MCX AGM set to be stormy

The annual general meeting of the Multi-Commodity Exchange of India (MCX) , scheduled for tomorrow, could well be a stormy affair as some NSEL investors plan to protest outside the venue.

Also read:  Brokers may boycott trading on MCX: NSEL Investors Forum

MCX, the only listed commodity exchange in the country, is promoted by troubled Financial Technologies (FTIL) , whose group firm National Spot Exchange (NSEL) is at the centre of payment crisis and holds 26 percent in the exchange.

Last week, auditors of FTIL had withdrawn their audit report for FY 2013, saying the financial statements could no longer be "relied upon".

FTIL's statutory auditor Deloitte Haskins & Sells had withdrawn its audit report certifying accounts of the company for FY 2013 as the Rs 5,600 crore payment crisis at NSEL ballooned.

The audited accounts were to be placed for FTIL's annual shareholder meeting on September 25 but the auditor red-flagged the financial statements and withdrew its report.

"The statutory auditors of the company on September 23 informed that the audit report dated May 30, 2013, on the standalone and the consolidated financial statements of the company for the year-ended March 31, 2013, should no longer be relied upon," FTIL had said in exchange filing.

NSEL, promoted by Jignesh Shah-led FTIL, is facing problems in settling Rs 5,600 crore dues to 13,000 investors after it was forced to suspend trade on July 31 on government directive. The exchange had defaulted on committed payments for the fifth consecutive time last week.

MCX shareholders, on condition of anonymity, said they are concerned over all these developments.

An official of NSEL investor form said there are plans to hold protest outside the venue of MCX AGM.

The Forward Markets Commission (FMC) had last month told the board members of the commodity spot exchange that "non-settlement of outstanding trade on NSEL seriously reflects your credibility and reputation which is a key ingredient in meeting the criteria for 'fit and proper' person."

Joseph Massey, MD and CEO of MCX-SX, has already decided to withdraw his request for re-appointment as a director of MCX.

The MCX board also appointed RM Premkumar, the FMC-nominated director, as interim chairman early this month.

This clearly means that FMC will now have a greater say in the functioning of the board. A look at new board will show that four out of eight board members are FMC nominated, a shareholder, Alok Kumar, said.

Investors are eagerly awaiting the outcome of the finance ministry's decision to take action against NSEL as the panel, headed by economic affairs secretary Arvind Mayaram, submitted its report on alleged irregularities in the bourse last week and found many loopholes in the functioning.

The Mayaram panel also called for a CBI, MCA and ED probe into alleged irregularities in the exchange.

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New Land Acquisition Act not anti-industry: Jairam Ramesh

Union Minister for Rural Development Jairam Ramesh on Sunday allayed fears of Indian industry and said the new Land Acquisition Act would make projects economically viable.

Also read:  Land acquisition bill to be notified in two months: Ramesh

Terming the new act "historic", Ramesh said it was "humane, its thrust is on rehabilitation and resettlement and in the national interest, as it promotes the welfare of tribals and marginal farmers".

In order to represent this spirit, the new act, to be notified early 2014, has been re-christened "Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement," Ramesh said.

Addressing apprehensions of the industry, Ramesh said the new act would apply only to land acquired by the central and state authorities for a public purpose, and there would be no bar on purchase of private land.

"The industry must look beyond land acquisition by the government and explore land purchase opportunities. In fact, in 20 years, there should only be land purchase and no land acquisition," Ramesh said.

Ramesh said that a bill seeking to amend the Registration Act, 1908, has been introduced in parliament. After it is passed, all land sales and registration records will come into the public domain. With increased transparency, it will be easier for corporates to purchase lands, he said.

Terming the old law "anti-democratic" as governments bought land from people at low prices and sold it to business houses at a premium, he said it created public anger nationwide and led to mass movements in Uttar Pradesh, Madhya Pradesh, Gujarat and Odisha.

Under the new act, the collector's powers have been considerably curtailed, and the purpose of land acquisition has been clearly spelt out, with major emphasis on rehabilitation and resettlement.

"The consent of Gram Sabhas in Schedule V areas, mostly tribal-dominated, and consultation with the gram sabha in other areas has been made mandatory. If the government failed to utilise the land so acquired for public purpose within five years, it will be required to return it to its owners," Ramesh said.

On compensation, the minister said that farmers and others who lose their lands would be entitled to twice the rate of a three-year average of highest selling prices in urban areas and up to four times the average highest sale price in rural areas.

"There is also a provision of leasing the land instead of selling, thereby opting to receive a regular income over a longer period of time," Ramesh said.

Since it is under the concurrent list of the constitution, states could improve upon the compensation and other provisions in favour of the landowners and farmers, Ramesh said.

Due to be notified either January 1 or April 1, 2014, the act should be implemented by all states in the right spirit, he said

Reiterating that land acquisition should become an act of "last resort", Ramesh said his ministry has been working towards improving land records management and promoting transparency in land sales across India.

A Rs.10 billion (Rs.1,000 crore) National Land Record Modernisation Programme is being implemented with focus on computerisation of land records, digitisation of maps and surveys.

While Maharashtra has progressed well on this front, it has yet to catch up with states like Haryana, Gujarat, Karnataka and Tripura, he added.

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Nalco to pay Rs 322.15 crore as dividend to government

Aluminium giant Nalco has announced a total dividend payout of 25 percent, amounting to Rs 322.15 crore for 2012-13, as against 20 percent paid in the previous year.

Also read: Nalco rejects Vedanta's request for alumina

Announcing this after the Annual General Meeting of the company here, Nalco CMD Ansuman Das said the shareholders of the Navaratna PSU approved a total dividend payout of 25 percent which works out to Rs 1.25 per share.

With this, the total payout would be Rs 322.15 crore for 2012-13, he said, adding, since inception Nalco had paid a total of Rs 4519.17 crore as dividend, including Rs 3920.73 crore as share of the central government.

The upward revision was approved following a recommendation for payment of a final dividend at Rs 0.50 per share (10 percent) in addition to the interim dividend of Rs 0.75 per share (15 percent) paid on March 30, 2013.

The total dividend pay-out for 2012-13 would work out to be at Rs 1.25 per share (25 percent) as against Rs 1.00 per share (20 percent) paid for 2011-12.

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Nationwide ban on earth mining for bricks and roads: NGT

In a blow to brick-kiln industry and road contractors, the National Green Tribunal has banned digging of earth across the country for making bricks and roads without prior environment clearance (EC).

A bench headed by Justice P Jyothimani has directed the Chief Secretaries of all the states and union territories to ensure that its interim order is adhered to.

"We restrain any person, company and authority to carry out any such digging activities of brick earth or ordinary earth against the directives issued by the Ministry of Environment and Forests (MoEF) of June 24, 2013 in any part of the country without obtaining EC from the competent authority.

"The Chief Secretaries of all states/Union Territories (UTS) are to ensure strict adherence to this order," it said.

The tribunal issued notices to Uttar Pradesh seeking its response on the plea for directions to the state government to stop extraction of earth for making bricks and roads, which is allegedly going on in violation of a Supreme Court decision as well as directions of the MoEF to all the states.

"Considering the seriousness of the issue", the bench restrained the UP government from permitting such digging until further orders of the tribunal.

The NGT made the order applicable to all the states saying "as the judgement of the apex court as well as the directives issued by MoEF has got the effect and applicability throughout the territory of India,... what is applicable to respondents (UP government) by our interim order is applicable to all the other states and UTs also".

The ban on brick earth mining comes one-and-a-half months after the NGT banned sand mining from river beds, without environment clearance, across the country.

As per the petition, MoEF in its office memorandum to the states has directed that digging of earth for making bricks and roads requires EC from the competent authority.

The petition has alleged that in spite of the decision of the apex court and the directives of the MoEF, the Uttar Pradesh government has not framed rules/guidelines for the purpose of obtaining EC and are allowing indiscriminate digging of earth.

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US aircraft lessor ILFC sends rental default notice to Jet

Naresh Goyal-promoted Jet Airways has been slapped with a default notice by one of its lessors, ILFC, for non-payment of rentals.

Also Read: Jet-Etihad deal: CVC may close complaints of irregularities

Jet, however, said it is negotiating with the US-based International Lease Finance Corp (ILFC), and hopes to reach an amicable settlement.

The default amount could not be ascertained. According to reports, Jet has been served a notice by ILFC for non-payment of rentals of its about six Boeing 737s.

The aircraft for which the rentals have not been paid are currently with both Jet Airways and its low-cost arm JetLite.

"Jet Airways has a long and excellent relationship with ILFC. Jet and ILFC are currently in discussions to reconcile their respective accounts to identify the exact dues. On completion of the same, the accounts will be settled," a Jet spokesperson told PTI.

The Jet Group has 115 planes, both narrow-body and wide-body aircraft, a majority of them leased.

The airline reported a net loss of Rs 355.38 crore in the June quarter and is pinning hopes on the impending Rs 2,058 crore deal by divesting 24 percent stake to Etihad to overcome the financial problems.

The deal, which is awaiting approval from the Cabinet, the market regulator Sebi and competition watchdog CCI, has been challenged in the Supreme Court by BJP leader Subramanian Swamy, alleging corruption.

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NALCO plans new ventures, expansion, diversification

Despite declining prices and adverse market conditions, aluminium giant NALCO , which posted 4.75 per cent jump in sales turnover at Rs 6,809 crore in 2012-13, has plans for ambitious new ventures, expansion and diversification programmes, a top company official said today.

