Indian Economy - News & Updates - Archive

[Neo]

'We want to promote trade ties with India and China': Zardari offers India to sign nuclear-free South Asia pact ​

ISLAMABAD (November 23 2008): President Asif Ali Zardari on Saturday offered India to sign nuclear-free South Asia treaty to remove the 'Sword of Damocles' hanging over the entire region saying that Pakistan was against use of nuclear weapons and India should also come forward to sign the treaty.

"I was against the nuclear warfare and don't appreciate it as we don't want to get into that position where we use nuclear weapons," he said in his video conference address to the Leadership Conference organised by Indian daily Hindustan Times at New Delhi.

Zardari said that Pakistan always advocated signing of nuclear-free South Asia treaty to give people of this region a complete peace of mind and sense of security. To a question, Zardari said he was sure that he can get parliament support on the nuclear free pact. He asked the audience whether India too can move forward in this direction?

He said despite differences, Pakistan and India have a great future together and no country should feel threatened from the other. "We have to take Pak-India relationship to a new level, where we can ensure a better future for our people," he added.

"I do not feel threatened by India and India should not feel threatened from us, he said, adding that the two countries should now learn to live with peace and enhance co-operation in trade, economy and other sectors. "We believe in trade not aid. We want to promote trade relations with our strong neighbours China and India," Zardari said.

Both Pakistan and India can together become trading powers like Europe and could also work together on the economic front, he said, adding that the two countries have huge potential in trade and economy and once it was utilised it will benefit both the countries and take them towards new heights. "In spite of our disputes, tussle and tension, we have a great future together," he maintained.

He said he would admit that the two countries have challenges but stressed that there was need for exploring the opportunities that exist between the two countries. Today we have a parliament which is already pre-agreed upon a friendly relationship with India, Zardari added.

Responding to a question regarding terrorism and extremism, he said he himself was a victim of terrorism as he lost his wife (Benazir Bhutto) at the hands of terrorists. "We are facing the challenge of terrorism and extremism and I am sure that with the help of the world we will get rid of this menace," he said.

The President said both Pakistan and India were facing more challenges from inside than outside and if both countries join hands these challenges will prove little. "In every Pakistani there is little Indian and in every Indian there is a little Pakistani," Zardari said.

To a question, Zardari said the bilateral ties remained strained during the cold war, but he hoped that the people of the two countries could now move together for a bright future. To another question regarding his offer to former President Pervez Musharraf to join the government, Zardari said: "It is the parliament which can decide."

In response to another question about the country's current economic situation and his plans to improve it, he said he wished to bring out the real strength of Pakistan. He said Pakistan also wants to explore India's huge market of over one billion people and another 1.2 billion in China, and take advantage of the region and take my country's development forward.

President Zardari said he has brought a message of peace and love from Pakistan, as he was also the bearer of the legacy of late Zulfiqar Ali Bhutto and Benazir Bhutto. Bhutto was the architect of the first Pakistan-India treaty - the Simla agreement, he said, adding that he also mentioned the treaty signed between late Benazir Bhutto and Indian Prime Minister Rajiv Gandhi.

Zardari stressed the need to change the current Pakistan-India mindset which has kept the two nations away from each other. When asked about joint Pakistan-India operation to fight sea-piracy, he said that if he was invited he will definitely join it and do whatever he and his country can.

He urged people of India and Pakistan to initiate a dialogue for resolving the long-standing issue of Kashmir. He said after the dialogue between the two people, the politicians should suggest a solution which can render justice to the people of Kashmir. Asked about the long delay in getting a visa, he proposed adopting a methodology that uses an e-card instead of a passport, to ease the way the two people cross into each other's territory.

He said he looked forward to interacting with US President-elect Barack Obama to discuss entire bilateral issues and not just terrorism. Asked whether he missed his late wife, Zardari said: "spiritually I feel her with me all the time. She is guiding us, not just me, but all the political forces in the country."

 

[nitesh]

Rs 5 cut in petrol price, Rs 3 in diesel by Dec-end- Oil & Gas-Energy-News By Industry-News-The Economic Times

Rs 5 cut in petrol price, Rs 3 in diesel by Dec-end
25 Nov 2008, 1751 hrs IST, PTI

NEW DELHI: The government is likely to cut petrol price by Rs 5 a litre and diesel by Rs 3 per litre after Assembly elections in six states are completed on December 24.

