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| 2006: Wake up call for India's farm
sector NEW DELHI, Dec 27: India's agriculture sector has long come to resemble the picture of a fat-stork-on-spindly- legs and 2006 can be safely termed . .........more CIL to take up 120 projects in the 11th Plan period KOLKATA, Dec 27: Coal India Limited (CIL) is planning to take up 120 projects with an ultimate capacity of 240 million .......more FDI likely to cross USD 11 bn in 2006-07 NEW DELHI, Dec 27: Foreign direct investment into India is set to double and cross 11 billion dollars this fiscal, Commerce Minister Kamal Nath has said.......more Gas samples sent to laboratory for tests SURAT, Dec 27: Samples of gas and water that erupted from an open space in Olpad taluka in Gujarat has been sent to the Oil and NaturalGas Corporation (ONGC) laboratory in Ankaleshwar for tests.Water and gas that had errupted ........more |
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HAL to produce complex components to
Pratt and Whitney BANGALORE, Dec 27: Defence aviation major Hindustan Aeronautics Limited (HAL) has firmed up a huge ten year contract ........more Now Harvard & Wharton keen to know Lalu's success mantra NEW DELHI, Dec 27: The rustic Lalu Prasad today donned the mantle of a 'Management Gur. ......more With Mallaya on top, Indian liquor industry on a high in 2006 MUMBAI, Dec 27: The liquor industry remained on high spirits in 2006 with the insatiable Vijay Mallya making strides on foreign .. ......more Mazda secures order from PI Industries NEW DELHI, Dec 27: Automaker Mazda Ltd announced that it has received an order for Triple-effect Forced Circulating Evaporator Plant valued at Rs 2.37 crore. The plant is for effluent volume reduction and is a zero liquid . .........more |
2006: Wake up call for India's farm sector NEW DELHI, Dec 27: India's agriculture sector has long come to resemble the picture of a fat-stork-on-spindly- legs and 2006 can be safely termed the year the Government decided to take note of it. For, the Government declared that the sector, which supports over 60 per cent of the workforce, contributes less than 25 per cent to the GDP and has been expanding at less than 2 per cent since the 1990s, was in "crisis". It could not have been more right, as a spate of suicides by farmers and decision to import wheat for the first time in several years raised doubts about the way the sector was headed and about the country's food security. In July, the UPA Government announced nearly Rs 20,000 crore as special package for districts with high incidence of farmers suicides, while on the other hand it contracted import of 55 lakh tonnes of wheat and allowed private sector to source another 10 lakh tonnes. "The decision to import wheat was taken to meet shortfall in public procurement and maintain a healthy buffer stock to run social welfare schemes," Agriculture and Food Minister Sharad Pawar clarified. However, the wheat import decision was termed as a "wake up call" by eminent scientist M S Swaminathan, often described as the father of India's green revolution, who wanted productivity levels in the sector to be improved. But as the year drew to a close, there seemed to be a reason for cheer as wheat acreage increased by over 10 per cent -- a development that has made the Government confident of a 74 million tonne output next year. Swaminathan, also the chairman of National Commission on Farmers, submitted the fifth and final report of the panel in October wherein the finer points of future strategies were spelt out to usher in a second agricultural revolution. The Prime Minister, who concluded that "agriculture as a whole is in crisis", could not agree more and called for higher level of technological application in the farm sector to make a revolution possible. However, it was not lack of technology but unattractive Minimum Support Price for wheat that apparently led to "shortfall in procurement of the foodgrain" for the public distribution system -- necessitating the decision to import wheat in February. State Trading Corporation, the designated official agency for wheat import, contracted 55 lakh tonnes of the commodity, besides more by private traders after the government allowed them to import duty free. At a time when the country took the decision to import wheat this year, country's national farm research system under Indian Council of Agricultural Research (ICAR) launched an ambitious Rs 1,200 crore dedicated programme to be financed by World Bank on agricultural innovation programme. ICAR also forged greater technical collaboration in the field of agricultural sciences with American Universities under the US-India Knowledge Initiative. But the year was peppered with reports about farmers suicides, which kept the government on its toes. Half way down the year, the Prime Minister announced the Rs 3,750 crore exclusive package for the six districts of suicide-prone Vidharbha region. Besides, the central government announced a Rs 17,000 crore rehabilitation package for 31 districts of Andhra Pradesh, Maharashtra, Karnataka and Kerala. But the rain gods were kind during July to September even though volatile temperature fluctuations during the January- February period impacted the grain filling stage of the wheat crop. Favourable summer rain brightened the foodgrain production prospect during the