SECTORS ALERT (14.09.2012)
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SECTORS ALERT (14.09.2012)
* AUTOMOBILES: Industry does not see the hike in diesel prices as clarity on government's fuel policy. Volkswagen is developing lower capacity engines and is considering a compact sedan in India to avail the lower tax rate on sub-4 metre cars.
* AVIATION: Around 14 foreign airlines plan to move the high court against a hike in airport charges at the Indira Gandhi International Airport .
* ECONOMY: Planning Commission Deputy Chairman Montek Singh Ahluwalia has said the government needs to take "corrective steps" if India is to achieve 8.2% annual GDP growth during the 12th Five-Year Plan (2012-17). Prime Minister's Economic Advisory Council Chairman C. Rangarajan said the government's decision to hike diesel prices by 5 rupees per litre has given the Reserve Bank of India some window to act on the monetary policy front.
* ENERGY: Government has said the hike in diesel price will cut state-owned oil companies' revenue loss by 203 bln rupees. The Supreme Court refused to stay the loading of fuel for the nuclear power plant at Kudankulam.
* ETHANOL: Group of Ministers on Ethanol will meet again on Sep 20 to discuss and possibly arrive at a decision on pricing formula for buying ethanol for blending with petrol.
* FINANCE: SBI Cards, the second largest credit card issuer in the country, plans to wipe out its accumulated losses over the next three-to-four years.
* INDUSTRY: The Centre has asked state governments to create land banks for setting up new manufacturing zones to boost industrial growth and job creation.
* LABOUR: The labour ministry will soon prepare a Cabinet note for amending a bill to link minimum wages of factory workers to the retail inflation rate, and enhance penalties on companies flouting the rules.
* LAW: Justice Altamas Kabir has been appointed as the new Chief Justice of India and will assume duties on Sep 29.
* MINING: Strategic Energy Technology Systems, a joint venture of the Tata Group and South Africa 's Sasol Synfuels International, said it was allocated a coal block for its coal-to-liquid project in a structured process based on pre-determined criteria. The government will take a decision on the fate of six coal blocks, with reserves of 2.2 bln tn held by 14 firms, including TATA STEEL, HINDALCO, TATA POWER, and RELIANCE POWER.
* PHARMACEUTICALS: All mergers and acquisitions in the sector may be scrutinized by the Competition Commission of India in a bid to avoid any unfair market practice and pricing that could adversely affect the consumer.
* POLICY: The RBI is examining the recommendations of the Malegam Committee on co-operative banks and will soon implement them.
* POWER: The Central Board of Excise and Customs has notified grant of "mega power status" to a 500 MW unit of NTPC at Vindhyachal in Madhya Pradesh and a 382.5 MW unit of TORRENT POWER'S Unosugen project in Gujarat . The Rajasthan High Court has rejected the petition of 16 captive power plant operators in the state seeking a waiver on a penalty imposed by the Rajasthan State Electricity Commission in 2007 for not fulfilling their renewable energy obligations.
* RATING: The RBI has accredited SME Rating Agency of India for risk weighting of banks looking to raise funds.
* REGULATORY: The Securities and Exchange Board of India Thursday implemented steps, including additional levy on investors for catering to smaller cities, and broadening the definition of distributors, in order to boost the mutual fund industry. The Insurance Regulatory and Development Authority is looking to make insurance policies more investor-friendly by introducing tax exemptions on insurance policies. The finance ministry is examining a proposal to permit unlisted Indian companies to raise money from overseas stock exchanges.
* RETAIL: The launch of the global coffeehouse brand in India , planned by September, is likely to be delayed.
* SHIPPING: The shipping ministry has asked the Jawaharlal Nehru Port Trust to either sign a long-pending deal with the Port of Singapore Authority or to scrap it altogether.
* TELECOM: The Department of Telecommunications has directed seven service providers, including RELIANCE COMMUNICATIONS, BHARTI AIRTEL, IDEA CELLULAR, and Vodafone India, to halt functioning of 11 base transmitting stations or towers in Mumbai as they did not comply with the new radiation norms. Russia 's Sistema JSFC is close to acquiring controlling stake in Aircel Communications for around $3 bln.
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