"Crude has fallen from all-time high of $147 per barrel to around $50 now. Naturally, there are expectations that petrol and diesel prices should be reduced and we will do that," Petroleum Minister Murli Deora told reporters in New Delhi.

The prices would be cut before December-end.

The government had in June raised petrol price by Rs 5 a litre, diesel by Rs 3 per litre and domestic LPG by Rs 50 per cylinder as crude oil prices
had climbed to record highs. The hike is now expected to be rolled back.

"We have to reduce prices but it will happen after assembly elections," he said.

As a result of fall in the international oil prices, state-run Indian Oil [Get Quote], Bharat Petroleum and Hindustan Petroleum started making profit on sale of petrol from November 1 and on diesel from November 15.

Petroleum Secretary RS Pandey said though margins on petrol and diesel had turned positive, the companies were still losing money on domestic LPG and kerosene.

The three firms lose Rs 22.40 a litre on kerosene and Rs 343.49 per LPG cylinder, which together work out to Rs 80 crore (Rs 800 million) per day.

Pandey said the Cabinet Committee on Economic Affairs would be informed of the factual position and directions sought.

The three companies suffered a net loss of over Rs 14,000 crore (Rs 140 billion) in the first-half of the current fiscal and ways and means of making it up were to be worked on, he said.

"As per our calculations, the oil companies will end the fiscal with a revenue loss on fuel sales of Rs 110,000 crore (Rs 1,100 billion).

How to make up for this will also have to be decided by the CCEA," he added.

 

[nitesh]

Monorail in Mumbai from Nov 29-Mumbai-Cities-The Times of India

Monorail in Mumbai from Nov 29
25 Nov 2008, 1054 hrs IST, PTI


MUMBAI: Come November 29 Mumbaikars' dream of smooth commuting will get a major boost with the laying of the foundation stone for India's first Monorail project at the metropolis.

"Prime Minister Manmohan Signh is likely to lay the foundation stone on November 29. The venue will be Mahatma Gandhi Ground in Chembur," said Dilip Kawathkar, joint project director (PR) of Mumbai Metropolitan Regional Development Authority (MMRDA).

The 19.54-km-long monorail, which will connect south Mumbai to the eastern suburbs (Jacob Circle to Chembur via Wadala), is expected to be completed by May 2011, Kawathkar said.

Malaysian-based Scomi Engineering in collaboration with Larsen & Toubro will execute the Rs2,4600cr project.

"The route will have 18 stations and each train will have four bogies. During peak hours, around 10,000 to 15,000 passengers are expected to travel per hour. It will have an average speed of 80 km per hour.

"A car depot facility spread across eight hectares will come up at Wadala," Kawathkar said.

MMRDA has also cleared the proposal for a nine-km monorail connecting Banra-Kurla Complex and Bandra railway station in Central Mumbai in the second week of October.

 

[Bushroda]

Automakers refuel on India's consumers
By Geoff Hiscock
For CNN
November 14, 2008

(CNN) -- When Renault unleashed its Formula 1 race cars and drivers on the hallowed ground of New Delhi's Rajpath boulevard on November 9 for a display of Grand Prix razzle-dazzle, the car-loving fans in the Indian capital went wild.

A Renault Formula 1 car performs during a roadshow
in New Delhi, India, on November 9.

For Renault, it was a branding exercise in what is quickly becoming one of the world's most important hubs for the production, sale and export of small cars.

As car sales slump globally -- down 24 percent in October year-on-year in the United States alone -- auto makers are shifting production to lower-cost locales where they can take advantage of what they hope eventually will be better times ahead.

Renault is just one of many global brands investing heavily in the Indian auto sector, building alliances with domestic manufacturers and setting up state-of-the-art plants that will see India triple its car production to 5 million units within five years.

Honda, Toyota, General Motors, Ford, Volkswagen and Nissan are among those with great expectations for their Indian operations, and between them have around US$6 billion earmarked for expansion.

South Korea's Hyundai has already taken a handy lead in this crowded market, launching its i10 and i20 small cars with India as its production base for exports to Europe.

It recently doubled its capacity at its Chennai plant to 600,000 units a year and is now India's biggest car exporter, shipping a record 26,000 units in October 2008. Hyundai also has about 18 percent of the domestic Indian car market.

