Daily Excelsior...Business

Tomato prices up by over 14 pc in two days.........

Tax Dept probing officers' role in MDH case flip-flop.........

CII not for interest rate hike to combat inflation.....

Videocon in talks with Samsung, Sony for LCD supply.......

Viva Travel Institute opens franchise in Jammu

Excelsior Correspondent

JAMMU, Apr 6: Viva Travel Institute today inagurated its associate registration office at Gandhi Nagar.

The occasion was marked by a seminar cum counselling programme for students as well as parents. Prof Ashok Aima was the chief guest on the occasion whereas Dr Vinay Chouhan was the guest of honour.

Director of the institute, Vikas Khanduri while speaking in the inagural seminar said that the institute offers four different courses to the aspiring students with an age of 18 years or more.

"The institute offers a wide range of intensive training programmes in Executive Certificate Course of 14 weeks, Travel Professional Certificate Course of 9 weeks, Specialization Programme (in bound/out bound) of 4 weeks and Travel Manager Certificate Course of 52 weeks," he added.

"The areas of study include English, Geography, MICE, Out Bound Travel, Sales and Marketing and Managerial Economics" he elaborated.

Regional head of the institute, Vishal Kohli in his address maintained that the mission of institute is to inculcate in aspirants of Travel and Tourism industry the world class learning them.

The institute is a group company of Viva Voyages Private Ltd with an ISO 9001:2000 certification, he maintained.

In their formal address, Mr Aima and Mr Chouhan congratulated the Viva team in bringing such specialized short term courses to the aspirants of Tourism industry in a city like Jammu.

Prioritise completing unfinished agenda in FTP: FICCI

NEW DELHI, Apr 6: As the Government is ready to present the final annual supplement to the Foreign Trade Policy this week, FICCI has said priority should be given to complete the "unfinished agenda" of reducing transaction cost and neutralising incidence of duties to boost exports.

"In view of the current global slowdown and adverse impact of rupee appreciation on Indian exports last year, there is need for more dynamic export promotion measures and schemes in the forthcoming annual review of Foreign Trade Policy 2004-09," industry body FICCI said.

Priority should be given to bring down transaction cost, which is the highest as compared to other competing countries, it said. Simplifying procedures and bringing down transaction cost was part of the FTP announced in 2004.

Citing a World Bank study, FICCI said transaction cost of exporting a container from India was 844 dollars while it was 390 dollars in China, 432 dollars in Malaysia and 515 dollars in Pakistan.

"Another unfinished agenda of the Policy for 2008-09 is the neutralisation of incidence of levies and duties on inputs used in exports," Ficci said.

The supplement to the FTP should also provide a roadmap for a comprehensive duty neutralisation scheme, replacing the DEPB, which would neutralise import and other duties. This new scheme should work on the principle that duties and levies are not exported, it said.

In the absence of a suitable replacement, DEPB should continue till 2010 when GST will be introduced, it said.

In separate suggestions to the DGFT on SEZs and EOUs, Ficci said all services provided to SEZ developer and its units outside their premises for authorised operations should be exempt from service tax. (PTI)

Govt mulls putting steel back under
Essential Commodities Act

NEW DELHI, Apr 6: Within a year of pulling it out of Essential Commodities Act, the Government is considering reversing its decision if the steel producers do not hold the price line.

Although the steel majors have recently reduced prices by about Rs 2,000 a tonne, the producers may again hike prices in tune with international trend. Thus, with inflation rate at 3-year high at 7 per cent, the steel ministry is keeping all options open to ensure steel prices were kept under check.

Steel Ram Vilas Paswan has written a letter to Prime Minister Manmohan Singh suggesting various measures fiscal and non-fiscal, including putting steel back into Essential Commodities Act. This is all the more significant in the backdrop of steel prices increasing by about Rs 7,000 during the past three months.

"In the three-month period since December 2007, steel prices have risen by 20-24 per cent...Possibilities of setting up a regulatory mechanism for steel and its inputs and re- classifying steel as an essential commodity may be considered by the Government," Paswan said in his letter.

