India & World

Content:

1. Manmohan Singh's three-day visit to Saudi Arabia
2. 3,500 pilgrims from India take part in Kachchatheevu festival
   

Brief Description:

Manmohan Singh's three-day visit to Saudi Arabia

1. India signs extradition treaty and a few other agreements with Saudi Arabia
• India and Saudi Arabia have vowed to jointly combat terrorism and money laundering as they signed an extradition treaty and several agreements to raise their cooperation to a strategic partnership covering security, economic, energy and defence areas. The extradition treaty enhances existing security cooperation and will help in apprehending wanted persons in each other's country.
• Prime Minister Manmohan Singh and Saudi King Abdullah signed the Riyadh Declaration outlining the contours of a new era of strategic partnership between the two countries. Both sides emphasised the importance of strengthening the strategic energy partnership in line with the Delhi Declaration of 2006, including meeting India's increasing requirement of crude oil supplies and identifying areas of new and renewable energy.
• India and Saudi Arabia also signed four other agreements relating to transfer of sentenced persons, cultural cooperation, memorandum of understanding between Indian Space Research Organisation and King Abdulaziz City for Science and Technology for cooperation in peaceful use of outer space and joint research and information technology.
2. Analysis
• Prime Minister Manmohan Singh's three-day visit to Saudi Arabia, though long overdue, ended on a high note. As a result of his discussions with the top leadership here for the past three days, both India and Saudi Arabia have agreed to upgrade their relationship to "strategic partnership.The Prime Minister said the strategic partnership would cover issues relating to security, cooperation in dealing with terrorism and arrangements for information and intelligence sharing.
• Dr. Singh and King Abdullah bin Abdul-Aziz covered substantial ground and managed to pin down specific areas for further collaboration. Determined to go beyond their traditional buyer-seller energy relationship, the two leaders opened up a much wider common agenda, including such exciting areas as outer space, renewable energy, and advanced computing.
• Four years after King Abdullah made a pioneering visit to India, the vision of a comprehensive political, security, and economic relationship, anchored in the Riyadh Declaration signed during Dr. Singh's visit, now stands firmly established. The Riyadh Declaration, which came four years after the 2006 Delhi Declaration, said the two leaders noted that tolerance, religious harmony and brotherhood, irrespective of faith or ethnic background, were part of the principles and values of both countries.
• The Prime Minister's visit to Saudi Arabia, which is not only the world's largest oil producer but also a regional heavyweight, is also likely to leave its stabilising imprint on other areas in West Asia. These include the neighbouring oil rich countries of the Gulf Cooperation Council (GCC), which are encountering serious security challenges.
• Significantly, the visit has added a prominent security dimension to bilateral ties. Saudi Arabia and India fully appreciate that they are common victims of terrorism. They are both targeted by the forces of global jihad, entrenched in the rugged mountain ranges on either side of the Afghanistan-Pakistan border. If Mumbai was India's terror nightmare, Riyadh too faced a string of devastating bombings in 2003, when al Qaeda operatives blew up prominent residential compounds. Saudi Arabia continues to remain in the cross-hairs of the al Qaeda in the Arabian Peninsula (AQAP), which operates out of neighbouring Yemen.
• The signing of an extradition treaty during Dr. Singh's visit therefore needs to be welcomed as a major breakthrough. From an Indian perspective, there is now hope that outfits like the Lashkar-e-Taiba (LeT), whose operatives reportedly visit Saudi Arabia for various purposes, will be captured by Saudi authorities and sent to face the law in India.
• Further, the shared focus on safeguarding the "sovereignty and independence" of Afghanistan must be welcomed.
• In a visit that otherwise went so well, New Delhi's hardly concealed interest in seeking Riyadh's "good offices" to moderate Pakistan's behaviour has struck a jarring note. The suggestion appeared quite unnecessary as serious discussions on the Pakistan situation are expected to be integral to the fast-developing India-Saudi security relationship. By overtly drawing Saudi Arabia into the India-Pakistan equation, the United Progressive Alliance government has needlessly opened itself to the charge of diluting the principle of bilateralism that has, by virtue of a national consensus, governed New Delhi's engagement with Islamabad.(-ve)
• the Shura Council – Saudi parliament
3. Controversy -BJP wants Manmohan, Tharoor to explain remarks on Saudi Arabia
• The latest controversy over Shashi Tharoor's remarks,the junior minister's reference to Saudi Arabia being a "valuable interlocutor for [India]" as assigning Riyadh a mediatory role between New Delhi and Islamabad.
• 'Interlocutor' means a person or entity or country involved in a conversation. And the Minister of State for External Affairs was clearly talking about the value of Saudi Arabia as a dialogue partner for India on the subject of Pakistan.
• The Bharatiya Janata Party indicated that it would ask Prime Minister Manmohan Singh and his Cabinet colleague Shashi Tharoor to "explain" what they meant by saying India should talk to Saudi Arabia about Pakistan-inspired terrorism.
• Was this the start of the end of bilateralism in India-Pakistan dialogue?
4. Riyadh 'worried' about Pakistan situation
• While terming Pakistan a "friendly country," Saudi Arabia on Sunday said it was "worried" about the prevailing situation and spread of extremism there and appealed to political leaders in Pakistan to unite and meet the challenges.

