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| ASSOCHAM seeks review of mining policy NEW DELHI, June 12: Industry body ASSOCHAM today sought a review of the national policy on mining for meeting the......more FICCI
seeks more R&D NEW DELHI, June 12: In order to make Indian pharma sector globally competitive, industry body FICCI today suggested..........more Hero Honda
looks at NEW DELHI, June 12: Banking on the cost competitiveness of the Indian market, domestic bike major Hero Honda......more IACO group
on acquisition NEW DELHI, June 12: Mumbai-based airconditioning solutions provider IACO group is looking to acquire at least two ......more |
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PSL Ltd to invest Rs 300 crore to raise capacity NEW DELHI, June 12: Steel pipe manufacturer PSL Ltd will invest about Rs 300 crore to raise its capacity from the.....more BPL mobile
to improve COIMBATORE, June 12: Cellular major, BPL mobile is augmenting capacity to cater to one million new subscribers and....more BoP
crisis, stand-off MUMBAI, June 12: Pointing to some forces that could act as a drag on India’s economic reforms....more Sangli
bank planning to MUMBAI, June 12: Private sector entity Sangli Bank is planning to hit the capital market in next six months to MoP up Rs......more |
ASSOCHAM seeks review of mining policy NEW DELHI, June 12: Industry body ASSOCHAM today sought a review of the national policy on mining for meeting the projected demand of 200 mmt iron ore by 2020 as against the current production of 120 mmt. The Government should evolve measures to attract investments for exploring iron ore, coking coal and other mineral reserves in the country, it said in a release. The chamber suggested providing incentives such as tax holidays to mining companies to make ore available in the country for meeting the domestic demand. It also sought other incentives like fresh mining leases against credible investment plans and speedy environmental approvals. The chamber said India has only 13-14 million tonnes of iron ore reserves compared to around 50 million tonnes in Australia, Brazil and Russia. The proven reserves of prime coking coal are only 4.6 million tonnes which translate to only five per cent of coal reserves. Demand for coking coal is likely to go up to 80 mmt by 2020 from the present 30 mmt. In such a scenario, domestic producers should be encouraged to explore good quality iron ore and coking coal so that steel prices do not firm up as iron ore and coking coal are basic inputs for producing good quality steel, it said. India currently produces around 120 mmt of iron ore, of which more than 50 per cent of good quality ore is exported. As a result domestic needs are never met which often lead to higher steel prices, the chamber said and suggested that instead of laying greater focus on iron ore exports, domestic mining companies should be encouraged to explore iron ore and coal deposits abroad. (PTI) |
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FICCI seeks more R&D funds,
tax breaks NEW DELHI, June 12: In order to make Indian pharma sector globally competitive, industry body FICCI today suggested increasing the R&D fund allocation by Government to Rs 2000 crore, liberalisation of price control regime and income tax exemption on clinical trials. The FICCI report on ‘competitiveness of the Indian pharmaceutical industry in the new product patent regime’ said that the regulatory framework should be designed to encourage domestic industry to invest in research and development. Suggesting an eight-point agenda for action to boost the competitiveness of the pharma industry and cash in on the strengths and opportunities enjoyed by the industry, the report said "the allocation of Rs 150 crore by the Government for R&D should be augmented to Rs 2000 crore." It also stressed on the need to liberalise the drug price control order, which "puts unrealistic ceilings on product prices and profitability and prevents pharma companies from generating investible surpluses". The report said lowering of tariff protection and the new MRP-based excise duty regime threatened the existence of many small scale pharma units, especially in Andhra Pradesh and Maharashtra, that were involved in contract manufacturing for the larger players. FICCI also sought tax holidays to encourage setting up of USFDA-compliant plants for exploiting the opportunity arising out of patented drugs and take up marketing of generics in developed countries like the USA. The report also noted major constraints plaguing the sector like low R&D spend, weak linkages between industry and academia, low medical spend, spurious drugs and shortage of medicines with psychotropic substances. It said. (PTI) |
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Hero Honda looks at markets outside India NEW DELHI, June 12: Banking on the cost competitiveness of the Indian market, domestic bike major Hero Honda Motors is looking to cross the shores and eyeing markets like South Africa and Middle East in partnership with joint venture partner Honda Motor Co of Japan, managing director Pawan Kant Munjal has said. The company, which has a strong 50 per cent share of the burgeoning Indian motorcycle market, is looking to make strides outside the country in the coming time. "We are looking at possibilities with our partners... (for) markets we believe we can definitely go and sell," Munjal told PTI in an interview. Hero Honda, which is a marginal player in terms of exports primarily as its JV agreement with Honda restricts its movement to some of the