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SUBSIDY DEPENDENCE FOR DISCOMS OF 16 STATES MAY RISE SHARPLY, SAYS ICRA

NEW DELHI: The subsidy burden for distribution utilities of 16 states is estimated at Rs 72,000 crore, 17% higher than the previous financial year, due to higher costs and cheaper tariff for the farm sector, said ICRA in a recent note. The note states that state electricity regulators in 16 out of the 29 states have issued tariff orders for the current fiscal so far, attributing the delay partly to the recently-held Lok Sabha elections.

The rating agency noted that subsidy dependence for utilities in Maharashtra is likely to increase sharply by about 55% on a year-on-year basis in FY15 as a result of tariff subsidy of 20% announced by the state government, and also for Jammu & Kashmir where the subsidy burden is projected to rise

INDIAN OIL, BPCL, HPCL TO REVIVE PREMIUM PETROL BRANDS ON EXCISE CUT

MUMBAI: The state-run oil marketing companies (OMCs) plan to revive branded petrol such as IndianOil’s XtraPremium and Bharat Petroleum’s Speed, backed by aggressive marketing, to make the most of a significant excise duty cut announced in the budget.

Sales of branded petrol, which contain additives that enhance automobile’s performance, had plummeted in recent years as they became Rs 7-10 per litre more expensive than the regular fuel, forcing companies such as Hindustan Petroleum Corporation (HPCL), Indian Oil Corporation and Bharat Petroleum Corporation (BPCL) to pull out such products from most outlets. But with finance minister Arun Jaitley announcing a cut in central excise duty on branded petrol to Rs

SEARCHING FOR THE IDEAL FDI IN DEFENCE PRODUCTION

When Finance Minister Arun Jaitley kept the FDI cap in defence at 49 per cent, he said: “Our assessment of the market is that the 49 per cent FDI limit in the sector would be a significant step in establishing domestic defence market. The public opinion and Parliament’s opinion in India is ready to accept the proposal that I have made.”

Mr. Jaitley was also in consonance with the policy sentiment that has evolved within the government over many years. As far back as in 2004, key economists argued before the Planning Commission that 100 per cent FDI in high technology would enable India to reduce or limit its technology imports; in 2008, the National Manufacturing Competitiveness Council constituted by former Prime Minister Ma

SIX BANKS MAY GET `TOO BIG TO FAIL’ TAG

MUMBAI: The Reserve Bank of India has said that up to six banks will be designated as systemically important, or SIBs, for the domestic financial market and will need to have higher capital than their peers to prevent the financial system from collapsing if there is a crisis.

The central bank said it would now go about identifying these banks which are too big to fail and would release a list of names in August 2015, according to a report uploaded on its website on Tuesday evening.

State Bank of India, Punjab National Bank, Citibank, Standard Chartered Bank, ICICI Bank and HDFC Bank may be among the six, according to consultants and analysts. Banks falling in this category will have to set aside more capital per l

HIGHER POWER RATES NOT TO HIT STATE UTILITIES

NEW DELHI: Consumers of Tata’s ultra mega power project (UMPP) and Adani’s power plant at Mundra in Gujarat might not see a major escalation in their procurement price after the Appellate Tribunal for Electricity (APTEL) gave its nod to include compensatory rate in the final rate of sale of power.

The beneficiary utilities in Gujarat, Haryana, Rajasthan, Punjab and Maharashtra are already buying power for Rs 3.61 to Rs 3.7 a unit, according to the annual revenue requirement reports submitted to state regulators.

The levelised tarifforiginally offered by Tata’s imported coal-based UMPP is much lower at Rs 2.26, but after the compensatory tariff of 52 paise, it would work out to Rs 2.8. Power from

FUEL SUBSIDY SYSTEM REVAMP LIKELY, ONGC GETS REASON TO CHEER

NEW DELHI: The government plans to tweak the system of calculating fuel subsidies to make ONGC’s public offer more attractive for investors. It plans to make subsidy sharing more predictable and transparent so that analysts can properly assess the ONGC’s earnings outlook.

