The recent gujarat High Court order mandating that all four-wheelers registered in the state shift to natural gas within a year will be a tough one for car owners in the state.It'll also hit entrepreneurs who have set up petrol pumps across Gujarat. While the court order hopes to rein in vehicular pollution, existing petrol pumps in the state will have to get hooked to the gas pipeline. Besides, does the state have enough companies that can install CNG kits in cars and ensure that they do not leak? That could be critical to the lives of millions of Gujaratis. That said, Gujarat is the only state that can shift to natural gas quickly. That's because it already has a gas pipeline network of close to 5,000 kilometres in place. Gujarat State Petronet has a 1,500-kilometre pipeline, Gujarat Gas Company 2,700 kilometres and GAIL 350 kilometres. Another 320 kilometres is currently under construction. Being close to the sources of gas supply also helps.Strictly BusinessAeromexico, Mexico's largest airline, has placed an $11-billion order with Boeing for asmany as 90 737- 8 Max and eight 787-9 Dreamliner aeroplanes. This is by far the biggest aircraft investment by a Mexican airline.(This story was published in Businessworld Issue Dated 06-08-2012)
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The government and the Opposition were on course to a prolonged confrontation over the CAG report on coal allocation on 21 August, with NDA demanding resignation of Prime Minister Manmohan Singh who said satisfactory answers could be given to all issues if a debate was allowed."We are ready for any debate," Singh told reporters after Parliament was adjourned for the day because of the uproar created by the Opposition which was demanding his resignation."We can give satisfactory answers to all issues being raised," the Prime Minister said.Earlier, the Opposition stalled both Houses of Parliament, demanding the Prime Minister's resignation over the irregularities detected by CAG in the allocation of coal blocks between 2005 and 2009 when Singh held the Coal portfolio.Hitting out at BJP, Parliamentary affairs minister Pawan Kumar Bansal said, "What was the stand of BJP chief ministers when coal block allocation took place... BJP was also one of the parties..."People must know the difference between truth and untruth, between myth and reality, between narrow party politics and critical economy. People ought to know it and then only they would know what was their (BJP) role, even in the matter of allocation of coal blocks," he said.Minister of state in the Prime Minister's Office (PMO) V Narayanasamy, two BJP-ruled states - Rajasthan under chief minister Vasundhara Raje and Chhattisgarh under chief minister Raman Singh - besides West Bengal under the Left Front government, had earlier written to the central government opposing the auction of coal blocks.The minister further said that the states were kept in the loop in all coal block allocations as chief secretaries of the coal-bearing states were part of the screening committee, which included coal and power secretaries.The CAG report tabled in Parliament on 17 August stated that there has been an estimated loss of Rs 1.86 lakh crore due to coal block allocation without auction.The Government rejected demand for Singh's resignation as "preposterous" and accused the Opposition of "trying to make an issue out of nothing" but the BJP said it will not relent till its demand is met.Government sought to turn the tables on the Opposition, saying the allocation was made on the basis of recommendations of state governments ruled by non-UPA parties.The CAG report, which has estimated loss of Rs 1.86 lakh crore due to coal block allocation without allocation between 2005 and 2009, rocked Parliament with a determined Opposition stalling proceedings by demanding Singh's resignation as he held the Coal portfolio during that period.The three key CAG reports which were tabled in Parliament on 17 August accused the government of allocating coal blocks, power projects and land for Delhi's flagship airport at a fraction of market prices, potentially costing the exchequer tens of billions of dollars in lost revenues.The much-awaited CAG report on coal block allotment said private firms are likely to gain Rs 1.86 lakh crore from coal blocks that were allocated to them on nomination basis instead of competitive biddingThe audit report on Delhi airport slams the levy of development fee on passengers and says the civil aviation ministry violated the bid conditions for the benefit of GMR-led DIAL. The consortium was granted rights for commercial use of 240 acres of land worth Rs 24,000 crore against an equity infusion into the project of just about a tenth - Rs 2,450 crore, This, when the consortium expected to generate revenue of Rs 88,337 crore for itself.The third CAG report flays post-bid concessions to Reliance Power and says the Anil Ambani-led firm got undue benefit of Rs 29,033 crore when the government allowed use of surplus coal from blocks alloted to Sasan power plant for its other projects. (Read: Reliance Power Unduly Gained)The Opposition, Bharatiya Janata Party, demanded an immediate explanation from the beleaguered government of Prime Minister Manmohan Singh, particularly about one report that suggested private companies made windfall gains of about $33 billion (Rs 1.86 lakh crore) because of the underpriced sale of coal fields.The Lok Sabha could not transact any business because of the unruly scenes, which first resulted in adjournment till noon and then for the day.The Rajya Sabha could function only to allow the unanimous election of Congress leader P J Kurien as Deputy Chairman of the House before it was adjourned for the day amid uproar.Singh later said the government is ready for any debate and give satisfactory answers to all issues raised."We are ready for any debate," he told reporters, adding "We can give satisfactory answers to all issues being raised."Parliamentary Affairs Minister Pawan Kumar Bansal termed as "preposterous and baseless" the opposition demand."Let them come for a discussion... It is not right on their part. They know that there is nothing. Still they are trying to create a situation on an issue which is not there," he told reporters outside Parliament House.