CAG Weekly
(Current Affairs & GK)
By Om Prakash (goldy sir)

read more © 2010 www.upscportal.com

Budget Highlights

-	Minimum Alternate Tax up from 15% to 18% on book profits
-	Fiscal deficit pegged at 5.5% of GDP
-	I-T dept to notify simple two-page Saral 2 form for individuals for current year
-	Personal income tax: Nil for income up to Rs 1.6 lakh, 10% for income bet Rs 1.6 -5 lakh
-	Personal income tax: Income between 5-8 lakh: Tax at 20%
-	Personal income tax: Above Rs 8 lakh, tax at 30%
-	Professionals with Rs 15 lakh income need account audit
-	Partial rollback of excise duty relief on large cars
-	To provide subsidy in cash instead of bonds for fertiliser, oil
-	Customs duty on gold, platinum imports raised to Rs 300 from Rs 200
-	Service tax to GDP ratio is 1%
-	Net revenue gain of Rs 43,500 cr from customs, excise proposal
-	Direct tax proposals result in Rs 26,000 cr loss; indirect tax yield Rs 45,000 cr gain
-	News agencies exempt from service tax
-	Some services hitherto not taxed would be brought under the purview of new Service Tax
-	Service Tax rates unchanged at 10%
-	No import duty on some equipment in road projects
-	Cut in duty for photovoltaic units
-	External commercial borrowing will be available for food storage industries
-	Clean energy cess on domestic, imported coal
-	Peak customs duty remains unchanged at 10%
-	Central excise on LED lights halved to 4%
-	Agricultural seeds exempt from service tax
-	Full excise cut on electric cars
-	For solar mission, solar power generating units rates are to be reduced by 5%
-	Cut on personal tax rates means saving of Rs 50,000 for income up to Rs 8 lakh
-	Partial rollback of excise duty relief on large cars
-	Peak excise duty hiked from 8% to 10%
-	Market borrowing were up to 3,45,000 cr. Enough to meet credit need of private sector
-	Duties on smoking and non-smoking tobacco products up
-	Excise duty on large cars, SUVs, multi utility vehicles hiked
-	Petroleum products: basic excise duty of 5% crude, 7.5% on diesel & petrol; 10% on other products
-	Structural changes in excise duties of tobacco, propose to extend excise duty
-	Revenue loss of Rs 26,000 cr on a/c of direct tax proposals
-	Surcharge for companies reduced to 7.5%
-	Due to direct taxes, result in a revenue loss of Rs 26,000 cr
-	Threshold limit for TDS applicability to be rationalised
-	Extended scope of presumptive taxes up to Rs 40 lac
-	Real estate sector now gets 5 years for completion instead of 4 years before
-	To boost tourism investment, offers investment linked tax deductions
-	Addl Rs20,000 deduction available for investment in infra bonds
-	Reduces current surcharge of 10% on domestic comp to 7.5%
-	Automation of excise, service tax already rolled out
-	FY11 market borrowing pegged at Rs 3.45 lakh cr
-	Govt to set up apex level Financial Stability and Development Council
-	FY13 fiscal deficit seen at 4.1%
-	Fiscal deficit seen at 4.8% in FY12
-	Allocates Rs 1,900 cr for UID project
-	Planned expenditure up 15% over 2009-10
-	Increase in non-planned exp up only 6%
-	Total exp proposed up 8.7% over 2009-10, to Rs 11 lakh cr
-	Taskforce to counter problems in Maoist affected areas. Adequate funds will be allocated
-	Allocation to Defence over Rs 147,000 crore
-	Technology advisory group to be set up under Nandan Nilekani
-	Smart card extended to NREGA
-	RBI to dole out more banking licences: Pranab
-	Sign language training centre for hearing impaired
-	Rs 4,500 cr for program of social justice, sr citizens, backward classes, handicapped
-	Rs 100 cr allocated for women farmers
-	Exclusive skill dev prog in textile and garment sector
