Biodiesel to herald India’s fuel self-sufficiency: Patil

NEW DELHI, Dec 1: After making the use of ethanol-blended petrol mandatory in eight states and four union territories from January one next year, the Government is now examining the possibility of introducing biodiesel in the country, which might hold the key to India’s fuel self sufficiency.

India imports 72 per cent of its total requirement of crude oil, which could be drastically reduced by adopting biodiesel, according to Union Minister of State for Rural Development M K Annasaheb Patil.

Diesel constitutes nearly 40 per cent of the total energy consumed in the form of oil in the country. Replacing diesel with indigenously produced, natural and renewable biodiesel in vehicles could make the country self-sufficient and reduce the oil bill drastically, Mr Patil told UNI.

Biodiesel, or B-Urja as the minister prefers to call it, is an alternate fuel that can be obtained by transesterification of edible and non-edible oilseeds. India produces a surplus of two million tonne non-edible oilseeds each year that can be used for the production of biodiesel.

Moreover, India has 175 million hectares of wastelands. According to Mr Patil, even if 30 million hectares are brought under the cultivation of high-yielding tree-borne oilseeds such as Jatropha, Mahua and Karanja, among others, biodiesel could completely meet the diesel requirement of the country.

An annual investment of Rs 4,000 crore on development of wastelands for cultivation of tree-borne oilseeds for a period of five years, could subsequently eliminate oil imports worth Rs 30,000 crore per year, the minister claimed. Apart from a substantial saving to the country’s exchequer, developing wastelands to cultivate tree-borne oilseeds for biodiesel extraction would also provide direct employment to 15 million people. Besides, many more will be employed in collecting, marketing and processing the oilseeds. It would involve not only agricultural labour, but skilled manpower as well in agriculture, chemical and industrial sectors, he added.

Though 85 plants in 22 countries are already producing biodiesel, the Government has commissioned two commercial projects in Andhra Pradesh and Maharashtra to test the efficiency of biodiesel in diesel-run vehicles.

The minister claims that biodiesel can be used as fuel in internal combustion engines without any substantial modification to the existing design of the engine. It can be used successfully as an alternative fuel as it is more environment-friendly as compared to conventional petroleum-based fuels.

Biodiesel is a naturally oxygenated fuel, resulting in considerable reduction of unburnt hydrocarbons, carbon monoxide and particulate matter in the emissions. It does not contain any sulphur, completely eliminating the possibility of harmful sulphur oxides in vehicular exhaust. Biodiesel also does away with the problem of lubricity, generally faced in ultra low sulphur diesel.

Once indigenous production of biodiesel starts in India, it would provide a cleaner and cheaper alternative to petroleum-based fuels. With its cost pegged at Rs 16 per litre by Mr Patil, biodiesel could provide a direction to India’s search for a cost-effective alternative fuel in the volatile world market faced with fast-depleting reserves of non-renewable petroleum-based fuels. (UNI)

India increasingly becoming less attractive FDI destination

NEW DELHI, Dec 1: India is increasingly becoming a less attractive destination for Foreign Direct Investment (FDI) for a variety of reasons, even as China has upstaged the United States to become the country which receives the highest level of foreign investment.

An Assocham study, which has brought this out, cites the slow pace of economic reforms, poor health of public institutions, high corporate tax, inflexible labour laws, infrastructure bottlenecks and procedural delays as the reasons for India recieving small level of FDI.

The present rate of corporate tax is 36.5 per cent for foreign companies as compared to East Asian countries which levy much less corporate tax, apart from extending other tax advantages to companies with foreign holdings.

The study says labour laws in India are perceived by MNCs as being inflexible as compared to international practices. TNCs are now increasingly demanding flexible management of labour force and the lack of this is hampering FDI flows to India.

Enterprises in India have to operate within the confines of urban land (ceiling and regulation) act of 1976. The act is perceieved to be archaic as it prevents enterprises from selling surplus land in major cities without the permission of the State Government. The arbitrary provisions of this act hinder investment in real estate.

While the reforms implemented so far have helped remove entry barriers, the exit barriers have only been partially liberalised. Tardy progress on this front is largely due to the perception among the political class that the entire concept is anti-labour.

The Assocham study says that infrastructure is a major factor influencing locational differences in FDI flows. Indian States having better infrastructure have attracted larger FDI in recent years.