Hyundai's great rival is the powerful combination of Japan's Suzuki and domestic partner Maruti, which kicked off the modernization of India's nascent car industry in late 1983 with the Maruti 800.

Until then, India's few car buyers were restricted to locally made clones of outdated European cars such as the Morris Oxford (the platform for Hindustan Motors' Ambassador) and the Fiat 1100 (platform for Premier Motors' Padmini), plus a handful of imports for the favored few.

There was no culture of technological innovation and little chance of car ownership for the masses until the Maruti 800 came along.

Based on an earlier Suzuki Alto model, the 0.8 liter-engine Maruti minicar revolutionized car ownership in India and has dominated the market ever since. Even today, with the advent of many new competitors, Maruti has 55 percent of the passenger car market, and has set itself the ambitious goal of 1 million domestic sales across its 11-model range by 2010-11, up from 712,000 in 2007-08.

Later in November it will launch its 1-liter global car, known in India as the A-Star, and will begin exports of the car to Europe in early 2009. Maruti's parent Suzuki, which now has 54 percent ownership of Maruti Suzuki India Ltd, has big plans for its Indian operations, given what it says is a global trend to small cars.

Even with the slowdown, by next year as much as a third of Suzuki's worldwide sales could come from India.

Other Japanese makers share Suzuki's enthusiasm for India's auto potential. "Our faith in India's growth story remains intact," Honda Motors CEO Takeo Fukui said when he opened a new plant in Rajasthan in September. This plant eventually will make the Honda Jazz, another small car destined for export to Europe by mid-2009.

Toyota, through its joint venture Toyota Kirloskar Motor, aims to lift its Indian sales from about 55,000 last year to 400,000 by 2015 for a 10 percent market share. To help meet that ambitious plan, it will open a new small-car plant by late 2010 near Bangalore in India's south.

General Motors has a new 140,000-unit car plant near the automotive production hub of Pune that lifts its annual capacity to 225,000 units, and is spending another US$200 million on a new engine plant.

Likewise, VW is spending $300 million on a new Pune plant that will begin production in 2009, with an eventual capacity of 300,000 small cars a year. Ford, too, is spending $500 million to increase its engine and vehicle production at Chennai to 200,000 units by 2010.

Nissan, in alliance with key shareholder Renault, has a joint venture with local producer Mahindra & Mahindra to make the Logan passenger car.

Nissan, which says it aims to sell 200,000 cars a year in India by 2012, also is investing US$1 billion with Renault in a plant at Chennai in India's south, which will turn out 400,000 cars a year when it hits full capacity. The first cars, for export and local sale, are due in 2010.

The Renault-Nissan alliance has a separate joint venture with India's two-wheel specialist Bajaj Auto to produce an ultra light car (ULC) at Chakan, near Pune. Renault spokesman Ashish Sinharoy told CNN.com that construction work on the 400,000-unit plant probably would start in the first quarter of 2009.

"We intend to have the first cars roll out in 2011, as per the schedule," he said. The ULC is designed to compete with other low-cost cars in India, including Tata Motor's long-awaited Nano "people's car."

The Nano, due to go on sale by year's end as the world's cheapest car at about US$2,500, is pitched at a whole new car ownership market -- people who now aspire only to buy a two-wheel motor scooter or motor cycle. That prompted Bajaj to promise its own four-wheel challenge.

At the auto industry's annual convention in New Delhi recently, Commerce Minister Kamal Nath termed the current slowdown a "passing phase" and said auto exports should be worth $25 billion "in the next decade."

Despite Nath's optimism, India is still a small player globally. It produced just 1.76 million passenger cars and 545,000 commercial vehicles in the year to March 31, 2008, of which about 218,000 cars and 60,000 trucks were exported.

That puts it well behind Japan (11.6 million passenger and commercial vehicles in 2007), the U.S. (10.8 million), China (8.8 million), Germany (6.2 million) and South Korea (4.1 million). France, Brazil, Spain and Canada also are bigger producers than India.

But the momentum is with India. It is adding capacity faster than the developed markets, and by 2014-15 could produce 5 million cars, including a million for export

Geoff Hiscock writes on Indian business and is the author of "India's Global Wealth Club" (2007) and "India's Store Wars" (2008), both published by John Wiley & Sons.