Rabi sowing season as the acreage under the wheat crop registered nearly 20 lakh hectare higher acreage this year in comparison to last year's level. Sufficient rainfall in wheat growing belt also ensured adequate level of soil moistures and water reservoir levels in the irrigated areas for the main Rabi crop. "The wheat production prospect appears to be bright as per the progress of Rabi sowing season," Pawar said. The Government also stressed the need for development of sectors like horticulture for the sustainable growth in agriculture. For this, it sanctioned Rs 1,000 crore under the National Horticulture Mission in 2006-07. However, the farm sector grew at a poor rate of below two per cent during second quarter of the current fiscal as Kharif production was a bit lower than the year-ago level. If at all, there is to be a second Green Revolution, this time it will have to be broad-based with more focus on development of allied activities like horticulture, dairy and livestock farming. (PTI) |
CIL to take up 120 projects in the 11th Plan period KOLKATA, Dec 27: Coal India Limited (CIL) is planning to take up 120 projects with an ultimate capacity of 240 million tonnes during the Eleventh Plan period to contribute 70 million tonnes in 2011-12. Company sources said here today that with technology updating and other mechanisation, production could be augmented to meet the country's increasing coal demand. Faced with the task of achieving highest-ever growth rate of 43 per cent in production during the Eleventh Plan as compared to 30 per cent in the current Plan, Coal India Ltd (CIL) has finalised a strategy which envisages, among other things, complete outsourcing of all operations in the new mines. Sources said that during the Eleventh Plan, beginning in 2007, CIL would have to achieve a production growth of 157 million tonnes as compared to 84 million tonnes growth in the Tenth Plan ending in 2006-07. CIL has planned to mechanise all its underground mines by 2017 and go for mass production technologies. In 2006-07, the underground mines are set to produce about 46.27 million tonnes, which would increase to 54.6 million tonnes in 2010-11. The production from opencast mines is targetted to increase to 465.9 million tonnes from 317.5 million tonnes over the same period. (UNI) |
FDI likely to cross USD 11 bn in 2006-07 NEW DELHI, Dec 27: Foreign direct investment into India is set to double and cross 11 billion dollars this fiscal, Commerce Minister Kamal Nath has said. "Once reinvested earnings of foreign companies already present in India are taken into account, the total FDI inflows in 2006-07 could be 14 billion dollars compared to 7.7 billion dollars last year," Nath said. He said worldwide, reinvested earnings were also taken into account while calculating FDI inflows. However, even without this adjustment, fresh FDI inflow itself is expected to exceed the 11 billion dollar mark in 2006-07 as against 5.5 billion dollars in 2005-06. "Continuous liberalisation in FDI policy and simplification of procedures are contributing immensely to attracting increased inflows to India," Nath was quoted in an official statement. He said the annual review of the FDI policy taking into account the changing requirements of investors has given new confidence to foreign firms, which are bullish on India. (PTI) |
Gas samples sent to laboratory for tests SURAT, Dec 27: Samples of gas and water that erupted from an open space in Olpad taluka in Gujarat has been sent to the Oil and NaturalGas Corporation (ONGC) laboratory in Ankaleshwar for tests. Water and gas that had errupted from an open ground near a cyanide factory at Olpad on Monday. ONGC engineers and Government officials rushed to the spot immediately and cordoned off the seven acre area. The samples collected from the spot were sent to ONGC laboratory on the same day, sources said. A full fledged fire fighting team is also camping in the area, sources added.(UNI) |
HAL to produce complex components to Pratt and Whitney BANGALORE, Dec 27: Defence aviation major Hindustan Aeronautics Limited (HAL) has firmed up a huge ten year contract with aero engine maker Pratt and Whitney for producing complex components with an investment of around US dollars 20 Million (around Rs.100 crore) HAL Chairman Ashok K Baweja said today. Talking to newsmen here he said necessary investment would be made at the Koraput plant of HAL and the Unit would within the next two years start producing components. HAL would receive the technical documents and training for producing 70 complex components that go into the hot end of the aero engine. The contract would yield HAL about US dollars 50 Million over a ten year period, he added. HAL had already started producing components for another aero engine maker Snecma under a joint venture. Also in advanced stage was discussions with Airbus industries for setting up a maintenance, repair and overhaul (MRO) facility at the existing Bangalore Airport, Mr Baweja said adding that the joint venture would have a third partner. The busy Bangalore Airport would be fully under the control of HAL in 2008 when the new international airport at Devanahalli would become operational. "We will need the airport for testing our new aircraft and also the Aircraft Systems Training Establishment" he said adding that the new joint venture for MRO would generate much more than the current revenue of Rs 150 crore HAL was getting from the airport. HAL was expected to generate a turnover of around Rs 7000 crore this fiscal and was sitting on an orderbook of around Rs 30,000 crore. (UNI) |
