India to implement on Oil Payment Method

The Indian cabinet will decide on the mode of payment for oil imports from Iran, the head of India state-run explorer ONGC said on Friday, without giving any hint on what the final outcome would be. Iranian supplies to India have not yet been hit, despite India's central bank, the Reserve Bank of India (RBI), doing away with the clearing house system for crude imports from the Islamic Republic in December, under pressure from the United States, the Economic Times reported.

Earlier in May, Financial Express quoted an Indian official as saying that Indian Finance Ministry was drawing up a note for the Cabinet on payments for Iranian oil in rupee. Under the proposal, National Iranian Oil Company (NIOC) would open rupee account with Indian banks and could use the fund to purchase non-strategic items such as railroad imports and buying commodities.

India had in February begun making euro payments through an Iranian bank based in Germany. However, under US pressure, Germany soon stopped accepting money from India for onward transfer to Hamburg-based EIH Bank, sending India to the doorsteps of the UAE. The Indian government explored the possibility of Indian oil firms opening accounts in banks such as Dubai-based Noor Islamic Bank for direct transfer of money to Iran. But UAE also refused to route payments.

New Delhi also approached Turkey but failed to get any response, the official said. India imports 12 million barrels of crude oil every month from Iran, which is the nation's second-largest supplier after Saudi Arabia. The problem began after the RBI, on December 23, scrapped the Asian Clearing Union (ACU) mechanism for paying for Iranian crude oil imports, which make up for 12 percent of the nation's oil needs.

In February, it began clearing its dues for Iranian oil imports by making euro payments through German-based Europisch-Iranische Handelsbank AG (EIH Bank). About €1.5 billion had been paid through EIH before Germany refused to accept any further payments.

India’s Rediff unveils Daily Deals Site Deal

Rediff.com, one of India’s oldest Internet companies, has launched a group buying site called Deal Ho Jaye! The site has partnered with over 700 merchants to offer deals of 30 to 60 percent off in 40 market locations in India. “With the introduction of Deal Ho Jaye!, Rediff now offers local merchants and business owners options for reaching consumers beyond their traditional scope, building upon our e-commerce platform. Merchants can take advantage of Rediff.com’s reach to generate business through new customers by offering special discounts and promotions on Rediff Deal Ho Jaye!,” said Ajit Balakrishnan, Chairman and CEO of Rediff.com.

As with many daily deal sites, offers on Deal Ho Jaye! will only be available for one day and consumers will have to pay in advance with either an electronic payment or cash which will be picked up from the consumer by a Rediff representative. Upon payment the customer will get a voucher with a unique number which they can then present to the merchant. Balakrishnan added that India’s poor broadband issues were not going to be a problem for the success of Deal Ho Jaye! since the service will also be available on WAP-enabled mobile phones and users can access the available deals on their mobile devices.

There are currently a number of group buying sites in India including Groupon, Snapdeal.com, Indiatimes Active Deals, Taggle, BuyThePrice, MyDala and DealsAndYou. Some have said that Deal Ho Jaye! Is coming late to the game but what will determine the success of the site is the quality of the deals.

Petitions in Bhopal gas tragedy

Survivors of the Bhopal gas leak disaster have urged the Supreme Court to hold daily hearings on the civil and criminal curative petitions filed by the Centre. Survivor organisations Bhopal Gas Peedith Mahila Udyog Sangathan (BGPMUS) and the Bhopal Gas Peedith Sangharsh Sahyog Samiti have also urged the Supreme Court to constitute a special court and appoint a Special Public Prosecutor as it has done in the 2G spectrum scam case.

Sore with

Vahanvati

“We feel compelled to make these requests since the Attorney-General Mr. G. E. Vahanvati, in Wednesday's hearing, merely spoke for re-framing the charges against the Indian accused in the case to Section 304-II [of the Indian Penal Code] and did not ask for any such special provisions for the case which it deserves,” Abdul Jabbar of the BGPMUS told The Hindu. “Without special treatment, we are afraid the case will go the same way as it did in the trial court and the victims might have to wait another 26 years for justice,” he said. Recently, the Supreme Court has directed the Centre to constitute a special court and has named U.U. Lalit as the Special Public Prosecutor in the 2G spectrum scam case.

Curative petition

The curative petition in the gas tragedy, filed last July by the Centre, seeks a review of the 1996 order, passed by a Bench presided by the then Chief Justice of India, A.M. Ahmadi, that diluted the charges against the Indian accused from Section 304-II (culpable homicide not amounting to murder) to Section 304A (causing death by negligence). The 1996 order eventually led to the controversial June 7th judgment of the Bhopal Chief Judicial Metropolitan Court whereby the convicts, including former UCIL chairman Keshub Mahindra, got away with mild sentences and were subsequently released on bail the same day.

The survivor organisations have also requested the Supreme Court to ask the Centre about what it was doing to bring to book Union Carbide Corporation (New York), Union Carbide Eastern (Hong Kong) and Warren Anderson (former chairman of Union Carbide) — absconding since 1992.