 

[Chanakya.10]

ONGC acquisition of Imperial "well on track"
ONGC acquisition of Imperial "well on-track"
Press Trust of India
Wednesday, November 26, 2008 (New Delhi)

State-run Oil and Natural Gas Corp on Wednesday said its $2.1 billion acquisition of UK-listed Imperial Energy Corp Plc was "well on-track" and the fall in global oil prices would not be a constraint in the buyout.
"There is no need to get unduly concerned about the deal. It is on track and we are in the process (of acquiring Imperial)," ONGC Chairman and Managing Director R S Sharma told reporters at the Economic Editors' Conference in New Delhi.
He, however, did not say by when the acquisition would be completed. "The deal is in process and is on track."
ONGC Videsh Ltd (OVL), the overseas arm of ONGC, is not revising the 12.50 pounds a share buyout price of Imperial, as it had valued the company's in place 2P (proven and probable) oil and gas reserves at $2.5-3 per barrel. '2P' tag means a 50 per cent likelihood of recovery of the reserves.
Imperial explores for oil in Russia's Siberia region and had the equivalent of 920 million barrels of proven and probable oil reserves as on December 2007, according to an audit by DeGolyer & MacNaughton.
Acquisition of Imperial will cost OVL about 1.4 billion pounds or $2.1 billion at current exchange rates. There have been speculations that OVL may revise its bid price as crude oil prices have fallen from $115-120 a barrel, when it made the offer in August to around $50 per barrel currently.
OVL has time till December 9 to make an offer to acquire all outstanding shares of Imperial. The offer would remain open for 28 days and OVL would take another 14 days thereafter to make payments to shareholders tendering their shares.
Sharma said all of the funding for the acquisition was in place. ONGC is lending most of the money to OVL at 6 per cent interest rate, while $one billion has been tied-up in bridge loan.
ONGC Videsh Ltd plans to delist Imperial from the London Stock Exchange if 90 per cent of shareholders tender their shares. "OVL wants Imperial to be delisted. It may re-list the company if and when it needs money," a source said.
OVL, earlier this month won the Russian government's approval for taking over Imperial, which has assets in Tomsk region of western Siberia.
Russia's Federal Anti-Monopoly Service (FAS) granted approval for the takeover in respect of ownership of Russian entities by entities controlled by a foreign government. The Government of India holds 74 per cent stake in ONGC.
Prior to this, FAS had cleared the acquisition under anti-monopoly regulations and stated that Imperial's assets were non-strategic.
Since July, Imperial has been producing 11,000 barrels of oil per day (bpd). Output will reach 25,000 bpd by fiscal-end with 18 wells coming on stream. Production would rise to 35,000 bpd (about 1.75 million tons) by 2009-end.
The company also plans to start commercialising gas from 2010.
Imperial board, on August 26, had agreed to the takeover bid by OVL's wholly owned subsidiary, Jarpeno Ltd.

 

[Neo]

India's economic growth slows to 7.6 percent​

Fr, Nov 28th, 2008

NEW DELHI – India's economy grew at its slowest pace in four years in the third quarter as the global slump took a toll on exports and foreign investment.

Gross domestic product for the July-September period expanded 7.6 percent from a year earlier, down from 7.9 percent in the previous quarter and 9.3 percent in the third quarter of 2007, the government said Friday.

That was the slowest rate since 2004, but slightly above expectations, said Saumitra Chaudhuri, a member of the Prime Minister's Economic Advisory Council and chief economist at the credit rating agency ICRA Ltd., a Moody's affiliate.

"It is slowing, there's little doubt about it," Chaudhuri said.

The decline could ratchet up pressure on India to further cut interest rates in hopes of keeping growth from slipping too fast. Deadly attacks carried out this week by suspected Muslim militants in Mumbai, the country's financial capital, will likely add to the pressure.

The decline comes amid a softening of demand for Indian exports as economies around the world start to wither. Foreign investment, a key driver behind India's economic rise in recent years, has become more scarce, Chaudhuri said.

"If that slows down, the economy will slow down and that's exactly what's happening," Chaudhuri said.

Manufacturing growth continued to decline, falling to 5 percent in the most recent quarter from 9.2 percent a year earlier.

In trade, hotels, transport and communication industries, growth was stable at 10.8 percent .

