Civil Aviation Ministry asks CCD not to divest AI, IA

NEW DELHI, Feb 12: In a bid to pave the way for Government funding of the fleet acquisition plans of Air India and Indian Airlines, the Civil Aviation Ministry has urged the Cabinet Committee on Disinvestment (CCD) to put on hold the disinvestment of the two public-sector carriers.

A Cabinet note to this effect was sent to the CCD late last week before Civil Aviation Minister Shahnawaz Hussain left for the Haj pilgrimage, official sources said here.

The ministry’s move comes in the wake of Government’s intent to arrive at a final decision on funding the fleet acquisition plans of the two airlines.

Sources said the Cabinet Committee on Security (CCS) could not have given the go ahead to the funding for aircraft acquisition with the two carriers still being in the list of PSUs to be disinvested.

Otherwise, the stated Government position was that the selected private party would have to invest in fleet acquisition, which would have further delayed the process.

The CCS is likely to take a final view on the issue soon after the note is circulated to the key ministries, including Finance and Disinvestment. (PTI)

Budget likely to see cuts in several development projects

NEW DELHI, Feb 13: The Union budget 2003-04 is likely to witness cuts in several development programmes both at the Centre and State level which may adversely impact the overall growth rate and social programmes.

The reduced allocations could put initiatives aimed at employment generation and governance on the backburner, experts say.

According to informed sources, the Gross Budgetary Support (GBS) proposed by the Finance Ministry for the next year is Rs 1,17,500 crore.

In the current year, 58.9 per cent of GBS has been kept for the central plan and the balance for the state plan. If the same proportion is kept next year, the additional amount available for central plan next year will be Rs 2,336.50 crore. This will be just sufficient to make an extra provision for the Delhi metro (Rs 1,800 crore) and an extra provision of Rs 250 crore for the Ministry of External Affairs to meet the commitments for Bhutan.

An official assessment has worked out the implications of this on various programmes.

The National Highway Development Programme (NHDP), which requires an extra Rs 1,000 crore, will slow down. The work on the national highway network outside NHDP will also be hampered.

The Railway Ministry projects will be severely affected. In particular, the Government will find it difficult to provide for the metropolitan urban transport project in Mumbai or for the golden quadrilateral upgradation.

Experts say the power ministry will not be able to push hydel projects for which a significant step up of Rs 600 to Rs 700 crore is required. The fast breeder reactor scaling up programme and faster completion of ongoing power projects under the department of atomic energy will be delayed, officials in the Planning Commission say.

The village electrification programme is also like to suffer.

The space programme will be held up, experts say. In particular, the department of space will not be able to pay for the hiring of transponders next year when one of its own satellites stops funtioning. Progress on future launches will also be impeded, the experts say.

The proposed funding of Rs 150 crore for drug research under the department of science and technology will have to wait.

The commision officials fear that the PMO’s package announced for Jammu and Kashmir, Himachal Pradesh, Uttaranchal and Sikkim will also be affected.

The village electrification and the family welfare programme will be the other victims. The officials indicate that negotiations for grants from the European Union and Danida are at an advanced stage. However, due to lack of GBS, funding will not be possible.

According to the sources, the normal distribution of GBS between Centre and States is in the ratio of 57.5:42.5. If this ratio is resorted to for next year, the central GBS will become Rs 67,562.5 crore. This means a step up of Rs 691.58 crore.

However, the sources indicate that the amount "will be inadequate even for meeting the provisions which are required for Delhi metro. There will be absolutely no increase in allocations for any ministry or department at the Centre, they add. (UNI)

Essar recommences work on Rs 8000 cr
refinery in Gujarat

VADINAR (JAMNAGAR), Feb 13: The Rs 5,700 crore Essar Group has recommenced the 12 million tonne mega refinery project in Gujarat, stalled since 1999, after tying up with financial institutions as part of its efforts to emerge as the second private corporate after Reliance to become an integrated petroleum company, sources said.

After obtaining all clearances and getting the go-ahead by end of January, Essar director Prashant Ruia chose February 6, the festival day of Basant Panchami, to perform puja on the site to kick off the Rs 8,000 crore project, 65 which had been completed when work was stopped in early 1999.

