India seeks concessional pricing of crude oil

OSAKA (JAPAN), Sep 21: India today sought concessional prising of crude oil and liberal credit terms for developing countries to offset the spurt in global crude prices.

"In a high price scenario, there is a need for oil producers to extend concessional pricing and liberal credit terms to developing countries," Petroleum Minister Ram Naik said in his address to the 8th International Energy Forum here.

Discussions at the meeting, which bring together oil producing and major consuming countries, focused on current international issues like price volatility, limited transparency and reliability of data as well as long-term energy situation.

Naik said the oil markets were in turmoil as the OPEC quota had fallen from about 5 million barrels per day between 1998 and 2002 while oil demand during the corresponding period has growth by 2.5 million barrels per day.

"Speculative activity thrives in a market with deficit supplies and low inventories and there is a need for oil produers, with substantial spare capacity, to increase production and bring prices down to reasonable levels and minimise price volatility," he said.

Suggesting ways of reducing price volatility, the Minister suggested that the oil cartel (OPEC) implement caps and floors for physical cargoes when the price band mechanism is breached besides adjustment of supplies.

He also suggested ignoring the abnormal price movement arising from speculative action while pricing physical cargoes.

Seeking a mechanism to insulate developing countries from high volatilities, Naik said oil producers should extend discounted pricing to these countries while removing disparities in crude pricing.

Crude oil prices have jumped 40 per cent this year to close to 30 dollars a barrel while India is comfortable at 22-23 dollars a barrel, he said.

Naik, who was speaking at the first session on ‘World Energy Situation and Outlook’ which was chaired by Saudi Oil Minister Ali T Naimi, stressed the need for sustainable and stable oil prices.

Earlier in the day, Naik had bilateral meetings with the Japanese Vice Minister of International Affairs, Kuwaiti Oil Minister, Energy Minister of Sudan and UAE Minister of Petroleum.

The Minister showcased investment opportunities in India particularly in areas of oil exploration, lng projects and downstream petroleum infrastructure.

An important issue taken up by Naik with Japanese Vice Minister related to the pricing pattern by the middle east producers for North America, Europe and the countries located east of Suez.

As per the extant methodology for fixation of official selling prices by the middle east producers, on fob basis, crude costs 1.50-2 dollars per barrel higher in comparison to North American and European markets.(PTI)

Nearly 4000 employees given VRS offer by centre

KOLKATA, Sept 21: Nearly 4000 employees of Hindustan Fertiliser Corporation and Fertiliser Corporation of India have been offered VRS by the Centre even as the employees union threatened to launch an intensive agitational programme in protest against the decision.

The notices offering vrs were circulated in the various plants at Haldia, Barauni, Durgapur and Sindri.

While the first three plants of Hindustan Fertilisers involved 1318 workers, the last one belonged to Fertiliser Corporation of India employing 2500 workers.

All the three plants of HFC and FCI’s Sindri unit were under closure for several months now.

Meanwhile, both the CITU and INTUC affiliated workers’ unions at the plants have decided to adopt a series of agitational programmes, which include ‘Rail Roko’ and gherao of the Jharkhand Chief Minister Babulal Marandi.

When contacted, the Union Minister of State for Fertilisers, Tapan Sikdar, said his ministry had formulated an alternative survival strategy for the Durgapur and Sindri plants by making them operative with the help of methane gas available from Ranigunj in West Bengal.

He said if the proposal was accepted by the Government, then the two plants could become viable as methane gas would be cheaper than naphtha and oil. (PTI)

Affiliated unions demand INTUC President’s resignation

MUMBAI, Sept 21: Sixteen different trade unions under the umbrella of the Indian National Trade Union Congress (INTUC) today demanded the resignation of INTUC national president Sanjiva Reddy for his support to Labour Commission’s recommendations to the Centre on the new labour policy.

Mr Adik, later told reporters, that the representatives of the unions strongly resented at Mr Reddy’s reported statement supporting the recommendations which were against the interest of workers and labourers.

Through a resolution, the meeting also urged Congress president Sonia Gandhi to dismiss Mr Reddy as INTUC national president. The meeting also urged the Union Government not to accept the Labour Commission recommendations in toto.

Mr Adik said the new labour policy protects the interest of employers by empowering them to close down their establishment, retrench workers without prior notice, appoint staff on contract and not pay compensation to workers.

"These provisions in the new policy are totally against workers’ interest," he said.

An action committee headed by trade union leader Bhai Jagtap has also been formed doving the meet, to chalk out the course of action if their demands were not met, he added. (UNI)

Rajasthan may suffer Rs 500 crores yearly due to VAT

JAIPUR, Sept 21: Rajasthan may suffer sales tax losses to the tune of Rs 500 crores annually after the introduction of the Value Added Tax, State Finance Minister Pradhyuma Singh has said.

The Centre will introduce the VAT from April one next year on which various states had different opinions, Singh told the governing council meeting of the All India Federation of Master Printers Association here today.

He said the Centre should make good the losses to the states on account of introduction of new tax regime. (PTI)

Haryana to built hostel-cum-restaurant
complex at Gurgaon

CHANDIGARH, Sept 21: Haryana Chief Minister Om Prakash Chautala, will lay the foundation stone of a Japanese hostel-cum-restaurant complex, first of its kind in the country, at Gurgoan on September 25.

A large number of japanese companies had already set up their ventures in this fast developing city, skirting the national capital territory of Delhi. The complex would be completed within 18 months at an estimated cost of Rs.18 crore. It would be cosntructed by the Haryana State Industrial Development Corporation, a nodal agency for developing industrial and support infrastructure in Haryana.

An official spokesman said here today that the decision to construct the complex had been taken as a result of the request made by members of Japan External Trade Organisation during Mr Chautala’s visit to Japan earlier this year.

The spokesman said that Haryana has undertaken this project as a goodwill gesture towards the Japanese investors whose large number of Chief Executives were putting up in hotels in and around Delhi. (UNI)

| home | state | national | business | editorial | advertisement | sports
| international | weather | mailbag | suggestions | search | subscribe | send mail |