DAILY SECTORS NEWS ALERT -4.JUN.2012
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SECTORS ALERT (04.06.2012)
* AUTOMOBILE: Hyundai Motor India to set up a diesel engine manufacturing plant in the country.
* AVIATION: The government has approved a uniform pay scale for all employees of the merged Air India , including the staff of the erstwhile Indian
Airlines. Aviation ministry has called for abolition of service tax on air tickets and reduction in sales tax on aviation fuel to a uniform 4% from an average
25%. Air India may still have to fly on international routes on which it is not making money at the moment.
* COAL: The government is mulling making it mandatory for coal miners to set aside for locals an amount equivalent to the royalty paid to states.
* CORPORATE: Promoters of the Essar Group, the Ruia's, have begun implementing a plan to reduce the presence of family members on the companies' boards under their control and make professionals in charge of day-to-day management. BG is facing aggressive bargaining in the sale of its 65% stake in GUJARAT GAS CO, with Gujarat State Petroleum offering to pay less than its original bid. A probe by the Serious Fraud Investigation Office into Reebok India suggests the 8.7-bln-rupee fraud amount appeared "exaggerated". Malaysia-based Navis Capital Partners in talks with a city-based hotelier to sell Nirula's Corner House Pvt Ltd.
* DEFENCE: India and US will look to broaden defence ties during the latter's Defence Secretary Leon Panetta's visit this week.
* EXPORTS: Labour-intensive exports sectors may get an extension on the interest subsidy scheme as part of the supplement to the foreign trade policy.
* GOVERNANCE: The amendment to retrospectively tax indirect transfer of Indian assets through deals executed overseas is likely to spare those deals where the Indian assets account for less than half the total deal size. Government set to remove the legal hurdle in the entry of banks into commodity futures trading.
* INDUSTRY: The government has announced setting up of an investment-tracking mechanism to expedite implementation of big-ticket projects.
* INFORMATION TECHNOLOGY: The government has decided to do away with complex multi-level system of tax deduction at source for software companies with effect from Jul 1.
* INFRASTRUCTURE: Two National Highways Authority of India-projects awarded in 2011 have been terminated as they failed to attain financial closure.
* OIL AND GAS: State-owned oil companies have denied making huge profits and asserted that government subsidy helped them to report a net profit of less
than 1% of their sales in 2011-12 (Apr-Mar).
* POWER: Coal shortage in most thermal power plants has worsened during the past one year, said the Central Electricity Authority.
* PRIVATE EQUITY: Fidelity Growth Partners India is looking to raise an India-focused fund with $250 mln corpus.
* REAL ESTATE: Around 50,000-acre land locked up with ports in major cities could be soon available for commercial development.
* REGULATORY: Reserve Bank of India Deputy Governor Subir Gokarn has said slowing economic growth and decline in crude oil prices would give the central bank room to cut policy rates
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