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Suzlon Energy, the world's fifth largest wind turbine maker, has raised $281 million in short-term loans to repay holders of its foreign convertible bonds that mature on 27 July' 2012, IFR reported.The company has been under pressure for the last few years as global turbine sales slowed and its huge borrowings for expansion started to hurt.It signed on Monday a 18-month loan facility with 11 lenders, including ICICI Bank, State Bank of India, Bank of Baroda, Central Bank of India and Indian Overseas Bank, IFR, a Thomson Reuters publication, said on Wednesday.The all-in cost of the dollar loan is likely to be 325-350 basis points over Libor, IFR said. Suzlon declined comment.Last month, the wind turbine maker said it was in talks with banks to raise $300 million to repay bondholders who had agreed to extend the deadline by 45 days to July 27.The delay in raising funds for repayment had worried investors, causing an erosion of more than a fifth of Suzlon's market value in the last three months.Suzlon's foreign currency bonds maturing this year have conversion prices of Rs 76.68 and Rs 97.26 per share, well above its current share price, making them unattractive for bondholders to convert into shares.Suzlon has to repay another $209 million of foreign bonds in October.Last month, Suzlon said it would sell stake in its China manufacturing unit for $60 million. The company aims to raise up to $200 million by selling some 'non-critical' assets in the current fiscal year.Shares of Suzlon, which has a market capitalisation of about $560 million, were trading 2 per cent lower at 17.20 rupees at 0934 GMT in a Mumbai market that was 0.41 per cent lower.(Reuters)
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After two rounds of rate cuts last month, petrol price was hiked by 70 paise per litre on 23 July on firming international oil rates.Petrol in Delhi will cost Rs 68.48 per litre with effect from midnight tonight as compared to Rs 67.78 a litre now, state-owned oil companies announced on 23 July.The marginal hike in rate follows reductions last month -- Rs 2.02 per litre on June 3 and Rs 2.46 a litre on June 29. The twin price cuts followed the massive Rs 7.54 per litre increase in rates, the biggest in the history, effected in May.Today's increase was "necessitated due to increasing international oil prices and movement in INR-USD exchange rate," Indian Oil Corp, the nation's largest fuel retailer, said in a statement.Average price of Indian basket of crude is $101.28 per barrel while international petrol price is $111.59 a barrel. The Rupee-USD exchange rate is around Rs 55.36 to a dollar."At these levels, the oil companies are incurring losses of about Rs 1.41 per litre on petrol sales in the domestic market. However, as the price movement is quite volatile, it has been decided that an increase of Rs 0.70 per litre ..," it said.In Mumbai, petrol price has raised by Rs 0.88 to Rs 74.24 per litre, while it will cost Rs 73.61 a litre in Kolkata from tomorrow compared to Rs 72.74 per litre currently. Chennai saw a hike of Rs 0.89 per litre in price to Rs 73.16 a litre. State-owned oil firms have now abandoned the practice of revising rates of petrol on 1st and 16th of every month and from now on will do so on a random date so as to deter petrol pump dealers building positions.Petrol pumps at some places run dry as owners stop taking supplies from companies if a reduction in price is anticipated. Similarly, if an increase in rate is expected, pump dealers start hoarding supplies.IOC said the three state-owned oil marketing firms are projected to lose a record Rs 160,000 crore in revenue on sale of diesel, domestic LPG and kerosene, whose rates have not been revised in over a year now.The price hike was necessitated as international rate for gasoline, against which domestic petrol prices are benchmarked, has risen from $106.93 a barrel at the time of last reduction to $111.59 per barrel.Value of rupee against the US dollar has also been a big dampener. Rupee has devalued to Rs 55.36 to a US dollar from Rs 54.96 to a US dollar, making imports costlier.IOC said the company