SINGAPORE: World oil prices fell in Asian trade on Tuesday after rising sharply the previous day amid an intensification of Israel’s conflict with Hamas, analysts said.

New York’s main contract, light sweet crude for February delivery, was down 16 cents to 48.65 dollars a barrel, after rising 2.47 dollars to 48.81 dollars a barrel at the close of trading Monday on the New York Mercantile Exchange.

Brent North Sea crude for February delivery fell 32 cents to 49.30 dollars a barrel after closing 2.71 dollars higher at 49.62 dollars on Monday in London.

Israeli troops invaded the Gaza Strip on Saturday after an eight-day bombing operation, in a bid to halt rocket fire from the militant group Hamas.

At least 555 people have been killed in Gaza since December 27, according to doctors, and another 2,700 wounded, while four Israeli soldiers have died in the fighting since Saturday. Another four Israelis were killed in Hamas rocket attacks on Israel before the ground war began.

But dealers said they did not expect prices to continue their rally despite the conflict in the oil-rich Middle East.

“Even though the short-term geopolitical issues of Gaza are keeping the strength in oil, continuing poor economic sentiment will put a lid on prices,” said Victor Shum, a senior analyst at international energy consultants Purvin and Gertz in Singapore.

Mike Fitzpatrick at MF Global said the conflict was a factor but was probably not significant enough in isolation to sustain a rally in oil prices.

Oil prices soared in the first half of last year, reaching record highs above 147 dollars a barrel in July, before a sharp global economic downturn slashed world demand for energy and pulled prices sharply lower.

The New York contract ended the year at 44.60 while Brent finished at 45.59 dollars a barrel.

Shum said the fundamentals of the market remain unchanged and prices would only improve if there is “clear evidence of output cuts… (and) the health of the economy improves.”

The Organisation of the Petroleum Exporting Countries (OPEC), whose 12

members together produce about 40 percent of world oil, last month agreed to cut output by 2.2 million barrels per day in a bid to shore up crude prices.

Iran’s Opec representative, Mohammad Ali Khatibi, said on Monday that the organisation would hold an extraordinary meeting in Kuwait next month, the state television website reported.

But he added the exact date has not been fixed yet and no invitation has been sent to Opec members.

The market on Tuesday, the second day of the week went on trading with high sentiments and the benchmark KSE-100 index was seen shot up by 100 points breaching the psychological barrier of 6000 points until the filing of this report.

Analysts told that the economy of the country showing signs of improvement and some positive announcements of the finance advisor made the difference in the market, as the investors shedding their weariness felt more confident and started taking interest in trading.

According to the Philippines-based IRRI, the Cereal Systems Initiative for South Asia (CSISA) aims to produce an additional 5 million tons of grain annually and increase the income of about 6 million farmers by at least 350 dollars.

“CSISA aims to reverse the declines in the annual cereal yield growth of recent years, decrease hunger and malnutrition and increase in food and income security … through accelerated development and deployment of new cereal varieties, sustainable management technologies and agricultural policies,” IRRI said in a statement.

The initiative, to be led by IRRI, will bring together a range of public and private sector organizations to enable sustainable cereal production in India, Pakistan, Bangladesh and Nepal.

The project will be supported with a 19.59-million-dollar grant over three years from the Bill and Melinda Gates Foundation and a
10-million-dollar grant over three years from the United States Agency for International Development (USAID).

Achim Dobermann, IRRI deputy director general for research, said the support to the new initiative signals an increasing recognition worldwide that agricultural research needs committed, long-term funding.

“The food price spikes in 2008 were a stark reminder of what can happen when agricultural productivity growth - which is reliant on continued research and development - tapers off and begins to overtake supply,” he said.

“CSISA can take big steps in the eradication of hunger, malnutrition and poverty in the region that has grappled with these afflictions for far too long,” Dobermann added. (dpa)

Tech Mahindra, a unit of Indian tractor and utility vehicle maker Mahindra & Mahindra, is reportedly looking for a deal that could involve gaining control of the combined entity.

