Tsunami: Govt. approves Rs2,731 crore relief package
New Delhi: The Union Cabinet has approved a package of Rs2,731.04 crore for rehabilitation of the tsunami-hit victims in various areas in Andhra Pradesh, Tamil Nadu and Kerala. The amount is to be used for fisheries and housing the people affected by the tidal waves that ravaged the coastline in December last year.

The package is the first phase of measures taken by the Centre and does not include the Andaman & Nicobar Islands for which a separate package will be announced after the Agriculture Minister, Sharad Pawar, visits the islands on Thursday.

Briefing presspersons after the Cabinet meeting chaired by the Prime Minister, Dr Manmohan Singh, the Finance Minister, P. Chidambaram, said that a sum of Rs861.82 crore would be released for immediate relief measure. Another Rs752 crore would be used to construct 1.7 lakh houses for the people who have been displaced.

A special package worth Rs1,093 crore has been set aside for the fishery sector.
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EC takes note of Lalu's flaunting of Godhra report
New Delhi: The Election Commission has taken note of Rashtriya Janata Dal (RJD) chief Lalu Prasad's attack on the BJP using the Banerjee Committee report on the Godhra train fire.

While the EC has already warned that action will be taken against leaders using religion in politics, it is expected to discuss the issue today at its full meeting.

"We have to verify the authenticity of the statement. But the commision will take action if religion is used for political exploitation," Chief Election Commissioner T S Krinshnamurthy said.

Stating that the Commission is yet to go through the interim report of Banerjee panel, the CEC said it would be unfortunate if such things were used for political purposes.

The JD(U) and the BJP have petitioned the Commission to freeze the RJD symbol after Lalu brandished copies of the Banerjee report at an election rally. The Opposition claimed that it was a blatant violation of the model code of conduct.
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Banking reforms: Govt. and Left arrive at understanding
New Delhi: The government appears to have assured the Left parties that it will not insist on privatising the public sector banks. In turn the Left may tone down its opposition to FDI in telecom and backed the centre on the scrapping of Press Note 18.

At a meeting of the Left-UPA coordination committee the Left parties have conveyed to Prime Minister Manmohan Singh their apprehensions over banking sector reforms. They urged the Prime Minister that banks should be protected from predatory takeovers and there should be no loss of jobs. UPA chairperson Sonia Gandhi and Finance Minister P Chidambaram were also present at the meeting.

After the 90-minute meeting, Chidambaram said that the concerns of the Left parties would be taken into consideration while initiating the process.

The Left has also expressed satisfaction over reduction in the inflation from 5.7 per cent on January one this year compared with 6.4 in the corresponding period last year.
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RasGas to pick up equity in Petronet - ONGC in RasGas
New Delhi: Qatar's RasGas may pick up equity in Petronet LNG Ltd in return for ONGC taking a 5 per cent stake in liquefaction plants of RasGas.

According to Suresh Mathur, Chairman and Managing Director, Petronet LNG Ltd, there is a provision with RasGas to have cross exchange of equity in both upstream and downstream projects, where Oil and Natural Gas Corporation is to pick up 5 per cent stake in liquefaction plants. Petronet has indicated that it will consider the participation of RasGas at the expansion stage.

Petronet is in the process of expanding its Dahej terminal in Gujarat from 5 million tonnes to 10 million tonnes. It sources 2.5 million tonnes of its LNG requirements from RasGas and has exercised the option for an additional 2.5 million tonnes from the next fiscal.

ONGC has begun talks with RasGas for picking up a five per cent stake in its LNG facility at Ras Laffan.

Petronet is setting up a second LNG terminal at Kochi in Kerala at an estimated cost of Rs2,000 crore. It is expected to borrow funds from the market either through an external commercial borrowing (ECB) issue or foreign currency convertible bonds (FCCB) to part-fund the project.

The project would be funded through a mix of equity and debt in the ratio of 30:70. The entire equity component would be funded through internal accruals. The Kochi terminal is slated for completion by December 2008.
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NTPC, PGCIL and PTC to establish power exchange
New Delhi: National Thermal Power Corporation, Power Grid Corporation of India Ltd (PGCIL) and Power Trading Corporation (PTC) have decided to work together for establishing a power exchange.

NTPC has appointed Nord Pool and Crisil as consultants to look into various aspects of the issue. The details would be worked out only after the consultants submit their report.

A power exchange will function on the lines of commodity exchanges like NCDEX or MCX and will provide a common platform to buyers, sellers and traders of electricity.
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EOUs: Fast track clearance scheme in three weeks
Mumbai: The Union Minister for Commerce and Industry, Kamal Nath, on Wednesday has assured export-oriented units (EOUs) that the Fast Track Clearance scheme, which seeks to expedite Customs clearances to qualified EOU units, would be in operation within the next two to three weeks. He gave this assurance at an interactive session with exporters organised by the Export Promotion Council for EOUs and SEZ units.

In response to another suggestion from EOUs, Mr Kamal Nath said he would take a look into their plea for removal of the Sunset Clause of 2010 for income-tax exemption to new EOUs. As per this clause, EOUs will get the 10-year exemption only up to 2009-10, irrespective of when the unit is set up. EOUs have been demanding that they be granted this benefit without any time limit as is being granted to SEZ units.
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