Mumbai, July 26
Defending the decision to double gas prices from next fiscal, Oil Minister M Veerappa Moily today said the government cannot afford a 'timid mindset' while taking policy decisions of national importance. "We cannot be afraid of the ghosts of 2G, CBI, CAG, (when we take decisions of national importance)," he said addressing an oil conference here.

In the aftermath of a string of scams in telecom spectrum and coal block allocation, the bureaucracy has been cautious in taking decisions and on may occasions put off decisions for fear of being criticised by the CAG, CVC or CBI.

"Bureaucracy needs to be operated by giants and not pygmies," he said. "We have to destroy bureaucratic delays and focus more on delivery rather than processes." "We don't have the giants like Exxon, except BP, coming to India. Nobody is coming. That is because of our timidness to take decisions... what we need is boldness," he said.

The government's decision late last month to double natural gas rates to $8.4 per million British thermal units from April 2014 had come in for sharp criticism as it would lead to sharp rise in urea and power production cost and was seen as benefiting Mukesh Ambani-run Reliance Industries.

Moily, however, defended the move saying it would help bring to production at least 3 Trillion cubic feet, or equivalent to RIL's currently producing fields in KG-D6 block.

"Everything has a price and you have to give the price," he said. "Over 3 Tcf of discovered gas reserves are not being developed as they are not viable at $4.2 (per mmBtu)." Moily said even upstream regulator, the Directorate General of Hydrocarbons (DGH) had not approved commercial production from several of the discoveries as they were not viable at current rate of $4.2.

"In future, nobody will come if gas prices are not revised. We have come to a grinding halt. We are not ready to pay $6.8 (per mmBtu) in India but are importing (LNG) at $17," he said. With the government deciding to price all gas in the country at the Rangarajan formula of an average of imported LNG cost and international gas hub rates, this will help improve gas production in the country, Moily said. The price as per this formula currently comes to $6.83 but in April when it is to be implemented, it would be around $8.2-8.4.

"If volumes increase and more investments and latest technologies come into the sector, gas prices may even come down in the future," he said. "I would like to say that either produce oil and gas or perish. There is no intermediate way."— PTI

New Delhi, July 26
Hindustan Unilever Limited (HUL), India's largest FMCG company, today announced top management changes with Sanjiv Mehta replacing Nitin Paranjpe as Managing Director and Chief Executive Officer.

HUL, which is the most valuable MNC in India, owns brands like Lux, Lifebuoy, Clinic Plus, Surf, Lipton and Pepsodent and claims to "touch the lives of two out of three Indians".

Paranjpe, after a five year stint as HUL chief, will be elevated in a global role at parent Unilever and become the president, Home Care of the FMCG company.

Sanjiv Mehta, chairman, North Africa & Middle East (NAME), Unilever, will replace Paranjpe as MD and CEO of the company with effect from October 1.

Harish Manwani, HUL chairman, said, "The changes reflect our strong commitment towards leadership development and our tradition of leveraging experiences and synergies of talent across markets."

HUL has had the tradition of elevating Indian managers to global roles with the parent company. Paranjpe will join the ranks of his predecessors, including Manwani, Keki Dadiseth and Vindi Banga who have moved from executive positions in HUL to play a bigger role with Unilever.

"Mehta will also be responsible for South Asia cluster which includes India, Pakistan, Sri Lanka, Bangladesh and Nepal," the statement added. Unilever recently invested $ 5 billion in raising stake in its Indian arm and it stock price is among the most expensive in terms of multiples to earnings.

The results announced for the first quarter were weak with slowdown in the economy with a volume growth of only 4 per cent and as a result the stock fell by 5 per cent.

Commenting on the results, Manwani said, "In a difficult market environment, we have again delivered competitive growth and strong margin expansion through a sustained focus on innovation, in-market execution and robust cost management. While there are near-term concerns particularly around slowing market growth, we are confident of the medium to long-term growth prospects of the FMCG sector and our strategy of driving growth and profitability through innovation and operational excellence."

Rikesh Parikh, VP - Equities, Motilal Oswal Securities said the HUL numbers reflects the slowdown in personal products and processed foods category. Consumer demand had deteriorated sequentially with disproportionate impact on discretionary and premium personal care and foods categories. Lack of pricing levers in soaps and detergents impacted Q1 revenue growth. Pricing impact is fading even in personal products.

Ritwik Rai, FMCG Analyst, Kotak Securities, said the weak underlying volume growth of 4 per cent was the prime disappointment in HUL's results, leading to a negative surprise at the topline. He said the weakness in volume growth and revenues was largely attributable to the personal products segment, concentrated largely in skin care.

