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Osoa asks Govt to NEW DELHI, Aug 25: Government is unlikely to go ahead with the due diligence for Hindustan Petroleum Corp Ltd (HPCL) till the Supreme Court . .......more Shares lower, Euro gets relief as data awaited LONDON, Aug 25: Shares lost ground after a recent encouraging run-up and the Euro got relief from last week’s .....more IMF warns India of high deficit, but pegs GDP growth at 5.5% NEW DELHI, Aug 25: International Monetary Fund has warned that large fiscal deficit....more Appellate, regional authorities to deal with insurace row: Rao NEW DELHI, Aug 25: The Law Commission of India has suggested the setting up . .......more |
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Stocks, rupee and bonds fall after explosions MUMBAI, Aug 25: Share values virtually crashed on the country’s leading bourses at mid-session after reports of blasts which rocked the business ....more Centre gives environment clearance to MUMBAI projects MUMBAI, Aug 25: The Union Government has given environmental clearance to Maharashtra Government’s projects worth more than Rs 2000 crore, Union ......more Desi
viagra hot BHOPAL, Aug 25: Chlorophytum Borivilianum or Safed Moosli, popularly known as " desi viagra", is emerging as .....more RBI
says soft interest NEW DELHI, Aug 25: Two days after Repo Rate cut, Reserve Bank Governor Bimal .....more |
Osoa asks Govt to differ privatisation of HPCL by 2 yrs NEW DELHI, Aug 25: Government is unlikely to go ahead with the due diligence for Hindustan Petroleum Corp Ltd (HPCL) till the Supreme Court hears a petition challenging the decision to privatise the oil refiner without Parliament approval, on September one. "Data room for due diligence by bidders for Government’s 34.01 per cent stake will be ready by next week, by when the Supreme Court will also decide on the petition," a senior Government official told PTI after an hour long meeting with office bearers of oil sector officers association, which had threatened to block the exercise unless the Government decision was ratified by the Parliament. HPCL due diligence was to begin this week with Reliance Industries Ltd (RIL) beginning the scrutiny. Osoa convenor Ashoke Singh said they have asked Government to differ privatisation of HPCL for atleast two years for the company to realise its true potential. "We have asked Government to set Benchmarks and targets for sales and profits for the next two years, by when HPCL’s valuation will leap to Rs 44,000 crore," he said claiming that last year’s doubling of net profit to Rs 15,00 crore and surge in scrip has seen the company valuation increasing from Rs 8,000 crore to Rs 22,000 crore. He said HPCL unions will not allow any bidders to carry out due diligence which includes scrutiny of company books and inspection of company’s refineries at Mumbai and Visakhapatnam and select marketing terminals, unless Parliament approval was sought to privatise the refiner which was nationalised through an act of Parliament. Today’s meeting with Osoa was attended by Disinvestment Secretary Dhirendra Singh and Petroleum Secretary B K Chaturvedi. A Government official, who attended today’s meeting, said Osoa has been asked to outline their concerns so that they can be incorporated in the shareholders agreement. "The decision to privatise HPCL has been taken at the highest level and it (the decision) will be implemented. Today’s exercise was to address employee concerns," he said. Disinvestment Secretary Dhirendra Singh offered no comments on the meeting or the due diligence process. As per the due diligence schedule, each bidder will be given 12 days for the process and the entire process was to get over by mid-October after which price bids can be called for. The other bidders for the country’s second largest oil firm are British Petroleum, Kuwait Petroleum, Petronas of Malaysia, the Shell-Saudi Aramco combine and Essar oil. Leader Manager HSBC has informed that the bidders’ visit to the data room would be little delayed until October 4, the same time as the visit to HPCL’s refineries would be completed as for marketing terminals, the last date for all visits by bidders would be mid-October, it said. Sources said that technical consultant foster wheeler has submitted the draft report to HPCL for comments before a final report is made while environmental consultant ENSR has sought more time to submit its draft report. HSBC has also suggested that additional information about Indian economy, Petroleum sector and the refining capacities be provided to the bidders as an addendum to the confidential information memorandum, they added. (PTI) |