Now Harvard & Wharton keen to know Lalu's success mantra NEW DELHI, Dec 27: The rustic Lalu Prasad today donned the mantle of a 'Management Guru', explaining to the students of world famous Harvard and Wharton Business Schools the wisdom entailed in making success of a venture, even if it is a written-off entity like Indian Railways and who at the end of it all were left mesmerised. The scene of action was the spacious auditorium of National Rail Museum and Railway Minister Lalu Prasad gleefully told the young corporates how he gave financial muscle to the Government's biggest department that was "teetering on the brink of a collapse" barely five years ago. It was not long after Mr Prasad began to speak on "The strategy and Policy Framework for the Turnaround of Indian Railways" that he held sway on the minds of high-profile students, used to employing sophistcated techniques, intriguing formulae and complex logic. The author of an incredible success story of turning around Indian Railways without using the cold logic of a modern day Corporate entity --no retrenchment and no hikes in fare and freight charges-- Mr Prasad kept the group of bright students --100 from Harvard and 37 from Wharton-- wondering how it all happened. The minister showed his astute understanding of market reality and the finer nuances of the functioning and finances of the railways by frequently using expressions like 'internal resources,' 'operating ratio,' and 'fund balances.' Paradoxically, in the US, the bastion of capitalism, the Railways run at a loss and in Europe it survives basically on subsidies. The 'Professor' was at pains to explain how a huge organisation which was written off by the Rakesh Mohan Committee in 2001, had become the second largest profit-earning public sector enterprise after ONGC. But belying all the gloomy forecast, the Railways had already made fund balances of Rs 13,000 crore and has now targeted to swell it to Rs 20,000 crore in the current fiscal. The key to the turaround of Railways lies in a basic principle of micro-economics --optimum utilisation of resources. For instance, Mr Prasad launched empty flow wagon scheme entailing incentives to the business community whereby lower freight is charged at a time when wagons would have been empty. In another instance, the minister put to use the unutilised capacity of wagons after 1800 hrs by permitting loading of freight. These plus some other mesaures have reversed the trend of Railways losing freight to the surface transport. The freight corridor, which is to link four metros and major ports, will ultimately tilt the applecart with a significant diversion of road traffic to the Railways in view of freight trains set to cruise at the high speed of 90-100 km per hour as compared to existing 25 km. In the passenger segment, Mr Prasad has created a heaven for the ordinary travellers by introducing 'Garib Rath' trains -- which allow travelling in airconditioned comfort at a price considerably less as compared to normal AC trains. In short, his mantra is larger volume but low margins. By doing this, he has become the darling of the trading and manufacturing community and messiah of the masses. "The Railways is like a Jersey cow. If you don't milk it fully, it will fall sick," goes his logic. For the mandarins of Rail Bhavan, this has simply translated into the optimisation of the existing resources of the Indian Railways to bolster its revenues. What is surprsing for the business experts the world over that the minister has been able to achieve such a turnaround without corporatising the Railways. So far, he has been able to prove it without effecting any hike in passenger fare and freight charges for the last three years. Necessity they say is the mother of invention. The compulsions of a mass political leader that Mr Prasad is has perhaps compelled him to work out a model which pleases everyone. He has become a hot favourite for the community of managers having been invited earlier by the IIM, Ahmedabad and later by the IIM, Bangalore. On his itinerary are a meeting with the World Bank in Washington, and a lecture at the Lal Bahadur Shastri Academy in Mussoorie. (UNI) |
With Mallaya on top, Indian liquor industry on a high in 2006 MUMBAI, Dec 27: The liquor industry remained on high spirits in 2006 with the insatiable Vijay Mallya making strides on foreign shores, while foreign companies, including the formidable Diageo, went for a foothold in Indian market. Mallya, who has gulped down rivals like Shaw Wallace, made it known that for him 'enough is not enough'. The 'King of Good Times', as he likes to be called, refused to be cowed down when his spirited Rs 3,000 crore bid for France's Champagne Taittinger failed. Within months of the failure, the liquor baron announced that his UB Group would acquire winemaker Bouvet-Ladubay, a subsidiary of Taittinger, for 15 million dollars. Mallya, who is also looking at foraying into China, entered into a tie-up with the Russian Standard Group for distribution of each others' products in India and Russia. UB is also in talks with White and Mackay for a possible buyout as it intends to enter the high-profile