Referring to the hassle factor, the study says that a foreign investor is required to approach as many as 17 districts and central authorities for clearence before a final approval for investment is granted. These requirements generate enormous delays and reduce financial viability of an investment project. There is thus an urgent need to simplify procedures, the study says. (UNI)

FIIs net buyers in equities at Rs 601.8 crore in Nov

MUMBAI, Dec 1: The Foreign Institutional Investors (FIIs) were net buyers in equities and debt at Rs 601.8 crore (US dollar 124.2 million) and Rs 135.9 crore (USd 20.7 mn) respectively during the month of November.

Mutual Funds (MFs) were net sellers in equities at Rs 339.35 crore and netted purchases in the debt market at Rs 2,062.4 crore for the period under review, according to the information available with Securities and Exchange Board of India (SEBI).

FIIs registered net inflows in equities on 13 trading days in the month while they remained away from the debt market on 17 days.

On November 18, the foreign funds bought and sold equity instruments to the tune of Rs 328.8 crore and Rs 144.9 crore respectively, thus netting purchases of Rs 183.9 crore (USd 38 mn), the highest for the month.

They also recorded net inflows of Rs 114.3 crore (USd 23.6 mn) on November six and Rs 89.5 crore (USd 18.5 mn) on November one.

The FIIs, on November 28, had bought equity instruments of Rs 147.1 crore and sold to the tune of Rs 241.8 crore, thus recording net outflows of Rs 94.7 crore (USd 19.6 mn).

MFs were net sellers in equity market on 12 days while netting purchases for 18 days in debt. The mutual funds were net sellers in equities at Rs 72.27 crore and Rs 72.10 crore on November 25 and 22 respectively.

In debt market, MFs registered their highest net inflows of Rs 331.8 crore on November 11 followed by Rs 213.8 crore on November 28 and Rs 200.4 crore on November 22. (PTI)

Fall in diesel, petrol prices drive inflation down to 3.14 pc

NEW DELHI, Dec 1: Cheaper diesel and petrol pushed the inflation, which was on the upswing for the past four consecutive weeks, down by 0.13 per cent to 3.14 per cent for the week ended November 16.

The price change fell from the previous week’s figure of 3.27 per cent mainly due to falling fuel prices on account of reducing global crude prices following easing of tension in Middle East with Iraq agreeing to UN arms inspection. The index was 2.78 per cent in the previous year.

Wholesale price index (WPI) fell marginally by 0.1 per cent to 167.5 from 167.6 even as manufactured products’ prices soared due to costlier food products, textiles, chemicals and transport equipment.

The final WPI stood corrected at 167.2 for the week ended September 21 as compared to the provisional level of 167.6 and the final point-to-point inflation was 3.34 per cent against the provisional level of 3.58 per cent.

The consumer price index for industrial workers rose by two points in October to 487 owing to increase in prices of rice, wheat, onion, vegetables, fruits and kerosene oil.

The index for primary articles’ group fell marginally by 0.1 per cent to 175.6 from 175.7 due to cheaper food items, even as minerals and non-food articles became costlier. The index was 162.4 in the previous year.

Food articles’ group index fell by 0.3 per cent to 181.9 owing lower prices for bajra and tea (three per cent each), fruits and vegetables (two per cent) and rice and urad (one per cent each). Prices, however, rose for jowar (five per cent), maize (four per cent) and condiments and spices (one per cent).

The index for non-food articles’ group rose sharply by 0.6 per cent to 164.2 on account of costlier copra (nine per cent), niger seed (seven per cent), groundnut seed, rape and mustard seed and fodder (two per cent each) and kardi seed and sunflower (one per cent each).

There was a four per cent fall in the price of raw silk and one per cent in mesta.

Minerals’ group index rose by 0.2 per cent to 119.2 owing to price rise in ochre (86 per cent), fire clay (seven per cent) and dolomite (five per cent).

But there was seven per cent dip in the price of barytes and six per cent in stealite.

Fuel, power, light and lubricants’ group, which remained firm for the last three weeks, fell by 0.5 per cent to 240.1 from 241.2 owing to cheaper high speed diesel (three per cent) and petrol (two per cent), even as there was a 16 per cent increase in the price of aviation turbine fuel. The index was 231.4 in the previous year.

The index for manufactured products’ group rose by 0.1 per cent to 148.5 and the index was 144.3 a year ago. (PTI)

Call rate to rule firm, bonds to take direction from OMOcut-off

MUMBAI, Dec 1: The call rate is expected to rule slightly firm during the week amid the fresh Open Market Operation (OMO) sales of about Rs 4,500 crore on Monday and increased borrowing at the beginning of the reporting fortnight.