big markets, is looking to service markets where the Japanese major’s current position is not going well. "We would in future be talking to Honda that let’s jointly go there. Using our competitiveness from India, why don’t we do it there," Munjal said. Even as it sold a massive 26.2 lakh vehicles in the Indian market last fiscal, exports for Hero Honda stood at a relatively small 64,015 units, that too on a 63 per cent growth. On the other hand, its competitors in the Indian market like Bajaj and TVS have already made clear their intentions of eyeing a larger pie in foreign lands. Both have said they are either planning to set up greenfield facility or invest in joint ventures abroad, primarily in south and south-east Asian markets, where domestic products fit well in terms of engine capacity (100-180cc). Munjal said that together as a team, both Hero Honda and Honda can go to some of the existing Honda markets where it has not been doing well in current set-ups. "This way, we can support existing activities in some of these markets to make them more effective and efficient," he said. "We are looking at markets like South Africa and Middle East where we feel there can be potential," he said. However, he refused to specify as to how far talks in this regard had progressed with Honda and what kind of set-up they are eyeing in these markets. (PTI) |
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IACO group on acquisition mode, aims Rs 14 cr turnover NEW DELHI, June 12: Mumbai-based airconditioning solutions provider IACO group is looking to acquire at least two small companies this year to consolidate its market presence. "Before the end of the year we have plans to acquire two small, owner-driven companies, one in the north and the other preferably in south India," IACO managing director Farhan M Pettiwala told PTI here. The company, which has set a turnover target of more than Rs 14 crore for this year, is in talks with two companies in Chandigarh and Ludhiana, he said. "The other would be probably either in Coimbatore or Kochi," he said, adding the company has earmarked a budget of Rs one crore for the acquisition purpose. "What we are aiming is that the acquisition should add about Rs two crore worth of business to our existing portfolio," he added. Having tied up with Australian company Aeris guard as technology partner for enzyme-based airconditioner coil cleaning, Pettiwala said IACO is actively pursuing the northern market. "Chandigarh has a lot of potential for our business as a lot of software companies are setting up offices there. Overall, in the north market we are looking at the BPOs, Malls and Multiplexes," he said. With a client list featuring almost all the top corporates, including Wipro, L&T, Britannia, Unichem Labs to name a few, Pettiwala said the company will maintain its 40 per cent growth rate this year also. (PTI) |
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PSL Ltd to invest Rs 300 crore to raise capacity NEW DELHI, June 12: Steel pipe manufacturer PSL Ltd will invest about Rs 300 crore to raise its capacity from the existing 6,75,000 mt to 10,20,000 mt per annum. "We will be investing Rs 300 crore to set up one large mill of 3,50,000 mt and smaller mills of 75,000 mt," PSL managing director Ashok Punj said here. Punj said the new projects would add to PSL’s capacity to meet international demand especially in Middle East and the sub-continent as also in domestic market. The company, which has a long-term debt to equity ration of 1:1 is planning to part fund the expansion by way of Rs 175 crore foreign currency convertible bonds, and the rest through private equity. PSL’s board has already approved the fund raising programme to fund its expansion, he added. He said company which held a current capital business of Rs 30 crore would issue fresh equity and promoters’ stake of 71 per cent would not be diluted. However, he said promoters would look at the option at an appropriate time but their stake would be maintained well above 50 per cent. The company is engaged in manufacturing pipes at Daman, Kandla, Nani Chirai, Chennai and Visakhapatnam. (PTI) |
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BPL mobile to improve
teledensity in rural, COIMBATORE, June 12: Cellular major, BPL mobile is augmenting capacity to cater to one million new subscribers and plans to invest Rs 700 crore on network infrastructure across its markets, during the current fiscal. Over 60 per cent of the total investment would go towards entering ‘C’ class semi-urbans and rural markets to improve the tele-density in these markets, according to Rajeev Chandrasekhar, chairman and CEO of BPL mobile group. Rajeev, who recently met Prime Minister, Manmohan Singh, at Delhi and presented a memento to mark company’s eight years of successful operations in Tamil Nadu, in a release, thanked Singh, for heralding the telecom revolution in India by openinup telecommunications to the private sector, when he was Finance Minister in 1990. Thanking Singh for the support and encouragement over the years and for the Government’s efforts in creating a fair, transparent and a level field in the sector, he said "the company’s highest ever growth of 45 per cent last year is also the result of the fair and unbiased policy implementation by the Government." BPL mobile started its operations in Mumbai in 1995 and Maharashtra, Goa, Tamil Nadu, Pondicherry and Kerala in 1997. (PTI) |
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BoP crisis, stand-off with Pak
