Shanghai, October 24
Australia, Indonesia and South Korea skipped the launch of a China-backed Asian infrastructure bank on Friday as the US said it had concerns about the new rival to Western-dominated multilateral lenders.

China's $50 billion Asian Infrastructure Investment Bank (AIIB) is seen as a challenge to the World Bank and Asian Development Bank, both of which count Washington and its allies as their biggest financial backers.

China, which is keen to extend its influence and soft power in the region, has limited voting rights in these existing banks despite being the world's second-largest economy.

The AIIB, launched in Beijing at a ceremony attended by Chinese finance minister Lou Jiwei and delegates from 21 countries, including India, Thailand and Malaysia, aims to give project loans to developing nations. China is set to be its largest shareholder with a stake of up to 50%.

Indonesia was not present and neither were South Korea and Australia, according to a pool report.

Japan, China’s main rival in Asia and which dominates the $175 billion Asian Development Bank along with the US, was also not present, but it was not expected to be.

Media reports said US Secretary of State John Kerry put pressure on Australia to stay out of the AIIB.

However, State Department spokeswoman Jen Psaki said: "Secretary Kerry has made clear directly to the Chinese and other partners that we “welcome the idea of an infrastructure bank for Asia but we strongly urge that it meets international standards of governance and transparency.

"We have concerns about the ambiguous nature of the AIIB proposal as it currently stands, that we have also expressed publicly."

In a speech to delegates after the inauguration, Chinese President Xi Jinping said the new bank would use the best practices of the World Bank and the Asian Development Bank.

"For the AIIB, its operation needs to follow multilateral rules and procedures," Xi said. "We have also to learn from the World Bank and the Asian Development Bank and other existing multilateral development institutions in their good practices and useful experiences."

South Korea, one of Washington's strongest diplomatic allies in Asia, has yet to say it will formally participate in the bank.

The Seoul-based JoongAng Daily quoted a South Korean diplomatic source as saying: "While Korea has been dropped from the list of founding members of the AIIB this time around, it is still in a dilemma on what sort of strategic choices it has to make as China challenges the US-led international order."

The AIIB is expected to begin operations in 2015 with senior Chinese banker Jin Liqun, ex-chairman of investment bank China International Capital Corp, expected to take a leading role.

The MoU signed on Friday said authorised capital of the bank would be $100 billion and that the AIIB would be formally established by the end of 2015 with its headquarters in Beijing, state news agency Xinhua said.

ADB president Takehiko Nakao said the AIIB should function in line with international governance, labour and environmental standards.

"I hope the new bank will adhere to these standards," Nakao said in an interview.

The ADB, created in 1966, offers grants and below-market interest rates on loans to lower to middle-income countries. At the end of 2013, its lending amounted to $21.02 billion, including co-financing with other development partners.

China has a 6.5% stake in the ADB, while the US and Japan have around 15.6% each. — Reuters

New Delhi, October 24
The government has no plans to curtail supply of subsidised cooking gas (LPG) from current 12 cylinders per household in a year even as it looks to give cash subsidy to consumers across the country by June.

"There is absolutely no proposal to reduce subsidised LPG quota (per household)," Oil Minister Dharmendra Pradhan said in an interview.

In August, the Narendra Modi-led government gave consumers the freedom to avail their quota of 12 cylinders of 14.2-kg weight at subsidised rate during anytime of the year against the previous restriction of one per month.

Pradhan said the Cabinet had on Saturday modified the Direct Benefit Transfer Scheme for LPG to provide for cash subsidy equivalent to the difference between the current rate and the market price, in bank accounts of each consumer.

But unlike the scheme launched during the previous UPA government, having an Aadhaar card for getting the cash subsidy is not mandatory, he said.

Currently, the modified DBTL is being launched in 54 districts and from January 1 it will be rolled out in all the remaining districts of the country, he said.

"We hope to extend the coverage to all the districts in three months and enroll majority of the consumers in another three months. So you can say by June, majority of the LPG consumers will be covered," he said.

LPG consumers who have opened accounts under the Jan Dhan Yojana too would benefit from the revised scheme. Over six crore such accounts have been opened so far and four crore more are being targeted by the year-end to provide for at least one bank account per household.

Currently, bank accounts of LPG consumers are being seeded with their cooking gas numbers. Once that is done, cash subsidy will be transferred into the bank accounts so that the consumers can buy the LPG refills at market rates.

