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Left smells a rat in PMs remark on Indo-Iran gas pipeline
New Delhi: The prime minister's remark in the US about the "many risks" associated with the proposed Indo-Iranian gas pipeline is all set to activate the vocal chords of the Left.

Speaking to the prestigious US paper, The Washington Post, Manmohan Singh said, "Only preliminary discussions have taken place (on the pipeline)".

"But I am realistic enough to realise that there are many risks because, considering all the uncertainties of the situation there in Iran, I don't know if any international consortium of bankers would probably underwrite this. But… we desperately need the supply of gas that Iran has."

The Left parties have derived an indication from these remarks that the pipeline could be put on hold. They have now stated that going ahead with the project will be seen as an "acid test" for the Centre's commitment to an "independent policy serving (the) national interest". In the past few months, Washington has dropped enough hints that it is opposed to the pipeline coming up.

"It is unfortunate that the prime minister has made such remarks in Washington when it is well known that the US is opposed to the project," the CPM, CPI, RSP and the Forward Bloc said in a joint statement after a meeting this afternoon.

Singh is scheduled to make a statement in parliament on his US visit and the agreement he has signed with Washington on cooperation on civilian nuclear energy. He may take the opportunity to clarify his remarks on the gas pipeline.
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Manishankar Aiyar: Safety to be ensured for Indo- Iran gas pipeline project
New Delhi: petroleum minister Mani Shankar Aiyar, said on Friday that the negotiations for the Iran-Pakistan-India gas pipeline project are going on as per schedule. The whole exercise is to make the project safe from all risks, he said.

While endorsing prime minister Dr Manmohan Singh's views on the pipeline project, Aiyar said that the concerns raised by India are part of the joint statement, issued at the conclusion of his visit to Islamabad last month.

"The statement said that all countries will lay a world-class safe and secure pipeline. All issues were specially looked at by the working group, which met in New Delhi early this month," Aiyar told presspersons here on Friday, when asked about his views on the prime minister's statement.

Aiyar said that all concerns would be addressed using technological advancement as was done in the Baku-Turkey pipeline, which had to pass through the most difficult areas.

He said all programmes of the working group were on and would take place as per schedule. The next meeting of the working group will be held in Islamabad, where they will discuss the pipeline projects in further detail.

The prime minister during his US visit said that the project was fraught with risks and expressed doubts, if any international consortium of bankers would underwrite the project.

Aiyar said the technical, financial, commercial and legal agreements of the pipeline would have safety and security dimension worked into the project structure.

Earlier today, the petroleum minister ruled out shifting BPCL's proposed 6-million tonne refinery in Bina, Madhya Pradesh. Putting to rest all rumours about transferring the project from Madhya Pradesh to Uttar Pradesh, he said, the refinery in Uttar Pradesh would come up only after the Bina project is implemented.
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Kamal Nath: Leather exports must increase to $7bn by 2010
New Delhi: Union commerce and industry ministry has identified the leather industry as a thrust sector in view of significant export growth prospects and enormous employment potential, particularly in semi-urban and rural areas.

Addressing a meeting with the leather industry organised by the Council for Leather Exports (CLE) here on Friday, Kamal Nath said the effort should be to occupy at least five per cent of world trade in leather within the next five years, as this would generate over one million additional jobs in the country.

Kamal Nath urged the industry to increase exports to $7 billion by 2010 from the present level of $2.3 billion and asked it to boost the output to $14 billion within the next five years.

He said the industry ministry had a special 'integrated leather development programme' under which Rs290 crore had been allocated for modernisation. Besides, Rs71 crore had been provided in the past one year to support industry initiatives for specific infrastructure development and environmental safeguard measures in different leather clusters.

Value-added leather products at present constituted nearly 80 per cent of India's leather exports, with footwear alone (both leather and non-leather) accounting for 36 per cent marking the transition of India from an exporter of raw hides and skins to a reliable source of value-added leather products. However, the minister noted that the global leather trade was valued at $100 billion, of which India's share was a meagre 2.5 per cent.
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Boeing to start talks on sale of F18 Super Hornets with the IAF
New Delhi: American aircraft firm Boeing has said that it was offering the Super Hornet aircraft to the Indian Air Force and Navy for their multi-role combat plane requirements as well as offering co-production.

The F / A-18E / F Super Hornet is in competition with aircraft of three other countries for the IAF's combat fleet, for which the 'request for proposals' (RFP) documents are likely to be issued in the next two months.

Claiming that the Super Hornets, which are now being operated only by the US Navy, provided "the latest in advanced technology available anywhere in the world", Boeing vice president Chris Chadwick said the company was pleased to offer "a premier aircraft that will help guarantee the security of India and its people".