“Anything that offers strategic value to Tech Mahindra would be of interest to the group,” it quoted an unnamed executive of Mahindra & Mahindra as saying. The paper also reported a fund manager had said Tech Mahindra was in touch with Satyam’s bankers Merrill Lynch.

Analysts said a merger would help Tech Mahindra, which is now focused on the telecom sector.

“It would mean a broadening of its business model,” said a technology analyst at brokerage Pioneer Intermediaries.

Shares in Tech Mahindra rose 9.6 per cent to 310.80 rupees by 0500 GMT, while shares in Satyam were trading up 4.25 per cent at 174 rupees on hopes of deal, despite a denial from Tech Mahindra.

Vineet Nayyar, vice chairman and managing director of Tech Mahindra, said the company had not approached Satyam or its merchant bankers with a merger proposal.

“It is pure fiction at this point in time,” he said.

Another company official said the report was speculative.

“Anything before Satyam’s board meeting, or the board gets constituted, is so speculative that I just think we are getting ahead of ourselves,” said C.P. Gurnani, head of Tech Mahindra’s international operations.

Satyam’s board is scheduled to meet on Saturday to consider options, including a share buyback.
  
Satyam has hired the local unit of Merrill Lynch to look at how to boost shareholder value and rebuild investor confidence after a botched attempt in mid-December to buy two construction firms in which Satyam’s founders held stakes.
   
Its stock slumped to a five-year low late last month after it was barred from World Bank business, but recovered 31 percent last week on talk that a reduction in the stake held by the company’s founders made Satyam a more attractive takeover target.

The outsourcer said on Friday its founder’s holding had fallen by a third to 5.13 per cent. Tech Mahindra is 44.2 per cent owned by Mahindra & Mahindra, while Britain’s BT Group holds about 31 per cent.

(With inputs from Agencies)

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“We will suspend the operation of 12 Toyota factories in Japan for 11 more days,” a Toyota spokesman said.

Japan’s top automaker is already idling its domestic plants for three days in January to cope with rapidly worsening demand.

The latest output cuts came after the Japanese auto giant last month forecast its first-ever annual operating loss, blaming “an unprecedented crisis” in the global auto industry.

Toyota has already moved to reduce production at its domestic, US, Canadian and French factories, and plans to lay off 3,000 temporary workers in Japan.

The global slowdown has badly shaken Japan’s automakers, which in recent years have cashed in on worldwide demand for their cars. Toyota’s troubles underscore the deepening woes plaguing the auto industry, which has forced the Big Three US automakers to seek financial lifelines from the US government to stave off bankruptcy.

(Agencies)

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Despite the weak sales, Ford estimated that it managed to increase its share of the US market to 14.6 per cent from 13.9 per cent in December of 2007.

Ford attributed the gains to strong demand for its new F-150 pickup truck and a new line of more fuel-efficient vehicles.

“This is a strong ending to end a very challenging year,” said Jim Farley, Ford’s group Vice President of marketing and communications.

“In addition to finishing the year with increased market share, we received several accolades from third parties concerning our world-class quality and safety, and we turned some heads on the fuel economy front with our 41 mpg Fusion Hybrid, the most fuel-efficient mid-size sedan in America.”

Truck, sport utility vehicle and van sales were down 34 per cent to 91,027 vehicles in December and 24 per cent to 1.24 million in 2008.

Car sales fell 26 per cent to 43,087 in December and 11 per cent to 671,955 for the year.

(Agencies)

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Taking a plea that privately-run PFs are violating investment accounting norms, the Labour Ministry is not inclined to award final approvals to these trusts. Over 2,500 private PFs are operational, but under a temporary recognition given by the Employees Provident Fund Organisation (EPFO). The temporary EPFO recognition enables them to qualify for tax exemptions.

However, the Income Tax authorities had been warning the privately-run PFs that the tax benefits to their subscribers would be in jeopardy if they did not get a final approval from the Labour Ministry.

