said. It said meetings between ministers from all the concerned countries were being worked out. India's total trade with Russia, Belarus and Kazakhstan rose to $7.43 billion in 2012 from $6.54 billion in the previous year. — IANS
	EPF dues: Properties of Eastern Medikit, Koutons attached Gurgaon, April 2 Local industry majors Koutons Retail and Eastern Medikit faced a big setback on Tuesday when they properties were attached and arrest warrants issued against their directors for not depositing EPF dues. Birbal Meena, regional provident fund commissioner (first), said Koutons owed over Rs 24,100,000 to nearly 1,000 workers. The company had failed to deposit the money so the EPF department had attached its properties in Sector 37. Similarly, Eastern Medikit's properties had been attached as the company failed to deposit EPF dues of more than Rs 14,000,000 of over 1,100 workers. — TNS