Also Read: See FY14 output at 3.5 lakh tonne: Nalco

Nalco is pursuing with Odisha government plans to obtain Pottangi Bauxite Mines, which has a mineable reserve of about 70 million tonnes, NALCO CMD Ansuman Das said at the 32nd annual general meeting of the Navaratna PSU here.

Subject to availability of Pottangi Mines, the company has plans to go for 5th stream Refinery based on medium pressure digestion technology at Damanjodi, he said.

The capacity of the stream will be approximately 1 million tonnes per annum and investment will be approximately Rs 5,000 crore.

The CMD said NALCO is planning to set up a Rs 5,500 crore greenfield Alumina Refinery in Gujarat with 1 MTPA capacity, for which Bauxite shall be supplied by Gujarat Mineral Development Corporation.

Listing the achievements of NALCO, the CMD said: "The company has posted a higher net sales turnover of Rs 6,809 crore, which is 4.75 per cent over Rs 6,500 crore achieved in the previous fiscal."

The rise in sales turnover was mostly attributed to higher production and sale of alumina, he said. However, the net profit of the company was Rs 593 crore during the year as compared to Rs 850 crore in the previous fiscal, primarily due to high input costs, Das said.

NALCO achieved in last fiscal the highest-ever performance in Bauxite transportation of 54.19 lakh tonnes (LT), against the previous best of 50.03 LT in 2011-12, the CMD said.

At the same time, Nalco's Alumina Refinery has produced 18.02 lakh tonnes of alumina hydrate, which is an all-time high, against the previous best of 16.87 LT achieved in 2011-12, he said.

The Aluminium Smelter Plant at Angul achieved cast metal production of 4.03 LT against 4.13 LT achieved in 2011-12, Das said.

On sales, the Nalco CMD said the company achieved total chemical sale of 9.85 LT in 2012-13 compared to 8.43 LT achieved during 2011-12. This includes Calcined Alumina Export of 9.44 LT made during 2012-13 compared to 7.92 LT export during 2011-12.

The total metal sale during 2012-13 was 4.03 LT compared to 4.15 LT during 2011-12. Total metal sale consists of domestic sale of 2.59 LT and export of 1.44 LT.

Total metal sales during the year was lower due to production curtailment at Smelter Plant because of high input costs, he said.

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US okays Mylan's purchase of Strides unit, with conditions

Sep 27, 2013, 08.33 AM IST

The companies will have to divest 11 generic injectable drugs as a condition of approving the deal, the FTC said.

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US okays Mylan's purchase of Strides unit, with conditions

The companies will have to divest 11 generic injectable drugs as a condition of approving the deal, the FTC said.

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US okays Mylan's purchase of Strides unit, with conditions

The companies will have to divest 11 generic injectable drugs as a condition of approving the deal, the FTC said.

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Generic drugmaker Mylan Inc has won US antitrust approval, with conditions, to buy Agila, a unit of India's Strides Arcolab , the Federal Trade Commission said on Thursday.

The companies will have to divest 11 generic injectable drugs as a condition of approving the deal, the FTC said.

The deal was valued at USD 1.6 billion when it was announced in February.

Action in Strides Arcolab

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Adani's project up for environmental nod in Australia

Australia's new government has ordered 47 major coal and coal seam gas projects to seek national environmental approval, including the controversial Kevin's Corner project proposed by the country's richest person Gina Rinehart.

Environment Minister Greg Hunt said they needed to be assessed for their impact on water supplies, adding the move showed the new conservative government was providing certainty for the mining industry and protecting environmental standards.

The projects include those led by global mining firms such as Anglo American Adani Enterprises Ltd Why clearance of LARR Bill is important?

"The assessment of each of these projects will include the project's potential impacts on water resources in addition to the other matters protected under national environment law for which they were already being assessed," Hunt said in a statement.

"Once the assessment process is complete I will carefully consider each assessment, the advice of my department, and all public comments received before deciding whether these proposals can go ahead."

A decision on the process had been delayed by September 7 elections and because related environmental laws only passed parliament in late June.

Australia's coal miners are hoping the new government will cut red tape which they complain is holding up major projects at a time when a mining investment boom is cooling.

Developments referred for assessment include the A$4.5 billion Carmichael Coal and Rail Project, proposed by billionaire Gautam Adani and Rinehart's Hancock Prospecting Ltd's Kevin's Corner Project.

The Kevin's Corner Project has faced a public campaign led by an anti-coal alliance which says the mine would deplete groundwater crucial to farms.

Farmers and landholders in Queensland and New South Wales states have mounted strong campaigns against coal seam gas developments, which they fear will damage water tables in prime farming areas.

The Minerals Council of Australia, an industry-backed body, said Hunt's decision removed a "blockage" on the projects, but added further unnecessary regulatory delays.

"It is an unnecessary, duplicative piece of legislation introduced by the last parliament for political rather than environmental purposes," Minerals Council chief executive Mitch Hooke said.

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Arundhati Bhattacharya front runner for post of SBI chief

Sep 25, 2013, 09.56 PM IST

However, the final decision will be taken by the Appointments Committee of the Cabinet (ACC) headed by Prime Minister Manmohan Singh. Bhattacharya is currently managing director of SBI.

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Arundhati Bhattacharya front runner for post of SBI chief

However, the final decision will be taken by the Appointments Committee of the Cabinet (ACC) headed by Prime Minister Manmohan Singh. Bhattacharya is currently managing director of SBI.

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Arundhati Bhattacharya front runner for post of SBI chief

However, the final decision will be taken by the Appointments Committee of the Cabinet (ACC) headed by Prime Minister Manmohan Singh. Bhattacharya is currently managing director of SBI.

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Arundhati Bhattacharya is believed to be the front-runner for the post of chairperson of country's largest lender State Bank of India (SBI), sources
said.

Last week, a government appointed search panel had shortlisted names of two managing directors- Bhattacharya and S Viswanathan- for the top job at the SBI.

Also read: SBI says Q2 corporate lending soars 18%; tops Rs 2 trillion

However, the final decision will be taken by the Appointments Committee of the Cabinet (ACC) headed by Prime Minister Manmohan Singh. Bhattacharya is currently managing director of SBI.

Current Chairman Pratip Chaudhuri is set to retire at the end of this month.

As per the norms, a candidate for the post of Chairman is eligible for the interview if he/she has at least two years of service left before retirement.

Bhattacharya has also served as MD and Chief Executive of SBI Caps, the merchant banking subsidiary of SBI.

Action in State Bank of India

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SKS Microfinance independent director Ranjana Kumar resigns

Ranjana Kumar, an independent director of SKS Microfinance Ltd submitted her resignation, a top official said today. P H Ravi Kumar, non-executive chairman (interim) of the country's only listed micro lender, said.

Also Read: Will fight to get board seat for Akula: SKS Trust

"Yes. She has submitted her papers. She did not cite any reasons for her resignation." Ranjana Kumar was appointed as an independent director of the company with effect from March 8.

Previously, Kumar has worked as chairperson of National Bank for Agriculture and Rural Development (Nabard). The development comes in the backdrop of SKS Trusts trying to nominate former chairman Vikram Akula to SKS Microfinance Board.

SKS Microfinance in a statement earlier had said according to its Articles of Association, no shareholder has any right to nominate a director. All requests for appointment as director are required to be made in accordance with the Companies Act and the Articles of Association of the Company and will be processed in accordance with law, it had said.

Kumar, who started her career with Bank of India as a probationary officer in 1966, has served as chairperson and managing director of Indian Bank and executive director of Canara Bank.

She has also served as a director of Andhra Pradesh Paper Mills, as an independent director of Tata Global Beverages Limited and Coromandel International. "She also held the constitutional post of Vigilance Commissioner in Central Vigilance Commission," SKS had earlier said in a filing to the BSE.

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Brewers tap India thirst for potent beer

With up to 8 percent alcohol, Carlsberg's Tuborg Booster Strong packs a heavier punch than the Danish original and is sold only in India, where consumers in the world's third-fastest growing beer market prefer an extra kick.

Billed as the world's first fruit-flavoured strong beer in its May launch, Tuborg Booster Strong is one of several potent brews that Carlsberg and rivals SABMiller , Anheuser-Busch Inbev United Breweries , is India's best-selling beer.

Such beers are meant to appeal to customers like 34-year-old courier Raghunandan, who was sipping rum at a dingy Mumbai bar.

"Beer just doesn't do it for me," he said, asking to be identified by one name. "It's expensive, plus I don't feel like I had anything to drink."

MARKET POTENTIAL

Two-thirds of Indians don't drink alcohol at all, often for religious or cultural reasons, but rapid urbanisation, a young population and a fast-growing middle class are changing alcohol consumption habits, making India an attractive market for drinks companies.

Besides competing with whisky, strong beer is also trying to attract customers who normally drink so-called country liquor, a cheap tipple prevalent in villages.

Beer accounts for just 5 percent of alcohol consumed by volume in India, according to SABMiller. Per capita beer consumption averages 1.7 litres a year compared with 74 litres in the United States, according to United Breweries.

Overall alcoholic beverage sales in India are forecast by Euromonitor to rise up to 8 percent a year by volume through 2017.

This potential is especially attractive to global brewers looking to offset sluggish growth in their traditional strongholds of North America and Europe.

Carlsberg expects India to become one of the world's top 10 beer markets in the next five to seven years. And SABMiller saw double-digit volume growth in its strong beer portfolio last year, India marketing director Darioush Afzali said.