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Shares lower,Euro gets relief as data awaited LONDON, Aug 25: Shares lost ground after a recent encouraging run-up and the Euro got relief from last week’s pasting on Monday as global markets paused for breath ahead of key economic data due in the days to come. However, economists said if U.S. figures confirm the growing impression that the world’s largest economy is building up a head of steam, the trends of improving equities and a faltering single currency seen last week could be reinforced. The dollar was also pushed lower by bomb explosions in Bombay which killed dozens of people, reflecting the impression that the United States is in the front line against terror, but the rupee and Indian shares recoiled. The only significant European data out on Monday — further moderate august inflation data from German states — drove Euro zone Government bond yields lower. The Euro, which suffered its biggest weekly fall in two years last week as the investor stampede into growth-oriented equity markets from defensive bonds gathered pace, hovered above Friday’s multi-month lows against the dollar and yen. In trade thinned by the fact that the London market was closed for a local holiday, it was at 1.0905 at 1015 gmt and just over 128 yen. "The Euro is consolidating after coming under a lot of pressure last week," said Geraldine Concagh, economist at Aib Group treasury in Dublin. "People are looking forward to a heavy data schedule this week and more strong U.S. Numbers could push the Euro below the 1.08 level. "Liquidity is thin, but the Euro was oversold last week and today there has been a bullish signal on the charts, plus the bombs in Bombay have put the dollar under a bit of pressure," a Frankfurt-based trader added. London traders return to their desks on Tuesday and will look to Germany’s IFO business climate index and US durable goods and consumer confidence data for direction. European stocks showed signs of tiredness after last week’s gains, with the FTSE Eurotop 300 index 0.5 percent lower in what Udo Becker, trader at Merck Finck Co in Munich called "a short-term technical reaction". Overnight in Tokyo, the Nikkei average closed just 0.04 percent lower. "The market is entering into a consolidation phase because (institutional) investors do not feel like buying at the current market levels," said Hideaki Saito, senior strategist at Nikko Asset Management. On Friday the Dow Jones industrial average fell 0.79 percent and futures trading in London indicated a slightly weaker Wall Street opening on Monday. The Bombay Stock Exchange index finished a provisional three percent lower as the death toll mounted from four bomb attacks in India’s financial capital. The rupee traded around 45.9 to the dollar compared with 45.85 just before the news. German consumer price numbers from the states of Bavaria and Brandenburg added to the picture of a slight increase in inflation in the Euro zone’s largest economy in August. However, the year-on-year figures of 1.3 and 1.2 percent respectively were slight below expectations, pushing yields on the two year German treasury bond down 3.2 basis points to 2.586 percent. "We have had a bit of a boost from the inflation data," said one Frankfurt debt trader. "But this is not too relevant given that markets are very thin."(AGENCIES) |
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IMF warns India of high deficit, but pegs GDP growth at 5.5% NEW DELHI, Aug 25: International Monetary Fund has warned that large fiscal deficit and public debt was hampering India’s economic growth, which is slated to go up by 1.0 per cent to 5.5 per cent this fiscal in the face of good monsoon. "India’s large fiscal deficits and public debt are exacting an economic cost in term of foregone growth," IMF said, but projected GDP growth of 5.5 per cent for 2003-04 in the face of recovery in agriculture. "The projection for 2003-04, which was broadly in line with the consensus forecast, incorporates a recovery in agriculture. But there is a potential for even a stronger rebound in this sector," the Fund said in its latest country report after consultation with Indian Government. IMF said inflation was expected to be "moderate" at around 4.5 per cent by end of this fiscal. "The external current account situation is expected to remain in surplus," it said. IMF acknowledged the "resilience" of the Indian economy in warding off recessionary trends worldwide, which was a testimony to the benefits of reforms. But the apparent ease with which the fiscal deficit has been financed, IMF said "there would be detrimental effects on growth through crowding-out of critically needed spending on fiscal and social capital and through the pre-emption of resources for private investments." "Large fiscal imbalances leave little room for manoeuver in the face of shocks and have tended to result in ad hoc policy changes, which increase