Ministry and RBI to jointly tackle inflation
New Delhi: The Finance Minister, P. Chidambaram, has said that the Ministry of Finance and the Reserve Bank of India would take concerted action to control the spiralling inflation that reached 7.51 per cent last week. Chidambaram said that he has had meetings with the Prime Minister, Dr Manmohan Singh, and the RBI Governor, Dr Y.V. Reddy, on measures to control the situation.
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Minimum Support Price for paddy hiked
New Delhi: The Government has announced a hike of Rs.10 per quintal in the minimum support price (MSP) of the current year's paddy crop to be procured during the forthcoming kharif marketing season, beginning October. The MSP for common grade paddy has been raised to Rs.560 per quintal from Rs.550 for the 2003-04 crop, while the same for Grade 'A' paddy has been correspondingly enhanced from Rs.580 to Rs.590.

The Cabinet Committee on Economic Affairs also decided to increase the MSPs of bajra, jowar and ragi by Rs.10 (from Rs.505 to Rs.515), even as that for maize is raised by Rs.20 (from Rs.505 to Rs.525). The maximum increase has, however, been announced for oilseeds and pulses.

The MSP for yellow soyabean has been fixed at Rs.1,000 per quintal (up from Rs.930 for the 2003-04 season), and at Rs.900 (Rs.840) for black soyabean, Rs.1,500 (Rs.1,400) for groundnut-in-shell, Rs.1,500 (Rs.1,485) for sesamum and Rs.1,180 (Rs.1,155) for nigerseed. In the case of pulses, the MSP has been hiked from Rs.1,360 to Rs.1,390 for arhar (tur) and from Rs.1,370 to Rs.1,410 for moong. For cotton (kapas), the MSP has been increased from Rs.1,725 to Rs.1,760 for F-414/H-777 varieties and from Rs.1,925 to Rs.1,960 for the H-4 variety
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CII takes Indian trade to Thailand
New Delhi: In the backdrop of an India-Thailand free trade agreement (FTA) in September, over 70 Indian companies are visiting Thailand under the aegis of the Confederation of Indian Industry (CII) during the next few days to display their products and services. The CII is organising its flagship event, the 'Made in India' show in Thailand from August 11-14.

The show represents a cross-section of corporate India, projecting the capabilities of the country's industrial houses from small, medium and large sectors. The sectors include automobiles, banking software, chemicals, consumer durable, cosmetics and health care, engineering and electrical goods, IT software & solutions, garments, among others.

The show is being organised in association with the Embassy of India in Bangkok and the India-Thai Chamber of Commerce. CII will also renew its memorandum of understanding with FTI (Federation of Thai Industries) and BOT (Board of Trade) on the occasion.

The India-Thailand bilateral trade was growing steadily, having crossed $1.5 billion during last year. However, the volume of trade was relatively small given the existing potential, the CII said. A joint feasibility study has concluded that a FTA would result in significant trade creation. India's exports will increase by 42.71 per cent, while Thai exports to India would rise by 113.71 per cent.
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GSPC strikes oil at Ahmedabad block
Ahmedabad: The Gujarat State Petroleum Corporation Ltd (GSPC) has struck oil at its Ahmedabad exploration block (CB-ONN-2001/1) at Dholka where it has a 50:50 joint venture with Gail (India). The initial oil in place (OIP) estimates has been put at 50 million barrels.

At a conservative estimate of 10 per cent recovery, the oil from this single well alone is expected to be worth 5 million barrels. Thus, the monetisation of oil from this one well has been put at over Rs.1, 000 crore, at the current rate of $45 per barrel. According to State Government sources, the oil has been struck in the sixth well and the flow has steadied at a daily output of 1,000 barrels and is expected to go up to 5,000 barrels at which level the reserves should last for three years.
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GAIL to build 870 km Jagdishpur- Haldia gas pipeline
Kolkata: GAIL (India) Ltd plans to build a Rs.4, 500-crore gas pipeline from Jagdishpur in Uttar Pradesh to Haldia in West Bengal. The 870-km-long pipeline with a capacity to carry 20 million cubic metres natural gas per day will serve as one of the 15 'limbs' of the proposed national gas grid and will be connected with the Hazira-Bijaipur-Jagdishpur (HBJ) and Dahej-Hazira pipelines. The detailed feasibility report on the pipeline is being prepared.

Detailed route surveys are underway and commissioning will start in October this year. The project will be implemented in 2006. Nominated as a preferred buyer of gas produced from the A1 block in Myanmar and having finalised picking up a stake in A3 block along with ONGC Videsh Ltd (OVL), GAIL is also in the process of finalising the plan to bring gas from Myanmar to West Bengal. Several options, including a 500-km deep-sea pipeline in international waters, are being considered.

GAIL is also pursuing exploration and production activities in blocks 26, 24 and 7 having a combined acreage of over 18,000 sq km in the Mahanadi Basin and Bay of Bengal. The blocks were awarded under the New Exploration Licensing Policy (NELP) to consortia of which GAIL is a member. The data acquisition and drilling plans have been finalised and drilling activities in block 26 will start at the end of monsoon this year.
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GAIL-OVL to participate for A3 oil block in Myanmar
New Delhi: The Myanmar Government and Daewoo have agreed to allow participation of an Indian consortium in the exploration of the A3 block, according to an official release. The consortium consists of GAIL (India) Ltd and ONGC Videsh Ltd (OVL). The Myanmar Government originally awarded the A3 block in February 2004 to Daewoo International Corporation, South Korea. This block, adjacent to the gas-bearing block A1, is considered to have a high potential for hydrocarbon finds. Tripartite discussions to finalise the participation of the Indian consortium have been held this month in Yangon.
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