General Affairs
PM Modi Scripting His Own Downfall: Rahul Gandhi
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MATHURA: Firing yet another salvo at Prime Minister Narendra Modi, Rahul Gandhi today claimed that the PM is scripting his own "downfall" as he has "failed" to fulfil promises made to the people.
In a pep-up up talk at Congress Executive meet in the key state of Uttar Pradesh, where Congress is reduced to fourth position, Rahul invoked Steve Jobs' efforts to revive a floundering Apple and said the partymen should work unitedly as a team so that they can fill the void that will be created after "exit" of PM Modi, who was "harming himself the most".
The Congress Vice President said that everybody has "Congress DNA" and ideologically the party still occupies the first position as it is not like RSS "in which everything is decided from the top".
He said that the Prime Minister has not fulfilled his poll promises and is "damaging himself" much more than Congress could have inflicted on him.
"He has promised good days to farmers. Now farmers are committing suicide. Wherever I go in the country, the farmers are abusing Modiji. They are not criticising but abusing. Youths are not getting jobs and despite making repeated promises thrice, OROP has not been given yet.
"Modi is damaging himself much more than we can together do to him. We have to make our place. Modiji is bound to go down but when he goes, we have to fill that space. You may keep on attacking Modi but Modi is attacking himself much more," Rahul said.
The Congress Vice President, who has frequently taunted the PM with his "suit-boot" barbs, had yesterday attacked PM Modi over 'Make in India' initiative, saying it was "Take in India" in reality.
Telling party workers that everybody has "Congress DNA" in their blood, Rahul today said that they need to motivate people to work and fight together, and gave a message of unity to revive the party that has lost much of its base in the key Hindi belt state.
Maintaining that Congress is different from the RSS, Rahul said, "This is not RSS. Had it been RSS, (Mohan) Bhagwat would have come and told you that the sky is black and then all of you would have echoed that the sky is black. Decisions do not percolate from the top in the Congress party."
MATHURA: Firing yet another salvo at Prime Minister Narendra Modi, Rahul Gandhi today claimed that the PM is scripting his own "downfall" as he has "failed" to fulfil promises made to the people.In a pep-up up talk at Congress Executive meet in the key state of Uttar Pradesh, where Congress is reduced to fourth position, Rahul invoked Steve Jobs' efforts to revive a floundering Apple and said the partymen should work unitedly as a team so that they can fill the void that will be created after "exit" of PM Modi, who was "harming himself the most".
The Congress Vice President said that everybody has "Congress DNA" and ideologically the party still occupies the first position as it is not like RSS "in which everything is decided from the top".
"He has promised good days to farmers. Now farmers are committing suicide. Wherever I go in the country, the farmers are abusing Modiji. They are not criticising but abusing. Youths are not getting jobs and despite making repeated promises thrice, OROP has not been given yet.
"Modi is damaging himself much more than we can together do to him. We have to make our place. Modiji is bound to go down but when he goes, we have to fill that space. You may keep on attacking Modi but Modi is attacking himself much more," Rahul said.
The Congress Vice President, who has frequently taunted the PM with his "suit-boot" barbs, had yesterday attacked PM Modi over 'Make in India' initiative, saying it was "Take in India" in reality.
Telling party workers that everybody has "Congress DNA" in their blood, Rahul today said that they need to motivate people to work and fight together, and gave a message of unity to revive the party that has lost much of its base in the key Hindi belt state.
Maintaining that Congress is different from the RSS, Rahul said, "This is not RSS. Had it been RSS, (Mohan) Bhagwat would have come and told you that the sky is black and then all of you would have echoed that the sky is black. Decisions do not percolate from the top in the Congress party."
Top Court Refuses to Entertain PIL on Confidential Documents on Netaji
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NEW DELHI: The Supreme Court today rejected a PIL seeking direction to the Centre to declassify confidential documents on Subhash Chandra Bose.
A bench comprising justices A R Dave and A K Goel, said, "Let the Ministry of Home Affairs and Principal Secretary, PMO, reply to the representation of the petitioner."