Beer appears to be gaining a cool cachet among India's more urbanised youth, boding well for brewers' plans.

On a recent night at a bar in the Bandra neighbourhood of Mumbai, beer, both regular and strong, was the drink of choice for a group of young men on a night out. None drank spirits.

"Whisky is what older men drink. We love our beer and the stronger it is the better," said Anuj Chand, a 23-year-old aspiring interior designer.

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Tata Motors unit to stop production at Spanish plant

Sep 25, 2013, 09.00 AM IST

The move to stop production at its Zaragoza factory in northern Spain, would impact all 287 employees.

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Tata Motors unit to stop production at Spanish plant

The move to stop production at its Zaragoza factory in northern Spain, would impact all 287 employees.

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Tata Motors unit to stop production at Spanish plant

The move to stop production at its Zaragoza factory in northern Spain, would impact all 287 employees.

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A unit of Tata Motors  said it will stop making vehicles at a Spanish plant from next month because of mounting losses and no signs of a turnaround in muted demand in the near future.

Tata Hispano Motors Carrocera said the move to stop production at its Zaragoza factory in northern Spain, would impact all 287 employees, adding it had accumulated operating losses of 60 million euros in the past five years.

Also Read: Quadricycle norms: No rollback but technical changes likely

"The decision to cease the activity...has been compelled due to economic and business factors, as despite strong investments, there has not been a positive result to reverse the challenging business situation and losses for the plant," the company said in a statement.

Tata Hispano Motors Carrocera also said it was pursuing an offer from Spain's Benseny Group to explore the possibility of continuing operations at the factory. It did not say what the offer was for, but said it was not a purchase offer.

HEALTHCARE: Future of Healthcare

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Centre files affidavit on coal blocks identification

The Centre today filed its affidavit in the Supreme Court stating various developments taking place since 1992 on coal block identification and allocation to private companies.

In its 24-page affidavit, backed by voluminous records, the Centre contended the Coal India Ltd is the lessee of state governments in respect of the coal mines which were vested Coal Mines Authority after nationalisation of the natural resources in 1973.

It said basic identification exercise of coal blocks is done by the Central Mine Planning and Design Institute Limited (CMPDIL) but the allocation of blocks for captive mining is done by CIL."In the circumstances, it is clear that basic identification exercise was conducted by CMPDIL but a final decision allowing such blocks to be given for captive mining had to be that of CIL since basically the interest of CIL had to be taken into consideration," the affidavit said.

Also read: Coal linkage panel allows Lanco Babandh to ink FSA with CIL

The Centre said 172 blocks came to be identified for captive mining in 1997 which were not proposed to be taken up by CIL. It said total geological reserve available for Coal India is estimated around 123 billion tonnes.

The affidavit was filed to answer the apex court which had on the last hearing questioned the Centre on how coal blocks belonging to CIL were allocated to private companies. The affidavit also said the government had failed to produce certain documents on the progress of government policy on the coal block allocation to private companies which started in 1993.

"If these coal blocks identified by CIL and Central Mine Planning and Design Institute Limited (CMPDIL) are part of the lease hold area of CIL, then how can further right be created in favour of other companies," the apex court had said on the last hearing.

The bench had said the issue is "most vital" for the case and it cannot proceed in the matter without government's clarification on it. It had also asked the AG to supply all booklets of CMPDIL for identifying coal blocks and how applications from the companies were received by the Centre.

The apex court was hearing final arguments on PILs seeking cancellation of coal blocks allocation.

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SBI well capitalised; rating cut won't impact local biz: MD

Despite being downgraded by global ratings agency Moody's, Arundathi Bhattacharya, managing director, State Bank of India , doesn't expect any impact on the domestic front. Though external fund raising costs may rise, she says. However, the bank is not planning any such fund raising at the moment, she adds. According to her, the concerns on capital are overdone.

Also Read: Moody's cuts State Bank of India's debt rating to 'Baa3'

On Moody's raising a question mark on the bank's asset quality, Bhattacharya says if the economy turns around then asset quality could improve almost three months from the turnaround, if not then it may well go into FY15.

Below is the verbatim transcript of Arundathi Bhattacharya's interview on CNBC-TV18

Q: What does it mean to SBI's borrowing cost?

A: At this point of time we expect no impact on the domestic front. On the external front should we go for a medium term note (MTN) raising then we have to take a call as to how the prices work out at that point of time. But we really do not expect any issues at all on the domestic front.

Q: But on the external front if you were to go for that MTN that you spoke about, how much might in basis points the cost go up, does it go up 10-20 bps?

A: Actually it will depend upon the time when we go. It is very difficult to predict this at this point of time and at this point of time we are not even considering any such raising therefore it is very difficult for me to quantify it in basis points.

Q: Both Moody's and Fitch have actually come out with quite disconcerting views on the asset quality for banks such as yours pointing out that it is not in FY14 but in FY15 when we will actually see some relief on the asset quality front. Do you think it could take that long?

A: It all depends, if the economy turns around then we could see much better asset quality almost three months from when we see the turn. If it doesn't happen very soon then well yes it could go to FY15. They are projecting FY15 is because of the election in between and they believe during that period the economy would move sideways rather than move up. And that is what they are basing their estimation on. But if that were not to happen and if we see a turnaround then definitely asset quality will begin to improve.

Q: What has actually been downgraded is your local currency deposit ratings and yet you say that your MTNs will become expensive.

A: If you read the whole press release it also talks about the foreign currency unsecured.

Q: I just wanted to know when you might get capital because the other point they raise is SBI is likely to seek another capital injection from the Indian governor at the end of the fisc, will getting that capital shore up the rating, is capital a problem?

A: Capital is not a problem and we have pointed this out very strongly to the rating agency because if you look at the amount of capital that we have, we are very well capitalized. We are above what has been recommended by basel III, well above it in fact and we are also above whatever has been mandated by our board.

So capital is not an issue for us but somehow the rating agencies believe that because there is a large government holding therefore we have certain dependence on the government for bringing in capital. As I said, we are more than capable of raising capital on our own as well and of course the government has been very supportive and has never yet failed in putting in capital whenever they have been able to and whenever we have required to request for it.

Therefore, this concern on capital is overdone and I don't believe that this is something that we should be so concerned.

Q: Will the second quarter, the current quarter be as bad as the first quarter where you saw almost 20 percent jump in your non-performing loans (NPLs)?

A: At this point, I cannot give you the numbers and we are very close to the quarter end. So I would not like to give you numbers. All that I would like to say is that we are making maximum efforts to see that the kind of slippages that happen are reduced this time and there is a lot of work going on. Last time it was compounded by the retail side of it, retail agriculture and small SMEs. So we have been working very hard in those areas to see that we do better and we will hope going forward that it will be a better number.

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Sonia lays foundation stone of refinery in Rajasthan

UPA Chairperson and Congress President Sonia Gandhi today laid the foundation stone of Rs 37,230-crore refinery and petrochemical complex here.

Gandhi, who flew in chopper to the thar desert of Rajasthan, unveiled two placques of foundation stone with a push button in presence of Union Minister for Petroleum and Natural Gas M Veerappa Moily and Rajasthan Chief Minister Ashok Gehlot here, 90 km from Jodhpur.

Also read: Govt to give insurance to refiners processing Iranian crude

Hindustan Petroleum Corp ( HPCL ) and the Rajasthan government are jointly setting up a 9 million tonnes per annum grass root petrochemical complex.

HPCL would have 74 per cent stake in the JV while the rest 26 per cent with Rajasthan government.

The refinery complex will source crude oil from Rajasthan oil fields and other imports.

The project is expected to bring accelerated growth in the region and provide huge opportunity for downstream petrochemical industries. About 1.39 lakh people will be benefited from the project.

Out of the project cost of Rs 37,230 crore, the Rajasthan government will contribute funds to the tune of Rs 3,872 crore and production will start by 2017.

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India has huge human capital potential: TCS Chief

It would be wise to be bullish on the Indian economy as the country has huge potential in its human capital, Chief Executive Officer of Tata Consultancy Services N Chandrasekaran has said.

"Our fundamental strength for the next decades is the talent that we have. Huge working population will make critical contributions in various sectors," Chandrasekaran said at the 4th National Finance Conclave held at KIIT University's School of Management here yesterday.

While India's short term concern is devaluation of rupee, slowing economic growth is a key concern for the long term, said Chandrasekaran, adding that a transformation can be brought about by technology and investments in critical sectors.

Also read: TCS bags multi-million euro deal from Scandinavian Airlines

Highlighting the positive side, he said domestic industries have grown phenomenally in the last 20 years and contributed significantly in terms of the country's exports which at present stands at $85 billion, he said.

All emerging markets -- India, China and Brazil -- have shown incredible growth, the TCS Chief said, attributing the present crisis to a global slump in demand.

The conclave had an engaging panel discussion, which featured, among others, H K Pradhan, Senior Professor, XLRI and Paresh Gupta, CFO, Jubilant Biosys, said a release issued by KIIT University.

The panelists focused on three significant problems that the country is dealing with -- external vulnerability, high gold imports widening the CAD and better market sentiments outside causing capital flight.

Ensuring ease of doing business, better management of external factors, improvement of regulatory and policy environment and improving the educational system are some of the measures to bring the economy back to the growth trajectory, it said.

