FDI worth Rs900-cr approved
New Delhi: The Foreign Investment Promotion Board (FIPB) has approved foreign investments from 18 companies that will bring in foreign direct investment (FDI) worth Rs.992.85 crore.

Of this amount, Rs 342 crore would be invested by Japanese chemical company — Mitsubishi Chemicals in West Bengal for the manufacture, marketing and distribution of purified terephthalic acid (PTA).

Another Rs256 crore worth of investment is proposed for setting up a voice based call centre in Mumbai. The BPO will be set up by two US based private parties in partnership with Adventity BPO. Russia based JSC Technochim has also received an approval to invest Rs 192 crore for the manufacture of titanium products in Orissa that involves setting up of a joint venture with 55 per cent foreign equity.

Other major investments include British Gas' proposal to set up wholly owned subsidiaries (WoS) in Andhra Pradesh, Karnataka and Tamil Nadu for developing gas distribution and transmission infrastructure and the supply and sale of natural gas to domestic, commercial and industrial customers. The three projects involve an investment of Rs405 crore with Rs135 crore slated for each of the states.

Other approvals include the permission given to British WPP group (for 100 pc foreign equity in advertising, branding and designing services), Mary Kay International (for WoS in cosmetics), Benias International for real estate development and Idemitsu to set up a WoS. Acer International's proposal to set up a WoS to undertake wholesale trading and test marketing of personal computers, notebooks etc. has also been cleared after facing opposition from the department of industrial policy and promotion. US company Infos TEP has also been allowed a share swap in its company in Hyderabad which manufactures electronic display systems and designs products for wireless and wireline communication.
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Penalty may be imposed on ONGC, Reliance
New Delhi: The directorate general of hydrocarbons has recommended stiff penalties on state-owned Oil and Natural Gas Corp (ONGC) and Reliance Industries Ltd (RIL) for defaulting on commitments made by them on oil and gas exploration blocks awarded under NELP. The DGH has recommended a total penalty of $107.391 million on ONGC and $26.535 million on RIL. The penalty amount was recommended to the Petroleum Ministry for approval.

The DGH levied a penalty of $7.275 million on RIL for failing to do a 3D seismic survey and drill two exploratory well on block KG-OSN-97/3 and $2.645 million for unfinished 2D and 3D seismic survey and one undrilled exploratory well on block KG-OSN-97/4 .

It also recommended $2.903 million cost recovery from RIL for failure to drill one exploratory well committed for block GK-OSN-97/1 and two wells on block MB-OSN-97/3.
ONGC has been fined for not meeting the minimum work commitment in six blocks.

The DGH recommended recovery of $6.351 million for failure to drill two exploratory wells on block MB-OSN-2000/1, $19.615 million for three undrilled wells on block MB-DWN-2000/1 and $22.807 million for not drilling two wells on MB-DWN-2000/2.

ONGC was also levied $6.450 million for failing to drill one committed exploratory well on block GS-DWN-2000/1, $28.293 million for two undrilled wells on block GS-DWN-2000/2 and $23.872 million for one unfinished well on block KK-DWN-2000/4.
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Deora rules out cut in fuel prices for now
New Delhi: The Government has ruled out any immediate cut in petrol and diesel prices in line with softening of international crude prices, saying the global fall in fuel prices had reduced losses but not completely wiped them off.

Petroleum Minister Murli Deora told reporters that any reduction in fuel prices can be considered only if crude falls to around 50 dollars per barrel mark.

The Indian basket of crude is currently ruling at 59.92 dollars per barrel, down from historic highs of over 70 dollars-a-barrel last month.

While the fall in crude prices has resulted in oil companies breaking even on selling petrol, they were still making over Rs5 per litre loss on diesel. Besides, selling kerosene and domestic cooking gas (LPG) continued to be a loss making proposition.
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IMF accords more powers to China
Singapore: India has failed to prevent China and three other countries from getting more powers in the International Monetary Fund. The IMF's Board adopted a controversial reform proposal that received 90.6 per cent votes in favour and 9.4 per cent against it.

The move gives China, South Korea, Mexico and Turkey greater say in the Fund, including access to finance and voting powers.

India, Brazil and 21 other countries voted against the proposal.

Eighty-five per cent of votes in the 184-member IMF was required for giving more powers to the four countries.
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Rs30k crore malpractice alleged in NICE land deal
New Delhi: The Karnataka government has alleged in the Supreme Court that Nandi Infrastructure Corridor Enterprises (NICE) that was entrusted with executing the Rs2,250-crore project connived with officials and authorities of the state to grab ownership of about 2,289.7 acres worth over Rs30,000 crore.

The state government alleged that this kind of land was not available to NICE as per the contract upheld by the courts. In its reply to a show cause notice issued by the apex court on a writ petition filed by NICE, the state government said that there was no justification for the note by the PWD secretary by which benefit of 2289.7 acres of land was given to NICE and that too at the cost of the government. "It has resulted in the state government losing land worth nearly Rs30,000 crore," the counsel for the state Sanjay Hegde said.

Defending the appointment of the Justice BC Patel Commission of inquiry into the project, the government said there are innumerable other such impermissible concessions which needs to be investigated.
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Govt takes tentative steps on labour reforms
New Delhi: After keeping the issue of labour reforms on the sidelines till now, the government plans to include it as part of the second generation reforms during the forthcoming National Development Council (NDC) meeting, the apex forum for both the Centre and states.

The government is expected to adopt a middle path where several archaic labour laws may not be amended to prevent any backlash from the Left parties and labour unions.

Reforms would, however, be given a push by defining criterion under which industrial units may be allowed to close down without seeking mandatory government permission.

The Planning Commission is working on a proposal under which industrial units promising higher compensation package (say 30 or 60 days wages for each year of service instead of present 15 days wages) may be allowed flexibility to shut shop or retrench without approaching the government.

The criterion may even be applied in case a company employs more than 100 workers, sources said. Though the proposal is in its initial stages of discussions, it is also likely to find a place in the final draft of Approach Paper that is expected to be submitted to the PM later this month. The current draft also talks about the need for reforming the labour market to spur manufacturing.

At present, industrial units employing more than 100 workers have to seek government nod to close down or retrench or lay off. The commission believes that when permission isn't required to set up a unit, permission should not be needed for closing it.

If the states agree to suggestions at the NDC meet, the changes may be introduced without amending labour laws.
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Maharashtra petrol pump dealers go on indefinite strike
Mumbai: Petrol pump dealers across Maharashtra have launched an indefinite strike from 18 September to protest against high sales tax levied by the State on auto fuel, which was driving business to other States.

Sales tax in Maharashtra is the highest in the country at 34 per cent compared to neighbouring States such as Goa (21 per cent), Andhra Pradesh (28), Gujarat (28) and Karnataka (30).

The disparity was leading to flight of high volume of diesel trade from Maharashtra to the neighbouring States, FAMPEDA said.
In Nagpur, only nine petrol pumps operated by Indian Oil Corporation and Bharat Petroleum Corporation Ltd were open while in rural areas Reliance petrol pumps were open, sources said.
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