New Delhi, August 27
The first meeting of a group of ministers looking into the contentious issue of natural gas pricing remained inconclusive today, even as the oil ministry said the government has no role in fixing prices in areas auctioned since 2000 to companies such as Reliance Industries.

“The meeting was inconclusive... we will meet again at 6 pm tomorrow,” petroleum minister Murli Deora told reporters after the meeting of the Empowered Group of Ministers (EGoM) here.

The EGoM, headed by external affairs minister Pranab Mukherjee, is to decide on pricing and utilisation of gas based on inputs from a report of cabinet secretary and Prime Minister’s economic advisory council that went into the issue.

Deora said issues were flagged off at today’s meeting and the oil ministry made a presentation. He did not elaborate.

However, official sources said the petroleum ministry told the EGoM that as per production sharing contracts, signed with firms like RIL for areas auctioned under the New Exploration Licensing Policy (NELP), the government has the right to only approve the gas formula and it cannot fix a particular price.

The PSCs talk of gas utilisation policy, not allocation, only to give powers to the government to dictate its usage domestically. They do not empower the government to earmark gas to certain priority sectors, it said, adding unlike crude oil discoveries, export of gas was permissible under NELP.

Sources said the ministry asked the EGoM to honour the commitment given under NELP of marketing freedom at market determined pricing as any kind of regulation would send wrong signals to investors. It supported RIL proposed price of $4.33 per mBtu as it was lower than the market price ranging between $4.75 to $5.7 per mBtu. — PTI

New Delhi, August 27
Gas firm GAIL (India) has sought review of price of natural gas produced by the consortium of Reliance Industries, BG Group of UK and Oil and Natural Gas Corp from Panna/Mukta and Tapti (PMT) fields, off the Mumbai coast.

Taking a cue from the fact that the government has asked a group of ministers to look into pricing of gas from RIL’s eastern offshore Krishna Godavari fields, GAIL last week wrote to the Petroleum Ministry seeking price review of PMT gas.

“When the price of gas from KG basin is being looked into by the government, we in GAIL, strongly feel that there is enough scope for review of price paid to PMT joint venture at the rate of $ 4.75 per million British thermal unit and also for supplying the entire volume of gas produced from PMT fields to GAIL,” the letter stated.

RIL had proposed to price gas from its KG-D6 field off the Andhra coast at $ 4.33 per mBtu, a price that is now being looked into by the Empowered Group of Ministers headed by External Affairs Minister Pranab Mukherjee.

GAIL said Petroleum Ministry had in March 2005 decided that PMT JV shall supply only 6 million standard cubic meters per day of gas to GAIL for one year at $ 3.86 per mBtu.

A year later, it was decided that PMT JV shall supply gas in excess of 4.8 mmscmd out of the total available gas (10-12 mmscmd) at the rate of $ 4.75 per mBtu for two years ending March 31, 2008.

“Gas so purchased from PMT JV is being sold to core sector consumers at administered price ($ 2.1 per mBtu) and difference between the higher purchase price of PMT gas and the APM gas is being adjusted under pool mechanism,” it said. GAIL said it was earlier receiving the entire quantity of gas produced at Panna/Mukta and Tapti offshore fields. — PTI

New Delhi, August 27
The telecom tribunal TDSAT has ruled that the sectoral regulator TRAI could frame terms and conditions overriding or superseding the mutually negotiated interconnection agreements between two operators.

“TRAI is legally competent to interfere ... enjoys a statutory mandate in as much as Section 11(1)(b)(iv) of the TRAI Act requires it to regulate arrangements amongst service providers for sharing their revenue from private telecommunication services,” TDSAT said.

“This power of the TRAI overrides private arrangements or agreements between the parties and as a matter of law, TRAI is empowered to lay down provisions which may require modifications or suppression of such mutual agreements,” observed the TDSAT Bench.

The tribunal’s observations came, while rejecting an appeal challenging TRAI’s power to regulate interconnection agreement, filed by state-run telecom major BSNL.