 

[Neo]

India stock market gains after terrorist attacks​

Friday November 28, 2008

Indian stocks advance after trading resumes in wake of Mumbai terror attacks​

MUMBAI, India (AP) -- India's stock market gained Friday, a day after trading was suspended due to deadly terrorist attacks in the country's financial capital.
The Sensex Index climbed 66 points, or 0.7 percent, to close at 9,092.72. The benchmark opened down more than 1 percent and then fluctuated in and out of positive territory before finishing higher.

Trading on the Bombay Stock Exchange was closed Thursday after suspected Muslim militants staged coordinated attacks across Mumbai, India's financial capital, killing at least 143 people. The exchange is located in Mumbai.

 

[nitesh]

Sensex firm; realty, metal stocks gain- Market News-Stocks-Markets-The Economic Times

Sensex firm; realty, metal stocks gain
1 Dec 2008, 1309 hrs IST, ECONOMICTIMES.COM

MUMBAI: Equities bounced back from day’s low on Monday as some short covering continued in realty and metal stocks. But auto scrips were laggards due to declining sales.

At 12:50 pm, Bombay Stock Exchange’s Sensex was at 9265.64, up 172.92 points or 1.90 per cent. The 30-share index touched a high of 9326.68 and a low of 9152.44.

National Stock Exchange’s Nifty was at 2814.65, up 59.55 points or 2.16 per cent. The broader index hit a high of 2832.85 and a low of 2748.90.

“Coming week may help "break out traders" as the trading range is narrowing down. The prudent ways to trade in such types of market are trade "patiently" according to the major range and trade "aggressively" on the break out or break down. We would like to continue with our analysis of the last week. We were of the view that the bearish consensus is at its peak. If we look at the trading pattern of the last week then one can clearly notice that at the lower boundary of the
trading range 2630/8600 there was not at all impatient behavior from bull traders that generally happens if long positions are deep out money (into big losses) on their positions. If our analysis stands true then we may expect decent up move in the market may be up to 2970/10100 with a minor resistance at 2865/9650 on the dismissal of 2795/9185 on closing basis. The supportings for the market to move higher are positive global cues and likely appreciation of Indian rupee,” said Kotak Securities report.

Sterlite Industries (7.20&#37, Jaiprakash Associates (6.96%), Reliance Communications (5.63%), TCS (5.06%) and ONGC (4.26%) were the top Sensex gainers.

Maruti Suzuki (-4.51%), Tata Power (-2.86%) and Mahindra & Mahindra (-2.82%) were the top losers.

Amongst the sectoral indices, BSE Realty Index was up 3.35 per cent, BSE Metal Index moved 3.26 per cent higher and BSE Oil&gas Index was up 3.21 per cent.

BSE Auto Index was down 2.35 per cent. The slack in demand has been hitting auto industry badly. Shares of auto major, Maruti Suzuki, took a beating Monday after the automaker posted dismal sales for the month of November.

Market breadth was positive on the BSE with 1124 advances and 601 declines.

 

[Flintlock]

What is this? defiance? Is it reflecting the mood of investors?

Or are they simply so unconcerned about these events that it simply failed to register?

 

[nitesh]

^^

Flint this is combination of all. But any way the sensex ended lower taking global queue.

 

[Geromix]

What is this? defiance? Is it reflecting the mood of investors?

Or are they simply so unconcerned about these events that it simply failed to register?

Even in the past after attacks like these the markets have showed great resilience.

The fundamentals of the economy are more important in the long run so i suppose the India Growth Story is intact.

 

[Neo]

Manmohan takes over economy hot seat​

NEW DELHI (December 01 2008): India's economy will now be steered by the man who in 1991 protected it at its most vulnerable moment and then opened it up to the world - Prime Minister Manmohan Singh.

Seen by analysts as an honest but weak leader during his time in the top job, Singh takes over the economy as well as his job as premier, perhaps only temporarily, after choosing finance minister Palaniappan Chidambaram to lead a Home Ministry under fire after last week's Mumbai attacks.

Singh, accustomed to the economy having served as finance minister and central bank governor in the past, takes charge just as the global financial crisis is expected to cut impressive growth averaging 9 percent in the last three years.

"He has great experience in economic management in various capacities," said D.K. Joshi, principal economist at domestic ratings agency Crisil. "This will help in overall economic management in the current scenario." The three-day rampage by gunmen in the financial capital, Mumbai, and rising anger over a string of bomb attacks in other cities, forced the resignation of Home Minister Shivraj Patil, who has been attacked by his critics as ineffectual and aloof.