investment uncertainties," IMF cautioned. Giving policy prescription, IMF asked India to use the favourable external and interest rate environment to build the necessary political consensus for accelerating the needed fiscal and structural adjustments. "The strategy of postponing (fiscal) consolidation while attempting to stimulate growth is risky," it said, adding few countries were successful in "growing out" of fiscal problems without implementing a comprehensive reforms programme. IMF, however, said the fiscal responsibility and budget management act would bring important discipline and transparency in Central Government budget process and enable authorities to draw up a clear-cut and time-bound programme for restoring fiscal sustainability. The financial positions of states have improved only moderately, it said while strongly prescribing tax reforms, disinvestment of state PSUs, reducing subsidies and losses in power utilities. In this context, IMF regretted the delay in introduction of Value-Added Tax saying "top priority should be given in developing the necessary consensus to implement VAT within the current fiscal year, with the Centre launching a consorted campaign jointly with states about VAT’s benefits." With inflation under control, IMF viewed the easy monetary conditions as "appropriate" and welcomed the cuts in administered savings rates as these allowed banks to lower lending rates as well.(PTI) |
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Centre gives environment clearance to MUMBAI projects MUMBAI, Aug 25: The Union Government has given environmental clearance to Maharashtra Government’s projects worth more than Rs 2000 crore, Union Minister of Environment and Forest T R Baalu said here today. After handing over the approval letter to Maharashtra Chief Minister Sushilkumar Shinde, Mr Baalu told reporters here today that he reviewed the progress of various on-going projects with Mr Shinde. The environmental clearances have been given to long pending projects including Western Freeway Sea Link Project (WFSLP), Kharland Development Project and MHADA Housing Project, he added. Giving details of the projects, Mr Baalu said that the total cost of WFSLP project is Rs 1465 crore. He said that the project will provide a freeway of 18.15 Kms between Nariman Point and Bandra. "This project will help in decongesting the city roads minimising vehicular pollution and commuting time," he said. On MHADA housing project, Mr Baalu said that the Environment Ministry has amended the CRZ notification of 1991 as this project would benefit the lower income class. "More than 15,000 families of economically weaker section will benefit by the project," he said. The minister said that the cost of the project is Rs 282 crore that includes world bank loan component of Rs 75 crore. . Mr Baalu said that the environmental clearances have been given to Kharland Development Project, which is being funded by the European Commission. He said that the total cost of the project is Rs nine crore. "This project would be implemented in four districts of Mahararashtra namely thane, Raigad, Ratnagiri and Sindhudurg," he said. The Union Ninister said that the environmental clearances have been given to four villages in Nawegaon National Park in Gondia. He said that his ministry has given clearances to Zudpi Jungle Project and some other projects which would benefit Maharashtra. (UNI) |
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Stocks, rupee and bonds fall after explosions MUMBAI, Aug 25: Share values virtually crashed on the country’s leading bourses at mid-session after reports of blasts which rocked the business capital, driving the bse index down to over 180 points, placing it at 3943.66. The six trading sessions winning streak was checked following reports of series of blasts and sudden developments on the political front in Uttar Pradesh, which wiped away any buying activity amidsts all round panic selling. "There was dramatic change in the market scenario which saw flood of sell-orders from all sectors including retail investors", said a leading stock broker Manoj Choraria. The free fall was somewhat checked as domestic financial houses stepped in to pick stock at pretty low levels, he said. Panic was also witnessed in forex and bond markets as the 9.81 per cent bond maturing in 2013 fell 0.40 or 40 paise per 100-rupee face amount to 133.60. The rupee fell to Rs.45.92 against US dollar from Friday’s close of Rs.45.83. The BSE sensitive index plunged 181.46 points or 4.7 per cent at 3943.66 points. The index had commenced earlier in the day higher by nearly 45 points at 4170.58. In similiar fashion, the wide-based national stock exchange nifty dropped by 65.30 at 1245.86 points after rising to 1332.55 points in early trading. Hindustan Lever, most weighted stocks and market leaders Reliance Industries, ITC Ltd., Infosys Technologies, Tata Steel and PSU Stocks led the fall. (PTI) |