-	Rs 48,000 cr for Bharat Nirman plan
-	Asks state govt to contribute for social security to workers in unorganised sector
-	Infra stocks spurt on higher allocation
-	To allocate Rs 22,300 cr to Health Ministry
-	Allocates Rs 100 cr for new pension scheme, to benefit 100,000 low income citizens
-	Khadi institutes get Rs 400 cr
-	GOI sign $150 mn deal with ADB for implementing Khadi programme
-	Rajiv Awas Yojana now ready' gets Rs 1,270 cr for FY11
-	Rs 7300cr in 2011 for backward sections
-	GST, Direct Taxes Code from April 2011
-	Housing loan: 1% interest subvention scheme extended, allocation Rs 700 cr
-	Urban dev allocation up more than 75% to Rs 5400 cr
-	Allocates Rs 1,200 cr for drought mitigation
-	Indira Awas Yojana: allocation up by Rs 10,000 cr
-	NMDC, SVJN stake sale to fetch Rs 25,000 cr in FY10
-	NREGS gets Rs 40,100 cr in FY11
-	Rs66,1000 cr allocateds for rural development in FY11
-	IIFCL disbursements at Rs 9000 cr by March 2010
-	School education outlay for FY11 at Rs 31,000 cr
-	States to get Rs 3,675 cr for primary education at rural level
-	To set up coal regulatory authority
-	Spending on social sector at Rs 137,000 cr
-	Rs 25,000 cr allocated to develop rural infrastructure
-	Growth to exceed 7.2% in this fiscal
-	Final FY10 GDP figure maybe higher than estimate of 7.2%
-	To set up National clean energy fund
-	Plan outlay for Renewable energy ministry up 61%
-	Power allocation doubles to Rs 5,100 cr
-	To set up 5 more mega food park projects
-	Allocation for road tansport Rs 19,894 cr
-	Farm loan repayment extended by 6 months
-	ECB to be available for cold storage
-	To provide Rs 400 cr to boost farm output in eastern India
-	Timely repayment of crop loans: subvention raised from 1% to 2%
-	Govt is committed to growth of SEZ to promote exports
-	Proposes allocation of Rs 200 cr for climate-resilient agricultural program
-	Extend 2% interest subvention for exports for another year
-	FY11 capital for PSU banks at Rs 16,500 cr
-	Extends interest subvention of 2% for handloom, handicrafts for 1 more yr
-	Propose new bill to address problems in corpoate sectors
-	Will augment assistance to RRBs to strengthen rural sector
-	RBI may give license to some more private sector players and NBFCs
-	Rs 1,900 cr addl capital in four PSU banks
-	Ownership and control clearly defined in FDI policy
-	To discuss Kirit Parikh report in due course
-	Subsidy for fertiliser sector to increase farm productivity
-	Govt to raise Rs 25,000 cr this year to meet cap expenditure requirements
-	GST and DTC can be introduced in April 2011
-	Steps to reduce public debt, paper to be presented in 6 months
-	Signs of food inflation going to non-food items
-	Need to review stimulus, move to fiscal consolidation
-	Double digit food inflation in 2009
-	Export figures encouraging; pvt investments can be expected
-	Concerned over emergence of double digit food inflation
-	18.9% growth rate in manufacturing sector in 2009
-	Final figure may be higher if earnings in last quarters are strong
-	Need to make recovery
-	Growth slows down to 6% in Q3 vs 7.9% in Q2 this fiscal
-	Focus shifts to non-governmental actors
-	3rd challenge: relates to problems in government system
-	2nd challnge: harden economic growth to make dev more inclusive
-	1st challenge: quickly revert to higher GDP growth path of 9%, cross double digit growth
-	Economy is in a better position than a year ago, however, challenges remain
-	Uncertainity was there on account of delay in monsoon, concerns about production and food prices
-	Pranab Mukherjee starts announcing Union Budget
-	Bond yields steady ahead of Budget Source: BS News