had lost Rs 1,053 crore during current fiscal on not being able to raise petrol rates in line with the cost in the first two months of current fiscal.For industry (IOC plus Bharat Petroleum and Hindustan Petroleum) the loss comes to Rs 2,323 crore on a commodity whose pricing was freed by the government in June 2010."In addition, oil marketing companies are suffering high level of revenue losses on the three sensitive petroleum products, namely diesel, kerosene and cooking gas (LPG)," IOC said in the statement.Oil firms are losing Rs 10.01 a litre on diesel, Rs 27.20 per litre on kerosene and Rs 319 per domestic LPG cylinder."At these rates, it is estimated that under-recovery (or revenue loss) on sale of sensitive products during 2012-13 shall be around Rs 86,000 crore (for IOC) and Rs 160,000 crore for the industry," it added.(PTI)
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Essar Oil Ltd said on 23 July it has tied up Rs 5,000 crore loan to meet most of its Rs 6,169 crore sales tax dues to the Gujarat government."Essar Oil is confident that with this facility tied up it will be in a position to meet its entire payment obligations," the company said in a press statement. "A new credit facility from domestic banks to provide a credit line of up to Rs 5,000 crore to meet its sales tax liability of Rs 6,169 crore" has been tied up, it said."The company continues to pursue the matter of repayment schedule of its sales tax liability both legally and with the Gujarat state government," the statement said.The Supreme Court had in January said Essar Oil was not entitled to defer payment of sales tax, an incentive offered by the Gujarat government for the company to start production at its Vadinar refinery in the state by August 15, 2003.Since the deadline was missed, the company lost right to defer sales tax payment by 17 years.To recover dues, the Gujarat government had on July 9 attached three bank accounts of Essar Oil in Jamnagar. There after the company approached the Supreme Court which asked Essar Oil to deposit Rs 1,000 crore out of the sales tax dues by July 31.Essar Oil MD & CEO Lalit Gupta said: "The new loan facility will enable Essar Oil to meet its sales tax liability. Our lenders have continued to be very supportive of the business, which remains well placed given the demand for high value fuels both in India and internationally."(Reuters)
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Refiner Essar Oil has tied up a loan facility for 50 billion rupees with local lender State Bank of India to help settle a large sales tax liability, it said on 23 July' 2012.Essar Oil, 87 per cent-owned by London-listed Essar Energy, has been negotiating with the government of Gujarat for more time to pay $1.2 billion in sales taxes.Essar operates its 360,000 barrel-per-day refinery at Vadinar in that state.The Supreme Court directed the company last week to pay the Gujarat government 10 billion rupees by July 30, while lifting a freeze on the company's bank accounts enforced by the tax authorities.Essar said it hopes to meet its entire tax obligations with the new loan facility and that it is also pursuing legal options to seek more time to repay the tax dues.The company did not detail the terms of the loan.At 11.53 am (0623 GMT), Essar Oil shares were trading 0.55 per cent down at 54.70 rupees in a weak Mumbai market.(Reuters)
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Ever since Mukesh and Nita Ambani built themselves a new home — Antilia, on Mumbai's posh Altamount Road — the discussion on how India's rich and powerful live has never been the same again. Antilia has wowed those who aspire for the good things in life. For those who analyse poverty and its causes, such as writer Arundhati Roy, for whom Antilia is a symbol of opulence, mocking at the 800 million poor of India. But both protagonists and antagonists will agree that Antilia has redefined the meaning of a super-rich home. With its 27 floors, nine lifts, gymnasiums, six floors of parking and a staff of 600 running the show, the $1.7 billion home has set a new international record for the most expensive personal address.Has this set off a