However, it may be noted that after a meeting with top Ministry officials, the producers had rolled back their prices this week.

The government has already withdrawn export incentives being offered to steelmakers in the form of Duty Entitlement Pass Book (DEPB) scheme, which would hit the the bottomlines of major steel producers by about Rs 600 crore.

Besides, the Minister also recommended setting up a regulator in the sector, which among other things would regularly monitor steel prices and take corrective steps. (PTI)

Govt holding dips by over $100-bn in stock market crash

MUMBAI, Apr 6: It's not only the corporate houses or big and small investors who have burnt their fingers in the ongoing stock market turbulence -- Government has also lost in excess of USD 100 billion due to fall in the share prices of publicly traded companies where it has promoter equity.

With investors losing a total of about USD 500 billion (over Rs 20,00,000 crore) since the downslide began on the bourses earlier in January this year, the Government's stock market kitty alone accounts for over one-fifth of this loss at about Rs 4,25,000 crore.

If the promoter shares held by various states and other government entities are also taken into account, the total government loss, although in notional terms, grows up to about Rs 4,50,000 crore since January 10, when the market benchmark Sensex hit its life-time high before embarking upon its ongoing southward journey.

However, when compared in percentage terms, the loss in the value of Government's holding is equivalent to the broader market losses of about 30 per cent in this period.

The total investor wealth, measured in terms of market value of all the listed companies, had dipped to Rs 50,51,648 crore currently, as against over Rs 71,00,000 crore as on January 10, according to data available with the bourses.

Out of these, the market capitalisation of 46 public sector companies, where the Government holds at least 50 per cent equity, has dropped by more than Rs 5,33,000 crore, led by losses ranging between Rs 60,000-75,000 crore for trading firm MMTC, power generation major NTPC and energy giant ONGC.

Besides, companies like NMDC, State Bank of India, BHEL, SAIL, Indian Oil, Power Grid Corp, Neyveli Lignite, Hindustan Copper and Power Finance Corp have also seen their market values plummeting by Rs 10,000-40,000 crore each. (PTI)

India Inc expects inflation to flare up further: McKinsey

NEW DELHI, Apr 6: As if inflation at its highest level in about three years was not enough, nearly two-third of executives in India expects the rate of price rise to further flare up in the next six months, according to a new survey.

However, this pessimism level regarding the inflation among the Indian executives is much lower when compared to the places like China, Europe, North America, other developing markets and the overall Asia-Pacific region.

According to the report titled "Economic and Hiring Outlook, First Quarter 2008: A McKinsey Global Survey," as many as 64 per cent of Indian executives expect the rate of inflation to rise in the next six month, while only 20 per cent expect a decline in the rate of price rise.

About 15 per cent of Indian executives expect the inflation rate to remain unchanged in the next six months, the survey found.

The survey was conducted in March, presumably before the government data showing the rate of inflation at 7 per cent was released on April 4.

According to the survey, the percentage of executives expecting a rise in rate of inflation is less than India only in Latin America, where 58 per cent said they expected it to rise in their country from current levels in the next six months.

In comparison, those expecting rise in inflation were 70 per cent in China, 69 per cent in Europe, 75 per cent in North America, 76 per cent in Other Developing Markets and 79 per cent in Asia-Pacific.

According to the report, the executives' fears of inflation have risen and the proportion of business representatives who expect to be able to raise prices (of their products) has fallen. (PTI)

Tax Dept probing officers' role in MDH case flip-flop

NEW DELHI, Apr 6: The Income Tax department is trying to ascertain it's officers role in spice powder company MDH Masala's offer to pay Rs 54 crore to get tax sleuths off its back and subsequent claim that it was forced to do so.

It is believed that an internal probe is on to get to the bottom of whether tax officials extracted a confessional statement from MDH after searches in November 2006 for alleged tax evasion failed to yield any incriminating evidence.