Highlights of the Union Budget 2010-11 presented by Finance Minister Pranab Mukherjee on Friday:

- Net revenue gain from tax proposals at Rs 20,500 crore
- Certain accredited news agencies exempted from service tax
- Service tax to remain 10 per cent
- Increase in duty on gold and silver import
- Clean energy cess of Rs 50 per tonne to be levied on coal produced in India
- 10 per cent central excise duty on all non-petroleum products
- Structural changes in excise duties on cigarettes, cigars and cigarillos.
- Revenue loss of Rs 26,000 crore on direct tax proposals.
- 7.5 per cent duty on petrol, diesel, crude restored.
- Exempt duty raised for all non-smoking tobacco producs
- Investment linked tax deductions to be allowed to two
- star hotels anywhere in the country.
- Fiscal deficit seen at 4.8 per cent and 4.1 per cent in 2011—12 and 2012—13 respectively.
- 20 per cent tax for income above Rs 5 lakh and up to Rs 8 lakh
- 30 per cent tax for income above Rs 8 lakh.
- Income Tax department ready with two—page Saral—2 return forms for individual salaried assesses
- Surcharge on companies reduced to 7.5 per cent
- Additional exemption of Rs 20,000 for long term investment in infra bonds
- Ten per cent tax slab for income above 1.6 lakhs up to Rs. 5 lakhs.
- No income Tax upto Rs. 1.6. lakhs
- National Social Security Fund created for workers in unorganised sector with allocation of Rs.1,000 crore
- Government to give Rs.1,000 for each National Pension Scheme account opened by workers in the unorganised sector
- Exclusive skill development programme for the textile sector
- Fifty percent hike in allocation for schemes for women and child development
- Rs.4,500 crore allocated for ministry of social justice and empowerment, a hike of 80 percent
- Rs.2,600 crore allocated for ministry of minorities affairs
- Rs.1,900 crore for Unique Identification Authority of India
- Rs.147,344 crore allocated for defence
- 2,000 youth to be recruited in central paramilitary forces
- Draft Food Security Bill prepared and will be put in the public domain
 - Allocation on primary education raised from Rs.26,800 crore to Rs.31,300 crore
- Banking facilities to be provided to all habitations with a population of 2,000 and more
- Rs.66,100 crore allocated for rural development in 2010—11; Rs.40,100 crore for National Rural Employment Scheme; RS.48,000 crore for Bharat Nirman
- Rs.1,270 crore allocated for Rajiv Awas Yojna for slum dwellers, up from Rs.150 crore, an increase of 700 percent with the aim of creating a slum free India.
- Forty—six percent of plan allocations in 2010—11 will be for infrastructure development
- Coal Regulatory Authority to be set up to benchmark standards of performance
- Allocation for new and renewable energy sector increased 61 percent from Rs.620 crore to Rs.1,000 crore in 2010—11
- National Clean Energy Fund to be established
- Rs.200 crore allocated as special package for Goa to prevent erosion and increase green cover.
- Government committed to growth of SEZs.
- Four—pronged strategy for growth of agricultural sector.
- Rs.200 crore to be provided in 2010—11 for climate—resilient agricultural initiative.
- Involvement of private sector in grain storage to continue for another two years.
- In view of drought and floods, debt repayment period extended to June 2010.
- Five more mega food processing projects in addition to 10 existing ones.
- FDI flows in April—December 2009 $20.9 billion.
- FDI policy to be made more user—friendly with one comprehensive document.
- Apex level financial stability council to be set up for banking sector.
- Indian Banking Association to give additional licences to private players.
- Provision for further capital for regional rural banks.
- Roadmap for reducing public debt in six months.
- Implementation of direct tax code from April 2011.
- Government actively engaged in finalising structure of general sales tax regime; hopes to implement it from April 2011.
- Rs.35,000 crore raised from divestment in 2009—10; will be higher in 2010—11.
- New fertiliser policy from April 2010; will lead to improved productively and more income for farmers.
- Economy stabilised in first quarter of 2009—10; strong rebound in second quarter; overall growth at 7.2 and could be higher when Q3 and Q4 are taken into account.
- Export figures for January encouraging.
- Hope to breach 10 percent growth mark in not too distant future.
- Government set in motion steps to bring down food inflation.
- Need to review stimulus package; need to make growth more broad—based.
- India has weathered global economic crisis well; Indian economy in far better position than it was a year ago. In 2009 Indian economy faced grave uncertainty; delay in
- southwest monsoon had undermined agricultural production.
- First challenge now is to quickly revert to 9 percent growth and then aim for double digit growth; need to make recovery more broadbased.
- Second challenge is to make growth more inclusive; have to strengthen food security.
- Third challenge is to overcome weakness in government's public delivery mechanism; a long way to go in this.