At the outset, the bench gave two options to petitioner Snehasis Mukherjee that he should either go to the High Court or wait for the response of the government on the representations on the issue.
Mr Mukherjee has accused various past governments of not disclosing the facts in the case and said that "non-diclosure of such an information amounted to denial of fundamental right."
"Please do not (bring in the issue of) fundamental right everywhere," the bench said.
The petitioner, meanwhile, referred to the recent disclosure of 64 confidential files by the West Bengal government and sought a direction to Centre for dispensation to follow the suit.
NEW DELHI: The Supreme Court today rejected a PIL seeking direction to the Centre to declassify confidential documents on Subhash Chandra Bose.A bench comprising justices A R Dave and A K Goel, said, "Let the Ministry of Home Affairs and Principal Secretary, PMO, reply to the representation of the petitioner."
At the outset, the bench gave two options to petitioner Snehasis Mukherjee that he should either go to the High Court or wait for the response of the government on the representations on the issue.
Mr Mukherjee has accused various past governments of not disclosing the facts in the case and said that "non-diclosure of such an information amounted to denial of fundamental right."
"Please do not (bring in the issue of) fundamental right everywhere," the bench said.
The petitioner, meanwhile, referred to the recent disclosure of 64 confidential files by the West Bengal government and sought a direction to Centre for dispensation to follow the suit.
Government to Ensure Speedier Resolution of Contract Disputes: Arun Jaitley
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HONG KONG: Promising a slew of reform measures to improve ease of doing business in India, Finance Minister Arun Jaitley today said the government has readied a new law to ensure that disputes get settled through arbitration within six months.
Besides, the draft of bankruptcy law is almost complete and would be soon taken to Parliament for approval, Mr Jaitley told a grouping of international investors with collective Asset Under Management of USD 10 trillion, while rolling out a red-carpet for them to invest in infrastructure, manufacturing and other sectors.
Listing various reform measures undertaken by the government, Mr Jaitley said it has also opened up foreign investment in the infrastructure segment of Railways, which has been a "touch me not sector" so far and a large number of investors are now showing interest.
He also expressed confidence that India's ranking would be much better when the World Bank releases its next ranking of countries in terms of ease of doing business. India was ranked very low at 140th position last year.
"Ease of doing business is still a work in process. Significant advancement has been made, a lot will have to be done of course on a continuous basis.
"On bankruptcy law, the drafting is virtually ready and I intend to take it to the Parliament in the near future. There have been long pending disputes, so a system of fast track arbitration, so that a dispute gets settled within six months, a law is ready and it will be introduced in Parliament.
"Resolution of contracts with regard to public contracts, which has held up several unfinished projects, and therefore one of our priority is to finish those projects, that process itself is on. Allocation of public contracts and public procurement, to bring transparency in the system, on this also a law is being planned," he said.
Mr Jaitley said the road map and priorities of the government has been very clear.
"We have opened up almost all significant sectors of the country, including defence manufacturing. We have settled the long standing issue of insurance sector not adequately opening up. We had to amend the law through Parliament and the sector is now seeing a lot of investments trickling in.
"We have liberalised the norms with relation to real estate, so that the impact is felt in smaller towns and smaller projects too. We have opened up infrastructure as far as railways are concerned.
"I think this was a touch me not sector as far as Indian economy is concerned and therefore induction of a lot of international capital in infrastructure areas of the railways is going to be extremely important," he said.
HONG KONG: Promising a slew of reform measures to improve ease of doing business in India, Finance Minister Arun Jaitley today said the government has readied a new law to ensure that disputes get settled through arbitration within six months.Besides, the draft of bankruptcy law is almost complete and would be soon taken to Parliament for approval, Mr Jaitley told a grouping of international investors with collective Asset Under Management of USD 10 trillion, while rolling out a red-carpet for them to invest in infrastructure, manufacturing and other sectors.
Listing various reform measures undertaken by the government, Mr Jaitley said it has also opened up foreign investment in the infrastructure segment of Railways, which has been a "touch me not sector" so far and a large number of investors are now showing interest.
"Ease of doing business is still a work in process. Significant advancement has been made, a lot will have to be done of course on a continuous basis.
