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Price hike in petroleum products likely
New Delhi: With international crude prices likely to touch US$70 a barrel, the government on Thursday has hinted at a price hike of petro products.

According to government estimates under-recoveries by oil marketing companies (OMCs) like IOC, HPCL and BPCL may go up to Rs40,000 crore this year. Petroleum minister Mani Shankar Aiyar said in the Lok Sabha that ''Government's income has also taken a hit of Rs4,000 crore while OMCs' under-recoveries could reach Rs40,000 crore this year, up from Rs20,000 crore last year. In such a scenario, some burden will have to be borne by consumers.''

He went on to add, ''The relentless increase in international prices has put an unduly large burden on OMCs, threatening to make them sick. The government is continuously monitoring the price situation with a view to taking appropriate remedial measures.''

He, however, sought cooperation from state governments, saying these should adjust sales tax to reduce burden on consumers.

Unfortunately, sales tax, which is a state subject, has not undergone a change in the last 13-14 months, the minister said, but assured the house that government would take a decision on price rise, if warranted, only after consultations with its allies.
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India may tap oil from Baku-Tbilisi-Ceyhan pipeline
New Delhi: Indian oil companies will consider using the Baku-Tiblisi-Ceyhan (BTC) pipeline, but a decision on this would be taken after considering the economics after the pipeline becomes operational by the end of this year, the Lok Sabha was informed.

In a written reply, Aiyar said it was the constant effort of the government to diversify the sources of its crude supplies and India could consider using the Ceyhan terminal of the BTC pipeline in Israel.

However, India has not signed any agreement with Israel in this regard, he said.
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Cabinet clears revival plan for Dabhol project
New Delhi: The cabinet committee on economic affairs (CCEA) on Thursday has cleared the revival plan for the Dabhol power project, and has offered a clutch of tax sops.

The 2,184 mw project, to be implemented by Ratnagiri Gas and Power Pvt Ltd, an SPV floated by GAIL (India), NTPC and the MSEB, would be accorded waiver of capital gains tax and customs duty on LNG imports.

The project would also benefit from a 10-year tax holiday from the date of commissioning, instead of an earlier proposal to give the holiday with retrospective effect from May 31 1999. The CCEA also relaxed the compulsory annual export condition applicable for mega power projects by reducing the obligation from 10% of the total power generated to 5%.

Further, the IDBI-led consortium of lenders will have to bear any additional financial burden on account of escalation of the project cost (estimated at Rs800 crore).

The Dabhol plant has been lying idle for over four years after the MSEB stopped drawing power owing to payment disputes with the then main promoter, Enron. Power from the revived project would be priced at Rs2.30 a unit, with fixed cost at 93 paise, re-gassification cost at 17 paise, and fuel cost at Rs1.20 per unit.
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Cabinet approves National Rural Employment Guarantee bill
New Delhi: The cabinet has approved the National Rural Employment Guarantee Bill, apparently widening its ambit to include all rural families rather than only those living below the poverty line.

The bill, which will initially cover 150 most backward districts in the country, will be tabled in Parliament on Tuesday, information and broadcasting minister S. Jaipal Reddy said. According to the minister every effort will be made to have the bill passed in the current session.

Earlier, Sonia Gandhi put pressure on the government telling a workshop of the Congress's students wing, the National Students Union of India, that employment guarantee "is the biggest challenge before the nation and the biggest work for the government".
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CMIE forecasts industrial growth at 7.65 per cent for 2005-06
Mumbai: The Centre for Monitoring Indian Economy (CMIE) on Thursday revised its forecast for the industrial growth in 2005-06 to 7.65% from its earlier projection of 7.5%.

The manufacturing sector was likely to register 8.2% growth as against previous estimate of 8%, the economic think-tank said on Thursday.

Expecting a near-deficit scenario for the sugar sector towards December-end, CMIE said this situation was likely to keep sugar prices firm.

Cement consumption rose by 11.6% to 330.5 lakh tonne in April-June quarter. The demand for cement generally peaks in the quarter ending March and tends to drop in the April-June period due to onset of monsoon across the country. However, during this monsoon, the industry was witnessing a sharp rise in demand, it said. In fact, cement consumption in the northern, southern and eastern regions during June quarter was the highest recorded in any quarter so far, it added.

CMIE said tea exports fell by 24% during the first five months of 2005. The tea exports for 2005 are projected to decline to 160 million kgs from 190 million kgs.
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EEPC strategy to boost exports to $30bn by 2010
Kolkata: The Engineering Export Promotion Council (EEPC) has chalked out a comprehensive strategy to double engineering exports to nearly $30bn by 2009-10 from the present level of $14.9bn.

This would require a year-on-year growth of 15 per cent.
Addressing newspersons, Rakesh Shah, Chairman, EEPC, said the target has been set on the basis of a strategy paper prepared by AF Ferguson, which was released by the Union Commerce Minister, Kamal Nath, in New Delhi on Wednesday.

He said that exports of Indian engineering products have been growing at a healthy rate of over 20 per cent vis-à-vis the corresponding growth of around 6 per cent over the last decade. Shah, however, said that the share of India's engineering exports in world trade has remained low at $11.4 billion in 2003, compared to world imports of $2.8 trillion.

The study paper has recommended a focused approach in terms of identified thrust products and thrust markets, based on India's competitiveness, market features, trade blocks and associated features, strategic advantages, supply capacities etc.

The Ferguson study, according to the EEPC chief, has particularly highlighted the huge opportunities in the Asean market, where nearly 75 per cent of the trade was accounted for by imports from outside the region, with a negligible market share for Indian engineering products.
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IIT, Kharagpur to open institute in IPR law
New Delhi: With IPR issues gaining increasing focus within the country, the Vinod Gupta Charitable Foundation (VGCF) has announced the setting up of a school of Intellectual Law at IIT Kharagpur.

The foundation will be pumping in US$1mn towards setting up the school.

The Vinod Gupta Charitable Foundation (VGCF) said that Rajiv Gandhi School of Intellectual Law will commence its first academic year from 2006.

VGCF, set up by Vinod Gupta, alumni of Kharagpur, would provide a host of opportunities for corporate professionals and legal students on a gamut of issues ranging from patent laws and procedures, copyrights, information technology law and related IPR entrepreneurship and technology transfer.

Speaking on the occasion, Shishir K Dube, Director, IIT Kharagpur, said: "There is a tremendous demand both in India and abroad for intellectual property lawyers. The institute will provide a host of new opportunities for creating world-class lawyers in the field."
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