Earlier, on April 27, 2005, TDSAT held that the TRAI could not override the terms and conditions of licence agreements and the terms of interconnectivity.

On this, TRAI relied on an order by the Delhi High Court on July 9 this year in which it held that regulator could fix the terms.

BSNL had challenged a TRAI regulation in which the regulator had fixed Rs 30 p/pm as the revenue to be shared among operators for roaming calls.

However, BSNL sought 50:50 share. — PTI

New Delhi, August 27
TRAI today directed Bharti Airtel to discontinue immediately several promotional valued added services it recently launched in various circles as they violate the national numbering plan. The operator has been asked to ensure the compliance within seven days.

The services, which has drawn the ire of the regulator, are a promotional offer - free hello tunes, khel khel mein kammal in the Rajasthan circle, a devotional portal in the Himachal Pradesh circle, ibadat portal in J & K circle and marathi mobile radio and ‘ringtone genie’ in Maharashtra and Goa circles.

The value added service - voice chat - in the Bihar and UP telecom circles, meet and greet Shahrukh Khan, Airtel FM in UP (west) circle, live counselling portal in J & K circle and free hello tunes were also in line of fire. The short codes of SMS for all these valued added services were not in conformity with the DoT guidelines.

Mumbai, August 27
Chandigarh-based Punjab Chemicals and Crop Protection today said it will acquire Netherlands-based firm Pegevo Bcheer BV for about Rs 221.41 crore to expand its presence in the European market.

Pegevo is a provider of substance formulations for crop protection agents, including herbicides and fungicides.

The company’s wholly-owned SD Agchem (Europe) NV has entered into a share purchase agreement with Pevobel NV and Gevobel NV, to acquire 100 per cent equity shares in Pegevo, the company informed the BSE. — PTI

New Delhi, August 27
Uncertainty prevails on the roll out of Reliance group’s retail venture, particularly in the northern and eastern region, amid reports that the company has decided to delay opening its outlets.

When queried over reports that Reliance Retail has decided to hold back opening new Reliance Fresh stores in the backdrop of the Uttar Pradesh government’s decision to close outlets of all big corporates, a company spokesperson declined to comment.

Reliance Retail chief executive officer Raghu Pillai, who was quoted in media reports as saying the company wanted assurances on safety of its employees and properties before opening any new store, could not be contacted despite repeated attempts.

The Uttar Pradesh government last week asked all big retailers, including Reliance and RPG Group, to shut down their outlets selling vegetables and other food items after small traders attacked the stores in Lucknow and Varanasi.

Media reports said Reliance Retail has delayed plans to open stores in Uttar Pradesh and and West Bengal following protests from small traders.

Meanwhile, in West Bengal, the Forward Bloc demanded a discussion with the CPI-M on the state government’s policy on retail trade promoted by big companies, including Reliance Industries, in West Bengal.

The state secretary of the Forward Bloc Ashok Ghosh told reporters in Kolkata that there was a clear contradiction between the CPI-M’s declared intention to protect small traders and the state government’s green signal to big corporate houses. — PTI

Kolkata, August 27
EIH Limited, the flagship company of the Oberoi Group, will invest about Rs 4,500 crore in new projects for 60 per cent capacity addition in the country and abroad in the next five years.

Announcing this here today at the end of the company’s 57th annual general meeting, Oberoi Group chairman PRS Oberoi said during the period the number of rooms would go up to 6,800 from the present 4,100.

“With the enormous growth in the hospitality industry, we plan to invest Rs 4,300 crore-Rs 4,500 crore in new projects over the next five years. Of this, EIH will contribute Rs 1,000 crore and the rest will come from borrowings and partners,” he told reporters.

Having set a target of 50 per cent capacity addition in the country alone, EIH will add up 1,400 more rooms in its Trident Hilton category projects in Mumbai, Bangalore international airport and Hyderabad city, entailing an investment of Rs 800 crore, he said. — UNI

New Delhi, August 27
The Supreme Court today issued notice to bicycle manufacturer Atlas Cycles (Haryana) Ltd on a petition challenging a Delhi High Court order that restrained Atlas Products Pvt Ltd from using ‘Atlas’ as a part of its corporate or trade name.