MDH in a statement then had said "for mental peace, the company is surrendering an amount of Rs 54 crore to the department," sources said, adding that the company had retracted it four days later.

The probe will find why tax officials concerned accepted a vague letter from the company that did not even say under which head the amount was to be surrendered, sources added.

The Income Tax department had conducted raids on at least 50 offices of the MDH group of companies including in Delhi, Gurgaon, Jaipur and residential premises of its owners and seized huge amounts of cash and documents.

The inquiry will also go into whether officials provided a loophole to the company, which has tried to take refuge under the plea that it was forced to give a confession statement.

MDH officials declined to comment on the matter.

"The officials are now finding it difficult to explain why they had accepted a letter that mentioned that the amount was being surrendered for mental peace and not toward tax evasion or undisclosed income," said a senior official.

Sources said the department issued letters to the officials about two months back when they failed to establish the claimed tax evasion by the company.

MDH has an annual turnover of around Rs 200 crore and is a leading manufacturer of blended spices. (PTI)

CD Pharma to introduce 4 drugs in
India with licence agreement

NEW DELHI, Apr 6: CD Pharma India, a subsidiary of VSL Pharmaceuticals, plans to introduce four drugs in the market for which it is scouting for domestic companies to enter into licencing agreement.

"We are trying to enter into a licencing agreement with a few big pharma companies in the country for some of our brands," CD Pharma India Country Manager K S Chadha said.

He said the four drugs are in the therapeutic areas of gastroenterology, gynecology, oral cavity and skin care.

The company has got the approval of Drug Controller General of India (DCGI) for introducing four drugs in the country and has already signed a license agreement with Ranbaxy for introducing 'Inersan' (a patented probiotic preparation used in oral care) in India and Nepal.

Presently, talks are going on with a pharma major for both capsule and sachet forms of the company's registered lactic acid proprietary product, under the brand name VSL#3,

The company is planning to launch two more products in the country in the next one year and has also initiated the process of registering its product for patents in India.

"Most of our products are manufactured by using Probiotic platform, which are new to Indian pharmaceutical market and the combined market of these products in the country is more than Rs 1,000 crore per annum," Chadha said.

Besides, the company is also going to set up a research centre in the country for conducting research on micro- organisms in the country.

"We are also looking to set up research centre in the country and the total investments in the project would be to the tune Rs 50 crore," Chadha said.

CD Pharma is a wholly-owned subsidiary of US based VSL Pharmaceuticals and is a leading company in the field of research and development in Probitic segments. (PTI)

Tomato prices up by over 14 pc in two days

NEW DELHI, Apr 6: Wholesale prices of tomato rose sharply by around 14 per cent to Rs 14.5 a kg last week in the national capital due to delay in arrival of new crop.

Best quality tomatoes were available in Azadpur Mandi, the country's largest wholesale market, at Rs 12.75 a kg on April 3, but it rose to Rs 14.5 a kg on April 4, according to the Agriculture Produce Marketing Committee.

In the last one month, tomato prices have gone up nearly 30 per cent. The price was Rs 11.20 per kg a month back in the wholesale market. The retail prices hover in the range of Rs 20-28 per kg.

A wholesaler at Azadpur Mandi attributed the price rise to delay in arrival of the new crop. He said the situation would return to normal with fresh arrivals within a fortnight.

Traders denied reports that tomato prices have shot up due to large exports to Pakistan. "Shipments were going when prices were ruling here at Rs 3-5 a kg," an exporter said.

Another wholesale trader Jagdish Prasad said the national capital is currently receiving supply of tomatoes from Gujarat and West Bengal and the quantity is less.

"The supply position may improve within a fortnight after supply from Jaipur (Rajasthan), Meerut (UP) and Ladwa (Haryana) starts," he said.

Delhi is not the only one to be hit by increasing tomato prices. Similar rising trends were witnessed in other States during the last one month. In Himachal Pradesh, the tomato prices have shot up as high as Rs 2,200 per quintal in the wholesale market from Rs 1,300 a month ago.