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Centre gives environment clearance to MUMBAI projects MUMBAI, Aug 25: The Union Government has given environmental clearance to Maharashtra Government’s projects worth more than Rs 2000 crore, Union Minister of Environment and Forest T R Baalu said here today. After handing over the approval letter to Maharashtra Chief Minister Sushilkumar Shinde, Mr Baalu told reporters here today that he reviewed the progress of various on-going projects with Mr Shinde. The environmental clearances have been given to long pending projects including Western Freeway Sea Link Project (WFSLP), Kharland Development Project and MHADA Housing Project, he added. Giving details of the projects, Mr Baalu said that the total cost of WFSLP project is Rs 1465 crore. He said that the project will provide a freeway of 18.15 Kms between Nariman Point and Bandra. "This project will help in decongesting the city roads minimising vehicular pollution and commuting time," he said. On MHADA housing project, Mr Baalu said that the Environment Ministry has amended the CRZ notification of 1991 as this project would benefit the lower income class. "More than 15,000 families of economically weaker section will benefit by the project," he said. The minister said that the cost of the project is Rs 282 crore that includes world bank loan component of Rs 75 crore. . Mr Baalu said that the environmental clearances have been given to Kharland Development Project, which is being funded by the European Commission. He said that the total cost of the project is Rs nine crore. "This project would be implemented in four districts of Mahararashtra namely thane, Raigad, Ratnagiri and Sindhudurg," he said. The Union Ninister said that the environmental clearances have been given to four villages in Nawegaon National Park in Gondia. He said that his ministry has given clearances to Zudpi Jungle Project and some other projects which would benefit Maharashtra. (UNI) |
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Desi viagra hot favourite among farmers BHOPAL, Aug 25: Chlorophytum Borivilianum or Safed Moosli, popularly known as " desi viagra", is emerging as the most preferred cash crop among the farmers in Madhya Pradesh because of its export potential and a ready market. Safed moosli holds an important place in Indian Herbal Medicine System. Its powdered roots are widely used as a natural "sex tonic" and is an integral part of more than 100 herbal drug formulations. Demand for this herb is increasing rapidly in Indian and international drug markets. The overseas demand for it is estimated to be 300-700 tonnes annually. Madhya Pradesh is the largest producer of Safed Moosli followed by Maharashtra. Recently, about 100 plants of this species were sent from here to the Rashtrapati Bhawan for being planted in the herbal garden there. According to official sources, out of about 800 farmers who had submitted proposals for cultivation of medicinal plants as many as 600 have sought permission for planting Safed Moosli. The total annual productivity of the crop is 1500 quintal which is still only half of the total market demand. A local farmer, Mishri Lal Rajput, who has 17 acres of land under the cultivation of this plant said ‘’ one acre of cultivation of Safed Musli produces a profit of around Rs two lakh.’’ He, however, stressed on the long list of intermediaries and middle men between the cultivators and the drug companies. "Although the plant naturally grows in jungles, the excessive demand for it is threatening its extinction." said Narendra Kumar, Executive Director, Rajya Laghu Vanopaj Sangh. "Because of this farmers have taken up farming of this plant and have benefited from it. " Safed Moosli grows to a maximum height of one-and-a-half feet while its roots grow to ten inch. Soil. The plants are uprooted by tribals from the forests before the medicinal properties of the herb are fully developed, consequently, they fetche very low price in the market and is sold at Rs 15-20 per Kg whereas, a fully matured plant can fetch upto Rs 1500 in the market. The problem relating to exploitation of farmers by the middle men can be countered by training the farmers in evaluation of their produce in terms of its market value. "There has been a spurt in the demand for the Musli, but the cultivation of the plant has not been able to meet the growing demand," Mr Kumar said. Explaining the economic incentives of cultivating the plant, he said "in mere six to eight months time, it’s cultivation can reap benefits of Rs 50,000-60,000 per acre". "The farming of Musli does not require any processing or installation of expensive machines and the plant is unaffected by the vagaries of weather," he added. (UNI) |
