India to go ahead with Iran for gas supply pipeline
The ministry of petroleum and natural gas has said that India would go ahead and sign an agreement with Iran for the import of natural gas through a $4.5-billion pipeline transiting through Pakistan. The ministry says that, "India's investment interest will not be affected."

While the US had expressed concerns about the deal with Iran due to Iran's nuclear programme and the possibility of international intervention, there were security concerns also as the pipeline transits through Pakistan.

Official sources said, the agreement would not result in any financial loss for India as the agreement with Tehran is for the delivery of natural gas on the Indian border.

The government is also working out alternate mechanisms in case gas supplies from Iran are disrupted for any reason.
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World Bank to support e-governance plan
The World Bank has given an in-principle nod for $500 million financial support to the national e-governance plan (NEGP).

"The government had initiated a dialogue with the World Bank for support of the e-governance plan. The bank will finance the plan in the first phase with a clear understanding that if there is a need and absorptive capacity, it would be willing to upscale the support.

The bank is expected to approve the amount and other modalities in the next nine to twelve months. The in-principle nod for $500 million is for a four-year period initially and would be extended in form of loan and credit officials said.
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Auto sales growth at 11 per cent in 2004-05
Mumbai: Automobile sales grew at 11 percent in 2004-05.

The total sale of all types of automobiles — including commercial and passenger vehicles, two and three-wheelers — is expected to touch 75.1 lakh units, which is up 11 per cent in 2004-05.

Sales are expected to touch 83.1 lakh units in 2005-06.

The passenger vehicle segment is expected to grow at 16 per cent to 10.4 lakh units in FY06, while commercial vehicle sales are likely to grow by 6-8 per cent to 2.8 lakh units.
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Net to be cheaper on lower bandwidth rates
New Delhi: The Telecom Regulatory Authority of India (Trai) has cut international bandwidth prices by 35-70 per cent which is expected to lower tariffs for international long distance (ILD) calls, internet access and broadband services.

This is expected to benefit IT and IT-enabled services companies and retail customers as operators would be free to offer tariffs that are lower than the ceiling tariff fixed by the regulator.

Nasscom president Kiran Karnik said, "We have been pushing for this for a while. This is a good step for the Indian IT and ITES industry."
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Bio-diesel buses start operating in Gujarat
Ahmedabad: Gujarat has become the first state in the country to have commercial buses run on bio-diesel.

Earlier the state had launched buses that run on Compressed Natural Gas (CNG).

The Faridabad-based Research and Development lab of Indian Oil Corporation has tested jatropha oil and found that it could be safely mixed with diesel.

The bio-diesel to Gujarat State Road Transport Corporation is being supplied by Gujarat Oleo Chem, which has set up a bio-diesel blending and extraction plant in South Gujarat.

The fuel mix will be 5 per cent jatropha oil with diesel supplied by Indian Oil Corporation and supply it to the State Transport Corporation.
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Soybean oil to constitute larger share of import market in 2004-05
Mumbai: Soybean oil imports are growing at the expense of palm oil.

Last year the Indian government lowered the reference price for crude degummed soybean oil from $565 per MT to $485, effectively lowering the duty by $36 a ton and improved the competitiveness of soybean oil against palm oil, says the United States Department of Agriculture (USDA).

This year India raised the import duty on crude palm oil from 65 per cent to 80 per cent and on all refined and further processed palm oils, from 75 per cent to 90 per cent while lowering the reference price for crude palm oil from $454 to $400 leading to an effective tax increase of about $25 per ton on palm oil. This has narrowed the market price by $61 a ton, making soybean oil much more competitive.

India imported 7,59,000 tons of soybean oil in marketing year (MY) 2003-04, and is forecast to import 1.5 million tons (MT) of soybean oil in 2004-05. In contrast, imports of palm oil declined to 3.55 mt in MY 2003-04, compared to 3.95 mt in 2002-03, and will further decline to 3.4 mt in 2004-05.

The US is the largest soybean producer, followed by Brazil, Argentina, China and India.
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