The prices have increased from Rs 450-850 per quintal to Rs 500-1,100 per quintal in Karnataka, while in Punjab the rate shot up from Rs 700-1,200 per quintal to Rs 900-1,500 per quintal now. In UP, tomato prices have been hovering around Rs 850 a quintal. (PTI)

Tax Dept probing officers' role in MDH case flip-flop

MDH in a statement then had said "for mental peace, the company is surrendering an amount of Rs 54 crore to the department," sources said, adding that the company had retracted it four days later.

The probe will find why tax officials concerned accepted a vague letter from the company that did not even say under which head the amount was to be surrendered, sources added.

The inquiry will also go into whether officials provided a loophole to the company, which has tried to take refuge under the plea that it was forced to give a confession statement.

MDH officials declined to comment on the matter.

Sources said the department issued letters to the officials about two months back when they failed to establish the claimed tax evasion by the company.

MDH has an annual turnover of around Rs 200 crore and is a leading manufacturer of blended spices. (PTI)

CII not for interest rate hike to combat inflation

NEW DELHI, Apr 6: Industry chamber CII has opposed any move to increase interest rate by the Reserve Bank to combat inflation, saying that it would result in further fall in industrial production.

The Reserve Bank, which is scheduled to announce its annual monetary policy on April 29, is under pressure to increase interest rates to dampen the inflation, which touched three year high of 7 per cent on March 22.

The industry is apprehending that the Government and the Central Bank could sacrifice GDP growth to check inflation by favouring hike in interest rate. It would hit their profit margins as demand for products would fall due to rising cost.

"With global economic conditions worsening along with increasing price trend of commodities internationally, any move that will choke investments in the economy will add to the declining IIP (industrial production) and prolong a turnaround," CII said in a statement.

The apex bank could send a signal that interest rates would be cut to stimulate investments and growth or in a worst -case scenario, maintain status quo on monetary measures, it said.

It claimed that restricting demand to manage supply side constraints would not augur well for growth, the industry body said.

It pointed out that the current inflation has been a supply side driven phenomenon which needs to be dealt cautiously so as to not sacrifice growth over price stability.

"Any monetary measures that are aimed at controlling inflation should be judiciously employed so as to not sacrifice growth," CII said. (PTI)

Videocon in talks with Samsung, Sony for LCD supply

NEW DELHI, Apr 6: Homegrown consumer electronics major Videocon group is in talks with leading international players, including Samsung and Sony, for original equipment (OE) supplies of high-end liquid crystal displays (LCD).

The company, which has set up a USD 200-million plant in Italy for manufacturing of the LCD panels, has started operations and is currently doing test marketing in the European markets.

"This Italy plant is mainly aimed at OE supplies and we have been talking to supply to all major global players, including Sony and Samsung," Videocon Group Chairman Venugopal Dhoot said.

He said the company expected to sign a definitive supply agreement in three months time with some of the major players. He said the investments required for the plant in Italy was raised from there only.

"Although the plant is primarily meant for the overseas markets, we will also be bringing the products to India for Videocon’s own domestic requirements. This will give us an advantage despite the import tariff that we may incur," Dhoot added.

Over the past few years, Videocon has been focus sing on expanding not only in the domestic market but also overseas through acquisitions. It had acquired the picture tube business of Thompson and also the Indian subsidiary of AB Elextrolux of Sweden. It was also in the race to acquire Korea’s ailing electronics giant Daewoo only to stumble at the last stage.

Dhoot said the company has been able to garner 30 per cent share in the Indian consumer durables market and expects to grow it further.

"The industry grew by 15 per cent last year and we, in Videocon, believe will continue to better the industry growth," Dhoot said.

In the quarter ended December 2007, Videocon Industries had recorded a net sales of Rs 2,362.16 crore with a net profit of Rs 249.49 crore.

The Indian consumer durables industry is estimated to be valued at 22 billion dollars and is expected to expand to 160 billion dollars by 2016. (PTI)