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DPE rejects Congress nominees for oil PSUs
New Delhi: In an unprecedented decision the Department of Public Enterprises (DPE) on Friday rejected the Petroleum ministry's proposal to foist Congress functionaries as independent directors on boards of all oil navratnas and miniratnas. DPE's action comes on the back of an expose by the Indian Express newspaper.

The Petroleum ministry had restricted professionals and bureaucrats to barely one for each PSU and had packed the remaining seats with politicians. As many as 20 Congress leaders from ex-MLAs to state unit chiefs were being foisted onto these boards by throwing out most of the professors and technocrats suggested by the DPE on June 9. The candidates did not meet the norms set out in a March 2004 order.

These guidelines do not permit "public men'' to be appointed as independent directors. They only allow bureaucrats, technocrats, senior professors and corporate heads with several years of experience and proven ability as independent directors on the board of a navratna or a miniratna to ensure that the PSUs are ``globally competitive and have a level playing field with the corporates.''
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Kanwal Sibal: Visa problems dogging trade relationship with Russia
New Delhi: Getting visas is the biggest deterrent to Indian companies eyeing business opportunities in Russia, particularly those in information technology.

"The outlook for our trade and economic relationships is bright and the political recognition to improve the relationship also exists. Even then, our businessmen face a major problem in obtaining Russian visas. This is discouraging many IT companies from seriously looking at opportunities in Russia," said Kanwal Sibal, Indian ambassador to Moscow.

Sibal was speaking at the inaugural session of the "India-Russia Business Partnership 2005, Redefining Horizons", organised by the Confederation of Indian Industry (CII).

"Our efforts to reach a business visa facilitation agreement with Russia are stalled for the time being, though drafts between the two countries have been exchanged, and India is willing to sign an agreement on re-admission," Sibal said.

The bilateral trade between India and Russia stood at US$3.15bn, but there had been a sharp reduction in the exports of tea, tobacco, leather, beef and diamonds, he said. "Despite the political sensitivities in India connected with the falling tobacco exports, we have not been able to find a solution," he added.

Saying India was keen to invest in energy in Russia, Sibal said: "The big story in India-Russia relationship can be of energy. India has already invested a couple of million dollars in Sakhalin-I. Energy cooperation has been discussed between the top leaderships of the two countries and political signals seem favourable."

ONGC, OVL and GAIL have signed strategic cooperation agreements with Gazprom and Rosnet in Russia, he added.
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Gold rises Rs.100 to Rs.6,555 per 10 gram
Mumbai: Gold prices shot up by Rs100 to Rs6,555 per 10 gram in tune with the global markets. Spot gold in London soared to its highest level since June 1988 at US$458.55 an ounce, as uncertainty about the US economy, inflation concerns and robust physical demand sparked a buying sentiment.

On the Multi Commodity Exchange (MCX), the October contract of gold closed higher at Rs6,557.00, up from Rs6,504.00 yesterday, with a volume and open interest of 6370 kg and 10488 kg, respectively.

A surge in the euro in comparison with the dollar has also helped in boosting gold-buying in gold-consuming countries. Besides, gold prices have also moved up with the rise in the international crude oil prices.

Currently, gold prices stand at around US$449 per ounce in international markets. Once the prices crossed the benchmark price of US$452, it is expected that they might touch the US$500-per-ounce barrier.
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Energy, food prices push up inflation
New Delhi: The annual wholesale price index-based inflation rose 3.16 per cent during the week ended September 3, up from a week-earlier annual rise of 3.01 per cent. The spurt in the year-on-year inflation was largely due to a rise in energy and food prices, according to data released here today by the Ministry of Commerce and Industry.

During the latest reported week, the point-to-point Wholesale Price Index (WPI)-based inflation rose to 195.7 points, from 189.7 points a year ago. The inflation rate was at 8.15 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 194.7 points during the latest reported week. The index was 194.5 points during the corresponding week a year ago. The Fuel, Power, Light and Lubricants group index went up 1.4 per cent to 308.3 points due to surge in prices of naphtha (19 per cent), furnace oil (12 per cent) and aviation turbine fuel (seven per cent). The index was 282 points a year ago. The Manufactured Products group index was down 0.1 per cent to 170.9 points due to fall in prices of food, chemicals, metals and machinery. The index was at 167.5 points a year ago.

Among the Primary Articles' group, the index for Food Articles' group went up 0.8 per cent to 197.6 points due to a rise in prices of fruits and vegetables (six per cent), eggs and condiments and spices (one per cent each).

The Government revised upward the inflation figure for the week ended July 9 to 4.46 per cent, from the provisional 4.14 per cent. The WPI stood corrected at 194.5 points as against the earlier estimate of 193.9 points.
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