But the ministry found that several of these funds were not following the norms and not maintaining the accounts as per the provisions of the Employees Provident Fund and Miscellaneous Provisions Act, Joint Secretary in the Ministry of Labour S K Srivastava said at a PHDCCI function in New Delhi.

“Even today we held a meeting over this. It will take some time for us to formulate how to go about this. Under the circumstances, it seems difficult to allow final approval to any of the trusts unless things are in order,” he said.

Subscribers to the private PFs are allowed income tax exemptions under Section 17(1)-A of the IT Act.

During the function, industry representatives pointed out the apathy of the Labour ministry in this respect and contended that for anomalies in some privately-run PFs, the government was penalising all.

“We say hang those organisations whose private PF trusts do not conform to norms. But allow approval to the rest,” said PHDCCI member and Chartered Accountant Sushil Jethpuria.

Industry representatives had also raised queries regarding the uncertainty of the Labour ministry on the issue and sought to know if clearance for the final approvals would be done before the coming budget session.

The next session is, however, expected to be a vote-on-account where no new schemes of the government could be introduced.

(With inputs from Agencies)

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The 30-share barometer initially touched a low of 10,229.87 points before recovering to quote at 10,314.76 points at 1015 hrs, a rise of 39.16 points or 0.38 per cent over previous close. The broad-based Nifty of the National Stock Exchange also rose by 5.20 points or 0.17 per cent from last close to 3,126.65 at 1015 hrs.

Market players attributed early weakness in share values to mixed trend in global markets. The Dow Jones Industrial Average and the Nasdaq Composite index ended in the red yesterday, while Asian indices displayed a mixed pattern of trading in early trade. Metal and banking counters attracted good buying support and helped the recovery.

Late on Friday, the government announced another incentive package with additional sops to exporters and small-scale sectors besides removing External Commercial Borrowings (ECBs) norms and the Reserve Bank of India (RBI) also cut key interest rates to support the slowing economy.

Revival of buying by Foreign Institutional Investors (FIIs) also aided the firm trend as they picked up shares worth Rs 469.56 crore on Monday as per provisional data.

However, the market might get resistance at higher levels on expectations of lower than expected quarter three results to be announced from the weekend, according to analysts.

Earlier, the stock market turned somewhat weak with the Bombay Stock Exchange benchmark Sensex falling by over 45 points in early trade on emergence of profit-taking at improved levels by speculators and funds amid a mixed trend in global equity markets.
    
The 30-share barometer which had gained 317.38 points on Monday, fell by 45.73 points at 10,229.87 after stocks of realty, banking, auto, oil and gas and capital goods retreated to profit-taking. The broader 50-share Nifty of the National Stock Exchange also fell by 13.80 points to 3,107.65.

Major losers which dragged the Sensex down were Larsen and Toubro, ONGC, Reliance Industries, Reliance Infra, Rcom, State Bank of India, ICICI Bank, DLF Ltd, Maruti Suzuki and Tata Power. Bucking the trend, metal stocks such as Sterlite Industries and Tata Steel remained strong on funds buying.

Meanwhile, Hong Kong’s Hang Seng index was down 1.15 per cen and Singapore’s index was down by 0.82 per cent, while Japan’s Nikkei was up 1.68 per cent in early trade today.

Satyam up 6 pc in early trade

IT major Satyam Computer Services today surged as much as six per cent in early trade on the bourses amid reports that the company is being targeted by other rival software services firms for a possible buyout.

Satyam’s stock opened on a bullish note and then rallied ahead to witness an intra-day high of Rs 177.90, up 6.59 per cent from its previous close on the Bombay Stock Exchange. Similarly on the National Stock Exchange, the scrip opened at Rs 167.50, touched an intra-day high of Rs 177.95, up 6.46 per cent from yesterday’s close.
    