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RBI says soft interest rate bias to go on NEW DELHI, Aug 25: Two days after Repo Rate cut, Reserve Bank Governor Bimal Jalan today said soft interest rate bias will continue. "The soft interest rate bias is continuing. It will continue," Jalan told reporters, implying that lending rates would either remain at the present level or come down further. The bank rate, at which RBI lends funds to banks, was slashed by 0.25 per cent to 6.0 per cent in the last April slack season credit policy. Although RBI had reduced bank rate, it kept Repo Rate untouched until last Saturday when it was slashed by 0.50 per cent to 4.5 per cent. The reduction in Repo Rate could be seen in the wake of fall in inflation rate to 3.95 per cent in the week ended August 9, which means a decline in the real interest rate in the economy. On top of this, monsoon has been satisfactory in most parts of the country. Jalan had earlier said the decision to cut Repo Rate would be taken once the inflation and monsoon picture was clear. With good monsoon this year, it is expected that economy will go on to post a higher growth. This would imply greater demand for credit. Bankers have indicated that the Repo Rate cut would trigger another round of cuts in lending rates to boost investments in the country.(PTI) |
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Country’s first model salt farm to be set up in Rajasthan JAIPUR, Aug 25: The country’s first ‘model salt farm’ will be set up in Rajasthan, the third largest salt producing state, to improve the product quality and give value addition to it, Union Minister of State for Commerce and Industry Vidya Sagar Rao said here today. The farm will be set up from equal fundings from State Government, Sambhar Salts Limited and Central Salt and Marine Chemical Research Institute (CSMCRI), which will also provide the technical knowhow, Rao told reporters. Production of salt suffers in Rajasthan because of impurities in it as the industry is solely dependent on Sambhar lake and sub-soil brine for manufacturing. The salt farm, to function as demonstration farm, will be established in an area of 20 acres within a year at a cost of Rs 33 lakhs. It would create mass awareness about improving quality of salt being produced in Sambhar area and provide free training to small producers. An MOU was also signed between Sambhar salts, the State Government and CSMCRI in the presence of Rao for setting up of the farm. Earlier, addressing the meeting of Rajasthan Regional Advisory Board for salt, Rao said the desert state produced 15 lakh tonnes of salt per year and small and marginal salt farmers played a major role in it with 85 per cent share in total production. Rao said Rajasthan was a surplus salt producing state and catered to 15 states in the country, besides exporting iodised salt to Nepal. Describing the salt industry as labour-oriented, he said the Centre was processing a scheme for construction of 5,000 dwellings for labourers employed in it, of which 450 would be constructed in Rajasthan. The Centre would provide 70 per cent grant under the scheme while the remaining amount would be funded by other agencies including State Governments, salt producers and salt workers. The minister expressed concern over the fact that despite banning of sale of non-iodised salt in 1992 by Rajasthan Government, the supply of iodised salt in the state was only 47,000 tonnes against the requirement of about 3.47 lakh tonnes per annum. The imbalance needed to be corrected immediately, he added. (PTI) |
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SBI’s new scheme for RIB holders in line with FCNR/NRE schemes MUMBAI, Aug 25: The State Bank of India’s (SBI) new deposit scheme targetting the Resurgent India Bond (RIB) holders will be in line with its existing foreign currency non-resident (banks) and Non-Resident External (NRE) accounts with no special interest rate benefit. "The global roadshows to woo investors have already began and we are not offering any special interest benefit to RIB holders in the new scheme, which will offer a tenor of one, two and three years", a senior SBI official told PTI here today. The current interest rate for FCNR deposits — US dollar — was 1.16 per cent for a tenor of one year to less than two years and 4.14 per cent for the British pound deposits of three year period. In case of NRE deposits, the rate is 3.8 per cent for deposits of one year to less than two years. The SBI official said "even at this level, we are still positive and attractive on the interest rates vis-a-vis the global trend". The country’s largest banking entity expects to retain atleast 30-35 per cent of RIB holders totalling USd two billion. (PTI) |