EOL has already invested Rs 6,300 crore on the project including the terminal which provides natural deep draft suitable for berthing very large crude carrier and is closer to the source of crude supply.

Equipment worth 200 million dollar is ready for shipment and major plant and machinery valued at 430 million dollar are already at the site.

Neither the group Chiarman Shashi Ruia nor his son Prashant was available for comments while the corporate’s communication department remained tightlipped about the restart.

Sources said that the project would be completed by end of 2004 and was part of the group’s overall strategy to emerge as an integrated private sector petroleum player having interests in exploration and production as also marketing, for which it obtained retailing licence from the Government last year. (PTI)

Cautious market prevails

CHENNAI, Feb 13: Gold prices in Chennai market today gained marginally, but fell short of the rates in which they ended yesterday.

The price of 22ct gold, which began this morning at a cautious Rs 529 per gram, gained Rs three to end at Rs 532 (Rs 4256 per eight gram).

Similarly, the price of standard gold also gained Rs 30, with the precious metal closing today at Rs 5740 against the opening of Rs 5710.

However, the rates of both the items fell short.

"The 5-6 per cent GDP growstandard gold had ended at Rs 5820.

Market sources said it only indicated the ‘nervous’ trend that was prevailing in the international arena, especially relating to the possible war situation in Iraq. (PTI)

US crude oil stocks fall to 27-year low

WASHINGTON, Feb 13: US commercial crude oil stocks unexpectedly slipped to a 27-year low last week, the Government said, as imports plunged during a strike in the venezuelan oil industry.

Commercial crude oil inventories, excluding the US emergency petroleum reserve, fell 4.5 million barrels to 269.8 million barrels in the week ending February 7, the Department of Energy said yesterday.

The decline, which defied analysts’ expectations for a small increase in stocks, took the US crude oil inventory to the lowest level since October 1975.

The crude oil inventory, down 51.9 million barrels when compared to the same period last year, had crept to a level that was expected to begin squeezing supplies to refineries, the department said.

Imports of crude oil — including supplies going into emergency reserves — dropped 1.2 million barrels per day to a three-year low of 7.2 million barrels per day, it said.

Distillate fuel inventories fell by 3.9 million barrels to 118.2 million barrels, drawn down by a decline in diesel fuel stocks.

Diesel fuel stocks fell 3.5 million barrels to 66.1 million barrels. Heating oil stocks, already low in the midst of a cold snap in the United States, fell 400,000 barrels to 42.1 million barrels.

But gasoline stocks rose 3.0 million barrels to 212.6 million barrels. (AFP)

Mumbai commuters to breathe it easy after MUTP project

NEW DELHI, Feb 13: In a major initiative to decongest Mumbai rail traffic, the Government today approved a Rs 3125.20 crore mega project to upgrade rail infrastructure in the metropolis to reduce travel time for commuters.

The Mumbai Urban Transport Project which is expected to be completed in five years will get a World Bank loan of Rs 1613.07 crore, an official spokesperson told reporters after a meeting of the Cabinet Committee on Economic Affairs.

The Maharashtra State Government will meet 50 per cent of the project cost and it will also share 50 per cent liability of the World Bank loan component.

The railways will meet the remaining 50 per cent cost which will be funded under metropolitan transport project plan head, with no division liability by railways, the spokesperson said.

The Mumbai Urban Transport Project Phase I envisages upgradation of the rail infrastructure in Mumbai, he said, adding the project consists of a total of 14 rail projects out of which nine will be taken up in the first phase.

The projects in the first phase are: Construction of the 5th and 6th rail line between Kurla and Thane, 5th line in Western Railway including flyover modification, Borivali-Bhayander Quadrupling, Bhaynder-Virar Quadrupling, optimisation of Central Railway line including 12th car operation on through line, optimisation of harbour line, DC to AC conversion in Mumbai suburban sections and procurement and manufacture and retrofitment of EMUS.

On completion there will be reduction in overcrowding of coaches, specially during peak hour, the spokesperson said, adding the travel time for commuters will be reduced as a result of increased frequency of services, remodelling of existing speedy restrictions, improvements of turnouts and yard/station remodelling.