The surge in the stock assumes significance as both the benchmark indices — Sensex and Nifty — were trading in the negative territory. Over 23.11 lakh shares got traded on the BSE, while on the NSE nearly 52.74 lakh scrips exchanged hands.
    
Despite the corporate-governance concerns at Satyam, the company is attracting a a good number of suiters. According to unconfirmed media reports, besides Delhi-based HCL Technologies and Bangalore-based MindTree, the company is also being mulled by Tech Mahindra. 

The M&M group company Tech Mahindra has approached Satyam Computer for an all-share merger, pursuant to which Tech Mahindra will have control over the combined entity.

(With inputs from Agencies)

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“I am a human face on this tragedy,” says Allan Goldstein, a retired New York textile distributor.

Goldstein says he lost his entire life savings with Madoff and had to cash in his life insurance policies to cover his mortgage. He will testify to the House Financial Services Committee in the first congressional hearing on the Madoff scandal.

“Everything I worked for over a 50-year career is gone,” Goldstein said in an e-mail message from his attorney’s firm. He said he had no reason to question the steady returns of 8 per cent to 12 per cent a year that Madoff’s firm told him he was earning.

The Securities Investor Protection Corp and the trustee handling the liquidation of Madoff’s firm said today they mailed more than 8,000 claim forms to customers on Friday.

Besides individuals, others who lost money were big hedge funds, international banks and charities.

The Securities and Exchange Commission received complaints about Madoff’s investment methods going back to at least 1999. The House committee is questioning the SEC’s internal watchdog, as lawmakers try to learn why regulatory agency failed to detect the alleged investment fraud.

Madoff’s alleged pyramid scheme will be a case study for a planned overhaul of laws regulating financial markets, said Rep Paul Kanjorski, a Democrat, who is presiding at the hearing.

(Agencies)

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The newspaper said M&S, which is seen as a barometer of British consumer sentiment, would announce plans to cut nearly 1,000 shop floor jobs and several hundred more posts in head office and support sectors on Wednesday.

Shoppers flocked to heavily-discounted stores over Christmas and the new year, but analysts warned the last-minute spending spree would not be enough to make up the shortfall left by consumers tightening their belts.

Marks & Spencer announced in early November that net profit sank 43% in the first half of the year as it faced tough trading, and The Times said year-on-year sales over Christmas fell significantly.

The retailer refused to comment on the newspaper report.

(Agencies)

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The government’s step to holster economic growth on Friday (January 2) had an immediate impact as the Sensex strengthened by 317.38 points at 10,275.60, a level last seen on November 10. It touched the day’s high of 10,306.17 and a low of 10,069.11 points. 

The 50-share National Stock Exchange index Nifty rose by 74.70 points at 3,121.45, after touching the day’s high of 3,131.95 and a low of 3,056.45 points. 

The rupee climbed to its strongest in a week on speculation that the steps will encourage overseas  investors to boost holdings in local assets. 

Stocks in the segments of metals, refineries and banks led the rally as the government plans to give Rs 20,000 crore to boost the capital of state-run lenders and provide Rs 25,000 crore for non-bank finance companies. 

Reliance Industries shot up 6.38 per cent, Tata Power 7.76 per cent, Sterlite Industries 9.82 per cent, Infosys  Technologies 3.85, and Tata Steel 6.73 per cent. All these counters combined carry nearly a 38 per cent weight in the Sensex.  

The metal sector index gained the most, by 5.54 per cent at 5,869.08, on the back of a steep rise in stocks of Tata Steel, Sterlite Industries, SAIL, Jindal Steel and Hindustan Zinc.

The oil and gas index was the second-best performer, gaining 5.10 per cent at 6,559.66, after heavy-weight Reliance Industries surged 6.38 per cent at Rs 1,365.75 and ONGC by 6.43 per cent at Rs 723.75. 

The banking segment index spurted 3.53 per cent at 5,874.87. State Bank of India, the countrys largest, increased 2.35 per cent to Rs 1,361.20. ICICI Bank, second-biggest private lender, rose 6.04 per cent to  Rs 499.65. Both stocks recorded their highest rise in more than two months.

