FMC raps NCDEX for fund diversion, lax internal controls....

Car buyers can expect lower prices........

‘Filmi’ packages hot on tourist circuit..........

Regulatory Authority for warehousing sector soon

NEW DELHI, Mar 1: The Government is likely to form a Warehousing Regulatory Authority soon for facilitating credit extended to the farmers from banks against their produce stored in accredited godowns.

"The Authority will soon be constituted, the process is on," a top official of Food Ministry said.

A committee headed by the Cabinet Secretary will select the Chairman and Members of the Authority, sources said, adding that the Chairman would be of the rank of a secretary.

With the help of some private sector warehousing firms, farmers are getting loans from banks, although in miniscule amount, against their produce. Warehousing companies like NBHC and NCMSL have tied up with banks and are providing warehouse receipts to farmers for availing loans.

Warehouse receipt has been made a negotiable instrument through Warehousing (Development & Regulation) Act, which was passed in 2007 to help farmers take loans from banks against their agricultural produce.

However, the Centre is yet to notify the Act due to a legal hitch as it would have to simultaneously register warehouses with the regulatory authority. (PTI)

ArcelorMittal offered over 1,000 acres for Jharkhand plant

NEW DELHI, Mar 1: Arcelor Mittal has made a headway for its proposed 10-billion dollar steel project in Jharkhand as the State Government has offered over 1,000 acres of land for its plant.

The development comes at a time when the world’s largest steel producer is facing resistance in the acquisition of private land from local villagers in the state.

"We have been offered by the Government of Jharkhand a little over 1,000 acres (of Government land) for our proposed integrated steel plant," ArcelorMittal India CEO Vijay Bhatnagar said.

The company has been asked to deposit Rs 12.5 crore, which is 80 per cent of the land value, with the State Government, he added.

In all, ArcelorMittal would require 11,300 acres for its proposed steel plant and township in Torpa-Kamdara blocks of Khunti and Gumla districts. Of the total land requisitioned by the company, 1,900 acres is owned by the Government.

Asked if the company plans to cut down its first phase of production to three million tonnes as it would require less land, Bhatnagar said this will not be possible as surveys and DPR have been undertaken on the basis of the envisaged output of six million tonnes in each of the two phases. (PTI)

PepsiCo to spend USD 5 mn on kids, women in India, B’desh

NEW DELHI, Mar 01: As part of its corporate social responsibility (CSR) initiative, soft drink major PepsiCo will be spending five million dollar (about Rs 25.5 crore) over malnourished children in India and Bangladesh.

The programme would be carried out by PepsiCo Foundation under ‘Save the Children’ initiative to create awareness about health, nutrition, water, sanitation and hygiene among the rural population, the company said in a statement.

This initiative is likely to benefit about 6,50,000 children under the age of five, along with lactating women, in these two countries.

PepsiCo Foundation has earmarked 2.5 million dollar for India, and would start with three districts in Rajasthan and implement its programme through community health groups.

"With this new project, we seek to introduce and encourage healthy practices among mothers and children, so that they carry them for the rest of their life," PepsiCo Foundation Chairman Indra Nooyi said.

An estimated 50,000 people would be touched through water and sanitation activities across Churu, Tonk and Banswara districts in Rajasthan. The programme is likely to cover 65 villages and eight urban wards in the state. (PTI)

CII asks Govt to accord 'industry status' to realty sector

NEW DELHI, Mar 1: Industry body CII has asked the government to accord industry status to the realty sector in a bid to attract investments so that it could recover from the ongoing slowdown.

The chamber said the industry status would bring a major transformation in terms of outlook.

"The industry status will help the sector access bank lending at a competitive interest rate at low collateral values as against high risk rates prevailing at present," CII said in a report on the country's real estate sector.

The chamber said the 'industry status' would stimulate investments, inculcate corporate culture and industry discipline, which would benefit both economy and consumers.

The realty sector, especially the housing segment, has played a "catalyst" role in India's economic growth as it has strong backward and forward linkages with more than 250 industry sectors, including cement, steel, brick, timber and other building materials, it added.

CII, however, pointed out that due to unfavourable policies and heavy taxation regime, the potential of realty estate sector has not been fully realised.

One of the reasons of the high cost of real estate and housing in India was the cost of finance, it said. (PTI)

FMC raps NCDEX for fund diversion, lax internal controls....

MUMBAI, Mar 1: NCDEX terminated its former CEO P H Ravikumar and a few other employees after finding evidence of their involvement in some "improper" transactions, according to a communication between the country's second largest commodity bourse and the market regulator FMC.

The exchange has also been rapped by the regulator for diversion of funds from its Settlement Guarantee Fund (SGF), which fell to just one per cent of a minimum requirement of Rs five crore, as stipulated in the bourse's own bye-laws.

"The Commision has a serious note of the unauthorised deviations and diversion of funds made by the Exchange in the treatment and utilization of SGF, which is neither in accordance with Commission's directions nor with its own board of directors' resolution..." the regulator said in an order barring NCDEX from cutting its transaction fees.

The bourses are required to maintain SGF to ensure risk- free trading and the members contibute to this fund.

In the same order, the regulator has revealed that NCDEX had itself told it about various instances of "financial mismanagement" and lax internal controls at the exchange, due to which it had to terminate its former CEO and Managing Director P H Ravikumar last year. (PTI)

Car buyers can expect lower prices........

NEW DELHI, Mar 1: Missed out on a good car bargain the last time? Wait, there is relief yet.

In a stride that could see the price tags of cars coming down, the Government is understood to be in discussion with automakers to pass on the entire benefit of the four per cent CENVAT cut in December last year, to consumers.

The move comes after some auto majors, including the country’s largest carmaker Maruti Suzuki, Hyundai Motor and Toyota Kirloskar, increased their vehicles’ prices in the last two months citing rise in input costs and devaluation of the rupee in the international market.

"The Department of Heavy Industries has been asked to see that automobile majors pass on the benefit of the duty cut to consumers," an official source privy to the recent meeting of the Committee of Secretaries said.

Following the excise cut, all vehicle manufacturers had reduced prices, thereby passing on the benefit to consumers.

However, after initially passing on the benefit, some of the carmakers, including Maruti Suzuki, Hyundai Motor and Toyota Kirloskar hiked prices by up to Rs 10,000, Rs 14,636 and Rs 25,000, respectively.

"The Revenue Department has pointed (out) that the Government had cut excise duty with an intention that the benefit will be passed on to consumers. However, (the) auto sector has increased the prices," the official said. (PTI)