New Delhi, July 26
The Inter-Ministerial Group (IMG), set up to look into the development of companies named in an FIR registered by the CBI, has asked the Coal Ministry to seek legal advice over the same before further action.

The CBI has so named six mines which are allotted to firms like ArcelorMittal, Sterlite Energy, Lanco, Reliance Energy besides some also to Jindal Steel and Power Ltd. The IMG is of the view that the Coal Ministry should seek an opinion of the Law Ministry with regard to these mines and then move forward regarding the action being recommended by the panel.

The mines identified by the IMG are part of the group which has been identified for further action for either deallocation or deduction of the bank guarantee. The IMG has, while pointing out that the CBI has named them in its FIRs, “remitted the matters back to the Coal Ministry to take a view in the matter in consultation with the Law Ministry,” an official document said.

According to officials, the blocks, include Rampia & Dip Side of Rampia mine, Thesgora-B/Rudrapuri mine and Bander mine.

New Delhi, July 26
Assocham president Rana Kapoor today said bringing stability in the exchange rate of the rupee was a critical issue which could bring investor confidence back into the economy.

Addressing his first press conference after taking over as Assocham president, Rana Kapoor, Founder, Managing Director & CEO, Yes Bank, said any reduction in interest rates in the forthcoming monetary policy of the RBI looks impossible and even status quo itself in the key rates will be a big decision.

The Assocham president, who will be participating in the meeting of the Prime Minister Advisory Council on trade and industry on July 29, said he would flag a number of critical issues. Essentially, they would relate to things which could act as economic impulses for revival of the investment cycle.

Taking advantage of the rupee depreciation to help revive the export sector is also key objective and the Assocham would place it before the PM Advisory Council. In the backdrop of a sharp depreciation of the rupee value, the Indian currency is more competitive by over 30% against the currencies of other export-oriented Asian economies such as China, Korea and Philippines. This gives the country a rare opportunity to make Indian products and services more competitive in the global market, Kapoor said.

For takeoff of the big ticket projects, it is important to have a Cabinet Committee on Investment type mechanism at the state levels as well. The pending reforms on FDI and legislative issues like insurance, Goods and Services Tax and Direct Tax can also make a difference to the shaken business confidence and revive the confidence, Kapoor said.

New Delhi, July 26
Online transfer of PF accounts on changing jobs will soon be a reality as retirement fund manager Employees' Provident Fund Organisation (EPFO) has started registering digital signatures of employers, a prerequisite for providing the facility.

According to an official circular, the EPFO has directed its over 120 field offices to depute a nodal officer to facilitate the registration of digital signatures of firms.

The facility of uploading digital signatures will be available on the Online Transfer Claim Portal through the EPFO website.

According to the EPFO, the success of online transfer of PF accounts would depend on how many employers register their digital signatures, which are essential to authenticate transfer claims.

Taking the first step towards launching the online PF transfer claim facility, the EPFO had earlier this month unveiled a revised claim form for the purpose.

The EPFO is likely to start the online PF transfer claim facility by the end of next month. With this, EPF subscribers would be able to apply online to transfer their accounts through their new employers. The revised transfer claim form can be presented after verification by the present employer or the previous employer.

Previously, the form could be submitted only after verification by the present employer.

The EPFO has set up a central clearance house to enable subscribers to apply online for PF withdrawal and transfer claim settlements.

During 2012-13, 107.62 lakh claims were settled, of which 88 per cent were processed within 30 days, as prescribed by the body's citizen charter.

The EPFO expects 1.2 crore claims in 2013-14, including around 13 lakh PF transfer claims. It plans online settlements of about 10 lakh transfer claims of tech-savy applicants from industries such as IT this fiscal. — PTI

Gurgaon, July 26
The demand of Rs 500 crore by the Haryana Government from Mauti Suzuki India Ltd (MSIL) on the ground of enhanced land compensation is not only irrational, but may prove an obstacle in the development of southern Haryana, the NCR Chamber of Commerce and Industry stated in a statement today.

“The chamber considers the decision of the HSIIDC as impractical,” the statement stated, adding that the government should reconsider the decision because if the Maruti shuts its plant, it would have a cumulative negative affect on financial status of the state.

NCR Chamber of Commerce and Industry president HP Yadav said the demand of Rs 500 crore by the HSIIDC could not be justified.

He said Gujarat and other states had extended many facilities for the industry such as allocation of land at cheap rates and tax holiday packages, whereas Haryana was demanding an increased amount on the allotted land.

Yadav demanded that the decision be reconsidered as if Maruti moves away from the state, it would be an industrial catastrophe not only for south Haryana, but for the entire state.