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GAIL offers LNG to fertiliser firms
US crude looms menacingly at $41
CAG finds oil trio’s records faulty
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Exporters to meet FM today
IT round-up
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GAIL offers LNG to fertiliser firms New Delhi, July 15 GAIL has offered to supply LNG fuel to all units to save costs which will help improve the productivity of the industry, said Mr Proshanto Banerjee, CMD of the company, here today. Addressing a press conference, he said some fertiliser units, including NFL, had approached GAIL to supply LNG. “Once the Dadri-Panipat is completed in the next 12-15 months, LNG may be supplied to NFL’s Panipat unit. We have plans to extend that gas pipeline to Bathinda and other towns in Punjab,” he observed. He maintained that in the Eastern region, where a number of fertiliser units had been closed due to costly fuel, GAIL had offered to supply LNG through pipelines. “We are waiting for the national policy on National Gas Grid and hope GAIL will be a major play to implement that mega project. We are even ready for a scenario if other private players are also allowed to enter this sector,” said Mr Banerjee. The investment involve Rs 23,000 crore to build up 6,500 km pipeline. It will facilitate high pressure and high volume inter-state movement of gas from various locations. GAIL also signed a technology agreement with Mitsui Chemicals of Japan for setting up a polyethylene (HDPE) plant with a capacity of 1 lakh TPA at Pata in Auriaya district in UP. The project with an estimated cost of Rs 647 crore is scheduled for completion by April, 2006. Regarding the
performance of the GAIl, he said, “its turnover has reached Rs 12,449 crore and netted Rs 1,878 crore during 2003-04. The company is expecting over 60 per cent profit during the first quarter this fiscal from its transmission business. At present, the company has a market share of 85 per cent in gas market.” GAIL has also proposed an investment of Rs 10,723 crore for enhancing its petrochemical production capacity by adding three more projects.
Eyes stake in Ennore LNG “We have opened dialogue with the Birla Group for taking a leading role in setting up the 5 million tonnes capacity LNG terminal-cum-power project at Ennore,” GAIL chairman and managing director Proshanto
Banerjee told reporters here. The Dakshin Bharat Energy Consortium, comprising Grasim Industries (an A V Birla Group company), CMS Energy, Unocal, Woodside Petroleum and Siemens Project Ventures, had been awarded the letter of intent (LoI) for the project after a global bidding. But the project has not yet taken off. “GAIL is ready and keen to assume leading role,” Mr Banerjee said.
— PTI
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US crude looms menacingly at $41
Singapore, July 15 The US light crude climbed to $ 41.12 a barrel, the highest level since June 2, when prices struck a 21-year peak at $ 42.45. At 0549 GMT, US crude had retraced slightly to $ 40.75, 22 cents below Wednesday’s close, which saw prices rally $1.53. The latest price surge was triggered by an unexpected fall in the US crude and gasoline inventories, which revived concerns over supply disruptions as oil demand grew at the fastest pace in 24 years and producers pumped almost flat out. “The room for error is very small on the supply side while demand is so strong,” said John Brady at ABN AMRO in New York. In its latest weekly report, the U.S. Energy Information Administration (EIA) said national crude stocks declined by 2.1 million barrels to 302.9 million barrels in the week to July 9, bucking expectations of a 1.4 million-barrel increase. The fall came despite imports of above 10 million barrels per day (bpd) for a record eighth week in a row. The data also showed a decrease of 200,000 barrels in gasoline inventories, which had been forecast to rise by an average 500,000 barrels. “The worry is that there only has to be an attack on Iraq’s southern pipelines or trouble somewhere like Venezuela or Nigeria, and the world’s spare capacity would be wiped out,” said David Thurtell at Commonwealth Bank of Australia. Iraq’s exports were disrupted throughout June as saboteurs targeted major pipelines, while strikes and protests in Nigeria and Norway curbed production. Exports from Iraq’s southern terminals have resumed normally, but this week two ships have refused to load at the Basra oil terminal because of security concerns. Venezuela, a major supplier to the United States, may face unrest ahead of a referendum on the rule of President Hugo Chavez. An opposition-led strike in late 2002 brought national output to a virtual halt for two months. OPEC producers, which control about a half of global crude exports, are pumping near flat out with only Saudi Arabia left with any significant room to lift production. Kuwait said on Thursday that it had almost 100,000 bpd of spare capacity, which it could use to help cool soaring oil prices. Meanwhile, the Organisation of the Petroleum Exporting Countries (OPEC) may cancel its July 21 meeting in Vienna and simply implement a planned increase in the official supply quota, an OPEC statement said.