Pak comedian passes away during Indo-Pak match

A Pakistani comedian died while participating in a TV show organised for the Pakistan-India World Cup semi-final match that India went on to win, a media report said Thursday. Daily Times reported that comedian Liaqat Soldier, 55, died due to heart attack in Karachi on Wednesday. The comedian was taking part in a special show of a local TV channel when he suffered the heart attack and died on his way to hospital.

India beat Pakistan by 29 runs at the match held in Mohali which was witnessed by Prime Minister Yousuf Raza Gilani and his Indian counterpart Manmohan Singh. The meeting between Gilani and Manmohan Singh has been dubbed cricket diplomacy.

India will now play against Sri Lanka in Mumbai on Saturday in the finals. Liaqat started his career as an actor in 1973 and performed in over 250 television plays, besides numerous stage dramas across the globe during his 38-year career. His first movie was Qaid while his first drama was Tum Kia Jano. He also worked in several parody movies.

Indian Mutual Funds Market to observe Strong Growth

According to our research report “Indian Mutual Fund Market Analysis”, the mutual fund market in India is experiencing rapid growth on the back of infrastructural developments, increase in personal financial assets, and rise in foreign participation. With the growing risk appetite, rising income, and increasing awareness, mutual fund in India are becoming a preferred investment option compared to other investment vehicles, such as Fixed Deposits (FDs) and postal savings that are considered safe, but provide comparatively low returns. Moreover, it is expected that the Indian Mutual fund asset under management will reach INR 13,250 Billion by 2014, growing at a CAGR of around 15% during 2010-2014.

Ongoing research found that despite huge potential, the limited participation by the Indian rural sector greatly restrains the mutual fund industry's growth. Mutual funds are still inaccessible to a major part of the rural population due to poor distribution, lack of awareness among investors, and limited banking facilities. Moreover, asset management companies show reluctance towards investing in infrastructure building of smaller towns due to the lower margins from rural businesses.

The report outlines mutual fund market by segmenting it into various subsections, i.e. by investment objectives, type of investors, type of asset management companies, and geographical location. It also elaborates the fact that, banks and asset management companies should share the responsibility of penetrating into the rural economy. Besides, they need to create awareness among the masses about their products and their benefits in the coming years. Thus, opportunities in the rural sector will add to the growth of the Indian mutual fund industry during the forecast period.

The latest industry research titled “Indian Mutual Fund Market Analysis” by RNCOS, provides a detail analysis along with current and future outlook of the Indian mutual funds industry and explores the market development and potential. Forecasts and estimations present in this report are not based on a complex economic model, but are intended as a rough guide to the direction, in which, the industry is likely to move in future.

Daily Indian Stock Market

Australia-based solar power company Sunengy has entered into a partnership with Tata Power that will allow it to build a pilot plant for its low-cost, floating on water and solar technology in India by the end of this year. Vedanta Group firm Sesa Goa on has acquired the assets of the upcoming steel plant of Bellary Steel and Alloys, put on the block by a consortium of lenders led by IFCI for Rs 220 crore. Mundra Port and Special Economic Zone (MPSEZ), top private multi-port operator, has secured a bid to develop a coal import terminal at Visakhapatnam. The terminal will be built at cost of over Rs 300 cr. This marks the entry of MPSEZ on the eastern coast of the India.

Patel Engineering has bagged Rs160.69-crore order for the up gradation of Tinthini-Kalmala road from the Karnataka Government. The project comprises upgradation of 73.8-km long stretch from Tinthini to Kalmala, a part of State Highway 61 and State Highway 15. Sheths of Great Eastern Shipping have deployed part of the cash generated from their traditional shipping business to expand their offshore business with Singapore as the hub for global operations.

Economic Highlights

In a bid to provide relief from high inflation, the government today increased dearness allowance (DA) by 6% to 51%, benefiting over 50 lakh central government employees and 38 lakh pensioners. The combined impact of the hike will be Rs 5,715.90 crore per annum. However in the next financial year, the burden on the exchequer would be Rs 6,668.52 crore after the additional 6% DA payout is factored in from January 1 to March 31 this year. The increased DA, which will be effective from January 1, is provided to government staff and pensioners to compensate them for rising prices.

To meet ever-increasing energy demand, the Ministry of New and Renewable Energy (MNRE) is looking at the possibility of generating 10,000 MW of power in the next 10 years from surplus biomass. The rising demand for energy on one hand and depletion of fossil fuels and increasing import of coal on the other has made it necessary to look at dedicated plantation-based biomass power and energy as an alternative source. MNRE is exploring the possibility of generating 10,000 MW of power in the next 10 years from surplus biomass, both agro and forest residues.

Three SriLanka fishermen under Indian custody

Three Sri Lankan fishermen were arrested by Tamil Nadu fishermen on Tuesday and handed over to Indian Navy. These fishermen left Velveddithurai Tuesday morning and when they entered the Indian waters, they were apprehended by TN fishermen.

Indian Navy later handed over the fishermen to the Tamil Nadu Police. The relatives were informed by the police about their detention. The fishermen arrested were Nadaraja Sundaram, Pathmanadan Padmaraja and Paramasundaram Kesawaruban.