Singh had already started paying more attention to the economy as the global financial crisis made its presence felt on Asia's third-largest powerhouse, forcing key export markets into recession and freezing credit markets.

He appointed Duvvuri Subbarao, a former finance secretary, as the central bank governor and brought in Raghuram Rajan, a former IMF chief economist, as his adviser.

"I would like to assure each one of you that the government will take all necessary monetary and fiscal policy measures on the domestic front to protect our growth rates," Singh recently told top business leaders.

"On the international front, we are working closely with other countries to ensure co-ordinated policy action and increased development co-operation for the containment of this crisis."

HUMBLE BEGINNINGS:

Born into a poor Sikh family in a part of British-ruled India now in Pakistan, Singh studied by candlelight to win scholarships to Cambridge and Oxford, earning a doctorate with a thesis on the role of exports and free trade in India's economy.

But he has never won an election and sits in the mostly nominated upper house of parliament. He became prime minister by default, when Congress leader Sonia Gandhi turned down the job after leading the party to victory in 2004 elections, fearing her Italian ancestry would be used by Hindu-nationalist opponents to attack the government.

During his stint as finance minister from 1991 to 1996, Singh saved an economy facing a balance of payments crisis and unveiled far-reaching reforms which began opening insular India to the world. As prime minister he has faced criticism for failing to push through more reforms, his government hobbled by opposition from communist allies opposed to greater liberalisation but whom Singh needed for a parliamentary majority. Singh and his party finally stood up to the left over a nuclear energy deal with the United States, mending fences with a regional party, securing an alternative majority and winning a tense vote of confidence last July.

Now the government's chances of re-election at a general election that has to be held by May next year have been undermined by the attacks in Mumbai and the faltering economy. Whether they have been fatally weakened may well depend on the performance of Singh and new Home Minister Chidambaram over the next few months.

 

[nitesh]

Petrol prices cut by Rs 5, diesel by Rs 2 per litre-India Business-Business-The Times of India

Petrol prices cut by Rs 5, diesel by Rs 2 per litre
5 Dec 2008, 1944 hrs IST, PTI


NEW DELHI: The government on Friday announced a Rs 5 and Rs 2 a litre interim cut in petrol and diesel prices, respectively, in a move that will help put the lid on inflation and foster economic growth.

Indicating that further cuts were in the offing, Petroleum Minister Murli Deora told reporters after a meeting of the Cabinet Committee on Political Affairs that today's reduction was an "interim measure" and that the government would continue to watch the global prices of crude oil.

Following the reduction that takes effect midnight tonight, petrol will cost Rs 45.62 a litre and diesel Rs 32.86 in the national capital. There is no change in the prices of LPG (cooking gas) and kerosene.

The government had in June raised the prices of petrol and diesel by Rs 5 and Rs 3 a litre, respectively, and that of LPG by Rs 50 a cylinder to protect oil marketing firms against losses on account of a rally in crude prices.

The hike had then propelled inflation to double digits and stayed so for five months. Inflation cooled to 8.40 per cent as of November 22, but is still above the RBI's tolerance level.

Crude oil subsequently climbed to a record high of USD 147 a barrel in July, but has now come to USD 43.5, a four- year low.

"This (price cut) will help in reducing inflation," Deora said, adding that Prime Minister Manmohan Singh and Congress President Sonia Gandhi were committed to protecting the interests of the poor and middle-class.

On Saturday, RBI is expected to ease its monetary policy stance and signal banks to lower interest rates, which will make borrowings cheaper, increase spending and push economic growth.

The government too will on Saturday announce a fiscal stimulus for the housing, auto and export sectors, as also support for infrastructure sector to prop up GDP growth that is threatened by the global slowdown as also poor investor confidence following last week's terror attacks in Mumbai.

Friday’s fuel cut decision will have a revenue implication of Rs 5,798 crore for oil marketing companies this fiscal.

Under-recoveries of OMCs as of today were calculated at Rs 98,512 crore and this will now increase to Rs 1,04,310 crore.