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'See India as South Asia's biggest mkt; eye expansion'

Christopher Fordyce, Regional Commercial Manager (South Asia), British Airways feels that India has the potential to be one of the biggest South Asian markets in the world. In an interview to CNBC-TV18's Shereen Bhan, he said that the company is keen to expand in India to different areas of Delhi, Hyderabad and Chennai, he says.

"We are also getting new A380s and 787s into the fleet, which is a part of a bigger investment program", he added.

Below is the edited transcript of his interview to CNBC-TV18.

Q: It is 84 years for British Airways flying in India this year. What is the outlook looking like? India has been one of your fastest growing markets; second to the United States. Is it looking at exciting? We have seen the growth rates drop quite significantly as far as the broader economy is concerned. From 8 percent we are talking 5.5 percent. Has your outlook changed as well?

A: This is a very exciting place to be and is also a very exciting year as a carrier. We are getting new aircrafts into our fleets. We have got A380s and 787s joining the fleet. They are all part of a big investment program that we have been putting into market since 2011.

This really marks the most visible change in terms of the BA products. We are on different course than some of the other carriers and that is really helping us stay ahead of where the market is going. We are still very excited about India as a place to fly to. We are expanding here.

We are now moving to Delhi, Hyderabad and Chennai. It is a very competitive place to fly to. There are a lot of carriers out there that are also really fighting to be in India and really have a position in the market, because it is going to be one of the biggest South Asian markets in the world.

Q: What is the British Airways' strategic positioning going to be as far as the Indian market is concerned?

A: We enjoy competition. Our investment plan is going to keep us ahead. We really focus on investing in onboard products or services of food, lounges and all of this is part of the customer experience that will help customers being more loyal to us.

Q: Isn't everybody else doing that too?

A: Everyone else is going to be trying to do the same thing. We have started on a path a couple of years ago and a lot of that has been starting to really come through. We have been bringing new cabinets to India in economy and world traveller class and in first class.

We also need to keep investing as cabinets can become outdated. The focus is on delivering what the customers want. We have launched the program a couple of years ago called Know Me and that was all about using customer insight to design a service around an individual customer and every point in terms of check-in, onboard.

Having a lot of information about that customer allows you to deliver a much more personalised service. So they are not just another customer. They are customers that you understand and you can give them what they want and that is what we are using to try and attract more customers in this market and the rest of the places that we fly to.

Q: What is the outlook then in terms of market share? The last available data that I have of is of April for 2011-2012. They put British Airways at the 6th spot with about 2.7 percent of the total market share. Emirates is at 13 percent, Jet at 15 percent. Lufthansa at number 4. So what is the strategy going to be in order for you to aggressively up your market share?

A: Our key markets are to UK and to North America and we operate as a premium carrier. We have more premium seats in terms of percentage of our seats than pretty much carrier.

Q: Which means you enjoy higher margins as well?

A: It means that we have larger premium cabins. So we will have larger numbers of premium passengers, which means the volume becomes less in the total aircraft. But it means that we have to really fight for that premium space. So we have to give more in terms of products and in terms of our onboard service than maybe another carrier.

Q: So you are less vulnerable to a dogfight as far as prices go.

A: We are vulnerable to anything. I would not like to think that we are in a different stratosphere than anybody else. I think we have to compete in that space and it really is about investing, it is really about focusing on the customer and giving them what they want and then allowing them to choose us when it is maybe not just about the price. Everyone quotes India is very price sensitive, it is just the cheapest that everyone wanted.

Q: That is not your experience.

A: We are not always the cheapest, but people are so choosing us. So what we are seeing is it is a very value conscious market. They really expect a lot when they spend the money, maybe more than some other markets do in terms of onboard service. They are very demanding, but if you can give it to them they are very loyal and they are willing to spend.

It is about making sure they do not feel that they are not getting a good deal and that is where you try and move out the space with just being about price, because then there is a commodity and in effect we are investing in product and service.

There is no point doing that which is a commoditise product and that is where we really position ourselves not being a commodity, it is about a product that people choose within a price bracket that they can afford.

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Govt to set up 4,000 MW solar project in Rajasthan

The government today said it has initiated the process of setting up 4,000 MW ultra mega green solar power project near Sambhar lake in Rajasthan.

"The Department of Heavy Industry (DHI) initiated the process of setting up the Sambhar Ultra Mega Green Solar Power Project in the 23,000 acre area of Sambhar Salts Limited (SSL), subsidiary of Hindustan Salts Limited (HSL) located in Rajasthan," an official release said.

The government has finalised setting up of the project in Rajasthan, in the SSL area close to Sambhar Lake, with a total capacity of 4,000 Mega Watt (MW). Therefore, this will be the largest solar based power project in the world, it said.

"The first phase of the project, which will be 1,000 MW is likely to be commissioned in three years i.e. by the end of 2016," the release said.

"The first phase of the project is expected to be implemented through a joint venture (JV) company to be formed with equity from BHEL, Solar Energy Corporation of India, Power Grid Corporation, Satluj Jal Vidyut Nigam and Rajasthan Electronics and Instruments Ltd," it said.

Based on the experience gained during implementation of the first phase of project, the remaining capacity would be implemented through a variety of models, it added.

When the 4,000 MW of project would be fully commissioned, it will generate 6,000 million units of power per annum. The project will supply power to the distribution companies of various states through the National Grid, the release said.

Being the first project of this scale, it is expected to set a trend for large scale solar power development in the world, it added.

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Tata-Singapore JV unlikely to face any hurdle: Ajay Dua

Ajay Dua, former DIPP Secretary believes Tatas are unlikely to face any hurdle in its new joint venture with the Singapore airlines as they fulfill the FEMA requirement of 51 percent by the Indian company and 49 percent by the foreign entity.

According to him, Tata Sons also comply with the Aircraft Act where the airline needs to operate in India as majority of equity (51 percent) would remain with the Tatas and they would have a greater number of directors than Singapore Airlines would on its board including the chairman being an Indian nominated by the Tatas.

Below is the verbatim transcript of Ajay Dua's interview on CNBC-TV18

Q: The last attempt that Tata's along with Singapore Airline made to foray into the Indian aviation market was in 2001. Three aborted attempts altogether to enter the aviation market and they are back again now seeking regulatory approval. Do you believe there is likely to be any challenge here?

A: I don't think so. As long as they are meeting the requirement of foreign exchange management act (FEMA) that means the foreign direct investment (FDI) regulations, their proposals would go through.

Prima facie what has come to light so far is that Tata's would hold 51 percent and the remaining 49 percent would be held by Singapore Airlines which is what the current FEMA dispensation allows, that up to 49 percent can be held by a foreign party in a domestic carrier. So to that extent, they are in conformity with the FEMA regulations.

Also, with respect to the other law which is called the Aircraft Act which also all airlines need to comply with to operate in India. The ownership and control of the domestic airline must vest in domestic hands.

To that extent as well, prima facie it does look that there would be compliance of that law as well because 51 equity would remain with the Tata's and they would have a greater number of directors than Singapore Airlines would on its board including the chairman being an Indian nominated by the Tata's.

Q: Tatas hold 30 percent in another aviation joint venture that is AirAsia India. The fact that there is no explicit guideline in the aviation law which does not allow for multiplicity in partners, do you believe there could be issue on the fact that the Tatas will hold 30 percent in AirAsia India and have another Greenfield airline as well?

A: I do not think there should be any problem on that front either. The law does not prohibit an investor to be present in more than one airline. It only talks of a particular domestic airline, the control and the managerial control should not be vesting in a foreign entity.

If Tatas is a 30 percent partner there with 21 percent another domestic partner that means 51 percent is being held by Indian entities in Trans-Asia as well. That meets the requirement of the law, both FEMA as well as the Aircraft Act. According to two laws, control would remain with Indian entities. It does not say that a foreign investor cannot hold minority equity in more than one airline.

Q: Subramanian Swamy has taken the Air Asia deal to court. He has challenged the fact that FDI regulation does not allow investment into a green field airline, it only allows investment into an existing airline. This will be the second green field airline proposed investment. Do you believe his contention holds any water?

A: The matter is sub-judice. He has raised an issue that it had to be an existing airline which could part with 49 percent of its equity and both these airlines being new the law does not permit it. Prima facie that is not a correct reading of the law.

The law does not make any distinction between a brown field or a green field project. It says in a domestic airline more than 49 percent cannot be held by a foreign airline. The word is foreign airline not a foreign investor. So, one airline investing in another airline to that extent unless there is something which is in the small print both the airlines the requirements of Indian laws is being met.

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Interest conflict likely in Tata airline deals: Ajay Prasad

Cyrus Mistry has given wings to Ratan Tata's long standing dream. The Tata Group will launch an airline in partnership with Singapore Airlines. The deal is staring at a lot of 'regulatory unknowns'. Ajay Prasad, former civil aviation secretary says there may be a case of a conflict of interest as both airlines will operate in the Indian market. However, he also feels that Subramanian Swamy's claims on violation of FDI rules in greenfield investment may not apply here.

Also read:  Tata-Singapore deal positive; regulator issues remain: Pros

Below is the edited transcript of his interview to CNBC-TV18.

Q: Do you see any regulatory challenges for the Tata-Singapore Airlines joint venture given the fact that the Tatas also hold a 30 percent stake in Air Asia India? Could that get in the way of an FIPB nod?

A: As far as the Civil Aviation policy is concerned on foreign direct investment, it permits any airline to come in with 49 percent equity as long as the Indian entities have a majority share. So, that conforms to this.