"On bankruptcy law, the drafting is virtually ready and I intend to take it to the Parliament in the near future. There have been long pending disputes, so a system of fast track arbitration, so that a dispute gets settled within six months, a law is ready and it will be introduced in Parliament.
"Resolution of contracts with regard to public contracts, which has held up several unfinished projects, and therefore one of our priority is to finish those projects, that process itself is on. Allocation of public contracts and public procurement, to bring transparency in the system, on this also a law is being planned," he said.
Mr Jaitley said the road map and priorities of the government has been very clear.
"We have opened up almost all significant sectors of the country, including defence manufacturing. We have settled the long standing issue of insurance sector not adequately opening up. We had to amend the law through Parliament and the sector is now seeing a lot of investments trickling in.
"We have liberalised the norms with relation to real estate, so that the impact is felt in smaller towns and smaller projects too. We have opened up infrastructure as far as railways are concerned.
"I think this was a touch me not sector as far as Indian economy is concerned and therefore induction of a lot of international capital in infrastructure areas of the railways is going to be extremely important," he said.
Centre Vows Action Against Those Involved in Govind Pansare Murder
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NEW DELHI: The Centre today promised action against those involved in the murder of rationalist and Left leader in Maharashtra Govind Pansare after reports emerged that members of a right wing group allegedly had links with the killing.
"If activists are harassed or killed, it is a serious matter. If there are proofs of involvement of any group, action must be taken," Minister of State for Home Kiren Rijiju told reporters on the sidelines of a function in New Delhi.
He was responding to a question on police interrogating right wing group Sanatan Sanstha member Samir Gaikwad in connection with the murder of Pansare.
Mr Pansare, 82, and his wife, Uma, were shot at by two motorcycle-borne youths on February 16, 2015, near their home in Kolhapur.
Mr Pansare died four days later at thec in Mumbai. His wife survived the attack, but suffered injuries that have crippled her.
NIA had probed the involvement of Sanatan Sanstha members in the Madgaon bomb-blast case in Goa in 2009.
NEW DELHI: The Centre today promised action against those involved in the murder of rationalist and Left leader in Maharashtra Govind Pansare after reports emerged that members of a right wing group allegedly had links with the killing."If activists are harassed or killed, it is a serious matter. If there are proofs of involvement of any group, action must be taken," Minister of State for Home Kiren Rijiju told reporters on the sidelines of a function in New Delhi.
He was responding to a question on police interrogating right wing group Sanatan Sanstha member Samir Gaikwad in connection with the murder of Pansare.
Mr Pansare, 82, and his wife, Uma, were shot at by two motorcycle-borne youths on February 16, 2015, near their home in Kolhapur.
Mr Pansare died four days later at thec in Mumbai. His wife survived the attack, but suffered injuries that have crippled her.
NIA had probed the involvement of Sanatan Sanstha members in the Madgaon bomb-blast case in Goa in 2009.
Verify Employees Service 5 Years Before Retirement: Government To Departments
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NEW DELHI: All central government departments have been asked to verify services of employees working under them mandatorily five years before retirement in order to check delay in processing pension cases.
It has been observed that processing of pension cases of the employees retiring from government service quite often gets delayed on account of issues relating to verification of service from time to time by authorities, the Personnel Ministry said in a directive.
Existing rules provided for issuing of a certificate regarding qualifying service after completion of 18 years of service of an employee and again five years before the date of his or her retirement.
The rules further provide that verification done under it shall be treated as final and shall not be reopened except when necessitated by a subsequent change in the rules and orders governing the conditions under which the service qualifies for pension, the Ministry said.
"It has been noticed that the certificates regarding qualifying service are not invariably issued to the government servant as required under the rules. All ministries, departments etc. are therefore requested to bring these provisions to the notice of Heads of Offices and Pay and Accounts Officers for strict compliance.
"Non-compliance of this statutory requirements may be viewed seriously," it said.
A report has also been sought from all the ministries on the status of service verification of employees already done or pending by October 15, the order said.
There are about 50 lakh central government employees and 56 lakh pensioners.