HIGHLIGHTS OF RAILWAY BUDGET 2010-11

Introduction
· Economic viability and Social responsibility – main consideration for taking up of the projects.
· 'Inclusive growth and expansion of rail network' for development of the country.
· Special Task Force to clear proposals for investments within 100 days.
· A separate structure will be created within the Railways for implementation of the business models.
 
Commitments Fulfilled
 
· Of the 120 new trains, extensions and increase in frequencies announced, 117 would be flagged off by the end of March 2010.
· Recruitment policy of the Railway Recruitment Boards (RRBs) has been reviewed.
· RRB examination fee for woman candidates and those belonging to minority and economically backward classes waived.
· All question papers to be set in Hindi, Urdu, English and in local State languages and examination for a particular post will be held on the same date simultaneously by all RRBs.
· Izzat Scheme, implemented within three months of announcement.
· Work initiated in all the 67 Multi-functional Complexes (MFCs).
 
Development of Adarsh Stations started in phases.
 
Passenger Amenities/Facilities
 
· 94 stations to be upgraded as Adarsh Stations
· 10 more stations identified to be converted as World Class Stations
· Construction of additional 93 Multi Functional Complexes
· Multi-level parking through PPP route.
· Six clean drinking water bottling plants to be set up through PPP for providing cheap bottled drinking water.

Holi hai!!!

	The colorful festival of Holi is here...It's time to feast on delicious gujjia's, lip smacking kanji and awesome thandai...Yummy!!! The thought of these delicacies make my mouth water...So on Holi I am going to forget about the word calories and indulge my self in the bliss of food and play with colors and Pichkari's all day :D I am sure you are going to do the same!!!   Holi is one of the most beautiful and colorful of all festivals.It symbolizes the begining of  Spring and the end of all evil. It is lively, fun and vibrant. To enjoy the Holi festival to the maximum, it is important that we have a safe holi. Here are a few safety tips for holi that I think are most important.   Holi Safety Tips:   Play safe. Don't get to boisterous and do not let others to be rude on you. Discourage your friends to play Holi with eggs, mud or gutter water. Never turn a blind eye to such unclean ways of celebration...there is no fun in being dirty :) The best option would be to play with natural home made colors. Your skin and hair will not feel tampered with the use of skin friendly natural products.You can buy Eco friendly and organic colors too which are readily available in the market Make sure that your face is well moisturized before and after the play. Apply thick coating of paint on your nails- both in fingers and toes so that they remain protected.Oil your hair well, so that color doesn't stick on your hair and can be washed off easily later.Cover your hair. Make use of hat or caps to protect your hair Make sure that powder or any other product does not get inside your eyes. Use a sunglass to protect your eyes from a misfire of color filled darts or water jets. Use dental caps to save your teeth from any unwanted stains. Put on your worst clothes so that you won't have to take on the hassles of an immediate washing When traveling keep the car windows thoroughly shut. DO NOT DRINK AND DRIVE...there is no worse way to endanger your life.. Keep handy pain killers, anti-oxidants, anti-allergic tablets. It never hurts to be ready for any mishap.   Have a super fantastic and safe holi...I too will enjoy myself to the hilt. Talk to you next week with all the Holi stories :)   cheers,   Sheeza Radio Mirchi Webgirl Email: sheeza@radiomirchi.com www.radiomirchi.com Twitter - http://twitter.com/mirchiwebgirl

