The Hindu Business Line : Weekly News Round-up

The annual Wholesale Price Index-based inflation has dipped to a nine-month low of 6.61 per cent for the week ended December 13. This is lower than the previous week's rise of 6.84 per cent, helped mainly by a recent duty cut on manufactured products and lower energy prices.

However, in the `primary articles' group, the rate of inflation increased to 12.15 per cent, as compared to 11.81 per cent reported last week, mainly due to an increase in iron ore prices.

Reliance Petroleum on Thursday began crude processing at its new 29 million-tonne refinery in Jamnagar, Gujarat. This export-oriented $ 6-billion project is expected to target markets in Europe, North America and Asia for its products.

The World Bank has decided to keep Satyam Computer Services off all businesses for a period of eight years beginning September 2008. The decision was taken following allegations of data theft in a project handled by the Hyderabad-based software solutions company.

Satyam Computer Services has asked the World Bank to apologise to it for harming its interests. It also asked the Bank to explain the circumstances related to the "Bank's inappropriate statements" quoted in the media extensively.

Wipro Technologies acquired Citi Technology Services Ltd, the India-based captive IT unit of Citigroup Inc for about Rs 615.8 crore in an all cash deal.

Wipro and Citi will sign a master services agreement for delivery of technology infrastructure services and application development and maintenance services for six years as part of the deal, under which the banking giant will source services worth at least half a billion dollar from the Indian vendor.

The advance tax contribution of the top ten advance tax paying companies grew only 6.6 per cent up to the December 15 instalment on a year-on-year basis. This was in sharp contrast to the near 30 per cent year-on-year growth witnessed in contributions of the top ten advance taxpayers' at the same time last year.

However, the absolute advance tax payout of the top ten advance taxpayers were higher so far this fiscal at Rs 23,129 crore as against Rs 22,197 crore in the same period last year.

The flagging growth rate in the contributions of the top ten advance taxpayers is suggestive of a slowdown in the economy, say economists and tax experts.

Cairn India Ltd has struck more oil and gas in its Rajasthan block which could take the estimated production from the area beyond the targeted 175,000 barrels a day by 2010. The company's exploration team is yet to determine the reserves from the fresh find in the area.

Come New Year, State Bank of India's borrowers, both retail and corporate, will have something to cheer about. The bank has decided to slash its benchmark prime lending rate by 75 basis points to 12.25 per cent with effect from January 1, 2009.

Depositors, however, will be disappointed as the bank has decided to cut interest rates on deposits by 25-100 basis points across various maturities beginning New Year. For one year to less than 2 years of deposit, the new rates from January 1 will be 8.50 per cent.

Compiled by M J Madhavan
Podcast by A Srirengarajan