There is suppose there is a likelihood of a conflict of interest because both airlines will be operating in the Indian market one as a low cost carrier and the other probably as a full service carrier.

When they go the FIPB, some of these questions will have to clarified on how they intend to work out these arrangements. I am sure that they must have had some preliminary dialogue with Air Asia and with Singapore Airlines.

They must be aware of this position and must have worked out some kind of a working arrangement the details of which we do not know as yet.

Q: We also heard from Ajit Singh earlier today saying that the law is silent on multiple joint ventures. He also seemed to allude that Sebi and the Ministry of Corporate Affairs (MCA) will need to look at this deal. What will be the FIPB be looking at and will the Competition Commission of India (CCI) also come into play here?

A: There is no problem strictly as far as the aviation sector policies and the laws are concerned. The problem may arise under the Companies Act and under the Competition Act. There some of these questions will have to be asked and resolved and.

Tata Sons would have worked out some kind of an arrangement with their intended partners in these two ventures and they must be having an explanation for this. We are as yet not in a position to comment as to what exactly those arrangements will be, but they will be explaining this to the concerned authorities in future.

Q: Subramanian Swamy has already dragged the AirAsia deal to court saying that it is a violation of the Foreign Direct Investment (FDI) rules as rules do not allow FDI into a greenfield airline. This will be the second proposal which will perhaps test the FDI regulation in that sense. Do you believe that there is any ground that Subramanian Swamy's argument will actually hold?

A: Even when this first proposal came out, there was this debate that whether the policy relaxation which permitted 49 percent investment, does it pertain only to the existing players or new ventures can also be covered. After a lot of examination and the decision was that even the new ventures can be covered under this.

It was in that context that the clearances for the AirAsia venture came through. Probably a challenge on this is not entirely sustainable, because the policy makes no mention anywhere of Greenfield etc. Even the new ventures and the existing ventures both can take benefit of this 49 percent investment opportunity.

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Finmin bans joyrides, issues strict austerity measures

The Finance Ministry has banned creating of new government jobs in the current fiscal and buying of new government vehicles along side affecting a 10 percent mandatory cut in non-plan expenditure in a move to contain non-developmental expenditure and release additional resources for priority schemes.

The small-bore austerity measures across government departments also include restriction on foreign travel by government officials, curb on government seminars and conferences, ban on holding meetings in 5-star hotels and making economy class travel mandatory for government officials.

Do not fill up posts lying vacant for more than a year, the finmin ordered.

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Jet-Etihad deal may be delayed due to petition in SC

Jet Airways may have to extend the September deadline for completion of its proposed 24 percent stake sale to gulf carrier Etihad with BJP leader Subramanian Swamy challenging the Rs 2,058 crore deal in Supreme Court.

With Swamy filing a petition in the apex court, it would be difficult for Jet Airways to meet the September deadline for the completion of the stake sale deal with Etihad, industry sources said. The deadline earlier was July 31 which was extended to September 30.

Also read: HC seeks centre's reply on Swamy's plea against AirAsia

Swamy, in his petition filed yesterday, has also challenged the air service agreement between India and Abu Dhabi, approved recently by the Cabinet. It allows the airlines of the two sides to operate 50,000 seats a week by 2015, up from 13,300 at present.

In a voluminous petition, Swamy has also sought a CBI probe against the government officials who had cleared the Jet-Etihad deal, which is to be cleared by the Cabinet Committee on Economic Affairs.

Jet officials, including chief executive Gary Toomey did not respond to text messages. Ahead of government clearances, Jet has already started giving imprints of Etihad on its management team.

It has moved its head of network planning and revenue management Anita Goyal, wife of promoter Naresh Goyal, to an advisory role.

Jet has also brought in its group executive officer and in-charge of the Gulf market, Abdulrahman Albusaidy, to the key position of Chief Strategy Officer after its Vice President (Commercial Strategy and Investor Relations) K G Vishwanath put in his papers recently.

In the first ever investment by a foreign airline in an Indian carrier, Jet Airways had on April 24 announced plans to sell 24 percent equity to Etihad Airways for about Rs 2,058 crore, as part of a strategic alliance that would lead to a major expansion in their global network.

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We need to look beyond gloom doom, says Mukesh Ambani

Sounding confident that the economy will overcome the current crisis, Reliance Industries , chairman Mukesh Ambani today said there is a need to look beyond the gloom and doom. "India should look beyond the gloom and doom," Ambani said at the Giants International 41st anniversary celebrations and awards function here tonight.

He was addressing as the chief guest at the function. Stating that India needs a positive and inclusive mindset, Ambani expressed confidence that despite all the negativity India will become a major power.

Also read: RIL slams DGH move to snatch gas discoveries as arbitrary

"I have realised that by focusing on obstacles, you don't reach your goals. Instead focus on your goals to overcome obstacles," he said. After going through a financial turmoil for almost a year, greenshoots have appeared in the economy of late, giving a hope of recovery.

After contracting for two straight months, industrial production entered the positive zone in July, recording a growth of 2.6 per cent on account of improved performance of manufacturing and power sectors.

The IIP data revealed that out of the 22 industry groups in the manufacturing sector, as many as 11 posted positive growth rates in July. Besides, snapping a nine-month streak of decline, domestic passenger car sales also grew by 15.37 per cent to 1,33,486 units in August this year, compared to 1,15,705 units in the same month last year.

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RINL aims to double exports to Rs 1,200 crore in near-term

Rashtriya Ispat Nigam Ltd (RINL) may see its export revenue more than doubling to around Rs 1,200 crore in the near future on the rupee depreciation and an increased thrust on overseas shipments, a top official of the public sector steel firm said today.

"Exports during 2012-13 was around 8 per cent of the total volume of iron and steel. This fiscal, more volume of steel is going to be exported. From the existing level of Rs 500 crore, the revenue from exports may go up to Rs 1,000-Rs 1,200 crore," RINL Director (Commercial) T K Chand said in an email reply to PTI.

Also read: CCI reviews impeding projects cleared in previous meetings

He said with ramping up of production, RINL aims to increase export composition to go up to 15-20 percent of its product volume in next 3-4 years from 8 per cent in the last fiscal. As per the company, it plans to set up steel processing units in Sri Lanka and other neighbouring countries to roll its billets in these regions.

"RINL has already entered into MoUs and is also planning to enter into new MOUs for exports," Chand said. The steel firm, currently under expansion phase, plans to increase its total export volume to 1 million tonne in 2016-17. "With increase in production, exports will accordingly increase touching one million tonnes in 2016-17," Chand said. With the sharp depreciation of rupee in the recent months, all steel manufacturers are increasing their efforts to export more for higher realisation and also to offset the impact of coking coal import.

The PSU said that pig iron export, in which it is a major player, will also go up in the future. "In pig iron exports, RINL is the top exporter of the country and is at present having 59 per cent share of country's exports. With its capacity increasing, the share is likely to go up," Chand said. The Navaratna PSU has a 3 million tonne steel production capacity plant in Visakhapatnam.

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Textile sector to seek priority status from RBI: Chatterji

Owing to a slowdown in conventional export markets, the textile ministry is negotiating a free trade agreement (FTA) with Japan and is focusing on Latin America to boost Indian textile exports. In an exclusive conversation with CNBC-TV18's Malvika jain, textile secretary Zohra Chatterji said that her ministry is seeking priority sector status from the Reserve Bank of India (RBI).

Below is an edited transcript of her interview on CNBC-TV18

Q: What developments are taking place in the export ministry?

A: We are looking for priority sector lending specially for exports and some flexibility in the labour laws, so that the booming export orders could be serviced at this point.

We have made some headway and hope you will have some positive news in the days to come.

Q: The conventional markets for exports that India has been focusing on are seeing a slowdown. Are there any steps that the ministry is taking to promote exports to other markets?

A: We are actively looking at other markets especially Latin America and in view of the FTA we are also looking at the Japanese market.

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India's business confidence at four-year low: Survey

India Inc.'s self confidence has slipped from a year ago to a four-year low, according to a survey released on Monday, as Asia's third largest economy struggles to raise slow growth and businesses try to cope with a weak rupee .

The Indian currency is down about 12 percent this year and had a particularly bad fall in July and August, when the survey by Federation of Indian Chambers of Commerce and Industry, or FICCI, was conducted.

"Business sentiment has been hit adversely and investment prospects don't seem very promising. A sense of apprehension continues to grip members of India Inc.," FICCI said in the study.

In the latest survey, the confidence index declined to 49 from the March-April reading, which was 57.4. The latest number is the lowest in 17 quarters and FICCI said the level of confidence was reminiscent of the 2008/9 global financial crisis.

Rising labour costs and weak demand remained key factors constraining companies' growth. The low availability and high cost of credit emerged as serious concerns affecting performance, respondents reported.

India's central bank has taken a series of measures to stabilise the rupee, including draining liquidity from the banking system, which has restrained credit availability.

India's economy grew at an annual 4.4 percent in the April-June quarter, its slowest rate since the first three months of 2009.

A majority of the companies that participated in the survey said they don't intend to hire any time soon. Respondents expected a "moderately to substantially worse" performance in the economy and industry in the coming months.

"The near term outlook of respondents with regard to sales, profits and investments remained subdued. The outlook with regard to exports and employment was muted as well," FICCI wrote in the report.

