NEW DELHI, June 20: The size of the Indian commodity futures market is expected to grow over 252 per cent touching........more

ICICI onesource at number
5 as per revised rankings

MUMBAI, June 20: National Association of Software Services Companies (NASSCOM) has said that ICICI onesource ranks at number five in the third-party ITES-BPO players survey run by the.........more

IVRCL infrastructures
to pay 30 pc dividend

NEW DELHI, June 20: IVRCL Infrastructures & Projects Ltd has decided to pay 30 per cent dividend for 2004-05..............more

Tea gardens on token
strike today

SILIGURI, June 20: Over three lakh employees and workers of 300 tea gardens of north Bengal observed a one-day strike in the industry today on the call of the.............more

MUMBAI, June 20: Standard Chartered Mutual Fund today announced the launch of its maiden open-ended equity fund, the.......more

Railways freight earnings
shows marked increase

NEW DELHI, June 20: Indian Railways’ freight earnings have shown a marked increase of over 17 per cent and stood........more

Edible oils rally on millers
demand, tight supplies

NEW DELHI, June 20: The wholesale oils and oilseeds market depicted a firm trend ........more

Mumbai air to use airbus
fleet, start operations
by October

MUMBAI, June 20: Go air, owned by the Wadia family, is set to finalise a lease agreement with airbus to launch its services by October, a senior company.......more

Commodity futures to grow 252pc by 2010

NEW DELHI, June 20: The size of the Indian commodity futures market is expected to grow over 252 per cent touching Rs 12 lakh crore business by next five years, a chamber’s study has said.

The futures market has a potential to generate additional employment opportunities for over one lakh people by 2010, the study, ‘commodity futures bright’, conducted by ASSOCHAM said.

The study put the size of commodity futures market within the range of Rs 3.4 lakh crore.

It emphasised that besides allowing banks and fiis to enter the commodity futures market and uniform transaction charge for all commodities, allowing trade in commodities with international linkages up to midnight can also be a major step forward towards the reform movement.

"Certain reforms and initiatives are required to achive the projected target for commodity futures that will go a long way in making the commodity futures market more dynamic and vibrant," said Mahendra K Sanghi, president of ASSOCHAM.

The three multi-commodities exchanges are clocking a collective turnover of around Rs 4,000 crore a day with over 100 commodities traded.

In Q1, FY’05, these exchanges clocked trading volume of Rs 1.7 lakh crore which are expected to cross Rs 12 lakh crore by 2010.

At present, according to estimates of various exchanges, the size of commodity futures market is estimated at about Rs 3.4 lakh crore.

With regard to the commodity perspective, the study said the wheat and pepper futures market held good prospects in the coming years.

The wheat prices would remain firm owing to erratic weather conditions, resulting in shortage of the crop.

The black pepper market also seems to be in the recovery mode, said the study adding "this is evident from the fact the may contract in the futures market is at par with the global rates".

Trading in futures offers many advantages like hedging, price-risk management, balanced supply demand situation, facilitating production and manufacturing activities, and can be of great help to farmers.

The trading in futures will help farmers in price discovery since the farmer can make his decision on the next year’s expected price.

On low volume trading for agri products as compared to volumes in gold and silver trading, it said "this is a matter of concern since the main benefits of commodity futures should accrue to the farmers in major commodities like rice, wheat, jute and cotton".

The study favoured registration of all the intermediaries with their respective futures exchanges can put an end to the various malpractices at the intermediary level.

It also suggested that if futures exchanges were used for purchasing grains for the public distribution system, this would ensure remunerative returns to farmers and also curtail the Government’s storage costs. (PTI)

ICICI onesource at number 5 as per revised rankings

MUMBAI, June 20: National Association of Software Services Companies (NASSCOM) has said that ICICI onesource ranks at number five in the third-party ITES-BPO players survey run by the association every year.

NASSCON had earlier ranked ICICI onesource at number eight due to its failure to take into account the company’s 100 per cent owned us subsidiary, NASSCOM today clarified in a revised press release issued here.

WNS tops the rank followed by Wipro BPO solutions, HCL technologies BPO services, IBM Daksh and ICICI onesource. (UNI)

IVRCL infrastructures to pay 30 pc dividend

NEW DELHI, June 20: IVRCL Infrastructures & Projects Ltd has decided to pay 30 per cent dividend for 2004-05.