Government bonds are likely to be rangebound initially during the week as players would wait for the OMO result but may see some movement later taking direction from the auction cut-off, said dealers.

The market would also wait for the announcement of a further bond auction, they said.

During the week ended November 29, the call rate ruled stable at the sub-repo level amid subdued demand towards the reporting Friday and the Reserve Bank of India (RBI) repos absorbing the surplus funds.

The abundant liquidity in the system and the thin demand resulted in huge subscriptions of Rs 60,520 crore to the RBI repos during the week, translating into a daily average of Rs 12,104 crore which was fully accepted by the bank at a cut-off rate of 5.50 per cent.

The call rate opened at 5.40-50 per cent and stayed below the repo rate between 5.00-5.30 most part of the week, though a temporary mismatch in demand and supply on the reporting friday pushed the rate to a high of 5.75 per cent for a brief while after some private and foreign banks with open positions rushed for funds.

The rate closed the week at 5.40-50 per cent, marginally higher from the previous week’s close of 5.30-.50 per cent. The secondary market for Government securities witnessed volatile movements during the week with bond yields touching new life-time lows midweek before recovering towards the weekend.

The abundant liquidity, absence of any fresh auction announcement as well as the lower cut-off yield in wednesday’s 364-day treassury bill auction propelled strong buying support in the bond market during the first three days of the week.

Yields on bonds dipped to new life-time lows on Thursday intra-day deals as cash-flooded banks continued to invest in the secondary market for Government securities.

However, sentiment was suddenly marred after a senior RBI official’s comment on thursday evening that the bank was uneasy with the current gilt rally followed by the OMO announcement on Friday.

Bond prices, which moved inversely with yields, wiped out all the initially gains of over one rupee towards the weekend on selling pressure and ended the week on a bearish note. (UNI)

Delhi to host Indiasoft 2003

NEW DELHI, Dec 1: Indiasoft 2003, the largest IT global networking event in the country, will be held in the national capital from February 20-22.

Comprising international exhibition and conferences, the event will focus on software and IT enabled services, IT financing and IT infrastructure, according to Mr D K Sareen, executive director, electronics and computer software export promotion council (ESC), which is organising Indiasoft 2003.

This is meant to create awareness about the capabilities and core competence of Indian software and services industry and to facilitate joint ventures, collaborations and strategic alliances for outsourcing with overseas buyers, he said.

More than 150 senior executives from 30 countries will participate in this business to business forum. The delegations from the US, UK, China, Italy, Korea, Indonesia, Japan, Australia and Singapre have already confirmed their parlicipation, he said.

Despite the global slowdown, particularly in the US, export of IT enabled services have grown by 37 per cent in 2001-02 as compared to the previous year. India has upped its export of IT and it enabled services to the US by two percentage points. In the US, East Coast and mid-West States are emerging markets for India, despite a slowdown in the Silicon Valley, he said.

Considering the keen interest shown by the oveseas industry, Indiasoft would be an ideal forum for them to interact with the Indian IT industry. The main foucs would be on business services, finance, banking, insurance, manufacturing, education and training and embedded software, he said.

Markets of European Union, Latin America, far East and the Middle East would be given special attention, he added. (UNI)

WUFS asked not to undertake domestic money transfer activity

MUMBAI, Dec 1: The Department of Industrial Promotion and Policy of the Union Government has asked the Western Union Financial Services (WUFS) not to undertake any Domestic Money Transfer (DMT) activity in India since the formulation of policy in this respect is yet to be finalised by the authority.

Dr Vijay Kelkar, advisor to the Union Finance Minister, in a statement said that the company was advised not to undertake the DMT activity till the Reserve Bank of India takes a policy decision in this regard.

The Western Union has approached the Union Ministry and RBI to seek approval for starting the DMT business from December, but the company is yet get the approval because the decision was put on hold pending outcome of the writ petition filed before the high court of Madhya Pradesh.

WUFS, a US based money transfer company having worldwide network, was granted permission by the foreign investment promotion board (FIPB) in December 2001, to set up a 100 per cent wholly owned subsidiary in India to undertake the DMT services subject to the compliance with regulatory framework along with a minimum capitalisation requirement of US dollar 50 million.

In the current scenario, there was no specific regulatory framework for private money transfer companies for domestic operation since such business was regulated through state-owned post offices.