Prior to the reduction, state-run oil firms were earning a profit of Rs 14.89 a litre on petrol and Rs 3.03 on a litre of diesel. However, they continue to sell kerosene at a loss of Rs 17.26 a litre and Rs 148.89 on every LPG cylinder.

Despite the oil companies losing close to Rs 27 a litre on kerosene, its prices have not been raised, Deora pointed out.

"India is the only country in the world where kerosene is cheaper than mineral water," he said. Kerosene is retailed at Rs 9.09 a litre.

 

[daredevil]

^^^ Elections call ha...

 

[Zaheerkhan]

Business ‘not deterred' by Mumbai attacks

MARCUS GEE

Globe and Mail Update
December 3, 2008 at 6:00 AM EST


If the group that masterminded the attack on Mumbai last week thought it was going to frighten away international business, they should listen to Joe Repovs.


Mr. Repovs is the founder of a Toronto roll-forming company, Samco Machinery Ltd. He and his executives travel often to India, helping Tata Motors produce the chassis for its much-anticipated, low-cost mini-car, the Nano. He has been several times to Mumbai and has even lunched at the famous Taj Mahal Palace & Tower Hotel, raided and seized by the terror squad that rampaged through Mumbai.


So is the attack making him hesitate to do more business in India? Not for a second. Hearing about the attacks, he said “I was absolutely stunned and horrified. I was sad and angry. It's a terrible, terrible, terrible thing.”


But “we're not stopping. We're not deterred. I believe in the long-term future of India and our place there.” The company, he said, is moving forward with a new plant in India and it has no intention of quitting.


Other Canadian businesses have similar things to say. Peter Sutherland, a former Canadian ambassador to India, advises clients on doing business there for the Toronto law firm Aird & Berlis. He says that none of them are telling him they're going to pull back from India because of what happened in Mumbai. “Most of them have been doing business in India for a while and they know it's not always smooth sailing. They're not going to be deterred by something like this. A good prospect is worth pursuing.”


India, from Canada's point of view, is much more than a good prospect. It's a golden opportunity. With its rising middle class, its bold, outward-looking companies, and its rich mining and commodity prospects, it is a place Canadian companies with global ambitions simply have to be. To walk away now would be to satisfy the fondest hopes of the Mumbai terrorists, who struck at its financial heart – and the two luxury hotels where foreign business people stay – with the obvious design of shattering international confidence.


One of the biggest Canadian companies in India, Sun Life Financial, says it has no thought of pulling back. Sun Life has been thriving in India for nearly a decade. Its Indian subsidiary, Birla Sun Life Financial Services, has 130,000 agents around the country. To the company's obvious relief, none of its Indian staff were hurt in the attack.


Spokesman Michel Leduc says that considering India's young, growing population and its “tremendous” growth rate, “you've got demand that is going to keep on growing. We remain confident in India as a place to do business.”


That must be music to Indian ears. Even before the Mumbai terror, the Indian economy was slowing as the effects of the global economic slowdown sank in. Growth decelerated to 7.6 per cent in the third quarter, the slowest since many years. The main index of Indian stocks, the Sensex, has lost more than half its value this year as foreign investors bailed out.


Mumbai, the financial and commercial capital, is especially vulnerable. Like any big, cosmopolitan world city, it is a tempting target for terrorists. Forty per cent of India's foreign trade moves through Mumbai, which accounts for a quarter of the country's industrial output. There were major attacks on the city in 1993 and 2006.


But Mumbai is also resilient, and in recent years it has been the symbol of the exuberant optimism that has infected India as it grows in wealth and confidence. Indians are determined not to let the Mumbai attack quench that spirit.


Joe Repovs watched on television the other day as Ratan Tata, the father of the Nano and one of India's leading business tycoons, talked about the attack. Mr. Tata's great-grandfather, Jamsetji Tata, commissioned the building of the Taj, a grand edifice on Mumbai's waterfront. The present Mr. Tata's company still owns the hotel and has vowed to rebuild.


“We cannot replace the lives that have been lost and we will never forget the terrifying events of last night, but we must stand together, shoulder to shoulder, as citizens of India, and rebuild what has been destroyed,” he said. “We must show that we cannot be disabled or destroyed, but that such [a] heinous act will only make us stronger.”


“He has tremendous resolve that they will not be defeated,” Mr. Repovs said. “I think we can all take something from that.”

Link:
http://business.theglobeandmail.com/...umnsBlogs/home