The Hyderabad-based company informed the Bombay Stock Exchange that the Board of Directors made recommendation to this effect in regards to the dividend at its meeting held on June 18, 2005. (PTI)

Tea gardens on token strike today

SILIGURI, June 20: Over three lakh employees and workers of 300 tea gardens of north Bengal observed a one-day strike in the industry today on the call of the Co-ordination Committee of Plantation Workers Union (CCPW) and the defence committee, officials said here.

The two umbrella organisations of tea trade unions called the strike to press for their demands, including wage revision.

The convenor of CCPW Chitta Dey and the general secretary of the defence committee, Samir Roy told reporters that neither the planters nor the state Govt were taking any initiative to revise the wages, due since April one, 2003.

The trade union leaders alleged that they had six meetings with the planters but nothing positive came out of the meetings because of their "adament and impractical attitude".

According to the police and administration the strike in tea gardens was total and peaceful. No office bearer of the consultative committee of planters association was available for comments. (PTI)

Standard chartered MF launches classic equity fund

MUMBAI, June 20: Standard Chartered Mutual Fund today announced the launch of its maiden open-ended equity fund, the standard chartered classic fund.

"This is an unrestricted, diversified fund that will aim to deliver consistent return. Units priced at Rs 10 during the offer time, the fund will open on June 27 and close on July 14," standard chartered mf managing director Naval Bir Kumar told reporters here today.

Kumar said equity markets have low systemic risk and are poised for growth. The Indian equity market over the next decade has the potential to outperform and deliver over the risk free return, he said.

"We do not think that we are entering late into Indian equity market as still the penetration level is low. By not committing to any particular sector or theme, we will ensure that it keeps generating consistent returns over a long period of time," he said.

Standard chartered MF vice president (equity) Bobby Surendranath said the strategic risk control measures devised by the company ‘equity circles’ would ensure largest consistency of return through three-four quarter price focus.

"Equity circles checks will deliver consistent annual upper quartile result and control overall business, liquidity and market risk. This will follow companies’ profit over two to three years and identify consistent track record," he said.

Surendranath added that equity circles are consisted of various checkpoints like idea generation, stock valuation, risk control and portfolio construction. (PTI)

Railways freight earnings shows marked increase

NEW DELHI, June 20: Indian Railways’ freight earnings have shown a marked increase of over 17 per cent and stood at Rs 2935.65 crore during May this year.

The earnings of Rs 2935.65 crore came from 55.26 million tonnes of freight lifted during the period as compared to Rs 2505.88 crore from 48.79 million tonnes of freight during the corresponding period last year, an official release said today.

Of the total earnings during May this year, Rs 1191.11 crore came from transportation of 24 million tonnes of coal, followed by Rs 135.61 crore from 4.24 million tonnes of raw material to steel plants and Rs 129.7 crore from 1.24 million tonne finished iron and steel.

While Rs 172.35 crore came from 3.39 million tonnes iron ore for exports, Rs 249.06 crore from 5.11 million tonnes of cement, Rs 290.24 crore from 3.97 million tonnes of foodgrains, Rs 116.19 crore from 2.50 million tonnes of fertilisers, Rs 226.36 crore from 2.70 million tonnes of Petroleum Oil and Lubricants (POL) and Rs 425.03 crore from 8.11 million tonnes of other goods, the release said. (PTI)

Edible oils rally on millers demand, tight supplies

NEW DELHI, June 20: The wholesale oils and oilseeds market depicted a firm trend today with prices of edible oils rising on the back of pick up in demand from vanaspati units against restricted arrivals and registered moderate gains.

Linseed oil, in the non-edible section, strengthed on the back of industrial demand.

Marketmen said apart from good demand from vanaspati units, dwindling supplies from producing belts influenced the trading sentiments.

In the edible section, groundnut mill delivery oil rose by Rs 50 at Rs 4900 per quintal while mustard expeller oil shot up by Rs 60 at Rs 3980 per quintal on good demand from retailers.

Sesame and cottonseed mill delivery oils too were in better shape on persistent buying and quoted higher at Rs 4150 and Rs 3780 per quintal against last close of Rs 4100 and Rs 3700.

Crude palm oil (ex-kandla) and palmoline (RBD) oil shot up by Rs 80 and Rs 50 at Rs 3200 and Rs 3850 per quintal respectively.

