The Hindu Business Line : Weekly round-up

The Supreme Court, in a significant verdict last Thursday, upheld the law enacted by the Union Government providing 27 per cent quota for Other Backward Classes in Central educational institutions such as IITs/IIMs from the academic year 2008-09.

A five-Judge Constitution Bench headed by the Chief Justice, Mr K.G. Balakrishnan, also held that the 93rd Constitution Amendment inserting Article 15 (5) in the Constitution to enable the Centre and States to enact quota laws is valid.

Reforms panel moots delinking banks from govt

The Committee on Financial Sector Reforms headed by Dr Raghuram Rajan, former IMF Chief Economist, has suggested a number of steps to reform public sector banks.

The panel mooted that public sector banks be allowed to seek out strategic partners including private and foreign financial institutions, with partners' voting stake of up to 20 per cent.

The committee also recommended delinking banks from government.

Duty entitlement passbook scheme to continue for another year

The Union Commerce and Industry Minister, Mr Kamal Nath, released the final year supplement to the Foreign Trade Policy last Friday.

The supplement has slew of measures to pep up export of traditional industries hit by the rupee appreciation, major spurs to cut down transaction costs, procedural simplification, extension of the popular duty neutralisation DEPB (Duty Entitlement Pass Book) scheme till May 2009 and also a one-year extension beyond March 2009 in income-tax benefit to 100 per cent export units.

Steel costlier by Rs 5,000/t

In a move that could further spur the inflationary trend, steel prices went up, with primary steel makers effecting a flat raw material surcharge of Rs 5,000 a tonne in prices of all grades of hot-rolled steel.

Along with the existing 14 per cent excise duty, this would lead to a net increase of Rs 5,700 a tonne to the end customer.

Inflation surges to 40-month high

The annual Wholesale Price Index-based inflation rose 7.41 per cent during the week up to March 29, up sharply from the previous week's 7 per cent rise. During the latest week, wholesale prices in the iron and steel category were up a whopping 34 per cent on a year-on-year basis, while edible oil prices shot up 20 per cent on a year-on-year basis.

Among essential items, prices of cereals, vegetables, milk, spices, dairy products were up 9 per cent, mineral oil, cement and coal prices have also risen sharply.

Govt bans cement exports to stem price rise

The Centre has banned cement exports from the country in an apparent attempt to improve supplies in the domestic market and stem cement price rise during the coming months.

Official sources said that the Government was, through this move, trying to send a signal that it would step in to address inflationary concerns.

Govt buys wheat on `call option' from Cargill at $406/tonne

The Union Government has purchased 1.8 lakh tonnes of wheat on "call option" at a price of $406 a tonne cost and freight at a premium of $35 a tonne.

The option to seek delivery of the cargo is to be exercised by July 15.

On behalf of the Government, STC has entered into an agreement to purchase the said quantity from the multinational grain major Cargill International.

Imports from 50 poor nations to be duty-free

India unveiled a Duty Free Tariff Preference Scheme for imports from as many as 50 Least Developed Countries (LDCs), 34 of which are in Africa.

This was announced by the Prime Minister, Dr Manmohan Singh at the two-day India Africa Forum Summit.

The Prime Minister said that under the scheme India would unilaterally provide preferential market access for exports from all 50 Least Developed Countries, a majority of which were in Africa.

Orchid silent on Ranbaxy interest

The race to acquire Orchid Chemicals and Pharmaceuticals hotted up this week with the promoters of Chennai-based Apollo Hospitals understood to be evincing interest in picking up stake in the pharma company.

It was learnt that nearly three lakh Orchid shares were picked up from the open market last Tuesday and the top management was in touch with the Orchid's Managing Director, Mr K. Raghavendra Rao.

Apparently, Dr Prathap C. Reddy, wants to strengthen the position of the health-care giant, particularly in the background of Fortis Healthcare, a Ranbaxy-promoted group company, taking a stake in Chennai-based Malar Hospitals last year

Orchid also faces a reported hostile bid from a Ranbaxy outfit - Solrex Pharmaceuticals.

Tata Comm loses appeal against FLAG

Tata Communications has lost its appeal against FLAG, now part of Reliance Globalcom, at the district court of The Hague, Netherlands in the matter of allowing FLAG access to the FLAG Europe Asia Cable (FEA) landing Station in Mumbai, which is owned by Tata Communications.

Tata Communications will be ordered to pay the cost of the proceedings, said the court order.

The dispute between the two companies goes back a few years; FLAG accused Tata Communications of denying it free access to its cable landing station and of therefore having a monopolistic hold on bandwidth prices.

M.S. Gill, Scindia among 7 inducted

In a Cabinet expansion that is expected to be the last before the Parliamentary elections next year, the Prime Minister, Dr Manmohan Singh, inducted seven members including Mr Jyotiraditya Scindia and Mr Jitin Prasada, both members of the Congress Youth brigade, into the Union Council of Ministers.

The former Chief Election Commissioner, Mr M.S.Gill, who was elected to the Rajya Sabha from Punjab on a Congress ticket, has been made Minister of State with independent charge. He would hold the portfolio of Sports and Youth Affairs. All the other six ministers inducted are Ministers of State.

Three other Congress MPs - Mr V. Narayanasamy, Mr Rameshwar Oraon and Mr Santosh Bagrodia and RJD member Mr Raghunath Jha were also sworn in as ministers.

Ganesh Natarajan is new Nasscom Chairman

Dr Ganesh Natarajan, Deputy Chairman & Managing Director of Zensar, has been appointed as the new Chairman of Nasscom for the financial year 2008-09, while Mr Pramod Bhasin, President and CEO of Genpact has been elected as the new Vice-Chairman.

Compiled by M. J. Madhavan