The capital goods index by 2.83 per cent at 7,493.25, the IT index by 2.40 per cent at 2,339.10, the PSU index by 1.78 per cent at 5,580.18, the power index by 1.75 per cent at 1,941.52, and the teck index by 1.46 per cent at 2,018.68. 

The auto index rose by 1.30 per cent at 2,553.82, the consumer durables index by 1.21 per cent at 2,028.30 and the healthcare index by 0.05 per cent at 2995.33. 

With buying widely spread, the midcap index rose by 1.78 per cent at 3,451.64 and the smallcap index by 1.21 per cent at 3,917.37. 

However, the FMCG index fell by 0.53 per cent at 1,996.03 and the realty index by 0.33 per cent at 2,464.28 on profit selling. 

(Agencies)

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Shares of Apple rose more than 3 percent in early trade, as Jobs, a pancreatic cancer survivor, said he would remain CEO during his recovery and that his doctors expect him to regain his weight by late spring.

“I will be the first one to step up and tell our Board of Directors if I can no longer continue to fulfill my duties as Apple’s CEO,” Jobs said in a statement, breaking his silence about his health for the first time in months.

The statement followed widespread investor concern about the executive’s health, after Jobs decided not to give the keynote speech at Apple product showcase Macworld this week. Speculation about his health started in June 2008, when Jobs appeared markedly thinner at an Apple event.

Jobs is seen as the driver of Apple’s successful products, including Macintosh computers, iPod media players and iPhones.

He acknowledged he had been losing weight throughout 2008 and that his doctors determined “a hormone imbalance that has been ‘robbing’ me of the proteins my body needs to be healthy.”

He said the remedy for “this nutritional problem is relatively simple and straightforward” and that he has begun treatment.

Investors who had been unnerved by Jobs’s gaunt appearance last year, and the lack of a clear explanation from the company, heaved a sigh of relief.

“I think it does put to rest all the speculation on his health and I think people will now start to focus on the business,” said ThinkEquity LLC analyst Vijay Rakesh. “I think obviously this is very good for Apple and the stock because Jobs has been an innovator. He steered the company into a lot of new products.”

Apple’s board said in a separate statement that Jobs has its full support during his recuperation.

Jobs said the cause of his weight loss had been a mystery to himself and his doctors until he decided a few weeks ago that getting to the root of the problem was his top priority.

Shares of Apple rose 3.2 percent to $93.64 in morning trade on the Nasdaq. But the stock remains far below its 12-month high of $192.24, hit in May 2008, amid concerns about how the slump in consumer spending will hurt sales of the company’s high-end products.

Adam Harter, an analyst at Financial Enhancement Group, said his company added to its position in Apple a couple of months ago, when the stock was trading in the mid-$80s.

“At that point of time we felt the Steve Jobs’ premium was already backed out of the stock price. So anything that says he’s not in bad health is good news and this appears to say he’s in much better health than the market had anticipated so the upside can be significant,” Harter said.

(Agencies) 

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According to data analysed by KPMG, 2009 may see personal insolvencies reach record levels, with over 1,50,000 people entering into an Individual Voluntary Arrangement (IVA), being declared bankrupt or entering into a debt relief order.

IVAs enable an individual in financial distress to approach his creditors with a plan to restructure his debts. This typically involves the debtor making regular affordable monthly payments for a fixed period of time, at the end of which the balance of the debts is written off.

“Most IVAs deal with personal loans, credit card balances and other forms of unsecured debts. Most of this money was borrowed to meet ‘current’ expenditure including lifestyle items such as holidays, or to meet monthly shortfalls in the household budget, rather than to acquire assets or to fund a business,” Mark Sands, Director of Personal Insolvency at KPMG said.

According to KPMG the total number of personal insolvencies in England and Wales according to the government’s Insolvency Service (bankruptcies and individual voluntary arrangements combined) would amount to over 1,50,000.

