International Herald Tribune issue: RNI officials replaced
New Delhi: After the controversy surrounding the printing and publication of the International Herald Tribune (IHT) in India, the Government today shifted the Registrar of Newspapers in India (RNI), G.D. Beliya and the Deputy Press Registrar, Uday Morey. Beliya is being replaced by Deepak Sandhu, Additional Press Information Officer, Press Information Bureau (PIB), while Beliya will now be Director (Research, Reference and Training) in the PIB. Beliya's transfer comes after the Information and Broadcasting Ministry said that publishing the newspaper was against existing norms.
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BIS report: Challenges to India's growth rate
New Delhi: The Bank for International Settlements (BIS) has said that even as the Indian economy grew by over eight per cent last year, the second fastest rate in Asia after China, there are challenges to maintaining the high growth rate. In its annual report released today, the Basle-based BIS contends that maintaining the current higher rate of growth would require either increasing the extant investment rate (24 per cent of GDP) or significantly raising productivity, given that its potential rate of growth is estimated at about six per cent.

In addition, at over nine per cent of GDP, India's fiscal deficit remains very large and this has contributed to a high real interest rate and the crowding-out of more productive private investment.
Commenting on the high growth performance of the economy in 2003-04, it said the optimism reflects a number of factors. Increased foreign competition has led many firms to restructure, raising profitability. Net profits of large companies grew at an annual rate of 30 per cent in the last two quarters of 2003. It said the authorities have taken steps to accelerate privatisation, cut import tariffs and further open up the economy to foreign investors.
The current account balance has been in surplus since 2001 and net FDI and portfolio investment inflows have more than doubled since 2002, although such inflows remain well below those of China.
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FICCI moots FTA with EU
New Delhi: In order to enhance India's trade relations with the European Union (EU), the Federation of Indian Chambers of Commerce and Industry (FICCI) is in favour of setting up of a joint study group to look into the feasibility of Free Trade Agreement (FTA) between the two sides. This has come in response to the recent statement made by the Head of European Commission (EC) delegation to India, Francisco da Câmara Gomes, in which he said that the EC is not averse to the idea of an FTA between the two.

The Chamber said that despite being a largest trading partner of India, the EU has witnessed a decline in its share of exports over the last decade. India's share in EU's total imports is very small.
On the basis of its preliminary analysis, the FICCI said that India's share is just 4 per cent in the top 20 imports of EU, which incidentally, constitute around 76 per cent of its total imports.
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ONGC to intensify drilling in AP
Hyderabad: The Oil and Natural Gas Corporation (ONGC) has drawn up plans to intensify its exploration work in Andhra Pradesh by planning to move a third major rig here and is set to locate the first intelligent drilling facility and another integrated exploration set up in the country off Krishna-Godavari basin coast. In Andhra Pradesh, ONGC is engaged in the process of exploration for the last 40 years and most of the success thus far has been onshore. ONGC says that it is gradually expanding work to the offshore in the K-G basin, which has huge reserves. It is also actively engaged in the Ravva oil fields with a joint venture partner.
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ICICI Venture Funds gets FDI clearance
New Delhi: ICICI Venture Funds Management Company Ltd's plan to raise funds for its India Advantage Fund from non-resident Indians (NRIs), persons of Indian origins and other overseas investors involving foreign direct investment (FDI) worth Rs 450 crore was among the FDI proposals cleared by the Government on Monday.

The Finance Minister, P. Chidambaram, cleared a total of 37 FDI proposals worth Rs 702 crore. The Minister also approved setting of two wholly-owned subsidiaries by Dubai Ports International for development, investment, management, operation and maintenance of ports and Special Economic Zone projects in India and operation and management of Rajiv Gandhi Container Terminal.
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HPCL and IOC in collaboration agreement
Mumbai/Delhi: Hindustan Petroleum Corporation Ltd (HPCL) will get an equity stake in Indian Oil Corporation's 6-million-tonne Panipat refinery. The deal is part of a collaboration agreement signed by the two companies on Monday, which includes joint participation in exploration and production, refining, petrochemical projects and consultancy services. The two companies will also explore exploration and production opportunities in India and abroad. Both companies have informed the stock exchanges about the agreement.
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Iran offers LNG at $2.22 per BTU
New Delhi: Iran has offered to sell liquefied natural gas (LNG) to India at $2.22 per million British Thermal Units (mmbtu). It has also offered a 20-per cent stake in a discovered oil field in Iran.
According to the Iranian delegation, this is aimed at making good the difference between the higher LNG price and the lower domestic gas price of $1.58 per mmbtu. The Indian public sector undertakings have been seeking a mechanism whereby the Iranian gas can be sold at par with that of ONGC in the domestic market. While the Iranian are keen on selling gas, a commodity in oversupply in their country, the Indian are keen on extracting an oil and gas block from the Islamic nation.

The gas offered by Iran is cheaper than India's first LNG imports from Qatar. RasGas of Qatar is selling Petronet LNG Ltd 5 million tonnes per annum of LNG at a free-on-board (f.o.b) price of $2.53 per mmbtu. The Iranian f.o.b price of $2.2 per mmbtu is still higher than the Indian quote of $1.72 per mmtbu, spelt out by the Indian delegation at the second meeting of the India-Iran Joint Working Group on cooperation in Hydrocarbon sector that began today. Discussions on the LNG pricing are expected to continue tomorrow. On the petrochemical sector side, Iran's National Petrochemical Company (NPC) today offered stake to Indian firms in its upcoming $10 billion petrochemical plant in southern Iran.
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GoM allows 49 per cent FDI for airport upgradation
New Delhi: The empowered Group of Ministers (GoM) on the restructuring of Delhi and Mumbai airports has approved the reduction of FDI from 74 per cent to 49 per cent. According to the proposal, private players can invest as much as 49 per cent in the airports to improve services. While the government will invest upto 26 percent, the remaining 25 percent have been reserved for Indian companies.

The GoM also approved the proposal of the Ministry of Civil Aviation to allow 10 per cent stakes to scheduled Indian carriers in joint ventures for restructuring and modernisation of Delhi and Mumbai airports.
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