The rupee's slide to record lows also adversely affected the input costs of companies, lowering their profitability, the trade group noted. Companies now say they are trapped as they cannot pass on increased costs to customers, according to the survey.

Many respondents said that improving basic infrastructure and expediting stalled projects will help revive flagging industrial growth. Simplifying procedures and policies in starting and running businesses would also boost confidence, they noted, according to the survey, which drew responses from about 200 companies.

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RIL slams DGH move to snatch gas discoveries as arbitrary

Reliance Industries has slammed the DGH's move to snatch 86 percent of its KG-D6 block area, including eight gas discoveries worth USD 10 billion, as "arbitrary" and said the oil regulator was responsible for the delay in developing the finds.

Reliance Executive Director P.M.S. Prasad on August 24 wrote a strongly worded letter to Oil Secretary Vivek Rae, questioning the intent of the Directorate General of Hydrocarbons (DGH) in asking the company to give up 6,601 sq km out of the total 7,645 sq km area in the block on the grounds that the time line to develop the fields had expired.

Of the eight discoveries in the area, the DGH refused to consider investment plans for five, with 0.8 trillion cubic feet of reserves, saying they were not viable at the current price of USD 4.2 per million British thermal units.

Also read: OilMin seeks legal opinion on levying $781mn penalty on RIL

The regulator refused to recognise the other three as discoveries in the absence of prescribed tests to confirm them and then disallowed pleas by Reliance and partner BP Plc for time to do the tests.

"In spite of the PSC providing for sale of gas at market prices, and the approved price of USD 4.2 being only valid until March 31, 2014, DGH insisted on evaluating the proposed development plan (of five discoveries) at a gas price of USD 4.2 and declared them to be unviable," Mr. Prasad said, adding this was done even after the knowledge that the field would start production much later than April 2014.

Mr. Prasad said Reliance-BP had agreed to carry out the DGH-prescribed drill stem test to confirm the three discoveries but the regulator never approved them and was now insisting on relinquishment of the areas.

In the 11-page letter with point-by-point rebuttals to the DGH claims, a copy of which was marked to Oil Minister M. Veerappa Moily, Mr. Prasad asked Mr. Rae to "advise the concerned to rectify the errors and remove the hurdles which are needlessly delaying further progression in these discoveries."

RIL had offered to relinquish 4,233 sq km of "low prospectivity area" in the eastern offshore KG-DWN-98/3 or KG-D6 block in keeping with the contractual requirement to retain only portions needed to produce oil and gas.

The area RIL is seeking to retain contains the 20 oil and gas finds it has made till date.

"Needlessly projecting RIL as a defaulter and forcing the contractor to relinquish discovered resources will not only hurt the investor but considerably reduce the chances of many of these discoveries ever being produced," Mr. Prasad said.

"Contractor (RIL) is of the view that the action is clearly an afterthought, based on arbitrary decision and tantamount to disputing completely valid discoveries made at the contractor's risk," he wrote.

Mr. Prasad said the discoveries were unilaterally declared unviable by the DGH without a discussion by the block oversight panel or taking its views into consideration.

"Under normal course it would be considered bad faith to take a biased unilateral view, which...delayed further progress for development, and then turn around to blame the contractor for expiry of time period," he said.

RIL, he said, had "spent enormous amount of time and money on bringing these discoveries to fruition" and would "suffer immensely if pushed to a situation of forced relinquishment of rightful discoveries."

The area proposed for cessation has at least 1.15 trillion cubic feet of known recoverable gas reserves valued at USD 4.83 billion at current prices.

Of the 20 finds, RIL began crude oil production from MA field in September 2008. It started gas output from MA field and Dhirubhai-1 & 3, the largest of the gas discoveries in the block, in April 2009.

The DGH proposed that RIL should retain only an area of 1,044 sq km, which holds the currently producing D1 and D3 gas and MA oil and gas fields, besides a cluster of four satellite fields (D-2, 6, 19 and 22) and another D-34 discovery.

RIL had in its March 13 proposal wanted to retain 3,412 sq km containing all the oil and gas finds made till date.

Contractually, companies are required to relinquish 25 per cent of the area in an oil and gas block at the end of the first phase of exploration that spans three years.

At the end of second phase, 50 per cent of the area is to be given up. By the third phase, only the area needed for development and production of a discovery is allowed to be retained. The second and third phases are of two years duration each.

RIL was awarded the KG-D6 block in 2000. The three-year first phase ended on June 7, 2003, and the third phase ended on June 7, 2007.

Sources said the DGH in 2006 agreed to RIL's proposal to declare the entire area as a discovery, allowing the company to retain it. The decision was ratified by a committee headed by additional secretary in the ministry and by the Oil Minister thereafter.

However, the decision was questioned by the Comptroller and Auditor General of India, the government auditor, as only 79 per cent of the block area had been covered by 3D seismic survey at the end of the third phase and yet it had been declared a discovery area.

The CAG, in its performance audit in 2011, had asked the ministry to review the determination of the entire KG-D6 contract area as a 'discovery area'

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CBI yet to receive 150 files, awaits complaint from CoalMin

Nearly 150 files and documents are yet to be received from the Coal Ministry as the CBI now awaits a complaint from the ministry to register a case into their mysterious disappearance.

Senior officials attached with the probe said that every effort was made by the CBI to locate documents and files that were seized during raids earlier.

At the end, the CBI has now informed that some files and documents, mainly recommendation letters of Parliament Members and others, totalling to nearly 150 were still missing, the officials said.

Also read: Coal block auctions likely by Dec-Jan: Govt

Now the agency awaits a formal complaint from the coal ministry after which a thorough probe will be initiated in the case, the officials said.

The agency cannot register a case unless a complaint is received from the Ministry which would have to concede first that specific files have indeed gone missing and are not in records.

The Supreme Court while hearing the case on August 29 had directed the CBI to give a list of documents, files and information, sought by it, within five days to the Coal Ministry which, in turn, would furnish them within two weeks.

The agency in its letter dated September 2 to Attorney General G E Vahanvati had given an exhaustive list of over 50 allocations, the files of which have not been received by it.

The apex court had directed the Coal Ministry that if any document remains untraceable, then FIRs have to be lodged by the Coal Ministry with the CBI within a week thereafter.

Holding that the missing documents are "vital" for the probe in the scam, the apex court directed the Coal Ministry to lodge complaint with the CBI if it fails to trace any document sought by the agency.

"You (Centre) cannot do like this. Your explanation that files are being searched is not reasonable. This will not help," a three-judge bench headed by Justice R M Lodha said.

"Four months have passed. Have you filed an FIR for missing files. Is it an attempt to destroy the records. Truth must come out," the bench, also comprising justices Madan B Lokur and Kurian Joseph, had said while taking note that the missing documents pertain to financial aspects of the allocations.

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RBI to offer special two-day funding window to banks on Sat

The Reserve Bank of India will offer banks a special two-day funding window through the marginal standing facility or the emergency funding window, given the current market conditions, it said in a release on Saturday.

Also Read: Rupee still undervalued;see Rajan as inflation hawk: Kamath

Banks had been forced to borrow funds at a higher rate in the inter-bank market earlier in the day due to outflows to corporate advance taxes, payable by Sunday.

The collateralised borrowing and lending obligation or the CBLO rate had shot up to as much as 72 percent, the clearing corporation website showed.

The central bank will open the MSF window between 1130-1200 GMT on Saturday and the funds borrowed will be payable on Monday, the release posted on the central bank's website showed.

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IBM with Jaiprakash Associates to set electronic chip units

Two electronic chip manufacturing units, which entail a combined investment of Rs 51,550 crore and would enjoy government subsidy, are likely to be operational in the country in the next two years.

Two consortia-- one led by Jaiprakash Associates in association with IBM and the other led Hindustan Semiconductor-- have proposed setting up these plants. Communications and IT Minister Kapil Sibal said setting up of electronic chip facilities will also be of nation's strategic purpose as chips have security implications.

Also read: TRAI to take up TV channels pricing issue

"There are strategic sectors like atomic energy sector, space, defence and power. In all of these you need chips. There are security considerations. It will serve our strategic purpose. There are security consideration. The fabs should be operational in about two years from now," Sibal said here.

At present there is no electronic chip manufacturing or semiconductor wafer fabrication plant in India. Over 90 per cent of the domestic electronic requirement is met through imports. Government will also hold 11 per cent stake in each project, while technology providers are required to hold 10 per cent stake holding.

Department of Electronics and Information Technology Secretary J Satyanarayana said: "One plant is proposed by a consortium led by Jaiprakash Associates, along with IBM Microelectronics and the system integrator is Tower Jazz. The outlay of the proposed fab is about Rs 26,300 crore."

This unit is likely to come up in Greater Noida in UP. "The other plant is from Hindustan Semiconductor Manufacturing Corporation (HSMC) along with France-based ST Microelectronics  and Silterra (Malaysia). The outlay of this proposed fab is about Rs 25,250 crore," Satyanarayana said.

The proposed location of this plant is in Gujarat.  Government is yet to work out the details of subsidy the proposed projects will enjoy. Subsidy will depend on detailed project report to be submitted by the two consortia.

Sibal said that the about 60 per cent of incentives approved by Cabinet are already covered under existing policies. In addition to this, the Finance Ministry has agreed to give them status under section 35 AD of I-T Act which means capital investment amount will be set off against profit.

"They will be given interest free loan. This along with recognition under 35 AD will constitute balance 40 per cent of incentives to be provided to them," Sibal said. Also, the loan amount given to the companies will be converted into 11 per cent equity in these projects, Satyanarayana said.