Last year creditors had to write off at least 1.1 billion pound in bad debts as a large number of people had entered into IVAs. The average IVA debtor owed 47,800 pound and proposed to repay only 38 per cent of this sum.

KPMG estimates that over 2,500 people entered into IVAs with debts exceeding 1,00,000 pound in 2008. Last year around 37,000 people used the IVA procedure to writeoff a portion of
their debts.

According to KPMG estimates around 67,000 people were declared bankrupt in 2008, taking total number of personal insolvencies to around 1,04,000 last year.

This year the government plans to introduce Debt Relief Orders (DROs) in April, which would allow consumers with debts of less than 15,000 pound and minimal assets or surplus income, to writeoff their debts without entering into a full blown bankruptcy.

DROs, together with the expected increase in unemployment, are likely to lead to record levels of personal insolvency of over 150,000, states KPMG.

According to KPMG one in six people (16 per cent) had their IVA turned down by creditors. Many people who fail to get an IVA approved by creditors end up in bankruptcy, with others entering into debt management plans.

(Agencies)

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In a filing to the stock exchanges, Satyam said that the technology research firm had in its December 18, 2008, report asked organisations to adopt the software major’s innovative business strategies.

However, the latest Forrester report on December 31, 2008, said that its software business associates need to review dependence on Satyam Computer to safeguard themselves in case the IT major is sold.

Commenting on the company’s “diversification failure” in relation to its aborted acquisition of two companies promoted by the family of Chairman B Ramalinga Raju, analysts at Forrester in its latest report had said: “Management and governance miscues could have a long-term impact.”

“Sourcing and vendor management executives would need to review their dependence on Satyam and ensure that they have strong contingency plans and change of ownership clauses in the event that Satyam is acquired or the fallout from this serious misstep affects the firm’s ability to compete long term,” Forrester had said.

However, according to the stock exchange filing by Satyam today, the December 18, 2008, report — “Satyam Ignites Innovation from the Bottom Up” — Forrester had asked organisations to “emulate Satyam by unleashing and harnessing their firm’s grassroots creative energy”.

Meanwhile, Forrester said it had not taken into consideration Satyam’s aborted Maytas deal and its after- effects, while preparing the first report.

(Agencies)

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Welcoming the 2nd stimulus package and also the cut in repo rate to 5.5 per cent and reverse repo to four per cent, Chamber president, Mahendra Ramadas, however, expressed apprehension whether the anticipated cut in interest would happen soon.

He was of the opinion that 0.5 percentage point reduction in CRR from 5.5 to 5 per cent, which would release Rs.20,000 crore bank funds coming into effect from the fortnight beginning January 17, may not ease the liquidity position due to the banks ‘risk aversion,’ Mahendra said.

Chamber was also disappointed at government not heeding its demands for a two-year moratorium on payment of term loan and interest, abolition of fringe benefit tax and securities transaction tax.

Quoting Union Textile Minister, Shankar Sinh Vaghela that export target of 25 billion USD including textiles and handicrafts for 2008-09 appeared to be under pressure, he sought agri-business status for cotton. He also sought lending rate of 7 per cent for all cotton mills with the margin money being brought down from 25 to 10 per cent, to help mills overcome the operational difficulties.

Stimulus package not enough: Goldman Sachs

Steps announced by the government and RBI to arrest economic slowdown will not change the growth outlook for the current fiscal, global financial firm Goldman Sachs said in a report on Monday (January 5), even as it felt the apex bank may go for another cut in policy rates by 50 basis points.

“While we welcome these counter-cyclical measures as a timely boost to confidence, we do not think that they will materially change the growth outlook,” Goldman Sachs said in a Asia Policy Watch report.

Goldman said India’s economy is likely to expand by 6.7 per cent in the current fiscal and 5.8 per cent in 2009-10. The Gross Domestic Product (GDP) growth rate was 9 per cent in the previous fiscal.

