New Delhi, January 16
India has invited foreign companies to invest and participate in the hydrocarbon sector as a bulk of oil and gas potential still “remain locked up” in its basins. The government is putting in multi-pronged strategy for faster exploration and acquisition of oil fields, even as OPEC ruled out any further cut in oil production till its next meet in March.

“More areas and opportunities for investment, technology and entrepreneurship are now open for the global players as well as for India’s own public and private sectors,” External Affairs Minister Pranab Mukherjee said at the inauguration of PETROTECH-2007 conference here today. He underlined that redoubled and sustained efforts were required to develop new, alternative and renewable sources of energy like nuclear and solar at an affordable cost.

Mr Mukherjee said, “Bulk of oil and gas potential of Indian basins still remain locked up”.

He pointed out to the conference of petroleum ministers of various countries that “India Hydrocarbon Vision-2025” laid down the framework for strengthening the hydrocarbon sector, with petroleum and natural gas being at the forefront.

He underlined the need for equity among countries at various stages of development, equity among producing and importing-consuming economies, equity among various users, be they industry or common man.

Petroleum Minister Murli Deora said a new hydrocarbons strategy with equal emphasis on raising domestic output and acquisition of oilfields abroad was in place to secure India’s energy needs.

“We have made substantial progress in the restructuring of the petroleum sector with a conscious and determined policy shift to a competitive market economy,” Mr Deora said.

“The main features of the multi-pronged strategy include faster exploration of domestic sedimentary basins to enhance indigenous output, acquisitions abroad and development and commercialisation of alternative fuels.”

New Delhi, January 16
Vodafone and Reliance Communications, the major suitors for Hutch-Essar, are contemplating picking up stake in Hutchison Telecom instead of buying HTIL’s stake in the Indian mobile venture, the Wall Street Journal reported today.

An alternative plan to acquire Hutchison Whampoa’s (HWL) 49.8 per cent stake in HTIL could be a wise move for both Rcom and Vodafone, as it would give the buyer a controlling stake in Hutch-Essar through an indirect route, according to the report.

Besides, such a plan would do away with the issues related to Indian partner Essar Group’s Right of First Refusal (RoFR), WSJ said quoting an unnamed source familiar with the deal.

Both Vodafone and RCom are currently studying the possibility of such a deal although they seem to prefer a direct purchase. Both companies are considering this plan at the request of none other than Hutchison Whampoa, the report said.

HWL had been scouting for buyers for HTIL’s stake for several weeks, but Essar Group had been claiming RoFR for any sale and had threatened to use various means to block a deal, it added. — PTI

New Delhi, January 16
Reliance Industries will set up a 50,000-barrels-per-day refinery in Yemen, where it has already picked up a stake in two oil blocks.

"Reliance will partner local Yemen company Hood Oil for this refinery," Yemen's Minister for Oil and Minerals Khalid Mahfoudh Dahah said on the sidelines of the Petrotech Conference here.

The minister said the refinery capacity would be 50,000 barrels per day in the initial phase and could be doubled later.

"Construction on the project would begin this year and would take 36 months to complete," he said.

RIL would have to sell products from the refinery in the domestic market for the first five months and thereafter could export the production. RIL has been awarded onshore exploration Blocks 34 and 37 in Yemen. The Mukesh Ambani group firm has taken local company Hood Oil as a partner in the two Yemen blocks. — PTI

New Delhi, January 16
Newly elected President of Assocham and Videocon chief Venugopal Dhoot said today he was against "land grabbing" in the name of SEZs and the chamber would take farmers on board while pursuing industrialisation.

"Assocham is against land grabbing. We are for farmers and when we undertake industrialisation we would like to convince them that it is for their benefit," Mr Dhoot told PTI in his first interview before assuming office.

With controversies surrounding land acquisition for SEZs and other industrial projects in many parts of the country, Mr Dhoot reiterated there was "no sense in making SEZs by compromising the interest of farmers".

His comments come in the backdrop of protests against Indonesia's Salim Group's SEZ at Nandigram in West Bengal, Tata Motors' car project at Singur and against SEZs in Haryana, UP and Maharashtra, among others.

On the issue of rehabilitation policy proposed by the Prime Minister, he said the chamber would support it.

Asked if Assocham was ready to speak to politicians who were agitating against acquisition of farm land for industrial purpose, Mr Dhoot said: "As a chamber we do not believe in talking to individuals. If any issue has to be taken up then we will speak to governments, including Chief Ministers." Mr Dhoot, whose group has been active in global takeovers, said the government should provide support and incentives to parent Indian companies that were investing overseas.

"If the Tatas succeed in acquiring Corus, they should be given tax benefits here proportionate to their investment abroad," he said, adding that this would not violate any WTO norms.

Commenting on the contentious issue of job reservation in the private sector, Mr Dhoot said the chamber was against any forcible quotas but was already working on affirmative action and ready to take it up in a phased manner."We have asked the government not to force any laws upon us and see our action for a year," he said, adding, the chamber would ask its members to highlight their affirmative action on balance sheets.

He said forcible job reservations in private sector could have an impact on 'brand India', which had been picking up globally. — PTI

Mumbai, January 16
Squarely blaming the bureaucracy for India's slow progress, former Infosys chief Narayana Murthy said the government needed to start performance-linked incentives in order to bring accountability.