NEW DELHI: All central government departments have been asked to verify services of employees working under them mandatorily five years before retirement in order to check delay in processing pension cases.It has been observed that processing of pension cases of the employees retiring from government service quite often gets delayed on account of issues relating to verification of service from time to time by authorities, the Personnel Ministry said in a directive.
Existing rules provided for issuing of a certificate regarding qualifying service after completion of 18 years of service of an employee and again five years before the date of his or her retirement.
The rules further provide that verification done under it shall be treated as final and shall not be reopened except when necessitated by a subsequent change in the rules and orders governing the conditions under which the service qualifies for pension, the Ministry said.
"Non-compliance of this statutory requirements may be viewed seriously," it said.
A report has also been sought from all the ministries on the status of service verification of employees already done or pending by October 15, the order said.
There are about 50 lakh central government employees and 56 lakh pensioners.
Business Affairs
Sensex closes flat at 26,192.98 points on weak global cues
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Weak global cues dented investor sentiments at the Indian equity markets, leading to a barometer index closing flat on Monday.
The S&P BSE Sensex, which opened at 26,107.98 points, closed at 26,192.98 points - down 25.93 points or 0.10 per cent from Friday's close at 26,218.91 points.
The Sensex touched a high of 26,233.46 points and a low of 25,972.54 points in the intra-day trade.
The barometer 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) had gained 255 points or 0.98 per cent at 26,218.91 points on Friday.
A flat trajectory was also observed at the wider 50-scrip Nifty of the National Stock Exchange (NSE). It fell marginally by 4.80 points or 0.06 per cent at 7,977.10 points.
Market observers pointed out that weak global cues emanating out of the Asian markets impacted investor sentiments.
"Due to the absence of any fresh domestic triggers, the markets were solely focused on the international trends. The subdued Asian markets and the lower closing of the US markets on Friday impacted investors' sentiments here," Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.
Other market watchers said the global growth concerns couple with a possible US interest rate hike in the later part of 2015 also played negatively on investors sentiments
"The uncertainty related to the US Fed rate hike continues to worry investors coupled with growth concerns," Vaibhav Agrawal, vice president, research, Angel Broking, told IANS.
"We expect the pressure to continue ahead of the F&O (futures and options) expiry this week."
Among the Asian markets, Japan's Nikkei dropped by 1.96 per cent, Hong Kong's Hang Seng fell by 0.75 per cent. However, Shanghai Composite Index closed higher by 1.91 per cent.
Sector-wise, banking, capital goods and automobile managed to stay afloat. However, fast moving consumer goods (FMCG), consumer durables and oil and gas stocks declined.
The S&P BSE banking index augmented by 167.57 points, capital goods index rose by 71.73 points and automobile index increased by 40.95 points.
The S&P BSE FMCG index receded by 61.56 points, consumer durables declined by 33.65 points and oil and gas index was lower by 27.66 points.
Weak global cues dented investor sentiments at the Indian equity markets, leading to a barometer index closing flat on Monday.
The S&P BSE Sensex, which opened at 26,107.98 points, closed at 26,192.98 points - down 25.93 points or 0.10 per cent from Friday's close at 26,218.91 points.
The Sensex touched a high of 26,233.46 points and a low of 25,972.54 points in the intra-day trade.
The barometer 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) had gained 255 points or 0.98 per cent at 26,218.91 points on Friday.
A flat trajectory was also observed at the wider 50-scrip Nifty of the National Stock Exchange (NSE). It fell marginally by 4.80 points or 0.06 per cent at 7,977.10 points.
Market observers pointed out that weak global cues emanating out of the Asian markets impacted investor sentiments.
"Due to the absence of any fresh domestic triggers, the markets were solely focused on the international trends. The subdued Asian markets and the lower closing of the US markets on Friday impacted investors' sentiments here," Anand James, co-head, technical research desk with Geojit BNP Paribas Financial Services, told IANS.
Other market watchers said the global growth concerns couple with a possible US interest rate hike in the later part of 2015 also played negatively on investors sentiments
"The uncertainty related to the US Fed rate hike continues to worry investors coupled with growth concerns," Vaibhav Agrawal, vice president, research, Angel Broking, told IANS.