new scramble among the super rich? Perhaps. According to Anuj Puri, property broking firm Jones Lang Lasalle's country head, Kingfisher brand promoter Vijay Mallya has levelled his 4.5 acre ancestral home on Vittal Mallya Road in Bangalore to make way for his 82-apartment ‘White House'. Mallya himself will occupy an acre-size penthouse on the 33rd and 34th floors. Another broker who helped Mallya ink a number of foreign deals said the tycoon-in-trouble has negotiated deals for 25 or so top-line luxury chalets in resort destinations as far flung as Goa, south of France and Barcelona. These are kept in perfect readiness for guests, though Mallya himself may come on a visit maybe just once a year.Why do the rich and powerful build homes and offices that are much larger than what they will ever use? Homes and offices are not just functional hubs but also symbols of their owners' station in life. For many, it is to tell the world they have arrived. For others, it is an indication of the power and strength they wield in the corporate world.Subrata Roy Sahara, chairman of the Lucknow-headquartered Sahara Group, owns a white marble palace in a 375-acre estate that has a 2 sq. km. artificial lake and a 5,000-seater auditorium. He probably also holds the record for the largest corporate office in the world. An actor who visited him in Lucknow said it was "the size of a football field", designed to tire you out before you got to his table. The head of a television channel, who was made to wait in an anteroom, described the décor as the most opulent he had even seen, with mannequins of damsels serving as coat hangers. That was precisely the purpose: to overawe the visitor before he meets the ‘Saharashri'.This penchant among the super rich for displaying their wealth through opulent homes and offices serves more than one more purpose. It has created a micro-market of super luxury homes in cities such as Mumbai, Delhi and Bangalore for which the aspiring rich make a beeline. Even as brokers and media writers predict the downfall of the luxury property market because of super-inflated prices, the super-luxury segment remains unshaken, what with a trickle for supply and a large queue waiting to get in.How else does one explain the steady rise in prices in this niche segment? Sample this: The Indiabulls project at Worli called ‘Blu' — what used to be Bharat Mills — has recently opened bookings at a rack rate of Rs 45,000 a sq.ft; translated, this means a four-bedroom flat in the two-tower complex will cost Rs 24 crore. For celebrity value, the occupants of the 10-acre complex will rub shoulders with Sameer Gehlaut, the young chairman of the Indiabulls Group, who is building a tower in the complex as his residence.It is the principle laid down in Lutyens' Delhi for years now. In an area of around 2,800 hectares — about 2 per cent of Delhi — are some of the most lavish 1,000 or so bungalows of the country. Most of them are government-owned and occupied by ministers and parliamentarians. About 65 are privately owned, spread over Prithviraj Road, Amrita Shergill Marg and Aurangzeb Road, by the who's who of industry, from Sunil Mittal and L.N. Mittal to the Jindal brothers. Declared a heritage zone, the supply is limited. If a home changes hands, it will be upwards of Rs 400 crore.gurbir(dot)singh(at)abp(dot)in(This story was published in Businessworld Issue Dated 30-07-2012)
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A panel of Indian officials, including those from the upstream regulator, have declared three gas discoveries in Reliance Industries KG D6 block as commercial, subject to certain conditions, an oil ministry official told reporters.Reliance's budgeted expenditure on key gas fields from the D6 block for the three fiscal years 2010/11, 2011/12, and 2012/13 has also been approved, with some conditions, the official said.India's oil ministry had asked Reliance and partner BP to share all records and accounts for the D6 block operated by them, off India's east coast, with the federal auditor, or risk deadlock on development crucial to step falling gas output.(Reuters)
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