FREE SECTORS ALERT: 10.10.2012

[rupeedesk]

* AUTOMOBILES: Society of Indian Automobile Manufacturers said the cut in export duty drawback rates would impact profit margins of automakers. JBM Group has acquired the entire 50% stake of its partner in Thai Summit Neel Auto for an undisclosed amount.

* AVIATION: Government has given unconditional guarantee to Air India 's proposed 74-bln-rupee non-convertible debenture issue. Aviation Minister Ajit Singh has said the government will ask German airline Lufthansa to start mentoring national carrier Air India for Star Alliance membership in lieu of the many facilities provided by the government to it.

* BANKING: The finance ministry will urge the Reserve Bank of India to issue licences for new banks without waiting for changes in the Banking Regulation Act, saying the regulator has sufficient powers under the Companies Act to discipline errant lenders.

* CONSUMER GOODS: Procter & Gamble plans to invest 15.40 bln rupees in its Indian arm P&G Home Products.

* DIVESTMENT: The articles of association of NMDC, STEEL AUTHORITY OF INDIA, NTPC, and COAL INDIA have been amended to make it easy for the Centre to consider buyback as one of the alternative strategies for disinvestment.

* ENERGY: Oil minister has said India 's crude oil output in 2012-13 (Apr-Mar) is seen 41.12 mln tn, up 8% on year.

* OIL AND GAS: The oil ministry has ruled out any further increase in price of diesel in the near future.

* POWER: Government has notified the scheme for financial restructuring of state-owned power distribution companies. Prime Minister Manmohan Singh has said the government will provide 24x7 electricity to all households at affordable rates, and expand renewable energy generation to 55,000 MW in the next five years.

    -The power ministry has said electricity firms facing coal crunch can sign fuel supply agreements with COAL INDIA even if there are no power purchase agreements with distribution companies.

* RETAIL: US company Walmart is planning several partnerships with small and mid-level Indian suppliers across product categories to create a big list of private label brands that will be priced 10-15% lower than established products and brands.

* TAXATION: Some panel has said it favours taxing indirect asset transfer prospectively. Retrospective tax should be levied only in exceptional cases and to correct legal errors.

By RUPEE DESK

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