The Super Hornet is the second (Block-2) phase of the Hornet which is flown by eight countries — the US, Kuwait, Australia, Malaysia, Canada, Finland, Switzerland and Spain.

The fighter is fitted with electronic beaming capabilities, ray radars, day-night strike with precision- guided weapons, besides integrated and networked systems providing enhanced interoperability, situational awareness and support which allows direct communication with the troops on ground or ships at sea.

Replying to questions, Chadwick said, "We are just entering into the talks process with the IAF and the industry. Some IAF personnel have flown the aircraft. We think there is a lot of capability for production, India will be the launch customer (if it chooses the warplane)."
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NTPC to go for pit head power plants
Kolkata: NTPC, the country's largest consumer of coal and the largest power producer, has decided to go for integrated projects that involve the setting up of pithead power plants along with development of coal projects linked to the plant.

In the 11th Plan, the company plans to set up two power projects having a capacity of 6,000mw of power tied to coal mines that have a capacity of 30 million tonnes per annum, according to C P Jain, chairman and managing director.

Speaking to newspersons, Jain said that a proposal for allocation of captive mines had already been forwarded through the union ministry of power to the coal ministry for approval. The proposed investment in the mines has been pegged at Rs2,500 crore, while that in the tied-up power projects is Rs25,000 crore.

The power plants would be set up at Talcher in Orissa and Raigarh in Chattisgarh.

Jain said that NTPC consumes 100 million tonnes of coal from Coal India Ltd. While the acquisition and rehabilitation of the mines to be acquired would be done by NTPC, delivery and dispatch of the coal would be done by another agency, which would be selected by way of open tender.

A joint venture with Coal India Ltd in this regard could not be ruled out, he added.

According to him, NTPC has firmed up plans to set up 9,160mw of capacity in the 10th Plan and 17,000mw of capacity in the 11th Plan.

In the 2005-06 fiscal, a total capital budget of Rs8,550 crore has been earmarked. This would be funded to the tune of Rs2,724 crore from internal accruals, Rs4,526 crore from banks and institutional finance and privately placed bonds.

An amount of around Rs1,300 crore would be raised through Euro bonds, which would be floated in the last quarter of 2005-06.
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Kickback scandal: Volkswagen to refund money to Andhra government
Hyderabad: The Andhra Pradesh government is set to get back its two million euros (about Rs11.67 crore), with the German automotive major Volkswagen AG deciding to account for the illegal withdrawals made by its former employee. The carmaker also expressed interest to enter the Indian automobile market.

Thomas Mickeleit of Volkswagen has communicated the company decision to pay up the funds and continue investigations to the state's principal secretary, industries, Lakshmi Parthasarathy, in response to her e-mail.

This development follows concerns expressed by the Andhra Pradesh government over alleged siphoning of funds by Dr Helmut Schuster, former Skoda board member, and the man entrusted with Volkswagen's India plans. The government has already ordered an enquiry by the Central Bureau of Investigation into the matter.

Volkswagen has been hit by bribery charges relating to new projects, including the proposed Indian car plant. It led to the resignation of Dr Schuster, who was heading the India project.

While reiterating its interest in entering the Indian market, Volkswagen has clarified that the group will, however, call to account those responsible for the damage both inside and outside the company. The group is counting on vigorous support from the Indian authorities.

The German company said Volkswagen does not hold and never has held an interest in Vashishta Wahan, originally set up as a project company that was to have been responsible for building a factory in India. This would have followed an investment decision by the board of management, which is still pending.
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Inflation up at 4.14 per cent
New Delhi: The annual wholesale price index-based inflation rose to 4.14 per cent in the week ended July 9, from the previous week's 4.09 per cent. The spurt in the year-on-year inflation is largely due to an increase in food prices, according to data released by the ministry of commerce and industry on Friday. The inflation rate was at 7.44 per cent during the corresponding week of the previous year.

On a disaggregated basis, the primary articles' group index rose by 0.7 per cent to 190.3 points due to costlier food and non-food articles and minerals. The fuel, power, light and lubricants group index stood firm at the previous week's level of 303.9 points. The manufactured products' group index also remained unchanged at the previous week's level of 170.6 points, despite costlier food products, chemicals and machinery.

Among the primary articles' group, the index for food articles' group was up by 0.8 per cent to 192.3 points. The non-food articles' group index increased by 0.5 per cent to 180.7 points. The index for minerals' group was up by 0.4 per cent to 250.1 points.

Among the manufactured products' group, the food products' group index was up by 0.4 per cent to 176.1 points.
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