New Delhi, August 22
In a move that could lead to increase in sugar prices, the government today hiked the import duty on both raw and refined sugar to 25% from the existing 15%.

The increase in duty would make imports unviable and may lead to some jump in domestic sugar prices that could cause burden on consumers but would help revive the business of cash-starved mills who owe farmers around Rs 6,800 crore.

India has been importing sugar in small quantities taking advantage of lower global prices.

According to a notification issued by the Central Board of Excise and Customs, import duty has been raised to 25% on raw sugar and refined or white sugar.

The higher duty will also be applicable to bulk consumers who import raw sugar, the government said, adding that this has been done in public interest.

The Food Ministry had recommended increase in import duty on sugar to 40%. “However, the Finance Ministry has hiked the duty marginally, considering inflationary concerns and to give some relief to domestic millers,” a senior Food Ministry official said.

Currently, domestic sugar prices are ruling stable in the range of Rs 34-40 per kg in view of surplus stocks, as per the data maintained by the Consumer Affairs Ministry.

Sugar mills are facing a cash crunch as domestic prices have slipped below the cost of production, hurting their profits.

Mills in Uttar Pradesh are selling sugar at Rs 30.50 per kg, while the cost of production remains at Rs 37 per kg.

Similarly, mills in Maharashtra are selling the commodity at Rs 28.50 per kg as against the cost of production of Rs 31.

Industry Body Indian Sugar Mills Association (ISMA) hailed the decision saying this will improve cash-flow of millers and help clear cane arrears.

“We welcome the decision. At current global prices and rupee-dollar exchange rate, this increase in duty will check all sugar imports, which will certainly improve the domestic market sentiments,” ISMA Director General Avinash Verma said.

Currently, sugarcane arrears stand at about Rs 6,800 crore across the country, with the maximum of Rs 5,000 crore in Uttar Pradesh, he added.

The government has announced several measures to improve liquidity of millers.

Earlier this year, the government had rolled out a scheme of Rs 6,600 crore interest-free loan to mills for making cane payments to growers. It is also giving export subsidy. — PTI

New Delhi, August 22
Nearly two months after it put off a steep gas price revision, the government has constituted a four-member committee of secretaries to hold consultations with stakeholders before deciding on the quantum of hike.

“The committee will comprise Secretaries of Power, Fertilizer and Expenditure while Additional Secretary in the Oil Ministry will be member secretary to the committee,” said Rajive Kumar, Additional Secretary in the Oil Ministry here.

The panel will hold extensive consultations with stakeholders, primarily gas consumers and producers and submit a report within 2-3 weeks, he said. “The first meeting is scheduled for Monday.”

The Cabinet Committee on Economic Affairs had on June 25 deferred by three months the implementation of the Rangarajan formula that would have doubled gas price to $8.4 per million British thermal unit.

The Rangarajan formula, approved by the previous UPA government, was to be implemented from April 1 but was deferred by three months as General Election was announced.

The NDA government on June 25 postponed its implementation by a further three months pending a comprehensive review.

“The timelines have already been drawn (by the Cabinet) and so the report will be submitted within a few weeks,” he said adding the mandate of the committee is to “review” the pricing mechanism.

Earlier this month, Oil Minister Dharmendra Pradhan had told Parliament that the NDA government decided to review the pricing formula keeping in mind public interest and recommendations of the Parliamentary Standing Committee.

He had said a decision will be taken keeping in mind the interest of investors and public and a new formula will be announced by September 30. Till then, the $4.2 per mmBtu price will continue. — PTI

New Delhi, August 22
In its biggest-ever crackdown on a large-scale illicit money-pooling scheme estimated at nearly Rs 50,000 crore, regulator SEBI today ordered immediate closure of unauthorised collective investment schemes (CIS) run by PACL Ltd and refund of investors’ money within three months.

Besides, the capital markets regulator also said it is initiating further proceedings against the company and its nine promoters and directors for fraudulent and unfair trade practices, as also for violation of SEBI’s CIS Regulations, among others, as per direction from the Supreme Court.

As per SEBI’s 92-page order, the total amount mobilised by the company, “by its own admission” comes to a whopping Rs 49,100 crore and “this figure could have been even more if PACL would have provided the details of the funds mobilised during the period of April 1, 2012 to February 25, 2013”.

The number of customers through which the money could have been collected is estimated at around 5.85 crore, which includes the customers who said to have been allotted land and who are yet to be allotted the land, SEBI said. — PTI

New Delhi, August 22
The Centre today brought about major changes in the classification of hotels. According to the new specifications, the presence of a bar serving alcohol on the premises would no longer be mandatory for classifying four and five-star hotels in non-heritage sector and classic category hotels in heritage sector.

Tourism Minister Shripad Yesso Naik said the decision would provide flexibility to hotel owners and management to take considered decision on whether to provide alcohol service or not in their units.

As per the new guidelines, hotels in the categories of four and five-stars in non-heritage sector and classic category hotels in heritage sector will now be classified as “5-star with alcohol service”, “5-star without alcohol service”, “4-star with alcohol service”, “4-star without alcohol service”, “classic heritage with alcohol service” and “classic heritage without alcohol service”.

Chandigarh, August 22
Low-cost airline, AirAsia India is set to launch its flights from Chandigarh in the next two months.

Confirming the news, AirAsia India's chief Tony Fernandes said the extension of its business to Chandigarh was part of the airline's expansion plans to North India. The airline is expected to start its operations from Chandigarh airport within the next two months. Chandigarh is among the leading cities in offering good business to airlines in running domestic services.

Air Asia’s second plane for the Indian operations would be there next week and another in September, he said.

“We are going to put six planes in India,” said Fernandes, adding that expansion was underway to many destinations in India, including Jaipur.

AirAsia India is currently operating flights from Bengaluru to Chennai, Kochi and Goa. The upcoming international terminal at local airport is expected to start operations by April 2015.

New Delhi, August 22
Reinforcing the improvement in the growth-inflation trade off, Finance and Economic Affairs Secretary Dr Arvind Mayaram has validated the emerging green shoots in the Indian economy.

At a meeting with Assocham president Rana Kapoor, he expressed confidence in the government achieving its tax revenue growth projections, progressively eliminating subsidies and thereby adhering to its medium-term FRBM roadmap.

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