 Sibal said that electronic chip manufacturing is highly capital intensive business and long gestation period. "No body was interested in setting up wafer fab here unless you give them large concessions. It is zero duty in any country. We had to attract investors," he said.

Out of total 16 interest received by government, only the two consortium showed seriousness, the minister said.

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Setback for Vedanta; Mines Min opposes Hind Zinc stake sale

Sep 13, 2013, 09.43 PM IST

CNBC-TV18's Anshu Sharma reports that the mines ministry has once again cited the law ministry's views, that a stake sale is not tenable unless the act is amended.

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Setback for Vedanta; Mines Min opposes Hind Zinc stake sale

CNBC-TV18's Anshu Sharma reports that the mines ministry has once again cited the law ministry's views, that a stake sale is not tenable unless the act is amended.

Like this story, share it with millions of investors on M3

Setback for Vedanta; Mines Min opposes Hind Zinc stake sale

CNBC-TV18's Anshu Sharma reports that the mines ministry has once again cited the law ministry's views, that a stake sale is not tenable unless the act is amended.

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Attorney General Goolam Vahanvati may have paved the way for the sale of the government's residual stake in Hindustan Zinc to Vedanta, but the Mines Ministry has written a fresh letter to the Prime Minister's Office, opposing any further stake sale without amending the Metals Corporation Act of 1976.

CNBC-TV18's Anshu Sharma reports that the ministry has once again cited the law ministry's views - a stake sale is not tenable unless the act is amended.

This comes as a setback to Vedanta, which has already taken shareholder approval for purchasing the balance government stake in HZL and Balco for a sum of Rs 25,000 crore.

Unless this objection is overcome, the government's intent of mopping up revenue through this sale is unlikely to fructify any time soon.

HEALTHCARE: Future of Healthcare

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ONGC, Shell to pre-empt Petrobras oil block stake sale

Royal Dutch Shell and India's ONGC 1.22 % plan to exercise their pre-emption rights to buy a 35 percent stake in a Brazilian oil block that Brazil's Petrobras had planned to sell to China's Sinochem Group, two sources said.

Petrobras is shedding non-core assets to help finance a $237-billion, five-year investment plan. Last month it agreed to sell its stake in block BC-10, known as Parque das Conchas, in Brazil's Campos Basin, for $1.54 billion to Sinochem Group.

Also read: ONGC mulls using RIL infra for gas production

Existing participants in such projects often have a first right of refusal when fellow participants offer stakes for sale.

Oil and Natural Gas Corp ( ONGC ) currently has a 15 percent stake in the block, which would in theory entitle it to an extra 8 percent taken from the 35 per cent stake being sold by Petrobras. Shell is the operator with 50 percent share.

"ONGC will be buying between 10-15 percent share in the block, higher than its entitlement for 8 percent, while Shell will buy between 20-25 percent stake from Petrobras," said one of the sources, who both have knowledge of the development.

The second source said the decision to give a higher share to ONGC had been agreed with Shell.

No immediate comment was available on Friday from ONGC Videsh, the overseas investment arm of ONGC, while Shell declined to comment.

This will be the first case of an Indian explorer exercising pre-emption rights to block the sale of an oilfield stake to a Chinese firm.

A Chinese company this month secured a purchase that ONGC had been eyeing.

Kazakhstan used its pre-emptive rights to prevent the sale of US oil major ConocoPhillips' 8.4 per cent stake in the giant Kashagan oilfield to the Indian company. Kazakhstan then sold the stake to China National Petroleum Corp (CNPC).

The BC-10 block off Brazil lies in ultra-deep water of 2,000 metres and has been producing since 2009, since when output has totalled more than 70 million barrels of oil equivalent, Shell said in July.

A second-phase development is expected to start by the end of this year, with a peak production of 35,000 barrels of oil equivalent per day, according to Shell's website. 

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Aberdeen unseats top India fund HSBC as crisis takes toll

For years, Aberdeen Asset Management laboured in India in the shadow of HSBC's star stock-picker Sanjiv Duggal. The rupee crisis has changed that.

A lower-risk investment approach by Aberdeen has trumped Duggal's riskier strategy, which had paid off handsomely for years, in a dramatic change of fortunes for the two largest India funds geared to foreign investors.

Also Read: Rupee to gradually hit 65/$ by year-end: HSBC

The Aberdeen Global-Indian Equity Fund overtook the HSBC's GIF Indian Equity fund last year in the league of assets under management and the gap between the two has been widening.

At USD 4 billion, the Aberdeen fund is now double the size of the USD 2 billion HSBC fund, data from industry tracker Lipper, a Thomson Reuters company, shows.

HSBC "has lost huge market share," said Dhruva Raj Chatterji, a senior investment consultant at fund research firm Morningstar. Duggal had been overweight on cyclicals and rate sensitive stocks and underweight on defensive plays such as consumer and healthcare shares, he said.

The shift in their fortunes has happened as investors took fright at India's struggle in the past two years with a growing economic crisis, which culminated this year with a 20 percent slump in the rupee to a record low of 68.85 on August 28.

Economic growth has slowed down to less half the pace seen in early 2010 and the current account has ballooned to a record deficit.

What makes Aberdeen's performance all the more remarkable is that it has increased its funds under management while India-focused mutual funds and exchange traded funds overall have seen net outflows, Lipper figures show.

Both are long-only funds, which restricts their ability to cope with falling markets. Their different strategies are reflected in their performances this year.

The Aberdeen fund is down 15.6 percent this year through August, a smaller decline compared to the average 23 percent drop for offshore equity funds focused on India and the 20.2 percent slide in the MSCI India index, a benchmark measured in dollar terms.

Duggal's fund dropped 34.5 percent over the same period, its worst performance compared with its benchmark since the fund launched in 1996, the Lipper data shows.

The fund manager moved to Hong Kong from Singapore in early August to take up a new role at HSBC as head of Asian equities fund management, although he still manages the India fund. HSBC declined several requests for comment.

Still, the HSBC fund has produced stellar returns in bull markets. One of Duggal's picks - HCL Technologies Ltd - has soared 10 times since the fund started investing in 2002, Morningstar data shows.

Duggal steered the fund to huge returns of 867 percent in the five years through 2007, compared with a 664 percent rise in the MSCI India index.

But in the five years through August, it was down 37.28 percent. Aberdeen's fund gained 16.85 percent over the same period, while the MSCI India index dropped 11.36 percent.

"The volatility gives us (a chance) to pay attention and opportunistically buy certain stocks relatively cheap," Adrian Lim, who leads the Indian investment team at Aberdeen State Bank of India , Jindal Steel and Power Ltd and ICICI Bank Ltd , which together account for over 11 percent of the portfolio, have all been losers this year.

"There's this general risk aversion for Indian equities among foreign investors and HSBC has been in the cross hairs because of their aggressive style," said an asset manager at a large domestic mutual fund in Mumbai, who declined to be identified because he was talking about an overseas competitor.

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Aurobindo board approves acquisition of Hyacinths Pharma

Aurobindo Pharma  on Thursday said its board has approved to acquire Andhra Pradesh based Hyacinths Pharma, from its existing shareholders.

"The board has decided to acquire 100 percent of the equity stake in Hyacinths Pharma, a company incorporated to manufacture active pharmaceutical ingredients (APIs) from the existing shareholders," the company said in a filing to BSE.

The company's board which met on Thursday also approved the to acquire 25 percent stake in Silicon Life Sciences from the existing shareholder, ABS Mercantiles Pvt Ltd, it added.     

"Post this acquisition, the equity holding of the company would increase to 100 percent, thereby making Silicon a wholly owned subsidiary of the company," it said.
    
The acquisition will help the company consolidate its operations, Aurobindo Pharma said.
    
The company, however, did not disclose financial details.
    
The Hyderabad-based firm's board also approved the transfer of injectables business to its wholly-owned subsidiary Curepro Parenterals pursuant to a scheme of arrangement, it added.
    
Shares of Aurobindo Pharma on Thursday closed at Rs 182.75 on the BSE, down 2.19 percent from its previous close.

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Jubilant still seeking Dunkin' Donuts' sweet spot in India

Jubilant Foodworks is scouting for a third global brand to launch in India even as the fast food chain operator tries to grow its latest franchise with Dunkin' Brands Group and convince Indians that doughnuts can be sweet too.

CEO Ajay Kaul declined to elaborate on the proposal, but adding another brand would indicate Jubilant had a change of heart within the last two months. The company already operates Domino's Pizza Inc stores in India.

Also read: How QSR industry is coping with economic woes

"We are in discussions with a few known global brands and even if we sign on the dotted line today it will take us a year to launch," Kaul said in an interview at his office in Noida, just outside New Delhi.

"Hopefully by then Dunkin' will be off the ground," he added. "Making Dunkin' succeed here is a priority."

Kaul declined to give specific figures for Dunkin's performance but in a recent note, analysts at Credit Suisse said it was unlikely to break even in the next two to three years.

Jubilant's roll out of Dunkin' Donuts, which it brought to India 18 months ago, has so far been hampered by expensive real estate and fierce competition from established coffee chains such as Whitbread plc's Costa Coffee and local brand Cafe Coffee Day.

Slowing economic growth and a local preference for traditional sweets have not helped, and there is also the inevitable comparison with the breakfast staple mendu vada, a fried, savoury lentil cake which   looks like a doughnut but tastes nothing like a Dunkin' Donut.