In the non-edible section, linseed oil traded Rs 100 higher at Rs 3900 per quintal on increased demand from paint units and other consuming industries.

Following were today’s quotations per quintal:

Oilseeds: mustardseed 1700-1750, sunflower 940-980, cottonseed 900-1150, groundnut 2000 and sesame white 2150-2450.

Vanaspati ghee (15 litres tin) 570-715.

Edible oils: groundnut mill delivery 4900, groundnut solvent refined (per tin) 820-850, mustard expeller 3980, mustard pakki ghani (per tin) 705-730, mustard kachi ghani (per tin) 705-835, sunflower 4400, sesame mill delivery 4150, soyabean refined mill delivery 3900, soyabean degum (delhi) 3580, crude palm oil (ex-kandla) 3200, cottonseed mill delivery 3780, palmoline (rbd) 3850, rice bran (phy) 3240 and coconut (per tin) 920.

Non-edible oils: Linseed 3900, mahuwa 3400-3500, castor 3625, neem 2600-2650, rice bran 2150-2250 and palm fatty 2400-2450.

Oil cakes: Groundnut dehusk 770-820, sesame 900-1100, mustard 610-630 and cottonseed 610-700. (PTI)

Mumbai air to use airbus fleet, start operations by October

MUMBAI, June 20: Go air, owned by the Wadia family, is set to finalise a lease agreement with airbus to launch its services by October, a senior company official said today.

It is leasing three 180-seater A320 aircraft and plans to take delivery of the first plane by early September.

"We’ll offer prices in line with air-conditioned train fares, or perhaps cheaper," said vice-president (sales and marketing) S Rajesh.

Go air fares will start at one rupee, perhaps even lower. It will fly in western and southern India with nine aircraft in first year of operations and add 11 more planes in the second year.

The carrier will also buy 20 airbus or boeing aircraft, with an option for 20 more, and take delivery of them as early as 2007.

The wadia group, which started in shipbuilding 250 years ago, is majority owner of textile maker Bombay Dyeing and Manufacturing Ltd and Food Firm Britannia Industries Ltd. (UNI)

Five new airlines to start flying by 2005-end

MUMBAI, June 20: If you thought there are already plenty of domestic airlines in Indian skies, wait till the year runs out.

In the next six months, at least five more will join the party. Airline business will explode in ways both good and bad.

There will be more airlines, more flights and — thanks to more robust competition — lower fares. That’s not all. More companies are planning to start airline operations next year.

I’ve never seen this kind of frenzy in this market before, said Mr Peter Harbison, managing director of the Sydney-based Centre for Asia Pacific Aviation (CAPA). High economic growth and liberal Foreign Trade Agreements (FTAs) will attract huge foreign investments in the Indian aviation sector.

He was addressing nearly 250 delegates who assembled here this morning for a two-day aviation and tourism investor summit.

At 46th international Paris air show held last week at le bourget, new low-cost airline Indigo ordered 100 airbus A320 jets worth six billion dollars. Deliveries will start in 2006.

Airbus said it had signed firm contracts to sell five A380S, five A350S and five A330S to India’s Kingfisher Airlines worth about three billion dollars. Deliveries of the A380S will begin in 2010, the A350S in Q3 2007 and the A350 in 2012.

Boeing said Jet Airways had committed to buy at least 20 planes worth over 2.8 billion dollars. The deal includes 10 large twin-engine 777S and 10 single-aisle 737-800S. Jet also took out 10 options to buy 777S.

Jet Airways, the country’s largest private carrier, also is buying 10 airbus A330 aircraft for around 1.5 billion dollars and taking an option on 10 more.

Spicejet, Air Deccan, Air Sahara, paramount, go air, east west, Indus Air, Premier - all are buying or leasing planes to kick off new operations or expand existing ones.

Even Government-owned airlines Air India (AI) and Indian Airlines (IA) have approved plans to buy over 100 aircraft in the coming years.

I believe there’ll be a demand for 500 planes by year 2010 from a current 185, said CAPA’s CEO for Indian subcontinent and middle east region Kapil Kaul.

That’s all welcome news for travelers. The downside is that India’s already over-burdened airports are in no condition to cope with the surging passenger demand and customers can expect plenty of headaches.