"We expect the pressure to continue ahead of the F&O (futures and options) expiry this week."
Among the Asian markets, Japan's Nikkei dropped by 1.96 per cent, Hong Kong's Hang Seng fell by 0.75 per cent. However, Shanghai Composite Index closed higher by 1.91 per cent.
Sector-wise, banking, capital goods and automobile managed to stay afloat. However, fast moving consumer goods (FMCG), consumer durables and oil and gas stocks declined.
The S&P BSE banking index augmented by 167.57 points, capital goods index rose by 71.73 points and automobile index increased by 40.95 points.
The S&P BSE FMCG index receded by 61.56 points, consumer durables declined by 33.65 points and oil and gas index was lower by 27.66 points.
Indian economy will grow faster this year than last, says FM Arun Jaitley
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Finance Minister Arun Jaitley said on Monday he hopes the economy will grow faster this year than last, and expects that Asia's third-largest economy will not see a big hit from China's slowdown.
India's economy grew 7.3 per cent last year. The government is aiming for 8-10 per cent annual economic growth, Minister of State for Finance Jayant Sinha had said last week.
Jaitley, who is on a road trip meeting foreign investors in Hong Kong and Singapore, also said his government's "ambitious" privatisation programme had been slowed by global market volatility.
"We would have moved much faster but the markets have been in somewhat of a turmoil," he told reporters after giving a key note address at an investor conference.
India has already delayed share sales in state-run oil firm ONGC, hurting the chances of raising the targeted $11 billion from privatisation efforts this financial year which ends in March 2016. "Do you hit the market when it is unpredictable or stablised?" he said.
While fears of a China-led global slowdown have roiled financial markets in recent weeks, Jaitley said India stands to benefit from cooling growth in China because it has led to weaker oil and commodity prices, and put India on the map as a potential alternative investment destination.
While the slowdown had hurt stock markets globally, the impact on other parts of India's economy has been muted because it was not a significant part of China's supply chain.
Jaitley also said a draft of India's bankruptcy law was almost ready and he hoped to submit it to Parliament in the near future, but did not specify a time frame.
India does not have formal bankruptcy legislation and banks, particularly state-owned lenders heavily exposed to infrastructure such as roads and ports, have struggled to recover much of the bad debt piling up on their balance sheets using available mechanisms.
Non-performing assets accounted for about 4.4 per cent of Indian bank loans as of March, according to rating agency ICRA. However, including loans that have been restructured, problematic loans hit 10.6 per cent, acting as a drag on credit growth and the overall economic recovery.
Asked about why India makes it difficult for firms to access external funds compared with other countries, Jaitley said it is a sectoral issue and capital markets reforms are under way, again without disclosing specific details.
Finance Minister Arun Jaitley said on Monday he hopes the economy will grow faster this year than last, and expects that Asia's third-largest economy will not see a big hit from China's slowdown.
India's economy grew 7.3 per cent last year. The government is aiming for 8-10 per cent annual economic growth, Minister of State for Finance Jayant Sinha had said last week.
Jaitley, who is on a road trip meeting foreign investors in Hong Kong and Singapore, also said his government's "ambitious" privatisation programme had been slowed by global market volatility.
"We would have moved much faster but the markets have been in somewhat of a turmoil," he told reporters after giving a key note address at an investor conference.
India has already delayed share sales in state-run oil firm ONGC, hurting the chances of raising the targeted $11 billion from privatisation efforts this financial year which ends in March 2016. "Do you hit the market when it is unpredictable or stablised?" he said.
While fears of a China-led global slowdown have roiled financial markets in recent weeks, Jaitley said India stands to benefit from cooling growth in China because it has led to weaker oil and commodity prices, and put India on the map as a potential alternative investment destination.
While the slowdown had hurt stock markets globally, the impact on other parts of India's economy has been muted because it was not a significant part of China's supply chain.
Jaitley also said a draft of India's bankruptcy law was almost ready and he hoped to submit it to Parliament in the near future, but did not specify a time frame.