Check out Save Our Tigers | Join the Roar

Title: Save Our Tigers | Join the Roar
Link: http://gotaf.socialtwist.com/redirect?l=-219112869377324206021

Current Affairs: Economy Issues: 06 - 13 Feb 2010 by Dialogue India

CAG Weekly
(Current Affairs & GK)
By Om Prakash (goldy sir)

Economy Issues

Contents:

• Core group to be set up for tackling price rise
• Ceiling raised for FIPB clearance

Brief Description:

Core group to be set up for tackling price rise

• The government decided to set up a high-profile Standing Core Group to suggest measures to deal with price rise and propose steps for improving public distribution system, procurement of foodgrains and production of agriculture produce.
• The Group will comprise the Union Finance Minister, the Union Agriculture Minister, Chief Ministers of Andhra Pradesh, Assam, Punjab, Haryana, Bihar, West Bengal, Gujarat, Madhya Pradesh, Chhattisgarh and Tamil Nadu; Deputy Chairman of Planning Commission and the Chairman of Prime Minister's Economic Advisory Council.
• The Group will suggest measures for increasing agricultural production and productivity including long-term policies for sustained agricultural growth; to reduce the gap between farm gate prices and retail prices and for better implementation of and amendment of the Essential Commodities Act.

Ceiling raised for FIPB clearance

• In a significant move aimed at expediting flow of foreign investment into the country, the Union Cabinet liberalised the foreign direct investment (FDI) policy further by allowing the Foreign Investment Promotion Board (FIPB) to clear proposals from overseas entities worth up to Rs. 1,200 crore, against the existing limit of Rs. 600 crore.
• proposals involving total foreign equity inflow of more than Rs. 1,200 crore would be placed for consideration of the Cabinet Committee on Economic Affairs (CCEA).

GDP growth pegged at 7.2 %

• The Government pegged economic growth at 7.2 per cent in 2009-10, which was short of the optimistic projections of the Reserve Bank of India (RBI), Prime Minister Manmohan Singh and the Finance Ministry, although it was higher than 6.7 per cent recorded a year ago.
• Interestingly, according to advance Gross Domestic Product (GDP) estimates released by the Central Statistical Organisation, farm output is estimated to contract by 0.2 per cent and services to record a moderate growth. Manufacturing is estimated to grow by a robust 8.9 per cent this fiscal.
• According to the CSO, farm and allied activities are expected to shrink by 0.2 per cent this fiscal against 1.6 per cent growth a year ago. The estimated growth this fiscal is estimated to be driven by robust expansion of the manufacturing sector against 3.2 per cent in 2008-09.

RBI to introduce new base rate in place of PLR for banks from April 2010

• The RBI is reportedly coming out with guidelines on the concept of 'base rate' for lending by banks. This will be the rate below which a bank will not be permitted to lend.
• At the same time banks are also being given freedom to price loans below Rs. 2 lakhs so that they can compete with MFIs in lending to the financial excluded.
• Some of the highlights of the move include:
• Each bank to set its own base rate which will be linked to cost of funds
• Deposits cost, cost of maintaining CRR and SLR and operating expenses to be factored in for arriving at the base rate
• Banks can now compete with microfinance companies for small loans
• Floating rate loans will automatically come down when cost of funds for a bank declines
• Credit pricing set to become more transparent

Black economy

• Black money has long been regarded the bane of our development process. It results in

1. huge wastage of resources,
2. lowers the rate of growth,
3. leads to criminalization in society
4. breakdown of institutions,
5. undermines the capacity of Indian businesses to face the challenge of globalization,
6. jeopardizes our security,
7. Leads to poor governance.

Divestment figures touch decent figures; government aims high

• The 2009-10 Budget had estimated that disinvestment proceeds would fetch around Rs 1,120 crore.
• The recent follow-on public offer (FPO) of National Thermal Power Corporation (NTPC) is expected to bring the government at least Rs 8,300 crore.
• The other two remaining FPOs in the fiscal — Rural Electrification Corporation and NMDC — are likely to bring in another Rs 20,000 crore.

S.R. Mani Ayer passes away

• S.R. Mani Ayer, a veteran in the advertising field, passed away after a brief illness.