European Scotch Whisky market, besides eyeing a wine firm in Africa and another spirit firm in New Zealand. And just as the Indian liquor giant moved to new locales, Diageo, the global spirits major, formed a 50-50 joint venture with Radico Khaitan to roll out products in the Indian Made Foreign Liquor (IMFL) segment. Diageo, which has a huge repertoire of brands like Johnnie Walker-Black Label, Black & White, VAT 69 and Smirnoff, is gearing up to launch a new whisky brand in India through the joint venture. It also plans to buy a domestic wine company as it intends to produce wine in India. On its part, Radico Khaitan is also looking at expansion on a stand-alone basis and has kept aside around Rs 150 crore for organic and inorganic growth. Apart from Diageo, another premium brand maker that expanded in India was Beam Global Spirits and Wines, the fourth-largest premium spirits company in the world. Beam Global, whose current portfolio in India includes flagship brand Teacher's, entered a new category in the country with the introduction of an 'Indian Made Foreign Liquor brand, Whisky DYC, adapted exclusively for this market. The company, which will blend and bottle DYC in India, said India was a "focus market" for Beam Global and the launch of DYC was the first of many initiatives designed to tap the potential of the market. Reinforcing the bullishness on the Indian market, SABMiller plc, one of the world's leading brewers, bought out Australian beer maker Foster's Indian subsidiary for 120 million dollars. SABMiller said it would extend Foster's Lager nationally through its network of ten breweries and seek significant cost benefits from brewing and distributing the brand locally. Foster's India, the third-largest market for the Fosters brand globally, produced, distributed and supported Fosters Lager, Amberro Mild and Amberro Strong beer brands in India. SabMiller was again in news for its interest in acquiring the beer business of Mohan Meakin and also for picking up an interest in Mount Shivalik group, makers of Thunderbolt beer. Both the deals remained confined to speculation with no official comment, but SabMiller's acquisition plans would certainly pose a risk to UB's dominating share in beer market. The Indian beer market, which grew about 7-8 per cent over the last five years, is expected to grow by close to 20 per cent this fiscal. Industry analysts say tax and levies on beer are anticipated to fall over the next 2-3 years, driving down retail prices by 25-50 per cent. Beer will sell for Rs 15-20 per 330 ml can and Rs 20-30 per 650 ml bottle. On the policy front, India and France initially agreed to resolve through talks a dispute over high import duties on wine and spirits. However, soon after, European Union dragged India to World Trade Organisation's dispute settlement body over import duties and taxes on wine and spirit. The issue intensified when Indian spirit firms accused Scotch Whisky Association of Europe for blocking their entry into the high-profile liquor market by not permitting molasses-based whisky to be sold in Europe. Notwithstanding the disputes, the liquor industry looks set for a bright future with the expected increase in alcohol consumption suggesting a robust growth of 20-25 per cent annually over the next five years. (PTI) |
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Mazda secures order from PI Industries NEW DELHI, Dec 27: Automaker Mazda Ltd announced that it has received an order for Triple-effect Forced Circulating Evaporator Plant valued at Rs 2.37 crore. The plant is for effluent volume reduction and is a zero liquid discharge plant. The company has many installations to its credit for this type of equipments and the sales of this particular product has increased in the last few years. The company expects major increase in sales for this product in the current year.(UNI) |
CAG slams MCA for poor coordination with SEBI, RBI. NEW DELHI, Dec 27: The Comptroller and Auditor General has slammed the Ministry of Company Affairs (MCA) for non-coordination with regulators such as SEBI and RBI. "No institutional mechanism for correlation/coordination of activities and information with data of statutory bodies such as SEBI and RBI was in place," CAG said in its report for the year ended March 2005. Citing an example, the country's top auditor said 303 companies were found working as NBFCs in Shillong, Orissa and Rajasthan without being registered with RBI. Further, CAG said as per the data provided by Registrar of Companies, Delhi, 1274 non-banking companies were registered with it as on January 2006 even as data provided by RBI indicated that 2438 such companies were at work, it said. "Thus, RoC had failed to identify the companies which were working as NBFCs without registration with RBI and the foreign companies though registered with RBI were not registered with RoC, Delhi," it noted. In its reply, the Ministry admitted that there was need for improved co-ordination. CAG also noted there was non-realisation of fee amounting Rs seven crore from 1,400 foreign companies which defaulted in filing statutory papers on time. "Out of 1,840 foreign companies, 1,400 companies had not filed their balance sheet and 'Form 52' for which minimum fee of Rs 1.40 crore and additional fee of Rs 5.60 crore was recoverable," the report said. CAG also observed that a large number of foreign companies had closed their branch offices in India without informing RoC and identification of these companies was being taken up on priority. Test check of the files of 121 foreign companies examined manually in audit revealed that balance sheet and other documents were not submitted in many cases, resulting in non-recovery of fee and additional dues of Rs 1.83 crore. The report also noted that the department just issued default notices to only 10 companies till March 31, 2005. However, the Ministry said additional fee and penalty would be recovered from the defaulting companies when they come forward for filing documents. (PTI) |
