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Cabinet clears telecom FDI norms, frees media
New Delhi: The Cabinet has paved the way for allowing 74 per cent foreign investment in basic and mobile phone service companies and has said that foreign shareholding in state-run banks and financial institutions will not be counted in the cap on investments.

The Cabinet has also approved IBP's merger with Indian Oil Corporation according to a swap ratio worked out by the boards of the two companies. The swap will allow IBP shareholders to get 125 IndianOil shares for every 100 shares held by them.

The finance ministry had earlier questioned the ratio as the government shareholding was getting reduced. IndianOil holds 53.58 per cent in IBP.

The Cabinet has also cleared a proposal to allow foreign news broadcasters to air India-specific advertisements and content. It proposed a similar move for the Indian editions of foreign news publications.

A new uplinking policy has also been approved according to which broadcasters can share content with state-run Prasar Bharti for events of national importance with 75 per cent advertisement revenue going to private players.

The move paves the way for foreign investors to raise their holdings in companies like Bharti Tele-ventures and Hutch. Foreign investors hold over 48 per cent stake in Bharti.

The government has retained the condition that a majority of directors on boards of telecom companies with foreign stake, and the senior management of such companies, including chairmen, managing directors, chief executive officers, chief technical officers and chief financial officers, should be resident Indian citizens.
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PSU oil firms ramp up LPG imports
Mumbai: As the festive season approaches oil marketing companies in India are stepping up imports of cooking gas and tightening distribution systems, following an acute shortage of liquid petroleum gas (LPG) in the country due to the shutdown of Reliance's Jamnagar refinery between October and December.

During the festival season, the country's cooking gas consumption increases by almost 20 per cent. Indian Oil, Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) have all increased the overall production of LPG by 5 per cent to 10 per cent, and have tightened their supplies to avoid any shortages.

The total demand for LPG cylinders from HPCL is 200 thousand metric tonne (TMT) per month with one metric tonne amounting to roughly 70 cylinders, of 14.2 kg each (costing approximately Rs300 per cylinder).
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