There are huge infrastructure issues, said Mr Kaul. The airports in New Delhi and Mumbai, for example, each have only one runway which limits the number of takeoffs and landings to 25 per hour-half the rate at most international hubs. Delays, already common, are likely to worsen.

So could the terminal queues at Peak Travel Times. New Delhi has only two relatively small terminals for domestic and international flights.

Last year, the Government raised the cap on foreign investment in the aviation sector to 49 per cent (from 26 per cent), facilitating a burst of airport renovation and construction projects. There are plans to modernize some 30 airports by 2009.

New international airports are under construction in Hyderabad and Bangalore. But most of the modernisation schemes are still in the early stages.

A cross-section of experts gathered here said the new low-cost carriers will ultimately drive prices low enough to compete with the Indian Railways. Some 14 million Indians travel by train every day.

According to Capt G R Gopinath, founder and managing director of Air Deccan, the same 600 million Indians who make up the emerging middle class targeted by consumer-goods companies are just a step away from being aviation customers.

The cheap flights thus could initiate a secondary boom in tourism — both international and domestic — one of the fastest-growing and most underexploited industries in India. Tourist arrivals jumped nearly 23 per cent in 2004 to more than 3.53 million.

Around 15 million people travel by air annually in India against three million passengers who fly daily in the United States — even though the US population is around one-quarter that of India.

The number of Indian passengers is expected to grow to 50 million in five years as a booming economy and new low-cost carriers stimulate demand. (UNI)

Qatar asks India to join proposed Qatar-Pakistan pipeline

NEW DELHI, June 20: Calling for "strategic relations" with its "extended neighbour," Qatar today formally invited India to join the proposed Qatar-Pakistan natural gas pipeline.

The formal proposal for possible participation in the pipeline project was made by Qatar Minister of State for Foreign Affairs Ahmed Bin Abdullah Al Mahmoud, when he called on Petroleum Minister Mani Shankar Aiyar this afternoon.

Qatar and Pakistan are pursing a pipeline —partly underwater —for the supply of natural gas to Pakistan. Pakistan is also said to the keen that India participate in the project.

During the meeting, which lasted over an hour, the two sides discussed the issues of raising the supply of LNG from 5 million tonnes to 7.5 million tonnes, Qatar’s intention of investing in the Kochi LNG terminal, investment by Indian companies in Qatar in petro-chemical, fertilisers and other projects besides awarding more blocks in the offshore to Indian companies.

A joint working group is meeting later today to discuss all the eight issues listed by both countries.

Mr Aiyar said that India has told Qatar that India might import up to 20 million tonnes of LNG in next ten years to meet its growing demand on the eastern coast.

Qatar has indicated that it would award some blocks of Indian companies in its next round of bidding, in which five to six blocks would be offered. (UNI)

CECA with Singapore cleared; 3 banks given
nod to set up arms

NEW DELHI, June 20: India will allow three major Singapore banks to set-up wholly-owned subsidiaries in the country to boost investments as part of the bilateral comprehensive economic cooperation agreement cleared by the cabinet today.

The three banks - DBS holdings, oversea Chinese banking corporation and United Overseas Bank - will be given national treatment at par with Indian Banks with regard to branches, places of operation and prudential requirements, Commerce Minister Kamal Nath told reporters.

In turn, Indian banks already operating in Singapore will qualify for national treatment there, which means they will be allowed electronic fund transfer and clearance besides use of local ATMs, he said.

Giving details of the CECA, which will be formally signed during the visit of Singapore Prime Minister on June 29, nath said the two countries will totally eliminate customs duties on 506 items from August 1 this year as part of the early harvest programme.

To boost foreign investments, the CECA has weaved in a double taxation avoidance agreement on the lines of the one with Mauritius with additional safeguards like sharing of information to prevent its misuse.

The 739-page agreement also provides for easing of visa restrictions for Indian professionals. There will be mutual recognition of 129 education degrees given by UGC-recognised universities for visa purposes.

Nath allayed fears of Chinese goods flooding Indian markets saying CECA will have very stringent rules of origin, comprising simultaneus application of change in tariff heading and value addition of 40 per cent.

Some well defined insufficient operations have been presribed under CECA to ensure that only the goods which are actually manufactured in Singapore and India benefit under the pact.