— Reuters
...makes Re slip to 46.10
Mumbai, July 15 Opening on a shaky note at 46.02/045, the domestic currency was driven further southwards as importers, including large oil companies, continued dollar covering, a dealer at the development credit bank said. The rupee which hit an intra-day low of 46.18/20, ended at 46.10/11, the weakest closing level since August 5, 2003, and shedding 10 paise from Wednesday’s close of 46.00/01.
— UNI
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CAG finds oil trio’s records faulty New Delhi, July 15 In
addition, the three companies had also caused a further loss of Rs 114 crore by adopting a lower mutually agreed price for payment of duties by 12 terminals of these majors, the CAG said in its report on Indirect Taxes tabled in Parliament. On scrutiny of the financial records of the IOC, HPCL and BPCL, CAG found that the total subsidy claimed by the three oil majors on sale of kerosene and LPG amounted to Rs 4,457.23 crore during April-December, 2002. “Duty was paid on the controlled price and subsidy received from the Petroleum Ministry was excluded from transaction value which resulted in duty amounting to Rs 713.17 crore being lost on clearances during this period,” it said. Losses suffered by the oil companies on account of clearance of kerosene and LPG at lower prices fixed by the Oil Co-ordination Committee were compensated by the
government through subsidies and prior to April 1, 2002, subsidies were being credited to the oil pool account and, thereafter, this subsidy is being paid in cash. “Audit noticed that in the absence of specific codal provision to charge duty on the full value of consideration, including the part consideration received in the form of subsidy from the
government, the additional consideration received from the government is excluded from levy of duty,” it said.
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Budget may create 7 lakh jobs in textiles: Oswal Ludhiana, July 15 This observation was made by Mr S.P. Oswal, Chairman, the National Textile Committee of the CII. In an interview with The Tribune here today, Mr Oswal estimated that the textile industry would get investment of Rs 75,000 to Rs 100,000 crore in the next five to seven years. Mr Oswal said the level-playing field and attractive investment out look of the Indian textile industry would lead to increased production of high value-added products at the competitive prices for the domestic and global market. It was estimated that the textile export would increase from its present level of about 60,000 crore to about 1,12,500 crore by 2010. During the period, the domestic market was expected to grow from Rs 90,000 crore to Rs 1,35,500 crore. The total size of the industry might increase from present level of Rs 150,000 crore to Rs 2,48,000 crore during the same period. According to Mr Oswal an investment of Rs 1,00,000 crore would create more than 7 lakh jobs per annum in the next five to six year in the industry. Welcoming the implementation of VAT from April, 2005, Mr Oswal said this new arrangement would lead to transparency in transactions and the practice of evasion of taxes would be curbed which had been the bane of the industry in the past.
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Exporters to meet FM today
Chennai, July 15 Addressing the media here today,
Mr. Rafeeque Ahmed, president, FIEO, said: “We had asked for a number of measures in the interest of Indian exporters in the Union Budget but they were not incorporated. We will meet the Union Finance Minister tomorrow to reiterate out demands.” He said: “The Exim policy will be announced on July 31 and we hope it will be beneficial for the exporters as the Budget was disappointing.” Mr. Ahmed mentioned a number of problems faced by the exporters, including high transaction costs and non-availability of dollar loan, which was not giving India the level playing field with countries in South East Asia and China. He said: “The transaction cost in India varies between six to 14 per cent of the total value of goods exported while in South East Asia and China, it is less than two per cent.” He lamented that despite a foreign exchange reserve of $ 120 billion, the banks were refusing to provide dollar loans to the exporters.
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IT round-up
Mumbai, July 15 “The investment is to enhance our IMS technology and infrastructure, which would help in improving services and expanding our reach into US and European countries,” Patni senior vice-president Satish Joshi told reporters here today.
TCS IPO
IT major Tata Consultancy Services’ much-awaited Initial Public Offer (IPO) to mop up an estimated over Rs 5,000 crore is likely to hit the market on July 29 subject to all approvals from market regulator SEBI. The company was presented with two plans for opening the issue — first beginning on July 23 and the second by the end of the month — from the merchant bankers appointed for the IPO, the biggest in the private corporate sector, sources associated with the process said. When contacted, TCS Vice-President Corporate Communication, Atul Takle, told PTI from Mumbai “we have not yet received all SEBI approvals.” “Any date is speculative,” he said when asked if the company could launch its IPO on July 29. Spokesperson of Tata Sons, the holding company of the Tata Group, said: “no decision has been taken yet.” Sources, however, said it would require about 10 days to launch the IPO after all the formalities, including filing with the Registrar of Companies (RoC), are completed. Following the filing of draft red-herring prospectus by the company, market regulator SEBI had sought some clarifications from it in the first week of July. Incidentally, July 29 coincides with the birthday of group founder JRD Tata and the centenary celebrations of the group.
— Agencies
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New Delhi, July 15
