INDIA INTELLIGENCE REPORT

 

Business & Economy
 
 
Ticklish issues in oil pricing


What is India News Service, August 16, 2004, 1700 hrs IST


The value-based duty may have fetched handsome revenue in near-term but the likely adverse fall-out of an oil price rise on production and consumption in other sectors of the economy in the long-run cannot be ignored.

When inflation returns: An initial phase of denial and inopportune timing with regard to the EPF interest rate have been the highlights of the past two weeks characterised by a resurgent inflation.

Scare not scarcity behind soaring oil prices: Most of the price increase can be attributed to the `scare' factor, leading to apprehensions of `scarcity'.

Blinkx: Desktop, web search tool: This editionof NetSpeak brings to your attention the new web/desktop search tool, blinkx, which has already garnered a lot of attention from Net technology observers. 

Provision to curb dividend stripping: QUESTION: What are the changes in the budget which would affect the corporate sector? ANSWER: Amendment to Sec. 94 is proposed to neutralise dividend-stripping by acquiring shares ex-dividend prior to distribution and booking.

Buyers stay away from bourses: Rising crude oil prices and domestic inflation kept the bourses in check as renewed selling emerged in the last three trading sessions of the week ended August 13. 

Changes in procedural law: There are a number of changes in procedure. Lack of need for separate identification numbers as a deductor of tax at source (TAN) and as a collector of tax at source (TCN) is now recognised. 

PM\92s I-Day vow: more jobs: Prime Minister Manmohan Singh today said the government would address the issue of additional employment generation by encouraging the growth of small and medium enterprises.

If oil PSUs merge, retail petro prices may fall: At a time when crude oil prices have crossed $ 45 per barrel in the international market, the Ministry of Petroleum and Natural Gas has proposed to merge public sector oil companies to create two giant players that may reduce the price of petro-products by 7-8 per cent.

Oil price hike deferred: State-owned oil marketing companies (OMCs) have deferred a decision to hike prices of petrol and diesel today.

We are booming without you, India tells Pak: The message India conveyed to Pakistan at the just-concluded Commerce Secretary-level talks was that the Indian economy was booming without Islamabad and it was up to Pakistan to board the bus of economic development or miss it at its own peril.

Insurers oppose move of tax on premium: The insurance industry has urged the government to withdraw the proposal to impose a 10 per cent service tax on life insurance premium.

Aviva to up headcount by 1,100 in Indian BPO arm:  The private life insurer, which has call centres in Bangalore, Pune and Noida is planning to increase its staff in India to 3,800 by end of 2004.

Cement prices likely to spurt across south India: Threat of nationwide transporters' strike from Aug 21 to push prices by Rs 10-15/bag.

LIC set to test 5 new countries: Starts operations in Mauritius; plans to enter Maldives, Botswana & Seychelles

Target: Middle India: Corporates are slashing costs & re-working biz models to become true mass market players.

Battle behind the headlines: Delhi-based NDTV has turned around smartly and is fighting for the top spot.

Markets end flat; Tisco sizzles: The Sensex opened a tad higher at 5,105 - up two points. The index soon slipped into negative zone on selling pressure. Sustained selling
in select index heavyweights, auto and pharma stocks pushed the index to an intra-day low of 5,056.

Overall:

Cement prices may rise again: Threat of nationwide transporters' strike from Aug 21 to push prices by Rs 10-15/bag.

Oil price hike deferred: State-owned oil marketing companies (OMCs) have deferred a decision to hike prices of petrol and diesel today.

PM assures more jobs: Prime Minister Manmohan Singh said the government would address the issue of additional employment generation by encouraging the growth
of small and medium enterprises.