A Bench headed by Justice S H Kapadia issued notice, asking Atlas Cycles (Haryana) to file its reply as to why the high court order against Atlas Products should not be stayed.

The HC had restrained Arun Kapur and his company Atlas Products from using the word ‘Atlas’ in their corporate name or trade name for bicycles and bicycles parts.

The HC had passed the order on a petition filed by Atlas Cycles to restrain Atlas Products from using trade mark ‘House of Atlas’.

Senior counsel C A Sundram, appearing for Atlas Products, submitted that the restraint order would hurt its business and it could not be compensated in monetary terms.

Stating that the company was managed by members of the Kapur family (also known as the Atlas group) and was within the knowledge of Atlas Cycles (Haryana), the petitioner said the MoU entered between Atlas family members provided that all three groups, comprising three brothers and their sons and grandsons, would be allowed to use the name Atlas.

According to the petition filed through counsel Vijaya Lakshmi Menon, Atlas Products had changed its trademark to ‘Premium Gold’ after being restrained from using the name ‘House of Atlas.’

Mumbai, August 27
State Bank of India, the country’s largest commercial bank, today said its board has given go ahead to the merger of State Bank of Saurashtra with itself.

SBI said its central board on August 25 had approved the merger, subject to approval of the government and Reserve Bank in accordance with State Bank of India Act, 1955.

“This is the beginning of whole group’s restructuring.

SBS is the smallest of the seven associates and based on the experience we will look at other banks,” bank MD TS Bhattarcharya said yesterday.

The other associates are State Bank of Travancore, State Bank of Mysore, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Indore and State Bank of Patiala. The merger would help SBI consolidate its position as the country’s biggest bank and widen the gap with nearest rival ICICI Bank.— PTI

New Delhi, August 27
Announcing its diversification into telecom sector, real estate developer Parsvnath Developers Ltd today said it has submitted applications to the Department of Telecom (DoT) for providing unified access services in the 22 telecom circles across the country.

“This is a great opportunity for the company to diversify into a new business area, which is continuously growing. Despite increasing number of subscribers, the penetration of mobile telephony in India is still low as compared to developed countries. As and when number portability is introduced, it would offer immense business opportunity to new entrants,” company’s chairman Pradeep Jain said.

With the government following an open policy on spectrum, the realty major seeks to use this opportunity for providing unified access service on a pan-India basis, including rural telephony, a company statement said.

The licence for unified access services would entail a 2G licence for GSM and a triple play of various services, including IPTV, Wi-Max, internet, broadband and any other services relating to the signal.

Kolkata, August 27
Air Deccan’s mission for every Indian to fly is being implemented by adopting a dynamic pricing strategy of “earlier booking meaning lesser prices”, claimed the airlines CEO Ramki Sunderam, while accompanying mediapersons in Air Deccan’s inaugural flight to Jamshedpur yesterday.

The fares, they are offering, start from the paltry Re 1 to Rs 500 at the first opening of booking, which has been something novel in the country, he claimed.

Sunderam said the step has encouraged a large number of people, including poor farmers, artisans, daily wage-earners and other working class to come forward and enjoy the air travel.

“But still we have not achieved much and our efforts will continue till we reach every nook and corner of the country,” he added.

The unknown private airlines company, built by a group of retired air force personnel led by Capt G.R.Gopinath with only two small two winged aircrafts, had launched its first flight on August 23, 2003 from Bangalore to Hubli. It is considered to be the country’s largest low-cost airlines with a fleet of 43 brand new aircraft, flying more 360 flights a day and connecting 66 small and big cities in the country.

Sunderam said theirs was the largest airline in terms of reach and it has already set up eight aircraft bases across the country, including Delhi, Mumbai, Ahmedabad, Kolkata, Hyderabad, Bangalore, Trivandum and Chennai.

“We have plan to extent our operation to Jammu & Kashmir, Punjab, Haryana and Rajasthan in the coming years,” said an official spokesperson.