India does not have formal bankruptcy legislation and banks, particularly state-owned lenders heavily exposed to infrastructure such as roads and ports, have struggled to recover much of the bad debt piling up on their balance sheets using available mechanisms.
Non-performing assets accounted for about 4.4 per cent of Indian bank loans as of March, according to rating agency ICRA. However, including loans that have been restructured, problematic loans hit 10.6 per cent, acting as a drag on credit growth and the overall economic recovery.
Asked about why India makes it difficult for firms to access external funds compared with other countries, Jaitley said it is a sectoral issue and capital markets reforms are under way, again without disclosing specific details.
Oil prices rise in Asia as US drilling declines
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Oil prices edged up in early trading in Asia on Monday as US drilling slowed and analysts estimated that $1.5 trillion worth of planned American production investment was uneconomical at prices of $50 per barrel or lower.
Crude oil prices have plunged almost 60 per cent since June 2014, when soaring global production started to clash with slowing demand. This includes losses of more than a quarter since June this year as a sharp slowdown in China has sparked concerns over the health of the world economy.
Analysts said the low prices were beginning to impact production as drillers slow down new projects, especially in cost-sensitive North America where drillers react fast to changing prices.
US energy firms cut oil rigs for a third week in a row last week, a sign that the latest crude market weakness was causing drillers to put on hold production plans, triggering an increase in prices on Monday.
US West Texas Intermediate (WTI) crude futures were trading at $45.04 per barrel at 09:51 am, up 36 cents from their last settlement. Globally traded Brent futures were at $47.84 per barrel, up 37 cents.
"The current rig count is pointing to US production declining sequentially between 2Q15 and 4Q15 by 255,000 barrels per day at the observed path of the US horizontal and vertical rig count across the Permian, Eagle Ford, Bakken and Niobrara shale plays," Goldman Sachs said.
"The implied year-on-year growth by 4Q15 of 1,20,000 barrels per day is lower than the prior week's estimate of 1,25,000 barrels per day," it said.
Analysts said low prices would have a bigger impact in the longer term as producers struggle to cut enough costs.
"While operators are seeking an average cost reduction of 20-30 per cent on projects, supply chain savings through squeezing the service sector will only achieve around 10-15 per cent on average," energy consultancy Wood Mackenzie said.
"$1.5 trillion of uncommitted spend on new conventional projects and North American unconventional oil is uneconomic at $50 a barrel," Woodmac added.
Oil prices edged up in early trading in Asia on Monday as US drilling slowed and analysts estimated that $1.5 trillion worth of planned American production investment was uneconomical at prices of $50 per barrel or lower.
Crude oil prices have plunged almost 60 per cent since June 2014, when soaring global production started to clash with slowing demand. This includes losses of more than a quarter since June this year as a sharp slowdown in China has sparked concerns over the health of the world economy.
Analysts said the low prices were beginning to impact production as drillers slow down new projects, especially in cost-sensitive North America where drillers react fast to changing prices.
US energy firms cut oil rigs for a third week in a row last week, a sign that the latest crude market weakness was causing drillers to put on hold production plans, triggering an increase in prices on Monday.
US West Texas Intermediate (WTI) crude futures were trading at $45.04 per barrel at 09:51 am, up 36 cents from their last settlement. Globally traded Brent futures were at $47.84 per barrel, up 37 cents.
"The current rig count is pointing to US production declining sequentially between 2Q15 and 4Q15 by 255,000 barrels per day at the observed path of the US horizontal and vertical rig count across the Permian, Eagle Ford, Bakken and Niobrara shale plays," Goldman Sachs said.
"The implied year-on-year growth by 4Q15 of 1,20,000 barrels per day is lower than the prior week's estimate of 1,25,000 barrels per day," it said.
Analysts said low prices would have a bigger impact in the longer term as producers struggle to cut enough costs.
"While operators are seeking an average cost reduction of 20-30 per cent on projects, supply chain savings through squeezing the service sector will only achieve around 10-15 per cent on average," energy consultancy Wood Mackenzie said.
"$1.5 trillion of uncommitted spend on new conventional projects and North American unconventional oil is uneconomic at $50 a barrel," Woodmac added.