Currently they are unable to assess the amount and the timing of the huge subsidy payout. This diminishes the interest of top institutions in the stock.

The oil ministry may soon approach the Cabinet to overhaul the fuel pricing system to incorporate some of the observations of the Comptroller and Auditor General of India, which recently submitted a report on the matter.

The pricing system has a direct impact on O

INDRA-2014 DRILLS ENDED SUCCESSFULLY IN RUSSIA’S FAR EAST

Russian-Indian international naval drills Indra-2014 ended in Russian far eastern city of Vladivostok. “Russian and Indian naval sailors fulfilled all tasks completely,” head of the press service of the Russian Pacific Fleet Captain First Rank Roman Martov told Itar-Tass on Sunday.

At the final meeting aboard the guards missile-carrying cruiser Varyag Assistant Commander of the Pacific Fleet Rear Admiral Andrey Ryabukhin noted that interoperability and trust between two fleets reached a very high level.

For his part, Commander of the Indian Eastern Fleet Rear Admiral Atul Kumar Jain said at this meeting that naval sailors had acquired a very good experience and were on the way back home with the posit

Ban on camels being sacrificed during Haj in Mecca, says Dubai scientist

DUBAI // Camels will not be sacrificed during this year’s Haj in Mecca in an attempt to stop the spread of the Mers coronavirus. Dr Ulrich Wernery, scientific director at the Central Veterinary Research Laboratory (CVRL) in Dubai, said he was part of a team that recommended the measures to the Saudi Arabian ministry of health. A genetic link between the Mers found in humans and a […]

Middle East set to gain gold global market share

The Middle East will take a bigger share of gold demand as buyers from Kuwait to Saudi Arabia to the United Arab Emirates diversify investments and Dubai nears offering a contract for immediate delivery bullion. MKS (Switzerland) SA, a Geneva-based bullion trader and refiner, expanded into Dubai three years ago and employs 25 people there, with the gold trade an “important market,” said Frederic Panizzutti, chief executive […]

Why working longer could leave you with less

By removing the boost to people who stay in work, the government will now be penalising those who it should be rewarding Photo: Alamy Britain’s state pension has never been known for its generosity. But one of the lesser known perks of the system is that it’s possible to get a very generous bonus if you decide to carry on working and take your state pension later. As […]

Egypt turns to Western advisors in reform bid

 Western advisers are drawing up plans for reshaping the Egyptian economy, sources said, with the apparent blessing of president-elect Abdel Fattah al-Sisi who so far has spoken only vaguely in public about reviving the state’s finances. The driving force behind the consulting project is the United Arab Emirates, which along with Saudi Arabia and Kuwait has showered Egypt with billions of dollars in aid since Sisi removed […]

P.O.W. Deal Gives Qatar a Victory, and a New Test

DOHA, Qatar — The five hardened Taliban militants were quickly whisked in a fleet of cars to the shoulder of a highway on the outskirts of the capital just as they arrived. There, out of the public eye and under the watchful gaze of Qatari security, they exchanged warm hugs with a welcome delegation and then once more were whisked off into hiding. If Qatar holds to […]

As Iran Gains Influence, Saudi Arabia Revisits Ties Built on Distrust

BEIRUT, Lebanon — The fevered struggle between Saudi Arabia and Iran for regional dominance has for years aggravated nearly every conflict across the Middle East as the two nations armed, funded and encouraged each other’s adversaries. So it has come as a surprise to many here that even with the region still in tumult, there have been signs that both powers are looking to temper their destructive […]

Samsung chairman summoned by Indian court

Samsung Electronics Chairman Lee Kun Hee, South Korea’s richest person, was ordered to appear before an Indian court in a dispute over a $1.4 million payment after losing a motion to avoid presenting himself. Lee should appear on July 14 after his petition was dismissed, Magistrate Ram Karan Yadav of Ghaziabad district court in Uttar Pradesh state said in an order issued June 2. Samsung spokeswoman Rhee […]