may hurt MUMBAI, June 12: Pointing to some forces that could act as a drag on India’s economic reforms, Economist Intelligence Unit (EIU) has said any occurance of balance of payment crisis and stand-off with Pakistan may adversely impact ability to meet external obligations. The reforms introduced in the early 90s are likely to continue, regardless of change in Government - an ever-present threat. There are two obvious negative scenarios, however, that could affect the reform process, eiu said in its report "Business2010 in India". The first was another economic crisis, like the balance-of-payments crisis that triggered the earlier reform process, it said. The second is another stand-off with Pakistan, although bilateral relations are currently good. This could quickly lead to capital flight, weakening the currency and so making it harder for India to meet its external obligations, it said. On the Government’s economic policies, EIU said "the Government’s recognition that infrastructure needs to be overhauled and India’s growing integration with the global economy will contribute to a robust growth rate". It said the rising productivity in some industries, lower industrial tariffs, the resulting lower input costs and greater foreign investor interest are other positive factors. The services sector would continue to grow and continue to fuel economic growth while some sectors would compete globally to employ more and bring in wealth to India, it added. EIU said services sector will continue to expand at a rapid rate by growing at more than 8 per cent in 2005-06. The information technology and pharma sectors will compete globally, employing perhaps two per cent of the population and bringing in wealth to many parts of India, it said. About 60 per cent of the more than one billion population would continue to remain dependent on the agricultural sector sharing less than one-quarter of the country’s Gross Domestic Product (GDP), it added. (PTI) |
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Sangli bank planning to hit capital market MUMBAI, June 12: Private sector entity Sangli Bank is planning to hit the capital market in next six months to MoP up Rs 100-150 crore through public issue to augment its capital base. "The bank proposes to go for a public issue of the size of Rs 100-150 crore subject to necessary approvals and permissions from the Reserve Bank of India and Securities and Exchange Board of India (SEBI)," chairman and CEO of Sangli Bank, Arunkumar Rao told reporters here today. Rao said that the bank was raising funds through IPO was mainly for capital requirements as per the Basel II norms. The RBI had earlier advised all private sector banks to increase their capital base to Rs 300 crore. The capital base of Sangli Bank is around Rs 85 crore. "Through this IPO, we plan to take our capital base from the existing Rs 85 crore to Rs 200 crore. We will then ask for time from the RBI to raise the remaining Rs 100 crore required to take our capital base to the Rs 300 crore mark in the next three years," Rao said. Rao said that the bank is expecting a rate of atleast Rs 200 for its share price of Rs ten each. But the issue price will be finalised after consultation with our merchant bankers, who are yet to be appointed, and after we get the requisite go ahead from the RBI," Rao said. Rao said that the bank was seeking approval from the RBI and SEBI and said that the IPO would be out in the next six months. Rao said that capital raised through the IPO would be used for increasing the banks credit advances. The bank’s advances are around Rs 850 crore and the share of the sugar industry, which is dominant in the region, is Rs 100 crore. The bank has a deposit base of Rs 2,000 crore with a Capital Adequacy Ratio (CAR) of 14 per cent and net NPAs close to seven per cent. On the bank’s modernisation plans, Rao said that around 20 urban and 25 rural branches would be computerised this year. The bank has 65 computerised branches. The bank presently has 189 branches spread across seven states namely Maharashtra, Karnataka, Gujarat, Tamil Nadu, Goa and Andhra Pradesh. (PTI) |
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Govt exempts nine services from
tax net MUMBAI, June 12: In a significant development, Government has decided to exempt nine services availed abroad by Indian Shipping Industry from the service tax net from June 16. "The Central Board of Excise and Customs (CBEC) has exempted nine different services availed by domestic shipping companies at ports outside India from service tax net. However, the services of taking P&I insurance cover and other services still continue to attract service tax," a senior official from Indian National Shipowners’ Association (IMSA) told PTI here today. He said the services exempted from tax net include cargo handling, clearing and forwarding, custom house agency services, maintainence and repairs, port services, stevedoring, storage and warehousing, technical inspection & certification and steamer agency services. These exemptions would only apply in such cases where taxable services are provided when handling of ships at a port outside India or storage of goods carried in a ship at a foreign port, he said. "This service tax provision was actually nullifying the tonnage tax benefits given to Indian Shipping Industry. Now, an Indian ship need not pay service tax at 10.2 per cent for these nine services availed abroad," he said. However, the services including availing P&I cover, deploying foreign personnel, surveys and exploration services still continue to attract service tax. (PTI) |