Five key stocks to watch out for today: Sun Pharma, DLF and more
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Relieved by the status quo in US interest rates, Indian share markets closed higher on Friday, overshooting most Asian peers, as investors saw momentary respite from a potential shift of global funds away from emerging economies.
The benchmark Bombay Stock Exchange (BSE) Sensex closed 254.94 points up at 26,218.91. On similar lines, the National Stock Exchange (NSE) Nifty closed 1.05% higher at 7,981.90.
Below are the key stocks that may remain in focus today:
- Sun Pharma: Sun Pharmaceutical Industries announced that it will sell erstwhile Ranbaxy's two divisions in central nervous system (CNS) segment in India to Strides Arcolab for Rs 165 crore.
- DLF: Realty major DLF will be opening its sixth mall in Delhi-NCR by May next year at an investment of Rs 300 crore. The Emporio mall will be opened at Chanakyapuri, Central Delhi.
- NTPC: State-run National Thermal Power Corporation (NTPC) said its shareholders have approved the proposal to raise Rs 5,000 crore through issuance of bonds or debentures on private placement basis.
- IDFC: Integrated infrastructure finance company IDFC has announced that it has been granted the regulatory approval by the RBI to utilise Rs 2,500 crore non-distributable statutory reserves for creation of specific provisions against stressed assets.
- Tata Steel: Tata Steel has sold 1.33 per cent stake in group firm Tata Motors to institutional investors for Rs 1,250.69 crore.
Relieved by the status quo in US interest rates, Indian share markets closed higher on Friday, overshooting most Asian peers, as investors saw momentary respite from a potential shift of global funds away from emerging economies.
The benchmark Bombay Stock Exchange (BSE) Sensex closed 254.94 points up at 26,218.91. On similar lines, the National Stock Exchange (NSE) Nifty closed 1.05% higher at 7,981.90.
Below are the key stocks that may remain in focus today:
- Sun Pharma: Sun Pharmaceutical Industries announced that it will sell erstwhile Ranbaxy's two divisions in central nervous system (CNS) segment in India to Strides Arcolab for Rs 165 crore.
- DLF: Realty major DLF will be opening its sixth mall in Delhi-NCR by May next year at an investment of Rs 300 crore. The Emporio mall will be opened at Chanakyapuri, Central Delhi.
- NTPC: State-run National Thermal Power Corporation (NTPC) said its shareholders have approved the proposal to raise Rs 5,000 crore through issuance of bonds or debentures on private placement basis.
- IDFC: Integrated infrastructure finance company IDFC has announced that it has been granted the regulatory approval by the RBI to utilise Rs 2,500 crore non-distributable statutory reserves for creation of specific provisions against stressed assets.
- Tata Steel: Tata Steel has sold 1.33 per cent stake in group firm Tata Motors to institutional investors for Rs 1,250.69 crore.
ONGC, Oil India and Cairn India seek cut in cess on crude
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State-owned oil producers ONGC and Oil India as well as private sector Cairn India have asked the government to cut cess on crude oil they have to pay in view of slump in prices.
The producers want the government to levy ad-valorem rate of cess which will result in higher payouts when prices are high and lower payout when rates fall. Currently, ONGC and OIL pay a cess of Rs 4,500 per ton on crude oil they produce from fields given to them on nomination basis. Cairn has to pay the same cess for oil from Rajasthan block.
Their association, PetroFed last week wrote to Revenue Secretary Hasmukh Adhia and Oil Secretary KD Tripathi seeking levy of 8 per cent cess on price of crude oil realised.
The Oil Industry (Development) Act, 1974 provides for collection of cess as a duty of excise on indigenous crude oil. Cess incurred by producers is not recoverable from refineries and thus forms part of cost of production of crude oil. The cess was levied at Rs 60 per tone in July 1974 and subsequently revised from time to time.
"During 2005-06, when the crude oil prices had increased from an average of $40 per barrel to $60 per barrel, OID Cess was increased from Rs 1,800 to Rs 2,500 per ton from March 1, 2006.