Openness on Israeli Issues Seen in Survey of Iranians

JERUSALEM — An unusual survey of Iranian public opinion indicates that 40 percent of Iranians would be willing to give up any ability to produce nuclear weapons in the future in return for the full removal of sanctions. Nearly 40 percent of those asked agreed that Iran should recognize Israel if Israel reached a peace accord with the Palestinians and withdrew from the contested territories. Such delicate […]

Shopping and health checkup: women in Sharjah get cardiovascular screenings at mall

Campaign conducts 3,685 checks in the Northern Emirates SHARJAH // Women in Sharjah were the latest in the UAE to be encouraged to check their cardiovascular health at a free initiative being run in conjunction with Al Qassimi Hospital. The initiative, held at My City Centre yesterday, is part of Go Red for Women, a global campaign founded by the American Heart Association to raise awareness about […]

International experts praise UAE’s Mers coronavirus efforts

WHO team makes five-day visit to UAE International experts and local authorities agree to continued exchange of information in attempt to reduce risk of further infections ABU DHABI // International infection experts yesterday praised the work of UAE health authorities in attempting to better understand the deadly Mers coronavirus after completing a mission to assess the risk the virus poses to the country. A team from the […]

Obama’s words prove UK’s worth on the world stage

HE doesn’t live here and doesn’t have a vote but Barak Obama’s decision to throw his weight against the break up of Britain is undoubtedly one of the best bits of news that the opponents of separation could have wished for. There probably won’t be a rash of Better Together stickers in the windows of the White House or in the presidential limousines but his words in […]

G7 leaders warn Russia of more sanctions

Barack Obama and leaders of the G7 group of nations have threatened Russia with more sanctions if it continues to undermine the sovereignty of Ukraine and fund separatists in the east of the country. The US president issued the warning on Thursday and urged his Russian counterpart Vladimir Putin to hold direct talks with the Ukrainian president-elect Petro Poroshenko to end the crisis. “The kinds of destabilising […]

Too Many Ports, Not Enough Trade in the Middle East

An aerial view of Khalifa Port in Abu Dhabi Reuters Capacity at seaports and airports in the Middle East is growing faster than regional trade, potentially jeopardizing the viability of billions of dollars worth of new investment in transportation infrastructure. Government-led investment in regional logistics and transport has taken off in the past decade, driven by energy-rich Gulf Arab countries trying to carve out a niche as […]

Listening Post: Hamas Looms Over Latest Israel-U.S. Dispute

WASHINGTON — For allies who speak often of their unbreakable bonds and constant communication, this has been a season of static between Jerusalem and Washington. The latest eruption was over the announcement this week that the United States would work with a new Palestinian government that emerged from reconciliation talks with Hamas. Prime Minister Benjamin Netanyahu and other senior Israeli officials have condemned the Obama administration in […]

UAE weather: Falling temperatures and blowing dust and sand forecast

ABU DHABI // Residents will have more relief from the recent sweltering heat this weekend, with Thursday’s cooler conditions forecast to continue. The weather bureau says the drop of up to 7°C in many parts of the country is set to continue on Friday and Saturday as the north-westerly Shamal wind makes a welcome return, with cloudy, windy and hazy conditions. “It will be slightly hazy on […]

Influence of Islamic architecture is clear to all

ABU DHABI // The influence of Arabic architecture on European buildings should not be underestimated, experts from Spain said at a talk in the capital. As part of the first event in a series of collaborations with Universidad Europea de Madrid, Alhosn University gathered some of Spain’s foremost architects from both universities to discuss how Middle Eastern and Spanish architecture have learnt from each other. Dr Miguel […]

Salmond has stood by while followers have thrown insults

First things first; I would have much preferred it if Alistair Darling hadn’t, as the New Statesman claimed, likened Alex Salmond to that odious North Korean dictator. Such language, if used, always cheapens political debate. But in saying that I’m bound to add that it could only have been a matter of time before the former chancellor responded in kind to the type of abuse he’s had […]