At present, 12 cylinders are available to consumers at a subsidised rate of Rs 414 each in Delhi. Any requirement beyond this will have to be purchased at market price of Rs 880 per 14.2-kg cylinder.

Oil Minister Dharmendra Pradhan said the Modi government stands for protecting the interests of poor and at the same time it will ease conditions for doing business in the country.

"Reforms and being pro-poor are not oxymorons. Being pro-poor does not mean that reforms will stop. Both the things can go together," he said. — PTI

New Delhi, October 24
The government has set up a think tank to draft the National Intellectual Property Rights Policy and to advise the Department of Industrial Policy and Promotion (DIPP) on IPR issues.

The think tank will be headed by Justice Prabha Sridevan and Narendra Sabarwal, DDG (retd.), World International Property Organization, will be its convener.

The terms of reference of the IPR think tank will include drafting the National Intellectual Property Rights Policy and to identify areas in the IPRs where study needs to be conducted and to furnish recommendations in this regard to the Ministry.

It will also provide views on the possible implications of demands placed by the negotiating partners and to keep the Government regularly informed about the developments taking place in IPR cases which have an impact upon India’s IPR Policy.

Earlier, Commerce and Industry Minister Nirmala Sitharaman had announced that the government will come out with a policy on intellectual property rights and set up a think tank on IPR to strengthen the country’s patent regime and encourage innovation.

The think tank will be headed by Justice Prabha Sridevan and Narendra Sabarwal, DDG (retd.), World International Property Organisation, will be its convener.

New Delhi, October 24
Indian stock markets are likely to remain bullish during the current Hindu calendar year (Samvat 2071) and investors would continue to reap rich gains, say experts.

This year has been euphoric for markets. Apart from the last one month or so, overseas investors have been buying heavily.

People walk in front of the BSE building during the auspicious Muhurat trading on Laxmi Poojan in Mumbai on Thursday. PTI

"Now that markets have been acquiring higher peaks, we can see retail investors coming back gradually. We are likely to witness a rise in retail flow into the market this year.

That will be healthy for the market as so far Indian market is totally dependent on the FII money," said SK Goel, Director, Bonanza Portfolio Ltd.

"Expect the market to remain bullish from this Samvat to the next but volatility is likely to continue. In this rally so far, IT, pharma, auto consumer, banking had been the leaders and we expect these sectors to remain bullish.

The Sensex gained 5,590.42 points, or 26.37%, in the entire Samvat 2070.

Analysts said currently we are in a bull market and stocks will remain as best asset-class in Samvat 2071, provided global markets remain stable.

"With quick policy decision making and reforms clearances, we expect the new government to maintain and build higher confidence for FII investors," an expert said.

With stable macros and policy push by the Modi government, Indian markets should be able to continue doing good. Reforms at the Centre are the key for the next leg of rally, say analysts.

"This Samvat year would be positive for markets as macroeconomic data have been positive and there are expectation that slew of reforms would greet investors during this period," said Alex Matthews, Geojit BNP, Research Head. — PTI

New Delhi, October 24
The DoT has invited bids to select an agency to conduct e-auction of spectrum in various bands of telecom airwaves.

The department has issued a notice for Request of Proposal for the selection of an agency to conduct e-auction of spectrum on simultaneous multiple-round ascending auction (SMRA) pattern in the 22 telecom service areas (TSAs).

The technical and financial bids of the interested parties should reach the department by November 11, 2014.

DoT will shortly issue the guidelines for spectrum auction in 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands.

The interested parties also have to provide an Earnest Money Deposit (EMD) of Rs 10 lakh along with their proposal.

On the auctioneer’s fee, the DoT said: “Bidders have to quote per service area price (single quote and payable per band, separately) for holding a successful auction.” The amount payable to the auctioneer on completion of a particular auction would be arrived at after multiplying the rate per service area with number of total service areas (counted separately for all bands) in which auction is successful, it added.

For more clarification on the bids for conducting e-auction, DoT will hold a pre-bid conference with interested parties on October 27, 2014.

The Department of Telecom is working on modalities for next round of spectrum auction for which it needs to appoint an agency that will design software and operate whole auction process which is conducted online.

The department selects auctioneer through tender process. — PTI