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Lesser demand pushes tea prices down COIMBATORE, June 12: Tea prices continued to rule lower upto Rs three, following limited to lesser demand at the Coimbatore auction held last week, trade sources said. Limited demand and subdued export enquiry pushed orthodox leaf prices lower by Rs two, while CTC leaf quoted lower upto Rs three per kg, following lesser demand, the sources said. In the dust category, orthodox prices continued to quote lower by Rs two despite fair demand, whereas lesser enquiry and limited export activity downed the prices of CTC by Re one to Rs three, they said. Good orthodox brokens leaf quoted at Rs 54 to Rs 65, while best CTC brokens and fannings ruled at Rs 40 to Rs 45 and medium CTC at Rs 32 to Rs 37. Best CTC dust quoted at Rs 47 to Rs 55, good at Rs 46, medium at Rs 30 to Rs 36, while medium orthodox dust teas ruled at Rs 35 to Rs 38, they said. Of the total offerings of about 7.06 lakh kg, dust comprised 4.19 kg and there were heavy withdrawals from both grade of te as, following lesser demand, the sources added. (PTI) |
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BSP to go for higher production to maintain bottomline KOLKATA, June 12: In the face of surging prices of imported coking coal, the Bhilai Steel Plant (BSP), the flagship unit of the Steel Authority of India Ltd, has decided on higher production this fiscal to maintain bottomline. BSP sources said that the plant which posted a profit of Rs 4,042 crore during 2004-05, would have to take a hit of Rs 1,400 crore additional expense on account of imported coal in the current financial year. The increased coal price would certainly have a direct bearing on the profitability of BSP which alone consumed four million tonne of imported coal, the sources said. Admitting that in the face of surging price of imported coal the plant would face difficulty, BSP managing director R P Singh, however, said that it would be possible to maintain the bottomline if it produced more. "Earlier imported coal was available at USD 60 (fob) per tonne, but now there is 100 per cent increase and the price is hovering around USD 125 (fob)," he said. He said that the plant has fixed a target of 5.3 million tonne of hot metal this fiscal compared to 4.51 mt last year. The target for finished steel production was 4.2 mt against 3.94 mt in 2004-05. SAIL has already tied up seven mt imported coking coal from Australia, New Zealand and USA and was trying to import another 2.5 mt coking coal from countries like Australia and Ukraine. Singh said that to maintain profitability, BSP had to earn Rs 1,400 crore more and if the market did not deteriorate further, the plant would be able to retain the bottomline. "We have to see how the market behaves during the monsoon when construction activities slow down," he said. Sources in SAIL said that as a whole the increased coking coal price would have an impact of Rs 2,500 to 2,800 crore on the company. SAIL was planning higher production, better product mix, reduction in expenditure and cost, improvement in blast furnace productivity and other cost cutting measures along with some revision in iron and steel prices. Sources said that though it might not be possible to say at this stage what the impact of the coal prices on the company’s profitability would be, "but we are trying to neutralise it through various measures." Another factor which was worrying SAIL was the depleting iron ore reserve at Rajhara-Dalli mines, which supplied iron ore to Bhilai. The iron ore reserve would last another 6-7 years, the sources said. The efforts to get production from the proposed Rowghat mines in the Naxalite-infested Baster district in Chhatisgarh, had not made much progress so far with the Union Environment and Forest Ministry yet to accord clearance for it. The police had also refused to allow scientists of GSI to go to the area for survey, the sources said. Asked whether Bhilai could opt for iron ore from NMDC mines, the BSP MD said that Bhilai plant could survive only with Rowghat mines. (PTI) MTNL cannot disconnect phones
without NEW DELHI, June 12: Flaying the MTNL for disconnecting telephones without enquiring into unusually ‘exorbitant’ bills of a consumer, the Delhi State Consumer Commission has ordered restoration of the facility to a person besides ordering a compensation of Rs 5000. Mohammad Tahir, who had seen a maximum bill of only Rs 1,334 was in for a shock to receive a bill of Rs 89,830 for August-October 1991 and another astronomical bill of Rs 4,67,348 for the period between November and December the same year. Since he did not pay the bill within the stipulated period, the public service provider disconnected his phone without ordering an inquiry as to how the bills had shot up manifold. Stating that ...Possibility of use of telephone by unauthorised persons in connivance with unscrupulous staff of the appellant (MTNL) cannot be ruled out in such cases," commission president Justice J D Kapoor, members Mahesh Chandra and Rumnita Mittal quashed the inflated bill. It also asked MTNL to give tahir a revised bill on the basis of average use by him in the preceeding six months. Challenging the district forum order, MTNL contended that the inflated bill was the result of the consumer not locking the STD facility as many of his relatives were making numerous calls. Rejecting the plea, the Commission said "bills in question should have boggled the mind of the authorities, that detailed and thorough inquiry should have been made." (PTI) |
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