PIZZA EXPANSION PLANNED

With commercial real estate prices in India growing at one of the fastest paces in the world, Jubilant knows it will be costly to expand the brand beyond New Delhi, Noida and Gurgaon in the north where it has the most stores.

Kaul said the company plans to open 100 Dunkin' Donut stores across the country over the next five years from 16 currently. In a bid to entice customers to grab a light meal as well as dessert, Jubilant

tweaked the brand name to Dunkin' Donuts & More and stores offer deli-style sandwiches.

"If you ask me whether we have got the real estate model for Dunkin' right, I would say maybe by only 60 percent," Kaul said. "We are now moving into different kinds of locations until we figure out what is the right size and how we can make it work."

The success of Domino's Pizza has boosted Jubilant's share price 600 percent since its 2010 initial public offering but the weaker economy has pressured the company this year. Domino's saw same-store sales growth fall to 6 percent in the June-quarter from 20 percent in the same year-ago period, Kaul said.

Same-store sales growth is likely to average 11 percent for the rest of the year while high inflation and a weaker rupee are likely to shave a percentage point off margins this year to 16.5 percent, he added.

Jubilant, however, plans to add 125 Domino's stores this year to the 600-store network, banking on next year's general election to fuel a pick up in consumer spending and economic growth over the next two quarters.

"In a downturn, people retract but we are going all-out on expansion because it's tough not to focus on the bigger picture here and that is the Indian consumption story cannot be ignored," he said. "It's irreversible."

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iGate names ex-Infosys Americas head as CEO

IT outsourcing company iGate Corp named Ashok Vemuri as its chief executive, nearly four months after sacking its then CEO Phaneesh Murthy over an undisclosed relationship with a subordinate.

Vemuri was till recently the Americas head and global manufacturing chief of bigger rival Infosys , India's second-largest software services exporter.

Also read: Ashok Vemuri likely to be next iGate CEO

Vemuri, who was widely considered a contender to succeed Infosys' Chief Executive SD Shibulal, will also join iGate's board.

Interim President and CEO Gerhard Watzinger will remain with iGate in an advisory role temporarily to assist in the transition, the company said.

Phaneesh Murthy, one of the industry's best-known executives, was sacked after a company sexual harassment investigation revealed that he had not disclosed a relationship with a subordinate.

IGate shares closed up 2 percent at USD 26.46 on the Nasdaq on Wednesday.

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Tata Steel Odisha unit's 1st phase to start ops in Q4 2014

The work on the first phase of Tata Steel 's Kalinganagar project in Odisha, entailing an investment of the Rs 25,164 crore, is in full swing and operations are likely to commence in the last quarter of 2014.

According to an internal document of Tata Steel Odisha project, "phase I of the Kalinganagar project is to be commissioned by the last quarter of 2014."

As per the company, the plant is the largest ongoing single-location investment with a committed investment of Rs 20,011 crore as of June 2013 for the 3-million tonnes first phase. This is the first integrated greenfield project for the company outside Jamshedpur in its over a century-old history.

"Expenditure incurred till the June quarter in the project stands at Rs 9,941 crore," according to the document.

The 6-million tonne project is divided into two units of 3-mt each and will produce flat steel products for the automobile industry.

The document said the company will invest Rs 25,164 crore in building up the first phase of the project. Tata Steel had reported 26 percent jump in domestic sales at 2.005 million tonne in the first quarter of this fiscal. Similarly, production of saleable steel also increased 23 percent to touch at 2.145 million tonne during the June quarter.

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Unilever CFO stands by India as long-term bet

Unilever will keep investing in emerging markets like India even though growth is slowing, Chief Financial Officer Jean-Marc Huet said, pointing to the group's increased stake in Hindustan Unilever as a long-term bet.

Also Read: How the recent slowdown has taken a toll on FMCG space

"Yes there is a slowdown in emerging markets, but if you're in the consumer business, you should be where people are, and this is where aspiring consumers are," Huet said at the Reuters Global Consumer and Retail Summit on Tuesday.

"We continue to invest."

Unilever, the Anglo-Dutch maker of Hellmann's mayonnaise, Lipton tea and Dove soap, generates about 57 percent of its 51 billion euros of annual sales from developing and emerging markets, a fact that has weighed on its shares as growth has slowed in India and other markets such as Indonesia.

But Huet said there was absolutely no change whatsoever in his view on Unilever's move in July to raise its stake in Hindustan Unilever to 67.3 percent from 52.5 percent.

Even with a record weakening in the Indian rupee last month, the investment is still sound, Huet said of the deal, valued at 191.74 billion rupees, or 2.49 billion euros at the time.

"Financially it's absolutely intact, but the real reason why we're doing it is long term," he said. "That was not a very value-creating exercise, because you buy a stake without taking costs out, synergies which usually support the premium ... so it really is a bet on the long-term."

In India, Huet said the collapse of the rupee had dented business self-confidence.

"I'm not talking about Unilever, but just overall ... you just feel as if India has gotten a hit to its confidence," he said. "Confidence being the driver of everything at the end of the day, that's an area that doesn't feel as good as 12 months ago."

SLOWER EMERGING MARKETS

Like many multinational companies, Unilever has turned to emerging markets to compensate for slower sales in the more mature markets of western Europe and the United States.

It has a greater emerging market exposure than many of its peers, which include Reckitt Benckiser , L'Oreal , Procter & Gamble , Beiersdorf and Colgate-Palmolive .

The emerging market slowdown has weighed on Unilever's shares, which have underperformed many stocks in the home and personal care sector. The stock has fallen nearly 16 percent since May.

But some analysts think the sell-off is overdone. Deutsche Bank this week upgraded Unilever's stock to "Buy" from "Hold," saying the concerns were exaggerated and that earnings growth should begin to mirror a recent improvement in sales growth.

Deutsche said the current valuation, about 16.5 times estimated 2014 earnings, was a good entry point.

By contrast, Procter & Gamble trades at close to 18 times 2014 earnings, according to Reuters data, while Nestle trades at 17 times.

Unilever's total shareholder return has been 10.4 percent over the last decade, according to Deutsche Bank, lagging the 13.1 percent average return of the global home and personal care industry.

Compared with food brands, home and personal care products often have higher growth, higher margins and higher exposure to emerging markets. As a result, Unilever has been shedding some of its North American food businesses and is looking at buying more home and personal care brands.

It sold Skippy peanut butter to Hormel Foods for USD 700 million in January and agreed in August to sell Wish-Bone salad dressings to Pinnacle Foods for USD 580 million. In August 2012, it sold its frozen meals business to ConAgra Foods for USD 267 million.

When asked about speculation about a sale of Ragu pasta sauces, another North American brand, Huet said it was important as a generator of cash.

"Management needs to learn to turn around the business rather than just sell your problems," Huet said. "It's a little more complex than just buy, hold or sell."

From a financial perspective, he said Unilever needed to balance selling brands with buying them. "Were we to make an acquisition, then perhaps you could accelerate one or two disposals," he said. "But it's largely pruning and nothing else."

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OVL-IOC-Petronet consortia in talks for stake in Yamal LNG

A consortium on ONGC Videsh Ltd, Indian Oil Corp (IOC) and Petronet LNG Ltd is in talks to buy about 9-10 percent stake in Russian natural-gas producer OAO Novatek's USD 20 billion Yamal LNG Project.

Also Read: Govt move to force old gas price for KG-D6 gas illegal: RIL

The Indian consortia is sending a team of officials to Russia this month for negotiations for a stake in the project that will aim to make 16.5 million tonnes of liquefied natural gas (LNG) a year and start shipments in 2016, sources with direct knowledge of the development said.

OVL-IOC-Petronet were originally interested in taking up to 15 percent stake in the Yamal project, which also requires construction of an airport and port on the Arctic Ocean. But they will have to settle for a smaller stake after Novatek last week sold a 20 percent stake in the project to China National Petroleum Corp (CNPC).

Total SA of France had in March 2011 bought 12 percent stake in the project for about USD 4 billion. Since then, it has raised the stake to 20 percent. Novatek, which is now left with 60 percent of the venture, is ready to cut its holding to 51 percent if potential partners offer markets for the gas.

Sources said Petronet, which operates two LNG import facilities in Gujarat and Kerala, has been included in the consortium so as to give the seller the comfort of buying the liquid gas.

The Indian consortia is willing to buy 5 million tonnes a year of LNG from the Arctic project. Last week, CNPC pledged to purchase at least 3 million tonnes a year of LNG from Yamal. India's natural gas demand is projected to jump to 378.06 million standard cubic metres per day in 2016-17 from 242.66 mmscmd in 2012-13. Domestic supplies in 2012-13 were about 101.1 mmscmd and 44.6 mmscmd came through imported LNG, still leaving a vast unmet demand.

Domestic supplies of 156.7 mmscmd and planned LNG imports of 143 mmscmd in 2016-17 will be short of the demand, they said. Novatek, Russia's second-largest gas producer, plans to make a final investment decision on Yamal in the third or fourth quarter of this year. The Yamal LNG project is expected to comprise three LNG trains, each with a capacity of 5.5 million tonnes a year. The first train is planned to come online in late 2016, with the second and third due in 2017 and 2018, respectively.

Yamal LNG is based on feedstock resources from the South Tambeyskoye field, which contained proven and probable reserves of 907 billion cubic meters of natural gas as of December 31, 2012.

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