Noting that RBI has since October reduced key policy rates several times, it said, “we believe the central bank will cut the repo and reverse repo rates by another 50 basis points in January to bring the corridor to 3.5-5 per cent.”

As regards the cash reverse ratio, the amount that banks keep with the RBI, the central bank could reduce the ratio by another 150 basis points to inject more liquidity into the system, it added.

Since October, RBI has reduced the repo rate by 3.5 per cent, reverse repo by 2 per cent and CRR by 4 per cent.

The report said in the coming weeks, the banks could lower lending and deposit rates as a result of the easing money policy being followed by RBI.

“The fiscal and monetary measures announced will be positive for banks, NBFCs, and infrastructure companies, and limit further downside to growth,” the report said.

In order to reverse the economic slowdown, the government on last Friday came up with a second stimulus package, while RBI announced cuts in key policy rates and ratios to ease liquidity situation.

(Agencies)

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New York’s main contract, light sweet crude for February, gained 70 cents to USD 47.04. Crude futures have been boosted over the past week as the conflict in Gaza stokes tensions in the key oil-producing Middle East.

The Gaza conflict has added to the “geopolitical risk premium embodied in the oil price,” said David Moore, an analyst at Commonwealth Bank of Australia. Israeli warplanes carried out intensive raids on Hamas targets today as ground troops surrounded Gaza’s main city, while Israel faced mounting diplomatic pressure for ceasefire.

Elsewhere, Iran’s OPEC representative Mohammad Ali Khatibi today said that the oil producers’ cartel would hold an extraordinary meeting in Kuwait in February. “The extraordinary meeting of the Organization of Petroleum Exporting Countries is due to be held next month in Kuwait,” Khatibi was quoted as saying by state television.

“The exact date has not been fixed yet and no invitation has been sent to the members either,” he added in a statement posted online. OPEC, whose 12 members together produce about 40 per cent of world oil, last month agreed to cut output by 2.2 million barrels per day in a bid to shore up crude prices.

(Agencies)

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Asked how low the economic growth could touch, he said, “I don’t think anybody knows because unless the confidence comes back, we don’t know how low it can go.     

“And that confidence is not coming back. Because I don’t think India or UK or US have seen the bottom yet and you can only hope for improvement when you are convinced that you have almost touched the bottom.”
    
Asked whether his decision to invest in India was a wrong judgement, Lord Paul vehemently denied and said: “I still have no doubt that we would be able to turn India into a manufacturing power-house.” 

On whether investment in India would be affected in the short to medium term especially after the Mumbai terror attack, Lord Paul, who is the founder of multinational company Caparo, said: “It is bound to.     

“But I don’t think it is going to be as bad as people think because lot of people including foreign investors are of my view that this waking up of the government is going to come only by the anger of the people and not because of some foreign investors.”

On whether 2009 would be a difficult year for India, Lord Paul said, “Without any questions in my mind. There is no doubt about it. There is a lot of awakening to be done if India wants to call it self a country which is on the march.” 

To a question that why Indian government is failing to heed to his warning, Lord Paul said, “Because nobody seems to take this as a serious thing. I am generally very critical of it because we are sitting on a time bomb.”

Growth has no meaning unless India deals with 300 million people living on one dollar and 600 million people on just two dollars a day, he said. He, however, said that his company would continue to invest in India because eventually sufficient voices would be raised against the crisis including security concerns of the people as well as investors.

Lord Paul reaffirmed his commitment to India and said that he would not suspend operations here due to lack of confidence in India’s economic future. Criticising the Indian government for not being able to translate growth in alleviating poverty and delivering infrastructure, Lord Paul said, “This is the biggest problem of India”.
    
“Because I don’t think that the government and even industrialists have realised that unless you are going to alleviate poverty all this great talk about ‘we are getting to be a developing nation’ is false,” he noted.     

Lord Paul also said that he has ‘not really’ seen such a difficult business environment in his career so far. Asked whether India could decouple itself from the  problems in the western-rich economy, he said that India and other countries have enjoyed the benefits of globalisation and “you think that you (India) are not going to be affected. It is like living on the moon”.