Buffett’s first trip to Bangalore

Warren Buffett arrives in Bangalore this afternoon, the first leg of his maiden trip to India. The world's third richest man is scheduled to land at the Bengaluru International Airport at 2.30 pm. Sources at the airport said he is coming with a team from Berkshire Hathaway, Buffett's investment company, and journalists in two chartered planes. His friend, Eitan Wertheimer, chairman of the Board of the Israeli company Iscar, is accompanying him.

Buffett's Bangalore visit is intended primarily to see TaeguTec India, a wholly owned subsidiary of Iscar. Berkshire acquired 80% of Iscar's shares from Wertheimer's family for $4 billion in 2006. The Wertheimers retained 20% of the shares and Eitan Wertheimer stayed on as chairman. Iscar is a producer of innovative cutting tools for metalworking, and TaeguTec India supports this work.

From the airport, Buffett will head almost straight into a media interaction at The Taj West End hotel, though one source said he may visit a slum on the way. This will be followed by a dinner with a few select people. On Wednesday, he's scheduled to visit the TaeguTec facility in Bommasandra industrial area on the outskirts of Bangalore. L Krishnan, MD of TaeguTec India, said the mood at the facility was "jubilant". "It's going to be a normal working day at Taegutec. He (Buffett) is going to walk through the plant and interact with employees," Krishnan said.

In the afternoon, there's a lunch and panel discussion at the Leela Palace hotel, with about 100 industry bigwigs attending. Buffett, Wertheimer, Infosys CEO Kris Gopalakrishnan and Krishnan are the panellists. There is an early dinner the same evening with TaeguTec's vendors and business associates, following which Buffett will fly out of Bangalore. Police sources said Buffett would be provided a pilot vehicle and police protection throughout.

Buffett is scheduled to be in Delhi on Thursday and Friday where he is expected to meet the Prime Minister, and industrialists. One major purpose of Buffett's India visit is said to be to seek the support of wealthy Indians for philanthropic activities. In 2006, Buffett had made a commitment to gradually give 99% of his Berkshire Hathaway stock to philanthropic foundations.

22 Indian fishermen grasped in Pakistan

At least 22 Indian fishermen have been taken into custody in Pakistan for allegedly violating the country's marine border, a media report said on Saturday.

Five boats belonging to the Indians were seized on Friday off the port city of Karachi, the Daily Times citing Pakistan's maritime security agency reported.

Air India to function daily Jumbo flight to Narita

Air India will operate a daily flight to Narita from 16 to 19 March 2011, with a Jumbo B747-400 aircraft instead of the scheduled B777-300ER The B-747 has a capacity of 423 passengers. The flight will leave Delhi at 2300 hrs and reach Narita next morning at 0950 (local time). The return flight will have a quick turn round and leave Narita at 1130 hrs (local time) to reach Delhi at 1800 hrs (local time).

The airline has so far brought back around 900 passengers from Japan since the country was hit with earthquake and Tsunami. In addition to the flight to Tokyo, Air India also operates three flights a week to Osaka which will continue to operate as per schedule.

Air India has also decided to waive off all penalties for re-booking, cancellations and refunds on all types of tickets for travel to/from Japan up to 31st March 2011. Air India has always stood by to its social commitments and has met the expectations of its nationals whenever needed in any part of the world.

India is in need to fight piracy under UN

Expressing concern over “linkages of terrorists based in Somalia with transnational organised crime”, India has said it wants to fight piracy, but under the UN flag.

“India is in favour of strengthening multilateral cooperation under a UN framework to meet the complex challenges of maritime security... the threat of piracy emerging from Somalian waters continues to endanger the safety of sea lanes and is a matter of concern for the international community,” the defence ministry said in its annual report placed before Parliament on Wednesday.

The ministry said it was concerned about the recent incidents of pirates striking close to the Indian mainland. “The spread of piracy to areas close to our western seaboard has made this a cause of great concern,” the report said, adding that “links between terrorists based in Somalia and transnational organised crime is also a cause of major concern globally.”

Report reveals India-Japan nuclear deal becomes doubtful

The fate of proposed India- Japan nuclear deal has become uncertain following explosions at nuclear power plant in Japan in the wake of the devastating earthquake and tsunami four days ago, said local daily The Tribune on Monday. India and Japan have been negotiating a nuclear agreement since June last year.

The report quoted unnamed diplomatic sources as saying that the nuclear plant explosions in Japan could affect the deal that the two countries were considering to formally announce during Japanese Prime Minister Naoto Kan's visit to India by the end of this year.

The report said that there is "apprehension" now that the Japanese government would come under renewed public pressure to reconsider its move to go in for an accord with India, which is not a signatory to the CTBT and NPT, two non-proliferation treaties under the auspices of the United Nations.

Moreover, India and Japan have been at odds over provisions attached to their civil nuclear cooperation pact, including the one that bans the transfer of "sensitive technology" from Japan that could be used to develop atomic weapon, according to the reports.