However, FIPB in its approval letter, mentioned that the DMT activity would attract the minimum capitalisation norm application to fund based activities under Non-Bank Finance Company (NBFC) guidelines for foreign direct investment upto US dollar 50 million. (UNI)

World Computer Literacy Day today

NEW DELHI, Dec 1: The stage is set for the much awaited event, the World Computer Literacy Day tomorrow, when over two lakh people are scheduled to be ushered into the computer and internet world.

In India, various cities and towns and even rural areas will witness enthusiastic assemblies where thousands of people take a holy dip in computer literacy waters, cleansing themselves of it ignorance and aligning themselves with the internet environment. The Sakhsharata camps organised in many places in North India have evoked much response.

The worldwide IT literacy event, conceptualised by computer education pioneer NIIT last year, has evolved into a movement that has garnered unprecedented support from myriad quarters. From many Indian organisations to Government and industry leaders, celebrities and countless citizens, World Computer Literacy Day has become a rallying point for diverse segments within the national and international fabric.

The movement which was started on October 22, with noted Indian brands like Airtel, Webdunia and Cyber Media supporting the mission, has enlisted the involvement of many other prestigious names as it has gathered steam. Companies, large and small, have lent a helping hand to the event adding to its fervour and expanding its scope.

Airtel has sent the day’s message through SMS to its 23 lakh subscribers inviting them to join the Swift Jyoti bandwagon, the initial computer course.

This year’s event will serve as the launching platform for language software, Windik, created by Indore based Webdunia. Incidentally this year’s programme will be available in four Indian languages- Hindi, Tamil, Gujarati and Marathi, besides English. The Swift Jyoti Software and course books will be available free of cost for six months.

The country’s fourth estate, including The Hindu, The Statesman, India Today, Rajsthan Patrika, Competition Success review and a host of others, has backed the World Computer Literacy Day. Internet companies like indiatimes.Com, rediff.Com, ciol.Com and netvarsity.Com have readily linked their names to the movement, enabling on-line registration for Swift Jyoti and the gifting of this programme to global citizens.

The event is also a saga of individual commitment and initiative. Eminent personalities like chess grandmaster Viswanathan Anand have been providing succor to the great computer literacy cause.

About 500 retail outlets including petrol pumps and beauty parlours have made arrangements to initiate people into the Swift Jyoti programme.

In Delhi, several MPs will have an introduction to the computer tomorrow. Information Technology and Communication Minister Pramod Mahajan will participate in a programme for MPs at the Parliament annexe. Prime Minister Atal Behari Vajpayee has also taken keen interest in the programme. (UNI)

IT should be used intelligently to meet social needs: Sahani

PANAJI, Dec 1: Goa Governor, Kidar Nath Sahani urged the IT experts to utilise their talent to alleviate problems like unemployment and others and also to motivate youths take the state to new heights of progress and prosperity.

The Governor was speaking as the chief guest after inaugurating the two-day conference on Goa Agenda-IT for society organised by the Goa Chamber of Commerce and Industry here today.

Speaking further Mr Sahani said, it has emerged as a technology of vital importance and relevance for development efforts. It should be used intelligently to meet the social needs and challenges, he added.

The theme of this conference ‘The Goa agenda- IT for society’ is exactly the need of not only the state but of the whole country. The contribution of IT to information needs, is not IT enabling of services, nor if this a business process of outsourcing, but IT for society drives the key process that serve society needs. The information technology development has opened the flood gates of education and information to one and all.

Governor said one should be proud that the India IT professionals are at the forefront of this movement. It movement should achieve much greater heights. He said, an alertness and motivation on the part of younger generation to work hard will help them to achieve their goals on the IT front.

Chief Minister Manohar Parrikar, who was also present said Goa is the only state in the country which is fully literate and also it literate. He said, every school in Goa has been provided computers and the unique scheme of cyberage for students will provide computers to thousands of families during the next five year period. (UNI)

Special facilities to be given to industrial units

SHIMLA, Dec 1: Prime Minister Atal Behari Vajpayee today said that special facilities would be given to industrial units set up in backward districts of Himachal Pradesh and Uttaranchal.

Talking to newsmen here, he said the Union Cabinet would shortly finalise details of already agreed upon package for the two states.

He said that, under the package, income tax and excise duty exemptions would be given to new industries in backward districts. These districts would be identified in consultation with the two State Governments, he added.

Mr Vajpayee said the Centre wanted that industries were established in those districts of Himachal which did not have any industrial unit. (UNI)

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