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All terminated hostesses were serving on domestic routes.One of the sacked airhostesses said that she was grounded two years back and had not been given salary since then. She got one month’s salary along with the termination letter.

In June last year, five of the airhostesses had approached the Delhi High Court, challenging Air India’s decision to ground them for being overweight. However, the court dismissed their petition.

The court said there was “no unreasonableness or arbitrariness” in the airline’s decision. It noted that there was nothing wrong in the rules which prescribe different weight limits according to the height and age of an air hostess.

The air hostesses also opposed a circular issued by the airline withdrawing the permissible overweight limit of 3 kg over and above the upper weight limit for them. Air India said the action taken against the employees was justified as it was mentioned in the contract.

For an 18-year-old air hostess with a height of 152 cm, the maximum weight permissible is 50 kg, while for air hostesses in the age group of 26 to 30 and a height of 152 cm, the weight limit is 56 kg. When contacted, Air India spokesperson J Bhargava said he was not aware of the issue. The airline’s executive director (north) DS Kohli refused to comment. 

(With inputs from TOI)

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A bench headed by Justice S B Sinha while admitting the plea posted the matter for final hearing on March 3. It also directed the state government not to take any coercive measure till then. Earlier, the court had ordered a status quo till today.

The Kerala Government had issued notification in 1993 giving sales tax exemption to new small-, medium- and large-scale industrial units for seven years from the date of starting commercial production.

However, the state government withdrew the exemption except for those that had taken steps to set up industrial units prior to January 1, 2000, or which had commenced commercial production on or before December 31, 2001.

According to Pepsico, the High Court had upheld the Deputy Commissioner of Commercial Tax’s order though it started production much before the scheduled date. It further contended that the High Court failed to appreciate its genuine exemption claim.

The company said that sales tax exemption is given as an incentive for promoting industrialisation, and economic growth and development, and that any subsequent notification should further the objective.

The soft drinks major said it had acquired more than 50 acres on lease for 90 years for Rs 2.77 crore from the government for setting up a plant for manufacturing aerated and non-aerated beverages and other food products and their packaging material.

Stating that Pepsico invested over Rs 40 crore and started commercial production on March 6, 2001, the petition also said that the firm took steps, including placing orders for plant and machinery, and clearances from the pollution control board.

However, the Deputy Commissioner rejected its eligibility certificate given by the Director of Industries and Commerce on the grounds that the purchase orders and other documents related to advance payments for machinery did not show that the company had satisfied the condition of “effective steps” as required by the modified notification.

Besides, its application for exemption from sales tax of more than Rs 43 crore was rejected, the company said, adding the department had made a tax demand and started recovery proceedings on the grounds that the company was not into “manufacturing”.

Aggrieved by the government stand, the company moved the High Court, which dismissed its plea on the grounds that it had not placed firm orders for all necessary plant and machinery before the cut-off date.

(Agencies)

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“The flight had almost full occupancy with 28 passengers in Kingfisher First and 169 in Kingfisher Class,” company spokesperson told news agencies.

The flight ‘IT 007′ left the Chhatrapati Shivaji International Airport (CSIA) at 1350 hrs and was carrying 10 chief executive officers of top travel agencies from Delhi and Mumbai, the spokerperson said.

The return flight from London ‘IT 008′ would leave at 2030 hrs and arrive at the Mumbai airport on the next day at 1100 hrs.

Mumbai-London is the private carrier’s second overseas flight after the one on Bangalore-London route that was launched in September last year.

Kingfisher also plans to launch Mumbai-Hong Kong operations from January 12 and Mumbai-Singapore flight from January 16.

In addition, its flights from Bangalore and Chennai to Sri Lanka capital, Colombo, will start from January 19.

(With inputs from agencies)

( This post is from an independent writer. The opinions and views expressed herein are those of the author and are not endorsed by APakistanNews.Com.)