Strong criticism about carry trade

• Foreign exchange carry trades — where speculators borrow in a low interest rate currency and then lend or invest in another currency for profit — are increasingly being seen to pose a major risk to international financial stability.
• It is common knowledge that the Yen carry trade and more recently, the dollar carry trade have helped speculators create asset bubbles, especially in the developing world.

On French auctions

• The ongoing NTPC follow on public offering is reportedly being offered on French auction basis to investors.
• In this method, the firm announces a minimum (reserve) price. Investors place sealed bids for quantity and price. When the bids are in, the firm negotiates a minimum and maximum price with the market regulator. Any bid above the maximum price is eliminated as a virtual market order.
• The bidders who bid between the minimum and maximum price are awarded shares on a pro rata basis, each paying the minimum price. In the event that demand for the stock is too high, the IPO may be changed to fixed-price offering.

Parikh panel recommends flat tax on diesel cars

• The Kirit Parikh Committee proposal for imposing a flat tax of Rs. 81,000 on diesel cars, including sedans and gas guzzlers SUVs and MUVs, may be worrying the big names in the industry, but environmentalists who have campaigned against 'dieselisation' of personal transport say the plan is too little and too late.

OVL consortium bags 40 per cent stake in Venezuelan block

• ONGC Videsh Limited (OVL)-led consortium announced that it had bagged 40 per cent stake in a $19-billion project to develop a major crude oil block in Venezuela.
• OVL, Indian Oil Corporation (IOC) and Oil India Limited (OIL) along with Spain's Repsol YPF SA and Malaysia's Petroliam Nasional Bdh won rights to develop the Carabobo-1 block in Venezuela's Orinoco Belt, according to a statement issued here.

GST set to be levied at 16%, goods may cost less

• The long-awaited reform of India's indirect taxes system is set to get a fillip, with a broad consensus forming within the finance ministry on a rate of 16% for the proposed Goods and Services Tax (GST) for both Centre and states combined.
• To be levied on all companies and traders with annual turnover of Rs 10 lakh and above, this would provide a tax base of 40-45 lakh assessees and ensure that neither the Centre nor states suffer any revenue loss. 
• Sources said rates for both the Centre and states on GST could be 8% each.

Centre wants alcohol, petro products under GST  

• The law ministry is believed to have sent a detailed response on the suggestions sought by the department of revenue towards finalisation of draft Constitutional amendment of the indirect tax reforms. 
• The proposed GST was initially scheduled to be implemented from April 1, 2010. However, lack of consensus between states and the Centre on a uniform tax structure and their inability to carry out necessary legislative amendments led to its postponement by another six months. 

Relook at OVL's Qatar exit plan'

• The Cabinet Secretariat has sought a fresh round of inter-ministerial consultations for seeking Cabinet approval to have a relook at ONGC Videsh Ltd's earlier decision to relinquish an offshore acreage in Qatar that the company had won in March 2005. 
• ONGC Videsh had in 2008 taken a decision to relinquish the prospect, Najwat Najem, located in the Arabian Gulf.
• The decision was taken after the company found that the reserves in the block were not enough to be commercially viable. The company had also decided to give up the rig it had acquired for drilling in the acreage.  
• An empowered committee of secretaries had on June 24, 2009 made its recommendations and cleared the ONGC proposal to give up the acreage. The Cabinet Secretariat, however, has now returned the oil ministry note for seeking Cabinet approval. It has asked the ministry to seek comments from other pertinent ministries before seeking Cabinet's approval on the ground that the secretaries panel did not have authority to decide issues of acquisition or relinquishment.  
  

Pre-consultation paper on 4G spectrum issued

• While the country awaits the auction of spectrum for the full-fledged launch of 3G mobile services, the Telecom Regulatory Authority of India (TRAI) issued a pre-consultation paper on 4G (fourth generation) telecom services which will provide ultra-broadband Internet access.
• The new 4G networks will allow users to stream mobile multimedia, such as TV broadcasts and online games, at up to 10 times the speed of 3G (third-generation) networks.
• 4G mobile networks have already been commercially launched in Sweden and Norway,Operators in other countries like the U.S., Korea and Japan are gearing up to launch 4G mobile wireless broadband services.
• The 3G services in India are now likely to be available only in 2011...if the auction of 3G spectrum is held in August or September 2010. India will thus be lagging behind a large number of countries in the world.

Courtesy:- Dialogue India and Career Plus