"There is no linkage between performance and reward in our governments. Hence, most projects get delayed inordinately," Mr Murthy said while delivering the fourth Nani Palkhiwala lecture here on 'Making globalisation work for India'.

Maintaining that the administrative mindset had to be changed with the managerial one, he said a large part of the bureaucrats' salary must depend on the progress of projects handled by them. "This is the best way to bring accountability among them," he claimed.

Mr Murthy added that the bureaucrats had to learn to stand up for their beliefs and values rather than be subdued by their 'respect' for their superiors -political or otherwise.

Asserting on the country's need to embrace speed if it were to succeed in today's globalised world, he said that the decision-making in government had to improve on a daily basis so that it could catch up with countries like China.

He did not even spare politicians in his address, saying that "our politicians say one thing when they are in government and exactly opposite when they are in the opposition.

"To achieve fast progress, all political parties have to be on the same page," he said.

Instead of playing the zero-sum game and taking sides, the leaders must learn the way in which jobs could be created and encourage it, he said.

Mr Murthy also pitched in for more liberalisation in the country which would pave the way for more foreign investment.

Ridiculing the country's retreat on allowing 74 per cent foreign ownership in telecom citing the excuse of "security", he said such steps only reflected the country's enslaved mindset even after 59 years of Independence. — PTI

New Delhi, January 16
Airtel, ICICI and American Express Bank have been fined Rs 75 lakh by the Delhi State Consumer Disputes Redressal Commission (DSCDRC) for making unsolicited calls, messages and telemarketing.

Responding to a petition filed by Ms Nivedita Sharma against Airtel, ICICI and American Express Bank, Justice J.D. Kapoor, President of the commission, expressed anguish over the means of telemarketing communication employed by these companies, as it creates disturbance in a consumer's day-to-day life.

''The calls are made at odd hours and when the person is at a business meeting or some emergency. Receiving such calls not only harasses but also unduly interferes with the right of privacy of a person, causing an unnecessary financial loss to the subscriber when he attends such calls even when on national or international roaming,'' said the order.

Justice Kapoor said that sharing confidential information such as name, address, mobile number, financial standing with others also posed a serious threat to the safety and security of the consumer.

Airtel and the Cellular Operators Association of India (COAI) have been ordered to pay a fine of Rs 50 lakh while the ICICI and American Express Bank have been issued a penalty of Rs 25 lakh.

The commission also severely admonished TRAI for not taking any effective step in this regard and directed TRAI to establish a national "Do-not-call" registry for all marketing agents. — UNI

New Delhi, January 16
Integration of all Central and state taxes into a national goods and services tax (GST) would result in a cumulative additional revenue to the tune of Rs 5 lakh crore by 2012 and as a result the cost of industrial production would go down by 15 to 20 per cent per annum.

Dr Parthasarathi Shome, Adviser to the Finance Minister, releasing a study on GST said it would widen the tax base and improve the tax compliance leading to higher tax GDP ratio.

The study “GST: Imperative for Economic Growth” brought out by ASSOCHAM observed that with the integration of GST, the tax GDP ratio was expected to increase by 2 per cent, which worked out to be an additional revenue of Rs 80,000 crore per annum to the Central and state governments.

Dr Shome said Finance Minister P. Chidamabram in consultation with the Member of Empowered Committee would evolve the concept and ways and means to enable government to move towards single GST.

Once implemented, the GST would mark the consummation of third generation fiscal reform and would accelerate India’s journey to the orbit of economic superpowers of the world economy. It further claimed that GST would eliminate the cascading impact of taxes on production and distribution cost of goods and services. This would significantly improve the competitiveness of indigenous goods and services leading to accelerated GDP growth. GST without tax barriers would facilitate economy of scale in manufacturing and reduce the supply chain cost. 

Mumbai, January 16
Mahindra International, the commercial vehicle arm of Mahindra & Mahindra, has zeroed in on Pune to set up a greenfield plant at an investment of over Rs 2,000 crore.

"Maharashtra has been selected for this new venture between Mahindra and the International Truck and Engine Corporation (ITEC) for manufacturing commercial vehicles," a senior state government official said.

Mahindra International, a 51:49 joint venture between Mahindra & Mahindra and US-based ITEC, has already commenced manufacturing LCVs under a contract manufacturing arrangement with M&M at the Zaheerabad plant in Andhra Pradesh.

M&M and ITEC have five directors each on the Board of Mahindra International. Anand Mahindra is the Chairman and the management team will be led by Mr Arun Pande as Managing Director.

Mahindra also has entered into a joint venture with French vehicle maker Renault for manufacturing Logan with an investment of Rs 700 crore at its Nasik facility with a capacity to produce 50,000 cars per annum. — PTI

New Delhi, January 16
Two-wheeler major Bajaj Auto today posted a net profit of Rs 340 crore in Q3FY07 as against Rs 279 crore during the same quarter a year ago, recording 23 per cent growth. During the third quarter of financial year 2006-07, revenues were up 28 per cent to stand at Rs 2,568 crore as compared to Rs 2,000 crore in the corresponding period last year.

On a consolidated basis, the company's net profit stood at Rs 328 crore for the quarter ended December 31, 2006, as against Rs 254 crore for the quarter ended December 31, 2005.