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LUCKNOW, Dec 27: The consumption of milk and milk products in Lucknow has seen a sudden spurt in recent times and the demand has grown much beyond the local production levels. In this regard, Uttar Pradesh Milk Union has decided that Lucknow would be supplemented with supply from the neighbouring districts. This decision was taken, since milk supply from local Union members, besides Rae Bareli district, could barely meet the demand in the UP capital, Pradeshiya Cooperative Dairy Federation (PCDF) general manager S K Prasad said here today. Now, milk tankers would ferry from Sitapur, Shahjahanpur, Rae Bareli, Barabanki, Sultanpur, Lakhimpur, Gonda, Basti and Bahraich districts to the Lucknow Milk Union dairy for processing and subsequent supply in the state capital. Further, Mr Prasad informed that in 2005-06, Lucknow district had amassed an aggregate of over 28,000 kg milk per day. For the current fiscal, this figure has been pegged at 32,500 kg, while a target of amassing 36,000 kg milk per day has been fixed for 2007-08. "Following increase in union membership, there has been a significant increase in milk supply and corresponding rise in revenues," he added. (UNI) Oil Minister for infrastructure status to E&P business NEW DELHI, Dec 27: With companies like ONGC and Reliance Industries making huge oil and gas finds, Petroleum Ministry has made a strong pitch for grant of infrastructure status to exploration and production business to give further fillip for exploring the untouched basins. Infrastructure status will exempt E&P business from paying income tax for 10 years. In its wish list for the Budget 2007-08, the ministry has said "domestic E&P investments are the need of the hour considering the growing oil import dependence of the country." Besides E&P business, the ministry also sought tax holiday for LNG import and re-gasification projects, cross- country pipelines for crude, gas and petroleum products and crude and product import facilities, official sources said. Facilities put up in the oil sector are no less than other infrastructure projects as they service the energy needs of the nation. "Allowing them the benefit of infrastructure projects will facilitate creation of additional resources, which can be utilised for further development of the oil sector to service the needs of the growing economy," it said. It also sought withdrawal of service tax on 'Survey and Exploration of Mineral' to promote domestic E&P. "Levy of Service Tax on survey and exploration services inadvertently levies tax on core activity of E&P companies. However, services used during commercial production (after exploration) may be levied service tax, sources said. It has also sought expansion of duty-free list of items to cover all capital items and goods required for petroleum operations and coal bed methane operations. Sources said the ministry has also sought zero customs duty on capital goods imported for new refineries and refinery expansion. "92 million tons of new refining capacity is expected to be added during 2007-12 with PSU Plan expenditure being of the order of Rs 85,000 crore. With tariff protection at its lowest, customs duty on project imports for new refineries may structurally increase the cost of refining for new projects," the ministry proposal said. The ministry also wanted basic customs duty reduced on projects imports to zero for crude, product and gas pipelines and CNG/auto LPG infrastructure. To promote use of environment friendly natural gas as fuel, the ministry demanded 'Declared Goods' status so that the fuel attracts a uniform rate of 4 per cent central sales tax instead of varied taxes rates across the states, going as high as 20 per cent in some cases. "Since oil and gas is critical for the growth of the economy, the important capital intensive infrastructure developments projects in the sector... Should be given infrastructure status similar to power and telecom sector," the ministry's proposal to Finance Ministry said. (PTI) |
WWIL to invest Rs 800-900 cr for digital cable services. NEW DELHI, Dec 27: Zee's cable distribution arm Wire and Wireless India Ltd (WWIL) today said it will invest about Rs 800-900 crores to provide digital cable services. The company, which recently demerged from Zee Telefilms, is one of India's largest multi-system operators (MSO) with a viewer base of 6.7 million and presence in 35 cities. The services of WWIL would be gradually expanded to provide triple play - voice, video and data. The company, which today launched CAS services under 'GalxZee' tag, plans to invest Rs 800-900 crore in next few years, company officials said. (PTI) |
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