There will also be savings due to diversion of traffic from road to rail, he said, adding instances of delay to long distances trains will also be reduced as a result of segregation of long distance and suburban traffic in western railway. (PTI)

NABARD sanctions power project in Haryana
under RIDF fund

CHANDIGARH, Feb 13: NABARD has sanctioned Rs 8.33 crore for a project of Haryana Vidyut Prasaran Nigam that envisages construction of two new 66 kv sub-stations at Aurangabad and Prithla as well as augmentation of 220 kv sub-station in Faridabad district.

The total project cost was Rs 11.34 crore of which NABARD’s assistance under RIDF was Rs 8.33 crore, a NABARD statement said.

The project on completion would benefit the inhabitants of 30 villages in Aurangabad and Prithla besides creating a total non-recurring employment of 81000 man-days.

The project would ensure regular and quality power supply in the villages covered and would also save considerable losses in transmission and distribution, it said. (PTI)

Govt announces MSP, drought relief for rabi crops

NEW DELHI, Feb 13: Government today fixed the Minimum Support Price (MSP) for rabi crops, raising the MSP for pulses and oilseeds upto Rs 30 per quintal and leaving that for wheat unchanged at Rs 620 a quintal.

Announcing the decision of the Cabinet Committee on Economic Affairs (CCEA), Agriculture Minister Ajit Singh told reporters that Government has also provided a special drought relief of upto Rs 10 per quintal on various rabi crops including wheat.

He said while the MSP for wheat at Rs 620 has remained unchanged, a provision of Rs 10 per quintal as drought relief has been made.

The MSP for rapeseed mustard has been raised to Rs 1,330 from Rs 1,300 along with a drought relief of Rs 10, Singh said.

The MSP for masur and gram has been increased by Rs 20 to Rs 1,320 and 1,220 respectively besides drought relief of Rs five per quintal each.

For barley, the MSP remained unchanged at Rs 500 a quintal, but a special drought relief of Rs five a quintal was announced, Singh said.

The MSP for safflower is retained at Rs 1300 per quintal but a drought relief of Rs five a quintal has been announced. (PTI)

India to take up developing nations’
concerns at WTO meet

TOKYO, Feb 13: Keeping in mind its huge agriculture sector, India is expected to link drastic reduction of huge financial support given to their farm sector by many Western countries to the reduction of customs duty on agri-products by developing nations, in the WTO mini-ministerial beginning here tomorrow.

Unless the Western countries reduce their huge financial suport to the agri-sector, any lowering of the present tariff level by India would be disadvantageous to the Indian farmers, said a senior official in the Indian delegation, being led by Commerce and Industry Minister Arun Jaitley and Agriculture Minister Ajit Singh.

India would also project its stand on the contentious issues relating to trade related intellectual property rights (TROPS), public health and services sectors and garner support from among the 23 participating nations.

The consensus arrived at the mini-ministerial would lay the basis for further discussions of the ministerial meeting the apex body of the WTO, at Cancun in September 2003.

The whole emphasis of third world countries in these ministerial negotiations were to correct the uruguay round of agreements, which they believe contained large number of asymmetries in the implementation of the agreements, the official said.

Another sector where India would push forward its view was the mode 4- free movement of professionals to different countries without actually gaining citizenship rights there.

Through the Mode-4, Indian professionals could go to work in other countries in specified number every year for a particular period without any immigration harassment and in return would not be entitled to any citizenship-related rights, the official said.

India would also focus on the need of several third world countries to get cheap medicines to fight various diseases as they did not have infrastructure to set up pharmaceutical industries.

The issue relating to availability of cheap medicines to all needy countries should be addressed quickly as many people were dying in third world countries due to unavailability of medicines, the official said.

Asked abouut the various deadlines to be met on these issues as fixed during the Doha ministerial meeting, the official, while fixing a certain amount of sanctity on these deadlines, said that no country could be forced to accept them without addressing its domestic problems.

He cited the example of the agreement on TRIPS and public health related issues, which were to be implemented by June 30 2002, but was postponed to December and yet there was no consensus. (PTI)

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