In services, Indian and Singapore have taken commitments beyond their offer at the WTO. In particular, in financial services, a deeper integration with the Singapore financial services is expected to take place.

Market regulator SEBI had put a cap of 10 per cent on investment by foreign institutional investors in a company, which is to be raised to 20 per cent for Temasek and Singapore Government investment company, Nath said.

He said asset management companies would also be allowed to be set up in India for managing operations outside India, Nath said.

This is India’s first CECA with any country and also for the first time New Delhi is entering the bilateral economic integration agreement in services.

The agreement is an integrated package comprising trade in goods and services, an agreement on investments and mutual recognition agreements in services and conformity assessment of standards in goods.

It would also have cooperation pacts in customs, science and technology, education, media, e-commerce and intellectual property.

Apart from eliminating customs duty on 506 items comprising 80 per cent of goods presently traded between the two countries, there would be phased elimination of duties on 2,202 items and phased reduction on 2,407 items by 2009.

There would also be negative list of 6,551 items where no concessions have been offered. Trade in goods will include exchange of tariff concessions under the eight-digit itc harmonised system code covering 11,666 items.

Singapore has also agreed to allow Indian beer to be exported but the ban on tobacco continues.

Bilateral trade now stands at 6.4 billion USD with India having a trade surplus of 1.2 billion USD. Trade is expected to go up substantially with the signing of CECA and, Nath said, adding FII flow is likely to go up 300 per cent to 5 billion USD while FDI flow is expected to be around 2 billion USD in the first year of the agreement.

The agreement also provides for cooperation between stock exchanges and companies listed on NSE and BSE could be traded in Singapore bouses as well.

The CECA would also provide for a bilateral investment protection agreement, Nath said, adding this far-reaching pact will provide very important investment platform as Singapore is considered a major trading and investment hub in the world.

On movement of professionals, mutual recognition agreements will be entered into within a year in architecture, accountancy, legal, medical and dental nursing, he said.

The agreement provides for mutual recognition of standards, the minister said. Singapore has offered all product made in India zero duty entry into Singapore.

The liberalisation of the services sector would improve efficiency in economy, while mutual recognition of education degrees would provide new avenues to Indian professionals. Investments from Singapore, which increased 114 per cent during 2004-05, would also go up substantially, he added. (PTI)

India seeks LNG from Qatar to restart Dabhol project

NEW DELHI, June 20: India today sought fuel from Qatar to restart the 2.9-billion dollar Dabhol power project in Maharashtra.

New Delhi is seeking one million tones per annum of Liquefied Natural Gas (LNG) from Qatar to fire the 740 mw phase-I and the nearly complete 1444 mw phase-II of the project.

"We have sought conversion of the present supplies of 5 million tones per annum of LNG into 7.5 million tones. We have also indicated additional requirement for the Dabhol project," Petroleum Minister Mani Shankar Aiyar told reporters after meeting visiting Qatar’s Minister of State for Foreign Affairs Ahmed Bin Abdullah Al Mahmoud here.

Petronet LNG Ltd, a company promoted by state-owned GAIL (India) Ltd, Oil and Natural Gas Corp (ONGC), Indian Oil Corp and Bharat Petroleum Corp Ltd, has contracted 7.5 million tones per annum of LNG from Rasgas of Qatar. It is presently importing 5 million tones at Dahej in Gujarat and is negotiating supply schedule of the remaining 2.5 milion tones.

Besides Qatar, India is also courting Australia for sourcing LNG for the Dabhol power project which has been lying idle for over three years now following a bitter payment row with its main customers, Maharashtra State Electricity Board.

"We propose to scale of LNG imports from Qatar to 20 million tones in phases by 2015," Aiyar said.

Also to figure in disussions were the Gulf-south Asia Pipeline Project that is to supply gas from Qatar to Pakistan and its possible extension to India.

Aiyar, who will visit Qatar from November 19-21 to finalise the LNG deals, said he also discussed with the visiting minister, Qatari investment in Petronet’s upcoming terminal at Kochi in Kerala and possible investment by Indian firms in petrochemicals, power and fertilizer sector in Qatar.

"I had a very good discussion (with Aiyar). We discussed lot of import issues in oil and gas cooperation between the two countries. I am happy at the outcome of the visit," Mahmoud said.

"We are very very reassured with Qatar’s desire to have strategic relationship with India," Aiyar said. (PTI)

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