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Likely China rebate cutto hit commodity exports SHANGHAI, Aug 25: A possible cut in tax rebates by China is likely to pressure exports of commodities ranging from lead to soymeal, as the move would make them less price-competitive in global markets, traders said on Monday. China’s zinc, lead and tin — some of the exports powering the country’s economic miracle — are expected to take a bigger hit compared to minor metals as the Chinese will likely raise prices to compensate for the rebate cut, they said. In the farm products sector, China’s soymeal exporters, which are already facing intense competition from countries such as India, will attract even fewer buyers if the rebate cut is imposed, traders said. "It’s a nightmare for Chinese exporters if the Government decides to cut tax rebates," said a metal trader with an Asian firm. "China’s base metal exports will undoubtedly be hit. Some zinc and lead smelters are expanding rapidly and if the policy is really implemented next year, where will the excess metal go? domestic demand won’t be able to absorb everything." China now allows a hefty 17 percent Value Added Tax (VAT) rebate for key zinc and lead exporters, and 13 percent for tin, traders said. The country is one of the major global exporters of the three metals. Minor metals such as antimony and tungsten, where China dominates 80 percent of global output, might see less impact. "The impact is limited because a huge portion of the world’s supply comes from China," said a trader from metal trading firm China minmetals. Tax rebates have taken a toll on China’s coffers, prompting the Government to consider cutting such export refunds to ease its financial burden and help relieve pressure on the yuan. China is expected to fall behind on 300 billion yuan ( 36 billion) in rebate payments by the end of this year, up from more than 200 billion yuan at the end of 2002, state media said. Government sources said the rebates could be cut to 11 percent from an average of 15 percent. Some traders said it was possible for China’s tax refund for metals such as zinc to return to nine percent seen more than five years ago. Beijing’s China business post reported the tax rebates would be cut from 2004 and phased out completely by 2010, with rebates on wool, lead and coke first in line. Plans for rebate cuts could also affect imports of copper concentrates. China said earlier this year it was offering vat rebates on 1.2 million tonnes of copper concentrates annually for three years to help producers overcome raw material shortages. "Our parent company will have the quotas next year and the year after, but probably not free of VAT," Executive Director Du Xinmin of Jiangxi Copper Co Ltd, China’s second largest copper firm, told Reuters. "It might require some VAT, but lower than normal levels." China’s soymeal exports is expected to lose more of its competitive edge if rebates of as much as 13 percent are cut, traders and analysts said. "Local markets are yielding very good margins and we’ve seen exports falling. At more than 230 a tonne, fob China, Chinese soymeal is already not aggressive, compared to origins such as South America," said a trader with a global firm in Beijing. (AGENCIES) After bottled water and soft drinks, it is the drinking water NEW DELHI, Aug 25: After warning of pesticide content in bottled water and soft drinks, Centre for Environment Studies (CSE), in a petition before the Supreme Court today said that the Government should frame appropriate guidelines to fix standards for drinking water to rid it of pesticides and other harmful chemicals. A bench comprising Chief Justice V N Khare and Justice S B Sinha issued notices to the Union Ministries of Health, Food and Consumer Affairs and Environment on the petition received by the Court through post. Appearing for CSE, senior advocate Rajeev Dhawan and advocate Sanjay Parikh said that the Government had come out with a notification fixing standards for the bottled water after CSE made public its research findings indicating high pesticide content in them. He said the Government should now fix the standards for drinking water as crores of Indians drink water which was not even potable. The bench asked Additional Solicitor General Mukul Rohtagi to take instructions from the Government and file an affidavit within four weeks. The Court, in a petition filed by NGO Sakshi alleging indiscriminate use of pesticides resulting in contamination of food, ground water and even breast milk, treated association of pesticide manufacturers as an essential party. It directed both the matters to come up for further hearing after seven weeks. (PTI) |
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