"Again, when the crude oil prices increased to over $100 per barrel, the rate of cess was increased by Government to Rs 4,500 per ton ($10 per barrel) with effect from March 17, 2012," PetroFed wrote.
It said the government had effectively linked the cess rate to prevailing crude oil prices in the past.
"The crude oil prices have not been for sometime around $40 to 50 per barrel while the cess continues at the same rate as prevailing when crude oil was around $100 per barrel. In a low crude oil price regime, cess imposes a significant economic burden on producers," it said.
The producers said the current cess rate constitutes about 20 per cent of the oil price, which has severely impacted several small discoveries and marginal fields making many of the projects unviable.
In the low oil price environment several countries including UK, US, Colombia, Russia and China have changed fiscal systems to increase production and promote investments.
"It is, therefore, submitted that there is an urgent need to reduce the rate of cess in parity with prevailing crude oil prices. Keeping in view the volatility in crude prices, it would be prudent that OID Cess may be levied at ad-valorem basis linking it to the realised crude oil prices which would be about 8 per cent of the same," PetroFed said.
This, it said, would provide some predictability to oil producers and would also be in line with the historically followed policy by the government.
Most of crude oil produced in India comes from pre-NELP and nomination blocks and is liable for payment of cess.
While New Exploration Licensing Policy (NELP) blocks like Reliance Industries' KG-D6 area are exempt from payment of cess, pre-NELP discovered blocks like Panna/Mukta and Tapti and Ravva pay a fixed rate of cess of Rs 900 per ton.
State-owned oil producers ONGC and Oil India as well as private sector Cairn India have asked the government to cut cess on crude oil they have to pay in view of slump in prices.
The producers want the government to levy ad-valorem rate of cess which will result in higher payouts when prices are high and lower payout when rates fall. Currently, ONGC and OIL pay a cess of Rs 4,500 per ton on crude oil they produce from fields given to them on nomination basis. Cairn has to pay the same cess for oil from Rajasthan block.
Their association, PetroFed last week wrote to Revenue Secretary Hasmukh Adhia and Oil Secretary KD Tripathi seeking levy of 8 per cent cess on price of crude oil realised.
The Oil Industry (Development) Act, 1974 provides for collection of cess as a duty of excise on indigenous crude oil. Cess incurred by producers is not recoverable from refineries and thus forms part of cost of production of crude oil. The cess was levied at Rs 60 per tone in July 1974 and subsequently revised from time to time.
"During 2005-06, when the crude oil prices had increased from an average of $40 per barrel to $60 per barrel, OID Cess was increased from Rs 1,800 to Rs 2,500 per ton from March 1, 2006.
"Again, when the crude oil prices increased to over $100 per barrel, the rate of cess was increased by Government to Rs 4,500 per ton ($10 per barrel) with effect from March 17, 2012," PetroFed wrote.
It said the government had effectively linked the cess rate to prevailing crude oil prices in the past.
"The crude oil prices have not been for sometime around $40 to 50 per barrel while the cess continues at the same rate as prevailing when crude oil was around $100 per barrel. In a low crude oil price regime, cess imposes a significant economic burden on producers," it said.
The producers said the current cess rate constitutes about 20 per cent of the oil price, which has severely impacted several small discoveries and marginal fields making many of the projects unviable.
In the low oil price environment several countries including UK, US, Colombia, Russia and China have changed fiscal systems to increase production and promote investments.
"It is, therefore, submitted that there is an urgent need to reduce the rate of cess in parity with prevailing crude oil prices. Keeping in view the volatility in crude prices, it would be prudent that OID Cess may be levied at ad-valorem basis linking it to the realised crude oil prices which would be about 8 per cent of the same," PetroFed said.
This, it said, would provide some predictability to oil producers and would also be in line with the historically followed policy by the government.
Most of crude oil produced in India comes from pre-NELP and nomination blocks and is liable for payment of cess.
While New Exploration Licensing Policy (NELP) blocks like Reliance Industries' KG-D6 area are exempt from payment of cess, pre-NELP discovered blocks like Panna/Mukta and Tapti and Ravva pay a fixed rate of cess of Rs 900 per ton.
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